74 TH C ONGRESS . SESS. II. CH. 858. JU NE 29, 1936 . or coastwise service, or own any pecuniary interest, directly or indirectly, in any person or concern that owns, charters, or operates any vessel or vessels in the domestic intercoastal or coastwise service, without the written permission of the Commission . Every person, firm, or corporation having any interest in such application shall be permitted to intervene and the Commission shall give a hearing to the applicant and the intervenors . The Commission shall not grant any such application if the Commission finds it will result in unfair competition to any person, firm, or corporation operating exclusively in the coastwise or intercoastal service or that it would be prejudicial to the objects and policy of this Act : Provided, T hat if such contractor or other person above-described or a predecessor in interest was in bona-fide operation as a common carrier by water in th e domest ic, inte rcoastal , or coa stwise t rade in 1935 ove r the route or rout es or in the tra de or tr ades for which a pplicati on is made and has so operated since that time or if engaged in furnish- ing seasonal service only, was in bona-fide operation in 1935 during the seas on ordinarily covered by it s operation, except in eit her event, as to interruptions of service over which the applicant or its pred- ecessor in interest had no control, the Commission shall grant such permission without requiring further proof that public interest and convenience will be served by such operation, and without further proce edings a s to the competi tion in such rou te or tr ade . If such application be allowed, it shall be unlawful for any of the pers ons mentioned in this secti on to divert, directly or indirectly, any moneys, property, or other thing of value, used in foreign-trade opera tions, f or which a subsi dy is pa id by th e United States, into any such coastwise or intercoastal operations
- and wh osoever shall
viola te this provisio n shall be guilt y of a m isdemean or . (b) Whenever any contractor under title VI or title VII receiving an operating-differential subsidy is in default with respect to any mortg age, not e, purch ase cont ract, or other o bligatio n to the Com- mission, or has not maintained, in a . manner satisfactory to the Commi ssion, a ll of th e reserv es provi ded for in this Act, the Com- mission shall have the right to supervise the number and compen- sation of all officers and employees of the contractor (c) no director, officer, or employee (which terms shall be construed in the broadest sense to include, but not to be limited to, managing trustee or other adminis trative agent) s hall rec eive fro m any co ntractor , holdin g a contract authorized by title VI or title VII of this act and its affiliate, subsidiary, a ssociate, dire ctly or indir ectly, wages, salary, allowan ces of c ompensat ion in a ny form for pers onal ser vices wh ich will result in such person's receiving a total compensation for his personal services from such sources exceeding in amount or value $25,000 per annum, and no such person or concern shall be qualified to receive or thereafter to hold any contract under this part, if such person or c oncern its su bsidiary, affi liate, or ass ociate pays o r causes to be paid, directly or indirectly, wages, salary, allowances, or com- pensation in any form for personal services which result in such pers on's rec eivi ng a tot al c ompe nsat ion for his pers onal ser vice s fr om such sources exceedinge in amount or value $25,000 per annum . (d ) It sha ll be un lawful, without express written consent of the Commiss ion, for any con tractor holding a contra ct autho rized un der title VI or VII of this Act to employ any other person or concern as the managing or oper ating ag ent of s uch oper ator, or to char ter any vessel, on which an operating-differential subsidy is to be paid, for ope ration b y anothe r person or conc ern, and if such charter is made, the person or concern operating the chartered vessel or vessels shall be su bject to all the terms and provisions of this Act, in cluding 2013 Permission by Co m- mission . Denial of ap plication if resulting in unfair compe titi on, etc . Proviso . Co ntr act or, etc ., in operation in 1935, op- erati ngse ason alse rvic e . Diverting foreign trade ope ra tio ns for which subsidy pa id in- to coastwise, etc., opera- tions . Penalt y . Contractor receiving operating subsidy in default as to note, etc . Co mmi ssi on au th or- iz ed to supervise nu m- ber and pay of per- sonnel . Ante, pp . 2001, 2U08. Salary limita tion . Penalty for violation. Unauthorized em- ployment of ma nag ing or operating agent of operator . Charter of vessel on which subsidy paid for opera tion by a nother .
