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(b) When the Postmaster General is of opinion that the interests of the postal service will be served thereby, he may, in the case of a vessel of class 1 capable of maintaining a speed in excess of 24 knots at sea in ordinary weather, contract for the payment of compensation in excess of the maximum compensation authorized in subsection (a), but the compensation per nautical mile authorized by this subsection shall not be greater than an amount which bears the same ratio to $12 as the speed which such vessel is capable of maintaining at sea in ordinary weather bears to 24 knots.

(c) If the Postmaster General is of opinion that to expedite and maintain satisfactory service under a contract made under this title, airplanes or airships are required to be used in conjunction with vessels, he may allow additional compensation, in amounts to be determined by him, on account of the use of such airplanes or airships. Such airplanes or airships shall be American-built and owned, officered, and manned by citizens of the United States.

(d) The Postmaster General shall determine the number of nautical miles by the shortest practicable route between the ports involved and payments under any contract made under this title shall be made for such number of miles on each outward voyage regardless of the actual mileage traveled.

VIOLATION OF CONTRACTS

SEC. 410. In the case of failure of a vessel from any cause to perform any regular voyage required by a contract made under this title, a pro rata deduction shall be made from the contract price on account of such omitted voyage; and suitable deductions, to be determined by the Postmaster General, may be made from the compensation payable under the contract for delays, failures to properly safeguard the mails, or other irregularities in the performance of the contract. Deductions so determined upon shall be deducted by the Postmaster General from the payments otherwise due and payable under the terms of the contract. The Postmaster General may, in case of emergency, permit the substitution for a particular voyage of a vessel not within the provisions of the contract, even though not conforming to the requirements of section 405.

PASSENGERS, FREIGHT, AND EXPRESS

SEC. 411. Any vessel operating under a contract made under this title may carry passengers and their baggage, and freight and express, and may do all ordinary business done by similar vessels.

NAVAL OFFICERS

SEC. 412. Naval officers of the United States on the active list may volunteer for service on any vessel employed in mail service under a contract made under the provisions of this title, and when accepted by the owner or master thereof may be assigned to such duty by the Secretary of the Navy. While in such employment such officers shall receive from the Government half pay, exclusive of allowances, and such other compensation from the owner or master as may be agreed upon by the parties; but such officers while in such employment shall be required to perform only such duties as apper

MAIL MESSENGERS

SEC. 413. Upon each vessel employed in ocean mail service under a contract made under this title, the Postmaster General shall be entitled to have transported such mail messengers as he may require, for whom shall be provided subsistence, suitable staterooms, and working quarters, all free of charge.

AMENDMENTS AND REPEALS

SEC. 414. (a) Section 24 of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 880], is amended to read as follows:

"SEC. 24. That all mails of the United States shipped or carried on vessels shall, if practicable, be shipped or carried on Americanbuilt vessels documented under the laws of the United States. No contract hereafter made with the Postmaster General for carrying mails on vessels so built and documented shall be assigned or sublet, and no mails covered by such contract shall be carried on any vessel not so built and documented. No money shall be paid out of the Treasury of the United States on or in relation to any such contract for carrying mails on vessels so built and documented when such contract has been assigned or sublet or when mails covered by such contract are in violation of the terms thereof carried on any vessel not so built and documented. This section shall not be applicable in the case of contracts made under Title IV of the Merchant Marine Act, 1928."

(b) Section 7 of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 866], is amended by striking out so much thereof as reads as follows: The Postmaster General is authorized, notwithstanding the Act entitled 'An Act to provide for ocean mail service between the United States and foreign ports, and to promote commerce,' approved March 3, 1891, to contract for the carrying of the mails over such lines at such price as may be agreed upon by the board and the Postmaster General."

(c) The Act entitled "An Act to provide for ocean mail service between the United States and foreign ports, and to promote commerce," approved March 3, 1891 [U. S. C., Title 39, §§ 657-665], is repealed.

(d) So much of the Act entitled "An Act making appropriations for the service of the Post Office Department for the fiscal year ending June 30, 1918, and for other purposes," approved March 3, 1917, as provides for contracts for the carrying of mails between the United States and Great Britain [U. S. C., Title 39, § 666], is repealed.

(e) Subdivision (b) of section 4009 of the Revised Statutes, as amended [44 Statutes at Large, pt. 2, 900], is amended to read as follows:

"(b) The provisions of subdivision (a) of this section shall not limit the compensation for transportation of mail which the Postmaster General may pay under contracts entered into in accordance with the provisions of section 4007 of the Revised Statutes [U. S. C., Title 39, § 652], section 24 of the Merchant Marine Act, 1920 [U. S.

(f) Any contract made prior to the enactment of this Act shall remain in force and effect in the same manner and to the same extent as though this Act had not been enacted. Any such contract which expires on June 30, 1928, may be extended for a period of not more than one year from such date.

TITLE V-INSURANCE FUND

SEO. 501. Section 10 of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 869], is amended to read as follows:

"SEC. 10. That the board may create out of insurance premiums, and revenue from operations and sales, and maintain and administer separate insurance funds which it may use to insure in whole or in part against all hazards commonly covered by insurance policies in such cases, any legal or equitable interest of the United States (1) in any vessel constructed or in process of construction; and (2) in any plants or property in the possession or under the authority of the board. The United States shall be held to have such an interest in any vessel toward the construction, reconditioning, remodeling, improving, or equipping of which a loan has been made under the authority of this Act, in any vessel upon which it holds a mortgage or lien of any character, or in any vessel which is obligated by contract with the owner to perform any service in behalf of the United States, to the extent of the Government's interest therein."

