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UNITED STATES SHIPPING ACT

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The board may by order disapprove, cancel, or modify any agreement, or any modification or approve, cancel or modify any agree cancellation thereof, whether or not previously approved by it, that it finds to be unjustly dis

criminatory or unfair as between carriers, shippers, exporters, importers, or ports, or between

exporters from the United States and their foreign competitors, or to operate to the detriment of Must approve all the commerce of the United States, or to be in violation of this act, and shall approve all other

agreements, modifications, or cancellations. Existing

Agreements existing at the time of the organization of the board shall be lawful until disments lawful.

approved by the board. It shall be unlawful to carry out any agreement or any portion thereof

disapproved by the board. Ones approved

All agreements, modifications, or cancellations made after the organization of the board shall by board lawful.

be lawful only when and as long as approved by the board, and before approval or after disapproval it shall be unlawful to carry out, in whole or in part, directly or indirectly, any such agreement,

modification, or cancellation. approved

Every agreement, modification, or cancellation lawful under this section shall be excepted excepted

from the provisions of the act approved July second, eighteen hundred and ninety, entitled "An

act to protect trade and commerce against unlawful restraints and monopolies," and amend26 Stat. L., 209.

ments and acts supplementary thereto, and the provisions of sections seventy-three to seventy28 Stat. L., 570.

seven, both inclusive, of the act approved August twenty-seventh, eighteen hundred and ninety37 . L.667. 33 Stat. L:, 730: four, entitled "An act to reduce taxation, to provide revenue for the Government, and for other

purposes," and amendments and acts supplementary thereto. Penalty for Whoever violates any provision of this section shall be liable to a penalty of $1,000 for each agreements.

day such violation continues, to be recovered by the United States in a civil action.

Sec. 16. That it shall be unlawful for any common carrier by water, or other person subject carrier by water:

to this act, either alone or in conjunction with any other person, directly or indirectlyTo give undue

First. To make or give any undue or unreasonable preference or advantage to any particular preference or advantage.

locality, or description of traffic in any respect whatsoever, or to subject any particular person, locality, or description of traffic to any undue or unreasonable prejudice or disadvantage in any

respect whatsoever.

unfair Second. To allow any person to obtain transportation for property at less than the regular means and devices

obtain lower rates then established and enforced on the line of such carrier, by means of false billing, false classirates, etc.

fication, false weighing, false report of weight, or by any other unjust or unfair device or means. To influence

Third. To induce, persuade, or otherwise influence any marine insurance company or undermarine insurance companies to dis- writer, or agent thereof, not to give a competing carrier by water as favorable a rate of insurance criminate.

on vessel or cargo, having due regard to the class of vessel or cargo, as is granted to such carrier

or other person subject to this act. Common carriers

Sec. 17. That no common carrier by water in foreign commerce shall demand, charge, or foreign

collect any rate, fare, or charge which is unjustly discriminatory between shippers or ports, or

unjustly prejudicial to exporters of the United States, as compared with their foreign competitors.

charge Whenever the board finds that any such rate, fare, or charge is demanded, charged, or collected, discriminatory

rates it may alter the same to the extent necessary to correct such unjust discrimination or prejudice, prejudicial American export

and make an order that the carrier shall discontinue demanding, charging, or collecting any such unjustly discriminatory or prejudicial rate, fare, or charge.

Every such carrier and every other person subject to this act shall establish, observe, and reasonable

connected enforce just and reasonable regulations and practices relating to or connected with the receiving, with handling, etc., of freight.

handling, storing, or delivering of property. Whenever the board finds that any such regulation or practice is unjust or unreasonable it may determine, prescribe, and order enforced a just and

reasonable regulation or practice, Common carriers in interstate com

Sec. 18. That every common carrier by water, in interstate commerce shall establish, observe,

and enforce just and reasonable rates, fares, charges, classifications, and tariffs, and just and reason

observe able regulations and practices relating thereto and to the issuance, form, and substance of tickets, just and reasonable classifications, rates receipts, and bills of lading, the manner and method of presenting marking, packing and delivering fares, practices, etc.

property for transportation, the carrying of personal, sample, and excess baggage, the facilities for transportation, and all other matters relating to or connected with the receiving, handling,

transporting, storing, or delivering of property. Maximum rates, Every such carrier shall file with the board and keep open to public inspection, in the form and fares, etc., to be filed with board manner, and within the time prescribed by the board, the maximum rates, fares, and charges for and kept open to public.

or in connection with transportation between points on its own route; and if a through route has been established, the maximum rates, fares, and charges for or in connection with transportation between points on its own route and points on the route of any other carrier by water.

