LAWS & EXECUTIVE ISSUANCES: TRANSPORTATION (1907-2010) Vol. 1

LAWS & EXECUTIVE ISSUANCES
(1903-2010)
TRANSPORTATION
EXECUTIVE ISSUANCES
LAW NO. TITLE PAGE
Republic of the Philippines

House of Representatives
Quezon City, Metro Manila
FOREWORD
T ransportation impacts on many

aspects of our lives. From the leisurely
driven caretela and rapidly moving
jeepneys, the gently cruising bancas
and ships to the swift jumbo jets, people and merchandise have been
moved from city to city, province to province, island to island.
Numerous laws have been crafted to ensure that transportation is
available, affordable, efficient, and safe.
This compilation of Philippine laws and executive issuances is

intended to serve as a reference material for legislators and policy
makers in crafting laws and formulating policies and programs that
are more responsive to current needs for developing, establishing,
regulating and managing the various modes of transportation and
transportation systems in the country. Students and researchers will
also find this compilation helpful as it enables them to gain a broader
perspective on the spectrum of government initiatives for making
transportation available, affordable, safe and efficient for our people.
i
This compilation is made up of two volumes. The first volume
contains the laws on land, sea and air transportation crafted during
the different administrations from the American period, the
Commonwealth era, the Japanese occupation, up to the country’s
independence covering the years 1907 to 2010 . Thus the reader
will see laws that are named Acts, Commonwealth Acts, Batas
Pambansa and Republic Acts.
The second volume contains executive issuances promulgated

by the Presidents of the Philippines such as Presidential Decrees and
Executive Orders.
This book is the second of a series of topical compilations of

laws which is being produced by the House Secretariat, a most
commendable program of legislative documentation which will
certainly enrich the terrain of legislative policy making in the country.
I acknowledge the tireless efforts devoted to the production

of this book by the House Secretary General Marilyn B. Barua-Yap
and the Legislative Information and Resource Management
Department consisting of the Legislative Library Service and the
Archives and Museum Management Service, as well as the Printing
and Reproduction Service.
FELICIANO BELMONTE, JR.

Speaker
LEGISLATIVE MEASURES
LAW NO. TITLE PAGE
TRANSPORTATION LAWS
Vol. I
LAW NO. TITLE PAGE
ACT NO. 2 1
AN ACT APPROPRIATING FIVE THOUSAND DOLLARS,
MEXICAN, FOR THE PURPOSE OF MAKING A SURVEY TO
ASCERTAIN THE MOST ADVANTAGEOUS ROUTE FOR A
RAILROAD INTO THE MOUNTAINS OF BENGUET, ISLAND OF
LUZON, AND THE PROBABLE COST THEREOF
ACT NO. 22 2
AN ACT APPORPRIATING ONE MILLION DOLLARS IN MONEY
OF THE UNITED STATES FOR IMPROVING THE PORT OF
MANILA
ACT NO. 66 4
AN ACT AMENDING THE SECOND PARAGRAPH OF ORDER
NUMBER THIRTY-EIGHT OF GENERAL ORDERS OF THE
MILITARY GOVERNOR, ISSUED MARCH TWENTY-FOURTH,
NINETEEN HUNDRED, PROVIDING FOR LICENSING SMALL
BOATS WHICH HAVE A LESS CAPACITY THAN FIFTEEN GROSS
TON BURDEN
ACT NO. 73 5
AN ACT PROVIDING FOR THE EXAMINATION AND
LICENSING OF APPLICANTS FOR THE POSITION OF MASTER,
MATE, AND PATRON OF SEA-GOING VESSELS
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TRANSPORTATION LAWS & EXECUTIVE ISSUANCES
LAW NO. TITLE PAGE
ACT NO. 101 7

AN ACT TO AMEND AN ACT ENTITLED “AN ACT
APPROPRIATING ONE MILLION DOLLARS IN MONEY OF THE
UNITED STATES FOR IMPROVING THE PORT OF MANILA,”
ENACTED OCTOBER FIFTEENTH, NINETEEN HUNDRED
ACT NO. 182 10

AN ACT TO AMEND ACT NO. TWENTY-TWO AND ACT NO. ONE
HUNDRED AND ONE RELATING TO THE IMPROVEMENT OF
THE HARBOR OF MANILA AND THE PASIG RIVER
ACT NO. 198 12

AN ACT PROVIDING THE METHOD FOR FURNISHING
OFFICIAL TRANSPORTATION TO OFFICERS AND EMPLOYEES
OF THE INSULAR, PROVINCIAL AND MUNICIPAL
GOVERNMENTS IN THE CITY OF MANILA, FROM AND TO THE
PROVINCES
ACT NO. 199 15

AN ACT AMENDING ACT NUMBERED TWENTY-TWO AND ACT
NO. ONE HUNDRED AND ONE, PROVIDING FOR THE
IMPROVEMENT OF THE PORT OF MANILA
ACT NO. 217 17

AN ACT AMENDING ACT NUMBERED ONE HUNDRED AND
NINETY- EIGHT REGULATING THE METHOD OF OFFICIAL
TRANSPORTATION IN THE CITY OF MANILA AND
ELSEWHERE
ACT NO. 237 18

AN ACT TO AMEND SECTION FIVE AND SECTION EIGHT OF
ACT NUMBERED ONE HUNDRED AND NINETY-EIGHT,
RELATING TO OFFICIAL TRANSPORTATION
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LAW NO. TITLE PAGE
ACT NO. 238 20

AN ACT FIXING THE LIMITS OF CAVITE HARBOR, VESTING
THE ADMIRAL OF THE UNITED STATES NAVY IN COMMAND
OF THE ASIATIC STATION WITH POLICE JURISDICTION
THEREOF AND PROVIDING RULES AND REGULATIONS FOR
GOVERNING VESSELS ANCHORING THEREIN
ACT NO. 266 23

AN ACT CREATING THE BUREAU OF COAST GUARD AND
TRANSPORTATION
ACT NO. 275 27

AN ACT AMENDING ACT NUMBERED FIFTY-FIVE, RELATING
TO CRUELTY TO ANIMALS IN TRANSPORTATION, SO AS TO
REQUIRE PROPER MEANS OF SECURING ANIMALS IN
TRANSIT AND OF LOADING AND UNLOADING THEM
ACT NO. 316 28

AN ACT AMENDING ACT NUMBERED SEVENTY-THREE,
RELATING TO THE EXAMINATION AND LICENSING OF
APPLICANTS FOR THE POSITIONS OF MASTER, MATE, AND
PATRON OF SEAGOING VESSELS
ACT NO. 321 29

AN ACT TO AMEND SECTION FIVE OF ACT NUMBERED ONE
HUNDRED AND NINETY-EIGHT, RELATING TO OFFICIAL
TRANSPORTATION, AS AMENDED BY ACT NUMBERED TWO
HUNDRED AND THIRTY-SEVEN
ACT NO. 352 30

AN ACT APPROPRIATING THE SUM OF SIXTEEN THOUSAND
ONE HUNDRED AND NINETY DOLLARS AND FORTY-EIGHT
CENTS, OR SO MUCH THEREOF AS MAY BE NECESSARY, FOR
THE PURCHASE OF A LAUNCH FOR THE BUREAU OF COAST
GUARD AND TRANSPORTATION
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LAW NO. TITLE PAGE
ACT NO. 376 31

AN ACT AUTHORIZING THE COLLECTOR OF CUSTOMS FOR
THE PHILIPPINE ARCHIPELAGO TO CLEAR VESSELS FOR
PORTS NOT OPEN TO VESSELS ENGAGED IN THE COASTWISE
TRADE
ACT NO. 382 32

AN ACT AMENDING ACT NUMBERED TWO HUNDRED AND
THIRTY-EIGHT, FIXING THE LIMITS OF CAVITE HARBOR AND
PROVIDING FOR THE POLICE JURISDICTION THEREOF AND
FOR THE ANCHORAGE OF VESSELS THEREIN, BY CHANGING
THE TITLE OF THE OFFICER IN CHARGE TO “REAR-ADMIRAL
OF THE UNITED STATES NAVY IN COMMAND OF THE ASIATIC
STATION”
ACT NO. 394 33

AN ACT PROVIDING FOR THE CLOSING OF THE PORT OF
SIASSI, DISTRICT OF JOLO, AS A PORT OF ENTRY, AND FOR
THE OPENING OF THE PORT OF APARRI, DISTRICT OF
MANILA, AND AMENDING ACTS NUMBERED THREE
HUNDRED AND FIFTY-FIVE AND THREE HUNDRED AND
SIXTY-SEVEN IN CERTAIN PARTICULARS
ACT NO. 454 34

THIRTY-EIGHT, FIXING THE LIMITS OF CAVITE HARBOR AND
PROVIDING FOR THE PEOPLE JURISDICTION THEREFOR AND
FOR THE ANCHORAGE OF VESSELS THEREIN
ACT NO. 484 35

AN ACT PROVIDING FOR THE GRANTING OF A FRANCHISE
TO CONSTRUCT AN ELECTRIC STREET RAILWAY ON THE
STREETS OF MANILA AND ITS SUBURBS AND A FRANCHISE
TO CONSTRUCT, MAINTAIN, AND OPERATE AN ELECTRIC
LIGHT, HEAT, AND POWER SYSTEM IN THE CITY OF MANILA
AND ITS SUBURBS, AFTER COMPETITIVE BIDDING
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LAW NO. TITLE PAGE
ACT NO. 494 51

AN ACT AUTHORIZING THE COLLECTOR OF CUSTOM FOR
THE PHILIPPINE ARCHIPELAGO TO GRANT A TEMPORARY
LICENSE TO THE VESSEL SAN NICOLAS, NOW IN THE
HARBOR OF MANILA LOADED WITH RICE, TO PROCEED TO
THE PROVINCE OF AMBOS CAMARINES AND THERE TO
DISCHARGE SAID RICE, TAKE ON A CARGO, AND RETURN
TO MANILA
ACT NO. 511 52

AN ACT FIXING THE SALARIES AND WAGES OF OFFICERS
AND CREWS OF THE COAST GUARD FLEET
ACT NO. 520 56

AN ACT PERMITTING THE ISSUING OF SPECIAL LICENSES
TO ENGAGE IN THE COASTWISE TRADE OF THE PHILIPPINE
ISLANDS UNTIL JULY FIRST, NINETEEN HUNDRED AND
FOUR, TO VESSELS NOT ENTITLED TO GENERAL
COASTWISE-TRADE LICENSES UNDER THE CUSTOMS
ADMINISTRATIVE ACT, AND AUTHORIZING THE FIXING OF
MAXIMUM RATES FOR TRANSPORTATION OF MERCHANDISE
AND PASSENGERS IN THE COASTWISE TRADE
ACT NO. 554 66

AN ACT CONFERRING A FRANCHISE UPON THE MANILA
RAILWAY COMPANY, LIMITED TO CONSTRUCT AND OPERATE
A RAILROAD FROM GUIGUINTO, ON THE PRESENT LINE OF
THE MANILA AND DAGUPAN RAILROAD, TO CABANATUAN,
IN THE PROVINCE OF NUEVA ECIJA, AN ESTIMATED
DISTANCE OF SEVENTY-ONE KILOMETERS
ACT NO. 578 79

NUMBERED ONE HUNDRED AND ONE, PROVIDING FOR THE
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LAW NO. TITLE PAGE
ACT NO. 583 81

APPLICANTS FOR THE POSITIONS OF MASTER, MATE AND
PATRON OF SEAGOING VESSELS, AS AMENDED BY ACT
NUMBERED THREE HUNDRED AND SIXTEEN
ACT NO. 586 82

AN ACT TO PROVIDE FOR THE APPOINTMENT OF A
RAILROAD ENGINEER AND AN ASSISTANT TO MAKE A
REPORT FOR USE IN THE UNITED STATES UPON FEASIBLE
RAILROAD LINES IN THE PHILIPPINES ISLANDS, AND TO
ENCOURAGE THE INVESTMENT OF CAPITAL
ACT NO. 592 84

AN ACT AUTHORIZING THE SECRETARY OF COMMERCE AND
POLICE TO ESTABLISH HARBOR LINES WHERE HE DEEMS IT
NECESSARY ON THE SHORES OF HARBORS, BAYS, AND
NAVIGABLE LAKES OR RIVERS OF THE PHILIPPINE ISLANDS,
AND TO APPOINT A COMMISSION FOR THE PURPOSE
ACT NO. 640 86

AN ACT AUTHORIZING THE IMPROVEMENT OF THE PORT
OF CEBU
ACT NO. 641 88

AN ACT AUTHORIZING THE IMPROVEMENT OF THE PORT OF
ILOILO
ACT NO. 667 90

AN ACT PRESCRIBING THE METHOD OF APPLYING TO
GOVERNMENTS OF MUNICIPALITIES, EXCEPT THE CITY OF
MANILA, AND OF PROVINCES FOR FRANCHISES TO
CONSTRUCT AND OPERATE STREET RAILWAY, ELECTRIC
LIGHT AND POWER AND TELEPHONE LINES, THE
CONDITIONS UPON WHICH THE SAME MAY BE GRANTED,
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LAW NO. TITLE PAGE
CERTAIN POWERS OF THE GRANTEES OF SAID FRANCHISES

AND OF GRANTEES OF SIMILAR FRANCHISES UNDER
SPECIAL ACT OF THE COMMISSION, AND FOR OTHER
PURPOSES
ACT NO. 674 97

AN ACT APPROPRIATING ONE MILLION DOLLARS IN MONEY
OF THE UNITED STATES FOR IMPROVEMENT OF THE PORT
OF MANILA
ACT NO. 703 98

RAILWAY COMPANY, LIMITED, TO CONSTRUCT, MAINTAIN,
AND OPERATE A RAILROAD FROM A POINT ON THE
PRESENT MANILA AND DAGUPAN RAILROAD ONE AND
FIVE-HUNDRED-THOUSANDTHS KILOMETERS FROM WHAT
IS KNOWN AT THE PRESENT TIME AS THE TERMINUS OF
SAID RAILROAD IN THE CITY OF MANILA, TO ANTIPOLO,
IN THE PROVINCE OF RIZAL, AN ESTIMATED DISTANCE OF
THIRTY-TWO-KILOMETERS, AND TO CONSTRUCT,
MAINTAIN, AND OPERATE A SPUR OR BRANCH OF SAID
RAILROAD FROM ITS CROSSING OF THE RIVER SAN JUAN
TO A POINT ON THE RIVER PASIG OPPOSITE THE
MUNICIPALITY OF SAN PEDRO MACATI, IN THE PROVINCE
OF RIZAL, AN ESTIMATED DISTANCE OF THREE KILOMETERS
ACT NO. 704 113

AN ACT AMENDING ACT NUMBERED FIVE HUNDRED AND
FIFTY-FOUR, CONFERRING A FRANCHISE UPON THE MANILA
RAILWAY COMPANY, LIMITED, TO CONSTRUCT A BRANCH
RAILROAD FROM GUIGUINTO TO CABANATUAN, BY
REQUIRING THE COMPANY TO PAY ONE AND ONE-HALF
PERCENT OF ITS GROSS EARNINGS TO THE INSULAR
GOVERNMENT
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LAW NO. TITLE PAGE
ACT NO. 705 115

AN ACT AMENDING ACT NUMBERED FIVE HUNDRED AND
FIFTY-FIVE, CONFERRING A FRANCHISE UPON THE MANILA
RAILWAY COMPANY, LIMITED, TO CONSTRUCT TWO
BRANCH ROADS, ONE CONNECTING MABALACAT WITH THE
MAIN LINE, AND ONE CONNECTING BAYAMBANG WITH THE
MAIN LINE, BY REQUIRING THE COMPANY TO PAY ONE AND
ONE-HALF PER CENTUM OF ITS GROSS EARNINGS TO THE
INSULAR GOVERNMENT
ACT NO. 722 117

AN ACT AMENDING ACT NUMBERED SIX HUNDRED AND
FORTY, ENTITLED “AN ACT AUTHORIZING THE
IMPROVEMENT OF THE PORT OF CEBU”
ACT NO. 746 118

AN ACT PROVIDING THAT THE SECRETARY OF COMMERCE
AND POLICE MAY, IN HIS DISCRETION, DIRECT AN
EXTENSION OF TIME WITHIN WHICH THE CONSULTING
ENGINEER TO THE COMMISSION SHALL ADVERTISE FOR
BIDS FOR THE IMPROVEMENT OF THE PORT OF ILOILO
ACT NO. 774 119

AN ACT AMENDING ACT NUMBERED EIGHTY-TWO,
ENTITLED “A GENERAL ACT FOR THE ORGANIZATION OF
MUNICIPAL GOVERNMENT IN THE PHILIPPINE ISLANDS” BY
IMPOSING A TAX UPON SLEDGES AND MAKING IT THE DUTY
OF PROVINCIAL BOARD TO DESIGNATE IMPROVED ROADS
IN THE SEVERAL PROVINCES UPON WHICH IT SHALL BE
UNLAWFUL TO USE CERTAIN CARTS AND SLEDGES
ACT NO. 778 121

THE PHILIPPINE ARCHIPELAGO TO COMMISSION MASTERS
AND WATCH OFFICERS OF COAST GUARD VESSELS TO MAKE
SEARCHES AND SEIZURES
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LAW NO. TITLE PAGE
ACT NO. 780 122

AN ACT PROVIDING FOR THE EXAMINATION AND
LICENSING OF APPLICANTS FOR THE POSITIONS OF MASTER,
MATE, PATRON, AND ENGINEER OF SEAGOING VESSELS IN
THE PHILIPPINE COASTWISE TRADE, AND PRESCRIBING THE
NUMBER OF ENGINEERS TO BE EMPLOYED BY SUCH
VESSELS
ACT NO. 788 129

AN ACT AUTHORIZING THE CONSTRUCTION OF A
FOURTEEN-HUNDRED-TON MARINE RAILWAY AND REPAIR
SHOPS ON ENGINEER ISLAND, AND AUTHORIZING THE
EXPENDITURE OF THE SUM OF ONE HUNDRED AND FORTY
THOUSAND DOLLARS, UNITED STATES CURRENCY,
THEREFOR
ACT NO. 829 132

AN ACT AUTHORIZING THE PROVINCIAL BOARD OF
PROVINCES WHICH ARE OPERATING LAUNCHES FOR THE
USE OF THEIR PROVINCIAL OFFICERS TO CHARGE
REASONABLE RATES OF FARE FOR TRANSPORTATIONS OF
NONOFFICIAL PASSENGERS
ACT NO. 863 134

AN ACT AMENDING SECTION ONE OF ACT NUMBERED FIVE
HUNDRED AND TWENTY, KNOWN AS THE “COASTWISE
TRADE ACT,” BY MAKING THE MINIMUM TONNAGE FOR
VESSELS LICENSED THEREUNDER FIFTY GROSS TONS
ACT NO. 898 135

AN ACT PROVIDING FOR THE CLOSING OF THE PORT OF
APARRI AS A PORT OF ENTRY, CREATING THE PORTS OF
BONGAO, CAPE MELVILLE, BALABAC ISLAND, AND PUERTO
PRINCESA PORTS OF ENTRY, AND AMENDING SECTION
THREE HUNDRED AND ONE OF ACT NUMBERED THREE
HUNDRED AND FIFTY-FIVE
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LAW NO. TITLE PAGE
ACT NO. 1022 137

AN ACT AMENDING SECTION TEN OF ACT NUMBERED SIX
HUNDRED AND SIXTY-SEVEN, BY PROVIDING THAT A
MORTGAGE ISSUED BY AN OWNER OF AN ELECTRIC STREET
RAILWAY, ELECTRIC TELEPHONE LINE, OR AN ELECTRIC
LIGHT OR POWER LINE CONSTRUCTED BY AUTHORITY OF
A GENERAL OR SPECIAL ACT OF THE COMMISSION, UPON
THE FRANCHISES, PLANT, EQUIPMENT, AND PROPERTY
OWNED AND OPERATED IN CONNECTION WITH THE
FRANCHISE THEREFOR, MAY BE RECORDED IN THE ENGLISH
OR SPANISH LANGUAGE
ACT NO. 1023 139

AN ACT AUTHORIZING PROVINCIAL BOARDS, IN THEIR
DISCRETION, TO EXTEND THE TIME WITHIN WHICH MAY BE
USED THE CARTS PROHIBITED BY ACT NUMBERED SEVEN
HUNDRED AND SEVENTY-FOUR TO A DATE NOT LATER THAN
THE THIRTY-FIRST OF MAY, NINETEEN HUNDRED AND FOUR
ACT NO. 1025 140

