The possession and control of such other docks, piers, warehouses, 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. [§ 19(2)] President may transfer War Department President may transfer port facilities to Department. War or Navy The President may at any time he deems it necessary, by order 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 therefore ceases the possession and control of such prop- sale proerty shall revert to the board. None of such property hibited. shall be sold except as may be hereafter provided by law. 46 U.S.C. 876. 41 Stat. 995. Section 18 was supplanted by section 42, Public No. 52 Stat. 964. 705 (H.R. 10315), 75th Cong., 3d sess., approved June 23, 1938. (See: Shipping Act, 1916, sec. 9, infra.) Sec. 19. (1) The board is authorized and directed in aid of the accomplishment of the purposes of this Act: (a) To make all necessary rules and regulations to carry out the provisions of this Act; (b) To make rules and regulations affecting shipping in the foreign 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, or 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 regulations relating to the Public Health Service, the Consular Service, and the Steamboat-Inspection Service. (2) No rule or regulation shall hereafter be established by any 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 Board in order to develop merchant marine may: Make rules and regulations ping in foreign governing ship trade. Request demake, suspend, nul rules and affecting shipping. modify, or an regulations Approve rules and regulations shipping. relating to [§ 19(2)] May refer rules and regulations relating to shipping to President. Board vessels not to be given preference over private vessels. 46 U.S.C. 812, 813. 39 Stat. 733. 41 Stat. 996. 46 U.S.C. 877. 48 Stat. 963. 41 Stat. 997. Not appli cable Samoan Islands. Extension of coastwise laws to insular possessions. Board to establish adequate insular steamship service. action has been taken thereon by the board or the President. (3) Whenever the head of any department, board, bureau, or 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, 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 manner 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. SEC. 20. (1) That section 14 of the Shipping Act, 1916, as amended, is amended to read as follows: (See: Shipping Act, 1916, sec. 14, infra.) (2) The Shipping Act, 1916, as amended, is amended by inserting after section 14 a new section to read as follows: (See: Shipping Act, 1916, sec. 14a, infra.) 3 SEC. 21. That from and after February 1, 1922, the coastwise laws 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 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 erning shipping adequate shipping facilities therefor: Provided further, That, until Congress shall have authorized the registry as 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, President may extend period. Rules and reg ulations gov in Philippines. 3 The word "year" should be "time" or "period." The first line originally read "That from and after one year from the enactment of this act, etc. By an oversight when the period was extended to Feb. 1, 1922, Congress failed to use appropriate language to correspond with Feb. 1, 1922. That the foregoing 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: And further provided, That the coast wise laws of the United States shall not extend to the Virgin Islands of the United States until the President of the United States shall, by proclamation, declare that such coastwise laws shall extend to the Virgin Islands and fix a date for the going into effect of same. [§ 23] Law not to Philippines unby President. take effect in til proclaimed Not appli cable Virgin Islands. 49 Stat. 1207. 48 Stat. 963. Act authoriz vessels to enwise trade repealed. ing foreign gage in coast American owned foreignbuilt vessels excepted.. Not applicable— Samoan Islands. Foreign vessels authorized to carry passenUnited States and Hawaii. gers between Vessels ex SEC. 22. That the Act entitled "An Act giving the United States Shipping Board power to suspend present provisions of law and permit vessels of foreign 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 foreign-built vessels admitted to American registry, owned on February 1, 1920, by persons citizens of the United States, and all foreign-built 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 carrying of passengers in foreign ships if it deems it necessary to do so, 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 of 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 41 Stat. 997. after the enactment of this Act, be allowed as a deduction for the purpose of ascertaining his net income subject to the war-profits and excess-profits taxes imposed by Title III of the Revenue Act of 1918 an amount equivalent to the net earnings of such vessel during such taxable year, determined in accordance with rules and regulations to be made by the board: Provided, That such 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 empted from war and excess 46 U.S.C. 878. Funds must be invested in con structing new vessels. [§ 23] Owner to furnish two-thirds of construction cost. 45 Stat. 881. 46 U.S.C. 879. 41 Stat. 998. 46 U.S.C. 881. 41 Stat. 998. Recognition of American Bureau of Shipping. Government on American Bureau of Shipping. under the provisions of this section: 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. During the period of ten years from June 5, 1920, 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 the Revenue Act of 1918, or under any subsequent Revenue Act in force during such ten-year period, if the entire proceeds thereof shall be invested in the building of new ships in American shipyards, such ships to be documented under the laws of the United States and to be of a type approved by the Board. The basis of any such new ship shall be reduced by the amount of the gain from such sale exempt from taxation under this paragraph. [Section 24 was repealed by section 12(c) of Public Law 86-682 (74 Stat. 578); for carriage of mail in United States registered vessels, see 39 U.S.C. 6104.] SEC. 25. That for the classification of vessels owned by the United 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 representatives capital stock and pays no dividends: Provided, That the Secretary of Commerce and the chairman of the 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, 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. List of merchant vessels to indicate vessels classified by American Bureau of Shipping. Cargo vessels authorized to carry 16 passengers. 46 U.S.C. 882. 41 Stat. 998. SEC. 26. That cargo vessels documented under the laws of the 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 regu lations thereunder: Provided, That nothing herein shall be taken to exempt such vessels from the laws, rules, and regulations respecting life-saving equipment: Provided further, That 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 United 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 to give such notice shall subject the vessel to 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, or by land and water, on penalty of forfeiture thereof, between points in the United States, including Districts, Territories, and possessions thereof embraced within the coast wise laws, either directly or via a foreign coastwise 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 coast wise trade is extended by sections 18 or 22 of this Act: Provided, That no vessel having at any time acquired the lawful right to engage in the coastwise trade, either by virtue of having been built in, or documented under the laws of the United States, and later sold foreign in whole or in part, or placed under foreign registry, shall hereafter acquire the right to engage in the coastwise trade: Provided further, That no vessel of more than five hundred gross tons which has acquired the lawful right to engage in the coastwise With respect to transportation of passengers in the coastwise trade see 46 U.S.C. 289. With respect to Hyder, Alaska, see Public Law 87-77, 75 Stat. 196, which reads as follows: "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwithstanding the provisions of law of the United States restricting to vessels of the United States the transportation of passengers and merchandise directly or indirectly from any port in the United States to another port of the United States, passengers may be transported on Canadian vessels between ports in southeastern Alaska, and passengers and merchandise may be transported on Canadian vessels between Hyder, Alaska, and other points in southeastern Alaska, and between Hyder, Alaska, and other points in the United States outside Alaska, either directly or via a foreign port, or for any part of the transportation until the Secretary of Commerce determines that United States-flag service is available to provide such transportation." [§ 27] Such vessels subject to lifesaving equipPentlaws. Passengers to be notified of dangers. Foreign vessels may carry pas States. Penalty. 46 U.S.C. 883. 49 Stat. 154. 41 Stat. 999. 49 Stat. 442. Documentation. II, 46 U.S.C. Coastwise Samoan Islands. Canadian Transportation. |