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No such carrier shall demand, charge, or collect a greater compensation for such transportathose filed. tion than the rates, fares, and charges filed in compliance with this section, except with the approval

of the board and after ten days' public notice in the form and manner prescribed by the board, stating

the increase proposed to be made; but the board for good cause shown may waive such notice. Board may pre- Whenever the board finds that any rate, fare, charge, classification, tariff, regulation or pracscribe reasonable maximum rates, tice, demanded, charged, collected or observed by such carrier is unjust or unreasonable, it may etc.

determine, prescribe, and order enforced a just and reasonable maximum rate, fare, or charge,

or a just and reasonable classification, tariff, regulation or practice. Restriction increase of rates

Sec. 19. That whenever a common carrier by water in interstate commerce reduces its rates reduced to drive on the carriage of any species of freight to or from competitive points below a fair and remuneraout competitor.

tive basis with the intent of driving out or otherwise injuring a competitive carrier by water, it shall not increase such rates unless after hearing the board finds that such proposed increase rests upon changed conditions other than the elimination of said competition.

Sec. 20. That it shall be unlawful for any common carrier by water or other person subject

to this act, or any officer, receiver, trustee, lessee, agent, or employee of such carrier or person, or Information detrimental

for any other person authorized by such carrier or person to receive information, knowingly to shipper con- disclose to or permit to be acquired by any person other than the shipper or consignee, without signee not to disclosed, solic- the consent of such shipper or consignee, any information concerning the nature, kind, quantity, ited, etc.

destination, consignee, or routing of any property tendered or delivered to such common carrier or other person subject to this act for transportation in interstate or foreign commerce, which information may be used to the detriment or prejudice of such shipper or consignee, or which may improperly disclose his business transactions to a competitor, or which may be used to the detriment or prejudice of any carrier; and it shall also be unlawful for any person to solicit or

knowingly receive any such information which may be so used. Giving of information legal

Nothing in this act shall be construed to prevent the giving of such information in response process, etc. to any legal process issued under the authority of any court, or to any officer or agent of the Gov

ernment of the United States, or of any State, Territory, District, or possession thereof, in the

exercise of his powers, or to any officer or other duly authorized person seeking such information traffic

adjustings for the prosecution of persons charged with or suspected of crime, or to another carrier, or its

accounts, etc.

duly authorized agent, for the purpose of adjusting mutual traffic accounts in the ordinary course

of business of such carriers. Filing of reports, records, rates, etc.,

Sec. 21. That the board may require any common carrier by water, or other person subject may be required of to this act, or any officer, receiver, trustee, lessee, agent, or employee thereof, to file with it any ject to the act. periodical or special report, or any account, record, rate, or charge, or any memorandum of any

facts and transactions appertaining to the business of such carrier or other person subject to this

act. Such report, account, record, rate, charge, or memorandum shall be under oath whenever Penalty for

the board so requires, and shall be furnished in the form and within the time prescribed by the failure to file. board. Whoever fails to file any report, account, record, rate, charge, or memorandum as

required by this section shall forfeit to the United States the sum of $100 for each day of such

default. Penalty for filing false reports,

Whoever wilfully falsifies, destroys, mutilates, or alters any such reports, account, record, rate, charge, or memorandum, or wilfully files a false report, account, record, rate, charge, or memorandum shall be guilty of a misdemeanor, and subject upon conviction to a fine of not more

than $1,000, or imprisonment for not more than one year, or to both such fine and imprisonment. Complaint of any violation may

SEC. 22. That any person may file with the board a sworn complaint setting forth any vioiled by any person. lation of this act by a common carrier by water, or other person subject to this act, and asking

reparation for the injury, if any, caused thereby. The board shall furnish a copy of the complaint to such carrier or other person, who shall within a reasonable time specified by the board, satisfy

the complaint or answer it in writing. If the complaint is not satisfied the board shall, except Remedy for violations.

as otherwise provided in this act, investigate it in such manner and by such means, and make such order as it deems proper. The board, if the complaint is filed within two years after the cause of action accrued, may direct the payment, on or before a day named, of full reparation to the

complainant for the injury caused by such violation. Investigations by board

The board, upon its own motion, may in like manner and, except as to orders for the paymotion.

ment of money, with the same powers, investigate any violation of this act. Orders of board.

Sec. 23. Orders of the board relating to any violation of this act shall be made only after full hearing, and upon a sworn complaint or in proceedings instituted of its own motion.

