CHAPTER XXI

THE CANAL ZONE GOVERNMENT

The Canal Zone is a strip of territory ten miles wide, its irregular

lines following the course of the canal, which is its axis. Over this

zone the United States, under its treaty with Panama, exercises

jurisdiction "as if it were sovereign." The American Government was

unwilling to undertake the great and expensive work of constructing

the canal without having this guaranty to protect it from possible

harassment at the hands of the Panaman authorities.

One of the first tasks that confronted the United States authorities

when they entered upon the work of building the canal was that of

providing a civil government for this territory named by law the Canal

Zone. Postal facilities had to be provided; a police system had to be

established; customs offices were required; fire protection was

necessary; a court system was needed; a school system was demanded;

and, in short, a sort of territorial government had to be put in

operation before the work of building the canal could go forward

satisfactorily.

This government was established in 1904 under the direction of Major

General George W. Davis, the first governor of the Canal Zone. From

time to time it was extended and improved. More than half of this was

appropriated out of the Treasury of the United States, and the

remainder collected in the operations of the government. In addition

to directing the government of the Zone, the head of the department of

civil administration was the titular representative of the Canal

Commission in all matters in which the commission and the Republic of

Panama had a mutual interest. However, in practice, the Panaman

Government looked directly to the chairman and chief engineer on all

important matters.

One of the earliest and most important subjects requiring their

cooperation was that of sanitation in the cities of Panama and Colon.

The United States agreed to advance money for building sewer and water

systems, and for street improvements, in the two principal cities of

the Republic, on condition that the Republic of Panama and the two

cities would reimburse the United States Treasury through the water

rents. The street improvements were to be paid for in 10 years, and

the sewer and water systems in 50 years; in the meantime the United

States was to be allowed 2 per cent interest on the money advanced.

This amortization of the Republic's debt for these improvements has

been going steadily forward.

In laying out the government of the Canal Zone it was thought wise to

adhere as closely to Spanish laws and customs as was expedient under

the new conditions. In view of this consideration the methods of

taxation on the Canal Zone were allowed to remain largely the same as

under the old Spanish laws of Colombia. Likewise the Spanish system

of judicial procedure was adhered to during the early years of the

construction period. It was not, indeed, until 1908 that the right of

trial by jury was established in the Canal Zone. At that time former

Senator J. C. S. Blackburn, of Kentucky, was at the head of the

department of civil administration, and he regarded it as repugnant to

American ideas of justice to deny to Americans on the Isthmus the

right to be tried for felonious offenses by juries of their peers.

Upon his representations President Roosevelt issued an executive order

extending the right of trial by jury to the Canal Zone, and that order

was effective after 1908.

With the early opening of the canal it became advisable for Congress

to determine the future policy of the United States toward the Canal

Zone, and to lay out a system of government there which would meet the

needs of the future. It was determined that the Canal Zone should be

used for the operation of the canal, rather than for a habitation for

such settlers as might choose to go there. Hence the provision was

made that the President of the United States should have the right to

determine how many settlements there should be on the Canal Zone and

how many people should be permitted to live there.

It will be the policy of the United States to discourage general

settlement and to maintain only such towns as are necessary for the

operation of the big waterway, granting only revocable leases to any

outsiders when it is deemed advisable to allow them to occupy land

within the Zone. There will be only five settlements in the Zone, if

present plans are carried out: One at Cristobal, one at Gatun, one at

Pedro Miguel, one at Corozal, and the settlement at Ancon and Balboa

at the Pacific terminus of the canal. The total number of people who

will reside in these settlements will probably not exceed 10,000, a

material reduction from the 62,000 living on the Zone in 1912. Those

who are still there, but who will not be needed in the permanent

organization, will be repatriated at the expense of the United States

Government. In 1912 there were approximately 31,000 British subjects

on the Zone, practically all of them negroes from the British West

Indian islands and British Guiana. The great majority of these will be

carried back to their homes, as will all of the 4,300 Spaniards who

desire to return. There were nearly 12,000 Americans on the Zone at

that time, and perhaps two-thirds of them will leave before 1915.

There were nearly 8,000 Panamans on the Zone and most of them will go

to the cities of Panama and Colon, or upon the Government lands owned

by the Panama Republic outside of the Zone.

