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(e) Any corporation which has filed a certificate with the Secretary [of the Treasury] as provided for herein shall cease to be qualified under this section if there is any change in its status whereby it no longer meets the conditions above set forth, and any documents theretofore issued to it, pursuant to the provisions of this section, shall be void and shall be surrendered by it [forthwith to the Secretary of the Treasury].

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 883-1 (June 5, 1920, c. 250, § 27A, as added Sept. 2, 1958, Public Law 85-902, 72 Stat. 1736).

This section has been divided into subsections consistent with the general arrangement of this act.

The word(s)—

"territory" and "territories" have been substituted, respectively, for "Territory and Territories" in several instances because, with the admission of Alaska and Hawaii as States, there are no more incorporated Territories to which the terms "Territory" or "Territories" are applicable;

"or the Commonwealth of Puerto Rico" have been inserted in several instances following the phrase "territory, District, or possession thereof,' or variations of that phrase, to reflect the present status of this former possession. See act July 3, 1950, c. 446, §§ 1-6, 64 Stat. 319; § 1 of the Constitution of Puerto Rico (48 U.S.C. 731b-e, 737);

"of the Treasury" following "Secretary" have been deleted as surplusage in several instances because "Secretary" is defined as "Secretary of the Treasury" in section 101 of this act; and

"to the Secretary of the Treasury" have been deleted at the end of subsection (e) because subsection (a) of section 106 of this act provides that whenever a document is required to be surrendered under this act, it shall be surrendered and returned to the Secretary.

The sentence at the end of subsection (e) concerning the remission or mitigation by the Secretary of any penalty or forfeiture incurred under this section has been deleted as covered by section 107 of this act.

The words "void and shall be" have been inserted before the word "surrendered" in subsection (e) for purposes of clarification.

Changes have been made in arrangement and phraseology as required in the context of this act.

SEC. 514. FOREIGN-BUILT VESSELS EXCLUDED FROM COASTWISE TRADE. Foreign-built vessels registered pursuant to paragraph (6) of subsection (a) of section 205 of this Act shall not engage in the coastwise trade[]. [Provided, That such vessels so admitted under the provisions of this section may contract with the Postmaster General under the Act of March 3, 1891, entitled "An Act to provide for ocean mail service between the United States and foreign ports, and to promote commerce," so long as such vessel shall in all respects comply with the provisions and requirements of said Act.]

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 11 (R.S. § 4132; Aug. 24 1912, c. 390, § 5, 37 Stat. 562; Aug. 18, 1914, c. 256, § 1, 38 Stat. 698; Sept. 21, 1922, c. 356, § 321, 42 Stat. 947; June 30, 1932, c. 314, § 501, 47 Stat. 415; May 27' 1936, c. 463, § 1, 49 Stat. 1380; May 24, 1938, c. 265, 52 Stat. 437; Proc. No. 2695, July 4, 1946, 11 F.R. 7517, 60 Stat. 1352; 1946 Reorganization Plan No. 3, §§ 101104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097; Sept. 21, 1959, Public Law 86-327, § 1, 73 Stat. 597).

The proviso has been deleted because the act of Mar. 3, 1891, c. 519, 26 Stat. 830, which provided in § 3 that "the vessels employed in the mail service under the provisions of this act shall be American built steamships ***", was repealed by act May 22, 1928, c. 675, § 414(c), 45 Stat. 696, and there is no provision in present law which places such a restriction upon vessels to be employed in the mail service.

The historical note to 46 U.S.C. 11 states, "For present provisions concerning carriage of mail see sections 880 and 1145 of this title [46]." However, 46 U.S.C. 880 (acts June 5, 1920, c. 250, § 24, 41 Stat. 998; May 22, 1928, c. 675, 414(a), 45 Stat. 696), relating to the carriage of U.S. mails on American-built documented vessels, and 46 U.S.C. 1145 (act June 29, 1936, c. 858, § 405, 49 Stat. 1995), relating to the carriage of U.S. mails on vessels and to the transportation of Post Office Department employees on mail-carrying vessels, were repealed by Public Law 86-682, § 12(c), Sept. 2, 1960, 74 Stat. 722, 723, 725.

