An Act to authorize the Territory of Alaska to incur indebtedness, and for other purposes
PL 84-516 (H.R.4781), enacted 05/10/1956

70 S T A T . ] 
PUBLIC LAW 5ie-MAY 10, 1956 
149 
the operation of the subsidized vessels, services, routes, and lines, 
the contractor shall pay to the United States an amount equal 
to one-half of such profits in excess of 10 per centum per annum 
as partial or complete reimbursement for operating-differential 
subsidy payments received by the contractor for such recapture 
period, but the amount of excessive profit so recaptured shall not 
m any case exceed the amount of the operating-differential subsidy 
payments theretofore made to the contractor for such period 
under such contract or consecutive contracts and the repayment 
of such reimbursement to the Commission shall be subject to the 
provisions of section 607;" 
SEC. 2. Each operating-differential subsidy contract in force on the contTacfs*"*"** °' 
date of enactment of this Act shall, if the subsidized contractor con-
sents, be amended to conform to the provisions of section 606 of the 
Merchant Marine Act, 1936, as amended by section 1 of this Act. 
Approved May 10, 1956. 
Public Law 516 
CHAPTER 248 
AN ACT 
„ 
,„ ,„,,. 
May 10, 195 I
S 
To authorize the Territoi-y of Alaska to incur indebtedness, and for other 
[H. R. 4781] 
purposes. 
Be it enacted hy the Senate and House of Repi'esentatives 
of the 
United States of America in Congress assembled^ That the Territory 
piM?<?improve-
of Alaska is autliorized and empowered, notwitlistanding any pro- ment bonds; 
vision of the Organic Act of Alaska or any other Act of Congi-ess to 
the contrary, to borrow on the credit of the Territory from time to 
time such sums as may be necessary for constructing, altering, equip-
ping, or acquiring public improvements including, but without limita-
tion, schools, hospitals, colleges, offices, prisons, and other public build-
ings, and roads, water and sewer systems, wharves, docks, bridges, and 
other public facilities, and to issue bonds of the Territory for such 
borrowings. Such bonds shall be issued only by authorization of the 
Territorial legislature, shall bear such rates of interest as may be 
authorized by the law under which the bonds are issued, and shall be 
sold for not less than their principal amount plus accrued interest. 
The principal amount of such bonds outstanding at any one time shall 
not exceed $20,000,000. The faith of the Territory shall be solemnly 
pledged to the payment of all such bonds according to their terms. 
SEC, 2. No such bonded debt shall be contracted unless it shall be 
authorized by Territorial law for one or more public improvements, 
whicli shall be distinctly specified in such law. No such bonded debt 
shall be contracted for a period longer than the probable life of the 
works of improvement for which the debt is to be contracted nor, in 
any event, for a period longer than thirty years. A determination of 
such probable life provided by either a special or general law of the 
Territory in effect at the time the debt is contracted shall be conclusive. 
SEC. 3. The bonds provided for in this Act shall be serial bonds the 
maturities of which shall be so scheduled as to provide for the pay-
ment of the principal of each issue of bonds in annual installments, 
Avhich need not be equal. The earliest-maturing bonds of each issue 
shall become payable not more than three years from the date of the 
issue, and the latest-maturing bonds of each issue shall become pay-
able before or upon the expiration of the probable life of the works 
of improvement for which the issue was made and, in any event, not 
more than thirty years from the date of the issue. The privilege of 
redeeming all or any part of the bonds of each issue prior to the 
^ 5 0 
PUBLIC LAW 516-MAY 10, 1956 
[70 S T A T . 
Emergencies. 
Issuance as ne-
g o t i a b l e instru-
ments* 
Tax levy, etc. 
Guar ante e of 
payment. 
dates on which they respectively become due may be reserved to the 
Territory on such terms and conditions, which may include the pay-
ment of a premium, as may be prescribed by the law authorizing the 
issuance of the bonds. The Territorial legislature may provide means 
and authority whereby any such debt may be refunded, in accordance 
with any privilege of redemption reserved to the Territory, but any 
debt incurred for refunding purposes shall be payable in annual install-
ments so scheduled as not to extend by more than six months the ma-
turity of any portion of the debt so refunded. 
SEC. 4. The Territory of Alaska is authorized and empowered, not-
withstanding any provision of the Organic Act or any other Act of 
Congress to the contrary, to borrow on the credit of the Territory from 
time to time, when the legislature of the Territory is not in session, 
such sums as may be necessary to meet emergencies for which funds are 
not made available by appropriation or otherwise, and to issue certifi-
cates of indebtedness of the Territory for such borrowings. 
Such 
certificates of indebtedness shall be issued only by authorization of the 
Territorial legislature, shall bear interest at not more than the com-
mercial interest rate, shall be sold for not less than their principal 
amount, shall become payable at such time or times, not later than one 
month subsequent to the date of convening of the succeeding regular 
session of the legislature, as the Territorial treasurer or other officer 
designated by the law authorizing the issuance of such certificates may 
prescribe, and shall be subject to redemption by the Territory prior to 
their maturity. 
