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States Veterans' Bureau [Administration] treated in Army hospitals may be paid from the funds allotted to the War Department by that bureau [Administration] under existing law. Act of Feb. 28, 1929 (45 Stat. 1871), making appropriations for support of the War Department; 38 U. S. C. 461.

The compilers of the United States Code have not followed the recommendation of the War Department (J. A. G. 010.3, November 12, 1929, page 325) that the second paragraph, based on War Department appropriation act of February 28, 1929 (45 Stat. 1371), and subsequent appropriation acts; 38 U. S. C. 461, be omitted from the Code as temporary.

The appropriation referred to in first paragraph is "Medical and Hospital Services."

The Puerto Rican Hurricane Relief Commission, established by the text of this section as published in the 1929 Edition, public resolution of December 21, 1928 (45 Stat. 1068), was abolished by public resolution of June 3, 1935 (49 Stat. 320).

2113. Services by War Department; laundries.—* * Provided, That laundry charges, other than for service now rendered without charge, shall be so adjusted that earnings in conjunction with the value placed upon service rendered without charge shall aggregate an amount at least equal to [not less than $50,000 below] the cost of maintaining and operating laundries and drycleaning plants. Title I, War Department appropriation act of Apr. 9, 1935 (49 Stat. 129).

This provision has been repeated in subsequent appropriation acts. The change indicated was made in act of July 1, 1937 (50 Stat. 450).

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2114. Services by War Department; telegraph and cable lines.vided, That commercial business may be done over these military lines under such conditions as may be deemed, by the Secretary of War, equitable and in the public interests, all receipts from such commercial business shall be accounted for and paid into the Treasury of the United States. Act of May 26, 1900 (31 Stat. 206); 48 U. 8. C. 310.

* Provided, That hereafter the Signal Corps, in its operation of military telegraph lines, cables, or radio stations, is authorized in the discretion of the Secretary of War, to collect forwarding charges due connecting commercial telegraph or radio companies for the transmission of Government radiograms or telegrams over their lines, and to this end, under such regulations as may be prescribed by the Secretary of War, it can present vouchers to disbursing officers for payment or file claims with auditors of the Treasury Department for the amount of such forwarding charges. Act of May 12, 1917 (40 Stat. 43); 10 U. 8. C. 1319.

* Provided, That hereafter the head of any department or establishment of the Government, in his discretion, may transfer in advance to the Signal Corps of the Army, from appropriations available for the transmission of messages such amounts as may be necessary to defray the expense of transmitting messages turned over by him to that corps, including the payment of toll charges of commercial carriers, the leasing of facilities required for transmitting messages, and the installation and maintenance of such facilities. Act of Apr. 15, 1926 (44 Stat. 267); 5 U. S. C. 118.

The duties of the auditors of the Treasury Department are now performed by the General Accounting Office. See 1646, ante.

2115. Services by War Department; testing machine.-The Secretary of War is hereby authorized to cause the machine built for testing iron and steel to be set up and applied to the testing of iron and steel for all persons who may desire to use it, upon the payment of a suitable fee for each test; the table of fees to be approved by the Secretary of War, and to be so adjusted from time to time as to defray the actual cost of the tests as near as may be; *. Sec. 1, act of June 20, 1878 (20 Stat. 223); 50 U. S. C. 76.

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That hereafter the tests of iron and steel and other materials for industrial purposes shall be continued, and report thereof shall be made to Congress: And provided further, That in making tests for private citizens the officer in charge may require payment in advance, and may use the funds so received in making such private tests, making full report thereof to the Chief of Ordnance; and the Chief of Ordnance shall give attention to such programme of tests as may be submitted by the American Society of Civil Engineers, and the record of such tests shall be furnished said society, to be by them published at their own expense. Act of Mar. 3, 1885 (23 Stat. 502); 50 U. S. C. 77.

