[ Act No. 1446, January 30, 1906 ]

AN ACT GRANTING A FRANCHISE TO CHARLES M. SWIFT TO CONSTRUCT, MAINTAIN, AND OPERATE AN ELECTRIC RAILWAY, AND TO CONSTRUCT, MAIN­TAIN, AND OPERATE AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM FROM A POINT IN THE CITY OF MANILA IN AN EASTERLY DIRECTION TO THE TOWN OF PASIG, IN THE PROVINCE OF RIZAL.

By authority of the United States, be it enacted by the Philippine Commission, that:SECTION 1. A franchise is hereby granted to Charles M. Swift to construct, maintain, and operate an electric railroad, either double or single track (with the exceptions hereinafter set forth), with the necessary sidings and turn-outs, and to construct, maintain, and operate an electric light, heat, and power system along the line of said railroad and on all the streets and thoroughfares in the town of Pasig, which railroad shall begin at any point along Calle Real, Paco, Manila, between Calle Nozaleda and the San Pedro Macati road, thence along the San Pedro Macati road to a point opposite what is known as the English cemetery, and thence in an easterly direction, by private right of way. or license, to be acquired by the grantee, to the town of Pasig, in the Province of Rizal, and to such point in said town as may be agreed upon between the municipal authorities of Pasig and the grantee, and approved by the provincial board of the province, or, in case of failure to agree, then to such terminal point as may he determined upon by the Philippine Commission, crossing the Pasig River at or near the present Pasig ferry on a steel bridge to he constructed by the grantee in accordance with plans to be approved by the Director of Public Works; or on a private right of way the entire route, beginning at any point on the line of the road of the Manila Electric Railroad and Light Company on Calle Real. Paco. between Calle Nozaleda and the San Pedro Macati road and running in an easterly direction, crossing the Pasig River at the point and in the manner above provided, or, at the election of the said grantee, on a private right of way the entire route, beginning at any point on the Malate line of the Manila Electric Railroad and Light Company south of the bridge across the estero at Port San Antonio de Abad, and running in an easterly direction, across the Pasig River at the point and in the manner above provided, with the privilege in any case of connecting the said road with the present line of the Manila Electric Railroad and Light Company: Provided, That the bridge across the Pasig River above authorized shall be so constructed as to permit of its use as a wagon and foot bridge by the general public, and the general public shall be entitled to use said bridge as though the same were a public bridge without the payment of any fee or toll for  said use. The grantee shall construct the bridge complete for hisuse and for the use of the public as above provided and shall thereafter keep in good and safe repair that portion of the bridge between the outer rail and the side of the bridge, that portion between the rails, and that portion eighteen inches outside the inner rail. The remainder of the floor of the bridge shall be kept in repair by the municipality of Pasig.SEC. 2. The grantee shall have the right and privilege, and is hereby authorized, subject to the laws now or hereafter in force, not inconsistent herewith, to make all needful excavations and constructions in or upon any of the streets, thoroughfares, bridges, and public places over which the said line is authorized to run, for the purpose of placing, removing, and repairing tracks, sidings, curves, switches, and connections, and erecting poles, wires, and other overhead structures for the maintenance and operation of an electric railroad and for the generation, conduction, and distribution of electric current: Provided, That in every case where a street, thoroughfare, or other public, place is torn up or disturbed in the construction of the electric railroad, or in the erection of poles or other overhead structures for the maintenance and operation thereof or of an electric light, heat, and power system, such street, thoroughfare, or other public place shall be replaced by the grantee in good order and condition.SEC. 3. The grantee is hereby given the right to construct upon any street, thoroughfare, highway, or other public place outside of the city of Manila, a single line of track only, with the necessary sidings and. turn-outs for the convenient operation of the line, unless by resolution of the Philippine Commission lie is expressly authorized to lay a double track thereon, which double track, when constructed, shall be maintained and operated under the provisions of this franchise: Provided, That any track upon any such street, thoroughfare, highway, or other public place shall be laid to the grade of the said street or highway, and it shall be the duty of the grantee to maintain the roadbed between the rails and for eighteen inches on each side thereof in good and permanent repair to the reasonable satisfaction of the proper authorities, using such material therefor as the local authorities use for the remainder of the road: And provided further, That all such tracks shall