h PANAMA CANAL TREATY (DISPOSITION OF UNITED STATES TERRITORY) HEARINGS BEFORE THE SUBCOMMITTEE ON SEPARATION OF POWERS OF THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE NINETY-FIFTH CONGEESS SECOND SESSION PART 4 MARCH 11. 1978 Printed for the use of the Committee on the Judiciary PANAMA CANAL TREATY (DISPOSITION OF UNITED STATES TERRITORY) HEARINGS BEFORE THE SUBCOMMITTEE ON SEPAKATION OF POWEKS OF THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE NINETY-FIFTH CONGRESS SECOND SESSION PART 4 MARCH 11, 1978 Printed for the use of the Committee on the Judiciary U.S. GOVERNMENT PRINTING OFFICIO 24-681 O WASHINGTON : 1978 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 COMMITTEE ON THE JUDICIARY JAMES O. EASTLAND, Mississippi, Chairman EDWARD M. KENNEDY, Massachusetts STROM THURMOND, South Carolina BIRCH BAYH, Indiana CHARLES McC. MATHIAS, Jr., Maryland ROBERT C. BYRD, West Virginia WILLIAM L. SCOTT, Virginia JAMES ABOUREZK, South Dakota PAUL LAXALT, Nevada JAMES B. ALLEN, Alabama ORRIN G. HATCH, Utah JOSEPH R. BIDEN, Jr., Delaware MALCOLM WALLOP, Wyoming JOHN C. CULVER, Iowa HOWARD M. METZENBAUM, Ohio DENNIS DeCONCINI, Arizona PAUL G. HATFIELD, Montana Francis C. Rosenberger, Chief Counsel and Staff Director Subcommittee on Separation of Powers JAMES B. ALLEN, Alabama, Chairman ROBERT C. BYRD, West Virginia ORRIN G. HATCH, Utah JAMES O. EASTLAND, Mississippi WILLIAM L. SCOTT, Virginia Quentin Crommelin, Jr., Chief Counsel and Staff Director Dr. James McClellan, Minority Counsel Paul Guller, Editorial Director Melinda Campbell, Chief Clerk Ann Sauer, Assistant Clerk Deirdre Hodchins, Research Assistant (II) CONTENTS SATURDAY, MARCH 11, 1978 Witnesses McClellan, Doris, clerk of the U.S. District Court for the Panama Canal Page Zone 5 Luitweiler, James C, Secretary of the Joint United States-Republic of Panama Land Commission 9 Statement Helms, Hon. Jesse, a U.S. Senator from the State of North Carolina 7 Material Submitted for the Record Final Report of the Joint Commission appointed by the President of the United States of America and the President of the Republic of Panama, under the provisions of articles VI and XV of the treaty ratified Feb- ruary 26, 1904 17 Provisional Boundary Agreement (Davis-Arias Agreement) Informal pro- visional delimitation of the boundaries of the Canal Zone, 19i>4 125 Staff report regarding property records in the custody of the U.S. District Court for the District of the Canal Zone 129 Representative sample of types of instruments of conveyance by which the United States, as grantee, purchased proprietary land rights in the Canal Zone 135 Act of Congress authorizing land conveyance to Masonic Lodge 145 Historical summary of Panama Canal Company 147 (hi) Digitized by the Internet Archive in 2013 http://archive.org/details/ptreatOOunit PANAMA CANAL TREATY (DISPOSITION OF UNITED STATES TERRITORY) PART 4 SATURDAY, MARCH 11, 1978 U.S. Senate, Subcommittee on Separation of Powers, Committee on the Judiciary, Washington. B.C. The subcommittee met, pursuant to notice, at 10 :15 a.m., in room 1318, Dirksen Senate Office Building, Hon. James B. Allen of Ala- bama (chairman of the subcommittee), presiding. Present : Senator Qrrin G. Hatch of Utah. Also present : Senator Jesse Helms of North Carolina. Staff present : Quentin Crommelin, Jr., chief counsel and staff di- rector; Paul Guller, editorial director; and Deirdre Houchins, re- search assistant. OPENING STATEMENT OF CHAIRMAN ALLEN Senator Allen. The Subcommittee on Separation of Powers of the Committee on the Judiciary is convened today for the purpose of re- ceiving the testimony of Doris McClellan, clerk of the U.S. court for the Panama Canal Zone, and of James C. Luitweiler, formerly Sec- retary of the Joint United States-Republic of Panama Land Com- mission. The committee is convened for the further purpose of acting on the staff draft of the report of the subcommittee on the Canal Zone property disposal issue, the main focus of the committee's work during the past 8 months. As has been constantly emphasized for some time now during the Canal Treaty debate, the Constitution does very plainly require that Congress authorize any disposal of property belonging to the United States. Specifically, article IV. section 3, clause 2, of the Constitution states as follows: ''Congress shall have the power to dispose of * * * the territory or other property belonging to the United States." The requirements of this constitutional provision do not have any- thing whatsoever to do with whether or not the United States is sov- ereign within the ('anal Zone or even whether the ('anal Zone is unin- corporated territory of the United States as the Federal courts have consistently held. The issue is simply whether the United States owns property in Panama. If property is owned by the United States, then no disposal of such property to Panama can occur w ithout the express prior authorization of the Congress, including the House of Repre- sentatives. (l) Earlier this morning one of the representatives of the radio net- works asked me if this was a last ditch effort to defeat the Panama Canal Treaties. I told the person no, that the committee has been in- vestigating this point of constitutional law for the last 8 months. We have the records of the hearings in three books and a committee report as well. I am glad that the media, at long last, is taking note of this im- portant constitutional provision. Not only has the Senate Subcommittee on the Separation of Powers of the Judiciary Committee been going into this point, but also on the House side one of those committees has been investigating this point. It is happening not only in this Congress but happened in the last Congress. So it is not a new issue. It is a most important issue as to whether the House of Representatives will be allowed to participate in and to vote on the disposition of property of the United States in Panama. The testimony wdiich we will receive today and documentary evi- dence which the subcommittee will examine should lay to rest forever the idle and ill-informed recent assertions that the United States merely rents its property in Panama. Nothing could be further from the truth. Several able Senators in debate on the floor of the Senate, who should have known better, have stated that the United States does not own the property in the Panama Canal Zone but merely rents the prop- erty. Well, we would like to disabuse them about that misconception of the facts. Not only is the Panama Canal Zone unincorporated territory of our country, but additionally — and this is sufficient to trigger the require- ments of the Constitution — the actual fee simple title to a major part of the lands in the Canal Zone has directly vested in the United States by purchase. That would be information to a number of Senators who have participated in the debate on the floor of the U.S. Senate. FEE SIMPLE TITLE TO ;}.r>9 8 TRACTS OF LAND In other w T ords, not only does the United States possess the Canal Zone as owner of the territory, but additionally, the fee simple title to the land itself has become public property as a result of our Govern- ment's decision to buy up all private land holdings in the Canal Zone. These purchases of private land rights occurred during the period 190.") through 1920. and by the date of the final report of the Joint Land Commission on March 10. 1920, title to all former private land holdings in the Panama Canal Zone had vested exclusively in the United States. In obtaining its title, the United States dealt with the owners of some 3,598 tracts of land and did ultimately obtain full fee simple title to all lauds in the ('anal Zone previously held by these Panamanians or other private landowners. I might state that in the Treaty of 1903 this land purchase commission was set up for the expressed purpose of al- lowing the United States to purchase the land in Panama in the Canal Zone owned by private owners. These purchases were made at a cost of at least $4/T28,889 and possibly more. Although the activities of the Joint Land Commission are obviously a matter of record, the committee has nevertheless been greatly con- cernecl and, indeed, alarmed that many otherwise responsible Govern- ment officials seem to be under false impression that the United States does not hold title to these lands in the zone. For that reason, the com- mittee hopes that the testimony we are to receive today will establish beyond a shadow of a doubt the fact that the United States does own property in Panama and that Congress, therefore, must authorize any transfer of these public lands to any foreign government or. indeed, to any entity not part of the Government of the United States. ORIGINAL DEEDS In other words, the United States owns the fee simple title, and we have three cartons containing the records and the original recorded deeds to this property. I think this will lay the matter to rest. This is public property belonging to all of the people of the United States, and it cannot be legally given away except under authority of the whole Congress representing all of the people of the United States. It takes a statute enacted by both Houses of Congress. The Congress and the people bought the land; only the Congress and the people can give it away. HISTORICAL SPECULATION XOT NECESSARY This principle of public property disposal is a matter of record, yet there is a peculiar tendency of late to ignore the record and to ignore the true facts of the history of the actions of the United States in Panama. These revisionist historians — both in and out of govern- ment — are handicapped by one significant fact. That fact is that many of the people involved in this great national undertaking some 60 to 70 years past are still alive and possess memories unimpaired by the dream world inhabited by many modern commentators. Mr. J. C. Luitweiler has been, I am confident, bemused and possibly annoyed by current accounts of the nature of the United States' ac- tivities in Panama during the early days of the construction and opera- tion of the canal. Mr. Luitweiler went to Panama as a young man in February 1913, 65 years ago. He set sail with Dr. Rowe and Dr. Faulk- ner, both of whom had been appointed by President Wilson as Ameri- can Commissioners on the Joint Land Commission. The two Pana- manian Commissioners appointed by the 1 President of Panama met Mr. Luitweiler and the two American Commissioners on their arrival in Panama, and the Joint Commission soon thereafter began its work in purchasing private lands in the zone. This does not seem like a reluctant Panama helping to purchase this property. It seems they gave their full permission and certainly they ratified in every possible way the bona fides of the L903 treaty. The particular Commission on which Mr. Luitweiler served was one of several Commissions appointed dining the period 190.") through U>^(). but the 1 work of this particular Land Commission was exception- ally significant inasmuch as it was carrying out the instructions of President Wilson that all remaining private lands in the /.one should he acquired by the United States. Mi-. Luitweiler has a wealth of infor- mation for the committee, and we are indeed fortunate to have his tes- timony, both for the immediate purpose of setting the record straight and for the larger purpose of preserving for history Mr. Luitweiler's experiences in Panama with Colonel Goethals, now "General ;" Colonel Gorgas, now "General;" and the other great Americans who saw this great national adventure in Panama through to a successful conclusion. GREAT ALABAMIAN General Gorgas was a great Alabamian who was able to eliminate the yellow fever there. Without his contribution I feel that the canal would never have been built. That was one of the factors involved in the French failure to build a canal several decades before that. The committee is also deeply honored to have an opportunity to re- ceive the testimony of Doris McClellan, who is clerk of the U.S. district court in the Canal Zone but who is also the daughter of Senator John McClellan, who is greatly missed by the Senate and the country and who w T as to me a friend and a guiding example. We will hear from Miss McClellan, I am sure, that she is and has been cus- todian of the records of the land purchases by the United States in Panama and that under her safekeeping and custody these deeds and other records have been preserved and they are here this morning for the observance of the subcommittee and as a matter of record, in order to show without doubt the ownership by the United States of the property in the Panama Canal Zone by actual purchase. Miss McClellan is here to authenticate documents sent to the sub- committee by order of the U.S. district court. These documents are present in the sealed chests' before us. The committee is advised that these documents do establish the title of the United States to the real property in the Canal Zone which was purchased by the actions of the Joint Land Commission on which Mr. Luitweiler served. Very likely many of the documents upon which Mr. Luitweiler himself worked some 65 years ago are here in these chests. At the direction of the court, the subcommittee will open the chests and examine the records. As clerk of the court, Miss McClellan will certify the authenticity of the documents, and a representative sample will be received in the form of authenticated copies for in- clusion in the record of this proceeding. I might also suggest that a portion of these deeds be inserted in the Congressional Record as typical of the deeds of which there are several thousand that are in possession of the court showing owner- ship by the United States of land in the Canal Zone. Thereafter the documents will be returned to the custody of the administrator of the U.S. court, and they have been in his custody under the direction of Miss McClellan, and inasmuch as they have now been microfilmed, I understand they will eventually be retired to the National Archives and the microfilm itself will bear witness to the title of the LTnited States. For that reason the committee also has present a microfilm reader-printer so that again a representative sample of the microfilm record can be secured by the committee, au- thenticated by Miss McClellan, and included in the record of these proceedings. We are delighted to have you, Miss McClellan and Mr. Luitweiler, to appear before our committee to give us the benefit of your knowl- edge as to the acquisition by the United States of property in the Panama Canal Zone. Miss McClellan, we are delighted to have you here. I might ask that you state your name and your present position with the U.S. Government. TESTIMONY OF DORIS McCLELLAN, CLERK OF THE U.S. DISTRICT COURT FOR THE PANAMA CANAL ZONE Miss McClellax. I am Doris L, McClellan. I am clerk of the U.S. district court for the Canal Zone. Senator Allex. We see on the table before us three large wooden chests. I wish you would explain to the committee just what these chests are and what is in the chests, and then we will actually remove the contents in a moment. Tell us, if you will, how they came to be here in the U.S. Senate subcommittee hearing. Miss McClellax. The chests that you see here in front of you today hold the original records of the U.S. district court where the United States purchased the land from Panama, beginning with the year 1903. These three crates go up through 1914. There are many more boxes similar to these, but these were the very first three and these were the very first records. Senator Allex. When did you send these original records up here to Washington ? Why did you do that \ Miss McClellax. Because there were so many problems with the two countries down there, and you never know from day to day whether there is going to be a riot or what is going to happen. My court is right on the border and my records were not being properly cared for. I thought these records would be valuable someday to some- one who would want to prove that we did buy the land. So I put a microfilm unit in my office and I started microfilming all of my rec- ords. That was in 1975 when I started. These crates, including the ones you see here, I decided they were so important that I did not want them to go to the Xational Archives in Suitland, Mel., where the rest of our records are. I decided that I would ask the Administrative Office of the U.S. Courts if I could let the crates stay there. With the hearings coming up and everything, I wondered if maybe some of the members of the subcommittee might want to see them to get proof that we actually bought the land. Senator Allex. TIow long have you been clerk of the district court } . Miss McClellax. I was appointed clerk in 1971, but I served 2 years as deputy clerk prior to that. Senator Allex. As clerk of the district court for the Panama Canal Zone was it a part of your duties and responsibilities to have custody of the original documents relating to the purchase by the United States of land in what is now the Panama Canal Zone I Miss McClellax. That is correct. I acquired those records when I became clerk of the court. Then it was my job to take care of them. Senator Allex. Has there been any acquisition of property by the United States during your term of office as clerk? Miss McClellan. No, sir. Senator Allex. All of this was closed out manv years agol Miss McClellax. Yes. Senator Allex. Where were the records kept there in the court in Panama ? 6 Miss McClellan. They were not in my court per se but they were in the building about six blocks from where my court is. It was a build- ing with a tin roof on it where the air could get into it. I just felt that that was not a proper place to keep them. In the meantime, I leased a building called a chalet on a military base for safe keeping of my records. I transferred all of my records from the wooden building with the tin roof up to that other place. They now are in the chalet. However, most of my records with the exception of certain critical records from 1903 up to 1965 are now in Suitland, Md., in the Archives. They are stored out there. These three boxes have been microfilmed and will eventually go out to the Archives. Senator Allen. Do you think this is a complete set of the deeds? Miss McClellan. Oh, yes. it is, sir. You are welcome to open them and look at them, hold them in your hand, or whatever you would like to do. Senator Allen. You felt through your method of storage of the documents, that they were not getting proper care from the standpoint of the elements and possible damage to the documents themselves. Is that right? Miss McClellan. That is correct. Senator Allen. For that reason, plus the fact that you figured for their safety from other points of view, you felt it well in 1975 to send the documents up here to the Administrative Office of the United States Courts. Is that right ? Miss McClellan. That is right. Senator Allen. They have beer: there subject to your order, how- ever. Is that correct ? Miss McClellan. That is correct. Senator Allen. Now, I think it might be well at this time if we would ask the officers, if they would, to come around and help us get these documents. We will ask you to take all the documents out of one of the boxes. We will then see if we want to go ahead with the other boxes as well. Are there steel boxes under the wooden frames ? Miss McClellan. No ; they are wrapped in plastic. Senator Allen. What is the approximate size of these three chests ? Miss McClellan. Sir, I could not really tell you that, [Police officers open up crates.] Senator Allen. If you would, officer, take them out and put them in front of the boxes. [Material removed from crates in form of large leather-bound books.] Senator Allen. All of these have been microfilmed. Over here on the microfilm machine each one of the deeds has been recorded ? Miss McClellan. Yes, sir. Those are our official records now, that is, the microfilm, because these other books are so old. Senator Allen. I wonder if we might see some of the microfilm prints. [Senator examines books and microfilm.] Senator Allen. What we have here on microfilm tape is a perma- nent record of the original deed, as I understand it. [Senators examine microfilm.] [One book opened from under plastic cover and examined by Senators.] Senator Allen. 