The amount of such adjustment will be determined as follows:

(1) The Administration will credit the applicant, for the purposes of subparagraph (8) of this paragraph, with the excess of all cash payments made upon the original purchase price of the vessel over 25 percent of the statutory sales price of the vessel as of March 8, 1946. If such payment was less than 25 percent of the statutory sales price of the vessel, the applicant will pay the difference to the Administration.

(2) The applicant's indebtedness under any mortgage to the United States with respect to the vessel will be adjusted.

(3) The adjusted mortgage indebtedness will be in an amount equal to the excess of the statutory sales price of the vessel as of March 8, 1946, over the sum of the cash payment retained by the United States under subparagraph (1) of this paragraph plus the readjusted trade-in allowance (determined under subparagraph (7) of this paragraph) with respect to any vessel exchanged by the applicant on the original purchase. The adjusted mortgage indebtedness will be payable in equal annual installments thereafter during the remaining life of such mortgage with interest on the portion of the statutory sales price remaining unpaid at the rate of three and onehalf percent per annum.

(4) The Administration will credit the applicant, for the purposes of subparagraph (8) of this paragraph, with the excess, if any, of the sum of the cash payments made by the applicant upon the original purchase price of the vessel plus the readjusted trade-in allowance (determined under subparagraph (7) of this paragraph) over the statutory sales price of the vessel as of March 8, 1946, to the extent not credited under subparagraph (1) of this paragraph.

(5) The Administration will also credit the applicant, for the purposes of subparagraph (8) of this paragraph, with an amount equal to interest at the rate of three and one-half percent per annum (for the period beginning with the date of the original delivery of the vessel to the applicant and ending with March 8, 1946), on the excess of the original purchase price of the vessel over the amount of any allowance originally allowed by the Administration to the applicant on the exchange of any vessel on

such purchase; the amount of such credit first being reduced by any interest on the original mortgage indebtedness accrued up to such date of enactment and unpaid. Interest so accrued and unpaid will be canceled.

(6) The applicant will credit the Administration, for the purposes of subparagraph (8) of this paragraph, with all amounts paid by the United States to him as charter hire for the bareboat use of the vessel, whether the vessel was under time or bareboat charter, under any charter party made prior to March 8, 1946, and any charter hire for such use accrued up to such date and unpaid shall be canceled and the Administration will credit the applicant for the purposes of subparagraph (8) of this paragraph with the amount that would have been paid by the United States to the applicant as charter hire for bareboat use of vessels exchanged by the applicant on the original purchase (for the period beginning with date on which the vessels so exchanged were delivered to the Commission and ending with March 8, 1946.)

(7) The allowance made to the applicant on any vessel exchanged by him on the original purchase will be readjusted so as to limit such allowance to the amount provided for under § 299.22.

If,

(8) There will be subtracted from the sum of the credits in favor of the Administration under the foregoing provisions of this subparagraph the amount of any overpayments of Federal taxes by the applicant resulting from the application of paragraph (e) (1) of this section, and there will be subtracted from the sum of the credits in favor of the applicant under the foregoing provisions of this subparagraph the amount of any deficiencies in Federal taxes of the applicant resulting from the application of paragraph (e) (1) of this section. after making such subtractions, the sum of the credits in favor of the applicant exceeds the sum of the credits in favor of the Administration, such excess will be paid by the Administration to the applicant. If, after making such subtractions, the sum of the credits in favor of the Administration exceeds the sum of the credits in favor of the applicant, such excess will be paid by the applicant to the Administration. Upon such payment by the Administration or the applicant, such overpayments will be

treated as having been refunded and such deficiencies as having been paid.

(i) For the purpose of this paragraph, the purchase price of a vessel on account of which a construction-differential subsidy was paid or agreed to be paid under section 504 of the Merchant Marine Act, 1936, as amended, will be the net cost of the vessel to the owner.

