provisions of this part, and when accepted by the owner or master thereof may be assigned to such duty by the Secretary of the Navy. While in such employment such officers shall receive from the Government half pay, exclusive of allowances, and such other compensation from the owner or master as may be agreed upon by the parties; but such officers while in such employment shall be required to perform only such duties as appertain to the merchant marine.

PART III-SHIPPING TRADE PROMOTION AID

SEC. 513. (1) Any citizen of the United States as hereinbefore defined may apply to the Authority for a subsidy to enable him to operate in foreign commerce a vessel or vessels owned by him and documented as a vessel of the United States, for the purpose of developing the foreign commerce of the United States in a service or on a route with respect to which the operating subsidy provided for in section 505 hereof would be inadequate. Such application shall contain all the information required of applicants for operating subsidies, and in addition thereto all the facts indicating the inadequacy of an operating subsidy. If the Authority shall determine that it is in the public interest and desirable for the further development of the commerce of the United States, and that an operating subsidy determined as hereinabove provided would be inadequate, then it is authorized to grant a subsidy of such amount as it may determine, for a period which it shall fix not exceeding five years, and upon such other terms and conditions as the Authority shall fix, consistent with the provisions of this Act, and it may enter into a contract with the applicant accordingly. The amount of such shipping trade promotion aid shall not exceed in any year the amount of the actual losses reasonably incurred in maintaining and operating such vessel in such service or route, together with interest, not exceeding 6 per centum, upon his capital actually invested therein. Except as herein otherwise provided the provisions of Part II hereof with respect to operating subsidies shall apply to contracts for shipping trade promotion aid.

PART IV-PROVISIONS APPLICABLE TO FINANCIAL AID GENERALLY

SEC. 514. Each application for financial aid under the provisions of this title shall be accompanied by statements disclosing the names of all persons having any pecuniary interest, direct or indirect, in such application, or the ownership or use of the vessel or vessels, services, routes, or lines covered thereby, and the nature and extent of any such interest, together with such financial statements as may be required by the Authority. All such statements shall be in such form as the Authority shall prescribe. Whoever knowingly files or causes to be filed with the Authority any statement false in any material particular shall be guilty of a misdemeanor and subject upon conviction to a fine of not more than $1,000, or imprisonment for not more than one year, or both such fine and imprisonment.

SEC. 515. (a) Every contract executed under this title shall contain provisions requiring:

(1) Each party to the contract (except the Authority) and every affiliate, subsidiary, or holding company connected with any such party, to keep its books, records, and accounts relating to such contract, and to the maintenance and operation of the vessels, services, routes, and lines covered by the contract, in such form and under such regulations as may be prescribed by the Authority; and

(2) Each party to the contract (except the Authority) and every affiliate, subsidiary, or holding company connected with any such party, to file, upon notice from the Authority, statements of financial operations, special reports. memoranda of any facts and transactions, appertaining to the performance of or transactions or operations under such contract directly or indirectly affecting the financial results of such operation, and including all transactions or operations appertaining or subsidiary thereto, insurance, stevedoring, handling of cargo, wharfage, terminal charges, and any other matters which in the opinion of the Authority affect the financial results in the performance of or transactions or operations under such contract.

(b) The Authority is authorized to examine and audit the books, records, and accounts referred to in this section, whenever it may deem it advisable, or whenever requested by either House of Congress. The parties to the contracts referred to in this section (except the Authority), and affiliate, sub

MERCHANT MARINE POLICY

sidiary, and holding companies connected with any such party shall keep their books, records, and accounts referred to in this section open to inspection and audit at all times by accredited representatives of the Authority.

(e) The Authority may employ special a„ents or examiners who shall have authority to examine ail accounts, records and memoranda kept or required to be kept hereunder The Authority may prescribe the length of time such accounts, records, or memoranda shall be preserved

sic 5:6 In case of failure or refusal on the part of any person to keep stou, arcourts, records, and memoranda in manner prescribed by the Authority, or to submit such accounts, records, and memoranda to the inspection of the Authority or any of its authorized agents or examiners, such person shall forfet to the United States the sum of $5000 for each such offense. Such forfeiture stali acerte to the United States and be recovered in a civil action Any person who shill faisify any accoulit, brought by the United States record, of memoranda, or who shail willfully destroy, mu'iate, or aiter any such neveant, record or memoran-ia, shuil be guilty of a tuisge meatior and shall be x.bject upon conviction thereof to a fine of not less than $i (o not more than $5000, or imprison.fent for not less than one year nor more then three years, or both such, fine and imprisonment The Supreme Court of the District of Columbia and the several district courts of the United Nates shri be nhor ged to try and punish offenses hereunder within their respective juris dict.of.s

sro 517 To safeguard the pubile interest in the administration of financial mid under this Act, every contract executed under parts II and 111 of this title shail contain provisions requiring -

in The contractor to conduct its operations with respect to the vessels, services, Polites, and lines covered by its contracts in the most economical and effent maliber;

