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rovide for the opening, maintenance, protection, and operation of ama Canal, and the sanitation and government of the Canal Zone. nacted by the Senate and House of Representatives of the United America in Congress assembled, That the zone of land and land er of the width of ten miles extending to the distance of five miles de of the center line of the route of the canal now being constructed which zone begins in the Caribbean Seal three marine miles from -water mark and extends to and across the Isthmus of Panama into ic Ocean to the distance of three marine miles from mean low-water cluding therefrom the cities of Panama and Colon and their adjacent located within said zone, as excepted in the treaty with the Republic ma dated November eighteen, nineteen hundred and three, but includislands within said described zone, and in addition thereto the group ads in the Bay of Panama named Perico, Naos, Culebra, and Flamenco, y lands and waters outside of said limits above described which are ury or convenient or from time to time may become necessary or conit for the construction, maintenance, operation, sanitation, or protection e said canal or of any auxiliary canals, lakes, or other works necessary

venient for the construction, maintenance, operation, sanitation, or proon of said canal, the use, occupancy, or control whereof were granted to ('uited States by the treaty between the United States and the Republic Panama, the ratifications of which were exchangel on the twenty-sixth

of February, nineteen hundred and four, shall be known and designated the Canal Zone, and the canal now being constructed thereon shall here. er be known and designated is the Panama Canal. The President is thorized, by treaty with the Republic of Panama, to acquire any additional nd or land under water not already granted, or which was excepted from ne grant, that he m:1y deem necessary for the operation, maintenance, sanitaion, or protection of the Panama Canal, and to exchange any land, or land mder water not deemed necessary for such purposes for other land or land under water which may be deemeel 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 the courts provided for in this act 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. C'pon 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.

* The Panama Canal Zone was secured by the treaty of November 18, 1903, with the Republic of Panama, by which the United States acquired perpetual ownership of a strip of territory ten miles in width extending across the Isthmus of Panama, By the provisions of the act of April 28, 1904, the President was authorized to provide a government for the Canal Zone, and this was done by a series of executive orders beginning May 9, 1904. A second act was passed on February 27, 1909. The present government of the Canal Zone was established by the act of August 24, 1912.


SEC. t. 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, govern, and operate the Panama Canal and govern the Canal Zone, or cause them to be completed, 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 completion, care, maintenance, sanitation, operation, government, and protection of the canal and Canal Zone. If any of the persons appointed or employed as aforesaid shall be persons in the military or naval service of the United States, 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 gorernor 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, operation, and protection of the Panama Canal and Canal Zone 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 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 T'nited 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.

Before the completion of the canal, the Commission of Arts may make report to the President of their recommendation regarding the artistic character of the structures of the canal, such report to be transmitted to Con gress.

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: Provided, That no tolls, when prescribed as above, shall be changed, 'unless six months' notice thereof shall have been given by the President by proclamation. No tolls shall be leried upon vessels engaged in the coastwise trade of the United States. That sertion forty-one hundred and thirty-two of the Revised Statutes is hereby amended to read as follows:

"Sec. 4132. Vessels built within the United States and belonging wholly to citizens thereof; and vessels which may be captured in war by citizens of the United States and lawfully condemned as prize, or which may be adjudged to be forfeited for a breach of the laws of the United States; and seagainz vessels, whether steam or sail, which have been certified by the Steamboat Inspection Service as safe to carry dry and perishable cargo, not more than five years old at the time they apply for registry, wherever built, which are engaged only in trade with foreign countries or with the Philippine Islands and the islands of Guam and Tutuila, being wholly owned by the citizens of the United States or corporations organized and chartered under the lates of the United States or of any State thereof, the president and managing director's of which shall be citizens of the United States and others may

registered directed in this title. Foreigt built vessels registered pursuant to this act shall not engage in the coastwise trade: Provided. That a foreign-built yacht, pleasure boat, or vessel not usi or intended to be used for trade admitted to American registry pursuant to this section shall not be exempt from the collection of ad valorem duty proride in section thirty-seven of the act approved August fifth, nineteen hundred and nine, entitled 'An Act to provide revenue, equalize duties, and encourage the

industries of the Unite foreign production wh. vessels built in the U building or repair of t1 and equipment may be regulations as the SecrThat such vessels so ad with the Postmaster G and ninety-one, entitled l'nited States and fore Fessels shall in all res sid Act."

