[ Act No. 3215, December 06, 1924 ]

AN ACT GRANTING TO GABRIEL T. HERNANDEZ A FRANCHISE TO INSTALL, OPERATE, AND MAINTAIN AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM IN THE MUNICIPALITY OF DAET, PROVINCE OF CAMARINES NORTE, 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  Gabriel  T. Hernandez, his successors,  or assigns, for a period of twenty-five  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 within the  limits  of the municipality of  Daet, Province of Camarines Norte, and  its surroundings and barrios. The grantee shall further have  the right and privilege to install, lay, and  maintain on all the streets, public thoroughfares, bridges,  and public  places of said municipality and 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  or  furnish 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 entities or authorities authorized  by law, and shall  be in no  case in excess of thirty  centavos per kilowatt hour: Provided, further,  That this franchise; shall not take  effect until the grantee 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  grantee does not file the proper application for said certificate with the Public Utility Commission within one year 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 grantee and his  successors or assigns shall accept in writing and make part of this concession the following condition, to wit:"That the grantee and his 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, nine teen hundred and thirteen; that said grantee and his 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 or under any other pretext, and that said grantee and his 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 grantee 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 Camarines  Norte or the municipal  president of Daet, as the case may be, and said grantee 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  grantee, to be determined by the electrical engineer of the Public Utility Commission on the application of said grantee, and should the demand for electric power, heat, and light at any time increase beyond the capacity of the plant of said grantee  to supply the same, the capacity of said plant shall be increased by said grantee to meet such demand, upon authorization by the municipal council of Daet: 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 grantee, the latter shall not  be obliged to furnish said service.SEC. 4. All apparatus and appurtenances used  by the grantee  or thereafter by his  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  con tact  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 grantee and his successors or assigns  shall, whenever the Philippine Legislature or its successors, upon recommendation of  the  Public  Utility  Commission or its legal  successors, so  direct,  place said wires  in  underground pipes or conduits at their own expense, and without any cost or prejudice to the municipality of Daet.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 grantee 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  Camarines  Norte, or by reason  of the extension of streets or plazas determined upon by the municipal council of Daet, to change the location of  said poles, such change shall be made by the grantee, his  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 Daet 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  grantee, upon  written notice by the municipal president of Daet, served upon said grantee 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 grantee to comply with such notice, the municipal president of Daet, after obtaining the proper approval of the municipal council  of Daet, shall order such poles or wires "to be raised or removed at the expense  of said grantee, for the purposes aforesaid:  Provided, however, That the grantee may appeal from any  such  decision to the  provincial board of Camarines Norte, whose  decision shall be final.SEC.  7. The  grantee shall be liable  to the municipality of  Daet 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 grantee shall file his written acceptance of this franchise with the Secretary of Commerce and Communications within one hundred and twenty days from the date when he 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, B That in consideration of the  franchise hereby granted, the grantee, his successors, or assigns shall  pay quarterly into the municipal treasury of Daet one per centum of the gross earnings of their business during the first ten years, and two  per centum  during  the remaining fifteen years of the life of this  franchise.SEC. 9.  Upon the acceptance of this franchise, the grantee shall deposit in  the Insular Treasury or with  any of its agents in the Province of Camarines Norte,  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  he 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 grantee 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 grantee.In case such grantee,  his 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  Treasury, whether in  cash, bonds, or other securities,  shall be forfeited to the municipal government of Daet, as damages for the breach of the implied contract involved in the acceptance of this franchise.  In case the grantee,  his 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 successors, be returned by the Insular Treasury to said grantee:  Provided, That the time during which such grantee, his 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 Daet shall have the privilege, without compensation, of using the poles of the grantee " 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  grantee.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 grantee, his successors, or assigns used in connection with this franchise shall become the property of the Insular Government.SEC. 12. The  grantee  of  this franchise is 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 grantee declare  any stock or bond dividend.SEC. 13. The  books and  accounts of the  grantee  shall always be open to the inspection  of the provincial treasurer or his authorized representatives, and it shall be the duty of the grantee 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  grantee shall pay on his 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  grantee  herein  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 grantee by this franchise, and to accept the same subject to all existing  terms and conditions.SEC.  16. The  Public Utility Commission or its legal successors, 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 grantee to comply  with  any of the terms and conditions hereof,  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 grantee 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 grantee  shall sell all of his 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 grantee, 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 "grantee" is used, it  shall  be understood to mean Gabriel T. Hernandez,  his representatives, successors,  or assigns.SEC.  19. This Act shall take  effect on its approval.Approved,  December 6, 1924.

Source: Supreme Court E-Library