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Vessel owned by

sovereign nation.

Determination ownership.

admiralty and maritime jurisdiction: Provided further, That if the
Maritime Commission, after consideration by it of evidence submitted
to it within ten days after the approval of this Act, shall find that on
September 3, 1939, and continuously thereafter, any vessel was exclu-
sively owned, used and operated for its exclusive sovereign purposes
by a sovereign nation making claim therefor, such vessel may be taken
under this section only by purchase or charter; and in determining said
ownership, use and operation the Commission shall disregard (1) all
contributions made in whole or in part at any time to the construction,
repair, reconditioning, equipping or operation of said vessel, (2) all
such matters, in nature similar to or dissimilar from, the foregoing
clause as in the opinion of the Commission are immaterial or irrelevant
to the determination of such ownership. Use of such vessel at any
time since September 3, 1939, in commercial trade shall be presump-
tively deemed to show that said vessel is not owned, used and operated
by a sovereign nation for its sovereign purposes. The final determina-
tion by the Maritime Commission shall be conclusive: Provided further,
That if any vessel shall be found under the proviso next preceding to U.S.
be exclusively owned, used and operated by any sovereign nation so
that it can only be chartered or purchased, and such vessel shall be
chartered or purchased, then the cash to be paid for said charter or
purchase, to the extent that may be necessary, after payment of existing
claims and liens of creditors against said vessel, shall be held for appli-
cation upon such debt, if any, as may be due to the United States from
the sovereign nation so found to have exclusive ownership to said
vessel: Provided further, That the Maritime Commission and the
Department of Justice are authorized to make just provisions out of
funds provided in section 2 of this Act for employees displaced by
the taking of any ship hereunder and report to the Congress their
action within thirty days after the enactment of this Act.

of

Vessel belonging to nation indebted to

ees.

Displaced employ

Availability of

Ante, p. 53.

SEC. 2. Funds appropriated by the Act of March 27, 1941 (Public funds. Law 23, Seventy-seventh Congress), are hereby made available to carry out the provisions of section 1 hereof, including payment of the costs of repair, reconstruction, or reconditioning necessary or incidental to the use or disposition under this Act of vessels acquired, or the use or possession of which is acquired, under such section.

Chartering of vessels by U. S. Maritime

Commission.

54 Stat. 2643.
50 U. S. C., app.,

prec. § 1 note.

41 U. S. C. § 5. Basis, terms, etc.

SEC. 3. (a) During the national emergency declared by the President on September 8, 1939, to exist, but not after June 30, 1942, the United States Maritime Commission, whenever it finds that vessels in addition to those otherwise available are necessary for transportation of foreign commerce of the United States or of commodities essential to the national defense, is authorized, notwithstanding any other provision of law, (1) to charter any vessel, whether undocumented or documented under the laws of the United States or of a foreign country, deemed by the Commission to be suitable for such transportation, without regard to the provisions of section 3709 of the Revised Statutes, on a time-charter or bare-boat basis, upon such terms and conditions, and for such period or periods, as the Commission may deem necessary or desirable in the public interest, and at such rate of hire as it may deem to be fair and reasonable in view of the attendant circumstances, and (2) to charter any vessel chartered by the Commission under clause (1) hereof to a private operator, a citizen of the United States (including 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), or to any department or agency of the United States Government, without regard to the provisions of title VII of the ment agencies. Merchant Marine Act, 1936, on time-charter or bare-boat basis, for use in any foreign trade or service or as otherwise hereinafter pro

39 Stat. 729.
46 U. S. C. § 802.
Charter to Govern-

49 Stat. 2008.

46 U. S. C. §§ 1191

vided, upon such terms and conditions, for such period or periods, and subject to such restrictions as the Commission may deem necessary or desirable for the protection of the public interest, and at such rate of hire as it may deem to be fair and reasonable. Any department or agency of the United States Government is authorized to Receipts and dis- enter into such charters. All moneys received by the Commission under the provisions of this subsection shall be deposited in the construction fund of the Commission, and all disbursements made by the Commission in carrying out the provisions of this subsection shall be paid from such fund.

bursements.

