Public Law 87-266 An Act 75 STAT. 565. To amend the Merchant Marine Act, 1936, as amended, to encourage the construction and maintenance of American-flag vessels built in American shipyards. American-flag Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 901 (b) Merchant Marine 1 of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1241), is Act, 1936, hereby amended by inserting at the end thereof the following: "For amendment. purposes of this section, the term 'privately owned United States- vessels. flag commercial vessels' shall not be deemed to include any vessel 68 Stat. 832. which, subsequent to the date of enactment of this amendment, shall have been either (a) built outside the United States, (b) rebuilt outside the United States, or (c) documented under any foreign registry, until such vessel shall have been documented under the laws of the United States for a period of three years: Provided, however, That the provisions of this amendment shall not apply where, (1) prior to the enactment of this amendment, the owner of a vessel, or contractor for the purchase of a vessel, originally constructed in the United States and rebuilt abroad or contracted to be rebuilt abroad, has notified the Maritime Administration in writing of its intent to document such vessel under United States registry, and such vessel is so documented on its first arrival at a United States port not later than one year subsequent to the date of the enactment of this amendment, or (2) where prior to the enactment of this amendment, the owner of a vessel under United States registry has made a contract for the rebuilding abroad of such vessel and has notified the Maritime Administration of such contract, and such rebuilding is completed and such vessel is thereafter documented under United States registry on its first arrival at a United States port not later than one year subsequent to the date of the enactment of this amendment.” Approved September 21, 1961. 87th Congress, H. R. 6974 An Act To amend section 607(b) of the Merchant Marine Act, 1936, as amended. for research. 66 Stat. 764. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the last Merchant Marine sentence of section 607 (b) of the Merchant Marine Act, 1936 (46 Act, 1936, U.S.C. 1177 (b)) is amended by inserting before the period at the end amendment. thereof a comma and the following: "and may also pay from such Reserve funds fund, with such consent and upon terms and conditions which the Secretary of Commerce shall by regulation prescribe to give priority to the foregoing purposes of the fund (and with respect to any transfer of funds from the special reserve fund, to give priority to 75 STAT. 570. the purposes of that fund) and to carry out the purposes of this Act, 75 STAT. 571. (A) amounts contribu,ed toward research, development, and design expenses incident to new and advanced ship desig machinery and equipment", and "(B) Amounts (1) for the purchase of cargo containers, delivered after June 30, 1959, of a type approved by the Administrator for use in connection with any of the contractor's subsidized vessels, (2) for the payment of the principal of any indebtedness incurred for such containers, or (3) to reimburse the contractor's general funds for expenditures for such purchases or payments. Such cargo containers to the extent paid for out of the capital reserve fund shall be treated as vessels for the purpose of deposits and withdrawals from the capital reserve fund under this section 607, and the regulations and closing agreements relating thereto, except that the depreciation on such cargo containers shall be based upon the life expectancy used for such containers in the determination of 'net earnings' under paragraph (d) (1) of this section 607." Approved September 21, 1961. 49 Stat. 2005: 72 Stat. 592. 87th Congress, H. R. 2308 An Act 75 STAT. 661. To amend the Ship Mortgage Act, 1920, with respect to its applicability to certain vessels. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) paragraph Ship Mortgage (a) of subsection (D) of the Ship Mortgage Act, 1920 (46 U.S.C. Act, 1920, 922), is amended by striking out "of less than two hundred gross amendment. tons" and inserting in lieu thereof "of less than twenty-five gross 49 Stat. 424. tons". (b) The amendment made by subsection (a) of this section shall Applicability. not apply to (1) any mortgage in existence on the date of enactment of this Act, or (2) any mortgage placed on a vessel after the date of enactment of this Act under a mortgage on such vessel in existence on the date of enactment of this Act, so long as such existing mortgage remains undischarged. SEC. 2. Paragraph (a) of section 1101 of title XI of the Merchant 68 Stat. 1267. Marine Act, 1936 (46 U.S.C. 1271), is amended to read as follows: "(a) The term 'mortgage' includes a preferred mortgage as de-"Mortgage." fined in the Ship Mortgage Act, 1920, as amended, on any vessel of the 41 Stat. 1000. United States (other than a towboat, barge, scow, lighter, car float, 46 USC 984. canal boat, or tank vessel, of less than two hundred gross tons), and a mortgage on such a vessel which will become a preferred mortgage when recorded and endorsed as required by the Ship Mortgage Act, 1920, as amended;". SEC. 3. The proviso at the end of section 511 (h) of the Merchant Marine Act, 1936, as amended, is amended to read as follows: "Pro- 73 Stat. 471. vided, That until January 1, 1962, in addition to the extensions here- 46 USC 1161. inbefore permitted, further extensions may be granted ending not later than December 31, 1962". SEC. 4. The amendment made by the first section of this Act shall Effective date. take effect December 31, 1961, or on the date of enactment of this Act, whichever date first occurs. Approved September 26, 1961. 87th Congress, H. R. 6775 An Act To amend the Shipping Act, 1916, as amended, to authorize ocean common carriers and conferences thereof serving the foreign commerce of the United States to enter into effective and fair dual rate contracts with shippers and consignees, and for other purposes. 75 STAT. 762. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Shipping Shipping Act, 1915, Act, 1916, is amended by adding after section 14a a new section to read amendments. as follows: 40 Stat. 903. 