Page:United States Statutes at Large Volume 68 Part 1.djvu/712

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680

PUBLIC LAW 574-AUG. 10, 1954

[68 S T A T.

of the contract approved by section 1 of this Act, does not exceed the maximum construction charge obligation of the North Unit irrigation district. Approved August 10, 1954. Public Law 574 August 10, 1954 [S, 2408]

Tankers. 53 Stat. 1183. 46 USC 1160. Acquisition for national defense reserve.

Limitations.

'New vessel.

Payment.

Credit allowance. 60 Stat. 41. 50 USC app. 1735 note. 50 U S C a p p. 1742.

Depreciation.

CHAPTER 664

AN ACT To amend the Merchant Marine Act, 1936, to provide a national defense reserve of tankers and to promote the construction of new tankers, 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 510 of the Merchant Marine Act, 1936, as amended, is amended by adding at the end thereof the following new subsection: " (h) The Secretary of Commerce is authorized until July 1, 1958 (subject to the provisions of this section as herein amended), to acquire a tanker or tankers, determined by him to be desirable for inclusion in the national defense reserve, in exchange for an allowance of credit to be applied upon the purchase price of a new tanker or tankers: Provided, That each of the tankers to be traded in (1) is not less than one thousand three hundred and fifty gross tons; (2) is not less than ten years old; (3) is owned by a citizen or citizens of the United States; (4) and preference shall be given to those tankers which have been documented under the laws of the United States for not less than three years immediately preceding; and (5) is in class with respect to hull and machinery satisfactory to the Secretary of Commerce on the date of its physical delivery to the United States and shall be considered an 'obsolete vessel' for purposes of this section: And provided further, That only a tanker which is constructed after the date of enactment of this subsection and documented under the laws of the United States shall be considered a 'new vessel' for purposes of this section. "The Secretary of Commerce is authorized to pay the cost of national defense features incorporated in any such new tanker. I n the event that the United States acquires ownership of such new tanker, the price paid therefor shall not include any amount for national defense features paid for by the United States. The foregoing provisions shall run with the title to each new tanker and be binding on all owners thereof. "The allowance of credit for a traded-in tanker which was sold under the Merchant Ship Sales Act of 1946, as amended, or which was eligible for a price adjustment under section 9 of such Act, shall be: (1) in the case of tankers sold under such Act, the depreciated net sales price paid to the United States, and (2) in the case of tankers which were eligible for price adjustment under such Act, the statutory sales price of such tanker as of March 8, 1946, depreciated: plus the depreciated cost of any additions or betterments to the tanker which were capitalized by the owner and allowed for Federal income tax purposes. Such allowance shall be determined as of the date the owner contracts for the construction of a new tanker. In each case, depreciation shall be computed on the basis of the life of the tanker adopted or accepted by the Internal Revenue Service for determining depreciation for income-tax purposes to the date the owner contracts for the construction of a new tanker. "The allowance of credit for any other traded-in tanker shall be determined in accordance with the provisions of subsection (d) of this section.