MISCELLANEOUS BILLS-PANAMA CANAL TUESDAY, MARCH 29, 1949 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON THE PANAMA CANAL, COMMITTEE ON MERCHANT MARINE AND FISHERIES, Washington, D. C. The subcommittee met, pursuant to call, at 10 a. m., in Room 219, Old House Office Building, Hon. Donald L. O'Toole (chairman of the subcommittee) presiding. Present: Representatives O'Toole (chairman of the subcommittee), hompson, Wickersham, Barrett, Fugate, Weichel, Miller, and ichtenwalter. Also present: Hon. Schuyler Otis Bland (chairman of the full cmmittee). H. R. 3158 Ir. O'TOOLE. The committee will come to order. I believe we will corider H. R. 3158 first. Che bill referred to is as follows:) [H. R. 3158, 81st Cong., 1st sess.] A BI To revise and codify laws of the Canal Zone regarding the administration of estates, and for other purposes leenacted by the Senate and House of Representatives of the United States of Imrica in Congress assembled, That title 2 of the Canal Zone Code, approved Jue 1, 1934 (48 Stat. 1122), is amended by adding in article 1 of chapter 6 theeof new section numbered 84, reading as follows: "4. lAYMENT FOR ACCUMULATED OR ACCRUED LEAVE UPON DEATH.-Upon the deah of any officer or employee of the Panama Canal or the Panama Railroad Company on the Isthmus of Panama, any compensation which may be payable on court of his accumulated and current accrued leave, under the conditions of ployment prescribed by authority of section 81 of this title, as amended, shalbe paid, upon the establishment of a valid claim therefor, in the following orde of precedence: "Frs, to the beneficiary or beneficiaries, if any, lawfully designated by the emplye under the retirement Act applicable to his service; and "Spor, if there be no such designated beneficiary, to the estate of such decease enployee Provided, That any such payment shall be subject to the deductin, s provided in section 83 of this title, of all amounts due from the emplaee or supplies and services to the extent only, however, that other compensa on ue to the employee is insufficient for such purpose." SEC.2. tle 2 of the Canal Zone Code is amended by adding in chapter 9 thereo, tw new sections numbered 181 and 182, respectively, and reading as follows "181, BECLATIONS RELATIVE 10 ALCOHOLIC BEVERAGES.-The President is granted coinuing authority to make regulations in respect to the sale and manufaturf alcoholic beverages within, and the importation thereof into and exportaion vereof from, the Canal Zone, including the authority to prescribe licensesand fes for the sale and manufacture of such beverages. 1 "182. VIOLATION OF REGULATIONS; PUNISHMENT.-Any person who shall violate any provision of such regulations shall be punishable by a fine of not more than $500, or by imprisonment in jail for not more than six months, or by both, and in addition the license of such person may be revoked or suspended as the President may by such regulations prescribe." SEC. 3. Section 303 of title 2 of the Canal Zone Code is amended to read as follows: "303. REVOCABLE LICENSES COVERING LANDS OUTSIDE OF TOWN SITES.-Whenever the Governor of the Panama Canal deems such action to be necessary to, or in the interests of, the Government of the United States and of the efficient operation, maintenance, sanitation, government, and protection of the Panama Canal and Canal Zone, the Governor is authorized, either in person or through such officer as he may designate, to issue revocable licenses covering the use of tracts of land situated outside of town sites in the Canal Zone. The terms and conditions of licenses issued under authority of this section shall be as prescribed by the Governor, except that the said licenses shall be revocable a the pleasure of the Governor and that, upon revocation of a license hereunde, the licensee shall, immediately or upon such reasonable notice as the Governr may prescribe, vacate the licensed area, remove therefrom all improvemers which he may have placed upon the licensed area, and restore the licensed areato a condition satisfactory to the Governor, and shall not be entitled to indemnifation for the value of such improvements: Provided, however, That the liceres heretofore issued by authority of the Governor, and still in force, covering he use of tracts of land for agricultural purposes are ratified and confirme in accordance with the terms and conditions applicable to them, respectivelyand that upon the revocation of any of such licenses the terms and conditions plicable to which are such as to provide for compensation to the license in the reasonable value of the improvements made by him on said tract, o be determined in such manner as the Governor may direct, the compensaon is authorized so to be determined and to be paid out of any moneys herofore or hereafter appropriated for such purpose, except that no compensati shall be paid in the case of any license which is revoked on account of a aterial breach by the licensee of the terms and conditions applicable to his linse, or where the licensee shall have abandoned the license, or in case of the deal of the licensee." SEC. 4. Section 225 of title 3 of the Canal Zone Code is amended tread as follows: "225. CONTINUANCE AFTER ORIGINAL LICENSE PERIOD.