such days: Provided, That, for the purposes of this calculation only, a vessel day shall be valued in the manner described in the following formula: (a) Vessels owned and operated by the Charterer (b) Vessels bareboat chartered from others and operated by the Charterer (c) Vessels time chartered from (d) Vessels time chartered to others__ (g) Vessels under General Agency Day 1 1 1/3 2/3 110 115 1/30 (h) Vessels under Berth Agency Agreements where Berth Agent does not act in capacity of General Agent_-_Provided, That in instances where more than one Berth Agent act for the vessel on a single voyage, the number of days so calculated shall be divided between the Berth Agents involved on the basis of the relation that the number of days under the agency of each bears to the total number of days of the voyage. In this calculation the expired days of voyages in progress at the commencement of the annual or over-all accounting period will be omitted and the expired days of voyages in progress at the termination of such period will be taken into account (in other words, only the vessel days within the annual or over-all accounting period involved will be taken into account). (c) The net book value of tugs, barges, scows, launches, lighters, cranes, and similar floating equipment; terminal property and equipment; stevedoring and other cargo-handling gear and equipment; and other property and equipment used exclusively in shipping and its auxiliary operations, less the portion of any long-term debt arising from the acquisition of such property and equipment due more than one year from the date of the balance sheet involved, shall be allocated between operations under the bareboat charter agreements with the Administration and "other operations" on the same basis as is the income derived from, and the expense incurred in, the operation and maintenance of such services or facilities as prescribed in §§ 299.47 to 299.53. § 299.45 Limitation of "capital necessarily employed". (a) If in any instance the amount allocated to "capital necessarily employed" under SHIPSALESDEMISE 303, in accordance with the provisions of §§ 299.43 and 299.44, is in excess of the greater of the working capital requirements, or the net worth requirements determined in the manner provided in paragraph (2) of Clause H-Special provisions, of Part I of SHIPSALESDEMISE 303, such allocation shall be disregarded and "capital necessarily employed" shall be determined in accordance with such Special Provisions. In the application of this limitation, for the purpose of determining: (1) The number of vessels involved in instances where they do not remain constant throughout the accounting period, and (2) The amount of the working capital requirements or the net worth requirements (whichever is the greater) in instances where more than one type of vessel is involved, the following formula is prescribed: (i) The number of vessels involved shall be deemed to be the result obtained by dividing into the total number of days covering which charter hire was paid for all vessels for the accounting period involved, the number of calendar days within such period, and (ii) The average working capital requirements or net worth requirements per vessel shall be determined by multiplying the greater of such requirements (as modified in sub-paragraphs (a) and (b) of paragraph (2) of Clause H of Part I of "SHIPSALESDEMISE 303") for each type of vessel involved by the number of days covering which charter hire was paid for all vessels of that type for the accounting period involved, and dividing the sum of the results thus obtained for all types of vessels involved by the aggregate number of days covered by such payments for all types of vessels. (b) The amount to be deducted in the determination of additional charter hire (as ten per centum per annum on "capital employed") shall be that proportion of ten percent represented by the relation that the number of days within the accounting period involved bears to three hundred and sixty-five, the number of (1) Working capital requirements (as modified in subparagraph (a) of paragraph (2) of Clause H of Part I of "SHIPSALESDEMISE 303") should be used for this purpose, if they exceed net worth requirements. (2) Fractions resulting from the calculation of the number of vessels involved shall be taken into account, the 25 percent reduction being applicable to such fractions occurring between the fifth and sixth vessels, and the 50 percent reduction to those occurring between the tenth and eleventh vessels. § 299.46 Accounting periods extending beyond end of calendar year. (a) Clause 13 of Part II of WARSHIPDEMISEOUT 203, wherein is prescribed the fundamental basis for the calculation and payment to the Administration of additional charter hire, refers to the cumulative net voyage profits computed for the period of the agreement and makes no provision for an annual accounting. Accordingly, the calculation of "capital necessarily employed" for the entire period under WARSHIPDEMISEOUT 203 is required to be made on the basis of the adjusted net worth of the Charterer as at the end of the month preceding the date of the delivery of the first vessel thereunder. To accomplish this, $148, 500, 000 81,000,000 24, 000, 000 18, 000, 000 25, 200, 000 296, 700, 000 296, 700, 000 3,150 94, 190. 