The text of the repealed statutes is set forth below for reference: Former 46 U.S C. 880: "All mails of the United States shipped or carried on vessels shall, if practicable, be shipped or carried on American-built vessels documented under the laws of the United States. No contract made after June 5, 1920, with the Postmaster General for carrying mails on vessels so built and documented shall be assigned or sublet, and no mails covered by such contract shall be carried on any vessel not so built and documented. No money shall be paid out of the Treasury of the United States on or in relation to any such contract for carrying mails on vessels so built and documented when such contract has been assigned or sublet or when mails covered by such contract are in violation of the terms thereof carried on any vessel not so built and documented. This section shall not be applicable in the case of contracts made under sections 891e-891q of this title." (Sections 891e-891q, acts May 22, 1928, c. 675, §§ 401-413, 45 Stat. 692-696; Apr. 17, 1930, c. 173, §§ 1-3, 46 Stat. 169, 170, related to ocean mail service and contracts therefor, and were repealed by act June 29, 1936, c. 858, §§ 302(f), 903 (c), 49 Stat. 1993, 2016.)

Former 46 U.S.C. 1145: "(a) All mails of the United States carried on vessels between ports between which it is lawful under the navigation laws for a vessel not documented under the laws of the United States to carry merchandise shall, insofar as practicable, be carried on vessels of United States registry.

"(b) Every steamship company carrying the mails shall carry on any ship it operates and without extra charge therefor the persons in charge of the mails and when on duty and traveling to and from duty, and all duly accredited agents and officers of the Post Office Department and post office inspectors while traveling on official business, upon the exhibition of their credentials."

The historical note following former 46 U.S.C. 880 states, "See sections 6101, 6104, and 6429 of revised title 39," and that after former 46 U.S.C. 1145 states, "See sections 6101, 6104, and 6433 of revised title 39." Title 39, comprising the general and permanent laws relating to the Post Office Department and the postal service, was enacted into positive law by Public Law 86-682, § 1, Sept. 2, 1960, 74 Stat. 578. Sections 6101, 6104, 6429, and 6433 of that title are set forth below for reference:

39 U.S.C. 6101 (Public Law 86-682, Sept. 2, 1960, 74 Stat. 687): “(a) The Postmaster General shall provide for the transportation of mail by land, air or water as often as he deems proper under the circumstances—

"(1) within, among and between, the United States, its Territories, territories under trusteeship, possessions, the Commonwealth of Puerto Rico, and Armed Forces; and

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'(2) between the United States, its Territories, territories under trusteeship, possessions, the Commonwealth of Puerto Rico, or its Armed Forces, and any foreign country.

"(b) The Postmaster General shall provide for the transportation of mail to the courthouse of every county in the United States."

39 U.S.C. 6104 (Public Law 86-682, Sept. 2, 1960, 74 Stat. 688): "Mail of the United States shall, insofar as practicable, be carried on vessels of United States registry between ports between which it is lawful under the navigation laws for a vessel not documented under the laws of the United States to carry merchandise. The "Historical and Revision Notes" under this section state:

"This section restates the language of subsection (a) of section 1145 of title 46. Subsection (b) is covered by section 6433 of this title.

"Section 880 of title 46, covers the same matter as subsection (a) of section 1145. Insofar as it relates to the vessels on which mail may be carried, section 880 is superseded by section 11 of title 46. The third sentence of section 880 is omitted, as obsolete in view of the provisions of subsection (a) of section 1145. The provisions of the second sentence relating to subletting of contracts are covered by section 6429 of this title."

The meaning of the statement, "Insofar as it relates to the vessels on which mail may be carried, section 880 is superseded by section 11 of title 46," is unclear. Section 880 has been repealed, and section 11 refers to a statute which was repealed

also. For judicial interpretation of former 46 U.S.C. 1145, see Grace Line Inc v. U.S., 1962, 155 Ct. Cl. 482.

