United States Code

the entire capital reserve fund or special reserve fund. If, however, less than 50 per centum of the value of such capital or special reserve fund, as of the date of such payment or withdrawal, is invested in common stocks, the Secretary of Commerce is authorized, upon application by the contractor, to approve the allocation of the payment or withdrawal entirely to the portion of such capital or special reserve fund not invested in common stocks, or to approve the allocation of such payment or withdrawal between the common stock trust and the remainder of such capital or special reserve fund in any proportion, so long as the value of the common stock trust immediately after such withdrawal does not exceed 50 per centum of the value of such capital or special reserve fund, and if the contractor makes no such application or if the allocation requested in such application is not approved by the Secretary of Commerce, then such payment or withdrawal shall be allocated in the manner above provided for when the value of the common stock trust is 50 per centum or more of the value of the entire capital reserve fund or special reserve fund.

(D) Trust indentures executed under the authority of this subdivision may contain such other terms and conditions not inconsistent with this subdivision, as the Secretary of Commerce determines are desirable to protect the interests of the United States. The authority of the Secretary of Commerce to grant approvals, give directions, make determinations, and make regulations under this subdivision, and to act as trustee of the capital reserve fund and special reserve fund under this section may be delegated to the Maritime Administrator.

(e) Withdrawals from capital reserve fund to meet need due to operating losses.

If, during any accounting year, the contractor's general funds have become seriously depleted due to operating losses on the subsidized vessels and the special reserve fund has been exhausted, the Secretary of Commerce may, in his discretion, permit the contractor temporarily to withdraw from his capital reserve fund such excess therein on deposit over and above the amount necessary to pay the principal amount currently due or about to become due on the contractor's mortgage obligation on the subsidized vessels: Provided, however, That the sum so withdrawn shall be repaid to the capital reserve fund as soon as the contractor's financial condition shall permit.

(f) Title of reserve funds on termination of contract. Unless otherwise provided in the operating-differential subsidy contract, upon the termination of any such contract, the reserve funds required under this chapter shall be the property of the contractor, except for such amounts as may be due the United States.

(g) Increase and transfer of reserve funds; interest on overpayment of taxes.

With the approval of the Secretary of Commerce, the contractor may voluntarily increase the amount of either or both reserve funds by depositing in such fund or funds any or all of the earnings otherwise available for distribution to stockholders, or may

transfer funds from the special reserve funds to the capital reserve fund. If a voluntary deposit of earnings approved by the Secretary under this subsection after December 31, 1950, results in an overpayment of Federal taxes for any year, interest shall not be allowed on such overpayment for any period prior to the date of approval of the deposit by the Secretary.

(h) Exemption of reserve funds from taxation.

The earnings of any contractor receiving an operating-differential subsidy under authority of this chapter, which are deposited in the contractor's reserve funds as provided in this section, except earnings withdrawn from the special reserve funds and paid into the contractor's general funds or distributed as dividends or bonuses as provided in paragraph 4 of subsection (c) of this section, shall be exempt from all Federal taxes. Earnings withdrawn from such special reserve fund shall be taxable as if earned during the year of withdrawal from such fund. (June 29, 1936, ch. 858, §§ 607, 905(e), 49 Stat. 2005; June 23, 1938, ch. 600, §§ 23-28, 52 Stat. 960, 961; Aug. 4, 1939, ch. 417, § 10, 53 Stat. 1185; 1950 Reorg. Plan No. 21, §§ 105(1), 204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1274-1277; July 17, 1952, ch. 939, §§ 17-19, 21, 66 Stat. 764, 765; Aug. 14, 1958, Pub. L. 85-637, 72 Stat. 592; June 12, 1960, Pub. L. 86-518, § 1, 74 Stat. 216; May 27, 1961, Pub. L. 87-45, § 6, 75 Stat. 91; Sept. 21, 1961, Pub. L. 87-271, 75 Stat. 570.)

AMENDMENTS

1961-Subsec. (b). Pub. L. 87-271 authorized the contractor, upon consent of the Secretary of Commerce, to pay amounts from the capital reserve fund for research, development, and design expenses for new and advanced ship design machinery and equipment, purchase of cargo containers delivered after June 30, 1959, payment of principal on indebtedness incurred for containers, and for reimbursing the contractor's general funds for expenditures for such purchases or payments, and required such cargo containers, to the extent paid for out of the capital reserve fund, to be treated as vessels for purpose of deposits and withdrawals from the fund, except that depreciation thereon shall be based on life expectancy used for such containers in determination of "net earnings" in subsec. (d)(1) of this section.

