the organization in keeping abreast of advanced scientific methods, a problem made difficult by its isolated location. Section 85 would support this item and would authorize, with appropriate limitations, the special training of other classes where needed to enable the organization to modernize and improve its methods and procedures in the light of scientific and technical advancements in the United States. Senator MORSE. That is clear enough, and this continues the past practice. Mr. BURDICK. It continues the past practice, but it would also slightly broaden it to enable the Governor to send employees other than the policemen and firemen. For example, if we wanted to send a man from our intelligence section to the FBI school, we could not do it under the language that is now in the appropriation act, because the intelligence section is not a part of the police and fire division, so we do have a slight change in this section. I might say that this is concurred in by the representative of the General Accounting Office. We redrafted this section to meet certain objections that they made. They made certain suggestions about appropriate limitation on the authority. Senator MORSE. The Comptroller General's Office is now in agreement with your final draft? Mr. BURDICK. Yes. Senator MORSE. File the rest of your statement on that section. Senator MORSE. What about section 4? Mr. BURDICK. Section 4 would add to the Canal Zone Code a section 124 of title 2 authorizing the Governor (a) to purchase artificial limbs or other appliances for persons injured in the service of the Isthmian Canal Commission or of the Panama Canal prior to September 7, 1916, the effective date of the United States Employees' Compensation Act, and (b) to make payments in lump sums, not exceeding the amounts authorized by the Compensation Act, to alien cripples who are now a charge upon the Panama Canal by reason of injuries sustained while employed in the construction of the Panama Canal. This section would support items appearing in Panama Canal appropriations since 1924 and 1918, respectively, for the purchase of artificial limbs and appliances and for making lump-sum injury payments to the persons involved. Senator MORSE. That is clear enough. The next section. Mr. BURDICK. Section 5 would add to the Canal Zone Code a section 906 of title 6, which, on discharge of a prisoner from a penal institution in the Canal Zone, would authorize the furnishing to such prisoner, in the discretion of the Governor, of such suitable clothing as may be authorized by the Governor and an amount of money not exceeding $20. The proposed section would support an item in Panama Canal appropriations for gratuities and necessary clothing for indigent discharged prisoners. The bill is recommended by the Panama Canal and the Bureau of the Budget. It has the concurrence of the Secretary of the Army, and, with a minor exception relating to establishment of a maximum limitation on the settlement of claims under section 17, it has the concurrence of the General Accounting Office. Senator MORSE. That is clear enough. Is there anything else on the bill? Mr. BURDICK. That is all, sir. Senator MORSE. You have not any other bill pending? Mr. BURDICK. No, sir. Senator MORSE. This will close our hearing on S. 2003. The subcommittee will remain in executive session, and we will endeavor to dispose of this bill this morning. (Thereupon at 11 o'clock a. m., the hearing was closed.) TUESDAY, JUNE 8, 1948 UNITED STATES SENATE, Washington, D. C. The full committee considered, in executive session, the bill S. 2003, and voted to report a new bill, S. 2829, which, together with Senate Report No. 1539, is as follows: [S. 2829, 80th Cong., 2d sess.] A BILL To amend the Canal Zone Code, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title 2 of the Canal Zone Code is amended by adding in chapter 1 thereof three new sections numbered 16 to 18, and reading as follows: "16. ACQUISITION OR CONSTRUCTION OF STRUCTURES, EQUIPMENT, AND IMPROVEMENTS. The Governor of the Panama Canal is authorized, within the limits of available funds, to purchase or otherwise acquire equipment, and within the Canal Zone to purchase or otherwise acquire, construct, repair, replace, alter, or enlarge any building, structure, or other improvement, when in his judgment such action is necessary for the operation, maintenance, sanitation, or civil government of the Panama Canal or Canal Zone. "17. CLAIMS FOR LOSSES OF OR DAMAGES TO PROPERTY.-Authority is hereby conferred upon the Governor of the Panama Canal, or his designee for the purpose, to consider, adjust, determine, and settle claims for losses of or damages to property arising from the conduct by the Panama Canal of authorized business operations, or arising from the maintenance, operation, improvement, or enlargement of capacity of the Panama Canal or from the sanitation or civil government of the Canal Zone: Provided, however, That this section shall not apply to claims cognizable either under section 10 of this title, as amended, or under the Federal Tort Claims Act. "Any award made to any claimant pursuant to this section shall be payable out of any moneys appropriated or made available for the maintenance and operation, sanitation, and civil government of the Panama Canal and Canal Zone; and the acceptance by the claimant of any such award shall be final and conclusive on the claimant, and shall constitute a complete release by the claimant of such claim against the United States. "18. DISASTER RELIEF.