2116. Services by War Department; transportation of American National Red Cross. That when the Red Cross cooperation and assistance with the land and naval forces in time of war or threatened hostilities shall have been accepted by the President, the personnel entering upon the duty specified in section one of this Act shall, while proceeding to their place of duty, while serving thereat, and while returning therefrom, be transported and subsisted at the cost and charge of the United States as civilian employees employed with the said forces, and the Red Cross supplies that may be tendered as a gift and accepted for use in the sanitary service shall be transported at the cost and charge of the United States. Sec. 2, act of April 24, 1912 (37 Stat. 91); 36 U. S. C. 11.

For sec. 1, supra, see 2171, post.

2117. Services by War Department; transportation of Naval and Marine Corps detachments.-The officers of the Quartermaster's Department shall, upon requisition of the naval or marine officer commanding any detachment of seamen or marines under orders to act on shore, in cooperation with land troops, and during the time such detachment is so acting or proceeding to act, furnish the officers and seamen with * transportation for said officers, seamen, and marines, R. S. 1135; 10 U. S. C. 76;

their baggage, provisions and cannon. 34 U. S. C. 541.

By R. S. 1619 the Marine Corps is liable to do duty in the forts and garrisons of the United States, or any other duty on shore, as the President may direct.

Similar provisions that the officers of the Subsistence Department should furnish rations to naval and marine detachments were made by R. §. 1143, ante, 2051.

2118. Services by War Department; transportation of property to departments.-* * Provided also, That hereafter the Quartermaster General and his officers, under his instructions, wherever stationed, shall receive, transport, and be responsible for all property turned over to them, or any one of them, by the officers or agents of any Government survey, for the National Museum, or for the civil or naval departments of the Government, in Washington or elsewhere, under the regulations governing the transportation of Army supplies, the amount paid for such transportation to be refunded or paid by the Bureau to which such property or stores pertain. Act of July 5, 1884 (23 Stat. 111); 10 U. S. C. 73.

The first paragraph of this section as published in the 1929 Edition, based on R. S. 1856, was expressly repealed by sec. 1, act of Mar. 3, 1933 (47 Stat. 1429).

The second paragraph, based on R. S. 1857; 48 U. S. C. 1458, is also omitted, there being no territories on which it could operate.

2119. Services by War Department; transportation for post exchange.And provided further, That hereafter no money appropriated for the support of the Army shall be expended for post gardens or exchanges, but this proviso shall not be construed to prohibit the use, by post exchanges, of public buildings or public transportation when, in the opinion of the Quartermaster General, not required for other purposes. Act of July 16, 1892 (27 Stat. 178); 10 U. S. C. 1335.

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2120. In general; National Guard.-The number of enlisted men of the National Guard to be organized under this Act be determined by the President for each Territory That the word Territory as used in this Act and in all laws relating to the land militia and National Guard shall include and apply to Hawaii, Alaska, Puerto Rico, and the Canal Zone, and the militia of the Canal Zone shall be organized under such rules and regulations, not in conflict with the provisions of this Act, as the President may prescribe. Sec. 62, act of June 3, 1916 (39 Stat. 198); 32 U. S. C. 40.

2121. In general; title to lands by prescription. That hereafter no prescription or statute of limitations shall run, or continue to run, against the title of the United States to lands in any Territory or possession or place or Territory under the jurisdiction or control of the United States, including the Philippine Islands; and that no title to any such lands of the United States or any right therein shall be acquired by adverse possession or prescription, or otherwise than by conveyance from the United States. Act of Mar. 27, 1934 (48 Stat. 507); 48 U. S. C. 1489.

2122. Alaska; laws in effect.-That the Constitution of the United States, and all the laws thereof which are not locally inapplicable, shall have the same force and effect within the said Territory as elsewhere in the United States; that all the laws of the United States heretofore passed establishing the executive and judicial departments in Alaska shall continue in full force and effect until amended or repealed by Act of Congress; that except as herein provided all laws now in force in Alaska shall continue in full force and effect until altered, amended, or repealed by Congress or by the legislature: Sec.

