[ Act No. 3132, March 06, 1924 ]

AN ACT GRANTING TO JOSE DE LA ROSA AND MANUEL ANDRES A FRANCHISE TO INSTALL, OPERATE, AND MAINTAIN AN ELECTRIC LIGHT, HEAT,' AND POWER SYSTEM IN THE MUNICIPALITY OF MASBATE. PROVINCE OF MASBATE, PHILIPPINE ISLANDS

Be it  enacted by the Senate and House of Representatives of the  Philippines in  Legislature  assembled and by the authority  of the same:SECTION 1. Subject  to the conditions  established in  this Act and the provisions of Act Numbered Thirty-one hundred and eight applicable thereto, there is hereby granted to Jose de la Rosa and Manuel Andres, their successors or assigns, for a period of fifty years from the approval of this Act, the right,  privilege, and authority to construct, maintain,  and operate an electric light, heat,  and power system, for the purpose of generating and distributing electric light,  heat, and  power for sale in the municipality of Masbate, Province of Masbate, its surroundings and barrios. The grantees shall have  the  right and privilege to install, lay, and maintain on all the streets, public thoroughfares, bridges, and public  places  of said municipality,  its surroundings  and  barrios,  poles,  conductors,  interrupters, transformers, cables, wires, and other overhead appliances, and all other necessary apparatus and appurtenances for the furnishing and distribution of electric current, and to supply, sell and furnish such current to any person, corporation or public or  private concern to produce light, heat or power, and  for any  other use to which  electricity may be put, and to  furnish  electric  light, heat,  and power within said  municipality for provincial,  municipal,  domestic  or manufacturing uses  and for any other  use  to which electricity may  be put, and to charge and collect a schedule of prices and conventional rates for the use  of same: Provided, That  said rates shall always be  subject to regulation  by Act of the Philippine Legislature or by the bodies or authorities authorized by law, and shall in no case be in excess of thirty  centavos per kilowatt: Provided, further,  That this franchise shall not take effect until the grantees shall have obtained from the Public Utility Commission  a certificate showing the public necessity and  convenience of the same, in accordance  with the purpose of subsection (i) of section  fifteen of Act Numbered Thirty-one hundred and eight, and shall have  filed such certificate with the Secretary of Commerce and  Communications upon  accepting  this franchise: And provided, further,  That  if the grantees do not file the  proper application for  said certificate with the Public Utility Commission within three months from the date of the approval of this Act,  this franchise shall become  null and void.SEC. 2.  The  concession of the  right,  privilege,  and authority mentioned in the preceding section shall not take effect unless the  grantees and their successors  or  assigns shall accept in writing and make  part of this concession the following  condition,  to wit:

"That the grantees and their successors or assigns state in writing that they are informed of the  message of the President of the United States  addressed  to the Filipino people and  communicated to said people by the Governor- General of  the Philippine Islands  on the sixth day of October,  nineteen  hundred and  thirteen,  and of the  reply message of  the Philippine Assembly made in the  name of the Filipino people and approved and sent on October sixteenth,  nineteen  hundred and thirteen;  that said grantees and  their  successors or assigns bind  themselves not to engage in  or aid,  by means of contribution in  cash or otherwise, any propaganda  directed against the policy of the Government of the United States outlined in such message of the President and the aspirations of the Filipino people set forth in said  reply message  of  the Philippine Assembly, whether under the pretext of vested interests under any other pretext,  and that said grantees and theirs successors or assigns shall further bind themselves to exact' a  similar  engagement from their administrators,  agents, successors, and assigns."

