[ Act No. 1262, November 15, 1904 ]

AN ACT GRANTING TO IGNACIO ARNALOT, OF THE MUNICIPALITY OF TAYABAS, PROVINCE OF TAYABAS, A CONCESSION TO DIVERT CERTAIN WATERS FOR THE PURPOSE OF GENERATING ELECTRIC POWER.

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

SECTION 1. There is hereby granted to Ignacio Arnalot, of the municipality of Tayabas, Province of Tayabas, his successors and assigns, the right, privilege, and authority, for a period of twenty-five years from and after the passage of this Act, to divert the waters of the Ibiang Munti and Ibiang Malaqui Rivers, situated between the municipalities of Lucban and Tayabas, in said province, for the purpose of generating electric power and transmitting the same to the factory now owned by said Ignacio Arnalot in the municipality of Tayabas, to construct, operate, and maintain dams, canals, powerhouses, transmission line, and all other appurtenances connected with the utilization of said waters as herein set forth; and to furnish electric power to individuals and corporations and to charge and collect toils, rates, and compensation therefor: Provided, That such tolls, rates, and compensation shall always be subject to regulation by Act of the Philippine Commission or the legislative body of the Islands: Provided further, That the water utilized for the purposes of this franchise be returned to the river in such manner and place as the Consulting Engineer to the Commission shall direct.

SEC. 2. Said grantee shall file his acceptance of the conditions of this franchise with the Secretary of Commerce and Police within thirty days from the date hereof, and said power plant, and any highway bridges that may become necessary by reason of the installation of said plant and its appurtenances, shall be constructed and maintained by the grantee of this franchise according to detailed plans and specifications approved in writing by the Consulting Engineer to the Commission, and said plans and specifications shall be submitted by said grantee for such approval within forty days after the passage of this Act; and said grantee shall begin the construction of said power plant within ninety days after approval of the plans, and shall fully complete and put the same in operation within fifteen months after the passage of this Act; and for failure to begin the work of construction or to put said power plant into operation within the time herein specified, or for failure to keep all parts of said power plant and bridges in a good state of repair, to the satisfaction of the Consulting Engineer to the Commission, or for discontinuing the bona fide operation of said power plant for a period of two years, the franchise granted by this Act shall be forfeited and revoked.

SEC. 3. Said power plant shall not be put into operation until it shall have been duly inspected and a permit to operate the same issued by said Consulting Engineer to the Commission, and said grantee shall thereafter keep all parts of said power plant and highway bridges constructed under the provisions of this Act in a satisfactory state of repair.

SEC. 4. The right to use for municipal purposes from the Rivers Ibiang Munti and Ibiang Malaqui the quantity of thirty liters of water per second, and as much more as will not materially interfere with the operations of-the power plant of the grantee, is hereby reserved to the municipality of Tayabas.

SEC. 5. The electric installations used by the grantee shall be in accordance with the general regulations contained in the last edition of the National Electric Code as adopted in the United States, and the work of construction, operation, and maintenance of said power plant shall he subject to inspection and examination by the Consulting Engineer to the Commission or his authorized agent, who shall at all times have the right of access to the plant for such purpose.

SEC. 6. The grantee of this franchise, his successors and assigns, shall pay annually to the Government of the Philippine Islands one per centum of the gross receipts derived  from the sale of electric power or current to individuals and corporations as authorized  by section one hereof but nothing in this section shall be construed to interfere with the rights of the municipal, provincial, or Insular governments to assess taxes upon the property, real or personal, of the grantee, his successors or assigns, nor shall it affect the right of the Government to assess and collect any business or income tax on his business.

SEC.  7. In case the grantee, his successors or assigns, shall sell b or furnish electric power to individuals and corporations as authorized by section one hereof, his books shall always be open to the inspection of the Insular Treasurer or a deputy designated by him for the purpose, and it shall be the duty of said grantee to submit to the Insular Treasurer quarterly reports showing the gross receipts find the net receipts for the quarter past and the general condition of the business.

SEC. 8. This franchise is granted with the understanding and a upon the condition that it shall be subject to amendment, alter-action, or repeal by the Congress of the United States, as provided in section seventy-four of the Act of Congress approved July first, nineteen hundred and two, entitled "An Act temporarily to provide for the administration of the affairs of civil government in the Philippine Islands, and for other purposes." mid that it shall be subject, in all respects, to the limitations upon corporations and the granting of franchises contained in said Act of Congress.

SEC. 9. The public good requiring the speedy enactment of this bill, the passage of the same is hereby expedited in accordance with section two of "An Act prescribing the order of procedure by the Commission in the enactment of laws," passed September twenty-sixth, nineteen hundred.

SEC. 10. This Act shall take effect on its passage.

Enacted, November 15, 1904