1 see it is recorded in English and Spanish. Miss McClellan. That is correct. Senator Allen. Do you know how many deeds are contained here ? Miss McClellan. No, sir, I have not researched that. Senator Allen. Contained here is the record of all the deeds show- ing purchase by the United States. I see that these show purchases from private owners in Panama in the Canal Zone. I see that in some instances they may have bought and paid for them several times. This was quite a job to put all this on microfilm, wasn't it i Miss McClellan. Yes, it was. Senator Allen. This will then preserve the original record for posterity. Is that right ? Miss McClellan. Yes. Senator Allen. Where is the original record ? Miss McClellan. It is in the Administrative Office of the Courts. Senator Allen. It was our purpose, as I understand it, under the direction of President Wilson to purchase all of the private property there. Miss McClellan. I have a list of all the names of the people con- nected with these transactions. Senator Allen, I did not bring the original copy of this but this is the list of persons and what I would call the final report for you [indicating]. Senator Allen. Thank you. You will be able to leave that with us ? Miss McClellan. Yes, that will be fine. Senator Allen. This has listed here on several dozen pages the amount claimed and the amount paid. There are literally hundreds of these. You actually give the names of the Panamanians who own property ? Is that correct ? Miss McClellan. Yes. Senator Allen. I am glad to have this for the record. [General discussion held amomr the members of the media, the Senators. Mr. Luitweiler. Ms. McClellan, and the audience.] Senator Allen. We have asked Mr. Luitweiler to come to the wit- ness table also. The distinguished Senator from North Carolina. Mi'. Helms, who is the Senator from Mr. Lnitweiler's home State, is here to present Mr. Luitweiler. Senator Helms, please proceed. STATEMENT OF HON. JESSE HELMS, A U.S. SENATOR FROM THE STATE OF NORTH CAROLINA Senator Helms. Thank you, Mr. Chairman. First of all. I want to commend yon on your opening statement. As has been the case throughout the decision and debate on the treaties, the debate has certainly been capably led by the Senator from Ala- bama. He has supplied an immense amount of commonsense to the debate. I have often thought, Mr, Chairman, that the Lord gave both the United States and me a aood constitution. It is up to us not to abuse them. I am often fearful of the abuse of the U.S. Constitution. 8 In connection with your comment about the disposition of U.S. property, I believe the record should show that more than half of the Members of the House of Representatives — 231 Members in fact — have cosponsored a House resolution expressing the conviction that Con- gress, both the House and the Senate, must act on the disposal of the Canal Zone. This clearly is a warning to the Senate; it may even be a red flag that, if the House of Representatives is ignored in this mat- ter, then the House of Representatives may indeed find it difficult to facilitate the implementating legislation which will be required by the treaties if the Senate should make the mistake of approving them. Now, as to this distinguished citizen from our State. Mr. Chairman, over the last year or so, Members of the Senate have been called upon to do a tremendous amount of reading and research to familiarize our- selves with the historical and technical data that we need at our finger- tips in order to participate in the great debate on the Canal Treaties. I do not know one Senator who has not been sent back to the history books by this tumultuous issue; and judging from the people I talk to, it has prompted many other Americans to do the same. I myself have had the good fortune to talk to many experts in the maintenance and defense of the canal. Not too many months ago I went to the Canal Zone to talk to the people who live there and to many Panamanian citizens. So I have had a rather thorough education in the matters affecting the canal. I am glad I have had it. But one of the greatest contributors to my education, I might say, has been a series of letters I have received from an extraordinary gen- tleman who is with us this morning, Mr. J. C. Luitweiler. Mr. Luit- weiler first wrote to me after seeing a "Meet the Press" broadcast on the Canal Treaties, in which I was participating. Since that time, I think it is only fair to attribute a great deal of what I know about the history of the Panama Canal to a "correspond- ence course'' with Mr. J. C. Luitweiler, of Tryon, N.C. Disturbed by what he was hearing about our acquisition of the Canal Zone, Mr. Luitweiler took to his typewriter to set the record straight. I believe the testimony here today will demonstrate that no one could be more qualified to do so than he. Mr. Luitweiler, now 88 years of age, is what the historians would refer to as a "primary source." To put it bluntly, that means he knows what he is talking about because he served as the secretary of the Joint Land Commission by means of which property owners in the Canal Zone were compensated. Mr. Chairman, he was appointed to this post by two American and two Panamanian members of the Commission, and it is he who signed the many orders of payments for the claims presented by the property owners, many of whom did not hold titles in the Anglo-Saxon mean- ing of the term. Mr. Luitweiler can singlehandedly refute the rather sophomoric al- legations of those in the Senate and elsewhere who continue to claim that we somehow "stole" the Canal Zone. Mr. Luitweiler can refute this with incontestable facts. He can speak about such people as Colonel Goethals and William Crawford Gorgas from personal reminiscence. He was on the scene 9 when the Canal Zone was transformed from a pestilential swamp to the greatest manmade waterway in the world. It is my pleasure to present my fellow Xorth Carolinian. Mr. Luitweiler. Senator Allen. Thank you, Senator Helms. We greatly appreciate that fine introduction. Mr. Luitweiler, I think for the benefit of the committee and the rec- ord you might explain just what your connection was, and what years you had that connection, regarding the purchase for the United States of America of land comprised of the Panama Canal Zone. TESTIMONY OF JAMES C. LUITWEILER, SECRETARY OF THE JOINT UNITED STATES-REPUBLIC OF PANAMA LAND COMMISSION Mr. Luitweiler. If you look at a copy of the treaty which was sent to me, you will find article VI and article XV on which the Joint Com- mission operated. Senator Allen. Yes, I have both right here. Mr. Luitweiler. You will find in article VI that the Commission was appointed of two Panamanians and two Americans who would evaluate whatever property was taken for the construction, the main- tenance, the operation, the sanitation, or the defense of the canal. At the end of 1913, Colonel Gorgas, for reasons best known to him, decided that the whole Canal Zone was necessary for that purpose, not just a piece of it but all of it. So he asked President Wilson to de- clare that the Lmited States would expropriate the entire Canal Zone and everything on it for the benefit of the Ignited States. He sent down two Commissioners, Dr. Rowe and Dr. Faulkner. I went along as a secretary. On the way down I was told that I was too young for the job but if I would grow a mustache I might be ap- pointed Secretary of the Commission. That is why I have the mustache here today. That is a 65-year-old mustache. It is worth $100 a month to me. Senator Allen. To put a little age on you so that you could qualify for the higher position? Mr. Luitweiler. I was 23 then and I looked like a kid. With a mustache T looked 10 years older. Senator Allen. It is not necessary now to establish your age to have the mustache, is it? Mr. LumvEiLER. If I shaved it off, I would not look any younger. [Laughter.] Senator Allen. I see. Mr. Luitweiler. Anyhow, we got down to Panama and we met two Panamanians, Dr. Boyd and Dr. Lewis. They spoke Spanish and English. Our Commissioners and I spoke English and Spanish also. Within 24 hours it was agreed that T should serve as the Secretary to the Joint Commission. I think another thing happened that is good for the record. Senator Alt ex. This is what year? Mr. Luitweiler. 1913. General Gorgas had beautiful quarters set up for us on the Canal Zone. He said, "I want the Commission under my thumb." He said that to other people, too. 10 The Americans said that they would have to confer with Panama- nians about that. We went to Panama, and the President of Panama showed us the palace. He said we could use it for the meetings if we liked. It was beautiful, like a judge's chambers. AMERICANS WELCOME So he treated us handsomely. He wanted to do everything he could to make us welcome because the President of Panama was all for tak- ing over the Canal Zone bv the United States and for paying for the property that was owned there. Senator Allen. Had the canal opened at that time ? Mr. Luitweiler. No, not until the end of 1914. This was preparation for the openng of the canal. After that constitution of the Commission, they appeared in public session. Judge Faye, General Counsel for the Panamanian Canal Com- mission, testified before the Commission that in his opinion all the thousands of Panamanians, Xegroes from the Caribbean Islands, and so on doing work on the canal were there as squatters. They had no title. American law said you had to be 20 years or 30 years before you can acquire title to land that you squatted on. That matter became the subject of discussion at the first meeting of the Joint Commission in the judge's chambers. I sat in there about a month. The Panamanians brought in a lot to demonstrate the civil law. They said these were the laws that applied. They said that people were squatting on the land and they said that these people were entitled to be treated under Panamanian law. Senator Allen. You went by the civil law of Panama in paying compensation for the land, did you not? Mr. Luitwetler. The civil law of Panama provided that anybody who squattered on land even for 24 hours, if he was kicked off, he was entitled to be paid for his improvements. Senator Allen. You respected that law in making your acquisition? Mr. Luitweiler. This is an aside. There was quite an argument which went on regarding this subject. Dr. Rowe said, "If we accept Dr. Fave's principle and kick all these people out without paying a cent, we will have a black eye." Senator Allen. You didn't follow that? Mr. Luitweiler. We didn't. We decided on the contrarv, which fol- lowed the Panamanians' idea of the Spanish law applying. Since there were tens of thousands of pieces of claims, the Commis- sion decided it could not hear earm and everv individual claim. Instead of that, they set up a yardstick. There would be so much. $50, for every hut which was planted with banana trees; there would be $50 for a man and his wife; if he had children, there would be $50 for everv child. DOUBLE PAYMENT FOR PANAMANIANS Senator Allen. When you ascertained how much the Panamanians in possession of the property were entitled to, you doubled that, did you not? Mr. Luitweiler. That is right. If a man was a Panamanian citizen, it was doubled. 11 Dr. Kowe and Dr. Faulkner had the view that these people were being kicked out of their land. They said, "If Ave follow Judge Faye's principle, this would be a black eye." You remember when the English kicked the French out of Canada, they had that situation. They did not want that on our conscience. They wanted the Panamanians to be satisfied. When it was published in the newspaper that the award was going to be on the Spanish law — and they actually set out the way it was to be d one — the Panamanian citizens and the government and everybody acclaimed it. The only people who objected was General Gorgas be- cause he thought it was going to add to the cost of the canal. Paving these individual claimants would probably cost $150,000 or $200,000. This was a drop in the bucket compared to the cost of the canal. Senator Allen. You paid not only for the land, but you paid for the improvements that you found on the land. Is that right? Mr. Luitweiler. Yes. In addition, we paid for consideration of the fact they had been evicted from their homes. Senator Allex. The Commission was charged with the duty and the responsibility of buying all the land in the Panama Canal Zone. Is that right? ' Mr. Luitweiler. That is right. Senator Allex. They made a good faith effort to do that. Is that right? AWARDS PAID WITHTX 2 4 HOURS Mr. Luitweiler. Yes; and it could be said to Colonel Gorgas' credit that none of the awards that were paid were turned down. They were paid within 24 hours. So the U.S. Government did its part in paying religiously every claim if the award was made. Senator Allex. Did the Commission in your judgment buy all of the property in the Panama Canal Zone for the United States of America ? Did the Commission purchase from private owners all of the land in the Panama Canal Zone for the United States of America? Mr. Luitweiler. As far as I know, they did because at the end Senator Allex. The Commission was open for anyone to come in to present a claim for property. Is that right? Mr. Luitweiler. Yes. Unfortunately, T had a bad case of malaria at (he end of 1914 and I was an invalid. Dr. Rowe and Dr. Faulkner were replaced by two other American Commissioners. That went on for a couple of years. Senator Allex. By the way. this was rather a strange Commission. You had two Panamanians and two Americans. That is not usually the case. If they could not agree, I believe the two governments would appoint a referee or an umpire. Mr. Luitweiler. Yes, an umpire. Senator Allex. That's an unusual Commission. Were there many instances of having to get an umpire or did the Panamanian Commissioners and the American Commissioners gen- erally see eye to eye I Mr. Luitweiler. They agreed pretty well while 1 was there. Put when they were replaced by two more Commissioners, the fat was in the fire. They didn't agree at all. Senator Allex. Then they had to appoint an umpire ! 12 Mr. Luitweiler. Yes. He happened to be a Spanish general or ad- miral who had been wounded in the Spanish-American War. Obvious- ly you can figure what happened to the claims. Panama got a very good deal. Senator Allen. Did the Commission have maps of the Panama Canal Zone, land mass ? Did you have maps to go by ? Mr. Luitwetler. You have to picture the Canal Zone I saw in those days. It was 500 square miles of land. There were a few squatters here and there. After the Commission had gotten itself settled down, they made manv excursions throughout the Canal Zone taking testimony of individuals. They would take individual testimony. They would move to another place and so on. They scattered all over. CANAL ZONE A SWAMP They did not plot out a piece of land on a map. It was not plotted that way. The Canal Zone was almost a swamp when Gorgas came there. Senator Allen. The Government of Panama by the appointment of these Commissioners, acting under the treaty, seemed anxious to have the United States buy this property, were they not? Mr. Luitwetler. Ii you go back to the original treaty Senator Allen. I am not talking about the treaty. I know what the treaty says. At the time you were working down there, did not the Panamanian Government seem anxious to cooperate with the United States in buying this property ? Mr. Ltjitweiler. Yes, but we did not buy anything from the Pana- manian Government. Senator Allen. Yes; I know that, but from the private owners. They encouraged the landowners to sell, did they not ? Mr. Ltjitweiler. They were delighted. Their claims were far in ex- cess of what the Panamanians even thought was correct. Many of the claims that we heard in our session said that the Panamanians them- selves said it was ridiculous. For instance, there was a big cocoa plantation where they raised cocoa. It had been there for 10 years. They wanted to be paid for what the cocoa plant would be worth in the next 20 years. The Commission turned that down. But the big thing was, from my point of view, the individual Pana- manian landowner. I cannot remember any dissent at all b}^ an indi- vidual landowner. TREMENDOUS INCREASE IN LAND VALUES Senator Allen. I know there is an interesting phrase in the 1903 Treaty that the payment for the land or damages would be based upon a valuation before the signing of the treaty. That indicates in our mind — and I would like for you to verify this or say it is not correct — that the coming of the canal greatly increased land values in Panama. Is that not right ? Mr. Luitwetler. I don't think the American Commissioners paid attention to that clause. Senator Allen. I undorstand that, but is that not a fact that this coming of the canal raised land values? 13 Mr. Luitweiler. Yes ; tremendously. Senator Allen. It was not a disservice then to the Panamanians. Mr. Luitweiler. That was a yardstick for the valuation of the land. Senator Allen. Let me ask you this. I have never had the pleasure of meeting you before this morning, Mr. Luitweiler. I have not sought to prompt you in any way. Did the Commission buy any land which was the route of the canal itself? Did you purchase land Mr. Luitweiler. No. The Commission had nothing to do as to where the United States took the land from Panama for the canal. The Commission had nothing to do with that. If you read article XV you will see that their idea was to pay for the property owners whose land was taken in damage. That's what they did. There never was the United States and Panama before the Commission as a court. Senator Allen. The route of the canal was filled up with the water. Was it full at the time you went to the Canal Zone ? Had the water filled up that area where the Canal Zone was? Some of it was still without water ; right ? Mr. Luitweiler. I was there at the opening of the canal. Senator Allen. But when you first got there was the canal in being; whether it was open or not? Mr. Luitweiler. The canal was in being; yes. I think in August 1914, it opened. Senator Allen. Then what the particular Commission on which you served did was to buy the land from the bank of the canal outright. Is that right? Mr. Luitweiler. That is right. Senator Allen. The other Commissions established before the par- ticular commission on which you served may presumably have bought out private land holders along the route of the canal but your Com- mission did not buy the land where the canal actually went because the canal was already there and in any event that was covered by the 1903 treaty. Is that right? Mr. Luitweiler. That is right. If you read the 1903 treaty, you will find 5 miles on either side of the canal was granted to the LTnited States. They did not have to buy that land from Panama because they paid $10 million for that land at that time and $250,000 a year. I know a lot of people contend that we do not own the land because we were a leaseholder. But if you buy a leasehold in perpetuity, I do not see any difference. Senator Allen. Miss McClellan, I would like for the record to show this. I would like for you to identify several representative deeds and certify such records. Also, I would like for you to identify the corre- sponding portion of the microfilm which lias been develop for the com- mittee's records. You don't have to do it now but when we recess we would like for you to do it. Without objection, the representative copies of the deed records and representative copies of the corresponding microfilm developed will be inserted in the record at this point. I avsk also that we put into the record representative sheets from the joint report. It would l>e so voluminous, so we will not include that, but ask that there be representative sheets picked out for filing in the 14 committee report and to state the exact number of