be documented under the laws of the United States, (7) the vessel will be of advance design, which will enable it to operate in expanded areas, and be equipped with newly developed gear, and will not operate in a fishery, if such operation would cause economic hardship to efficient vessel operators already operating in that fishery, and (8) such other conditions as the Secretary may consider to be in the public interest. (Pub. L. 86-516, § 2, June 12, 1960, 74 Stat. 212; Pub. L. 88-498, § 2(2), Aug. 30, 1964, 78 Stat. 614.)

AMENDMENTS

1964-Pub. L. 88-498 required the Secretary to determine that the vessel will be of advance design, which will enable it to operate in expanded areas, and be equipped with newly developed gear, and will not operate in a fishery, if such operation would cause economic hardship to efficient vessel operators already operating in that fishery.

§ 1403. Approval of application; contract for payment of subsidy.

If the Secretary, in the exercise of his discretion, after notice and hearing, determines that the granting of a subsidy applied for is reasonably calculated to carry out the purposes of this chapter, he may approve such application and enter into a contract or contracts with the applicant which will provide for payment by the United States of a construction subsidy in accordance with the purposes and provisions of this chapter and in accordance with any other conditions or limitations which may be prescribed by the Secretary. (Pub. L. 86-516, § 3, June 12, 1960, 74 Stat. 212; Pub. L. 88-498, § 2(3), Aug. 30, 1964, 78 Stat. 614.)

AMENDMENTS

1964-Pub. L. 88-498 inserted words "after notice and hearing" preceding "determines."

§ 1404. Repealed. Pub. L. 88-498, § 2(4), Aug. 30, 1964, 78 Stat. 614.

Section, Pub. L. 86–516, § 4, June 12, 1960, 74 Stat. 212, related to the operation of fishing vessels in fisheries suffering injury.

§ 1405. Cost determination and limitation.

The construction subsidy which the Secretary may pay with respect to any fishing vessel under this chapter shall be an amount equal to the difference, as determined by the Maritime Administrator, between the cost of constructing such vessel in a shipyard in the United States based upon the lowest responsible domestic bid for the construction of such vessel and the estimated cost, as determined by the Maritime Administrator, of constructing such vessel under similar plans and specifications in a foreign shipbuilding center which is determined by the Maritime Administrator to furnish a fair and representative example for the determination of the estimated total cost of constructing a vessel of the type proposed to be constructed, but in no event shall the subsidy exceed 50 per centum of the cost of constructing such vessel in a shipyard in the United States based upon the lowest responsible domestic bid excluding the cost of any features incorporated in the vessel for national defense uses, which shall be paid by the Department of Defense in addition to the subsidy. For the purposes of this section, the Maritime Administrator shall de

termine, and certify to the Secretary, the lowest responsible domestic bid. (Pub. L. 86-516, § 5, June 12, 1960, 74 Stat. 213; Pub. L. 88-498, § 2(5), Aug. 30, 1964, 78 Stat. 614.)

AMENDMENTS

1964-Pub. L. 88-498 substituted "50 per cent" for "33 per centum."

§ 1406. Supervision of construction; submission of plans to Secretary of Defense.

Any fishing vessel for which a construction subsidy is paid under this chapter shall be constructed under the supervision of the Maritime Administrator. The Maritime Administrator shall submit the plans and specifications for the proposed vessel to the Department of Defense for examination thereof and suggestions for such changes therein as may be deemed necessary or proper in order that such vessel shall be suitable for economical and speedy conversion into a naval or military auxiliary or otherwise suitable for the use of the United States Government in time of war or national emergency. If the Secretary of Defense approves such plans and specifications as submitted, or as modified, in accordance with the provisions of this subsection, he shall certify such approval to the Administrator. No construction subsidy shall be paid by the Secretary under this chapter unless all contracts between the applicant for such subsidy and the shipbuilder who is to construct such vessel contain such provisions with respect to the construction of the vessel as the Maritime Administrator determines necessary to protect the interests of the United States. (Pub. L. 86-516, § 6, June 12, 1960, 74 Stat. 213.) § 1407. Conditions of construction.

