An Act to amend section 40 of the Bankruptcy Act, so as to increase salaries for part-time and full-time referees
PL 84-518 (H.R.4791), enacted 05/10/1956

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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. 
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PUBLIC LAW 519-MAY 10, 1956 
[70 ST A T . 
3 UST 3450. 
Inspection* 
Fees. 
Rules and regu-
lations. 
(1) the OAvner or his representative; 
(2) the master and the bona fide members of the crew engaged 
in the business of the vessel who have contributed no considera-
tion for their carriage and who are paid for their services; 
(3) any employee of the owner of the vessel engaged in the 
business of the owner, except when the vessel is operating under 
a bareboat charter; 
(4) any employee of the bareboat charterer of the vessel en-
gaged in the business of the bareboat charterer; 
(5) any guest on board a vessel which is being used exclusively 
for pleasure purposes who has not contributed any consideration, 
directly or indirectly, for his carriage; or 
(6) any person on board a vessel documented and used for 
tugboat or towboat service of fifty ^ross tons or more who has 
not contributed any consideration, directly or indirectly, for his 
carriage. 
(b) The term "passenger-carrying vessel" means any vessel which 
carries more than six passengers, and which is (1) propelled in whole 
or in part by steam or by any form of mechanical or electrical power 
and is of fifteen gross tons or less; (2) propelled in w^hole or in part by 
steam or by any form of mechanical or electrical power and is of 
more than fifteen and less than one hundred gross tons and not more 
than sixty-five feet in length measured from end to end over the deck 
excluding sheer; (3) propelled by sail and is of seven hundred gross 
tons or less; or (4) non-self-propelled and is of one hundred gross 
tons or less; except any public vessel of the United States or of any 
foreign state, or any lifeboat forming part of a vessel's lifesaving 
equipment. The term includes (1) any domestic vessel operating on 
the navigable waters of the United States, or on the high seas outside 
of those waters and Avithin the normal operating range of the vessel, 
and (2) any foreign vessel departing from a port of the United States. 
(c) The term "International Convention for Safety of Life at Sea" 
means the "International (Convention for Safety of Life at Sea, 1948" 
or any similar international convention which comes into force and 
effect after ratification by the United States Senate. 
(d) The term "Secretary" means the Secretary of the department 
in which the Coast Guard is operating. 
SEC. 2. (a) The Secretary shall, at least once every three years, 
cause to be inspected each passenger-carrying vessel, and shall satisfy 
himself that every such vessel (1) is of a structure suitable for the 
service in which it is to be employed; (2) is equipped with the proper 
appliances for lifesaving and fire protection in accordance with appli-
cable laws, or rules and regulations prescribed by him; (3) has 
suitable accommodations for passengers and the crew; and (4) is in 
a condition to warrant the belief that it may be used, operated, and 
navigated with safety to life in the proposed service and that all 
applicable requirements of marine safety statutes and regulations 
thereunder are faithfully complied with. 
(b) The Secretary may prescribe reasonable fees or charges for (1) 
any inspection made and (2) any certificate, license, or permit issued 
pursuant to this Act or the rules and regulations established here-
under. 
SEC. 3. In order to secure effective provision against hazard to life 
created by passenger-carrying vessels and to carry out in the most 
effective manner the provisions of this Act, the Secretary shall pre-
scribe such rules and regulations as may be necessary with respect to 
design, construction, alteration, or repair of such vessels, including 
the superstructures, hulls, accommodations for passengers and crew, 
fittings, 
equipment, appliances, propvilsive machinery, 
auxiliary 
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PUBLIC LAW 519-MAY 10, 1956 
153 
machinery, and boilers; with respect to all materials used in construc-
tion, alteration, or repair of such vessels including the fire prevention 
and fire retardant characteristics of such materials; with respect to 
equipment and appliances for lifesaving and fire protection; with 
respect to the operation of such vessels, including the waters in which 
they may be navigated and the number of passengers which they may 
carry; with respect to the requirements of the manning of such vessels 
and the duties and qualifications of the operators and crews thereof; 
and with respect to the inspection of any or all the foregoing. 
SEC, 4. (a) No passenger-carrying vessel shall be operated or navi-
gated until a certificate of inspection in such form as may be prescribed 
by the regulations promulgated by the Secretary under the authority 
of this Act, has been issued to the vessel indicating that the vessel is 
in compliance with the provisions of this Act, and the rules and regu-
lations established hereunder; except that when a foreign passenger-
carrying vessel belongs to a nation which is signatory to the Interna-
tional Convention for Safety of Life at Sea, a valid safety certificate 
issued to the vessel pursuant to the Convention may be accepted in lieu 
of the required certificate of inspection. 
(b) Any passenger-carrying vessel to which a valid certificate of 
inspection has been issued pursuant to this section shall during the 
tenure of the certificate be in full compliance with the terms of the 
certificate. 
(c) A certificate of inspection issued pursuant to this section may at 
any time be voluntarily surrendered and shall be withdrawn and sus-
pended or revoked for noncompliance with any applicable require-
ments of this Act or regulations thereunder. 
