Page images
PDF
EPUB

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."

SEC. 9. Section 16 of title 2 of the Canal Zone Code, as added by section 1 of the Act of August 12, 1949 (ch. 422, 63 Stat. 600), is amended to read as follows:

"16. ACQUISITION OR CONSTRUCTION OF STRUCTURES, EQUIPMENT, AND IMPROVEMENTS.—The Governor of the 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 civil government of the Canal Zone.”

Sec. 10. Section 17 of title 2 of the Canal Zone Code, as added by section 1 of the Act of August 12, 1949 (ch. 422, 63 Stat. 600), is amended to read as follows:

17. CLAIMS FOR LOSSES OF OR DAMAGES TO PROPERTY.–Authority is hereby conferred upon the Governor of the 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 civil government of the Canal Zone: Provided, however, That this section shall not apply to claims cognizable under the Federal tort claims procedure.

“Any award made to any claimant pursuant to this section shall be payable out of any moneys appropriated or made available for the sanitation and civil government of the 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."

SEC. 11. Title 2 of the Canal Zone Code is amended by adding in chapter 1 thereof a new section numbered 19 and reading as follows:

“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.”

SEC. 12. Section 31 of title 2 of the Canal Zone Code is amended to read as follows:

“31. RECEIVING, DISBURSING, AND ACCOUNTING FOR FUNDS OF CANAL ZONE Gov. ERNMENT.—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."

SEC. 13. Section 41 of title 2 of the Canal Zone Code is amended to read as follows:

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

SEC. 14. Section 43 of title 2 of the Canal Zone Code is amended by deleting, from subparagraph "a" thereof, the word "Canal”.

SEC. 15. The headline and introductory clause of section 81 of title 2 of the Canal Zone Code, as amended by section 3 of Act July 9, 1937 (ch. 470, 50 Stat. 487), are amended to read as follows:

"81. CONDITIONS OF EMPLOYMENT IN SERVICE OF CANAL ZONE GOVERNMENT.-All persons, other than the Governor of the Canal Zone, necessary for the civil government of the Canal Zone shall

SEC. 16. Section 82 of title 2 of the Canal Zone Code is amended to read as follows:

"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 section 81, as amended, of this title are in the military, naval, 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

“(1) the retired pay or allowance of any retired warrant officer or enlisted man of the Army, Navy, Air Force, Marine Corps, or Coast Guard; or

*

*

[ocr errors]

*

"(2) 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."

SEC. 17. The headline and first sentence of section 245 of title 2 of the Canal Zone Code, as added by the Act of June 29, 1948 (ch. 706, 62 Stat. 1075), are amended to read as follows:

"245. CREATION, PURPOSES, OFFICES, AND RESIDENCE OF PANAMA CANAL COMPANY.-For the purposes of 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 a agency and instrumentality of the United States, a body corporate to be known as the Panama Canal Company, hereinafter referred to as the 'corporation'.

SEC. 18. Paragraph (c) of section 246 of title 2, Canal Zone Code, as added by the Act of June 29, 1948, is amended to read as follows:

"(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 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. Payment 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."

SEC. 19. Section 246 of title 2, Canal Zone Code, as added by the Act of June 29, 1948, is amended by adding at the end thereof a new paragraph lettered (e) and reading as follows:

"(e) The corporation is further obligated to pay into the Treasury as miscellaneous 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 the subsequent earnings unless the Congress shall otherwise direct."

SEC. 20. Subparagraph (e) of section 248 of title 2, Canal Zone Code, as added by the Act of June 29, 1948, is amended by adding at the end thereof a sentence reading as follows: "The provisions of section 82 of this title, as amended, shall apply to the corporation and to its officers and employees."

Sec. 21. Section 249 of title 2 of the Canal Zone Code, as added by the Act of June 29, 1948, is amended by relettering subparagraphs (a) to (f) thereof as subparagraphs (b) to (g), respectively, and by inserting after the introductory clause of said section a new subparagraph reading as follows:

“(a) May maintain and operate the Panama Canal."

