82d Congress Chapter 911 - 2d Session H. R. 5803 To extend the provisions of the Act of May 20, 1926, as amended, so as to further regulate the interstate shipment of fish. fish. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sec- Interstate tion of the Act entitled "An Act to regulate the interstate transpor- shipment of tation of black bass, and for other purposes", approved May 20, 1926, as amended, is hereby amended to read as follows: "That when used in this Act, the word 'person' includes company, partnership, corpo- 851. ration, association, and common carrier." SEC. 2. Such Act, as amended, is further amended by striking out the words "game fish" wherever they appear therein and by inserting in lieu of such words, the word "fish". Approved July 16, 1952. 44 Stat. 576. 16 U.S.C. To extend the time for use of construction reserve funds established under section 511 of the Merchant Marine Act, 1936, as amended. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5 of an Act approved August 8, 1947 (Public Law 384, Eightieth Congress), relating to merchant-marine construction reserve funds established under section 511 of the Merchant Marine Act, 1936, as amended, is hereby amended by striking out "March 31, 1952" and inserting in lieu thereof "March 31, 1953". Approved July 16, 1952. Chapter 939 - 2d Session AN ACT To amend the Merchant Marine Act, 1936, as amended, to further promote the development and maintenance of the American merchant marine, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 501 (a) of the Merchant Marine Act, 1936, as amended, is amended to read as follows: con Merchant Marine Act, 1936, amendments. differential subsidy. "(a) Any citizen of the United States may make application to the 49 Stat. 1995. Commission for a construction-differential subsidy to aid in the 46 U.S.C. $1151. struction of a new vessel to be used in the foreign commerce of the ConstructionUnited States. No such application shall be approved by the Commission unless it determines that (1) the plans and specifications call for a new vessel which will meet the requirements of the foreign commerce of the United States, will aid in the promotion and development of such commerce, and be suitable for use by the United States for national defense or military purposes in time of war or national emergency; (2) the applicant possesses the ability, experience, financial resources, and other qualifications necessary to enable it to operate and maintain the proposed new vessel, and (3) the granting of the aid applied for is reasonably calculated to replace worn-out or obsolete tonnage with new and modern ships, or otherwise to carry out effectively the purposes and policy of this Act. The contract of sale, and the mortgage given to secure the payment of the unpaid balance 66 Stat. 760. of the purchase price shall not restrict the lawful or proper use or 66 Stat. 761. operation of the vessel except to the extent expressly required by law." SEC. 2. The first sentence of section 501 (c) of such Act is amended Application. to read as follows: "Any citizen of the United States may make application to the Commission for a construction-differential subsidy to aid in reconstructing or reconditioning any vessel that is to be used in the foreign commerce of the United States." SEC. 3. Section 503 of such Act is amended by (1) amending the 46 U.S.C. §1153. third sentence to read as follows: "At the time of delivery of the vessel First-preferred the applicant shall execute and deliver a first-preferred mortgage to mortgage. the United States to secure payment of any sums due from the applicant in respect to said vessel: Provided, That, notwithstanding any other provisions of law, the payment of any sums due in respect to a passenger vessel purchased under section 4 (b) of the Merchant Ship Sales Act of 1946, reconverted or restored for normal operation in 60 Stat. 43. commercial services, or in respect to a passenger vessel purchased under 50 U.S.C. title V of this Act, which is delivered subsequent to March 8, 1946, app. § 1737. and which (i) is of not less than ten thousand gross tons, (ii) has a designed speed approved by the Commission but not less than eighteen knots, (iii) has accommodations for not less than two hundred passengers, and, (iv) is approved by the Secretary of Defense as being desirable for national defense purposes, may, with the approval of the Commission, be secured only by a first-preferred mortgage on said vessel.", and (2) by inserting the following sentences immediately after the third sentence: "With the approval of the Commission such preferred mortgage may provide that the sole recourse against the purchaser of such a passenger vessel under such mortgage, and any of the notes secured thereby, shall be limited to repossession of the vessel by the United States and the assignment of insurance claims, if the purchaser shall have complied with all provisions of the mortgage other than those relating to the payment of principal and interest when due, and the obligation of the purchaser shall be satisfied and discharged by the surrender of the vessel, and all right, title, and in Documentation. 46 U.S.C. $1154. 46 U.S.C. § 1157. Vessels in domestio trade. 