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Statement showing requisitions for material and supplies on hand in purchasing department on February 1, 1905 not ordered-Continued.

Zone req-
uisition.

364 A

367A

378A

375A

376A

377C

382A

418A

418A..

418A..

a Letter, chief engineer.

b Letter, general quartermaster.

e Letter, chief office, by direction chairman.

From the foregoing statement it will be seen that there were on hand June 1, 1905, the following requisitions for material and supplies not ordered: One dated October, 1904; 1 dated November, 1904; 11 dated February, 1905; 24 dated March, 1905; 3 dated April, 1905; 12 dated May, 1905; total, 52,

EXHIBIT 14.

[H. R. 16986, Fifty-eighth Congress, third session.]

AN ACT to provide for the government of the Canal Zone, the construction of the Panama Canal, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the zone of land and land under water of the width of ten miles, extending to the dis tance of five miles on each side of the center line of the route of the canal to be constructed thereon, which said zone begins in the Carib bean Sea three marine miles from mean low water mark and extends to and across the Isthmus of Panama into the Pacific Ocean to the distance of three marine miles from mean low water mark, excluding therefrom the cities of Panama and Colon and the harbors adjacent to said cities; but including all islands within said described limits, and in addition thereto the group of islands in the Bay of Panama named Perico, Naos, Culebra, and Flamenco, and any lands and waters outside of said limits above described which may be necessary and con venient for the construction, maintenance, operation, sanitation, and protection of the said canal, or of any auxiliary canals or other works necessary and convenient for the construction, maintenance, operation, sanitation, and protection of said enterprise, the use, occupation, and control whereof were granted to the United States by the treaty between the United States and the Republie of Panama, the ratifica tions of which were exchanged on the twenty sixth day of February, nineteen hundred and four, shall be hereafter known and described as the Canal Zone, and the canal to be constructed thereon shall be known and described as the Panama Canal.

SEO. 2. That until the expiration of the session of the Fifty-ninth Congress, beginning the first Monday of December, nineteen hundred and five, unless other provision be sooner made by Congress, all the military, civil, and judicial powers of the United States in said the Canal Zone at Panama, including the power to make and enforce all rules and regulations necessary for the government of the Canal Zone, and all the rights, powers, and authority granted by the terms of the treaty aforesaid to the United States shall be vested in the President of the United States and may be by him to the United States by the terms of the treaty between the United States and the Republic of Panama, the ratifications of which were exchanged on the twenty-sixth day of February, nineteen hundred and four, are vested in such person or persons, and shall be exercised in such manner, as the President shall direct for the government of said Canal Zone and maintaining and protecting the inhabitants thereof in the free enjoyment of their liberty, property, and religion.

SEC. 3. That the President, through one of the Executive Depart ments of the Government to be designated by him, or otherwise in his discretion, shall cause to be excavated, constructed, and completed in said Canal Zone a ship canal between the Caribbean Sea and the Pacifie Ocean, utilizing to that end, as far as practicable, the work heretofore done by the New Panama Canal Company of France and its predeces sor company. Such canal shall be of sufficient capacity and depth as shall afford convenient passage for vessels of the largest tonnage and

greatest draft now in use, and such as may be reasonably anticipated, and shall be supplied with all necessary locks and other appliances to meet the necessities of vessels passing through the same from ocean to .oecan; and he shall also cause to be constructed such safe and commo dious harbors at the termini of said canal and make such provision for defense as may be necessary for the safety and protection of said eanal and harbors; and he shall also, whenever the right so to do has been aequired, cause the Panama Railroad and the property and rights appertaining thereto to be managed and operated in such manner as may be deemed desirable. The President is hereby authorized, for the purposes described in this Act, to appoint and employ such per sons with such official designations, as he may deem necessary from time to time, and to dismiss the same, and to fix their compensation until such time as Congress may by law regulate the same; and the President is further authorized to employ and assign such offices with suitable equipment as may, in his discretion, be necessary and proper to carry out the purposes of this Act, and to fix the compensation for the same until Congress may by law otherwise provide.

SEC. 42. That the President shall annually, and at such other periods as may be provided, either by law or by his order, or by either House of Congress, require full and complete reports to be made to him by the persons appointed or employed by him in charge of the government of said Canal Zone, the construction of said the Panama Canal, and the operation of said the Panama Railroad, including an itemized account of all moneys received and expended, which said reports shall be by the President transmitted to Congress or to either House thereof, as may be requested. And any of the persons appointed or employed by the President in connection with the said government or the said work of construction or operation shall give to Congress or to either House of Congress such information as may at any time be required either by Act of Congress or by the order of either House of Congress in relation to their respective aetings and doings and the receipt and expenditure of money. The President shall annually cause to be made, by the persons appointed and employed by him in charge of the government of said Canal Zone and the construction of said canal, estimates of expenditures and appropriations, in detail as far as practicable, which estimates shall be submitted to Congress in the manner provided in section five of the Act entitled "An Act making appropriations for the legislative, executive, and judicial expenses of the Government for the fiscal year ending June thirtieth, nineteen hundred and two, and for other purposes. And after the thirtieth day of June, nineteen hundred and six, no money shall be expended for any of the purposes named in this Act except in accordance with appropriations hereafter made by Congress, except that the moneys received, in the ordinary course of business, from the operation of the Panama Railroad and the property and rights appertaining thereto may be expended, so far as necessary, in defraying the expenses of such operation, including maintenance, without being covered into the Treasury of the United States, and such moneys are hereby appro priated for such purpose, and monthly reports of such receipts and expenditures shall be made to the President by the person or persons in charge. All income at any time received by the United States from rentals, dividends, or otherwise in respect of any property now possessed or hereafter acquired in connection with the canal, the railroad, or other

works, shall be turned into and credited to the fund for the construction of said canal and works.