Pub. L. 87-45 inserted words "and on cruises, if any, authorized under section 1183 of this title" following "route or service approved by the Secretary" in the second paragraph.

1960 Subsec. (b). Pub. L. 86-518 substituted "twenty-five-year life expectancy" for "twenty-year life expectancy."

1958 Subsec. (d). Pub. L. 85-637 designated the first and second paragraphs as subdivisions (1) and (2), and added subdivision (3).

1952-Subsec. (b). Act July 17, 1952, § 17, permitted the recomputation of the life-expectancy of a reconstructed or reconditioned vessel in use under an operating-differential subsidy contract, and provided for recomputation of depreciation changes.

Subsec. (d). Act July 17, 1952, § 18, substituted "as provided for in section 1177(b) of this title" following "life of the vessel" for "being twenty years".

Subsec. (g). Act July 17, 1952, § 19, barred payment of interest by Government on overpayment of taxes resulting from voluntary deposits of earnings.

1939 Subsec. (c) (3). Act Aug. 4, 1939, permitted payment from the capital reserve fund, and authorized payment from other assets of the contractor if assets have not been repaid to the reserve funds, or if prepayments of amounts not due before one year after the date of termination of the contract have been made from the capital reserve funds.

1938-Subsec. (b). Act June 23, 1938, §§ 23, 24, substituted "insurance and indemnities" for "insurance indemnities" in the first paragraph, and inserted provisions requiring deposit of proceeds of any sale or other disposition of a vessel in the capital reserve funds, and to permit the contractor to pay from the fund any sums owing but not yet due on notes secured by mortgages on subsidized vessels.

Subsec. (c) Act June 23, 1938, § 25, substituted "If the profits, without regard to capital gains and capital losses, earned by the business of the subsidized vessels and services incident thereto exceed 10 per centum per annum and exceed the percentage of profits deposited in the capital reserve fund, as provided in subsection (b) of this section, the contractor shall deposit annually such excess profits in this reserve fund" for "In this reserve fund, the contractor shall deposit annually the profits earned by the business of the subsidized vessels and services incident thereto in excess of 10 per centum per annum and in excess of the percentage of profits deposited in the capital reserve fund, as provided in subsection (b) of this section", in the second paragraph.

Subsec. (c) (2). Act June 23, 1938, § 26, substituted "will be made up" for "will not be made up".

Subsecs. (f) and (g). Act June 23, 1938, § 27, added subsecs. (b) and (g) and also redesignated former subsec. (f) as (h).

Subsec. (h). Act June 23, 1938, § 28, redesignated former subsec. (b) as subsec. (h) and made earnings withdrawn from the special reserve fund taxable as if earned during the year of withdrawal from the fund.

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment of this section by Pub. L. 86-518 applicable only to vessels delivered by the shipbuilder on or after Jan. 1, 1946, and with respect to such vessels shall become effective on Jan. 1, 1960, and with respect to vessels delivered by the shipbuilder before Jan. 1, 1946, the provisions of this chapter existing immediately before June 12, 1960, shall continue in effect, see section 8(a) of Pub. L. 86-518, set out as a note under section 1125 of this title.

ABOLITION OF FEDERAL MARITIME BOARD

Section 304 of 1961 Reorg. Plan No. 7, effective Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840, set out as a note under section 1111 of this title, abolished the Federal Maritime Board, including the offices of the members of the Board. Functions of the Board were transferred either to the Federal Maritime Commission or to the Secretary of Commerce by sections 103 and 202 of 1961 Reorg. Plan No. 7.

TRANSFER OF FUNCTIONS

"Secretary of Commerce", "Secretary", "Federal Maritime Board or Secretary of Commerce" and "Board or Secretary" were substituted for "Commission" (which had reference to United States Maritime Commission) on authority of 1950 Reorg. Plan No. 21, set out as a note under section 1111 of this title and act July 17, 1952, § 21, set out as section 1244 (e) of this title.

All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069. See note set out under section 1111 of this title.

RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR AFTER JAN. 1, 1946, AND BEFORE JAN. 1, 1960

For provisions relating to computation of depreciation with respect to vessels delivered by the shipbuilder on or after Jan. 1, 1946, and before Jan. 1, 1960, see section 8(b) of Pub. L. 86-518, set out as a note under section 1125 of this title.