AN ACT AMENDING ACT NUMBERED SEVEN HUNDRED AND
EIGHTY, SO AS TO AUTHORIZE THE BOARD THEREIN
CREATED TO RECOGNIZE LICENSES ISSUED BY THE SPANISH
GOVERNMENT AND TO GRANT LICENSES THEREON
WITHOUT WRITTEN EXAMINATION, AND PROVIDING FOR
THE RENEWAL OF LICENSES ALREADY GRANTED
ACT NO. 1026 142

AN ACT FIXING THE ANNUAL TONNAGE TAX UPON CASCOES
AND OTHER VESSELS NOT DECKED OVER AND NOT
PROPELLED BY THEIR OWN STEAM, SAIL, OR OTHER
SIMILAR MOTIVE POWER, AND CONSTRUCTED IN THE
PHILIPPINE ISLANDS, AND AMENDING SECTION ONE
HUNDRED AND THIRTY-FIVE OF THE PHILIPPINE CUSTOMS
ADMINISTRATIVE ACT
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LAW NO. TITLE PAGE
ACT NO. 1047 143

AN ACT APPROPRIATING THE SUM OF FIVE HUNDRED
THOUSAND DOLLARS, IN MONEY OF THE UNITED STATES,
FOR CONTINUING THE IMPROVEMENT OF THE PORT OF
MANILA
ACT NO. 1066 144

AN ACT EXEMPTING SMALL VESSELS FROM THE
REQUIREMENTS OF ACT NUMBERED SEVEN HUNDRED AND
EIGHTY, ENTITLED “AN ACT PROVIDING FOR THE
EXAMINATION AND LICENSING OF APPLICANTS FOR THE
POSITIONS OF MASTER, MATE, PATRON, AND ENGINEER OF
SEAGOING VESSELS IN THE PHILIPPINE COASTWISE TRADE,
AND PRESCRIBING THE NUMBER OF ENGINEERS TO BE
EMPLOYED BY SUCH VESSELS”
ACT NO. 1090 145

AN ACT AUTHORIZING PROVINCIAL BOARDS OF PROVINCES
OPERATING LAUNCHES FOR THE USE OF THEIR PROVINCIAL
OFFICERS TO MAKE REASONABLE CHARGES FOR
TRANSPORATATION OF NONOFFICIAL PASSENGERS AND
FREIGHT AND AUTHORIZING THE CARRYING OF
UNOFFICIAL PASSENGERS AND CARGOES UNDER CERTAIN
CIRCUMSTANCES ON BOATS CONTROLLED BY THE BUREAU
OF COAST GUARD AND TRANSPORTATION, AND REPEALING
ACT NUMBERED EIGHT HUNDRED AND TWENTY-NINE
ACT NO. 1111 147

AN ACT GRANTING A FRANCHISE TO CHARLES W. CARSON
TO CONSTRUCT, MAINTAIN, AND OPERATE BY ANIMAL
POWER A TRAMWAY WITHIN THE LIMITS OF THE
MUNICIPALITY OF DAET, IN THE PROVINCE OF AMBOS
CAMABINES, FROM THE WHARVES OF THE BARRIO OF
MERCEDES, IN SAID MUNICIPALITY, TO THE TOWN PROPER
OR POBLACION OF DAET, AND THROUGH THE SAID TOWN
OF DAET TO A POINT ON THE PUBLIC HIGHWAY ONE MILE
DISTANT FROM THE MUNICIPAL BUILDING OF SAID
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LAW NO. TITLE PAGE
MUNICIPALITY OF DAET IN THE DIRECTION OF THE TOWN

OF TALISAY
ACT NO. 1112 159

AN ACT AUTHORIZING THE ASSIGNMENT, SALE, AND
TRANSFER TO THE MANILA ELECTRIC RAILROAD AND
LIGHT COMPANY OF ALL THE ASSETS OF THE COMPANIA DE
LOS TRANVIAS DE FILIPINAS, PROVIDING FOR THE
SURRENDER BY THE MANILA ELECTRIC RAILROAD AND
LIGHT COMPANY OF THE FRANCHISES, AND AMENDMENTS
THERETO, OF THE SAID COMPANIA DE LOS TRANVIAS DE
FILIPINAS, AND FOR CERTAIN AMENDMENTS TO
ORDINANCE NUMBERED FORTY-FOUR OF THE MUNICIPAL
BOARD OF MANILA, ENACTED IN PURSUANCE OF ACT
NUMBERED FOUR HUNDRED AND EIGHTY-FOUR OF THE
PHILIPPINE COMMISSION, AND FOR THE OPENING OF
CERTAIN NEW STREETS BY THE MUNICIPAL BOARD OF
MANILA, AND FOR A FRANCHISE TO THE MANILA ELECTRIC
RAILROAD AND LIGHT COMPANY TO CONSTRUCT,
MAINTAIN, AND OPERATE AN ELECTRIC STREET RAILWAY
AND AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM FROM
THE LIMITS OF THE CITY OF MANILA TO MALABON
ACT NO. 1157 170

AN ACT TO SUSPEND ALL TAXES IMPOSED BY LAW ON
DRAFT CARTS AND SLEDGES IN THE PROVINCE OF ISABELA
ACT NO. 1160 171

PHILIPPINE ISLANDS TO CLEAR FOREIGN VESSELS FOR THE
PORT OF ISABELA DE BASILAN
ACT NO. 1223 172

AN ACT GRANTING TO CHO HANG LIN, OF MANILA,
PHILIPPINE ISLANDS, A REVOCABLE LICENSE TO
CONSTRUCT, OPERATE, AND MAINTAIN A SLIPWAY OR
MARINE RAILWAY ON THE WEST BANK OF THE ILOILO
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LAW NO. TITLE PAGE
RIVER, IN THE MUNICIPALITY OF ILOILO, PROVINCE OF

ILOILO, ISLAND OF PANAY
ACT NO. 1256 175

AN ACT GRANTING TO JUAN BAUTISTA FERNANDEZ, OF
CEBU, A LICENSE TO CONSTRUCT, OPERATE, AND MAINTAIN
A SLIPWAY OR MARINE RAILWAY ON A TRACT OF LAND
SITUATED IN THE BARRIO OF GANGHANA, IN THE
MUNICIPALITY OF OPON, PROVINCE OF CEBU
ACT NO. 1258 178

AN ACT MAKING ADDITIONAL PROVISIONS TO THOSE
CONTAINED IN ACT NUMBERED ONE HUNDRED AND
NINETY, RELATING TO THE EXERCISE OF THE RIGHT OF
EMINENT DOMAIN IN CASES WHERE THE EXERCISE OF SUCH
POWER IS INVOKED BY A RAILROAD CORPORATION FOR THE
PURPOSES OF CONSTRUCTING, EXTENDING, OR OPERATING
ITS LINE
ACT NO. 1288 182

AN ACT AUTHORIZING AND DIRECTING REGISTERS OF
DEEDS TO PERFORM CERTAIN DUTIES OF COMMERCIAL
REGISTERS AS DEFINED IN TITLE TWO OF THE CODE OF
COMMERCE, AND PROVIDING THAT THE DOCUMENTING,
REGISTRY, ENROLLMENT, AND LICENSING OF VESSELS IN
ACCORDANCE WITH THE CUSTOMS ADMINISTRATIVE ACT
AND THE CUSTOMS RULES AND REGULATIONS SHALL BE
DEEMED TO BE A REGISTRY OF VESSELS WITH THE
MEANING OF SAID TITLE
ACT NO. 1310 183

AN ACT TO ENCOURAGE AND AID THE PHILIPPINE
COASTWISE TRADE, TO SECURE THE CARRIAGE OF MAILS,
GOVERNMENT FREIGHT AND PASSENGERS BY
COMMERCIAL VESSELS UNDER CONTRACT, TO EFFECT
UNIFORM REASONABLE RATES FOR THE GOVERNMENT AND
PUBLIC, TO INCREASE THE SAFETY STANDARDS AND
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LAW NO. TITLE PAGE
SERVICE OF CONTRACTING VESSELS, AND FOR OTHER

PURPOSES
ACT NO. 1339 188

AN ACT TRANSFERING TO THE OFFICE OF THE
IMPROVEMENT OF THE PORT OF MANILA, WHICH SHALL
HEREAFTER BE KNOWN AS THE OFFICE OF PORT WORKS,
THE DUTY OF SUPERVISING THE CONSTRUCTION OF THE
PORT WORKS AT CEBU AND ILOILO, AND FOR OTHER
PURPOSES
ACT NO. 1340 189

AN ACT AUTHORIZING THE BOARD OF HEALTH FOR THE
PHILIPPINE ISLANDS TO PROMULGATE QUARANTINE
REGULATIONS FOR THE GOVERNMENT OF VESSELS
ENGAGED IN THE COASTWISE TRADE OF THE PHILIPPINE
ISLANDS
ACT NO. 1341 190

AN ACT TO AMEND ACT NUMBERED THREE HUNDRED AND
FIFTY-FIVE, KNOWN AS THE PHILIPPINE CUSTOMS
ADMINISTRATIVE ACT, BY DECLARING ALL PORTS AND
PLACES IN THE PHILIPPINE ISLANDS OPEN TO VESSELS
LICENSED TO ENGAGE IN THE COASTWISE TRADE, AND FOR
OTHER PURPOSES
ACT NO. 1348 194

AN ACT CONFERRING UPON THE MANILA ELECTRIC
RAILROAD AND LIGHT COMPANY A FRANCHISE FOR AN
EXTENSION OF ITS LINES, AND GRANTING IT THE RIGHT TO
EXPROPRIATE LAND NECESSARY FOR THE PURPOSES OF
THE COMPANY
ACT NO. 1354 196

AN ACT EXEMPTING ALL BOATS OF LESS THAN FIFTEEN
GROSS TONS FROM TAKING OUT A LICENSE TO ENGAGE IN
THE COASTWISE TRADE OF THE PHILIPPINE ISLANDS
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ACT NO. 1366 197

AN ACT CREATING THE PORT OF JURATA, ON THE ISLAND
OF CAGAYAN DE JOLO, A PORT OF ENTRY, AND AMENDING
SECTION THREE HUNDRED AND ONE OF ACT NUMBERED
THREE HUNDRED AND FIFTY-FIVE, AS AMENDED
ACT NO. 1387 198

AN ACT PROVIDING FOR THE LICENSING OF VESSELS
ENGAGING IN THE COASTWISE TRADE AND VESSELS
ENGAGING EXCLUSIVELY IN THE LIGHTERAGE AND
HARBOR BUSINESS IN THE PHILIPPINE ISLANDS, AND
FIXING THE LICENSE FEES THEREFOR
ACT NO. 1432 200

AN ACT TRANSFERRING THE NET INCOME ARISING FROM
THE OPERATION OF THE CUSTOMS TRAMWAY ON THE
WHARF AT JOLO TO THE GOVERNMENT OF THE MORO
PROVINCE
ACT NO. 1435 201

AN ACT AMENDING ACT NUMBERED ELEVEN HUNDRED
AND ELEVEN ENTITLED “AN ACT GRANTING A FRANCHISE
TO CHARLES W. CARSON TO CONSTRUCT, MAINTAIN, AND
OPERATE BY ANIMAL POWER A TRAMWAY WITHIN THE
LIMITS OF THE MUNICIPALITY OF DAET, IN THE PROVINCE
OF AMBOS CAMARINES, FROM THE WHARVES OF THE
BARRIO OF MERCEDES, IN SAID MUNICIPALITY, TO THE
TOWN PROPER OR POBLACION OF DAET, AND THROUGH
THE SAID TOWN OF DAET TO A POINT ON THE PUBLIC
HIGHWAY ONE MILE DISTANT FROM THE MUNICIPAL
BUILDING OF SAID MUNICIPALITY OF DAET IN THE
DIRECTION OF THE TOWN OF TALISAY”
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LAW NO. TITLE PAGE
ACT NO. 1439 203

AN ACT PROVIDING A METHOD OF ENABLING MASTERS OF
SHIPS IN CERTAIN CASES TO SECURE THE RETURN TO THEIR
SHIPS OF SEAMEN WHO HAVE DESERTED THEREFROM IN
THE PHILIPPINE ISLANDS
ACT NO. 1446 205

AN ACT GRANTING A FRANCHISE TO CHARLES M. SWIFT TO
CONSTRUCT, MAINTAIN, AND OPERATE AN ELECTRIC
RAILWAY, AND TO CONSTRUCT, MAINTAIN, AND OPERATE
AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM FROM A
POINT IN THE CITY OF MANILA IN AN EASTERLY DIRECTION
TO THE TOWN OF PASIG, IN THE PROVINCE OF RIZAL
ACT NO. 1447 215

AN ACT GRANTING PERMISSION TO THE MANILA ELECTRIC
RAILROAD AND LIGHT COMPANY TO CONSTRUCT CERTAIN
TRACKS AND OVERHEAD WORK IN THE CITY OF MANILA
AND USE THE SAME, AND TO CARRY FREIGHT AND PARCELS
OVER ITS LINES
ACT NO. 1448 217

AN ACT GRANTING A FRANCHISE TO WALTER E. OLSEN TO
CONSTRUCT, MAINTAIN, AND OPERATE BY STEAMPOWER A
TRAMWAY FROM THE TOWN OF PANIQUE, SITUATED ON THE
LINE OF THE MANILA AND DAGUPAN RAILROAD, PROVINCE
OF TARLAC, TO THE TOWN OF CAMILING, IN THE SAME
PROVINCE, APPROXIMATELY A DISTANCE OF TEN MILES
ACT NO. 1452 229

AN ACT TO AMEND ACT NUMBERED SEVEN HUNDRED AND
THREE BY GRANTING TO THE MANILA RAILWAY COMPANY,
LIMITED, A REVOCABLE LICENSE TO CONSTRUCT,
MAINTAIN, AND OPERATE A FERRY FROM THE FORT
WILLIAM MCKINLEY STATION ON THE NORTH BANK TO A
POINT IMMEDIATELY OPPOSITE ON THE SOUTH BANK OF
THE PASIG RIVER
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ACT NO. 1453 231

AN ACT TO AMEND SECTION TWO OF ACT NUMBERED FIVE
HUNDRED AND FIFTY-FOUR, SO AS TO GRANT TO THE
MANILA RAILWAY COMPANY, LIMITED, THE RIGHT TO
CONSTRUCT, MAINTAIN, AND OPERATE A FREIGHT SPUR SIX
HUNDRED AND TWENTY METERS IN LENGTH FROM A POINT
EIGHTY-THREE THOUSAND SIX HUNDRED LINEAL METERS
FROM THE INITIAL POINT AT BIGAA OF THE BIGAA AND
CABANATUAN RAILROAD TO A POINT ON THE EAST BANK
OF THE PAMPANGA RIVER IN THE VILLAGE OF SANTA ROSA,
NUEVA ECIJA, AND THE RIGHT TO CONSTRUCT, MAINTAIN,
AND OPERATE A CABLEWAY FOUR HUNDRED METERS IN
LENGTH FROM SAID POINT ON THE EAST BANK OF THE
PAMPANGA RIVER TO A POINT IMMEDIATELY OPPOSITE ON
THE WEST BANK OF SAID RIVER
ACT NO. 1454 233

AN ACT CREATING THE ENTRY PORT OF SITANKI, AMENDING
ACT NUMBERED FOURTEEN HUNDRED AND SIXTEEN, AND
FOR OTHER PURPOSES
ACT NO. 1510 235

AN ACT GRANTING TO THE MANILA RAILROAD COMPANY
A CONCESSION FOR RAILWAY LINES IN THE ISLAND OF
LUZON, AND PROVIDING IN RESPECT OF PROCEEDINGS FOR
CONDEMNATION OF LAND BY PUBLIC SERVICE
CORPORATIONS
ACT NO. 1511 249

AN ACT PROVIDING FOR THE CONSTRUCTION, REPAIR, AND
MAINTENANCE OF PUBLIC HIGHWAYS, BRIDGES, WHARVES,
AND TRAILS IN THOSE PROVINCES ORGANIZED UNDER THE
PROVINCIAL GOVERNMENT ACT WHICH SHALL VOTE TO
ADOPT THE PROVISIONS OF THIS ACT IN THE MANNER
HEREAFTER PROVIDED, AND PROVIDING A PENALTY FOR
MALICIOUS INJURIES TO HIGHWAYS, BRIDGES, WHARVES,
AND TRAILS
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ACT NO. 1522 256

AN ACT TO AMEND SECTION THREE OF ACT NUMBERED
SEVEN HUNDRED AND EIGHTY, ENTITLED “AN ACT
PROVIDING FOR THE EXAMINATION AND LICENSING OF
APPLICANTS FOR THE POSITIONS OF MASTER, MATE,
PATRON, AND ENGINEER OF SEAGOING VESSELS IN THE
PHILIPPINE COASTWISE TRADE, AND PRESCRIBING THE
VESSELS”
ACT NO. 1535 260

AN ACT TO ENCOURAGE THE SHIPPING TRADE IN THE
PHILIPPINE ISLANDS BY ABOLISHING THE COLLECTION OF
ALL TONNAGE DUES ON VESSELS COMING FROM FOREIGN
PORTS OF ENTRY IN THE PHILIPPINE ISLANDS
ACT NO. 1563 262

ACT TO AMEND ACT NUMBERED FOURTEEN HUNDRED AND
FIFTY-FOUR, ENTITLED “AN ACT CREATING THE ENTRY PORT
OF SITANKI, AMENDING ACT NUMBERED FOURTEEN
HUNDRED AND SIXTEEN, AND FOR OTHER PURPOSES,” BY
INCREASING THE COMPENSATION OF THE DEPUTY
COLLECTOR OF CUSTOMS AND AUTHORIZING THE
EMPLOYMENT OF TWO BOATMEN AT SITANKI
ACT NO. 1566 263

AN ACT REGULATING THE FREE ENTRY OF CERTAIN
RAILROAD MATERIAL IMPORTED INTO THE PHILIPPINE
ISLANDS
ACT NO. 1568 267

AN ACT TO AMEND SECTION FOURTEEN OF ACT NUMBERED
FOURTEEN HUNDRED AND SEVEN, ENTITLED “THE
REORGANIZATION ACT,” REPEALING SECTION SIXTEEN OF
SAID ACT AND MERGING THE BUREAU OF PORT WORKS
WITH THE BUREAU OF NAVIGATION
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ACT NO. 1589 269

AN ACT GRANTING THE MANILA SUBURBAN RAILWAYS
COMPANY AN EXTENSION OF TIME WITHIN WHICH TO
COMPLETE THAT PORTION OF ITS LINE EASTWARD OF FORT
WILLIAM MCKINLEY; GRANTING THE RIGHT TO BUILD A
BRANCH LINE FROM ANY POINT ALONG ITS PRESENT LINE
EASTWARD OF THE BARRIO OF SAN PEDRO MACATI, IN A
SOUTHERLY DIRECTION TO THE TOWN OF TAGUIG AND TO
THE LAGUNA DE BAY; AND GRANTING THE RIGHT TO
TRANSPORT FREIGHT, EXPRESS PACKAGES, BAGGAGE, AND
THE MAILS OVER ITS LINES, UNDER REASONABLE
REGULATIONS, AND TO MAKE REASONABLE CHARGES FOR
THE SAME
ACT NO. 1591 272

AN ACT TO AMEND ACTS NUMBERED FIFTEEN HUNDRED
AND SEVEN AND FIFTEEN HUNDRED AND TWENTY-SEVEN,
BY REMOVING THE EMPLOYEES OF THE OFFICE OF THE
SUPERVISING RAILWAY EXPERT FROM THE BUREAU OF
PUBLIC WORKS AND ESTABLISHING IT AS A SEPARATE AND
INDEPENDENT OFFICE AND MAKING ADDITIONAL
APPROPRIATION FOR THE OFFICE OF THE SUPERVISING
RAILWAY EXPERT
ACT NO. 1592 275

AN ACT AMENDING ACT NUMBERED TWELVE HUNDRED
AND FIFTY-EIGHT, ENTITLED “AN ACT MAKING ADDITIONAL
PROVISIONS TO THOSE CONTAINED IN ACT NUMBERED ONE
HUNDRED AND NINETY, RELATING TO THE EXERCISE OF THE
RIGHT OF EMINENT DOMAIN IN CASES WHERE THE
EXERCISE OF SUCH POWER IS INVOKED BY A RAILROAD
CORPORATION FOR THE PURPOSES OF CONSTRUCTING,
EXTENDING, OR OPERATING ITS LINE”
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ACT NO. 1602 277

SEAGOING VESSELS IN THE PHILIPPINE COASTWISE TRADE,
AND PRESCRIBING THE NUMBER OF ENGINEERS TO BE
EMPLOYED BY SUCH VESSELS”
ACT NO. 1653 279

