B-131929, JULY 15, 1957, 37 COMP. GEN. 20

B-131929: Jul 15, 1957

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DOES NOT PRECLUDE TANKERS WHICH ARE TWELVE OR MORE YEARS OLD FROM ELIGIBILITY FOR TRADE-IN UNDER SUBSECTIONS 510 (A/-/G) OF THE 1956 ACT. 1957: REFERENCE IS MADE TO YOUR LETTER OF MAY 20. THAT A DETERMINATION IS MADE BY THE SECRETARY OF COMMERCE THAT THE TANKERS ARE "DESIRABLE FOR INCLUSION IN THE NATIONAL DEFENSE RESERVE.'. THE LEGISLATIVE RECORD OF SUBSECTION (H) ESTABLISHES THAT ONE OF ITS PRIMARY OBJECTIVES IS TO PROVIDE A NEEDED RESERVE OF USABLE TANKERS.

B-131929, JULY 15, 1957, 37 COMP. GEN. 20

MARITIME MATTERS - TANKERS - TRADE-IN ELIGIBILITY - OBSOLETE VESSELS MORE THAN TWELVE YEARS OLD THE TANKER TRADE-IN PROVISION IN SUBSECTION 510 (H) OF THE MERCHANT MARINE ACT, 1936, 46 U.S.C. 1160 (H), WHICH PERMITS, UNTIL JULY 1, 1958, THE ACQUISITION OF TANKERS NOT LESS THAN TEN YEARS OLD, DOES NOT PRECLUDE TANKERS WHICH ARE TWELVE OR MORE YEARS OLD FROM ELIGIBILITY FOR TRADE-IN UNDER SUBSECTIONS 510 (A/-/G) OF THE 1956 ACT, 46 U.S.C. 1160 (A/-/G), RELATING TO OBSOLETE VESSELS NOT LESS THAN TWELVE YEARS OLD.

TO THE ADMINISTRATOR, MARITIME ADMINISTRATION, JULY 15, 1957:

REFERENCE IS MADE TO YOUR LETTER OF MAY 20, 1957, INQUIRING AS TO WHETHER WE CONCUR IN YOUR INTERPRETATION OF SECTION 510 OF THE MERCHANT MARINE ACT, 1936, AS AMENDED, 46 U.S.C. 1160, AS IT RELATES TO TANKER TRADE-INS.

SECTION 510, AS ADDED BY THE ACT OF AUGUST 4, 1939, 53 STAT. 1182, CONSISTED OF SUBSECTIONS (A/-/G), 46 U.S.C. 1160 (A/-/G), AND PRESCRIBED THE CONDITIONS UNDER WHICH "ANY OBSOLETE VESSEL" (AS DEFINED THEREIN, INCLUDING THE REQUIREMENT THAT THE VESSEL BE NOT LESS THAN 17 YEARS OLD) COULD BE TRADED IN. PUBLIC LAW 586, 82D CONGRESS, 66 STAT. 762, ADDED A PROVISO TO SUBSECTION (A), 46 U.S.C. 1160 (A), TO PERMIT, UNTIL JUNE 30, 1958, THE TRADE-IN OF ANY "OBSOLETE" VESSELS NOT LESS THAN 12 YEARS OLD.

SUBSECTION 510 (H), ADDED BY PUBLIC LAW 574, 83D CONGRESS, 46 U.S.C. 1160 (H), AUTHORIZES (UNTIL JULY 1, 1958) THE ACQUISITION OF TANKERS NOT LESS THAN 10 YEARS OLD, PROVIDING THEY MEET THE OTHER CONDITIONS SET FORTH THEREIN, AND THAT A DETERMINATION IS MADE BY THE SECRETARY OF COMMERCE THAT THE TANKERS ARE "DESIRABLE FOR INCLUSION IN THE NATIONAL DEFENSE RESERVE.'

AS STATED IN YOUR LETTER, THE LEGISLATIVE RECORD OF SUBSECTION (H) ESTABLISHES THAT ONE OF ITS PRIMARY OBJECTIVES IS TO PROVIDE A NEEDED RESERVE OF USABLE TANKERS. WE PERCEIVE NOTHING IN THE LANGUAGE OF SUBSECTION (H) OR ITS LEGISLATIVE HISTORY TO PRECLUDE THE TRADE-IN UNDER ITS PROVISIONS OF TANKERS WHICH, BY VIRTUE OF HAVING BECOME 12 YEARS OF AGE, WOULD BE ELIGIBLE FOR TRADE-IN UNDER SUBSECTIONS (A/ /G). IN OTHER WORDS, WE PERCEIVE NO BASIS FOR CONSTRUING SUBSECTION (H) AS BEING LIMITED IN ITS APPLICATION TO TANKERS NOT LESS THAN 10 YEARS OLD NOR MORE THAN 12 YEARS OLD.

ACCORDINGLY, WE CONCUR IN YOUR CONCLUSION THAT, UNTIL JULY 1, 1958, A TANKER MEETING ALL OF THE REQUIREMENTS BOTH UNDER SUBSECTIONS (A/-/G) AND UNDER SUBSECTION (H) MAY BE TRADED IN UNDER EITHER OF THOSE AUTHORIZATIONS.