39 U.S.C. 6429 (Public Law 86-682, Sept. 2, 1960, 74 Stat. 703): "A contracto holding a contract for the transportation of mail may not sublet, assign or transfer his contract without the consent in writing from the Postmaster General. Whenever the Postmaster General determines that a contractor has sublet, assigned or transferred his contract without consent, he shall consider the contract as breached and may again advertise the service as provided by law. The contractor and his sureties are liable to the United States for damage resulting to the United States from the termination of the contract.'

39 U.S.C. 6433 (Public Law 86-682, Sept. 2, 1960, 74 Stat. 704): "Every person engaged in the transportation of mail by vessel and, unless otherwise provided in the contract, every other contractor engaged in the transportation of mail shall carry on any vessel or vehicle he operates upon exhibiting their credentials and without extra charge therefor—

"(1) persons in charge of the mails when on duty and traveling to and from duty, and

"(2) accredited agents and officers, including postal inspectors of the Department while traveling on official business."

A review of the foregoing does not disclose any section of present law similar to § 3, act of March 3, 1891, c. 519, 26 Stat. 830 (repealed), referred to in the deleted proviso, which mandatorily prohibits a foreign-built vessel admitted to registry from contracting with the Postmaster General; and the proviso accordingly has been deleted from this act.

Changes have been made in phraseology as required in the context of this act.

SEC. 515. SAME: EXCEPTION FOR VESSELS REGISTERED OR OWNED IN UNITED STATES IN 1920.-All foreign-built vessels admitted to American registry, owned on February 1, 1920, by persons citizens of the United States, and all foreign-built vessels owned by the United States [at the time of the enactment of this Act] on June 5, 1920, when sold and owned by persons citizens of the United States, may engage in the coastwise trade so long as they continue in such ownership, subject to the rules and regulations of such trade.

NOTE

This section is based on title 46, U.S.C. 1964 ed., § 13 (June 5, 1920, c. 250, § 22, 41 Stat. 997). Changes have been made in phraseology as required in the context of this act.

SEC. 516. SAME: EXCEPTION FOR VESSELS PURCHASED, CHARTERED, OR LEASED FROM SECRETARY OF COMMERCE.-[Provided, That foreign-built] Foreign-built vessels admitted to [American] registry, [or] enrollment and license, or license under section 252 of this Act, [and] vessels owned by any corporation in which the United States is a stockholder, and vessels sold, leased, or chartered by the Secretary of Commerce to any person a citizen of the United States. as provided in [this] the Shipping Act, 1916, as amended, may engage in the coastwise trade of the United States while owned, leased, or chartered by such a person.

NOTE

This section is based on title 46 U.S.C., 1964 ed., § 808 (Sept. 7, 1916, c. 451, § 9, 39 Stat. 730; July 15, 1918, c. 152, § 3, 40 Stat. 900; June 5, 1920, c. 250, § 18, 41 Stat. 994; Ex. Ord. No. 6166, § 12, June 10, 1933; June 29, 1936, c. 858, §§ 204, 904, 49 Stat. 1987, 2016; June 23, 1938, c. 600, § 42, 52 Stat. 964; 1950 Reorganization Plan No. 21, §§ 204, 305, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277; Nov. 8, 1965, Public Law 89-346, § 1, 79 Stat. 1305).

This section is based on the proviso in the first paragraph of section 9 of the Shipping Act, 1916, as amended (46 U.S.C. 808).

The word "American" has been deleted before "registry" as surplusage.

The words "or license" have been added after "enrollment and license" consistent with section 501 of this act. The word "enrollment" has been omitted from the phrase "registry, enrollment and license, or license" because enrollment by itself does not entitle a vessel to engage in any trade.

Changes have been made in phraseology as required in the context of this act.

