By virtue of the authority vested in me by Section 5 of the Panama Canal Act, approved August 24, 1912, directing the President to "provide a method for the determination and adjustment of all claims arising out of personal injuries to employees thereafter occurring while directly engaged in actual work in connection with the construction, maintenance, operation or sanitation of the Canal, or of the Panama Railroad, or of any auxiliary canals, locks or other works necessary and convenient for the construction, maintenance, operation or sanitation of the Canal, whether such injuries result in death or not, and prescribe a schedule of compensation therefor," I hereby establish the following Order for the Canal Zone:
Section 1. The United States or the Panama Railroad Company shall pay compensation as hereinafter specified for personal injuries to their respective employees occurring after March 1st, 1913, while such employees are directly engaged in actual work in connection with the construction, maintenance, operation or sanitation of the Canal, or of the Panama Railroad, or of any auxiliary canals, locks or other works necessary and convenient for the construction, maintenance, operation or sanitation of the Canal, whether such injuries result in death or not; but no compensation shall be paid if the injury is caused (1) by the employee's intention to bring about the injury or death of himself or of another, or (2) by his intoxication.
Section 2. Compensation the exclusive remedy.—Except as provided in this order, the United States and the Panama Railroad Company shall not be liable for personal injury to or the death of an employee for which compensation is provided in Section 1 hereof.
Section 3. Waiting period.—During the first five days of disability resulting from the injury the employee shall not be entitled to compensation, except as provided in Section 9. No compensation shall at any time be paid for such period.
Section 4. Total disability.—If the injury results in total disability, there shall be paid to the employee a monthly compensation equal to fifty per cent. of his monthly pay. This compensation shall be paid during such disability, not exceeding a period of six years from the fifth day of disability of any kind resulting from the injury. After such period of six years there shall be paid to the employee during such disability a monthly compensation equal to not more than forty per cent, and not less than twenty-five per cent, of his monthly pay.
Section 5. Partial disability.—If the injury results in partial disability, there shall be paid to the employee a monthly compensation equal to fifty per cent. of the difference between his monthly pay and his wage earning capacity per month after the beginning of such partial disability. This compensation shall be paid during such disability for a period not exceeding six years from the fifth day of disability of any kind resulting from the injury. After such period of six years, there shall be paid to the employee during such disability a monthly compensation equal to not more than forty per cent. and not less than twenty-five per cent. of the difference between his monthly pay and his wage earning capacity per month after such period of six years.
Section 6. Affidavit as to wages.—After the beginning of partial disability the Governor of the Panama Canal may, from time to time, require the injured employee to make an affidavit as to the wages per month which he is receiving. In the statement of the wages the value of rent, board, lodging and other advantages received from the employer, which can be estimated in money, shall be taken into account. If the employee at any time fails to make such affidavit, he shall not be entitled to any compensation while such failure continues, and the period of such failure shall be deducted from the period during which compensation is payable to the employee.
Section 7. Refusal to work.—If the employee refuses to work after suitable work is furnished to or secured for him by the United States or the Panama Railroad Company he shall not be entitled to any compensation while such refusal continues, and the period of such refusal shall be deducted from the period during which compensation is payable to the employee.