Tolls may be base tonnage, or otherwise. :: and another for ships o sels in ballast than upupon net registered tom dollar and twenty-five ( Tessels of the l'nited S: cost of the actual main to the provisions of artic and the Republic of Pan and three. If the tolls shall not exceed the eq registered ton as nearly equivalent of seventy-tive senger shall not be mor authorized to make and operation of the Panama the same or any part and all rules and regula approaches thereto throng

Such regulations sha immediate payment of e vessels. cargo, or passen under the control of tho In case of disagreements Zone a gainst the governo tion of such cases shall paid out of any moneys aj

The President shall ment of all claims arisin occurring while directly struction, maintenance, op Railroad, or of any auxili venient for the constructiowhether such injuries resur pensation therefor, and ma any time; and such claim just ment, if allowed at all priated for that purpose paus: if said company w require. And after such n dent. the provisions of the of the United States the sustained in the course of hundred and eight, and of ployees on the Isthmian bundred and nine. shall not aims for which are subjec this section.




stries of the United States, and, for other purposes.' That all materials of

gu production which may be necessary for the construction or repair of els built in the United States and all such materials necessary for the ling or repair of their machinery and all articles necessary for their outfit

equipment may be imported into the United States free of duty under such ulations as the Secretary of the Treasury may prescribe: Provided further, it such vessels so admitted under the provisions of this section may contract h the Postmaster General under the Act of March third, eighteen hundred | ninety-one, entitled 'An Act to provide for ocean mail service between the ited States and foreign ports, and to promote commerce,' so long as such sels shall in all respects comply with the provisions and requirements of ( Act."

Tolls may be based upon gross or net registered tonnage, displacement mage, or otherwise, and may be based on one form of tonnage for warships ud another for ships of commerce. The rate of tolls may be lower upon vesEls in ballast than upon vessels carrying passengers or cargo. When based von net registered tonnage for ships of commerce the tolls shall not exceed one »llar and twenty-five cents per net registered ton, nor be less, other than for essels of the l'nited States and its citizens, than the estimated proportionate ost of the actual maintenance and operation of the canal, subject, however, o the provisions of article nineteen of the convention between the United States w the Republic of Panama, entered into November eighteen, nineteen hundred and three. 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 Muivalent of seventy-five cents per net registered ton. 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 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 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 prescribe a schedule of compensation therefor, and may revise and modify such method and schedule 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 or out of the funds of the Panama Railroad Company, if said company was responsible for said injury, as the case may require. And after such method and schedule 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 hindred 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.

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SEC. 6. That the President is authorized to cause to be erected, maintained. regulate the same. The and operated, subject to the International Convention and the Act of Congress

of said magistrates and to regulate radio-communication, at suitable places along the Panama Canal holding such courts, the and the coast adjacent to its two terminals, in connection with the operation judgments, providing for of said canal, such wireless telegraphic installations as he may deem nece position, treatment, and ] sary for the operation, maintenance, sanitation, and protection of said canal, and President. The governor for other purposes. If it is found necessary to locate such installations una prescribe their powers an territory of the Republic of Panama, the President is authorized to make such and collected by them, agreement with said government as may be necessary, and also to provide for

Sec. 8. That there the acceptance and transmission, by said system, of all private and commercial Two divisions, one includin messages, and those of the Government of Panama, on such terms and for such district judge of the said tolls as the President may prescribe : Provided, That the messages of the Gorent at such time as he may ment of the United States and the departments thereof, and the management of division. The rules of pa the Panama Canal, shall always be given precedence over all other messages. a mended by order of the The President is also authorized, in his discretion, to enter into such operating jurisdiction of all felony agreements or leases with any private wireless company or companies as may act, all causes in equity; best insure freedom from interference with the wireless telegraphic installa sums exceeding three hun tions established by the United States. The President is also authorized to estab dered in magistrates' com lish, maintain, and operate, through the Panama Railroad Company or other upon the district judge: wise, dry docks, repair shops, yards, docks, wharves, warehouses, storebouses. exercised by the United S and other necessary facilities and appurtenances for the purpose of providing courts, and the procedure coal and other materials, labor, repairs, and supplies for vessels of the Goren Court or the judge thereo ment of the United States :ind, incidentally, for supplying such at reasonable and proceedings not herein prices to passing vessels, in accordance with appropriations hereby authorized of the Supreme Court of to be made from time to time by Congress as a part of the maintenance and Zone, the District Court operation of the said canal. Moneys received from the conduct of said business judge shall provide for th may be expended and reinvested for such purposes without being covered into of jurors from among the the Treasury of the United States; and such moneys are hereby appropriated for duty in either division of such purposes, but all deposits of such funds shall be subject to the provisios criminal case or civil case of existing law relating to the deposit of other public funds of the United of eitber party. There sha States, and any net profits aceruing from such business shall annually be corerei district. It shall be the d into the treasury of the United States. Monthly reports of such receipts and ness. civil and criminal, for expenditures shall be made to the President by the persons in charge. and annual I be Panama Canal on all le reports shall be made to the Congress.

and the administration of ciSEC. 7. That the governor of the Panama Canal shall, in connection with execute all process of the e the operation of such canal, have official control and jurisdiction over the Canal incident to the office of ma Zone and shall perform all duties in connection with the civil government of and the marshal shall be ap) the Canal Zone, which is to be held, treated, and governed as an adjunct of such ind consent of the Senate, f Panama Canal. Unless in this act otherwise provided all existing laws of the essors are appointed iind Canal Zone referring to the civil governor or the civil administration of the reside within the Canal Zone Canal Zone shall be applicable to the governor of the Panama Canal, who shall official board or commission perform all such executive aud administrative duties required by existing law. Tbe district judge shall rece The President is authorized to determine or cause to be determined what towns

the United States and shall shall exist in the Canal Zone and subdivide and from time to time resubdivide point one assistant when nec said Canal Zone into subdivisions, to be designated by name or number, so that the President.