SEC. 3.  The poles erected  by the grantees  shall  be of such  a height as to maintain the wires  stretched on  the same at  a distance  of at  least twenty  feet above the level. of the ground, and  shall  be of such appearance as not to. disfigure the streets, and  shall be placed with due regard for the public safety so as not  to be a danger for the  same, in accordance with  a  plan approved by  the provincial or municipal  authorities  concerned,  represented by the provincial governor of  Masbate or the municipal president of Masbate, as the case may be, and said grantees shall supply" electric power,  heat,  and light to  any  applicant  for  the same, within  fifteen days  after the  date of his application, and as between such  applicant and other like applicants, in the order of the  date of his application, up to the limit of the capacity of the plant of said grantees,  to be  determined by the  electrical engineer of the Public Utility Commission on the application of said grantees, and should the demand for electric power, heat, and light at any time increase beyond the capacity of the  plant  of  said grantees to  supply the same,  the  capacity  of  said  plant shall be increased by said grantees to  meet such demand, with the authorization of the municipal council of Masbate first had: Provided,  however, That in  case  the  point at which  the electric light, heat or power is to be supplied, is more than- thirty meters from the  lines  or wires  operated by said grantees,  the latter shall not  be  obliged  to furnish said service.SEC. 4. All apparatus  and appurtenances used by  the grantees or thereafter by their successors or assigns shall be modern and first class in  every respect, and the electrical transmission  wires shall be insulated and carefully- connected and fastened so as not to come in direct contact with any object through which a "ground" could be formed, and shall  be  stretched so as not to interfere with the  free use of said  streets and  public thoroughfares: Provided, That  the  grantees  and their successors  or assigns shall, whenever the Philippine  Legislature or its successors, upon recommendation  of the  Public Utility Commission  or its legal  successor, so  direct, place said electric transmission wires in underground pipes  or conduits  at  their own expense, and without any cost or prejudice to  the  municipality of Masbate.SEC. 5. Whenever  it shall  be necessary  in  the  erection of said  poles  to  take up any  portion of the pavement or sidewalks of  the  public streets or thoroughfares or dig up the ground  near the sidewalks or  corners  of the  public streets or thoroughfares, then the said grantees shall, after said  poles are erected, without delay replace  said pavement or sidewalks in  the  proper manner,  removing from  the same all  rubbish,  dirt,  refuse, or  other material  which may have been placed there, taken up or dug up in the erection  of  said  poles, leaving them  in  as  good condition  as they were before the work was done;  and whenever it shall become necessary, by reason of the extension of provincial roads determined upon by the provincial  board of Masbate, or by reason of the extension of streets or plazas determined upon by the municipal council  of Masbate, to change  the  location of  said poles,  such change  shall  be made by the  grantees, their successors or assigns, at their expense,  without delay,  and said  poles shall be  placed where directed by said provincial board or said municipal council.SEC. 6. Whenever any person  has  obtained  permission to use any of the streets or public  thoroughfares  of the' municipality of  Masbate for the purpose of removing any building or in the prosecution of any municipal  work or for any other just cause, whatsoever, making it necessary to raise or remove any of said poles or electric wires which may obstruct the removal of said building or  hinder the prosecution  of said work, the said grantees  upon written notice by the municipal president of Masbate, served upon said grantees at least forty-eight hours  in advance, shall raise or  remove any  of said poles  or  wires which  may hinder the prosecution of such work or obstruct the removal of said building, so as to allow the  free  and  unobstructed passage  of  said  building and  the free and unobstructed prosecution of said  work, and the person or entity at whose  request the building has been  moved or the construction  undertaken, shall pay  one-half  of the actual cost of removing or raising and of replacing the poles, wires or  other overhead or underground conductors.  The notice shall be served in the usual form, and in case of the refusal or failure of the grantees to comply with such notice, the  municipal  president  of  Masbate, after obtaining the proper approval of the municipal council of Masbate, shall order such poles or wires to be raised or removed at the expense of said grantees, for the purposes aforesaid:  Provided, however, That the grantees  may appeal from any such decision to the provincial  board of Masbate, whose decision shall be final.SEC. 7. The grantees shall be liable to the municipality of Masbate  for  any injury arising from any  claims caused by accidents to person or property by reason  of the construction under this franchise or of any neglect or omission to keep the said poles and wires  in a safe condition.SEC. 8. Said  grantees shall file their written acceptance of this  franchise with the Secretary of  Commerce and Communications within one hundred and twenty days from the date when they obtained the certificate required by section one  of this Act, and shall  commence work under the supervision  and subject to  the  approval of  the  electrical engineer  of the Public Utility  Commission,  within six months' time from and after the date of filing such acceptance, unless prevented by act  of God  or force  majeure, usurped or military power,  martial law, riot or civil  commotion or other inevitable  cause, and shall complete the system and  have the  same in operation within eighteen months from the date of such acceptance, and  shall thereafter maintain a first-class electric light, heat, and power service:  Provided,  That in consideration of  the  franchise hereby granted, the grantees, their successors or assigns, shall pay quarterly into the municipal  treasury of Masbate one per centum of the gross earnings of their business during the first twenty years, and two per centum during the remaining thirty  years  of the life  of this  franchise.SEC. 9. Upon the acceptance of this franchise,  the grantees shall deposit in the Insular Treasury or with any  of its agents in the Province of  Masbate, one thousand pesos, or negotiable bonds of the United States  or other securities approved by the Secretary of Commerce and Communications, of the  face value of one thousand pesos, as an earnest of good faith and  a  guarantee that they will  begin the electric light, heat, and power business  and may be completely provided with the necessary  equipment therefor and ready to begin operation in  accordance with  the terms of this franchise: Provided, however, That if such deposit is in cash,  it may be made  in some  official  depository  of the Government in the name  of the grantees and  subject to the  order  of the Insular  Treasurer, who shall  retain the evidence of  the deposit so made.  