By authority of the United States, be it enacted by the Philippine Legislature, that:

SECTION 1. Article VI of the franchise contained in section two of Act Numbered Eighteen hundred and forty-two is hereby amended to read as follows:

"Art. VI. As a guarantee that this franchise has been accepted in good faith and that within eighteen months from the date of the acceptance hereof the grantees, (his) their successors or assigns, will begin the business of transmitting messages by telephone and will he fully equipped and ready to operate according to the terms of this franchise one  hundred telephones in the municipality of Iloilo, the said grantees shall deposit at the time of such acceptance with the Insular Treasurer, live thousand pesos, or negotiable bonds of the United Stales or other securities, approved by the Commerce and Police, of the face value of five thousand pesos: Provided, however, That if the deposit is made in and shall he deposited at interest in some interest-paying bank approved by the Secretary of Commerce and Police, and accruing and due on such deposit shall be collected by Treasurer and paid to the grantees, (his) their successors or assigns, on demand: And provided further, That if the deposit made with the Insular Treasurer be negotiable bonds of the United States or other interest-bearing securities approved by the Secretary of Commerce and Police the interest on such bonds or securities shall be collected by the Insular Treasurer and paid over to the grantees, (his) their successors or assigns, on demand.

"Should the said grantees,  (his)  their successors or assigns, for any other cause than the act of God. the public enemy, usurped or military power, martial law, riot, civil commotion, or inevitable cause, fail, refuse, or neglect lo begin within eighteen months from from the date of acceptance of Ibis franchise the business of transmitting messages by telephone, or fail, refuse, or neglect to be equipped and ready to operate within eighteen months from the date of  acceptance of Ibis franchise one hundred telephones the municipality of lloilo according to the terms of this franchise, then the deposit prescribed by this article to be made with the Insular Treasurer,  whether  in money, bonds, or other securities, and become the property of the Insular Government, as liquidated damages caused to such Government by such failure, refusal, or neglect and thereafter no interest on said bonds or other securities as deposited shall be paid to the grantees, (his)  their successors or assigns.  Should the said  grantees, (his) their successors or assigns, begin the business of transmitting messages by telephone and be ready to operate according to the terms of this franchise one hundred telephones in the municipality of Iloilo within eighteen months from the date of the acceptance of this franchise, then and in that event the deposit prescribed by this article shall be returned by the Insular Government to the grantees,  (his)  their successors  or assigns: Provided however, That all the time during which the grantees, (his)  their successors or assigns, may be. prevented front carrying out the terms and conditions of this franchise by any of said causes shall be added to the time allowed by this franchise for compliance with its provisions."

SEC. 2. Article XI of the said franchise, contained in section two of Act Numbered Eighteen hundred and forty-two, is hereby amended to read as follows :

"Art   XI. Within ninety days after the acceptance of the bid of the grantees, the grantees shall be with the Secretary of Commerce and Police (his) their written acceptance of this franchise and of all the terms and conditions hereof, and the grantees shall begin the construction of (his) their telephone system in the municipality of Iloilo within six months from the date of (his) their acceptance of this franchise and shall begin the business of transmitting messages by telephone and be fully equipped and ready to operate at  least one hundred telephones in said municipality within eighteen  months from the date of (his) their acceptance of this franchise unless prevented by act of God the public enemy, usurped  or military power, martial  law, riot, civil commotion, or inevitable  cause.  Forfeiture hi event "The failure, refusal, or neglect to comply with any of the terms and conditions required by this  franchise of the grantees, (his)  their successors or assigns, shall subject the franchise to forfeiture unless such failure, refusal, or neglect was directly and primarily caused by act of God the public enemy, usurped or military power,  martial law, riot, civil commotion, or inevitable cause."

SEC.  3.  This Act shall take effect on  its passage.

Enacted, May 19, 1909.