73d CONGRESS. SESS. II. CH. 95. MARCH 27, 1934 .
505 SEC . 3 . The Secretary of the Navy is hereby directed to submit mMo ms tc ti on annuall y to t he Bur eau of the B udget estimat es for the c onstru ction appropriation author- of the foregoing vessels and aircraft ; and there is hereby authorized ized . to be appropriated such sums as may be necessary to carry into effect the provisions of this Act : Pr ovide d, That no contract shall be ro ntr act iiso . agreement . made by the Secretary of the Navy for the construction and/or manufacture of any complete naval vessel or aircraft, or any portion there of, he rein, hereto fore, or here after author ized u nless the contractor agrees- (a) To make a report, as hereinafter described, under oath, to sworn
. to make the Secretary of the Navy upon the completion of the contract . (b) To pay into the Treasury profit, as hereinafter provided shall To limit m ost . be determined by the Treasury Department, in excess of 10 per centum of the total contract price, such amount to become the prop- erty of the United States : Provided, That if such amount is not Pro viso. Collection if not vol- volunta rily p aid th e Secr etary of the Treasu ry may colle ct the same untarily paid. under the usual met hods emplo yed under the inter nal reven ue la ws to coll ect Fe deral income taxes . (c) To make no subdivisions of any contract or subcontract for traetasion, bib c on the same article or articles for the purpose of evading the provisions of this Act, but any subdivision of any contract or subcontract involving an amount in excess of $10,000 shall be subject to the conditions herein prescribed . (d) That the manufacturing spaces and books of its own plant, tritopes ti ok9et c f affiliate s, and su bdivision s shall a t all tim es be sub ject to i nspection and audit by any person designated by the Secretary of the Navy, the Secretary of the Treasury, and/or by a duly authorized committee of Congress . (e) To make no subcontract unless the subcontractor agrees to subcontractor to as- e the foregoing conditions .
sent to conditions . Items to be covered The report shall be in form prescribed by the Secretary of the i n report . Navy and shall state the total contract price, the cost of performing the contract, the net income, and the per centum such net income bears to the contract price . A copy of such report shall be trans- TC opyt Secret ary of mitted to the Secre tary o f the Treasu ry for consid eratio n in c onnec- tion with the Federal income tax returns of the contractor for the taxable year or years concerned . The method of ascertaining the amount of excess profit to be paid ses s Determination of ex- profit. the Treasury shall be determined by the Secretary of the . Method of ascertain- Treasury in agreement with the Secretary of the Navy and made mg. available to the public . The method initially fixed upon shall be so determined on or before dune 30, 1934 : Provided, That in an case F ot' l8° Credi t for exc ess, to where an excess profit may be found to be owing to the United States be made . in con seque nce hereo f, th e Se creta ry of the Trea sury shall all ow credit for any Federal income taxes paid or remaining to be paid upon the amount of such excess profit . The contract or subcontracts referred to herein are limited to goi ng ppro~ionsof fore- those where the award exceeds $10,000 . SEC . 4. That in the event of international agreement for the fur- Suspension, etc., of construction by inter- ther limit ation s of nava l arm amen t to which the Unit ed St ates is national agreement . signat ory, t he Pre sident is he reby a uthoriz ed and empow ered t o sus- pend so much of its naval construction as has been authorized as may be necessary to bring the naval armament of the United States within the limitation so agreed upon, except that such suspension shall not apply to vessels actually under construction on the date of the passage of this Act . Approved, March 27, 1934 .