claimants and sellers of property for the record. However, the matter has been called into question and, therefore, perhaps the entire report should go into the record so that the issue will not again be raised in error. Senator Helms, would you like to ask a couple of questions? Senator Helms. Thank you very much. I would like to ask two or three, Mr. Chairman. Mr. Luitweiler, what you have said here is that the United States had the sovereign right to exercise eminent domain and that sovereign right came down from the 1903 Treaty. Is that right? Mr. Luitweiler. Yes. That was not disputed at all. The Pana- manians and Americans recognized that we had sovereign rights to the Canal Zone, rights as if we owned the canal. Senator Helms. There was no dispute about it? Mr. Luitweiler. No dispute whatsoever about that. Senator Helms. Did any property owner claim he had been under- paid for his property ? Mr. Luitweiler. No. Everybody, including the press, acknowledged that everybody was being overpaid. Senator Helms. So the newspaper records of that day will show that not only were the property owners satisfied, they were delighted with what they were paid ? Mr. Luitweiler. I think if you get the Panama Star and Herald of that day you will find that they were laudatory toward the work of the Commission. Senator Helms. As a man who w T as on the scene and participating in these events in the early part of the century, what do you say now to those in the Senate and elsewhere who claim that the United States stole this property ? Mr. Luitweiler. Do you want to get me stirred up? [Laughter.] I really want to have at least 15 minutes to tell what I think. [Laughter.] I think Teddy Roosevelt did a wonderful job in getting the canal land from Panama and not creating a problem with Panama, but in getting Colonel Gorgas down to the Canal Zone and making the Canal Zone a fit place for Americans to work and live. What worries me most about the present situation is that — Mr. Torrijos, of course, has entertained people in the daytime, but Gorgas made the Canal Zone a healthy zone, probably the most healthy place in the tropics for Americans to live and work. Senator Helms. For everybody to live and work, Panamanians as well as others. Is that correct? REASON FOR "LUXURY'' LIVING Mr. Luitweiler. That is what the Panamanians claim. Right across the border they lived in squalor while Americans lived in luxury. That was all because Mr. Gorgas decreed that every American down there should live in a screened-in barracks. Every American who lived in a home with his family should live in a screened-in home with a well-kept lawn. Of course, you know mosquitoes breed in mudholes and he was against that. 15 You have to live in the tropics for many years to realize what it is to be there and to be subject to the things that the tropics have. You don't experience that up here. I lived in Yucatan for 5 years before I went down to Panama. That was another jungle. I know what it is to live in a jungle and ride horseback through the jungle and have Indians cut your way through the jungle. Some of the Commissioners went out in the jungle to take testimony. We had a group of a half a dozen Indians with machetes chopping our way through the jungle. AVe don't have any jungle in the United States to compare with the jungle in a tropical country. Of course, in Panama it is worse than ever. A jungle will creep back and take over within a month or two. One of the things I am very fearful of is that when the treaty is. passed, within 2 months the boundaries between the Canal Zone and Panama will come down and the Panamanians will move in there. The Panamanians are not so fearful as we are of malaria because to Panamanians malaria is what a common cold is to us. They get a chill and fever and that is it. To us it can kill us. In my opinions, as soon as the border between the zone and Panama comes down, the jungle will creep back in and the American tech- nicians who are still responsible for the Canal Zone will leave the Canal Zone. I do not give that canal more than 2 years of life once the Canal Zone is turned over to Panama. Senator Allex. Thank you. Miss McClellan, these records here are the records of the purchases of the United States from the Panamanians who had propertv in the Canal Zone. Is that right? Miss McClellax. That is right. Senator Aelex. Is the final report of the Land Commission the final report of all the purchases or is that the last report following a -erics of monthly reports? Miss McClellax. That is the last report. Senator Allex. Is that cumulative or not? Does it just represent the last purchases or does it represent all the purchases? Miss McClellan. I thought it represented all the purchases. Senator Allen. In other words, it would be cumulative? Mi so ordered. Miss McClellan and Mi-. Luitweiler, I want to express my personal appreciation and the appreciation of Senator Hatch and Senator Helms for what we consider a jjreat public service that both of you have rendered in bringing this information before the committee and the full Senate as well as before 1 the Nation. It will help to settle the 16 dust on this question of whether or not the United States owns the land in the Panama Canal Zone. I think it has been established, with- out doubt, that the United States does own this land. The United States is the grantee in these deeds, is it not ? Miss McClellan. That is right. Senator Allen. So I think we are now faced with the constitutional issue of whether the administration will allow the House of Repre- sentatives to act on the transfer of this property as required by article IV, section 3, paragraph 2, of the Constitution. It is clear to me and I believe it is clear to the majority of the mem- bers of the subcommittee that prior Congressional authorizations is required. I do not believe we are going to have too many statements made in the future that the United States was just renting this land in the Canal Zone. I think it has been established without doubt that the United States, by right of purchase and by right of deed, owns the fee simple title to the land in the Canal Zone. So we do express our deep appreciation to both of you for the public service that you have rendered. Senator Hatch, do you have any questions ? Senator Hatch. I also would like to thank you both for the testi- mony that you have given. I think it is very important for every American to understand the situation. You have helped us very much. Senator Allen. We want to thank you both again very much. You have the thanks of the subcommittee and the full committee. I will take the liberty of saying that you have the thanks of the Nation for appearing here today. The subcommittee is adjourned subject to the call of the Chair. [Whereupon, at 11 :30 a.m., the subcommittee was adjourned.] [The aforementioned final report, Provisional Boundary Agree- ment, and representative copies of the deed records follow :] | Also included hereafter is a staff report to the Chairman and a historical summary of the propriety operations of the United States in the Canal Zone. The historical summary was prepared by the Panama Canal Company and is useful in the'eontext of the investiga- tion by the Subcommittee primarily in describing in historical terms the several agencies of the United States which acquired realty for the United States at each of the various stages of the eventual pur- chase by the United States of fee simple title to the Panama Canal Zone.] 17 FINAL REPORT Of THE JOINT COMMISSION APPOINTED BY THE PRESIDENT OF THE UNITED STATES OF AMERICA AND THE PRESIDENT ■ OF THE REPUBLIC OF PANAMA under the provisions of Articles VI and XV of the treaty ratified February 26, 1904. THK PANAMA CANAL P3ESS MOUNT HOPE. C. Z. 1920. 19 National Palace, Panama, R. P., March 10, 1920. The Honorable, The Secretary of State of the United States of America, *. ' Washington, D. C. The Honorable, : The Secretary of Foreign Relations of the Republic of Panama, Panama ^R.. P. Sirs: The Joint Commission established under the treaty between the United States of America and the Republic of Panama, ratified February 26, 1904, having completed the cases pending before it, has the honor to submit the following report: The provisions of the treaty under which the Com- mission was organized read as follows: •"Article VI. The grants herein contained shall in no manner invalidate the titles or rights of private land holders or owners of private property in the said zone or in or to any of the lands or waters granted to the United States by the provisions of any Article of this treaty, nor shall they interfere with the rights of way over the public roads passing through the said zone or over any of the said lands or waters unless said rights of way or private rights shall conflict with rights herein granted to the United States in which case the rights of the United States shall be superior. All damages caused to the owners of private lands or private property of any kind by reason of the grants contained in this treaty or by reason of the operations of the United States, its agentsor employees or by reason of the construction, maintenance, operation, sanitation and protection of the said Canal or of the works of sanitation and protection herein provided for, shall be appraised and settled by a joint commission appointed by the Governments of the United States and the Republic of Panama, 20 rwhose decisions as to such damages shall be final and whose awards as to such damages shall be paid solely by the United States. No part of the Work on said Canal or the Panama Railroad or on ./any auxiliary works relating thereto and authorized by the terms Jbl this treaty shall be prevented, delayed,, or impeded by or ^pending such proceedings to ascertain such damages. The ap- praisal of said private lands and private property and the assess- ment of damages to them shall be based upon their value before -the date of this convention/' ', :..._-,'■.-/ . "Article. XV. The joint commission referred to in Article VI shall be established as follows: ■■■:''_; ; ''The President of the United States '.shall nominate two per- sons and the President of the Republic of Panama shall nominate two persons and they shall proceed to a decision; but in case of disagreement of the Commission (by reason of their being equally divided in conclusion) an umpire shall be appointed by the two Governments who shall render the decision. In the event of the death, absence, or incapacity of a Commissioner or Umpire, or of his omitting, declining or ceasing to act, his place shall be filled by the appointment of another person in the manner aboVe indi- cated. ■* All decisions by a majority, of the Commission or by the Umpire shall be final." ; . Since 1912 the scope of the work of the Commission has been largely determined by an Act of Congress of the United States, approved August 24, 1912, known as the Panama Canal Act, which so far as it relates to matters under consideration provides as follows; "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, sani- tation, 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." In accordance with the authority contained in the above-quoted provision the President of the United States issued an Executive Order under date of Decem- ber 5, 1012, declaring 'That all land and land under water within the limits of the Canal Zone are necessary for the construction, maintenance, operation, protection and sanitation of the Panama Canal." The same order 21 directed the Chairman of the Isthmian Canal Commis- sion "to take possession oh behalf of the United States, of all such land and land under water." . ,.The Congress oi the United States has also passed two other Acts which the American members, of the Com- mission have considered affected the work of the Com- mission. Section 2 of the Sundry Civil Appropriation Act,,approved March 13, 1915, -reads as follows: - "Sec. 2. No part of the money appropriated by this Act shall be used for payment of salaries or expenses of the Joint Land Commission, established under article fifteen of the treaty between the United States and the Republic of Panama, in adjudicating or settling any claim originating under any lease or contract for occupancy, made by tha Panama Railroad Company in the Canal Zone, or for the payment of. any awards made by said commission on account of any such claims." Section 2 of the Sundry; Civil Appropriation Act,, approved July 1, 1916, reads as follows: "Sec. 2. That the Joint Land Commission established under article fifteen of the treaty between the United States and. the Republic of Panama, proclaimed February twenty-sixth, nine- teen hundred and four, shall not have jurisdiction to adjudicate or settle any claim originating under any lease or contract for occupancy heretofore or hereafter made by the Panama Railroad Company of land or property owned by said Panama Railroad Company in the Canal Zone, and no part of the moneys appropri- ated by this or any other Act shall be used to pay such claims." So many different commissions have been organized under the treaty that it seems desirable for the benefit of both Governments to incorporate in this report a brief historical statement giving the names of the various commissioners and. the work accomplished by them. On January 31, 1905, a Commission consisting of Dr. Carlos A. Cooke, and the^ Hon. Federico Boyd of Panama, and Messrs. Thomas T. Gaff and C. A. L. Reed of the United States were appointed to -fix the value of four pieces of property taken over by the United States. By an award dated February 21, 1905. Domingo Diaz was allowed $4!, 790 for the property of Santa Rosa and Juan Vasquez. A valuation was also placed on the three other pieces of property without any hearing havirg been given, and later payment appears to have been made to Mrs. M. A. E. Delhonde, for her property of El Hatillo de Relieves, in the amount fixed in the award, viz: $3,050. 22 On May 26, 1905, a Commission of the same Pana- manian members, with Dr. H. R. Carter and Paymaster Eugene C.Tobey acting for the United States, was organized to give a hearing in and make final awards for the three pieces of property appraised in the award of February 21, 1915. * On May 27, 1905, an award was made in two of the claims, one for §9,000 in favor of Abundio Caselli and Francisco Alfredo Pellas, for the property "EJ Tivoli," and the other for $1,768 in favor of the Municipality of Panama for "La Huerta del Peinetero." The other claim, that of Mrs. Delhonde, was not considered as settlement had been made. On April 10, 1907, a Commission of which the Pana- manian members were the Hon. Ramon Arias F. and Dr. Samuel Lewis, and the American members Messrs. B. S. , Ambler and Montgomery Blair, with Dr. Gil Ponce as a substitute to act la cases in which Commis- sioner Arias was disqualified, met in the Administra- tion Building in the City of Panama. On April 11 both Messrs. Arias and Ponce resigned, and on April 18 the Hon. Constantino Arosemena was appointed as the other Panamanian member of the Commission. On May 11, 1907, two awards were made by this Commis- sion in favor of the Pacific Mail Steamship Company, one for $20,000 for the improvements on the island of Naos and the other for 824,000 for a one-half interest in the same island. Seven other claims were considered by this Commis- sion but no agreement was reached as to the amounts to be paid. Three of these claims were settled in 1908 by the Umpire, the Hon. Edwin Denby, who was ap- pointed to consider them. Award for $45,000 was made by the Umpire to Francis Schu be r for the estate of Juan Diez Caballero at Corozal, for $15,000 to Maria Concepcion Sosa for the property of Gavilan and Gavilancito, and $1,000 to Gabriel Duque for San Lazaro. - On June 8, 1908, the Commission of which Messrs. Edwin Denby and Everett C. Bumpus were the Ameri- can members, and Dr. Gil Ponce J., and Dr. Julio J. Fabrega, the Panamanian members, met in Panama. On August 8, 1908, by unanimous decision of this 23 Commission an award was made for 13 pieces of prop- erty, in the sum of $143,980. A list of the cases for which awards were made is included herein so that this report will contain a list of all claims considered by the Joint Commission up to the present time. -. Estate.. Hectares taken by the United States Claimants. Damages awarded. ' V 126 218.5 Undivided i of 42 406 1S3.5 102 243 576 162.5 190 72.5 74 Hurtado family, represented by N'arciso Garay. . Louisa Cerezo and heirs of Aniceto Cerezo $10,000 4,000 250 20,000 Tarwrnjlla Jean Gris and Ramon M. Valdez Heirs of Francisco Ardilla, heirs of Remigio, Du- tari Correa, Alfaro Hermanos, heirs of Carlos • Icaza Arosemena, damages for whole estate. 4,500 Bailomonoe CaUeBruja > 2.000 "2,480 5.760 Barro Colorado and Palenquilla... Unknown 1,625 1.900 725 740 Hacienda Andrade . Antonio Andrade " .... :. 90,000 On March 1,-1913, the next Commission, consisting of Doctors Leo. S. Rowe and Roland P. Falkner for the United States, and the Honorable Federico Boyd and Dr. Samuel Lewis representing the Republic of Panama, met in Panama to consider the many cases that had arisen through the order to depopulate the Canal Zone'. During the latter part of September Doctor Rowe re- signed and shortly thereafter Doctor Falkner also re- signed. This Commission submitted an interim report under date of September 23, 1913, in which were outlined some of the principles they had followed in deciding cases. Published with this report were a number of de- cisions that were rendered. The report shows that 1 ,253 cases were disposed of. Six hundred and two cases were dismissed, 22 cases were certified to the Umpire, while 629 awards for a total of $295,709.18 were made. The totalof theclaims disposed of amounted to$2, 226, 718. 53. The next Commission met in Ancon on May 25, 1914. It consisted of Hon. Levy M. Kagy and Hon. David Marks, representing the United States and the same Panamanian Commissioners who acted with Doctors Rowe and Falkner, their services having been k(pt continuous. Judge Marks, dying on July 17, 1914. little was accomplished. One hundred and three claims for $175,605.60 were disposed of; 98 of them being \84 dismissed -mainly because previous settlements had been made. Two awards for a total of $970 were made in hve claims for ",$22,101: In September, 1914, the Commission reorganized with Judge Nicholas. Cornet who was appointed in the place of Judge Marks. In October,' 1914, the Commission again moved its offices intp the National Palace in Panama. This Commission continued the work of. disposing of the claims until Septeriiber, 1915, when Dr. Samuel Lewis resigned. Five hundred and forty-nine claims amounting to §2,595,169.19 were disposed of; 481 being dismissed while 68 for $688,905.15 were covered bv awards for $161,090.66. During the latter half of March and the first part of April, 1915, the Commission with Dr. Jorge E. Boyd acting in place of the Hon. Federico Boyd, dismissed 12 claims for $28,522.60 on evidence, that direct settle- ments had been made. Jn addition 11 other claims for $145,759.45 were considered and the sum of $4,549 awarded to claimants in six awards. -On September 23, 1915, Dr. Ricardo J. Alfaro was appointed to succeed Mr. Lewis and for a time there- after the Hon. Ramon Arias F. acted temporarily -in place of the Hon Federico Boyd. One hundred and ninety-seven claims for $210,041.38 were disposed of by Commissioners Alfaro, Arias, Cornet, and Kagy. Of these, 187 for $188,402.18 were dismissed while awards in 10 claims for $22,439.20 were made in the sum of $2,350. .Commissioners Boyd, Alfaro, Cornet, and Kagy dis- posed of 63 claims for $84,377.60 prior to the resigna- tion of Judge Kagy November 29, 1915. Five awards for a total of $1,707.50 were made, covering 7 claims for $24,620. Fifty-six claims for $59,757.60 were dismissed. \ With the arrival of the Hon. Clement L. Bouve in April, 1916, who was appointed to succeed Judge Kagy, the Commission again began to actively dispose oi claims pending before it. Prior to JuJy, 1917, when the two American Commissioners, Judges Cornet and Bouve, severed their connection with the Commission, 1,250 claims for $4, 145,593. 