[ Act No. 3214, December 06, 1924 ]

AN ACT GRANTING TO LUIS MIGUEL A FRANCHISE TO ESTABLISH, MAINTAIN, AND OPERATE A MOTOR VEHICLE LAND TRANSPORTATION SERVICE FOR PASSENGERS AND FREIGHT IN THE PROVINCE OF CAMARINES NORTE.

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 and its amendments applicable thereto, there is hereby granted to Luis Miguel, his successors and assigns, for a period of twenty-five years from the approval of this Act, the right, privilege, and authority to establish, maintain, and operate a motor vehicle land transportation service for passengers and freight in the Province of Camarines Norte, in accordance with  the provisions  hereinafter set forth: 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 Secretary of Commerce and Communications,  his acceptance  in  due  form, binding himself to comply with the terms and conditions  stipulated in this Act, together with the certificate of the Public Utility Commission at present held by the grantee.

SEC. 2. The concession of the right, privilege, and authority mentioned in the preceding section shall not take effect unless the grantee shall accept in writing  and make part of this concession the following condition, to wit:

  "That the grantee states in writing that he is 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, nineteen hundred and thirteen; that said grantee binds himself 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 interest or under any other pretext, and  that  said grantee shall  further  bind himself to exact  a similar engagement from his administrators, agents, successors, and assigns."

SEC. 3. Upon the acceptance of  this  franchise as provided in section  one,  the grantee shall deposit in the Insular Treasury  or with any of its agents  in the Province of Camarines Norte,  five thousand pesos, in negotiable bonds ol the United States or other securities approved by the Secretary of  Commerce and Communications, of the face value of five thousand pesos, as an earnest of  good faith and a guarantee that he will comply with all the provisions of this Act and Act Numbered Thirty-one  hundred and eight  and amendments thereof applicable in his case: 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 deposited, if any, shall belong to the grantee.  In case  such grantee 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  comply with the conditions established in this Act and the provisions of Act numbered Thirty-one hundred and eight and its amendments applicable in his case, then, upon recommendation of the Public  Utility  Commission,  after   hearing  the  parties interested, upon notification or order in writing, in order to determine the degree of his failure to comply with the conditions prescribed in this Act and in  Act Numbered Thirty one hundred and eight and amendments thereof,  all or part of the deposit prescribed in this section and in the possession of the  Insular Treasurer, whether in  cash, bonds or other securities, may be forfeited to the provincial government of Camarines Norte,  as damages for the implied contract involved in the acceptance of  this franchise.   From the declaration of the forfeiture of all or part of the deposit of the grantee by the Public Utility Commission or its legal successor, the grantee may appeal  as provided in section thirty-five of Act Numbered Thirty-one hundred and  eight.

SEC. 4. The grantee shall establish, maintain, and operate; an adequate and efficient motor vehicle land transportation service for passengers and freight, as follows: Within ninety days after the acceptance of the franchise granted hereunder and in accordance with the conditions herein stipulated, he shall  put in operation fifteen trucks  on the lines from Daet to Mercedes;  Daet to Indan, via Talisay; Daet to Basud; Daet  to San Vicente; Daet to Labo, via Talisay;  and on the lines  from Labo to Paracale, via Batobalane, and Labo to Mambulao, via Batobalane, he shall keep not less than two motor vehicles in operation. The motor  vehicles operated by the grantee shall be in the condition and have requirements prescribed by Act  Numbered Three thousand and forty-five, which regulates the motor vehicle  traffic in the Philippine Islands.

SEC. 5. The grantee binds himself  to provide on his motor vehicles  a suitable and  adequate place for the mails  and shall carry them in the manner stipulated between the Director of Posts 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 Utility  Commission shall fix the manner of and compensation for carrying said mails, after hearing and considering the  arguments  of  the said  Director and grantee: Provided, That  in case the Government requires the transportation of troops, ammunition or funds for the public good,  the grantee  shall take  the necessary steps to comply therewith and shall receive a reasonable compensation for such service.

SEC. 6. The grantee shall establish its  schedule of rates in accordance with the provisions of Act Numbered Thirty- one hundred and eight and its  amendments; but the rate shall in no case be in excess of four centavos for each kilometer or fraction thereof, of one centavo for each one hundred  kilos or fraction thereof, and of twenty centavos for each ton or fraction  of a  ton.

SEC. 7. The grantee, his successors, or assigns shall pay into the Insular Treasury, as compensation for the concession of this franchise, one centavo per passenger per kilometer or fraction thereof.

SEC. 8. The franchise  herein granted shall be  subject in all respects to the limitations imposed by 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," and to the provisions of Act Numbered Thirty-one  hundred and eight of the Philippine Legislature  and its amendments, any provision hereof to the contrary notwithstanding.

SEC. 9. This franchise shall be subject to amendment, alteration, or repeal by the Congress of the United States or the Philippine Legislature,  and to  the provisions  of Act Numbered Thirty-one hundred and eight and its amendments.  The grantee, his successors,  and assigns shall not issue stocks or bonds  under this franchise except in change for actual cash or for property at a fair valuation equal to the par value of the stock or bonds issued, and upon prior authorization by the Public Utility Commission.  Nor shall said grantee, his successors, or assigns declare  any stock or bond dividend.

SEC. 10. The  books and accounts  of the  grantee shall always be open to the inspection of the provincial treasurer or his  authorized representative,  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 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 Insular Auditor, who  shall  keep the same on file.

SEC. 11. The grantee shall pay on  his  real estate,  buildings, machinery, and other personal property the same taxes as are now or may hereafter be required by law from other persons.

SEC. 12. The grantee herein may,  upon prior  authorization by the Public Utility  Commission,  sell, lease, grant, 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, granting, 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' purchaser, lessee or donee or person or corporation in whose favor such grant or conveyance 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. 13. Wherever in  this franchise the term  "grantee" is used, it shall be  held  and understood to mean and represent  Luis Miguel,  his  representatives, successors,  or assigns.

SEC. 14. This Act shall take effect  on its approval.

Approved, December 6,  1924.