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Code · STATUTES-AT-LARGE · Vol. 41 STAT. · June 5, 1920 · Chapter 250

Chapter 250. To provide for the promotion and maintenance of the American merchant marine, to repeal certain emergency legislation, and provide for the disposition, regulation, and use of property acquired thereunder, and for other purposes

14,724 words·~67 min read·/statutes-at-large/vol-41/chapter-250-4143660·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

CHAP. 250.— An Act To provide for the promotion and maintenance of the American merchant marine, to repeal certain emergency legislation, and provide for the disposition, regulation, and use of property acquired thereunder, and for other purposes. June 5, 1920. [[H. R. 10378](/us/bill/66/hr/10378).] [[Public, No. 261](/us/pl/66/261).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, * Merchant Marine Act, 1920.Policy for development of an American merchant marine, etc., declared.
That it is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the United States shall have a merchant marine of the best equipped and most suitable types of vessels sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary in time of war or national emergency, ultimately to be owned and operated privately by citizens of the United States; and it is hereby declared to be the policy of the United States to do whatever may be necessary to develop and encourage the maintenance of such a merchant marine, and, in so far as may not be inconsistent with the express provisions of this Act, the United States Shipping Board shall, in the disposition ofShipping Board to execute provisions relating thereto. vessels and shipping property as hereinafter provided, in the making of rules and regulations, and in the administration of the shipping laws keep always in view this purpose and object as the primary end to be attained.
Sec. 2.
(a)That the following Acts and parts of Acts are herebyDesignated legislation repealed. repealed, subject to the limitations and exceptions hereinafter, in this Act, provided:
(1)The emergency shipping fund provisions of the Act entitledEmergency shipping fund provisions.Vol. 40, p. 182. “An Act making appropriations to supply urgent deficiencies in appropriations for the Military and Naval Establishments on account of war expenses for the fiscal year ending June 30, 1917, and forTransporting shipyard employees.Vol. 40, p. 535. other purposes,” approved June 15, 1917, as amended by the Act entitled “An Act to amend the emergency shipping fund provisions of the Urgent Deficiency Appropriation Act, approved June 15, 1917, so as to empower the President and his designated agents to take over certain transportation systems for the transportation of shipyard and plant employees, and for other purposes,” approved April 22, 1918, and as further amended by the Act entitled “An ActAcquiring shipbuilding plants, etc.Vol. 40, p. 1022. making appropriation to supply deficiencies in appropriations for the fiscal year ending June 30, 1919, and prior fiscal years, on account of war expenses, and for other purposes,” approved November 4, 1918;
(2)Section 3 of such Act of April 22, 1918;Compensation for street railroads, etc.Vol. 40, p. 535.
(3)The paragraphs numbered 2 and 3 under the heading “EmergencyAppropriation for plants, etc.Vol. 40, p. 1022. shipping fund” in such Act of November 4, 1918; and
(4)The Act entitled “An Act to confer on the President power toControl of shipping charters.Vol. 40, p. 913. prescribe charter rates and freight rates and to requisition vessels, and for other purposes,” approved July 18, 1918.
(5)Sections 5, 7, and 8, Shipping Act, 1916.Construction, etc., by Shipping Board.Vol. 39, p. 730.
(b)The repeal of such Acts or parts of Acts is subject to the followingLimitations on repeals. limitations:
(1)All contracts or agreements lawfully entered into before theExisting contracts assumed. passage of this Act under any such Act or part of Act shall be assumed and carried out by the United States Shipping Board, hereinafter called “the board.”
(2)All rights, interests, or remedies accruing or to accrue as aAccruing rights, etc., declared valid. result of any such contract or agreement or of any action taken in pursuance of any such Act or parts of Acts shall be in all respects as valid, and may be exercised and enforced in like manner, subject989 to the provisions of subdivision
(c)of this section, as if this Act had not been passed.
(3)The repeal shall not have the effect of extinguishing anyIncurred penalties to be enforced. penalty incurred under such Acts or parts of Acts, but such Acts or parts of Acts shall remain in force for the purpose of sustaining a prosecution for enforcement of the penalty therein provided for the violation thereof.
(4)The board shall have full power and authority to complete orCompletion of construction work authorized. conclude any construction work begun in accordance with the provisions of such Acts or parts of Acts if, in the opinion of the board, the completion or conclusion thereof is for the best interests of the United States.
(c)As soon as practicable after the passage of this Act the boardEarly liquidation of pending matters, directed. shall adjust, settle, and liquidate all matters arising out of or incident to the exercise by or through the President of any of the powers or duties conferred or imposed upon the President by any such Act or parts of Acts; and for this purpose the board, instead of theBoard to determine compensation. President, shall have and exercise any of such powers and duties relating to the determination and payment of just compensation: *Provided, *That any person dissatisfied with any decision of the board*Proviso.*Suit if decision unsatisfactory. shall have the same right to sue the United States as he would have had if the decision had been made by the President of the United States under the Acts hereby repealed. Sec. 3.
(a)That section 3 of the “Shipping Act, 1916,” is amendedShipping Act, 1916. Vol. 39, p. 729,amended. to read as follows: " “Sec. 3. That a board is hereby created to be known as theUnited States Shipping Board.Creation, appointment, etc. United States Shipping Board and hereinafter referred to as the board. The board shall be composed of seven commissioners, to be appointed by the President, by and with the advice and consent of the Senate; and the President shall designate the member to act as chairman of the board, and the board may elect one of its members as vice chairman. Such commissioners shall be appointed as soonTenure of office. as practicable after the enactment of this Act and shall continue in office two for a term of one year, and the remaining five for terms of two, three, four, five, and six years, respectively, from the date of their appointment, the term of each to be designated by the President, but their successors shall be appointed for terms of six years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he succeeds. “The commissioners shall be appointed with due regard to theirQualifications, and geographical distribution of commissioners. fitness for the efficient discharge of the duties imposed on them by this Act, and two shall be appointed from the States touching the Pacific Ocean, two from the States touching the Atlantic Ocean, one from the States touching the Gulf of Mexico, one from the States touching the Great Lakes and one from the interior, but not more than one shall be appointed from the same State. Not more than four of thePolitical division. commissioners shall be appointed from the same political party. A vacancy in the board shall be filled in the same manner as the originalPecuniary prohibition. appointments. No commissioner shall take any part in the consideration or decision of any claim or particular controversy in which he has a pecuniary interest. “Each commissioner shall devote his time to the duties of hisOther employment, etc., forbidden. office, and shall not be in the employ of or hold any official relation to any common carrier or other person subject to this Act, nor while holding such office acquire any stock or bonds thereof or become pecuniarily interested in any such carrier. “The duties of the board may be so divided that under its supervisionDivision of duties, etc. the directorship of various activities may be assigned to one or more commissioners. Any commissioner may be removed by the President for inefficiency, neglect of duty, or malfeasance in office.990 A vacancy in the board shall not impair the right of the remaining members of the board to exercise all its powers. The board shallSeal. have an official seal, which shall be judicially noticed. “The board may adopt rules and regulations in regard to its procedureBusiness procedure, legal assistance, etc. and the conduct of its business. The board may employ within the limits of appropriations made therefor by Congress such attorneys as it finds necessary for proper legal service to the board in the conduct of its work, or for proper representation of the public interest in investigations made by it or proceedings pending before it whether at the board’s own instance or upon complaint, or to appear for or represent the board in any case in court or other tribunal. The board shall have such other rights and perform such other dutiesDuties, etc., of existing board continued. not inconsistent with the Merchant Marine Act, 1920, as are conferred by existing law upon the board in existence at the time this section as amended takes effect. “The commissioners in office at the time this section as amendedTemporary continuance of present commissioners. takes effect shall hold office until all the commissioners provided for in this section as amended are appointed and qualify.” "
