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will move for a dismissal of the Rennolds appeal if the Tweedie appeal to the Supreme Court of the United States is not prosecuted. In the case of the United States v. D'Olier Engineering Co., in the United States District Court, Eastern District of Pennsylvania (W. 15368), in which judgment was rendered in favor of The Panama Canal, the decision of the lower court has been reversed by the United States Circuit Court for the Third Circuit. A motion has been made by the United States district attorney in this case for a rehearing and reargument, but the motion has not to this time been acted upon by the Circuit Court of Appeals.

In the case of the United States v. Pusey & Jones in the United States District Court, District of Delaware, involving an amount aggregating about $18,000, a settlement has been made with the defendant. Under the terms of settlement The Panama Canal will be paid the entire excess cost of repurchase of the defective boiler furnished under Washington Order 20378, together with actual damages incurred in making certain repairs, etc. The contractors will be relieved of the payment of liquidated damages for delay and will have the defective boiler returned to them at Wilmington, Del. Papers have been prepared and forwarded to the Attorney General for suit against the Norfolk Creosoting Co. under Washington Order 62879 for damages amounting to $4,276.50 as additional cost and for liquidated damages caused by said company's default under its contract to furnish and deliver 200 creosoted piles to The Panama Canal. The Attorney General has stated that suit would be brought against this contractor in the United States Court for the Eastern District of Virginia.

In the case of W. E. Thomas v. United States, for damages said to have been caused by alleged erroneous rejection of hay furnished under Washington Order 26519, the Court of Claims has rendered judgment for plaintiff for $961.73. Suit was brought for $1,111.73.

A judgment has also been rendered in favor of the D. J. Kaufman & Co. v. United States (No. 30670 in the Court of Claims) for damages in the nature of demurrage arising under the Isthmian Canal Commission's contract for sale of scrap in the year 1906. A report of the facts in this case was made to the Department of Justice prior to the time when the present assistant auditor became connected with the office of the Isthmian Canal Commission.

In the case of the Union Foundry & Machine Co. v. United States, under Washington Order 24538, wherein plaintiffs sued for $1,024.05, judgment has been rendered in favor of The Panama Canal.

In the case of the Bucyrus Co. v. United States, under Washington Order 13377, wherein suit was brought for $889.61, judgment has been rendered by the Court of Claims in favor of The Panama Canal.

In the case of Wm. F. Brothers v. United States, under Washington Order 14813, wherein claim was made for $137,600 for alleged damages said to have been caused by use of patent, judgment has been rendered by the Court of Claims in favor of The Panama Canal, claimant's petition having been dismissed.

In the case of Patrick Corr & Sons v. United States, under A. C. 1033, a report has been made to the Department of Justice of the facts in this case.

In the case of Walter S. Dickey v. United States, under various contracts, the matter is still pending. It is understood the case will be heard by the court at its fall term.

In the case of the Pelton Water Wheel Co., under Washington Orders 29725, 29725-A, and 29725-B, for $4,175.09, liquidated damages, for $1,051.43 as compensation for alleged extra work, and for interest, a report has been made to the Department of Justice of the facts in the case.

There are at this time no cases pending in any of the United States courts or in the Court of Claims upon which reports have not been prepared for transmission to the Department of Justice. It will, however, become necessary during the fiscal year ending June 30, 1918, for this office to assist the Department of Justice in the several cases now pending in those courts. This office is frequently called into consultation by attorneys representing the Government, and every possible assistance will be rendered as the needs arise.

The work of the purchasing department has been carried on in practically the same manner as fully set forth in previous annual reports, the organization being nominally under the supervision of the Chief of Engineers, United States Army, but in direct charge of an officer of the Corps of Engineers, as general purchasing officer, with headquarters at Washington, D. C.

