[ Act No. 3289, December 01, 1926 ]

AN ACT EXTENDING THE FRANCHISE OF THE "PANAY TELEPHONE AND TELEGRAPH COMPANY."

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.  The "Panay Telephone  and Telegraph Company,"  at present operating on  the  island of  Panay,  is hereby authorized to  extend its telephone lines to the surrounding islands,  and to lay, maintain, and operate telephone cables  in the adjacent waters  for the purpose of making connection with the telephone lines on the surrounding islands, subject  to the  same conditions as set forth in its present franchise, for  the unexpired portion of said franchise: Provided, however, That ten years after  this Act takes effect, the Government of the  Philippine Islands shall  have the right to purchase the telephone system and all it; equipment  and appurtenances,  as herein provided, at a price equivalent to the actual value thereof as shown on the books of the  company on the date of the purchase: Provided, further, That in  case of any national emergency affecting  and compromising  the  public  order  and  safety, the Government of  the Philippine Islands shall have the right to take possession of the telephone system provided for in this Act, and to operate the same until the termination of such  emergency: Provided, finally, That  the franchise hereby granted shall be  no  bar to the granting of a similar franchise to other persons, companies or corporations.

SEC. 2. The grantee,  its successors or assigns shall not engage in or aid, by  means  of contribution in cash or otherwise, any political  movement, and any violation  of this condition shall  be  sufficient  cause for the cancelation  of this franchise upon proceedings instituted by the Attorney-General  of the Philippine Islands in the Court of First Instance  of the City  of Manila,  upon which jurisdiction is hereby conferred.

SEC.  3.  All schedules of local  and  long distance rates shall be  subject to the approval of the Public Utility Commission.

SEC.  4.  This Act  shall take effect ninety  days after its approval:  Provided, however, That the conditions herein established must  have  been  accepted  by the  grantee  in writing  and such acceptance filed with the  Secretary  of Commerce  and Communications prior to the expiration  of the time above-mentioned.

Approved, December  1,  1926.