(b)The first sentence of section 4 of the “Shipping Act, 1916,”Vol. 39, p. 729, amended. is amended to read as follows: " “Sec. 4. That each member of the board shall receive a salary ofSalary of members. $12,000 per annum.” " Sec. 4. That all vessels and other property or interests of whatsoeverAll Government acquired vessels, etc., transferred to Board. kind, including vessels or property in course of construction or contracted for, acquired by the President through any agencies whatsoever in pursuance of authority conferred by the Acts or parts of Acts repealed by section 2 of this Act, or in pursuance of the jointEnemy vessels. Vol. 40, p. 75. resolution entitled. “Joint resolution authorizing the President to take over for the United States the possession and title of any vessel within its jurisdiction, which at the time of coming therein was owned in whole or in part by any corporation, citizen, or subject of any nation with which the United States may be at war, or was under register of any such nation, and for other purposes,” approved May 12, 1917, with the exception of vessels and property the use of which is in theIn Government use excepted. opinion of the President required by any other branch of the Government service of the United States, are hereby transferred to the board: *Provided, *That all vessels in the military and naval service of the*Proviso.*Others under War or Navy Departments exempt herefrom. United States, including the vessels assigned to river and harbor work, inland waterways, or vessels for such needs in the course of construction or under contract by the War Department, shall be exempt from the provisions of this Act. Sec. 5. That in order to accomplish the declared purposes of thisSales of acquired vessels to citizens directed. Act, and to carry out the policy declared in section 1 hereof, the board is authorized and directed to sell, as soon as practicable, consistent with good business methods and the objects and purposes to be attained by this Act, at public or private competitive sale after appraisement and due advertisement, to persons who are citizens ofException.Post, p. 991. the United States except as provided in section 6 of this Act, all of the vessels referred to in section 4 of this Act or otherwise acquiredTerms, etc. by the board. Such sale shall be made at such prices and on such terms and conditions as the board may prescribe, but the completion of the payment of the purchase price and interest shall not be deferred more than fifteen years after the making of the contract of sale.Considerations entering into price fixing. The board in fixing or accepting the sale price of such vessels shall take into consideration the prevailing domestic and foreign market price of, the available supply of, and the demand for vessels, existing freight rates and prospects of their maintenance, the cost of constructing vessels of similar types under prevailing conditions, as well as the cost of the construction or purchase price of the vessels to be sold, and any other facts or conditions that would influence a prudent, solvent business man in the sale of similar vessels or prop-991erty which he is not forced to sell. All sales made under the authorityCoastwise trade limitations.*Post*, p. 994. of this Act shall be subject to the limitations and restrictions of section 9 of the “Shipping Act, 1916,” as amended. Sec. 6. That the board is authorized and empowered to sell toPermissive sales to aliens. aliens, at such prices and on such terms and conditions as it may determine, not inconsistent with the provisions of section 5 (except that completion of the payment of the purchase price and interest shall not be deferred more than ten years after the making of the contract of sale), such vessels as it shall, after careful investigation, deem unnecessary to the promotion and maintenance of an efficient American merchant marine; but no such sale shall be made unless theCondition, etc. board, after diligent effort, has been unable to sell, in accordance with the terms and conditions of section 5, such vessels to persons citizens of the United States, and has, upon an affirmative vote of not less than five of its members, spread upon the minutes of the board, determined to make such sale; and it shall make as a part of itsInterest on deferred payments. records a full statement of its reasons for making such sale. Deferred payments of purchase price of vessels under this section shall bear interest at the rate of not less than 5| per centum per annum, payable semiannually. Sec. 7. That the board is authorized and directed to investigateInvestigation, etc., for establishing steamship lines to promote foreign and coastwise trade, etc. and determine as promptly as possible after the enactment of this Act and from time to time thereafter what steamship lines should be established and put in operation from ports in the United States or any Territory, District, or possession thereof to such world and domestic markets as in its judgment are desirable for the promotion, development, expansion, and maintenance of the foreign and coastwiseType, etc., of vessels. trade of the United States and an adequate postal service, and to determine the type, size, speed, and other requirements of the vessels to be employed upon such lines and the frequency and regularity of their sailings, with a view to furnishing adequate, regular, certain,Disposal of acquired vessels to citizens agreeing to operate such lines. and permanent service. The board is authorized to sell, and if a satisfactory sale can not be made, to charter such of the vessels referred to in section 4 of this Act or otherwise acquired by the board, as will meet these requirements to responsible persons who are citizens of the United States who agree to establish and maintain such lines upon such terms of payment and other conditions as the board may deem just and necessary to secure and maintain the serviceTemporary operation by Board, if none by citizens obtained. desired; and if any such steamship line is deemed desirable and necessary, and if no such citizen can be secured to supply such service by the purchase or charter of vessels on terms satisfactory to the board, the board shall operate vessels on such line until the business is developed so that such vessels may be sold on satisfactory terms and the service maintained, or unless it shall appear within a reasonable time that such line can not be made self-sustaining. TheRates for ocean mail service, allowed.Vol. 26, p. 832. Postmaster General is authorized, notwithstanding the Act entitled “An Act to provide for ocean mail service between the United States and foreign ports, and to promote commerce,” approved March 3, 1891, to contract for the carrying of the mails over such lines at such price as may be agreed upon by the board and the Postmaster General: *Provided, *That preference in the sale or assignment of*Provisos.*Preference in sales, etc., of vessels therefor. vessels for operation on such steamship lines shall be given to persons who are citizens of the United States who have the support, financial and otherwise, of the domestic communities primarily interested in such lines if the board is satisfied of the ability of such persons to maintain the service desired and proposed to be maintained, or to persons who are citizens of the United States who may then be maintaining a. service from the port of the United States to or in the general direction of the world market port to which the board has determined that such service should be established: *Provided further,* 992 That where steamship lines and regular service have been establishedContinuation of present service. and are being maintained by ships of the board at the time of the enactment of this Act, such lines and service shall be maintained by the board until, in the opinion of the board, the maintenance thereof is unbusinesslike and against the public interests: *And provided Rates for Government service not to be less than cost, if citizens are operating same service. further, *That whenever the board shall determine, as provided in this Act, that trade conditions warrant the establishment of a service or additional service under Government administration where a service is already being given by persons, citizens of the United States, the rates and charges for such Government service shall not be less than the cost thereof, including a proper interest and depreciation charge on the value of Government vessels and equipment employed therein. Sec. 8. That it shall be the duty of the board, in cooperation withInvestigation directed for developing water commerce transportation facilities, etc.Extent of, designated. the Secretary of War, with the object of promo ting, encouraging, and developing ports and transportation facilities in connection with water commerce over which it has jurisdiction, to investigate territorial regions and zones tributary to such ports, taking into consideration the economies of transportation by rail, water and highway and the natural direction of the flow of commerce; to investigate the causes of the congestion of commerce at ports and the remedies applicable thereto; to investigate the subject of water terminals, including the necessary docks, warehouses, apparatus, equipment, and appliances in connection therewith, with a view to devising and suggesting the types most appropriate for different locations and for the most expeditious and economical transfer or interchange of passengers or property between carriers by water and carriers by rail; to advise with communities regarding the appropriate location and plan of construction of wharves, piers, and water terminals; to investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade; and to investigate any other matter that may tend to promote and encourage the use by vessels of ports adequate to care for the freight which would naturally pass through such ports: *Provided,**Proviso.*Findings as to detrimental rail rates, etc., to be submitted to Interstate Commerce Commission for action. That if after such investigation the board shall be of the opinion that rates, charges, rules, or regulations of common carriers by rail subject to the jurisdiction of the Interstate Commerce Commission are detrimental to the declared object of this section, or that new rates, charges, rules, or regulations, new or additional port terminal facilities, or affirmative action on the part of such common carriers by rail is necessary to promote the objects of this section the board may submit its findings to the Interstate Commerce Commission for such action as such commission may consider proper under existing law. Sec. 9. That if the terms and conditions of any sale of a vesselInsurance required on vessels sold on deferred payments. made under the provisions of this Act include deferred payments of the purchase price, the board shall require, as part of such terms and conditions, that the purchaser of the vessel shall keep the same insured
(a)against loss or damage by fire, and against marine risksFire, marine, etc. and disasters, and war and other risks if the board so specifies, with such insurance companies, associations or underwriters, and under such forms of policies, and to such an amount, as the board may prescribe or approve; and
(b)by protection and indemnity insuranceProtection and indemnity. with such insurance companies, associations, or underwriters and under such forms of policies, and to such an amount as the board may prescribe or approve. The insurance required to be carried under this section shall be made payable to the board and/or to the parties as interest may appear. The board is authorized to enter into any agreement that it deems wise in respect to the paymentPayment of premiums. and/or the guarantee of premiums of insurance. Sec. 10. That the board may create out of net revenue fromInsurance fund authorized for Government vessels, plants, etc. operations and sales, and maintain and administer, a separate insurance fund, which it may use to insure in whole or in part, 993 against all hazards commonly covered by insurance policies in such cases, any interest of the United States
(1)in any vessel, either constructed or in process of construction, and