AN ACT TO AMEND ACT NUMBERED FIFTEEN HUNDRED
AND ELEVEN, ENTITLED “THE PHILIPPINE ROAD LAW,” BY
ENABLING MUNICIPALITIES TO AVAIL THEMSELVES OF ITS
PROVISIONS IN THE ABSENCE OF A PROVINCIAL VOTE OF
ACCEPTANCE AND BY ENABLING PROVINCES AND
MUNICIPALITIES TO AVAIL THEMSELVES OF ITS PROVISIONS
FOR A LIMITED PERIOD OF TIME
ACT NO. 1672 281

AN ACT TO AMEND ACT NUMBERED EIGHTY-THREE BY
PROVIDING FOR THE ESTABLISHMENT AND MAINTENANCE
UNDER CERTAIN CONDITIONS OF PROVIDING TOLL FERRIES
ACT NO. 1714 283

AN ACT TO AMEND SUBDIVISION (D) OF SECTION ONE OF
ACT NUMBERED FIFTEEN HUNDRED AND TEN SO AS TO
AUTHORIZE A CHANGE OF THE RAILROAD ROUTE THEREIN
PRESCIRBED, AND AUTHORIZING AND PROVIDING FOR THE
CONSTRUCTION OF MILEAGE EQUIVALENT TO THAT OF THE
ROUTE ABANDONED, AND FOR OTHER PURPOSES
ACT NO. 1735 284

AN ACT AUTHORIZING THE GOVERNOR-GENERAL TO
EXECUTE A CONCESSIONARY GRANT OR CONTRACT FOR A
RAILWAY LINE TO BAGUIO, PROVINCE OF BENGUET, AND
FOR OTHER PURPOSES
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ACT NO. 1738 299

AN ACT TO AMEND SECTION TWENTY-FOUR OF ACT
NUMBERED FIVE HUNDRED AND TWENTY BY PROVIDING
FOR ENSIGNS FOR VESSELS OPERATING UNDER THE
CONTRACTS AUTHORIZED BY ACT NUMBNERED THIRTEEN
HUNDRED AND TEN ACT NUMBERED SEVENTEEN HUNDRED
AND FIFTEEN
ACT NO. 1751 301

AN ACT TO PROVIDE FOR THE ARREST AND RETURN TO SHIP
OF SEAMEN DESERTING FROM CERTAIN MERCHANT
VESSELS IN THE PHILIPPINE ISLANDS; FOR THE
ADJUDICATION BY CONSULS OF CERTAIN DISPUTES AND
FOR THE ENFORCEMENT OF CONSULAR DECISIONS IN SUCH
CASES; AND REPEALING ACT NUMBERED FOURTEEN
HUNDRED AND THIRTY-NINE
ACT NO. 1762 305

AN ACT FIXING THE MAXIMUM RATES WHICH MAY BE
CHARGED BY THE MANILA SUBURBAN RAILWAYS
COMPANY
ACT NO. 1812 307

AN ACT PROVIDING FOR THE FILING WITH THE DIVISION
OF ARCHIVES PATENTS, COPYRIGHTS, AND TRADE-MARKS
OF THE EXECUTIVE BUREAU OF THE CONTRACTS OF
MORTGAGE EXECUTED BY THE MANILA RAILROAD
COMPANY AS SECURITY FOR THE ISSUANCE OF BONDS AND
OTHER OBLIGATIONS, CREATING AND FIXING UPON THE
PROPERTY COVERED BY SAID INSTRUMENTS A LIEN AT AND
FROM THE TIME OF FILING THE SAME, AND EXEMPTING
SAID INSTRUMENTS FROM THE PAYMENT OF STAMP TAXES,
AND FOR OTHER PURPOSES
xxi
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ACT NO. 1820 309

AN ACT PROVIDING FOR THE EXPENDITURE OF SEVENTEEN
THOUSAND DOLLARS, UNITED STATES CURRENCY, FOR
SALARY AND TRAVELING EXPENSES OF A DELEGATE FROM
THE PHILIPPINE ISLANDS AND SUBORDINATE PERSONNEL
TO ATTEND THE INTERNATIONAL NAVIGATION
CONFERENCE TO BE HELD FROM THE TWENTY-EIGHT, IN
SAINT PETERSBURG, RUSSIA, AND FOR OTHER PURPOSES
ACT NO. 1885 311

AN ACT AUTHORIZING THE INSULAR COLLECTOR OF
CUSTOMS TO CLEAR FOREIGN VESSELS FOR ANY PORT OF
THE MORO PROVINCE DESIGNATED BY HIM FOR THAT
PURPOSE, UNDER SUCH CONDITIONS AND REGULATIONS AS
HE MAY, WITH THE APPROVAL OF THE SECRETARY OF
FINACE AND JUSTICE, IMPOSE
ACT NO. 1889 312

AN ACT AMENDING SUBSECTION ONE OF PARAGRAPH
THREE OF ACT NUMBERED FOURTEEN HUNDRED AND
NINETY-SEVEN, CHANGING THE TERMINI OF THE LINE OF
THE PHILIPPINE RAILWAY COMPANY IN THE ISLAND OF
NEGROS
ACT NO. 1900 314

AN ACT AMENDING ACT NUMBERED TWELVE HUNDRED
AND EIGHTY-EIGHT, ENTITLED “AN ACT AUTHORIZING AND
DIRECTING REGISTERS OF DEEDS TO PERFORM CERTAIN
DUTIES OF COMMERCIAL REGISTERS AS DEFINED IN TITLE
TWO OF THE CODE OF COMMERCE, AND PROVIDING THAT
THE DOCUMENTING, REGISTRY, ENROLLMENT, AND
LICENSING OF VESSELS IN ACCORDANCE WITH THE
CUSTOMS ADMINISTRATIVE ACT AND THE CUSTOMS RULES
AND REGULATIONS SHALL BE DEEMED TO BE A REGISTRY
OF VESSELS WITHIN THE MEANING OF SAID TITLE,” BY
PROVIDING THAT THE INSULAR COLLECTOR OF CUSTOMS
SHALL PERFORM THE DUTIES OF COMMERCIAL REGISTER
xxii
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CONCERNING THE REGISTERING OF VESSELS, AS DEFINED

IN TITLE TWO OF THE CODE OF COMMERCE
ACT NO. 1977 316

AN ACT PROVIDING FOR THE FILING, WITH THE DIVISION
OF ARCHIVES, PATENTS, COPYRIGHTS, AND TRADE-MARKS
OF THE EXECUTIVE BUREAU, OF THE FIRST DEED OF
MORTGAGE, TRUST OR GUARANTY, DATED THE NINTEENTH
DAY OF MAY, NINETEEN HUNDRED AND NINE, EXECUTED
BY THE MANILA RAILROAD COMPANY IN FAVOR OF THE
GOVERNMENT OF THE PHILIPPINE ISLANDS, AND OF THE
FARMERS’ LOAN AND TRUST COMPANY OF NEW YORK, AS
TRUSTEES, CREATING UPON THE PROPERTY MENTIONED IN
SAID INSTRUMENT A LIEN FROM THE DATE OF ITS FILING,
MODIFYING THE PROVISIONS OF ACT NUMBERED EIGHTEEN
HUNDRED AND TWELVE, IN REGARD TO THE LIEN OF THE
MORTGAGES FILED HERETOFORE, AND EXEMPTING SAID
INSTRUMENTS FROM THE PAYMENT OF STAMP TAXES, AND
THE FILING OF THE SUBORDINATING AGREEMENT
ACT NO. 1980 317

AN ACT TO PROVIDE FOR THE CREATION OF A
COMMISSIONED AND ENLISTED SERVICE WITHIN THE
BUREAU OF NAVIGATION, THE CREATION OF A PENSION
FUND IN CONNECTION THEREWITH, AND FOR THE
PUNISHMENT OF OFFENSES AGAINST GOOD ORDER AND
DISCIPLINE WITHIN SUCH SERVICE
ACT NO. 2034 330

AN ACT AUTHORIZING THE GRANTING ON CERTAIN
CONDITIONS OF A FRANCHISE TO CONSTRUCT, MAINTAIN,
AND OPERATE A STREET RAILWAY IN THE MUNICIPALITY
OF CEBU
ACT NO. 2053 338

AN ACT TO AMEND ARTICLE TWO OF THE FRANCHISE
CONTAINED IN ACT NUMBERED FOURTEEN HUNDRED AND
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NINETY SEVEN OF THE PHILIPPINE COMMISSION, ENTITLED”

AN ACT GRANTING TO THE PHILIPPINE RAILWAY COMPANY
A CONCESSION TO CONSTRUCT RAILWAYS IN THE ISLANDS
OF PANAY, NEGROS, AND CEBU, AND GUARANTEEING
INTEREST IN THE FIRST MORTGAGE BONDS THEROF, UNDER
AUTHORITY OF THE ACT OF CONGRESS APPROVED
FEBRUARY SIXTH, NINETEEN HUNDRED AND FIVE,” BY
EXTENDING ITS PROVISIONS, UNDER CERTAIN LIMITATIONS,
TO THE FORESHORE AND RECLAIMED LAND
ACT NO. 2157 340

AN ACT AUTHORIZING THE GRANTING OF REVOCABLE
LICENSES TO CONSTRUCT AND OPERATE TRAMWAYS ON
PUBLIC ROADS AND FOR OTHER PURPOSES
ACT NO. 2242 344

AN ACT AMENDING ACT NUMBERED NINETEEN HUNDRED
AND EIGTHY, ENTITLED “AN ACT TO PROVIDE FOR THE
CREATION OF COMMISSIONED AND ENLISTED SERVICE
WITHIN THE BUREAU OF NAVIGATION, THE CREATION OF A
PENSION FUND IN CONNECTION THEREWITH, AND FOR THE
DISCIPLINE WITHIN SUCH SERVICE,” BY MAKING THE
PROVISIONS OF SECTION TWO THEREOF RETROACTIVE FOR
CERTAIN COMMISSIONED OFFICERS, AND FOR OTHER
PURPOSES
ACT NO. 2256 345

AN ACT TO AMEND ACT NUMBERED TWENTY-ONE
HUNDRED AND FIFTY-NINE, ENTITLED “AN ACT TO
REGULATE MOTOR VEHICLE TRAFFIC IN THE PHILIPPINE
ISLANDS, TO PROVIDE FOR THE REGISTRATION OF MOTOR
VEHICLES AND THE LICENSING OF OPERATORS, AND TO
REQUIRE ALL VEHICLES ON HIGHWAYS TO CARRY LIGHTS,
AND FOR OTHER PURPOSES,” BY PROVIDING PENALTIES FOR
THE VIOLATION OF CERTAIN PROVISION THEREOF, AND FOR
OTHER PURPOSES
xxiv
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ACT NO. 2282 354

AN ACT GRANTING A FRANCHISE TO HERBERT C. HEALD TO
CONSTRUCT OR ACQUIRE BY PURCHASE AND FOR A PERIOD
OF TWENTY YEARS, TO MAINTAIN AND OPERATE BY STEAM
OR OTHER POWER AN AERIAL TRAMWAY FROM CAMP
COLGANS NEAR KILOMETER TWENTY-FOUR ON THE
BENGUET ROAD TO THE CITY OF BAGUIO, SUBPROVINCE
OF BENGUET, MOUNTAIN PROVINCE, APPROXIMATELY A
DISTANCE OF FIVE KILOMETERS
ACT NO. 2308 361

AN ACT ABOLISHING THE BUREAU OF NAVIGATION AND
TRANSFERRING TO OTHER BUREAUS CERTAIN PROPERTY,
EQUIPMENT, FUNCTIONS, AND DUTIES HITHERTO
APPERTAINING THERETO; PROVIDING FOR THE SALE OF
CERTAIN PROPERTY, AUTHORIZING THE SALE OR LEASE OF
THE MARINE RAILWAY AND REPAIR SHOP, AND REPEALING
CERTAIN PROVISIONS OF LAW RELATING TO THE BUREAU
OF NAVIGATION
ACT NO. 2328 365

AN ACT TO AMEND ARTICLES NINETEEN AND TWENTY-TWO
OF SECTION TWO OF ACT NUMBERED TWO THOUSAND AND
THIRTY-FOUR, ENTITLED “AN ACT AUTHORIZING THE
GRANTING ON CERTAIN CONDITIONS OF A FRANCHISE TO
CONSTRUCT, MAINTAIN, AND OPERATE A STREET RAILWAY
IN THE MUNICIPALITY OF CEBU,” BY EXTENDING THE TIME
WITHIN WHICH THE CONSTRUCTION OF THE STREET
RAILWAY THEREIN PROVIDED FOR SHALL BE COMPLETED,
AND BY EXTENDING THE TIME FOR REPAYMENT TO THE
GRANTEE OF THE MONEY, BONDS OR OTHER SECURITIES
DEPOSITED WITH THE INSULAR TREASURY AS SECURITY
FOR THE PERFORMANCE OF THE OBLIGATIONS OF SAID
FRANCHISE
xxv
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ACT NO. 2346 367

AN ACT TO REPEAL ACT NUMBERED NINETEEN HUNDRED
AND EIGTHY, ENTITLED “AN ACT TO PROVIDE FOR THE
WITHIN THE BUREAU OF NAVIGATION, THE CREATION OF A
PENSION FUND IN CONNECTION THEREWITH, AND FOR THE
DISCIPLINE WITHIN SUCH SERVICE,” AND ACT NUMBERED
TWENTY-TWO HUNDRED AND FORTY-TWO, ENTITLED “AN
ACT AMENDING ACT NUMBERED NINETEEN HUNDRED AND
EIGHTY, ENTITLED ‘AN ACT TO PROVIDE FOR THE CREATION
OF A COMMISSIONED AND ENLISTED SERVICE WITHIN THE
BUREAU OF NAVIGATION, THE CREATION OF A PENSION
FUND IN CONNECTION THEREWITH, AND FOR THE
DISCIPLINE WITHIN SUCH SERVICE,’ BY MAKING THE
PROVISIONS OF SECTION TWO THEREOF RETROACTIVE FOR
CERTAIN COMMISSIONED OFFICERS, AND FOR OTHER
PURPOSES,” AND TO PROVIDE FOR THE REFUND OF THE
PENSION FUND CREATED BY SAID ACT NUMBERED
NINETEEN HUNDRED AND EIGHTY
ACT NO. 2373 369

AN ACT TO AMEND PARAGRAPH TWO OF SECTION ONE OF
ACT NUMBERED FIFTEEN HUNDRED AND TEN, ENTITLED
“AN ACT GRANTING TO THE MANILA RAILROAD COMPANY
A CONCESSION FOR RAILWAY LINES IN THE ISLAND OF
LUZON, AND PROVIDING IN RESPECT OF PROCEEDINGS FOR
CONDEMNATION OF LAND BY PUBLIC SERVICE
CORPORATIONS,” MAKING ITS PROVISIONS EXTENSIVE
WITH CERTAIN LIMITATIONS, TO THE FORESHORE AND
LAND RECLAIMED FROM THE SEA
ACT NO. 2389 372

HUNDRED AN FIFTY-NINE, ENTITLED “AN ACT TO REGULATE
MOTOR VEHICLE TRAFFIC IN THE PHILIPPINE ISLANDS, TO
xxvi
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PROVIDE FOR THE REGISTRATION OF MOTOR VEHICLES AND

THE LICENSING OF OPERATORS, AND TO REQUIRE ALL
VEHICLES ON HIGHWAYS TO CARRY LIGHTS, AND FOR
OTHER PURPOSES,” BY FIXING A MAXIMUM RATE OF SPEED,
ACT NO. 2485 377

AN ACT GRANTING SEÑOR VICENTE SOTELO Y MATTI, A
NATIVE AND RESIDENT OF THE CITY OF MANILA, PHILIPPINE
ISLANDS, AND HIS SUCCESSORS, AND ASSIGNS, A
FRANCHISE TO ESTALBISH, CONSTRUCT, EQUIP, MAINTAIN,
AND OPERATE A RAILROAD IN THE SOUTHERN PART OF THE
ISLAND OF NEGROS, PHILIPPINE ISLANDS
ACT NO. 2507 387

AN ACT PROVIDING FOR A BOARD OF MARINE EXAMINERS,
FOR THE EXAMINATION AND LICENSING OF WATCH
OFFICERS AND ENGINEERS ON PHILIPPINE VESSELS IN THE
COASTWISE TRADE AND FOR THE HIGH SEAS, LICENSE FEES,
COMPENSATION, AND PENALTIES, IN CERTAIN CASES, AND
REPEALING CERTAIN ACTS RELATING THERETO
ACT NO. 2570 395

AN ACT PROVIDING FOR THE COLLECTION OF TONNAGE
DUES ON VESSELS COMING FROM OR GOING TO FOREIGN
PORTS
ACT NO. 2574 396

AN ACT AUTHORIZING THE GOVERNOR GENERAL TO
EXECUTE A CERTAIN MEMORANDUM OF AGREEMENT WITH
THE MANILA RAILROAD COMPANY (1906) AND THE MANILA
RAILWAY COMPANY (1906), LIMITED, MAKING
APPROPRIATIONS FOR THE PURPOSE OF CARRYING OUT
SAID MEMORANDUM OF AGREEMENT, AND FOR OTHER
PURPOSES
xxvii
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ACT NO. 2587 412

HUNDRED AND FIFTY-NINE, AS AMENDED, ENTITLED “AN
ACT TO REGULATE MOTOR VEHICLE TRAFFIC IN THE
PHILIPPINE ISLANDS, TO PROVIDE FOR THE REGISTRATION
OF MOTOR VEHICLES AND THE LICENSING OF OPERATORS,
AND TO REQUIRE ALL VEHICLES ON HIGHWAYS TO CARRY
LIGHTS, AND FOR OTHER PURPOSES,” BY FIXING AN
ANNUAL REGISTRATION, AND FOR OTHER PURPOSES
ACT NO. 2616 426

AN ACT ON SALVAGE AND RENDERING THE ASSISTANCE TO
VESSELS AND CARGOES
ACT NO. 2630 430

AN ACT AUTHORIZING THE “MARINE TRADING COMPANY,
INCORPORATED” TO BRING SUIT AGAINST THE
GOVERNMENT OF THE PHILIPPINE ISLANDS TO RECOVER
DAMAGES, IF ANY, ALLEGED TO HAVE ARISEN FROM THE
COLLISION OF ITS LAUNCH WITH A SCOW TOWED BY A
LAUNCH BELONGING TO THE GOVERNMENT OF THE
PHILIPPINE ISLANDS
ACT NO. 2639 431

HUNDRED AND FIFTY-NINE, AS AMENDED, ENTITLED, “AN
ACT TO REGULATE MOTOR VEHICLE TRAFFIC IN THE
LIGHTS, AND FOR OTHER PURPOSES” AS AMENDED, BY
REGULATING THE USE OF HEADLIGHTS ON MOTOR
VEHICLES, AND FOR OTHER PURPOSES
xxviii
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ACT NO. 2643 435

AN ACT GRANTING RAMON FERNANDEZ, A CITIZEN OF THE
PHILIPPINE ISLANDS AND RESIDENT OF THE CITY OF
MANILA, AND HIS SUCCESSORS AND ASSIGNS, A FRANCHISE
TO ESTABLISH, CONSTRUCT, EQUIP, MAINTAIN, AND
OPERATE A RAILROAD IN THE PROVINCE OF NEGROS,
PHILIPPINE ISLANDS
ACT NO. 2687 444

AN ACT TO AMEND THE SECOND PARAGRAPH OF SECTION
TWENTY-SEVEN OF ACT NUMBERED TWENTY-FOUR
HUNDRED AND EIGHTY-FIVE, ENTITLED “AN ACT GRANTING
SEÑOR VICENTE SOTELO Y MATTI, A NATIVE AND RESIDENT
OF THE CITY OF MANILA, PHILIPPINE ISLANDS, AND HIS
SUCCESSORS AND ASSIGNS, A FRANCHISE TO ESTABLISH,
CONSTRUCT, EQUIP, MAINTAIN, AND OPERATE A RAILROAD
IN THE SOUTHERN PART OF THE ISLAND OF NEGROS,
PHILIPPINE ISLANDS”
ACT NO. 2748 445

AN ACT TO AUTHORIZE THE MANILA RAILROAD COMPANY
TO DISCONTINUE ITS RAILROAD LINE BEWEEN THE
MUNICIPALITIES OF TAYTAY AND ANTIPOLO, PROVINCE OF
RIZAL, AND FOR OTHER PURPOSES
ACT NO. 2790 446