All orders of the board other than for the payment of money made under this act shall continue in force for such time, not exceeding two years, as shall be prescribed therein, by the board, unless suspended, modified, or set aside by the board or any court of competent jurisdiction.

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Written reports of hearings to be

Sec. 24. That the board shall enter of record a written report of every investigation made kept.

under this act in which a hearing has been held, stating its conclusions, decision, and order, and, if reparation is awarded, the findings of fact on which the award is made, and shall furnish a copy

of such report to all parties to the investigation. Such reports as The board may publish such reports in the form best adapted for public information and evidence.

use, and such authorized publications shall, without further proof or authentication, be competent evidence of such reports in all courts of the United States and of the States, Territories, Dis

tricts, and possessions thereof. Board may reverse, modity, etc.,

Sec. 25. That the board may reverse, suspend, or modify, upon such notice and in such manorders and grant ner as it deems proper, any order made by it. Upon application of any party to a decision or rehearings.

order it may grant a rehearing of the same or any matter determined therein, but no such application for or allowance of a rehearing shall, except by special order of the board, operate as a stay

of such order. Lavestigation of discriminations by

Sec. 26. The board shall have power, and it shall be its duty whenever complaint shall be foreign Govern- made to it, to investigate the action of any foreign Government with respect to the privileges American vessels. afforded and burdens imposed upon vessels of the United States engaged in foreign trade when

ever it shall appear that the laws, regulations, or practices of any foreign Government operate in such a manner that vessels of the United States are not accorded equal privileges in foreign

trade with vessels of such foreign countries or vessels of other foreign countries, either in trade Board to report to or from the ports of such foreign country or in respect to the passage or transportation through on such to Presi

such foreign country of passengers or goods intended for shipment or transportation in such vessels of the United States, either to or from ports of such foreign country or to or from ports of other

foreign countries. It shall be the duty of the board to report the results of its investigation to President to se the President with its recommendations, and the President is hereby authorized and empowered leges for American to secure by diplomatic action equal privileges for vessels of the United States engaged in such vessels.

foreign trade. And if by such diplomatic action the President shall be unable to secure such equal privileges then the President shall advise Congress as to the facts and his conclusions by a special message, if deemed important in the public interest, in order that proper action may be taken

thereon. Power to sub

Sec. 27. That for the purpose of investigating alleged violations of this act, the board may witnesses,

by subpoena compel the attendance of witnesses and the production of books, papers, documents, and other evidence from any place in the United States at any designated place of hearing. Subpoenas may be signed by any commissioner, and oaths or affirmations may be administered, wit

nesses examined, and evidence received by any commissioner or examiner, or, under the direcFees of witnesses. tion of the board, by any person authorized under the laws of the United States or of any State,

Territory, District, or possession thereof, to administer oaths. Persons so acting under the direcEnforcement

of tion of the board and witnesses shall, unless employees of the board, be entitled to the same fees subpoenas.

and mileage as in the courts of the United States. Obedience to any such subpoena shall, on application by the board, be enforced as are orders of the board other than for the payment of

money. Giving of self

Sec. 28. That no person shall be excused, on the ground that it may tend to incriminate incriminating evidence by witnesses him or subject him to a penalty or forfeiture, from attending and testifying, or producing books, may be enforced.

papers, documents, and other evidence, in obedience to the subpoena of the board or of any court in any proceeding based upon or growing out of any alleged violation of this act; but no natural

person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transwitness action, matter, or thing as to which, in obedience to a subpoena and under oath, he may so testify be prosecuted on such evidence. or produce evidence, except that no person shall be exempt from prosecution and punishment for

perjury committed in so testifying. Enforcement of

Sec. 29. That in case of violation of any order of the board, other than an order for the payorders.

ment of money, the board, or any party injured by such violation, or the Attorney-General, may Where suits to be filed.

apply to a district court having jurisdiction of the parties; and if, after hearing, the court deter(a) Other than mines that the order was regularly made and duly issued, it shall enforce obedience thereto by a for payment of

writ of injunction or other proper process, mandatory or otherwise. (b) For payment Sec. 30. That in case of violation of any order of the board for the payment of money, the of money.

person to whom such award was made may file in the district court for the district in which such person resides, or in which is located any office of the carrier or other person to whom the order was directed, or in which is located any point of call on a regular route operated by the carrier, or in any court of general jurisdiction of a State, Territory, District, or possession of the United States having jurisdiction of the parties, a petition or suit setting forth briefly the causes for which he claims damages and the order of the board in the premises.

