Chapter 25.
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Chap. 25], which mortgage shall contain appropriate covenants and provisions to insure the proper physical maintenance of the vessel, and its protection against liens for taxes, penalties, claims, or liabilities of any kind whatever, which might impair the security for the debt. It shall also contain Additional covenants to be prescribed.any other covenants and provisions the board may prescribe, including a provision for the summary maturing of the entire debt, for causes to be enumerated in the mortgage. 692 Insurance against all insurable risks required.
“(g) The board shall also require and the security furnished shall provide that the owner of the vessel shall keep the same insured against loss or damage by fire, and against marine risks and disasters, and against any and all other insurable risks the board 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; such insurance shall be made payable Premium payments agreements.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 payment and for the guaranty of premiums of insurance.” " Prior loans not disturbed.Vol. 41, p. 993.
(b)Section 11 of the Merchant Marine Act, 1920, as in force immediately prior to the enactment of this Act, shall remain in force in respect of all loans made before the enactment of this Act. increase of construction loan fund Increase of loan fund.Additional appropriation of $250,000,000 authorized for.*Ante,* p. 586.*Post,* pp. 889, 910. Sec. 302.
(a)There is authorized to be appropriated, to be credited to and for the purposes of the construction loan fund created by section 11 of the Merchant Marine Act, 1920, as amended, such amounts as will, when added to the amounts credited to such fund by the United States Shipping Board under authority of law (exclusive of repayments on loans from the fund), make the aggregate of the amounts credited to such fund (exclusive of such repayments) equal to $250,000,000. No further credit to the fund.
(b)When $250,000,000 has been credited to such fund (whether by the board under authority of law or from appropriations authorized by this section, but exclusive of repayments on loans from the fund) then no further sums (except such repayments) shall be credited by the board to such fund. To be a revolving fund.
(c)The construction loan fund shall continue to be a revolving fund. Repayments on loans from the fund shall be credited to the fund, but interest on such loans shall be covered into the Treasury as miscellaneous receipts. TITLE IV.— OCEAN MAIL SERVICE Ocean mail service. scope of title Scope of title.All mails between ports, excluding Canadian, to be carried on contract vessels. Sec. 401. All mails of the United States carried on vessels between ports (exclusive of ports in the Dominion of Canada other than ports in Nova Scotia) between which it is lawful under the navigation laws for a vessel not documented under the laws of the United States to carry merchandise shall, if practicable, be carried on vessels in respect of which a contract is made under this title. requirements of postal service Requirements of Postal Service.Postmaster General to certify to Board what ocean mail routes be established between ports now served by foreign vessels. Sec. 402. As soon as practicable after the enactment of this Act, and from time to time thereafter, it shall be the duty of the Postmaster General to certify to the United States Shipping Board what ocean mail routes, in his opinion, should be established and/or operated for the carrying of mails of the United States between ports (exclusive of ports in the Dominion of Canada other than ports in Nova Scotia) between which it is lawful under the navigation laws for a vessel not documented under the laws of the Distribution, etc.United States to carry merchandise, distributed so as equitably to serve the Atlantic, Mexican Gulf, and Pacific coast ports, the volume of mail then moving over such routes and the estimated volume thereof during the next five years, the times deemed by him advisable for the departure of the vessels carrying such mails, and other 693requirements necessary to provide an adequate postal service between such ports. recommendations by shipping board Recommendations by Board. Sec. 403. The board shall, as soon as practicable after receipt of Determination of type, etc., of vessels, sailings, etc.such certification from the Postmaster General, determine and certify to him the type, size, speed, and other characteristics of the vessels which should be employed on each such route, the frequency and regularity of their sailings, and all other facts which bear upon the capacity of the vessels to meet the requirements of the service stated by the Postmaster General. The board in making its determination Latest and most approved types, etc.shall take into consideration the desirability of having the mail service performed by vessels constructed in accordance with the latest and most approved types, with modern improvements and appliances. authority to make contracts Contracts. Sec. 404. The Postmaster General is authorized to enter into Postmaster General may make, with American citizens for carrying foreign mails.contracts with citizens of the United States whose bids are accepted, for the carrying of mails between ports (exclusive of ports in the Dominion of Canada other than ports in Nova Scotia) between which it is lawful under the navigation laws for a vessel not documented under the laws of the United States to carry merchandise. Requirements and conditions.He shall include in such contracts such requirements and conditions as in his best judgment will insure the full and efficient performance thereof and the protection of the interests of the Government. Performance Term, etc.under any such contract shall begin not more than three years after the contract is let, and the term of the contract shall not exceed ten years. vessels Vessels. Sec. 405.
