PANAMA CANAL. SATURDAY, JUNE 1, 1912. COMMITTEE ON INTEROCEANIC CANALS, Washington, D. C. The committee met at 10.25 o'clock a. m. Present: Senators Brandegee (chairman), Bristow, Townsend, and Percy. The CHAIRMAN. Without objection, Mr. Patterson, who is here this morning, will make a statement. But first I will ask the stenographer to insert in the record at this point a letter which I have received from the Secretary of War, dated May 29, 1912, inclosing amendments proposed by him to H. R. 21969, together with a copy of the bill showing the amendments thereto. WAR DEPARTMENT, Washington, May 29, 1912. MY DEAR SENATOR: Agreeable to your kind request, I inclose herewith a memorandum setting forth a list of the amendments which I submitted for the consideration of your committee, as well as a copy of the bill with the amendments indicated. You will notice two amendments that I did not speak of before your committee, to which my attention was directed after your hearing. (1) The existing provision of section 5, authorizing the President to provide a method for the adjustment of claims for injuries occurring in the course of employment, as it stands requires specific appropriations to be made for the payment of such claims. This would involve constant applications to Congress for these appropriations, and correspondingly it would involve a delay in payment where speed is most needed. My amendment is directed toward curing this defect by providing that the claim should be paid out of the general appropriations for the construction, maintenance, etc., of the canal. (See proposed amendment 12.) (2) Section 8 gives authority to the district judge to appoint the clerk of the court, but makes no mention of the appointment of assistant clerks. I assume that the power of appointing assistants should likewise be lodged in the court. (See proposed amendment 16.) While I have not indicated in the amendments submitted a change of the tenure of the judicial offices provided for in section 8, page 13, from a fixed term of four years to an indeterminate tenure at the pleasure of the President, I strongly believe in the wisdom of such an amendment, as I stated before the committee, if it can be agreed upon without any embarrassment to the main features of the bill. I am very grateful for the opportunity which you afforded me to state my views to your committee and I appreciate very much the kind attention which I received from the members of the committee. Sincerely, yours, Hon. FRANK B. BRANDEGEE, Chairman Committee on Interoceanic Canals, United States Senate. [The proposed amendments of the Secretary of War to H. R. 21969.] Amendment 1: Page 3, line 10, after the word "until," strike out lines 10 and 11 and insert "the courts hereinafter provided for shall be established." Amendment 2: Page 4, line 8, strike out "and"; after the word "operate" insert "and govern"; and after the word "canal" insert "and Canal Zone." Amendment 3: Page 4, line 9, substitute "them" for "it." Amendment 4: Page 4, line 9, strike out "and" and after the word “operated" insert and governed." Amendment 5: Page 4, line 12, after the word "operation," insert "government." Amendment 6: Page 4, line 13, after the word "canal," insert "and Canal Zone." Amendment 7: Page 4, line 24, after the word "sanitation," insert "government.' Amendment 8: Page 4, line 25, after the word "canal," insert and Canal Zone (except the officers whose appointment is herein specifically provided).” Amendment 9: Page 6, line 3, strike out, commencing with the word "Provided,” down to and including the word "cargo," on line 9. Amendment 10: Page 6, line 14, strike out after the word "canal,” to and including the word "cents," on line 15. Amendment 11: Page 7, line 21, strike out the words "hereafter" and "that." Amendment 12: Page 7, line 21, commencing with the word "that," strike out to and including the word "purpose," on line 22, and insert after the word "for," on line 21, "the construction, maintenance, operation, or sanitation of the canal or of any auxiliary works." Amendment 13: Page 7, line 23, strike out "was responsible for said injury," and substitute in lieu thereof "be held liable for said claim." Amendment 14: Page 9, line 1, after the word "messages." insert "The President is also authorized in his discretion to enter into such operating agreements or leases with any private wireless company or companies as may best insure freedom from interference with the wireless telegraphic installations established by the United States." Amendment 15: Page 10, line 3, strike out, beginning with the word "unless," to and including the word "law, on line 8. Amendment 16: Page 13, line 14, after the word "court" insert "and his assistants." Strike out the words "a salary," and in lieu thereof substitute the word "salaries." Amendment 17: Page 15, line 21, strike out the word "zone." [H. R. 21969, Sixty-second Congress, second session.] [Omit the parts in brackets and insert the parts printed in italic.] AN ACT To provide for the opening, maintenance, protection, and operation of the Panama Canal, and the sanitation and government of the Canal Zone. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That 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 now being 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, excepting and 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 eighteenth, nineteen hundred and three, 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 Falmenco, 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 the twenty-sixth day of February, nineteen hundred and four, shall be known and designated as the Canal Zone and the canal now being constructed thereon shall hereafter be known and designated as the Panama Canal. The President is authorized to acquire, by treaty with the Republic of Panama, 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 may, in like manner, 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. SEC. 2. That all laws, orders, regulations, and ordinances adopted and promulgated in the Canal Zone by order of the President for the government and sanitation of the Canal Zone and the construction of the Panama Canal are hereby ratified and confirmed as valid and binding until Congress shall otherwise provide. The existing courts established in the Canal Zone by Executive order are recognized and confirmed to continue in operation until [Congress shall otherwise provide] the courts hereinafter provided for shall be established. SEC. 3. That the President is authorized to declare, by Executive order, that all land and land under water within the limits of the Canal Zone is necessary for the construction, maintenance, operation, sanitation, or protection of the Panama Canal and to extinguish, by agreement, when advisable, all claims and titles of adverse claimants and occupants. Upon failure to secure by agreement title to any such parcel of land or land under water the adverse claim or occupancy shall be disposed of and title thereto secured in the United States and compensation therefor fixed and paid in the manner provided in the aforesaid treaty with the Republic of Panama or such modification of such treaty as may hereafter be made. SEC. 4. That when in the judgment of the President the construction of the Panama Canal shall be sufficiently advanced toward completion to render the further services of the Isthmian Canal Commission unnecessary the President is authorized, by Executive order, to discontinue the Isthmian Canal Commission, which, together with the present organization, shall then cease to exist; and the President is authorized thereafter to complete [and], operate, and govern the Panama Canal and Canal Zone, or cause [it] them to be completed [and], operated, and governed through a governor of the Panama Canal and such other persons as he may deem competent to discharge the various duties connected with the completion, care, maintenance, sanitation, operation, government, and protection of the canal and Canal Zone. Any of the persons appointed or employed as aforesaid may be persons in the military or civil service of the United States, but the amount of the official salary paid to any such person shall be deducted from the amount of salary or compensation provided by or which shall be fixed under the terms of this act. 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 shall be appointed and qualified. He shall receive a salary of ten thousand dollars a year. All other persons necessary for the completion, care, management, maintenance, sanitation, government, and operation of the Panama Canal and Canal Zone (except the officers whose appointment is herein specifically provided) shall be appointed by the President or by his authority, removable at his pleasure, and the compensation of such persons shall be fixed by the President or by his authority until such time as Congress may, by appropriation act or other law, regulate the same; but salaries or compensation fixed hereunder by the President shall in no instance exceed by more than twenty-five per centum the salary or compensation paid for the same or similar services to persons employed by the Government in continental United States. That upon the completion of the Panama Canal the President shall cause the same to be officially and formally opened for use and operation. SEC. 5. That the President is hereby authorized to prescribe and from time to time change the tolls that shall be levied by the Government of the United States for the use of the Panama Canal. No tolls shall be levied upon vessels engaged in the coastwise trade of the United States. Tolls may be based upon gross or net registered tonnage, displacement tonnage, or otherwise, and may be based on one form of tonnage for warships and another for ships of commerce. When based upon net registered tonnage for ships of commerce the tolls shall not exceed one dollar and twenty-five cents per net registered ton, nor be less, other than for vessels of the United States and its citizens, than the estimated proportionate cost of the actual maintenance and operation of the canal, subject, however, to the provisions of article nineteen of the convention between the United States and the Republic of Panama, entered into November eighteenth, nineteen hundred and three: [Provided, however, That under regulations prescribed by the President a vessel paying toll going through the canal in ballast shall, on its return trip through the canal laden with cargo, be entitled to receive a rebate of fifty per centum of the tolls just previously paid going through in the opposite direction without cargo.] If the tolls shall not be based upon net registered tonnage, they shall not exceed the equivalent of one dollar and twenty-five cents per net registered ton as nearly as the same may be determined, nor be less than the estimated proportionate cost of the actual maintenance and operation of the canal. [The toll for each passenger shall not be more than one dollar and fifty cents.] The President is authorized to make and from time