[ Act No. 3142, March 06, 1924 ]

AN ACT GRANTING TO THE MUNICIPALITY OF MARIQUINA, PROVINCE OF RIZAL, PHILIPPINE ISLANDS, A FRANCHISE TO INSTALL, OPERATE, AND MAINTAIN AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM

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 applicable thereto, there is hereby granted to the municipality of Mariquina,  Province of Rizal, Philippine Islands for a period of fifty years from the approval of this Act,  the right, privilege, and authority to construct, maintain, and operate an electric light,  heat,  and power system, for the purpose of  generating  and  distributing electric light, heat, and power for sale within the limits of the municipality of Mariquina,  Province of Rizal.  The grantee shall also have the right and privilege to install, lay, and maintain on all the streets, public thoroughfares, bridges,  and public places within said limits, poles, conductors, interrupters, transformers, cables, wires, and other overhead appliances, and all other necessary apparatus and appurtenances for the furnishing and distribution of electric current, and to supply, sell, and furnish such current to any  person, corporation public or private concern within  said  limits for municipal, domestic or manufacturing uses and for any  other use to which electricity may be put,  and to charge and collect a schedule  of prices for the use of same: Provided, That this  franchise shall not take effect until the grantee shall have obtained from the Public Utility Commission a  certificate showing the public necessity and  convenience  of the same, in accordance with the purpose of subsection  of section fifteen of Act Numbered Thirty-one hundred and  eight,  and shall have filed such certificate with the Secretary of Commerce and Communications  upon accepting this  franchise: And provided, further,  That if  the grantee  does not file the proper  application for  said  certificate  with  the Public Utility Commission within three months from the date of the approval of this  Act, this franchise shall become null and void.

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 state in writing that it 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 itself 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 interests or under any other pretext, and that  said grantee shall further bind itself to exact a similar engagement  from its administrators, agents, successors, and assigns."

SEC. 3. The poles erected by the grantee shall be of such a height as  to maintain the wires stretched on  the same at a  distance of at least twenty feet above the level  of the ground, and shall be  of such appearance as  not to disfigure the streets, and shall be placed with due regard for the public safety so as not to be a danger for the same, in accordance  with  a  plan  approved by the   provincial authorities,  represented by the  provincial governor, and said grantee shall supply  electric  power,  heat,  and light to any  applicant for the same, within  fifteen days after: the date of his application, and as between such applicant and other like applicants, in the order of the date of his application, up to the  limit  of the capacity of  the plant of said grantee, to be determined by the  electrical engineer of the  Public  Utility Commission on the application  of said grantee,  and should the  demand for electric  power, heat, and light at any time increase beyond the capacity of the plant of said grantee to supply the same, the capacity of said plant shall be increased by  said grantee  to meet such demand,  in accordance with the decision of the Public  Utility  Commission or its lawful  successor: Provided, however, That in case the point at which the electric light, heat or power is to be supplied, is more than  thirty meters from the lines  or wires operated  by said grantee, the  latter shall not  be obliged to  furnish said service

SEC.  4. All  apparatus and  appurtenances used  by the grantee shall be modern and  first class in every respect, and the electrical transmission wires shall be insulated and carefully  connected and fastened so as  not to come in direct contact with any object through which a "ground" could be formed, and shall  be  stretched so as not to interfere with the free use of said  streets and public thoroughfares, nor cause any injury to the public, danger  of fire, or. damage and inconvenience  to  the owners of property: Provided, That  in the maintenance and operation of their plant and system  for  the  transmission  and distribution of electric current, the grantee shall always be  subject to such  reasonable regulations  as the provincial board of Rizal may promulgate in  the premises,  and also  to the regulations prescribed by the  National  Electrical Code of America: Provided, further, That the grantee shall, whenever the  Philippine Legislature  upon  recommendation of the Public Utility  Commission or its  legal  successor, so direct, place  said wires  in  underground pipes or conduits at its own expense.

SEC. 5. Whenever it shall be  necessary in the erection of said  poles to take up any  portion of the sidewalks or dig up the ground  of  the public streets or thoroughfares, then the  said grantee shall, after said poles are  erected, without delay replace said sidewalks  and repair said public streets or thoroughfares  in the proper  manner, removing from  the  same  all  rubbish, dirt, refuse, or other material which may  have been placed  there, taken up or dug up in the erection of said poles, leaving them in as good condition as they were before  the work  was done; and whenever it shall  become necessary, by reason  of the extension of roads determined upon by the provincial board of Rizal, or by reason of the extension of streets  or plazas determined upon  by said municipal  council of Mariquina, to change the location of said poles,  such  change shall be made  by  the grantee, its successors or  assigns, at their expense,  without delay, where directed by said provincial board or said municipal council.

SEC. 6. Whenever any  person has obtained permission to use any of the streets or public thoroughfares of the municipality of Mariquina for the purpose of removing any building or in the prosecution of any municipal work or for any other just cause, whatsoever, making it necessary to raise or remove any of said poles or electric wires which may obstruct the removal of said building or hinder the prosecution of said work, the said grantee, upon written notice by the provincial governor of Rizal, served upon said grantee  at  least forty-eight hours in advance, shall raise or remove any of said wires which may hinder the prosecution of  such work or obstruct the removal of said building, so as to allow the free and unobstructed passage  of said building and the free and unobstructed prosecution of said work, and the person or entity at whose request  the  building has been moved or the construction undertaken, shall pay one-half of the actual cost of removing or raising and of replacing the poles, wires or other overhead  or  underground conductors.  The notice  shall be served in the usual form, and  in  case of the  refusal or failure of the grantee to comply with such notice, the said provincial governor, after obtaining  the proper approval of the provincial board, shall order  such poles or wires to be raised or removed at the expense of said grantee, for the purposes aforesaid.

