MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Proclamation No. 771, October 22, 1941 ]

PUBLISHING THE EXECUTIVE ORDER OF THE PRESIDENT OF THE UNITED STATES, DATED AUGUST 26, 1941, AUTHORIZING THE UNITED STATES MARITIME COMMISSION TO ISSUE WARRANTS WITH RESPECT TO VESSELS, AND THE RULES AND REGULATIONS ISSUED THEREUNDER BY THE UNITED STATES MARITIME COMMISSION.

For the information and guidance of all concerned, I, MANUEL L. QUEZON, President of the Philippines, do hereby publish the following Executive Order of the President of the United States, dated August twenty-six, nineteen hundred forty-one, and the rules and regulations issued thereunder by the United States Maritime Commission:

1. “EXECUTIVE ORDER

“AUTHORIZING THE UNITED STATES MARITIME COMMISSION TO ISSUE
WARRANTS WITH RESPECT TO VESSELS

“Whereas the act of July 14, 1941, Public Law 173, 77th Congress, provides that the President may, whenever he deems it' in the interest of national defense, including the maintenance of essential supplies and services, authorize the United States Maritime Commission to issue warrants as provided in such act with respect to vessels documented under the laws of the United States and vessels not so documented but owned by citizens of the United States, and, upon application therefor, to foreign-flag vessels not owned by citizens of the United States; and

“Whereas the interest of national defense, including the maintenance of essential supplies and services, requires that provision be made through the issuance of warrants to insure the prompt delivery of materials essential to the national defense through (1) the importation of substantial quantities of strategic and critical materials, (2) the transportation of substantial quantities of materials requested by defense agencies, and (3) the transportation in the foreign or domestic commerce of the United States of substantial quantities of materials essential to the defense of the United States;

“Now, therefore, by virtue of the authority vested in me by the said act of July 14, 1941, I hereby authorize the United States Maritime Commission to issue warrants as provided in such act with respect to the class or classes of vessels therein described.

“FRANKLIN D. ROOSEVELT

“THE WHITE HOUSE,
“August 26, 1941.”

2. “UNITED STATES MARITIME COMMISSION SHIP WARRANT REGULATIONS

“Pursuant to the authority conferred by the Executive Order of August 26, 1941, the Act of July 14, 1941 (Public Law 173, 77th Congress), and subject to the approval of the President these rules and regulations are hereby promulgated:

“I. Definitions

“1.01 As used in the Regulations in this part the following terms unless the context indicates otherwise, shall be construed as follows:

“(a) ‘Vessel' shall mean watercraft or other artificial contrivance, documented under the laws of the United States or of a foreign Nation, of whatsoever description, used or capable of being used as a means of transportation on water, other than a vessel plying exclusively the inland waters (including rivers, canals, harbors, bays, sounds and lakes, other than the Great Lakes) of the United States, unless the Commission in specific cases shall determine that in the interest of national defense, such a vessel should hold a warrant:

“(b) ‘Citizen of the United States' shall mean in addition ‘to natural persons, citizens ‘ under the laws of the United States) corporations, partnerships, and as­sociations existing, authorized, or organized under the laws of the United States or any State, District, Territory, or possession thereof;

“(c) ‘Commission' shall mean the United States Maritime Commission;

“(d) ‘Act' shall mean An Act, Approved July 14, 1941 (Public Law 173, 77th Congress;

“(e) ‘Facilities' shall include services pertaining to, and physical equipment employed in the loading, discharging, lighterage or storage of cargo, the procurement of bunker fuel and coal, and towing, overhauling, dry-docking or repair of vessels as defined herein, other than a facility incapable of or not engaging in the business of servicing vessels of more than 1,000 gross tons;

“(f) ‘Warrant' shall mean the original copy of the document hereinafter described in Section 3.02 issued by the Commission with respect to a vessel or the license papers of vessels of less than 1,000 gross tons as provided in Section 3.01 (c);

“(g) ‘Undertaking' shall mean a document filed as an application for a warrant or warrants in the form in Section 4.02 set forth;

“(h) ‘Warrant holding vessel' shall mean any vessel documented under the laws of the United States or of a foreign nation, exhibiting a valid warrant of any class provided for in Section 3.01 hereof; or any vessel (other than a railroad car ferry, tug boat, salvage vessel or other vessel used in servicing vessels) which exhibits license paper showing it to be of less than 1,000 gross tons;

“(i) ‘Non-warrant holding vessel shall mean any other vessel documented under the laws of the United States or of a foreign nation not included in (h) above;

“(j) ‘Charter hire or equivalent shall mean compensation under any (1) charter party, or (2) bill of lading or other contract of affreightment; and

“(k) ‘Repair' shall include any reconstruction, alteration, reconditioning, outfitting or equipping of vessels.

