1931, and covered by House Report No. 2832, Seventy-first Congress, third session. In that report will be found the provisions of existing law with the proposed amendments thereto clearly indicated.

The early consideration and passage of the legislation proposed for the Canal Zone are recommended.

Sincerely yours,

PATRICK J. HURLEY, Secretary of War.

The committee recommends the following amendments:

Page 2, line 25, after the word "courts" strike out to and including the word "courts" on page 3, line 1.

The committee recommends this amendment because there is no grand jury system in the Canal Zone, and it is believed desirable to provide a preliminary hearing in all cases whereof the original trial jurisdiction is in the district court.

Page 3, line 2, strike out the period, substitute a semicolon, and add the words "but this provision shall not deprive the district attorney of the right to present an information to the district court after a defendant has been discharged by a magistrate court."

Page 10, line 16, beginning with the word "actions" strike out down to the word "and", on page 11, line 2, and in lieu thereof insert the words "cases whereof original trial jurisdiction is in the district court."

The committee recommends this amendment because it seems desirable to give unlimited right of appeal in all cases whereof original trial jurisdiction is in the District Court of the Canal Zone.

A general statement relating to the revision and codification of the laws of the Canal Zone is made in the report on H. R. 7519, where the text of the law authorizing such work is quoted. The revision of the Panama Canal act (H. R. 7523) is in harmony with the general revision.

This is a bill to amend sections 7, 8, and 9 of the Panama Canal act, as amended.

SECTION 7

Section 7 of the Panama Canal act as it now stands confers upon magistrate courts exclusive original jurisdiction of "all violations of police regulations and ordinances and all actions involving possession or title to personal property." This bill amends section 7 by omitting that jurisdiction of magistrate courts. It is considered to be unnecessary to provide for violations of police regulations and ordinances in this act. It often happens that questions involving the possession or title to personal property involve large values that are such as to demand the immediate attention of the district court. There is no good reason for conferring exclusive jurisdiction in such cases on the magistrate court.

Section 7 of the Panama Canal act, as amended, provides that magistrates

shall also hold preliminary investigations in charges of felony, and offenses under section 10 of this act, and charges of misdemeanor in which the punishment that may be imposed is beyond the jurisdiction herein granted to magistrate courts, and commit or bail in bailable cases to the district court.

The bill modifies this provision of law in some respects, the purpose of which will be apparent.

Section 10 of the Panama Canal act provides that any person violating rules and regulations touching the right of any person to remain upon or pass over any part of the Canal Zone shall be guilty of misdemeanor punishable by fine not exceeding $500, or by imprison

ment not exceeding one year or both; and that any person who injures or obstructs, or attempts to injure or obstruct, any part of the Panama Canal, or the locks thereof, or the approaches thereto, shall be guilty of a felony punishable by fine not exceeding $10,000, or by imprisonment not exceeding 20 years, or both.

Öffenses against section 10 are defined in that section as misdemeanors or felonies, respectively, and have been provided for in the Crimincal Code that is being submitted to Congress for its approval by another bill. Specific mention, therefore, of offenses under section 10 of the Panama Canal act is not necessary in the amended section 7 of the act, and reference thereto is therefore omitted.

Existing law vests in the Governor of the Panama Canal authority to appoint magistrates and constables. This bill provides that magistrates and constables and other employees necessary to conduct the business of the magistrate courts shall be appointed by the President or by his authority. The purpose of this change in the law is to provide for necessary clerical employees of the magistrate courts, and to vest in the President authority to regulate the matter of appointing these officials as he may deem proper.

Existing law makes no specific provision for oaths of office by magistrates and constables, but leaves that matter to regulation by order of the President. This bill amends section 7 of the Panama Canal act so as to provide specifically that magistrates and constables. shall take oath to the effect that they will faithfully and impartially discharge the duties of their respective offices. It is believed that this requirement as to taking oath should be provided for by legislative enactment rather than left merely to administrative regulation.

Section 7 of the Panama Canal act provides that

the rules governing said courts and prescribing the duties of said magistrates and constables, oaths, and bonds, the times and places of holding such courts, the disposition of fines, costs, forfeitures, enforcements of judgments, providing for appeal therefrom to the district court, and the disposition, treatment, and pardon of convicts shall be established by order of the President.

The bill amends this part of section 7 by omitting the words "enforcement of judgments, providing for appeals therefrom to the district court, and the disposition, treatment, and pardon of convicts shall be established by order of the President." The method of enforcing judgments and the disposition and treatment of convicts has been provided in the code of procedure that is being submitted to Congress for its approval by another bill, and it is therefore unnecessary to leave that provision in the Panama Canal act that is being amended. The matter of pardoning convicts is taken care of by specific provision in the pending bill, as follows:

The governor may grant pardons and reprieves and remit fines and forfeitures for offenses against the laws of the Canal Zone and reprieves for offenses against the laws of the United States until the decision of the President is made known thereon.

