An Act to authorize the long-term time chartering of tankers and the construction of tankers by the Secretary of the Navy, and for other purposes
PL 83-575 (S.3458), enacted 08/10/1954

68 
S T A T . ] 
PUBLIC LAW 575~AUG. 10, 1954 
681 
"In no event shall the amount of credit allowed under this subsection 
or subsection (d) for a traded-in tanker exceed the price paid by the 
owner for such tanker, plus the cost of any additions or betterments 
to the tanker capitalized by such owner and allowed for income-tax 
purposes. 
"If an owner uses any tanker traded in pursuant to this section sub-
sequent to the date of the contract for construction of a new tanker, 
the allowance determined shall be reduced by an amount equal to 
depreciation for the period of such use and computed in accordance 
with the schedule adopted or accepted by the Internal Kevenue Serv-
ice. Title to the traded-in tanker shall in all instances vest in the 
United States, and the allowance of credit shall be applied at the 
time of physical delivery of such tanker to the United States, which 
shall be no later than ninety days after delivery of the new tanker. 
The traded-in tanker shall thereupon be placed in the national defense 
reserve subject to the provisions of section 11 of the Merchant Ship 
Sales Act of 1946, as amended." 
Approved August 10, 1954. 
Restriction. 
Title, 
50 U S C 
1744. 
Public Law 575 
C H A P T E R 665 
AN ACT 
To authorize the long term time chartering of tankers and the construction of 
tanljers by the Secretary of the Navy, and for other purposes. 
August 10, 1954 
[S. 3458] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assenibled^ That (a) the Secre-
tary of the Navy or such officer as he shall designate is authorized to 
enter into contracts upon such terms as the Secretary of the Navy shall 
determine to be in the best interests of the Government for the time 
charter to the Navy of not to exceed fifteen tankers not now in being 
for periods of not more than ten years to commence upon tender of 
the tankers for service after completion of construction. 
The Secre-
tary of the Navy shall (1) award such contracts on a competitive basis 
to the lowest responsible bidder, and (2) give preference to operators 
who are exclusively engaged in the operation of American flag ships. 
(b) The hire stipulated with respect to any tanker in any charter 
party entered into under this section shall not exceed an average rate 
for the life of the charter party of $5 per deadweight ton per month: 
Provided^ That such average rate will not result in the recovery of more 
than two-thirds of the construction cost of such tanker. 
(c) No contract shall be entered into by the Secretary of the Navy 
pursuant to the provisions of this section unless the contractor agrees 
(1) that during the period of such contract he will not transfer to 
foreign registry any tanker owned by him at the time of entering into 
such contract, and (2) that the tanker or tankers contracted for shall 
remain under United States registry during the period in which such 
tanker or tankers are under charter to the United States. 
(d) Any contract entered into pursuant to this section shall grant to 
the Secretary of the Navy an option to purchase any tanker chartered 
pursuant to this section at the expiration of such contract at its then 
depreciated value or fair market value, whichever is less, and shall 
contain a provision that such option shall not be exercised later than one 
year prior to the expiration of such contract. 
SEC. 2. The President is authorized to undertake the construction of 
not to exceed five tankers, and there is hereby authorized to be appro-
priated not to exceed $37,500,000 for such purpose. 
T a n k e r ! 
Navy. 
Charter. 
f o r 
Hire. 
U. S. registry. 
Pure has e opt ion, 
Construction. 
Appropriation. 
682 
PUBLIC LAW 576-AUG. 10, 1954 
[68 STAT. 
Requirements. 
^-^0. 3. All tankers coDstructed pursuant to sections 1 and 2 of this 
Act shall be approximately twenty-five thousand deadweight tons each, 
shall have a speed of not less than eighteen knots, and shall be con-
structed in private shipyards within the continental tFnited States. 
The construction of the tankers shall be, so far as practicable, of 
materials and equipment produced or manufactured in the United 
States. 
Not more than three tankers authorized by this Act shall be 
constructed in any one shipyard. 
Approved August 10, 1954. 
August 10, 1954 
[S. 3683] 
Public Law 576 
CHAPTER 666 
AN ACT 
To amend the District of Columbia Credit Unions Act. 
D. C. 
c r e d i t 
unions. 
47 Stat. 327. 
D. C. Code 26-
504. 
D. C. Code 26-
506. 
Supervision. 
Reports. 
D. 
C. 
505. 
Code 26-
Examination. 
D. C. Code 26-
505. 
License. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Corigress assembled, That section 4 of 
the District of Columbia Credit Unions Act is hereby amended by 
striking out "Comptroller of the Currency" and inserting in lieu 
thereof "Director of the Bureau of Federal Credit Unions". 
SEC. 2. Section 6 of such Act is hereby amended to read as follows: 
"SEC. 6. (a) Credit unions established under this Act shall be under 
the supervision of the Director of the Bureau of Federal Credit 
Unions. 
They shall make such financial reports to him (at least 
annually) as he may require. 
"(b) Not later than January 31 of each calendar year each credit 
union established under this Act shall pay to the Bureau of Federal 
Credit Unions, for the preceding calendar year, a supervision fee in 
accordance with the scale prescribed for Federal credit unions. All 
such fees shall be deposited with the Treasurer of the United States 
for the account of the Bureau in the special fund created by section 5 
of the Federal Credit Union Act and may be expended by the Director 
for such administrative and other expenses incurred in carrying out 
the provisions hereof as he may determine to be proper, the purpose 
of such fees being to defray, as far as practical, the administrative and 
supervisory costs of the Bureau incident to the execution of its func-
tions under this Act. 
"(c) Each credit union established under this Act shall be subject 
to examination by, and for this purpose shall make its books and 
records accessible to, any person designated by the Director. 
The 
scale of examination fees prescribed for Federal credit unions shall 
also be applicable to credit unions established under this Act which 
fees shall be assessed against and paid by each credit union established 
under this Act promptly after the completion of such examination. 
Examination fees collected under the provisions of this section shall 
be deposited to the credit of the special fund created by section 5 of 
the Federal Credit Union Act, and shall be available for the purposes 
specified in subsection (b) of this section. 
"(d) It shall be unlawful for any credit union established under this 
Act to transact business in the District of Columbia without procuring 
a license from the District of Columbia; and all such credit unions 
shall pay a license tax of $5 per annum to the District of Columbia. 
No license shall be granted for a longer period than one year: Pro-
vided, That the Commissioners of the District of Columbia may sus-
pend or revoke a license upon proof of the bankruptcy or insolvency 
of any such credit union or upon conviction of a violation of any pro-
vision of this Act or any law or regulation of the District of Columbia 
or of the United States."