53 STAT.]
76TH CONG., 1ST SESS.-CH. 555 -AUG. 7, 1939
"The foregoing provision respecting the requisition or the acqui-
sition of ownership by the United States shall run with the title to
such vessel or vessels and be binding on all owners thereof."
SEC. 3. That section 902 of the Merchant Marine Act, 1936, as
amended (49 Stat. 2015; U. S . C., 1934 edition, Supp. IV, title 46,
sec. 1242), is amended to read as follows:
"SEO. 902. (a) Whenever the President shall proclaim that the
security of the national defense makes it advisable or during any
national emergency declared by proclamation of the President, it shall
be lawful for the Commission to requisition or purchase any vessel
or other watercraft owned by citizens of the United States, or under
construction within the United States, or for any period during such
emergency, to requisition or charter the use of any such property.
The termination of any emergency so declared shall be announced by
a further proclamation by the President. When any such property
or the use thereof is so requisitioned, the owner thereof shall be paid
just compensation for the property taken or for the use of such prop-
erty, but in no case shall the value of the property taken or used be
deemed enhanced by the causes necessitating the taking or use. If
any property is taken and used under authority of this section, but
the ownership thereof is not required by the United States, such prop-
erty shall be restored to the owner in a condition at least as good as
when taken, less ordinary wear and tear, or the owner shall be paid an
amount for reconditioning sufficient to place the property in such con-
dition. The owner shall not be paid for any consequential damages
arising from a taking or use of property under authority of this
section.
"(b) When any vessel is taken or used under authority of this sec-
tion, upon which vessel a construction-differential subsidy has been
allowed and paid, the value of the vessel at the time of its taking
shall be determined as provided in section 802 of this Act, and in
determining the value of any vessel taken or used, on which a con-
struction-differential subsidy has not been paid, the value of any
national defense features previously paid for by the United States
shall be excluded.
"(c) If any property is taken and used under authority of this sec-
tion, but the ownership thereof is not required by the United States,
the Conimission, at the time of the takiilg or as soon tlhereafter as the
exigencies of the situation may perlit, shall tralsmit to tile person
entitled to the possession of such property a charter setting forth the
terms which, in the Commission's judgment, should govern the rela-
tions between the United States and such person and a statement of
the rate of hire which, in the Commission's judgment, will be just
compensation for the use of such property and for the services
required under the terms of such charter. If such person does not
execute and deliver such charter and accept such rate of hire, the
Commission shall pay to such person on account of just compensation
a sum equal to 75 per centum of such rate of hire as the same may
from time to time be due under the terms of the charter so tendered,
and such person shall be entitled to sue the United States to recover
such further sum as added to such 75 per centum will make up such
amount as will be just compensation for the use of the property and
for the services required in connection with such use. In the event of
loss or damage to such property, due to operation of a risk assumed
by the United States under the terms of a charter prescribed in this
subsection, but no valuation of such vessel or other property or mode
of compensation has been agreed to, the United States shall pay just
compensation for such loss or damage, to the extent the person enti-
tled thereto is not reimbursed therefor through policies of insurance
against such loss or damage.
1255
Title.
49 Stat. 2015 .
46 U. S. C., Supp.
IV, § 1242.
Requisition, etc., of
vessels by Commis-
sion during national
emergency.
Vessels under con-
struction included.
Termination of
emergency.
Payment.
Property taken and
used but not required;
restoration to owner,
etc.
Determination
of
value of vessel taken
on which construction-
differential subsidy
has been paid.
Provision where
subsidy has not been
paid.
'r operty taken and
lsed bllt ownershli
not required by U.I.
Rate of hire.
Suit, etc., if amount
unsatisfactory.
Payment for loss or
damage due to Gov-
ernment operation.
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