48 3, 150 180 172 $470, 952. 40 353, 214.30 235, 476. 20 58,869.05 1, 118, 511. 95 55, 159. 49 (1) The formula prescribed in § 299.44 (b) shall cover the entire period from the beginning of the month in which the first vessel was delivered to the Charterer to the end of the month in which the last vessel was redelivered to the Administration under WARSHIPDEMISEOUT 203, and (2) After the amount of "capital necessarily employed" has been determined, pursuant to the provisions of §§ 299.42299.45, the "allowable return" thereon shall be calculated at the rate of 10 per centum per annum on the basis of the relation that the number of calendar days between the beginning of the month in which the first vessel was delivered to the Charterer and the end of the month in which the last vessel was redelivered to the Administration under WARSHIPDEMISEOUT 203 bears to 365, the number of days in a calendar year. (See Exhibit "A" for 1946 contained in the illustrative examples of statements to be supplied by the Comptroller, Maritime Administration.) (b) In any instance where operations under WARSHIPDEMISEOUT 203 extended beyond December 31, 1946, in the calculation of the "allowable return" under SHIPSALESDEMISE 303 (and, to the extent involved, any addendum thereto with respect to which additional charter hire is required to be computed, accounted for, and paid separately) for such succeeding period, the number of vessel days applicable to WARSHIPDEMISEOUT 203 in such period shall be taken into account in the formula prescribed in § 299.44 (b) and shall be treated in the same manner as those applicable to "other operations". (See Exhibit "A" for 1947 contained in the illustrative examples of statements to be supplied by the said Comptroller.) NET VOYAGE PROFIT § 299.47 Fundamental bases. (a) The fundamental bases for the determination of "net voyage profit" are provided in Clause 23(a) of Part II of WARSHIPDEMISEOUT 203 and SHIP SALESDEMISE 303. (b) The fundamental bases for the determination of "fair and reasonable overhead expenses" (which are deductible from gross income in the determination of "net voyage profit") are prescribed in Clause 23(b) of Part II of WARSHIPDEMISEOUT 203 and SHIP SALESDEMISE 303. § 299.48 Allocation among operations under bareboat charter agreements and "other operations". The definitions of "net voyage profit" in WARSHIPDEMISEOUT 203 and in SHIPSALESDEMISE 303 provide, in effect, among other things, that, in instances where the Charterer engages in other activities in addition to the operation of the vessels thereunder, income and expenses other than those directly and exclusively allocable to the operation of such vessels shall be prorated between these activities on such basis as the Owner may determine to be fair and reasonable. To implement this provision of the bareboat charter agreements, the following bases of allocations are prescribed: (a) Wherever practicable and the result will not be disproportionate, income and expenses (including, but not necessarily limited to, operating revenues and expenses on terminated voyages, inactive vessels expense, operating-differential subsidy, collections from and contributions to pools for the purpose of equalizing revenue in accordance with pooling agreements) shall be allocated directly to the operation from which they are derived or in which they are incurred. (b) The Uniform System of Accounts provides, among other things, that Accounts Nos. 645-Income from Terminal Operations, 650 Income from Cargo Handling Operations, 655-Income from Tug and Lighter Operations, and 660— Income from Other Shipping Operations (in instances where such services or facilities are maintained by the Operator) shall be credited with "agreed amounts" for the use of such services or facilities by vessels owned by the "Operator", with corresponding charges to Vessel Operating Expense. In instances where the Charterer maintains such services or facilities and they are used by the chartered vessels and if it is impracticable to determine the actual cost of such use, the Charterer may charge in the Vessel Operating Expense Accounts of the chartered vessels fair and reasonable amounts for the use of such services or facilities (but at not in excess of the "going rates" for the services or facilities at the ports involved, or the rates at which such services or facilities could be obtained from independent suppliers, or the rates charged all other vessels using them), provided similar charges are made in the accounts of all other