Page:United States Statutes at Large Volume 60 Part 1.djvu/72

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79TH CONG., 2D SESS.-CH. 82-MAR. 8 , 1946 of the various member nations of the United Nations, incurred in the interests of the war effort, have been overcome, and the relative effects of such losses upon the national economy of such member nations. (b) After the cessation of hostilities, operation of vessels in com- mercial service by the United States, either for its own account or through operating agents under agency agreements, shall, except as to the Panama Railroad Company and other services specifically authorized by law, be continued only to the extent necessary to effect orderly transfer of vessels to private operation. EXCHANGE OF VESSELS SEC. 8. (a) The Commission is authorized to acquire, in exchange for an allowance of a credit on the purchase of any war-built vessel under section 4 or any vessel acquired through exchange under sub- section (d) of this section- (1) Any vessel owned by a citizen of the United States, other than a vessel purchased under this Act; or (2) Any vessel owned by a foreign corporation, if- (A) the vessel was constructed in the United States, and has, after December 7, 1941, been chartered to, or otherwise taken for use by, the United States; and (B) the controlling interest in such corporation is, at the time of acquisition of such vessel hereunder, owned by a citizen or citizens of the United States, and has been so owned for a period of at least three years immediately prior to such acquisition; and (C) such corporation agrees that the war-built vessel pur- chased with the use of such credit shall be owned by such citizen or citizens and shall be documented under the laws of the United States. Such allowance shall not be applied upon the cash payment required under section 4. A war-built vessel shall be deemed a "new vessel" for the purpose of section 511 of the Merchant Marine Act, 1936, as amended, and section 510 (e) of such Act shall be applicable with respect to vessels exchanged under this section to the same extent as applicable to obsolete vessels exchanged under section 510 of such Act. (b) (1) If, prior to December 31, 1946, the owner of a vessel eligible for exchange under subsection (a) makes a firm offer binding for at least ninety days, to transfer the vessel to the Commission in exchange for an allowance of credit provided in subsection (a), the amount of such allowance shall be the fair and reasonable value of the vessel as determined by the Commission under this section. In making such determination the Commission shall consider: (A) The value of the vessel determined in accordance with the standards of valuation estab- lished pursuant to Executive Order 9387 (8 F. R . 14105) as of the date of such offer, (B) any liability of the United States for repair and restoration of the vessel, (C) the utility value of the vessel, (D) the effect of this Act upon the market value of such vessel, and (E) the public interest in promoting exchanges of vessels as a means of rehabilitating and modernizing the American merchant marine. In no event shall the amount of such allowance, in case of dry cargo vessels and tankers, exceed (A) (1) if the vessel or vessels tendered in exchange are of equal or greater dead-weight tonnage than the war-built vessel or vessels being acquired, 331/3 per centum of the statutory sales price (unadjusted) of the war-built vessel or vessels, or (2) if the vessel or vessels tendered in exchange are of lesser dead- weight tonnage than the war-built vessel or vessels, such proportionate part of 331/3 per centum of the statutory sales price (unadjusted) of such war-built vessel or vessels as the dead-weight tonnage of such Operation after ces- sation of hostilities. Credit allowance. 54 Stat. 1106; 53 Stat. 1184. 46 U.8. 0. i 1161, 1160 (e); Supp. V. § 1161. Amount of allow- ance. 50 U. S. C., Supp. V, app. § 1295 note. Dry cargo vessels and tankers. 45 60 STAT.]