Page:United States Statutes at Large Volume 49 Part 1.djvu/2056

 74 rx C ONGRESS. SESS. II. CH. 858 . JUNE 29, 1936 . and the Commission is directed to refrain from chartering its vessels to any person appearing to lack sufficient capital, credit, and expe- rience to operate successfully the vessel over the period covered by the charter. SEC. 714 . If the Commission shall find that any trade route (deter- min ed by the Commis sion to be an ess ential trade rout e as provided in section 211 of this Act) cannot be successfully developed and main tai ned and the. Commission's replacement program cannot be achieved under private operation of such trade route by a citizen of the United States with vessels registered under the laws thereof, without further Government aid in addition to the financial aids authorized under title V and VI of this Act, the Commission is authorized to have constructed, in private shipyards or in navy yards, the vessel or vessels of the types deemed necessary for such tra de route, and to demise such new vessel or vessels on bare-boat charter to the American-flag operator established on such trade route, without advertisement or competition, upon an annual charter hire of not less than 5 per centum of the construction cost of such new vessel or vessels. Such charter may contain an option to the charterer to purchase such vessel or vessels from the Commission, within five years after the execution of the charter, upon the same terms and conditions as are provided in title V for the purchase of new vessels from the Commission with credit on the purchase price for all charter-hire theretofore paid by the purchaser on account of such charter. 2 014 Finding by Co m- mission of inabilit y to d evel op t rade rou tes and r epla ceme nt p ro- gram incapable of achievement under pr ivate oper ation. Ante, pp. 1995, 2001 . Construction of sui tab le ves sel s and demise to citizen opera- tors. Annual charter hire . Optional purchase of vessel . TI TLE VI II-CONT RACT P ROVISIO NS SEC. 801. Every contract executed by the Commission under the provision of ti tles VI or VII of this Act shall c ontain provisions requi ring ( 1) th at th e con tracto r and ever y affi liate, dom estic agent , subsidiary, or holding company connected with, or directly or indi- rectly controlling or controlled by, the contractor, to keep its books, records, an d accounts, relat ing to the mainte nance, operation, and servicing of the vessels, services, routes, and lines covered by the contract, in such form and under such regulations as may be pre- scribed by the Commission : Provided, That t he provisions of this paragraph shall not require the duplication of bo oks, records, and accounts required to be kept in some other form by the Interstate Commerce Commission ; (2) that the contractor and every affiliate, dome stic agen t, s ubsi diary, or hol ding comp any conn ected wit h, o r directly or indirectly controlling or controlled by, the contractor, to file, upon notice from the Commission, balance sheets, profit and loss statements, and such other statements of financial operations, special report, memoranda of any facts and transactions, which in the opinion of the Commissio n affect the fina ncial results in, the performance of, or transactions or operations under, such contract ; (3) that the Commission shall be authorized to examine and audit the books, records, and accounts of all persons referred to in this section whenever it may deem it necessary or desirable ; and (4) that upon the willful failure or refusal of any person described in this section to comply with the contract provisions required by this section, the Commission shall have the right to rescind the contract, and upon such rescission the United States shall be relieved of all furt her l iabili ty on such cont ract. SEC. 802. Every contract executed by the Commission under Construction con- tr act s, pr ovi si ons re- authority of title V of this Act shall provide that : quired. , . In the event the United States shall, through purchase or requisi- A A cquisstion 1995 p nte o . f cesses tion, acquire ownership of the vessel or vessels on which a construe- on which construction tion-differential subsidy was paid, the owner shall be paid therefor o one paid ; pay ment Title VIII-Contract Provisions. Books, records, and accountsbycontractors regulations by Com- mission. Proviso. Records, etc ., re- quir ed by In ters tate Commerce Commis- sion . Filing of bal ance sheets, etc. Examination and audit of hooks, etc. W illfu l failure or refusal to comply scission of contract.
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