Insurance and reinsurance.

insurance fund.

(b) The Commission is authorized to provide such insurance and reinsurance with respect to vessels (including any interest of the owner or charterer) chartered, purchased, requisitioned, or the title to which or the possession of which is taken over, under this Act, as it may deem necessary in connection with the operation, use, or disposition thereof under this Act, whenever it appears to the Commission that adequate and satisfactory insurance is not otherwise obtainable at reasonable rates and upon reasonable terms and condiMarine and war-risk tions. The fund established pursuant to Public Resolution Numbered 94, Seventy-sixth Congress, approved July 18, 1940 (54 Stat. 766), shall be available for all purposes of this subsection; and all moneys received from premiums and from salvage or other recoveries and all receipts in connection with such insurance shall be deposited to the credit of such fund, and all disbursements made by the Commission in carrying out the provisions of this subsection, including the payment of return premiums and all liabilities incurred hereunder, shall be paid from such fund. The provisions of sections 225 46 U.S. C. 11284, and 226 (a) to (e), inclusive, of the Merchant Marine Act, 1936, as amended, shall be applicable in the administration of this

Receipts.

Disbursements.

54 Stat. 690, 691.

1128e (a)-(e).

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54 Stat. 4; post, p. 764. 22 U. S. C. § 441457.

Purchase of vessels by U. S. Maritime Commission.

41 U. S. C. § 5.

tion.

subsection.

(c) Nothing in this Act shall be construed to modify or affect any provision of the Neutrality Act of 1939, as amended.

SEC. 4. Whenever the United States Maritime Commission is authorized to charter vessels under section 3 hereof, it is further authorized, notwithstanding any other provision of law, to purchase any vessel, whether undocumented or documented under the laws of the United States or of a foreign country, deemed by the Commission to be suitable for transportation of foreign commerce of the United States or of commodities essential to the national defense, without regard to the provisions of section 3709 of the Revised Statutes, at such price and upon such terms and conditions as it may deem fair and reasonCharter or opera- able and in the public interest. Such vessels and vessels otherwise acquired by or made available to the Commission may be chartered as provided in section 3 of this Act, or operated by the Commission upon such terms and conditions as it may deem desirable and in the public interest, giving primary consideration to the needs of national defense; but no vessel constructed under the provisions of the Merchant Marine Act, 1936, as amended, may be chartered to a private Receipts and dis operator hereunder. All moneys received by the Commission under the provisions of this section shall be deposited in the construction fund of the Commission, and all disbursements made by the Commission in carrying out the provisions of this section or section 5 (f) (except as provided in section 2) shall be paid from such fund.

Restriction.

49 Stat. 1985.

46 U. S. C. ch. 27.

bursements.

Documentation

vessels.

49 Stat. 1985.

46 U. S. C. ch. 27.

of

SEC. 5. (a) Notwithstanding any other provision of law, during the effective period of section 3 of this Act, any vessel (except a vessel constructed under the provisions of the Merchant Marine Act, 1936, as amended), not documented under the laws of the United States, acquired by or made available to the Commission under this Act or otherwise, may (1) in the discretion of the Secretary of Com

merce be documented as a vessel of the United States under such rules and regulations or orders, and with such limitations, as the Secretary of Commerce may prescribe or issue as necessary or appropriate to carry out the purposes and provisions of this Act; and (2) in accordance with the provisions of subsection (c) hereof engage in the coastwise trade when so documented. Any document issued to a vessel under the provisions of this Act shall be surrendered at any time that such surrender may be ordered by the Secretary of Commerce. No vessel, the surrender of the documents of which has been so ordered, shall, after the effective date of such order, have the status of a vessel of the United States unless documented anew.