The principal amount of such certificates of indebted-
ness outstanding at any one time shall not exceed the sum by which 
the principal amount of the bonds then outstanding under this Act 
is less than $20,000,000 and shall not, in any event, exceed $200,000. 
The term "emergencies" as used in this section shall be defined by Ter-
ritorial law and the Governor shall be empowered to apply, and shall 
determine the application of, such definition. 
The faith of the Ter-
ritory shall be solemnly pledged to the payment of all such certificates 
of indebtedness according to their terms. 
SEC. 5. The bonds and certificates of indebtedness provided for in 
this Act may be issued as negotiable instruments and, when so issued, 
shall be treated as negotiable instruments for all purposes. 
Such 
bonds or certificates of indebtedness may bear such date or dates, may 
be in such denominations, may carry such registration privileges, may 
be executed by such persons and in such manner, and may be subject 
to such other terms and conditions as may be prescribed, consistently 
with the requirements of this Act, by the laws authorizing their issu-
ance, and shall be offered for sale on a competitive basis. 
SEC. 6. The Territorial legislature shall provide in the law author-
izing any such bonds or certificates of indebtedness, and thereafter, for 
the payment of the interest upon and the principal of such bonds or 
certificates of indebtedness as the same shall fall due, by the levy of an 
adequate tax or otherwise, and by seasonable appropriation for pay-
ment. 
If at the time when any such interest or principal falls due 
sufficient moneys have not been appropriated to pay the same, the 
Territorial treasurer shall pay such interest or principal out of the 
first revenues thereafter received by him that are applicable to the 
general funds of the Territory. 
SEC. 7. The Territory of Alaska is authorized and empowered not-
withstanding any provision of the Organic Act or any other Act of 
Congress to the contrary, to guarantee payment of bonds issued by 
municipalities, school districts and public utility districts in Alaska 
for constructing, altering, equipping, or acquiring public improve-
ments of the nature for which the Territory may issue bonds in an 
aggregate amount which shall not at any one time exceed the sum by 
70 
S T A T . ] 
PUBLIC LAW 519-MAY 10, 1956 
151 
which the principal amount of Territorial bonds and certificates of 
indebtedness then outstanding under this Act is less than $20,000,000. 
The authority to guarantee bonds of such subdivisions shall be exer-
cised in a manner prescribed in section 2 of this Act. 
Approved May 10, 1966. 
Public Law 517 
CHAPTER 256 
AN ACT 
To terminate the prohibition against employment of Mongolian labor in the 
construction of reclamation projects. 
Be it enacted hy the Senate and House of Rejyresentatives 
of the 
United States of America in Congress assembled, That section 4 of the 
Reclamation Act of June 17, 1902 (32 Stat. 389), is hereby amended 
by inserting a period in lieu of the comma after the word "work" in 
the proviso of that section and striking out the folloAving language: 
"and no Mongolian labor shall be employed thereon.". 
Approved May 10, 1956. 
May 10, 1956 
[H. R. 1603] 
43 u s e 419. 
Public Law 518 
CHAPTER 257 
AN ACT 
To amend section 40 of the Bankruptcy Act, so as to increase salaries for part-
time and full-time referees. 
May 10, 1956 
[H. R. 4791] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 40a 
(11 U. S. C. 68 (a)) of the Bankruptcy Act approved July 1, 1898, 
as amended, is amended to read as follows: 
"SEC. 40. COMPENSATION OF REFEREES; REFEREES' SALARY AND EX-
PENSE FUNDS ; RETIREMENT OF REFEREES, 
a. Referees shall receive as 
full compensation for their services salaries to be fixed by the con-
ference, in the li^ht of the recommendations of the councils, made 
after advising with the district judges of their respective circuits, 
and of the Director, at rates not more than $15,000 per annum for 
full-time referees, and not more than $7,500 per annum for part-
time referees. 
In fixing the amount of salary to be paid to a referee, 
consideration shall be given to the average number and the types of, 
and the average amount of gross assets realized from, cases closed 
and pending in the territory which the referee is to serve, during the 
last preceding period of ten years, and to such other factors as may 
be material. 
Disbursement of such salaries shall be made monthly by 
or pursuant to the order of the Director." 
Approved May 10, 1956. 
Bankruptcy Act* 
Amendment. 
66 Stat. 438. 
Public Law 519 
CHAPTER 258 
AN ACT 
To require the insi>ection and certification of certain vessels carrying passengers. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled, That when used in 
this Act, unless tlie context requires otherwise— 
(a) The term "passenger" means every person carried on board a 
passenger-carrying vessel other than— 
May 10, 1956 
[H. R. 7952] 
Vessels. 
Definitions.