3, act of Aug. 24, 1912 (37 Stat. 512); 48 U. S. C. 23.

By act of April 13, 1934 (48 Stat. 583), Federal liquor prohibition laws to the extent that they were in force in Alaska were repealed, and act of territorial legislature establishing a "board of liquor control" was ratified and approved.

Act of June 29, 1936 (49 Stat. 2017), provides for retirement of employees of the Alaska Railroad who are citizens of the United States.

The act of May 31, 1938 (52 Stat. 590), creates an Alaskan International Highway Commission, to investigate and report upon the practicability of constructing a highway through Canada to connect northwestern United States with Alaska.

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2123. Alaska; foreign-controlled telegraph or cable lines.-* further, That no telegraph or cable lines owned or operated or controlled by persons not citizens of the United States, or by any foreign corporation or Government, shall be established in or permitted to enter Alaska. Act of May 26, 1900 (31 Stat. 206); 48 U. S. C. 302a.

2124. Canal Zone; laws in effect.-That all laws, orders, regulations, and ordinances adopted and promulgated in the Canal Zone by order of the President for the government and sanitation of the Canal Zone and the construction of the Panama Canal are hereby ratified and confirmed as valid and binding until Congress shall otherwise provide. Sec. 2, act of Aug. 24, 1912 (37 Stat. 561); 48 U. S. C. 1309.

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Important laws affecting the Canal Zone have been enacted as follows:

Feb. 21, 1933 (47 Stat. 859), amending Penal Code.

Feb. 21, 1933 (47 Stat. 880), amending Code of Criminal Procedure.
Feb. 27, 1933 (47 Stat. 908), Code of Civil Procedure.

Feb. 27, 1933 (47 Stat. 1124), Civil Code.

Others modifying the Organic Act, enactments by the Isthmian Canal Commission, and Executive orders, are acts of July 5, 1932 (47 Stat. 571-579); July 14, 1932 (47 Stat. 661); Feb. 16, 1933 (47 Stat. 810-818); June 19, 1934 (48 Stat. 1116), control of liquor traffic; June 19, 1934 (48 Stat. 1122) as amended by acts of June 24, 1936 (49 Stat. 1903); July 9, 1937 (50 Stat. 486); July 10, 1937 (50 Stat. 509); and August 24, 1937 (50 Stat. 750), Canal Zone Code.

Executive Order No. 6997, March 25, 1935, prescribes regulations governing the manufacture, importation, and sale of alcoholic beverages in the Canal Zone, with a special provision for areas reserved for the use of the Army and Navy.

The act of August 24, 1935 (49 Stat. 743), as amended by act of May 23, 1938 (52 Stat. 436), authorizes the erection on an appropriate site within the Canal Zone of a suitable memorial of heroic size to Major General George W. Goethals, in commemoration of his signally distinguished services in connection with the construction and operation of the Panama Canal.

An appropriation for carrying out this project is contained in section 1, War Department civil appropriation act of July 19, 1937 (50 Stat. 520).

Lands on which the Quarry Heights Military Reservation was established by previous Executive orders, were redefined and set apart as a military reservation under the control and Jurisdiction of the Secretary of War by Executive Order No. 7407, July 6, 1936. Under section 5, title 2, Canal Zone Code of June 19, 1934, supra, certain parcels of land in the Canal Zone were reserved and set apart as Fort William D. Davis Military Reservation, by Executive Order No. 7806, February 5, 1938.

Certain lands in the Canal Zone were set aside as a military reservation to be known as the Cerro Pelado Ammunition Depot by Executive Order No. 7979, September 26, 1938. Open-market purchases in amounts not exceeding $500, for the use of the Panama Canal or for use in the Canal Zone, were authorized by Governor's Circular No. 690-2, March 29, 1938 (3 F. R. 965).

