H. No. 12214 / 65 OG No. 23, 5830 (June 9, 1969)

[ REPUBLIC ACT NO. 5298, June 15, 1968 ]

AN ACT GRANTING SURIGAO FERRY SERVICE, INC., A FRANCHISE TO ESTABLISH, MAINTAIN AND OPERATE A FERRY SERVICE FOR PASSENGERS AND FREIGHT BETWEEN THE MUNICIPALITY OF SURIGAO AND NONOC ISLAND, BOTH IN THE PROVINCE OF SURIGAO, DEL NORTE.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:SECTION 1. Subject to the conditions established in this Act and the provisions of the Constitution and the Public Service Act, there is granted to Surigao Ferry Service, Inc., for a period of twenty-five years from the approval of this Act, the right, privilege and authority to establish, maintain and operate a ferry service for passengers and freight between the Municipality of Surigao and Nonoc Island, both in the Province of Surigao del  Norte, and to establish a schedule of rates therefor which shall  at  all times be subject to regulation  by the Public Service Commission:  Provided, That this franchise shall be null and  void unless the grantee, within ninety days from the date of the approval of this Act, files with the Public Service Commission its acceptance of the terms and conditions stipulated in this Act.SEC. 2. Within ninety days after the acceptance of the franchise granted hereunder and in accordance with the conditions  as herein  stipulated, the grantee shall put Surigao  and Nonoc Island, both in  the Province of Surigao del Norte.   The ferryboats operated by the grantee and the equipment thereof shall meet the requirements prescribed by the Public Service Commission, and the grantee shall, whenever the Public Service Commission shall determine that public interest reasonably requires  it,  change  or improve any of  said  ferryboat or the equipment thereof at its expense.SEC. 3. The grantee binds itself to provide in its ferry­boats a suitable and adequate place for the mails shall carry them in the manner stipulated between the Postmaster General and the said grantee, for such consideration as may be agreed upon between them, and in case of failure to arrive at an agreement as to the rate of compensation and the manner in which such mails shall be carried, the Public Service Commission shall fix the manner of, and compensation for, carrying said mails, after hearing and considering the arguments of the said Postmaster General and grantee: Provided, That in case the Government requires the transportation of troops, ammunition or funds for the public good, the grantee shall receive a reasonable compensation for such service.Sec. 4. The books, records and accounts of the grantee shall always be open to the inspection of the Provincial Treasurer of Surigao del Norte 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 for passengers and freight for the quarter past and the general condition of the business, one of which shall be forwarded by the provincial treasurer to the Auditor General, who shall keep the same on file.Sec. 5. The grantee shall be liable to pay the same taxes on its real property, buildings, and personal property as other persons or corporations are now or hereafter may be required by law to pay. The grantee  shall further be  liable to pay  all  other  taxes  imposable  under the National Internal Revenue Code by reason of this franchise.Sec. 6. The grantee, with the approval of the Congress of the  Philippines first had, may sell, lease, grant, convey, assign, give in  usufruct,  or transfer this franchise and all property and rights acquired thereunder to any individual, co-partnership, private, public or quasi-public association, corporation or joint-stock company competing to operate the business hereby authorized,  but transfer  of title to  the franchise or any right of ownership or interest acquired under such sale, lease, grant, conveyance, assignment,  give in usufruct, or transfer shall not be effective, even after such  approval  shall   have been  obtained  until there  shall have been filed with the Public Service Commission an agreement, in writing by which the individual, co-partnership, private, public or quasi-public association, corporation, or joint-stock company in whose favor such sale, lease, grant, conveyance, assignment, give in usufruct, or transfer, is made, shall be firmly bound 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. 7. The  Public  Service  Commission shall have the power, after a  reasonable written notice to the grantee and a hearing of the interested parties, to declare the forfeiture of this franchise  and  all rights inherent in the same for failure on the part of the grantee to comply with any of  the terms and conditions thereof, unless such failure shall have been directly and primarily caused by an act of  God or force majeure, usurped right, uprising or other cause beyond the  grantee's control. Against such declaration of forfeiture by the Public Service Commission, the grantee may apply for the remedies provided in Sections thirty-four and thirty-six of the Public Service Act. The remedy provided herein shall not be a bar to any other remedy provided by existing laws  for the forfeiture  of this franchise.SEC. 8. In the event of any competing individual, association of   persons,   or corporations  receiving  from  the Congress of the Philippines a similar franchise in which there shall be any  term or terms more favorable than those herein granted or tending to place the herein grantee at any disadvantage, then such term or terms shall ipso facto become a part of the terms hereof and shall operate equally in  favor of the grantee as  in  the case of competing individual, association or corporation.SEC. 9. Whenever in this franchise the term "grantee '' is used, it shall   be held and  understood  to  mean and represent Surigao  Ferry Service, Inc., its representatives, successors or assigns.SEC. 10. This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines, when the public interest so requires, and shall not be interpreted to mean an exclusive grant of the privileges herein provided.SEC. 11. This Act shall take effect upon its approval.Enacted without Executive approval, June 15, 1968.

Source: Supreme Court E-Library