Chapter 157. To confer on the President power to prescribe charter rates and freight rates and to requisition vessels, and for other purposes
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CHAP. 157.— An Act To confer on the President power to prescribe charter rates and freight rates and to requisition vessels, and for other purposes. July 18, 1918. [[H. R. 12099](/us/bill/65/hr/12099).] [[Public, No. 202](/us/pl/65/202).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That when used in this Act—Shipping charters, etc. Terms construed. “United States.”
(a)The term “United States” includes any State, Territory, or District of the United States, the insular possessions, the Canal Zone, and all lands or waters subject to the jurisdiction of the United States.
(b)The term “person” includes corporations, partnerships, associations,“Person.” and States, municipalities, and other subdivisions thereof.
(c)The term “charter” means any agreement, contract, lease, or “Charter.”commitment by which the possession or services of a vessel are secured for a period of time, or for one or more voyages, whether or not a demise of the vessel. Sec. 2. That the President may exercise the power and authorityPowers vested in the President may be delegated. hereby vested in him through such agency or agencies as he shall determine from time to time. Sec. 3. That all power and authority hereby vested in the PresidentAuthority, etc., to cease st end of war. or by him delegated and all restrictions imposed in this Act shall cease upon the proclamation of the final treaty of peace between the United States and the Imperial German Government: *Provided*,*Proviso*. Extension allowed. That if, in the judgment of the President, the tonnage shortage at such time is so severe that national interests of the United States are jeopardized, he may, by proclamation, extend the provisions of this Act for a further period of not exceeding nine months. Sec. 4. That the powers herein conferred shall be without prejudiceNo other power restricted. to any power heretofore conferred on the President, or by him delegated. Sec. 5. That the President may, by proclamation, require thatCharters of specified vessels, etc., must be approved. *Post*, p. 1810. vessels of the United States of any specified class or description, or in any specified trade or trades, shall not be chartered unless the instrument in which such charter is embodied, and the rates, terms, 914Making, etc., without approval, unlawful.and conditions thereof are first approved by him. Whenever any vessel is comprised in any such proclamation, it shall be unlawful to make any charter thereof, or comply with or perform any of the rates, terms, or conditions of any charter thereof, or to operate such vessel under any charter, without first obtaining the approval thereof by the President. No unauthorized changes, etc., allowed.Whenever any charter of such vessel is approved, it shall be unlawful, without the approval of the President first obtained, to make any alterations in such charter, or additions thereto or deletions therefrom, or to make or receive any payment or do any act with respect to such vessel, except in accordance with such charter. Sec. 6. Freight rates, etc., may be prescribed. That the President shall have power to determine, prescribe, and enforce reasonable freight rates and the terms and conditions of affreightment which shall govern the transportation of goods on vessels of the United States, which shall be filed with the Unauthorized charges, etc., unlawful.United States Shipping Board and open to public inspection. It shall be unlawful to charge or collect any compensation for the transportation of goods on any such vessel, or to enforce or attempt to enforce any terms or conditions of affreightment, or to make or receive any payment or do any act with respect to such transportation, not in accordance with the rates, terms, and conditions so prescribed, anything in any contract, whether heretofore or hereafter made, to the contrary notwithstanding. Sec. 7. Priority in carriage, etc., may be prescribed. That the President shall have power to prescribe the order of priority in which goods shall be carried or other services performed by any vessel of the United States and to specify goods which shall be carried or to direct the voyage or employment of any such vessel and to make such rules, regulations, and orders, with respect to any such vessel, relating to the loading, discharging, lighterage, or storage of goods, or the procurement of bunker fuel, or any other matter relating to the receiving, handling, transporting, storing, or delivering of goods, as may m his judgment be necessary and proper for the efficient utilization of transportation facilities and the effective conduct of the war. Sec. 8. Extension to foreign vessels chartered by Citizens. That the President may by proclamation extend the provisions of sections five, six, and seven, or any of them, to any vessel of foreign nationality under charter to a citizen of the