The principal purchases have been made by the Washington office, although offices in charge of assistant purchasing agents have been continued at New York, New Orleans, and San Francisco, these latter offices having also acted as receiving and forwarding agencies for such materials as have been purchased for forwarding to the Isthmus through their respective ports. A small force of employees has been continued in the medical supply depot, United States Army, New York City, for the purpose of assisting the officer in charge in making purchases of medical and hospital supplies for the Isthmus, most of which supplies have been purchased through that depot.

The system established in the past of preliminary inspection of materials purchased has been continued and a corps of inspectors, under the supervision of the inspecting engineer, located at Washington, has been maintained. As heretofore, the work of inspection has been facilitated by assistance rendered by the field officers of the Corps of Engineers and by the Bureau of Standards, the Bureau of Mines, the Bureau of Chemistry, and the Medical Department, the Ordnance Department, the Signal Corps, and the Quartermaster Corps of the United States Army.

No independent inspection forces now remain in the United States, the last force of this character, which had charge of the inspection of the coal-handling plant, having completed its work in November, 1916.

A summary of all the orders placed through the Washington office by fiscal years 1904 to 1915, inclusive, was contained in the report for the fiscal year 1915. In the last annual report a similar summary was given for the fiscal year 1916, and at the same time it was shown that the number of orders issued in that year-the orders placed being the criterion of the amount of clerical work in the Washington office was greater than ever before. The number of orders issued

during the past fiscal year is slightly greater than in the previous year, as shown by the following comparative table:

Summary of orders placed through the Washington office of The Panama Canal in the fiscal years 1916 and 1917.

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The total value of orders placed by the Washington office in the last fiscal year was $10,403,996.08, as compared with $8,495,099.59 in 1915-16, making the grand total of purchases since 1904, $128,563,231.53.

The following is a report, as required by the act of Congress, approved July 1, 1916, showing increases in the Washington office during the fiscal year:

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Lieut. Col., Corps of Engineers, United States Army,
General Purchasing Officer, Chief of Office.

Col. CHESTER HARDING, United States Army,

Governor, The Panama Canal, Balboa Heights, Canal Zone.

APPENDIX L.

ACTS OF CONGRESS AND EXECUTIVE ORDERS RELATING TO THE PANAMA CANAL AND TO THE CANAL ZONE.

Acts of Congress:

INDEX.

Regulating the immigration of aliens to, and the residence of aliens in,
the United States, approved, by passage after veto; by the House of
Representatives, February 1, 1917; by the Senate, February 5, 1917....
Making appropriations for fortifications and other works of defense, for the
armament thereof, for the procurement of heavy ordnance for trial and
service, and for other purposes, approved February 14, 1917..
Authorizing the transfer of certain retired Army officers to the active list,
approved February 23, 1917.

Making appropriations for the Diplomatic and Consular Service for the
fiscal year ending June thirtieth, nineteen hundred and eighteen,
approved March 3, 1917...

Making appropriations for the legislative, executive, and judicial expenses of the Government for the fiscal year ending June thirtieth, nineteen hundred and eighteen, and for other purposes, approved March 3, 1917.. Making appropriations for the Department of Agriculture for the fiscal year ending June thirtieth, nineteen hundred and eighteen, approved March 4, 1917....

Making appropriations for the naval service for the fiscal year ending June
thirtieth, nineteen hundred and eighteen, and for other purposes, ap-
proved March 4, 1917....

Making appropriations to supply deficiencies in appropriations for the fiscal
year ending June thirtieth, nineteen hundred and seventeen, and prior
fiscal years, and for other purposes, approved April 17, 1917..
Amending section ten of chapter two of the Criminal Code, approved
May 7, 1917..

Authorizing the President to take over for the United States the possession
and title of any vessel within its jurisdiction, which at the time of comi
therein was owned in whole or in part by any corporation, citizen, or
subject of any nation with which the United States may be at war, or
was under register of any such nation, and for other purposes, approved
May 12, 1917.

Making appropriations for the support of the Army for the fiscal year ending June thirtieth, nineteen hundred and eighteen, and for other purposes, approved May 12, 1917...

