officers or employees committed or performed with intent to injure the person or property of another. Actions under this paragraph shall be tried by the court without a jury.

(g) Investigation before vessel's departure.-Notwithstanding any other provision of law, no claim shall be considered under this section, nor shall any action for damages lie thereon, unless, prior to the departure from Canal Zone waters of the vessel involved, the investigation under section 10a of this title of the accident or injury giving rise to such claim shall have been completed, and the basis for the claim shall have been laid before the corporation.

10a. Investigation of accidents or injuries to vessels, etc.-Whenever, within the waters of the Canal Zone, including the locks of the Panama Canal, a vessel, or its cargo, crew, or passengers, meets with an accident or sustains any injury which may be the basis of a claim against the Panama Canal Company, or inflicts any injury upon any structure, plant, or equipment of the said corporation, the Board of Local Inspectors of the Canal Zone Government, or a member thereof, shall promptly conduct an investigation of such accident or injury, including all the facts and circumstances surrounding the same and bearing on its proximate causation, the nature and extent of the injury, and the amount of the damages, if any, occasioned by such injury, and shall promptly, upon the conclusion of such investigation, transmit to the corporation, for its consideration in connection with any claim which may arise, a transcript of the record of such investigation, together with its findings and conclusions respecting the accident or injury. All matters pertaining to such investigation shall be completed before the vessel involved departs from Canal Zone waters.

10b. Injuries by Vessels to Canal Structures or Equipment.-A vessel, or its owners or operators, shall be liable to the Panama Canal Company for damages for injuries to any structure, plant, or equipment of or appertaining to the Panama Canal when such injuries are proximately caused by the negligence or fault of the vessel or its master or crew or by the issuance from such vessel of sparks or excessive quantities of smoke. Such damages shall be adjusted by mutual agreement when practicable between the said corporation and the owners, agents, or underwriters of the vessel. In the event of disagreement, the vessel or its owners or operators may be proceeded against by action in the United States District Court for the District of the Canal Zone.

16. ACQUISITION OR CONSTRUCTION OF STRUCTURES, EQUIPMENT AND IMPROVEMENTS. The Governor of the [Panama] Canal Zone 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 Zone, 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 Canala 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] procedure.

Any award made by 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.

19. Sale of Obsolete Materials and Equipment.-The Canal Zone Government is authorized to assemble, assort, store, repair, and sell materials, supplies, and equipment purchased or acquired for the civil government of the Canal Zone and which are obsolete, unserviceable, or no longer needed.

CHAPTER 2. ACCOUNTING FOR FUNDS

[Section 31. Consolidation of functions in relation to the various funds.-The consolidation of the functions of receiving, disbursing, and accounting for the funds of the Canal Zone Government and the Panama Railroad operations on the Isthmus with the functions of receiving, disbursing and accounting for the funds appropriated for the Panama Canal is authorized insofar as may be practicable, but separate accounts shall be kept of the transactions under each fund.]

31. Receiving, Disbursing, and Accounting for Funds of Canal Zone Government. The functions of receiving, disbursing, and accounting for the funds of the Canal Zone Government may, in the discretion of the Governor, be performed for said government, on a reimbursable basis, by the receiving, disbursing, and accounting officers of the Panama Canal Company.

41. AUTHORITY OF CERTAIN OFFICERS TO ADMINISTER OATHS. [For Certification of Papers]-[Members of the board of local inspectors, customs] Customs officers, quarantine officers, [and admeasurers] and members of the board of local inspectors, appointed by the Governor of the [Panama] Canal Zone, and admeasurers appointed by the Panama Canal Company, may administer oaths for the purpose of certifying the correctness of official papers.

