CANAL ZONE CODE

APRIL 22, 1935.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. BLAND, from the Committee on Merchant Marine and Fisheries, submitted the following

REPORT

[To accompany H. R. 6719]

The Committee on Merchant Marine and Fisheries, to whom was referred the bill (H. R. 6719) to amend the Canal Zone Code, having had the same under consideration, report it back to the House with the following amendments, and, as so amended, recommend that the bill do pass.

The amendments proposed by your committee are as follows:

Page 2, line 8, strike out the word "Semitation" and insert the correct word "sanitation."

Page 8, line 22, insert after the word "apply" the words "to public vessels of the United States or of the Republic of Panama, or”. The proviso will then read:

Provided, however, That this section shall not apply to public vessels of the United States or of the Republic of Panama, or to tugboats or towboats propelled by steam.

The first amendment, as is readily seen, is purely a typographical correction.

The second amendment is made necessary, according to the Governor of the Panama Canal Zone, by reason of the fact that the present law now makes the exceptions for these public vessels, and failure to except such vessels in the same manner as now provided by law was the result of a misunderstanding when the draft of the bill was prepared.

This bill was introduced at the request of the Governor of the Panama Canal Zone through the Secretary of War and its early enactment has been requested.

The reasons for the enactment of this legislation are fully set out in the letter of the Secretary of War requesting the introduction of the bill and in the explanatory statement of the Governor of the

Panama Canal Zone which accompanied the letter of the Secretary of War. They are as follows:

WAR DEPARTMENT, Washington, March 8, 1935.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES,

Washington, D. C.

DEAR MR. SPEAKER: There is transmitted herewith draft of a bill to amend the Canal Zone Code, which has been prepared by the Governor of the Panama Canal. There is also attached a statement of the Governor explaining the nature and need of the various amendments proposed.

It is suggested that, in conformity with the rule recently adopted by the House, this bill should be referred to the Committee on Merchant Marine and Fisheries.

For the reasons stated by the Governor, it is recommended that early consideration be given to enacting this proposed legislation.

Very respectfully,

GEO. H. DERN, Secretary of War. STATEMENT OF THE GOVERNOR OF THE PANAMA CANAL AS TO THE NATure of AND NEED FOR THE AMENDMENTS PROPOSED TO THE CANAL ZONE CODE EMBODIED IN THE VARIOUS SECTIONS OF THE ATTACHED DRAFT OF BILL Section 1: This authorizes the Governor, under regulations to be prescribed by him, to dispose of papers not needed for current business and which have no permanent or historical value. Similar authority was vested in the head of the Canal organization under section 5, of the Sundry Civil Act of August 24, 1912 (37 Stat. 486), which provision, through oversight, was not included in the new Canal Zone Code. The proposed amendment is not believed to be in conflict with the provisions of the National Archives Act, approved June 19, 1934 (48 Stat. 1122), and is quite necessary in order that a practical means may be available for the disposal of useless records and papers. It merely authorizes the continuance of the practice which has always been followed here under authority of the Sundry Civil Act herein referred to.

Section 2: The purpose of this amendment is not to vest the President with additional powers, but merely to ratify the powers which he has exercised continuously with respect to the conditions of employment for Canal personnel under the original authority contained in the Panama Canal Act of August 24, 1912, and heretofore considered confirmed in the decision of the Supreme Court in the case of McConaughey v. Morrow (263 U. S. 39), but recently questioned by the Comptroller General in his decisions dated December 8, 1934, and February 12, 1935 (A-57620), applying to payment of commutation of leave for employees. Section 3: This section makes no change in existing law except that there is added to the existing provision a proviso which reads as follows:

"Provided, That proof of freedom from vicious habits, intemperance, or willful misconduct for a period of more than five years next prior to becoming so disabled for useful and efficient service, shall not be required in any case;"