-In the event of emergency arising because of disaster or calamity by flood, hurricane, earthquake, fire, pestilence, or like cause, not foreseen or otherwise provided for, and occurring in the Canal Zone, or occurring in the Republic of Panama in such circumstances as to constitute an actual or potential hazard to health, safety, security, or property in the Canal Zone, the Governor of the Panama Canal is authorized to expend available funds and to utilize or furnish materials, supplies, equipment, and services for relief, assistance, and protection." SEC. 2. Chapter 4 of title 2, Canal Zone Code, which chapter is now entitled "Business Operations" and consists of sections 51 and 52 of said title 2, is amended to read as follows: "Sec. "CHAPTER 4-BUSINESS OPERATIONS: SALES AND SERVICES Sec. "51. Authorization for establishment and 53. operation of various facilities. 52. Organization and conduct of any such facilities by Panama Canal as 'busi- 54. ness operations'. Receipts from such operations, sales, and services; expenditure and reinvestment; reports. Exception of Canal Zone Postal Service. "SEC. 51. AUTHORIZATION FOR ESTABLISHMENT AND OPERATION OF VARIOUS FACILITIES. (a) In connection with the operation, maintenance, sanitation, and civil government of the Panama Canal and Canal Zone, the President is authorized to establish, maintain, and operate, through the Panama Railroad Company or otherwise, docks, wharves, piers, drydocks, shops, yards, marine railways, salvage and towing facilities, dredging facilities, construction facilities, fuel-handling facilities, motor-transportation facilities, civil air terminals, power systems, water and sewer systems, warehouses, storehouses, hotels, a printing plant, living quarters and other buildings, and any other necessary facilities and appurtenances, for the purpose of providing, at reasonable prices, fuel, electric power, water, equipment, supplies and materials generally, repairs, labor transportation, quarters, space in buildings, wharf and like services, hotel and restaurant services, and services generally, including recreational services, and for the purpose of assembling, assorting, storing, repairing, and selling scrap and other byproducts of manufacturing and shop operations, and materials, supplies, and equipment purchased or acquired for the construction, improvement, operation, maintenance, sanitation, or civil government of the Panama Canal or Canal Zone and which are obsolete, unserviceable, or no longer needed. The sales, services, equipment, supplies, and materials hereinbefore referred to may be made or furnished to vessels, to agencies of the G overnment of the United States, to the Panama Railroad Company, to employees of the Government of the United States or of the Panama Railroad Company, and to any other governments, agencies, persons, corporations, companies, or associations eligible to make or receive such purchases, services, supplies, or materials under the laws prevailing at the time and the policies heretofore or hereafter adopted consistently with such laws. "(b) In the event the President has heretofore elected, or shall at any time hereafter elect, to maintain and operate through the Panama Railroad Company any of the facilities and appurtenances referred to in this section or section 52 of this title, theretofore maintained and operated by the Panama Canal, the President is authorized to transfer to the Panama Railroad Company all or as much as may be determined to be necessary of the personnel, property, records, related assets, contracts, obligations, and liabilities of or appertaining to the said facility and its appurtenances, and such transfer shall be deemed to have been accepted and assumed by the Panama Railroad Company without the necessity of any act or acts on the part of the said corporation except as otherwise stipulated in provisions of law applicable to the said corporation. "52. ORGANIZATION AND CONDUCT OF ANY SUCH FACILITIES BY PANAMA CANAL AS 'BUSINESS OPERATIONS'.-The President may cause any or all of the facilities and appurtenances referred to in paragraph (a) or (b) of section 51 of this title to be organized and conducted by the Panama Canal as 'business operation', and in such case the aggregate net profit if any accruing from the conduct of such business operations shall annually be covered into the Treasury of the United States. "53. RECEIPTS FROM SUCH OPERATIONS, SALES, AND SERVICES; EXPENDITURE AND REINVESTMENT; REPORTS.-The moneys received by the Panama Canal from the operations authorized by sections 51 and 52 of this title, and from pilotage, quarantine, immigration, and like services, from rentals, from damage claims, and from any and all other sales made and services rendered, but not including tolls, taxes, court fees, or fines, may be expended or reinvested under the several heads of appropriation for the Panama Canal, without being covered into the Treasury of the United States except as provided in section 52 of this title; but, except as otherwise provided in this section, such funds shall be subject to the provisions of law relating to public funds of the United States. Monthly reports of such receipts and expenditures shall be made to the President and annual reports shall be made to the Congress. "54. EXCEPTION OF CANAL ZONE POSTAL SERVICE.