43. Process to compel attendance of witnesses and production of papers.The district court may:

a. Issue processes at the request of the designated [Canal] officers to compel the attendance of witnesses and the production of books and papers; and

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CHAPTER 6. EMPLOYEES

[81. Appointment, removal, and compensation of necessary persons]

81. CONDITIONS OF EMPLOYMENT IN SERVICE OF CANAL ZONE GOVERNMENT.-All persons, other than the Governor of the [Panama] Canal Zone, necessary for the [care, management, maintenance, sanitation] civil government [, operation, and protection] of the [Canal and] Canal Zone shall- *

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[82. Deduction from compensation of persons in military or naval service.]

82. Compensation of Persons in Military, Naval, or Public Health Service.-(a) If any of the persons appointed or employed as provided_in_section 6, or [and] section 81, as amended, of this title are in the military, [or] naval, [service] or Public Health 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 those sections, but this section shall not be construed as requiring the deduction from the amount of such salary or compensation [,] of [:]—

[a.] (1) [The] the retired pay or [allowances] allowance of any retired warrant officer or enlisted man of the Army, Navy, Air Force, Marine Corps, or Coast Guard; or

[b] (2) [The] the training pay, retainer pay, or allowances of any warrant officer or enlisted man of the Reserve forces of the Army, Navy, Air Force, Marine Corps, or Coast Guard.

(b) The Canal Zone Government shall annually pay to each of the aforesaid services an amount sufficient to reimburse the said service for the official salary paid to any person in such service for the period of appointment or employment by the Canal Zone Government.

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ARTICLE 3. PANAMA RAILROAD COMPANY ACT

245. CREATION, PURPOSES, OFFICES, AND RESIDENCE OF PANAMA [RAILROAD] Canal COMPANY.-For the [purpose] purposes of [conducting business operations incident to the care, maintenance, sanitation, operation, improvement, government, and protection of the Panama Canal and the Canal Zone,] maintaining and operating the Panama Canal, and of conducting business operations incident to such maintenance and operation and incident to the civil government of the Canal Zone, there is hereby created, as an agency and instrumentality of the United States, [and as an adjunct of the Panama Canal,] a body corporate

to be known as the Panama [Railroad] Canal Company, hereinafter referred to as the "corporation."

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246. (c) In order to reimburse the Treasury, as nearly as possible, for the interest cost of the funds or other assets directly invested in the corporation, the corporation shall pay interest to the Treasury [at least annually, on the net direct investment of the Government in the corporation as defined in paragraphs (a) and (b) of this section, and shown by the receipt described therein, at a rate or rates determined by the Secretary of the Treasury as required to reimburse the Treasury for its cost. Payments of such interest charges shall be made annually to the extent earned, and if not earned shall be made from subsequent earnings unless the Congress shall otherwise direct.

(e) The corporation is further obligated to pay into the Treasury as miscel laneous receipts amounts sufficient to reimburse the Treasury, as nearly as possible, (1) for the annuity payments under article XIV of the convention of November 18, 1903, between the United States of America and the Republic of Panama, as modified by article VII of the treaty of March 2, 1936, between the said Governments, and (2) for the net costs of operation of the agency known as the Canal Zone Government. The net costs of operation of the Canal Zone Government, which are deemed to form an integral part of the costs of operation of the Panama Canal enterprise as a whole, shall not include interest but shall include depreciation and the reimbursement of other Government agencies for expenditures made on behalf of the Canal Zone Government. The payments into the Treasury, referred to in this paragraph, shall be made annually to the extent earned, and if not earned shall be made from subsequent earnings unless the Congress shall otherwise direct.

248. GENERAL POWERS OF CORPORATION.-The corporation shall have and may exercise the following general powers, in addition to those elsewhere conferred in this article: * * *

(e) * * *. Persons employed by the corporation whose compensation is paid on any basis other than a per annum basis shall not be included in making computations pursuant to the provisions of section 607 of the Federal Employees Pay Act of 1945. The provisions of section 82 of this title, as amended, shall apply to the corporation and to its officers and employees.