The foregoing provisio is identical with the language contained in section 6 of the act of May 29, 1930 (46 Stat. 472), amending the General Retirement Act. For some unaccountable reason this proviso was omitted from the Canal Zone Retirement Act (46 Stat. 1471), and the effect has been to require proof, in the case of those employees within the scope of the Canal Zone Retirement Act, without restriction as to time, of freedom from fault which may have caused disability. In cases of paresis, it is usually held that the disease results from syphilis and is thus attributable to vicious habits or willful misconduct, as those terms are used in the retirement law. I am informed that the original infection giving rise to this disease usually precedes the actual disability following therefrom by considerably more than 5 years. Paretics are thus not excluded from the benefits of the General Retirement Act when it can be shown that the infection causing the disease occurred more than 5 years prior to the date of disability. Under the Canal Zone Retirement Act, however, paretics are excluded and, as a matter of fact, a police lieutenant, after rendering excellent service for some 25 years, became disabled as a result of the disease, which may or may not have been caused by his own "willful misconduct or vicious habits", and is now confined in St. Elizabeths Hospital in Washington. His application for retirement was denied by the Veterans' Administration and in order that the benefits of the proposed legislation may be made available to this former police officer the

following language is included at the end of the amended paragraph: "and any claim heretofore disallowed under this section by reason of the requirement of such proof with respect to a longer period than five years, shall upon request of the applicant be reinstated, and shall thereupon be redetermined under the provisions of the section as herein amended."

Sections 4 to 7: The purpose of the changes involved in these sections is solely to bring the Canal Zone Retirement Act into harmony with the general retirement law by embodying in identical form the amendments to the general law effected by the act of June 22, 1934 (48 Stat. 1201), which permits the employee or annuitant to designate a beneficiary to whom shall be paid any deductions or unpaid annuities due at the death of the employee or annuitant. The portions of the local retirement law now sought to be amended are identical with the provisions of the general retirement act which were amended and the effect of the proposed legislation will be to make the corresponding sections identical.

Section 8: The only change effected in the proposed amendment is to authorize the Governor, in his discretion, by permit or regulations, to allow any person deported from the Canal Zone to pass through or to return temporarily to the Canal Zone, and to prescribe the route over which such returning deportees shall be required to travel in the Canal Zone. It has been held that under existing law, while the Governor may order the deportation of persons convicted of crime and may permit their return temporarily in case of necessity, he may not by regulation permit certain classes of deported persons, such as first offenders on certain charges, to pass through the Canal Zone from one point in the Republic of Panama to another. This inflexibility of the existing law has given rise to considerable complaint from Panama which was expressed officially by the President of Panama to the Secretary of War during the latter's visit to the Isthmus some months ago. At that time it was stated that endeavor would be made to secure the enactment of legislation which would permit a less rigorous application of the deportation laws. The proposed amendment leaves the matter of return to the Canal Zone after deportation definitely within the control of the Governor but permits the giving of preferential treatment in the case of first offenders and others of merit by allowing them to pass through the Canal Zone over prescribed routes.

Sections 9, 10, and 11: These sections of the Canal Zone Code contain provisions relating to the licensing of small boats and their operators and the lifesaving and fire-fighting equipment of such boats. There are no substantive changes and the purpose of the amendments is to remove existing obscurities in the sections involved and to present more clearly the provisions relating to small vessels not more than 65 feet in length. Section 160 of title 2 of the Canal Zone Code is repealed and its provisions have been combined with those of section 158 as amended.

Section 12: The purpose of this amendment is merely to redefine the offense of loitering contained in subsection (c). section 603 of the Criminal Code, in the following terms:

*

"Every person found within or loitering about any building or structure, or any vessel, railroad car, or storage yard, without due and proper authority so to be; * shall be punished by a fine of not more than $25, or by imprisonment in jail for not more than thirty days, or by both." The present definition of loitering is as follows:

"Every person found within or loitering about any laborers' camp, mess house, quarters, or other Panama Canal building, or any railroad car or station or other building of the Panama Railroad Co., or any dwelling or other building owned by any private person, partnership, or corporation, without due and proper authority so to be; * *

The proposed amendment broadens the scope of the definition by eliminating the enumeration of specific buildings and structures and is considered quite necessary as there is no provision under existing law whereby loitering about other buildings than those enumerated, such as those of the Army and Navy, may be punished.