AN ACT TO PROVIDE FUNDS FOR THE EXTENSION OF THE
LINES OF THE MANILA RAILROAD COMPANY
ACT NO. 2800 447

AN ACT TO AMEND SECTION SEVENTEEN OF ACT
NUMBERED TWENTY-FOUR HUNDRED AND EIGHTY-FIVE,
ENTITLED “AN ACT GRANTING SEÑOR VICENTE SOTELO Y
MATTI A NATIVE AND RESIDENT OF THE CITY OF MANILA,
PHILIPPINE ISLANDS, AND HIS SUCCESSORS AND ASSIGNS,
A FRANCHISE TO ESTABLISH, CONSTRUCT, EQUIP, MAINTAIN
xxix
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AND OPERATE A RAILROAD IN THE SOUTHERN PART OF THE

ISLAND OF NEGROS, PHILIPPINE ISLAND”
ACT NO. 2876 448

AN ACT TO AMEND PARAGRAPH EIGHTEEN OF SECTION ONE
OF ACT NUMBERED TWENTY-EIGHT HUNDRED AND THIRTY
SIX ENTITLED “AN ACT GRANTING TO THE MANILA
RAILROAD COMPANY OF THE PHILIPPINE ISLANDS A
CONCESSION TO CONSTRUCT A RAILROAD IN THE ISLAND
OF LUZON”
ACT NO. 2895 450

AN ACT TO AUTHORIZE THE GOVERNOR-GENERAL TO
PURCHASE, ON BEHALF OF THE GOVERNMENT OF THE
PHILIPPINE ISLANDS, SIXTY THOUSAND SIX HUNDRED AND
THIRTY-FIVE SHARES OF THE CAPITAL STOCK OF THE
MANILA RAILROAD COMPANY OF THE PHILIPPINE ISLANDS,
AND TO PROVIDE FUNDS FOR THE PAYMENT OF THE
PURCHASE PRICE OF SUCH SHARES
ACT NO. 2951 451

AN ACT TO AMEND SECTION TWENTY-THREE HUNDRED AND
THIRTEEN OF ACT NUMBERED TWENTY-SEVEN HUNDRED
AND ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE OF
NINETEEN HUNDRED AND SEVENTEEN, PROVIDING THAT
THE CART AND SLEDGE TAX SHALL BE PAYABLE ON OR
BEFORE JANUARY THIRTY-FIRST OF EACH YEAR
ACT NO. 2960 453

PHILIPPINE ISLANDS, TEN THOUSAND SHARES OF THE
CAPITAL STOCK OF THE MANILA RAILROAD COMPANY OF
THE PHILIPPINE ISLANDS, AND APPROPRIATING FUNDS FOR
PAYING FOR SAID SHARES
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ACT NO. 2962 454

AN ACT EXEMPTING THE MANILA RAILROAD COMPANY
FROM TAXATION
ACT NO. 2965 455

AN ACT TO AMEND SUBSECTION (N) OF SECTION TWENTY-
FOUR HUNDRED AND FORTY-FOUR OF ACT NUMBERED
TWENTY-SEVEN HUNDRED AND ELEVEN, KNOWN AS THE
ADMINISTRATIVE CODE, AS AMENDED BY ACT NUMBERED
TWENTY-SEVEN HUNDRED AND SEVENTY-FOUR,
EMPOWERING THE MUNICIPAL BOARD OF THE CITY OF
MANILA TO ESTABLISH A TAX ON AUTOMOBILES
ACT NO. 3017 456

AN ACT AUTHORIZING THE “MANILA RAILROAD COMPANY”
TO ABANDON ITS RAILROAD LINE BETWEEN THE
MUNICIPALITIES OF NOVELETA AND CAVITE, PROVINCE OF
CAVITE, AND FOR OTHER PURPOSES
ACT NO. 3045 457

AN ACT TO AMEND AND COMPILE THE LAWS REGULATING
MOTOR VEHICLE TRAFFIC IN THE PHILIPPINE ISLANDS, THE
LAWS PROVIDING FOR THE REGISTRATION OF MOTOR
VEHICLES AND THE LICENSING OF MOTOR VEHICLE
OPERATORS, THE LAWS REQUIRING LIGHTS OF ALL
VEHICLES USING HIGHWAYS AT NIGHT, AND THE LAWS
PRESCRIBING PENALTIES FOR VIOLATIONS THEREOF, AND
FOR OTHER PURPOSES
ACT NO. 3064 493

AN ACT TO AMEND SUBSECTION (C) OF SECTION FOURTEEN
OF ACT NUMBERED THREE THOUSAND AND FORTY-FIVE,
REDUCING THE FEE FOR THE ISSUANCE OF A LICENSE TO
OPERATE MOTOR VEHICLES TO TWO PESOS
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ACT NO. 3116 494

PHILIPPINE ISLANDS, SEVENTY THOUSAND SHARES OF THE
CAPITAL STOCK OF THE MANILA RAILRAOD COMPANY OF
THE PHILIPPINE ISLANDS, AND TO PROVIDE FUNDS FOR
PAYING THE PRICE OF SAID SHARES
ACT NO. 3128 495

AN ACT TO AMEND SECTION TWENTY-ONE HUNDRED AND
FORTY-TWO OF ACT NUMBERED TWENTY-SEVEN HUNDRED
AND ELEVEN, BY PROVIDING THAT ALL COLLECTIONS
BELONGING TO THE ROAD FUND SHALL ACCRUE TO THE
TREASURIES OF THE SUBPROVINCES
ACT NO. 3188 496

AN ACT AUTHORIZING AND DIRECTING THE GOVERNOR-
GENERAL AND THE MANILA RAILROAD COMPANY OF THE
PHILIPPINE ISLANDS TO MAKE AN INVESTIGATION AND
SURVEY AND SUBMIT THEIR RECOMMENDATIONS ON THE
ESTABLISHMENT OF A RAILROAD LINE IN THE PROVINCES
OF LEYTE AND ORIENTAL NEGROS, AND APPROPRIATING
FUNDS FOR THIS PURPOSE
ACT NO. 3190 498

AN ACT GRANTING THE MANILA RAILROAD COMPANY OF
THE PHILIPPINE ISLANDS AUTHORITY TO ESTABLISH A
TELEPHONE LINE BETWEEN THE MUNICIPALITIES OF
PAMPLONA AND PASACAO, IN THE PROVINCE OF
CAMARINES SUR
ACT NO. 3214 499

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
xxxii
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ACT NO. 3367 504

AN ACT TO AMEND SECTIONS TEN AND TWENTY-FOUR OF
ACT NUMBERED THIRTY-ONE HUNDRED AND EIGHT,
ENTITLED “AN ACT CREATING THE PUBLIC UTILITY
COMMISSION AND PRESCRIBING ITS DUTIES AND POWERS
AND FOR OTHER PURPOSES”
ACT NO. 3376 506

AN ACT TO TAKE THE MANILA RAILROAD COMPANY OUT
OF THE SUPERVISION AND CONTROL OF THE PUBLIC
SERVICE COMMISSION
ACT NO. 3399 507

AN ACT GRANTING TO THE MANILA RAILROAD COMPANY
OF THE PHILIPPINE ISLANDS AN ADDITIONAL CONCESSION
TO CONSTRUCT A RAILROAD IN THE ISLAND OF LUZON
ACT NO. 3410 518

AN ACT AUTHORIZING THE GOVERNOR-GENERAL, ON
BEHALF OF THE GOVERNMENT OF THE PHILIPPINE ISLANDS,
TO PURCHASE FIFTY THOUSAND SHARES OF STOCK OF THE
MANILA RAILROAD COMPANY OF THE PHILIPPINE ISLANDS,
AND APPROPRIATING FUNDS FOR PAYMENT OF SUCH
SHARES, THE PROCEEDS OF WHICH SHALL BE SET ASIDE FOR
THE EXTENSION OF THE RAILROAD FROM SAN FERNANDO,
LA UNION, TOWARDS LAOAG
ACT NO. 3426 520

AN ACT TO PROVIDE FOR MARINE EXAMINATIONS AND FOR
OTHER PURPOSES
ACT NO. 3444 531

AN ACT AUTHORIZING THE PURCHASE OF NEW VESSELS
FOR USE IN THE GOVERNMENT STEAMSHIP SERVICE,
EQUIPPING OF VESSELS THE USE OF WHICH MAY BE
OBTAINED BY THE GOVERNMENT, AND APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES
xxxiii
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ACT NO. 3449 533

AN ACT AMENDING SECTION ONE, PARAGRAPH ,“G,” ITEM
(CC), AND PARAGRAPH “I,” (KK), ITEM FOURTEEN, OF ACT
NUMBERED THIRTY-FOUR HUNDRED AND TWENTY-SEVEN,
ENTITLED “AN ACT MAKING APPROPRIATION FOR PUBLIC
WORKS” SO AS TO AUTHORIZE THE ACQUISITION BY
PURCHASE OR OTHERWISE OF A FULLY EQUIPPED
CABLESHIP, OR OBTAINING THE USE OF A SHIP AND THE
RECONDITIONING AND EQUIPPING OF THE SAME FOR
CABLE WORK, AND TO PROVIDE FUNDS THEREFOR,
INCLUDING THE EXPENSE OF DELIVERING SUCH SHIP IN THE
PHILIPPINE ISLANDS, AND FOR OTHER PURPOSES
ACT NO. 3472 535

AN ACT AMENDING SECTION TWELVE HUNDRED AND
EIGHTEEN OF ACT NUMBERED TWENTY-SEVEN HUNDRED
AND ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE,
RELATIVE TO VESSELS ELIGIBLE FOR BAY AND DRIVER
LICENSE
ACT NO. 3474 536

AN ACT TO AMEND SECTION TWELVE HUNDRED AND TWO
OF ACT NUMBERED TWENTY-SEVEN HUNDRED AND
ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE, AS
AMENDED, TO PERMIT VESSELS OPERATING ON THE HIGH
SEAS TO CARRY SEAMEN NOT CITIZENS OF THE UNITED
STATES OR OF THE PHILIPPINE ISLANDS
ACT NO. 3476 537

AN ACT TO AMEND SECTIONS TWO THOUSAND AND
SEVENTY-SIX AND TWO THOUSAND AND NINETY-EIGHT OF
ACT NUMBERED TWENTY-SEVEN HUNDRED AND ELEVEN,
KNOWN AS THE ADMINISTRATIVE CODE
xxxiv
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ACT NO. 3478 539

AN ACT TO AMEND SECTION ELEVEN HUNDRED AND
EIGHTY-ONE OF ACT NUMBERED TWENTY-SEVEN HUNDRED
AND ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE,
PROVIDING FOR THE ISSUANCE OF INSPECTION
CERTIFICATES TO VESSELS HOLDING UNEXPIRED
INSPECTION CERTIFICATES ISSUED BY EXAMINERS OF
LLOYD’S AMERICAN BUREAU OF SHIPPING AND U.S.
STEAMBOAT INSPECTION SERVICE
ACT NO. 3479 540

AN ACT TO AMEND SECTION ELEVEN HUNDRED AND
EIGHTY OF ACT NUMBERED TWENTY-SEVEN HUNDRED AND
ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE, AS
AMENDED, PROVIDING FOR THE INSPECTION OF
STEAMSHIPS OF FOREIGN PRIVATE OWNERSHIP AND
EXEMPTING SUCH VESSELS FROM INSPECTION, UNDER
CERTAIN CONDITIONS
ACT NO. 3635 542

AN ACT REQUIRING SAILING VESSELS OF FROM THIRTY-
FIVE NET TONS TO ONE HUNDRED AND FORTY-NINE GROSS
TONS, WITH OR WITHOUT AUXILIARY ENGINE, TO BE
COMMANDED BY DULY LICENSED PATRONS IN THE MINOR
COASTWISE TRADE, AMENDING THE ADMINISTRATIVE
CODE ACCORDINGLY, AND FOR OTHER PURPOSES
ACT NO. 3678 544

AN ACT MAKING AVAILABLE, OUT OF ANY UNEXPENDED
BALANCE OF THE APPROPRIATIONS FOR THE BUREAU OF
PUBLIC WORKS MADE IN ACT NUMBERED THIRTY-SIX
HUNDRED AND THIRTY-EIGHT, THE SUM NOT EXCEEDING
EIGHT THOUSAND PESOS FOR TRANSPORTATION AND
TRAVELING EXPENSES OF ONE OR TWO DELEGATES TO THE
INTERNATIONAL ROAD CONGRESS TO BE HELD IN
WASHINGTON IN OCTOBER, NINETEEN HUNDRED AND
THIRTY
xxxv
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ACT NO. 3697 545

AN ACT TO AMEND SUBSECTION (G) OF SECTION TWELVE
HUNDRED AND THREE OF ACT NUMBERED TWENTY-SEVEN
HUNDRED AND ELEVEN, KNOWN AS THE ADMINISTRATIVE
CODE, AS AMENDED BY ACT NUMBERED THIRTY-SIX
HUNDRED AND THIRTY-FIVE, AND SECTION TWO OF SAID
ACT NUMBERED THIRTY-SIX HUNDRED AND THIRTY-FIVE,
PROVIDING THAT SAILING VESSELS OF THIRTY-FIVE GROSS
TONS OR OVER BUT LESS THAN ONE HUNDRED AND FIFTY
GROSS TONS, SHALL BE COMMANDED BY DULY LICENSED
PATRONS IN THE MINOR COASTWISE TRADE
ACT NO. 3765 547

AN ACT TO AMEND SUBSECTION (D) OF SECTION TWENTY-
SIX OF ACT NUMBERED THREE THOUSAND AND FORTY-FIVE,
INCREASING THE PENALTY PROVIDED FOR PERSONS
OBSTRUCTING A ROAD PASSAGE UNDER CERTAIN
CONDITIONS TO IMPEDE OR DISTURB THE PASSAGE OF A
MOTOR VEHICLE
ACT NO. 3818 548

AN ACT AMENDING FURTHER CERTAIN PROVISIONS OF THE
PHILIPPINE TARIFF ACT OF NINETEEN HUNDRED AND NINE
RELATING TO CHARGES FOR WHARFAGE
ACT NO. 3819 549

DESIGNATE ANY TRACT OR TRACTS OF THE PUBLIC DOMAIN
AS RESERVATIONS FOR AIRPORTS, AIRPLANE LANDING
FIELDS OR BASES, BY AMENDING SECTION EIGHTY-ONE OF
ACT NUMBERED TWENTY-EIGHT HUNDRED AND SEVENTY-
FOUR AS AMENDED
ACT NO. 3851 550

AN ACT TO AMEND ACT NUMBERED THREE THOUSAND
AND TWO, CREATING A HARBOR BOARD FOR THE PORT OF
MANILA
xxxvi
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ACT NO. 3909 552

AN ACT CONCERNING THE LICENSING OF AIRMEN AND
AIRCRAFT, AND INSPECTION OF THE SAME, CONCERNING
AIR TRAFFICS RULES, CONCERNING SCHEDULES AND RATES
OF AVIATION COMPANIES AND CONCERNING THE
ENFORCEMENT OF THE LAW
ACT NO. 3993 565

AN ACT FURTHER TO AMEND SECTIONS ELEVEN HUNDRED
AND EIGHTY-FOUR AND EIGHTY-FIVE AND ELEVEN
HUNDRED AND NINETY-FIVE OF ACT NUMBERED TWENTY-
SEVEN HUNDRED AND ELEVEN, KNOWN AS THE
ADMINISTRATIVE CODE, AUTHORIZING IN CERTAIN CASES
THE CREATION OF A SPECIAL BOARD OF MARINE
EXAMINERS FOR PATRONS OR ENGINEERS
ACT NO. 3996 568

AN ACT TO AMEND ACT NUMBERED THIRTY-NINE HUNDRED
AND NINE CONCERNING THE LICENSING OF AIRMEN AND
AIRCRAFT, INSPECTION OF THE SAME, AIR TRAFFIC RULES,
SCHEDULES AND RATES OF AVIATION COMPANIES AND THE
ACT NO. 4072 572

AN ACT TO AMEND SECTION TWO OF ACT NUMBERED
THIRTY-THREE HUNDRED AND NINETY-SIX, ESTABLISHING
ADDITIONAL EXEMPTIONS FROM THE OBLIGATION TO
INSTALL RADIO APPARATUS ON SHIPS OF PHILIPPINE
REGISTER
ACT NO. 4111 573

AN ACT AUTHORIZING THE CONSOLIDATION OF THE
BUREAU OF PUBLIC WORKS SHOPS WITH THE MARINE
RAILWAY AND REPAIR SHOPS, APPROPRIATING FUNDS
THEREFOR, AND FOR OTHER PURPOSES
xxxvii
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ACT NO. 4153 575

AN ACT AUTHORIZING THE SECRETARY OF FINANCE TO
ENTER INTO CONTRACT WITH ANY PUBLIC SERVICE
COMPANY OR CARRIER FOR THE TRANSPORTATION OF
PASSENGERS OR CARGO FOR THE PHILIPPINE GOVERNMENT
ACT NO. 4193 576

AN ACT APPROPRIATING THE SUM OF TWO HUNDRED
THOUSAND PESOS FOR THE CONSTRUCTION, OPERATION,
AND MAINTENANCE OF EMERGENCY OR INTERMEDIATE
LANDING FIELDS AND OTHER AIR NAVIGATION FACILITIES,
RECHARTING AIRWAYS AND PUBLICATION OF AIR MAPS,
FOR THE EMPLOYMENT OF AERONAUTICAL INSPECTORS
AND OTHER EMPLOYEES AND THE PAYMENT OF PER DIEMS,
COMMONWEALTH ACT NO. 4 577

AN ACT TO PROVIDE FUNDS TO BE LOANED TO THE
MANILA RAILROAD COMPANY FOR THE PURCHASE OR
REDEMPTION BEFORE MATURITY OF CERTAIN
OUTSTANDING MANILA RAILROAD COMPANY FIRST
MORTGAGE SOUTHERN LINES FOUR PER CENT GOLD BONDS
DUE MAY FIRST, NINETEEN HUNDRED AND THIRTY-NINE,

AN ACT AUTHORIZING THE “MANILA RAILROAD
COMPANY OF THE PHILIPPINE ISLANDS” TO DISCONTINUE
AND ABANDON ITS RAILROAD LINES BETWEEN: (A) THE
MUNICIPALITIES OF PASIG (ROSARIO) AND MONTALBAN,
PROVINCE OF RIZAL; (B) THE RAILROAD STATION AT PACO,
MANILA AND THE MUNICIPALITY OF NAIC, PROVINCE OF
CAVITE; (C) THE MUNICIPALITIES OF BATANGAS AND
BAUAN, PROVINCE OF BATANGAS; AND (D) THE
MUNICIPALITIES OF LEGASPI AND TABACO, PROVINCE OF
ALBAY
xxxviii
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AN ACT TO REGULATE THE COMMERCIAL USE OF
AIRPLANES OPERATED BY AVIATION SCHOOLS AND BY
COMPANIES HOLDING A FRANCHISE

AN ACT TO AMEND SECTION EIGHT, ARTICLE TWO, CHAPTER
TWO, AND SECTION SEVENTY-THREE, ARTICLE TWO,
CHAPTER FOUR, OF ACT NUMBERED THIRTY-NINE
HUNDRED AND NINETY-TWO KNOWN AS THE REVISED
MOTOR VEHICLE LAW

AN ACT TO AMEND SECTION ONE OF ACT NUMBERED
THIRTY-FIVE HUNDRED AND NINETY-TWO KNOWN AS THE
“PORT WORKS FUND ACT” AND TO PROVIDE FOR THE
DISBURSEMENT OF SAID FUND SO AS TO INCLUDE THE COST
OF THE INVESTIGATION, CONTRUCTION, IMPROVEMENT
AND MAINTENANCE OF BUOYS, LIGHTHOUSES, AND OTHER
AIDS TO MARINE NAVIGATION, AND FOR AIRPORTS AND
LANDING FIELDS OF THE COMMONWEALTH GOVERNMENT,
INCLUDING THE PURCHASE AND MAINTENANCE OF THE
NECESSARY EQUIPMENT FOR THOSE PURPOSES

AN ACT PROVIDING FOR THE PROMOTION AND
DEVELOPMENT OF CIVIL AVIATION IN THE PHILIPPINES,
CREATING THE BUREAU OF AERONAUTICS, AND DEFINING
ITS POWERS, DUTIES AND FUNCTIONS

AN ACT TO AMEND PARAGRAPH SIX OF SUB-SECTION TWO
OF SECTION ONE OF ACTS NUMBERED FIFTEEN HUNDRED
AND TEN, TWENTY-EIGHT HUNDRED AND THIRTY-SIX, AND
THIRY-THREE HUNDRED AND NINETY-NINE, TO AUTHORIZE
THE MANILA RAILROAD COMPANY OF THE PHILIPPINE
xxxix
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ISLANDS TO CONSTRUCT TOLL VIADUCTS, TOLL BRIDGES,

