facilities. Such insurance shall not be issued against liability to employees in respect of employers' liability or workmen's compensation. No such insurance shall be provided unless, in the opinion of the Secretary, such insurance is required in the prosecution of the war effort or in connection with national defense and cannot be obtained at reasonable rates or upon reasonable conditions from approved companies authorized to do insurance business in any State of the United States.

"SEC. 1207. (a) To the extent that he is authorized by this title to provide marine, war risk, and liability insurance, the Secretary may reinsure, in whole or in part, any company authorized to do an insurance business in any State of the United States. The Secretary may reinsure with, or cede or retrocede to, any such company any insurance or reinsurance provided by the Secretary in accordance with the provisions of this title.

"(b) Reinsurance shall not be provided by the Secretary at rates less than nor obtained by the Secretary at rates more than the rates established by the Secretary on the same or similar risks or the rates charged by the insurance carrier for the insurance so reinsured whichever is most advantageous to the Secretary, except that the Secretary may make to the insurance carrier such allowances for expenses on account of the cost of services rendered or facilities furnished as he deems reasonably to accord with good business practice, but such allowance to the carrier shall not provide for any payment by the carrier on account of solicitation for or stimulation of insurance business.

"SEC. 1208. (a) The Secretary shall create an insurance fund in the Treasury to enable him to carry out the provisions of this title. Moneys appropriated by Congress to carry out the provisions of this title and all moneys received from premiums, salvage, or other recoveries and all receipts in connection with this title shall be deposited in the Treasury to the credit of such fund. Payments of return premiums, losses, settlements, judgments, and all liabilities incurred by the United States under this title shall be made from such fund through the Division of Disbursement, Treasury Department. "(b) Such sums as shall be necessary to carry out the provisions of this title are authorized to be appropriated to such fund.

66

"SEC. 1209. (a) The Secretary, in the administration of this title, may issue such policies, rules, and regulations as he deems proper and may adjust and pay losses, compromise and settle claims, whether in favor of or against the United States and pay the amount of any judgment rendered against the United States in any suit, or the amount of any settlement agreed upon, in respect of any claim under insurance. authorized by this title, but with respect to any vessel which is insured under the provisions of this Act, the amount of the claim adjusted, compromised, settled, adjudged or paid shall not exceed the vessel's fair and reasonable value as determined by the Federal Maritime Board.

"(b) The Secretary may prescribe and change forms and policies, and fix, adjust, and change the amounts insured and rates of premium provided for in this title.

"(c) The Secretary, in administering this title, may exercise his

in accordance with commercial practice in the marine insurance business. Except as authorized in subsection (d) of this section, no insurance broker or other person acting in a similar intermediary capacity shall be paid any fee or other consideration by the Secretary by virtue of his participation in arranging any insurance wherein the Secretary directly insures any of the risk thereof.

"(d) The Secretary may, and whenever he finds it practical to do so shall, employ domestic companies or groups of domestic companies authorized to do a marine insurance business in any State of the United States, to act as his underwriting agent. The Secretary may allow such companies or groups of companies fair and reasonable compensation for servicing insurance written by such companies or groups of companies as underwriting agent for the Secretary. The services of such underwriting agents may be utilized in the adjustment of claims under insurance provided by this title, but no claim shall be paid unless and until it has been approved by the Secretary. Such compensation may include an allowance for expenses reasonably incurred by such agent, but such allowance shall not include any payment by such agent on account of solicitation for or stimulation of insurance business.

"(e) The Secretary without regard to the laws, rules, or regulations relating to the employment of employees of the United States, may appoint and prescribe the duties of such number of experts in marine insurance as he deems necessary under this title.

"(f) The Secretary with the consent of any executive department, independent establishment, or other agency of the Government, including any field service thereof, may avail himself of the use of information, services, facilities, officers, and employees thereof in carrying out the provisions of this title.

"SEC. 1210. This title shall not affect rights of seamen under existing law.

"SEC. 1211. The Secretary shall include in his annual report to Congress a detailed statement of all activities and of all expenditures and receipts under this title for the period covered by such report and in addition make quarterly progress reports to the Congress with reference to contracts entered into, proposed contracts, and the general progress of his insurance activities.