REVISION OF CONTRACTS, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES, AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12, 1960

For provisions authorizing revision, see section 8(c) of Pub. L. 86-518, set out as a note under section 1125 of this title.

COMMERCIAL EXPECTANCY OR PERIOD OF DEPRECIATION OF TANKERS AND OTHER LIQUID BULK CARRIERS Nothing in any amendment made by Pub. L. 86-518 to operate or be interpreted to change from 20 to 25 years the provisions of this chapter relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier, see section 9 of Pub. L. 86-518, set out as a note under section 1125 of this title.

§ 1177a. Deposits in special reserve fund; excusal; tax treatment.

On and after June 13, 1957, to the extent that the operating-differential subsidy accrual (computed on the basis of parity) is represented on the operator's books by a contingent accounts receivable item against the United States as a partial or complete offset to the recapture accrual, the operator (1) shall be excused from making deposits in the special reserve fund, and (2) as to the amount of such earnings the deposit of which is so excused shall be entitled to the same tax treatment as though it had been deposited in said special reserve fund. To the extent that any amount paid to the operator by the United States reduces the balance in the operator's contingent receivable account against the United States, such amount shall forthwith be deposited in the special reserve fund of the operator. (Pub. L. 85-52, title I, § 101, June 13, 1957, 71 Stat. 73.)

CODIFICATION

Section was enacted as a part of the Department of Commerce and Related Agencies Appropriation Act, 1958, and not as a part of the Merchant Marine Act of 1936 which comprises this chapter.

§ 1178. Sale or assignment of contract; consent of Board; purchaser subject to terms of contract; rescinding contract on transfer without consent. No contract executed under this subchapter or any interest therein shall be sold, assigned, or transferred, either directly or indirectly, or through any reorganization, merger, or consolidation, nor shall any agreement or arrangement be made by the holder whereby the maintenance, management, or operation of the service, route, line, vessel, or vessels is to be performed by any other person, without the written consent of the Federal Maritime Board. If it consents to such agreement or arrangement, the agreement or arrangement shall make provision whereby the person undertaking such maintenance, management, or operation agrees to be bound by all of the provisions of the contract and of this chapter applicable thereto, and the rules and regulations prescribed pursuant to this chapter. If the holder of any such contract shall voluntarily sell such contract or any interest therein, or make such assignment, transfer, agreement, or arrangement whereby the maintenance, management, or operation of the service, route, line, vessel, or vessels is to be performed by any other person, without the consent of the Board, or if the operation of the service, route, line, or vessel, shall pass out of the direct control of the holder of such contract by reason of any voluntary or involuntary receivership or bankruptcy proceedings, the Board shall have the right to modify or rescind such contract, without further liability thereon by the United States, and is vested with exclusive jurisdiction to determine the purposes for which any payments made by it under such contract shall be expended. (June 29, 1936, ch. 858,

§§ 608, 905(e), 49 Stat. 2007; 1950 Reorg. Plan No. 21, §§ 105(1), 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1274, 1275, 1277; July 17, 1952, ch. 939, § 21. 66 Stat. 765.)

ABOLITION OF FEDERAL MARITIME BOARD Section 304 of 1961 Reorg. Plan No. 7, effective Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840, set out as a note under section 1111 of this title, abolished the Federal Maritime Board, including the offices of the members of the Board. Functions of the Board were transferred either to the Federal Maritime Commission or to the Secretary of Commerce by sections 103 and 202 of 1961 Reorg. Plan No. 7.

TRANSFER OF FUNCTIONS

"Federal Maritime Board" and "Board" were substituted for "Commission" (which had reference to the United States Maritime Commission) on authority of 1950 Reorg. Plan No. 21, set out as a note under section 1111 of this title, and act July 17, 1952, set out as section 1244 (e) of this title.

§ 1179. Withholding payment to defaulting contractor. The Secretary of Commerce shall withhold the payment of operating-differential subsidy while any contractor therefor is in default in any payments due on account of construction-loan, ship-sales mortgage notes, or any other obligation due the United States, and shall apply the amount so withheld to the satisfaction of such debt. (June 29, 1936, ch. 858, §§ 609, 905 (e), 49 Stat. 2007; June 23, 1938, ch. 600, § 29, 52 Stat. 961; 1950 Reorg. Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277; July 17, 1952, ch. 939, § 21, 66 Stat. 765.)