All construction with respect to which a construction subsidy is granted under this chapter shall be performed in a shipyard in the United States as a result of competitive bidding, after due advertising, with the rights reserved in the applicant, and in the Maritime Administrator, to disapprove any or all bids. In all such construction the shipbuilder, subcontractor, material men, and suppliers shall use, so far as practicable, only articles, materials, and supplies of the growth, production, and manufacture of the United States as defined in section 1401 (k) of Title 19. No shipbuilder shall be deemed a responsible builder unless he possesses the experience, ability, financial resources, equipment, and other qualifications necessary properly to perform the proposed contract. The submitted bid shall be accompanied by all detailed estimates on which it is based, and the Maritime Administrator may require that the builder or any subcontractor submit any other pertinent data relating to such bids. (Pub. L. 86-516, § 7, June 12, 1960, 74 Stat. 213.)

§ 1408. Acquisition of ownership by United States; payment for vessel; finality of determination. (a) Every contract executed by the Secretary pursuant to section 1403 of this title shall provide that in the event the United States shall, through purchase or requisition, acquire ownership of any fishing vessel on which a construction subsidy was paid, the owner shall be paid therefor the value thereof, but in no event shall such payment exceed the actual depreciated construction cost thereof

(together with the actual depreciated cost of capital improvements thereon) less the depreciated amount of construction subsidy theretofore paid incident to the construction of such vessel, or the fair and reasonable scrap value of such vessel as determined by the Maritime Administrator, whichever is the greater. Such determination shall be final. In computing the depreciated value of such vessel, depreciation shall be computed on each vessel on the schedule accepted or adopted by the Internal Revenue Service for income tax purposes.

(b) The provisions of section 1402 of this title and subsection (a) of this section relating to the requisition or the acquisition of ownership by the United States shall run with the title of each fishing vessel and be binding on all owners thereof. (Pub. L. 86-516, § 8, June 12, 1960, 74 Stat. 214.)

§ 1409. Transfer of vessels to other fisheries; vessels operated contrary to provisions of chapter; repayments.

The Secretary of the Interior, in the exercise of his discretion, after notice and hearing, may approve the transfer of a vessel constructed with the aid of a construction subsidy, whose operations have become uneconomical or less economical because of an actual decline in the particular fishery for which it was designed, to another fishery where he determines that such transfer would not cause economic hardship or injury to efficient vessel operators already operating in that fishery. If any fishing vessel constructed with the aid of a construction subsidy in accordance with the provisions of this chapter, is operated during its useful life, as determined by the Secretary, contrary to the provisions of this chapter or any regulations issued thereunder, the owner of such vessel shall repay to the Secretary, in accordance with such terms and conditions as the Secretary shall prescribe an amount not to exceed the total depreciated construction subsidy paid by the Secretary pursuant to this chapter and this shall constitute a maritime lien against such vessel. The obligations under this section shall run with the title to the vessel. (Pub. L. 86-516, § 9, June 12, 1960, 74 Stat. 214; Pub. L. 88-498, § 2(6), Aug. 30, 1964, 78 Stat. 614.)

AMENDMENTS

1964-Pub. L. 88-498 authorized the Secretary to approve the transfer of a vessel constructed with the aid of a construction subsidy, whose operations have become uneconomical or less economical because of an actual decline in the particular fishery for which it was designed, to another fishery where he determines that such transfer would not cause economic hardship or injury to efficient vessel operators already operating in that fishery, substituted provisions requiring repayment, if any fishing vessel constructed with the aid of a subsidy is operated during its useful life contrary to the provisions of this

chapter or regulations, of an amount not more than the total depreciated construction subsidy, for provisions which required repayment, if any fishing vessel was operating in any fishery other than the particular fishery for which it was designed, of an amount which bears the same proportion to the total construction subsidy paid with respect to such vessel as the proportion that the number of years during which such vessel was not operated in the fishery for which it was designed bears to the total useful life of such vessel, and inserted provisions making such repayment a maritime lien against the vessel.