"SEC. 1212. Upon disagreement as to a loss insured under this title, suit may be maintained against the United States in admiralty in the district in which the claimant or his agent resides, and this remedy shall be exclusive of any other action by reason of the same subject matter against any agent or employee of the United States employed or retained under this title. If the claimant has no residence in the United States, suit may be brought in the district court of the District of Columbia or in such other district court in which the Attorney General of the United States agrees to accept service. Such suits shall be heard and determined under the provisions of an Act entitled 'An Act authorizing suits against the United States in admiralty, suits for salvage services, and providing for the release of merchant vessels belonging to the United States from arrest and attachment in foreign jurisdiction, and for other purposes', approved March 9, 1920, as amended (known as the Suits in Admiralty Act). All persons having or claiming or who might have an interest in such insurance, may be made parties either initially or upon the motion of either party. In

any case where the Secretary acknowledges the indebtedness of the United States on account of such insurance, and there is a dispute as to the persons entitled to receive payment, the United States may bring an action in the nature of a bill of interpleader against such parties, in the District Court for the District of Columbia, or in the district court of the district in which any such person resides. In such actions any party, if not a resident of or found within the district, may be brought in by order of court served in such reasonable manner as the court directs. If the court is satisfied that persons unknown might assert a claim on account of such insurance, it may direct service upon such persons unknown by publication in the Federal Register. Judgment in any such suit shall discharge the United States from further liability to any parties to such action, and to all persons when service by publication upon persons unknown is directed by the court. The period within which suits may be commenced contained in said Suits in Admiralty Act shall, if claim be filed therefor within such period, be suspended from such time of filing until the claim shall have been administratively denied by the Secretary and for sixty days thereafter: Provided, however, That such claim shall be deemed to have been administratively denied if not acted upon within six months after the time of filing, unless the Secretary for good cause shown shall have otherwise agreed with the claimant.

"SEC. 1213. A person having an insurable interest in a vessel may, with the approval of the Secretary, insure with other underwriters in an amount in excess of the amount insured with the Secretary of Commerce, and in that event the Secretary of Commerce shall not be entitled to the benefit of such insurance.

"SEC. 1214. The authority of the Secretary to provide insurance and reinsurance under this title shall expire five years from the date of enactment of this title."

[CHAPTER 1002-2D SESSION]

[S. 3796]

AN ACT

To amend section 4474 of the Revised Statutes, as amended, relating to the use of petroleum as fuel aboard steam vessels.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4474 of the Revised Statutes, as amended (U. S. C., title 46, sec. 467), is amended to read as follows:

"SEC. 4474. When crude petroleum of a flash point not less than one hundred and fifty degrees Fahrenheit is carried in the doublebottom fuel tanks of steamers using the same for fuel, the crude petroleum carried in such tanks in excess of the necessities of the voyage may be discharged at terminal ports when no passengers are on board the ship. Crude petroleum carried and discharged under these conditions will not be considered stores or cargo within the contemplation of section 4472 of the Revised Statutes, as amended (U. S. C., title 46, sec. 170), and will be considered as only for use as fuel within the contemplation of section 4417a (1) of the Revised Statutes, as amended (U.S. C., title 46, sec. 391a (1)).”

Approved September 23, 1950.

[CHAPTER 1093-2D SESSION]

(H. R. 8847]

AN ACT

To aid the development and maintenance of American-flag shipping on the Great Lakes, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 12 (a) of the Merchant Ship Sales Act of 1946, as amended, is amended by inserting after "in commercial services", in the first sentence thereof the words "and to convert for operation on the Great Lakes, including the Saint Lawrence River and Gulf, and their connecting waterways,' SEC. 2. Section 12 of the Merchant Ship Sales Act of 1946, as amended, is further amended by adding at the end thereof the following:

"(e) The Secretary of Commerce is authorized, without regard to the provisions of the last paragraph of section 3 (d) of this Act, to make the allowances provided for by this subsection to purchasers of not more than ten vessels sold pursuant to this Act for exclusive use on the Great Lakes, including the Saint Lawrence River and Gulf and their connecting waterways. The allowances authorized by this subsection shall be allowances for (1) the fair and reasonable installed value, based on the domestic war cost, as computed by the Secretary, of such equipment on said vessels as is not required for their operation on the Great Lakes, and the cost of the removal thereof, (2) the fair and reasonable cost, as determined by competitive bids from shipyards, of converting, altering, modifying, and equipping such vessels for use as package freight, passenger, and combination freight and passenger vessels, in accordance with plans and specifications prepared by the purchasers thereof and approved by the Secretary: Provided, however, That the total allowances on any vessel made by the Secretary pursuant to this subsection shall not exceed the amounts expended by the purchaser in altering, modifying, converting, and equipping such vessel, plus the allowances provided for in clause (1) of this subsection, and in no event shall such allowances exceed 90 per centum of the unadjusted statutory sales price: Provided further, That the purchaser shall be required to accept delivery of such vessel at the reserve fleet site or such other place as such vessel may be located at the time of purchase."

SEC. 3. Contracts for the sale of vessels for exclusive use on the Great Lakes, including the Saint Lawrence River and Gulf and their connecting waterways, may be made until December 31, 1950. Such contracts shall require that transfer to the Great Lakes of such vessels by the buyers shall be completed by December 31, 1951.

SEC. 4. (a) Section 1104 (a) (2) of the Merchant Marine Act of 1936, as amended, is amended by inserting after the word "advance" a comma and the following: "or, in the case of vessels purchased

(611)