AMENDMENTS

1938-Act June 23, 1938, repealed former subsec. (b), which related to cancellation or modification of a contract where a contractor filed bankruptcy or was in default of payments.

TRANSFER OF FUNCTIONS

"Secretary of Commerce" was substituted for "Commission" (which had reference to United States Maritime Commission) on authority of 1950 Reorg. Plan No. 21, set out as a note under section 1111 of this title, and act July 17, 1952, set out as section 1244 (e) of this title. All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 20, 1949, 14 F.R. 5228, 63 Stat. 1069. See note set out under section 1111 of this title.

§ 1180. Vessels eligible to subsidy.

An operating-differential subsidy shall not be paid under authority of this subchapter on account of the operation of any vessel which does not meet the following requirements: (1) The vessel shall be of steel or other acceptable metal, shall be propelled by steam or motor, shall be as nearly fireproof as practicable, shall be built in a domestic yard or shall have been documented under the laws of the United States not later than February 1, 1928, or actually ordered and under construction for the account of citizens of the United States prior to such date, and shall be documented under the laws of the United States, during the entire life of the subsidy contract; and (2) if the vessel shall be constructed after June 29, 1936 it shall be either a vessel constructed according to plans and specifications approved by the Federal

Maritime Board and the Secretary of the Navy, with particular reference to economical conversion into an auxiliary naval vessel, or a vessel approved by the Board and the Navy Department as otherwise useful to the United States in time of national emergency. (June 29, 1936, ch. 858, §§ 610, 905(e), 49 Stat. 2007; 1950 Reorg. Plan No. 21, §§ 105 (1), 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1274, 1275, 1277; July 17, 1952, ch. 939, § 21, 66 Stat. 765.)

TRANSFER OF FUNCTIONS

§ 1181. Transfer of vessels to foreign registry on default of United States.

(a) The contractor, upon compliance with the provisions of this section, may transfer to foreign registry the vessels covered by any operating-differential subsidy contract held by him, in the event that the United States defaults upon such contract or cancels it without just cause. Any contractor desiring to transfer any such vessel to foreign registry upon such default or cancelation shall file an application in writing with the Secretary of Commerce setting forth its contentions with respect to the lack of just cause or lawful grounds for such default or cancelation. The Secretary shall afford the contractor an opportunity for a hearing within twenty days after such contractor files written application therefor, and after the testimony, if any, in such hearing has been reduced to writing and filled with the Secretary, he shall, within a reasonable time, grant or deny the application by order.

(b) If any such application is denied, the contractor may obtain a review of the order of denial in the United States Court of Appeals for the District of Columbia, by filing in such court, within twenty days after the entry of such order, a written petition praying that the order of the Secretary be set aside. A copy of such petition shall be forthwith transmitted by the clerk to the Secretary of Commerce or any officer designated by the Secretary for that purpose, and thereupon the Secretary shall file in the court the record upon which the order complained of was entered, as provided in section 2112 of Title 28. Upon the filing of such petition such court shall have exclusive jurisdiction to determine whether such cancelation or default was without just cause, and to affirm or set aside such order. The judgment and decree of the court affirming or setting aside any such order of the Secretary shall be final.

(c) No transfer of vessels to foreign registry under this section shall become effective until any indebtedness to the Government or to any citizen of the United States, secured by such vessels, has been paid or discharged, and until after the expiration of ninety days from the date of final determination of the application or the appeal, if any. Within such ninety-day period the Secretary of Commerce may (1) with the consent of the contractor purchase the vessels at cost to the contractor plus cost of capital improvements thereon, less 4 per centum annual depreciation upon such vessel, and the actual depreciated costs of capital improvements thereon, or (2) reinstate the contract and adjust or settle the default found by the Secretary or the court to exist. (June 29, 1936, ch. 858, §§ 611, 905 (e), as added June 23, 1938, ch. 600, § 30, 52 Stat. 961, and amended 1950 Reorg. Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277; July 17, 1952, ch. 939, § 21, 66 Stat. 765; Aug. 28, 1958, Pub. L. 85-791, § 17, 72 Stat. 947; June 12, 1960, Pub. L. 86-518, § 4, 74 Stat. 216.)