-The provisions of sections 51 to 53 of this title shall have no application to operations of the Canal Zone Postal Service." SEC. 3. Title 2 of the Canal Zone Code is amended by adding in article 1 of chapter 6 thereof a new section numbered 85 and reading as follows: "85. SPECIAL TRAINING OF EMPLOYEES.-The Governor of the Panama Canal is authorized, within the limits of appropriations made therefor, to provide for special training in the United States or elsewhere of any employee of the Panama Canal when in the judgment of the Governor such special training will be of material benefit to the work of the Panama Canal and the special training of such employee would be more advantageous than the hiring of other available personnel having the specialized skill or experience desired. During the period of such special training the employee may be paid his regular compensation and his travel expenses in accordance with the Standardized Government Travel Regulations and the Subsistence Expense Act of 1926, as amended, subject to recovery by the United States of such costs or an equitable portion thereof, as determined by the Governor, in case the employee fails to complete such training or is separated from the service except for reasons beyond his control within one year following the completion of the period of training." SEC. 4. Title 2 of the Canal Zone Code is amended by adding in article 3 of chapter 6 thereof a new section numbered 124 and reading as follows: "124. EMPLOYEES INJURED PRIOR TO SEPTEMBER 7, 1916; APPLIANCES; LUMPSUM PAYMENTS.-The Governor of the Panama Canal is authorized to purchase artificial limbs or other appliances for persons who were injured in the service of the Isthmian Canal Commission or of the Panama Canal prior to September 7, 1916, and to make payments in lump sums not exceeding the amounts authorized by the Act of September 7, 1916, as amended (U. S. C., title 5, ch. 15), to alien cripples who are now a charge upon the Panama Canal by reason of injuries sustained while employed in the construction of the Panama Canal." SEC. 5. Title 6 of the Canal Zone Code is amended by adding in chapter 27 thereof a new section numbered 906 and reading as follows: "906. CLOTHING AND MONEY FOR DISCHARGED PRISONERS.-On the discharge of a prisoner from any penal institution in the Canal Zone such prisoner may, in the discretion of the Governor of the Panama Canal, be furnished with such suitable clothing as may be authorized by the Governor, and an amount of money not exceeding $20." [S. Rept. No. 1539, 80th Cong., 2d sess.] The Committee on Armed Services, having had under consideration the maintenance and operation of the Panama Canal, report the following bill (S. 2829) to amend the Canal Zone Code, and for other purposes, and recommend that if do pass. PURPOSE OF THE BILL The general purpose of the bill is to establish appropriate and adequate authority in substantive legislation to support operations now conducted by the Panama Canal and procedures now followed, and the appropriations of funds for such operations and procedures. The draft of legislation was prepared by the Panama Canal pursuant to Budget Bulletin 1944–45: 10 of March 28, 1945, which required the heads of executive departments and establishments to review their appropriation language and submit proposed legislation necessary to support appropriation provisions required on a permanent basis for the operations of such establishments. The five sections of the bill amend the Canal Zone Code and deal with such subjects as acquisition or construction of structures, equipment and improvements; claims for losses of or damages to property; disaster relief; conduct of business operations; special training of employees; furnishing of prosthetic appliances for and making lump-sum payments to employees injured prior to September 7, 1916; and clothing and money for discharged prisoners. The bill would combine and restate as basic law, with only minor modifications, authority which has heretofore been found either in annual appropriation acts or in substantive legislation and would provide a definite basis for procedures which have been followed by the Panama Canal for many years, with full knowledge of the committees of Congress. EXPLANATION OF BILL BY SECTIONS Section 1 of the bill would add to the Canal Zone Code a section 16 of title 2, authorizing the Governor, within the limits of available funds, to purchase, or otherwise acquire equipment, and within the Canal Zone to purchase or otherwise acquire, construct, repair, replace, alter, or enlarge any building, structure, or other improvement, when in his judgment such action is necessary for the operation, maintenance, sanitation, or civil government of the Panama Canal or Canal Zone. The purpose of proposed section 16 is to provide the necessary support for the item carried in Panama Canal appropriations reading: "For chase, construction, repair, replacement, alteration, or enlargement of buildings, * * * pur |