(2)in any plants or materials heretofore or hereafter acquired by the board or hereby transferred to the board. Sec. 11. That during a period of five years from the enactment ofConstruction loan fund.Creation of, from revenues of board. this Act the board may annually set aside out of the revenues from sales and operations a sum not exceeding $25,000,000, to be known as its construction loan fund, to be used in aid of the constructionUse specified. of vessels of the best and most efficient type for the establishment and maintenance of service on steamship lines deemed desirable and necessary by the board, and such vessels shall be equipped with the most modern, the most efficient, and the most economical machinery and commercial appliances. The board shall use suchIn aid of construction at private shipyards. fund to the extent required upon such terms as the board may prescribe to aid persons, citizens of the United States, in the construction by them in private shipyards in the United States of theLimit, lien, etc. foregoing class of vessels. No aid shall be for a greater sum than two-thirds of the cost of the vessel or vessels to be constructed, and the board shall require such security, including a first lien upon the entire interest in the vessel or vessels so constructed as it shall deem necessary to insure the repayment of such sum with interest thereon and the maintenance of the service for which such vessel or vessels are built. Sec. 12. That all vessels may be recbnditioned and kept in suitableCare, etc., of vessels by Board until disposed of. repair and until sold shall be managed and operated by the board or chartered or leased by it on such terms and conditions as the board shall deem wise for the promotion and maintenance of an efficient merchant marine, pursuant to the policy and purposes declared in sections 1 and 5 oi this Act; and the United States Shipping BoardEmergency Fleet Corporation continued to operate vessels, etc. Emergency Fleet Corporation shall continue in existence and have authority to operate vessels, unless otherwise directed by law, until all vessels are sold in accordance with the provisions of this Act, the provision in section 11 of the “Shipping Act, 1916,” to the contraryVol. 39, p. 732. notwithstanding. Sec. 13. That the board is further authorized to sell all propertySales of property other than vessels. other than vessels transferred to it under section 4 upon such terms and conditions as the board may determine and prescribe. Sec. 14. That the net proceeds derived by the board prior to July 1,Net proceeds of activities, etc.Disposition of, until July 1, 1921. 1921, from any activities authorized by this Act, or by the “Shipping Act, 1916,” or by the Acts specified in section 2 of this Act, except such an amount as the board shall deem necessary to withhold as operating capital, for the purposes of section 12 hereof, and for the insurance fund authorized in section 10 hereof, and for the construction loan fund authorized in section 11 hereof, shall be covered into the Treasury of the United States to the credit of the board and may be expended by it, within the limits of the amounts heretofore or hereafter authorized, for the construction, requisitioning, or purchasing of vessels. After July 1, 1921, such net proceeds, less such an amountAfter July 1, 1921. as may be authorized annually by Congress to be withheld as operating capital, and less such sums as may be needed for such insurance and construction loan funds, shall be covered into the Treasury of the United States as miscellaneous receipts. The board shall, as rapidlyInvestments made during emergency to be withdrawn, etc. as it deems advisable, withdraw investment of Government funds made during the emergency under the authority conferred by the Acts or parts of Acts repealed by section 2 of this Act and cover the net proceeds thereof into the Treasury of the United States as miscellaneous receipts. Sec. 15. That the board shall not require payment from the WarNo charter hire required of vessels used by War Department. Department for the charter hire of vessels owned by the United 994 States Government furnished by the board from July 1, 1918, to June 30, 1919, inclusive, for the use of such department. Sec. 16. That all authorization to purchase, build, requisition,Housing of shipyard employees.Authorizations for, terminated.Vol. 40, p. 438. lease, exchange, or otherwise acquire houses, buildings or land under the Act entitled “An Act to authorize and empower the United States Shipping Board Emergency Fleet Corporation to purchase, lease, requisition, or otherwise acquire, and to sell or otherwise dispose of improved or unimproved lands, houses, buildings, and for other purposes,” approved March 1, 1Q18, is hereby terminated: *Provided,*Proviso.* Expenses allowed. however, *That expenditures may be made under said Act for the repair of houses and buildings already constructed, and the completionEarly disposal directed. of such houses or buildings as have heretofore been contracted tor or are under construction, if considered advisable, and the board is authorized and directed to dispose of all such properties or the interest of the United States in all such properties at as early a date as practicable, consistent with good business and the best interests of the United States. Sec. 17. That the board is authorized and directed to take over onDocks, etc., on Hudson River, Hoboken, N. J.Board to take over, control, etc. January 1, 1921, the possession and control of, and to maintain and develop, all docks, piers, warehouses, wharves and terminal equipment and facilities, including all leasehold easements, rights of way, riparian rights and other rights, estates and interests therein or appurtenantVol. 40, p. 459. thereto, acquired by the President by or under the Act entitled “An Act making appropriations to supply urgent deficiencies in appropriations for the fiscal year ending June 30, 1918, and prior fiscal years, on account of war expenses, and for other purposes,” approved March 28, 1918. The possession and control of such other docks, piers, warehouses,Other docks, etc., acquired for Army or Navy, may be transferred to Board. wharves and terminal equipment and facilities or parts thereof, including all leasehold easements, rights of way, riparian rights and other rights, estates or interests therein or appurtenant thereto which were acquired by the War Department or the Navy Department for military or naval purposes during the war emergency may be transferred by the President to the board whenever the President deems such transfer to be for the best interests of the United States. The President may at any time he deems it necessary, by orderTemporary transfers to Army or Navy for needs thereof, permitted. setting out the need therefor and fixing the period of such need, permit or transfer the possession and control of any part of the property taken over by or transferred to the board under this section to the War Department or the Navy Department for their needs, and when in the opinion of the President such need therefor ceases the possessionSales restricted. and control of such property shall revert to the board. None of such property shall be sold except as may be hereafter provided by law. Sec. 18. That section 9 of the “Shipping Act, 1916,” is amendedVol. 39, p. 730. Vol. 4 0, p. 900, amended. to read as follows: " “Sec. 9. That any vessel purchased, chartered, or leased from theVessels purchased from Board by citizens, allowed American registry, etc. board, by persons who are citizens of the United States, may be registered or enrolled and licensed, or both registered and enrolled and licensed, as a vessel of the United States and entitled to the benefits and privileges appertaining thereto: *Provided, *That foreign-built vessels admitted to American registry or enrollment and license under this Act, and vessels owned by any corporation in which the United States is a stockholder, and vessels sold, leased, or chartered by the board to any person a citizen of the United States, as provided in this Act, may engage in the coastwise trade of the United States while owned, leased, or chartered by such a person. “Every vessel purchased, chartered, or leased from the board shall,Operation under such registry, etc. unless otherwise authorized by the board, be operated only under such registry or enrollment and license. Such vessels while employed 995 solely as merchant vessels shall be subject to all laws, regulations, andMerchant vessels, subject to laws, etc., therefor. liabilities governing merchant vessels, whether the United States be interested therein as owner, in whole or in part, or hold any mortgage, lien, or other interest therein. “It shall be unlawful to sell, transfer or mortgage, or, except underSales, etc., subject to approval of Board. regulations prescribed by the board, to charter, any vessel purchased from the board or documented under the laws of the United States to any person not a citizen of the United States, or to put the same under a foreign registry or flag, without first obtaining the board’s approval. “Any vessel chartered, sold, transferred or mortgaged to a personForfeiture for violations. not a citizen of the United States or placed under a foreign registry or flag, or operated, in violation of any provision of this section shall be forfeited to the United States, and whoever violates any provisionPunishment imposed. of this section shall be guilty of a misdemeanor and subject to a fine of not more than $5,000, or to imprisonment for not more than five years, or both.” " Sec. 19.
(1)The board is authorized and directed in aid of theSpecial authority of Board. accomplishment of the purposes of this Act
(a)To make all necessary rules and regulations to carry out theMake necessary rules, etc. provisions of this Act;
(b)To make rules and regulations affecting shipping in the foreignRules to meet unfavorable trade laws, competitive practices, etc., of foreign countries. trade not in conflict with law in order to adjust or meet general or special conditions unfavorable to shipping in the foreign trade, whether in any particular trade or upon any particular route or in commerce generally and which arise out of or result from foreign laws, rules, or regulations or from competitive methods or practices employed by owners, operators, agents, or masters of vessels of a foreign country; and
(c)To request the head of any department, board, bureau, orRequest departments, etc., to modify, etc., established rules thereof. agency of the Government to suspend, modify, or annul rules or regulations which have been established by such department, board, bureau, or agency, or to make new rules or regulations affecting shipping in the foreign trade other than such rules or regulationsExceptions. relating to the Public Health Service, the Consular Service, and the Steamboat Inspection Service.
(2)No rule or regulation shall hereafter be established by anyRules affecting foreign shipping trade subject to approval of Board.Exceptions. department, board, bureau, or agency of the Government which affect shipping in the foreign trade, except rules or regulations affecting the Public Health Service, the Consular Service, and the Steamboat Inspection Service, until such rule or regulation has been submitted to the board for its approval and final action has been taken thereon by the board or the President.
