Page:United States Statutes at Large Volume 49 Part 1.djvu/2049

 2004 7 4TH C ONGRESS. SESS. II. CH. 858. JUNE 29, 1936. jnRmew o fan tread . SEC. 606 . Every contract for an operating-differential subsidy coF utur erpa ymen ts t o under this title shall provide (1) that the amount of the future pay- ments to the contractor shall be subject to review and readjustment from time to time, but not more frequently than once a year, at the instance of the Commission or of the contractor. If any such read- justment cannot be reached by mutual agreement, the Commission, on its own motion or on the application of the contractor, shall, after a proper hearing, determine the facts and make such readjustment in the amount of such future payments as it may determine to be fair and reasonable and in the public interest. The testimony in every such p roceedin g shall be redu ced to writing and fil ed in th e office of the Commission. Its decision shall be based upon and gov- erned by the changes which may have occurr ed since the da te of th e said contract, with respect to the items theretofore considered and on which such contract was based, and other conditions affecting ship- ping, and shall be promulgated in a formal order, which shall be accompanied by a report in writing in which the Commission shall rioom pensi~o n f rpo state its findings of fact ; (2) that the compensation to be paid under it shall be reduced, under such terms and in such amounts as the Commi ssion s hall det ermine, for any period s in whi ch the vessel o r Necessary oedge in vessels are laid up ; (3) that if the Commission shall determine that a change in the service, route, or line, which is receiving an operating- dif feren tial subs idy under thi s tit le, is ne cess ary i n th e acc ompl ish- ment of the purposes of this Act, it may make such change upon such readjustment of payments to the contractor as shall be arrived at by operateattprofitabm le to oi the method prescribed in clause (1) of these conditions ; (4) that if ification, etc ., of con- at any time the contractor receiving an operating-differential sub- tract. sidy claims that he cannot maintain and operate his vessels on such service, route, or line, with a reasonable profit upon his investment, and applies to the Commission for a modification or rescission of his contract to maintain such service, route, or line, and the Commission determines that such claim is proved, the Commission shall modify or rescind such contract and permit the contractor to withdraw such vessels from such service, route, or line, upon a date fixed by the Commi ssion, and upon the da te of su ch with drawal t he furt her pay- ment of the operating-differential subsidy shall cease and the con- tra ctor be dischar ged fro m any fu rther o bligatio n under such co n- If not profit exceeds tract ; (5) that when at the end of any five-year period during which 1»per c ent. an operating-differential subsidy has been paid, and when prior to the end of any such five-year period the contract shall be terminated, if the net profit of the contractor on his subsidized vessels and services incident thereto during such period or time, after deduction of depreciation charges based upon a twenty-year life expectancy of the subsidized vessels, has exceeded 10 per centum per annum upon the contractor's capital investment necessarily employed in the operation Recapture provision. of the subsidized vessels, services, routes, and lines, the contractor s hall pay to the United States an amoun t equal to one- half of such profits in excess of 10 per centum per annum as partial or complete r eimburse ment fo r operat ing-dif ferentia l-subsi dy payme nts rec eived by the contractor for such five-year period, but the amount of exces- sive profit so recaptured shall not in any case exceed the amount of the operating-differential-subsidy payments theretofore made to the contractor for such period under such contract and the repayment of such reimbursement to the Commission shall be subject to the pro- Economical and effi- visions of section 607 ; (6) that the contractor shall conduct his opera- cient operation re- quired. tions with respect to the vessel's services, routes, and lines covered by his contract in the most economical and efficient manner, but with due regard to the wage and manning scales and working conditions