46 U.3.C. 81159. terest therein to the United States. Such vessel upon surrender shall be (1) free and clear of all liens and encumbrances whatsoever, except the lien of the preferred mortgage, (ii) in class, and (iii) in as good order and condition, ordinary wear and tear excepted, as when acquired by the purchaser, except that any deficiencies with respect to freedom from encumbrances, condition, and class, may, to the extent covered by valid policies of insurance, be satisfied by the assignment to the United States of claims of the purchaser under such policies of insurance." SEC. 4. The last sentence of section 504 of such Act is amended to read as follows: "Such vessel shall be documented under the laws of the United States as provided in section 503 of this title. The contract of sale, and the mortgage given to secure the payment of the unpaid balance of the purchase price, shall not restrict the lawful or proper use or operation of the vessel, except to the extent expressly required by law." SEC. 5. Section 507 of such Act is amended by inserting therein after the words "foreign trade" the words "or domestic trade". SEC. 6. Section 509 of such Act is amended by amending that part of the fourth sentence preceding the proviso to read as follows: "In case the vessel is designed to be of not less than three thousand five hundred gross tons and to be capable of sustained speed of not less than fourteen knots, the applicant shall be required to pay the Commission not less than 122 per centum of the cost of such vessel, and in 66 Stat. 761. the case of any other vessel the applicant shall be required to pay 66 Stat. 762. the Commission not less than 25 per centum of the cost of such vessel (excluding from such cost, in either case, the cost of national defense features); and the balance of such purchase price shall be paid by the applicant within twenty years in not to exceed twenty equal annual installments, with interest at 32 per centum per annum, secured by a preferred mortgage on the vessel sold and otherwise secured as the Commission may determine: Provided, That, notwithstanding any other provisions of law, the balance of the purchase price of a passenger vessel constructed under this section which is delivered subsequent to March 8, 1946, and which has the tonnage, speed, passenger accommodations, and other characteristics set forth in section 503 of this Act, may, with the approval of the Commission, be secured as provided in such section, and the obligation of the purchaser of such a vessel shall be satisfied and discharged as provided in such section : And provided,". 46 U.S.C. 1153. "Obsolete vessel". 46 U.S.C. 1160. Rate. Construction reserve fund. SEC. 7. Paragraph (1) of section 510 (a) of such Act is amended by inserting before the period at the end thereof a colon and the following: "Provided, That until June 30, 1958, the term "obsolete vessel" shall mean a vessel or vessels, each of which (A) is of not less than one thousand three hundred and fifty gross tons, (B) is not less than twelve years old, and (C) is owned by a citizen or citizens of the United States and has been owned by such citizen or citizens for at least three years immediately prior to the date of acquisition hereunder." SEC. 8. Section 510 (d) of such Act is amended by adding the following sentence at the end thereof: "The rate for the use of the obsolete vessel shall be fixed by the Commission for the entire period of such use at the time of execution of the contract for the construction of the new vessel." SEC. 9. Section 511 (b) of such Act is amended to read as follows: "(b) For the purposes of promoting the construction, reconstruc54 Stat. 1106. tion, reconditioning, or acquisition of vessels, or for other purposes authorized in this section, necessary to carrying out the policy set forth in title I of this Act, any citizen of the United States who is operating 46 U.S.C. 1161. a vessel or vessels in the foreign or domestic commerce of the United States or in the fisheries or owns in whole or in part a vessel or vessels being so operated, or who, at the time of purchase or requisition of the vessel by the Government, was operating a vessel or vessels so engaged or owned in whole or in part a vessel or vessels being so operated or had acquired or was having constructed a vessel or vessels for the purpose of operation in such commerce or in the fisheries, may establish a construction reserve fund, for the construction, reconstruction, reconditioning, or acquisition of new vessels, or for other purposes authorized in this section, to be composed of deposits of proceeds from sales of vessels, indemnities on account of losses of vessels, earnings from the operation of vessels documented under the laws of the United States and from services incident thereto, and receipts, in the form of interest or otherwise, with respect to amounts previously deposited. Such construction reserve fund shall be established, maintained, expended, and used in accordance with the provisions of this section and rules or regulations to be prescribed jointly by the Commission and the Secretary of the Treasury." SEC. 10. Section 511 (c) of such Act is amended to read as follows: Taxes. "(c) In the case of the sale or actual or constructive total loss of a 46 U.S.C. vessel, if the taxpayer deposits an amount equal to the net proceeds of the sale or to the net indemnity with respect to the loss in a construction reserve fund established under subsection (b), then— "(1) if the taxpayer so elects in his income-tax return for the taxable year in which the gain was realized, or 1161. Recognition of gain, etc. 66 Stat. 762. "(2) in case a vessel is purchased or requisitioned by the United 66 Stat. 763. States, or is lost, in any taxable year beginning after December 31, 1939, and the taxpayer receives payment for the vessel so purchased or requisitíoned, or