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greater executive powers may have to be exercised in those cities to accomplish the ends desired.

The Taft agreement has become in many respects disadvantageous to both Governments and should be superseded by an agreement more in accord with our present mutual needs and with our rights under the treaty.

For further particulars attention is invited to Appendix J.

LAW.

During the year Judge Frank Feuille continued as special attorney for the purpose of codifying the laws of the Canal Zone and defending the interests of the United States before the Joint Land Commission in the acquisition of lands under private ownership which are being taken over in accordance with the Executive order of December 5, 1912. He also acted as adviser to the Governor and the various heads of departments in matters relating to the canal organization and administration and affairs arising between the Canal Zone and the Republic of Panama. The district attorney, Mr. William K. Jackson, resigned his office on June 18, 1915, and under date of June 19, 1915, Mr. Charles R. Williams was appointed to succeed him.

A number of Executive orders of legislative character were issued, the more important of which were: The order relating to the duties of the clerk of the district court and his assistant; requiring oceangoing vessels to be equipped with wireless; authorizing the board of admeasurers to administer oaths to witnesses and to compel their attendance; setting aside certain area of lands in the Canal Zone for the naval radio stations; prescribing the duties of constables; reorganizing the board of health of the Canal Zone; relating to postal crimes in the Canal Zone; requiring litigants to give security for costs in civil actions; prescribing rules for the government of motormen and persons in control of street cars at street, road, and railroad crossings; to establish a postal savings bank; and relating to the compensation to be paid injured employees of The Panama Canal and the Panama Railroad. An Executive order, dated April 27, 1915, changed the name of Culebra Cut to Gaillard Cut, in honor of the services rendered by the late Lieut. Col. D. D. Gaillard, United States Army, while a member of the Isthmian Canal Commission and division engineer of the central division, which included Culebra Cut.

The work of revising the laws of the Canal Zone so as to adapt them to the change from the construction period to that of the operating period of the canal was checked by a decision of the Attorney General, who held that the President was without power to alter or amend Executive orders issued prior to the Panama Canal act. It had been assumed that the authority granted to the President by the Panama Canal act, which directed him to abolish

the commission, thus discontinuing the old system, and required
him thereafter to complete, govern, and operate the canal and to
govern the Canal Zone, carried with it the implied authority to
enact police rules necessary to make the power effective. The
organization required the enactment of Executive orders of a sub-
stantive nature as well as administrative, but the adverse opinion
rendered by the Attorney General brought the whole matter to a
halt.
The question of revising the laws in order to adapt them to
the new conditions, and submitting them to Congress for enactment,
is not a practical one, for the canal and its adjuncts present prob-
lems that are entirely new in administration.

Although the canal is now operated, the construction period is still on, and the defensive measures provided for the canal require the maintenance of a large body of troops, and the laws must be drafted so as to harmonize the various elements, or friction and inefficiency will result. The opening of the canal to traffic has brought it into close contact with the world's commerce, and there is not sufficient scope in the old Executive orders to permit the President or his representative on the Isthmus to meet the questions which will constantly arise under the new order of things. A system of laws and regulations sufficiently elastic can not be drafted at once to meet the new conditions as they come. Changes and modifications in the existing laws will be necessary until the transition period is entirely over and the new organization firmly settled. The Panama Canal act should be modified so as to permit the President to make such modifications when the necessity therefor arises.

The land office of The Panama Canal, which also has charge of the lands of the Panama Railroad Company, continued under the jurisdiction of the special attorney. During the past year the land office settled by private agreement and paid 1,462 claims, aggregating the sum of $351,306.64, making a total of 3,595 claims settled and paid from January 1, 1913, to June 30, 1915, aggregating the sum of $507,825.14.

The Joint Land Commission continues in session, and the progress heretofore made gives little hope of its concluding its duties within a reasonable time in the future. One of the American commissioners, Mr. David Marks, died on June 17, 1914, and Mr. Nicholas Cornet was appointed a member of the commission on September 17, 1914. In the interval the expense of the commission continued with the exception of the pay of one commissioner, and nothing could be accomplished during this time. During the fiscal year the Joint Land Commission rendered 79 awards, comprising 85 docket numbers, aggregating the sum of $161,667.16. Ten of the awards were for land claims and the others for improvements only. The commission dismissed 377 cases, 321 of which dismissals were based upon private

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settlements previously effected between the claimants and the land office. On March 27, 1915, the six months period within which claims could be filed, terminated, and on that date 3,593 claims had been filed, including several hundred that had been listed by the commission in 1913 on its own motion, and for which no formal claims had been filed. Judge L. M. Kagy, one of the American commissioners, left for the United States on June 24, 1915, in consequence of which the commission is again inactive.

A number of licenses revocable at will, which provide that no compensation shall be paid to lessees for improvements in case the license is terminated, were issued to steamship companies at Cristobal for lots on which to build steamship offices and residences for company agents; for the erection of tanks for the storage of fuel oil at Cristobal and Balboa; to the Masonic Order for the erection of a temple at Ancon; and to various religious denominations and benevolent associations in the Canal Zone, for the purpose of their respective organizations. All of these licensees are required to pay a reasonable ground rent, except in the case of religious and benevolent organizations, in which cases a nominal rent is charged.

For further details attention is invited to Appendix K.

