Under an act of Congress, approved on Aug. 24, 1912, the Pan ama canal is governed and operated, and the canal zone is gov erned through a governor of the Panama canal, appointed by the president, with the approval of the senate, for a term of four years, at a salary of $io,000 a year. In addition to the operation of the canal, the governor has official control and jurisdiction over the canal zone and performs all duties in connection with its civil government, it being held, treated and governed as an adjunct to the canal. There is one United States District court in the canal zone, with the same jurisdiction and procedure as the same courts in the United States, the judge of which is appointed by the president. Appeals are made to the Circuit Court of Appeals of the Fifth Circuit of the United States. At Balboa and Cristobal there is a magistrate's court for minor cases, the judges being appointed by the governor. Col. Goethals was appointed first governor of the Panama canal when the permanent organiza tion was formed, and served until Jan. 11, 1917. Since that time there have been six governors of the Panama canal, all of whom have been officers of the Corps of Engineers, United States Army. The six governors and their terms of office are : Col. Chester Harding, Jan. 12, 1917, to March 27, 1921; Col. Jay J. Morrow, March 28, 1921, to Oct. 15, 1924; Col. Meriwether L. Walker, Oct. 16, 1924, to Oct. 15, 1928; Col. Harry Burgess, Oct. 16, 1928, to Oct. 20, 1932; Col. Julian L. Schley, Oct. 21, 1932, to Aug. 26, 1936; and Brig. Gen. Clarence S. Ridley, who was appointed gov ernor on Aug. 27, 1936.
The organization on the Isthmus includes a number of depart ments and divisions in charge of the various activities, as follows: Department of Operation and Maintenance, including the Marine Division, Mechanical Division, Dredging Division, Section of Lock Operation, Electrical Division, Division of Municipal Engi neering, Fortifications Division, and several sections ; the Supply Department, made up of the Quartermaster section, Commissary Division, Cattle Industry and Plantations, and Hotels Washington and Tivoli ; the Accounting Department, the Health Department ; the Executive Department and the Panama Railroad. The Pan ama canal has an office in Washington, D.C., and the Panama Railroad Co. has an office at 24 State st., New York.
A census of the canal zone taken in June 1939 showed a total civil population of 28,978. The civilians included 2,809 adult male Americans, 3,384 American women, 2,786 American children and people of other nationalities as follows : men, 6,945 ; women, 5,014; children, 8,040. The working force at the end of June 1939 numbered 14,757, of whom 3,511 were Americans, chiefly in offi cial and clerical positions and skilled trades, and 11,246 were native labourers.
Previous to March 1, 1938, tolls were assessed as follows: (I) on merchant vessels carrying passengers or cargo, $1.2o per net vessel ton (each ioo cu.ft.) of actual earning capacity as deter mined by the Panama canal rules of measurement; (2) on vessels in ballast without passengers or cargo $.72 per net vessel ton so determined but in no case, however, as provided under the Panama Canal Act, could the amount collected exceed $1.25, nor be less than $.75, times the net tonnage of the vessel as determined under the United States rules of measurement. (This method, involving, as it did, two sets of measurement rules, was known as the dual system) ; (3) on naval vessels other than transports, colliers, hospital, and supply ships $.5o per displacement ton.
Effective March 1, 1938, under Act of Congress (Public No. 35o, 75th Congress, approved Aug. 24, 1937) the dual system was abol ished and the Panama canal rules of measurement prescribed by the President became the sole basis of determining tolls charges with rates established by proclamation as follows : (1) on mer chant vessels, when carrying passengers or cargo, $.90 per net vessel ton (Ioo cu.ft.) of actual earning capacity—that is, the net tonnage determined in accordance with the rules for the meas urement of vessels for the Panama canal; (2) on vessels in ballast without passengers or cargo $.72 per net vessel ton; (3) on other floating craft, including warships other than transports, colliers, hospital ships, and supply ships, $.5o per ton of displacement. Under provision of the aforesaid Public No. 35o, the basic rules of measurement prescribed by proclamation may be changed only after public hearings and six months' public notice of such change and the rates of toll must not exceed $1.00 nor be less than $.6o per net vessel ton. Once established, the rates' cannot be changed unless six months' notice thereof is given by the President by proclamation.
With the abolishment of the dual system, with•its inherent in equities, the revision of the Panama canal rules along liberal lines, and the reduction in the laden rate, all effective March 1, 1938, a system of tolls collection has been established at the Panama canal considered fair and equitable to all concerned.