PUBLIC LAWS-CH. 600 -JUNE 23, 1938 Proviso. Transfer of obliga- tions. 49 Stat. 2009. Payment of operat- ing-differential subsi- dies to charterers. 49 Stat. 2011 . Essential trade routes, finding by Commission of in- ability to develop, etc., under private operation. Construction of ves- sels and demise under bare-boat charter. Option to purchase. Interest rate. Deferred payments, limitation. 49 Stat. 2011. Contract provisions. Purchase or requi- sition of vessels, etc., on which subsidy paid. Amount ofpayment to owner. Computation of depreciated value. loan by the Reconstruction Finance Corporation would be in further- ance of the policies of this Act or would, in its opinion, preserve or protect its mortgage interest in said subsidized vessel: Provided, That the obligations evidencing such loans by the Reconstruction Finance Corporation shall not be transferred, except to some other govern- mental agency." SEC. 31. Section 708 of such Act is amended to read as follows: "SEc. 708. The Commission may, if in its discretion financial aid is deemed necessary, enter into a contract with any charterer of its vessels for payment to such charterer of an operating-differential subsidy upon the same terms and conditions and subject to the same limitations and restrictions, where applicable, as are elsewhere pro- vided in this Act with respect to payments of such subsidies to operators of privately owned vessels." SEC. 32. Section 714 of such Act is amended to read as follows: "SEC. 714 . If the Commission shall find that any trade route (deter- mined by the Commission to be an essential trade route as provided in section 211 of this Act) cannot be successfully developed and main- tained and the Commission's replacement program cannot be achieved under private operation of such trade route by a citizen of the United States with vessels registered under the laws thereof, without further Government aid in addition to the financial aids authorized under titles V and VI of this Act, the Commission is authorized to have constructed, in private shipyards or in navy yards, the vessel or vessels of the types deemed necessary for such trade route, and to demise such new vessel or vessels on bare-boat charter to the American-flag operator established on such trade route, without advertisement or competition, upon an annual charter hire of not less than 5 per centum of the construction cost of such new vessel or vessels. Such charter may contain an option to the charterer to purchase such vessel or vessels from the Commission, within five years after the execution of the charter, upon the same terms and conditions as are provided in title V for the purchase of new vessels from the Com- mission and upon the agreement of the purchaser to pay interest at the rate of 31/, per centum per annum upon all unpaid portions of the purchase price from the date of the delivery of the vessel to the purchaser under the charter agreement with credit on the purchase price for all charter hire theretofore paid by the purchaser on account of such charter. If the option to purchase is cxercised, the deferred payments of the purchase price shall not be extended beyond the life of the vessel computed on a twenty-year expectancy.'" SEC. 33 . Section 802 of such Act is amended to read as follows: "SEC. 802. Every contract executed by the Commission under author- ity of title V of this Act shall provide that- "In the event the United States shall, through purchase or requisi- tion, acquire ownership of the vessel or vessels on which a construc- tion-differential subsidy was paid, the owner shall be paid therefor the fair actual value thereof, but in no event shall such payment exceed the actual depreciated construction cost thereof (together with the actual depreciated cost of capital improvements thereon, but excluding the cost of national-defense features) less the depreciated amount of construction-differential subsidy theretofore paid incident to the construction or reconditioning of such vessel or vessels, or the fair and reasonable scrap value of such vessel as determined by the Commission, whichever is the greater. Such determination shall be final. In computing the depreciated value of such vessel, depreciation shall be computed on each vessel on the schedule adopted by the Bureau of Internal Revenue for income-tax purposes. 962 [52 STAT.
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