be so laid, constructed, and maintained as not to interfere with the ordinary use by the general public of said street or highway, and to that end the same shall be so laid as to leave sufficient space on one or both sides thereof for vehicles to pass and repass without danger of collision with the cars being operated on said tracks.SEC. 4. The system of electric railroad to be installed by the grantee shall be the "overhead trolley system," but the grantee shall have the right and privilege to modify, improve, and change such system in such manner as the progress of science and improvements in, and the development of, motive power may make reasonable and proper.SEC. 5. Standard T-rails of at least sixty pounds weight per yard shall be used, and where the same shall pass through or over any street or public thoroughfare, shall be laid and maintained true to the finished grade of the said street or place; and the gauge of all tracks laid or maintained hereunder shall be four feet eight and one-half inches.SEC. 6. So much of the construction herein provided for as may be within the limits of the city of Manila as now or hereafter constituted, and upon any public road, street, highway, or place within the city limits, shall be subject to the following terms, conditions, and limitations as to construction, maintenance, and operation:

1. The grantee shall in all cases lay and maintain his tracks so as to conform to the grades of the street, thoroughfares, bridges, and public places along or across which said trucks may be constructed, and whenever such grades shall hereafter be established or altered by the municipal authorities of the city of Manila the grantee shall immediately relay and maintain said tracks to such ; established grades at his own expense: Provided, That if any grade at which any such track is now laid is altered by the said municipal authorities within seven years from the date hereof, the city of Manila shall not only furnish the material to enable the grantee to conform the bed of his tracks to the altered grade but shall also furnish the material necessary to reconstruct the cement substructure of the track of the. grantee at the new grade: And provided further, That whenever the grade at which any such track is laid is altered by the said municipal authorities after more than seven years from the date hereof, the city of Manila shall furnish the materials to enable the grantee to conform the bed of his tracks to the altered grade, less the cement substructure of the track.
2. The tracks, wires,  and  other  constructions of the grantee shall be supported- by and across all bridges in the manner directed by the municipal authorities.
3. The poles erected  by the grantee for the operation of said electric railroad shall he of such height and shall be so located and' painted as the municipal authorities shall direct. The poles shall not be of such crooked or ungainly appearance as to disfigure the streets.
4. The trolley wires of the grantee may be suspended by span wires or bracket, shall have double insulation, and shall be strung at such heights above the ground as the municipal  authorities shall direct.    Feeder wires shall be of the insulated type known as "triple braid weatherproof" and no overhead wire or conductor used as a trolley wire shall carry a voltage greater than five hundred and fifty volts, direct current, and the system  used  by the grantee in the generation, conduction, and distribution of electric current for the purpose of furnishing electric light, heat, and power shall be that known as the alternating-current system : Provided, That where it is desired to furnish heat, power, or are  lighting, direct current may be used: And provided further, That in the carrying of currents, stringing of wires, insulation, and in all other respects the grantee shall comply with the rules and regulations adopted, or hereafter to be adopted, by the National Board of Underwriters of the United States for the safeguarding of the conduct and use of electric currents in cities.
5. Every motor car run by the grantee shall be equipped with a fender of a type to be approved by the municipal authorities.
6. The maximum rate of speed at which the grantee may operate his cars shall be fixed by the municipal authorities wherever the same shall be operated over or across a public street, highway, or place.
7. Members of the police and lire departments of the city of Manila wearing official badges shall be entitled to ride free upon the cars of the grantee, subject to such reasonable and proper restrictions as may be imposed.
8. The grantee shall hold the city of Manila harmless from all claims, accounts, demands, or actions arising out of accidents or injuries, whether to property or persons, caused by the construction or operation of the road.
9. All reasonable or proper or necessary changes on the lines or routes of the grantee may be made by the grantee with the approval of the municipal authorities and the consent of the Governor-General.
10. The city of Manila shall have the privilege, without compensation, of using the poles of the grantee for the purpose of installing, ' maintaining, and operating a fire and police telegraph system.

