Memorandum for the Solicitor. Department of COMMERCE, The division has by reference a letter from the chairman of the Committee on Interstate and Foreign Commerce of the House of Representatives, with which he submits H. R. 14074 upon which a report is desired. The existing radio law requiring radio apparatus on ships applies to the ports of the United States, Alaska, Hawaii, and Porto Rico, but not to the Canal Zone, the Virgin Islands, or the Philippines. During the fiscal year 1930, 6,185 ships passed through the canal, or a total net tonnage of 29,980,614. With the records available it is not possible to state how many of these vessels carry 50 or more persons. I think it is safe to assume that a considerable number of the foreign vessels did not touch at American ports where the radio apparatus could be inspected and if they did stop at American ports the nearest ports to the Canal Zone where radio inspectors are assigned are Los Angeles about 3,000 miles, New Orleans about 1,400 miles, and Norfolk about 1,800 miles. In view of the above this office can see no objection to the enactment of the proposed legislation. However, to make it effective it would be necessary to place one or more radio inspectors at either Cristobal or Balboa. The accompanying papers are returned as requested. The SECRETARY OF COMMERCE. W. D. TERRELL, Director of Radio. BUREAU OF THE BUDGET, Washington, December 19, 1930. MY DEAR MR. SECRETARY: I have your letter of the 12th instant with reference to H. R. 14074, a bill to regulate radio equipment on ocean-going vessels using the ports of the Canal Zone. You are advised that the expenditure contemplated by this proposed legisla tion would not be in conflict with the financial program of the President. The inclosures accompanying your communication are returned herewith, as requested. Sincerely yours, J. CLAWSON ROOP, Director. This bill is one of a number of bills that have been approved and recommended by the Secretary of War and the President in pursuance of the act of May 17, 1928, providing for the revision and codification of the laws of the Canal Zone. The work of preparing the new Code of Laws for the Canal Zone has been carried on continuously since the passage of that act and is now substantially completed and will be ready to be presented to Congress by the President as soon as certain revisions or changes in the law that have been found to be desirable have been approved by Congress. On September 25, 1925, certain executive orders were issued by the President relating to the Panama Canal and putting into effect Rules Governing the Navigation of the Panama Canal and Adjacent Waters. Rules Nos. 171 and 172 of the Executive order pertain to requirements for radio equipment. It is considered that the President was without authority to define the offense and prescribe the punishment contained in said rules, and this bill is filed for the purpose of validating by congressional enactment those rules. Rules Nos. 171 and 172 of the Executive order of September 25, 1925, are herewith inserted with minor perfecting amendments indicated. [Matter stricken out inclosed in brackets and new matter in italic Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That [P Rule 171. Radio Equipment Required:] it shall be unlawful for any [sea] ocean-going vessel carrying 50 or more persons, including passengers and crew, to leave or attempt to leave any part of the Canal Zone unless such vessel shall be equipped with an efficient apparatus for radio communication, in good working order, in charge of a person skilled in the use of such apparatus, which apparatus shall be capable of transmitting and receiving messages for a distance of at least 100 miles, night or day. This requirement shall not apply to vessels merely transiting the canal or to vessels plying between Canal Zone ports and ports less than 200 miles therefrom. [Rule 172. Penalty:] Sec. 2. That any vessel leaving or attempting to leave a Canal Zone port not equipped as required by [the preceding rule] section 1 of this act shall be liable to a fine not to exceed [five thousand dollars ($5,000 D], and each and such departure or attempted departure shall constitute a separate offense. Fines shall be recovered in the district court of the Canal Zone, and the amount so recovered shall be a lien upon such vessel, and it may be seized and sold to satisfy same, as well as all costs of the court proceedings. This bill has been prepared and recommended by the various authorities charged with the duty of recommending proposed changes in the Canal Zone laws, and has been submitted to and approved by the Secretary of War, the Director of Radio, and the Director of the Budget, and the Department of Justice, and its enactment is recommended by the President. O INSPECTION OF VESSELS NAVIGATING CANAL ZONE WATERS FEBRUARY 21, 1931.