THE ISTHMIAN CANAL.

To continue the construction of the Isthmian Canal, to be expended under the direction of the President, in accordance with an Act entitled "An Act to provide for the construction of a canal connecting the waters of the Atlantic and Pacific oceans,' approved June twenty-eighth, nineteen hundred and two, and Acts amendatory thereof or supplementary thereto:

First. For salaries of officers and employees of the Isthmian Canal Commission, including assistant purchasing and shipping agents, and all other employees in the United States, one hundred and thirty thousand dollars.

Second. For incidental expenses, including rents, cable and telegraph service, supplies, stationery and printing, and actual necessary traveling expenses in the United States (including rent of the Panama Canal building in the District of Columbia, seven thousand five hundred dollars, textbooks and books of reference, one thousand dollars, and additional compensation to the Auditor for the War Department for extra services in auditing accounts of the Isthmian Canal, one thousand dollars), fifty thousand dollars.

Third. For pay of members of the commission and officers and employees on the Isthmus, other than skilled and unskilled labor, including civil engineers, superintendents, instrumentmen, transitmen, levelmen, rodmen, draftsmen, timekeepers, mechanical and electrical engineers, quartermasters, clerks, accountants, stenographers, storekeepers, messengers, office boys, foremen and subforemen, wagon masters, watchmen, and stewards, including those temporarily detailed for duty away from the Isthmus, in the departments of construction and engineering, quartermaster's, subsistence, disbursements and examination of accounts, three million nine hundred thousand dollars: Provided, That not more than five thousand dollars of this appropriation shall be paid as compensation to the secretary of the commission.

Fourth. For skilled and unskilled labor on the Isthmus, including engineers, conductors, firemen, brakemen, electricians, teamsters, cranesmen, machinists, blacksmiths, and other artisans, and their helpers; janitors, sailors, cooks, waiters, and dairymen, for the departments of construction and engineering, quartermaster's, subsistence, disbursements and examination of accounts, sixteen million five hundred thousand dollars.

Fifth. For purchase and delivery of material, supplies, and equipment, including cost of inspecting material and of paying traveling expenses incident thereto, whether on the Isthmus or elsewhere, and such other expenses not in the United States as the commission deems necessary to best promote the construction of the Isthmus Canal, for the departments of construction and engineering, quartermaster's, subsistence, disbursements and examination of accounts, nineteen million dollars.

Sixth. For miscellaneous expenditures, cable and telegraph service, stationery and printing, local railway transportation, special trains, including pay-train service; transportation of currency to the Isthmus, recruiting and transporting laborers, transporting employees from the United States, repatriating laborers and employees, actual necessary traveling expenses while on the Isthmus on official business; expenses incident to conducting hearings and examining estimates for appropriations on the Isthmus, and all other incidental and contingent expenses not otherwise provided for, for the departments of construction and engineering, quartermaster's, subsistence, disbursements and examination of accounts, nine hundred and fifty thousand dollars. Seventh. For pay of the member of the commission in charge, of officers and employees, other than skilled and unskilled labor, including foremen, subforemen, watchmen, messengers, and storekeepers, of the department of civil administration, including those necessarily and temporarily detailed for duty away from the Isthmus, five hundred and fifty thousand dollars;

Eighth. For skilled and unskilled labor for the department of civil administration, twenty thousand dollars;

Ninth. For material, supplies, equipment, construction and repairs of buildings, and contingent expenses of the department of civil administration, including not exceeding five hundred dollars for law books, one hundred and ten thousand dollars; Tenth. For pay of the member of the commission in charge, of officers and employees other than skilled and unskilled labor, including hospital dispensers, internes, nurses, attendants, messengers, office boys, foremen and subforemen, watchmen, and stewards, of the department of sanitation on the Isthmus, including those temporarily detailed for duty away from the Isthmus, six hundred thousand dollars;

Eleventh. For skilled and unskilled labor of every grade and kind, for the department of sanitation on the Isthmus, two hundred thousand dollars;

Twelfth. For material, supplies, equipment, construction and repairs of buildings, medical aid and support of the insane, and of indigent persons permanently disabled, while in the line of duty and in the employ of the Isthmian Canal Commission, from earning a livelihood, and contingent expenses of the department of sanitation on the Isthmus, eight hundred thousand dollars.

