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§ 255.5 Subsidy.

Neither construction-differential subsidy nor operating-differential subsidy shall be paid with respect to cargo containers.

§ 255.6 Deposits in the capital reserve fund on account of cargo containers purchased or reconstructed therefrom.

There shall be deposited in the Capital Reserve Fund in respect of cargo containers paid for or payable out of such fund (a) not later than 6 months after the end of each accounting period an amount equivalent to the annual depreciation written off as prescribed in § 255.7(b), (b) proceeds from containers sold or otherwise disposed of, and (c) proceeds of insurance or indemnities in the event of total loss; provided the deposits of depreciation on cargo containers shall be deferred to the extent not earned on the same basis as depreciation with respect to subsidized ships as provided in Article II-25 (a) (2) of the OperatingDifferential Subsidy Agreement. § 255.7 Accounting treatment. (Amendments have been or will be made to other sections of this chapter).

(a) Account 349-"Other shipping property and equipment" shall be charged with the cost of acquisition of cargo containers;

(b) Account 350-"Reserve for amortization and depreciation; other shipping property and equipment" shall be credited and Account 988-"Depreciation; other shipping property and equipment" shall be charged with depreciation computed on the straight line method on the basis of the useful life approved by the Maritime Administration;

(c) Any revenues derived from cargo containers such as, but not limited to, demurrage and rental, shall be credited to Account 660-"Revenue from other shipping operations." Expenses such as, but not limited to, insurance, maintenance and repairs, and those incurred in transporting empty containers between ports and piers, shall be charged to Account 885-"Expenses of other shipping operations." Subsidiary accounts shall be maintained to show separately the principal classes of revenues and expenses of cargo containers; and

(d) For subsidy accounting purposes the depreciated book value of cargo con

tainers, less outstanding indebtedness thereon for capital necessarily employed purposes and the debits and credits for expenses and revenues such as those referred to in paragraph (c) of this section, depreciation, and interest on indebtedness incurred by the purchase or reconstruction for the purpose of determining earnings subject to recapture, shall be allocated between subsidized operations and unsubsidized operations on the basis of the relation that the number of cargo container voyage days on subsidized and unsubsidized voyage terminations during the accounting period, separately, bears to the total number of cargo container voyage days on voyage terminations during the accounting period.

§ 255.8 Accountability.

There shall be filed annually with the appropriate Maritime Administration Coast Director not later than March 31 of each year a summary of cargo containers, by size and type, for which approvals have been granted hereunder, showing (a) the relative percentage of utilization in subsidized and unsubsidized operations (determined in accordance with Article II-37(a) of the Operating-Differential Subsidy Agreement), on the same basis of allocations and for the same period as prescribed in § 255.7 (d), and (b) location as of December 31 of the previous year. As to location, breakdown should show:

(1) Number afloat, by service designation;

(2) Number in transit on land by general geographical area; and

(3) Number of others by general geographical area.

§ 255.9 Exceptional proposals.

In the event any proposal submitted is not embraced in the provisions of this part, the Maritime Administrator will determine each application on its merits in light of the provisions of section 607 (b), Merchant Marine Act, 1936, as amended (46 U.S.C. 1177).

NOTE: The reporting and/or recordkeeping requirements contained herein have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

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262.106 Proposed report and service thereof. 262.107 Exceptions to proposed report. 262.108 Report and recommendations to the Board.

262.109 Final action of Board.

AUTHORITY: The provisions of this Part 262 issued under sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114. Interpret or apply sec. 301, 49 Stat. 1992, as amended; 46 U.S.C. 1131.

SOURCE: The provisions of this Part 262 contained in General Order 15, 2 FR. 2627, Oct. 23, 1937, unless otherwise noted.

CROSS REFERENCES: For hours of labor on shipboard, see Part 157 of this title. For licensed officers and certificated men, see Parts 10 and 12 of this title. For manning of inspected vessels, see Part 157 of this

title. For Department of State regulations relating to seamen's wages, see 22 CFR Part 82.