(a)The vessels employed in ocean mail service under a Steel vessels.contract made under this title shall be steel vessels, shall be steam or motor vessels, and shall be either
(1)American-built and registered American built and registered.under the laws of the United States during the entire time of such employment, or
(2)registered under the laws of the United Registered not later than February 1, 1928.States not later than February 1, 1928, and so registered during the entire time of such employment, or
(3)actually ordered and Under construction for American citizens.under construction for the account of citizens of the United States prior to February 1, 1928, and registered under the laws of the United States during the entire time of such employment.
(b)A vessel for the services of which a contract is entered into Construction hereafter with reference to use by the Navy.under authority of this title, and the construction of which is hereafter begun, shall be either
(1)a vessel constructed, according to plans and specifications approved by the Secretary of the Navy, with particular reference to economical conversion into an auxiliary naval Useful in national emergency.vessel, or
(2)a vessel which will be otherwise useful to the United States in time of national emergency.
(c)From and after the enactment of this Act, all licensed officers Licensed officers to be American citizens.Citizenship of crew.of vessels documented under the laws of the United States, as now required by law, shall be citizens of the United States; from and after the enactment of this Act and for a period of four years, upon each departure from the United States of a vessel employed in ocean mail service under this title, one-half of the crew (crew including all employees of the ship other than officers) shall be citizens of the United States and, thereafter, two-thirds of the crew as above defined shall be citizens of the United States. 694 advertising for bids Advertising for bids.Public notice in daily newspapers of specified cities. Sec. 406. Before making any contract for carrying ocean mails this title the Postmaster General shall give public notice by advertisement once a week for three weeks in such daily newspapers as he shall select in each of the cities of Boston, New York, Philadelphia, Baltimore, New Orleans, Charleston, Norfolk, Savannah, JacKsonville, Galveston, Houston, and Mobile, calling for bids for For Pacific Ocean service.carrying of such ocean mails; or when the proposed service is to be on the Pacific Ocean then in Los Angeles, San Francisco, Portland, Contents of notice.Tacoma, and Seattle. Such notice shall describe the proposed route, the time when such contract will be made, the number of trips a year, the schedule required, the time when the service shall commence, the character of the vessels required, and all other information deemed by the Postmaster General to be necessary to inform prospective bidders as to the character of the service to be required. awarding contracts Awarding contracts.Lowest qualified bidder accepted. Sec. 407. Each contract for the carrying of ocean mails under this title shall be awarded to the lowest bidder who, in the judgment of the Postmaster General, possesses such qualifications as to insure proper performance of the mail service under the contract. classification of vessels Classification of vessels.Determined by speed and tonnage. Sec. 408.
(a)The vessels employed in ocean mail service under this title shall be divided into classes as follows: Class 7. Class 7. Vessels capable of maintaining a speed of 10 knots at sea in ordinary weather, and of a gross registered tonnage of not less than 2,500 tons. Class 6. Class 6. Vessels capable of maintaining a speed of 10 knots at sea in ordinary weather, and of a gross registered tonnage of not less than 4,000 tons. Class 5. Class 5. Vessels capable of maintaining a speed of 13 knots at sea in ordinary weather, and of a gross registered tonnage of not less than 8,000 tons. Class 4. Class 4. Vessels capable of maintaining a speed of 16 knots at sea in ordinary weather, and of a gross registered tonnage of not less than 10,000 tons. Class 3. Class 3. Vessels capable of maintaining a speed of 18 knots at sea in ordinary weather, and of a gross registered tonnage of not less than 12,000 tons. Class 2. Class 2. Vessels capable of maintaining a speed of 20 knots at sea in ordinary weather, and of a gross registered tonnage of not less than 16,000 tons. Class 1. Class 1. Vessels capable of maintaining a speed of 24 knots at sea in ordinary weather, and of a gross registered tonnage of not less than 20.000 tons. Classification may be based on speed without regard to tonnage on particular routes.
