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.