[ Act No. 3180, November 25, 1924 ]

AN ACT GRANTING A FRANCHISE TO FAR EASTERN RADIO, INCORPORATED, FOR THE ESTABLISHMENT, MAINTENANCE, AND OPERATION OF RADIO BROADCASTING AND RADIO-TELEPHONIC AND RADIO-TELEGRAPHIC COMMERCIAL SERVICES, AND PRESCRIBING THE CONDITIONS THEREOF.

Be  it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and  by the authority of  the sameSECTION  1. There is hereby granted  to Far Eastern Radio,  Incorporated, a  corporation  duly organized under the laws of the Philippine Islands, its successors or assigns, herein referred to as the "grantee," a franchise to establish,  maintain,  and  operate  radio-telegraphic and  radio-telephonic transmitting and receiving stations in the Philippine Islands for the following purposes :(a) The broadcasting  to  the  general  public of  news, governmental messages,  instruction,  entertainment, and open public communications of all kinds.(b) The sending of commercial  messages from  points within the Philippine  Islands to  points exterior thereto, including vessels even  though such vessels be located within the territorial  waters  of the Philippine Islands, and the receiving of commercial messages from such exterior points.SEC. 2.  The broadcasting service shall be open to the general public upon  payment of  the  established broadcasting rates and subject to the general regulations  of the grantee for the allotment  of  time and the class of communications acceptable for broadcasting.  The  Government of the Philippine Islands,  hereinafter  referred to as the "grantor," or any branch thereof, shall have  priority of service when the public welfare shall require it.   The Secretary of Commerce and  Communications shall determine  the occasions when the public welfare requires such priority.SEC. 3. The grantee, by the acceptance of this franchise, agrees to do, perform, and accept the following:(a)  Within  one year  from the  date  of acceptance of this franchise to have in  satisfactory operation an efficient radio-telephonic broadcasting station of sufficient power to reach  all points in the  Philippine Islands under  normal static  conditions.(b)  Within one year from the date of the  acceptance of this franchise to have in satisfactory operation one or more radio-telegraphic stations having  an effective range under normal static conditions of  not less  than one  thousand five hundred miles.(c)  Within one  year  from  the date of the  acceptance of this  franchise to provide efficient receiving and  transmitting apparatus and service, adequate to meet the reasonable  public  demand  for radio-telegraphic  commercial service.(d)  To improve and augment its apparatus  in conformity with the progress of radio science and practice.(e)  To recognize the jurisdiction of the Government of the Philippine Islands, through its  duly  empowered  agencies, to regulate the charges and rates for its services, and to regulate and at any time to inspect the books of accounts of the grantee.(f)  To recognize the jurisdiction of the Government of the Philippine Islands to require that an application be submitted and approved before installing any  radio station, and  to determine by  general regulations the  wave lengths which shall be  used by  the different types of service effective within the Philippine Islands, so long  as such regulations shall specify the  exclusive  use by the grantee of wave lengths for each of  its  services, commercial  radio- telegraphic, commercial radio-telephonic, and  broadcasting, respectively, which wave lengths shall be sufficiently inclusive to reasonably preclude interference by  other stations and  so as to permit expansion of  the grantee's services.SEC. 4. The grantee is authorized during  the  period of five  years commencing with the date  of the  acceptance of this franchise, and thereafter until otherwise ordered by competent public authority, to charge  not exceeding the following rates for service.(a)  For the use of the broadcasting service, such rates as competent public authority may approve.(b)  For radio-telegraphic and radio-telephonic commercial  service to and from points exterior to the Philippine Islands, as hereinbefore described:(1)  For radio-telegraphic messages, the rates  shall conform to those  fixed  by  the international conventions to which the United States of America or the Government of the Philippine Islands shall be a party; or in default thereof reasonable rates which shall not exceed the  existing cable rates.(2)  For radio-telephonic communications the rates shall conform to  those fixed  by  the international  conventions to which the United States of  America or the Government of the Philippine  Islands  shall be a party; or in default thereof, rates equivalent to the telegraphic rates, computed on the basis of twelve words  of  telegraphy a minute. Sec. 5. Nothing mentioned  in  the  preceding sections shall be construed as to give the grantee authority to offer lower rates  than those now charged or will be charged by the Bureau of Posts for  ship to shore  service.SEC. 6. The  Director  of Posts  and the management  of; any public or private operating telegraphic or telephonic' services  within the Philippine Islands may upon agreement   with   the  grantee  provide  for  the  relaying  of communications over  and by  means  of  their  respective apparatus, under  such  terms  as  to rates and division  of income as competent authority may approve.SEC. 7. Nothing in this Act  shall prohibit the gratuitous broadcasting by the grantee  of programs of general public interest  for the purpose of  stimulating the public appreciation of, and interest in, radio telephony.SEC. 8. Subject to the  limitations  and  procedure prescribed by law, the grantee is