(b)The classification of a vessel may be based upon its speed without regard to its tonnage if the Postmaster General is of opinion that speed is especially important on the particular route on which the vessel is to be employed, and that a suitable vessel documented under the laws of the United States of a higher classification is not available on reasonable terms and conditions, or, on account of the character of the ports served or for other reasons, can not be safely or economically employed on such route. compensation under contracts Compensation under contracts.Rates. Sec. 409.
(a)The rate of compensation to be paid under this title for ocean-mail service shall be fixed in the contract. Such rate 695shall not exceed: For vessels of Class 7, $1.50 per nautical mile; for vessels of Class 6, $2.50 per nautical mile; for vessels of Class 5, $4 per nautical mile; for vessels of Class 4, $6 per nautical mile; for vessels of Class 3, $8 per nautical mile; for vessels of Class 2, $10 per nautical mile; and for vessels of Class 1, $12 per nautical mile. As used in this section the term “nautical mile” means 6,080 feet.
(b)When the Postmaster General is of opinion that the interests Extra pay for class 1 vessels maintaining excess speed.of the postal service will be served thereby, he may, in the case of a vessel of class 1 capable of maintaining a speed in excess of 24 knots at sea in ordinary weather, contract for the payment of compensation in excess of the maximum compensation authorized in subsection (a), but the compensation per nautical mile authorized by this subsection shall not be greater than an amount which bears the same ratio to $12 as the speed which such vessel is capable of maintaining at sea in ordinary weather bears to 24 knots.
(c)If the Postmaster General is of opinion that to expedite and Airplane or airship service allowance.maintain satisfactory service under a contract made under this title, airplanes or airships are required to be used in conjunction with vessels, he may allow additional compensation, in amounts to be determined by him, on account of the use of such airplanes or airships. Such airplanes or airships shall be American-built and Conditions.owned, officered, and manned by citizens of the United States.
(d)The Postmaster General shall determine the number of Determining miles between ports.nautical miles by the shortest practicable route between the ports involved and payments under any contract made under this title shall be made for such number of miles on each outward voyage regardless of the actual mileage traveled. violation of contracts Violation of contracts. Sec. 410. In the case of failure of a vessel from any cause to Deductions to be made for failure to perform regular voyage, etc.perform any regular voyage required by a contract made under this title, a pro rata deduction shall be made from the contract price on account of such omitted voyage; and suitable deductions, to be determined by the Postmaster General, may be made from the compensation payable under the contract for delays, failures to properly safeguard the mails, or other irregularities in the performance of the contract. Deductions so determined upon shall be deducted by the Postmaster General from the payments otherwise due and payable under the terms of the contract. The Postmaster General may, in case of emergency, permit the substitution for a particular voyage of a vessel not within the provisions of the contract, even though not conforming to the requirements of section 405. passengers, freight, and express Passengers, freight, and express. Sec. 411. Any vessel operating under a contract made under this Contract vessels may carry.title may carry passengers and their baggage, and freight and express, and may do all ordinary business done by similar vessels. naval officers Naval officers. Sec. 412. Naval officers of the United States on the active list On active list may volunteer for service on mail vessels.may volunteer tor service on any vessel employed in mail service under a contract made under the provisions of this title, and when accepted by the owner or master thereof may be assigned to such duty by the Secretary of the Navy. While in such employment such Compensation, etc.officers shall receive from the Government half pay, exclusive of allowances, and such other compensation from the owner or master as may be agreed upon by the parties; but such officers while in such employment shall be required to perform only such duties as appertain to the merchant marine. 696 mail messengers Mail messengers.Transportation, etc., of, on contract vessels. Sec. 413. Upon each vessel employed in ocean mail service under a contract made under this title, the Postmaster General shall be entitled to have transported such mail messengers as he may require, for whom shall be provided subsistence, suitable staterooms, and working quarters, all free of charge. amendments and repeals Amendments and repeals.Vol. 41, p. 998, amended.U. S. Code, p. 1541.Mails to be shipped on American vessels. Sec. 414.
