PUBLIC LAWS-CH. 685-JUNE 25, 1938 44 Stat. 1440 . 33U.S. C.1933. Injuries where third persons are liable. Acceptance of com- pensation; assignment of rights to employer. Distribution of amount recovered. Amount retained by employer. Expenses. Cost of benefits fur- nished employee. 44 Stat. 1427. 33U. S. C. §907. Amounts paid or thereafter payable as compensation. Disposition of ex- cess. 44 Stat. 1440. 33U. S. C. §933. Where employer in- sured. 44 Stat. 1442. 33 U.S. C .§ 938. Failure of employer to secure compensa- tion payment; pen- alty. Liability of officers of corporation. 44 Stat. 1439. 33U.S.C. 932. Transfer, etc. , by employer of assets with intent to avoid payment. Penalty. employer or the carrier, until such report shall have been furnished as required by the provisions of subdivision (a) of this section." SEC. 12. That subdivisions (b) and (e) of section 33 of said Act be, and are hereby, amended to read as follows: "(b) Acceptance of such compensation under an award in a com- pensation order filed by the deputy commissioner shall operate as an assignment to the employer of all right of the person entitled to compensation to recover damages against such third person." "(e) Any amount recovered by such employer on account of such assignment, whether or not as the result of a compromise, shall be distributed as follows: "(1) The employer shall retain an amount equal to- (A) the expenses incurred by him in respect to such proceed- ings or compromise (including a reasonable attorney's fee as determined by the deputy commissioner); (B) the cost of all benefits actually furnished by him to the employee under section 7; (C) all amounts paid as compensation; D) the present value of all amounts thereafter payable as compensation, such present value to be computed in accordance with a schedule prepared by the Commission, and the present value of the cost of all benefits thereafter to be furnished under section 7, to be estimated by the deputy commissioner, and the amounts so computed and estimated to be retained by the employer as a trust fund to pay such compensation and the cost of such benefits as they become due, and to pay any sum finally remaining in excess thereof to the person entitled to compensation or to the representative; and "(2) The employer shall pay any excess to the person entitled to compensation or to the representative." SEC. 13. That section 33 of said Act be, and it is hereby, further amended by adding thereto the following new subdivision: "(i) Where the employer is insured and the insurance carrier has assumed the payment of the compensation, the insurance carrier shall be subrogated to all the rights of the employer under this section." SEC. 14 . That section 38 of said Act be, and it is hereby, amended to read as follows: "SEC. 38. (a) Any employer required to secure the payment of com- pensation under this Act who fails to secure such compensation shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $1,000, or by imprisonment for not more than one year, or by both such fine and imprisonment; and in any case where such employer is a corporation, the president, sec- retary, and treasurer thereof shall be also severally liable to such fine or imprisonment as herein provided for the failure of such corpora- tion to secure the payment of compensation; and such president, sec- retary, and treasurer shall be severally personally liable, jointly with such corporation, for any compensation or other benefit which may accrue under the said Act in respect to any injury which may occur to any employee of such corporation while it shall so fail to secure the payment of compensation as required by section 32 of this Act. "(b) Any employer who knowingly transfers, sells, encumbers, assigns, or in any manner disposes of, conceals, secretes, or destroys any property belonging to such employer, after one of his employees has been injured within the purview of this Act, and with intent to avoid the payment of compensation under this Act to such employee or his dependents, shall be guilty of a misdemeanor and, upon con- viction thereof, shall be punished by a fine of not more than $1,000, or by imprisonment for not more than one year, or by both such fine 1168 [52 STAT.
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