receives from the United States indemnity on account of such loss, subsequent to the end of such taxable year, if the taxpayer so elects prior to the expiration of sixty days after the receipt of the payment or indemnity, and in accordance with a form of election to be prescribed by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury, no gain shall be recognized to the taxpayer in respect of such sale or indemnification in the computation of net income for the purposes of Federal income or excess-profits taxes. If an election is made under subdivision (2) and if computation or recomputation in accordance with this subsection is otherwise allowable but is prevented, on the date of making such election or within six months thereafter, by any statute of limitation, such computation or recomputation nevertheless shall be made notwithstanding such statute if a claim therefor is filed within six months after the date of making such election. "For the purposes of this subsection no amount shall be considered as deposited in a construction reserve fund unless it is deposited within sixty days after it is received by the taxpayer. "As used in this subsection the term 'net proceeds' and the term 'net indemnity' mean the sum of (1) the adjusted basis of the vessel and (2) the amount of gain which would be recognized to the taxpayer without regard to this subsection." SEC. 11. Section 511 (d) of such Act is amended to read as follows: "(d) The basis for determining gain or loss and for depreciation, Determination for the purposes of Federal income or excess profits taxes, of any new of gain, etc. vessel constructed, reconstructed, reconditioned, or acquired by the taxpayer, or with respect to which purchase-money indebtedness is liquidated as provided in subsection (g), in whole or in part out of the construction reserve fund shall be reduced by that portion of the deposits in the fund expended in the construction, reconstruction. Tax benefits. Conditions. 46 U.S.C. 1161. 66 Stat. 763. 66 Stat. 764. Extensions. 46 U.S.C. 1161. Great Lakes, eto. reconditioning, acquisition, or liquidation of purchase-money indebtedness of the new vessel which represents gain not recognized for tax purposes under subsection (c). SEC. 12. Section 511 (g) of such Act is amended to read as follows: "(g) The provisions of subsections (c) and (f) shall apply to any deposit in the construction reserve fund only to the extent that such deposit is expended or obligated for expenditure, in accordance with rules and regulations to be prescribed jointly by the Commission and the Secretary of the Treasury "(1) under a contract for the construction or acquisition of a new vessel or vessels (or in the discretion of the Commission, for a part interest therein), or, with the approval of the Commission, for the reconstruction or reconditioning of a new vessel or vessels, entered into within (i) two years from the date of deposit or the date of any extension thereof which may be granted by the Commission pursuant to the provisions of section 511 (h), in the case of deposits made prior to the date on which these amendatory provisions become effective, or (ii) three years from the date of such deposit in the case of a deposit made after such effective date, only if under such rules and regulations "(A) within such period not less than 122 per centum of the construction or contract price of the vessel or vessels is paid or irrevocably committed on account thereof and the plans and specifications therefor are approved by the Commission to the extent by it deemed necessary; and "(B) in case of a vessel or vessels not constructed under the provisions of this title or not purchased from the Commission, (i) said construction is completed, within six months from the date of the construction contract, to the extent of not less than 5 per centum thereof (or in case the contract covers more than one vessel, the construction of the first vessel so contracted for is so completed to the extent of not less than 5 per centum) as estimated by the Commission and certified by it to the Secretary of the Treasury, and (ii) all construction under such contract is completed with reasonable dispatch thereafter; "(2) for the liquidation of existing or subsequently incurred purchase-money indebtedness to persons other than a parent company of, or a company affiliated or associated with, the mortgagor on a new vessel or vessels within (i) two years from the date of deposit or the date of any extension thereof which may be granted by the Commission pursuant to the provisions of section 511 (h), in the case of deposits made prior to the date on which these amendatory provisions become effective, or (ii) three years from the date of such deposit in the case of a deposit made after such effective date." SEO. 13. (a) Section 511 (h) of such Act is amended by striking out the proviso thereto and substituting the following: "Provided, That until March 31, 1953, in addition to the extensions hereinbefore permitted, further extensions may be granted ending not later than September 30, 1953". (b) Section 511 (i) of such Act is amended by inserting after the words "portion thereof" in the second sentence the following: "with respect to a deposit made in any taxable year ending on or before June 30, 1945". SEC. 14. Section 511 of such Act is amended by adding at the end thereof a new subsection to read as follows: "(o) The terms 'reconstruction and reconditioning, as used in this section, shall include the reconstruction, reconditioning, or moderni 62555 O-60-43 |