46 USC 842. "SEC. 14b. Notwithstanding any other provisions of this Act, on ap-Foreign commerce. plication the Federal Maritime Commission (hereinafter 'Commis- Common carriers, sion'), shall, after notice, and hearing, by order, permit the use by dual rate conany common carrier or conference of such carriers in foreign com- tracts. merce of any contract, amendment, or modification thereof, which is available to all shippers and consignees on equal terms and conditions, which provides lower rates to a shipper or consignee who agrees to give all or any fixed portion of his patronage to such carrier or conference of carriers unless the Commission finds that the contract, amendment, or modification thereof will be detrimental to the commerce of the United States or contrary to the public interest, or unjustly discriminatory or unfair as between shippers, exporters, importers, or ports, or between exporters from the United States and their foreign competitors, and provided the contract, amendment, or modification thereof, expressly (1) permits prompt release of the contract shipper from the contract with respect to any shipment or shipments for which the contracting carrier or conference of carriers cannot provide as much space as the contract shipper shall require on reasonable notice; (2) provides that whenever a tariff rate for the carriage of goods under the contract becomes effective, insofar as it is under the control of the carrier or conference of carriers, it shall not be increased before a reasonable period, but in no case less than ninety days; (3) covers only those goods of the contract shipper as to the shipment of which he has the legal right at the time of shipment to select the carrier: Provided, however, That it shall be deemed a breach of the contract if, before the time of shipment and with the intent to avoid his obligation under the contract, the contract shipper divests himself, or with the same intent permits himself to be divested, of the legal right to select the carrier and the shipment is carried by a carrier which is not a party to the contract; (4) does not require the contract shipper to divert shipment of goods from natural routings not served by the carrier or conference of carriers where direct carriage is available; (5) limits damages recoverable for breach by either party to actual damages to be determined after breach in accordance with the principles of contract law: Provided, however, That the contract may specify that in the case of a breach by a contract shipper the damages may be an amount not exceeding the freight charges computed at the contract rate on the particular shipment, less the cost of handling; (6) permits the contract shipper to terminate at any time without penalty upon ninety days' notice: (7) provides for a spread between ordinary rates and rates charged contract shippers which the Commission finds to be reasonable in all the circumstances but which spread shall in no event be more than 15 per centum of the ordinary rates; (8) excludes cargo of the contract shippers which is loaded and carried in bulk without mark or count except liquid bulk cargoes, other than chemicals, in less than full shipload lots: Provided, however, That upon finding that economic factors so warrant, the Comsion may exclude from the contract any commodity subject to the 75 STAT. 763. Notice and hearing. 39 Stat. 733. 46 USC 814. Filing of agreements, etc. Discriminatory agreements, disapproval. foregoing exception; and (9) contains such other provisions not inconsistent herewith as the Commission shall require or permit. The Commission shall withdraw permission which it has granted under the authority contained in this section for the use of any contract if it finds, after notice and hearing, that the use of such contract is detrimental to the commerce of the United States or contrary to the public interest, or is unjustly discriminatory or unfair as between shippers, exporters, importers, or ports, or between exporters from the United States and their foreign competitors. The carrier or conference of carriers may on ninety days' notice terminate without penalty the contract rate system herein authorized, in whole or with respect to any commodity: Provided, however, That after such termination the carrier or conference of carriers may not reinstitute such contract rate system or part thereof so terminated without prior permission by the Commission in accordance with the provisions of this section. Any contract, amendment, or modification of any contract not permitted by the Commission shall be unlawful, and contracts, amendments, and modifications shall be lawful only when and as long as permitted by the Commission; before permission is granted or after permission is withdrawn it shall be unlawful to carry out in whole or in part, directly or indirectly, any such contract, amendment, or modification. As used in this section, the term 'contract shipper' means a person other than a carrier or conference of carriers who is a party to a contract the use of which may be permitted under this section." SEC. 2. Section 15, Shipping Act, 1916, is amended to read as follows: "SEC. 15. That every common carrier by water, or other person subject to this Act, shall file immediately with the Commission a true copy, or, if oral, a true and complete memorandum, of every agreement with another such carrier or other person subject to this Act, or modification or cancellation thereof, to which it may be a party or conform in whole or in part, fixing or regulating transportation rates or fares; giving or receiving special rates, accommodations, or other special privileges or advantages; controlling, regulating, preventing, or destroying competition; pooling or apportioning earnings, losses, or traffic; allotting ports or restricting or otherwise regulating the number and character of sailings between ports; limiting or regulating in any way the volume or character of freight or passenger traffic to be carried; or in any manner providing for an exclusive, preferential, or cooperative working arrangement. The term 'agreement' in this section includes understandings, conferences, and other arrangements. "The Commission shall by order, after notice and hearing, disapprove, cancel or modify any agreement, or any modification or cancellation thereof, whether or not previously approved by it, that it finds to be unjustly discriminatory or unfair as between carriers, shippers, exporters, importers, or ports, or between exporters from the United States and their foreign competitors, or to operate to the detriment of the commerce of the United States, or to be contrary to the public interest, or to be in violation of this Act, and shall approve all other agreements, modifications, or cancellations. No such agreement shall be approved, nor shall continued approval be permitted for any agreement (1) between carriers not members of the same conference or conferences of carriers serving different trades that would otherwise be naturally competitive, unless in the case of agreements between carriers, each carrier, or in the case of agreements between conferences, each conference, retains the right of independent action, or (2) in respect to any conference agreement, which fails to provide reasonable |