SEO. 5. Any owner, master, or person in charge of any vessel subject 
to this Act who violates the provisions of this Act, or the rules and 
regulations established hereunder, shall be liable to the United States 
in a penalty of not more than $1,000 for each such violation, for 
which sum the passenger-carrying vessel shall be liable and may be 
seized and proceeded against by way of libel in any district court of 
the United States having jurisdiction of the violation. 
SEC. 6. (a) The Act of January 18, 1897 (29 Stat. 489; 46 U. S. C. 
520), is hereby repealed. 
(b) Section 4426 of the Revised Statutes, as amended (34 Stat. 193; 
46 U. S. C. 404), is amended to read as follows: 
"4426. The hulls and boilers of every ferryboat, canal boat, yacht 
or other small craft of like character propelled by steam, shall be in-
spected under the provisions of this title. Such other provisions of 
law for the better security of life as may be applicable to such vessels 
shall, by the regulations of the Secretary of the department in which 
the Coast Guard is operating, also be required to be complied with be-
fore a certificate of inspection shall be granted, and no such vessel 
shall be navigated without a licensed engineer and a licensed pilot: 
Provided^ That in open steam launches of ten gross tons and under, 
one person, if duly qualified, may serve in the double capacity of pilot 
and engineer. 
All vessels of above fifteen gross tons carrying freight 
for hire and all vessels of above fifteen gross tons and in excess of 
sixty-five feet in length carrying passengers for hire, but not engaged 
in fishing as a regular business, propelled by gas, fliuid, naphtha, or 
electric motors, shall be subject to all the provisions of this section 
relating to the inspection of hulls and boilers and requiring engineers 
and pilots, and for any violation of the provisions of title 52 of the 
Revised Statutes applicable to such vessels, or of rules or regulations 
lawfully established thereunder, and to the extent to which such pro-
visions of law and regulations are so applicable, the said vessels, their 
Certificate of in:' 
spection< 
3 UST 3450. 
Withdrawal, etc. 
Violations. 
Penalty. 
46 u s e 170 note. 
154 
PUBLIC LAW 519-MAY 10, 1956 
[70 
S T A T . 
Op er at or B' 
cense* 
Effective date. 
Appropri 
ation. 
Separability. 
masters, officers, and owners shall be subject to the provisions of sec-
tions 4496, 449Y, 4498, 4499, and 4500 of the Revised Statutes, as 
amended (46 U. S. C. 494-498), relating to the imposition and enforce-
ment of penalties and the enforcement of law: Provided^ however^ 
That until June 30,1956, no vessel registered or licensed as a vessel of 
the United States of fifteen gross tons or less on December 31, 1953, 
shall be deemed to be subject to the inspection provisions of this sec-
tion notwithstanding the fact that such vessel may thereafter be found 
to have a tonnage in excess of fifteen gross tons, unless such finding 
results from an alteration in the length, breadth, or depth effected 
after December 31, 1953." 
(c) Section 7 of the Act of April 25, 1940, as amended (54 Stat. 
165; 46 U. S. C. 526f), is amended to read as follows: 
"SEC. 7. No such motorboat, and no other vessel of fifteen gross tons 
or less propelled by machinery other than steam, while carrying pas-
sengers for hire, shall be operated or navigated except in charge of a 
person duly licensed for such service by the Secretary of the depart-
ment in which the Coast Guard is operating. Whenever any person 
applies to be licensed as operator of any motorboat, or of any other 
vessel of fifteen gross tons or less propelled by machinery, carrying 
passengers for hire, the Secretary shall make diligent inquiry as to 
his character, and shall carefully examine the applicant orally as 
well as the proofs which he presents in support of his claim, and if 
the Secretary is satisfied that his capacity, experience, habits of living, 
and character are such to warrant the belief that he can safely be 
entrusted with the duties and responsibilities of the station for which 
he makes application, the Secretary shall grant him a license author-
izing him to discharge such duties on any such motorboat, or on any 
other vessel of fifteen gross tons or less propelled by machinery, carry-
ing passengers for hire, for the term of five years. Such license shall 
be subject to suspension or revocation on the same grounds and in 
the same manner with like procedure as is provided in the case of 
suspension or revocation of licenses of officers under the provisions 
of section 4450 of the Revised Statutes, as amended (U. S. C. 1952 
edition, title 46, sec. 239) : Provided^ That motorboats and other 
vessels of fifteen gross tons or less propelled by machinery shall not 
be required to carry licensed officers except as required in this Act: 
And provided further^ That licenses herein prescribed shall not be 
required of motorboats or of any other vessels of fifteen gross tons 
or less propelled by machinery engaged in fishing contests previously 
arranged and announced." 
SEC. 7. Nothing contained in this Act shall be deemed to amend, 
alter, or otherwise affect the requirements of any International Con-
vention for Safety of Life at Sea. 
SEC. 8. This Act shall become effective on January 1, 1957, or on 
the first day of the sixth month following the prescription of rules 
and regulations by the Secretary under section 3, hereof, whichever 
is later. 
SEC. 9. There are hereby authorized to be appropriated such sums 
as may be necessary to carry out the provisions of this Act. 
SEC. 10. If any provisions of this Act, or the application of any 
provision of this Act to any person or circumstance is held invalid, 
the application of such provision to other persons or circumstances, 
and the remainder of this Act, shall not be affected thereby. 
Approved May 10, 1956.