17 were disposed of. One thousand 25 one hundred and fifty- two claims for $2,765,531.31 were dismissed; 14 claims were certified to the Umpire, while awards for $181,675.30 covering 98 claims asking for $1,380,061.86 were made. On November 27, 1917, the Commission reorganized with Hon. Federico Boyd and Dr. R. J. Alfaro repre- senting the Panamanian Government and Hon. Geo. A. Connolly and Burt New representing the United States. On November 12, 1918, Doctor Alfaro was succeeded by Dr. Julio J. Fabrega, continuing, however, to act in all cases in which Commissioner Fabrega was interested as an attorney. The Commission with Doctor Alfaro disposed of 96 claims for 86,100,316.28; 47 claims for. $953,548. 25 were dismissed, 14 claims for $2,884,876.26 wer£ certified to the Umpire and awards for a total of $220,952.80 were made in 25 claims asking for $2, 261, 891. 77. The Commission with Judge Fabrega as a member disposed of 53 claims for $1,937,956.04 prior to January 31, 1920. Of these 3-7 claims for $458,014.60 were dismissed, 8 claims for $1,431,677.80 were certified to the Umpire and awards for a total of $12,609.38 were made covering 8 claims asking for $48,263.64. In November, 1919, Commissioners Alfaro, Jorge A. Boyd, Connolly, and New made one award for $2,100.20 including interest amounting to $620.67 from December, 1912, and the same Commission with Doctor Fabrega in place of Doctor Alfaro dis- missed one claim for $50,000 and certified one for $3,600 to the Umpire. Judge Connolly resigned at the end of January, 1920. Mr. H. A. A. Smith succeeded him on February 2. Commissioners Boyd, Fabrega, New, and Smith dis- missed 4 claims for $239,574 for failure to prosecute, 18 claims asking for $45,841.65 because settlement had been made, and agreed to leave on the docket without consideration for the reasons hereinafter stated, 16 claims for SI 21,779 known as Panama Railroad lease- cases. The disposition of one other claim (the Playa de P4or claim for $357,040) is explained hereinafter in detail. 26 10 Commissioners, Boyd, Alfaro, New, and Smith dis- agreed in their conclusion relative to the liability of the United States in the the last case tried by the Commis- sion and certified the claim asking for $20,816.67 to the Umpire for decision. In addition to the work specified above, almost every Commission has taken action in other claims due to the number of claimants or the questions involved. . Admiral Victor M. Concas y -Patau was appointed Umpire in 1916 to decide cases in which the Commis- sion disagreed. From June to August, 1916 he made 10 awards for $216,800 in claims for $839,224.03, and dis- missed four claims tor $8,240. He also decided two questions certified to him by the Commission as to the liability of the United States arising out of the can- cellation of Isthmian Canal Commission leases under certain specific conditions. Hon. Manuel Walls y Merino was appointed Umpire to succeed Admiral Concas. He has made 17 awards for $468,667.47 including interest incorporated in the awards, amounting to $26,972.57, in 20 claims asking for $4,453,184.65. He dismissed two claims for $177,500 and "refrained from deciding" one claim for $100,000. The following 12 claims are now pending before the Umpire: 27 11 u - C rt a i rt c > - * _o rt • — 2 3i i ■ V 3 O CJ c rt. ^ O rt — rt 6 -1 o .- .-■'.- ,• • : — '■j i _>» e : Rt! >> e >» ■z ; | *■» o V- CJ w — 4_i o ■ v) • — . — . . . . c; • — — i 3 n 3.S.0 ~ ^33 — -° > -z -=j .2 c "^ 3.2 rt "rt n a.~ .2 ^nn JJ ^-:>>>>:--J >> c ££ ^'zzz^i xzi o >> >» >, >s c UU UU c o . ^- — klj=^ <<<<<< <-" <-j 1 o 1 CQCG rifflfl3«ass=5* 22^: 1 C\ Cn O^NOOC>C? o o> O o .ooooooc>:> O O ' -2 t^*Z f X M- (N O r^ VJ r-ToC " o c4 — *~i •— CM C-I CNM rvj r>j i >>>' O >v -z o 1 ^ 1 d PC iO -+ r^. © *— r- — o O ^i O- CN r*5 r*5 r+) cm cm — ■ re i/-, ~i fN »— 1 * t* «* -r-*-f+-f-r-f--f -t ■<* c o ooocoo*-o C2 O £ o o OOO'OOOOC: O 3 — 1 £ o c © O © »<-> 'O S : O © O IC CM 'rt o o COXOlNC-C ID t^ IO o c o © © — — exc rq -+ er> . 1 *■' t- o rorc-«-XCC X, c •o rg -f CM CM O CM ^ r-* i o «? • r^ •— C*» — O E * < 1 >. : 2 :| . i . i c ! • • N if; • • Ji iJ ■ ,y 3 ;j — •- --J "C ~ ~ ^ N "^ ^. • 1 ^j o< ~- "^ B! A 5! _ •? c c: E 3 ifcfHll rt — - Si •_ I =2 = 5 <. < w - C £_ x O O C — >s C .•5 5 O tr. _rt 1 . 1 ° 1 £ <^i c-» »CCt^OCO\r>iox r^ CC t^ cm -t- » M O C* Cv X - o tD ir, 1 ! o O i^ r^.r—t-^r~.r^C^C:^- rsi rsi I , -* o 1 c i ! ° i 28 12 To summarize briefly: Since March 1, 1913, claims numbered 1 to 3,598 for $20,660,371.19 have been filed with the Commission. In 879 claims asking tor Sll,- 502,943.66, 213 awards- for Sl,568, 581,49 have been made. In addition awards for $304,588 were made by prior Commissions, making a total amount awarded of §1,873,169.49. Two thousand twenty-nine claims for $3,719,930.95 were dismissed on evidence that direct settlement had been made. Claims for $3,263,- 063.13 were dismissed for other reasons, such as lack of jurisdiction, lack of evidence, or because of duplica- tion, or on claimant's motion. The disposition of 17 claims for $478,819 is explained in detail hereinafter, while 12 claims for $1,075,352.17 are pending before the Umpire. Of 319 claims for $620,262.28 dismissed on account of failure to prosecute same in accordance with the default rule adopted by instructions of the two Governments, certain ones seem to require some explanation. On the dav that the claims of Jose H. Stilson, docket No's. 3062 (amount $40,300) and 3281 (amount $97,620) were set for trial, Mr. C. P. Fairman, appearing as counsel for Mr. Stilson, stated in public session before the Commission that he and his client declined to fur- ther prosecute these claims before the Commission. On the same day he filed a document which he entitled ''Protest, Notice, and Demand on behalf of the Owner of Real Property" in which document he notified the Commission of his refusal to submit the condemnation of the property involved in these claims or the value thereof to the jurisdiction of the Commission, and requested that the Commission desist and refrain from further action or proceedings respecting the con- demnation and appraisal of the lands covered by these two claims. By unanimous vote of the members of the Commission a rule of default was entered against Mr. Stilson and inasmuch as claimant failed to appear and show good and sufficient cause for setting aside the default within the 60-day period in the rule, the default was made absolute and the claims dismissed. By agreement of counsel on both sides the claims of the Playa de Plor Land and Development Company, 29 13 docket No. 2900, (§357,040) and of Eufracia C. de Villalobos, et at, docket No. 3064 (§89,154) wereconsoli- dated. When they were called for trial on November 17, 1919, Mr. -C. P. Fairman representing claimants in both cases, made a similar statement to that mentioned above and filed a similar document. Rule of default in both claims was accordingly entered against both claimants. At the expiration of the 60-day period fixed in the rule, the period of default in the Villalobos claim was extended to February 24, to which date an extension had been granted in the Rlaya de Flor claim. However, on February 25, 1920, there having been no appearance on the part of claimants in the Villalobos claim nor any showing made by them, this case was dismissed by unanimous- vote of the Commission. On November 17, 1919, when the Playa de Flor Land and Development Company claim for. §357,040 (docket No. 2900) came on for trial, the attorney of record, Mr. C. P. Fairman, stated to the Commission in public session, and also in a written document, that he refused to submit the case to the jurisdiction of the Commission. The American members of the Commis- sion voted to dismiss the case at once, but inasmuch as the Panamanian members declined to dismiss the claim, a rule of default was entered against claimants. At the expiration of the 60-day period fixed in the rule, with the consent of the two Governments, an extension of the period was granted to February 24. Just before the close of business on February 24, the following motion was filed by Dr. Samuel Lewis: Come now Perry-Popham, one of the parties at interest in the above-entitled claim and respectfully move the Commission to continue the hearing of this case or of any matters connected therewith and set it for hearing on the 15th of March, 1920, on which date the said petitioner together with counsel will appear before the Commission for the purpose of said hearing. The undersigned hereby represents to the Honorable Commis- sion that the above-named claimants have not, for reasons beyond their control, been in a position to appear personally before the Commission and present their case, which they are ready and willing to do on the 15th of March, 1920, as the under- signed has been informed and believes. 30 14 The Panamanian members of the Commission voted to grant the motion upon the showing made stating their reasons therefor as follows: 1..; Claimants have shown sufficient cause for not appearing on the day set for the trial of this claim. 2. The attorney for the claimants without their knowledge refused to submit the case to' the jurisdiction of the Commission. ' 3. In spite of their having no notice of the conduct of their attorney claimants have made every possible effort to obtain a hearing before the Commission. 4. Claimants have presented a motion through Attorney Samuel Lewis, within the time fixed, requesting the Commission to set aside the default entered against them. The American members of the Commission voted to deny the motion and also voted against further extend- ing the period of default for the following reasons: 1. Said motion does not ask that the default be set aside. 2. There is no claimant in said claim by the name of Perry- Popham as mentioned in the motion. 3. The reason assigned as to why claimants have failed to ap- pear and prosecute said claim merely states a conclusion and does not state facts sufficient to show cause for setting aside the default. 4. The motion does not show that the default was entered through any mistake, surprise, inadvertence or excusable neglect on the part of claimants. 5. The motion does not state any fact or facts showing a good and sufficient cause for setting aside the default. 6. The facts in the case affirmatively show that all the claim- ants were given legal notice of the date the claim was set for trial and given every opportunity to come before the Commission and present their case, but they failed, neglected, and absolutely refused to prosecute their claim. On February 26 Mr. Lewis filed another motion requesting that all matters and interest relating to the Playa de Flor Land and Development Company case be left in suspense until the Umpire of the Joint Com- mission passed upon the issues by reason of the fact that the members of the Commission "are equally divided in conclusion." He further represented that "he did not apply for the setting aside of the default but simply made a motion to continue thehearingof any matters connected with the above-entitled case until the 15th of March, 1920." The American members voted to deny this motion while the Panamanian members voted to grant the request. 31 15' The position of the Panamanian members as shown by the minutes, is as follows: "The Panamanian members in refusing to adopt the proposition made by Commissioner New that the provisional rule of default be not set aside, proposed to have the Commission set aside the said provisional rule of default and to set the claim for public hearing on March 15, as requested by the claimants. "On this point, therefore, the American members and the Panamanian members are not in accord, and consequently, this is a matter, as in preceding matters, in accordance with Article XV of the Canal treaty which passes to the Umpire for decision ; therefore, the Panamanian members move that the said motion presented on the 28th of February by Dr. Samuel Lewis on behalf of the claimants, be determined by the Umpire." The position of the American members upon this last motion, as shown by the minutes, is as follows: "On the 25th day of February the Panamanian members voted to set aside the default upon the showing made, and the American members voted that the default should not be set aside; the default, therefore, became absolute. "On February 26, S. Lewis, attorney for "Perry and Popham" two of said claimants, filed the motion now under consideration. The motion alleged that the motion filed on February 24, 1920, was not intended as, nor was it. a motion to set aside the default but that it was merely a motion to continue the hearing of this' case or of any matters connected therewith. "Said motion further alleged that on account of the Members of the Commission being equally divided in the vote on said motion that the question of the continuance of the trial of the claim, and all matters connected therewith, be certified to the Honorable Umpire for decision. "There was no allegation in this motion assigning any reason why claimants had failed, neglected, and refused to file amotion or show cause on or before February 24, 1920, for the setting aside the default. "On account of claimants having failed, neglected, and refused to appear on or before February 24, 1920, and show good and sufficient cause for setting aside the default, the American mem- bers voted that said default be not set aside. The American members voted that the default period should not be further extended for the reason that ample opportunity had time and again been given claimants to appear before the Commission on or before February 24, 1920, and show cause for setting aside the default. They also refused to vote for a further extension of the default period for the reason ihat the Secretary of State of the United States had not given his consent to extend the default period beyond February 24, 1920. They also refused to extend the default period for the reason that the Commission has for 32 16 the past five months made every possible effort to bring this claim to trial. During said time many of the claimants have absolutely refused, and still refuse, to try said claim while the other claimants have failed, neglected, and purposely delayed the trial thereof. There is no showing nor attempt to show, diligence on the part of claimants. The facts in this case disclosed by the record, show that claimants have, for some reason unknown to us, thrown every obstacle they could in the way of the trial of this claim, and by so doing have delayed the work of the Com- mission which has prevented the Commission from closing its business at an earlier date." The only cases remaining on the docket are sixteen claims, generally known as the Panama Railroad leas'e claims. The authority of the Commission to consider these claims was the subject, in the opinion of the American members of the Commission, of two Acts of Congress, hereinbefore quoted. The American members have always taken the position that they were precluded by these two Acts from considering these claims, which arose out of the cancellation by the Panama Railroad Company of leases for land made by that company within the Canal Zone. The following is a list of these claims: Docket No Claimant. Amount claimed. 1623 1708 1063 1964 2*4S 284!) 2883 2946 2967 2969 2970 29S.) 3045 3255 3282 3283 J. H. Stilson Mrs. F!orel!a Peters. Eliaondo Herrera.. . . Elisondo Herrera F. C florbrugerCo.. F. C HerbrugerCo . J. P. Barrar.co Frank Ullrich, Jr. . . . Stilton and Ullrich..-. J. H. Stilson Stileon ami Lawrence Ferno Shall James Dalev Empire Athletic Association. J. H. Stilson J. H. Stilsou cr.no Shall SI, 280. 00 3.351.00 2.000.00 500.00 5.250.00 2.2.50.00 5,500.00 3,300.00 7,980.00 10,992.00 3,300.00 876.00 200.00 5.000.00 50.000.00 20.000.00 $121,779.00 Except for rather extended periods during which one or more Commissioners were lacking and except for four recess periods of 60 days each during the years 1916, 1917, 1918, and 1919, a Commission has been in session ever since an organization was effected on March 1, 1913, and hearing or ready to hear cases which might 33 17 be properly presentecTto it, and to dispose of the claims accumulating under the depopulation order following the Act of Congress of August 24, 1912. One member of the present Commission was a mem- ber of the first Commission of 1905. Except for a few months' absence, the Hon. Federico Boyd has also served continuously as a member of the Commission since March 1, 1913. The following is a list of the Commissioners and the periods of time during which they have served: APPOINTED BY PRESIDENT OF PANAMA. * FEDERICO BOYD. March 1, 1913, to March 15, 1915. April 20, 1915, to September 22, 1915.. November 1, 1915, to November 5, 1919. November 24, 1919, to finis. SAMUEL LEWIS. March 1, 1913, to September 14, 1915. JORGE E. BOYD. March 15, 1915, to April 19, 1915. November 6, 1919, to November 23, 1919. R. J. ALFARO. September 23, 1915, to November 11, 1918 and in -cases considered thereafter in which Commissioner Fabrega was interested as an attorney. RAMON ARIAS F. September 23, 1915, to October 31, 1915. JULIO J. FABREGA. November 11, 1918, to finis. 34 18 APPOINTED BY PRESIDENT OF UNITED STATES. LEO S ROWE. : March 1, 1913, to September 23, 1913. ROLAND P. FALKNER. March 1, 1913, to December 17, 1913. LEVI M. KAGY. _ May 25, 1914, to November 29, 1915. DAVID MARKS. May 25, 1914, to July 17, 1914. NICHOLAS CORNET. September 18, 1914, to June 30, 1917. C. L. BOUVE. . , April 7, 1916, to June 30, 1917. GEORGE A. CONNOLLY. November 27, 1917, to January 31, 1920. BURT NEW. November 27, 1917, to finis. H. A. A. SMITH. February 2, 1920, to finis. With the enlargement of the work of the Commission due to clearing the Canal Zone of all private property owners, it became necessary for the Commission to adopt definite rules of procedure so that its work might be carried to conclusion. As the treaty was silent on the subject, the two Governments have at times given consideration to the methods that should be followed by the Commission to enable it to accomplish the pur- poses of its formation, and certain instructions have been issued by the Governments concerned, which were thereupon adopted by the Commission for its guidance. The various rules and instructions are included in Appendix A, attached hereto. 35 19 'All awards, opinions, and rules of dismissal have been published in The Panama Canal Record and thus are readily available. . Attached to this report is a list of all the claims filed with the Commission since March 1, 1913, prepared by the Secretary thereof, Miss Genella Bliss, and her assistant, Mr. John J. Dudak, showing tha docket number of each claim, the amount claimed, the amount awarded if an award was made and the cause of dis- missal if the claim was dismissed as well as the ini- tials of the Commissioners or the name of the Umpire acting on the claim. This statement is designated as Appendix B. All documents, records, transcripts, the complete files in claims numbered from 1 to 3598, inclusive, and all other property of the Commission, except the records and files in the claims pending before the Umpire which wilt be left in the office for his use, will be turned over by. the secretary of the Commission to the American Minister to Panama, just as soon as the secretary completes the check she is making of the statement to be attached to this report. In closing this report we wish to thank the officials of the Republic of Panama for granting the use of the commodious offices in the National Palace. Respectfully submitted, Federico~ Boyd, Burt New, H. A. A. Smith, Julio J. Fabrega, Commissioners. 