SEC. 7. The provisions of subsections  (b),  (c),  (d), (e). (f), , (h), and (i) of section six of this Act, which in terms apply to the city of Manila, shall also be applicable as between the grantee and any municipalities through which the said electric railroad or electric light, heat, and power system may be constructed, outside of the city of Manila: Provided, however, That the powers conferred in said subsections upon the municipal authorities of the city of Manila shall be vested in the Governor-General.SEC. 8. The grantee shall, at all times, keep his tracks, rolling stock, and other construction in good condition. The grantee hereof shall, at all times, furnish and operate cars sufficient to satisfy the public demand and to carry comfortably all the members of the public desiring to ride thereon.SEC. 9. The grantee shall be liable to pay the same taxes on his real estate, buildings, plant (not including roadbed and track, rolling stock, poles, and wires), machinery, and personal property as other persons arc now or hereafter by law may be required to pay. The grantee shall further pay to the Treasurer of the Philippine Islands two and one-half per centum of the fares collected, tickets  sold, and gross receipts received from the sale of electric light, heat, and power, and two and one-half per centum of the gross receipts for transportation of freight, baggage, and express. The said percentage shall be due and payable monthly, and shall be in lieu of all taxes and assessments whatsoever, under and by whatsoever authority, upon the privileges, earnings, income, franchises, roadbed, track, rolling stock, poles, and wires of the grantee, from which taxes and assessments the grantee is hereby expressly exempted.SEC. 10. The grantee shall keep a record of all the fares collected and tickets sold and receipts from the sale of electric light, heat, and power, and from the transportation of freight, baggage, and. express, which shall be subject to the inspection of the Auditor for the Philippine Islands, who shall audit and approve the accounts of the grantee at the end of each month before the payment of the said percentage tax The accounts, when audited and approved as herein provided, shall be final and conclusive evidence of the liability of the grantee under the provisions of section nine of this Act, in the absence of fraud or mistake.SEC. 11. Whenever any franchise or right of way is granted to any other person or corporation, now or hereafter in existence, over portions of the lines and tracks of the grantee herein, the terms on which said other person or corporation shall use such right of way, and the compensation to be paid to the grantee herein by such other -person or corporation for said use, shall be fixed by the members of the Supreme Court, sitting as a board of arbitrators, the decision of a majority of whom shall be final.SEC. 12. At any time after March twenty-fourth, nineteen hundred and twenty-eight, the city of Manila or the Insular Government may purchase, and the grantee shall sell to the city of Manila or tin; Insular Government, all of his lines, tracks, cars, real estate, buildings, plant, rights under this franchise, and other property used by him in the operation of a street railway in the city of Manila or in the Province of Eizal, at a valuation based upon the -net earnings of the grantee, the valuation to be determined, after hearing evidence, by the Supreme Court of the Philippine Islands, sitting as a board of arbitrators, whose decision, by a majority of the members thereof, shall be final.SEC. 13. The franchise herein granted shall he subject to amendment, alteration, or repeal by the Congress of the United States, and the right to use the streets and other public lands herein granted shall revert to the city of Manila, to the provincial government of Rizal, to the proper municipal government, or to the Insular Government, as the case may be, upon the termination of this franchise by forfeiture, repeal, or expiration in due course.SEC. 14. It shall be a condition for the enjoyment of this franchise that Charles M. Swift, the grantee, shall, before six months from the date of the passage of this Act. form a corporation under the laws of the Philippine Islands hereafter to be passed, or under the laws of the United States or of any State thereof, and whose charter shall comply with the laws prevailing in these Islands, to take over this franchise and to perform the terms thereof to be performed by the grantee hereof, in which no stock shall be issued or bonds sold except in exchange for actual cash or for property at a fair valuation equal to the par value of the stocks or bonds so issued or sold, and in which no stock or bond dividends shall be declared, or shall transfer said franchise to the Manila Electric Railroad and Light Company within the said six months.SEC. 15. The books and accounts of such corporation shall be subject to official inspection by the Auditor for the Philippine Islands or his authorized deputies.SEC. 16. It shall not be lawful for the grantee of this franchise or any vendee thereof to use. employ, or contract for the labor of persons claimed or