50 U.S.C. § 82 — Procurement of ships and material during war

submitted 109 years ago by ch. 180 to r/title-50-WAR-AND-NATIONAL-DEFENSE · 696 words · no verdicts yet

in plain englishAI-generated · not legal advice

During a war, this law lets the President order companies to build ships and war material, take over factories that refuse, and cancel or change existing contracts. The government must pay fair value for anything it takes, and a company can sue for more if it disagrees with the price.

(a) Definitions. "Person" includes any individual, trust, firm, association, company, or corporation. "Ship" includes any boat, vessel, submarine, or aircraft, and their parts. "War material" includes arms, ammunition, stores, supplies, and equipment for ships and airplanes, and anything needed to produce them. "Factory" includes any factory, workshop, engine works, building used for manufacturing, assembling, or construction, plus any shipyard or dockyard. "United States" includes the Canal Zone and all U.S. territory and waters. (b) Presidential powers in wartime. In time of war, and only using money Congress has appropriated for it, the President may: First, order any person to build ships or war material the government needs, as long as that person normally makes that kind of thing. The person must comply, and the order takes priority over that person's other existing orders and contracts. If a Navy-factory owner refuses to give the United States that priority, or refuses to build what is ordered at a price the President sets as reasonable, the President may take immediate possession of all or part of that factory and use it as needed. Second, modify or cancel any existing contract for building, producing, or buying ships or war material. If the contractor will not go along with the modified contract, the President may take possession of all or part of that contractor's factory. Third, require a factory owner to put all or part of that factory's output at the government's disposal, and — within appropriated funds — deliver it in the quantities, at the times, and at the reasonable price the President sets. Fourth, requisition and take over, for government use or operation, all or part of any factory that builds or produces ships or war material, whether or not the United States already has a contract with its owner. (d) Compensation. Whenever the United States cancels or modifies a contract, or uses, takes over, or requisitions a factory (or part of one), ships, or war material under subsection (b), it must pay just compensation, as determined by the President. If the person entitled to that payment is not satisfied with the President's amount, they must still be paid 50 percent of it, and may then sue the United States — under section 1346 or section 1491 of title 28 — to recover whatever additional amount, on top of that 50 percent, would make the total payment fully just.

the actual law source: uscode.house.gov ↗public domain

(a) Definitions

The word “person” as used in subsections (b) and (c) shall include any individual, trustee, firm, association, company, or corporation. The word “ship” shall include any boat, vessel, submarine, or any form of aircraft, and the parts thereof. The words “war material” shall include arms, armament, ammunition, stores, supplies, and equipment for ships and airplanes, and everything required for or in connection with the production thereof. The word “factory” shall include any factory, workshop, engine works, building used for manufacture, assembling, construction, or any process, and any shipyard or dockyard. The words “United States” shall include the Canal Zone and all territory and waters, continental and insular, subject to the jurisdiction of the United States.

(b) Presidential powers

In time of war the President is authorized and empowered, in addition to all other existing provisions of law:

First. Within the limits of the amounts appropriated therefor, to place an order with any person for such ships or war material as the necessities of the Government, to be determined by the President, may require and which are of the nature, kind, and quantity usually produced or capable of being produced by such person. Compliance with all such orders shall be obligatory on any person to whom such order is given, and such order shall take precedence over all other orders and contracts theretofore placed with such person. If any person owning, leasing, or operating any factory equipped for the building or production of ships or war material for the Navy shall refuse or fail to give to the United States such preference in the execution of such an order, or shall refuse to build, supply, furnish, or manufacture the kind, quantity, or quality of ships or war material so ordered at such reasonable price as shall be determined by the President, the President may take immediate possession of any factory of such person, or of any part thereof without taking possession of the entire factory, and may use the same at such times and in such manner as he may consider necessary or expedient.

Second. Within the limit of the amounts appropriated therefor, to modify or cancel any existing contract for the building, production, or purchase of ships or war material; and if any contractor shall refuse or fail to comply with the contract as so modified the President may take immediate possession of any factory of such contractor, or any part thereof without taking possession of the entire factory, and may use the same at such times and in such manner as he may consider necessary or expedient.

Third. To require the owner or occupier of any factory in which ships or war material are built or produced to place at the disposal of the United States the whole or any part of the output of such factory, and, within the limit of the amounts appropriated therefor, to deliver such output or parts thereof in such quantities and at such times as may be specified in the order at such reasonable price as shall be determined by the President.

Fourth. To requisition and take over for use or operation by the Government any factory, or any part thereof without taking possession of the entire factory, whether the United States has or has not any contract or agreement with the owner or occupier of such factory.

(d)1 Compensation for commandeered material

Whenever the United States shall cancel or modify any contract, make use of, assume, occupy, requisition, or take over any factory or part thereof, or any ships or war material, in accordance with the provisions of subsection (b), it shall make just compensation therefor, to be determined by the President, and if the amount thereof so determined by the President is unsatisfactory to the person entitled to receive the same, such person shall be paid fifty per centum of the amount so determined by the President and shall be entitled to sue the United States to recover such further sum as added to said fifty per centum shall make up such amount as will be just compensation therefor, in the manner provided for by section 1346 or section 1491 of title 28.

Source credit: (Mar. 4, 1917, ch. 180, 39 Stat. 1192.)

history & why it existsrecord from the source credit

1917Enacted · Act of Mar. 4, 1917, ch. 180 · 39 Stat. 1192

A history note hasn’t been published yet. The record shows enactment by ch. 180 on 1917-03-04.

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