(3)Whenever the head of any department, board, bureau, orDisagreements as to rules, etc., to be submitted to the President. agency of the Government refuses to suspend, modify, or annul any rule or regulation, or make a new rule or regulation upon request of the board, as provided in subdivision
(c)of paragraph
(1)of this section, or objects to the decision of the board in respect to the approval of any rule or regulation, as provided in paragraph
(2)of this section, either the board or the head of the department, board, bureau, or agency which has established or is attempting to establish the rule or regulation in question may submit the facts to the President,Action thereon. who is hereby authorized to establish or suspend, modify, or annul such rule or regulation.
(4)No rule or regulation shall be established which in any mannerNo preferences to Government vessels over citizen owned. gives vessels owned by the United States any preference or favor over those vessels documented under the laws of the United States and owned by persons who are citizens of the United States. 996 Sec. 20.
(1)That section 14 of the Shipping Act, 1916, as amended,Common carriers by water.Vol. 39, p. 733, amended. is amended to read as follows: " “Sec. 14. That no common carrier by water shall, directly or indirectly,Specific restriction on transportation with foreign countries by. in respect to the transportation by water of passengers or property between a port of a State, Territory, District, or possession of the United States and any other such port or a port of a foreign country,— “First. Pay, or allow, or enter into any combination, agreement,Allowing deferred rebates. or understanding, express or implied, to pay or allow, a deferred rebate to any shipper. The term ‘deferred rebate’ in this Act meansDefinition. a return of any portion of the freight money by a carrier to any shipper as a consideration for the giving of all or any portion of his shipments to the same or any other carrier, or for any other purpose, the payment of which is deferred beyond the completion of the service for which it is paid, and is made only if, during both the period for which computed and the period of deferment, the shipper has complied with the terms of the rebate agreement or arrangement. “Second. Use a fighting ship either separately or in conjunctionUsing fighting ships. with any other carrier, through agreement or otherwise. The term ‘fighting ship’ in this Act means a vessel used in a particular tradeDefinition. by a carrier or group of carriers for the purpose of excluding, preventing or reducing competition by driving another carrier out of said trade. “Third. Retaliate against any shipper by refusing, or threateningRetaliating, etc., against shippers. to refuse, space accommodations when such are available, or resort to other discriminating or unfair methods, because such shipper has patronized any other carrier or has filed a complaint charging unfair treatment, or for any other reason. “Fourth. Make any unfair or unjustly discriminatory contractMaking unfair discriminatory shipping contracts. with any shipper based on the volume of freight offered, or unfairly treat or unjustly discriminate against any shipper in the matter of
(a)cargo space accommodations or other facilities, due regard beingDetails. had for the proper loading of the vessel and the available tonnage;
(b)the loading and landing of freight in proper condition; or
(c)the adjustment and settlement of claims. “Any carrier who violates any provision of this section shall bePenalty for violations. guilty of a misdemeanor punishable by a fine of not more than $25,000 for each offense.” "
(2)The Shipping Act, 1916, as amended, is amended by insertingNew section. after section 14 a new section to read as follows: " “Sec. 14a. The board upon its own initiative may, or upon complaintDetermination by Board as to acts of persons not citizens. shall, after due notice to all parties in interest and hearing, determine whether any person, not a citizen of the United States and engaged in transportation by water of passengers or property— “(1) Has violated any provision of section 14, orViolations of above provisions. “(2) Is a party to any combination, agreement, or understanding,Party to combinations, etc., against American carriers by water. express or implied, that involves in respect to transportation of passengers or property between foreign ports, deferred rebates or any other unfair practice designated in section 14, and that excludes from admission upon equal terms with all other parties thereto, a common carrier by water which is a citizen of the United States and which has applied for such admission. “If the board determines that any such person has violated anyCertificate of violation, etc., to the Secretary of Commerce. such provision or is a party to any such combination, agreement, or understanding, the board shall thereupon certify such fact to the Secretary of Commerce. The Secretary shall thereafter refuse suchVessel owned, etc., refused entry until vioation cease. person the right of entry for any ship owned or operated by him or by any carrier directly or indirectly controlled by him, into any port of the United States, or any Territory, District, or possession thereof, until the board certifies that the violation has ceased or such combination, agreement, or understanding has been terminated.” " 997 Sec. 21. That from and after February 1, 1922, the coastwise lawsCoastwise laws. Extended to island Territories and possessions after February 1, 1922.Board to establish passenger, etc., service therewith. of the United States shall extend to the island Territories and possessions of the United States not now covered thereby, and the board is directed prior to the expiration of such year to have established adequate steamship service at reasonable rates to accommodate the commerce and the passenger travel of said islands and to maintain and operate such service until it can be taken over and operated and maintained upon satisfactory terms by private capital and enterprise: *Provided, *That if adequate shipping service is not established*Provisos.*Extension of period. by February 1, 1922, the President shall extend the period herein allowed for the establishment of such service in the case of any island Territory or possession for such time as may be necessary for the establishment of adequate shipping facilities therefor: *Provided further, *That until Congress shall nave authorized the registry asPhilippine Islands coastwise trade regulations. vessels of the United States of vessels owned in the Philippine Islands, the Government of the Philippine Islands is hereby authorized to adopt, from time to time, and enforce regulations governing the transportation of merchandise and passengers between ports or places in the Philippine Archipelago: *And provided further, *That the foregoingApplication to Philippine Islands deferred until adequate service established. provisions of this section shall not take effect with reference to the Philippine Islands until the President of the United States after a full investigation of the local needs and conditions shall, by proclamation, declare that an adequate shipping service has been established as herein provided and fix a date for the going into effect of the same. Sec. 22. That the Act entitled “An Act giving the United StatesCoastwise trade.Admission of vessels of foreign registry to, repealed.Vol. 40, p. 392, repealed. Shipping Board power to suspend present provisions of law and permit vessels of foreign registry and foreign-built vessels admitted to American registry under the Act of August 18, 1914, to engage in the coastwise trade during the present war and for a period of one hundred and twenty days thereafter, except the coastwise trade with Alaska,” approved October 6, 1917, is hereby repealed: *Provided, *That all*Provisos.*Foreign built of American registry allowed in, if owned by citizens. foreign-built vessels admitted to American registry, owned on February 1, 1920, by persons citizens of the United States, and all foreignbuilt vessels owned by the United States at the time of the enactment of this Act, when sold and owned by persons citizens of the United States, may engage in the coastwise trade so long as they continue in such ownership, subject to the rules and regulations of such trade: *Provided, *That the board is authorized to issue permits for the carryingHawaii passenger travel on foreign ships permitted to February 1, 1922. of passengers in foreign ships if it deems it necessary so to do, operating between the Territory of Hawaii and the Pacific Coast up to February 1, 1922. Sec. 23. That the owner of a vessel documented under the laws ofTax exemptions allowed owners of American ships in foreign trade. the United States and operated in foreign trade shall, for each of the ten taxable years while so operated, beginning with the first taxable year ending after the enactment of this Act, be allowed as a deduction for the purpose of ascertaining his net income subject to theVol. 40, p. 1088. war-profits and excess-profits taxes imposed by Title III of the Revenue Act of 1918 an amount equivalent to the net earnings ofAmount. such vessel during such taxable year, determined in accordance with rules and regulations to be made by the board: *Provided, *That such*Provisos.*Equivalent amount to be used for building approved vessels in American shipyards. owner shall not be entitled to such deduction unless during such taxable year he invested, or set aside under rules and regulations to be made by the board in a trust fund for investment, in the building in shipyards in the United States of new vessels of a type and kind approved by the board, an amount, to be determined by the Secretary of the Treasury and certified by him to the board, equivalent to the war-profits and excess-profits taxes that would have been payable by such owner on account of the net earnings of such vessels but for the deduction allowed under the provisions of this section: 998 *Provided further, *That at least two-thirds of the cost of any vessel constructed under this paragraph shall be paid for out of the ordinary funds or capital of the person having such vessel constructed. That during the period of ten years from the enactment of thisIncome tax exemption on sales by citizens of American ships built prior to January 1, 1914. Act any person a citizen of the United States who may sell a vessel documented under the laws of the United States and built prior to January 1, 1914, shall be exempt from all income taxes that would be payable upon any of the proceeds of such sale under Title I, TitleVol. 