vessels operated by the Charterer. If the sum of the gross income derived from the use of such services or facilities by vessels under WARSHIPDEMISEOUT 203, under SHIPSALESDEMISE 303, owned by the Charterer, and chartered from others by the Charterer, exceeds the gross income derived from the use of such services or facilities by other vessels, (1) The expense of maintaining such. services or facilities shall be allocated among the operation of the vessels under WARSHIPDEMISEOUT 203 and SHIPSALESDEMISE 303 and "other operations" on the basis of the relation that the gross income so derived from the vessels engaged in each such operation bears to the total gross income derived from the furnishing of such services or facilities, except that income derived from the furnishing of such services or facilities to vessels neither owned, nor chartered from the Administration or others, by the Charterer shall not be included in the above calculation but shall be prorated between the operation of the vessels under WARSHIPDEMISEOUT 203 and SHIPSALESDEMISE 303 and "other operations" in the same manner as is the expense of maintaining such services or facilities as thus determined, and (2) The amounts credited to the income accounts shall be allocated directly to the operation of the vessels under WARSHIPDEMISEOUT 203 and SHIPSALESDEMISE 303 and "other operations" on the same basis as are the corresponding charges to the Vessel Operating Expense Accounts. If, conversely, the sum of the gross income derived from the use of such services or facilities by vessels under WARSHIPDEMISEOUT 203, under SHIPSALESDEMISE 303, owned by the Charterer, and chartered from others by the Charterer, is less than the gross income derived from the use of such services or facilities by other vessels, the (1) The amounts credited to income accounts corresponding to charges in the Vessel Operating Expense Accounts of the vessels under WARSHIPDEMISEOUT 203 and SHIPSALESDEMISE 303 shall be allocated directly to the operation of such chartered vessels and the amounts credited to the income accounts corresponding charges in the accounts of vessels, owned, or chartered from others than the Administration, by the Charterer, and to charges against others for the use of such services or facilities shall be allocated to "other operations," and to (2) The expense of maintaining such services or facilities shall be allocated between the operation of vessels under WARSHIPDEMISEOUT 203 and SHIPSALESDEMISE 303 and "other operations" on the basis of the relation that the gross income so derived from the vessels engaged in each such operation bears to the total gross income derived from the furnishing of such services or facilities. (c) Compensation (other than liquidation fees) earned under Berth Agency, General Agency and Time Charter Agency Service Agreements and subagency fees and commissions paid or payable from such compensation shall be allocated direct to "other operations". (d) Except in instances involving considerable nonshipping operations, the operation of passenger vessels, substantial dissimilarity between the operations of the vessels chartered from the Administration and those of vessels owned or chartered from others by the Charterer, or agency operations actually carried on as a separate and substantial business activity of the Charterer for its own account and not merely incidental to the operation of the chartered vessels (with respect to which the Charterer shall submit, for the consideration of the Administration, in advance of the accounting prescribed in this part, its concept of a fair and reasonable formula, addressed in the manner prescribed in § 299.40 (d), overhead expenses (if they are not susceptible to direct allocation), including administrative and general expense, less agency fees, commissions, and brokerage earned, except in instances where the Charterer, through the maintenance of actual cost records or other sound accounting methods, can demonstrate to the satisfaction of the Administration the actual application of costs incurred against such fees, a minimum of 50 percent of liquidation fees accrued during the over-all accounting period involved, the remaining percentage of such fees to be deferred to the next succeeding period, and accounting fees earned by United States principals of supervisory foreign agents; management and operating commissions; advertising expense; and taxes, other than Federal income tax, shall be allocated between operations under the bareboat charter agreements with the Administration and "other operations" on the basis of the relation that the number of days (eliminating fractions by considering twelve hours or more a full day and omitting portions of days amounting to less than twelve hours) of operation of maintenance of vessels under each SHIPSALESDEMISE 303, under each addendum to SHIPSALESDEMISE 303 whereunder additional charter hire is required