[CHAPTER 235-2D SESSION]

[S. 560]

AN ACT

To prohibit the operation of gambling ships, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That as used in this Act

(a) The term "gambling ship" means a vessel used principally for the operation of one or more gambling establishments.

(b) The term "gambling establishment" means any common gaming or gambling establishment operated for the purpose of gaming or gambling, including accepting, recording, or registering bets, or carrying on a policy game or any other lottery, or playing any game of chance, for money or other thing of value.

(c) The term "vessel" includes every kind of water and air craft or other contrivance used or capable of being used as a means of transportation on water, or on water and in the air, as well as any ship, boat, barge, or other water craft or any structure capable of floating on the water.

(d) The term "American vessel" means any vessel documented or numbered under the laws of the United States; and includes any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if such vessel is owned by, chartered to, or otherwise controlled by one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any State.

(e) The term "United States", when used in a geographical sense, includes the continental United States and the Territories and possessions of the United States, other than the Canal Zone.

SEC. 2. (a) It shall be unlawful for any citizen or resident of the United States, or any other person who is on an American vessel or is otherwise under or within the jurisdiction of the United States, directly or indirectly

(1) to set up, operate, or own or hold any interest in any gambling ship or any gambling establishment on any gambling ship;

or

(2) in pursuance of the operation of any gambling establishment on any gambling ship, to conduct or deal any gambling game, or to conduct or operate any gambling device, or to induce, entice, solicit, or permit any person to bet or play at any such establishment,

if such gambling ship is on the high seas, or is an American vessel or otherwise under or within the jurisdiction of the United States, and is not within the jurisdiction of any State.

(b) Whoever violates the provisions of subsection (a) shall, upon conviction, be imprisoned for not more than two years or fined not more than $10,000, or both.

(c) Whoever, being (1) the owner of an American vessel, or (2) the owner of any vessel under or within the jurisdiction of the United States, or (3) the owner of any vessel and being an American citizen, shall use, or knowingly permit the use of, such vessel in violation of any provision of this section shall, in addition to any other penalties provided by this Act, forfeit such vessel, together with her tackle, apparel, and furniture, to the United States.

SEC. 3. (a) It shall be unlawful to operate or use, or to permit the operation or use of, any vessel for the carriage or transportation, or for any part of the carriage or transportation, either directly or indirectly, of any passengers, for hire or otherwise, between any point or place within the United States and any gambling ship which is not within the jurisdiction of any State. The provisions of this section shall not apply to any carriage or transportation to or from any vessel in case of any emergency involving the safety or protection of life or property.

(b) The Secretary of the Treasury is hereby authorized to prescribe such reasonable rules and regulations as may be necessary to enforce the provisions of this section and to prevent violations of such provisions. For the operation or use of any vessel in violation of the provisions of this section or of any rule or regulation issued hereunder, the owner or charterer of such vessel shall be subject to a civil penalty of $200 for each passenger carried or transported in violation of such provisions, and the master or other person in charge of such vessel shall be subject to a civil penalty of $300. Such penalty shall constitute a lien on such vessel, and proceedings to enforce such lien may be brought summarily by way of libel in any court of the United States having jurisdiction thereof. The Secretary of the Treasury is hereby authorized to mitigate or remit any of the penalties provided by this section on such terms as he may deem proper.

SEC. 4. Nothing in this Act shall be held to take away or impair the jurisdiction of the courts of the several States under the laws thereof, or to preclude action, otherwise valid, by any State or Territory with respect to the navigable waters within the boundaries of such State or Territory.

Approved April 27, 1948.

[CHAPTER 257-2D SESSION]

[H. R. 5448]

AN ACT.

To amend sections 212 (b) and 231 (d) of the Internal Revenue Code.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 212 (b) of the Internal Revenue Code (relating to income of nonresident alien individuals) is hereby amended to read as follows:

"(b) EXCLUSIONS.-The following items shall not be included in gross income of a nonresident alien individual and shall be exempt from taxation under this chapter:

"(1) SHIPS UNDER FOREIGN FLAG.-Earnings derived from the operation of a ship or ships documented under the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States;

"(2) AIRCRAFT OF FOREIGN REGISTRY.-Earnings derived from the operation of aircraft registered under the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States." (b) Section 231 (d) of the Internal Revenue Code (relating to income of foreign corporations) is hereby amended to read as follows: "(d) EXCLUSIONS.-The following items shall not be included in gross income of a foreign corporation and shall be exempt from taxation under this chapter:

"(1) SHIPS UNDER FOREIGN FLAG.-Earnings derived from the operation of a ship or ships documented under the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States;

"(2) AIRCRAFT OF FOREIGN REGISTRY.-Earnings derived from the operation of aircraft registered under the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States." SEC. 2. The amendments made by this Act shall be applicable with respect to taxable years beginning after December 31, 1945. Approved May 4, 1948.

[PUBLIC LAW 518-80TH CONGRESS]

[CHAPTER 269-2D SESSION]

(S. 1132]

AN ACT

To amend section 40 of the Shipping Act, 1916 (39 Stat. 728), as amended.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 40 of the Shipping Act, 1916 (39 Stat. 728), as amended, is amended by inserting before the period at the end of the first paragraph a comma and the following: "or any other official thereof duly authorized by such corporation to execute any such declaration".