-The right to catiue to do business for the calendar year, and the successive calendar years after the calendar year during which the original license was issued, shall be oningent upon compliance with such provisions of this chapter as are applicab tocorporations licensed under this chapter, upon the payment of a license fee of $10, payable in advance, on January 1 of each year, and upon the designatin of a new process agent before March 1 if the process agent theretofor degnated has ceased during a preceding calendar year to reside within the cana Zone.' SEC. 5. Title 4 of the Canal Zone Code is amended by inserting therei a new chapter numbered 27A, embracing sections 1470a to 1470f, ani reding as follows: "Sec. "CHAPTER 27A-DISPOSITION OF ESTATES WITHOUT ADMINISTRATION 1470a. Setting aside estates not exceeding $1,000 in value; inclusion of prication in 1470b. Same; separate petition prior to hearing of petition for probate or letes. 1470d. Same; notice of hearing. 1470e. Same; decree setting aside. 1470f. Same; denying petition and instead acting on petition for probate Icters. SEC. 1470a. SETTING ASIDE ESTATES NOT EXCEEDING $1.000 IN AUE; INCLU SION OF APPLICATION IN PETITION FOR PROBATE OR LETTERS.-If the ecdent leaves a surviving spouse or minor child or minor children, and the t alue of the whole estate, over and above all liens and encumbrances of reco atthe date of death and not including the property excepted from admistration under section 649 of title 3, does not exceed the sum of $1,000, the per peitioning for the probate of the will or for letters of administration may dd an allegation to that effect to the other allegations of the petition, with apecifi description of all of the decedent's property, a list of all the liens and encumbrances of record at the date of death, and an estimate of the value of the property, and may include, in the prayer, an alternative prayer that if the court finds that the net value of the whole estate, over and above all liens and encumbrances of record at the date of death and not including the property excepted from administration under section 649 of title 3 does not exceed $1,000, the same be set aside to the surviving spouse, if there be one, and if there be none, then to the minor child or minor children of the decedent. When such allegation is included in the petition, the petition shall be verified, and the notice of hearing shall include a statement that a prayer for setting aside the estate to the surviving spouse or minor child or minor children, as the case may be, is included in the petition. "CROSS-REFERENCE "Settlement by public administrator without regular administration of estates less than $250, see section 1703 of this title, as amended. "1470b. SAME; SEPARATE PETITION PRIOR TO HEARING OF PETITION FOR PROBATE OR LETTERS.—If the person petitioning for probate of the will or for letters of administration does not include such an allegation as is provided for by the next preceding section, the surviving spouse, if there be one, and if there be none, the guardian of the minor child or minor children, may, at any time prior to the hearing of such petition, file a verified petition setting forth the matters mentioned in the next preceding section, and pray that the estate be set aside for the use of the surviving spouse or minor child or minor children. If the hearing of the original petition is set for a day more than ten days after the filing of the petition herein provided for, the latter shall be set for hearing at the same time as the former; if not, it shall be set for hearing at least ten days after the date on which it is filed, and the former petition shall be continued until such date. "1470c. SAME; PETITION AFTER FILING OF INVENTORY.-If the decedent leaves a surviving spouse or minor child or minor children, and upon the filing of the inventory of the estate it appears that the net value of the whole estate, over and above all liens and encumbrances of record at the date of death and not including the property excepted from administration under section 649 of title 3, does not exceed the sum of $1,000, the personal representative of the decedent or the surviving spouse or the guardian of the minor child or children may file a verified petition showing the value of the estate to be no greater than as aforesaid, and the clerk shall fix a day for the hearing thereof. "1470d. SAME; NOTICE OF HEARING.