40, pp. 1057–1096.New American ships to be built from proceeds. II, and Title III of the Revenue Act of 1918 if the entire proceeds thereof shall be invested in the building of new ships hi American shipyards, such ships to be documented under the laws of the United States and to be of a type approved by the board. Sec. 24. That all mails of the United States shipped or carried onMails to be shipped on American vessels.Contract assignments forbidden, etc. vessels shall, if practicable, be shipped or carried on American-built vessels documented under the laws of the United States. No contract hereafter made with the Postmaster General for carrying mails on vessels so built and documented shall be assigned or sublet, and no mails covered by such contract shall be carried on any vessel not so built and documented. No money shall be paid out of the Treasury of the United States on or in relation to any such contract for carrying mails on vessels so built and documented when such contract has been assigned or sublet or when mails covered by such contract are in violation of the terms thereof carried on any vessel not so built and documented. The board and the Postmaster General, in aid ofDetermination of rates, etc. the development of a merchant marine adequate to provide for the maintenance and expansion of the foreign or coastwise trade of the United States and of a satisfactory postal service in connection therewith, shall from time to time determine the just and reasonable rate of compensation to be paid for such service, and the Postmaster General is hereby authorized to enter into contracts within the limits of appropriations made therefor by Congress to pay for the carrying of such mails in such vessels at such rate. Nothing herein shall bePrior Act not applicable.Vol. 26, p. 830. affected by the Act entitled “An Act to provide for ocean mail service between the United States and foreign ports, and to promote commerce,” approved March 3, 1891. Sec. 25. That for the classification of vessels owned by the UnitedAmerican Bureau of Shipping.Classification of vessels by, recognized. States, and for such other purposes in connection therewith as are the proper functions of a classification bureau, all departments, boards, bureaus, and commissions of the Government are hereby directed to recognize the American Bureau of Shipping as their agency so long as the American Bureau of Shipping continues to be maintained as an organization which has no capital stock and pays no dividends: *Provided, *That the Secretary of Commerce and the chairman of the*Provisos.*Government repre sentative to be on com mittee. board shall each appoint one representative who shall represent the Government upon the executive committee of the American Bureau of Shipping, and the bureau shall agree that these representatives shall be accepted by them as active members of such committee. Such representatives of the Government shall serve without any compensation, except necessary traveling expenses: *Provided further,* Notation of, on official list of merchant vessels. That the official list of merchant vessels published by the Government shall hereafter contain a notation clearly indicating all vessels classed by the American Bureau of Shipping. Sec. 26. That cargo vessels documented under the laws of theCargo vessels.Passengers carried on, limited. United States may carry not to exceed sixteen persons in addition to the crew between any ports or places in the United States or its Districts, Territories, or possessions, or between any such port or place and any foreign port, or from any foreign port to another foreign port, and such vessels shall not be held to be “passenger vessels” or “vessels carrying passengers” within the meaning of the inspection laws and the rules and regulations thereunder: *Provided, *That nothing*Provisos.*Life saving equipment required.” herein shall be taken to exempt such vessels from the laws, rules, and 999 regulations respecting life-saving equipment: *Provided further, *ThatNotice of risk, etc. to be given. when any such vessel carries persons other than the crew as herein provided for, the owner, agent, or master of the vessel shall first notify such persons of the presence on board of any dangerous articles, as defined by law, or of any other condition or circumstance which would constitute a risk of safety for passenger or crew. The privilege bestowed by this section on vessels of the UnitedReciprocal allowance to foreign cargo vessels. States shall be extended insofar as the foreign trade is concerned to the cargo vessels of any nation which allows the like privilege to cargo vessels of the United States in trades not restricted to vessels under its own flag. Failure on the part of the owner, agent, or master of the vessel toPenalty for failure to give notice of risk. give such notice shall subject the vessel to a penalty of $500, which may be mitigated or remitted by the Secretary of Commerce upon a proper representation of the facts. Sec. 27. That no merchandise shall be transported by water, orMerchandise transported in coastwise trade, etc., in other than American vessels to be forfeited. by land and water, on penalty of forfeiture thereof, between points in the United States, including Districts, Territories, and possessions thereof embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in any other vessel than a vessel built in and documented under the laws of the United States and owned by persons who are citizens of the United States, or vessels to which the privilege of engaging in the coastwise trade is extended by sections 18 or 22 of this Act: *Provided, *That this section*Provisos.*Exception. shall not apply to merchandise transported between points within the continental United States, excluding Alaska, over through routes heretofore or hereafter recognized by the Interstate Commerce Commission for which routes rate tariffs have been or shall hereafter be filed with said commission when such routes are in part over Canadian rail lines and their own or other connecting water facilities: *Provided further, *That this section shall not become effective uponApplication to Yukon River delayed. the Yukon river until the Alaska Railroad shall be completed and the Shipping Board shall find that proper facilities will be furnished for transportation by persons citizens of the United States for properly handling the traffic. Sec. 28. That no common carrier shall charge, collect, or receive,Restriction on lower rail charges for transportation from foreign countries, etc., by water carriers. for transportation subject to the Interstate Commerce Act of persons or property, under any joint rate, fare, or charge, or under any export, import, or other proportional rate, fare, or charge, which is based in whole or in part on the fact that the persons or property affected thereby is to be transported to, or has been transported from, any port in a possession or dependency of the United States, or in a foreign country, by a carrier by water in foreign commerce, any lower rate, fare, or charge than that charged, collected, or received by it for the transportation of persons, or of a like kind of property, for the same distance, in the same direction, and over the same route, in connection with commerce wholly within the United States, unless the vessel soBy American vessels excepted. transporting such persons or property is, or unless it was at the time of such transportation by water, documented under the laws of the United States. Whenever the board is of the opinion, however, thatSuspension if no adequate facilities afforded by American vessels. adequate shipping facilities to or from any port in a possession or dependency of the United States or a foreign country are not afforded by vessels so documented, it shall certify this fact to the Interstate Commerce Commission, and the commission may, by order, suspend the operation of the provisions of this section with respect to the rates, fares, and charges for the transportation by rail of persons and property transported from, or to be transported, to such ports, for such length of time and under such terms and conditions as it may prescribe in such order, or in any order supplemental thereto. SuchTermination when facilities afforded. suspension of operation of the provisions of this section may be terminated by order of the commission whenever the board is of the 1000 opinion, that adequate shipping facilities by such vessels to such ports are afforded and shall so certify to the commission.Definitions. Sec. 29.
(a)That whenever used in this section—“Association.”
(1)The term “association” means any association, exchange, pool, combination, or other arrangement for concerted action; and
(2)The term “marine insurance companies” means any persons,“Marine insurance companies.” companies, or associations, authorized to write marine insurance or reinsurance under the laws of the United States or of a State, Territory, District, or possession thereof.
(b)Nothing contained in the “antitrust laws” as designatedMarine insurance associations.Not illegal under antitrust laws.Vol. 38, p. 730. in section 1 of the Act entitled “An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,” approved October 15, 1914, shall be construed as declaring illegal an association entered into by marine insurance companies for the followingApportionment of risks, etc. purposes: To transact a marine insurance and reinsurance business in the United States and in foreign countries and to reinsure or otherwise apportion among its membership the risks undertaken by such association or any of the component members. Sec. 30. Subsection A. That this section may be cited as the “ShipShip Mortgage Act, 1920. Mortgage Act, 1920.” definitions.Definitions. Subsection B. When used in this section—
(1)The term “document” includes registry and enrollment and“Document.” license;
(2)The term “documented” means registered or enrolled or“Documented.” licensed under the laws of the United States, whether permanently or temporarily;
(3)The term “port of documentation” means the port at which“Port of documentation.” the vessel is documented, in accordance with law;
(4)The term “vessel of the United States” means any vessel“Vessel of the United States.” documented under the laws of the United States and such vessel shall be held to continue to be so documented until its documents are surrendered with the approval of the board; and
(5)The term “mortgagee,” in the case of a mortgage involving a“Mortgagee.” trust deed and a bond issue thereunder, means the trustee designated in such deed. recording of sales, conveyances, and mortgages of vessels of the united states.Recording of sales, conveyances, and mortgages of vessels of the United States. Subsection C.
(a)No sale, conveyance, or mortgage which, at theCollector of customs to record bill of sale etc. time such sale, conveyance, or mortgage is made, includes a vessel of the United States, or any portion thereof, as the whole or any part of the property sold, conveyed, or mortgaged shall be valid, in respect to such vessel, against any person other than the grantor or mortgagor, his heir or devisee, and a person having actual notice thereof, until such bill of sale, conveyance, or mortgage is recorded in the office of the collector of customs of the port of documentation of such vessel, as provided in subdivision
(b)of this subsection.
(b)Such collector of customs shall record bills of sale, conveyances,Record book. and mortgages, delivered to him, in the order of their reception, in books to be kept for that purpose and indexed to show—Contents.
(1)The name of the vessel;
(2)The names of the parties to the sale, conveyance, or mortgage;
(3)The time and date of reception of the instrument;
(4)The interest in the vessel so sold, conveyed, or mortgaged; and
(5)The amount and date of maturity of the mortgage. Subsection D. Mortgages of vesselsRequirements to give preferred status when sold, etc.
