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74tH C ONGRESS . SESS. II. CH. 858 . JUNE 29, 1936. No» operating-differ_ permit su ch transfer : Pro vi ded , T hat no o perat ing di ffere ntial sub- ential subsidy during sidy shall be paid during the duration of such temporary or emer- » Engaging in domes_ gency period, and such period shall not exceed three months . Ev ery tic trade en route . con tracto r rec eivin g a c ontrac t for a co nstruc tion- diffe rentia l sub sidy under the provisions of this title shall agree that if the subsidized vessel engages in domestic trade on a round-the-world voyage or a round voyage from the west coast of the United States to a European port or ports or loads or discharges cargo or passengers at an island possession or island territory as permitted by this section, that the contractor will repay annually to the Commission that proportion of one-twent ieth of such cons truction subsidy as the gross reve nue of such protected trade bears to the gross revenue derived from the entire voyages completed during the preceding year . New vessel replacing SEC. 507. If a contract is made by the Commission under authority obsolete, etc., vessel engaged in foreiga of this title for th e construction and sale of a new vessel to replace a trade.
vessel exclusively operated in foreign trade, which in the judgment of the Commission should be replaced because it is obsolete or inade- Purchase of replaced quate for successful operation in such trade, the Commission is v essel auth orized .
authorized, in its discretion, to buy such replaced vessel from the owner at a fair and reasonable valuation, which valuation shall not exceed the cost to the owner or any former owner plus the actual cost previously expended thereon for reconditioning, and less a reasonable and proper depreciation, based upon not more than a credit of purchase twenty-year life of the vessel and less a proper deduction for obso- price to construction cost of new vessel .
lescence, and apply the purchase price agreed upon to that portion of the construction cost of such new vessel which is to be borne by the purchaser thereof : Provided, That the owner of such replaced vessel shall execute a bond, with one or more approved sureties, conditioned upon indemnifying the United States from all loss resulting from any existing lien against such vessel : And provided further, That such vessel has been documented under the laws of the United States for a period of at least ten years prior to the date of its purchase by the U nited States . SEC . 508 . If the Commission shall determine that any vessel trans- ferred to it by section 202 of this Act, or hereafter acquired, is of i nsufficient value for commercial o r military operat ion to warrant its further preservation, the Commission is authorized (1) to scrap said vessel, or (2) to sell such vessel for cash, after a ppraisement and due advertisement, and upon competitive sealed bids, either to citi- zens of the United States or to aliens : Provided, That the purchaser thereof shall enter into an undertaking with sureties approved by the Commission that such vessel shall not be operated in the foreign commerce of th e United States a t any time within the period of te n years after the date of the sale, in competition with any other vessel owned by a cit izen or citizens of the United Sta tes and registere d under the laws thereof. SEC . 509 . Any citizen of the United States may make application to the Commission for aid in the construction of a new vessel to be operated in the domestic trade (excepting vessels engaged solely in the tran sport atio n of pro perty on inla nd ri vers and can als e xclu - sively) . If such application is approved by the Commission, the vessel may be constructed and sold to such applicant under the same terms and conditions as are provided in this Act for the construction and sale of vessels to be operated in foreign trade, but no construction subsidy shall be allowed (except for the cost of national-defense features w hich shall be pai d by the Commissi on), and the appl icant shall be required to pay the Commission not less than 25 per centum of the cost of such vessel (excluding cost of national-defense fea- Provisos. Surety bond . Documentation reƒ quirement. Disposition of vessels of insuf ficient co mmer- cial, etc ., value, trans- ferred to, or acquired by Commission. Aisle, p . 1986 . Provi so . Future operation of vessels. New vessels for do- mestic trade . Appli catio n by American citizens for aid in c onstr uctio n of . Construction and sale . No construction sub. sidy; exception. Amount of first pay- me nt.