United States or other person subject to the jurisdiction thereof. Sec. 9. Regulations for protection of shipping authorized. That the President shall have power to make such rules, regulations, and orders regarding voyages, courses, the use of protective devices, and any other matters affecting the navigation, equipment, fueling, painting, or arming of vessels of the United States as may, in his judgment, be conducive to the protection of such vessels from submarines, mines, or other war perils, any expense so incurred to be allowed for in determining freight and charter rates Exclusion of vessels from a danger zone.under this Act. If in his judgment any vessel or class of vessels on account of size, speed, structure, method of propulsion, or for any other reason is unfit for service in any waters which he may declare to be a danger zone, he may, by order, exclude such vessel or vessels Violations unlawful.from such danger zone. It shall be unlawful to violate any order, Confidential rules, etc.rule, or regulation made under this section. Rules, regulations, or orders issued under this section may, in the discretion of the President, be issued confidentially, in which event they shall be binding only on such persons as have notice thereof. Sec. 10. Foreign vessels chartered by citizens, etc., may require approval. That the President may by proclamation require that no citizen of the United States, or other person subject to the jurisdiction thereof, shall charter any vessel of foreign nationality unless the instrument in which such charter is embodied and the rates, terms, and conditions thereof are first approved by the President. Unapproved charters, etc., unlawful.After the making of such proclamation it shall be unlawful for any such citizen or person to make any charter of any such vessel, or 915comply with or perform any of the rates, terms, or conditions of any charter thereof, or to operate any such vessel under any charter, without first obtaining the approval thereof by the President. Whenever any such charter is approved it shall be unlawful,Unauthorized changes, etc., prohibited. without the approval of the President first obtained, to make any alterations in such charter or additions thereto or deletions therefrom, or to make or receive any payment or do any act with respect to such vessel, except in accordance with such charter. Sec. 11. That the President shall have power to requisition forVessels may be requisitioned for public purposes. military purposes, or for any other national purpose connected with or arising out of the present war, the temporary possession of any vessel, or, without taking actual possession, to requisition the services of any vessel and to require the person entitled to the possession thereof to issue to the master such instructions as may be necessary to place the vessel at the service of the United States. Upon requisitioning such possession or services, or as soon thereafterCharters to be submitted therefor. as the exigencies of the situation may permit, the President shall transmit to the person entitled to the possession of such vessel a charter setting forth the terms which, in his judgment, should govern the relations between the United States and such person and a statement of the rental or rate of hire which, in his judgment, will be just compensation for the use of such vessel and for the services required under the terms of such charter. If such person does notCompensation if charters not accepted. execute and deliver such charter and accept such rental or rate of hire, the President shall pay to such person a sum equal to seventy-five per centum of such rental or rate of hire as the same may from time to time be due under the terms of the charter, and such personSuit if sum unsatisfactory. shall be entitled to sue the United States to recover such further sum as added to such seventy-five per centum will make up such amount as will be just compensation for the use of the vessel and for the services required. In the event of loss of or damage to suchCompensation for loss of vessel, etc. vessel, due to the operation of a risk assumed by the United States under the terms of such charter (in the event that no valuation of such vessel or mode of compensation has been agreed to), the United States shall pay just compensation for such loss or damage, to be determined by the President; and if the amount so determined is notSuit if amount unsatisfactory. satisfactory to the person entitled to receive just compensation, the President shall pay to such person seventy-five per centum of the amount so determined, and such person shall be entitled to sue the United States to recover such further sum as added to such seventy-five per centum will make up such amount as will be just compensation. Sec. 12. That the President shall have power to prescribe the orderPriority in serving vessels at docks, charges, etc., may be prescribed. of priority in which persons in possession of dry docks, wharves, lighterage systems, or loading or discharging