Public Law 938
PUBLIC lUAW 938-AUG. 3, 1956
957 CHAPTER 904
JOINT RESOLUTION To authorize the Secretary of Commerce to sell certain war-built vessels.
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) notwithstanding the provisions of section 11 of the Merchant Ship Sales Act of 1946, as amended, and section 510(h) of the Merchant Marine Act, 1936, as amended, the Secretary of Commerce is authorized to sell within one year after the enactment of this joint resolution to the highest responsible bidder who is a citizen of the United States, within the meaning of section 2 of the Shipping Act, 1916, as amended, for employment on essential trade routes 3 and 4 to Cuba and Mexico, any two warbuilt vessels under the jurisdiction of the Secretary of Commerce, on an as is, where is, basis, provided that the Secretary of Commerce shall determine before entering into such sales that the purchaser possesses the ability, experience, financial resources, and other qualifications necessary to enable it to operate and maintain the vessels in service on that portion of essential trade routes 3 and 4 between Atlantic Coast ports of the United States and Cuba and Mexico and to maintain adequate service on such portion of such routes. The upset prices of the vessels shall be their sales prices computed under the Merchant Ship Sales Act of 1946, as of January 15, 1951, depreciated (after reduction for residual value) on a straight line basis for the period from January 15, 1951, to the date of execution of the contract of sale, on the basis of the portion of a twenty-year useful life of the vessels remaining after January 15, 1951. (b) Each such sale shall be on the basis of the payment by the purchaser of not less than 25 per centum of the vessel sales price at the time of execution of the vessel sales contract, with the balance payable in approximately equal annual installments over the remainder of the economic life of the vessel, which economic life is to be determined by the Maritime Administration, with interest on the portion of the vessel sales price remaining unpaid at the rate of 3i/^ per centum per annum. The obligation of the purchaser with respect to payment of such unpaid balance, with interest, shall be secured by a preferred mortgage on the vessels in form satisfactory to the Maritime Administrator. (c)(1) Such sales shall be made upon such conditions as the Secretary of Commerce deems necessary to protect the interests of (he United States. (2) Vessels sold under this Act shall be employed exclusively as dry cargo common carriers on that portion of essential trade routes 3 and 4 between Atlantic Coast ports of the United States and Cuba and Mexico, until the end of their useful lives, as determined under subsection (b) of this Act, or until they are replaced by new tonnage, whichever happens first. These restrictions shall run at law and in equity with the titles to the vessels and are binding upon all subsequent owners. (d) Any contract of sale executed under authority of this Act shall provide that in the event the United States shall, through purchase or requisition, acquire ownership of any such vessel, the owner shall be paid therefor the value thereof, but in no event shall such payment exceed the actual depreciated sales price under such contract (together with the actual depreciated cost of capital improvements thereon); that in computing the depreciated acquisition cost of such vessel, the depreciation shall be computed on the vessel on the schedule adopted or accepted by the Secretary of the Treasury for income tax purposes as applicable to such vessel; that such vessel shall remain documented
August 3. 1956 [s. j. Res. 177]
sai^of'tankers. 6o Stat. 49. H ^t|?. Iso. '^'*'** ^^ use iieo. \\ f^^^ l^li