SEC. 517. COASTWISE LAWS EXTENDED TO ISLAND TERRITORIES AND POSSESSIONS; EXCEPTIONS. From and after February 1, 1922, the The coastwise laws of the United States shall extend to the island [Territories] territories and possessions of the United States [not How covered thereby], the Commonwealth of Puerto Rico, and the guano stands referred to in sections 5570-5578 of the Revised Statutes (48 U.S.C. 1411--1419), and the Secretary of Commerce is directed prior to the iration of such year to have established adequate steamship service at reasonable rates to accommodate the commerce and the passenger Tavel of said islands and to maintain and operate such service until it can be taken over and maintained upon satisfactory terms by private apital and enterprise: Provided, That if adequate shipping service. is not established by February 1, 1922, the President shall extend the period herein allowed for the establishment of such service in the case f any island Territory or possession for such time as may be necessary for the establishment of adequate shipping facilities therefor: And provided further, That, the coastwise laws of the United States shall not extend to the Virgin Islands of the United States until the President of the United States shall, by proclamation, declare that such coastwise laws shall extend to the Virgin Islands and fix a date for the going into effect of the same.] but not to American Samoa. Neither shall they extend to Canton Island until such time as the President shall so extend them by proclamation upon a finding that adequate shipping service to accommodate the commerce and the passenger travel of Canton Island has been established; nor to the Virgin Islands of the United States, except that the President shall have power to make applicable to the Virgin Islands such of the coastwise laws of the United States as he may find and declare to be necessary to the public interest.

NOTE

This section is based on title 46, U.S.C., 1964 ed. § 877 (June 5, 1920, c. 250 21, 41 Stat. 997; Ex. Ord. No. 6166, § 12, June 10, 1933; Apr. 16, 1936, c. 228, 49 Stat. 1207; June 29, 1936, c. 858, title IX, § 904, 49 Stat. 2016; Proc. No. 2695, July 4, 1946, 11 F.R. 7517, 60 Stat. 1352; 1950 Reorganization Plan No. 21, 204, 306, eff. May 24, 1950, 15 F. R. 3178, 64 Stat. 1276, 1277); title 48, U.S.C., 1964 ed. §§ 1411-1419 (R.S. §§ 5570-5578); title 48 U.S. C., 1964 ed., § 1664 June 14, 1934, c. 523, 48 Stat. 963; Proc. No. 3215, Dec. 12, 1957, 22 F.R. 10073, 3 CFR, 1954-1958 Comp., p. 140); title 48, U.S. C., 1964 ed., § 1405c(d) (June 22, 1936, c. 699, § 4, 49 Stat. 1808; Aug. 7, 1939, c. 515, 53 Stat. 1242; Oct. 31, 1951, c. 654, § 1(127), 65 Stat. 706); title 48 U.S. C., 1964 ed., §1574(c) (July 22, 1954, c. 558, § 8, 68 Stat. 500, amended Aug. 28, 1958, Public Law 85-851, §§ 2, 3, 10, 72 Stat. 1094, 1095; Nov. 19, 1963, Public Law 88-180, 77 Stat. 335); Ex. Ord. No. 9170, May 21, 1942, 7 F.R. 3842.

The words "From and after February 1, 1922" have been deleted as obsolete, having been intended to make the provisions of 46 U.S.C. 877 (this section) effective on Feb. 1, 1922.

The word "territories" has been substituted for "Territories" because, with the admission of Alaska and Hawaii as States, there are no more incorporated Territories to which the term "Territories" is applicable.

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The reference to "the Commonwealth of Puerto Rico" has been inserted to reflect the present status of this former possession. See act July 3, 1950, c. 446, §§ 1-6, 64 Stat. 319, §1 of the Constitution of Puerto Rico (48 U.S.C. 731b-e, 737).