(a)Section 24 of the Merchant Marine Act, 1920 [U. S. C, Title 46, § 880], is amended to read as follows: " “Sec. 24. That all mails of the United States shipped or carried on vessels shall, if practicable, be shipped or carried on American-built Contract assignments, etc., forbidden.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, No payment on assigned contracts.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 Not applicable to contracts under this Act.*Ante,* p. 693.Allowance of former rates repealed.Vol. 41, p. 991, amended.U. S. Code, p. 1538.vessel not so built and documented. This section shall not be applicable in the case of contracts made under Title IV of the Merchant Marine Act, 1928.” "
(b)Section 7 of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 866], is amended by striking out so much thereof as reads as follow: “The 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.” Ocean mail service Act of 1891, repealed.Vol. 26, pp. 830–832, repealed.U. S. Code, pp. 1274, 1275.
(c)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 [U. S. C., Title 39, §§ 657–665], is repealed. Contracts for carry-mails to Great Britain, repealed.Vol. 39, p. 1066, repealed.U. S. Code, p. 1275.
(d)So much of the Act entitled “An Act making appropriations for the service of the Post Office Department for the fiscal year ending June 30, 1918, and for other purposes,” approved March 3, 1917, as provides for contracts for the carrying of mails between the United States and Great Britain [U. S. C., Title 39, § 666], is repealed. Contract transportation.R. S. sec. 4009, p. 774 amended.Vol. 44, p. 900, amended.
(e)Subdivision
(b)of section 4009 of the Revised Statutes, as amended [44 Statutes at Large, pt 2, 900], is amended to read as follows: Compensation not limited to specified contracts.R. S. sec. 4007, p. 774.Vol. 41, p. 998.U. S. Code, pp. 1274, 1541.*Ante,* p. 693. " “(b) The provisions of subdivision
(a)of this section shall not limit the compensation for transportation of mail which the Postmaster General may pay under contracts entered into in accordance with the provisions of section 4007 of the Revised Statutes [U. S. C., Title 39, § 652], section 24 of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 880], or Title IV of the Merchant Marine Act. 1928.” " Prior contracts continued.
(f)Any contract made prior to the enactment of this Act shall remain in force and effect in the same maimer and to the same extent as though this Act had not been enacted. Any such contract which expires on June 30, 1928, may be extended for a period of not more than one year from such date. 697 TITLE V— INSURANCE FUND Insurance fund. Sec. 501. Section 10 of the Merchant Marine Act, 1920 [U. S. C., Vol. 41, p. 992, amend, ed.U. S. Code, p. 1536.Title 46, § 869], is amended to read as follows: " “Sec. 10. That the board may create out of insurance premiums, Authorized for Government interest in vessels, plants, etc.and revenue from operations and sales, and maintain and administer separate insurance funds which it may use to insure in whole or in part against all hazards commonly covered by insurance policies in such cases, any legal or equitable interest of the United States
(1)in any vessel constructed or in process of construction; and
(2)in any plants or property in the possession or under the authority of the board. The United States shall be held to have such an Extent of interest stated.interest in any vessel toward the construction, reconditioning, remodeling, improving, or equipping of which a loan has been made under the authority of this Act, in any vessel upon which it holds a mortgage or lien of any character, or in any vessel which is obligated by contract with the owner to perform any service in behalf of the United States, to the extent of the Government’s interest therein.” " TITLE VI— TRANSPORTATION OF GOVERNMENT OFFICIALS Transportation of Government officials. Sec. 601. Any officer or employee of the United States traveling on Use of American ships when traveling to foreign countries.official business overseas to foreign countries, or to any of the possessions of the United States, shall travel and transport his personal effects on ships registered under the laws of the United States when such ships are available, unless the necessity of his mission requires the use of a ship under a foreign flag: *Provided,* That the Comptroller *Proviso.*Proof of necessity required for travel on foreign ships.General of the United States shall not credit any allowance for travel or shipping expenses incurred on a foreign ship in the absence of satisfactory proof of the necessity therefor. TITLE VII— MISCELLANEOUS authorization of appropriations Sec. 701. The appropriations necessary to carry out the provisionsAppropriations authorized. and accomplish the purposes of this Act are hereby authorized. requisition of vessels Requisition of vessels. Sec. 702.