“II. Priorities

“2.01 Thirty days after the approval of these Regulations by the President, the use of facilities in the United States, its Territories or Possessions, including the Philippine Islands and the Panama Canal Zone, by vessels shall be subject to priority in accordance with the terms and provisions of the Act, and these Regulations, and Executive Order of August 26, 1941.

“2.02 Every facility shall accord priority as to the services rendered by such facility to warrant holding vessels as against nonwarrant holding vessels, notwithstanding the fact that a non-warrant holding vessel presents itself or applies for such service before a warrant holding vessel.

“2.03 As between warrant holding vessels, facilities shall give priority in accordance with the ascending order of the classes shown by their warrants; for example, a vessel exhibiting a Class A-l warrant is to have preference over all vessels exhibiting Class A-2 warrants or lower.

“2.04 In case a facility shall have begun servicing a warrant holding vessel, it need not suspend such servicing because of the subsequent request for such service on behalf of a vessel bearing a warrant of a higher class than that of the vessel being serviced.

“2.05 In case a facility shall have begun servicing a non-warrant holding vessel and a warrant holding vessel presents itself or applies for service at such facility, the servicing of the warrant holding vessel shall not be postponed or delayed because of the servicing of the non-warrant holding vessel and the servicing of the non-warrant holding vessel shall be suspended or deferred to the extent necessary: Provided, That, if the servicing of the non-warrant holding vessel has proceeded to such a point that it would be unsafe to remove it, or if the time required to remove it and to prepare the facility for servicing the warrant holding vessel would exceed the time required to complete the servicing, such servicing may be continued and completed.

“2.06 As between warrant holding vessels of the same class, preference shall be given by facilities in the usual order of business: Provided, That when necessary and advisable in the interests of national defense, the Commission may specify the order in which vessels holding warrants shall be accorded priority at any facility or facilities.

“2.07 If an application for service is received by a facility on behalf of a warrant holding vessel, such facility shall not service a non-warrant holding vessel if the servicing of such non-warrant holding vessel would impair the ability of the facility to service such warrant holding vessel.

“2.08 All contracts entered into with respect to servicing by facilities shall contain appropriate conditions to the effect that priority will be granted by the facilities in the manner herein provided, and that no duty or liability shall accrue because of the necessity of granting any priority herein provided.

“III. Warrants

“3.01 Warrants for vessels will be issued with the following classes: “(a) Class A-l shall apply to vessels of 1,000 or more gross tons employed under an undertaking relating to (1) the importation of substantial quantities of strategic and critical materials, or (2) the transportation of substantial quantities of other materials when such transportation is requested by any defense agency, or (3) the transportation in the foreign or domestic commerce of the United States of substantial quantities of materials deemed by the Commission to be essential to the defense of the United States, and which vessels are of a type and capacity which the Commission deems appropriate for such importation or transportation. Class A-l shall also apply to railroad car ferries, and to tug boats, salvage vessels and other vessels used in servicing vessels;

“(b) Class A-2 shall apply to vessels of 1,000 or more gross tons employed in the transportation in the foreign or domestic commerce of the United States of substantial quantities of materials deemed by the Corn-mission to be essential to the economic welfare of the United States, or the employment of which is otherwise desirable for the maintenance of such foreign or domestic commerce; and

“(c) Class A-3 shall consist of vessels of less than 1,000 gross tons (other than railroad car ferries, tug boats, salvage and ether vessels used in servicing vessels). Vessels in: Class A-3 shall not apply for nor hold a warrant but shall instead exhibit their license papers to facilities as evidence of their classification hereunder.

“3.02 The form of warrant shall be as follows:

UNITED STATES OF AMERICA
UNITED STATES MARITIME COMMISSION
No………….., Class……….

