ing a beneficiary who would receive this last pay check and any other funds that is owed to him under his conditions of employment. So this additional $250 probably would be adequate to cover other incidental items. Mr. WEICHEL. With reference to foreign corporations doing business there, are foreign corporations now licensed to do business in the Canal Zone? Mr. BURDICK. There are some; yes, sir. Mr. WEICHEL. Why should any be? Mr. BURDICK. For example, the Government may contract with a foreign corporation, that is, foreign to the Canal Zone, to construct building in the Canal Zone. If so, they should establish their responsibility to do business there the same as they would in any State in the Union here. Mr. WEICHEL. I mean, why should we just give to foreigners everything? You would think if the Army or somebody controls the Canal Zone, you at least would limit it to corporations of the United States or citizens of the United States. Are those a part of the United States, or is this a part of this free-for-all policy to give foreigners everything? I do not know why they are in there at all. I do not know why they should be licensed at all. Mr. BURDICK. This reference to foreign corporations, generally speaking, means foreign to that jurisdiction, and most of those corporations would be United States corporations. Mr. WEICHEL. Why should not it be limited to corporations of the United States or some States of the Union with reference to other countries of the world? I do not know why they should be licensed to do business in there. What is the policy for that, and what is the reason for that? Is that established by you or by whom? Mr. BURDICK. I would say that probably at the present time, when some foreign corporations are operating or have been operating airplanes through there, that it would be desirable to have them establish financial responsibility there and to designate process agents so that the public would be protected. I cannot think offhand of the various corporations that might be involved, but undoubtedly there are a number of foreign corporations that do business in the Canal Zone. Mr. WEICHEL. It is controlled by the Army. I do not know why corporations of other nations should be in there at all, even. Would you call a corporation of the State of New York that wanted to do business a foreign corporation. Mr. BURDICK. It is foreign to this jurisdiction there. Mr. WEICHEL. I do not understand that. The CHAIRMAN. As a matter of fact, the relations of the Panama Canal are so world-wide, and its connections, if we are going to carry out purposes and develop the Panama Canal to its fullest extent, we cannot very well pursue purely a domestic or an American policy; can we? This development that you are speaking of here is one that has grown up with the development of the Panama Canal. Mr. BURDICK. That is correct. This terminology that we are using here in foreign corporation, though, I believe is the same as used in States of the Union here. Mr. WEICHEL. I understand that it is, but I do not understand that this should be such an entity with reference to the corporations of any State of the Union, I mean, that terminology as a foreign corporation. I should think they should have the right to do business. I do not know where you get the idea of calling them a foreign_corporation, unless you are trying to set this up with a code to make it like another State of the Union; in other words, using the various States as a pattern. But I do not know what the real authority should be for that when it is a part of the Government of the United States. Mr. BURDICK. It is a place subject to the jurisdiction of the United States, and our thought is that, as far as that area is concerned, it is a jurisdiction just the same as you have in the continental United States divided into places, and a corporation organized under the laws of the State of Indiana, I assume, would be considered as a foreign corporation under the laws of the State of Ohio, for example. The CHAIRMAN. That is foreign to the Canal Zone. Mr. BURDICK. Yes; it is foreign to the particular jurisdiction. Mr. MILLER. You mean in the same sense that a Delaware corporation would be a foreign corporation in the District of Columbia? Mr. BURDICK. Right. Mr. O'TOOLE. Are there any further questions? (There was no response.) Mr. O'TOOLE. I might say at this point that the legislation was suggested and approved by the Secretary of the Army, Kenneth Royall, with no objections by the Director of the Budget. It was also approved by the Governor of the Canal Zone. Are there any other witnesses who are proponents of the bill? (There was no response.) Mr. O'TOOLE. Any opposed? (There was no response.) Mr. O'TOOLE. Due to the fact that the House meets at 11 today to consider the District rent bill and other important measures, I believe we will go over until 10 a. m., Tuesday, April 5. Mr. BURDICK. Thank you, Mr. Chairman. Mr. O'TOOLE. Mr. Burdick, we will then take up first H. R. 3159. (Thereupon, at 10: 55 a. m., the committee adjourned until 10 a. m., Tuesday, April 5, 1949.) MISCELLANEOUS BILLS-PANAMA CANAL TUESDAY, APRIL 5, 1949 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE No. 4 oF THE COMMITTEE ON Washington, D. C. The subcommittee met at 10 a. m., pursuant to adjournment, for the further consideration of H. R. 3159, a bill to amend the Canal Zone Code, and for other purposes, Hon. Donald L. O'Toole (chairman of the subcommittee) presiding. H. R. 3159 Mr. O'TOOLE. The committee will continue this morning the hearings on H. R. 3159, a bill introduced by our chairman, Mr. Bland, for the purpose of amending the Canal Zone Code. (The bill referred to is as follows:) [H. R. 3159, 81st Cong., 1st 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 23 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 "51. Authorization for establishment and operation of various facilities. "52. Organization and conduct of any such facilities by Panama Canal as 'business operations.' "53. Receipts from such operations, sales, and services; expenditure and reinvestment; reports. "54. 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 Government 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 operations', 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." Mr. O'TOOLE. I believe we will hear first from Mr. Burdick. STATEMENT OF BERNARD F. BURDICK, CHIEF OF OFFICE, THE PANAMA CANAL Mr. BURDICK. Bill H. R. 3159 is similar to H. R. 5103, Eightieth Congress, and is identical with S. 2829, that passed the Senate on June 12, 1948, and was referred to your committee on June 14, 1948. The general purpose of the proposed legislation is to establish appropriate and adequate authority in substantive law to support operations now conducted by the Panama Canal and the procedures now followed, and the appropriation of funds for such operations and procedures, which are now covered in part by substantive legislation and in part by provisions in appropriation acts. During the Seventy-ninth Congress Chairman Cannon of the House Appropriations Committee advised the executive department of the Government that the committee was inconvenienced by the number of provisions carried in the appropriation bills for the various agencies which were subject to a point of order unless covered by special rule by the Rules Committee. At his request the heads of executive departments and establishments were requested by the Bureau of the |