Page:United States Statutes at Large Volume 54 Part 1.djvu/719

 54 STAT.] 76TH CONG., 3D SESS.--CH. 442-JUNE 29, 1940 or appropriate for carrying out the purposes and provisions of this joint resolution. If the Commission, upon written application in respect of any essential vessel, determines after such examination, investigation, and proceedings as it deems desirable, that (1) the operation of such vessel in the service, route, or line to which such vessel is assigned pursuant to the Merchant Marine Act, 1936, or in which it would otherwise be operated, is either (A) not lawful under the Neutrality Act of 1939 (or any proclamation issued thereunder), or (B) not compatible with the maintenance of availability of such vessel for purposes of national defense and commerce, (2) it is not feasible under existing law to employ such vessel in any other service or operation in either the foreign or domestic trades (except tem- porary or emergency operation under subsection (c) (5) hereof), and (3) the applicant, by reason of the restrictions of the Neutrality Act of 1939, or the withdrawal of vessels for national-defense purposes under clause (1) hereof, is not earning or will not earn a fair and reasonable return on the capital necessarily employed in its business, the Commission may make adjustments and arrangements with the applicant as provided in subsection (c) hereof, which shall continue in effect only during the circumstances above described. (c) Such adjustments and arrangements shall include suspension of the requirement to operate such vessel in foreign trade under the applicable operating-differential or construction-differential subsidy contract or mortgage or other agreement, and of the right to operat- ing-differential subsidy in respect of such vessel, and may include any one or more of the following provisions, in whole or in part, as, and to the extent that, the Commission may deem to be necessary or appropriate to carry out the purposes of the Merchant Marine Act, 1936, or the purposes and provisions of this joint resolution: (1) Lay-up of the vessel by the owner or, at the option of the Commission, in the custody of the Commission, with payment or reim- bursement by the Commission of necessary and proper expenses thereof (including reasonable overhead and insurance), or in lieu of such payment or reimbursement, a fixed periodic allowance therefor; (2) Postponement, for a period not in excess of the period or periods of lay-up, of the maturity date of each installment on account of the principal of obligations to the United States in respect of the vessel (whether or not such maturity date shall fall within such period or periods), or rearrangement of such maturities; (3) Postponement or cancelation of interest accruing on such obligations during such period or periods of lay-up; (4) Extension for a period not in excess of the period or periods of lay-up, of the twenty-year life limitation in respect of the vessel, and of the period or periods of other limitations and provisions of the Merchant Marine Act, 1936, insofar as they are based upon a twenty-year life; (5) Provisions for such temporary or emergency employment of the vessel in lieu of lay-up as may be practicable, with such arrange- ments for management of the vessel, payment of expenses, and appli- cation of the proceeds of such employment, as the Commission may approve, the period or periods of such operation being included as part of the period or periods of lay-up; (6) The payment to the Commission, upon termination of the arrangements with the applicant hereunder, out of the applicant's net profits, earned while such arrangements were in effect, in excess of 10 per centum per annum on the capital necessarily employed in the applicant's business, in reimbursement, to the extent that the Commis- sion shall deem it necessary to carry out the purposes of this joint resolution, on account of obligations postponed or canceled and 685 Examination by Commission. Factors considered. 49 Stat. 1985. 46U. S. C., Supp. V, ch. 27. Ante, p.4. Making of adjust- ments, etc. Suspension of opera- tion requirement, etc. Provisions includ- ible in adjustments, etc. Payment for lay-up of vessel. Postponement of principal payments on obligations to U. S. I'Potpmnement, etc., of inlntrest. Extension of twen- ty-year life limitation, etc. 49 Stat. 1985. 46 U.S.C.. Supp.V, eh. 27. Temporary, etc., employment in lieu of lay-up. Reimbursement to Commission out of excess net profits.

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