37 APPENDIX A. Joint Commission Rules of Procedure for Filing of Claims and Conduct of Hearings, etc., 1913 to_1920: Adopted March 18, 1913. I. All persons having title or claim to, or interest in lands, or lands under water, situated in any part of the Canal Zone, except in the exempted area, or who have suffered damages of any kind by reason of the grants contained in the Treaty, or by reason of the operations of the United States, its agents or employees, or by reason of the construction, maintenance, operation, sanita- tion, or protection of the said Canal, shall file with the Joint Land Commission, a statement of the entire extent of their property rights and interests. Such statement should include the name, residence, and post-office address of the claimant, the amount of the claim, the location and extent of the property, indicated wherever practicable by maps or drawings, the uses to which such property is put and a description of the improvements which have been made thereon, and should be accompanied by a statement of the title and rights of the claimant thereto, supported by all existing documentary proofs of title. Statements referring to claims of ownership to land or land under water, together with accompanying documents should be filed in jour copies, but of the legal documents submitted as proofs, one copy only need be attested. All other claims presented to the Commission should be filed in at least two copies. All claims should be submitted on a form supplied by the Com- mission. Such statements of claim and all other forms required by the Com- mission can be obtained on and after March 14, 1913, from the secretary Of the Commission, at the several police stations in the Canal Zone, or at the office of the secretary of the municipal council of the City of Panama. II. The statements above described to be presented by all claimants to pri- vate property, should be filed with the secretary of the Joint Land Commis- sion, National Palace, Panama, with as little delay as possible. Claimants to land located in the area between Gatun and Gamboa should file their statements not later than March 31, 1913, and claimants to land located in the remainder of the Canal Zone should file their statements not later than April 15, 1913. III. Failure on the part of claimants to file the required statement will not preclude the Joint Land Commission from acting upon all cases properly com- ing before it, without the cooperation of the persons most directly interested. IV. After an examination of the papers filed with the Joint I^and Com- mission, an opportunity will be given to all claimants to present further evi- dence in public hearings. The Joint Land Commission reserves the right to call upon claimants for further information and for documents supplementary to those filed with the original statement. V. The Commission will begin hearings upon claims which are ready for adjudication, relating to any lands, in the district between Gamboa and Gatun, excepting townsites, on Monday, March 17, 1913,' in the Assembly Hall, National Palace, Panama. Due notice of further hearings will be given from time to time. VI. Proceedings before the Commission may be instituted by the claimant in person, or through his or her attorney in fact or agent. If the claimant is represented by an attorney in fact or agent, a written declaration designating the person to represent the claimant must be filed with the secretary of tfu 21 38 22 Joint Land Commission. Claimants presenting such a declaration in person should sign the same in the presence of the secretary. In case such declarations are not presented in person, the signature of the claimant should be attested in the Republic of Panama, by a municipal official, or in the Canal Zone by the agent in charge of any police station. Forms for the designation of attorneys or agents can be obtained from the secretary of the Commission, and within the Canal Zone at the several police stations, and at the office of the secretary of the municipal council of the City of Panama. VII. All documents required by the Commission, as well as proceedings before the Commission, may be in either Spanish or English. VIII. With reference to the admissioility of evidence, the Commission will follow the procedure of a commission of inquiry rather than the technical rules of evidence. IX. If the claimant be an executor, administrator, guardian, or repre- sentative appointed by a judicial tribunal, a duly authenticated copy of the record of the appointment must be filed with the secretary of the Commission. X. The Commission reserves the right to require that motions submitted be put in writing. " _ XI. All expenses incident to the presentation of witnesses shall be paid by the party at whose motion the witnesses appear. XII. Upon the filing of claims, notice thereof will be served on the counsel for the United States. The Commission will, in each case, fix a time for the filing of an answer, and will then proceed to fix a time for hearing. Notice of such hearing will be served on the claimant, or his representative, and on counsel for the United States. Such notice shall be signed by the secretary of the Commission and shall recite the time when such cause shall be called for hearing and be served upon the parties affected thereby by sending the same through the mail or otherwise, as the Commission shall determine. Such notice so sent shall be deemed sufficient notice to said parties, unless it shall later appear that it has not as a fact been received; and, in that event, further notice may be given, if it appears necessary to the Commission. XIII. At the time fixed for the hearing (or at a later date, if so determined by the Commission; any party possessing an interest in the. land or improve- ments thereon may appear and enter a plea in writing, or orally, to be set forth in the record, stating the nature and extent of interest, the amount of damages, and any other matter which the party may desire to have considered in the premises. If more than one party claiming damages shall appear, they may plead jointly or separately- as they may elect. XIV. The counsel for the United States shall, at the time of the entry of such pleadings provided for in Rule XIII, or later, if the Commission so determine, file an answer in writing or verbally, to be entered upon the record, joining issue in the premises. A copy of such answer shall be served upon the claimant or upon the attorney in fact, or agent. XV. In all cases in which the claimant, or his representative, and counsel for the United States are agreed on all questions of title, area, and boundaries, a stated case may be presented to the Commission, which will enable the Com- mission immediately to proceed to a hearing of the case and the valuation of the propert\ . XVI. In all public hearings, as preliminary, the claimant, or his repre- sentative, will make a brief but substantial statement of the claim, in which he will embrace the material facts which, in his opinion, are established by the evidence. After the statement on behalf of the claimant, counsel for the Government of the United States, will, in like manner make a statement of the Government's position. Witnesses will then be called by the claimant for direct ;m\(\ cross examination, to be followed by witnesses for the Govern- ment of the United States for direct and cross examination. The claimant, or his representative, may then call witnesses in rebuttal, but the Commission reserves the right to fix the time allotted to such rebuttal. At the conclusion of the testimony, the claimant, or his representative, and counsel for the Government of the United States will proceed to argue the case in detail. Arguments will be limited to one-half hour on a side. In all 39 23 cases, however, 20 minutes will be allotted to counsel for the claimant for final summing up. This limit of time may be extended by the Commission. When additional time is necessary on either side, application therefor must be made in writing before the hearing begins. XVII. If a claimant fails to appear after due notice has been given, the Commission reserves the right to consider such evidence as may be available. The claimant may, however, appear at any time prior to the final award. XVIII. If the Commission, or a majority thereof, shall agree upon a decision in any cause heard before it, it shall make the same a part of the record of the proceedings and send a certified copy of the same to the Government of the United States, and to the Government of the Republic of Panama, and any party affected by such decision shall have a right to take a copy of the same. XIX. In the event of a disagreement of the Commission, such disagreement shall be certified to and forwarded to both of said Governments. XX. Subpoenas, at the request of counsel for the United States, or of any claimant or his representative, shall be issued by the secretary of the Joint Commission, which said subpoenas may be served by the police of either Government. XXI. These rules may be repealed or amended by the Commission at any time hereafter as it may determine. The Commission furthermore reserves the right to modify the application of these rules to any particular case if, in the opinion of the Commission, the interests of j ustice are promoted thereby. Adopted March 18, 1913. ; . - The Joint Land Commission will not take jurisdiction of claims arising from leases or licenses of the Isthmian Canal Commission or the Panama Railroad Company, which leases or licenses provide for the taking over of such proper- ties for Canal or railroad purposes upon notice to tenant or licensee; this being a matter of agreement between the parties and governed by local law. Adopted March 18, 1913. In case of disputes between private land owners as to the limits of their property, the Com'mission will, in a proper case, make a separate award for the disputed territory, depositing the amount of such award with a court of competent jurisdiction and leaving to such tribunal the adjudication of the rights of the several claimants. The Commission will, however, undertake to .determine questions of title as between the United States and private owners. If, in the course of the adjudication of a claim, an adverse claimant to title appear, the Commission will deposit any award that may be made for such land with a court of competent jurisdiction, and leave the adjudication of the rights of adverse claimants to such tribunal. If, however, a lessee of private property present an adverse claim for the value of improvements, the Commission will make award to the holder of title for the value of the land and a separate award for the value of improvements. The latter will be deposited with a court of competent jurisdiction, where the respective claims of lessor and lessee will be adjudicated. Adopted March 24, 1913. In determining the value of lands taken by the United States, the Commis- sion must be governed by the terms of Article VI, which provide: "The appraisal of said private lands and private property and the assess- ment of damages to them shall be based upon their value before the date pf this convention." In the application of the Treaty, the Commission will follow the principles of the Commission of 1008, which are stated in their report to have been the following: 40 24 "To hear all evidence presented bearing upon the fair value of the property to be expropriated by the United States, and upon damages thereto; to con- sider especially, as elements of such valuation, the extent and character of the property affected, its location, for what it is adapted or could be adapted within a reasonable time; as well as to take into account other pertinent considerations and, in determining the basis upon which damages are to be assessed, to eliminate from consideration the effect which the building of the Canal may have had upon the value of such estates." Adopted June 3, 1913. The Commission takes judicial notice of all official records of the Govern- ment of the United States and of the Government of Panama pertaining to the inquiries conducted by the Commission. The Commission will at all times receive any papers or documents submitted by claimants or counsel relating to or tending to controvert the content of such official records. Adopted June 3, 1913. In the matter of claims of corporations, it is the purpose of the Commis- sion to make the award to such corporations, allowing persons who have an interest or who own equities therein, to assert such interest or equities before a court of competent jurisdiction. Adopted June 11, 1913. . Where the existence of a release is pleaded in bar of a claim, the Commission will of its own motion make an examination of the releases filed in the office of the Examiner of Accounts and Disbursing Officer, and of such official records the Commission will take judicial notice. Where a verbal agreement of settle- ment is pleaded the claim will remain before the Commission until the Com- mission receive official notice that payment has been made by the Govern- ment in settlement of such claim. • • ' Adopted June 17, 1913. Settlers or occupiers on public lands in the Canal Zone, who went upon such lands prior to the Treaty of 1903 are entitled to compensation, and the fact that such persons subsequently accepted licenses from the Government of the United States does not extinguish the rights which accrued prior to the treaty. . _ Adopted July 28, 1913. In view of the provision of the treaty that "all the decisions by a majority of the Commission or by the Umpire shall be final" the Commission is without power to receive any protests against its awards. • Adopted June 9, 1914. - When a case is set for hearing, and the claimant or the Government, or defendant is not ready for trial at the time the case is set for hearing, the claim- ant or the Government or their respective attorneys desiring that the cause be continued or reset, shall file an affidavit in writing stating the reasons why such party is not ready for trial, and, if the affidavit is found sufficient by the Commission, then the case shall be taken off the setting and shall be put on the call docket, to be called at the pleasure of the Commission after all theother cases have been disposed of. The affidavit shall contain these words: /'Thij affidavit is made in good faith and not for the purpose of delay, but that justice mav be done." 41 25 ;.- Rules entered of record June 27, 1914, after adoption by the Governments of the United States of America and the Republic of Panama: 1. The jurisdiction of the Commission shall be invoked by petition of the claimant, verified by his oath, or that of his agent, made before some officer authorized to administer oaths in the United States, the Republic of Panama or the Canal Zone. 2. The Commission may designate two of its members, one from each coun- try, to make inspections and to take evidence; but the decision shall be based on all the evidence in thecase and shall be made only by the Commission; and in every case the Commission shall, upon the request of either party, grant a full and free hearing. - .3. Claims not presented to the Commission within six calendar months after it resumes its sessions at Panama shall be barred, unless the Commission shall for exceptional reasons extend the time three months in a particular case. Adopted August 18, 1914. The time fixed by the Government of the United States and the Republic of Panama within which claims may be filed with the Joint Land Commission for damages-which have accrued to any person or persons, on account of the construction of the Panama Canal and under the treaty between the United States and the Republic of Panama, under Rule Xo. 3 lately adopted and as amended by the two Governments will expire on December 27, 1914. Adopted October 19, 1914. All pleadings, motions, and affidavits, for continuance shall be filed in writing by the parties in interest, or their attorneys, and by the attorneys repre- senting the United States Government, in triplicate. The secretary shall immediately upon receipt of such motions, pleadings, or affidavits, in tripli- cate, in accordance with this rule, mail to the attorney, or party of the opposing side, one copy thereof. The motion, pleading, or affidavit shall then stand for final disposition by the Commission at any time after five days from the date of filing, unless both sides agree to its disposition at an earlier date. Adopted October 24, 1914. The trial docket for claims to be heard by the Joint Land Commission shall be made up of claims in accordance with their numerical order on the docket and their date of filing, regardless of their location on the Canal Zone. Causes shall be set on each Monday afternoon for the following week and the Secretary shall immediately cause notices of the settings to be published in the Star cV Herald, the Panama Morning Journal, The Panama Canal Record, and the Gaceta Oficial, and shall also mail or deliver copies of the setting to the respective attorneys interested therein. All rules or parts of rules in conflict with this rule, are hereby repealed annulled, and set aside. Adoptee March 22, 1915. The Commission will not proceed to the hearing of claim- in which there are adverse private claimants. In all ca^es in which there are adverse private claimants to the same property, they should either adjust thfir differences by compromise or settle them by adjudication before urging their claims before the Commission. 42 26 Adopted October 2, 1915. I. The claimant who first filed his claim with the Commission or whose claint has the lowest number on the docket will be treated primarily as the real owner of the claim unless an adverse claimant proves to have a bona fide claim to the whole or some part of the property taken for Canal purposes in conformity with the provisions of the treaty of November 18. 1903. II. All persons having a claim in conflict with the rights asserted by previous claimants shall present evidence within a term to be fixed in each case by the Commission in order to show that such conflicting rights are in course of being decided by a competent tribunal of the Canal Zone or by arbitrators or by direct amicable settlement. III. The evidence required by the Commission for the above purpose shall be a certified copy of the complaint or judicial proceedings brought by the second claimant against theclaimant who has the lowest number on the docket, or a copy of the act whereby the case was submitted to arbitration, or a showing that an amicable settlement will be reached within a reasonable time. IV. If, within the term fixed by the Commission, no evidence is produced to show that proceedings have been instituted in order to have the controversy properly decided or settled as above set forth, the Commission shall direct that the claim first filed be heard and final decision shall be rendered on its merits. - V. The preceding rule is set down without prejudice to the right of private individuals or corporations to institute whatever proceedings may be allowed by law in order to recover, from parties in whose favor any award has been rendered, such moneys as may have been paid them by the United States according to the award as a compensation for land or property taken for Canal purposes and belonging to such private individuals or corporations. Rules relative to the continuance or dismissal of cases, adopted April 13, 1916, after approval by both Governments: . It is ordered that when a case is set for hearing, and the claimant is not ready for trial when his case is called and the claimant or his attorneys desire that the cause be continued or reset, he shall file an affidavit in writing, stating the reasons why such party is not ready for trial, and, if the affidavit is found sufficient by the Commission the case shall be put on the call docket to be called- at the pleasure of the Commission, or placed at the foot of the docket to be called after all other cases have been disposed of. If the affidavit is not considered sufficient by a majority of the Commission to entitle the claimant to a continuance, or in case no affidavit for a continu- ance is filed, a rule of default shall be entered against the claimant. Upon the entry of such rule of default (at the end of each month) notice there- of shall be given by four successive publications, one each week, in the English and Spanish languages in newspapers of general circulation in the Republic of Panama, notifying such claimants to appear in person or by attorney, within 60 days from the first of said publications and show good and sufficient cause why such- default should be set aside, and take active steps to prosecute their claims, and failing to so appear within 60 days from said first publication their claims will be considered as having been either settled or abandoned and the same will be dismissed and forever barred. Adopted April 18, 1916. All oral arguments of claims and other matters coming before the Joint Com- mission appointed under Articles VI and XV of the Treaty between the United States of America and the Republic of Panama, signed November 18, 1903. for the adjudication and settlement of damages to private property caused by the construction, operation, sanitation, etc., of the Panama Canal, will be limited to one hour on a side, including the opening and closing arguments. When additional time is desired by counsel for either side in a particular case, a request therefor must be made to the Commission before the argument ii 43 27 begun, counsel stating clearly the grounds on which the request is based. On a proper showing being made, the Commission may, within its discretion, extend the original time limit. Any rules conflicting with the above are hereby repealed and annulled. Adopted May 4, 1916. Disagreements shall be certified to the "Umpire appointed under the treaty," instead of to the "Governments, parties to the treaty." Before the certifica- tion of any case to the Umpire, the conclusions reached by the commissioners shall be stated in writing and shall be supported by written opinions, all of which shall form a part of the record certified to the Umpire. Adopted June 30, 1916. When the Commission shall certify a case to the Umpire under the pertinent provisions of the Treaty of 1903 between the United States and Panama the fact of such certification shall be announced in open court, and the Secretary of the Commission shall forthwith notify the parties interested through their attorneys that such certification has been perfected. Counsel shall be allowed ten days from the date of such notification to file with the Commission such brief or written argument as they may see fit. which brief or written argument shall be attached to the record and form a part thereof when the papers in the cam.' are submitted to the consideration of the Umpire. 