(a)The following vessels may be taken and purchased or used by the United States for national defense or during any national emergency declared by proclamation of the President:
(1)Any vessel in respect of which, under a contract hereafter Vessels under contract from loan fund.entered into, a loan is made from the construction loan fund created by section 11 of the Merchant Marine Act, 1920, as amended—at any *Ante,* p. 690.time until the principal and interest of the loan has been paid; and
(2)Any vessel in respect of which an ocean mail contract is made Ocean mail contract vessels.under Title IV of this Act—at any time during the period for which the contract is made.
(b)In such event the owner shall be paid the fair actual value of Compensation, if bought.the vessel at the time of taking, or paid the fair compensation for her use based upon such fair actual value; but in neither case shall such fair actual value be enhanced by the causes necessitating the taking. In the case of a vessel taken and used, but not purchased, Used, but not purchased.the vessel shall be restored to the owner in a condition at least as good as when taken, less reasonable wear and tear, or the owner shall be paid an amount for reconditioning sufficient to place the vessel in No consequential damages.such condition. The owner shall not be paid for any consequential damages arising from such taking and purchase or use. 698 Certification of amount to Congress.
(c)The President shall ascertain the fair compensation for such taking and purchase or use and shall certify to Congress the amount so found by him to be due, for appropriation and payment to the Suit if amount unsatisfactory.person entitled thereto. If the amount found by the President to be due is unsatisfactory to the person entitled thereto, such person shall be entitled to sue the United States for the amount of such fair compensation and such suit shall be brought in the manner provided by Vol. 36, pp. 1093, 1136.U. S. Code, pp. 867, 897.paragraph 20 of section 24 or by section 145 of the Judicial Code, as amended [U. S. C., Title 28, §§ 41, 250]. definitions Definitions.Meaning of “foreign trade.” Sec. 703.
(a)When used in this Act, and for the purposes of this Act only, the words “foreign trade” mean trade between the United States, its Territories or possessions, or the District of Columbia and *Proviso.*Loading or unloading at any port in any territory, construed as foreign trade.a foreign country: *Provided, however,* That the loading or the unloading of cargo, mail, or passengers at any port in any territory or possession of the United States shall be construed to be foreign trade if the stop at such territory or possession is an intermediate stop on what would otherwise be a voyage in foreign trade. Inclusion of corporation, etc., as “citizen of the United States.”Vol. 41, p. 1008.U. S. Code, p. 1530.
(b)When used in this Act the term “citizen of the United States” includes a corporation, partnership, or association only if it is a citizen of the United States within the meaning of section 2 of the Shipping Act, 1916, as amended [U. S. C., Title 46, § 802]. reaffirmation of policy Reaffirmation of policy.Vol. 41, p. 991.U. S. Code, p. 1538. Sec. 704. The policy and the primary purpose declared in section 7 of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 866], are hereby reaffirmed. ship operations Ship operations.Allocation of service among various ports. Sec. 705. In the allocations of the operations of the ships, the Shipping Board shall distribute them as far as possible and without detriment to the service among the various ports of the country. short title Short title.Merchant Marine Act, 1928. Sec. 706. This Act may be cited as the “Merchant Marine Act, 1928”. Approved, May 22, 1928.