terminal facilities in any port of the United States, or warehouses, equipment or terminal railways connected therewith, shall serve vessels and shippers, and to determine, prescribe, and enforce the rates, terms, and conditions charged or required for the furnishing of such services, including stevedoring and handling of cargo, and the handling, dispatching, and bunkering of vessels, and to make such rules and regulations with respect to the conduct of any such business as may be necessary and proper. It shall be unlawful to charge, collect, or claim anyUnauthorized charges, terms, etc., unlawful. compensation, or to enforce or attempt to enforce any terms or conditions, or to make or receive any payment or do any act, with respect to any such service not in accordance with the rates, terms, and conditions so prescribed, anything in any contract, whether heretofore or hereafter made, to the contrary notwithstanding. Sec. 13. That the President shall have power to lease or requisitionDry docks, shipping facilities, etc., may be leased or requisitioned. the use or temporary possession of, or to assume temporary control of, any dry docks, wharves, or loading or discharging terminal 916facilities, in any port of the United States, or warehouses, equipment, or terminal railways connected therewith. Compensation for control, etc.Whenever the President requisitions or assumes control of any such property, the United States shall pay just compensation Suit if amount unsatisfactory.therefor, to be determined by the President. If the amount so determined is not satisfactory to the person entitled to receive just compensation, the President shall pay to such person seventy-five per centum of the amount so determined and such person shall be entitled to sue the United States to recover such further sum as added to such seventy-five per centum will make up such amount as will be just compensation. Immediate possession to be taken.Whenever the President acquires by purchase, lease, or requisition, or assumes control of any such property immediate possession may be taken thereof to the extent of the interest acquired therein, and Restrictions waived. [R. S., sec. 355, p. 60](/us/rs/s355/p60).such property may be immediately occupied and used without regard to the provisions of section three hundred and fifty-five of the Revised Statutes. No State, etc., property to be taken.Nothing in this section shall authorize the President to requisition the title to any such property owned by any State, municipality, or subdivision thereof. Sec. 14. Procedure in suits. Vol. 36, pp. 1003, 1136. That whenever by this Act permission is given to sue the United States such suit shall be brought in the manner provided in section twenty-four, paragraph twenty, and section one hundred and forty-five of the Judicial Code. Sec. 15. Operation of vessels, docks, etc., under direction of the President. That all vessels of which the possession or services are requisitioned under this Act, and all dry docks, wharves, loading or discharging terminal facilities, warehouses, equipment, or terminal railways, of which the President may acquire the title or possession or of which he may assume control under this Act, may be operated Proceeds to constitute a separate fund. Public Laws, 1st secs., pp. 75, 182.and managed as the President may from time to time direct. The net proceeds derived from any activity authorized in this Act or the joint resolution of May twelfth, nineteen hundred and seventeen (Public Numbered Two), or the division entitled “Emergency shipping fund” of the Act of June fifteenth, nineteen hundred and seventeen (Public Numbered Twenty-three), shall be deposited in the Use specified.Treasury in a separate and distinct fund and may be expended by the President in carrying out the purposes of this Act, and within the limits of the amounts heretofore or hereafter authorized, for the *Proviso*. Inland navigation not included.construction, requisitioning, or purchasing of vessels: *Provided*, That none of the provisions of this Act shall apply to vessels plying exclusively on the inland rivers and canals of the United States. Sec. 16. Punishment for violations. That whoever does or attempts to do anything in this Act declared to be unlawful, or willfully violates any rule, regulation, or order issued under authority conferred herein, shall be punished by a fine of not more than $5,000 or by imprisonment for not *Proviso*. Canal Zone offenses.more than two years, or both: *Provided*, That the district court of the Canal Zone shall have jurisdiction of offenses committed against the provisions of this Act within the Canal Zone. Sec. 17. Invalidity of any provision not to affect remainder of Act. That if any provision of this Act, or the application of such provision to certain circumstances, is held unconstitutional, the remainder of the Act, and the application of such provision to circumstances other than those as to which it is held unconstitutional, shall not be affected thereby. Approved, July 18, 1918.