The work of clearing the Zone of its population was begun early in

1913. A joint land commission was appointed to adjudicate the claims

of those Panamans who were living within the Zone on lands that were

needed for the operation of the canal. This commission consisted,

under the treaty existing between the two countries, of two Americans

and two Panamans. In their work they first took up the claims of the

poorer classes who had nothing but a thatched hut and a small patch of

ground. The commission visited the various parts of the Zone and

fixed the value of such holdings. The people were given free

transportation over the Panama Railroad, and usually were allowed from

$50 to $100 for their homes. They preferred to move in colonies, so

the Republic of Panama laid out small towns away from the Canal Zone

for them. These natives, usually almost full-blooded Indians, were

treated as kindly and as considerately as conditions would allow. They

were willing to "fold their tents" like the Arabs, and leave their

homes behind as they went out to conquer new ones in the jungles where

the needs of a gigantic waterway could not encroach upon them.

The claims for lands which have to be taken from individuals by the

United States will aggregate a half million dollars. As the Panaman

Government allows homesteading on Government lands at a cost of about

a dollar an acre, and as there are tens of thousands of acres of

better land outside of the Canal Zone than inside, the policy of the

United States in freeing this strip from native population will not

work any great injury to the people.

During the construction period the laws under which the people of the

Zone lived were made in three different ways. Of course, Congress as

the legislative assembly was always supreme. But under the laws passed

by it, the President of the United States was empowered to issue

executive orders covering points not touched by congressional

legislation, and under his instructions the Secretary of War could

promulgate certain orders. In addition to this, the Canal Commission

had a right to serve as a sort of local legislature. During the year

1912 sixteen executive orders pertaining to the Canal Zone were signed

by the President and the Secretary of War, while five ordinances were

promulgated by the Isthmian Canal Commission during the same period.

The court system under the construction-period government consisted of

district courts, circuit courts, and a supreme court. There were five

district judges and three circuit judges; and the circuit judges

sitting together constituted the supreme court, from whose decisions

there was no appeal. Under the permanent law there will be a

magistrate's court in each town, which will have exclusive, original

jurisdiction in all civil cases involving not more than $300, and of

all criminal cases where the punishment does not exceed a fine of a

hundred dollars or 30 days in jail, or both. Its jurisdiction will

include all violations of police regulations and ordinances, and all

actions involving possession or title to personal property or the

forcible entry and detainer of real estate. These magistrates and the

constables under them will serve for terms of four years. There will

be a district court which will sit at the two terminal towns with the

usual court officers. The circuit court of appeals of the fifth

circuit of the United States will be the court to which appeals from

the district court will be carried.

The postal service of the Canal Zone is practically identical with

that of the United States. The revenues collected from the sale of

stamps and postal cards amounted to $87,550 in 1912. Nearly a quarter

of a million money orders were issued during that year, representing

a total of approximately $5,000,000. A postal savings bank system is

also maintained, a counterpart of the one in the United States.

All mail matter sent from the Canal Zone bears Panaman stamps

countermarked by the Canal Zone government. When the United States

established the postal system at Panama, American postage was used.

The Panamans were very much dissatisfied with such a procedure,

however, since it deprived them of a large share of their postal

revenue. Their postal rates to the United States were those of the

universal postal union--5 cents per ounce or fraction thereof on all

first-class mail matter. The rate from the Canal Zone Was only 2

cents. The result was that the citizens of Panama and Colon would not

patronize their own post offices, but carried their mail across the

line to the post offices at Ancon and Cristobal where they could mail

their letters at the 2-cent rate. The Panaman Government protested

against this, and it was agreed by the Americans that in the future

all mail matter should carry Panaman postage stamps. These are

furnished to the Canal Zone government at 40 per cent of their face

value. In this way the share of the Republic of Panama in the postal

receipts of 1912 amounted to nearly $33,000.

President Roosevelt selected one of his "rough riders," George R.

Shanton, to establish the police force on the Zone. This police force

was selected generally from men who had seen service in the United

States Army and had made good records there. In 1912 the force

consisted of 117 first-class white policemen, 116 colored policemen,

20 corporals, 8 sergeants, 7 lieutenants, and 2 inspectors, besides a

chief of police and an assistant chief of police. During that year

7,055 arrests were made, 70 per cent of which resulted in convictions.

Police stations were maintained at all settlements along the line. A

penitentiary was located at Culebra where approximately 140 convicts

were confined. The penitentiary had to be removed owing to slides at

Culebra Cut, and the men were put to work on the roads of the Canal

Zone. They were kept in well-guarded stockades at night.

When Judge Henry A. Gudger was made a member of the judicial system of

the Canal Zone he believed that it would be the scene of unusual

lawlessness; he thought it would be a dumping ground for lawless

people from all parts of the world. He therefore believed in strong

repressive measures, and his earlier sentences were made heavy with

that end in view. He found later, however, that the opposite was true.