(a)A valid mortgage which, at the time it is made includes the whole of any vessel of the United States of 200 gross tons and upwards, shall in addition have, in respect to such vessel and as 1001of the date of the compliance with all the provisions of this subdivision, the preferred status given by the provisions of subsection M, if—
(1)The mortgage is indorsed upon the vessel’s documents in accordance with the provisions of this section;
(2)The mortgage is recorded as provided in subsection C, together with the time and date when the mortgage is so indorsed;
(3)An affidavit is filed with the record of such mortgage to the effect that the mortgage is made in good faith and without any design to hinder, delay, or defraud any existing or future creditor of the mortgagor or any lienor of the mortgaged vessel;
(4)The mortgage does not stipulate that the mortgagee waives the preferred status thereof; and
(5)The mortgagee is a citizen of the United States.
(b)Any mortgage which complies in respect to any vessel with thePreferred mortgages. conditions enumerated in this subsection is hereafter in this section called a “preferred mortgage” as to such vessel.
(c)There shall be indorsed upon the documents of a vessel coveredIndorsements, required on documents of vessel. by a preferred mortgage—
(1)The names of the mortgagor and mortgagee;
(2)The time and date the indorsement is made;
(3)The amount and date of maturity of the mortgage; and
(4)Any amount required to be indorsed by the provisions of subdivision
(e)or
(f)of this subsection.
(d)Such indorsement shall be made
(1)by the collector of customsIndorsement by collector, etc. of the port of documentation of the mortgaged vessel, or
(2)by the collector of customs of any port in which the vessel is found, if such collector is directed to make the indorsement by the collector of customs of the port of documentation; and no clearance shall be issued to the vessel until such indorsement is made. The collector of customs of the port of documentation shall give such direction by wire or letter at the request of the mortgagee and upon the tender of the cost of communication of such direction. Whenever any newTransfers to new documents. document is issued for the vessel, such indorsement shall be transferred to and indorsed upon the new document by the collector of customs.
(e)A mortgage which includes property other than a vessel shallMortgages including other property. not be held a preferred mortgage unless the mortgage provides for the separate discharge of such property by the payment of a specified portion of the mortgage indebtedness. If a preferred mortgage so provides for the separate discharge, the amount of the portion of such payment shall be indorsed upon the documents of the vessel.
(f)If a preferred mortgage includes more than one vessel andPreferred mortgages, including more than one vessel. provides for the separate discharge of each vessel by the payment of a portion of the mortgage indebtedness, the amount of such portion of such payment shall be indorsed upon the documents of the vessel. InAction of court on sale. case such mortgage does not provide for the separate discharge of a vessel and the vessel is to be sold upon the order of a district court of the United States in a suit in rem in admiralty, the court shall determine the portion of the mortgage indebtedness increased by 20 per centum
(1)which, in the opinion of the court, the approximate value of the vessel bears to the approximate value of all the vessels covered by the mortgage, and
(2)upon the payment of which the vessel shall be discharged from the mortgage. Subsection E. The collector of customs upon the recording of aCopies of record to mortgagor. preferred mortgage shall deliver two certified copies thereof to the mortgagor who shall place, and use due diligence to retain, one copy on board the mortgaged vessel and cause such copy and the documents of the vessel to be exhibited by the master to any person havingExhibition on vessel, etc. business with the vessel, which may give rise to a maritime lien upon the vessel or to the sale, conveyance, or mortgage thereof. 1002 The master of the vessel shall, upon the request of any such person, exhibit to him the documents of the vessel and the copy of any preferred mortgage of the vessel placed on board thereof. Subsection F. The mortgagor
(1)shall, upon request of the mortgagee,Written notice of prior liabilities to be given by mortgagor to mortgagee. disclose in writing to him prior to the execution of any preferred mortgage, the existence of any maritime lien, prior mortgage, or other obligation or liability upon the vessel to be mortgaged, that is known to the mortgagor, and (2), without the consent of theRestriction for subsequent obligations creating a lien. mortgagee, shall not incur, after the execution of such mortgage and before the mortgagee has had a reasonable time in which to record the mortgage and have indorsements in respect thereto made upon the documents of the vessel, any contractual obligation creating a lien upon the vessel other than a lien for wages of stevedores when employed directly by the owner, operator, master, ship’s husband, or agent of the vessel, for wages of the crew of the vessel, for general average, or for salvage, including contract salvage, in respect to the vessel. Subsection G.
(a)The collector of customs of the port of documentationClaims upon vessel covered by a preferred mortgage.Notice, etc. shall, upon the request of any person, record notice of his claim of a lien upon a vessel covered by a preferred mortgage, together with the nature, date of creation, and amount of the lien, and the name and address of the person. Any person who has caused notice of his claim of lien to be so recorded shall, upon a discharge in whole or in part of the indebtedness, forthwith file with the collector of customs a certificate of such discharge. The collector of customs shall thereupon record the certificate.
(b)The mortgagor, upon a discharge in whole or in part of theDischarge, etc., of mortgages. mortgage indebtedness, shall forthwith file with the collector of customs for the port of documentation of the vessel, a certificate of such discharge. Such collector of customs shall thereupon record the certificate. In case of a vessel covered by a preferred mortgage,Preferred mortgage. the collector of customs at the port of documentation shall
(1)indorse upon the documents of the vessel, or direct the collector of customs at any port in which the vessel is found, to so indorse, the fact of such discharge, and
(2)shall deny clearance to the vessel until such indorsement is made. Subsection H.
(a)No bill of sale, conveyance, or mortgage shallBills of sale, etc.Record requirements. be recorded unless it states the interest of the grantor or mortgagor in the vessel, and the interest so sold, conveyed, or mortgaged.
(b)No bill of sale, conveyance, mortgage, notice of claim of lien,Acknowledgments. or certificate of discharge thereof, shall be recorded unless previously acknowledged before a notary public or other officer authorized by a law of the United States, or of a State, Territory, District, or possession thereof, to take acknowledgment of deeds.
(c)In case of a change in the port of documentation of a vesselRecord,etc., at new port of documentation. of the United States, no bill of sale, conveyance, or mortgage shall be recorded at the new port of documentation unless there is furnished to the collector of customs of such port, together with the copy of the bill of sale, conveyance, or mortgage to be recorded, a certified copy of the record of the vessel at the former port of documentation furnished by the collector of such port. The collector of customs at the new port of documentation is authorized and directed to record such certified copy.
(d)A preferred mortgage may bear such rate of interest as isInterest on preferred mortgages. agreed by the parties thereto. Subsection I. Each collector of customs shall permit records madeInspection of records permitted. under the provisions of this section to be inspected during office hours, under such reasonable regulations as the collector may establish. Upon the request of any person the collector of customs shall furnish him from the records of the collector’s office
(1)a certificate 1003 setting forth the names of the owners of any vessel, the interest held by each owner, and the material facts as to any bill of sale or conveyance of, any mortgage covering, or any lien or other incumbrance upon, a specified vessel,
(2)a certified copy of any bill of sale, conveyance, mortgage, notice of claim of lien, or certificate of discharge in respect to such vessel, or
(3)a certified copy as required by subdivision
(c)of subsection H. The collector of customs shallFees for recording, copies, etc. collect a fee for any bill of sale, conveyance, or mortgage recorded, or any certificate or certified copy furnished, by him, in the amount of 20 cents a folio with a minimum charge of $1.00. All such fees shall be covered into the Treasury of the United States as miscellaneous receipts. penalties.Penalties. Subsection J.
(a)If the master of the vessel willfully fails to exhibitLicense of master to be canceled on failure to exhibit documents, etc. the documents of the vessel or the copy of any preferred mortgage thereof, as required by subsection E, the board of local inspectors of vessels having jurisdiction of the license of the master, may suspend or cancel such license, subject to the provisions of “An ActVol. 40, p. 602. to provide for appeals from decision of boards of local inspectors of vessels and for other purposes,” approved June 10, 1918.
(b)A mortgagor who, with intent to defraud, violates any provisionPunishment for withholding notice of prior debts, etc., by mortgagor. of subsection F, and if the mortgagor is a corporation or association, the president or other principal executive officer of the corporation or association, shall upon conviction thereof be held guilty of a misdemeanor and shall be fined not more than $1,000 or imprisoned not more than 2 years, or both. The mortgaged indebtedness shall thereupon become immediately due and payable at the election of the mortgagee.