Section 13: This section is amended only to the extent of providing that the court may order the confiscation and destruction of arms found concealed about the person in violation of paragraph (a) of the section amended. The present law is defective in not so providing for the disposition of such weapons. Section 14: The amendment provided in this section allows an appeal from the judgment of a magistrate's court to be taken by giving oral or written notice within 5 days after judgment is rendered. The present provision that notice of appeal must be given at the time judgment is rendered has been demonstrated by

experience to be unreasonable in many cases and the proposed change has been recommended by the magistrates.

CHANGES IN EXISTING LAW

In compliance with paragraph 2a of Rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill are shown as follows: Existing law proposed to be omitted is enclosed in black brackets; new matter is printed in italics; existing law in which no change is proposed is shown in roman.

TITLE 2.-OPERATION AND MAINTENANCE OF THE CANAL AND GOV. ERNMENT OF THE CANAL ZONE GENERALLY

Section 1. Short title of organic act; reservation of right to alter, amend, or repeal. The Act entitled "An Act to provide for the opening, maintenance, protection, and operation of the Panama Canal, and the sanitation and government of the Canal Zone", approved August 24, 1912, shall be known and referred to as the Panama Canal Act, and the right is expressly reserved:

a. To alter, amend, or repeal any or all of its provisions; and

b. To extend, modify, or annul any rule or regulation made under its authority. 2. Establishment of Canal Zone.-The zone of land and land under water of the width of ten miles extending to the distance of five miles on each side of the center line of the route of the canal constructed thereon, which zone begins in the Caribbean Sea three marine miles from mean low-water mark and extends to and across the Isthmus of Panama into the Pacific Ocean to the distance of three marine miles from mean low-water mark, excluding therefrom the cities of Panama and Colon and their adjacent harbors located within said zone, as excepted in the treaty with the Republic of Panama dated November 18, 1903, but including all islands within said described zone, and in addition thereto the group of islands in the Bay of Panama named Perico, Naos, Culebra, and Flamenco, and any lands and waters outside of said limits above described which are necessary or convenient or from time to time may become necessary or convenient for the construction, maintenance, operation, sanitation, or protection of the said canal or of any auxiliary canals, lakes, or other works necessary or convenient for the construction, maintenance, operation, sanitation, or protection of said canal, the use, occupancy or control whereof were granted to the United States by the treaty between the United States and the Republic of Panama, the ratifications of which were exchanged on February 26, 1904, shall be known and designated as the Canal Zone, and the canal constructed thereon shall be known and designated as the Panama Canal.

3. Acquisition of additional land; exchange of land.-The President is authorized, by treaty with the Republic of Panama:

a. To acquire any additional land or land under water not already granted, or which was excepted from the grant, that he may deem necessary for the operation, maintenance, sanitation, or protection of the Panama Canal; and

b. To exchange any land or land under water not deemed necessary for such purposes, for other land or land under water which may be deemed necessary for such purposes;

Which additional land or land under water so acquired shall become part of the Canal Zone.

4. Towns and subdivisions of Canal Zone.-The President is authorized to determine or cause to be determined what towns shall exist in the Canal Zone, and subdivide and from time to time resubdivide the Canal Zone into subdivisions, to be designated by name or number, so that there shall be situated one town in each subdivision, and the boundaries of each subdivision shall be clearly defined. 5. Government and operation of Canal and government of Canal Zone.-The President is authorized to govern and operate the Panama Canal and govern the Canal Zone, or cause them to be governed and operated, through a Governor of the Panama Canal and such other persons as he may deem competent to discharge the various duties connected with the care, maintenance, sanitation, operation, government, and protection of the Canal and Canal Zone.