to time amend regulations governing the operation of the Panama Canal, and the passage and control of vessels through the same or any part thereof, including the locks and approaches thereto, and all rules and regulations affecting pilots and pilotage in the canal or the approaches thereto through the adjacent waters. Such regulations shall provide for prompt adjustment by agreement and immediate payment of claims for damages which may arise from alleged 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 suit may be brought in the district court of the Canal Zone against the governor of the Panama Canal. The hearing and disposition of such cases shall be expedited and the judgment shall be immediately paid off without proceeding to execution. All such claims, whether by agreement or after judgment, shall be paid out of any moneys appropriated or allotted for canal operation. The President shall provide a method for the determination and adjustment of all claims arising out of personal injuries to employees thereafter occurring while directly engaged in actual work in connection with the construction, maintenance, operation, or sanitation of the canal or of the Panama Railroad, or of any auxiliary canals, locks, or other works necessary and convenient for the construction, maintenance, operation, or sanitation of the canal, whether such injuries result in death or not, and may revise and modify such method at any time; and such claims to the extent they shall be allowed on such adjustment, if allowed at all, shall be paid out of the moneys [hereafter] appropriated for [that purpose] the construction, maintenance, operation, or sanitation of the canal or of any auxiliary works or out of the funds of the Panama Railroad Company, if said company [was responsible for said injury] be held liable for such claim as the case may require. And after such method shall be provided by the President, the provisions of the act entitled "An act granting to certain employees of the United States the right to receive from it compensation for injuries sustained in the course of their employment," approved May thirtieth, nineteen hundred and eight, and of the act entitled "An act relating to injured employees on the Isthmian Canal," approved February twenty-fourth, nineteen hundred and nine, shall not apply to personal injuries thereafter received and claims for which are subject to determination and adjustment as provided in this section. SEC. 6. That the President is authorized to cause to be erected, maintained, and operated, at suitable places along the Panama Canal and the coast adjacent to its two terminals, in connection with the operation of said canal, such wireless telegraphic installations as he may deem necessary for the operation, maintenance, sanitation, and protection of said canal. If it is found necessary to locate such installations upon territory of the Republic of Panama, the President is authorized to make such agreement with said Government as may be necessary, and also to provide for the acceptance and transmission by said system of all private and commercial messages, and those of the Government of Panama, on such terms and for such tolls as the President may prescribe: Provided, That the messages of the Government of the United States and the departments thereof, and the management of the Panama Canal, shall always be given precedence over all other messages. The President is also authorized, in his discretion, to enter into such operating agreements or leases with any private wireless company or companies as may best insure freedom from interference with the wireless telegraphic installa tions established by the United States. The President is also authorized to establish, maintain, and operate dry docks, repair shops, yards, docks, wharves, warehouses, storehouses, and other necessary facilities and appurtenances for the purpose of providing coal and other materials, labor, repairs, and supplies for our official vessels, and, incidentally, for supplying such at reasonable prices to passing vessels, in accordance with appropriations hereby authorized to be made from time to time by Congress as a part of the maintenance and operation of the said canal. Moneys received in the ordinary course of business from the conduct of said business may be expended and reinvested for such purposes without being covered into the Treasury of the United States; and such moneys are hereby appropriated for such purposes, but all deposits of such funds shall be subject to the provisions of existing law relating to the deposit of other public funds of the United States, and any net profits accruing from such business shall annually be covered into the Treasury of the United States. Monthly reports of such receipts and expenditures shall be made to the President by the persons in charge, and annual reports shall be made to the Congress. SEC. 7. That the governor of the Panama Canal shall, in connection with the operation of such canal, have official control and jurisdiction over the Canal Zone and shall 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 such Panama Canal. [Unless in this act otherwise provided all existing laws of the Canal Zone referring to the civil governor or the civil administration of the Canal Zone shall be applicable to the gov ernor of the Panama Canal, who shall perform all such executive and administrative duties required by existing law.] 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 said Canal Zone into subdivisions, to be designated by name |