(b) Notwithstanding any other provisions of law, the President may, by rules and regulations or orders, waive compliance with any provision of law relating to masters, officers, members of the crew, or crew accommodations on any vessel documented under authority of this Act to such extent and upon such terms as he finds necessary because of the lack of physical facilities on said ships, and because of the need to employ aliens for their operation. No vessel shall cease to enjoy the benefits and privileges of a vessel of the United States by reason of the employment of any person in accordance with the provisions of this subsection.

(c) Any vessel while documented under the provisions of this Act, when chartered hereunder by the Commission to other Government agencies or departments or to private operators, may engage in the coastwise trade under permits issued by the Commission, which is hereby authorized to issue permits for such purpose pursuant to such rules and regulations as it may prescribe. The Commission is hereby authorized to prescribe such rules and regulations as it may deem necessary or appropriate to carry out the purposes and provisions of this Act.

Surrender of docu

ment.

Provisions relating to personnel, etc.

Engagement in

39 Stat. 730.

46 U. S. C. § 808. Waiver of certain

(d) The second paragraph of section 9 of the Shipping Act, 1916, as amended, shall not apply with respect to vessels chartered to other Government agencies or departments or to private operators under provisions. section 3 or section 4 of this Act.

(e) Existing laws covering the inspection of steam vessels are hereby made applicable to vessels documented under this Act only to such extent and upon such conditions as may be required by the regulations of the Board of Supervising Inspectors with the approval of the Secretary of Commerce: Provided, That in determining to what extent those laws should be made applicable, due consideration shall be given to the primary purpose of transporting commodities essential to the national defense.

Inspection of ves

sels.

Proviso.

Repair, reconstruction, etc. 41 U. S. C. § 5.

(f) The Commission without regard to the provisions of section 3709 of the Revised Statutes may repair, reconstruct, or recondition any vessels to be utilized under this Act. Any other Government department or agency by which any vessel is acquired or chartered, or to which any vessel is transferred or made available under this Act may, with the aid of any funds available, and without regard to the provisions of said section 3709, repair, reconstruct, or recondition any such vessels to meet the needs of the services intended, or provide facilities for such repair, reconstruction, or reconditioning. (g) In case of voyage of a vessel documented under the provisions when act expires. of this Act is begun before the date of termination of the effective period of section 3, but is completed after such date, the provisions of this section shall continue in effect with respect to such vessel until such voyage is completed.

(h) When used in this Act, the term "documented" means "registered" and "enrolled and licensed".

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Voyage uncompleted

"Documented."

June 6, 1941 [H. R. 1801] [Public Law 102]

Naval Academy.

Appointment of midshipmen from "honor schools."

[CHAPTER 175]

AN ACT

Amending the Act of February 27, 1936 (49 Stat. 1144).

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of February 27, 1936 (49 Stat. 1144), insofar as the provisions thereof are embodied in section 1033a of title 34 of the United States Code, is hereby amended to read as follows:

"The Secretary of the Navy is authorized to appoint not more than twenty midshipmen annually to the Naval Academy from among the honor graduates of educational institutions which are designated as 'honor schools' by the War Department in accordance with the provisions of the Act of July 9, 1918 (40 Stat. 894), as amended (10 U. S. C. 1091), or by the Navy Department in accordance with Naval Reserve om regulations established by the Secretary of the Navy, and from among the members of the Naval Reserve Officers' Training Corps: Provided, That such appointments shall be made under such rules and regulations as the Secretary of the Navy may prescribe." Approved, June 6, 1941.

cers' Training Corps.

Proviso.

June 6, 1941 [H. R. 2107] [Public Law 103]

Commonwealth of

Philippine Islands.

Materials and serv.

ices for.

Provisos.

Disposition of receipts.