Thirteenth. For the payment of the cost of relocating the Panama Railroad, including salaries, wages, material, and supplies, and all other expenses incident thereto, two million seven hundred and fifty thousand dollars.

In all, forty-five million five hundred and sixty thousand dollars, the same to be immediately available and to continue available until expended: Provided, That all expenditures from the appropriations heretofore, herein, and hereafter made for the Isthmian Canal, exclusive of fortifications, shall be paid from, or reimbursed to the Treasury of the United States out of the proceeds of the sale of bonds authorized in section eight of the said Act approved June twenty-eighth, nineteen hundred and two, and section thirty-nine of the tariff Act approved August fifth, nineteen hundred

and ten.1

Except in cases of emergency, or conditions arising subsequent to and unforeseen at the time of the passage of this Act, there shall not be employed at any time during the fiscal year nineteen hundred and twelve, under any of the foregoing appropriations for the Isthmian Canal, any greater number of persons than are specified in the notes submitted respectively in connection with the estimates for each of said appropriations in the annual book of estimates for said year, nor shall there be paid to any of such persons during that fiscal year any greater rate of compensation than was authorized to be paid to persons occupying the same or like positions on the first day of July, nineteen hundred and ten, and all employments made or compensation increased because of emergencies or conditions so arising shall be specifically set forth, with the reasons therefor, by the chairman of the commission in his report for the fiscal year nineteen hundred and twelve.

Ten per centum of the foregoing amounts shall be available interchangeably for expenditure on objects named; but not more than ten per centum shall be added to any one item of the appropriation.

No part of the foregoing appropriations for the Isthmian Canal shall be applied to the payment of allowances for longevity service, or lay-over days other than such as may have accumulated under existing orders of the commission, prior to July first, nineteen hundred and nine.

FORTIFICATIONS, ISTHMIAN CANAL.

For construction of seacoast batteries on the Canal Zone, two million dollars.

For the purchase, manufacture and test of seacoast cannon for coast defense, including their carriages, sights, implements, equipments, and the machinery necessary for the manufacture at the arsenals, to cost ultimately not to exceed one million nine hundred and sixty-six thousand dollars, one million dollars, the same to be immediately available and to continue available until expended.

SEC. 2. Hereafter the Panama Railroad Company shall carry no insurance to cover marine or fire losses, nor make any further payment on the principal or interest on notes heretofore given by it to the United States for moneys appropriated for its use. SEC. 3. All funds collected by the government of the Canal Zone from rentals of public lands and buildings in the Canal Zone and the cities of Panama and Colon, and from the zone postal service, and from court fees and fines, and collected or raised by taxation in whatever form under the laws of the government of the Canal Zone, are hereby appropriated until and including June thirtieth, nineteen hundred and twelve, as follows: The revenues derived from the postal service to the maintenance of that service; the remaining revenues, including any balances unexpended in prior years, after setting aside a miscellaneous and contingent fund of not exceeding ten thousand dollars, to the maintenance of the public-school system in the zone; to the construction and maintenance of public improvements within the zone; to the maintenance of the administrative districts; to the maintenance of Canal Zone charity patients in the hospitals of the Isthmian Canal Commission, and to the maintenance of administrative district prisoners. A detailed and classified statement of all receipts and expenditures without the duplication of items under this paragraph shall be submitted to Congress after the close of the fiscal year nineteen hundred and twelve.

SEC. 4. All funds realized during the fiscal year nineteen hundred and twelve by the Isthmian Canal Commission from the performance of services by the commission,

1 Should be "nineteen hundred and nine."

or from rentals, or from the sale of materials and supplies under the custody or control of the commission, are appropriated for expenditure under any of the foregoing classi fied appropriations for the department of construction and engineering; and a full and separate report in detail of all transactions under this section shall be made to Congress.

That until the close of the fiscal year nineteen hundred and twelve, when any material, supplies, and equipment heretofore or hereafter purchased or acquired for the construction of the Isthmian Canal is no longer needed, or is no longer serviceable, it may be sold in such manner as the Secretary of War may direct, and without advertising in such classes of cases as may be authorized by him.

