2 Ensign, U. S. 8' x 12'

3 Flags, International Code, complete

set consisting of one set alphabets, size No. 2 (4 ft. 6 in. x 5 ft. 6 in.), one set numerals, size No. 3, (3 ft. 9 in. x 12 ft. 9 in.), one answering pennant, size No. 2, (3 ft. 9 in. x 12 ft. 9 in.), one set repeaters, (first, second, and third) and two code books (Volumes I and II)____

4 Flags, International Code; size No. 1 (6 ft. 6 in. x 8 ft. 0 in.) of letters, "B", "G", "H", "P", "Q", and "Y" each..

5 Flags, ship's code letter; Complete set consisting of four letters in set (4 ft. 6 in. x 5 ft. 6 in.).

23

Coats, messmen's.

1

1

24

Coats, cooks'.

Subpart C-Charter of War-Built Vessels to Citizens

§ 299.31 Charter of war-built vessels to citizens of the United States.

(a) Application. Any citizen of the United States, as defined in § 299.1 (h), and until July 4, 1946, any citizen of the Commonwealth of the Philippines, may apply to the Administration to charter a war-built dry cargo vessel, including passenger type vessels, for bareboat use. The application to receive consideration must be substantially in the form prescribed by the Administration in § 299.128. Three executed copies and fifteen conformed copies of the application must be filed with the Secretary, Maritime Administration, Washington 25, D. C. Each application shall contain sufficient information to enable the Administration to make all necessary determinations, including the following:

(1) Citizenship of the applicant.

(2) That the applicant possesses the following minimum financial requisites:

(1) Sufficient working capital, as defined in § 299.1 (n), to cover preoperating and operating expenses, as defined in § 299.1 (p), of the vessel (in addition to basic charter hire) for a period of 60 days and prepaid insurance for one year.

In determining the amount of working capital the amount of any curities pledged or to be pledged the Administration in lieu of a su bond, as prescribed in paragraph (g) of this section, shall be excluded.

(ii) Net worth, as defined in §: (o), at least equal to the amount of annual basic charter hire payable respect to the war-built vessel. { minimum financial requirements sha applicable with respect to each vesse plied for. In instances where the a cant is engaged in the operation of o vessels or in activities other than operation of vessels, the amount of w ing capital and net worth required such purposes will be taken into acc in addition to such minimum fina requirements in determining whethe applicant possesses the required final

resources.

(3) That the applicant possesses ability, experience, and other quali tions, necessary to enable him to fi the terms of the charter.

Items are parts of items in the a cation which are inapplicable maj omitted. If any information called by an applicable item is not furnished explanation of the omission shall given. Detailed descriptions of exh need not be given. The applicant furnish such relevant information : may desire, in addition to that spec in the form.

(4) Applicants for the charter of built vessel(s) under section 5 (e) the Merchant Ship Sales Act of 1 as amended by Public Law 591, 81st ( gress, shall in addition to the forego submit a Supplemental Application: stantially in the form prescribed § 299.129.

If applicant has not previously fil formal charter application purs to this section (General Order questions 3, 4, 5, 8, 9, 10, and 11 in Supplemental Application may be di garded provided the informa required by said questions is f supplied in the application submitte compliance with this section (Gen Order No. 60).

(b) Amendment of application. S application may be amended at any t before the Administration has acted on it. Three executed copies and fift conformed copies of the amendm must be filed with the Secretary, M time Administration, Washington D. C. Amendments involving subst

ion of a different vessel for the vessel pplied for, unless promptly made at he written request of the Administraion, shall be effective as of the filing ate of the amendment. All other imely amendments (including amendaents involving substitutions for the essels applied for when made at the ritten request of the Administration) hall be effective as of the filing date of he original application. Any informaion called for by the Administration rom time to time shall be furnished as n amendment or amendments to the pplication. The applicant shall file rom time to time as amendments any nformation necessary to keep current nd correct, while the application is ending, the information contained herein or furnished in connection herewith.

(c) Approval or rejection by the Adinistration. The Administration may, its discretion, either approve or reject he application and will not approve the pplication unless it determines that the pplicant is a citizen of the United States s defined in § 299.1 (h) or in case of an pplication filed prior to July 4, 1946, is a itizen of the Commonwealth of the hilippines and, in its opinion, the hartering of the vessel to the applicant ill be consistent with the policies of the ct and the vessel is available for charter the applicant. In determining hether or not to approve the applicaon, the Administration will take into onsideration the applicant's financial esources and credit standing, practical xperience in the operation of vessels, nd any other factors that would be conidered by a prudent businessman in ntering into a transaction involving a rge investment of his capital; and the dministration will not charter a vessel › any person, appearing to lack sufcient capital, credit, and experience to ilfill the terms of the charter. No vesl will be chartered until 60 days after ublication of the applicable prewar dolestic cost in the FEDERAL REGISTER. If he application is rejected by the Adinistration, the Secretary will promptadvise the applicant.

(d) Charter party. If the application approved by the Administration, the ecretary will furnish the applicant five ›unterparts of a charter party covering he vessel(s) in such form as the Admintration may prescribe, which shall be xecuted by the applicant and redeliv

ered to the Secretary within fifteen (15) days of the date of its receipt by the applicant. After the charter party has been executed on behalf of the Administration, one of the counterparts will be sent to the applicant.