WASHINGTON OFFICE.

The work of the Washington office continued in charge of Maj. F. C. Boggs, United States Army, and the organization remained as previously reported. The scope of the work handled was about the same as previously reported. Due to the continued effort to reduce the supply of material on the Isthmus to a minimum, the work of the purchasing department was even greater than during the previous fiscal year. The result has been a large increase in the number of orders, the average value of each order, however, being considerably reduced below the average of former years.

During the year 899 persons within the United States were tendered employment for duty on the Isthmus in grades above that of laborer, as compared with 2,248 for the previous year; 652 accepted and were appointed, covering 59 different classes of employment. The total amount of purchase orders placed was $7,307,689.34, the principal items of equipment purchased being as follows: Valves for Dry Dock No. 1, $49,100; pumping plant for Dry Dock No. 1, $133,056; six sets of spare regulating valves for locks, $41,100; granite for Dry Dock No. 1, $22,895.20; one 15-yard dipper dredge, $377,500; and three 1,000-yard steel dump scows, $187,980. Other principal items purchased included 950,000 pounds of explosives, 26,681,844 feet of lumber, 25,541 ties, and 9,306 piles. During the year 556,777 barrels of cement were purchased.

For further details attention is invited to Appendix M.

The large fill which was made some years ago in the rear of the old quarantine station behind the Panama Railroad stables has recently become an active breeding area for anopheles mosquitoes, this on account of the rank growth of grass and the uneven settling, causing large concealed pools which are difficult to drain This area will have to be maintained in the future at considerable expense unless further filling and grading is done.

Quarantine. During the year the quarantine station at the Pacific end was removed from Culebra Island to the Balboa dump and is now in full operation on the new site. A landing is being constructed on the French canal opposite the station which will considerably facilitate the quarantine work.

At the Atlantic end a portion of the old Colon Hospital was fitted up as a quarantine station and it is proposed to construct a landing opposite this point as soon as the east breakwater affords sufficient protection.

While the number of passengers inspected during the year was not so large as in 1914, the increase in number of vessels inspected amounted to 583.

In order to avoid as much as possible delays to ships in passage through the canal, arrangements were made to pass ships from infected ports "in quarantine," that is, by placing quarantine guards on board, with certain instructions to prevent intercourse with the shore, the quarantine period may be completed in transit. For further details attention is invited to Appendix I.

FORTIFICATIONS.

Work was continued during the year on the gun and mortar batteries, and by the close of the year the concrete work and all of the backfill were completed. Work was in progress on the range and fire-control systems and the mounting of ordnance.

The work was in charge of Lieut. A. H. Acher, United States Army, until May 5, 1915, when he was succeeded by Lieut. Creswall Garlington, United States Army.

The following appendices are inclosed herewith:

Increase in salaries and personnel, submitted in compliance with law, Appendix N.

Laws recently enacted affecting the canal, and executive orders issued during the year, Appendix O.

Chart showing the organization effective July 1, 1914, Appendix P. Respectfully submitted.

HON. LINDLEY M. GARRISON,

GEO. W. GOETHALS, Governor, The Panama Canal.

Secretary of War, Washington, D. C.

APPENDIX A.

REPORT OF THE ENGINEER OF MAINTENANCE.

THE PANAMA CANAL,

OFFICE OF THE ENGINEER OF MAINTENANCE,
Balboa Heights, Canal Zone, July 15, 1915.

SIR: I have the honor to submit the following report of operations for the fiscal year ended June 30, 1915, under the supervision of the engineer of maintenance:

Col. H. F. Hodges, now brigadier general, United States Army, continued as engineer of maintenance until he was relieved from duty with The Panama Canal on January 1, 1915, on which date he was succeeded by the undersigned.

So far as matters within the jurisdiction of this office are concerned, the past fiscal year has marked the completion of constuction work and the beginning of the period of operation and mainte

nance.

The division of erection, which at the beginning of the year was charged with the completion of the various machinery installations in the locks and spillways, the construction of power plants and allied matters, was abolished on July 15, 1914. The small amount of remaining construction and installation work at the locks was turned over to the lock superintendents, and the completion of the transmission lines and the operation of the power plants to the electrical engineer. Thereafter the organization of the work under the engineer of maintenance has been as follows:

Operation and maintenance of locks. Capt. Wm. F. Endress, United States Army, superintendent of Gatun Locks, until May 1, 1915, when relieved by Capt. T. H. Dillon, United States Army; Mr. F. C. Clark, superintendent of Pedro Miguel and Miraflores Locks, with Mr. R. H. Whitehead as assistant superintendent.

The electrical division. Capt. W. H. Rose, United States Army, electrical engineer, with Mr. Hartley Rowe as electrical superintendent.

The division of municipal engineering. Mr. Geo. M. Wells, resident engineer, until the completion of the Miraflores waterworks and purification plants, when he was transferred to other duties and was succeeded by Mr. D. E. Wright as municipal engineer.

The office engineer.-Mr. A. B. Nichols, who resigned on October 12, 1914, and was succeeded by Mr. C. J. Embree.

The section of meteorology and hydrography.-Mr. F. D. Willson, chief hydrographer, with Mr. R. Z. Kirkpatrick as assistant.

The section of general surveys.-Mr. O. E. Malsbury, assistant engineer in charge.

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