(b) That salaries and allowances (including compensation in any form) to its offers employees, and counsel shail be resinotable:

cea That there shall be set aside in a trust fund under terms satisfactory to the Authority before the payment of any dividends or bonitises of the .** tribution of profits a depreciation or replacement reserve fund to enable the replacement of worn out or obsolete vessels; and that before the payment of any dividends or bonuses, or the distribution of prefiis, a reasonable operating to serve shall be set aside and maintained.

(d) In case of any contractor owning, operating chartering, or acting as an agent for foreign vessels or of foreign interests or in case of any transaction of the contractor with organizations or persons with whom its directors or coffiers are connected or afhaated, such transactions shall be subject to regulations and orders prescribed by the Authority.

TITLE VI-MERCHANT MARINE FUNDS

PART I CONSTRUCTION LOAN FUNDS

SECTION 601. All the powers and duties under the provisietis of section 11 of the Merchant Marine Act, 1929, as amended, vested in the United State-s Suit jong Board or the United States Shipping Board Emerg ney Fleet Corporation, or the United States Shipping Board Merchant Fast Corporation, or transferred to the Dep, rtn ent of Commerce by section 12 of the Executive cruer sibed June 10, 1963. pursuant to the Act of Congress approved March 3. 163 are hereby transferred to and shall be exercisesi by the Authority.

Sre 02 All sums of money now in the construction loan fund created by section 11 of the Merchant Marine Act, 1920, to„m her with all debts, a counts, comes in action and all notes, mortgages, and other evidences of indebtedness arising out of loans made from said fund are hereby assisted, tran-ferred, and set over and made available to the Authority,

PART II-INSURANCE. FUND

2.0 63 The provisions of title V of the Merchant Marine Act, 1925, are hereby res nacted, and all the power and datus therein vested in the United States Slapping Boate, or t nafcted to the Department of Commerce by section 12 of the Executive order signed the 10th day of June 1983, pursuant to Act of Congress approved the 3d day of March 163, are hereby transferred to and shall be exercised by the Authority.

TITLE VII-REGULATORY POWERS

SECTION 701. The power and duties vested in the United States Shipping Board by sections 14, 14 (a), 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, and 32 of the Shipping Act, 1916, as amended by the Merchant Marine Act, 1920, and the Merchant Marine Act, 1928, and the powers and duties vested in the United States Shipping Board by the Intercoastal Shipping Act, 1933, and sections 19 and 28 of the Merchant Marine Act, 1920, as amended herein, or transferred to the Department of Commerce by the Executive order signed the 10th day of June 1933, pursuant to the Act of Congress approved the 3d day of March 1933, are hereby transferred to and vested in and shall be exercised by the Authority: Provided,

(1) That the last paragraph of section 18 of the Shipping Act, 1916, is hereby amended to read as follows:

"Whenever the Authority finds that any rate, fare, charge, classification, tariff, regulation or practice demanded, charged, collected, or observed by said carrier is unjust or unreasonable, it may determine or prescribe an order enforcing a just and reasonable maximum or minimum rate, fare, or charge or a just and reasonable classification, tariff, regulation, or practice."

(2) That paragraph (b) of section 19 of the Merchant Marine Act, 1920, be amended to read as follows:

"To make rules and regulations affecting shipping in a foreign trade not in conflict with the law in order to adjust or meet general or special conditions unfavorable to shipping in the foreign trade, whether in any particular trade or upon any particular route or commerce generally and which arise out of or result from foreign laws, rules, or regulations, or from competitive methods or practices employed by owners, operators, agents, or masters of vessels of a foreign country, and to prescribe minimum and maximum rates, fares, and charges, rules, and practices which may be charged and enforced by vessels documented under the laws of the United States or foreign vessels in the foreign trade of the United States."