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In the district court the findings and order of the board shall be prima facie evidend as evidence.

facts therein stated, and the petitioner shall not be liable for costs, nor shall he be liable

at any subsequent stage of the proceedings unless they accrue upon his appeal. If a peti torney's fees a district court finally prevails, he shall be allowed a reasonable attorney's fee, to be ta

collected as part of the costs of the suit. Joinder of parties permitted.

All parties in whose favor the board has made an award of reparation by a single or be joined as plaintiffs, and all other parties to such order may be joined as defendants, in

suit in any district in which any one such plaintiff could maintain a suit against any o Service of proc- defendant. Service of process against any such defendant not found in that district may

in any district in which is located any office of, or point of call on a regular route oper: such defendant. Judgment may be entered in favor of any plaintiff against the defendai

to that plaintiff. Time for filing

No petition or suit for the enforcement of an order for the payment of moneys shall b

tained unless filed within one year from the date of the order. Venue and procedure.

Sec. 31. That the venue and procedure in the courts of the United States in suits to enforce, suspend, or set aside, in whole or in part, any order of the board shall, except a otherwise provided, be the same as in similar suits in regard to orders of the Interstate Co Commission, but such suits may also be maintained in any district court having jurisdi

the parties. General penalty provision.

Sec. 32. That whoever violates any provision of this act, except where a different

is provided, shall be guilty of a misdemeanor, punishable by fine not to exceed $5,000. Jurisdiction Interstate

Sec. 33. That this act shall not be construed to affect the power or jurisdiction of th merce Commission state Commerce Commission, nor to confer upon the board concurrent power or jurisdicti croached upon.

any matter within the power or jurisdiction of such commission; nor shall this act be co

to apply to intrastate commerce. Effect cisions

Sec. 34. That if any provision of this act, or the application of such provision to stitutionality. circumstances, is held unconstitutional, the remainder of the act, and the application

provision to circumstances other than those as to which it is held unconstitutional, shall affected thereby.

Sec. 35. That for the fiscal year ending June thirtieth, nineteen hundred and sev priation.

the sum of $100,000 is hereby appropriated, out of any moneys in the Treasury of the States not otherwise appropriated, for the purpose of defraying the expenses of the establis

and maintenance of the board, including the payment of salaries herein authorized. Clearance

Sec. 36. The Secretary of the Treasury is authorized to refuse a clearance to any ve be denied for refusal to take other vehicle laden with merchandise destined for a foreign or domestic port whenever h of United have satisfactory reason to believe that the master, owner, or other officer of such vessel o

vehicle refuses or declines to accept or receive freight or cargo in good condition tendered fo port of destination or for some intermediate port of call, together with the proper freight or portation charges therefor, by any citizen of the United States, unless the same is fully lad has no space accommodations for the freight or cargo so tendered, due regard being had proper loading of such vessel or vehicle, or unless such freight or cargo consists of merchanı

which such vessel or vehicle is not adaptable. During was

Sec. 37. That when the United States is at war or during any national emergency, th ence of which is declared by proclamation of the President, it shall be unlawful, withoi

obtaining the approval of the board: No vessel to be

(a) To transfer to or place under any foreign registry or flag any vessel owned in w transferred to foreign registry. in part by any person a citizen of the United States or by a corporation organized under ti

of the United States, or of any State, Territory, District, or possession thereof; or No vessel, shipyard, etc., to

(b) To sell, mortgage, lease, charter, deliver, or in any manner transfer, or agree sold, mortgaged, mortgage, lease, charter, deliver, or in any manner transfer, to any person not a citizen to foreigner.

United States, (1) any such vessel or any interest therein, or (2) any vessel documented und laws of the United States, or any interest therein, or (3) any shipyard, dry dock, ship-b or ship-repairing plant or facilities, or any interest therein; or

(c) To enter into any contract, agreement, or understanding to construct a vessel eign account. the United States for or to be delivered to any person not a citizen of the United States, v

expressly stipulating that such construction shall not begin until after the war or eme

proclaimed by the President has ended; or No agreement to

(d) To make any agreement or effect any understanding whereby there is vested in or foreigners. benefit of any person not a citizen of the United States, the controlling interest or a majority

voting power in a corporation which is organized under the laws of the United States, or State, Territory, District, or possession thereof, and which owns any vessel, shipyard, dry or ship-building or ship-repairing plant or facilities; or

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UNITED STATES SHIPPING ACT
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(e) To cause or procure any vessel constructed in whole or in part within the United States depart until docu- which has never cleared for any foreign port, to depart from a port of the United States before it

has been documented under the laws of the United States.

