Public Law 75–311

That section 402 of the Merchant Marine Act, 1936, be hereby amended by adding thereto a new subsection (d) to read as follows:

“(d)“(d)

Notwithstanding the provisions of the Acts making appropriation for the Treasury and Post Office Departments for the. fiscal years ending June 30, 1934, June 30, 1935, June 30, 1936, and June. 30, 1937, which were approved, respectively, March 3, 1933 (47 U. S.

47 Stat. 1510; 48 Stat. 446; 49 Stat. 239, 1650.

Stat. L. 1510), March 15, 1934 (48 U. S. Stat. L. 446), May 14, 1935 (49 U. S. Stat. L. 239), and June 23, 1936 (49 U. S. Stat. L. 1850),

Adjustment of differences and claims arising out of contracts alleged to have been made under 1928 Act.

45 Stat. 692.

46 U. S. C. § 891e; Supp. III, § 891e.

as soon as practicable after the enactment of this subsection, and within six months after its enactment, the Commission, in its discretion, may proceed to attempt to adjust all differences with the holder of any contract alleged to have been made by the Postmaster General pursuant to the provisions of the Merchant Marine Act of 1928 for the carriage of mail, in cases where a suit, pending in the Court of Claims at the time of the enactment of this subsection and based upon the alleged termination or breach of such contract, had been filed by such contractor prior to July 1, 1937, including any claims of the contractor against the United States and any claims of the United States against such contractor, arising out of said contract In adjusting such differences and claims the Commission shall not take into consideration any prospective or speculative future profits, but shall consider any and all payments theretofore made by the United States pursuant to such mail contract, and the profits realized as a result thereof, and the interest paid and the interest due according to law on construction loans, and all other facts deemed pertinent. If the contractor shall be willing to accept such determination and receive payment for the amount determined by the Commission to be a fair adjustment of such differences, the Commission is authorized and directed, concurrently with the dismissal of any suit based upon the alleged termination or breach of such contract filed by such contractor with prejudice and without costs, to enter into and execute a settlement agreement with such contractor, wherein such contractor shall release the United States from any and all claims arising from such contractor’s mail contract: Provided, That the Attorney General of

Proviso.

Review by Attorney General; nullification of agreement.

the United States shall review such settlement agreement, and if he is dissatisfied with such finding shall notify the Commission and the contractor in writing within sixty days and upon such notice the settlement agreement shall become null and void; otherwise the contractor

Payment, if satisfactory.

shall be paid any sum of money due him under such settlement agreement out of such appropriation as the Congress may hereafter provide for this purpose from funds controlled by the Commission or from the general funds of the Treasury: Provided, That if

Provisos.

Application of sums payable to contractor as credit on construction loan, etc.

any sum of money is payable to the contractor under the terms of any settlement agreement made pursuant to this subsection, such sums shall be applied (a) as a credit upon any amount owing by the contractor to the United States on any loan agreement entered into under

41 Stat. 993.

46 U. S. C. § 870; Supp. III, § 870.

Federal taxes.

section 11 of the Merchant Marine Act of 1920, as amended, or upon unpaid ship sales mortgage notes, (b) Federal taxes of the contractor due or to become due for the taxable year in which the settlement is made, and (c) on any other indebtedness of the contractor

Any other indebtedness to United States.

to the United States. If any such sums are applied as a credit as aforesaid, then the Comptroller General of the United States shall execute a discharge of the amount of such debts satisfied thereby. Nothing herein shall affect any right which such contractor may now have to maintain a, suit arising out of such contract against the United States in the Court of Claims unless such suit is dismissed as provided herein: Provided further, That nothing herein shall be construed to affect any

Right or defense in any suit pending in Court of Claims.

Not to be construed as validating any alleged contract involved, etc.

right or defense of any party in any suit pending in the Court of Claims: And provided further, That the enactment of this legislation shall not be considered or construed by the Commission or by any court as a legislative interpretation in favor of the validity or legality of any alleged contract involved in, or the basis of, any controversy or litigation, adjustment of which is permitted by this subsection.”

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