The district there shall be situated one town in each subdivision, and the boundaries of absence each year with pay. each subdivision shall be clearly defined. In each town there shall be a magis disability or disqualification fi trate's court with exclusive original jurisdiction coextensive with the subdivision the same shall be temporarily in which it is situated of all civil cases in which the principal sum claimed United States who may be des does not exceed three hundred dollars, and all criminal cases wherein the punish

service, shall receive the addit ment that may be imposed shall not exceed a fine of one hundredi dollars, or in

district judges of the l'nited prisonment not exceeding thirty days, or both, and all violations of police regu


The district attorney lations and ordinances and all actions involving possession or title to personal of five thousand dollars per an property or the forcible entry and detainer of real estate. Such magistrates shall

Sec. 9. That the records also hold preliminary investigations in charges of felony and offenses under ings, and criminal prosecutions section ten of this act, and commit or bail in bailable cases to the district court. of. except as herein otherwise pi A sufficient number of magistrates and constables, who must be citizens of the

of the courts created by this l'nited States, to conduct the business of such courts, shall be appointed by the

jurisdiction of like cases, yovernor of the Panama Canal for terms of four years and until their successors if they had originally been brou are appointed and qualified, and the compensation of such persons shall be fised except the supreme court of the by the President, or by his authority, until such time as Congress may by lat




The rules governing said courts and prescribing the duties ates and constables, oaths and bonds, the times and places of urts, the disposition of fines, costs, forfeitures, enforcements of viding for appeals therefrom to the district court, and the disDent, and pardon of convicts shall be established by order of the e governor of the Panama Canal sball appoint all notaries public, · powers and duties, their official seal, and the fees to be charged by them. That there shall be in the Canal Zone one district court with s, one including Balboa, and the other including Cristobal, and one e of the said district, who shall hold his court in both divisions e as he may designate by order, at least once a month in each he rules of practice in such district court shall be prescribed or

order of the President. The said district court shall have original

of all felony cases, of offenses arising under section ten of this uses in equity; admiralty and all cases at law involving principal eding three hundred dollars and all appeals from judgments renmagistrates' courts. The jurisdiction in admiralty herein conferred

district judge and the district court shall be the same that is by the United States district judges and the United States district nd the procedure and practice shall also be the same. The district : the judge thereof shall also have jurisdiction of all other matters ceedings not berein provided for which are now within the jurisdiction Supreme Court of the Canal Zone, of the Circuit Court of the Canal the District ('ourt of the Canal Zone, or the judges thereof. Said shall provide for the selection, summoning, serving, and compensation ors from among the citizens of the United States, to be subject to jury in either division of such district, and a jury shall be had in any al case or civil case at law originating in said court on the demand ther party. There shall be a district attorney and a marshal for said ict. It shall be the duty of the district attorney to conduct all busi

civil and criminal, for the government, and to advise the governor of Panama Canal on all legal questions touching the operation of the canal

the administration of civil affairs. It shall be the duty of the marshal to cute all process of the court, preserve order therein, and to do all things ident to the office of marshal. The district judge, the district attorney, d.the marshal shall be appointed by the President, by and with the advice id consent of the Senate, for terms of four years each, and until their sucissors are appointed :ind qualified, and during their terms of office shall pside within the ('anal Zone, and shall hold no other office nor serve on any tficial board or commission nor receive any emoluments except their salaries. The district judge shall receive the same salary paid the district judges of the United States and shall appoint the clerk of said court, and may appoint one assistant when necessary, who shall receive salaries to be fixed by the President. The district judge shall be entitled to six weeks' leave of itbsence each year with pay. During his absence or during any period of isability or disqualification from sickness or otherwise to discharge his duties the same shall be temporarily performed by any circuit or district judge of the United States who may be designated by the President, and who, during such service, shall receive the additional mileage and per diem allowed by law to district judges of the United States when holding court away from their homes. The district attorney :ind the marshal shall be paid each a salary of five thousand dollars per annum.

SEC, 9. That the records of the existing courts and all causes, proceedings, and criminal prosecutions pending therein as shown by the dockets thereof, except as herein otherwise provided, shall immediately upon the organization of the courts created by this act be transferred to such new courts having jurisdiction of like cases, be entered upon the dockets thereof, and proceed as if they had originally been brought therein, whereupon all the existing courts. except the supreme court of the Canal Zone, shall cease to exist. The Presi. ulent may continue the supreme court of the Canal Zone and retain the judges

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