There has been considerable controversy on the zone with reference to the power of the governor to grant pardons. There are many laws that have been enacted specifically for the Canal Zone. There are other general laws that have been enacted by Congress for the entire country and extended to the Canal Zone by specific provisions. Questions have arisen as to whether or not the governor can exercise pardon power in cases of convictions for offenses against the laws of the United States, such as the narcotic or prohibition

laws. The act is amended in the foregoing particular for the purpose of clarifying the question of authority to grant pardons and reprieves. Section 7 of the existing Panama Canal act provides for appeals to the district court from the judgment and rulings of the magistrate court, as follows:

Appeals in civil and criminal cases are hereby authorized from the judgments and rulings of the magistrate courts to the district court under the rules and regulations prescribed by section 6 of Executive order of March 12, 1914, relating to the Canal Zone judiciary: Provided, however, That there shall be no right of appeal in criminal cases, except in those cases wherein the defendant has been sentenced to jail, or has been fined in amount exceeding $25.

This bill omits reference to rules and regulations prescribed by section 6 of the Executive order of March 12, 1914, and also omits the proviso at the end of that provision. The matter of appeals from the magistrate court to the district court is fully covered by the codes of procedure that are being submitted to Congress for its approval in other bills. When those codes shall have been enacted into law, the Executive order of March 12, 1914, will be obsolete and no reference to it will be made in the code. Appeals will be taken care of by law. The proviso has been omitted from this provision with reference to appeals because it is believed that there should be a right of appeal in all cases whatever the judgment may be in amount or time.

Section 7 of the Panama Canal act of August 24, 1912, as amended by the act of September 21, 1922, and by the act of December 29, 1926, showing the matter stricken out in black brackets and the new matter inserted in italics by the pending bill, is as follows:

SEC. 7. That the Governor of the Panama Canal shall, in connection with the operation of such canal, have official control and jurisdiction over the Canal Zone and shall perform all duties in connection with the civil government of the Canal Zone, which is to be held, treated, and governed as an adjunct of such Panama Canal. Unless in this act otherwise provided, all existing laws of the Canal Zone referring to the civil governor or the civil administration of the Canal Zone shall be applicable to the Governor of the Panama Canal, who shall perform all such executive and administrative duties required by existing law.

The President is authorized to determine or cause to be determined what towns shall exist in the Canal Zone and subdivide and from time to time resubdivide said Canal Zone into subdivisions, to be designated by name or number, so that there shall be situated one town in each subdivision, and the boundaries of each subdivision shall be clearly defined.

In each town there shall be a magistrate's court with exclusive original jurisdiction coextensive with the subdivision in which it is situated of all civil cases in which the principal sum claimed does not exceed $300, and all criminal cases wherein the punishment that may be imposed shall not exceed a fine of $100, or imprisonment [not exceeding] for thirty days, or both, [and all violations of police regulations and ordinances] and all actions involving [possession or title to personal property or] the forcible entry and detainer of real estate.

Such magistrates' courts shall also hold preliminary [investigations] hearings in all charges of felony [and offenses under section 10 of this act] and in charges of misdemeanor in which the punishment that may be imposed is beyond the jursidiction herein granted to the magistrates' courts, and commit or bail in bailable cases to the district court, but this provision shall not deprive the district attorney of the right to present an information to the district court after a defendant has been discharged by a magistrate court."

A sufficient number of magistrates and constables, who must be citizens of the United States, and other employees necessary to conduct the business of such courts, shall be appointed by the [Governor of the Panama Canal] President or by his authority for terms of four years and until their successors are appointed and qualified, and the compensation of such persons shall be fixed by the President, or by his authority. [, until such time as Congress may by law regulate the same.]

1

Bejore assuming office the magistrates and constables shall take and subscribe an oath of office before a notary public of the Canal Zone to the effect that they will faithfully and impartially discharge the duties of their respective offices.

The rules governing said courts and prescribing the duties of said magistrates and constables, oaths, and bonds, the times and places of holding such courts, the disposition of fines, costs, and forfeitures enforcements of judgments, providing for appeals therefrom to the district court, and the disposition, treatment and pardon of convicts] shall be established by order of the President.

The governor may grant pardons and reprieves and remit fines and forfeitures for offenses against the laws of the Canal Zone and reprieves for offenses against the laws of the United States until the decision of the President is made known thereon.

The Governor of the Panama Canal shall appoint all notaries public, prescribe their powers and duties, their official seal, and the fees to be charged and collected by them.

