[CHAPTER 4-1ST SESSION] [H. R. 1437] AN ACT Authorizing appropriations for additional shipbuilding and ordnance manufacturing facilities and equipment for the United States Navy, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in addition to the sums authorized to be appropriated by the Act of June 14, 1940 (Public, Numbered 629, Seventy-sixth Congress), and the Act of July 19, 1940 (Public, Numbered 757, Seventy-sixth Congress), there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, $315,000,000 for essential equipment and facilities at either private or naval establishments for building or equipping any complete naval vessel or portion thereof heretofore or hereafter authorized, and $194,000,000 for essential equipment and facilities for the manufacture or production of ordnance material, munitions, and armor at either private or naval establishments. The authority herein granted shall include the authority to acquire lands at such locations as the Secretary of the Navy, with the approval of the President, may deem best suited to the purpose, erect buildings, and acquire the necessary machinery and equipment. SEC. 2. The Secretary of the Navy is authorized to construct not to exceed four hundred small craft for patrol, local defense, escort, salvage, and towing services in addition to all such craft heretofore authorized and appropriated for, and he is hereby authorized to enter into contracts for this purpose to a total amount not exceeding $400,000,000. Approved, January 31, 1941. [PUBLIC LAW 5-77TH CONGRESS] [CHAPTER 5-1ST SESSION] JOINT RESOLUTION Making an appropriation to the United States Maritime Commission for emergency cargo ship construction, and for other purposes. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of providing as rapidly as possible cargo ships essential to the commerce and defense of the United States there is hereby appropriated to the United States Maritime Commission, out of any money in the Treasury not otherwise appropriated, the sum of $313,500,000, to remain available until expended, which amount shall be additional to the $500,000 allocated from the Emergency Fund for the President in the Military Appropriation Act, 1941, and $36,000,000 to be allocated during the fiscal year 1942 from funds available for the payment of obligations incurred for the purposes hereof under the contract authorizations under such emergency fund for the President, the total of such sums, aggregating $350,000,000, to be known as the "Emergency Ship Construction Fund, United States Maritime Commission", which fund shall be available for the payment of said contract authorizations and for (1) the construction in the United States of ocean-going cargo vessels of such type, size, and speed as the Commission may determine to be useful in time of emergency for carrying on the commerce of the United States and to be capable of the most rapid construction; (2) the production and procurement of parts, equipment, material, and supplies for such ships; (3) the establishment, acquisition, construction, enlargement, or extension of plants or facilities, on land whether owned by the Government or otherwise owned (including the acquisition by purchase or condemnation of real property or any interest therein), to be used for the construction of ships or for the production of parts, equipment, supplies, or material therefor, and the maintenance, repair, operation (under lease or otherwise), and management of such plants and facilities; and (4) all administrative expenses in connection with the program provided herein including personal services at the seat of government and elsewhere: Provided, That the employment of personnel engaged in the maintenance, repair, operation, or management of plants or facilities shall be without regard to the civil service and classification laws: Provided further, That no part of this appropriation shall be used to pay the salary or wages of any person who advocates, or who is a member of an organization that advocates, the overthrow of the Government of the United States by force or violence: Provided further, That for the purposes hereof an affidavit shall be considered prima facie evidence that the person making the affidavit does not advocate, and is not a member of an organization that advocates, the overthrow of the Government of the United States by force or violence: Provided further, That any person who advocates, or who is a member of an organization that advocates, the overthrow of the Government of the United States by force or violence and accepts employment the salary or wages for which are paid from this appropriation shall be guilty of a felony and, upon conviction, shall be fined not more than $1,000 or imprisoned for not more than one year, or both: Provided further, That the above penalty clause shall be in addition to, and not in substitution for, any other provisions of existing law. SEC. 2. The provisions of section 207 of the Merchant Marine Act, 1936, as amended (46 U. S. C. 1117), and the Act of October 10, 1940 (Public, Numbered 831), shall apply to all the activities and functions which the Commission is authorized to perform under section 1 of this joint resolution; and the Commission is authorized to carry on the objects, activities, and functions provided for in section 1 of this joint resolution, without regard to the provisions of sections 355, 3648, and 3709 of the Revised Statutes of the United States; section 7 of the Act of May 27, 1930 (46 Stat. 391), relating to the purchase of prison-made goods; the Act of August 24, 1935 (49 Stat. 793), requiring performance and other bonds on public works; section 321 of the Act of June 30, 1932 (47 Stat. 412), relating to the lease of Government property, and any provision of law relating to the disposal of surplus Government property. SEC. 3. In addition to contract authorizations for carrying out the provisions of the Merchant Marine Act of 1936, as amended, contained in previous Acts, the United States Maritime Commission is authorized to enter into contract or contracts for the purpose of carrying out the provisions of said Act in an amount not to exceed $65,000,000. SEC. 4. The Commission is authorized to construct, reconstruct, repair, equip, and outfit, by contract or otherwise, vessels or parts thereof, for any other department or agency of the Government, to the extent that such other department or agency is