In this case,  as well  as in the case of the  deposit being made in negotiable  bonds or other securities, as provided in  this section, the interest of the cash  deposit or of the bonds or  securities, if any, shall belong to  the grantees.In case such grantees, their successors or assigns shall fail, refuse or neglect, unless  prevented by fortuitous cause or force majeure, the public enemy, usurped or military power, martial law, riot, civil commotion or  other inevitable  cause, to commence the work for  the electric light, heat,  and  power service within six months from the date of the acceptance of this franchise, or shall fail  to provide the necessary equipment and be  ready  to  operate within eighteen months after the date of such  acceptance,  in  accordance with the terms of this franchise, then the deposit prescribed in this section and in the possession  of the  Insular Treasurer, whether in cash, bonds,  or other securities, shall  be forfeited to the municipal government of Masbate, as damages for the breach of the implied contract involved in the acceptance  of this franchise.  In  case the grantees, their successors  or assigns  begin to  operate the  electric light, heat,  and power service, or are ready for operation under this  franchise, within the time limits specified,  the deposit provided for in this  section shall, upon  recommendation by the Public Utility Commission  or its legal successor, be returned by the Insular Treasury to  said grantees: Provided, That the time during which such grantees, their successors or assigns have been prevented  by any  of  the causes above referred to from carrying  out  the  terms and conditions  of this franchise, shall be  added  to the time granted by this franchise for the fulfillment  of its conditions.SEC. 10. The municipality  of Masbate  shall have  the privilege, without compensation, of using the poles of  the grantees  for the purpose of installing, maintaining, and operating a telephone or fire and police alarm system;  but the wires of such- telephone or fire and police alarm system shall be placed and stretched in such manner as to cause no interference with  or damage  to the wires of the electric service of the grantees.SEC. 11. This franchise is granted with the understanding and upon  the condition  that it shall be subject  to amendment, alteration, or repeal by the Congress of the United  States as  provided  in section twenty-eight of the Act of  Congress approved  August twenty-ninth, nineteen hundred and sixteen, entitled  "An Act to  declare the purpose of the people of the United States as to the future political status  of  the people of the Philippine Islands, and to provide a more autonomous government  for those Islands,"  or by the  Philippine Legislature, and that it shall be subject, in all respects, to the limitations upon corporations and the granting of franchises contained in said Act of Congress, and that all lands or rights of use or occupation of lands secured by virtue of this franchise shall revert upon its termination to  the Insular, provincial,  or municipal governments which  were the owners thereof upon the date on which this franchise was granted,  and all property of the grantees, their successors or assigns used  in connection  with this  franchise shall become the property of the Insular Government.SEC. 12. The grantees of  this franchise are forbidden to issue stock or bonds under this franchise  except in  exchange  for actual  cash or for property at a fair valuation equal to the par value of the stock or bonds issued and upon prior authority of  the  Public  Utility  Commission.  Nor shall said  grantees declare  any stock or bond dividend.SEC.  13. The books and accounts of the grantees shall always be open to  the inspection of the provincial treasurer or his authorized  representative,  and it shall be the duty of the  grantees to submit to the provincial treasurer quarterly reports in duplicate showing the  gross receipts and the net receipts for the  quarter past and  the general condition of the business, one of which shall be forwarded  by the provincial treasurer to  the  Insular Auditor,  who shall keep the same on  file.SEC. 14. The grantees shall pay on their real estate, buildings,  plant, machinery,  and  other  personal  property  the same taxes as are  now or may hereafter be required by law from other persons.SEC.  15. The grantees may, with the  approval of  the Public  Utility  Commission first  had,  sell,  lease, donate, convey, or give in usufruct  this franchise  and all property and  rights acquired thereunder to any person or  corporation: Provided, That  for the purpose  of  such sale, lease, donation, conveyance or giving in usufruct, it shall be necessary to file in the  office of the Secretary of Commerce and Communications an  agreement  in  writing  by  which the person or corporation in whose favor such  sale, lease, donation, conveyance or giving  in usufruct is made,  shall bind himself to comply with all the  terms and conditions  imposed upon the grantees by this franchise, and to accept the same subject to  all existing terms and conditions.SEC.  16. The Public Utility Commission or its legal successor, after hearing the interested parties, upon  notice and order in writing,  shall have the power  to declare the forfeiture of this franchise and  all rights and privileges inherent in the same for failure on part of the grantees to comply with any of the terms and conditions thereof, unless such failure shall have been directly and  primarily caused by the act of God,  the public  enemy, or force  majeure. Against such declaration of forfeiture by the Public Utility' Commission or its legal successor, the grantees may apply for the remedies  provided in  section thirty-five of  Act Numbered  Thirty-one  hundred  and eight.SEC. 17.  At any time after twenty years from the date of this Act, the Government  of the Philippine Islands or any political subdivision thereof to which  the right may be assigned, may purchase, and  the grantees shall sell all of their plant, poles, wires, buildings, real estate, and all other property used in  the  enjoyment  of this franchise,  at a valuation based upon the net earnings of  the grantees, the valuation  to be  determined,  after hearing  evidence,  by the Supreme Court of the Islands, sitting as a board of arbitrators, whose decision, by a  majority  of the  members thereof, shall be final.SEC. 18.  Wherever in this franchise the term "grantees" is used, it shall be understood to mean Jose de la Rosa and Manuel Andres,  their  representatives, successors, or  assigns.SEC. 19.  This Act shall take effect on its approval.Approved, March 6, 1924.

Source: Supreme Court E-Library