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255. Appropriations to Cover Losses.—Appropriations are hereby authorized for payment to the corporation of such amounts as may be shown in the annual budget program of the corporation as necessary to cover losses sustained in the conduct of its activities. Amounts appropriated to the corporation under authority of this section shall not be added to the amount of the reecipt referred to in paragraphs (a) and (b) of section 246 of this title, and shall not require payment of interest under paragraph (c) of said section 246: Provided, how ever, that repayments by the corporation to the Treasury shall in no case be treated as dividends under sections 246 (d) and 253 of this title until all amounts appropriated to the corporation under authority of this section shall have been repaid to the Treasury.

256. Authorization for Transfer of Panama Canal to Corporation.—The President is hereby authorized to transfer to the corporation the Panama Canal, together with the facilities and appurtenances related thereto, and any or all of the facilities and appurtenances heretofore maintained and operated by the Panama Canal under authority of section 51 of title 2 of the Canal Zone Code, as amended by section 2 of the Act of August 12, 1949 (ch. 422, 63 Stat. 601), and all or so much as he may determine to be necessary of the personnel, property, records, related assets, contracts, obligations, and liabilities of or appertaining to the said Canal and the aforesaid facilities or appurtenances, and such transfer shall be deemed to have been accepted and assumed by the corporation with

out the necessity of any act or acts on the part of the corporation except as otherwise stipulated in the provisions of section 246 of this title.

[255.] 257. * * [256.] 258. *

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ARTICLE 3. FERRY AND HIGHWAY NEAR PACIFIC ENTRANCE OF CANAL

341. MAINTENANCE OF FERRY [AND HIGHWAY] NEAR PACIFIC ENTRANCE.-The [Governor of the Panama Canal Company [under the supervision of the Secretary of War,] is authorized [:] [a. To] to maintain and operate, near the Pacific entrance of the Panama Canal, from a point at or near Balboa on the eastern side of the canal to a suitable point on the opposite shore of the canal, a ferry for the accommodation of the public, [and adequate to serve military needs, and for such [purposes] purpose is authorized to acquire such ferryboats and other equipment, and to construct and maintain such [wharves, docks.] slips and approaches from the highways, as may be necessary. [and b. To maintain a highway for the accommodation of the public and adequate to serve military needs, extending from the western terminal of such ferry to a point at or near the town of Arrayan at or near the Canal Zone line.] Such ferry shall be operated and maintained free of toll. [There are authorized to be appropriated annually such sums as may be necessary to carry out the provisions of this article.]

411. AUTHORITY [OF PRESIDENT] TO PRESCRIBE AND CHANGE] Measurement Rules and TOLLS.-The Panama Canal Company is authorized [subject to the provisions of the section next following] to prescribe and from time to time change (1) the rules for the measurement of vessels for the Panama Canal, and (2), subject to the provisions of the section next following, the tolls that shall be levied [by the Government of the United States] for the use of the Panama Canal [, but no tolls when prescribed as above shall be changed unless six months' notice is given by the President by proclamation.] : Provided, however, That the rules of measurement, and the rates of tolls, prevailing on the effective date of this amended section shall continue in effect until changed as provided in this section: Provided further, That the said corporation shall give six months' notice, by publication in the Federal Register, of any and all proposed changes in rates of tolls, during which period a public hearing shall be conducted: And provided further, That changes in basic rules of measurement and changes in rates of tolls shall be subject to, and shall take effect upon, the approval of the President of the United States, whose action in such matter shall be final and conclusive.