Under the system of quartering the canal help there was comparatively

little mixing of the races. The negroes lived to themselves, the

Spaniards to themselves, and the Americans to themselves; therefore,

racial friction was largely overcome. The lawless found the Canal Zone

a desirable place to shun. Judge Gudger soon discovered that severe

measures were unnecessary, and in recommending pardons frequently

stated that he had imposed sentences heavier than necessary to carry

out the repressive policies he had in mind.

A well-organized, paid fire department was maintained from the

beginning and it was supplemented by volunteer companies in many

places. In a number of towns fire engines of the latest automobile

type were installed. Out of 300 fire alarms in 1912, nearly 200 were

for fires in Government property valued at one and three-quarters

million dollars, while the total loss was only $5,000.

The school system of the Canal Zone was laid out along the same lines

that characterized all other activities for the welfare of the people

who were engaged in building the canal. It was founded by Charles E.

Magoon when he was governor of the Zone, and in 1912 had 75 teachers

and officials, with an enrollment of 2,105, of whom nearly 1,200 were

white. The standard required of the teachers was maintained at a high

point. Of the 48 white teachers employed in 1912, 13 held degrees from

colleges and universities, 19 held diplomas from standard normal

schools, and 12 others had enjoyed at least two years of normal

teaching. The white children on the Zone were given free

transportation to and from the schools. Those who had to go on the

railroad to reach their schools were given free passes. Those who

attended the schools in their own neighborhood were gathered up in

wagons and transported to school.

The system of roads for the parts of the Canal Zone adjacent to the

canal itself was built mainly by convict labor at comparatively little

cost. They have been useful to the natives in getting their few

products to market, and during the years to come will be available as

military roads for use in the defense of the Zone. These roads are

built according to the best American standards and are almost the only

real roads in the entire Republic. The Panaman Government has extended

one road from the Zone line to old Panama, and for a few miles into

the interior, but aside from this national road activities have been

few indeed.

The American road from Panama to the Zone boundary, leading toward old

Panama, over the savannahs, is the pleasure highway of the Republic.

It is practically the only road in the Republic where one drives for

pleasure, and here every automobile in Panama City is pressed into

service during the late afternoon and the evening. The elite of the

capital city own summer homes along this road. These homes are by no

means as elaborate as the summer homes along the Hudson, but the fact

that they were seated amidst veritable gardens of flowers gives them

an air of beauty and restfulness attractive even to the most blase

traveler.

The water-supply system of the Canal Zone consists of a number of

reservoirs on the watersheds of the Isthmus where no human habitations

are allowed, and where trespassing is forbidden. The waters are

examined for bacteria and other properties once each month, and a

report thereon is made to the proper officials. Twice each month a

physical examination of each reservoir, and the land from which it

receives its water, is made by inspectors who report all conditions to

the sanitary and other authorities. If there is any sign of

contamination, steps to overcome the trouble are taken immediately.

Where the reservoirs fill up to the spillway the waste water is not

allowed to go over the top, but is drawn out from the bottom in order

that the under layers of water may be the ones wasted. Water drawn out

for domestic purposes is taken from the top wherever possible. The

water has a somewhat unpleasant taste to people newly arrived upon the

Isthmus, and in some cases serves to disturb the digestive tract, but

to the people who become accustomed to it the unpleasant flavor, due

to the presence of decayed vegetation, is forgotten, and the workers

on the Canal Zone frequently declare they miss the Panama water when

they go back to the States.

The permanent Government of the Canal Zone will be, in the main,

merely a miniature of the government during the construction period.

The law providing for the operation of the canal makes this Government

entirely subsidiary to the main purpose for which the canal was built.

It provides that when war is in prospect the President may appoint a

military officer to take charge of the Canal Zone, and to conduct its

affairs as they might be conducted were the Zone nothing more than a

military reservation. The Government will have its headquarters at the

Pacific end of the canal where Balboa, the principal permanent town on

the Isthmus, will be located. This little American city will be

Government-built and Government-owned, and it will be the smallest of

all the world's capitals.

[Illustration: SMOKE FROM HEATED ROCKS IN CULEBRA CUT]

[Illustration: TOM M. COOKE

THE POST OFFICE, ANCON]

Under the new Government all old laws, not specifically repealed,

or contrary to the new ones, will be continued in force. All executive

orders issued by the President, and all orders and ordinances

promulgated by the Canal Commission, during the construction period,

not inconsistent with the act creating a permanent form of government,

are made laws of the Canal Zone to continue as such until specifically

repealed by act of Congress.

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