§ 1410. Rules and regulations.

The Secretary shall make such rules and regulations as may be necessary to carry out the purposes of this chapter. (Pub. L. 86-516, § 10, June 12,

1960, 74 Stat. 214.)

§ 1411. Definitions.

As used in this chapter the terms

(1) "Secretary" means the Secretary of the Interior,

(2) "fishing vessel" means any vessel designed to be used in catching fish, processing or transporting fish loaded on the high seas, or any vessel outfitted for such activity,

(3) "citizen of the United States" includes a corporation, partnership, or association if it is a citizen of the United States within the meaning of section 802 of this title,

(4) "construction" includes designing, inspecting, outfitting, and equipping, and

(5) "Maritime Administrator" means the Maritime Administrator in the Department of Commerce.

(Pub. L. 86-516, § 11, June 12, 1960, 74 Stat. 214.) § 1412. Authorization of appropriations.

There is authorized to be appropriated the sum of nor more than $10,000,000 annually to carry out the purposes of this chapter. (Pub. L. 86-516, § 12, June 12, 1960, 74 Stat. 214; Pub. L. 88-498, § 2(7), Aug. 30, 1964, 78 Stat. 614.)

881-6. Repealed. July 16, 1947, ch. 256, § 1, 61 Stat. 327.

Section 1, R. S. § 5263, related to use of public domain. Section 2, R. S. § 5264, related to use of materials from public lands.

Section 3, R. S. § 5266; acts June 19, 1934, ch. 652, 601, 48 Stat. 1101; Mar. 6, 1943, ch. 10, § 6, 57 Stat. 12, related to Government priority in transmission of

messages.

Section 4, R. S. § 5267; act June 19, 1934, ch. 652, § 601, 48 Stat. 1101, related to purchase of lines.

Section 5, R. S. § 5268; act June 19, 1934, ch. 652, § 601, 48 Stat. 1101, related to acceptance of obligations to be filed.

Section 6, R. S. § 5265; act June 19, 1934, ch. 652, § 601, 48 Stat. 1101, provided that rights were not transferable. EFFECTIVE DATE OF REPEAL

Section 3 of act July 16, 1947, ch. 256, 61 Stat. 327, repealing sections 1-6 and 8 of this title, provided that act July 16, 1947 should take effect on the tenth day following July 16, 1947.

AUTHORITY OF FEDERAL COMMUNICATIONS COMMISSION; EFFECT OF REPEAL

Section 2 of act July 16, 1947, ch. 256, 61 Stat. 327, repealing sections 1-6 and 8 of this title, provided: "Nothing in this Act shall limit the authority of the Federal Communications Commission under the provisions of the Communications Act of 1934, as amended [chapter 5 of this title], to prescribe charges, classifications, regulations, and practices, including priorities, applicable to Government communications."

§ 7. Transmission of telegrams by railroads.

CODIFICATION

Section, act June 23, 1879, ch. 35, § 1, 21 Stat. 31, which was dependent upon and incorporated by reference in repealed sections 1-6 and 8 of this title which sections were repealed by act July 16, 1947, ch. 256, § 1, 61 Stat. 327, was omitted as obsolete.

§ 8. Repealed. July 16, 1947, ch. 256, § 1, 61 Stat. 327. Section, R. S. § 5269; acts Feb. 27, 1877, ch. 69, § 1, 69 Stat. 252; June 19, 1934, ch. 652, § 601, 48 Stat. 1101, related to refusal to transmit dispatches.

