"In a. few cases the settlement agreement provides for the payment of money to the Government by the contractor, The total of these payments is approximately $600,000. It should be observed that no inference cof improper conduct should be drawn from the fact of these payments. They represent a mutual adjustment on a businesslike basis of conflicting contentions, In accordance with the terms of the statute, the settlement agreement will be referred to the Attorney General and the Attorney General may, if dissatisfied, appeal to the Court of Claims within a period of sixty days from the date the settlement is agreed upon by the Commission'and the contractor.
The statement of Mr. Kennedy regarding the operating-differential sub-is as follows:
"Congress, in its desire to promote the foreign commerce of: the United States to aid in the national defence, provided in the 1936 Act novel method of developing an adequate and well-balanced merchant marine.
"Although subsidies in a variety of forms are granted by nearly all nations to their maritime shipping, no country has adopted the device found in Title VI of the present law.
"Under this statute the Commission is authorized to execute operating differential subsidy contracts with citizens of the United States operating vessels used in' essential services in the foreign commerce of the United. States. Such governmental assistance is not available to operators in the coastwise trade, To qualify for 2 subsidy, the contractor must own, or be able to provide, such vessels as may be necessary to meet competitive conditions and promote foreign commerce. addition, they applicant must be found by the Commission to possess the ability, expe: ence, and financial resources neces-for these essential operations. Finally, the Commission is required as a condition of executing such a contract to determine that the granting of aid is necessary to place the citizen on a parity with his foreign competitor "A tentative settlement has been reached between the Commission and the Tacoma Orintal S. S. Ca., which as yet-has not been reduced to formal writing, this company having filed a petition for reorganization under Sec tion 77-B of the Bankruptsy Act, "Settlement agreements have not been reached with the following companies: American Line Steamship Corporation, a subsidiary of the LM.M.; Dollar Steamship Lines, Inc., Ltd.; Munson Steamship Line; United Fruit Ca; Waterman Steamship Corporation.
"The adjustment of the Munson Line claims has been unusually difficult because the company for a number of years has been in reorganiza tion under Section 77-B of the Bankrupted Act. Many complications are
Text read from the printed page and cleaned; old type leaves the occasional error.