to be computed, accounted for, and paid separately, under each WARSHIPDEMISEOUT 203, and in "other operations" (including those under service agreements) during the annual or over-all accounting period involved individually bear to the total of such days: Provided, That for the purposes of this calculation only a vessel day shall be valued in the manner described in the following formula: Day (7) Vessels under General Agency Agreements where General Agents do not act in capacity of Berth Agent-----. (8) Vessels under Berth Agency Agreements where Berth Agent does not act in capacity of General Agent-----Provided, That in instances where more than one berth agent act for the vessel on a single voyage the number of days so calculated shall be divided between the berth agents involved on the basis of the relation that the number of days under the agency of each bears to the total number of days of the voyage. In this calculation the expired days of voyages in progress at the commencement of the annual or over-all accounting period will be omitted and the expired days of voyages in progress at the termination of such period will be taken into account (in other words, only the vessel days within the annual or over-all accounting period involved will be taken into account). (e) If, in any instance, the amount of overhead expenses allocated against operations under General Agency, Time Charter Agency, and Berth Agency Agreements, in accordance with the foregoing formula, exceeds the amount of compensation earned under such Agreements for the period involved, less subagency fees and commissions paid or payable from such compensation, the amount of such excess shall be reallocated among the other operations of the Charterer (including, but not limited to, those under the bareboat charter agreements) on the basis of the relation that the amount of overhead expenses otherwise allocated to each such operation bears to the total of the overhead expenses otherwise allocated to all such operations. (f) Subject to the conditions prescribed in § 299.55 (b), in any instance where the statements required to be submitted to the Administration hereunder are certified by an independent certified public accountant or a firm of independent certified public accountants, such fair and reasonable payments as the Administration determines to have been made by the Charterer for the certification of such statements by such certified public accountants may be allocated directly to operations under the bareboat charter agreements involved on the basis of the relation that the number of vessel days applicable to each accounting period under each agree ment (or addendum with respect to which a separate determination of additional charter hire is required to be made) bears to the total vessel days under all such agreements (or addenda) for all such periods covered by such statements. (g) The salaries of any additional personnel which the Charterer demonstrates to the satisfaction of the Administration to have been necessarily employed for the exclusive purpose of preparing such statements (irrespective of whether or not they are certified by an independent certified public accountant or a firm of independent certified public accountants) shall be allocated over the entire period covered by such statements on the basis of the relation that the total vessel days applicable to each annual or overall accounting period involved bears to the total vessel days for all such periods, and the proportion of such salaries so determined to be allocable to each such period shall be distributed between operations under the bareboat charter agreements with the Administration and "other operations" in accordance with the formula prescribed in paragraphs (d), (e), and (f) of this section. (h) In instances where branch offices of the Charterer act as agents for the chartered vessels and if it is impracticable to determine the actual cost of such services, the Charterer may charge in the vessel operating expense accounts of the chartered vessels fair and reasonable amounts for such services (but at not in excess of the "going rates" for the services at the ports involved, or the rates at which such services could be obtained from independent agents, or the rates charged all other vessels for such services), provided similar charges are made in the accounts of all other vessels operated by the Charterer. If the sum of the gross income derived from the furnishing of such services to vessels under WARSHIPDEMISEOUT 203, under SHIPSALESDEMISE 303, owned by the Charterer, and chartered from others by the Charterer, exceeds the gross income derived from the furnishing of such services to other vessels, (1) The expense of maintaining such branch offices shall be allocated among the operation of vessels under WARSHIPDEMISEOUT 203 and SHIPSALESDEMISE 303 and "other operations" on the basis of the relation that the gross |