Page 8955

EFFECTIVE DATE OF REPEAL

Section 3 of act July 16, 1947, ch. 256, 61 Stat. 327, repealing sections 1-6 and 8 of this title, provided that act July 16, 1947, should take effect on the tenth day following July 16, 1947.

AUTHORITY OF FEDERAL COMMUNICATIONS COMMISSION; EFFECT OF REPEAL

Section 2 of act July 16, 1947, ch. 256, 61 Stat. 327, repealing sections 1-6 and 8 of this title, provided: "Nothing in this Act shall limit the authority of the Federal Communications Commission under the provisions of the Communications Act of 1934, as amended [chapter 5 of this title], to prescribe charges, classifications, regulations, and practices, including priorities, applicable to Government communications."

§ 9. Subsidized companies required to construct and operate lines.

All railroad and telegraph companies to which the United States has granted any subsidy in lands or bonds or loan of credit for the construction of either railroad or telegraph lines, which, by the acts incorporating them, or by any act amendatory or supplementary thereto, are required to construct, maintain, or operate telegraph lines, and all companies engaged in operating said railroad or telegraph lines shall, by and through their own respective corporate officers and employees, maintain, and operate, for railroad, governmental, commercial, and all other purposes, telegraph lines, and exercise by themselves alone all the telegraph franchises conferred upon them and obligations assumed by them under the acts making the grants as aforesaid. (Aug. 7, 1888, ch. 772, § 1, 25 Stat. 382.) CROSS REFERENCES

Federal Communications Commission, jurisdiction of, see section 601 of this title.

§ 10. Equal facilities to connecting lines; discrimination in rates.

Whenever any telegraph company which shall have accepted the provisions of sections 5263 to 5269, inclusive, of the Revised Statutes, prior to the effective date of the repeal of such sections, shall extend its line to any station or office of a telegraph line belonging to any one of said railroad or telegraph companies, referred to in section 9 of this title, said telegraph company so extending its line shall have the right and said railroad or telegraph company shall allow the line of said telegraph company so extending its line to connect with the telegraph line of said railroad or telegraph company to which it is extended at the place where their lines may meet, for the prompt and convenient interchange of telegraph business between said companies; and such railroad and telegraph companies, referred to in section 9 of this title, shall so operate their respective telegraph lines as to afford equal facilities to all, without discrimination in favor of or against any person, company, or corporation whatever, and shall receive, deliver, and exchange business with connecting telegraph lines on equal terms, and affording equal facilities, and without

discrimination for or against any one of such connecting lines; and such exchange of business shall be on terms just and equitable. (Aug. 7, 1888, ch. 772, § 2, 25 Stat. 383; Sept. 3, 1954, ch. 1263, § 48, 68 Stat. 1243.)

REFERENCES IN TEXT

Sections 5263 to 5269, inclusive, of the Revised Statutes, referred to in the text, were formerly classified to sections 1-6 and 8 of this title, and were repealed by act July 16, 1947, ch. 256, § 1, 61 Stat. 377.

AMENDMENTS

1954 Act Sept. 3, 1954, amended section to make it clear that the rights and obligations of companies which accepted benefits under former sections 5263-5269 of the Revised Statutes, which have been repealed, continue irrespective of the repeal.

CROSS REFERENCES

Federal Communications Commission, jurisdiction of, see section 601 of this title.

§ 11. Powers of Federal Communications Commission. If any railroad or telegraph company referred to in section 9 of this title, or company operating such railroad or telegraph line shall refuse or fail, in whole or in part, to maintain, and operate a telegraph line as provided herein, for the use of the Government or the public, for commercial and other purposes, without discrimination, or shall refuse br fail to make or continue such arrangements for the interchange of business with any connecting telegraph company, then any person, company, corporation, or connecting telegraph company may apply for relief to the Federal Communications Commission, whose duty it shall thereupon be, under such rules and regulations as said commission may prescribe, to ascertain the facts, and determine and order what arrangement is proper to be made in the particular case, and the railroad or telegraph company concerned shall abide by and perform such order; and it shall be the duty of the Federal Communications Commission, when such determination and order are made, to notify the parties concerned, and, if necessary, enforce the same by writ of mandamus in the courts of the United States, in the name of the United States, at the relation of either of said communication commissioners. The commissioners may institute any inquiry, upon their own motion, in the same manner and to the same effect as though complaint had been made. (Aug. 7, 1888, ch. 772, § 3, 25 Stat. 383; June 19, 1934, ch. 652, § 601, 48 Stat. 1101.)

