299.47 299.48 299.10 Termination date. 299.49 Subpart B Sales of War-Built Vessels 299.21 Sales of war-built vessels to citizens of the United States. 299.50 299.51 299.52 299.53 299.54 299.55 Interim additions and deductions. Allocation among operations under bareboat charter agreements and "other operations". Limitation of "capital necessarily employed". Accounting periods extending beyond end of calendar year. NET VOYAGE PROFIT Fundamental bases. Allocation among operations under bareboat charter agreements and "other operations". Calculation of net voyage proît on cumulative basis. Adjustments in absence of physical inventories. Adjustment of priced differences be- Post redelivery overhead expenses. under Form No. 303 SHIPSALES- STATEMENTS AND CERTIFICATIONS Statements required by the Administration. Certifications and verifications. STATEMENT OF PURPOSES AND RESERVATIONS Statement of purposes and reservavations. 299.56 Sec. 299.129 Supplemental application to bareboat charter government-owned, war-built, dry-cargo vessel (8) under section 5 (e) of the Merchant Ship Sales Act of 1946, as amended by Public Law 591, 81st Congress. 299.130 Uniform bareboat charter of a warbuilt dry-cargo vessel under the Merchant Ship Sales Act of 1946, "Shipsalesdemise 308". 299.131 Application for transfer of a warbuilt vessel in settlement of a claim against the United States. 299.182 Application for transfer of another vessel for a vessel constructed in the United States since January 1, 1937, which was taken for use by the United States. 299.133 Application for adjustment of purchase price of vessel purchased prior to March 8, 1946. 299.134 Application for the reconversion, alteration or modification of vessel. Subpart 1-Assumption of Mortgage by New Mortgagor 299.301 Application to transfer a vessel, subject to mortgage. AUTHORITY: The provisions of this Part 299 issued under sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114. Interpret or apply sec. 12, 60 Stat. 49, as amended; 50 U.S.C. App. 1745, except as otherwise noted. SOURCE: The provisions of this Part 299 contained in General Order 60, Revised, 22 F.R. 11103, Dec. 31, 1957, unless otherwise noted. Subpart A-General Provisions § 299.1 For the purpose of §§ 299.1 to 299.134, inclusive: (a) Administration. “Administration" means the Maritime Administration. (b) War-built vessel. "War-built vessel" means an ocean-going vessel of one thousand five hundred gross tons or more, owned by the United States and suitable for commercial use: (1) Which was constructed or contracted for by or for the account of the United States during the period beginning January 1, 1941, and ending September 2, 1945; or (2) Which, having been constructed during the period beginning September 3, 1939, and ending September 2, 1945, was acquired by the United States during such period. (c) Dry-cargo vessel. "Dry-cargo vessel" means, except where the context indicates otherwise, any vessel other than a tanker, but the term "dry-cargo vessel" includes a Liberty type tanker except for § 299.31. (d) Prewar domestic cost. "Prewar domestic cost," as applied to any type of vessel, means the amount determined by the Administration, and published by the Administration in the FEDERAL REGISTER (§ 299.71), to be the amount for which a standard vessel of such type could have been constructed (without its national defense features) in the United States under normal conditions relating to labor, materials, and other elements of cost, obtaining on or about January 1, 1941. In no case shall the prewar domestic cost of any type of vessel be considered to be greater than 80 percent of the domestic war cost of vessels of the same type. (e) Domestic war cost. "Domestic war cost," as applied to any type of vessel, means the average construction cost (without national defense features) as determined by the Administration, of vessels of such type delivered during the calendar year 1944, except for any type of vessel the principal deliveries of which were made after the calendar year 1944, in which case there shall be used in lieu of such year 1944 such period of not less than six consecutive calendar months as the Administration shall find to be most representative of war production costs of such type. (1) In the case of any vessel for which there is no domestic war cost as defined in this paragraph, such domestic war cost shall be in the same ratio to the prewar domestic cost (as defined in paragraph (d) of this section) as the domestic war cost of the most nearly comparable type of vessel for which a domestic war cost is available is to the prewar domestic cost of such similar vessel. (1) Statutory sales price. "Statutory sales price," as applied to a particular