(3) That the second paragraph of section 3 of the Intercoastal Shipping Act, 1933, be amended to read as follows:

66

Pending such hearing and the decision thereon the Authority, upon filing with such schedule and delivering to the carrier or carriers affected thereby a statement in writing of its reasons for such suspension, may from time to time suspend the operation of such schedule and defer the use of such rate, fare, charge, classification, regulation, or practice, but not for a longer period than four months beyond the time when it would otherwise go into effect; and after full hearing whether completed before or after the rate, fare, charge, classification, regulation, or practice goes into effect, the Authority may make such order with reference thereto as would be proper in a proceeding initiated after it had become effective, and may prescribe the maximum and minimum rates, fares, and charges which may be charged and enforced. If the proceeding has not been concluded and an order made within the period of suspension, the proposed change of rate, fare, charge, classification, regulation, and practice shall go into effect at the end of such period. The Authority shall give preference to the hearing and decision of such questions and decide the same as speedily as possible. Nothing contained herein shall be construed to empower the Authority affirmatively to fix specific rates."

(4) Whenever by this Act the approval of the Authority is required to render any act or transaction lawful, whoever knowingly makes any false statement of a material fact to the Authority or to any member thereof, or to any officer, attorney, or agent thereof, for the purpose of securing such approval, shall be guilty of a misdemeanor and subject to a fine of not more than $5,000 or to imprisonment for not more than five years, or both.

INTERRELATION OF RAIL AND WATER TRAFFIC

SEC. 702. (a) It is hereby declared to be the policy of Congress to promote, encourage, and develop water-transportation service and facilities in connec tion with the commerce of the United States, and to foster and preserve both rail and water transportation, and the Authority and the Interstate Commerce Commission are hereby severally authorized and directed to cooperate to that end.

(b) A Board is hereby created to be known as the "Joint Transportation Board", to be composed of the Secretary of Commerce and of two members meiected by the Interstate Commerce Commission from among their members, others, and employees, and of two members selected by the Authority from ang their members, officers, and employees, of which Board the Secretary of Commerce shad be chairman Said Icard shall appoint a secretary, who abad keep minutes of its meetings, which minutes shall be furnished to all members of the Authority and of the interstate Commerce Commission. The Board shall hold regular semimonthly meetings and such additional meetings as may be necessary to transat its busitie «»,

(e) The Board shail consider and make such recommendations to the Authority and the Commission pertaining to the interrelation of rail and water trafe as in its opinion wil. further the purpose and policy declared in subdiv,son (a) hereof None of the provisions hereof soil be construed to limit the power of jurisdiction of the Interstate Commerce Commission or of the Authority or of the becretary of War with respect to any matter within the lawful jurisdiction of either

TITLE VIII- AMERICAN SEAMEN

SECTION 801. All vessels operated under any contract made under and pursuint to this Act shall be manned in their deck and engine room departments ex: univery by citizens of the United St tew native born or completely natural12x1 utiles satisfactory proof is made to the Bureau of Navig tion and Steamboat Inspection that quaufed and competent citiges are not procurable therefor: Provided. That this section shall not apply to the stewards department, but preference in the employment of citizens in such stewards" department should be given by the owners of any such vennej so far as effient and compent employers are avaiшbie,

Sic M2 The Secretary of Commerce, with the approval of the Pres.dent, is hereby authorized and directed to establish in such of the principal ports of the United States as he deemas advisable, schools for the training of citizens of the United States as seamen for service of Versais documented under the laws of the United States. The Secretary shall make all rules and regula. tions necessary to carry out the purposes of this section so as to train such el’izens in meambatislip, particularly in the mar ning, handling, and rowing of Lifeboats, and in knowietze of the construction and use of all apgulances and equipment used on board modern passenger and cargo ships with which seamen are concerned with a view to m. king American sesumen the most eff ient and skilled On the conclusion of such training, certificates showing that su h training has been had shall be issued by the Secretary to ench individual who has satisfactorily demonstrated his skill and capacity, and the holding of such certificate shall be a condition to the procurement of a certificate as an able Seal a Low provided by law

SH NG The President is autherized to use for the establishment and maintehat v of such schoois any furds hereafter appropriated by Congress or which hate heretofore been made available to him for use in the maintenance of the Fede al Civil Works Administration

Six 804. Section 2 of the Act of March 4, 1915, is hereby amended to read as folowa:

