Page:United States Statutes at Large Volume 52.djvu/1000

 52 STAT. 75THr CONG., 3D SESS.-CH. 600-JUNE 23, 1938 on any of the above-enumerated services, he will pay annually to the Commission that proportion of one-twentieth of the construction- differential subsidy paid for such vessel as the gross revenue derived from the domestic trade bears to the gross revenue derived from the entire voyages completed during the preceding year. The Commis- sion may consent in writing to the temporary transfer of such vessel to service other than the service covered by such agreement for periods not exceeding six months in any year, whenever the Com- mission may determine that such transfer is necessary or appropriate to carry out the purposes of this Act. Such consent shall be condi- tioned upon the agreement by the owner to pay to the Commission, upon such terms and conditions as it may prescribe, an amount which bears the same proportion to the construction-differential subsidy paid by the Commission as such temporary period bears to the entire economic life of the vessel. No operating-differential subsidy shall be paid for the operation of such vessel for such temporary period." SEC. 19. Section 507 of such Act is amended to read as follows: "SEC. 507. If a contract is made by the Commission under authority of this title for the construction and sale of a new vessel to replace a vessel then operated in foreign trade, which in the judgment of the Commission should be replaced because it is obsolete or inadequate for successful operation in such trade, the Commission is authorized, in its discretion, to buy such replaced vessel from the owner at a fair and reasonable valuation, which valuation shall not exceed the cost to the owner or any former owner plus the actual cost previously expended thereon for reconditioning, and less a reasonable and proper depreciation, based upon not more than a twenty-year life of the vessel, and apply the purchase price agreed upon to that portion of the construction cost of such new vessel which is to be borne by the purchaser thereof: Provided, That the owner of such replaced vessel shall execute a bond, with one or more approved sureties, con- ditioned upon indemnifying the United States from all loss resulting from any existing lien against such vessel: And provided further, That such vessel has been documented under the laws of the United States for a period of at least ten years prior to the date of its pur- chase by the United States." SEC. 20. The first sentence of section 509 of such Act, and so much of the second sentence thereof as precedes the first semicolon therein, are amended to read as follows: "Any citizen of the United States may make application to the Commission for aid in the construction of a new vessel to be operated in the foreign or domestic trade (excepting vessels engaged solely in the transportation of property on inland rivers and canals exclusively). If such application is approved by the Commission, the vessel may be constructed under the terms and conditions of this title, but no construction-differential subsidy shall be allowed, except as otherwise provided in this title. The Commission shall pay for the cost of national-defense features incorporated in such vessel. The applicant shall be required to pay the Commission not less than 25 per centum of the cost of such vessel (excluding cost of national-defense features)". SEC. 21. Section 604 of such Act is amended to read as follows: "SEC. 604. If in the case of any particular foreign-trade route the Commission shall by unanimous vote find after consultation with the Secretary of State, that the subsidy provided for in this title is in any respect inadequate to offset the effect of governmental aid paid to foreign competitors, it may grant such additional subsidy as it deter- mines to be necessary for that purpose: Provided, That no such addi- tional subsidy shall be granted except upon the unanimous affirma- tive vote of the members of the Commission." 959 Payment to Com- mission for deviations. Temporary transfer. 49 Stat. 2000. Construction of new vessel to replace obso- lete vessel. Purchase of replaced vessel by Commission. Credit to construc- tion cost of new vessel. Provisos. Surety bond. Documentation requirement. 49 Stat. 2000. Construction of new vessels. Application by cit- izen for aid In. Terms and condi- tions First payment. 49 Stat. 2003. Foreign trade routes, additional subsidy; when granted. Proiso. Unanimous approv- al by Commission.

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