SEC. 5. That hereafter the Act granting to certain employees of the United States the right to receive from it compensation for injuries sustained in the course of their employment shall apply to all employees under the Isthmian Canal Commission, when injured in the course of their employment; and claims for compensation on account of injury or death resulting from an accident occurring hereafter shall be settled by the chairman of the Isthmian Canal Commission, who shall, as to such claims and under such regulations as he may prescribe, perform all the duties now devolving upon the Secretary of Commerce and Labor: Provided, That when an injury results in death, claim for compensation on account thereof shall be filed within one year after such death.

SEC. 6 Hereafter the Panama Railroad Company shall not be required to give bond, either with or without surety, in contracts which it may make to furnish services, materials, or supplies to the Army, Navy, Marine Corps, or other departments of the Government, and such contracts may be made for periods less than one year, as may be agreed on, and formal contracts in writing shall not be required unless agreed on.

SEC. 7. That all sums appropriated by this Act for salaries of officers and employees of the Government shall be in full for such salaries for the fiscal year nineteen hundred and twelve, and all laws or parts of laws in conflict with the provisions of this Act be, and the same are hereby, repealed.

Approved, March 4, 1911.

[Public-No. 337.]
[H. R. 21969.]

An Act To provide for the opening, maintenance, protection, and operation of the Panama Canal, and the sanitation and government of the Canal Zone.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the zone of land and land under water of the width of ten miles extending to the distance of five miles on each side of the center line of the route of the canal now being constructed thereon, which zone begins in the Caribbean Sea three marine miles from mean low-water mark and extends to and across the Isthmus of Panama into the Pacific Ocean to the distance of three marine miles from mean low-water mark, excluding therefrom the cities of Panama and Colon and their adjacent harbors located within said zone, as excepted in the treaty with the Republic of Panama dated November eighteenth, nineteen hundred and three, but including all islands within said described zone, and in addition thereto the group of islands in the Bay of Panama named Perico, Naos, Culebra, and Flamenco, and any lands and waters outside of said limits above described which are necessary or convenient or from time to time may become necessary or convenient for the construction, maintenance, operation, sanitation, or protection of the said canal or of any auxiliary canals, lakes, or other works necessary or convenient for the construction, maintenance, operation, sanitation, or protection of said canal, the use, occupancy, or control whereof were granted to the United States by the treaty between the United States and the Republic of Panama, the ratifications of which were exchanged on the twenty-sixth day of February, nineteen hundred and four, shall be, known and designated as the Canal Zone, and the canal now being constructed thereon shall hereafter be known and designated as the Panama Canal. The President is authorized, by treaty with the Republic of Panama, to acquire any additional land or land under water not already granted, or which was excepted from the grant, that he may deem necessary for the operation, maintenance, sanitation, or protection of the Panama Canal, and to exchange any land or land under water not deemed necessary for such purposes for other land or land under water which may be deemed necessary for such purposes, which additional land or land under water so acquired shall become part of the Canal Zone.

SEC. 2. That all laws, orders, regulations, and ordinances adopted and promulgated in the Canal Zone by order of the President for the government and sanitation of the Canal Zone and the construction of the Panama Canal are hereby ratified and confirmed as valid and binding until Congress shall otherwise provide. The existing courts established in the Canal Zone by Executive order are recognized and confirmed to continue in operation until the courts provided for in this Act shall be established. SEC. 3. That the President is authorized to declare by Executive order that all land and land under water within the limits of the Canal Zone is necessary for the construction, maintenance, operation, sanitation, or protection of the Panama Canal, and to extinguish, by agreement when advisable, all claims and titles of adverse claimants and occupants. Upon failure to secure by agreement title to any such parcel of land or land under water the adverse claim or occupancy shall be disposed of and title thereto secured in the United States and compensation therefor fixed and paid in the manner provided in the aforesaid treaty with the Republic of Panama, or such modification of such treaty as may hereafter be made.