AND TOLL TUNNELS

AN ACT TO AMEND SECTIONS THREE AND TWENTY-ONE OF
ACT NUMBERED FOUR THOUSAND TWO HUNDRED AND
SEVENTY-ONE, ENTITLED “AN ACT GRANTING A FRANCHISE
TO PHILIPPINE AERIAL TAXI COMPANY, INCORPORATED, TO
OPERATE AN AIR TRANSPORT SERVICE IN THE PHILIPPINES,

AN ACT TO AMEND SECTIONS THREE AND TWENTY-ONE OF
ACT NUMBERED FOUR THOUSAND TWO HUNDRED AND
SEVENTY-TWO, ENTITLED “AN ACT GRANTING A FRANCHISE
TO ILOILO-NEGROS AIR EXPRESS COMPANY,
INCORPORATED, TO OPERATE AN AIR TRANSPORT SERVICE
IN THE PHILIPPINES, AND FOR OTHER PURPOSES”

AN ACT PROVIDING FOR THE AWARD OF AIR MAIL
CONTRACTS AND APPROPRIATING THE NECESSARY FUNDS
THEREFOR

AN ACT PROVIDING FOR THE ABOLITION OF THE ROAD TAX

AN ACT ABOLISHING THE MANILA HARBOR BOARD,
MAKING THE NECESSARY PROVISIONS FOR THE
ADMINISTRATIVE ADJUSTMENTS RESULTING THEREFROM,
AND APPROPRIATING FUNDS THEREFOR
xl
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AN ACT TO PROHIBIT THE CONSTRUCTION OF
OBSTRUCTIONS HAZARDOUS TO AIR NAVIGATION, THE
CONSTRUCTION OF PRIVATE LANDING FIELDS ABUTTING
OTHER LANDING FIELDS, AND PRESCRIBING PENALTIES FOR
VIOLATIONS OF SAME

ACT TO REGULATE FOR A LIMITED PERIOD, IN VIEW OF THE
EXISTENCE OF A STATE OF NATIONAL EMERGENCY, THE
TRANSFER OF VESSELS AND OF SHIPPING FACILITIES AND
TO PROVIDE PENALTIES FOR THE VIOLATION THEREOF

AN ACT AMENDING SECTIONS THREE, SIX, AND SEVEN OF
COMMONWEALTH ACT NUMBERED ONE HUNDRED SIXTY-
EIGHT, KNOWN AS THE CIVIL AVIATION LAW, AND
INSERTING SECTION SIX AND ONE-HALF IN THE SAME

AN ACT TO REGULATE AND CONTROL THE USE OF AND
TRAFFIC ON NATIONAL ROADS AS WELL AS
CONSTRUCTIONS ALONG THE SAME, PRESCRIBING
PENALTIES FOR THE VIOLATION THEREOF

AN ACT TO REGULATE THE TRANSFER OF VESSELS AND OF
SHIPPING FACILITIES AND TO PROVIDE PENALTIES FOR THE
VIOLATION THEREOF

AN ACT AUTHORIZING THE TRANSFER TO THE “PHILIPPINE
AIRLINES, INCORPORATED,” OF THE FRANCHISE OF THE
“PHILIPPINE AERIAL TAXI COMPANY, INCORPORATED,” TO
OPERATE AN AERIAL TRANSPORTATION SERVICE IN THE
PHILIPPINES
xli
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AN ACT AUTHORIZING THE PAN AMERICAN AIRWAYS
C0MPANY TO SELL, ASSIGN OR OTHERWISE TRANSFER ITS
FRANCHISE AND ALL PROPERTY AND RIGHTS ACQUIRED
UNDER ACT NUMBERED FORTY-TWO HUNDRED AND FORTY-
NINE IN FAVOR OF THE PAN-AMERICAN AIRWAYS,
INCORPORATED

AN ACT AMENDING SECTION ONE OF COMMONWEALTH ACT
NUMBERED TWO HUNDRED AND TWENTY-THREE AND
APPROPRIATING THREE HUNDRED THOUSAND PESOS AS
ADDITIONAL FUND FOR THE AWARD OF INCREASED AIR
MAIL CONTRACTS

AN ACT TO REHABILITATE THE MANILA RAILROAD
COMPANY, APPROPRIATING FUNDS THEREFOR
BATAS PAMBANSA BLG. 13 620

AN ACT APPROPRIATING FUNDS FOR PUBLIC WORKS AND
HIGHWAY PROJECTS AND FOR OTHER PURPOSES

AN ACT PROVIDING FOR THE ISSUANCE OF PERMANENT
NUMBER PLATES TO OWNERS OF MOTOR VEHICLES AND
TRAILERS, AMENDING FOR THE PURPOSE SECTION
SEVENTEEN OF REPUBLIC ACT NUMBERED FORTY-ONE
HUNDRED AND THIRTY-SIX

xlii
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AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT
NUMBERED FORTY-ONE HUNDRED AND THIRTY-SIX,
OTHERWISE KNOWN AS THE LAND TRANSPORTATION AND
TRAFFIC CODE

AN ACT APPROPRIATING FUNDS FOR PUBLIC WORKS,
HIGHWAYS, TRANSPORTATION AND COMMUNICATIONS
PROJECTS AND FOR OTHER PURPOSES
REPUBLIC ACT NO. 125 654

AN ACT GOVERNING THE USE OF AIR NAVIGATION
FACILITIES AND PROVIDING THE PAYMENT OF THE USE
THEREOF

AN ACT REQUIRING DISTRICT HEALTH OFFICERS THEIR
AUTHORIZED REPRESENTATIVES TO INSPECT THE
SANITARY CONDITION OF COASTWISE PASSENGER VESSELS
CALLING AT PORTS IN THEIR DISTRICT AND FOR OTHER
PURPOSES

AN ACT TO AMEND SUBSECTION (D), SECTION SEVEN OF
COMMONWEALTH ACT NUMBERED ONE HUNDRED AND
SIXTY-EIGHT, KNOWN AS THE “CIVIL AVIATION LAW,” AND
TO GRANT LICENSES FOR AIRMEN TO NATIONALS OF ANY
COUNTRY UNDER CERTAIN COINDITIONS

AN ACT TO CREATE A PUBLIC CORPORATION TO BE KNOWN
AS THE “NATIONAL AIRPORTS CORPORATION”, TO DEFINE
ITS POWERS AND DUTIES, TO APPROPRIATE THE NECESSARY
xliii
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AN ACT PROVIDING FOR THE TRANSPORTATION AT
GOVERNMENT EXPENSE OF THE MEMBERS OF THE FAMILY
OF AN OFFICER OR EMPLOYEE OF THE PROVINCIAL, CITY
OR MUNICIPAL GOVERNMENT, WHO IS TRANSFERRED FROM
ONE STATION TO ANOTHER

AN ACT AUTHORIZING THE TRANSFER TO THE PHILIPPINE
AIR LINES, INC., OF THE FRANCHISE OF THE ILOILO-NEGROS
AIR EXPRESS COMPANY, INC., LATER KNOWN AS FAR
EASTERN AIR TRANSPORT, INC., TO OPERATE AN AERIAL
TRANSPORTATION SERVICE IN THE PHILIPPINES

AN ACT TO REORGANIZE THE CIVIL AERONAUTICS BOARD
AND THE CIVIL AERONAUTICS ADMINISTRATION, TO
PROVIDE FOR THE REGULATION OF CIVIL AERONAUTICS IN
THE PHILIPPINES AND AUTHORIZING THE APPROPRIATION
OF FUNDS THEREFOR

AN ACT GRANTING TO A. L. AMMEN TRANSPORTATION
COMPANY, INCORPORATED, AND/OR ITS ASSOCIATES AND
SUBSIDIARIES, A TEMPORARY PERMIT TO CONSTRUCT,
INSTALL, ESTABLISH AND OPERATE PRIVATE FIXED POINT-
TO-POINT AND LAND-BASED RADIO STATIONS FOR THE
RECEPTION AND TRANSMISSION OF INTER-OFFICE RADIO
COMMUNICATIONS WITHIN THE PHILIPPINES

AN ACT TO AMEND SECTION ELEVEN OF ACT NUMBERED
THREE THOUSAND NINE HUNDRED AND NINETY-TWO, AS
AMENDED, OTHERWISE KNOWN AS THE REVISED MOTOR
VEHICLE LAW
xliv
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AN ACT PROHIBITING THE NAMING OF SITIOS, BARRIOS,
MUNICIPALITIES, CITIES, PROVINCES, STREETS, HIGHWAYS,
AVENUES, BRIDGES, AND OTHER PUBLIC THOROUGHFARES,
PARKS, PLAZAS, PUBLIC SCHOOLS, PUBLIC BUILDINGS,
PIERS, GOVERNMENT AIRCRAFTS AND VESSELS, AND
OTHER PUBLIC INSTITUTIONS AFTER LIVING PERSONS

AN ACT TO APPROPRIATE FUNDS TO BEAR THE EXPENSES
OF HOLDING THE SECOND NORTH PACIFIC REGIONAL AIR
NAVIGATION MEETING AND THE FOURTH SESSION OF THE
FACILITATION OF INTERNATIONAL AIR TRANSPORT
DIVISION MEETING TO BE CONVENED BY THE
INTERNATIONAL CIVIL AVIATION ORGANIZATION AT
MANILA IN NINETEEN HUNDRED AND FIFTY-FIVE

AN ACT CLASSIFYING AS A TRUCK INSTEAD OF AS AN
AUTOMOBILE THE MOTOR VEHICLE POPULARLY KNOWN AS
JEEP, FOR THE PURPOSES OF THE IMPOSITION AND
COLLECTION OF THE SALES TAX

AN ACT TO FURTHER AMEND SECTION ONE OF ACT
NUMBERED THIRTY-FIVE HUNDRED AND NINETY-TWO,
KNOWN AS THE “PORT-WORKS FUND ACT”, AS AMENDED
BY COMMONWEALTH ACT NUMBERED ONE HUNDRED AND
THIRTY, AND TO PROVIDE FOR THE DISBURSEMENT OF SAID
FUNDS SO AS TO EXCLUDE DISBURSEMENT OF PORT WORKS
FUND FOR THE INVESTIGATION, CONSTRUCTION,
IMPROVEMENT AND MAINTENANCE OF AIRPORTS AND
LANDING FIELDS

AN ACT TO BE KNOWN AS “THE PHILIPPINE OVERSEAS
SHIPPING ACT OF NINETEEN HUNDRED AND FIFTY-FIVE”
xlv
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AN ACT GRANTING THE MONSERRAT TRANSPORTATION,
INC., A TEMPORARY PERMIT TO CONSTRUCT, MAINTAIN AND
OPERATE PRIVATE FIXED POINT-TO-POINT AND LAND BASED
AND LAND MOBILE RADIO STATIONS FOR THE RECEPTION
AND TRANSMISSION OF RADIO COMMUNICATIONS IN THE
CITIES OF MANILA, QUEZON, AND PASAY AND IN THE
PROVINCES OF RIZAL, BULACAN, LAGUNA, AND CAVITE

AN ACT TO AMEND SECTION FOUR, ARTICLE THREE,
CHAPTER ONE, SECTION FIVE, ARTICLE ONE, CHAPTER TWO,
AND SECTIONS TWELVE AND FOURTEEN, ARTICLE THREE,
CHAPTER TWO, OF ACT NUMBERED THIRTY-NINE HUNDRED
AND NINETY-TWO, OTHERWISE KNOWN AS THE MOTOR
VEHICLE LAW, AS AMENDED

THE PHILIPPINE COASTWISE SHIPPING ACT OF NINETEEN
HUNDRED FIFTY-SIX

AN ACT GRANTING THE PHILIPPINE RABBIT BUS LINES, A
TEMPORARY PERMIT TO CONSTRUCT, INSTALL, ESTABLISH
AND OPERATE PRIVATE FIXED POINT-TO-POINT AND LAND
BASED RADIO STATIONS FOR THE RECEPTION AND
TRANSMISSION OF INTER-OFFICE RADIO

AN ACT APPROPRIATING ONE HUNDRED EIGHTY THOUSAND
PESOS FOR THE MAINTENANCE, FUEL, REPAIR AND
REPLACEMENT OF RURAL HEALTH JEEPS AND OTHER
VEHICLES
xlvi
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AN ACT GRANTING PHILIPPINE AIR LINES, INC., A
TEMPORARY PERMIT TO CONSTRUCT, MAINTAIN AND
OPERATE COMMERCIAL FIXED POINT-TO-POINT, COASTAL,
AERONAUTICAL, LAND BASED AND LAND MOBILE RADIO
STATIONS FOR THE RECEPTION AND TRANSMISSION OF
RADIO COMMUNICATIONS WITHIN THE PHILIPPINES

AN ACT AMENDING SUBSECTION (C), SECTION FOURTEEN,
OF COMMONWEALTH ACT NUMBERED ONE HUNDRED AND
FORTY-SIX, AS AMENDED, BY REMOVING FROM THE
JURISDICTION, SUPERVISION AND CONTROL OF THE PUBLIC
SERVICE COMMISSION TUGBOATS AND LIGHTERS

AN ACT TO REACTIVATE THE INTERNATIONAL AIR
TRANSPORT SERVICES OF THE PHILIPPINE AIR LINES, INC.,
AND TO APPROPRIATE THE NECESSARY FUNDS THEREFOR

AN ACT TO AMEND FURTHER ACT NUMBERED THIRTY-NINE
HUNDRED AND NINETY-TWO, OTHERWISE KNOWN AS THE
REVISED MOTOR VEHICLES LAW, AS AMENDED

AN ACT GRANTING JORGE D. BAYONA A FRANCHISE TO
ESTABLISH, MAINTAIN AND OPERATE A FERRY SERVICE FOR
PASSENGERS AND FREIGHT BETWEEN THE MUNICIPALITY
OF LEGASPI AND THE ISLANDS OF BATAN AND RAPU-RAPU
IN THE PROVINCE OF ALBAY

AN ACT TO CHANGE THE NAME OF DAVAO (SASA) AIRPORT
IN DAVAO CITY TO FRANCISCO BANGOY AIRPORT IN HONOR
OF THE LATE DON FRANCISCO BANGOY
xlvii
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AN ACT CONVERTING THE PRESENT PHILIPPINE NAUTICAL
SCHOOL INTO THE PHILIPPINE MERCHANT MARINE
ACADEMY, CONFERRING THE DEGREES OF BACHELOR OF
SCIENCE IN MARINE TRANSPORTATION, MAJOR IN
NAVIGATION AND SEAMANSHIP, AND BACHELOR OF
SCIENCE IN MARINE TRANSPORTATION, MAJOR IN STEAM
ENGINE AND ELECTRICAL ENGINEERING, PROVIDING FOR
A MERCHANT MARINE ACADEMY BOARD, DEFINING THE
BOARD’S RESPONSIBILITIES AND DUTIES, AND FOR OTHER
PURPOSES

AN ACT CREATING A BRANCH OFFICE OF THE MOTOR
VEHICLES OFFICE OF THE PROVINCE OF ILOCOS SUR, WITH
PERMANENT STATION AT THE MUNICIPALITY OF CANDON,
AND AUTHORIZING THE APPROPRIATION OF FUNDS
THEREFOR

AN ACT GRANTING DEMETRIO UYVICO A FRANCHISE TO
PASSENGERS AND FREIGHT BETWEEN THE CITY OF
TACLOBAN AND THE MUNICIPALITIES OF CABUCGAYAN,
CAIBIRAN, CULABA, KAWAYAN AND MARIPIPI, ALL IN THE
ISLAND OF BILIRAN, SUBPROVINCE OF BILIRAN PROVINCE
OF LEYTE

AN ACT GRANTING THE LAGUNA TAYABAS BUS COMPANY
AND BATANGAS TRANSPORTATION COMPANY A FRANCHISE
TO ESTABLISH, MAINTAIN AND OPERATE PRIVATE FIXED
POINT-TO-POINT, PRIVATE COASTAL, AND LANDBASED AND
LAND MOBILE RADIO STATIONS FOR THE TRANSMISSION
OF WIRELESS MESSAGES TO AND FROM SAID STATIONS
xlviii
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AN ACT CREATING A BRANCH OFFICE OF THE MOTOR
VEHICLES OFFICE IN MOUNTAIN PROVINCE, WITH
PERMANENT STATION AT THE MUNICIPALITY OF TABUK,
THEREFOR

AN ACT GRANTING ROBERT O. PHILLIPS A FRANCHISE TO
ESTABLISH, MAINTAIN AND OPERATE A HYDROFOIL FERRY
SERVICE WITHIN MANILA BAY INCLUDING WATERS ALONG
CORREGIDOR, BATAAN, CAVITE, ZAMBALES AND OTHER
NEIGHBORING BAY AREAS

AN ACT TO COMPILE THE LAWS RELATIVE TO LAND
TRANSPORTATION AND TRAFFIC RULES, TO CREATE A LAND
TRANSPORTATION COMMISSION AND FOR OTHER PURPOSES

AN ACT TO AMEND SECTION TWO OF REPUBLIC ACT
NUMBERED FOURTEEN HUNDRED AND SEVEN, ENTITLED
“AN ACT TO BE KNOWN AS ‘THE PHILIPPINE OVERSEAS
SHIPPING ACT OF NINETEEN HUNDRED AND FIFTY-FIVE’’’

AN ACT GRANTING A FRANCHISE TO FILIPINAS ORIENT
AIRWAYS, INCORPORATED, TO ESTABLISH AND MAINTAIN
AIR TRANSPORT SERVICE IN THE PHILIPPINES AND
BETWEEN THE PHILIPPINES AND OTHER COUNTRIES

AN ACT APPROPRIATING FUNDS FOR THE OPERATION AND
MAINTENANCE OF AIRPORTS AND AIR NAVIGATION
FACILITIES
xlix
LAW NO. TITLE PAGE

AN ACT GRANTING ANGEL R. CABATINGAN A FRANCHISE
TO MAINTAIN AND OPERATE A FERRY SERVICE BETWEEN
THE MUNICIPALITY OF SANTA FE, PROVINCE OF CEBU, AND
THE BARRIO OF HAGNAYA IN THE MUNICIPALITY OF SAN
REMIGIO, SAME PROVINCE

AN ACT GRANTING A FRANCHISE TO AIR MANILA,
INCORPORATED, TO ESTABLISH AND MAINTAIN AIR
TRANSPORT SERVICE IN THE PHILIPPINES AND BETWEEN
THE PHILIPPINES, AND OTHER COUNTRIES

AN ACT GRANTING PHILIPPINE PRESIDENT LINES, INC., A
CORPORATION ENGAGED EXCLUSIVELY IN THE OVERSEAS
SHIPPING BUSINESS, A TEMPORARY PERMIT TO CONSTRUCT,
ESTABLISH, MAINTAIN AND OPERATE PRIVATE FIXED POINT-
TO-POINT AND PRIVATE COASTAL RADIO STATIONS, MOBILE
LAND, SEA AND AIR RADIO STATIONS FOR THE RECEPTION
AND TRANSMISSION OF RADIO COMMUNICATIONS WITHIN
THE PHILIPPINES

AN ACT GRANTING CESAR T. ROSALES A FRANCHISE TO
ESTABLISH, MAINTAIN AND OPERATE A HYDROFOIL AND/
OR SHIP FERRY SERVICE FOR PASSENGERS AND FREIGHT
LINKING THE PROVINCES AND ISLANDS OF LUZON,
MARINDUQUE, MINDORO, MASBATE, ROMBLON AND PANAY

AN ACT GRANTING JOPANE FERRY A FRANCHISE TO
PASSENGER AND FREIGHT VEHICLES FROM ANY POINT IN
THE SUBPROVINCE OF CAMIGUIN TO THE MUNICIPALITY OF
BALINGO-AN IN THE PROVINCE OF MISAMIS ORIENTAL AND
l
LAW NO. TITLE PAGE
THE CITIES OF GINGOOG AND CAGAYAN DE ORO AND VICE

VERSA BETWEEN ANY OTHER FOCAL POINTS OF TRADE AND
TRANSHIPMENT

AN ACT CREATING THE OFFICE OF HEALTH SERVICES IN THE
LAND TRANSPORTATION COMMISSION AND AUTHORIZING
THE APPROPRIATION OF THE NECESSARY FUNDS THEREFOR

AN ACT GRANTING ALEX REYES, JR. AND CO., A TEMPORARY
PERMIT TO ESTABLISH, MAINTAIN AND OPERATE PRIVATE
FIXED POINT-TO-POINT AND PRIVATE COASTAL RADIO
STATIONS, MOBILE LAND STATIONS, MOBILE SEA STATIONS
AND MOBILE AIR STATIONS AS WELL AS POINT-TO-POINT
FIELD STATIONS FOR COMMUNICATIONS FROM POINT-TO-
POINT GROUND, LAND POINT TO MOBILE AIR, LAND OR SEA,
MOBILE AIR TO AIR, SEA OR LAND, MOBILE SEA TO AIR, SEA
OR LAND FOR THE RECEPTION AND TRANSMISSION OF