[CHAPTER 176]

AN ACT

To authorize the Secretary of the Navy to sell equipment and supplies to and perform work for the Commonwealth of the Philippine Islands.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Navy is authorized, in his discretion, to sell to the Commonwealth of the Philippine Islands such materials, supplies, and equipment and to repair or assist with the design of vessels, armament, or equipment for said Commonwealth as the Naval Establishment may be in a position to do at prices to be specified by said Secretary, the prices of the work performed, and of new materials, supplies, and equipment, to be not less than the cost to the Government: Provided, That the amounts received in payment for work performed, or for new materials, supplies, or equipment sold, shall be credited to appropriations or funds as may be authorized by other law, or if not so authorized, so as to be available to replace the materials, supplies, or equipment, unless the said Secretary determines that such replacement is not necessary, in which case the amounts shall be covered into the Treasury as miscellaneous receipts: Provided further, Receipts for obsolete That the amounts received in payment for obsolete or surplus materials, supplies, or equipment sold, less the costs to the Government occasioned by such sales, shall be covered into the Treasury as miscellaneous receipts.

or surplus materials.

Nontransferability.

Termination.

SEC. 2. All contracts or agreements made by the Secretary of the Navy for the sale of the materials, supplies, or equipment authorized by this Act shall contain a clause by which the Commonwealth of the Philippine Islands undertakes not to dispose of such materials, supplies, or equipment, or of any plans, specifications, or information pertaining thereto, by gift, sale, or any mode of transfer in such manner that they become a part of the armament of, or available to, any state other than the said Commonwealth.

SEC. 3. The authority granted under this Act shall terminate upon the final granting of independence to the Commonwealth of the Philippine Islands.

Approved, June 6, 1941.

[CHAPTER 177]

AN ACT

To authorize the Secretary of the Navy and the Secretary of the Treasury to exchange certain equipment in part payment for new equipment of the same or similar character.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Navy, insofar as Navy property is concerned, and the Secretary of the Treasury, insofar as Coast Guard property is concerned, are respectively authorized to exchange motor-propelled vehicles, airplanes, engines, and parts thereof, and obsolete, unsuitable, and unserviceable machines and tools, and parts thereof, in part payment for new equipment of the same or similar character as those proposed to be exchanged.

Approved, June 6, 1941.

[CHAPTER 187]

AN ACT

Authorizing the Secretary of the Treasury to release certain interests in certain land which adjoins the Shark River Coast Guard Station, in Monmouth County, New Jersey.

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Shark River Coast Guard Station, N. J. Release of U. S. interests in adjacent

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury be, and he is hereby, authorized and directed to convey by quitclaim deed, to the estate of James A. Bradley, an deceased, all the right, title, and interest of the United States in and to property owned by the estate of James A. Bradley, deceased, which adjoins the Shark River Coast Guard Station, in Monmouth County, New Jersey.

Approved. June 6, 1941.

[CHAPTER 188]

AN ACT

To amend the Act entitled "An Act for the establishment of marine schools, and for other purposes", approved March 4, 1911, as amended, with respect to the location of the nautical school at the port of San Francisco.

June 6, 1941 [S. 1311] [Public Law 106]

Marine schools.

36 Stat. 1353.
34 U. S. C. §§ 1121-

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first section of the Act entitled "An Act for the establishment of marine schools, and for other purposes", approved March 4, 1911, as amended, 1123. is amended by adding at the end thereof the following new paragraph: "The port of San Francisco specified in the first paragraph of this section shall be construed as embracing, in addition to the city of cisco construed. San Francisco, any_city, town, municipality, or other locality on the San Francisco Bay or the San Pablo Bay or waters tributary thereto."

Approved, June 6, 1941.

Port of San Fran

[CHAPTER 189]

AN ACT

June 9, 1941

Authorizing expenditures for the Office of Government Reports in the Executive
Office of the President.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is hereby authorized to be appropriated annually to the Office of Government Reports in the Executive Office of the President a sum not exceeding $1,500,000 in order to (a) provide a central clearing house through which individual citizens, organizations of citizens, and State or local

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