vessel, means, in the case of a dry-cargo vessel (as defined in paragraph (c) of this section), an amount equal to 50 percent of the prewar domestic cost of that type of vessel, and in the case of a tanker (excluding Liberty tankers), such term means an amount equal to 872 percent of the prewar domestic cost of a tanker of that type, such amount in each case being adjusted as follows: (1) If the Administration is of the opinion that the vessel is not in class, there shall be subtracted the amount estimated by the Administration as the cost of putting the vessel in class; (2) If the Administration is of the opinion that the vessel lacks desirable features which are incorporated in the standard vessel used for the purpose of determining prewar domestic cost, and that the statutory sales price (unadjusted) would be lower if the standard vessel had also lacked such features, there shall be subtracted the amount estimated by the Administration as the amount of such resulting difference in the statutory sales price; (3) If the Administration is of the opinion that the vessel contains desirable features which are not incorporated in the standard vessel used for the purpose of determining the prewar domestic cost, and that the statutory sales price (unadjusted) would be higher if the standard vessel had also contained such features, there shall be added the amount estimated by the Administration as the amount of such resulting difference in statutory sales price; (4) There shall be subtracted, as representing normal depreciation, an amount computed by applying to the statutory sales price (determined without regard to this paragraph) the rate of 5 percent per year for the period beginning with the date of the original delivery of the vessel by its builder and ending with the date of sale or charter to the applicant in question, and there shall also be subtracted an amount computed by applying to the statutory sales price (determined without regard to this paragraph) such rate not in excess of 3 per cent per year in the case of a vessel other than a tanker, and not in excess of 4 percent per year in the case of a tanker, for the period of war service as the Administration determines will make reasonable allowance for excessive wear and tear by reason of war service which cannot be or has not been otherwise compensated for under this paragraph. The period of war service in ordinary cases shall be from the date of delivery of the vessel to the Govern ment for operation or December 7, 1941, whichever was later, until September 2, 1945. (5) In the case of any vessel covered by subparagraph (3) of this paragraph, the amount of difference in statutory sales price resulting from the presence of desirable features not contained in the standard vessel of the same type shall be depreciated from the date of delivery of the vessel or the date of installation of such features if such features were installed after delivery. No adjustment, except in respect of passenger vessels constructed before January 1, 1941, shall be made under the act which will result in a statutory sales price which (1) in the case of any Liberty type vessel will be less than 311⁄2 percent of the domestic war cost of vessels of such type, (2) in the case of drycargo vessels (except Liberty type vessels) will be less than 35 percent of the domestic war cost of vessels of the same type, or (3) in the case of a tanker (except a Liberty tanker) will be less than 50 percent of the domestic war cost of tankers of the same type. "Cessa (g) Cessation of hostilities. tion of hostilities" means the date proclaimed by the President as the date of the cessation of hostilities in the present war, or the date so specified in a concurrent resolution of the two houses of the Congress, whichever is the earlier. (h) Citizen of the United States. "Citizen of the United States" includes a corporation, partnership, or association only if it is a citizen of the United States within the meaning of section 2 of the Shipping Act, 1916, as amended, and section 905 (c) of the Merchant Marine Act, 1936, as amended. The Secretary of the Administration will furnish, on request, copies of memoranda dealing with citizenship. (1) Affiliated interest. The term "affiliated interest" shall include any person or concern that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the applicant. The term "control" (including the terms "controlled by" and "under common control with") as used in this paragraph means the possession, directly or indirectly, of the power to direct or cause 1 Twelve o'clock noon, Dec. 31, 1946; see Proclamation 2714, Dec. 31, 1946, 3 CFR, 1946 Supp. the direction of the management and policies of the applicant, whether