Notes of Decisions

In general.--The eight-hour law, 744, | construction of the Panama Canal. (1905) ante, does not apply to the office force of the 25 Op. Atty. Gen. 441. Isthmian Canal Commission stationed on the Isthmus of Panama, or to any of the employees of the Government who are not within the ordinary meaning of the words "laborers and mechanics," but applies to the employment of laborers and mechanics in the

It does not apply to laborers and mechanics in the employment of the Panama Railroad & Steamship Line; such persons being employed by the corporation, and not by the United States. (1905) 25 Op. Atty. Gen. 465.

Clause of tariff act of August 5, 1909, providing rate of duty on articles imported into United States or any of its possessions, does not apply to the Canal Zone. (1909) 27 Op. Atty. Gen. 594.

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Status.-A suit nominally against "the Panama Canal as a public utility" and the The Panama Canal Zone is treated by the Governor of the canal, for damages sustained laws of the United States as a foreign coun- by vessels while in the canal, is a suit in try, except that the act as to extradition of tort against United States in its governpersons accused of crime (sec. 1330, title 48, mental capacity, and hence not maintainable U. S. Code) is to be considered in force in the except as consented to. Compagnie Generale Canal Zone, which shall be treated as a ter- Transatlantique v. Governor of the Panama ritory of the United States for such purposes | Canal (C. C. A., 1937), 90 F. (2d) 225. 2125. Canal Zone; contracts with Panama Railroad.-Hereafter the Panama Railway Company shall not be required to give bond, either with or without surety, in contracts which it may make to furnish services, materials, or supplies to the Army, Navy, Marine Corps, or other departments of the Government, and such contracts may be made for periods less than one year, as may be agreed on, and formal contracts in writing shall not be required unless agreed on. Sec. 6, act of Mar. 4, 1911 (36 Stat. 1452); 48 U. S. C. 1335.

Executive Order No. 7021, April 19, 1935, authorizes the Governor of the Panama Canal to arrange for the operation by the Panama Railroad Company of Panama Canal piers. By public resolution of July 10, 1937 (50 Stat. 511), the Panama Railroad Company was authorized to dispose of a portion of its holdings on Manzanillo Island, Republic of Panama, the United States to be granted sovereign rights over other areas on said Island.

Notes of Decisions

Canal is such as to constitute the Panama Railroad Company a governmental instrumentality of the United States.

In general.The construction, manage- | management and operation of the Panama ment, and operation of the Panama Canal are governmental functions, and within the constitutional power of Congress to regulate commerce and to provide for the national defense.

Such being the status of the Canal, it follows that all auxiliaries primarily designed and used to aid in its management and opcration, and which have that effect, partake of its nature, and constitute, with the Canal, a single great regulator of national and international commerce.

The Railroad Company being immune from State taxation, it necessarily results that fixed salaries and compensation paid to its officers and employees in their capacities as such are likewise immune.

The salary of the general counsel of the Panama Railroad Company held exempt from payment of a State income tax. New York ex rel Rogers v. Graves (1937), 299 U. S. 401.

The interrelation of its activities with the 2126. Canal Zone; control in time of war.-That in time of war in which the United States shall be engaged, or when, in the opinion of the President, war is imminent, such officer of the Army as the President may designate shall, upon the order of the President, assume and have exclusive authority and jurisdiction over the operation of the Panama Canal and all of its adjuncts, appendants, and appurtenances, including the entire control and government of the Canal Zone, and during a continuance of such condition the governor of the Panama Canal shall, in all respects and particulars as to the operation of such Panama Canal, and all duties, matters, and transactions affecting the Canal Zone, be subject to the order and direction of such officer of the Army. Sec. 13, act of Aug. 24, 1912 (37 Stat. 569); 48 U. S. C. 1306.

2127. Canal Zone; ferry and highway. That the Governor of the Panama Canal, under the supervision of the Secretary of War, is authorized—

(a) To establish, maintain, and operate, near the Pacific entrance of the Panama Canal, from a point at or near Balboa on the eastern side of the canal to a suitable point on the opposite shore of the canal, a ferry for the accommodation of the public and adequate to serve military needs, and for

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