2 That in all merchant vessels of the Un, fed States of more than one bundred tous gross excepting those navigating rivers, harbors bays, or sounds excusively the sazors performing the duties of heimsmen and or lookoutmen, fireman, cilers, and water te ders shall be dividesi into at least three watches, and es h such witch shall be kept on duty successively for the performance of ord hary work incident to the sail ng of the vessels The seamen stall not be shipped to work alternately in the fireroom and on deck nor shall those slipped for deck duty be required to work in the firerooti, or vice versa; nor shall any seatzen be reqn re-i to work more than eight hours in one day ; but these provisionis shall not i mit either the authority of the master or other officer or the cbscience of the seamen when, in the judgment of the master or other officer, the whole or any part of the crew are needed for the maneuvering of the vessel or the performance of work necessary for the safety of the vessel or her cargo, or for the saving of life aboard other vessels in Jeopardy, or when in port or at sea from requiring the whole or any part of the crew to participate in the

performance of fire, lifeboat, or other drills. While such vessel is in a safe harbor no seamen shall be required to do any unnecessary work on Sundays or the following-named days: New Year's Day, the Fourth of July, Labor Day, Thanksgiving Day, and Christmas Day, but this shall not prevent the dispatch of a vessel on regular schedule or when ready to proceed on her voyage. And at all times while such vessel is in a safe harbor, eight hours, inclusive of the anchor watch, shall constitute a day's work. Whenever the master of any vessel shall fail to comply with this section and the regulations issued thereunder, the owner shall be liable to a penalty not to exceed $500, and the seamen shall be entitled to discharge from such vessel and to receive the wages earned. But this section shall not apply to fishing or whaling vessels, yachts, or vessels engaged in salvage operations."

SEC. 805. Section 4551 of the United States Revised Statutes is hereby amended so as to read as follows:

"SEC. 4551. That every seaman shall be provided with and shall always carry a book which shall be known as a continuous discharge book'. Such book shall have a distinguishing number, description, fingerprint, and photograph of the seaman firmly attached, and shall contain, for each discharge, the name and official number of the vessel, port of registry, tonnage, description of voyage or employment, name of the seaman, nationality, place and date of birth, character, rating, date of entry of the vessel, date and place of discharge, and space for a brief designation of the conduct and ability of the seaman during the voyage. Said discharge book shall be signed for each discharge by the seaman and the master, and attested by the signature and seal of the shipping commissioner or persons duly authorized to act as such commissioner before whom the seaman is discharged. Such book shall be in convenient form; shall be printed, bound, and issued in such number as the Director of the Bureau of Navigation and Steamboat Inspection, subject to the approval of the Secretary of Commerce, may decide; and it shall be issued to the seaman by the shipping commissioner or persons duly authorized to act as such commissioner. Any person, corporation, or association which shall issue any such book or any imitation of such book, or any person who, not being the real owner, shall use or endeavor to use such book, or any person who shall make any statement or endorsement on such book not herein provided or shall make any false or forged entry in such book, shall be guilty of a misdemeanor and shall be punished by imprisonment of from one to three months at the discretion of the court.

"Whenever a seaman is shipped or discharged in any collection district where no shipping commissioners are appointed, and the master of the vessel is performing the duty of shipping commissioner, the master shall make the proper entries in the continuous discharge book and any master who fails to make such proper entry shall pay to the United States a penalty of $100 for each such offense which fine shall go to the fund for sick and destitute seamen.

"(a) Upon discharge of a seaman, the master shall indicate in the said discharge book a brief designation of the conduct and ability of the seaman during the voyage. Such endorsements in the continuous discharge books shall also be entered in the official log book. If the seaman is of the opinion that his ability or conduct has been inaccurately entered in the book, he shall have the privilege of making an appeal to the shipping commissioner or person duly authorized to act as such before whom he is discharged and whose decision shall be final.

"(b) There shall be maintained in the Bureau of Navigation and Steamboat Inspection in Washington a central record of every seaman to whom a discharge book is issued under the provisions of this Act, together with the name and address of his next of kin, and a copy of each discharge entry in said discharge book which copy shall be forwarded to the Bureau in Washington by the shipping commissioner or person duly authorized to act as such before whom he is discharged.

"(c) In case of the loss of a book by shipwreck or other casualty, the seaman shall be supplied with another discharge book in which shall be entered all data contained in the last book so far as this may be available from copies of records kept by the Director of the Bureau of Navigation and Steamboat Inspection; in other cases, the seaman may obtain such a duplicate book containing the same entries upon payment of a sum equivalent to the cost thereof to the Government, to be determined from time to time by the Secretary of Commerce.