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should be considered in advance in determining whether the charter should be canceled.

(h) Form of charter to be considered. The form of charter should be considered especially with reference to the obligations of the War Department for reconditioning. Under a time charter when a vessel is manned by the owner he is responsible for maintaining the vessel in efficient state and operating it. Repairs which become necessary in that connection are for his account, the War Department being chargeable for such damage as results directly from the carrying of its cargo or troops, and which is not chargeable to wear and tear. The War Department is also chargeable with the reconditioning of alterations made for its convenience. Under bare-boat charter the War Department mans the vessel, and has the use of all equipment and stores and full charge of the operation. In this case the owner is chargeable with the wear and tear incident to the service contemplated under the charter, but the repairs necessary for maintenance and operation, accounts for articles of inventory and stores, and the reconditioning of alterations are chargeable to the War Department. The board of survey should consult the judge advocate, maritime affairs, concerning the determination of the extent of the Government's obligations under the charter.

(i) Dry docking. When an inspection of the hull is deemed necessary to enable the board of survey to arrive at a decision as to the repairs necessary for damage claimed by the owners, the officer in charge of the port will arrange for the necessary dry docking, and in the case of Navy manned vessels the Navy Department will be requested to make arrangements for prompt dry dockings so that the work of surveying both the inside and the outside of the vessel may proceed simultaneously. If it is found impossible to obtain necessary dry docking facilities, the matter will be reported to the Quartermaster General for his decision as to whether the board of survey shall delay its findings until dry docking is had or whether the board shall submit a partial recommendation. In every case, however, unless specific instructions to the contrary are given, the report of the board of survey should cover fully in its recommendation the disposition of all claims for damages incurred on the vessel.

(j) Alterations and additions. Inquiry should be made as to whether or not any repairs or additions have been made to the vessel by which its condition has been bettered, and if so the value of these betterments so that the proper credit may be taken by the Government in the settlement. For example: Winches may have been installed by the Government and not taken off at redelivery. The mere fact that the removal of such installations might cost more than would be their value after removal is no reason for not crediting the Government with their value if they are left on board and are an improvement to the vessel. In case a money allowance is made to the owners for their removal, the Government should receive credit for the value they will have after removal, or provision should be made that they be turned over to the proper Government department. In the case of gun mounts, gun crew's quarters, etc.,

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it is particularly necessary to establish by testimony, as nearly as possible, the date of installation in order that the responsibility for removal may be properly placed.

(k) Seaworthiness. Inquiry should be made as to whether or not at the time of delivery to the Army repairs were made to render the vessel seaworthy, and for which a reduction should be made by the War Department in any settlement made by the owners. The facts in connection with this should be ascertained and reported together with such information as is obtainable as to whether notice for the necessity of these repairs was brought to the attention of the owners at the time. In some cases the Government has possibly waived its right to collect for these seaworthy repairs but the facts in connection should be shown in the report, and the charter will be followed as to charging them to owner's account in the absence of other facts. (1) Consumable stores and inventory. The board should examine carefully the survey, the statement of consumable stores and inventory made at the time the vessel was originally taken over. Awards made by the inventory board should be closely scrutinized to avoid duplication of any items by allowing them as restoration on the report of survey.

(m) Fair wear and tear. In determining lump sum for damages or in considering just and reasonable repairs to place the vessel in same condition as when received, no payment or repairs will be made where damages result from fair wear and tear.

(n) Dock trial. In redelivery the dock trial should be in the presence of old and new engine departments.

(0) Points to be included in report of board of survey. The report of the board of survey will include the following:

(1) A brief statement of the time, place, and character of the inspection made by the board of survey in arriving at the conclusions reached in their report.

(2) A brief history of the vessel, showing when and where it was received into the War Department service, under what circumstances, and charter arrangements; the use of the vessel in the Army service; the general condition of the vessel at the time of its delivery to the Army compared with condition of redelivery; a statement showing what property and equipment have been installed by the War Department during its use of the vessel.

(3) An itemized statement of the repairs necessary to put the vessel in condition required by charter and the lump sum regarded as just compensation for the damage thus occasioned to the vessel and recommended to be paid in lieu of repairs, giving such detail as will clearly indicate the reason for the action of the survey board.

(4) In case repairs are to be made a statement that these repairs cover only damage done to the vessel while in the War Department service and required to place the vessel in the same or as good condition as that in which she was taken over for operation for the War Department, ordinary wear and tear excepted.

(5) In the event that a money payment is recommended by the board covering the time the vessel is undergoing repairs, a statement that such payment covers the loss of services of the vessel dur

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ing such time repairs are being accomplished. This figure should be arrived at independently of charter hire and in no case should exceed the sum equal to the charter hire for the period which the board estimates necessary to accomplish such repairs.

(p) Forwarding report of board. The report of the board of survey will be forwarded to the Quartermaster General through the officer in charge of the port. The latter will forward with the report any recommendation he may wish to make thereon. If the report is considered complete by the Quartermaster General it may be referred to the Judge Advocate General for review and legal opinion, in case there are any unusual features or any legal points involved which the latter has not already passed upon. In the event that the report is not complete or in proper shape, the Quartermaster General will take such action as he may deem necessary to have the report completed. Final action will be taken on all reports by the Quartermaster General acting for the Secretary of War. The Quartermaster General will also take the necessary steps to cause any payments to be made to the owners which he may approve on these reports.*t [Pars. 8-23]

ARREST AND CONFINEMENT OF PERSONS NOT SUBJECT TO MILITARY LAW: See Army: War Department, 10 CFR Part 3.

ARREST AND DEPORTATION: See Aliens and Citizenship, 8 CFR Part 19. AVIATION: See Civil Aviation, 14 CFR Chapter I.

AVIATION RADIO SERVICES: See Telecommunication, 47 CFR Part 9.

AWARDS, PAYMENTS: See Money and Finance: Treasury, 31 CFR Parts 245, 247-249, 251, 252.

BANKING: See Banks and Banking, 12 CFR Chapters I, II, III.

*For statutory citation, see note to § 92.1.

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TITLE 11-BANKRUPTCY

EDITORIAL NOTE: This title, corresponding to "Title 11-Bankruptcy" in the United States Code, is reserved in contemplation of the possibility that, in a more comprehensive edition of this codification, it may be desirable to include the bankruptcy rules in this title. Under the Federal Register Act, as amended (50 Stat. 304; 44 U.S.C., Sup., 311), these rules are not included, since they are issued by agencies of the judicial branch of the Government.

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