SEC. 5. That so much of the Aet entitled "An Act to provide for the construction of a canal connecting the waters of the Atlantic and Pacific oceans," approved June twenty eighth, nineteen hundred and two, as provides for the appointment of the Isthmian Canal Commis sion, and fixing its duties and powers, is hereby repealed.

SEC. 63. That whereas the Panama Railroad Company is a domestic corporation of the State of New York, organized and existing under and by virtue of the laws of said State with principal place of business in the city of New York in said State; and whereas the corporate stock of said Panama Railroad Company is divided into seventy thousand shares of the face value of one hundred dollars each, and the United States now owns sixty-eight thousand nine hundred and sixty-four shares thereof of the face value of six million eight hundred and ninety-six thousand four hundred dollars, leaving a balance of one thousand and thirty-six shares of the face value of one hundred and three thousand six hundred dollars still subject to private ownership; and whereas the public use and necessity requires for the accomplishment of the public work and national endeavor entered upon pursuant to the Act of Congress approved June twenty-eighth, nineteen hundred and two, entitled "An Act to provide for the construction of a canal connecting the waters of the Atlantic and Pacific oceans," that the United States should own and control all of the shares of the corporate stock of the Panama Railroad Company: Now, therefore, be it further enacted that the President of the United States is hereby authorized to cause to be instituted in the name and for and on behalf of the United States, and as an exercise of the right of eminent domain, judicial proceedings to condemn for public use the share or shares of the corporate stock of the Panama Railroad Company owned by any person, corporation, association, or concern other than the United States of America.

SEC. 74. That exclusive jurisdiction to maintain, conduct, hear, and determine said proceedings, effect the sale, transfer, and conveyance of said property, and enter and enforce final judgment and decree therein, is hereby conferred upon the United States district court for the southern district of the State of New York.

SEC. 85. That the condemnation proceedings herein provided for shall be instituted and conducted in the name of the United States of America. Said condemnation proceedings shall be against the person or persons, corporation, association, firm, or other concern owning said stock or having an interest therein, if such owner or party in interest is known, and also the person or persons, corporation, association, firm, or other concern in whose name or names the share or shares of stock sought to be condemned stand on the stock register of the Panama Railroad Company, all of whom may be joined in one proceeding. The proceedings may be instituted by filing in said court a petition setting forth the general purpose of the action, a description of the property sought to be condemned for the public use, the serial number of the stock certificates issued by the Panama Railroad Company for the stock sought to be subjected to the proceedings, and prayer for judgment and decree of condemnation of the property and transfer of right and title thereto to the United States.

SEC. 96. That notice of the commencement and pendency of said proceedings shall be given the owner or owners of said corporate stock

by service, as follows: The clerk of the court shall issue a notice under his seal setting forth the character of the proceedings, the court in which the proceedings are instituted and pending, the serial number of the stock certificate, and the number of shares of stock sought to be affected; said notice shall fix and set forth a date not less than sixty. days from the date on which said notice is issued, on which date the United States will apply to the court for the appointment of appraisers of said stock, and deliver said notice to the marshal of the court, who shall serve the same, as follows: If a stockholder named as a defendant is found in said judicial district, there shall be delivered to and left with him a copy of said notice, with a copy of the petition attached; if a stockholder named as a defendant has his usual place of residence in said judicial district, service of said notice may be had by leaving a copy of the notice, with copy of the petition attached, at such place of residence. A copy of said notice, with copy of the petition attached, shall be delivered to and left with the president of said Panama Railroad Company or other managing officer in charge of the general office of said railroad company in the city and State of New York. Said notice shall also be published in one issue of each week for four consecutive weeks in two daily newspapers of general circulation in said judicial district. The marshal shall make due return within thirty days of his action respecting said notice. If it shall appear from the marshal's return that he was unable to secure service on the defendants, or any of them, within said judicial district, by delivering a copy of said notice to such defendant or defendants, or by leaving such copy at their usual place of residence, then it shall be sufficient for the jurisdiction of the court to attach if it shall appear that a copy of said notice, with copy of the petition attached, has been delivered to and left with the president of the Panama Railroad Company or other managing officer in charge of the general office of said railroad company in the city and State of New York, and also that publication of said notice has been made as herein provided. On the date set forth in said notice for that purpose, if the court be in session, and, if not, then on the first day of the next subsequent convening of the court, the court shall appoint three appraisers who, before entering upon the performance of their duties, shall take and subscribe an oath before the clerk of the court wherein the proceedings are instituted that they will each support the Constitution of the United States and will faithfully perform their duties as appraisers, which oath shall be filed in the court. Evidence of the value of the property sought to be condemned may be presented by either party before the appraisers upon reasonable such notice to the opposite party as the court shall prescribe, and for this purpose the appraisers may subpoena witnesses and compel their attendance and compel the production of books and papers. The appraisers shall assess the value of said stock and shall forthwith make full and accurate report to the court, in writing, of all proceedings under said appointment, but none of their proceedings shall be effectual to bind the property or transfer the title until the court shall have accepted said. report and rendered judgment thereon. Upon the filing of such report in court, the court shall, upon hearing, such notice as the court shall direct being first given to the opposite party, at a time and place to be fixed by the court, accept the same and render judgment in accordance therewith, or for cause shown, the court may recommit the report to the appraisers for further report of facts; or it may accept the report in part and reject or recommit in part, and may make such

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