-When a petition is filed under section 1470b or section 1470c of this title, the clerk shall give notice of the hearing for the period and in the manner required by section 1463 of this title. "1470e. SAME; DECREE SETTING ASIDE.-If, upon the hearing of any petition provided for by this chapter, the court finds that the net value of the estate, over and above all liens and encumbrances of record at the date of the death of the decedent and not including the property excepted from administration under section 649 of title 3, does not exceed the sum of $1,000, and that the expenses of the last illness, funeral charges, and expenses of administration have been paid, it shall, by decree for that purpose, assign to the surviving spouse of the decedent, if there be a surviving spouse, or, if there be no surviving spouse, then to the minor child or children of the decedent, if any, the whole of the estate, subject to whatever mortgages, liens, or encumbrances there may be upon said estate at the time of the death of the decedent. The title thereto shall vest absolutely in the surviving spouse, if there be a surviving spouse, or if there be no surviving spouse, in the minor child or children subject to whatever mortgages, liens, or encumbrances there may be upon said estate at the time of the death of the decedent, and there must be no further proceedings in the administration, unless further estate be discovered. "1470f. SAME; DENYING PETITION AND INSTEAD ACTING ON PETITION FOR PRORATE OR LETTERS.-If the court finds that the net value of the estate exceeds $1.000, or that there is neither a surviving spouse nor minor child, it shall act upon the petition for probate or for letters of administration in the same manner as though no petition to set aside the estate had been included, and the estate shall then be administered in the usual manner." SEC. 6. Section 1703 of title 4 of the Canal Zone Code is amended to read as follows: "1703. ESTATES LESS THAN $250.-Whenever the public administrator shall file with the clerk of the district court a statement that the value of any estate, of which he has taken charge, is less than $250, there shall be no regular administration on such estate unless additional estate be found or discovered; and the public administrator may, after the paymentof the expenses of the last illness of the deceased, and the funeral charges, pay out and deliver such estate to the surviving spouse of the decedent, if there be a surviving spouse, or, if there be no surviving spouse, then to the minor child or children of the decedent, if any, or, if there be neither a surviving spouse nor minor child, then to such creditors, heirs, or other persons as may appear in the judgment of the public administrator to be legally entitled thereto, and the title to such estate shall vest absolutely in the person or persons to whom the same is paid out and delivered as provided in this section." SEC. 7. Title 5 of the Canal Zone Code is amended by adding in article 8 of chapter 11 thereof a new section numbered 573 and reading as follows: "573. REGULATIONS FOR FIRE PROTECTION; VIOLATIONS.-The Governor of the Panama Canal is granted continuing authority to make regulations for prevention of, and protection against, fires in the Canal Zone: Provided, however, That no regulation made under this section shall have force or effect within the boundaries of any military or naval reservation in the Canal Zone, unless prescribed with the concurrence of the officers commanding the military and naval forces in the Canal Zone, as to the reservations within their respective jurisdictions. Any person who shall violate any of the regulations prescribed under this section shall be guilty of a misdemeanor." SEC. 8. Title 5 of the Canal Zone Code is amended by adding in article 10 of chapter 14 thereof a new section numbered 812 and reading as follows: "812. INJURING OR TAMPERING WITH MOTOR VEHICLE, LAUNCH, OF AIRCRAFT.