September 7, Shipping Act, 1916. Citizenship requirement. Receivers and trustees. In time of war transfers, etc., restricted to citizens. "SHIPPING BOARD ACT." [728] CHAP. 451.-An Act To establish a United States Shipping Board for the purpose of encouraging, developing, and creating a naval auxiliary and naval reserve and a merchant marine to meet the requirements of the commerce of the United States with its Territories and possessions and with foreign countries; to regulate carriers by water engaged in the foreign and interstate commerce of the United States; and for other purposes. [Approved, September 7, 1916. 39 Stats. 728.] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, * [729] SEC. 2. That within the meaning of this Act no corporation, partnership, or association shall be deemed a citizen of the United States unless the controlling interest therein is owned by citizens of the United States, and, in the case of a corporation, unless its president and managing directors are citizens of the United States and the corporation itself is organized under the laws of the United States or of a State, Territory, District, or possession thereof. The provisions of this Act shall apply to receivers and trustees of all persons to whom the Act applies, and to the successors or assignees of such persons. [730] SEC. 9. [731] When the United States is at war, or during any national emergency the existence of which is declared by proclamation of the President, no vessel registered or enrolled and licensed under the laws of the United States shall, without the approval of the board, be sold, leased, or chartered to any person not a citizen of the United States, or transferred to a foreign Vessels for registry or flag. No vessel registered or enrolled and fered to Board licensed under the laws of the United States, or owned by any person a citizen of the United States, except one which the board is prohibited from purchasing, shall be sold to any person not a citizen of the United States or transferred to a foreign registry or flag unless such vessel is first tendered to the board at the price in good faith offered by others, or, if no such offer, at a fair price to be determined in the manner provided in section ten. sale to be of before to a foreigner. Forfeiture for violation. Any vessel sold, chartered, leased, transferred, or operated in violation of this section shall be forfeited to the United States, and whoever violates any provision of this section shall be guilty of a misdemeanor and subject to a fine of not more than $5,000 or to imprisonment of Punishment not more than five years, or both such fine and imprisonment. imposed. the President naval use. SEC. 10. That the President, upon giving to the person Possession by interested such reasonable notice in writing as in his judg- for military or ment the circumstances permit, may take possession, absolutely or temporarily, for any naval or military purpose, of any vessel purchased, leased, or chartered from the board: Provided, That if, in the judgment of the President, an emergency exists requiring such action he may tice." take possession of any such vessel without notice.1 Proviso. Payment to be made. Thereafter, upon ascertainment by agreement or otherwise, the United States shall pay the person interested the fair actual value based upon normal conditions at the time of taking of the interest of such person in every vessel taken absolutely, or if taken for a limited period, the fair charter value under normal conditions for such period. In case of disagreement as to such fair value it shall be determined by appraisers, one to be appointed Ascertainby the board, one by the person interested, and a third by the two so appointed. The finding of such appraisers shall be final and binding upon both parties. "NAVAL EMERGENCY FUND ACT." ment of value. [H. R. 20632.] [1168] CHAP. 180.-An Act Making appropriations for the naval March 4, 1917. service for the fiscal year ending June thirtieth, nineteen hundred and eighteen, and for other purposes. [Approved March 4, 1917. 39 Stats. 1168.] [Public, No. 391.] appropriations. Be it enacted by the Senate and House of Representa- Naval service tives of the United States of America in Congress assem bled, * General ex [1169] AVIATION: For aviation, to be expended under the direction of the Secretary of the Navy for procuring, penses. producing, constructing, operating, preserving, storing, and handling aircraft, including rigid dirigibles, and appurtenances, maintenances of air craft stations and experimental work in development of aviation for naval purposes, $5,133,000: Provided, That the sum to be paid out of this appropriation under the direction of the Sec- etc., services. retary of the Navy for drafting, clerical, inspection, and 1 For analogous statutes [covering principle of requisition], see annotations under Sec. 10, Food Control Act, p. 57, infra. Prov 80. Technical Securing basic aircraft patents. Provisos. Arrangements authorized. Indemnity bond for valid messenger service for aircraft stations shall not exceed $75,000. To enable the Secretary of War and the Secretary of the Navy to secure by purchase, condemnation, donation, or otherwise, such basic patent or patents as they may consider necessary to the manufacture and development of aircraft in the United States and its dependencies, for governmental and civil purposes, under such regulations as the Secretary of War and the Secretary of the Navy may prescribe, $1,000,000. Provided, That such arrangements may be made in relation to the purchase of any basic patent connected with the manufacture and development of aircraft in the United States as in the judgment of the [1170] Secretary of War and the Secretary of the Navy will be of the greatest advantage to the Government and to the development of the industry. Provided further, That in the event there shall be ity of patents. pending in court litigation involving the validity of said. patent or patents, bond, with good and approved security in an amount sufficient to indemnify the United States, shall be required, payable to the United States, conditioned to repay to the United States the amount paid for said patent or patents in the event said patent or patents are finally adjudged invalid. Naval emergency fund. immediately specified objects. NAVAL EMERGENCY FUND.1 Amount made [1192] To enable the President to secure the more available for economical and expeditious delivery of materials, equipment, and munitions and secure the more expeditious construction of ships authorized and for the purchase or construction of such additional torpedo boat destroyers, submarine chasers and such other naval small craft, including aircraft, guns and ammunition for all of said vessels and aircraft and for each and every purpose connected therewith, as the President may direct, to be expended at the direction and in the discretion of the President, $115,000,000, or so much thereof as may be necessary, and to be immediately available. 