(e) Period of charter. The period of the charter shall be determined by the Administration in each particular case.

(f) Charter hire. The monthly charter hire for any vessel chartered under the provisions of the act shall be one-twelfth of an amount not less than 15 percent of the statutory sales price (computed as of the date of delivery of the vessel under the charter), except upon the affirmative vote of not less than four members of the Administration. Except in the case of vessels having passenger accommodations for not less than eighty passengers, rates of charter hire fixed by the Administration on any war-built vessel which differ from the rate specified in this subsection shall not be less than the prevailing world market charter rates for similar vessels for similar use as determined by the Administration.

(g) Mandatory provisions in charter. Every charter made by the Administration pursuant to the provisions of the act shall provide:

(1) Excess profits of charterer. That whenever, at the end of any calendar year subsequent to the execution of such charter, the cumulative net voyage profits (after payment of the charter hire reserved in the charter and payment of the charterer's fair and reasonable overhead expenses applicable to operation of the chartered vessels) shall exceed 10 percent per annum on the charterer's capital necessarily employed in the business of the vessel or vessels covered by the same charter, the charterer shall pay over to the Administration, an additional charter hire, one-half of such cumulative net voyage profit in excess of 10 percent per annum on such capital: Provided, That the cumulative net profit so accounted for shall not be included in any calculation of cumulative net profit in subsequent years. (Every charter shall contain definitions of the terms "net voyage profit" and "fair and reasonable overhead expenses" and "capital necessarily employed", as said terms are used in this subparagraph, such definitions to set forth the formulae for determining such profits, overhead expense, and capital necessarily employed.)

(2) Charterer to insure vessel. That the charterer shall carry in the chartered vessels, at its own expense, policies of insurance covering all marine and port risks, protection and indemnity risks, and all other hazards and liabilities, in such amounts, in such form, and in such insurance companies as the Administration shall require and approve, adequate to cover all insurable damage claims against and losses sustained by the chartered vessels arising during the life of the charterer: Provided, That in accordance with existing law, some or all of such insurance risks may be underwritten by the Administration itself as in its discretion it may determine.

(3) Charterer to maintain and repair vessel. That the charterer shall at its own expense keep the chartered vessel in good state of repair and in efficient operating condition and shall at its own expense make any and all repairs as may be required by the Administration.

(4) Administration inspection of vessel. That the Administration shall have the right to inspect the vessel at any and all times to ascertain its condition.

(5) Books and accounts of charterer; Administration examination and audit. That the charterer shall keep its books and accounts relating to the vessel in such form as the Administration may prescribe, shall file such financial statements as the Administration may require, and shall permit the Administration to examine and audit its books, records and accounts.

(6) Emergency termination of charter. That whenever the President shall proclaim that the security of the national defense makes it advisable, or during any national emergency declared by proclamation of the President, the Administration may terminate the charter without cost to the United States, upon such notice to the charterer as the President shall determine.

(7) Bond of charterer. That, for each vessel chartered under section 5 of the act, the charterer shall deposit with the Administration a bond, in such amount as the Administration shall require but not less than $25,000, to be approved by the Administration both as to form and sufficiency of the sureties, conditioned upon the true and faithful performance of all and singular the covenants and agreements of the charterer contained in the charter, including, but not limited to, the charterer's obligation to pay charter hire and damages, and indemnity against

liens on the chartered vessel. Th charterer may, in lieu of furnishing such bond, pledge United States Governmen securities in the face value of the re quired amount under an agreement sat isfactory in form and substance to th Administration.

(8) Financial limitations. That th charterer agrees that (i) no capital sha be withdrawn, (ii) no share capital sha be redeemed or converted into debt, (iii no dividend shall be paid, (iv) no loa or advance (except advances to cove current expenses of the charterer) sha be made, either directly or indirectly, t any stockholder, director, officer, or em ployee of the charterer or to any relate company (as defined in § 299.1 (q)), (v no investment shall be made in the secu rities of any related company (as de fined in § 299.1 (q)), (vi) no indebtedne to any stockholder, director, officer, c employee of the charterer or to any re lated company (as defined in § 299.1 (q) which was classified as long-term or non current in the balance sheet submitte with the application (or amendmen thereto) to charter the vessel, shall b repaid in whole or in part, and (vii) n salary at a rate in excess of $25,000.0 per annum shall be paid, if, after suc transaction, the amount of working cap tal or the amount of net worth thereb would be reduced below the minima pre scribed in paragraph (a) of this section (h) Operating - differential subsid The Administration may, if in its discre tion financial aid is deemed necessar enter into a contract with any citizen the United States chartering a vess under the provisions of the act for pay ment to such charterer of an operating differential subsidy upon the same tern and conditions and subject to the sam limitations and restrictions, where appl cable, as are provided in the Mercha Marine Act, 1936, as amended, with re spect to payments of such subsidies operators of privately owned vessels.

(i) Application where request is mad for an operating-differential subsid Where the applicant requests financi aid in the operation of a vessel chartere under the act, pursuant to paragrap (h) of this section, the application pro vided for in paragraph (a) of this se tion shall be accompanied by an applica tion for an operating-differential subsid in substantially the form prescribed i § 251.11 of this chapter (the Adminis tration's General Order No. 13).