through ownership of voting securities, by contract, or otherwise. (j) Constructed or date constructed. "Constructed" or "date constructed" means the date upon which a vessel was originally delivered by the shipbuilder. (k) Act. "Act" means, except where the context clearly indicates otherwise, the Merchant Ship Sales Act of 1946 (Public Law 321, 79th Cong., 2d Sess., approved March 8, 1946). (1) Regulations. "Regulations" mean the rules and regulations prescribed by the Administration, under the Merchant Ship Sales Act of 1946 (Public Law 321, 79th Cong., 2d Sess), §§ 299.1 to 299.134, inclusive, published in the FEDERAL REGISTER and all succeeding amendments and supplements thereto similarly published in the FEDERAL REGISTER. (m) Secretary. "Secretary" means the Secretary of the Administration or any Assistant Secretary thereof or any other official or employee of the Administration designated by the Administration to perform the duties required of the Secretary under this part. munications sent to the Secretary should be addressed "Secretary, Maritime Administration, Washington, D.C., 20235.") (Com (n) Working capital. "Working capital" means the excess of "total current working assets" over "total current working liabilities" determined in accordance with the instructions and balance sheet embodied in the form of "General Financial Statement" prescribed by the United States Maritime Commission (Budget Bureau approval No. 62-R010-42):' Provided, That (1) in determining the amount of working capital, unpaid tenders of "just compensation" made by the Maritime Administration (or made by the United States Maritime Commission or the War Shipping Administration to the extent approved by the Administration) for title to, or use (to the extent accrued) of, vessels (irrespective of whether or not such tenders have been accepted by the owners) may be included, (2) an amount equivalent to the excess (if any) of 50 percent of the amount of "Unterminated Voyage Revenue" over the amount of "Unterminated Voyage Expense" reflected in the balance sheet shall be deducted from the amount of working Copies of the "General Financial Statement" will be furnished by the Maritime Administration on request. 50-105-71-16 capital determined in accordance with the preceding provisions of this paragraph. (0) Net worth. "Net worth" shall include capital stock, capital suplus, and earned surplus adjusted to exclude capital stock subscribed but not issued, capital stock held in the treasury, appreciation, good will, and other intangibles not actually acquired for cash or for a consideration determined by the Administration to be equivalent thereof, and such other adjustments as are consistent with sound accounting principles. (p) Preoperating and operating expenses. "Preoperating and operating expenses" shall include wages, subsistence, stores, supplies, equipment, fuel, maintenance, repairs, insurance, and other vessel expenses as described in the instructions embodied in the "General Financial Statement" prescribed by the Administration (accounts numbered 700.01 to 700.64 inclusive, pages 8 and 9) and overhead expenses, but shall not include agency fees and commissions; wharfage, dockage, and other port expenses; stevedoring and other cargo expenses; brokerage, canal tolls, and other voyage expenses. Such preoperating and operating expenses for a 60 day period (including prepaid insurance for one year) shall be deemed to aggregate: 1 Effective with respect to applications (and amendments of prior applications) received by the Maritime Commission during the period between July 12, 1946, and April 8, 1947. Effective from August 2, 1946. Effective from Aug. 2, 1946, to Apr. 11, 1947, both inclusive. 4 Effective from Apr. 12, 1947, to Aug. 12, 1949, both Inclusive. (q) Related company. The term "related company," used to indicate a relationship with the applicant, shall include any person or concern that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the applicant. The term "control" (including the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the applicant (or related company), whether through ownership of voting securities, by contract, or otherwise. § 299.2 Order of preference. (a) In general. All citizen applications received by the Secretary within a given calendar month shall be given preference over all applications received by the Secretary in any subsequent calendar month. For the purposes of this section the first calendar month shall be considered to include the period from April 23, 1946, to June 1, 1946. For applications involving vessels with respect to which the original publication of prices was made in the FEDERAL REGISTER of August 17, 1946, the first calendar |