45 APPENDIX "B." Statement of Claims Filed with the Joint Commission Showing Disposition Thereof. Symbols indicating Commissioners acting on claims. A =Ricardo J. Alfaro. Ar = Ramon Arias F. B =Federico Boyd. Bel = Jorge E. Boyd. Bv = Clement L. Bouve. C = Nicholas Cornet. Cv = GeorgeA. Connolly. F = Julio J. Fabreca. Fk = Roland P. Falkner. K =Levi M. Kagy. L = SamueL Lewis. M = David Marks. N =Burt New. R =LeoS. Rowt.. S = H. A. A. 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Direct settlement Direct settlement Direct settlement Direct settlement Direct settlement Direct settlement Sot "S o c di55 a 3 o ■ 1 [ si 5S »OOf t- c>i o r~\ en :o • »e «5 O Ct 1(5 • »<5 Oi — O ~ 3000SJI0330S003 -o a $185.00 75.00 ■1,000.00 400.00 2,000.00 470.00 700.00 40.00 325.00 200.00 172.00 500.00 70.00 ISO. 00 500.00 25 00 4S.50 1,000.00 500.00 500.00 300.00 155.00 55.00 20 00 1,000.00 50.00 1,500.00 55.00 250.00 35.00 20.00 30.00 10.00 25. .00 400.00 70 00 25.00 45.00 105.00 25 00 100.00 75.00 450.00 200.00 C Adeline Thoinp.'ion Benjamin Thompson Robert Thompson ■. James Thorpe Marie Tillman Diego Tinoco and Guillcrmina Dicz do Arias. Hri"uln Torres . E-i 5 L. 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BOUNDARIES ANALYSIS TREATILS ANf) AGREEMENTS PAGE 1. Provisional Boundary Agreement — Panama 1904 ....... 397 3. Boundary Convention — Panama 1914 401 5. Colon Corridor and Certain Other Corridors — Panama 1950 .... 411 Other agreements affecting boundaries. In addition to those set out below, under this heading "Boundaries", the following, all set out elsewhere in this Appendbc, contain provisions affecting or relating to boundaries: 1. Convention for the Construction of a Ship Canal, Panama, Nov. 18, 1903. See App. Ill, Canal Construction and Rights. 2- General Treaty of Friendship and Cooperation, Panama, March 2," 1936. See App. IX, General Relations. 3. Treaty of Mutual Understanding and Cooperation, Panama, January 25, 1955. See App. IX, General Relations. See, also, note under section 1 of Title 2, Canal Zone Code. 1. Panama — 1904 PROVISIONAL BOUNDARY AGREEMENT 1 (Davis — Arias Agreement) INFORMAL PROVISIONAL DELIMITATION OF THE BOUNDARIES OF THE CANAL ZONE (See 1904 Ann. Rept. 78 and 91-93) Signed at Panama June 15, 1904 (Senate Doc. No. 401, 59th Cong., 2d Sess., Vol. Ill, p. 2300) SECTIONS 1. Limits of Canal Zone; provisional 4. Special agreements respecting de- acceptance, limitation of auxiliary lands or 2. Limits of city and harbor of waters. Panama; provisional acceptance. 5. Employment of Panamanian citi- 3. Limits and harbor of Colon; pro- zens resident in Republic. visional acceptance. l§ 1] Whereas, By the terms and provisions of Article 11 of the Convention for the Construction of an Jnteroceanie Canal between the United States of America and Ihe Republic of Panama, signed ^his agreement «uas superseded by the Boundary Convention of Septem- ber 2, 1914. See § 31 et seq., post. See, also, note under section 1 of Title 2, Canal Zone Code. 397 24-681 O - 78 - 9 126 App. II [§ 1] BOUNDARIES by the representatives of the two nations on November 18, 1903% the ratifications of which were exchanged at Washington on the 26th day of February, 1904, the United States acquired the right of use, occupation, and perpetual control, from and after the said 26th day of February, 1904, in and over the Canal Zone and other lands, waters and islands named in said Article II of the Convention aforesaid, and Whereas, It has not yet been, and is not now, practicable to make a complete, definite, and exact location of the precise boundaries of all the territory ceded to the United States b y the terms and provisions of said Article II of said Convention, and Whereas, The successful completion of the work of construction of the Interoceanic Canal across the Isthmus of Panama is of transcendent importance to the United States, to the Republic of Panama, and to the people of the world, and Whereas, In order that said work of construction of said Inter- oceanic Canal may be systematically prosecuted, and in order that a Government for the Canal Zone created by the terms and pro- visions of said Article II of said Convention may be successfully organized and carried forward, it is necessary that the extent and boundaries of the ^territory ceded to the Government of the United States by the Government of the Republic of Panama under the terms and provisions of said Convention shall be provisionally determined and agreed upon, Now Therefore, General George W. Davis, Governor of the Panama Canal Zone, acting for and on behalf of the Government of the said Zone, and Senor Don Tomas Arias, Secretary of State of the Republic of Panama, and Senor Don Ramon Valdes Lopez, Attorney General of said Republic, jointly acting for and on behalf of the Government of said Republic of Panama, having agreed that the Government of the Republic of Panama has delivered, and the Government of the United States has received, and had, on the 19th day of May, 1904, received, for. its use, occupation, and con- trol, the Isthmian Canal Zone described in said Article H of the aforesaid Convention for the Construction of an Interoceanic Canal, including lands and waters in the said Zone, lands under water, islands in said Zone, and the islands of Perico, Naos, Culebra and Flamenco, do make this further *For Art. II of the 1903 Convention, see App. Ill, § 63. 398 127 PROVISIONAL BOUNDARY AGREE. — 1904 App. II [§ 4] AGREEMENT. [§ 2] Sec. 1. The limits of the Canal Zone, including lands under md i: water and islands ceded, but not including the cities and harbors of Colon and Panama, delivery of which lands, waters and islands has been made by Panama, and possession of wliich has been taken by t h ellflited Stat es, are indicated and shown on the attached map "(marked ""A") 3 , 'signed by the parties to this Agreement, as accurately as it is possible to indicate on a map with the existing information respecting the topography of the region traversed by the Canal, by a heavy red line crossed with black, and drawn at the uniform distance by scale of five statute miles on each side of the middle line of the Canal, and said indicated boundary, or line of division, between the territory ceded by the Republic of Panama to the United States for Canal purposes and the adjoining' or abuttinglands of the Republic of Panama is provisionally accepted, and will be strictly observed by the two Governments until the limits or boundaries of the said Zone, waters and islands shall be definitely and finally marked, fixed and determined. [§ 3] Sec. 2. The limits of the city and harbor of Panama, as indicated and shown by a heavy red line crossed with black on the attached map (marked "B") 4 , and as described on the paper attached to the said map, both of which are signed by the parties to this Agreement, are provisionally accepted and will be strictly observed by the two Governments until the true and definite line of division between the Canal Zone and its waters, on the one hand, and the city of Panama and its harbor, on the other, shall be finally surveyed, marked off, fixed and determined. PROVIDED, that the outer or marine boundary of the harbor of Panama shall, as soon as practicable, be agreed upon and marked with buoys or other monuments. [§ 4] Sec. 3. The limits of the city and harbor of Colon, as indi- cated and shown by a heavy red line crossed with black on the attached map (marked "C") 5 , and as described in a paper attached to said map, both of which are signed by the parties to this Agree- ment, are provisionally accepted and will be strictly observed by the two' Governments until the true and definite line of division between the Canal Zone and its waters, on the one hand, and the "The map referred to was not reproduced. Presumably, it will be found with the original agreement. 'Same as footnote 3rante. 5 Same as footnote 3, ante. 399 128 App. II [§ 4] BOUNDARIES city of Colon and its harbor, on the other, shall be finally surveyed, marked oft and determined. [§ 5] Sec. 4. As necessity may arise, special agreements will be made and entered into from time to time by the parties hereto or by their successors respecting the delimitation of any auxiliary lands or waters outside the Canal Zone which may be found to be necessary or convenient to the construction, sanitation, or pro- tection of the Interoceanic Canal or of its auxiliary works. [§ 6] Sec. 5. The Governor of the Canal Zone, or his successors, may employ the citizens of the Republic of Panama residing in the territory of the Republic, for which purpose the Government of the Republic gives them the permission mentioned in paragraph two of Article 7 of the National Constitution. In Witness Whereof, We have signed these presents in the city of Panama, this 15th day of June, 1904. Geo. W. Davis Governor CanaLZone Tomas Arias Secretary of State Republic of Panama Ramon Valdes Lopez Attorney General Republic of Panama \Crw^ Co^4 "^tfv^CsJl xSL^ ^c^*-* fy — Voft'i 400 Staff Report Regarding Property Records ix the Custody of the United States District Court for the District of the Canal Zone introduction At the request of Chairman Allen, this report was prepared by the staff of the Subcommittee on Separation of Powers with the advice and assistance of James Seng, records management officer of the Ad- ministrative Office of the United States Courts. This report is in- tended to clarify the record-keeping system which was in effect in the Canal Zone during the time that the United States purchased the fee simple interest in the lands which comprise the Zone. The records which compose this land record system are presently under the care and subject to the direction of their legal custodian, Miss Doris L. McClellan, who — as Clerk of the Court, United States District Court for the District of the Canal Zone — is the successor in function to the Clerk of the Court, First Judicial Circuit of the Canal Zone in whose care and custody the records were originally placed. Miss Mc- Clellan obtained temporary storage space for the records of the Dis- trict Court at the offices of the Administrator of the United States Courts at 1811 Vermont Avenue, N.W., Washington, D.C. The loca- tion of the records in Washington where they are easily accessible to the Congress is advantageous in the event any further question should arise concerning the fee simple interest of the United States in the lands comprising the Zone. Record-Keeping System components The United States District Court for the District of the Canal Zone is the successor in function to the Judicial Circuits of the Canal Zone. The Clerk of Court, First Judicial Circuit of the Canal Zone, was designated "the Registrar of Property of the Canal Zone" * and re- quired to maintain an official record copy of all deeds affecting im- movable property within the Canal Zone. The form and substance of this record system was extremely detailed and required the mainte- nance of several indexes to serve for cross referencing purposes. - These individual components of the system could be maintained only by a single office because the system renuired manual entries in dif- ferent volumes which bore record to different sequences of informa- tion. 3 1 Executive Order No. 8 Issued by President William II. Taft on February 2. 1911. - Executive Order No. 8. Articles 2. .'*. 5. 0. 7. S. [). 10. 11. 12. 13. •"• Sequenced numerically by instrument number, or alphabetically by grantor and by grantee indexes. (129) 130 The present Panama Canal Company is the successor in function to the Land Office of the Canal Zone. The Land Agent in charge of the Land Office was designated as the custodian of the original deeds to lands purchased by the United States in the Canal Zone. 4 The Land Agent also assumed custody over the land records of the Panama Railroad Company inasmuch as that company and its assets also became the property of the United States. 5 The Land Agent super- vised United States lands in the Zone to prevent unauthorized intru- sions and assisted the head of the Department of Law of the Panama Canal Company in all matters related to the investigation of land claims and land titles. The Land Agent also had responsibility for in- suring that deeds vesting a fee simple interest in the Unitecl States and related property transactions were all properly recorded at the United States District Court for the Panama Canal Zone — or, more properly, at its predecessor in function, the First Judicial Circuit of the Canal Zone. PROCESS The method of executing and recording deeds was set forth as a judicially oriented function by Executive Order No. 8 which provided, in Article 17 : A copy of any instrument duly recorded under the provi- sions of this order and certified to by the Registrar in charge of the record, may be used in evidence in any judicial pro- ceedings in like manner and effect as might be done with the original if produced . . . Thus, each conveyance of immovable property (i.e. reality and fix- tures) was required to be done only by written instrument acknowl- edged by the grantor before a judicial officer authorized to issue certifi- cates of acknowledgment, which certificates also verified that the official record copy of the particular conveyance instrument had been properly and duly filed with the Registrar of Court. 6 In the early stages of the United States land purchases in the Canal Zone, the filing stage of the process required a scribe in the Registrar's office to transcribe manually in handwriting the entire text of each instrument validly executed. 7 Later, the transcription was typewritten on pages which were ultimately bound in hardback, leather-bound volumes. The Registrar also made a line entry in a separate docket book to insure the integrity of the record system. 8 This stage of the filing process was completed by the issuance of the certificate of acknowledgment which was attached to the original instrument re- tained by the grantee as proof of title. Thus, presumably, the only remaining private land owner in the Panama Canal Zone, the Sojourn- ers Lodge of the Ancient Free and Accepted Masons, has in hand a deed from the Panama Railroad Company (owned by the United States) granting fee simple title to four lots located in the town of Cristobal, Canal Zone. This conveyance, done in 1921, inasmuch as it * Executive Order No. 7 issued by President William H. Taft on January 19, 1911. 5 Ibid. Section 5. 6 Executive Order No. 8, Article 1. 7 Executive Order No. 8. Article 5. 8 Executive Order No. 8, Article 6. 131 involved public lands, was authorized in advance by Act of Congress. 9 However, in the event that a grantee could not produce the original instrument, the transcribed copy on file with the Registrar can serve in like manner and effect as the original. 10 Therefore, the title of the United States to all of the lands in the Canal Zone (with the exception of the four lots which belong to the Masons) is established either by referring to the original deed or to the recorded copies. Either method is legally sufficient to establish good title. Additionally, no deed, even if properly executed, can be considered perfected unless the deed was duly recorded in the office of the Registrar. 11 Authenticity physical The physical substance of the paper records presented to the Sub- committee at the hearing conducted on March 11, 1978, has survived the years very well considering the hot, humid climate of the Canal Zone where the records were stored until 1975. The deteriorated leather binding and the discolored ink leave no doubt as to the physical sub- stance being authentic. At the suggestion of Mr. Seng, the staff notes that these property records do not appear to warrant a chemical analysis of fragments because they are relatively recent, historically speaking. However, visual comparison with similarly constructed court records from the early 1900's confirms that the deterioration observed is typical for the area. FORMAL These property records exhibit the form and style identified by the Executive Order establishing the record-keeping systems. There are four separate types of records which reflect the required entries made in the office of the Registrar : (1) Record of the Property of the Canal Zone, (2) File Docket, (3) Grantor Index, and (4) Grantee Index. The chronological sequence of the docket entries confirms the instru- ment sequence of the property record. Moreover, the grantor and gran- tee indexes, as direct and cross alphabetical reference tools, confirm the formal authenticity of the official property record. Access original deeds The original deeds, together with their certificates of authenticity, should be in the custody of each of the original grantees. Inasmuch as the ultimate grantee in all cases (except the Masonic lots) is the United States, the chain of title to any tract of land in the Canal Zone ends with a deed vesting title in the United States. The implementing Executive Order stipulates that the Land Agent in charge of the Land Office of the Canal Zone is the custodian of the deeds, maps, and records °J^ J 25 °- '66th Conpress. H.R. 6222, approved June 5, 1920. 10 Executive Order No. 8, Article 17. u Executive Order No. 8, Article 13. 132 pertaining to lands owned by the United States. 12 The Panama Canal Company inherited these records as successor in function to the Land Office of the Canal Zone. 13 Access to these records can be initiated by contacting the Panama Canal Company or by contacting the Archiv- ist of the United States in the event that the Panama Canal Company has already transferred the records to the Archivist under the appli- cable statute. 