president of the Panama Canal Company. The Canal Zone had its own police force (the Canal Zone Police), courts, and judges (the United States District Court for the Canal Zone). Despite being an unincorporated territory, the Canal Zone was never granted a congressional delegate. Everyone worked for the company or the government in one form or another. Residents did not own their homes; instead, they rented houses assigned primarily based on seniority in the zone. When an employee moved away, the house would be listed and employees could apply for it. The utility companies were also managed by the company. There were no independent stores; goods were brought in and sold at stores run by the company, such as a commissary, housewares, and so forth. In 1952 the Panama Canal Company was required to go on a break-even basis in an announcement made in the form of the president's budget submission to the United States Congress. Though company officials had been involved in previewing the requirement, there was no disclosure in advance, even though the Bureau of the Budget directed that the new régime become effective on March 1. The company organization was realigned into three main divisions; Canal Activity and Commercial Activity with the Service Activity providing services to both operating activities at rates sufficient to recover costs. Rate adjustments in housing and other employee services would be required and a form of valuation, compared to a property tax, would be used to determine each division's contribution to the Canal Zone Government. Territory Panama Canal Zone was located within the territory of Panama, consisting of the Panama Canal and an area generally extending on each side of the centerline, but excluding Panama City and Colón, which would have otherwise fallen in part within the limits of the Canal Zone. When artificial lakes were created to assure a steady supply of water for the locks, those lakes were included within the zone. Its border spanned two of the provinces of Panama: Colón and Panamá. The total area of the territory was 553 square miles (1,430 km2). Although it was a United States territory, the zone did not have formal boundary restrictions on Panamanians transiting to either half of their country, or for any other visitors. A Panama Canal fence did exist along the main highway, although it was only a safety measure to separate pedestrians from traffic, and some of