Approved May 10, 1948.

[CHAPTER 328-2D SESSION]

[H. R. 3350]

AN ACT

Relating to the rules for the prevention of collisions on certain inland waters of the United States and on the western rivers, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That so much of the first section of the Act entitled "An Act to adopt regulations for preventing collisions upon certain harbors, rivers, and inland waters of the United States", approved June 7, 1897, as amended (U. S. C., 1940 edition, title 33, sec. 154), as reads "That the following regulations for preventing collision shall be followed by all vessels navigating all harbors, rivers, and inland waters of the United States, except the Great Lakes and their connecting and tributary waters as far east as Montreal and the Red River of the North and rivers emptying into the Gulf of Mexico and their tributaries, and are hereby declared special rules duly made by local authority:" is amended to read as follows: "That the following regulations for preventing collisions. shall be followed by all vessels upon the harbors, rivers, and other inland waters of the United States, except the Great Lakes and their connecting and tributary waters as far east as Montreal, and the waters of the Mississippi River between its source and the Huey P. Long Bridge and all of its tributaries emptying thereinto and their tributaries, and that part of the Atchafalaya River above its junction with the Plaquemine-Morgan City alternate waterway, and the waters of the Mobile River above Choctaw Point and all of its tributaries, and the Red River of the North; and are hereby declared special rules duly made by local authority :".

SEC. 2. Article 3 in the first section of such Act approved June 7, 1897, as amended (U. S. C., 1940 edition, title 33, sec. 173), is amended to read as follows:

"ART. 3. A steam vessel when towing another vessel or vessels alongside or by pushing ahead shall, in addition to her side lights, carry two bright white lights in a vertical line, one over the other, not less than three feet apart, and when towing one or more vessels astern, regardless of the length of the tow, shall carry an additional bright white light three feet above or below such lights. Each of these lights shall be of the same construction and character, and shall be carried in the same position as the white light mentioned in article 2 (a) of this chapter or the after range light mentioned in article 2 (f) of this chapter.

"Such steam vessel may carry a small white light abaft the funnel or aftermast for the vessel towed to steer by, but such light shall not be visible forward of the beam."

SEC. 3. Sections 2, 3, and 4 of such Act of June 7, 1897, as amended (U. S. C., 1940 edition, title 33, sections 157, 158 and 159), are amended to read as follows:

"SEO. 2. (a) That the Commandant of the United States Coast Guard shall establish such rules to be observed on the waters mentioned in the preceding section.by steam vessels in passing each other and as to the lights to be carried on such waters by ferryboats and by vessels and craft of all types when in tow of steam vessels, or operating by hand power or horsepower or drifting with the current, and any other vessels not otherwise provided for, not inconsistent with the provisions of this Act, as he from time to time may deem necessary for safety, which rules are hereby declared special rules duly made by local authority, as provided. for in article thirty of chapter eight hundred and two of the laws of eighteen hundred and ninety. Two printed copies of such rules shall be furnished to all vessels and craft mentioned in this subsection, which rules shall, where practicable, be kept posted up in conspicuous places thereon.

"(b) Except in an emergency, before any rules or any alteration, amendment, or repeal thereof, are established by the Commandant of the United States Coast Guard under the provisions of this section, the said Commandant shall publish such rules, alterations, amendments, and repeals, and public hearings shall be held with respect thereto before the Coast Guard Merchant Marine Council on such notice as the Commandant deems reasonable under the circumstances. "SEC. 3. That every pilot, engineer, mate, or master of any steam vessel, as defined in rule numbered 1, and every master or mate of any barge or canal boat, who neglects or refuses to observe the provisions of this Act, or the regulations established in pursuance of the preceding section shall be liable to a penalty of one hundred dollars, and for all damages sustained by any passenger in his person or baggage by such neglect or refusal: Provided, That nothing herein shall relieve any vessel, owner, or corporation from any liability incurred by reason of such neglect or refusal.

"SEC. 4. That every vessel that shall be navigated without complying with the provisions of this Act shall be liable to a penalty of two hundred dollars, one-half to go to the informer, for which sum the vessel so navigated shall be liable and may be seized and proceeded against by action in any district court of the United States having jurisdiction of the offense."

SEC. 4. Section 4233 of the Revised Statutes of the United States, as amended (U. S. C., 1940 edition, title 33, sec. 301 and the following) is amended to read as follows:

"SEC. 4233. The following regulations for preventing collisions shall be followed by all vessels upon the waters of the Mississippi River between its source and the Huey P. Long Bridge and all of the tributaries emptying thereinto and their tributaries, and that part of the Atchafalaya River above its junction with the Plaquemine-Morgan City alternate waterway, and the waters of the Mobile River above Choctaw point and all of its tributaries, and the Red River of the North; and are hereby declared special rules duly made by local authority:

"I-PRELIMINARY DEFINITIONS

"RULE NUMBERED 1. In the following rules every steam vessel which is under sail and not under power is to be considered a sailing vessel, and every vessel under power, whether under sail or not, is to be considered a steam vessel.