Temporarily increasing the commissioned and warrant and enlisted strength of the Navy and Marine Corps, and for other purposes, approved May 22, 1917..

Making appropriations for sundry civil expenses of the Government for the
fiscal year ending June thirtieth, nineteen hundred and eighteen, and
for other purposes, approved June 12, 1917.....

Making appropriations to supply urgent deficiencies in appropriations for
the Military and Naval Establishments on account of war expenses for
the fiscal year ending June thirtieth, nineteen hundred and seventeen,
and for other purposes, approved June 15, 1917...
To punish acts of interference with the foreign relations, the neutrality,
and the foreign commerce of the United States, to punish espionage, and
better to enforce the criminal laws of the United States, and for other
purposes, approved June 15, 1917.

Page.

368

369

369

369

370

370

371

372

373

373

373

374

374

379

380

Acts of Congress-Continued.

To correct an error in the sundry civil appropriation act for the fiscal year
nineteen hundred and eighteen, approved June 21, 1917....
Making appropriations to supply urgent deficiencies in appropriations for
the fiscal year ending June thirtieth, nineteen hundred and eighteen,
and prior fiscal years, on account of war expenses, and for other purposes,
approved October 6, 1917..

To define, regulate, and punish trading with the enemy, and for other pur-
poses, approved October 6, 1917....

Executive orders:

Page.

391

391

392

Relating to conditions of employment in the Panama Canal service, January 15, 1917......

405

407

408

410

Authorizing the Governor of The Panama Canal to exclude certain unde-
sirables from the Canal Zone, February 6, 1917..
Relating to the exclusion of Chinese, February 6, 1917.

Fixing compensation for umpire for Joint Commission, March 20, 1917.
Control of Canal and Canal Zone during hostilities, April 9, 1917..
Proclamation by the President of the United States of America, estab-
lishing rules and regulations for the regulation, management, and pro-
tection of The Panama Canal and the maintenance of its neutrality,
May 23, 1917...

Establishing defensive sea areas for terminal ports of The Panama Canal, and providing regulations for the government of persons and vessels within said areas, August 27, 1917.....

Fixing compensation of Messrs. Burt New and George A. Connolly as members of the Joint Land Commission, September 14, 1917... Correcting Executive Order No. 2692, dated August 27, 1917, October 24, 1917....

410

411

412

414

414

ACTS OF CONGRESS AND EXECUTIVE ORDERS RELATING TO THE PANAMA CANAL AND TO THE CANAL ZONE.

An Act To regulate the immigration of aliens to, and the residence of aliens in, the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the word "alien" wherever used in this Act shall include any person not a native-born or naturalized citizen of the United States; but this definition shall not be held to include Indians of the United States not taxed or citizens of the islands under the jurisdiction of the United States. That the term "United States" as used in the title as well as in the various sections of this Act shall be construed to mean the United States, and any waters, territory, or other place subject to the jurisdiction thereof, except the Isthmian Canal Zone; but if any alien shall leave the Canal Zone or any insular possession of the United States and attempt to enter any other place under the jurisdiction of the United States, nothing contained in this Act shall be construed as permitting him to enter under any other conditions than those applicable to all aliens.

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Provided further, That whenever the President shall be satisfied that passports issued by any foreign Government to its citizens or subjects to go to any country other than the United States, or to any insular possession of the United States or to the Canal Zone, are being used for the purpose of enabling the holder to come to the continental territory of the United States to the detriment of labor conditions therein, the President shall refuse to permit such citizens or subjects of the country issuing such passports to enter the continental territory of the United States from such other country or from such insular possession or from the Canal Zone.

*

SEC. 38. That this Act, except as otherwise provided in section three, shall take effect and be enforced on and after May first, nineteen hundred and seventeen.

Passage after veto; by the House of Representatives, February 1, 1917; by the Senate, February 5, 1917. (39 Stat., 874, 878, 897.)

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