412. BASES OF TOLLS. [; maximum and minimum rates]-(a) Tolls on merchant vessels, army and navy transports, colliers, tankers, hospital ships, supply ships, and yachts shall be based on net vessel-tons of one hundred cubic feet each of actual earning capacity determined in accordance with the [Rules] rules for the [Measurement] measurement of [Vessels] vessels for the Panama Canal, [prescribed by the President and as may be modified by him from time to time by proclamation,] and tolls on other floating craft shall be based on displacement tonnage. [Provided, That the basic rules of measurement shall not be changed except after public hearing and six months' public notice of such change. The rate of tolls on laden vessels shall not exceed $1, nor be less than $0.75 per net vessel-ton as determined under the aforesaid rules, and] The rate of tolls on vessels in ballast without passengers or cargo [the rate] may be less than the rate of tolls for vessel with passengers or cargo. [In addition to the tolls based on measurement or displacement tonnage, tolls may be levied on passengers at rates not to exceed $1.50 for each passenger.]

(b) Tolls shall be prescribed at a rate or rates calculated to cover, as nearly as practicable, all costs of maintaining and operating the Panama Canal, together with the facilities and appurtenances related thereto, including interest and depreciation, and an appropriate share of the net costs of operation of the agency known as the Canal Zone Government. In the determination of such appropriate share, substantial weight shall be given to the ratio of the estimated gross revenues from tolls to the estimated total gross revenues of the said corporation exclusive of the cost of commodities resold, and exclusive of revenues arising from transactions within the said corporation or from transactions with the Canal Zone Government.

(c) Vessels operated by the United States, including warships, naval tenders, colliers, tankers, transports, hospital ships, and other vessels owned or chartered by the United States for transporting troops or supplies, may in the discretion

of the President of the United States be required to pay tolls. In the event, however, that such vessels are not required to pay tolls, the tolls thereon shall nevertheless be computed and the amounts thereof shall be treated as revenues of the Panama Canal Company for the purpose of prescribing the rates of tolls, and shall be offset against the obligations of the said corporation under paragraphs (c) and (e) of section 246 of this title, as amended.

(d) The levy of tolls is subject to the provisions of section 1 of article III of the treaty between the United States of America and Great Britain concluded on November 18, 1901, of articles XVIII and XIX of the convention between the United States of America and the Republic of Panama [entered into] concluded on November 18, 1903, and of article I of the treaty between the United States of America and the Republic of Colombia proclaimed on March 30, 1922.

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TITLE 4 THE CODE OF CIVIL PROCEDURE

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CHAPTER 17. FEES; COSTS AND SECURITY FOR COSTS IN THE DISTRICT AND MAGISTRATES' COURTS

982. Docket fees and other deposits for services of clerk or magistrate.-The United States of America, the Government of the Canal Zone, and the Panama Canal Company, or any officer thereof who sues or is sued in his official capacity, shall not be required to pay any costs for the bringing or defending of an action. * * *

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987. Same; attempts to serve process.-The following fees shall be charged for return on and mileage in attempts to serve process, or any order, judgment, or decree of any court in civil cases:

(a) For each return, $1;

(b) For mileage going one way in attempting to serve or execute any process, order, judgment, or decree of any court, for each mile traveled one way, 10 cents. No such fees shall be charged against the United States or the Panama Canal Company or an officer thereof sued in his official capacity.

1024. Security not required from government.-No security for costs shall be required of the United States, the Panama Canal Company, or any of its dependencies or from the public administrator.

ARTICLE 11. MALICIOUS AND OTHER INJURIES TO PANAMA CANAL AND OTHER PUBLIC OR SEMI-PUBLIC PROPERTY

833. Injury to or removal of boundary or survey monuments.-Every person who willfully injures, defaces, or removes any signal, monument, building, or appurtenance thereto, placed, erected, or used by persons engaged in the United States Coast and Geodetic Survey, the Military Survey of the United States Army, the Hydrographic Office of the United States Navy, or any other Government surveys, or the Panama Canal Company, or any public service company within the Canal Zone, knowing the same to be a boundary or survey monument, is guilty of a felony.

836. Injuring water system or fire protection apparatus, etc., misusing or wasting water.-Any person who shall:

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b. Willfully or otherwise misuse or waste, or cause to be misused or wasted, water supplied from the water mains owned and operated by the [Government of the] Panama Canal [Zone] Company;

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