Chapter 675. To further develop an American merchant marine, to assure its permanence in the transportation of the foreign trade of the United States, and for other purposes
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Chap. 675: To further develop an American merchant marine, to assure its permanence in the transportation of the foreign trade of the United States, and for other purposes. Chapter 675 45 Stat. 689 1928-05-22 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2025-01-24 70 1 public Chapter 675.— An Act To further develop an American merchant marine, to assure its permanence in the transportation of the foreign trade of the United States, and for other purposes.
May 22, 1928.[[S. 744](/us/bill/70/s/744).][[Public, No. 463](/us/pl/70/463).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* Merchant Marine Act, 1928. TITLE I— DECLARATION OF POLICY Sec. 1. The policy and the primary purpose declared in section 1 Policy of former Act confirmed.Vol. 41, p. 988.U. S. Code, p. 1537.of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 861], are hereby confirmed. 690 TITLE II— SHIPPING BOARD VESSELS Shipping Board, vessels. sales by board Sales by the Board.Restrictions on.
Sec. 201. The United States Shipping Board shall not sell any vessel or any line of vessels except when in its judgment the building up and maintenance of an adequate merchant marine can be best served thereby, and then only upon the affirmative vote of five members of the board duly recorded. remodeling and improving Remodeling and improving.Vessels of United States to be remodeled etc.Vol. 41; p. 993, Vol. 43, p. 468.U. S. Code, p. 1539. Sec. 202. In addition to its power to recondition and repair vessels under section 12 of the Merchant Marine Act, 1920, as amended [U.
S. C., Title 46, § 871], the board may remodel and improve vessels owned by the United States and in its possession or under its control, so as to equip them adequately for competition in the Documenting, etc.foreign trade of the United States. Any vessel so remodeled or improved shall be documented under the laws of the United States and shall remain documented under such laws for not less than five years from the date of the completion of the remodeling or improving and so long as there remains due the United States any money or interest on account of such vessel, and during such period it shall be operated only on voyages which are not exclusively coastwise. replacements Replacements.Recommendations to Congress as to new vessels required in foreign trade.
Sec. 203. The necessity for the replacement of vessels owned by the United States and in the possession or under the control of the board and the construction for the board of additional up-to-date cargo, combination cargo and passenger, and passenger ships, to give the United States an adequate merchant marine, is hereby recognized, and the board is authorized and directed to present to Congress from time to time, recommendations setting forth what new vessels are required for permanent operation under the United States flag in foreign trade, and the estimated cost thereof, to the end that Construction to be in United States.Congress may, from time to time, make provision for replacements and additions.
All vessels built for the board shall be built in the United States, and they shall be planned with reference to their possible usefulness as auxiliaries to the naval and military services of the United States. TITLE III— CONSTRUCTION LOAN FUND Construction loan fund. terms and conditions of loans Terms and conditions of loans.Vol. 44, p. 1451, amended.U. S. Code, p. 1539.*Ante,* p. 586. Sec. 301.
(a)Section 11 of the Merchant Marine Act, 1920, as amended [U. S. C., Title 4G, § 870; 44 Statutes at Large, pt 2, 1451], is amended to read as follows: Revenues from sales, etc., of board to be set aside for fund.*Post,* p. 889. " “Sec. 11.
(a)That the board may set aside, out of the revenues from sales, including proceeds of securities consisting of notes, letters of credit, or other evidences of debt, taken by it for deferred payments on purchase money from sales by the board, whether such securities are to the order of the United States, the United States Shipping Board, the United States Shipping Board Emergency Fleet Corporation, or the United States Shipping Board Merchant Aggregate amount.Fleet Corporation, either directly or by indorsement, until the amounts thus set aside from time to time aggregate $125,000,000. The amount thus set aside shall be known as the construction loan Loans from, to citizens for ship construction in United States of best type, equipment, etc.fund. The board may use such fund to the extent it thinks proper, upon such terms as the board may prescribe, in making loans to aid persons citizens of the United States in the construction by them in private shipyards or navy yards in the United States of vessels of 691the best and most efficient type for the establishment or maintenance of service on lines deemed desirable or necessary by the board, provided such vessels shall be fitted and equipped with the most modern, the most efficient, and the most economical engines, machinery, and commercial appliances; or in the outfitting and equipment Outfitting in American yards of vessels already built, with engines, etc.by them in private shipyards or navy yards in the United States of vessels already built, with engines, machinery, and commercial appliances of the type and kind mentioned; or in the reconditioning, Reconditioning, etc., in private or navy yards.remodeling, or improvement by them in private shipyards or navy yards in the United States of vessels already built. “(b) The term ‘vessel’ or ‘vessels’, where used in this section, Term of “vessel” construed to be one aided by loan.Vol. 43, p.467, amended.Documenting for twenty years under United States laws.shall be construed to mean a vessel or vessels to aid in whose construction, equipment, reconditioning, remodeling, or improvement, a loan is made from the construction loan fund of the board. All such vessels shall be documented under the laws of the United States and shall remain documented under such laws for not less than twenty years from the date the loan is made, and so long as there remains due the United States any principal or interest on account of such loan. “(c) No loan shall be made for a longer time than twenty years. Time limit for loans.Vol. 43, p. 467, amended.If it is not to be repaid within two years from the date when the first advance on the loan is made by the board, the principal shall Installment intervals.be payable in equal annual installments to be definitely prescribed in the instruments. The loan may be paid at any time, on thirty Payment in full allowed.days’ written notice to the board, with interest computed to date of payment. “(d) All such loans shall bear interest at rates as follows, payable Interest rates.While in coastwise trade, or inactive.Vol. 43, p.468, amended.In foreign trade.not less frequently than annually: During any period in which the vessel is operated exclusively in coastwise trade, or is inactive, the rate of interest shall be as fixed by the board, but not less than 5¼ per centum per annum. During any period in which the vessel is operated in foreign trade the rate shall be the lowest rate of yield (to the nearest one-eighth of 1 per centum) of any Government obligation bearing a date of issue subsequent to April 6, 1917 (except postal-savings bonds), and outstanding at the time the loan is made by the board, as certified by the Secretary of the Treasury to the board upon its request. The board may prescribe rules for determining the amount of interest payable under the provisions of this paragraph. “(e) No loan shall be for a greater sum than three-fourths the Limit of loans.cost of the vessel or vessels to be constructed or than three-fourths the cost of the reconditioning, remodeling, improving, or equipping hereinbefore authorized for a vessel already built. “(f) The board shall require such security as it shall deem necessary Security for completion and repayments.to insure the completion of the construction, reconditioning, remodeling, improving, or equipping of the vessel within a reasonable time and the repayment of the loan with interest; when the Preferred mortgage on completion of vessel.construction, reconditioning, remodeling, improving, or equipping of the vessel is completed the security shall include a preferred mortgage on the vessel, complying with the provisions of the Ship Vol. 41, p. 1060.U. S. Code, p. 1543.Mortgage Act, 1920 [U. S. C., Title 46,
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Chapter 675
To further develop an American merchant marine, to assure its permanence in the transportation of the foreign trade of the United States, and for other purposes
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