14 These records 15 should not be disposed 1G prior to any disposition of public lands comprising the Canal Zone. 17 In the event these records have been destroyed either by the Archivist or by the Panama Canal Company, the only authentic record which survives would then be the official record of the Registrar of Court, which is an equally valid proof of title. OFFICIAL RECORD The official record of the Registrar of Property of the Canal Zone is in the legal custody of the Clerk of Courts, United States District Court for the District of the Canal Zone. 18 As evidenced by the Order of the District Court of the Canal Zone pursuant to which access to the records was obtained at the Subcommittee hearing on March 11. 1978, access to the property records of the Court is properly initiated by contacting the District Court which can arrange for review of its records by the public or by the Congress. Since the official record of the District Court must be presumed to be the only known proof of the United States fee simple interest in the lands comprising the Canal Zone, extraordinary care must be taken to protect the records of the Court. Because federal law prohibits the destruction of these records, the official records must be safeguarded by the court. 19 The District Court has to date performed this function well, and there is no reason to suppose that the records will now be lost or destroyed. Nevertheless, because the matter of the disposition of public lands in the Canal Zone is presently before the Congress (the proposed Panama Canal Treaty and H. Con. Res. 347) , the temporary location of the records in Washington in the physical custody of the Administrative Office of the United States Courts is desirable pending the final outcome of the legislative issue and pending such further record disposition as the United States District Court for the Canal Zone might deem appropriate. 12 Executive Order No. 7. Section 2. 13 Summary provided to the Subcommittee staff by the Panama Canal Company on March 17. 1078. 14 44 U.S.O. 2103. 15 44 II.S.C. 3301. i°44 U.S.C. 330S. 17 Article IV. Section 3, Clause 2 of the Constitution. 18 Testimony of the Clerk of Court, Tinted States District Court for the District of the Cannl Zone before the Subcommittee on March 11, 1978. 19 28 U.S.C. 1735(b). 133 MICROFILM The Subcommittee has in its possession a complete microfilm copy of all the records of the US. District Court for the Canal Zone through 1955. The staff has examined the microfilm records in detail and finds a variety of warranty deeds, quit claim deeds, and other, conveyance instruments vesting title to real property in the Zone in the United States of America as grantee. In some instances, it appears that the United States (or an agent of the United States, such as the Isthmian Land Commission, the Panama Railroad Company, or the Panama Canal Company) may have paid several times over for the same tract of land in order to insure good title. The records clearly show that a concentrated effort to extinguish all private land titles (or claims of title) and vest in the United States a fee simple interest in all real estate in the Canal Zone occurred in the years immediately after 1912 when President YToodrow Wilson, acting under specific authority of the Panama Canal Act of 1912, ordered the acquisition by the United States of fee title to all lands in the Zone. 20 SAMPLE DEEDS In accordance with the order of the Chairman, hereafter follows a representative sample of types of instruments of conveyance by which the United States, as grantee, purchased its proprietary land rights in the Isthmus of Panama. 20 Execuive Order of the President of the United States dated December .">, 1912. Instrument No. 18 Know all men by these presents That I, Maria Concepcion Sosa, resident of Panama. Republic of Panama, for and in consideration of the sum of fifteen thousand dollars (.S15.000) lawful money of the United States, (with interest on same of 6% from 8th August, 1908, until date payment is tendered by the Isthmian Canal Commission) to me in hand paid by the Isthmian Canal Com- mission, the receipt of which is hereby acknowledged, have granted, bargained, sold, received, and forever released and quit-claimed, and by these presents do grant, bargain, sell, remise, and forever release and quit-claim to the said Isthmian Canal Commission the seventeen (17) hectares of the estate known as "Gavilan y Gavilancito" and appropriated by the Joint Commission, appointed under the provisions of Articles VI and XV of the Treaty between the United States of America and the Republic of Panama, Mr. Edwin Denby, Chairman, together with all rights, claims, household interests and demands of whatever nature, thereto appertaining : To have and to hold the above described lands of the "Gavilan y Gavilancito" assets, together with all rights, claims, leasehold interests, and demands of what- ever nature, thereto appertaining, unto the said Isthmian Canal Commission, their successors, administrators, and assigns forever, and I. Maria Concepcion Sosa, do vouch myself to be the true and lawful owner of the above seventeen (17) hectares of the "Gavilan y "Gavilancito"' estate, and to have in myself full power, good right and lawful authority to dispose of the said land and all interests thereto appertaining in the manner as aforesaid, and I do hereby for myself, my heirs, administrators, executors and assigns, covenant and agree to warrant and defend the said lands and leasehold interests thereunto ap- pertaining unto the said Isthmian Canal Commission, their successors, adminis- trators and assigns, against the lawful claims and demands of all persons whatsoever. In witness whereof. I Maria Concepcion Sosa, have hereunto set my hand and seal, this 21st day of August 1908. (Signed) Maria C. Sosa. Signed, sealed and delivered in presence of : Witnesses to signature and execution . Personally appeared before me, the undersigned, Maria Concepcion Sosa. whose name is subscribed to the foregoing instrument in writing and acknowledged the same to be her voluntary act and deed ; and I certify that the said instrument in writing was read and fully explained to the said Maria Concepcion Sosa at the time of acknowledgment. In testimony thereof, I have hereunto set my hand and affixed mv official seal, this 21st day of August, 1908. (Signed) Walter Emery. Clerk of the Circuit Court for the 1st Judicial Circuit. C.Z. Filed for record, August 21st, 1908, at 3 o'clock P. M. (Signed) Walter Emery, Registrar. Instrument No. 23 Know all men by these presents, That I, Jose Gabriel Duque, a resident of Panama, Republic- of Panama, for and in consideration of the sum of one thou- sand dollars ($1,000.00) lawful money of the United States (with interest on same of 0% from 0th August, 1908. until date payment is tendered by the Isthmian Canal Commission, to me in hand paid by the Isthmian Canal Commis- sion, the receipt of which is hereby acknowledged, have granted, bargained, sold. remised, and forever releeased and quit-claimed, bey these presents do grant, (135) 136 bargain, sell, remise, and forever release and quit-claim to the said Isthmian Canal Commission the one (1 ) hectare of the estate known as "San Lazaro," and appropriated by the Joint Commission, appointed under the provisions of the Articles VI and XV of the Treaty between the United States of America and the Republic of Panama, Mr. Edwin Denby, Chairman, together with all the rights, claims, leasehold interests and demands of whatever nature, etc. appertaining ; To have and to hold the above described lands of the "San Lazaro" estate, together with all rights, claims, leasehold interests and demands of whatever nature, thereto appertaining, unto the said Isthmian Canal Commission, their successors, administrators, and assigns forever, and I, Jose Gabriel Duque, do vouch myself to be the true and lawful owner of the above one (1) hectare of the "San Lazaro" estate, and to have in myself full power, good right and lawful authority to dispose of the said land and all interests thereto appertaining in the manner as aforesaid, and I do hereby for myself, my heirs, administrators, execu- tors and assigns, covenant and agree to warrant and defend the said lands and leasehold interests thereunto appertaining unto the said Isthmian Canal Com- mission, their successors, administrators and assigns, against the lawful claims and demands of all persons whatsoever. In witness whereof, I, Jose Gabriel Duque, have hereunto set my hand and seal this 15th day of September, 1908. (Signed) J. Gabriel Duque. Personally appeared before me, the undersigned, Mr. Jose Gabriel Duque, whose name is subscribed to the foregoing instrument in writing and acknowl- edged the same to be his voluntary act and deed; and I certify that the said instrument in writing was read and fully explained to the said Jose Gabriel Duque at the time of acknowledgement. In testimony whereof, I have hereunto set my hand and affixed my official seal this 15th day of September, 1908. (Signed) W alter Emery, Clerk of Circuit Court for the 1st Judicial Circuit. C. Z. Filed for record, Sept. 15, at 3 :16. Instrument No. 16 DEED OF SALE Cristobal, C. Z., September 17. 1907. This is to certify that I, Manuela Pimienta, have this day sold to the Panama Railroad Company, or at the Rail Road Company's election, to the Isthmian Canal Commission, my house, No. 74, in the village on the Correoso Island at Gatun, Canal Zone (on the left bank of the Chagres River) for the sum of One Hundred and Forty Dollars (140.00) U.S. Gold; also the lot on which said house stands, which lot measures 30 meters by 8 meters, or a total of 240 square meters. for the sum of Six Hundred Dollars ($000.00) U.S. Gold (which is the equiva- lent of the price, vis: $960 Colombian Silver, for which I purchased said lot from Gen. B. Correoso on May 19. 1891, at the rate of exchange (60% premium) ruling at that time) and also, that I have received these amounts, or say a total of Seven Hundred and Forty Dollars ($740.00) U.S. Gold, tbis day from the Cashier of the Panama Railroad Company and I hereby agree to deliver up possession of said house and lot to the Panama Rail Road Company for the Isthmian Canal Commission, from today, I hereby waiving all further claims in connection with said house and lot. This is also to certify that I bave this day delivered to the Panama Railroad Company my title deed' from Gen. Correoso of May 19. 1891, for the purchase of said lot from him, jointly by myself and my husband. Jose Millet, who died over 14 years ago. leaving me in full possession of the lot. the house on which I had acquired on March 12, 1888, by purchase, for the sum of Two Hundred Dollars ($200.00) Colombian Currency, from said Jose Mulet, the title deed for which I bave today surrendered to the Panama Rail Road Company. 137 I further declare that I have given notice to the occupants of the above men- tioned house to vacate same at once. or. at latest, within fifteen (15) days from this date, so that, after the expiration of this period the Panama Rail Road Com- pany or Isthmian Canal Commission can proceed with the removal of the demoli- tion of said house. Witness : (Sgd.) Jose F. Gutierres. (Sgd.) Manuela 1 X Pimienta. UNITED STATES OF AMERICA. CANAL ZONE. THIRD JUDICIAL CIRCUIT Before me. Nelson R. Johnson. Clerk of the Circuit Court. Third Judicial Cir- cuit. Canal Zone, personally appeared the above named Manuela Pimienta. known to be the person, and acknowledged that she executed the foregoing instrument of her own free will and accord. In Witness Whereof, I have hereunto affixed my signature and the seal of the said court this 17th day of September, A.D. 1907. (Sgd) Nelson R. Johnson. Clerk of the Circuit Court, Third Judicial Circuit, Canal Zone. [seal] Fee $.40 Paid. Filed for record December 10, 1907 at 9 :30 A/M Nelson R. Johnson. Instrument No. 115 Know all men by these present, That I, Rafael Bargas, for and in considera- tion of the sum of One Dollar ($1.00), lawful money of the United States to me in hand, paid by the Panama Railroad Company, receipt whereof is hereby acknowledged, have granted, bargained, sold, remised, and forever released and quit-claimed, and by these presents do grant, bargain, sell, remise, and forever release and quitclaim to the United States of America any and all my right, title, and interest whatsoever in and to the following described property acquired by lease or purchase from (lenl. Correose or others to-wit : That piece or parcel of land House on Lot 37 D-(99) situated in the old village of Gatun described and designated on the Panama Railroad Company's map of said old village of Gatun as Lot 37 D-(99). To have and to hold the above designated and described property together with all rights, claims lease-hold interest and demands of whatsoever nature apper- taining thereto unto the said United States of America, its successors, or assigns forever; I do hereby for myself, my heirs, administrators, executors, and as- signs, covenant and agree to warrant and defend the said property unto the United States of America, its successors, or assigns against the lawful claims and demands of all persons whomsoever and I do hereby likewise release and surrender any and all claims for actual or consequential damages to the said estate which may have heretofore been caused or claimed by reason of the action of the Isthmain Canal Commission, the Panama Railroad Company, or any of their agents, servants, or employees. In Witness Whereof. 1. Rafael Bargas have hereunto set my hand and seal, this 12th day of January. 1909. (Sgd.) Rafael Bargas. Signed, sealed and delivered in the presence of : (Sgd.) ' A. C. Greenwood. ( Sgd. i R. II. Wakdi.aw. UNITED STATES OF AMERICA. (ANAL ZONE. THIRD JUDICIAL CIRCUIT Personally appeared before me this 12th day of January 19os- session of the said lands without payment of rental therefor until such time as the same are occupied or notice shall be given that possession thereof is required by the Isthmian Canal Commission. To have and to hold the above designated and described lands together with all rights, claims, lease-held interests, and demands of whatsoever nature apper- taining thereto unto the said United States of America, its successors, or assigns forever: the grantor does for itself, its successors, and assigns covenant and afree to warrant and defend these lauds into the United States of America, its successors and assigns against the lawful claims and demands of all persons whomsoever, and the grantor does hereby likewise release and surrender any and all claims for actual or consequential damages to the said lands which may have heretofore been caused or claimed by reason of the action of the Isthmian ('anal Commission, the Panama Railroad Company, or any of their agents, serv- ants or employes. In Witness Whereof, The Colombian Fruit Company, Ltd., by R. Young, its agent, has hereunder set its hand and seal this 27th day of March. 1909. [SEAL] (Sgd) R. Yung. Signed, sealed and delivered in the presence of : i Sgd i W. Andrews. Arthub Edwards. united states 6v amkhkw. canal zonk. third judicial circuit Personally appeared before me this 27th day of .March. 1909, R. Yiin^, to me known by representation to be the person therein mentioned and who executed 140 the foregoing instrument for and as agent of the Colombian Fruit Company, Ltd., and acknowledged the same to he his free act and deed. In Witness Whereof, I have hereunto set my hand and affixed my official seal, this 27th day of March, 190i>. (Sgd.) Nelson R. Johnson, Clerk of the Circuit Court, Third Judicial Circuit. [seal] Filed for record April 28th, 1909, at 4.37 P.M. No fee. Nelson R. Johnson, Registrar. Instrument No. 895 record of property of the canal zone This quit claim deed made this 1st day of August A.D. 1914 by Seferino Pacheco, hereinafter called the grantor, to the United States of America, here- inafter called the grantees, Witnesseth : That the grantor for and in consideration of the sum of Four Hundred Dollars ($400.00) to him in hand paid, the receipt whereof is hereby acknowledged, does hereby bargain, sell, remise, release and quit-claim unto the United States of America, their successors and assigns, all of his right, title, interest, claim and demand whatsoever in and to all or any part of the lands lying and being within the Canal Zone to the west of the Panama Canal, and north of the Chagres River, together with all improvements located thereon. To have and to hold the same unto the United States of America, their succes- sors and assigns. In Witness Whereof the grantor has hereunto set his hand and seal the day and year first above written. (Sgd.) Seferino^ Pacheco [seal] Signed, sealed and delivered in the presence of : (Sgd.) R. S. Carlson. Blas G. Perez. UNITED STATES OF AMERICA DISTRICT OF THE CANAL ZONE Before me, Gerald D. Bliss, Notary Public in and for the Division of Cristobal, Canal Zone, on this day personally appeared R. S. Carlson, known to me to be the person whose name is subscribed as a witness to the foregoing instrument and after being sworn by me deposes and says that he subscribed the same as such witness at the request of Seferino Pacheco, the grantor named in the fore- going instrument and that he saw the grantor execute the sums for the purposes and consideration therein expressed. Given under my hand and seal of office this 1st day of August. A.D. 1914. (Sgd.) Gerald I). Bliss. Notary Public, Division of Cristobal, Canal Zone. [seal] Filed for record Aug. 6, 1914, at 8.20 a.m. Instrument No. 931 This quit claim deed made this 17th day of October, A.D., 1914, by Magdalene Marin, hereinafter called the grantor, to the United States of America, herein- after called the grantee, Witnesseth : That the grantor for and in consideration of the sum of Two Thousand One Hundred Twenty-five and 00-100s ($2,125.00) Dollars, to him in hand paid, the receipt whereof is hereby acknowledged, does hereby bargain. 1 His mark. 141 sell, remise, release and quit-claim unto the Untied States of America, their suc- cessors and assigns, all of his right, title, interest, claim and demand whatsoever in and to all or any part of the island known as "Galeta", lying and being within the Canal Zone, and to the east of the Panama Canal, together with all improvements located thereon. To have and to hold the same unto the United States of America, their suc- cessors, and assigns. In Witness Whereof the grantor has hereunto set his hand and seal the day and year first above written. ( Sgd. ) Magdaleno Marin [seal]. Signed, sealed and delivered in the presence of : i Sgd.) R. S. Carlson. R. H. Sartor. L'NITED STATES OF AMERICA DISTRICT OF THE CANAL ZONE Before me. Gerald D. Bliss. Notary Public in and for the Division of Cristobal, District of the Canal Zone, on this day personally appeared Magdaleno Marin, proved to me on the oath of R. S. Carlson, a creditable witness, to be the person whose name is subscribed to the foregoing instrument, and he acknowledged to me that he executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office this 17th day of October. A.D. 1914. (Sgd.) Gerald D. Bliss, Notary Public Division of Cristobal, Canal Zone. [Seal] Filed for record Oct. 19. 1914. at 2 :21 p.m. Instrument No. 1058 This quit claim deed made this 22d day of March. 