AMENDMENTS

1960 Subsec. (c). Pub. L. 86-518 substituted "4 per centum" for "5 per centum."

1958 Subsec. (b). Pub. L. 85-791, in second sentence, substituted "transmitted by the clerk of the court to" for "served upon", eliminated "upon” preceding "any officer", substituted "file in the court" for "certify and file in the court a transcript of", and inserted "as provided in section 2112 of Title 28", and which, in third sentence, substituted "petition" for "transcript".

EFFECTIVE DATE OF 1960 AMENDMENT Amendment of this section by Pub. L. 86-518 applicable only to vessels delivered by the shipbuilder on or after Jan. 1, 1946, and with respect to such vessels shall become effective on Jan. 1, 1960, and with respect to vessels delivered by the shipbuilder before Jan. 1, 1946, the provisions of this chapter existing immediately before June 12, 1960, shall continue in effect, see section 8(a) of Pub. L. 86-518, set out as a note under section 1125 of this title.

TRANSFER OF FUNCTIONS

"Secretary of Commerce" and "Secretary" were substituted for "Commission" (which had reference to United States Maritime Commission) on authority of 1950 Reorg. Plan No. 21, set out as a note under section 1111 of this title, and act July 17, 1952, set out as section 1244(e) of this title.

All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 20, 1949, 14 F. R. 5228, 63 Stat. 1069. See note set out under section 1111 of this title.

RATE OF DEPRECIATION FOR VESSELS DELIVERED BY SHIPBUILDER ON OR AFTER JAN. 1, 1946, AND BEFORE JAN. 1, 1960

REVISION OF Contracts, COMMITMENTS TO INSURE MORTGAGES, MORTGAGES, AND MORTGAGE INSURANCE CONTRACTS ENTERED INTO PRIOR TO JUNE 12, 1960

For provisions authorizing revision, see section 8(c) of Pub. L. 86-518, set out as a note under section 1125 of this title.

§ 1182. Subordination of Secretary's interest to Reconstruction Finance Corporation.

The Secretary of Commerce is authorized to subordinate his interest as mortgagee in any vessel subsidized under the provisions of this subchapter in favor of any loan for working capital made by the Reconstruction Finance Corporation under the Reconstruction Finance Corporation Act, as amended, if the Secretary finds that the making of such loan by the Reconstruction Finance Corporation would be in furtherance of the policies of this chapter or would, in its opinion, preserve or protect his mortgage interest in said subsidized vessel: Provided, That the obligations evidencing such loans by the Reconstruction Finance Corporation shall not be transferred, except to some other governmental agency. (June 29, 1936, ch. 858, §§ 612, 905 (e), as added June 23, 1938, ch. 600, § 30, 52 Stat. 961, and amended 1950 Reorg. Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277; July 17, 1952, ch. 939, § 21, 66 Stat. 765.)

REFERENCES IN TEXT

For distribution of the Reconstruction Finance Corporation Act, see section 601 of Title 15, Commerce and Trade.

TRANSFER OF FUNCTIONS

"Secretary of Commerce", "Secretary" and "Secretary's" were substituted for "Commission" and "Commission's" (which had reference to United States Maritime Commission) on authority of 1950 Reorg. Plan No. 21, set out as a note under section 1111 of this title, and act July 17, 1952, set out as section 1244 (e) of this title.

All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 20, 1949, 14 F. R. 5228, 63 Stat. 1069. See note set out under section 1111 of this title.

ABOLITION OF RECONSTRUCTION FINANCE CORPORATION Section 6(a) of 1957 Reorg. Plan No. 1, eff. June 30, 1957, 22 F.R. 4633, 71 Stat. 647, set out as a note under section 601 of Title 15, Commerce and Trade, abolished the Reconstruction Finance Corporation.

§ 1183. Off-season cruises by passenger vessels. (a) Definition.

In this section, "passenger vessel" means a vessel which (1) is of not less than ten thousand gross tons, and (2) has accommodations for not less than one hundred passengers.

(b) Authorization for payment of subsidy.

If the Board finds that the operation of passenger vessels with respect to which an application for operating-differential subsidy has been filed under section 1171 of this title is required for at least twothirds of each year, but not for all of each year, in order to furnish adequate service on the service, route, or line with respect to which the application

was filed, the Board may approve the application for payment of operating-differential subsidy for operation of the vessels (1) on such service, route, or line for such part of each year, and (2) on cruises for all or part of the remainder of each year if such specific cruise is approved by the Board under subsection (e) of this section.