AN ACT GRANTING ALDYMAC, INC., A FRANCHISE TO
ESTABLISH AND OPERATE FERRY SERVICES BETWEEN THE
MUNICIPALITY OF VIRAC, PROVINCE OF CATANDUANES,
AND LEGAZPI CITY BETWEEN THE MUNICIPALITY OF ALLEN,
PROVINCE OF SAMAR, AND THE CITY OF LEGAZPI BETWEEN
THE MUNICIPALITY OF MASBATE, PROVINCE OF MASBATE,
AND THE CITY OF LEGAZPI AND BETWEEN THE
MUNICIPALITY OF MASBATE, PROVINCE OF MASBATE, AND
THE MUNICIPALITY OF SORSOGON, PROVINCE OF
SORSOGON

AN ACT GRANTING THE PHILIPPINE MONORAIL TRANSIT
SYSTEM, INCORPORATED A FRANCHISE TO ESTABLISH,
li
LAW NO. TITLE PAGE
MAINTAIN AND OPERATE A MONORAIL TRANSPORTATION

SERVICE IN THE CITY OF MANILA AND SUBURBS AND CEBU
CITY AND PROVINCE

AN ACT GRANTING DON ANICETO LACSON A FRANCHISE
TO ESTABLISH, MAINTAIN AND OPERATE A FERRY SERVICE
FOR PASSENGERS AND FREIGHT BETWEEN BARRIO PUNTA
EQUI, MUNICIPALITY OF AJUY, PROVINCE OF ILOILO, AND
THE MUNICIPALITY OF VICTORIAS, PROVINCE OF NEGROS
OCCIDENTAL

AN ACT GRANTING ISLAND TRANSPORT COMPANY,
INCORPORATED, A FRANCHISE TO ESTABLISH, MAINTAIN
AND OPERATE A FERRY SERVICE FOR PASSENGERS AND
FREIGHT VEHICLES BETWEEN THE BARRIO OF PAJO,
LAPULAPU CITY, AND BANTAYAN SA HARI, BARRIO OF LO-
OC, MUNICIPALITY OF MANDAWE, PROVINCE OF CEBU; AND
BETWEEN OTHER VISAYAN FOCAL POINTS OF TRADE AND
TRANSHIPMENT

AN ACT GRANTING SURIGAO FERRY SERVICE, INC., A
FRANCHISE TO ESTABLISH, MAINTAIN AND OPERATE A
FERRY SERVICE FOR PASSENGERS AND FREIGHT BETWEEN
THE MUNICIPALITY OF SURIGAO AND NONOC ISLAND, BOTH
IN THE PROVINCE OF SURIGAO DEL NORTE

AN ACT IMPOSING A TAX ON PRIVATELY OWNED PASSENGER
AUTOMOBILES, MOTORCYCLES AND SCOOTERS, AND A
SCIENCE STAMP TAX, TO CONSTITUTE A SPECIAL SCIENCE
FUND, DEFINING THE PROGRAMS, PROJECTS AND
ACTIVITIES OF SCIENCE AGENCIES TO BE FINANCED
THEREFROM AND FOR OTHER PURPOSES
lii
LAW NO. TITLE PAGE

AN ACT CREATING A BRANCH OFFICE OF THE LAND
TRANSPORTATION COMMISSION IN THE MUNICIPALITY OF
CARIGARA, PROVINCE OF LEYTE, AND AUTHORIZING THE
APPROPRIATION OF FUNDS THEREFOR

AN ACT AMENDING SECTION TWO OF REPUBLIC ACT
NUMBERED FOURTEEN HUNDRED AND SEVEN, KNOWN AS
“THE PHILIPPINE OVERSEAS SHIPPING ACT OF NINETEEN
HUNDRED AND FIFTY-FIVE”, AS AMENDED BY SECTION ONE
OF REPUBLIC ACT NUMBERED FORTY-ONE HUNDRED AND
FORTY-SIX

AN ACT AMENDING REPUBLIC ACT NUMBERED ONE
THOUSAND FOUR HUNDRED SEVEN, AS AMENDED, TO
PRESCRIBE THE RULES FOR FINANCING THE ACQUISITION
OR CONSTRUCTION OF VESSELS TO BE USED FOR OVERSEAS
SHIPPING, TO ALLOW THE CREATION OF A MARITIME LIEN
THEREON, AND FOR OTHER PURPOSES

AN ACT AMENDING REPUBLIC ACT NUMBERED FORTY-ONE
HUNDRED THIRTY-SIX, KNOWN AS THE “LAND
TRANSPORTATION AND TRAFFIC CODE”

AN ACT GRANTING PHILIPPINE EXPRESS MESSENGER
SERVICE CORPORATION A FRANCHISE TO CONDUCT AIR
FREIGHT FORWARDING, MESSENGER AND DELIVERY
SERVICE
liii
LAW NO. TITLE PAGE

AN ACT AMENDING SECTIONS THREE AND SEVEN OF
REPUBLIC ACT NUMBERED FORTY-SIX HUNDRED FIFTY-
TWO, ENTITLED “AN ACT GRANTING THE PHILIPPINE
MONORAIL TRANSIT SYSTEM, INCORPORATED A
MONORAIL TRANSPORTATION SERVICE IN THE CITY OF
MANILA AND SUBURBS AND CEBU CITY AND PROVINCE”

AN ACT GRANTING CEBU AIR, INC., A FRANCHISE TO
ESTABLISH, OPERATE AND MAINTAIN TRANSPORT SERVICES
FOR THE CARRIAGE OF PASSENGERS, MAIL, GOODS AND
PROPERTY BY AIR, BOTH DOMESTIC AND INTERNATIONAL,
WITH CEBU AS ITS BASE

AN ACT GRANTING DAVAO AGRITECH, INC., A FRANCHISE
TO ESTABLISH, OPERATE AND MAINTAIN DOMESTIC AIR
SPRAYING SERVICES WITH DAVAO AS ITS MAJOR HUB

AN ACT GRANTING HOUSE OF TRAVEL, INCORPORATED, A
FRANCHISE TO ESTABLISH, OPERATE AND ‘MAINTAIN
DOMESTIC PASSENGERS AND CARGO AIR CHARTERED
TRANSPORT SERVICES WITH DAVAO AS ITS MAJOR HUB

AN ACT GRANTING THE ASTRO AIR INTERNATIONAL, INC.,
A FRANCHISE TO ESTABLISH, OPERATE AND MAINTAIN
DOMESTIC AND INTERNATIONAL AIR TRANSPORTATION
SERVICES AND OTHER ALLIED SERVICES FOR THE
CARRIAGE AND TRANSFER OF PASSENGERS, MAIL, GOODS
AND OTHER PROPERTY BY AIR AND FOR OTHER PURPOSES
liv
LAW NO. TITLE PAGE

AN ACT GRANTING TO SILANGAN AIRWAYS, INC., A
FRANCHISE TO ESTABLISH, OPERATE AND MAINTAIN
TRANSPORT SERVICES FOR CARRIAGE OF PASSENGERS,
MAILS, GOODS AND PROPERTY BY AIR BOTH DOMESTIC AND
INTERNATIONAL

AN ACT TO PROMOTE THE DEVELOPMENT OF PHILIPPINE
OVERSEAS SHIPPING

AN ACT GRANTING THE ABOITIZ AIR TRANSPORT
CORPORATION A FRANCHISE TO ESTABLISH, OPERATE AND
MAINTAIN TRANSPORT SERVICES FOR THE CARRIAGE OF
GOODS, MAIL AND OTHER PROPERTY BY AIR, BOTH
DOMESTIC AND INTERNATIONAL

AN ACT GRANTING A FRANCHISE TO PACIFIC AIRWAYS
CORPORATION TO ESTABLISH AND MAINTAIN RURAL AIR
TRANSPORT SYSTEM AND ALLIED SERVICES IN THE
PHILIPPINES

AN ACT GRANTING A FRANCHISE TO ALL ASIA AIRLINES CO.,
INC., TO ESTABLISH AND MAINTAIN AIR TRANSPORT
SERVICES THROUGHOUT THE PHILIPPINES AND/OR

AN ACT GRANTING AIR PHILIPPINES CORPORATION (AIR
PHILIPPINES) A FRANCHISE TO ESTABLISH, OPERATE AND
MAINTAIN DOMESTIC AND INTERNATIONAL AIR
TRANSPORT SERVICES
lv
LAW NO. TITLE PAGE

AN ACT BANNING THE REGISTRATION AND OPERATION OF
VEHICLES WITH RIGHT-HAND STEERING WHEEL IN ANY
PRIVATE OR PUBLIC STREET, ROAD OR HIGHWAY,
PROVIDING PENALTIES THEREFOR AND FOR OTHER
PURPOSES

AN ACT GRANTING THE GRAND INTERNATIONAL AIRWAYS,
INC. (GRAND AIR), A FRANCHISE TO ESTABLISH, OPERATE
AND MAINTAIN DOMESTIC AND INTERNATIONAL AIR
TRANSPORT SERVICES

AN ACT REQUIRING THE MANDATORY COMPLIANCE BY
MOTORISTS, OF PRIVATE AND PUBLIC VEHICLES TO USE
SEAT BELT DEVICES, AND REQUIRING VEHICLE
MANUFACTURERS TO INSTALL SEAT BELT DEVICES IN ALL
TIIEIR MANUFACTURED VEHICLES

AN ACT IMPOSING A MOTOR VEHICLE USER’S CHARGE ON
OWNERS OF ALL TYPES OF MOTOR VEHICLES AND FOR
OTHER PURPOSES

AN ACT GRANTING THE AIR MABUHAY CORPORATION A
DOMESTIC AND INTERNATIONAL AIR TRANSPORT SERVICES
FOR THE CARRIAGE OF PASSENGERS, MAILS, GOODS AND
PROPERTY, AND OTHER ALLIED SERVICES

AN ACT GRANTING THE LAOAG INTERNATIONAL AIRLINES,
INC. A FRANCHISE TO ESTABLISH, OPERATE AND MAINTAIN
lvi
LAW NO. TITLE PAGE

AN ACT AMENDING REPUBLIC ACT NO. 7583, ENTITLED “AN
ACT GRANTING THE ABOITIZ AIR TRANSPORT
MAINTAIN TRANSPORT SERVICES FOR THE CARRIAGE OF
GOODS, MAILS AND OTHER PROPERTY BY AIR, BOTH
DOMESTIC AND INTERNATIONAL”

AN ACT GRANTING THE PROVINCIAL AIRWAYS
TRANSPORT SERVICES

AN ACT GRANTING THE ASIAN SPIRIT, INC. A FRANCHISE
TO ESTABLISH, OPERATE AND MAINTAIN DOMESTIC AND
INTERNATIONAL AIR TRANSPORT SERVICES

AN ACT AMENDING REPUBLIC ACT NO. 8339, ENTITLED “AN
ACT GRANTING AIR PHILIPPINES CORPORATION (AIR
TRANSPORT SERVICES”

AN ACT PROMOTING THE DEVELOPMENT OF PHILIPPINE
DOMESTIC SHIPPING, SHIPBUILDING, SHIP REPAIR AND SHIP
BREAKING, ORDAINING REFORMS IN GOVERNMENT
POLICIES TOWARDS SHIPPING IN THE PHILIPPINES, AND FOR
OTHER PURPOSES
lvii
TRANSPORTATION LAWS
LAW NO. TITLE PAGE

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT
NO. 7471, ENTITLED “AN ACT TO PROMOTE THE
DEVELOPMENT OF PHILIPPINE OVERSEAS SHIPPING” AND
FOR OTHER PURPOSES

AN ACT AMENDING REPUBLIC ACT NO. 9182, OTHERWISE
KNOWN AS THE SPECIAL PURPOSE VEHICLE ACT OF 2002 FOR
THE PURPOSE OF ALLOWING THE ESTABLISHMENT AND
REGISTRATION OF NEW SPVS AND FOR OTHER PURPOSES

AN ACT GRANTING SOUTHEAST ASIAN AIRLINES (SEAIR),
INC. A FRANCHISE TO ESTABLISH, OPERATE AND MAINTAIN
WITH CLARK FIELD, PAMPANGA AS ITS BASE

AN ACT ESTABLISHING THE PHILIPPINE COAST GUARD AS
AN ARMED AND UNIFORMED SERVICE ATTACHED TO THE
DEPARTMENT OF TRANSPORTATION AND
COMMUNICATIONS, THEREBY REPEALING REPUBLIC ACT
NO. 5173, AS AMENDED, AND FOR OTHER PURPOSES

AN ACT MANDATING ALL MOTORCYCLE RIDERS TO WEAR
STANDARD PROTECTIVE MOTORCYCLE HELMETS WHILE
DRIVING AND PROVIDING PENALTIES THEREFOR
lviii
LAWS & EXCECUTIVE ISSUANCES
1907 -2010
T R A N S P O RTAT I O N
Vol. I
ACT NO. 2
AN ACT APPROPRIATING FIVE THOUSAND DOLLARS, MEXICAN,

FOR THE PURPOSE OF MAKING A SURVEY TO ASCERTAIN
THE MOST ADVANTAGEOUS ROUTE FOR A RAILROAD INTO
THE MOUNTAINS OF BENGUET, ISLAND OF LUZON, AND
THE PROBABLE COST THEREOF
By authority of the President of the United States, be it enacted by the

United States Philippine Commission, that:
SECTION 1. The sum of five thousand dollars, Mexican, or so much

thereof as may be necessary, is hereby appropriated out of any funds in the
Insular Treasury, not otherwise appropriated, for the purpose of making a
survey to ascertain the most advantageous route for a railroad into the
mountains of Benguet, Island of Luzon, and the probable cost thereof.
SEC. 2. The disbursing officer of the Commission is authorized and

directed to draw his warrant for the amount appropriated by this bill, or so
much thereof as may be necessary, and the Insular Treasurer is directed to
pay the same.
SEC. 3. This Act shall take effect on its passage.
ENACTED, September 12, 1900.
1
ACT NO. 22
AN ACT APPROPRIATING ONE MILLION DOLLARS IN MONEY OF

THE UNITED STATES FOR IMPROVING THE PORT OF
MANILA

SECTION 1. The sum of one million dollars in the money of the

United States is hereby appropriated to be paid out of any money in the
Insular Treasury, not otherwise appropriated, to be immediately available
and to be expended by the Military Governor, through the Chief Engineer,
United States Army, for the Division of the Philippine Islands, for continuing
the improvements of the harbor of Manila, including the outer harbor and
the Pasig River from the Bridge of Spain to the mouth, in general accordance
with the project adopted and partly carried out by the Spanish Government,
the plans and specifications for which are on file in the office of the Chief
Engineer.
SEC. 2. The appropriation shall be first used to finish the breakwaters

already partially built, and to dredge within them so that all shipping, of
whatever draft, frequenting this port may be able to lie under their protection,
to clear and dredge the present canal connecting the projected harbor with
the Pasig River; and to keep dredged the Pasig River below the Bridge of
Spain, and the bar at the mouth of the river.
SEC. 3. After the work provided for in section two shall have
proceeded so far that connection of the new port by a bridge with the
business portion of Manila shall be needed, the Chief Engineer, under the
direction of the Military Governor, shall construct a suitable railroad wagon,
and passenger drawbridge across the Pasig River, near its mouth, so as to
interfere as little as possible with navigation. The Chief Engineer shall
acquire, either with purchase or by appropriation in the manner provided
by law, the necessary land, not owned by the government of these Islands,
for approaches and piers of the bridge. No purchase of lands herein directed
2
shall be concluded until the title thereto shall be examined by the fiscal of
the Supreme Court of the Philippine Islands and be declared good and
sufficient, and the terms of the purchase shall be approved by the Military
Governor.
SEC. 4. Such minor structures, permanent or temporary and such

inside quay walls may be constructed or continued, where partially
constructed, as will, as far as practicable, give relief to the present
overcrowded condition of the port of Manila and which do not unduly
interfere with, delay, or injure the final improvements contemplated by
this Act.
XXX XXX XXX
Enacted, October 15, 1900.
3
ACT NO. 66
AN ACT AMENDING THE SECOND PARAGRAPH OF ORDER

NUMBER THIRTY-EIGHT OF GENERAL ORDERS OF THE
MILITARY GOVERNOR, ISSUED MARCH TWENTY-FOURTH,
NINETEEN HUNDRED, PROVIDING FOR LICENSING SMALL
BOATS WHICH HAVE A LESS CAPACITY THAN FIFTEEN
GROSS TON BURDEN

SECTION 1. The second paragraph of Order Number Thirty-eight

of General Orders of the Military Governor, issued March twenty-fourth,
nineteen hundred, is hereby amended to read as follows:
“Hereafter any owner of a small boat which has a less capacity than
fifteen gross tons burden, who may wish to carry on a local trade in any of
the equipped ports and near coast ports, upon application at the nearest
equipped port, and on taking the oath of allegiance to the United States
Government, shall be granted a license to run for one year, permitting his
vessels to engage in legitimate sea-coast traffic between the port where
application is made the near or adjacent seacoast towns and villages – the
owner paying for the same one peso per ton for each ton of the vessel’s
gross tonnage, the payment to be made in cash; the minimum payment
shall be one peso.”
Enacted, January 2, 1901.
4
ACT NO. 73
AN ACT PROVIDING FOR THE EXAMINATION AND LICENSING

OF APPLICANTS FOR THE POSITION OF MASTER, MATE,
AND PATRON OF SEA-GOING VESSELS

SECTION 1. A board to consist of the Captain of the Port of Manila,

the superintendent of the Nautical School and two masters of merchant
vessels, to be appointed by the Captain of the Port, is hereby created. The
Captain of the Port shall be president of the board ex officio, and any three
members thereof shall constitute a quorum for the transaction of business.
Whenever any person applies for license as maser, mate, or patron, it shall
be the duty of the board to make thorough inquiry as to his character and
carefully to examine the applicant, the evidence he presents in support of
his application and such other evidence as it may deem proper or desirable,
and if satisfied that his capacity, experience, habits of lie and character are
such as to warrant the belief that he can be safely intrusted with the duties
and responsibilities of the position for which he makes application, it shall
so certify to the Captain of the Port, who shall issue a license authorizing
such applicant to act as master, mate or patron, as the case may be.
XXX
SEC. 3. Every applicant for license as Master, Mate or Captain, shall

be a citizen of the United States or of the Philippine Islands, notwithstanding
any provision in existing Spanish laws to the contrary: provided, however,
That every citizen or subject of any other country who is now acting as
Master, Mate or Patron of any vessel flying the American flag may, if
otherwise qualified as herein prescribed, continue to act as such for the
period of two years. But he shall be required to secure a license and be
subject to all the other requirements and provisions of this act as are other
persons in like situations.
5
SEC. 4. Whenever the term “sailing vessel” is used in this Act, it

shall be understood and held to apply to sailing vessels of one hundred and
fifty tons or over, and whenever the term “steamer” is used, it shall be
understood and held to apply to all vessels of one hundred tons or over
propelled by steam alone or by steam and sail.
SEC. 5. Before issuing a license to any applicant for the position of

Master, the Captain of the Port shall receive from such applicant the sum
of five dollars in compensation for his examination and license, and for the
same service shall demand and receive from every Mate or Patron the sum
of three dollars, money of the United States. The sums thus collected shall
be paid, by the Captain of the Port, into the Insular Treasury.
SEC. 6. Members of the Board hereby created, unless in the service

of the United States or of the Government of the Philippine Islands, shall
be paid a per diem of five dollars, money of the United States, during the
period of time required in the examination of applicants.
SEC. 7. This act shall take effect on its passage.
ENACTED, January 16, 1901.
6
ACT NO. 101
AN ACT TO AMEND AN ACT ENTITLED “AN ACT APPROPRIATING

ONE MILLION DOLLARS IN MONEY OF THE UNITED STATES
FOR IMPROVING THE PORT OF MANILA,” ENACTED
OCTOBER FIFTEENTH, NINETEEN HUNDRED