MERCHANT SHIP WARRANT

The {motor/steam} Vessel …………………………………………… , of ……………………… net tonnage, documented at the port of ……………………………………………… under the laws of……………………………………………. , is entitled to priority of class …………… with respect to the use of facilities for loading, discharging,

lighterage or storage of cargoes, the procurement of bunker fuel or coal, and the towing, overhauling, drydocking or repair of merchant vessels in the United States, its Territories, and Possessions, including the Philippine Islands and the Panama Canal Zone, as provided by An Act, Approved July 14, 1941, and the Regulations made thereunder.

THIS WARRANT IS REVOCABLE AT ANY TIME WITHOUT NOTICE

Unless revoked it is valid until …………………………………………… , 194…..

UNITED STATES MARITIME COMMISSION

By: ………………………
Secretary

“IV. Application for Warrants

“4.01 Warrants (except for vessels in Class A-3) may be issued by the Commission upon application by the owner, charterer or duly authorized managing agent, for any vessel documented under the laws of the United States, or owned by a citizen of the United States, or documented under the laws of a foreign nation and not owned by a citizen of the United States.

“4.02 The form of such application shall consist of an undertaking with Schedules A and B attached thereto in the following forms:

UNITED STATES MARITIME COMMISSION

UNDERTAKING, FOR MERCHANT SHIP WARRANTS

The undersigned hereby applies for Merchant Ship Warrants for the vessels described in Schedules A and B attached hereto and made a part hereof. The undersigned undertakes:

(1) To employ said vessels in the trade route set opposite the name of each vessel, and in no other, except with the consent of the United States Maritime Commission, unless said Commission shall otherwise prescribe by fair and reasonable conditions imposed in the issuance or continued effectiveness of such warrants;

(2) To carry only the class or classes of cargo or passengers indicated in the attached Schedule A with respect to each of such vessels, unless said Commission shall otherwise prescribe by fair and reasonable conditions imposed in the issuance or continued effectiveness of such warrants;'

(3) To charge not more than the amount set forth in the attached Schedule A as charter hire or equivalent, unless said Commission shall otherwise prescribe by fair and reasonable conditions imposed in the issuance or continued effectiveness of such warrants;

(4) To inform the Commission in writing of any commitments with respect to any vessels, under the control of the undersigned entered into with respect to voyages to be performed after the date of the filing hereof;

(5) To inform the Commission of any vessels which may come under or pass from the control of the undersigned in any manner after the date of the filing hereof;

(6) To obligate any charterer or subcharterer of any vessel under the control of the undersigned by an appropriate condition in the agreement for such charter or subcharter, to accept, for the period of such agreement, each and all of the terms of this undertaking with respect to any vessel so chartered or subchartered; and

(7) To return any warrant to the Commission by registered mail as soon as possible after receipt of notice of revocation or modification thereof by the Commission or after surrender or expiration thereof.

The undersigned understands that this undertaking is given to induce the issuance of the warrants requested; that any warrant issued will be in reliance upon the truth of the statements herein and in Schedules A and B contained; and that any such warrant may be modified or revoked at any time by the Commission. In filing this undertaking the undersigned is acting for and on behalf of the masters and owners or charterers of all of the vessels subject hereto.

………………………
(Applicant)

Date……….., 194…………. By:……………………………….
(Title)

SCHEDULE A

(For all vessels for which warrants are requested)
TO BE APPENDED TO UNDERTAKING

Filed by…………………, on …………….. 194…….

…………………………………………………………

(Maximum charter)

Name of Vessel Trade Voyages Cargo Passengers Hire or Equivalent1…………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

SCHEDULE B

(For each vessel for which a warrant is requested)

TO BE APPENDED TO UNDERTAKING

Filed by………………., on……………, 194…….

1. Name of owner/agents/ charterers ……………………
(Strike inapplicable)

2. Name and type of vessel S.S./M.S……………………

3. Port of Registry…………………………………………

4. Flag………………………………………………………

5. Official No. …………………………………………….

6. Gross register tonnage………………………………….

7. Net register tonnage…………………………………….

8. Total deadweight tonnage………………………………

9. Draft light…………….loaded …………………………

10. Bale cubic (total cargo cubic) capacity………………

11. If tanker, indicate cubic capacity for dry cargo ………

12. Grain cubic capacity ………………………………….

13. Number of hatches and size of each………………….

14. Number of decks (cargo space)……………………….

15. Height of tweendecks………………………………….

16. Lifting capacity of booms …………………………….

17. Heavy lift equipment and hatch location…………….

18. Bunker capacity ………………………………………

19. Type bunkers used ……………………………………

20. Daily fuel consumption at sea……………………….

21. Passenger accommodations: Number of rooms ………

Total capacity, each class …………………………..

