Page:United States Statutes at Large Volume 52.djvu/995

 PUBLIC LAWS-CH. 600 -JUNE 23, 1938 Extensions and re- newals of notes and other evidences of indebtedness. 49 Stat. 1988. Contracts author- ized for carrying out authorized activities, etc. Audit of financial transactions. 42 Stat. 444. Prooiso. Allowance of credit for all necessary ex- penditures. Report of depar- tures to Congress. 49 Stat. 1991. Investigations; au- thority to secure testi- mony, etc. Witness fees and mileage. 49 Stat. 1991. Vessels for foreign commerce, purchase, etc. 49 Stat. 1989. 46 U. S. C., Supp. III, § 1121. Proviso. Basis of price. Suitability require- ment. Documentation of vesels. with sound business practice, make such extensions and accept such renewals of the notes and other evidences of indebtedness hereby transferred, and of the mortgages and other contracts securing the same, as it may deem necessary to carry out the objects of this Act." SEC. 2. Section 207 of such Act is amended to read as follows: "SEC. 207. The Commission may enter into such contracts, upon behalf of the United States, and may make such disbursements as may, in its discretion, be necessary to carry on the activities authorized by this Act, or to protect, preserve, or improve the collateral held by the Commission to secure indebtedness, in the same manner that a private corporation may contract within the scope of the authority conferred by its charter. All the Commission's financial transactions shall be audited in the General Accounting Office according to approved com- mercial practice as provided in the Act of March 20, 1922 (42 Stat. 444): Provided, That it shall be recognized that, because of the busi- ness activities authorized by this Act, the accounting officers shall allow credit for all expenditures shown to be necessary because of the nature of such authorized activities, notwithstanding any exist- ing statutory provision to the contrary. The Comptroller General shall report annually or oftener to Congress any departure by the Commission from the provisions of this Act." SEC. 3 . Section 214 (a) of such Act is amended to read as follows: "SEC. 214 . (a) For the purpose of any investigation which, in the opinion of the Commission, is necessary and proper in carrying out the provisions of this Act, any member of the Commission, or any officer or employee thereof designated by it, is empowered to subpena witnesses, administer oaths and affirmations, take evidence, and require the production of any books, papers, or other documents which are relevant or material to the matter under investigation. Such attendance of witnesses and the production of such books, papers, or other documents may be required from any place in the United States or any Territory, district, or possession thereof at any designated place of hearing. Witnesses summoned before the Com- mission shall be paid the same fees and mileage that are paid wit- nesses in the courts of the United States." SEC. 4 . Title II of such Act is amended by adding at the end thereof a new section to read as follows: "SEC. 215. The Commission is authorized to acquire by purchase or otherwise such vessels constructed in the United States as it may deem necessary to establish, maintain, improve, or effect replacements upon any service, route, or line in the foreign commerce of the United States determined to be essential under section 211 of this Act, and to pay for the same out of its construction fund: Provided, That the price paid therefor shall be based upon a fair and reasonable valuation, but it shall not exceed by more than 5 per centum the cost of such vessel to the owner (excluding any construction-differ- ential subsidy and the cost of national defense features paid by the Commission) plus the actual cost previously expended thereon for reconditioning less depreciation based upon a twenty-year life expectancy of the vessel. No such vessel shall be acquired by the Commission unless the Secretary of the Navy has certified to the Commission that such vessel is suitable for economical and speedy conversion into a naval or military auxiliary, or otherwise suitable for the use of the United States in time of war or national emer- gency. Every vessel acquired under authority of this section that is not documented under the laws of the United States at the time of its acquisition shall be so documented as soon as practicable." 954 [52 STAT.

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