File No. 4108/4–8.

Minister Squiers to the Secretary of State.

No. 66.]

Sir: I have the honor to bring to the attention of the department two communications from H. G. Bierd, general manager of the Panama Railroad Company, dated December 20 and January 11, respectively, with regard to the settlement of estates of deceased employees of the railroad company who die outside of the Canal Zone. Mr. Bierd desired that the estates of such persons be settled by the United States consular officers in whose consular districts the deaths occur.

I referred Mr. Bierd’s letters to Consul-General Shanklin here, and to Acting Consul Hyatt at Colon, and beg to inclose copies of their respective replies.

Act No. 24, section 1, of “Laws of the Canal Zone,” provides that—

Whenever a citizen of the United States, who is an employee in the service of the Isthmian Canal Commission or the government of the Canal Zone, or any branch thereof, shall die in the Canal Zone, Isthmus of Panama, leaving an estate in said zone, or in the Republic of Panama, no part of which is real estate, and the entire assets belonging to said estate are personal property, and not exceeding in value the sum of five hundred dollars, and regular administration, in accordance with the provisions of law, shall not have been instituted in a court of competent jurisdiction of the Canal Zone, the collector of revenues for the Canal Zone, Isthmus of Panama, is authorized and it is hereby made his duty to take possession of the estate of such deceased person and to make a complete inventory thereof, and to file the same with the auditor of the Canal Zone, Isthmus of Panama.

but it does not seem to provide for the administration of the estates of deceased persons in the service of the Panama Railroad Company.

It appears to me that the simplest solution of the question would be to extend the limits of two consular districts so that their jurisdiction would include all the territory of the Republic of Panama outside of the Canal Zone. Therefore I recommend that the two consular districts be extended to include all of the Republic of Panama, giving consular jurisdiction over the estates of deceased Americans who die outside the limits of the Canal Zone.

I have, etc.,

H. G. Squiers.
[Inclosure 1.]

The general manager of the Panama Railroad Company to Minister Squiers.

Dear Sir: It has been the custom for the Panama Railroad Company for a number of years to have the settlement of the estates of deceased employees made by the American consul at Colon. This method of procedure is now being objected to by the present consul, as he claims settlement should be made by Col. Tom M. Cooke, administrator of estates of the Isthmian Canal Commission.

[Page 938]

We have never been informed that Mr. Cooke was to perform this function of making settlement of the estates of deceased American employees of the railroad company, and, if it can be done, I would be greatly obliged if the American consul should be instructed to make settlements of the estates of railroad employees as heretofore.

My object in asking you to have this arrangement continued is that it is very much more convenient for us, and I do not think that Mr. Cooke has ever received instructions to take over the settlement of deceased railroad employees’ estates.

Yours, truly,

W. G. Bierd,
General Manager.
[Inclosure 2.]

General manager of the Panama Railroad Company to Minister Squiers.

Dear Sir: I beg to acknowledge receipt of your communication of the 7th instant, No. 16, replying to mine of the 20th ultimo, in regard to the administration of estates of deceased Americans who may have been in the service of the Panama Railroad Company.

I note that you have advised Mr. Hyatt, vice-consul at colon, that he should take charge of the estates of all Americans who die within the limits of his consular district. I am informed that Mr. Hyatt’s district does not extend to any points in the Canal Zone. Under this ruling we are denied the services of the consul or of anyone else in making settlements of the estates of deceased employees of the Panama Railroad Company who may die in the Canal Zone.

I do not know whether it will be inconsistent to ask you to have Mr. Hyatt’s jurisdiction extended, as far as the settlement of estates is concerned, to points within the Canal Zone. If this is done it would make it possible for us to rely upon the consul at Colon for the settlement of estates of all Americans deceased while in the employ of the railroad company. If this is not done I do not know to whom we can apply for the settlement of estates of railroad employees who may die in the Canal Zone, inasmuch as the administrator of estates in the commission service has jurisdiction only in the settlement of estates of Isthmian Canal Commission employees.

Very truly, yours,

W. G. Bierd,
General Manager.
[Inclosure 3.]

Vice-Consul Hyatt to Minister Squiers.

Sir: I beg to acknowledge receipt of your favor of January 14, inclosing copy of a letter received from Mr. W. G. Bierd, general manager Panama Railroad Company, with regard to settlement of estates of deceased persons in the employ of the Panama Railroad Company.

As you are aware, consul at Colon is only appointed for the Province of Colon, Republic of Panama. Consular Regulations, paragraph 30, page 12, states: “In no case whatever is a consular officer authorized to take jurisdiction of consular business outside of the state from the Government from which he receives his exequatur.” Revised Statutes of the United States, section 1695, states: “The President is authorized to define the extent of country to be embraced in any consulate.” Consul at Colon received exequatur from the Republic of Panama for the State of Colon, and appointment from the State Department is for the Province of Colon only.

In my opinion it would not be legal, and would lead to all kinds of complications, for consul at Colon or Panama to attempt to usurp the powers of the Canal Zone courts, which clearly have jurisdiction in administering estates of deceased persons in the Canal Zone. We can not dodge the jurisdiction of the circuit courts in the Canal Zone in cases of this kind. I would refer you to act 1, section 24, clause 5 of the zone laws, giving circuit courts jurisdiction [Page 939] over estates of persons dying within limits of Canal Zone; and to act 24, giving official administrator jurisdiction over the estates of Isthmian Canal Commission employees. The only way that I can see that consul could administer on estates of Panama Railroad employees dying in the Canal Zone would be for an arrangement to be made with the circuit judges to appoint consuls to administer said estates, and even then I think consuls would have to act in a private capacity and not as consuls of the United States. Another Question that would have to be considered is whether the State Department would want to be bothered with handling accounts, finding rightful heirs, etc., of deceased Americans dying in the Canal Zone, when all the Panama Railroad Company has to do is to notify judge of particular circuit in which employee died, and thereby throw all trouble and responsibility on circuit judge, where it rightfully belongs.

I am always anxious to assist the Panama Railroad Company in any way possible, but do not think we can legally handle estates of their employees who die outside of our jurisdiction.

I would suggest the following plan for the Panama Railroad Company to pursue in such cases, which I think would simplify matters and be satisfactory to circuit court judges: Let Mr. Bierd select one of his employees to handle estates of all persons in the employ of the Panama Railroad Company who die outside of consular jurisdiction, and immediately on the death of an employee Mr. Bierd can apply to circuit judge to have person whom he has selected appointed to administer estate. This the circuit judge has a right to do, and estate would be settled according to laws of the Canal Zone.

Sincerely, yours,

J. M. Hyatt.
[Inclosure 4.]

Consul-General Shanklin to Minister Squiers.

Sir: Referring to our conversation of several days ago, in the matter of the consul at Colon having, at first, declined to take charge of the estate of a deceased American citizen who died while in the employ of the Panama Railroad Company, I have to advise that on my taking charge of this consulate-general I found the Isthmian Canal Commission had appointed an administrator of estates, and was notified that he was authorized and that it was his duty to take charge of the estates of all deceased Americans who died while in the employ of the Isthmian Canal Commission, if said estates were valued at less than $500 American money, but was given to understand that this did not cover estates of deceased Americans who died while in the employ of the Panama Railroad Company. I have acted accordingly, but I take it that the question will soon solve itself in that, as you are aware, the Isthmian Canal Commission will, it is said, take over the Panama Railroad, so that all men employed by the Government on the Canal Zone will be Isthmian Canal employees, and its administrator of estates will have charge of settling same until it reaches the $500.

I am, etc.,

Arnold Shanklin.