TRANSFER OF FUNCTIONS

All duties, powers, and functions under this section relating to operation of telegraph lines by railroad and telegraph lines granted Government aid in the construction of their lines are imposed on and vested in the Federal Communications Commission by act June 19, 1934. See section 601 of this title.

FEDERAL RULES OF CIVIL PROCEDURE Application, see Rule 81, Title 28, Appendix, Judiciary and Judicial Procedure.

Effect of rules on this section, see note by Advisory Committee under Rule 81.

§ 12. Interference with liens of United States.

In order to secure and preserve to the United States the full value and benefit of its liens upon all the telegraph lines required to be constructed by and lawfully belonging to railroad and telegraph companies referred to in section 9 of this title, and

to have the same possessed, used, and operated in conformity with sections 9-15 of this title, it is made the duty of the Attorney General of the United States, by proper proceedings, to prevent any unlawful interference with the rights and equities of the United States under all acts of Congress relating to such railroads and telegraph lines, and to have legally ascertained and finally adjudicated all alleged rights of all persons and corporations whatever claiming in any manner any control or interest of any kind in any telegraph lines or property, or exclusive rights-of-way upon the lands of said railroad companies, or any of them, and to have all contracts and provisions of contracts set aside and annulled which have been unlawfully and beyond their powers entered into by said railroad or telegraph companies, or any of them, with any other person, company, or corporation. (Aug. 7, 1888, ch. 772, § 4, 25 Stat. 383.)

CROSS REFERENCES Federal Communications Commission, jurisdiction of, see section 601 of this title.

§ 13. Violations; punishment; action for damages. Any officer or agent of said railroad or telegraph companies, or of any company operating the railroads and telegraph lines of said companies, who shall refuse or fail to operate, the telegraph lines of said railroad or telegraph companies under his control, or which he is engaged in operating, in the manner herein directed, or who shall refuse or fail, in such operation and use, to afford and secure to the Government and the public equal facilities, or to secure to each of said connecting telegraph lines equal advantages and facilities in the interchange of business, as herein provided for, without any discrimination whatever for or adverse to the telegraph line of any or either of said connecting companies, or shall refuse to abide by or perform and carry out within a reasonable time the order or orders of the Federal Communications Commission, shall in every such case of refusal or failure be guilty of a misdemeanor, and, on conviction thereof, shall in every such case be fined in a sum of not exceeding $1,000, and may be imprisoned not less than six months; and in every such case of refusal or failure the party aggrieved may not only cause the officer or agent guilty thereof to be prosecuted under the provisions of this section, but may also bring an action for the damages sustained thereby against the company whose officer or agent may be guilty thereof, in the district court of the United States in any State or Territory in which any portion of the road or telegraph line of said company may be situated; and in case of suit process may be served upon any agent of the company found in such State or Territory, and such service shall be held by the court good and sufficient. (Aug. 7, 1888, ch. 772, § 5, 25 Stat. 384; Mar. 3, 1911, ch. 231, § 289, 36 Stat. 1167; June 19, 1934, ch. 652, § 601, 48 Stat. 1101.)

TRANSFER OF FUNCTIONS

All duties, powers, and functions under this section relating to operation of telegraph lines by railroad and telegraph lines granted Government aid in the construction of their lines are imposed on and vested in the Federal Communications Commission by act June 19, 1934. See section 601 of this title.