authorized by law to do so for its own account, and any obligations heretofore or hereafter incurred by the Commission for any of the aforesaid purposes shall not diminish or otherwise affect any contract authorization granted to the Commission: Provided, The obligations incurred or the expenditures made are charged against and, to the amount of such obligation or expenditure, diminish the existing appropriation or contract authorization of such department or agency. [CHAPTER 84-1ST SESSION] [H. R. 3252] AN ACT To make emergency provision for certain activities of the United States Maritime Commission, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the authority of the United States Maritime Commission under Public Resolution Numbered 82, Seventy-sixth Congress, approved June 11, 1940 (54 Stat. 306), shall continue in effect during the national emergency declared by the President on September 8, 1939, to exist, but not after June 30, 1942. SEC. 2. (a) Whenever deemed by the President of the United States to be in the best interests of the national commerce and defense during the national emergency declared by the President on September 8, 1939, to exist, but not after June 30, 1942, (1) the United States Maritime Commission is hereby authorized, subject to the provisions of subsections (b) and (c) hereof, to negotiate contracts for the acquisition, construction, reconstruction, alteration, reconditioning, repair, outfitting, or equipping of complete vessels, or any portion thereof, including plans, spare parts, and equipment therefor, that the Commission has been or may be authorized to acquire, construct, reconstruct, alter, recondition, repair, outfit, or equip, pursuant to the Merchant Marine Act, 1936, as amended, or section 4 of Public Law Numbered 5, Seventy-seventh Congress, approved February 6, 1941, with or without advertising or competitive bidding upon determination that the price is fair and reasonable; (2) upon its determination that such action is in the best interests of the national commerce and defense because of changes in conditions occurring after the execution of its contracts heretofore or hereafter entered into for the construction, reconstruction, alteration, reconditioning, repair, outfitting, or equipping of vessels, the Commission. is hereby authorized to modify such contracts in conformity with provisions hereof relating to negotiated contracts, and to adjust the payments to be made thereunder, but the aggregate amount payable to the contractor under any contract modified pursuant hereto shall not exceed the amount which would have been payable if the contract as modified had been entered into under the authority of this section; (3) the furnishing of materials and performance of work required for or in connection with contracts made by the Commission for the acquisition, construction, reconstruction, alteration, reconditioning, repair, outfitting, or equipping of vessels shall, in the discretion of the President, take priority over the furnishing of materials or performance of work for private account or for export. (b) The provisions of Public Law Numbered 831, Seventy-sixth Congress, approved October 10, 1940 (54 Stat. 1092) (relating to compensation for all hours worked by laborers and mechanics in excess of eight hours per day or forty hours per week at not less than oneand-one-half times the basic rate of pay), shall apply in respect of any contract negotiated pursuant to subsection (a) hereof. (c) The cost-plus-a-percentage-of-cost system of contracting shall not be used under the authority to negotiate contracts granted by subsection (a) hereof, but contracts may be used providing for payment of cost plus a fixed fee, or cost plus a fixed fee with such bonuses and penalties as the Commission may deem necessary to secure maximum performance under such contracts, if for each contract (1) such fixed fee does not exceed 7 per centum of the estimated cost of the contract (exclusive of the fee and any bonuses payable thereunder) as determined by the Commission at the time of entering into such contract, and (2) the aggregate of such fixed fee plus any such bonuses payable thereunder does not exceed 10 per centum of such estimated cost. Performance or payment bonds required of the contractor under the Act of August 24, 1935 (49 Stat. 793; U. S. C., title 40, sec. 270a to 270d), may be waived by the Commission with respect to any contract negotiated or modified hereunder providing for payment of cost plus a fee as herein authorized. Any contract negotiated or modified hereunder providing for payment of cost plus a fee as herein authorized shall be excluded from consideration in the determination of profit of the contractor under section 505 (b) (2) of the Merchant Marine Act, 1936, as amended. (d) The Commission shall report every three months to the Congress the contracts entered into or modified under the authority hereof and not included in a prior report. SEC. 3. Whenever, during the national emergency declared by the President on September 8, 1939, to exist, but not after June 30, 1942, the Maritime Commission determines that operation in the foreign trade under charter to a private operator of any vessel of the Commission available for the purposes hereof is necessary for the maintenance of the foreign commerce of the United States, and that the necessary service cannot be so provided as to meet effectively such needs under the provisions of the Merchant Marine Act, 1936, as amended, the Commission may, notwithstanding any other provision of law, charter such vessel to a private operator, a citizen of the United States (as defined in section 2 of the Shipping Act, 1916, as amended), for use in such foreign trades or services as the Commission may prescribe, on time or bare-boat basis, with or without competitive bidding or advertisement, upon such terms and conditions, for such period or periods, and subject to such restrictions, as the Commission may deem necessary or desirable for the protection of the public interest, and at such rate of charter as it may deem to be fair and reasonable in view of the attendant circumstances, but if the vessel is one constructed under the said Act, not lower than the minimum charter hire would be if the vessel were chartered under the provisions of section 714 of the said Act, as amended. Nothing in this Act shall be construed to modify or affect any provision of the |