SECTION 1. Section one of an act entitled “An Act appropriating

one million dollars in money of the United States for improving the Port of
Manila,” enacted October nineteen hundred, is hereby amended to read as
follows:
“The sum of one million dollars, in money of the United States, is

hereby appropriated, to be paid out of any money in the Insular Treasury
not otherwise appropriated, to be immediately available and to be expended
by the Military Governor, through the Chief Engineer, United States Army,
for the Division of the Philippine Islands, for continuing the improvements
of the harbor of Manila, including the outer harbor and the Pasig River
from the Bridge of Spain to the mouth, in accordance with the plans and
specifications prepared by the Chief Engineer, Division of the Philippines,
which have been submitted to and approved by the Commission, and are
on file in this office, and which are a modification of the plans and
specifications adopted and partially carried out by the Spanish Government
for the improvement of said harbor and which are also on file in the office
of the Chief Engineer.”
SEC. 2. Section two of said Act is hereby amended so as to read as

follows:
“The appropriation hereby made shall be first used, so far as it will

go, toward finishing what is known in the Spanish plan as the western
breakwater of said harbor, and extending the same in a southerly direction
so that its end will be in water about the depth of thirty feet at mean low
7
water, and in dredging behind and within said breakwater to a depth not
exceeding thirty feet at mean low water, so that shipping of the largest
class now frequenting the port of Manila may be able to lie under its
protection; to improve the present canal connecting the harbor thus made
with the Pasig River, and to improve the Pasig River below the Bridge of
Spain and the bar at the mouth of the river. So much of the material excavated
by such dredging as shall be necessary for the purpose shall be deposited
behind a timber bulkhead and elsewhere where required to form land in
shallow water near and along the shore line of the harbor. The said bulkhead
shall also be erected in accordance with the said modified plans of the
Chief Engineer. As soon as reasonably practicable a channel shall be
provided about five hundred feet in width and thirty feet in depth at mean
low water from the end of the western breakwater, when completed
according to said modified plans, to the said bulkhead, so that deep draft
vessels may lie alongside any wharves which may hereafter be provided on
the line of said bulkhead and load and unload without the use of lighters.
The improvement of the Pasig River hereby provided for shall consist
of the necessary works to provide by dredging and maintain a depth of
eighteen feet at mean low water from deep water in the Bay to the Bridge
of Spain. The improvement of the canal between the harbor and the Pasig
River shall consist of the necessary works to give a depth of fifteen feet at
mean low water through the said canal and into the Pasig River.”
SEC. 3. Section 5 of said Act is hereby amended by making all of

said section prior to Rule (a) read as follows:
“The work herein provided for shall, as far as practicable, be done

and the necessary materials purchased by contract or contracts with private
individuals or corporations. Bids for doing the same shall be advertised for
and the contracts for doing the same shall be awarded to the lowest
responsible bidder or bidders, except as hereinafter provided.
“When the Chief Engineer shall decide that public exigency requires
the immediate delivery of any article or performance of any service the
article or service required may be procured by open purchase or hire at the
8
places and in the manner in which articles are usually bought and sold or
such services engaged between individuals, provided the price of such article
or service does not in any single instance exceed five thousand dollars
Mexican. Provided, that the Chief Engineer is hereby authorized to make
contracts for the work of harbor improvements as projected and set forth in
said modified plans and specifications prepared by him as above set forth,
in addition to the sum already appropriated, to an amount not exceeding
two million dollars, money of the United States. Additional appropriations
will be made from time to time to make payments for said contracts on or
before the exhaustion of funds available for said contracts. And provided
further, that in the improvement of the Pasig River and the canal between
the harbor and the river, the Chief Engineer may cause the work to be done
by the use of hired labor and purchase of materials without first advertising
for bids, if in his opinion this method is most economical and advantageous
to public interests.
“The Chief Engineer may advertise and contract for the doing of the
work prescribed by this act either as a whole or in parts, as he may deem
most advantageous to the public interests.
“In making such advertisements or contracts he shall observe the
following general rules and regulations, viz:”
ENACTED, March 9, 1901.
9
ACT NO. 182
AN ACT TO AMEND ACT NUMBERED TWENTY-TWO AND ACT

NUMBERED ONE HUNDRED AND ONE RELATING TO THE
IMPROVEMENT OF THE HARBOR OF MANILA AND THE
PASIG RIVER

SECTION 1. Section two of Act Numbered One hundred and one,

entitled “An Act to amend an Act Entitled ‘An Act appropriating one million
dollars, in money of the United States, for improving the Port of Manila,’”
enacted October Fifteen nineteen hundred, is hereby amended so as to
authorize and direct the chief engineer officer, Division of the Philippines,
to improve the navigation of the Pasig River above the Bridge of Spain and
to and into Laguna de Bay, by dredging or otherwise, so as to secure a six-
foot depth for navigation along said river and into said lake.
SEC. 2. The appropriation and provision made by said Act Numbered

Twenty-two and Act Numbered One hundred and one, amendatory thereof,
are hereby made available for the purpose set forth in Section 1 hereof as
fully as though embraced in said original Acts.
SEC. 3. The chief engineer officer, Division of the Philippines, in

charge of said harbor improvement, is hereby authorized to use, directly or
through any authorized contractor, any stone or other material which he
may find available and desirable on any of the public lands of the Philippine
Islands. The chief engineer officer, Division of the Philippines, is further
authorized and empowered by and with the consent and approval of the
Civil Governor of the Philippine Islands, to warrant any contractor using
stone from what is known as the Mariveles quarries, and now in possession
of the Insular Government, against any claim for compensation or damage
made by any person or persons claiming to be the owner or owners of such
quarries, by reason of the use of the stone therefrom by such contractor or
contractors.
10
SEC. 4. 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.
ENACTED, July 29, 1901.
11
ACT NO. 198
AN ACT PROVIDING THE METHOD FOR FURNISHING OFFICIAL

TRANSPORTATION TO OFFICERS AND EMPLOYEES OF THE
INSULAR, PROVINCIAL AND MUNICIPAL GOVERNMENTS
IN THE CITY OF MANILA, FROM AND TO THE PROVINCES

SECTION 1. After the first of September, 1901, all official

transportation in the city of Manila, for the heads of Departments and
Bureaus, or employees thereof, whether of the Insular Government or the
Government of the City of Manila, shall be furnished in the following
manner and no other:
The Insular Purchasing Agent shall, either from the horses and
vehicles the property of the Insular Government which are now on hand, or
by purchase, provide quilezes or carromatas and horses and harnesses
sufficient to provide for actual official needs of all the Bureaus or
Departments, and shall station such vehicles and horses in front of the
public buildings in which the departments or bureaus are, to be available
during office hours for official use. The vehicles shall be in charge of an
agent of the Purchasing Agent, who shall, upon application, assign a
carromata or quilez for the particular service to be performed.
SEC. 2. The Purchasing Agent shall provide a suitable stable and

carriage house in which to stable the horses and keep the vehicles at the
expense of the Insular Government, and is authorized to employ the stable
boss, drivers, stable boys and other employees necessary for this purpose.
SEC. 3. The Purchasing Agent shall on or before September first

take possession of all horses and carriages now owned by the Insular
Government and furnished for the official use of the heads of Departments
or Bureaus, or of employees thereof, and use such of them as are adapted
to carry out the provisions of section one hereof. All two-horse carriages
12
and harnesses and also such other vehicles and horses so owned and
furnished as are not useful for the purposes of this Act, he is authorized and
directed to offer at public sale, to be sold to the highest bidder, after
advertisement in two newspapers of Manila, one English and one Spanish,
for ten days, and the proceeds shall be deposited in the Insular Treasury.
SEC. 4. It is the purpose and intent of this act that quilezes and
carromatas furnished hereunder shall be used only on official business and
not for the convenience or private use of the officers and employees to
whom they may be assigned, and in pursuance thereof, use of such vehicles
after the usual office hours is strictly prohibited, unless necessity for such
use on official business is certified to by the head of the Bureau or
Department. Use of such vehicles for transportation to or from the residence
of the head of the Department or Bureau, or that of any other officer or
employee, to his office, in the morning, at noon or in the evening, is not to
be regarded as official business and is expressly prohibited.
SEC. 5. In the case of the three members of the Municipal Board of

Manila, the City Engineer, the Superintendent of Streets, of Water Supply,
of Buildings, the Chief and Assistant Chief of the Fire Department, the
Chief and Inspectors of Police, the Chief of the Secret Service, the
Prosecuting Attorney, the City Attorney, the City Assessor and Collector,
the Chief Deputy Assessor, the Chief Deputy Collector, the Sheriff of
Manila, the Superintendent of School of Manila, the Chief Inspector of the
Board of Health of the Philippine Islands, the Insular Purchasing Agent,
the Local Buyer of the Insular Purchasing Agent, the Chief and First
Assistant Chief of the Philippine Constabulary, the Cashier of the Custom
House, and the Chief of the Stores Division of the Customs Service, and
the Assistant Attending Physician for civil employees, who will have
constant need of such vehicles for the discharge of their duties, a particular
quilez or carromata may be assigned by the Purchasing Agent to be used
for official purposes only, as those purposes are defined in section four, to
be stabled and cared for as other vehicles and horses in his charge.
SEC. 6. The Insular Purchasing Agent shall render property accounts

to the Auditor for all property coming into his hands by virtue of this Act.
13
SEC. 7. In submitting estimates for the necessary appropriations to

carry out the provisions of the foregoing sections, the Purchasing Agent
shall divide the expense between the city government and the Insular
Government in proper proportion, to enable the Commission to make the
proper appropriations from city and insular funds.
SEC. 8. The Insular Purchasing Agent shall contract with the

interisland transportation lines and with railroad companies for the
transportation of such officials as may be required by their official duties
to go to and from Manila from and to the provinces, and shall issue
transportation requests to such officials upon said companies for passage
according to the terms agreed on. The mode of payment for these
transportation requests shall be made by settlement warrant, upon
certification and settlement of the account by the Auditor, said warrants
being hereby made chargeable against the appropriations of the respective
Departments, Bureaus or Offices, in behalf of which the transportation is
issued, and each Department, Bureau or Office, shall submit for
appropriation, with its regular estimates, the amounts which will probably
be required for the payment of such transportation expenses.
the passage of the same is hereby expedited in accordance with Section
the enactment of laws,” passed September twenty-sixth, nineteen hundred.
ENACTED, August 12, 1901.
14
ACT NO. 199


SECTION 1. Act No. 22 and Act No. 101, amendatory thereof, for
improving the Port of Manila, are hereby amended so as to authorize and
empower the Chief Engineer, Division of the Philippines, to strengthen
and protect the timber bulkheads provided for in section two of said Act
Numbered One Hundred and One by riprap reinforcement and filling so
far as may be necessary to make safe and stable the said bulkhead.
SEC. 2. The Chief Engineer is hereby authorized and empowered

either to do said work by the purchase of materials and the hire of labor
under his own direction and supervision, or to make a contract with another
person to furnish said materials and do such work, as in the judgment of
the Chief Engineer may best subserve the public interests. In the event the
Chief Engineer should deem it best to have said materials purchased and
work done by contract, he is hereby authorized and empowered to advertise
for bids in two newspapers, one published in the English and one published
in the Spanish language, in the city of Manila, for a period of ten days, and
shall not be required to advertise in any newspaper in the United States or
elsewhere. Bids shall be opened and the contract let as is provided in said
Acts Numbered Twenty-Two and One Hundred and One and before any
bid is finally accepted the same shall be approved by the Civil Governor.
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-Six, Nineteen Hundred.
15
16
ACT NO. 217
AN ACT AMENDING ACT NUMBERED ONE HUNDRED AND

NINETY-EIGHT REGULATING THE METHOD OF OFFICIAL
TRANSPORTATION IN THE CITY OF MANILA AND
ELSEWHERE

SECTION 1. Act Numbered One Hundred Ninety-Eighty is hereby

amended as follows:
By substituting in the first line of section one the words “first of

October, Nineteen hundred and one,” in place of the words “first of
September, Nineteen Hundred and One;” by substituting in the first and
second lines of section three the words “October first” in place of the
words “September first.”
of “An Act Prescribing the Order of Procedure by the Commission in the
Enactment of Laws,” passed September twenty sixth, nineteen hundred.
17
ACT NO. 237
AN ACT TO AMEND SECTION FIVE AND SECTION EIGHT OF ACT

NUMBERED ONE HUNDRED AND NINETY-EIGHT, RELATING
TO OFFICIAL TRANSPORTATION

SECTION 1. Section five of Act Numbered One hundred and ninety-

eight, relating to official transportation, is hereby amended by adding thereto
the following :
“Provided, however, That nothing herein contained shall prevent, the

Chief and Assistant Chief of the Fire Department, the Chief and Assistant
Chief of Police, and the Attending Physician and his assistant to house and
stable their official vehicles and horses at their places of residence and to
use the same in going to and returning from such residences on official
business; but such vehicles and horses shall be under the control of the
Insular Purchasing Agent as to the care of vehicles and the care and forage
of horses.”
SEC. 2. Section eight of Act Numbered One hundred and ninety-

eight shall be amended by striking out the words “to go to and from Manila
from and to the provinces” and inserting in lieu thereof the following : “to
go from one point to another in the Archipelago,” and by adding to the
section the following: “The Insular Purchasing Agent shall furnish
transportation requests, with proper stubs, in book form, signed by him, to
each provincial treasurer, to enable the latter to countersign and issue the
same upon the order of the head of the proper Insular Bureau for any Insular
officer or employee, whose official duty requires him to proceed from the
province of the provincial treasurer to some other part of the Archipelago.
Each provincial treasurer receiving such requests shall be accountable for
them to the Insular Purchasing Agent. The Insular Purchasing Agent shall,
with the approval of the Insular Auditor, make proper regulations for the
18
issuing of such requests by the provincial treasurers to prevent their use for
improper or unauthorized purposes.”
of “An Act prescribing the order of procedure by the Commission in the
enactment of laws, passed September twenty-sixth, nineteen hundred.
19
ACT NO. 238
AN ACT FIXING THE LIMITS OF CAVITE HARBOR, VESTING THE

ADMIRAL OF THE UNITED STATES NAVY IN COMMAND OF
THE ASIATIC STATION WITH POLICE JURISDICTION
THEREOF AND PROVIDING RULES AND REGULATIONS FOR
GOVERNING VESSELS ANCHORING THEREIN

SECTION 1. That portion of Manila Bay known as Cavite Harbor to

the southward of a line drawn from Sangley Point to Parañaque and for
one-half of a sea mile due north of said line and limits, is hereby placed
under the police supervision of the admiral of the United States Navy in
command of the Asiatic Station in so far as relates to the control of vessels
in said harbor. He is authorized to appoint a line officer of the United States
Navy to be supervisor of the harbour and to have charge therein of the
berthing of all vessels, other than naval vessels, and of the enforcement of
the provisions of this Act. The admiral is also authorized to appoint a deputy
supervisor, who is to be also a line officer of the United States Navy, to
assist the supervisor, and, subject to the supervision of the supervisor, he
shall have the same power as the supervisor himself.
SEC. 2. The following rules and regulations are hereby prescribed

for the government of any vessel, other than a vessel of the United States
Navy, desiring to berth within the limits aforesaid:
(a) Any such vessel shall first obtain permission to berth within said
limits from the Captain of the Port of Manila, whose duty it shall be to
notify the senior naval officer afloat at Cavite, addressing Commandant of
Cavite Naval Station, of the approximate time of the arrival of said vessel
at Cavite, giving the name and length of said vessel and her draft when
loaded.
(b) When by reason of stress of weather, or of any other urgent

necessity, a vessel is compelled to enter Cavite Harbor without having had
20
an opportunity to communicate with the Captain of the Port of Manila, she

will take berth as hereinafter provided.
(c) The supervisor of Cavite Harbor, so appointed by the admiral in

command of the station, shall have charge of the berthing of all vessels,
other than naval vessels, and the enforcement of the provisions of this Act.
(d) It shall be the duty of the supervisor to see that all vessels entering
Cavite Harbor shall be met by a steam launch or tug and directed to a
proper berth, and all vessels so entering or changing from one berth to
another shall do so in accordance with the direction of the supervisor.
(e) Should any vessel entering Cavite Harbor for any reason not be
met and conducted to its berth as provided in the next preceding paragraph,
it may anchor temporarily in any open berth, but is required to keep steam
up ready to move, until such anchorage is confirmed or said vessel is directed
to another berth.
(f) All vessels are required to moor, if they are directed so to do, if
the same be deemed advisable by the supervisor and he directs that the
same be done.
(g) All vessels shall have steam up and be ready to move during a
typhoon or other heavy weather.
(h) The commanders of vessels and other persons or corporations

are hereby forbidden to dump, or permit to be dumped, ashes or other refuse
within the limits of Cavite Harbor. Lighters to remove such ashes or other
refuse shall be provided by the supervisor of the harbor and shall be
available at any time upon application to him, and he will fix and collect
the charge the vessels shall pay for the service of removing such ashes or
refuse, and such lighters may, except in bad weather, be called alongside
by hoisting the international letter “L.” When, owing to heavy weather or
other causes, lighters can not come alongside the vessel, the ashes and
refuse shall be retained on board until the weather moderates so that lighters
can be put alongside, or until the vessel leaves the harbor limits.
21
(i) Commanders or owners of vessels and all other persons or

corporations are forbidden to obstruct said harbour by sinking or permitting
to be sunk obstructions of any character, such as wrecks or lighters or other
hindrances to navigation. All such wrecks or obstructions shall be removed
by the supervisor at the expense of the officers, owners, agents, or masters
of vessels immediately responsible for their presence in the harbour.
SEC. 3. The officer or person in charge of any vessel anchoring or

mooring in Cavite Harbor, within the limits aforesaid, who shall fail to
comply with the above regulations, or with any other reasonable rules and
regulations that may be hereafter issued by the admiral in charge for the
government of vessels in said harbour, shall be fined by the supervisor
fifty dollars, money of the United States, for the first offense, and one
hundred dollars, money of the United States, for each subsequent offense,
and said fines shall be paid by the master, owner, or agent of such vessel to
the Captain of the Port of Manila, and shall by him be accounted for as
insular funds. In case the fines are assessed against the masters, owners, or
agents of any vessel for not complying with such harbor regulations and
the same are not paid as herein required, it shall be the duty of the Captain
of the Port of Manila to notify the Collector of Customs for the Islands and
chief port, who shall refuse such vessel clearance from said port, and he
may further revoke her charter or take away her license to trade in the
Philippine islands : Provided, however, That if the makers or owners of
vessels of the Quartermaster’s Department of the United States shall fail to
comply with such harbor regulations they shall not be fined as herein
provided, but shall be reported by the supervisor to the Military Governor
for punishment or may be debarred from the use of the harbor.
enactment of laws, passed September twenty-sixth, nineteen hundred.”
22
ACT NO. 266
AN ACT CREATING THE BUREAU OF COAST GUARD AND

TRANSPORTATION

SECTION 1. There is hereby created a Bureau for the purpose of

organizing, directing and controlling, island and inter-island water
transportation for governmental purposes, and for the establishment and
maintenance of an efficient coast-guard service which shall be called the
Bureau of Coast Guard and Transportation and which shall be under the
general control and supervision of the Secretary of Commerce and Police.
SEC. 2. The Bureau of Coast Guard and Transportation shall be under

the immediate control and management of a suitable person, to be selected
by the Civil Governor, by and with the consent of the Commission, who
shall be known as the Chief of Coast Guard and Transportation and who
shall be paid an annual salary of three thousand, five hundred dollars, money
of the United States, payable monthly.
SEC. 3. The Bureau shall be organized into three divisions, the first
of which shall have in charge the construction, maintenance and operation
of the vessels belonging to or under the charge of the Bureau. The second
of such divisions shall have in charge the illumination, inspection and
superintendence of light houses, buoys, beacons, light vessels, seamarks
and their appendages. The third of these divisions shall have in charge the
construction of light-houses, buoys, beacons, light vessels, sea marks and
their appendages. Each of the divisions shall be in charge of a
superintendent, appointed by the Civil Governor, by and with the consent
of the Commission. They shall each be paid an annual salary of two
thousand, five hundred dollars, money of the United States, payable monthly.
SEC. 4. The Chief of Bureau shall cooperate with the Collector of

Customs for the Philippine Archipelago in performing such service as may,
in the opinion of the latter, be necessary to enforce the collection of revenues
23
and prevent smuggling and unlawful importations. The Collector of Customs

shall have the power, when the public interests require it, to assign to any
of the vessels used in the transportation division a revenue agent to be
carried on board such vessel, who shall be assigned suitable quarters thereon.
SEC. 5. It shall also be the duty of the Chief of Bureau to provide for
the transportation, on official business, of all insular and provincial officials,
their subordinates, agents, and employees, and of all witnesses, prisoners,
and guards, when transportation is required in the administration of justice,
and of all goods and freights of the insular or provincial governments, or of
the various departments or bureaus thereof, and also for the transportation
of the presidents, councilors and other officers of municipalities when
traveling to and from the provincial capitals in pursuance of law.
SEC. 6. It shall be the duty of the Chief of Bureau to cooperate with

the Director General of Posts in carrying the mails between the various
points in the Islands, under such regulations and schedules as to time as
will make the postal service most effective. It shall also be the duty of the
Chief of Bureau to see that the agents of the Postal Department have
adequate accommodations on board such vessels; when designated by the
Director-General of Posts for such duty.
SEC. 7. It shall be the duty of the Chief of Bureau to cooperate with

the Chief of Philippines Constabulary in the transportation of provincial
inspectors and constabulary and of insular and provincial stores and supplies
as the public service may, in the opinion of the Chief of Constabulary,
require.
SEC. 8. The Chief of Bureau, with the approval of the Secretary of