(e) Condition of adjustment. An adjustment will be made under this section only if the applicant enters into an agreement with the Administration binding upon the citizen-applicant and any affiliated interest to the effect that:

(1) Depreciation and amortization allowed or allowable with respect to the vessel up to March 8, 1946 for Federal tax purposes shall be treated as not having been allowable; amounts credited to the Administration under paragraph (d) (6) of this section shall be treated for Federal tax purposes as not having been received or accrued as income; amounts credited to the applicant under paragraph (d) (5) and (6) of this section shall be treated for Federal tax purposes as having been received and accrued as income in the taxable year in which falls March 8, 1946;

(2) The liability of the United States for use (exclusive of service, if any, required under the terms of the charter) of the vessel on or after March 8, 1946 under any charter party shall not exceed 15 percent per annum of the statutory sales price of the vessel as of March 8, 1946; and the liability of the United States under any such charter party for loss of the vessel shall be determined on the basis of the statutory sales price as of March 8, 1946, depreciated to the date of loss at the rate of 5 percent per annum; and

(3) In the event the United States, prior to the termination of the existing national emergency declared by the President on May 27, 1941, uses such vessel pursuant to a taking, or pursuant to a bareboat charter made, on or after March 8, 1946, the compensation to be paid to the purchaser, his receivers, and trustees, shall in no event be greater than 15 percent per annum of the statutory sales price as of March 8, 1946.

(f) Method of adjustment. If the Administration finds that applicant is entitled to an adjustment, applicant will be notified of the adjusted purchase price determined by the Administration.

Unless the applicant notifies the Administration to the contrary within 15 days following the date of receipt by the applicant of the Administration's determination of adjusted purchase price, this adjusted purchase price will be binding upon the applicant and it agrees to execute an addendum to its original contract to purchase, which addendum will be sent to him by the Administration. Subpart F-Prewar Domestic Costs

and Statutory Sales Prices of Vessels

NOTES: 1. Design characteristics are for Identification purposes and are not warranted as those of any particular vessel.

2. Design characteristics are not set forth for types not available for disposal but included merely for adjustment for prior sales to citizens, in accordance with section 9 of the act. (It should be noted that applications for such adjustment must be made within 60 days of publication of applicable prices.)

TYPES, DESIGN CHARACTERISTICS, AND

PRICES

§ 299.71 Prewar domestic costs; statutory sales prices.

The prewar domestic costs set forth in this section have been determined by the Administration (or the United States Maritime Commission) pursuant to section 3(c) of the act to be the amounts for which a standard vessel of the type specified could have been constructed (without its national defense features) in the United States under normal conditions relating to labor, materials, and other elements of cost, obtaining on or about January 1, 1941. In no case does the prewar domestic cost set forth in this section with respect to any type of vessel exceed 80 percent of the domestic war cost of a vessel of the same type. The unadjusted statutory sales prices set forth in this section have been determined by the Administration (or the United States Maritime Commission) pursuant to section 3 (d) of the act. Subtypes listed may be adjusted above or below published prices for types of which they are subtypes, depending upon whether such subtypes possess desirable features which are not incorporated in the standard vessel, or lack desirable features which are incorporated in the standard vessel. The adjusted prices of such subtype may be quoted upon written inquiry to the Administration.

(a) The standard vessel is a steel cargo vessel with a raked stem and cruiser stern. The quarters will accommodate eight passengers in four staterooms. Deep tanks are installed at the forward end of No. 1 hold. The machinery is located amidships.

(b) There are two basic designs of the C1 type which are considered to be standard, the C1A and the C1B.

(c) In addition is the C1-S-AY1 type which is a standard C1B converted to a transport. Reconversion to a cargo vessel would result in principal characteristics similar to the C1B (except that propulsion is turbine only) and a price in

Length over-all. Beam molded. Depth molded.

Design

§ 299.76

Type C1-M-AV1.