22. Fresh water capacity: Domestic ……. boiler ………….

daily evaporator capacity ………………..

23. Average speed………………………………………….

24. Refrigerated space: Number of compartments………..

Cubic………… Minimum temperature…………….

25. No. of Cargo deep tanks……. Cubic………. deadweight

capacity ……………….

26. Now trading………………………………………………

“4.03 With respect to undertakings for warrants the Commission in approving any undertaking shall have the right to issue a warrant of the class it deems appropriate, subject to such fair and reasonable conditions in modification of or in addition to any representation contained in the undertaking relating to the trade in which the vessel shall be employed, the voyages which it shall undertake, the class or classes of cargo or passengers to be carried, the maximum rate of charter hire or equivalent, and such incidental and supplementary matters as are-prescribed by the Commission in the form of undertaking.

“4.04 The determination under section 4.03 hereof by the Commission as to what conditions are fair and reasonable shall be final, but the acceptance of a warrant issued subject to compliance with such conditions shall not constitute a waiver of any rights of the owner, charterer or managing agent which may arise from compliance with any such conditions.

“V. Modification, revocation or surrender

“5.01 The Commission reserves the right to revoke any warrant without prior notice or hearing if it is reasonably satisfied that the vessel for which such warrant is issued has violated in any substantial manner the representations contained in the undertaking filed for the issuance of such warrant, or any conditions imposed by the Commission under section 4.03.

“5.02 Warrants may be revoked or modified after reasonable notice to the owner, charterer or managing agent, if, in the opinion of the Commission, the undertaking supporting such warrant, or the conditions attached to the issuance thereof, are not at the time of such notice appropriate to the classification shown by the warrant or the purposes of the Act.

“5.03 In the event of amendment of these Regulations, the Commission reserves the right to withdraw any or all warrants for modification or revocation.

“5.04 Upon revocation, modification, expiration or surrender, the warrant shall be removed from the vessel and returned immediately to the Commission.

“VI. In General

“6.01 Nothing herein shall require the owner or charterer of any vessel to relinquish the manning, storing, victualling, supplying, fueling, maintaining, or repairing of his vessel to any other person or persons.

“6.02 Nothing herein shall authorize the exaction of any sum from any holder of a warrant solely for the privilege of carrying cargo on any route.1aшphi1

“6.03 There shall be no unjust discrimination between ports of the United States.

“6.04 The right is reserved to modify, amend, supplement or rescind these regulations.

“VII. Prohibition and Penalty

“7.01 No person shall in any manner alter, erase or insert any matter in the face of any warrant or reproduce or counterfeit any warrant.

“7.02 No person shall make any wilfully false statement or representation in order to procure or retain a warrant or to procure or retain a classification for a warrant.

“7.03 Section 6 of the Act provides:

” ‘Whoever wilfully violates any rule, regulation, or order issued under the authority conferred herein shall be punished by a fine of not more than $5,000, or by imprisonment for not more than two years or both; Provided, That the District Court of the Canal Zone and the several courts of first instance of the Commonwealth of the Philippine Islands shall have jurisdiction over offenses committed against the provisions of this Act within the Canal Zone and the Philippine Islands, respectively.'

“By order of the Commission:
“H. C. PEET, JR.
Secretary

“Approved:
“FRANKLIN D. ROOSEVELT
“THE WHITE HOUSE, August 26, 191,1.”

In witness whereof, I have hereunto set my hand and caused the seal of the Commonwealth of the Philippines to be affixed.

Done at the City of Manila, this twenty-second day of October, in the year of Our Lord, nineteen hundred and forty-one, and of the Commonwealth of the Philippines, the sixth.

MANUEL L. QUEZON
President of the Philippines

By the President:

JORGE B. VARGAS
Secretary to the President



Footnote

1 If applicant is to carry cargo under bills of lading, the actual rates under which each of- the commodities 13 to be transported must be appended to this undertaking unless a tariff or minimum rate schedule showing such rates already is on file with the Commission in connection with a conference agreement or otherwise, or is on file pursuant to law with the Interstate Commerce Commission or any State Commission, in which case such tariff or minimum rate schedule may be incorporated into this Schedule A by reference as “Maximum Charter Hire or Equivalent.”


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