SEC. 22. Article 3 of chapter 12 of title 2, Canal Zone Code, as added by the Act of June 29, 1948, is amended by renumbering section 255 and 256 of said title 2 as sections 257 and 258, respectively, and by adding, in said article 3, two new sections numbered 255 and 256 and reading as follows:

"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 receipt 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, however, 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 without 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."

SEC. 23. Section 341 of title 2 of the Canal Zone Code is amended to read as follows:

"341. MAINTENANCE OF FERRY NEAR PACIFIC ENTRANCE.—The Panama Canal Company is authorized 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 for such purpose is authorized to acquire such ferryboats and other equipment, and to construct and maintain such slips and approaches from the highways, as may be necessary. Such ferry shall be operated and maintained free of toll."

SEC. 24. Section 411 of title 2 of the Canal Zone Code is amended to read as follows:

“411. AUTHORITY TO PRESCRIBE MEASUREMENT RULES AND TOLLS.—The Panama Canal Company is authorized 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 for the use of the Panama Canal: 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 basic rules of measurement and 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."

SEC. 25. Section 412 of title 2 of the Canal Zone Code, as amended by the Act of August 24, 1937 (ch. 752, 50 Stat. 750), is amended to read as follows:

“412. BASES OF TOLLS.—(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 for the measurement of vessels for the Panama Canal, and tolls on other floating craft shall be based on displacement tonnage. The rate of tolls on vessels in ballast without passengers or cargo may be less than the rate of tolls for vessel with passengers or cargo.

"(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 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.'

SEC. 26. Sections 982, 987, and 1024 of title 4, and section 833 of title 5, of the Canal Zone Code, are amended by deleting the term “the Panama Canal”, appearing in each of said sections, and inserting in lieu, thereof the term “the Panama Canal Company."

Sec. 27. Section 836 of title 5 of the Canal Zone Code is amended by deleting the term “the Government of the Canal Zone”, which appears in paragraph b of said section, and inserting in lieu thereof the term “the Panama Canal Company."

SEC. 28. The following statutes and parts of statutes are repealed': (1) Canal Zone Code, title 2, sections 32 and 33;

(2) Canal Zone Code, title 2, sections 51 to 54, as amended by section 2 of the Act of August 12, 1949 (ch. 422, 63 Stat. 601);

(3) Canal Zone Code, title 2, section 414;

(4) The paragraph entitled “Housing of officers serving in the Canal Zone" of the Act of July 9, 1918 (ch. 143, 40 Stat: 855 ; 10 U. S. C., sec, 721);

(5) Subparagraph (g) of section 2680 of title 28, United States Code;

(6) Section 6 of the Act of August 1, 1914 (ch. 223, 38 Stat. 679; 31 U. S. C., sec. 621);

(7) Section 1 of the Act of June 29, 1948 (ch. 706, 62 Stat. 1075; 48 U. S. C., sec. 1361); and

(8) All statutes and parts of statutes inconsistent with this Act, to the extent of such inconsistency.

SEC. 29. Except for section 256 of title 2 of the Canal Zone Code, as added by section 22 of this Act, this Act shall take effect upon the effective date of the transfer to the corporation, pursuant to the provisions of said section 256, of the Panama Canal together with the facilities and appurtenances related thereto.

Mr. O'TOOLE. The committee will come to order. The purpose of the meeting this morning is to consider H. R. 8677.

The Chair would first like to place in the record a letter addressed to the Speaker from the Office of the Secretary of Defense: (The report of the Department of Defense follows:)

THE SECRETARY OF DEFENSE,

Washington, May 25, 1950. Hon. SAM RAYBURN,

Speaker of the House of Representatives. MY DEAR MR. SPEAKER: Attached is a letter addressed to you by the Secretary of the Army recommending the enactment of a proposed draft of legislation, also attached, bearing the title “To authorize and provide for the maintenance and operation of the Panama Canal by the present corporate adjunct of the Panama Canal, as renamed; to reconstitute the agency charged with the civil government of the Canal Zone, and for other purposes."