(c)If any person enters into any contract secured by, or upon theOn preferred mortgages.Collector, for failure of duty, causing loss on contract covered by. credit of, a vessel of the United States covered by a preferred mortgage, and suffers pecuniary loss by reason of the failure of the collector of customs, or any officer, employee, or agent thereof, properly to perform any duty required of the collector under the provisions of this section, the collector of customs shall be liable to such person for damages in the amount of such loss. If any such person isFailure of mortgagor, etc., to comply with requirements. caused any such loss by reason of the failure of the mortgagor, or master of the mortgaged vessel, or any officer, employee, or agent thereof, to comply with any provision of subsection E or F or to file an affidavit as required by subdivision
(a)of subsection D, correct in each particular thereof, the mortgagor shall be liable to such person for damages in the amount of such loss. The districtJurisdiction of courts. courts of the United States are given jurisdiction (but not to the exclusion of the courts of the several States, Territories, Districts, or possessions) of suits for the recovery of such damages, irrespective of the amount involved in the suit or the citizenship of the parties thereto. Such suit shall be begun by personal service upon theService, etc. defendant within the limits of the district. Upon judgment for the plaintiff in any such suit, the court shall include in the judgment an additional amount for costs of the action and a reasonable counsel’s fee, to be fixed by the court. foreclosure of preferred mortgages.Foreclosure of preferred mortgages. Subsection K. A preferred mortgage shall constitute a lien upon theEnforcement of lien. mortgaged vessel in the amount of the outstanding mortage indebtedness secured by such vessel. Upon the default of any term or condition of the mortgage, such lien may be enforced by the mortgagee by suit in rem in admiralty. Original jurisdiction of all such suits isExclusive jurisdiction of Federal court. granted to the district courts of the United States exclusively. In 1004 addition to any notice by publication, actual notice of the commencementNotices to be given. of any such suit shall be given by the libellant, in such manner as the court shall direct, to
(1)the master, other ranking officer, or caretaker of the vessel, and
(2)any person who has recorded a notice of claim of an undischarged lien upon the vessel, as provided in subsection G, unless after search by the libellant satisfactory to the court, such mortgagor, master, other ranking officer, caretaker, or claimant is not found within the United States. FailureEffect of failure. to give notice to any such person, as required by this subsection, shall not constitute a jurisdictional defect; but the libellant shall be liable to such person for damages in the amount of his interest in the vessel terminated by the suit. Suit in personam for the recoveryRecovery of damages. of such damages may be brought in accordance with the provisions of subdivision
(c)of subsection J. Subsection L. In any suit in rem in admiralty for the enforcementOperation of vessel by receiver. of the preferred mortgage lien, the court may appoint a receiver and, in its discretion, authorize the receiver to operate the mortgaged vessel. The marshal may be authorized and directed by the courtPossession by marshal. to take possession of the mortgaged vessel notwithstanding the fact that the vessel is in the possession or under the control of any person claiming a possessory common-law lien. Subsection M.
(a)When used hereinafter in this section, the term“Preferred maritime lien.”Meaning of. “preferred maritime lien” means
(1)a lien arising prior in time to the recording and indorsement of a preferred mortgage in accordance with the provisions of this section; or
(2)a lien for damages arising out of tort, for wages of a stevedore when employed directly by the owner, operator, master, ship’s husband, or agent of the vessel, for wages of the crew of the vessel, for general average, and for salvage, including contract salvage.
(b)Upon the sale of any mortgaged vessel by order of a districtTermination of liens upon sale by court. court of the United States in any suit in rem in admiralty for the enforcement of a preferred mortgage lien thereon, all preexisting claims in the vessel, including any possessory common-law lien of which a lienor is deprived under the provisions of subsection L shall be held terminated and shall thereafter attach, in like amount andAttach thereafter to proceeds.Priorities. in accordance with their respective priorities, to the proceeds of the sale; except that the preferred mortgage lien shall have priority over all claims against the vessel, except
(1)preferred maritime liens, and
(2)expenses and fees allowed and costs taxed, by the court. Subsection N.
(a)Upon the default of any term or condition ofSuit in personam in addition. a preferred mortgage upon a vessel, the mortgagee may, in addition to all other remedies granted by this section, bring suit in personam in admiralty in a district court of the United States, against the mortgagor for the amount of the outstanding mortgage indebtedness secured by such vessel or any deficiency in the full payment thereof.
(b)This section shall not be construed, in the case of a mortgageNot applicable to realty, etc., covered by mortgage. covering, in addition to vessels, realty or personalty other than vessels, or both, to authorize the enforcement by suit in rem in admiralty of the rights of the mortgagee in respect to such realty or personalty other than vessels. transfers of mortgaged vessels and assignment of vessel mortgages.Transfers of mortgaged vessels and as signment of vessel mortgages. Subsection O.
(a)The documents of a vessel of the United StatesApproval of Board necessary. covered by a preferred mortgage may not be surrendered (except in the case of the forfeiture of the vessel or its sale by the order of any court of the United States or any foreign country) without the approval of the board. The board shall refuse such approval unless the mortgagee consents to such surrender. 1005
(b)The interest of the mortgagee in a vessel of the United StatesInterest of mortgagee if vessel forfeited for violation of law. covered by a mortgage, shall not be terminated by the forfeiture of the vessel for a violation of any law of the United States, unless the mortgagee authorized, consented, or conspired to effect the illegal act, failure, or omission which constituted such violation.
(c)Upon the sale of any vessel of the United States covered by aEffect of sale by order of court. preferred mortgage, by order of a district court of the United States in any suit in rem in admiralty for the enforcement of a maritime lien other than a preferred maritime lien, the vessel shall be sold free from all preexisting claims thereon; but the court shall, upon the requestNew mortgage, etc., by purchaser. of the mortgagee, the libellant, or any intervenor, require the purchaser at such sale to give and the mortgagor to to accept a new mortgage of the vessel for the balance of the term of the original mortgage. The conditions of such new mortgage shall be the same, so far as practicable, as those of the original mortgage and shall be subject toEffect on price. the approval of the court. If such new mortgage is given, the mortgagee shall not be paid from the proceeds of the sale and the amount payable as the purchase price shall be held diminished in the amount of the new mortgage indebtedness.
(d)No rights under a mortgage of a vessel of the United StatesApproval, etc., of assignments by Board. shall be assigned to any person not a citizen of the United States without the approval of the board. Any assignment in violation of any provision of this section shall be void.
(e)No vessel of the United States shall be sold by order of a districtSales only to citizens. court of the United States in any suit in rem in admiralty to any person not a citizen of the United States. maritime liens for necessaries.Maritime liens for necessaries. Subsection P. Any person furnishing repairs, supplies, towage, usePersons entitled to.Vol. 36, p. 604. of dry dock or marine railway, or other necessaries, to any vessel, whether foreign or domestic, upon the order of the owner of such vessel, or of a person authorized by the owner, shall have a maritimeEnforcement. lien on the vessel, which may be enforced by suit in rem, and it shall not be necessary to allege or prove that credit was given to the vessel. Subsection Q. The following persons shall be presumed to haveAuthority to procure repairs, etc., presumed. authority from the owner to procure repairs, supplies, towage, use of dry dock or marine railway, and other necessaries for the vessel: The managing owner, ship’s husband, master, or any person to whom the management of the vessel at the port of supply is intrusted. No person tortiously or unlawfully in possession or charge of a vessel shall have authority to bind the vessel. Subsection R. The officers and agents of a vessel specified in subsectionChartered vessels, etc. Q shall be taken to include such officers and agents when appointed by a charterer, by an owner pro hac vice, or by an agreedRestriction. purchaser in possession of the vessel; but nothing in this section shall be construed to confer a lien when the furnisher knew, or by exercise of reasonable diligence could have ascertained, that because of the terms of a charter party, agreement for sale of the vessel, or for any other reason, the person ordering the repairs, supplies, or other necessaries was without authority to bind the vessel therefor. Subsection S. Nothing in this section shall be construed to preventWaiving of liens by agreement. the furnisher of repairs, supplies, towage, use of dry dock or marine railway, or other necessaries, or the mortgagee, from waiving his right to a lien, or in the case of a preferred mortgage lien, to the preferred status of such lien, at any time, by agreement or otherwise; and thisRights not affected. section shall not be construed to affect the rules of law now existing in regard to
(1)the right to proceed against the vessel for advances,
(2)laches in the enforcement of liens upon vessels,
(3)the right to proceed in personam,
(4)the rank of preferred maritime liens among 1006 themselves, or
(5)priorities between maritime liens and mortgages, other than preferred mortgages, upon vessels of the United States. Subsection T. This section shall supersede the provisions of allStatutes of States superseded. State statutes conferring liens on vessels, in so far as such statutes purport to create rights of action to be enforced by suits in rem in admiralty against vessels for repairs, supplies, towage, use of dry dock or marine railway, and other necessaries. miscellaneous provisions.Miscellaneous provisions. Subsection U. This section shall not apply
(1)to any existingExisting mortgages not affected. mortgage, or
