74rii C ONGRESS . SESS. II. CH. 858 . JU NE 29, 1936 .
2 009 ing agreements as the Commission may deem advantageous, but the Commission shall arrange as soon as practicable to offer all such lines of vessels for charter as hereinafter provided and all operation of the Commission's vessels by private operators under such operat- ing agreements shall be discontinued within one year after the pas- sage of this Act . SEC . 705 . As soon as racticable after the
of this Act and Trace routes, essen. 1>
passage
tial to foreign trade . Use of Commission's vessels on. continuing thereafter, the Commission shall arrange for the employ- ment of its vessel s in steamship lines on suc h trade route s, exclusively serving the foreign trade of the United States, as the Commission shall determine are necessary and essential for the development and maintenance of the commerce of the United States and the national defense : Provided, That such needs are not being adequately served by existing steamship lines privately owned and operated by citizens of the United States and documented under the laws of the United States . It shall be the policy of the Commission to encourage pri- vate operation of each essential steamship line now owned by the United States by selling such lines to citizens of the United States in the manner provided in section 7 of the Merchant Marine Act, 1920, an d in strict a ccordance with the provisio ns of section 5 of said Act, or by demising its vessels on bare-boat charter to citizens of the United States who shall agree to maintain such line or lines in the manner hereinafter provided . SEC. 706. (a) The Commission shall not charter its vessels to pri- vate operators except upon competitive sealed bids submitted in strict compliance with all the terms and conditions of a public advertise- ment soliciting such bids . Each and every advertisement for bids to charter the Com mission' s vessel s shall state th e number , type, and tonnage of the vessels the Commission is offering for bare-boat charter for operation as a steamship line on a designated trade route, the minimum number of sailings that will be required, the length of time for which the charter will be given, and all other information the Commission shall deem necessary for the information of pros ective bidders . ( bb) The Commission shall have authority to, and shall announce in its advertisements for bids that the Commission reserves the right to, reject any and all b ids submitted . SEC . 707. (a) The Commission shall award the charter to the bidder proposing to pay the highest monthly charter hire unless the Commission shall reject such bid for the reasons set forth in subsec- tion (b) of this section . (b) The Commission may reject the highest or most advantageous or any other bid, if, in the Commission's discretion, the charter hire offered is deemed too low, or the Commission determines that the bid- der lacks suff icient capita l, credit, or experience to operate succ ess- fully the line ; but the reason or reasons for rejection of any bid, upon request of the bidder, shal l be stated t o such bidder in writing . (c) If the highest bid is rejected, the Commission may award the charter to the next highest bidder, or m ay reject all bids and read ver- tise the line : Provided, however, That the Commi ssion may op erate the line until conditions appear to be more favorable for a reoffering of the line for private charter . SEC. 708 . The Commission may, if in its discretion financial aid is deemed necessary, enter into a contract with any charterer of its ves- sels for payment to such charterer of an operating-differential sub- sidy upon the same terms and conditions and subject to the same lim- itations and restrictions as are elsewhere provided in this Act with respect to payments of such subsidies to operators of privately owned vessels. Precise . Needs not ad e- quately served . Sale of lines to citi- zens. Vol.41,pp.991,990. Demising of vessels on bare-boat charters. Chartering to pr ivate o perat ors ; competitive bids . Advertisements ; specifications . Reject ion of bids . Awards. Right to reject re- ser ved . If highest bid re- jected . Precise . Provisional opera- tion . Contracts wi th cbar- terers for payment of operating-differential subsidy . Terms, conditions, limitations, etc .