1 For analogous statutes [covering principle of compulsory order] see annotations under Sec. 120, National Defense Act, p. 2, supra, and [covering principle of requisition] annotations under Sec. 10, Food Control Act, p. 57, infra, submarines to ly built. etc. Contracts, In addition to the eighteen submarines hereinbefore Additional appropriated for, the Secretary of the Navy is hereby be immediate authorized and directed to proceed at once to cause to be constructed twenty coast submarines to have a surface displacement of about eight hundred tons each at a cost not to exceed $1,300,000 each, exclusive of armor and armament, on the most approved lines according to plans and specifications to be provided or adopted by the Secretary of the Navy. The same may be let by contract to private builders or constructed by the Government in navy yards, or both, as may be directed by the Secretary of the Navy. Said twenty submarines shall be constructed on the Pacific coast: Provided, That the cost of construc- Proviso. tion on the Pacific coast does not exceed the cost of con- tion. struction on the Atlantic coast plus the cost of transportation from the Atlantic to the Pacific. Eighteen Appropriation. million dollars is hereby appropriated toward the construction of said submarines. Pacific coast construction. Cost condi ship construc Meaning (a) That the word "person" as used in paragraphs Emergency (b), (c), next hereafter shall include any individual, tion. trustee, firm, association, company, or corporation. The term use of word "ship" shall include any boat, vessel, submarine, or any form of aircraft, and the parts thereof. The words "war material" shall include arms, armament, ammunition, stores, supplies, and equipment for ships and airplanes, and everything required for or in connection with the production thereof. The word "factery" shall include any factory, workshop, engine works, building used for manufacture, assembling, construction, or [1193] any process, and any shipyard or dockyard. The words "United States" shall include the Canal Zone and all territory and waters, continental and insular, subject to the jurisdiction of the United States. Additional prior to March (b) That in time of war, or of national emergency, authority vestarising prior to March first, nineteen hundred and eight-ed in President een, to be determined by the President by proclamation, 1, 1918. the President is hereby authorized and empowered, in addition to all other existing provisions of law: ships or any person. war First. Within the limits of the amounts appropriated May order therefor, to place an order with any person for such ships material from or war material as the necessities of the Government, to be determined by the President, may require and which are of the nature, kind, and quantity usually produced or capable of being produced by such person. Compliance Compliance with all such orders shall be obligatory on any person to obligatory, etc. factory, etc., if etc. whom such order is given, and such order shall take precedence over all other orders and contracts theretofore Possession of placed with such person. If any person owning, leasing, order refused, or operating any factory equipped for the building or production of ships or war material for the Navy shall refuse or fail to give to the United States such preference in the execution of such an order, or shall refuse to build, supply, furnish, or manufacture the kind, quantity, or quality of ships or war material so ordered at such reasonable price as shall be determined by the President, the President may take immediate possession of any factory of such person, or of any part thereof without taking possession of the entire factory, and may use the same at such times and in such manner as he may consider necessary or expedient. Cancel, etc., existing con possession of Second. Within the limit of the amounts appropriated tracts, take therefor, to modify or cancel any existing contract for factory, etc. the building, production, or purchase of ships or war material; and if any contractor shall refuse or fail to comply with the contract as so modified the President may take immediate possession of any factory of such contractor, or any part thereof without taking possession of the entire factory, and may use the same at such times and in such manner as he may consider necessary or expedient. Require whole output of any factory, etc. Take over any factory for use. Third. To require the owner or occupier of any factory in which ships or war material are built or produced to place at the disposal of the United States the whole or any part of the output of such factory, and, within the limit of the amounts appropriated therefor, to deliver such output or parts thereof in such quantities and at such times as may be specified in the order at such reasonable price as shall be determined by the President. Fourth. To requisition and take over for use or operaGovernment tion by the Government any factory, or any part thereof without taking possession of the entire factory, whether the United States has or has not any contract or agreement with the owner or occupier of such factory. Authority to cease March 1, 1918. That all authority granted to the President in this paragraph, to be exercised in time of national emergency, shall cease on March first, nineteen hundred and eighteen.1 1 See Executive Order No. 2687, August 21, 1917 [p. 176]. |