An Act to amend title V of the Merchant Marine Act, 1936, in order to change certain limitations on the construction differential subsidy under such title, and for other purposes
PL 86-607 (H.R.10644), enacted 07/07/1960

362 
PUBLIC LAW 86-607-JULY 7, 1960 
[74 S T A T . 
July 7, I960 
[H. R. 10644] 
Public Law 86-607 
AN ACT 
To amend title V of the Merchant Marine Act, 1936, in order to change the limi-
tation of the construction differential subsidy under such title, and for other 
purposes. 
Merchant Marine 
Act, 1936, amend-
ment. 
49 Stat. 1996. 
Effective date. 
Free or reduced-
rate t r a n s p o r t a -
tion. 
Restriction. 
39 Stat. 728; 49 
Stat. 1985. 
46 
u s e 
8 4 2 , 
1245. 
Penalty. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That effective only 
us provided in section 2 of this Act section 502 of the Merchant 
Marine Act, 1936 (46 U.S.C. 1152), is amended by— 
(1) striking out the second, third, and fourth sentences in 
subsection (b) and inserting in lieu thereof the following: "The 
construction differential approved by the Commission shall not 
exceed 55 per centum of the construction cost of the vessel paid 
by the Commission (excluding the cost of national defense 
features as above provided). 
Where the Commission finds that 
the construction differential exceeds 55 per centum of such cost, 
the Commission may negotiate and contract on behalf of the 
applicant to build such vessel in a domestic shipyard at a cost 
which will reduce the construction differential to 55 per centum 
or less."; and 
(2) striking out "50 per centum" in the last sentence in sub-
section (d) and inserting in lieu thereof "55 per centum". 
SEC. 2. The amendment made by this Act shall be effective only 
witli respect to any contract entered into not later than two years 
after the date of enactment of this Act under the provision of section 
502 of the Merchant Marine Act, 1936, with respect to the con-
struction of a vessel the keel of which was laid after June 30,1959, and 
the Federal Maritime Board may, with the consent of the parties 
thereto, modify any such contract entered into prior to the date of 
enactment of this Act to the extent authorized by the amendment 
made by this Act. 
SEC. 3. No common carrier by water subject to the Shipping Act 
of 1916, as amended; the Merchant Marine Act of 1936, as amended; 
or any other Act; shall directly or indirectly issue any ticket or pass 
for free or reduced-rate transportation to any official or employee of 
the United States Government (military or civilian) or to any mem-
ber of their immediate families, traveling as a passenger on any ship 
sailing under the American flag in foreign commerce or in commerce 
between the United States and its territories and possessions; except 
that this restriction shall not apply to persons injured in accidents 
at sea and physicians and nurses attending such persons, and persons 
rescued at sea, and except that this restriction shall not apply to per-
sons referred to in section 405(b) of the Merchant Marine Act, 1936, 
as amended (46 U.S.C. 1145(B)), relating to steamship companies 
carrying mails of the United States: Provided^ That nothing in this 
section shall prevent the United States Government from entering 
into contractual arrangements with said companies for reduced trans-
portation rates involving the traveling expenses of those Govern-
ment employees (military or civilian) or their families, when such 
transportation costs are paid for by the United States Government. 
Any person or corporation who knowingly violates this section shall 
upon conviction thereof be fined not less than $500 nor more than 
$10,000 at the discretion of the courts for each such violation. 
Approved July 7, 1960.