alleged to be held in involuntary servitude.SEC. 17. The corporation to be formed bv the said Charles M. Swift for the purpose of maintaining and operating this franchise under the laws of" the Philippine Islands shall not have power to alienate the same except by consent of the municipal authorities and the approval of the Governor-General.SEC. 18. The fare which may be charged by the grantee shall not exceed the sum of five cents, in money of the United States, for one continuous ride from one point to another on the railway herein authorized to be constructed : Provided. That a fare of seven and one-half cents in money of the United States may be charged for a ride extending from a point on the said railway through and beyond the Port William McKinley reservation in either direction. The fares charged children under sixteen years of age going to and from school shall not exceed half the ordinary rates of fare. The fares charged for children under seven years of age shall not exceed the ordinary rate of half fare. Children in arms shall ride free. The grantee shall have the power to establish reasonable regulations for indentifying those children going to and from school: Provided, That at any time after twenty-five years from the date hereof, upon due notice from the Chief Executive of the Philippine Islands to the grantee, the fares charged by the grantee may be readjusted on a reasonable basis by two arbitrators, one to be chosen by the Chief Executive of the Philippine Islands and one by the grantee, and in case of failure of the arbitrators to agree the readjustment shall be made by the Philippine Commission: And provided further, That unless arrangement shall be made by the grantee with the Manila Electric Railroad and Light Company for through cars over the lines of both companies, the grantee herein shall maintain at the point of junction a suitable station and conveniences for passengers desiring to pass from one line to the other.Electric current for the furnishing of light, heat, and power under this franchise shall be furnished under regulations of the Municipal Board of Manila to any person within the corporate limits of the city of Manila, residing or doing business within such distance from the main line conveying said current as the Municipal Board of the city of Manila shall decide to be reasonable, and to such other persons residing outside of the limits of the city of Manila and within such reasonable distance from the main line conveying such current as the Governor-General shall prescribe.SEC. 19. The construction of the electric railroad and electric light, heat, and power system herein provided for shall be completed and in operation within eighteen months from the date of the passage of this Act unless prevented by act of God, or the public enemy, usurped or military power, martial law, riot, civil commction, or inevitable cause; otherwise the franchise herein granted shall become subject to forfeiture.SEC. 20. The duration of this franchise shall be until March twenty-fourth, nineteen hundred and fifty-three, unless terminated before said date by forfeiture or surrender to the Government of the Philippine Islands.SEC.  21. The grantee shall have the right to acquire by expropriation, according to the existing laws or such as may hereafter be enacted, such real estate as may be necessary for the construction, maintenance, and operation of the railway.SEC. 22. The rates to be charged for electric current for lighting, heat, and power shall not exceed the rates authorized to be charged by the Manila Electric Railroad and Light Company in the city of Manila: Provided, however, That the rates to be charged for furnishing electric current to Fort William McKinley shall be agreed upon between the War Department of the United States and the grantee.SEC. 23. The grantee shall have the right to contract with the Manila Electric Railway and Light Company for the purchase or sale of electric current or power, and to lease from or to the Manila Electric Railway and Light Company rolling stock and other equipment, and to make such arrangements for through operation of cars as the grantee may see fit.SEC. 24. The grantee shall have the right to transport freight and express packages and baggage over his tracks and make reasonable charges for the same. The right granted in this section to carry freight and express packages and baggage over his tracks and make reasonable charges for the same may be terminated by the Philippine Commission upon one year's notice to grantee.SEC. 25. The public good requiring the speedy enactment of this bill, the passage of the same is hereby expedited in accordance with section two of "An Act prescribing the order of procedure by the Commission in the enactment of laws," passed September twenty-sixth, nineteen hundred.SEC. 26. This Act shall take effect on its passage, but the grant of the franchise shall not become operative unless the grantee shall, within ninety days after the passage hereof, file with the Governor-General his acceptance of the franchise and his agreement to comply with all the terms of this Act.Enacted, January 30, 1906.

Source: Supreme Court E-Library