Page:United States Statutes at Large Volume 49 Part 1.djvu/2047

 2002	 74T H C ONGRESS. SESS. II. CH. 858 . JU NE 29, 1936 . vessel or vessels as to meet competitive conditions and promote Aid neede d to meet foreign commerce ; (4) the granting of the aid applied for is neces- foreign competition . sary to place the proposed operations of the vessel or vessels on a parity with those of foreign competitors, and is reasonably calculated to carry out effectiv ely the purpos es and policy of this Act. Disclosure in appli- (b) Every application for an operating-differential subsidy under cation of names of per- sons h aving pec uniary the provisions of this title shall be accompanied by statements dis- interests. closing the names of all persons having any pecuniary interest, direct or indirect, in such application, or in the ownership or use of the vessel or vessels, routes, or lines covered thereby, and the nature and extent of any such interest, together with such financial and other statements as may be required by the Commission. All such statements shall be under oath or affirmation and in such form as Pe nalty for false the Commission shall prescribe. Any person who, in an application statement. for financial aid under this title or in any statement required to be filed therewith, willfully makes any untrue statement of a material fact, shall be guilty of a misdemeanor. grIn vest igat ion befo re SEC. 602. No contract for an operating-differential subsidy shall be made by the Commissi on for t he opera tion of a vessel or vess els to meet foreign competition, except direct foreign-flag competition, until and unless the Commission, after a full and complete investi- gation and hearing, shall determine that an operating subsidy is necessary to meet competition of foreign-flag ships. metofs Contracts for pay SEC. 603. (a) If the Commission approves the application, it may enter into a contract with the applicant for the payment of an operating-differential subsidy determined in accordance with the provisions of subsection (b) of this section, for the operation of such vessel or vessels in such service, route, or line for a period not exceed- ing twenty years, and subject to such reasonable terms and condi- tions, consistent with this Act, as the Commission shall require to effectuate the purposes and policy of this Act, including a perform- ance bond with approved sureties, if such bond is required by the Commission. Amount comput t ionf subsi dy (b) Such contract shall provide that the amount of the operating- differential subsidy shall not exceed the excess of the fair and rea- sonable c ost of i nsurance, mainte nance, repairs not comp ensated by insurance, wages and subsistence of officers and crews, and any other items of expense in which the Commission shall find and determine that the applican t is at a substa ntial d isadvant age in c ompetiti on with vessels of the foreign country hereinafter referred to, in the operation under United States registry of the vessel or vessels cov- ered by the contract, over the estimated fair and reasonable cost of the same items of expense (after deducti ng there from any estimat ed increase in such items necessitated by features incorporated pur- suant to the provisions of section 501 (b) ) if such vessel or ves sels were operated under the registry of a foreign country whose vessels are substantial competitors of the vessel or vessels covered by the contract. Payments at end of (c) The amount of such subsidy shall be determined and payable accounting period. on the basis of a final accounting made as soon as practicable after During period. the end of each year or other period fixed in the contract. The Commission may provide for in the contract, or otherwise approve, the payment fr om time to time during any su ch period of su ch Li mita tion on amounts on account as it deems Su ch on account amount ; security . proper. payments shall in no case exceed 75 per centum of the amount estimated to have accrued on account of such s ubsidy and shall be made only after there has been furnished to the Commission such security as it determines to be reasonable and necessary to insure the refund of any overpa yment.