Cruises authorized by this section must begin and end at a domestic port or ports on the same seacoast of the United States from which the operator operates or conducts the regular service to which the vessels are assigned. When a vessel is being operated on cruises

(1) it shall carry no mail unless required by law, or cargo except passengers' luggage, except between those ports between which it may carry mail and cargo on its regular service assigned by contract;

(2) it shall carry passengers on a round-trip basis, except between those ports between which it may carry one-way passengers on its regular service assigned by contract;

(3) it shall embark passengers only at domestic ports on the same seacoast of the United States as that to which the vessel is assigned on its regular service; and

(4) it shall stop at other domestic ports only for the same time and the same purposes as is permitted with respect to a foreign-flag vessel which is carrying passengers who embarked at a domestic port.

Section 1175 (c) of this title shall not apply to cruises authorized under this section.

(d) Review of subsidy contracts.

The Board may from time to time review operating differential subsidy contracts entered into under this subchapter for the operation of passenger vessels, and upon a finding that operation of such vessels upon a service, route, or line is required in order to furnish adequate service on such service, route, or line, but is not required for the entire year, may amend such contracts to agree to pay operating differential subsidy for operation of such vessels on cruises, as authorized by this section, for part or all of the remainder, but not exceeding one-third, of each year, if each specific cruise is approved by the Board under subsection (e) of this section.

(e) Application for approval of cruise; notice to other American flag operators.

Upon the application of any operator for approval of a specific cruise, the Board, after notice to all other American flag operators who may be affected and after affording all such operators an opportunity to submit written data, views or arguments, with or without opportunity to present the same orally in any manner, and after consideration of all relevant matter presented shall, if it determines that the proposed cruise will not substantially adversely affect an existing operator's service performed with passenger vessels of United States registry, approve the proposed cruise. Such approval shall not be given more than two years in advance of the beginning of the cruise.

(f) Seacoasts of the United States.

As used in this section the following three are the seacoasts of the United States; (1) the Atlantic coast, including the Great Lakes but excluding the Gulf of Mexico; (2) the Gulf of Mexico; and (3) the Pacific coast, including Alaska and Hawaii. (June 29, 1936, ch. 858, § 613, as added May 27, 1961, Pub. L. 87-45, § 1, 75 Stat. 89.)

ABOLITION OF FEDERAL MARITIME BOARD

Section 304 of 1961 Reorg. Plan No. 7, effective Aug. 12, 1961, 26 F.R. 7315; 75 Stat. 840, set out as a note under section 1111 of this title, abolished the Federal Maritime Board, including the offices of the members of the Board. Functions of the Board were transferred either to the Federal Maritime Commission or to the Secretary of Commerce by sections 103 and 202 of 1961 Reorg. Plan No. 7.

§ 1183a. Off-season cruises additional to right of operator to make voyages on regular service, route, or line, including approved deviations.

The cruises authorized by section 1183 of this title shall be in addition to and not in derogation of the right of an operator to make voyages on his regular service, route or line, including approved deviations within the general area of his essential service. There shall be no adjustment of subsidy in the event of such deviations if they are without prejudice to the adequacy of service. (Pub. L. 8745, § 7, May 27, 1961, 75 Stat. 91.)

CODIFICATION

Section was not enacted as part of the Merchant Marine Act, 1936, which comprises this chapter.

SUBCHAPTER VII.-PRIVATE CHARTER
OPERATION

§ 1191. Additional powers of Secretary for completion of program.

Whenever the Secretary of Commerce shall find and determine, and such finding and determination shall be approved by the President of the United States, that the national policy declared in section 1101 of this title, and the objectives set forth in section 1120 of this title, cannot be fully realized within a reasonable time, in whole or in part, under the provisions of subchapters V and VI of this chapter, the Secretary is authorized and directed to complete his long-range program previously adopted as provided in this subchapter. (June 29, 1936, ch. 858, §§ 701, 905 (e), 49 Stat. 2008; 1950 Reorg. Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277; July 17, 1952, ch. 939, § 21, 66 Stat. 765.)

TRANSFER OF FUNCTIONS

All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 20, 1949, 14 F. R. 5228, 63 Stat. 1069. See note set out under section 1111 of this title.

FINDING OF COMMISSION

Former United States Maritime Commission made findings and determinations on April 28, 1938, which were approved by the President on April 29, 1938, that the national policy declared in section 1101 of this title and

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