New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-07-29
CANAL ZONES STATUS.
PRESIDENT CONTROLS 1T.
Not Part of the United States, Con-
troILer Trace5ceU Decides.
tyRo4 THE TRIBUNE BUREAU

washincton, July 2S.-R J. TraceweI, the
Controller OF the Treasury. has just HANDED
ccw. @ decision regarding the status OF the
Panama Canal zone IN which ne announces
that Il is not part OF the United states WITHIN
the meaning OF the Constitution and the laws
of tbs country. His opinion makes clearer how
ever, the extensive power delegated by Congress
70 the President, who is virtually the sole arol-
Ter OF the destin!es OF the zone under existing
legislation. Il IS also demonstrated that the
revenues which the zone viii enjoy as me re-
suit Of the application OF the tariff laws OF this
country are 10 be kept distinct from the reve-
nuos OF the United States and expended for the
sole benefit OF the zone.
Replying to questions from Admiral Walker.
the chairman OF the Isthmian Canal commission
Controller TraceWeu says in part:
The instructions OF the President stated by
you relate 10 the carrying on OF the government
OF the canal zone ana the use Of the local reVe-
nues OF said zone. 1t is not wholly clear Just
what was meant By the words local revenues
of the zone" II would seem, however, that what
was contemplated were moneys derived from
the various sources Of taxation etc, local TO the
zone, as distinguished from miscellaneous re-
ceipts which might be collected as incident TO
The direct operation OF building the canal and
che use OF a Congressional appropriation / be-
9ieve this is the correct construction or the ian
xuage used 10y the President, and the answer
viii be predicated upon that view.
By the terms Oe this section Congress has Tor
she time being specifically authorized and direct
I'd that al the rights powers and authority
which accrued 10 the United states as under the
treaty In question be vested In and exercised by
1ke President and such persons as he may Sc
iect. NO restrictions or limitations are imposed,
End until Congress by express legislation shall
have prescribed the form Of government for said
zone, the VIII and sound discretion Of the Presi-
dent and his commission viii control subject
only 10 the general spirit and purpose Of the
Constitution Of the United States.
IL must be borne In mind that Congress has
not by any specific act extended the application
Of -l-a Cons fTaafi ion nd
States TO said territory. Some legislation must
first be had to that effect before they can be
made fully applicable 70 the canal zone.
In the case Of Downes against Bidwen Oe2
L. S, 249 the court said, quoting from the
syllabus:
Every function % the government being thus de-
rived from Constitution, it follows that that in
strument is everywhere and at all times potential
IN so far as its provisions are applicable
The meaning Of these words is as under
stand it, that the general spirit and purpose Of
the Constitution would he applicable IN the
canal zone.
IT would seem from the logic OF this decision
that the local government of the canal zone must
be vested in the President and the commission
mentioned, and that said zone is not a part OF
the United States within the full meaning of the
Constitution and laws Of the country The local
revenues OF said zone must, therefore, be handled
in accordance with such rules and regulations
rs the President and the commission may au-
thorize. 1t does not seem necessary 10 decide
whether those revenues are, tn general sense,
moneys of the United States, because | am or
opinion that they are not such moneys Of the
United States required TO be accounted
for TO the Treasury Department, but that The
accounting for said local revenues must be done
under such rules and regulations as the PreSi-
dent and the commission shall prescribe, re-
port Of the same being made 10 the President
and TO Congress. as required by the Act OF JuAe
- 1902.