SEC. 4. That when in the judgment of the President the construction of the Panama Canal shall be sufficiently advanced toward completion to render the further services of the Isthmian Canal Commission unnecessary the President is authorized by Executive order to discontinue the Isthmian Canal Commission, which, together with the present organization, shall then cease to exist; and the President is authorized there. after to complete, govern, and operate the Panama Canal and govern the Canal Zone, or cause them to be completed, governed, and operated, through a governor of the Panama Canal and such other persons as he may deem competent to discharge the various duties connected with the completion, care, maintenance, sanitation, operation, government, and protection of the canal and Canal Zone. If any of the persons appointed or employed as aforesaid shall be persons in the military or naval

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 this Act. The governor of the Panama Canal shall be appointed by the President, by and with the advice and consent of the Senate, commissioned for a term of four years, and until his successor shall be appointed and qualified. He shall receive a salary of ten thousand dollars a year. All other persons necessary for the completion, care, management, maintenance, sanitation, government, operation, and protection of the Panama Canal and Canal Zone shall be appointed by the President, or by his authority, removable at his pleasure, and the compensation of such persons shall be fixed by the President, or by his authority, until such time as Congress may by law regulate the same, but salaries or compensation fixed hereunder by the President shall in no instance exceed by more than twentyfive per centum the salary or compensation paid for the same or similar services to persons employed by the Government in continental United States. That upon the completion of the Fanama Canal the President shall cause the same to be officially and formally opened for use and operation.

Before the completion of the canal, the Commission of Arts may make report to the President of their recommendation regarding the artistic character of the structures of the canal, such report to be transmitted to Congress.

SEC. 5. That the President is hereby authorized to prescribe and from time to time change the tolls that shall be levied by the Government of the United States for the use of the Fanama Canal: Provided, That no tolls, when prescribed as above, shall be changed, unless six months' notice thereof shall have been given by the President by proclamation. No tolls shall be levied upon vessels engaged in the coastwise trade of the United States. That section forty-one hundred and thirty-two of the Revised Statutes is hereby amended to read as follows:

"SEC. 4132. Vessels built within the United States and belonging wholly to citizens thereof; and vessels which may be captured in war by citizens of the United States and lawfully condemned as prize, or which may be adjudged to be forfeited for a breach of the laws of the United States; and seagoing vessels, whether steam or sail, which have been certified by the Steamboat-Inspection Service as safe to carry dry and perishable cargo, not more than five years old at the time they apply for registry, wherever built, which are to engage only in trade with foreign countries or with the Philippine Islands and the islands of Guam and Tutuila, being wholly owned by citizens of the United States or corporations organized and chartered under the laws of the United States or of any State thereof, the president and managing directors of which shall be citizens of the United States or corporations organized and chartered under the laws of the United States or of any State thereof, the President and managing directors of which shall be citizens of the United States, and no others, may be registered as directed in this title. Foreign-built vessels registered pursuant to this Act shall not engage in the coastwise trade: Provided, That a foreign-built yacht, pleasure boat, or vessel not used or intended to be used for trade admitted to American registry pursuant to this section shall not be exempt from the collection of ad valorem duty provided in section thirty-seven of the Act approved August fifth, nineteen hundred and nine, entitled 'An Act to provide revenue, equalize duties, and encourage the industries of the United States, and for other purposes.' That all materials of foreign production which may be necessary for the construction or repair of vessels built in the United States and all such materials necessary for the building or repair of their machinery and all articles necessary for their outfit and equipment may be imported into the United States free of duty under such regulations as the Secretary of the Treasury may prescribe: Provided further, That such vessels so admitted under the provisions of this section may contract with the Postmaster General under the Act of March third, eighteen hundred and ninety-one, entitled 'An Act to provide for ocean mail service between the United States and foreign ports, and to promote commerce,' so long as such vessels shall in all respects comply with the provisions and requirements of said Act."

Tolls may be based upon gross or net registered tonnage, displacement tonnage, or otherwise, and may be based on one form of tonnage for warships and another for ships of commerce. The rate of tolls may be lower upon vessels in ballast than upon vessels carrying passengers or cargo. When based upon net registered tonnage for ships of commerce the tolls shall not exceed one dollar and twenty-five cents per net registered ton, nor be less, other than for vessels of the United States and its citizens, than the estimated proportionate cost of the actual maintenance and operation of the canal subject, however, to the provisions of article nineteen of the convention between the United States and the Republic of Panama, entered into November eighteenth, nineteen hundred and three. If the tolls shall not be based upon net