-Referred to the House Calendar and ordered to be printed Mr. DENISON, from the Committee on Interstate and Foreign Commerce, submitted the following REPORT [To accompany H. R. 14075] The Committee on Interstate and Foreign Commerce, to whom was referred the bill (H. R. 14075) to provide for the inspection of vessels navigating Canal Zone waters, having considered the same, report thereon with a recommendation that it pass. The bill has the approval of the President and the Secretary of War, as will appear by the letter attached. This bill is one of a number of bills that have been approved and recommended by the Secretary of War and the President in pursuance of the act of May 17, 1928, providing for the revision and codification of the laws of the Canal Zone. The work of preparing the new Code of Laws for the Canal Zone has been carried on continuously since the passage of that act and is now substantially completed and will be ready to be presented to Congress by the President as soon as certain revisions or changes in the law that have been found to be desirable have been approved by Congress. On September 25, 1925, certain Executive orders were issued by the President relating to the Panama Canal and putting into effect rules governing the navigation of the Panama Canal and adjacent waters. Rules Nos. 160, 162 to 164, and 166 to 170 of the rules governing the navigation of the Panama Canal and adjacent waters pertain particularly to inspection of vessels. It is considered that the President was without Executive authority to define the offenses specified in the rules and prescribe the punishment therefor and this bill is filed in order to validate those rules by congressional enactment. The rules that are to be validated are herewith inserted with minor amendments indicated, so that when approved by Congress they will be allocated to their proper place in the Canal Zone Code: [Matter stricken out inclosed in black brackets. New matter in italic] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, [Rule 160. Inspection of Hulls, Boilers, Equipment, and Passenger Accommodations:] That all vessels navigating the waters of the Canal Zone, except public vessels of all nations, and private vessels merely transiting the canal, shall be subject to an annual inspection of hulls, boilers, machinery, equipment, and passenger accommodations; and the governor is hereby authorized to prescribe regulations concerning such inspection, provided that such regulations shall, as nearly as practicable, conform to the laws and regulations governing the Steamboat Inspection Service of the United States. [Rule 162.] SEC. 2. A foreign vessel of a country which has inspection laws approximating those of the United States, having an unexpired certificate of inspection duly issued by the authorities of the said country, shall not be subjected to an inspection other than that necessary to determine if the vessel, boilers, and life-saving equipment are as stated in the certificate of inspection; but no such certificate of inspection shall be accepted as evidence of lawful inspection unless like privileges are granted to vessels of the United States under the laws of the country to which such vessel belongs. [Rule 163. Issuing of Certificate] Sec. 3. When the board of local inspectors of the Panama Canal approves a vessel and its equipment, a certificate of inspection, in triplicate, will be issued by the canal authorities, two copies of which shall be displayed in conspicous places in the vessel where they are most likely to be observed by passengers and others, and there kept at all times framed under glass. [Rule 164.] Sec. 4. Should the board of local inspectors not approve the vessel or its equipment, a certificate of inspection will be refused, and the board of local inspectors will make a statement in writing giving the reason for failure to approve, filing such statement in the records of the board, and giving a copy thereof to the owner, agent, or master of the vessel. [Rule 166. Penalty:] Sec. 5. Any vessel, other than those excepted in [Rule 160] section 1 of this act, that navigates the waters of the Canal Zone without having an unexpired certificate of inspection issued by the canal authorities or by the Steamboat Inspection Service of the United States, or an unexpired certificate accepted by the canal authorities under [Rule 162] section 2 of this act, shall be subject to a fine not exceeding [one thousand dollars ($1,000)] $1,000; and whenever any passenger is received on board a vessel not having certified copies of the certificate of inspection placed and kept as required by [Řule 163] section 3 of this act, or [who shall receive] whenever passengers are received on board a vessel in excess of the number authorized by said certificate of inspection, such vessel shall be liable to a fine not exceeding [one hundred dollars ($100)] $100 for each passenger so received. Fines shall be recovered in the district court of the Canal Zone, and the amount so recovered shall be a lien upon such vessel, and it may be seized and sold to satisfy same, as well as the costs of the court proceedings. [Rule 167. Revocation of Certificate.] Sec. 6. In case a vessel holding an unexpired certificate issued by the canal authorities shall change its condition as to hull, boilers, machinery, equipment, or accommodations for passengers in such manner as not to conform to the regulations under which such certificate was issued, the board of local inspectors is authorized to make an inspection and to recommend revocation of the certificate of inspection, and upon approval of such recommendation by the marine superintendent, or such other officer of the Panama Canal as may be designated by the governor, a notice of revocation will be issued to the owner, agent, or master of the vessel; and after such notice of revocation the navigating of Canal Zone waters by such vessel shall subject it to the penalty prescribed by [Rule 166] section 5 of this act. [Rule 168. Small vessels engaged in local navigation in Canal Zone waters:] Sec. 7. Other than public vessels of the United States or of the Republic of Panama, small vessels propelled in whole or in part by machinery shall be required to be registered, certificated, and numbered, and to display the numbers assigned in a conspicuous place in prescribed form. Such vessels shall not be operated except by an operator holding a license to operate, issued after exami |