An Act to provide for equal treatment of all State-owned hydroelectric-power projects with respect to the taking over of such projects by the United States.
PL 86-124 (S.114), enacted 07/31/1959

73 S T A T . ] 
PUBLIC LAW 8 6 - 1 2 5 - J U L Y 31, 1959 
271 
"(7) the mortgage complies with all of the requirements of 
section 1104(a) of this Act (which defines an eligible mortgage) 
| | stat. i269. 
except subdivision 2 thereof (which specifies the maximum prin- 
Requirements, 
cipal amount of the mortgage), subdivision 3 thereof (^which compliance. 
specifies the maximum duration of the mortgage), and subdivision 
8 thereof (which specifies the purpose of the loan secured by the 
mortgage) ; 
"(8) the mortgaged vessel shall be in class A-1, American ic^^*.^ ^'^^*"^"' 
Bureau of Shipping, with all required certificates, including but 
not limited to marine inspection certificates of the United States 
Coast Guard, with all outstanding requirements and recommenda-
tions necessary for retention of class accomplished, unless the 
Secretary of Commerce permits a deferment of such repairs, and 
shall be tight, stanch, strong and well and sufficiently tackled, 
appareled, furnished and equipped^ and in every respect sea-
worthy and in good running condition and repair and in all 
respects fit for service." 
SEC. 2. Section 1104(a) (2) of the Merchant Marine Act, 1936, as 
'^^ "^c 1274, 
amended, is amended by striking out of the proviso the words: 
"That in the case of 'a vessel, the size and speed of which are 
approved by the Secretary of Commerce, which is eligible for mort-
gage aid" and inserting in lieu thereof the words: "That in the case of 
a vessel, the size and speed of which are approved by the Secretary 
of Commerce, and which is, or in the case of a vessel to be recon-
structed or reconditioned would have been, eligible for mortgage aid 
for construction". 
Approved July 31, 1959. 
Public Law 86-124 
AN ACT 
juiv3i,i9i 
To provide for equal treatment of all State-owned hydroelectric power projects 
L^' ^^^^ 
with respect to the taking over of such projects by the United States. 
power projects. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Act en- ^}}X.flZ.1^ l''^^^^ 
titled "An Act to facilitate the development and construction of 
water conservation facilities by States and municipalities, and for 
other purposes", approved August 15,1953 (Public Law 278, Eighty-
third Congress, 67 Stat. 587; 16 U.S.C. 828) is hereby amended by 
deleting from section 3 thereof the following: ", except that the pro-
visions of section 14 and section 4(b) shall continue to be applicable 
to any license issued for a hydroelectric development in the Interna-
tional Rapids section of the Saint Lawrence River". 
Approved July 31, 1959. 
Public Law 86-125 
AN ACT 
July 31^ 1959 
To make payments to Indians for destruction of fishing rights at Celilo Falls 
[s. 19 76] 
exempt from income tax. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemoled^ That the funds paid 
by the United States to Indian tribes, the portion of such funds sub-
sequently distributed to members of the tribes or to trustees for or 
representatives of such members, and the funds paid by the United 
Indians. 
272 
PUBLIC LAW 86-126-JULY 31, 1959 
[73 ST AT 
States directly to individual Indians, as compensation for the loss of 
fishing rights due to the construction, operation, and maintenance of 
the Dalles Dam, Columbia Eiver, Washington and Oregon, shall not 
be subject to Federal or State income tax. 
Approved July 31, 1959. 
July 31, 1959 
[S. 1^5] 
Public Law 86-126 
AN ACT 
To provide transportation on Canadian vessels between ports in southeastern 
Alaska, and between Hyder, Alaska, and other points in southeastern Alaska, 
and between Hyder, Alaska, and other points in the United States outside 
Alaska, either directly or via a foreign port, or for any part of the trans-
portation. 
Alask 
Tr an 
on Can 
sels. 
spoliation 
adian ves-
Be it enacted hy the Senate and House of Representatives 
of the 
United States of Amsrica in Congress assembled, That, until June 30, 
1960, notwithstanding the provisions of law of the United States re-
stricting to vessels of the United States the transportation of passen-
gers and merchandise directly or indirectly f 
roiti any port in the United 
States to another port of the United States, passengers may be trans-
ported on Canadian vessels between ports in southeastern Alaska, and 
passengers and merchandise may be transported on Canadian vessels 
between Hyder, Alaska, and other points in southeastern Alaska, and 
between Hyder, Alaska, and other points in the United States outside 
Alaska, either directly or via a foreign port, or for any part of the 
transportation, unless the Secretary of Commerce determines that 
United States-flag service is available to provide such transportation. 
Approved July 31, 1959. 
July 31, 1959 
[S. 2148] 
Public Law 86-127 
AN ACT 
To amend title XI of the Merchant Marine Act, 1936, as amended, to provide 
for the deposit of funds in escrow with the Secretary of Commerce, to pro-
vide for the payment of insurance, in part, on the basis of such deposits, and 
for other purposes. 
Vessels. 
Escrow fund. 
52 Stat. 969. 
Insurance. 
Restriction. 
Ante, p. 269. 
Be it enacted hy the Seriate and House of Representatives 
of the 
United States of America in Congress assembled, That title X I of the 
Merchant Marine Act, 1936, as amended (46 U.S.C. 1271-1279), is 
amended as follows: 
(1) By revising the proviso in section 1101(f) to read as follows: 
"That in no event shall the Secretary of Commerce pay as insurance 
under this title in respect of the unpaid balance of the principal of a 
mortgage or loan an amount in excess of 75 per centum, or 87^^ per 
centum, as the case may be, of the amount paid by or for the account 
of the mortgagor or borrower for the construction, reconstruction, or 
reconditioning (including designing, inspecting, outfitting, and equip-
ping) of such vessel, except that if the mortgagor or borrower creates 
an escrow fund as authorized by section 1111 of this Act, the amount 
that shall be paid as insurance is the interest on and the unpaid bal-
ance of the principal of such loan or mortgage." 
(2) By inserting after section 1110 a new section 1111 to read "as 
follows: 
"SEC. 1111. (a) CREATIOX OF THE ESCROW FUND.—In connection 
with the insurance of loans and mortgages, which are financed by sale