authorized to exercise the right  of  eminent domain,  in so far as may be reasonably necessary to further the establishment and efficient  maintenance and operation of its radio stations and connecting them  one to another, and with the prior approval of the Governor-General, the grantee is authorized to construct and maintain its works of public utility and service over and across the public property of the United States, including streets,  highways,  squares, and  reservations,  and  over similar property of the Government of the Philippine Islands and its branches.SEC. 9. As a condition of the granting of this franchise, the grantee shall execute a bond in favor of the grantor in the sum  of fifty thousand pesos in a form and with sureties satisfactory to the Secretary of Commerce and  Communications,  conditioned upon  the  faithful  performance of the grantee's obligations hereunder during the first five years of the life of this franchise.  If,  after five years from the date of the acceptance of this franchise the  grantee shall have fulfilled said obligations,  or  so soon thereafter as the grantee  shall have fulfilled same the bond aforesaid shall be cancelled by the Secretary  of Commerce and  Communications.SEC. 10. With the exception of the  privileges of broadcasting and of transmitting and receiving communications to and from points exterior to the Philippines as hereinbefore granted, all radio  communications between points or stations  within the Philippine Islands  is expressly reserved to the Government of the Philippine Islands.  But as  a further  condition  of this  franchise the Director of Posts may require the grantee to transmit and receive radio messages between said grantee's stations within the  Philippine Islands,  under contract  whereby  the grantee shall receive not exceeding  ninety per cent of the established tolls  or rates  charged by the Bureau of Posts therefor.   Such tolls shall be  those agreed upon between the Director of Posts and the  grantee,  or  in  default of agreement those  established  by the Public Utility Commissioner In the event the services, or facilities of the grantee are contracted for as herein stipulated, all officers and employees of the grantee  shall be considered as officers and  employees  of  the Bureau of Posts in respect to their criminal liability under the  Postal Law.SEC. 11. This  franchise is subject to amendment, alteration  or repeal  by the Congress of the United States of America or by the Philippine Legislature.  The grantee is forbidden  to  declare stock or bond dividends or to issue stocks or bonds, 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.SEC. 12. In case of war, insurrection, or general public disorder the  Government of the  United States may, by order  of the Secretary  of  War,  take possession  of and operate any or  all radio  stations of the grantee,  paying unto said grantee reasonable compensation therefor.  Under  the said  circumstances  and conditions  the Governor- General may exercise the same power.SEC. 13. Acceptance of this franchise shall  be given in writing within  six months after the approval  of this  Act. When  so accepted by the grantee and the bond aforesaid approved by  the Secretary of Commerce and Communications,  the  grantee  shall be  empowered to  exercise  the privileges granted hereby. The grantee, its successors or assigns shall set forth in writing in  their acceptance of this franchise that they  are aware of the aspirations of the  Filipino  people  to become a  free  and  independent nation; and that said grantee,  its successors or assigns, undertake  not to engage  nor assist, directly or indirectly, whether by money contributions or otherwise, in attempts contrary to  said aspirations, either under the pretext of vested interests or any other pretext whatsoever, and  that said grantee, its successors or  assigns, undertake, furthermore,  to require a like obligation from  their  administrators, agents, attorneys, officials, and other employees.SEC. 14.  Any violation  of the conditions imposed  by this Act  shall be sufficient cause  for  the  cancellation  of  the franchise  by means  of  a proceeding instituted  by  the Attorney-General,  in the  name and as the representative of the Philippine Islands, in the  Court  of  First Instance of the City  of  Manila, upon which jurisdiction is hereby conferred.SEC. 15. The  life of this franchise shall be for a period of fifty years from-the date of its acceptance;  but  at  any time after twenty-five years from such date  the grantor shall have the right, upon one  year's notice, to acquire this franchise by acquiring all the physical  properties  of the grantee pertaining to the exercise of this franchise at their judicially determined value.SEC. 16. The grantee, its successors or assigns, shall be liable  to pay the same taxes on their real estate, buildings, and personal property, exclusive of the franchise, as other persons or corporations are now or hereafter may be required by law to pay.   The grantee, its successors or assigns, shall further pay the Collector  of Internal Revenue  each year,  and  pursuant  to the  regulations of the Bureau of Internal Revenue one and one-half per centum of its share of the gross receipts for business transacted  under  this franchise, and said percentage shall be in lieu of all other taxes on the  franchise or  earnings thereof.SEC.  17. This  franchise  is  granted upon the  condition that the same shall not  be construed as to exclude other person  or  persons or corporations from similarly  acquiring like concessions and privileges here  granted.SEC.  18. This  Act shall take effect upon its approval.Approved, November 25,  1924.

Source: Supreme Court E-Library