(a) The standard C1-M-AV1 cargo vessel is a steel, full scantling type vessel with a raked stem and cruiser stern. A deep tank is installed at the forward end of No. 1 hold. The propelling machinery is located aft.

(b) In addition are the C1-ME-AV6 and the C1-M-AV8 designs. The price of these two designs are subject to adjustment for desirable features in accordance with section 3 (d) (3) of the act.

(3) Principal design characteristics of the standard and modified vessels are listed below. (The C1-M-AV1 is not considered a "C" type under the Commission building program.)

Load draft molded.

1 Price inapplicable since under terms of the Ship Sales Act of 1946 no dry cargo vessel, except a Liberty type vessel, may be sold at less than 35 percent of the domestic war cost.

§ 299.77 Type C1-MT-BU1.

(a) The C1-MT-BU1 lumber freighter is a steel, full scantling type vessel with raked stem and cruiser stern. The propelling machinery consisting of twin screws powered by Diesel engines, is located aft.

(b) The principal design characteristics of this vessel are listed below:

features in accordance with section 3 (d) (3) of the act.

(2) The C2-S-AJ3, a modification of the C2-S-AJ1, is a military conversion. (3) When reconverted to the cargo vessel type, the C2-S-AJ3 will have basic features similar to the standard C2-SAJ1 design.

(4) The C2 Cargo and the C2T vessels available for disposal are military conversions. When reconverted to cargo vessels, they will have basic features similar to the standard C2-S-B1 design, except that the propulsion on the C2 Cargo is either steam or Diesel, and on the C2T is Diesel.

(5) The C2-S-E1 vessels available, for disposal are military conversions. When reconverted to the cargo vessel type, they will have basic characteristics as noted below. The price of these vessels is subject to adjustment for desirable features in accordance with section 3 (d) (3) of the act.

(d) Principal design characteristics are listed below:

Length over-all..

Beam molded..

Design

Diesel.

Shelter deck

2400.

12.

Bale cubic capacity.

Propulsion.--.

Shaft h. p., normal..

C2-S-B1 C2-S-AJ1 C2-S-E1
Modified
full
Scantling

Shelter deck

Speed, knots___.

$1,063, 000 $1,396, 813

§ 299.78 Type C2.

(a) The standard C2 vessel is a steel cargo vessel with a raked stem and cruiser stern. The vessel will accommodate eight passengers in four staterooms. There are four deep tanks in No. 4 hold. The machinery is located amidships.

(b) There are two basic designs of the C2 type which are considered to be standard, the C2-S-AJ1 and the C2-S-B1.

(c) In addition to the standard type C2's, there are the following subtypes:

(1) The C2-S-AJ2 and the C2-S-AJ5 are not available for disposal and are subJect only to price adjustment for prior sales under section 9 of the act, and are also subject to adjustment for desirable

Staterooms.

Gross tons__

Deadweight tons..

Net tons--

Bale cubic capacity-----.

Propulsion..

Shelter deck

479'8''.

66'0".

43'0".

27'0".

10,000.

7,101.

4,259.

594,000.

C2SU (Standard). C2SU (Reefer)...

C2SU (Standard). C2SU (Reefer)..

Net refrigerated cargo capacity... 11,500.

Turbine.

§ 299.82 Type C3.

(a) The standard C3 cargo vessel is a steel, shelter deck type vessel with a raked stem and cruiser stern. The vessel will accommodate twelve passengers in six staterooms. There are four deep tanks in No. 2 hold. The propelling machinery is located amidships.

(b) The C3-S-A2 is considered to be the standard vessel of this type.

(c) In addition are the following subtypes:

(1) The C3-S-A1 is basically similar to the C3-S-A2 design. All vessels of this type have been converted to escort aircraft carriers, and are not generally suitable for reconversion.

(2) The C3-M and C3 Cargo are basically similar to the C3-S-A2 design. The C3M is not available for disposal, but is subject to price adjustment for prior sales under section 9 of the act.