(2)to any mortgage hereafter placed on any vessel now under an existing mortgage, so long as such existing mortgage remains undischarged. Subsection V. The Secretary of Commerce is authorized and directedBooks, certificates, etc., to be furnished collectors. to furnish collectors of customs with all necessary books and records, and with certificates of registry and of enrollment and license in such form as provides for the making of all indorsements thereon required by this section. Subsection W. The Secretary of Commerce is authorized to makeExecutory regulations to be prescribed. such regulations in respect to the recording and indorsing of mortgages covering vessels of the United States, as he deems necessary to the efficient execution of the provisions of this section. Subsection X. Sections 4192 to 4196, inclusive, of the Revised StatutesLaws repealed.[R.S., secs. 4192–4196, pp. 808, 809](/us/rs/s4192–4196/pp808/809), repealed.Vol. 36, p. 604, repealed. of the United States, as amended, and the Act entitled “An Act relating to liens on vessels for repairs, supplies, or other necessaries,” approved June 23, 1910, are repealed. This section, however, so far as not inconsistent with any of the provisions of law so repealed, shall be held a reenactment of such repealed law, and any right or obligation based upon any provision of such law and accruing prior to such repeal, may be prosecuted in the same manner and to the same effect as if this Act had not been passed. Sec. 31. That section 4530 of the Revised Statutes of the United[R. S., sec, 4530, p. 876](/us/rs/s4530/p876), amended. States is amended to read as follows: " “Sec. 4530. Every seaman on a vessel of the United States shallMerchant seamen.Payments while in port.Vol. 38, p. ll65, amended. be entitled to receive on demand from the master of the vessel to which he belongs one-half part of the balance of his wages earned and remaining unpaid at the time when such demand is made at every port where such vessel, after the voyage has been commenced, shall load or deliver cargo before the voyage is ended, and all stipulations in the contract to the contrary shall be void: *Provided, *Such*Provisos.*Limitations extended. a demand shall not be made before the expiration of, nor oftener than once in, five days nor more than once in the same harbor on the same entry. Any failure on the part of the master to comply with this demand shall release the seaman from his contract and he shall be entitled to full payment of wages earned. And when the voyageIn full at end of voyage. is ended every such seaman shall be entitled to the remainder of the wages which shall be then due him, as provided in section 4529 ofVol. 38, p. 1165.Setting aside of release.[[R.S., sec. 4552, p. 880](/us/rs/s4552/p880).](/us/rs/s4552/p880) the Revised Statutes: *Provided further, *That notwithstanding any release signed by any seaman under section 4552 of the Revised Statutes any court having jurisdiction may upon good cause shown set aside such release and take such action as justice shall require: *And provided further. *That this section shall apply to seamen onApplicable to foreign seamen in American ports. foreign vessels while in harbors of the United States, and the courts of the United States shall be open to such seamen for its enforcement.” " Sec. 32. That paragraph
(a)of section 10 of the Act entitled “AnWages of seamen.Vol. 38, p. 1168 amended. Act to remove certain burdens on the American merchant marine and encourage the American foreign carrying trade, and for other purposes,” approved June 26, 1884, as amended, is hereby amended to read as follows: 1007 " “Sec. 10.
(a)That it shall be, and is hereby, made unlawful inPayment in advance, etc., unlawful. any case to pay any seaman wages in advance of the time when he has actually earned the same, or to pay such advance wages, or to make any order, or note, or other evidence of indebtedness therefor to any other person, or to pay any person, for the shipment of seamen when payment is deducted or to be deducted from a seaman’s wages. Any person violating any of the foregoing provisions of this sectionPunishment for violations. shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than $25 nor more than $100, and may also be imprisoned for a period of not exceeding six months, at the discretion of the court. The payment of such advance wages orLiability whether paid within or without United States territory. allotment, whether made within or without the United States or territory subject to the jurisdiction thereof, shall in no case except as herein provided absolve the vessel or the master or the owner thereof from the full payment of wages after the same shall have been actually earned, and shall be no defense to a libel suit or action for the recovery of such wages. If any person shall demand or receive, eitherPunishment for receiving pay from seamen for employment. directly or indirectly, from any seaman or other person seeking employment, as seaman, or from any person on his behalf, any remuneration whatever for providing him with employment, he shall for every such offense be deemed guilty of a misdemeanor and shall be imprisoned not more than six months or fined not more than $500.” " Sec. 33. That section 20 of such Act of March 4, 1915, be, and is,Vol. 38, p. 1185, amended. amended to read as follows: " “Sec. 20. That any seaman who shall suffer personal injury inInjuries to seamen inservice.Actions for damages allowed. the course of his employment may, at his election, maintain an action for damages at law, with the right of trial by jury, and in such action all statutes of the United States modifying or extending the commonlaw right or remedy in cases of personal injury to railway employees shall apply; and in case of the death of any seaman as a result of anyResulting in death. such personal injury the personal representative of such seaman may maintain an action for damages at law with the right of trial by jury, and in such action all statutes of the United States conferring or regulating the right of action for death in the case of railway employees shall be applicable. Jurisdiction in such actions shall beJurisdiction of courts. under the court of the district in which the defendant employer resides or in which his principal office is located.” " Sec. 34. That in the judgment of Congress, articles or provisionsTreaty restrictions on discriminatory customs and tonnage duties to be terminated. in treaties or conventions to which the United States is a party, which restrict the right of the United States to impose discriminating customs duties on imports entering the United States in foreign vessels and in vessels of the United States, and which also restrict the right of the United States to impose discriminatory tonnage dues on foreign vessels and on vessels of the United States entering the United States should be terminated, and the President is herebyNotice to be given foreign Governments. authorized and directed within ninety days after this Act becomes law to give notice to the several Governments, respectively, parties to such treaties or conventions, that so much thereof as imposes any such restriction on the United States will terminate on the expiration of such periods as may be required for the giving of such notice by the provisions of such treaties or conventions. Sec. 35. That the power and authority vested in the board byDelegation of powers to Emergency Fleet Corporation. this Act, except as herein otherwise specifically provided, may be exercised directly by the board, or by it through the United States Shipping Board Emergency Fleet Corporation. Sec. 36. That if any provision of this Act is declared unconstitutionalInvalidity of any provision not to affect remainder of Act. or the application of any provision to certain circumstances be held invalid, the remainder of the Act and the application of such provisions to circumstances other than those as to which it is held invalid shall not be affected thereby. 1008 Sec. 37. That when used in this Act, unless the context otherwiseGeneral meaning of terms used in this Act. requires, the terms “person,” “vessel,” “documented under the laws of the United States,” and “citizen of the United States” shall have the meaning assigned to them by sections 1 and 2 of the “ShippingVol. 39, pp. 728, 729. Act, 1916,” as amended by this Act; the term “board” means the United States Shipping Board; and the term “alien” means any person not a citizen of the United States. Sec. 38. That section 2 of the Shipping Act, 1916, is amended toVol. 39, p. 729, amended. read as follows: " “Sec. 2.
(a)That within the meaning of this Act no corporation,Controlling interest of corporations, etc., to be owned by citizens. partnership, or association shall be deemed a citizen of the United States unless the controlling interest therein is owned by citizens of the United States, and, in the case of a corporation, unless its president and managing directors are citizens of the United States and the corporation itself is organized under the laws of the United States or of a State, Territory, District, or possession thereof, but in the case of a corporation, association, or partnership operating any vessel in the coastwise trade the amount of interest required toCoastwise trade. be owned by citizens of the United States shall be 75 per centum. “(b) The controlling interest in a corporation shall not be deemedControlling interest not deemed owned by citizens.Interests specified. to be owned by citizens of the United States
(a)if the title to a majority of the stock thereof is not vested in such citizens free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; or
(b)if the majority of the voting power in such corporation is not vested in citizens of the United States; or
(c)if through any contract or understanding it is so arranged that the majority of the voting power may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or
(d)if by any other means whatsoever control of the corporation is conferred upon or permitted to be exercised by any person who is not a citizen of the United States. “(c) Seventy-five per centum of the interest in a corporation shallSeventy-five percent interests not deemed owned by citizens.Interests specified. not be deemed to be owned by citizens of the United States
(a)if the title to 75 per centum of its stock is not vested in such citizens free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; or
(b)if 75 per centum of the voting power in such corporation is not vested in citizens of the United States; or
(c)if, through any contract or understanding it is so arranged that more than 25 per centum of the voting power in such corporation may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States- or
(d)if by any other means whatsoever control of any interest in the corporation in excess of 25 per centum is conferred upon or permitted to be exercised by any person who is not a citizen of the United States. “(d) The provisions of this Act shall apply to receivers andReceivers and trustees included. trustees of all persons to whom the Act applies, and to the successors or assignees of such persons.” " Sec. 39. That this Act may be cited as the Merchant MarineTitle. Act, 1920. Approved, June 5, 1920.
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