This bill would implement recommendations 1 and 3 contained in the report of the Bureau of the Budget to the President, prepared pursuant to House Report No. 1304, Eighty-first Congress, first session, and transmitted by the President to you on January 31, 1950. With kindest personal regards, I am Sincerely yours,

Louis JOHNSON. DEPARTMENT OF THE ARMY,

May 24, 1950. Hon. SAM RAYBURN,

Speaker of the House of Representatives. DEAR MR. SPEAKER: I submit herewith a draft of bill, to authorize and provide for the maintenance and operation of the Panama Canal by the present corporate adjunct of the Panama Canal, as renamed; to reconstitute the agency charged with the civil government of the Canal Zone, and for other purposes.

The purpose of the bill is to implement recommendations 1 and 3 of the Bureau of the Budget in regard to the organization and operation of the Panama Canal and Panama Railroad Company which were transmitted to you by the President under date of January 31, 1950 (H. Doc. No. 460, 81st Cong.). Recommendations 1 and 3 of the Bureau of the Budget were:

1. It is recommended that all of the functions of the Panama Canal, except those relating to civil government, health and sanitation, be transferred to the Panama Railroad Company and the Company's name changed to the Panama Canal Company; the name, the Panama Canal, should be changed to Canal Zone government.

3. It is recommended that the Board of Directors of the Panama Canal Company be authorized to establish toll rates, subject to the President's

approval. The enclosed draft of bill was prepared at my request under the supervision of the Governor of the Panama Canal. A statement of the purposes and effect of the bill, and an analysis of its provisions are contained in the attached letter of April 24, 1950, from the Governor of the Panama Canal. It is recommended that the proposed legislation be enacted.

I am advised by the Director of the Bureau of the Budget that the enactment of this legislation would be in accord with the program of the President. Sincerely yours,

FRANK PACE, Jr.,

Secretary of the Army. A BILL To authorize and provide for the maintenance and operation of the Panama Canal

by the present corporate adjunct of the Panama Canal, as renamed ; to reconstitute the agency charged with the civil government of the Canal Zone, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5 of title 2 of the Canal Zone Code, approved June 19, 1934 (48 Stat. 1122), is amended to read as follows:

“5. Establishment, administration and functions of Canal Zone Government.The independent agency of the United States heretofore known as the Panama Canal shall hereafter

(1) be known as the Canal Zone Government;

“(2) be administered, under the supervision of the President or such officer of the United States as may be designated by him, by a Governor of the Canal Zone; and

“(3) be charged, except as otherwise provided by law, with the performance of the various duties connected with the civil government, including health,

sanitation and protection, of the Canal Zone. “Cross Reference: Appointment of other necessary persons, see section 81 of this title, as amended.”

SEC. 2. Except as otherwise provided in, or where inconsistent with, the provisions of this Act, the terms “the Panama Canal," "the Canal” and “the Canal authorities,” wherever appearing in the statutes of the United States and having reference, prospectively, to the agency heretofore known by those names, are amended to read “the Canal Zone Government.”'

SEC. 3. Except as otherwise provided in this Act, the title "the Governor of the Panama Canal," wherever appearing in the statutes of the United States, is amended to read “the Governor of the Canal Zone."

SEC. 4. Except as otherwise provided in, or where inconsistent with, the provisions of this Act, the term “the Panama Railroad Company," wherever appearing in the statutes of the United States and having reference, prospectively, to the corporation heretofore known by that name, is amended to read “the Panama Canal Company."

SEC. 5. The headline and introductory clause of section 7 of title 2 of the Canal Zone Code are amended to read as follows:

7. Control and jurisdiction of Governor over Canal Zone.—The Governor of the Canal Zone shall :

SEC. 6. Section 9 of title 2 of the Canal Zone Code is amended to read as follows:

“9. Regulations governing narigation and transiting of Canal, including licensing of officers of vessels.—The President, or such officer of the United States as may be designated by him, is authorized to make, and from time to time amend, regulations governing

“(1) the navigation of the harbors and other waters of the Canal Zone;

“(2) the passage and control of vessels through the Panama Canal or any part thereof including the locks and approaches thereto;

[ocr errors]
« PreviousContinue »