— Every person who, without the consent of the owner of any motor vehicle "(a) willfully injures or tampers with such motor vehicle or the contents thereof; "(b) breaks or removes any part or parts of or from such motor vehicle; "(c) climbs into or upon such motor vehicle whether it is in motion or at rest, with intent to commit any malcious mischief, or injury or other crime; or "(d) manipulates or attempts to manipulate any of the levers, starting mechanism, brakes, or other mechanism or device of such motor vehicle while the same is at rest and unattended, is guilty of a misdemeanor. As used in this section the term 'motor vehicle' shall mean and include any automobile, motorcycle, other motor vehicle, motorboat or launch, or aircraft." SEC. 9. The following statutes or parts of statutes are reapealed: (a) Canal Zone Code, title 2, chapter 17, article 2, which article includes sections 331 to 333 of said title 2. (b) Canal Zone Code, title 4, sections 1467 and 1468. (c) The Act of May 3, 1932, entitled "An Act to authorize the modification of the boundary line between the Panama Canal Zone and the Republic of Panama, and for other purposes" (ch. 162, 47 Stat. 145; 48 U. S. C. 1304a to 1304c). (d) The Act of June 19, 1934, entitled "An Act authorizing the President to make rules and regulations in respect to alcoholic beverages in the Canal Zone, and for other purposes" (ch. 657, 48 Stat. 1116; 48 U. S. C. 1314b to 1314d). Mr. O'TOOLE. Mr. Bland, I think you would like to say a few words about H. R. 3158? The CHAIRMAN. I really have not had time to read the bill since I introduced it. I introduced it at the suggestion of the Panama Canal. I do not believe the reports have come in on it. Mr. Burdick, the Chief of Office of the Panama Canal, is present and he can tell you more about the bill than I can. Mr. O'TOOLE. I suggest that we call Mr. Burdick. The CHAIRMAN. The chairman just asked me to explain H. R. 3158 introduced by me, and I told him I introduced it at your request, as Chief of Office of the Panama Canal, and the War Department, and you would explain it. STATEMENT OF BERNARD F. BURDICK, CHIEF OF OFFICE, PANAMA CANAL OFFICE, ACCOMPANIED BY R. E. RAMSEY, ASSISTANT CHIEF OF OFFICE, AND W. M. WHITMAN, ATTORNEY Mr. BURDICK. Yes, sir. Mr. Chairman, this bill is composed of several amendments to the Canal Zone Code. For the most part, these amendments are unrelated, but they are desirable and necessary to improve the laws applying and relating to the Canal Zone. The provisions of the bill will not, it is believed, involve the expenditure of any additional funds. Section 1 of the bill would add to the Canal Zone Code a section 84 of title 2, relative to the designation of beneficiaries, and the order of precedence, for leave payments upon the death of an employee of the Panama Canal or the Panama Railroad Company on the Isthmus of Panama. Article 1 of chapter 6, title 2, Canal Zone Code, relates to appointment and compensation of Panama Canal and Panama Railroad employees in general and comprises sections 81 to 83. This proposed section would add in article 1 a new section numbered 84, the effects of which would be as follows: (a) The section would authorize any employee of the Panama Canal or Panama Railroad Company on the Isthmus to designate a beneficiary or beneficiaries to whom shall be paid by those agencies, any cash payment in commutation of the leave due such employee. (b) The section would provide for the making of any cash payment in commutation of leave in the same order of precedence as is provided in section 2 of the 1944 act, 5 United States Code 61c, namely, first, to the beneficiary or beneficiaries designated by the employees under the retirement act, and, second, to the estate of the decedent. (c) The section would, however, permit the deduction from any such cash payment, as provided in section 83 of title 2, Canal Zone Code, of all amounts due from the employee for supplies and services to the extent only, however, that other compensation due the employee is insufficient for such purpose. The amendment is definitely beneficial to employees. Its effect is such as to take the commutation payment entirely out of the estate of the deceased employee, resulting in prompt payment of the amount without the delay and expense of administration of his estate. The amendment would apply to Canal and Railroad employees on the Isthmus of Panama a congressional policy which has heretofore been applied to all other employees of the executive branch of the Government, including Government-owned corporations. The amendment would make no change in the amounts or rates of commuted leave payments, which are established by Executive order. Section 2 of the bill adds sections 181 and 182 to title 2 of the Canal Zone Code. The CHAIRMAN. Mr. Chairman, may I ask one question? Mr. O'TOOLE. Surely. The CHAIRMAN. Mr. Burdick, the members of the Panama Canal subcommittee, all or nearly all, are new members of the committee. They do not understand the machinery as well as you and I. I wondered if it would be well for you to explain to them just what the functions of the Panama Canal Railroad are, why they are in here, 89685-49- -2 |