GENERAL

§ 262.1 Scope of scales and working conditions.

The following minimum-wage and minimum-manning scales and reasonable working conditions shall be applicable to each subsidized vessel upon the first signing, after November 1, 1937, of shipping articles for a subsidized voyage of such vessel.1 § 262.2

Right of contractor to set higher wage scales.

These minimum wage scales, minimummanning scales and reasonable working conditions shall not affect the rights of any contractor or his employees to set higher wage scales, increased manning scales or better working conditions by collective bargaining or otherwise. § 262.3

Classification of vessels for minimum-wage and minimum-manning scales applicable to licensed officers. For the purpose of establishing minimum-wage and minimum-manning scales applicable to licensed officers, subsidized vessels are classified as set forth below according to their "power tonnage," which represents the gross tonnage of a vessel plus its indicated horsepower as shown in "Merchant Vessels of the United States," June 30, 1936, published by the Bureau of Marine Inspection and Navigation of the United States Department of Commerce:

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§ 262.22 Unlicensed personnel.

(a) On all vessels having a "power tonnage" of 7,501 to 12,000, at least one wiper shall be carried, and on all vessels of a "power tonnage" of 12,001 and over, no less than two wipers shall be carried. "Power Tonnage" as used in this section represents the gross tonnage of the vessel plus its indicated horsepower as shown in "Merchant Vessels of the United States," June 30, 1936, published by the Bureau of Marine Inspection and Navigation of the United States Department of Commerce.

(b) Minimum-manning scales for other ratings will be prescribed by the Board for individual vessels or types of vessels on completion of individual surveys of each ship.

REASONABLE WORKING CONDITIONS

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The following reasonable working conditions are prescribed for licensed officers employed on all types of vessels receiving an operating-differential subsidy.

(a) Obedience. Prompt obedience shall be rendered to the orders of the master and other superior officers.

(b) Holidays. For the purpose of these working conditions, the following shall be deemed to be holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When any of the foregoing holidays fall on Sunday, the following Monday shall be deemed to be a holiday.

(c) Inspections. In order to insure cleanliness and orderliness the heads of the various departments shall make a daily inspection of all crew accommodations. The master shall personally make at least one weekly inspection of the entire vessel with particular attention to the crew's quarters and food, and he shall enter a record in the log of his inspection and findings.

(d) Subsistence and quarters. When meals are not furnished, licensed officers shall receive a subsistence allowance at the rate of $3 per day and, when required to sleep ashore, they shall receive an allowance of $2 per night for lodging.

(e) Travel allowances. When traveling in the course of employment from one vessel to another or from one port to another, licensed officers shall be paid regular wages while en route and shall be provided with transportation (first class by land, with berth, and cabin class

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by sea) and subsistence at the rate of $3.75 per day except where subsistence is included with transportation.

(f) Withdrawal of vessel from service. (1) If, prior to the completion of shipping articles, the vessel is withdrawn from service for any cause, including shipwreck, licensed officers shall be provided with return transportation and subsistence, as provided in paragraph (e) of this section, to the port where shipping articles were signed, unless another port is designated in the shipping articles. Full wages shall be paid up to the time of arrival at either of such ports. Application for such return transportation, subsistence and wages must be made within 15 days from the date of withdrawal of the vessel from service, except that, in the case of shipwreck, such application must be made within 15 days from the date of arrival at a safe port.

(2) Licensed officers entitled to return transportation in accordance with this section shall not be paid the money equivalent of such return transportation.

(g) Retention of licensed officers. No licensed officer shall be laid off without pay over a Saturday afternoon, Sunday or a holiday. A full complement of licensed officers shall be employed on any vessel operating on a regular schedule at all times when such vessel is in port, unless the time between arrival at and sailing from the port exceeds 15 days, or unless such vessel is to be withdrawn from service: Provided, That licensed officers, whose employment has been terminated or who are on vacation need not be replaced.

