Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-08-03
CANAL ZONES STATUS.
Nos rart OF the United States Con-
troller Traceweii Decides. 80

washington, July SIR. J. Traceweu
t IN. controller of the Treasury. has iust
handed down decision rcgar,iInr the
which %, Oh .ne Panama Canal zone. In
Wh.Tn ne announces that II Is moi "A mart
OF tne United States within the meaning
OF the Constitution and the laws ~ ms
ouu.f'rH. Hls opinion makes clearer. how
ever. the extensive power delegated !. hv
congress to the Pres dent who is Virtual
~ the sole arb err of the destinies ~ the
zone zone under existing legislation.4 1t is also
the zone will enjoy as the result Of the
appiication Of the tarir laws OF this
revenues OF the United States and ex-
pended for the sole benefit of the zonc,
,ihSplylhE 10 questions from Admiral
Walker. the chairman Of the Isthmian
says In part:
The instructions of the President stated
ny you relate to the carrying on of the
s3vernment of the canal zone and the use
OF the local revenues of said zone. A la
not wholly clear just what was msynt
by the words local revenues of the
zone. 1t would seem. however, that
what was contemplated were moneys de-
ton; etc. local to the zone. as distin-
guished from miscellaneous receipts
which might be collected as incident 70
the direct operation of building the canal
ana the use of Congressional appropra-
ton. l believe this Is the correct con
struction of the language used by the
President, and the answer will be pre-
Dictated upon that view.
by the terms of this section Congress
has for the time being specifically au-
thorizcd and directed that all ihe rights.
powers and authority which accrued to
the United States as under the treaty IL
question he vested In and exercised by
the President and such pcreons- as he may
select. No restrictions or limitations are
imposed and until Congress by expresses
legislation shall have prescribed the form
Of government for said zone, the will and
sound discretion Of the President and hts
commission Will control. subject only to
the general spirit and purpose of the Con
stitution of the United States H. !;
1T must be borne In mind that Congress
has not by any specific act Gxsnded inc
statutes of the United States to said ter
ritory. Some legislation must first be had
to that effect before they can be made
fully applicable to the canal zone,
I'm the case OF Downes nGainst Bid
well ns2 Y. s.. PAD the court said, Quoting
from the syllabus;
LIVERY function of the government be
ing thus derived from the Constitution. 1t
follows that that instrument Is every
where and at all times potential In 50 far
as It's provisions are applicable.
THE meaning of these words Is. az ]
understand it. that the general spirit and
purpose Of the Constitution would be APP
plicable in the canal zone.
cit would seem from the logic OF TINS ne
cision that the local government ol the
canal zone must be YES ed IN the lreSl.
dent and the commission mentioned ana
that said zone Is not n part Of the United
states within the full meaning Of the
and laws of the country
The local revenue of said zone must,
therefore. be handled In accordance WIN
e,,ch r,,,oe and regulations ~ the PreSi-
dent and the commission may authorlzs.
II does not seem necessary 10 uecins
v neither those revenues are In gei'e,a'
senee moneys of the United States. ne.
cause am Of opinion that they are not
such moneys of the United states . as are
to be accounted Tor 10 tne ,x,n,,
nrv Department, but that the accoun.'nE
for said local revenues must DE. u.n"
nnder such rules and regulations as tne
president and the commission Shhii p
scr;,e a report of the same being maue
-. &c President and TO Congress- as re-
quoted by the Act of June 2s. 'av2' ..s