TITLE VI-TRANSPORTATION OF GOVERNMENT

OFFICIALS

SEC. 601. Any officer or employee of the United States traveling on official business overseas to foreign countries, or to any of the possessions of the United States, shall travel and transport his personal effects on ships registered under the laws of the United States when such ships are available, unless the necessity of his mission requires the use of a ship under a foreign flag: Provided, That the Comptroller General of the United States shall not credit any allowance for travel or shipping expenses incurred on a foreign ship in the absence of satisfactory proof of the necessity therefor.

TITLE VII-MISCELLANEOUS

AUTHORIZATION OF APPROPRIATIONS

SEC. 701. The appropriations necessary to carry out the provisions and accomplish the purposes of this Act are hereby authorized.

REQUISITION OF VESSELS

SEC. 702. (a) The following vessels may be taken and purchased or used by the United States for national defense or during any national emergency declared by proclamation of the President:

(1) Any vessel in respect of which, under a contract hereafter entered into, a loan is made from the construction loan fund created by section 11 of the Merchant Marine Act, 1920, as amended-at any tíme until the principal and interest of the loan has been paid; and

(2) Any vessel in respect of which an ocean mail contract is made under Title IV of this Act-at any time during the period for which

the contract is made.

(b) In such event the owner shall be paid the fair actual value of the vessel at the time of taking, or paid the fair compensation for her use based upon such fair actual value; but in neither case shall such fair actual value be enhanced by the causes necessitating the taking. In the case of a vessel taken and used, but not purchased, the vessel shall be restored to the owner in a condition at least as good as when taken, less reasonable wear and tear, or the owner shall be paid an amount for reconditioning sufficient to place the vessel in such condition. The owner shall not be paid for any consequential damages arising from such taking and purchase or use.

(c) The President shall ascertain the fair compensation for such taking and purchase or use and shall certify to Congress the amount so found by him to be due, for appropriation and payment to the person entitled thereto. If the amount found by the President to be due is unsatisfactory to the person entitled thereto, such person shall be entitled to sue the United States for the amount of such fair compensation and such suit shall be brought in the manner provided by paragraph 20 of section 24 or by section 145 of the Judicial Code, as amended [U. S. C., Title 28, §§ 41, 250].

DEFINITIONS

SEC. 703. (a) When used in this Act, and for the purposes of this Act only, the words "foreign trade" mean trade between the United States, its Territories or possessions, or the District of Columbia and a foreign country: Provided, however, That the loading or the unloading of cargo, mail, or passengers at any port in any territory or possession of the United States shall be construed to be foreign trade if the stop at such territory or possession is an intermediate stop on what would otherwise be a voyage in foreign trade.

(b) When used in this Act the term "citizen of the United States" includes a corporation, partnership, or association only if it is a citizen of the United States within the meaning of section 2 of the Shipping Act, 1916, as amended [U. S. C., Title 46, § 802].

REAFFIRMATION OF POLICY

SEC. 704. The policy and the primary purpose declared in section 7 of the Merchant Marine Act, 1920 [U. S. C., Title 46, § 866], are hereby reaffirmed.

SHIP OPERATIONS

SEC. 705. In the allocations of the operations of the ships, the Shipping Board shall distribute them as far as possible and without detriment to the service among the various ports of the country.

SHORT TITLE

SEC. 706. This Act may be cited as the "Merchant Marine Act, 1928"

(EXTRACT FROM)

[PUBLIC NO. 778-70TH CONGRESS]

UNITED STATES SHIPPING BOARD

For seven commissioners at $12,000 each per annum, $84,000. For all other expenditures authorized by law, including the compensation of a secretary to the board, attorneys, officers, naval architects, special experts, examiners, and clerks, including one admiralty counsel at $10,000 per annum, one technical expert in connection with construction loan fund, at $10,000 per annum, and other employees in the District of Columbia and elsewhere; and for all other expenses of the board, including the rental of quarters outside the District of Columbia, law books, books of reference, periodicals, and traveling expenses of members of the board, its special experts, and other employees, while upon official business away from their designated posts of duty, and for the employment by contract or otherwise of expert stenographic reporters for its official reporting work and including the investigation of foreign discrimination against vessels and shippers of the United States and for the investigation of transportation of immigrants in vessels of the United States Shipping Board, $265,750, of which amount not to exceed $240,000 may be expended for personal services in the District of Columbia: Provided, That the annual estimates of the Shipping Board for the fiscal year 1931 shall be accompanied by a statement showing the number and compensation of employees of the Fleet Corporation assigned to the Shipping Board.

For all printing and binding for the United States Shipping Board, including all of its bureaus, offices, institutions, and services located in Washington, District of Columbia, and elsewhere, $10,000.

UNITED STATES SHIPPING BOARD SHIPPING FUND

For expenses of the United States Shipping Board Merchant Fleet Corporation during the fiscal year ending June 30, 1930, for administrative purposes, miscellaneous adjustments, losses due to the maintenance and operation of ships, for the repair of ships, for the purchase, exchange, maintenance, repair, and operation of motor vehicles for official purposes only; for the payment of premiums for liability, fire, theft, property damage and collision insurance and for other forms of insurance, including schedule and fidelity bonds, commonly carried by commercial corporations engaged in the same or a similar business, and for carrying out the provisions of the Merchant Marine Act, 1920, and amendments thereto, (a) the amount on hand July 1, 1929, not to exceed $50,000,000, including such sums as the Shipping Board may have reserved or committed from the fiscal year

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