The reference to the "guano islands" is based on R.S. § 5575 (48 U.S.C. 1416) which provides that the introduction of guano from the islands rocks, or keys referred to in R.S. §§ 5570-5578 (48 U.S.Č. 1411-1419) "shall be regulated as in the coasting trade between different ports of the United States, and the same laws shall govern the vessels concerned therein" and has been inserted for completeness and to recognize that the duration of such islands, rocks, or keys as "possessions" of the United States may be transitory, as the United States is not obliged to retain possession after the guano shall have been removed. (R.S. § 5578; 48 U.S.C. 1419).

The words directing the Secretary of Commerce to establish adequate shipping service to certain islands by Feb. 1, 1922, and the authority of the President to extend the period allowed for so doing, have been omitted as covered by section 4205(b) of the draft of the proposed Merchant Marine Act of 1966 prepared by Pike & Fischer, Inc., to consolidate certain of the shipping laws of the United States administered by the Secretary of Commerce. As such, the direction is included with other authority of the Secretary of Commerce in connection with the establishment and operation of steamship lines in certain circumstances.

The exception as to American Samoa is based on the act June 14, 1934, c. 523, 48 Stat. 963 (48 U.S.C. 1664), which provides:

"The provisions of law of the United States restricting to vessels of the United States the transportation of passengers and merchandise directly or indirectly from any port of the United States to another port of the United States shall not be applicable to commerce between the islands of American Samoa or between those islands and other ports under the jurisdiction of the United States."

The reference to Canton Island is based on the provisions of Presidential Proclamation 3215, Dec. 12, 1957, 22 F.R. 10073, 3 CFR 1954-1958, Comp., p. 140, issued under the authority of act June 5, 1920, c. 250, §21, 41 Stat. 997 (46 U.S.C. 877), to be reenacted as section 4205(b) of the Merchant Marine Act of 1966 previously referred to.

The reference to the Virgin Islands of the United States substitutes, with necessary changes in phraseology, language in subsection (d) of 48 U.S.C. 1405c, (June 22, 1936, c. 699, §4, 49 Stat. 1808; Aug. 7, 1939, c. 515, 53 Stat. 1242; Oct. 31, 1951, c. 654, §1 (127), 65 Stat. 706), which reads, in part: “*** the President shall have power to make applicable to the Virgin Islands such of the navigation, vessel inspection, and coastwise laws of the United States as he may find and declare to be necessary in the public interest ***" for that in the last proviso to 46 U.S.C. 877 (Apr. 16, 1936, c. 228, 49 Stat. 1207), which reads:

"***the coastwise laws of the United States shall not extend to the Virgin Islands of the United States until the President of the United States shall, by proclamation, declare that such coastwise laws shall extend to the Virgin Islands and fix a date for the going into effect of same."

Section 4 of the act June 22, 1936 (48 U.S.C. 1405c(d), thus appears to have superseded the act Apr. 16, 1936 (46 U.S.C. 877).

Ex. Ord. No. 9170, May 21, 1942, 7 F.R. 3842, issued under authority of the act June 22, 1936, in part provides:

"It is ordered that all of the navigation and vessel inspection laws of the United States be, and they are hereby, made applicable to the Virgin Islands of the United States, with the following exceptions;

"(1) The coastwise laws of the United States. ***"

The act July 22, 1954, § 8, 68 Stat. 500, as amended (48 U.S.C. 1574(c)), provides that the laws of the United States applicable to the Virgin Islands on July 22, 1954, including laws made applicable by or pursuant to the provisions of 48 U.S.C. 1405c, shall continue in force and effect until otherwise provided by the Congress. Thus the coastwise laws, not being applicable to the Virgin Islands on July 22, 1954, are not now applicable but the authority of the President to make them so at some future time, if found and declared by him to be necessary in the public interest, in pursuance of 48 U.S.C. 1405c, continues in force.

For a discussion of the authority of the President to amend Executive Order 9170 in the light of 48 U.S.C. 1574(c), and of the relationship of 48 U.S.C. 1405c and 48 U.S.C. 1574(c), note the opinion of the Attorney General of the United States dated Aug. 7, 1963, 42 Op. Atty. Gen. 13.

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