SEC. 7. The grantee shall be liable for any injury  arising from any claims caused by accidents to person or property by reason  of the  construction under  this franchise or of any  neglect or omission to  keep the said poles  and wires in a safe condition.

SEC. 8.  Said grantee  shall file its written acceptance of this  franchise with the Secretary of Commerce  and Communications within one hundred and twenty days from the date when it obtained  the  certificate required by  section one of this Act, and shall commence work  under  the supervision and  subject to the approval of the electrical engineer of the Public Utility Commission, and in  accordance with the plan, specifications  and estimates previously  approved by the Public Utility Commission, within six months' time from and after the date of filing such acceptance, unless prevented by act of God or force majeure, usurped or military power, martial law, riot or civil commotion or other inevitable cause, and shall complete the system and have the same in operation within eighteen  months from the date of such acceptance, and shall thereafter maintain  a first-class electric  light, heat, and power service: Provided, That in consideration  of the franchise  hereby  granted, the grantee shall pay quarterly  into the municipal treasury of Mariquina one per centum of the  gross  earnings of its electric business  during the first twenty years,  and two per centum during the remaining thirty years of the-life of this franchise.

SEC. 9.  Upon the acceptance  of  this  franchise as mentioned in  the  next preceding section,  the grantee  shall deposit in  the Insular Treasury or with any of  its  agents in the Province of Rizal, one thousand pesos,  or negotiable bonds  of the United States or other  securities  approved by the  Secretary  of  Commerce  and  Communications,  of the face value of  one  thousand pesos, as an  earnest  of good faith and a guarantee  that it  will begin the  electric light, heat, and  power  business and  may  be  completely provided with the necessary  equipment therefor  and ready to begin operation in  accordance with  the  terms  of this franchise:  Provided, however, That if such  deposit is  in cash, it may  be  made  in some official depositary  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,  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  commence the work for the electric light, heat, and power service  within six months from the date of the acceptance of this  franchise, or shall  fail to provide the necessary equipment and  be ready to operate within eighteen months after the date of such acceptance, in accordance with the terms of this franchise, then the  deposit prescribed in  this section and in the possession of the Insular Treasurer,  whether in cash, bonds, or other securities, shall be forfeited to the provincial  government  of Rizal, as damages for  the breach  of the implied contract involved in the acceptance of this franchise.  In  case  the grantee  begins to operate the electric light, heat, and power service,  or  is  ready  for operation under this franchise, within the  time  limits specified,  the deposit provided for in this section shall, upon recommendation  by  the Public Utility  Commission or its legal successor, be returned by the Insular Treasury to said grantee: Provided,  That the time  during which such grantee has been prevented by any of the causes above referred  to  from  carrying out the terms and  conditions of this franchise, shall  be added to the time granted by this franchise for the fulfillment of its conditions.

SEC. 10. This franchise is granted with the understanding  and  upon  the  condition that it  shall  be   subject  to amendment,  alteration, or repeal by  the  Congress of the United States as provided in  section twenty-eight of 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," or, by the Philippine Legislature, and that it shall be subject, in all  respects,  to the limitations upon corporations and the granting of franchises contained in said Act of Congress,  and  that all lands or rights of use  or occupation  of lands secured by virtue of this franchise shall revert  upon its ' termination to  the  Insular  or  provincial governments which were the owners thereof upon the date on which this franchise was granted, and all property of the grantee  used in connection with  this franchise shall become the  property of the Insular Government.

SEC. 11. The grantee of this franchise is forbidden to issue stock  or bonds under this  franchise  except in exchange for actual  cash or  for property at a fair valuation equal to  the par value  of the stock or bonds  issued and upon prior  authority of the  Public  Utility Commission. Nor  shall said grantee  declare any stock or bond dividend.

SEC. 12. The books  and accounts of the grantee shall always be open to the inspection of the  provincial  treasurer of Rizal 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  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. 13. The grantee shall pay on its real estate,  buildings, plant,  machinery, and other  personal  property  the same taxes  as  are now or may hereafter be required  by law from other persons.

SEC. 14. The grantee shall not sell, lease, donate, convey, or give in usufruct this  franchise  and any  property and rights  acquired thereunder to any  person or  corporation without previous authorization  by the Philippine Legislature: Provided, That for the purpose of such sale, lease, donation,  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 person or corporation in whose favor such sale, lease, donation, conveyance or giving in usufruct is  made, shall bind himself to comply with ; II the terms and conditions imposed upon the grantee by ;his franchise,  and to accept the same  subject to all existing terms and conditions.

SEC. 15. The Public Utility Commission or its legal successor, after hearing  the interested  parties, upon notice and order in writing,  shall have the power to declare the ' forfeiture of this franchise and all rights inherent in the same for  failure on  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 the act of God, the public enemy, or force majeure.  Against  such declaration of forfeiture by the Public Utility Commission or its  legal  successor, the grantee  may  apply for the remedies provided in section thirty-five of Act Numbered Thirty-one hundred and  eight.

SEC. 16. The rates for the light service, flat rate as well as meter rate, fixed by the grantee,  shall always be  subject to regulation by act of the Philippine Legislature  or by the entities authorized by law, and shall  in no case  be in excess of  thirty centavos per  kilowatt hour:  Provided, That only  subscribers who  have more than eight outlets installed in  one building  shall be entitled to be furnished with a meter.

SEC. 17. Wherever in this franchise the term "grantee" is used, it shall be  understood to mean the municipality  of Mariquina, Province of Rizal,  its representatives, successors,  or assigns.

SEC. 18. This" Act shall take effect on its approval.

Approved, March 6, 1924.