An Act to authorize the exchange of certain war-built vessels for more modern and efficient war-built vessels owned by the United States.
PL 86-575 (S.2618), enacted 07/05/1960

312 
PUBLIC LAW 86-575-JULY 5, 1960 
[74 ST A T , 
Public Law 86-575 
July 5,1960 
[S. 2618] 
War-bui 11 v e s -
sels^ 
Exchange. 
53 Stat. 1183. 
46 u s e 1160. 
AN ACT 
Conditions. 
To authorize the exchange of certain war-built vessels for more modern and 
efficient war-built vessels owned by the United States. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled. That section 610 of 
the Merchant Marine Act, 1936, is amended by adding a new subsection 
as follows: 
"(i) In order to improve the type and suitability of vessels operat-
ing in the domestic and forei^ commerce of the United States, and 
to further the policies of this Act, the Secretary of Commerce is 
authorized (subject to the provisions of this subsection) to acquire at 
any time within five years from the date of enactment of this Act 
war-built vessels (which are defined for purposes of this subsection as 
oceangoing vessels of one thousand five hundred gross tons or over 
which were constructed or contracted for by the United States ship-
yards during the period beginning September 3, 1939, and ending 
September 2,1945) in exchange for more modern or efficient war-built 
vessels owned by the United States. Such exchanges shall be subject 
to the following conditions: 
"(1) The traded-in vessels shall have been owned and operated 
without subsidy under title VI of this Act by a citizen or citizens of 
the United States, and documented under the laws of the United 
States, for at least three years immediately prior to the date of the 
exchange. 
"(2) The fair and reasonable value of the traded-in and traded-out 
vessels shall be determined, as of the date of the exchange, pursuant 
to subsection (d) of this section. 
"(3) In determining said fair and reasonable value the Secretary 
shall consider the cost of placing the vessels in class with respect to 
hull and machinery, and, with respect to any traded-out vessels of 
the military type, tne cost of reconverting and restoring such vessels 
for normal operation in commercial service. The Secretary of Com-
merce shall consult with and obtain the approval of the Defense 
Department before any vessel of a military type is traded out under 
the provisions of this subsection. In determining the value of the 
traded-in vessel or vessels the Secretary may take into consideration 
the cost to the owner of compliance with subparagraph (8), clauses 
(A) and (B), of this subsection. 
" (4) The value of the traded-out vessel which is in excess of the 
value of the traded-in vessel or vessels shall be paid in cash at the 
time of the exchange. No payments shall be made by the United 
States to the owner of a tra(ied-in vessel in connection with any 
exchange under this subsection. 
"(5) A contract shall be entered into under this subsection by any 
person acquiring a traded-out vessel, which shall provide (A) that in 
the event the United States shall, through purchase or requisition 
or otherwise, reacquire ownership of said vessel, at any time within 
twenty years of the date of construction thereof, the owner shall be 
paid therefor the value thereof, but in no event shall such payment 
exceed the fair and reasonable exchange value determined under this 
subsection (together with the actual cost of capital improvements 
thereon) depreciated to the date of such purchase or acquisition, or 
the fair and reasonable scrap value of such vessel, as determined by 
the Secretary of Commerce, whichever is the greater; (B) that such 
determination shall be final; (C) that in computing the depreciated 
exchange value of such vessel, the depreciation shall be computed on 
the vessel on the schedule adopted or accepted by the Secretary of the 
74 S T A T . ] 
PUBLIC LAW 86-576~JULY 5, 1960 
313 
Treasury for Federal income tax purposes as applicable to such vessel; 
(D) that such vessel shall remain documented under the laws of the 
United States for a period of at least five years after the date of 
the exchange, or twenty years from the date of its construction, 
whichever is the later date; and (E) that the foregoing condi-
tions respecting requisition or acquisition of ownership by the 
United States and documentation shall run with the title to such vessel 
and be binding on all owners thereof. Any other conditions respect-
ing purchase or requisition by the United States heretofore applicable 
by statute to any traded-out vessel are hereby made inapplicable to 
such vessel. 
"(6) Neither subsection (e) of this section, nor the nontaxable 
exchange provisions of the Internal Revenue Code, shall apply to the 
exchange of vessels under this subsection. 
"(7) Any repairs or reconversion necessary at the time of the 
exchange to place the traded-out vessel in class and prepare it for 
commercial operation shall be performed in a shipyard within the 
continental United States. 
"(8) The owner of the traded-in vessel, at his own expense and in 
a manner satisfactory to the Secretary of Commerce, shall (A) effect 
deactivation and preparation of the traded-in vessel and its equip-
ment for storage or layup; (B) make delivery of such vessel and its 
equipment at a location designated by the Secretary of Commerce; 
and (C) execute a bond, with one or more approved sureties, condi-
tioned upon indemnifying the United States from all loss resulting 
from any lien against such vessel existing at the time of the exchange. 
"(9) No tanker vessel shall be traded out under the provisions of 
this subsection." 
Approved July 5, 1960. 
Public Law 86-576 
AN ACT 
July 5, 1960 
To provide for the leasing of oil and gas interests in certain lands owned by the 
[H. R. 8740] 
United States in the State of Texas. 
g a s 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled,. That the Secretary in^rVstT"*^ 
of the Interior is authorized to act on behalf of the United States in '"Leasing. 
providing for the exploration, development and leasing of the oil and 
gas deposits in any lands owned by the United States in the State of 
Texas to which articles 5367 and 5368 of the Revised Civil Statutes 
(1925) of said State are applicable and which are not excluded or 
excepted from the provisions of the Mineral Leasing Act for Acquired 
Lands (61 Stat. 913, 30 U.S.C. 351 and the following) by section 3 
thereof. Sec' ions 2-4 and 6-10, both inclusive, of the Mineral Leasing ^^^^^^ ^^ ^-^^^' 
Act for Acquired Lands ^all apply to leases entered into, or proposed 
" * 
to be entered into, under this Act. Neither the proviso to the fourth 
paragraph of section 17 of the Mineral Leasing Act (41 Stat. 443), 
as amended (30 U.S.C. 226) nor any other provision of law which 
would have the effect of depriving the State af Texas of the amounts 
to which it is entitled under section 5368 of its Revised Civil Statutes 
shall api)ly to any lease entered into, or proposed to be entered into, 
under this Act, and every lessee shall be required by the Secretary to 
pay to said State the amounts provided in said section 5368. 
Approved July 5, 1960.