(h) Vacation. For each year of continuous service on the subsidized vessels of the contractor beginning with November 1, 1937, every licensed officer shall receive a vacation of 14 consecutive days with full pay.

(1) Such vacation shall be cumulative to the extent mutually agreed upon and shall be allowed at such times as may be convenient to the operating necessities of the service. No cash allowance in lieu of vacation shall be made.

(2) If, after 6 months of continuous service, employment is terminated through no fault of the officer, he shall be entitled to such vacation as has accrued on the basis of one-twelfth the annual period per month. Continuous service shall not be deemed to be broken by temporary furloughs from the service

of the contractor: Provided, That no vacation shall accrue during such periods of furlough.

§ 262.32 Unlicensed personnel.

Prompt obedience shall be rendered to the orders of the master and other superior officers.

(a) Holidays. For the purpose of these working conditions, the following shall be deemed to be holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When any of the foregoing holidays falls on Sunday, the following Monday shall be deemed to be a holiday.

(b) Inspections. In order to insure cleanliness and orderliness, the heads of the various departments shall make a daily inspection of all crew accommodations. The master shall personally make at least one weekly inspection of the entire vessel with particular attention to the crew's quarters and food, and he shall enter a record in the log of his inspection and findings.

(c) Subsistence and quarters. When meals are not furnished, unlicensed members of the crew shall receive a subsistence allowance at the rate of $1.80 per day and, when required to sleep ashore, they shall receive an allowance of $1 per night for lodging.

(d) Travel allowance. When traveling in the course of employment from one vessel to another or from one port to another, unlicensed personnel shall be paid regular wages while en route and shall be provided with necessary transportation and subsistence at the rate of $2.50 per day, except where subsistence is included with transportation.

(e) Withdrawal of vessel from service. (1) If, prior to the completion of shipping articles, the vessel is withdrawn from service for any cause, including shipwreck, unlicensed personnel shall be provided with return transportation and subsistence, as provided in paragraph (d) of this section, to the port where shipping articles were signed, unless another port is specifically designated in the articles. Full wages shall be paid up to the time of arrival at either of such ports. Application for such return transportation, subsistence and wages must be made within 15 days from the Idate of withdrawal of the vessel from service, except that, in the case of shipwreck, such application must be made within 15 days from the date of arrival at a safe port.

(2) Unlicensed personnel entitled to return transportation in accordance with this section shall not be paid the money quivalent of such return transportation.

(f) Vacations. For the first year of continuous service on the subsidized vessels of the contractor beginning November 1, 1937, every unlicensed member of the crew shall receive a vacation of 7 consecutive days with full pay and, for each subsequent year of continuous service, a vacation of 14 consecutive days with full pay.

(1) Such vacation shall be cumulative to the extent mutually agreed upon and shall be allowed at such time as may be convenient to the operating necessities of the service. No cash allowance in lieu of vacations shall be made.

(2) If, after 6 months of continuous service, employment is terminated through no fault of the employee, he shall be entitled to such vacation as has accrued on the basis of one-twelfth the annual period per month. Continuous service shall not be deemed to be broken by temporary furloughs from the service of the contractor: Provided, That no vacation shall accrue during such periods of furlough.

§ 262.33 Radio operators.

Prompt obedience shall be rendered to the orders of the master and other superior officers.

(a) Holidays. For the purpose of these working conditions, the following shall be deemed to be holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. When any of the foregoing holidays falls on Sunday, the following Monday shall be deemed to be a holiday.

(b) Inspections. In order to insure cleanliness and orderliness, the heads of the various departments shall make a daily inspection of all crew accommodations. The master shall personally make at least one weekly inspection of the entire vessel with particular attention to the crew's quarters and food, and he shall enter a record in the log of his inspection and findings.

(c) Regulations. Radio operators shall observe all rules and regulations promulgated by the Federal Communications Commission and shall be required to know the rules and regulations of the

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