1915 by Isabella Franco. Nicolasa Franco. Juana Franco, Mercedes Melendes. Rayes Franco. Margarita Franco, Jerminio Franco. Felicita Franco. Juan Franco. Feliciano Franco. Elvira Franco, and Manuela Franco, hereinafter called the grantor, to the United States of America, hereinafter called the grantees. Witnesseth : That the grantors for and in consideration of the sum of seven hundred and twenty dollars ($720.00) to them in hand paid, the receipt whereof is hereby acknowledged, do hereby bargain, sell, remise, release and quit claim unto the grantees, their successors and assigns, all their right, title, interests, claims and demands whatsoever in and to all or any part of Isla Qurita. lying and being with the Canal Zone near the Pacific entrance to the Panama Canal. a little to the northwest of Balboa, together with all improvements located thereon. To have and to hold the same unto the grantees, their successors and assigns. In Witness Whereof the grantors have hereunto set their hands and seals the day and year first above written. Signed, sealed and delivered in the presence of: (sgd") R. S. Carlson, (sgd) A. G. Of Nil AM. (sgd) Isabella (her mark) Franco. Nicolasa Franco, (sgdi Juana (her mark i Franco (sgd) Mercedes Melendez (sgd) Reyes (her mark) Franco (sgd) Margarita (xi Franco (sgd) Jerminio (his mark) Franco i sgd t Felicita (her mark) Franco ( sgd i Juan Franco ( sgd ) Feliciano Franco (sgdi Elvira (her mark) Franco (sgd) Manuela (her mark) Franco i .1// names x(erson named and who exe- cuted the foregoing deed, and acknowledged to me that he executed the same freely and voluntarilv and for the purposes and considerations therein expressed. In witness whereof I have hereunto set my hand and my seal of office this 21st day of April, 1915. . (Sgd.) W. B. Cheatham, Notary Public, Division of Cristobal, Canal Zone. [ SEAL] Filed for record April 23, 1915, at 8 a.m. 143 Instrument No. 1094 This deed made this 27th day of July, A.D. 1915, by Pedro Arias F. hereinafter called the grantor, to the United States of America, hereinafter called the grantees : Witnesseth that the grantor, for and in consideration of the sum of Three Thousand Two Hundred and Fifty Dollars, ($3,250.00) United States currency, to him in hand paid, the receipt whereof is hereby acknowledged, has granted, bargained, sold, transferred and conveyed, and does hereby grant, bargain, sell, transfer and convey, unto the grantees, its successors and assigns forever, all of his right, title, interest, claim and demand whatsoever, in and to the following described property : A one-story house of wood and zinc crayon No. 1008, measuring approximately 36 feet in length by 27 feet in width, situated in Pueblo Xuevo. Aiicon District. Canal Zone, and on land bounded as follows : On the north by vacant land ; on the east by vacant land and the fence along the right of way of the Panama Railroad Company ; on the south by public street without name ; and on the west by a one-story house, crayon No. 1009. Also, a two-story house of wood and zinc, measuring approximately 25 feet in width by 26 feet in length, crayon No. 1010. situated in Pueblo Nuevo. Ancon District, Canal Zone, and on land bounded as follows : On the north by a two- story house, crayon No. 1011 ; on the east by a one-story house crayon No. 1009 : on the south by a public street without name ; and on the west by a public street without name. Together with all rights, title and interest, of every kind, in and to the land upon which the above-described houses are situated. To have and to hold the same unto the United States of America, its successors and assigns forever. And the grantor does hereby covenant and agree to and with the grantees, their successors and assigns, that he is the lawful owner, and well seized of the prop- erty above conveyed, and that he has full right and lawful authority to sell and convey the same ; that the same property is free from all liens, mortgages or other encumbrances of whatever character, and that he will forever warrant and defend the same against any person whomsoever, lawfully claiming the property or any part thereof. In Witness Whereof the grantor has hereunto set his hand and seal, at Ancon, Canal Zone, this 27th day of July. i Sgd. » Pedro Arias F. [Seal] Witness (Sgd.) R. S. Carlson. UNITED STATES OF AMERICA CANAL ZONE Before me. E. If. Goolsby. Notary Public in and for tbe Canal Zone, on this day personally appeared Pedro Arias F. known to me to be the person whose name is subscribed to the foregoing instrument, and he acknowledged to me that he has executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office, this 27th day of July. 1915, at Ancon. Canal Zone. (Sgd.) Elbert M. Goolsby. Notary Public. [Seal] Filed for record July 27, 1915, at 11 a.m. 144 Instrument No. 1088 This deed made this 24th day of June, A.D. 1915, by Paul Prosky, joined by his wife Rosa de Prosky, hereinafter called the grantors, to the United States of America, hereinafter called the grantees : Witnesseth that the grantors, for and in consideration of the sum of Three Thousand Six Hundred Fifty Dollars, ($3,650.00), United States currency, to them in hand paid, the, receipt whereof is hereby acknowledged, have granted, bargained, sold, transferred and conveyed, and do hereby grant, bargain, sell, transfer and convey, unto the United States of America, its successors and assigns forever, all of their right, title, interest, claim and demand whatsoever, in and to the following described property : A two-story house, the first story being constructed of concrete, and the second story of wood and zinc, in the Ancon District of Pueblo Nuevo, Canal Zone, which house measures approximately thirty-two feet in width by thirty-seven feet in length, numbered by crayon, 1003, and being situated on land bounded as follows : On the north by a two-story, wood and zinc building belonging to the American Trade Developing Company ; on the east by First Street and a fence separating the street from the Railroad Tracks ; on the south by a two-story zinc and wood house owned by Ricardo de la Ossa ; and on the west by Second Street. Together with all rights, title and interest, of every kind, in and to the land upon which the above-described house is situated. To have and to hold the same unto the United States of America, its successors and assigns forever. And the grantors do hereby covenant and agree to and with the grantees, their successors and assigns, that they are the lawful owners, and well seized of the property above conveyed, and that they have full right and lawful authority to sell and convey the same; that the said property is free from all liens, mortgages or other encumbrances of whatever character, and that they will forever war- rant and defend the same against any person whomsoever, lawfully claiming the said property or any part thereof. In Witness Whereof the grantors have hereunto set their hands and seals, at Ancon, Canal Zone, this 24th day of June, 1915. (Sgd.) Paul Prosky [seal] Rosa de Prosky [sealI Witnesses : (Sgd.) R. S. Hays. G. D. Baker. UNITED STATES OF AMERICA, CANAL ZONE Before me, E. M. Goolsby, Notary Public in and for the Canal Zone, on this day personally appeared Paul Prosky, and Rosa de Prosky, his wife, both proved to me on the oath of G. D. Baker to be the persons whose names are subscribed to the foregoing instrument, and they severally acknowledged to me that they have executed the same for the purposes and consideration therein expressed; and the said Rosa de Prosky, being examined by me privily and apart from her husband, and having had said instrument fully explained to her by me, declared that she had willingly signed the same for the purposes and consideration therein expressed, without fear of compulsion on the part of her said husband, and that she did not wish to retract it. Given under my hand and seal of office, this twenty-fourth day of June, 1915, at Ancon, Canal Zone. (Sgd.) Elbert M. Goolsby, Notary Public. [seal] Filed for record June 24, 1915, at 4.10 p.m. 145 ACT OF CONGRESS AUTHORIZING CONVEYANCE TO MASONS CHAP. 239. — An Act To remove a certain tract or lots of land in Cristobal, Canal Zone, from the operation and effect of the Executive order of the Presi- dent of December 5, 1912, pursuant to the Act of Congress of August 24, 1912 (Thirty-seventh Statutes, chapter 390, page 565) Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following tract of land situated within the Canal Zone, and more particularly described as lots numbered six hundred and forty-one, six hundred and forty-three, six hundred and forty-five, and six hundred and forty- seven in the town of Cristobal, Canal Zone, the same being bounded on the north by Eleventh Street, on the east by Bolivar Street, on the south by lot numbered six hundred and forty-nine, and on the west by a vacant lot, the said lots or tract of land having an extension from north to south of one hundred and twenty feet and from east to west of one hundred feet, and measuring in superficial area twelve thou- sand square feet, be, and the same is hereby, withdrawn from the operation and effect of the Act of Congress approved August 24, 1912, known as the Panama Canal Act (Thirty-seventh Statutes, chapter 390, page 565), and the subsequent Executive order of the President, issued pursuant to the said Act of Congress under date of Decem- ber 5, 1912. Sec. 2. The Panama Kailroad Company is hereby authorized to sell, transfer, and convey said lots or tracts of land with all improve- ments thereon to any other person or persons or association of persons and retain the consideration therefor for its own use. Approved, June 5, 1920. THE PANAMA CANAL History Prior to 1950 Treaties ivith Panama The United States undertook the construction of the Panama Canal after concluding a treaty with Panama in 1903, 1 under which, among other provisions : 1. Panama granted to the United States the use, occupation and control of the Canal Zone for the construction, maintenance, operation, sanitation and protec- tion of the Canal; 2 2. Panama granted to the United States all the rights, power and authority within the Canal Zone "which the United States would possess and exercise if it were the sovereign of the territory * * * the entire exclusion of the exercise by the Republic of Panama of any such rights, power, or authority." 3 3. The United States agreed to pay the Republic of Panama $10 million in cash and an annuity of $250,000. 4 Subsequent treaties between the United States and Panama were concluded in 1936° and 1955.° The 1936 treaty, among other provisions, increased the annuity payable to Panama from $250,000 to $430,000 ' and placed restrictions on resi- dence, importations, and commercial activity in the Canal Zone. 8 The 1955 treaty, among other provisions : 1. Further increased the annuity to $1,930,000 ; ° 2. Provided for return to Panama of improved and unimproved real estate owned by the United States in Panama : 10 3. Excluded Panamanian employees residing in Panama from the priv- ilege of making purchases in Canal Zone stores ; u 4. Granted Panama the right to tax Panamanians employed in the Canal Zone ; 12 5. Provided for equality of opportunitj' and treatment of Panamanian employees ; I3 and 6. Provided for construction of a bridge across the Canal at the Pacific entrance to the Canal. 14 The Panama Canl Construction of the Canal was performed by the Isthmian Canal Commission under the provisions of the Spooner Act of June 28, 1902. "' 3 As construction ap- proached completion, the President issued an Executive order providing a perma- nent organization for the completion, maintenance, operation, government and sanitation of the Panama Canal and its adjuncts and the govenrment of the Canal Zone 1 ' 1 pursuant to authority provided by the Panama Canal Act of August 24, 1912. 17 The effect of the Panama Canal Act and the Executive order was to establish The Panama Canal as an independent government agency for (1) operation and maintenance of the waterway, and (2) civil government of the Canal Zone. The pertinent provisions of the Panama Canal Act were later incorporated in the 1934 edition of the Canal Zone Code. 18 1 TS 431. 2 Art. II. •Art. III. *Art. XIV. 5 TS 945. 53 Stat. 1807. 6 TLAS 3297. •Art. VII. 8 Art. III. 9 Art. I. 10 Art. V. 31 Art. XII. "Art. II. ■ Memorandum of Understandings Reached accompanying treaty, par. l. 14 Memorandum of Understanding Reached accompanying treaty, par. 5. «32 Stat. 481. 16 E.O. 1885 of January 27. 1914. 17 37 Stat. 560. 18 2 C.S. Code (1934 ed.) 5. (147) 148 The Panama Railroad Company During the existence of The Panama Canal agency, many of the quasi-business enterprises relating to the Canal operation, (e.g., the railroad, steamship line, commissaries, etc.) were conducted by the Panama Railroad Company. The Company was originally created in 1849 under the laws of the State of New York as a private corporation for the purpose of constructing and maintaining a railroad across the Isthmus of Panama. Most of the shares of the Company's capital stock were acquired in 1SS1 by the French in conjunction with their attempt to construct a canal. The Isthmian Canal Commission acquired the shares owned by the French Canal Company for the United States as part of the French assets purchased in 1904, and in 1903 purchased the remaining out- standing shares from private owners. Thus, since 1905 the Company has been wholly owned by the United States Government. In 194."), Congress enacted the Government Corporation Control Act 19 which prohibited the continued existence of any wholly owned government corporation created by or under the laws of any state. Accordingly, the Panama Railroad Com- pany was reincorporated under a federal charter with authority to continue its operations as before." REORGANIZATION ACT OF 1950 Under legislation enacted in 1950, a basic change in the organizational struc- ture of the canal enterprise became effective July 1, 1951. a One purpose of the reorganization was to separate the business operations of the canal enterprise, including operation of the waterway, from those functions normally associated with civil government. Thus, all the functions of the agency previously known as The Panama ('anal except those relating to civil government, health, and sanita- tion were transferred to the Panama Railroad Company which was renamed the Panama Canal Company. Tbe Panama Canal agency retained its governmental functions and was renamed the Canal Zone Government. PRESENT ORGANIZATION The basic provisions of tbe 1950 reorganization legislation were subsequently incorporated into the 1902 edition of the Canal Zone Code. 22 Under the statutory scheme, outlined below, the Panama Canal Company and the Canal Zone Govern- ment function as an integrated enterprise, although each is an independent agency of the United States. 28 Panama Canal Company The Panama Canal Company is described in the law as a body corporate and an agency of tbe United States for the purpose of maintaining and operating the Panama Canal and conducting business enterprises incident thereto and incident to the civil government of the Canal Zone. 21 The United States, in its capacity as owner of the corporation, is represented by the President or such officer as he designates, called the "stockholder." 2 "' The President has designated tbe Secretary of the Army to act as stockholder. 26 The Executive order delegating this authority to tbe Secretary of the Army specifies that in performing this function, tlie Secretary shall act as the direct representa- tive of the President and not in his capacity as head of the Department of the Army. 27 Management, of the Company is vested in a Board of Directors, consisting of not less than nine nor more than thirteen members, including the Governor of the Canal Zone and tbe stockholder, if he elects to serve. 28 The other members of the Board are appointed by and serve at the pleasure of the stockholders. 29 The directors receive no salary but are paid a per diem allowance and transportation expenses for travel in connection with their services to the Company. 59 31 U.S.C. S41-S09. -" Art of Juno 20. 104s. 02 Stat. 1075. 21 Art of September 20. 1050, 04 Stat. 1041. -- 76A Stat. 1. ot sen. 2;5 Cf. language of 2 C.Z. Code 02(f) concerning the fiscal management of the two agencies. -' 2 C.Z. Code 01. »2 C.Z. Co.lo 02. 20 F.O. 11305 of September 12. 1900, 35 CFK 3.2(a). « 35 CFR 3.2(b). »2 C.Z. Code 03. 23 Ibid. 149 The powers of the Company are enumerated in the charter. 30 In general the prin- cipal activities of the Company are il) operations directly involved in the move- ment of ships through the Canal and (2 > supporting services. The latter include vessel repairs, harbor terminals, a railroad across the Isthmus, a supply ship operating between the United State.-, and the Canal Zone motor transportation facilities, storehouse, an electric power system, a communications system, a water system, and service activities essential for meeting the need* of employees, such as living quarters, retail stores and restaurants. The results of operation of each of the units of the Company is shown in detail in the Company's annual reports. Under its charter the Company is required to be self-sustaining although appropriations are authorized to cover any operating losses 31 or for capital improvements. 32 Appropriations for operating losses are required to be repaid. Since the 1950 reorganization the Company has not received any appropriations. All operating expenses and capital costs have been met from revenues. The Company is also required to reimburse the Treasury for interest on the net direct investment of the United States in the corporation at rates fixed annually by the Secretary of the Treasury, 33 for the annuity of $430,000 paid to Panama under the 1903 treaty with Panama as amended by the 1936 treaty, 31 and for the net costs of operation of the agency known as the Canal Zone Government. 33 Tolls for the use of the Canal are established by the Company, subject to ap- proval by the President of the United States. 88 The law requires that tolls be maintained at rates calculated to recover all costs of maintenance and operation of the Canal, including interest, depreciation and an appropriate share of the net cost of the Canal Zone Government. 37 The remaining financial obligations of the Company are met through revenues derived from operations of the sup- porting activities. The Board of Directors is required to review annually its working capital requirements together with foreseeable requirements for plant replacement and expansion and to pay any amounts in excess thereof into the Treasury in reduc- tion of the Government's investment in the Company. 38 Since 1950 the Company has paid $30 million into the Treasury for this purpose. Canal Zone Government The Canal Zone Government is an independent agency of the United States charged with the performance of the various duties connected with the civil gov- ernment of the Canal Zone. 30 The Canal Zone Government is administered by a Governor of the Canal Zone under the supervision of the President or such officer of the United States as may be designated by him. 40 The President has designated the Secretary of the Army for this purpose 41 with the same stipu- lation as in the delegation to act as the stockholder of the Panama Canal Com- pany that in performing these functions, the Secretary acts as the direct repre- sentative of the President and not in his capacity as head of the Department of the Army.* 2 The Governor of the Canal Zone is appointed by the President by and with the advice and consent of the Senate for a term of four years. 43 As previously noted. the Governor is ex officio the President of the Panama Canal Company and a member of the Company's Board of Directors. The functions of the Canal Zone Government are those normally associated with civil government. They include police and fire protection, operation of a school system, and provision of courts, medical facilities, sanitation, roads, and customs and immigration services. The Canal Zone Government operates <>n ap- propriations received from Congress each year. Any revenues received by the 30 2 C.Z. forte 65. 66. 312 C.Z. Code 72. 32 2 C.Z. Code 62. »2 C.Z. Code 62(a). "*2 C.Z. fV.de 62 (p). 35 Tbid. 38 2 CZ. Code 411. "2 C.Z. Code 412. » 2 C.Z. Code 70. ■ 2 C.Z. Code 31. «>IWd. a b o 11305 of September 12. 1966, 35 CPR 3.2(a). '- 35 CFR 3.2(b). "2 C.Z. Code .".2. 150 Canal Zone Government during the year are returned to the Treasury of the United States and are deducted from the gross appropriations for that year. The net cost of the Canal Zone Government, after deducting these revenues, is then reimbursed by the Panama Canal Company to the Treasury of the United States. The results of operation of the various elements of the Canal Zone Government are detailed in the annual reports of the agency. o UNIVERSITY OF FLORIDA