6. Appointment, term, and salary of Governor.-The Governor of the Panama Canal shall be appointed by the President, by and with the advice and consent of the Senate, commissioned for a term of four years and until his successor is appointed and qualified. He shall receive a salary of $10,000 a year.

7. Control and jurisdiction of Governor over Canal Zone.-The Governor of the Panama Canal shall, in connection with the operation of the Canal:

a. Have official control and jurisdiction over the Canal Zone; and

b. Perform all duties in connection with the civil government of the Canal Zone, which is to be held, treated, and governed as an adjunct of the Canal.

8. Army control in time of war or when war is imminent.-In time of war in which the United States is engaged, or when in the opinion of the President war is imminent, such officer of the Army as the President may designate shall, upon the order of the President, assume and have exclusive authority and jurisdiction over the operation of the Panama Canal and all its adjuncts, appendants, and appurtenances, including the entire control and government of the Canal Zone. During a contínuance of such condition the Governor of the Panama Canal shall be subject to the order and direction of such officer of the Army in all respects and particulars as to the operation of the Canal and all duties, matters, and transactions affecting the Canal Zone.

9. Regulations governing operation of Canal, pilotage, and navigation.-The President is authorized to make, and from time to time amend, regulations governing:

a. The operation of the Panama Canal;

b. The passage and control of vessels through the same or any part thereof, including the locks and approaches thereto;

c. Pilots and pilotage in the Canal or the approaches thereto through the adjacent waters; and

d. The navigation of the harbors and other waters of the Canal Zone, including the licensing of officers of vessels navigating such waters.

Any person violating any of the provisions of the rules and regulations established hereunder shall be punished by a fine of not more than $100, or by imprisonment in jail for not more than thirty days, or by both.

10. Damages for injuries to vessels, cargo, or passengers in passing through locks. The regulations authorized under the next preceding section shall provide for prompt adjustment by agreement and immediate payment of claims for damages which may arise from injury to vessels, cargo, or passengers from the passing of vessels through the locks under the control of those operating them under such rules and regulations. In case of disagreement, action may be brought in the district court against the Governor of the Panama Canal. The hearing and disposition of such actions shall be expedited and the judgment shall be paid immediately out of any moneys appropriated or allotted for Canal operation.

11. Canal closed to violators of antitrust laws. No vessel permitted to engage in the coastwise or foreign trade of the United States shall be permitted to enter or pass through the Panama Canal if such ship is owned, chartered, operated, or controlled by any person or company which is doing business in violation of the provisions of the antitrust laws (U. S. Code, title 15, secs. 1 to 27), or of any other Act of Congress amending or supplementing the same. question of fact may be determined by the judgment of any court of the United States of competent jurisdiction in any cause pending before it to which the owners or operators of such ship are parties. Suit may be brought by any shipper or by the Attorney General of the United States.

The

12. Regulation by Governor of anchorage and movement of vessels in time of national emergency. Within the territory and waters of the Canal Zone the Governor of the Panama Canal, with the approval of the President, shall exercise all the powers conferred by section 1 of the Act of June 15, 1917, on the Secretary of the Treasury.

13. Disposition of useless papers.-The Governor of the Panama Canal, under such regulations as he may prescribe, may authorize the destruction or disposal by other means of duplications in the files and other papers which are not needed or useful in the transaction of the current business of the Panama Canal and have no permanent value or historical interest.

Section 81. Appointment, removal, and compensation of necessary persons.All persons, other than the Governor of the Panama Canal, necessary for the care, management, maintenance, sanitation, government, operation, and protection of the Canal and Canal Zone shall:

(a) Be appointed by the President or by his authority; (b) Be removable at the pleasure of the President; and

(c) Receive such compensation as shall be fixed by the President or by his authority until such time as Congress may by law regulate the same [, but]; and such persons shall be employed and shall serve under such conditions of employ