Whoever violates, or attempts or conspires to violate, any of the provisions of this section shall Penalty.

be guilty of a misdemeanor, punishable by a fine of not more than $5,000, or by imprisonment for not more than five years, or both.

Any vessel, shipyard, dry dock, ship-building or ship-repairing plant or facilities, or interest therein, sold, mortgaged, leased, chartered, delivered, transferred, or documented, or agreed to be sold, mortgaged, leased, chartered, delivered, transferred, or documented, in violation of any

of the provisions of this section, and any stocks, bonds, or other securities sold or transferred, or Forfeiture. agreed to be sold or transferred, in violation of any of such provisions, or any vessel departing in

violation of the provisions of subdivision (e), shall be forfeited to the United States. Contracts

Any such sale, mortgage, lease, charter, delivery, transfer, documentation, or agreement agreements violation sec- therefor shall be void whether made within or without the United States, and any consideration tion void.

paid therefor or deposited in connection therewith shall be recoverable at the suit of the person

who has paid or deposited the same, or of his successors or assigns, after the tender of such vessel, Consideration may be recovered.

shipyard, dry dock, ship-building or ship-repairing plant or facilities, or interest therein, or of such stocks, bonds, or other securities, to the person entitled thereto, or after forfeiture thereof to the United States, unless the person to whom the consideration was paid, or in whose interest it was deposited, entered into the transaction in the honest belief that the person who paid or

deposited such consideration was a citizen of the United States. Prosecutions forfeitures.

Sec. 38. That all forfeitures incurred under the provisions of this act may be prosecuted in the same court, and may be disposed of in the same manner, as forfeitures incurred for offenses against the law relating to the collection of duties.

Sec. 39. That in any action or proceeding under the provisions of this act to enforce a forfeiture the conviction in a court of criminal jurisdiction of any person for a violation thereof with respect to the subject of the forfeiture shall constitute prima facie evidence of such violation against the person so convicted.

Sec. 40. That whenever any bill of sale, mortgage, hypothecation, or conveyance of any

vessel, or part thereof, or interest therein, is presented to any collector of the customs to be Transferes must recorded, the vendee, mortgagee, or transferee shall file therewith a written declaration in such to citizenship, etc., form as the board may by regulation prescribe, setting forth the facts relating to his citizenship,

and such other facts as the board requires, showing that the transaction does not involve

violation of any of the provisions of section nine or thirty-seven. Unless the board, before such presentation, has failed to prescribe such form, no such bill of sale, mortgage, hypothecation, or conveyance shall be valid against any person whatsoever until such declaration has been filed. Any declaration filed by or in behalf of a corporation shall be signed by the president, secretary, or treasurer thereof.

Whoever knowingly makes any false statement of a material fact in any such declaration Penalty for false statement. shall be guilty of a misdemeanor and subject to a fine of not more than $5,000, or to imprisonment

for not more than five years, or both.

Sec. 41. That whenever by said section nine or thirty-seven the approval of the board is Board mayap required to render any act or transaction lawful, such approval may be accorded either absolutely conditionally. or upon such conditions as the board prescribes. Whenever the approval of the board is accorded

upon any condition a statement of such condition shall be entered upon its records and incorporated in the same document or paper which notifies the applicant of such approval. A violation

of such condition so incorporated shall constitute a misdemeanor and shall be punishable by Penalty for fine and imprisonment in the same manner, and shall subject the vessel, stocks, bonds, or other breach of conditions.

subject matter of the application conditionally approved to forfeiture in the same manner as though the act conditionally approved had been done without the approval of the board, but the offense shall be deemed to have been committed at the time of the violation of the condition.

Whenever by this act the approval of the board is required to render any act or transaction Penalty for lawful, whoever knowingly makes any false statement of a material fact to the board, or to any making false statements of fact member thereof, or to any officer, attorney, or agent thereof, for the purpose of securing such to secure board's approval.

approval, shall be guilty of a misdemeanor and subject to a fine of not more than $5,000, or to imprisonment for not more than five years, or both.

Sec. 42. That any vessel registered, enrolled, or licensed under the laws of the United States Vessels be shall be deemed to continue to be documented under the laws of the United States within the considered documented until reg- meaning of subdivision (b) of section thirty-seven until such registry, enrollment, or license is or license is can- surrendered with the approval of the board, the provisions of any other act of Congress to the celed by board.

contrary notwithstanding. President to is

SEC. 43. That the fact that a war or emergency has ended shall, for the purposes of this act, proclamation

emergency be evidenced by a proclamation of the President. Title of act.

Sec. 44. That this act may be cited as "Shipping act, 1916.”

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