Page:United States Statutes at Large Volume 49 Part 1.djvu/2055

 2010 74TH C ONGRESS. SESS. II. CH. 858. JUNE 29, 1936. Disposition of seen- SEC. 709 . (a) Every charter made by the Commission pursuant to mutated profits exceed- ing 10 per centum per the provis ions o f this title shall provid e that whene ver, at the e nd of an num on cha rter er' s capital. any calendar year subsequent to the execution of such charter, the cumulative net voyage profits (after payment of the charter hire reserved in the charter and payment of the charterer's fair and rea- sonable overhead expens es applicable to operation of the chartered vessels) shall exceed 10 per centum per annum on the charterer's cap- ital necessarily employed in the business of such chartered vessels, the charterer shall pay over to the Commission, as additional charter hire, one-half of such cumulative net voyage profit in excess of 10 per centum per annum : Provided, That the cumulative net profit so accounted for shall not be included in any calculation of cumulative net profit in subsequent years. (b) Every charter shall contain a definition of the terms "net voyage profit" and "fair and reasonable overhead expenses", and "capital necessarily employed", as said terms are used in subsection (a) of this section, setting forth the formula for determining such profit and overhead expense and capital necessarily employed, which definitions shall have bee n previously ap proved by the C ommission and publishe d in the adver tisement for bi ds for such cha rter. SEC. 710. Every charterer of the Commission's vessels shall be required to deposit with the Commission an undertaking with approved sureties as security for the faithful performance of all of the conditions of the charter, including indemnity against liens on the chartered vessels, in such amount as the Commission shall require. SEC. 711 . The charters to be made by the Commission pursuant to the provisions of this title shall demise the vessels to. the charterer subject to all usual conditions contained in bare-boat charters, and until January 1, 1940, shall be for terms of three years or less as the Commis sion m ay deci de : Pro vid ed, That after J anuary 1, 1940 , charters may be executed by the Commission for such terms as the experience gained by the Commission shall indicate are to the best interests of the United States and the merchant marine. SEC. 712 . Every charter shall provide- (a) That the charte rer shall carry on the charte red vessels, at his own expense, policies of insurance covering all marine and port risks, protection and indemnity risks, and all other hazards and liabilit ies, in such am ounts, in such form, and in s uch insurance companies as the Commission shall require and approve, adequate to cover all damages claimed against and losses sustained by the chartered vessels arising during the life of the charter : Provided, That in accordance with existing law, some or all of such insurance risks may be underwritten by the Commission itself as, in its dis- cretion, it may determine. (b) That the charterer shall at its own expense keep the chartered vessel in good state of repair and in efficient operating condition and shall at its own expense make any and all repairs as may be re uired by the Commission. q(c) That the Commission shall have the right to inspect the vessel at any and all times to ascertain its condition. (d) That in any national emergency as proclaimed by the Presi- dent of the United States, the Commission may terminate the charter without cost to the United States, upon such notice to the charterers as the President of the United States shall determine. SEC. 713. In the awarding of charters, the Commission shall take in c onside ration the c hartere r's fi nancia l reso urces and cre dit st and- ing, practical experience in the operation of vessels, and any other factors that would be considered by a prudent businessman in enter- ing into a transaction involving a large investment of his capital ; Proviso. Not to be included subsequently. Definit ions. "N et voyage profit ." "Fa ir and reasonable overhead expenses ." "Capital necessarily employed ." Deposit of under- taking, with approved sureties, by charterer. Demise of vessel by Commission to char- te rer su bje ct to us ual conditions; terms . Proviso. Terms of charters after January 1, 1940. Charter provisions. Insurance. Provi so. Und erwr iti ng by Commission. Care, etc ., of vessel. Inspection. Ter min ati on of charter in emergency. Awarding charters conditions to be con- si dered.