Appeals [in civil and criminal cases are hereby authorized] from the judgments and rulings of the [magistrates] magistrate courts to the district court [under the rules and regulations prescribed by section 6 of Executive order of Merch 12, 1914, relating to the Canal Zone judiciary: Provided, however, That there shall be no right of appeal in criminal cases, except in those cases wherein the defendant has been sentenced to jail or has been fined in amount exceeding $25.] are authorized in all civil and criminal cases.

SECTION 8

Section 8 of the Panama Canal act provides that "there shall be in the Canal Zone one district court.' That provision of section 8 is amended by this bill so as to provide that "there shall be in the Canal Zone one district court, to be known and designated as the United States District Court for the District of the Canal Zone."

There has been considerable controversy in the Canal Zone as to the status of the district court and particularly with reference to how its records, pleadings, and judgments should be entitled. The purpose of the change proposed by this bill is definitely and conclusively to fix the status of the court and settle all such controversies by congressional enactment.

Section 8 of the Panama Canal act also provides that the terms of the district court "shall be held at least once a month in each division." As amended by this bill, the act will provide that terms of the court shall be held at such times as the judge may designate by order. The business of the court does not require monthly terms in each division. It is not thought to be advisable to fix the terms of court by statute. Congress is not in a position to say when the terms of the district court in the Canal Zone should be held. By changing the law so as to provide that the terms shall be held at such times as the judge may designate by order, there will be allowed some flexibility in fixing the terms of court, and the control and responsibility in that respect will be placed directly in the hands of the district judge where it belongs. This bill amends section 8 of the Panama Canal act by granting authority to the district judge, rather than to the President, to prescribe the rules of practice of the court. This change is proposed in order to bring the Canal Zone law more into harmony with the generally accepted practice in States, that rules of the court are matters for judicial determination and are not properly matters for executive control and regulation.

The bill further amends section 8 of the Panama Canal act with respect to the appointment of a special judge to act in the absence. or disability of the judge of the district court. The substance of existing law is not materially changed by the proposed amendment, except as to the elimination of qualifications prescribed in the exist

HR-72-1-VOL 1-61

ing law for the special judge to be appointed which is believed to be unnecessary.

Section 8 of the Panama Canal act also confers upon the district. court jurisdiction of "all felony cases under the laws of the Canal Zone." This bill amends that provision by giving the court jurisdiction of all "criminal cases wherein the punishment that may be imposed exceeds a fine of $100, or 30 days' imprisonment, or both."

There are certain cases of misdemeanor in which the district court has original jurisdiction. The purpose of the proposed amendment is only to clarify and define more definitely the jurisdiction conferred upon the court by the act.

Existing law confers upon the district court of the Canal Zone jurisdiction of "all matters and proceedings not otherwise provided for which at the time this act took effect were within the jurisdiction of the Supreme Court of the Canal Zone, the Circuit Court of the Canal Zone, the District Court of the Canal Zone, or the judges thereof." This bill substitutes for that provision language conferring jurisdiction over "all cases and proceedings involving laws of the United States applicable to the Canal Zone, and all other matters and proceedings wherein jurisdiction is conferred by the codes of law and procedure of the Canal Zone." With the enactment of the proposed codes of the Canal Zone, and the amendment of the Panama Canal act as proposed in this bill, the provision of existing law just referred to will become obsolete. It is, therefore, desirable to substitute for that provision, a provision referring to the Code of Laws and procedure of the Canal Zone. It is also believed to be desirable to have the law provide specifically for jurisdiction over cases and proceedings under the laws of the United States applicable to the Canal Zone, as distinguished from purely local Canal Zone laws.

Existing law governing the selection, summoning, and serving of jurors was provided in the act of December 29, 1926, amending the Panama Canal act. This bill leaves that law unchanged except it inserts the words "subject to such limitations as may be contained in any codes which may hereafter be enacted for the Canal Zone" at the end of the first sentence in the paragraph relating to juries. The codes that have been submitted to Congress in other bills for approval contains specific provision governing the right to trial by jury in civil and criminal cases, respectively. The purposes of this amendment to existing law is to make these code provisions applicable if and when the codes shall have been approved by Congress.

Existing law provides that compensation of jurors shall be prescribed by the President. This bill specifically provides the rate of compensation that shall be paid. It is believed wise to fix the rate of compensation by legislative enactment. The rates fixed by the act are those that have been heretofore prescribed by the President.

Existing law provides that the district judge "shall appoint the clerk of said court, and may appoint one assistant clerk and such other additional help as the President may authorize."

This bill provides that "the district judge shall appoint the clerk of the district court, and the President may authorize the appointment of such deputy clerk or deputy clerks and clerical assistants to the judge and the clerk as he shall deem necessary." There is need at the present time for more than one assistant clerk. This amendment to the existing law provides a flexible authorization