Commerce and Police, shall prescribe, and, from time to time, may alter or
amend and cause to be enforced such regulations as he may deem proper
for securing efficient, uniform, and economical administration of the Coast
Guard, Transportation, and Light- house Services. He is hereby empowered,
after proper appropriations are made for that purpose, to make all necessary
contracts for the repair and equipment, subject to the approval of the
Secretary of Commerce and Police, of vessels, light-houses, light vessels,
24
beacons, buoys, and accessories, and to supervise all work of construction

and repair and to authorize all travel required by the subordinate officers
and employees of his Bureau; he is also empowered to prescribe the uniform
to be worn; also to prescribe the salaries of the respective keepers of light-
houses, apprentices, and boatmen, in such manners as he deems just and
proper, but the whole sum allowed for such salaries shall not exceed an
average of three hundred and sixty dollars per annum for keepers, one
hundred and forty-four dollars per annum for apprentices, and one hundred
and eight dollars per annum for boatmen. He may also supply the isolated
light-house stations with provisions in addition to their salaries.
SEC. 9. The Chief of Bureau shall, at as early a date as practicable,

submit to the Secretary of Commerce and Police a report upon the number
of vessels which in his opinion are required for the Coast Guard,
Transportation, and Light-house Services, the type and probable cost of
such vessels, the salaries of their officers and crews and an estimate of the
cost of their running expenses and necessary repairs and also repair shops
and docks.
SEC. 10. The following clerical force is hereby authorized to be

employed in this Bureau: One chief clerk, class five; one disbursing clerk,
class six; one stenographer and typewriter, class eight; three property clerks,
class eight; two clerks, class nine; two copyists, Class A; two storekeepers,
Class A; and two assistant storekeepers, Class F. That portion of this force
which will be especially assigned for work connected with the Coast Guard
and Transportation Service will not be appointed until occasion for such
appointment arises. The Civil Governor is empowered to appoint as the
Chief of Bureau the Captain of the Port of Manila, and the present clerical
force employed in the office of the Captain of the Port of Manila shall be
utilized, as far as possible, for carrying on the work for the Light-house
Service and also for the Coast Guard and Transportation Service, until
additional appointments are made as provided for herein.
SEC. 11. The public good requiring the speedy enactment of this
bill, the passage of the same is hereby expedited in accordance with section
25

ENACTED, October 17, 1901.
26
ACT NO. 275
AN ACT AMENDING ACT NUMBERED FIFTY-FIVE, RELATING TO

CRUELTY TO ANIMALS IN TRANSPORTATION, SO AS TO
REQUIRE PROPER MEANS OF SECURING ANIMALS IN
TRANSIT AND OF LOADING AND UNLOADING THEM

SECTION 1. Section one of Act Numbered Fifty-five, entitled “An

Act providing for wholesome food supplies and preventing cruelty to
animals in transportation,” is hereby amended by adding at the end of said
section the following words : “The owners or masters of steam, sailing, or
other vessels, carrying or transporting cattle, sheep, swine, or other animals
from one port in the Philippine Islands to another, or from any foreign port
to any port within the Philippine Islands, shall provide suitable means for
securing such animals while in transit so as to avoid all cruelty and
unnecessary suffering to the animals, and suitable and proper facilities for
loading and unloading cattle or other animals upon or from vessels upon
which they are transported, without cruelty or unnecessary suffering. It is
hereby made unlawful to load or unload cattle upon or from vessels by
swinging them over the side by means of ropes or chains attached to the
horns.”
SEC. 2. This Act shall take effect November first, nineteen hundred
and one.
27
ACT NO. 316

APPLICANTS FOR THE POSITIONS OF MASTER, MATE, AND
PATRON OF SEAGOING VESSELS

SECTION 1. Section three of Act Numbered Seventy-three, entitled

“An Act providing for the examination and licensing of applicants for the
positions of master, mate, and patron of seagoing vessels,” is hereby
amended so as to read as follows:
“SEC. 3. Every applicant for license as master, mate, or patron shall

be a citizen of the United States or of the Philippine Islands, notwithstanding
any provisions in the existing Spanish laws to the contrary: Provided,
however, That every citizen or subject of any other country who is now
acting as master, mate, or patron of any vessel flying the American flag
may continue to act as such for the period of two years from the date of the
passage of this Act, but nothing herein contained shall restrict or limit the
power of the board to revoke a license where granted under the provisions
of this Act or by virtue of former legislation, for incompetency.”
enactment of laws,” passed September twenty-sixth, nineteen hundred.
ENACTED, December 13, 1901.
28
ACT NO. 321
AN ACT TO AMEND SECTION FIVE OF ACT NUMBERED ONE

HUNDRED AND NINETY-EIGHT, RELATING TO OFFICIAL
TRANSPORTATION, AS AMENDED BY ACT NUMBERED TWO
HUNDRED AND THIRTY-SEVEN

SECTION 1. Section five of Act Numbered One hundred and ninety-

eight, relating to official transportation, as amended by Act Numbered Two
hundred and thirty-seven, is hereby amended by striking out the last
paragraph beginning “Provided, however,” and ending “forage of horses,”
and inserting in lieu thereof:
“Provided, however, That when the public interest shall require, the
Civil Governor may authorize the assignment of a special carromata or
other vehicle for the use of the head of any Department or Bureau, or any
employee thereof, and may authorize such official to house and stable such
official vehicle and horses at his place of residence, and to use the same in
going to and returning from such residence on official business ; but such
vehicle and horses shall be under the control of the Insular Purchasing
Agent as to the care of the vehicle and the care of forage for horses.”
29
ACT NO. 352
AN ACT APPROPRIATING THE SUM OF SIXTEEN THOUSAND ONE

HUNDRED AND NINETY DOLLARS AND FORTY-EIGHT
CENTS, OR SO MUCH THEREOF AS MAY BE NECESSARY,
FOR THE PURCHASE OF A LAUNCH FOR THE BUREAU OF
COAST GUARD AND TRANSPORTATION

SECTION 1. The sum of sixteen thousand one hundred and ninety

dollars and forty-eight cents, in money of the United States, or so much
thereof as may be necessary, is hereby appropriated, out of any money in
the Insular Treasury not otherwise appropriated, for the purchase of a launch
for the Bureau of Coast Guard and Transportation, and for the necessary
alterations, insurance, supplies, cost of delivery in Manila, and expenses
incident to the purchase of the same.
SEC. 2. The sum appropriated in this Act shall be disbursed in local

currency upon the basis of two dollars and ten cents in local currency for
one dollar in money of the United States.
ENACTED, February 4, 1902.
30
ACT NO. 376
AN ACT AUTHORIZING THE COLLECTOR OF CUSTOMS FOR THE

PHILIPPINE ARCHIPELAGO TO CLEAR VESSELS FOR PORTS
NOT OPEN TO VESSELS ENGAGED IN THE COASTWISE
TRADE

SECTION 1. The Collector of Customs for the Philippine Archipelago

is hereby authorized to clear vessels for any port, in provinces where civil
government is in force, not open to vessels engaged in the coastwise trade,
and where no inspectors of customs are stationed, whenever in his judgment
it is necessary to do so in order to promote and advance commerce and
business : Provided, That in every case where such permission is granted,
the vessels to which it is given shall report to the inspector of customs at
the open port nearest the port for which it is cleared and shall deposit the
ship’s papers with him; and, after entering the closed port, shall return to
the open port and report to the inspector of customs for clearance.
31
ACT NO. 382

THIRTY-EIGHT, FIXING THE LIMITS OF CAVITE HARBOR
AND PROVIDING FOR THE POLICE JURISDICTION THEREOF
AND FOR THE ANCHORAGE OF VESSELS THEREIN, BY
CHANGING THE TITLE OF THE OFFICER IN CHARGE TO
“REAR-ADMIRAL OF THE UNITED STATES NAVY IN
COMMAND OF THE ASIATIC STATION”

SECTION 1. Act Numbered Two hundred and thirty-eight, entitled

“An Act fixing the limits of Cavite harbor, vesting the Admiral of the
United States Navy in command of the Asiatic Station with police
jurisdiction thereof and providing rules and regulations for governing vessels
anchored therein,” is hereby amended by striking out the word “Admiral”
where it appears in the title and in the body of the Act and inserting in lieu
thereof the words “Rear Admiral.”
ENACTED, April 2, 1902.
32
ACT NO. 394
AN ACT PROVIDING FOR THE CLOSING OF THE PORT OF SIASSI,

DISTRICT OF JOLO, AS A PORT OF ENTRY, AND FOR THE
OPENING OF THE PORT OF APARRI, DISTRICT OF MANILA,
AND AMENDING ACTSNUMBERED THREE HUNDRED AND
FIFTY-FIVE AND THREE HUNDRED AND SIXTY-SEVEN IN
CERTAIN PARTICULARS

SECTION 1. The port of Siassi, in the Jolo collection district, is

hereby discontinued as a port of entry, and section sixteen of Act Numbered
Three hundred and fifty-five, and section twenty-eight of Act Numbered
Three hundred and sixty-seven, making provision for such port and for
employees thereat are hereby repealed. The port of Siassi, however, will
remain open to the coastwise trade.
SEC. 2. The port of Aparri, in the Manila collection district, is hereby

created a port on entry in charge of an acting collector of customs.
SEC. 3. The following employees are hereby authorized for the Aparri
custom-house, and in the office of the acting collector of customs for the
port of Aparri : One acting collector of customs of class six, who shall act
as disbursing clerk without additional compensation; One clerk of Class D
; four boatmen of Class K, at seventy-two dollars per annum each, in money
of the United States.
SEC. 5. This Act shall take effect on June first, nineteen hundred and
two.
33
ACT NO. 454

THIRTY-EIGHT, FIXING THE LIMITS OF CAVITE HARBOR
AND PROVIDING FOR THE PEOPLE JURISDICTION
THEREFOR AND FOR THE ANCHORAGE OF VESSELS
THEREIN
By authority of the United States, be it enacted by the Philippine

Commission, that:
SECTION 1. Section two of Act Numbered Two hundred and thirty-

eight, entitled “An Act fixing the limits of Cavite Harbor, vesting the Admiral
of the United States Navy in command of the Asiatic Squadron with police
jurisdiction thereof and providing rules and regulations for governing vessels
anchoring therein,” is hereby amended by striking out the Letter “L” in the
tenth line of paragraph (h) of said section and inserting in lieu thereof the
letter “R.”
34
ACT NO. 484
AN ACT PROVIDING FOR THE GRANTING OF A FRANCHISE TO

CONSTRUCT AN ELECTRIC STREET RAILWAY ON THE
STREETS OF MANILA AND ITS SUBURBS AND A FRANCHISE
TO CONSTRUCT, MAINTAIN, AND OPERATE AN ELECTRIC
LIGHT, HEAT, AND POWER SYSTEM IN THE CITY OF MANILA
AND ITS SUBURBS, AFTER COMPETITIVE BIDDING

Commission, that:
SECTION 1. There shall be granted by the Municipal Board to the

person or persons making the most favourable bid, as hereinafter provided,
a franchise to construct and maintain in the streets of Manila and its suburbs
an electric street railway and a franchise to construct, maintain, and operate
an electric light, heat and power system in the city of Manila and its suburbs.
SEC. 2. Subject to the necessary amendments to be fixed by the

terms of the successful bid, the form of the franchise to be granted hereunder
shall be in words and figures following:
“FRANCHISE.
“ A franchise is hereby granted to. . . . . . . . . . . . . . . . . . ., for the period of

. . . . . . . . . . . . . . [not more than fifty years from the date hereof], to
construct, maintain, and operate an electric street railroad in the city of
Manila and its suburbs, over the streets, thoroughfares, bridges, and public
places set forth in part one hereof; and to construct, maintain, and operate
an electric light, heat, and power system for the purpose of generating and
distributing for sale light, heat, and power throughout the city of Manila
and its suburbs; all in accordance with the terms and conditions set forth in
two parts hereof, respectively (the terms and conditions in part one applying
only to the franchise therein referred to, and the terms and conditions in
part two applying only to the franchise therein referred to), and the laws
and ordinances, not inconsistent herewith, now or hereafter in force.
35
“PART ONE.
“PARAGRAPH 1. The grantee shall have the right and privilege,

and is hereby authorized, subject to the laws and ordinances now or hereafter
in force, not inconsistent herewith, to make all needful excavations and
constructions in or upon any of the streets, thoroughfares, bridges, and
public places designated in the next succeeding paragraph for the purpose
of placing, removing, and repairing tracks, sidings, curves, switches, and
connections, and erecting poles, wires, and other overhead structures for
the maintenance and operation of an electric street railroad, and for the
generation, conduction, and distribution of electric current for said street
railroad and for building, maintaining, and operating power houses therefor.
“PAR. 2. The streets, thoroughfares, bridges, and public places upon

which the grantee is authorized to make such excavations and constructions
are the following:
“(a) Commencing at the southerly end of the Bridge of Spain, to and

along Calzada de Magallanes, across the Plaza de Martires to Calle Santo
Tomas, thence to Calle Palacio, thence through the wall and across the
moat to Paseo de Vidal, thence along Paseo de Bagumbayan to Calle San
Luis, thence along Calle Real to Calle Cabañas,thence over the bridge of
San Antonio, and to the Pasay race track.
“(b) From the easterly end of Calle Aduana to Calle Palacio, thence
to Calle de Fundicion.
“(c) From the southerly end of the Bridge of Spain to Paseo de Vidal,
along said paseo to its junction with Calzada de Nozaleda, along said calzada
to its junction with Calzada de San Marcelino.
“(d) From the junction of Calzada de Vidal and Calle Concepcion to

Calzada de San Marcelino, along the latter calzada to its junction with
Calle Nozaleda, thence to Calle Real (Paco), and along said street to Santa
Ana.
36
“(e) From the southerly end of the Bridge of Spain to the Bridge of
Santa Cruz, across the Bridge of Santa Cruz through Plaza Goiti to Calle
Echague, thence to Calle San Miguel, thence to Calle General Solano, thence
to Calzada de Aviles, and along Calzada Santa Mesa to Santa Mesa.
“(f) From Plaza Goiti to Plaza Santa Cruz, thence to Calle Enrile,
thence to Calle Lacoste, thence to Calle Carballo, thence to Calle Nueva,
to and across the Bridge of Spain.
“(g) From the intersection of Calle San Jacinto and the Escolta, along
Calle San Jacinto to Calle Sacristia, thence across the Bridge of Binondo
to Calle San Fernando, thence to Calle Madrid, thence to Calle Aceyteros,
thence to Calle de Sagunto, thence to Paseo de Azcarraga, thence to Calle
General Izquierdo, thence to Calle San Bernaldo, thence to Calle Paz, thence
to Calle Bilibid, thence to Calzada de Iris to Plaza Santa Ana, thence along
Calle Alix to Rotonda de Sampaloc.
“(h) From the intersection of Paseo de Azcaraga and Calle Ylaya

along the latter street around Plaza Leon XIII, to and along Calle de Sande
to Reina Bridge.
“(i) From the intersection of Paseo de Azcarraga, along Calle de Reina

Regente, across the Bridge of Maura to the intersection of the line on Calle
Sacristia.
“(j) From the intersection of Calle San Bernaldo (Calle Paz) and
Calle Arranque to the intersection of Calle of Arranque and Calle Lacoste.
“(k) From the intersection of Calle de Bilibid and Calle Cervantes,

along said Calle Cervantes to the San Lazaro race track.
“(l) From the northerly end of the Bridge of Spain along the Escolta,
across the bridge over the Sibacon Estero to Plaza Santa Cruz.
“PAR. 3. The grantee shall have the right to lay double tracks upon
each of the streets, thoroughfares, bridges, and public places mentioned in
the last preceding paragraph, except the following, upon which, except
37
with the express consent of the Municipal Board to the laying of a double
track, only single tracks shall be laid:
“Calle Enrile, Calle Lacoste, Calle Carballo, Calle Sacristia, where

these streets are less than twenty-four feet wide between curb lines; also
Calle San Jacinto, Calle Nueva (Binondo), Calle de Cabaños; also Calle
Cabildo, Calle Santo Tomas, Calle de Fundicion, Calle Palacio, Calle
Aduana, these last four being the streets within the Walled City: Provided,
That the grantee shall have the privilege, under the direction of the Municipal
Board, of placing upon all of the foregoing streets the necessary turn-outs,
switches , and sidings: And provided further, That in all streets,
thoroughfares, bridges, and public places the tracks, rails and other
constructions of the grantee shall be so laid and located as to leave a clear
driveway between the tracks and the curb line on at least one side of such
tracks, where the width of the street between the curves makes it physically
possible.
“PAR. 4. The system of electric railroad to be installed hereunder by

the grantee shall be the ‘overhead trolley system,’ but the grantee shall
have the right and privilege to modify, improve, and change such system in
such manner as the progress of science and improvements in and the
development of motive power may make reasonable and proper; and at any
time after twenty-five years from the date hereof the grantee may be required,
by ordinance or law, to remove all of its overhead wires and other structures,
if reasonably practicable, and to substitute therefor underground wires, or
other approved conductor or motive power.
“Par. 5. Standard T rails of at least sixty pounds weight per yard may
be used, and where used shall be laid and maintained true to the finished
grade of the street or place, so that the grade of the street or place and the
top of the rails shall present an unbroken surface, excepting that on the
inner side of the rails of each track not more than sufficient space shall be
left to allow the free passage of the car wheel flanges: Provided, however,
That at least two miles of such tracks shall be laid with grooved rails of the
most approved pattern, weighing not less than seventy pounds per yard,
the Municipal Board to specify the streets or parts of streets where such
38
grooved rails shall be laid : And provided further, That whenever in the
future the Municipal Board shall pave streets or places in which the T rail
is laid, with blocks of stone, wood, or other material the grantee agrees to
substitute for the T rail in such streets, parts of streets or places, the grooved
rail above described, if required to do so by the Municipal Board.
“PAR. 6. The gauge of all tracks laid or maintained hereunder shall

be four feet eight and one - half inches.
“PAR. 7. The grantee shall in all cases lay and maintain its tracks so
as to conform to the grades of the streets, thoroughfares, bridges, and public
places along or across which said tracks may be constructed, and whenever
such grades shall hereafter be established or altered by the municipal
authorities of the city of Manila the grantee shall immediately relay and
maintain its tracks to such established grades at its own expense: Provided,
That if any grade at which any such track is now laid is altered by the said
municipal authorities within seven years from the date hereof, the city of
Manila shall not only furnish the material to enable the grantee to conform
the bed of its tracks to the altered grade, but shall also furnish the material
necessary to reconstruct the cement substructure of the track of the grantee
at the new grade: And provided further, That whenever the grade at which
any such track is laid is altered by the said municipal authorities after more
than seven years from the date hereof, the city of Manila shall furnish the
material to enable the grantee to conform the bed of its tracks to the altered
grade, less the cement substructure of the track.
“PAR. 8. The tracks, wires, and other constructions of the grantee

shall be supported by and cross all bridges in the manner directed by the
municipal authorities.
“PAR. 9. The grantee shall pave and keep in good and permanent
repair the surface of the street between its rails and between its tracks and
for eighteen inches on each side of its tracks under the supervision of the
municipal authorities and in such manner as they shall prescribe: Provided,
That if the municipality shall order a change of the kind of pavement with
which any street or place over which the line of the grantee runs is paved
the materials necessary to enable the grantee to change the pavement of so
39
much of the surface of the street as it is hereunder required to keep in good

and permanent repair in order to conform to the change ordered by the
municipal authorities shall be furnished by the municipal authorities to the
grantee.
“PAR. 10. The poles erected by the grantee for the operation of its
railroad shall be of such height and shall be so located and painted as the
municipal authorities shall direct. The poles shall not be of such crooked
or ungainly appearance as to disfigure the streets.
“PAR. 11. The trolley wires of the grantee may be suspended by

span wires or brackets, shall have double insulation, and shall be strung at
such heights above the ground as the municipal authorities shall direct.
Feeder wires shall be of the insulated type known as ‘triple braid weather
proof,’ and no overhead wire or conductor shall carry a potential greater
than five hundred and fifty volts.
“PAR. 12. The grantee shall at all times keep its tracks, rolling stock,
and other constructions in good condition. Two classes of cars shall be run,
and at least sixty percent of the cars run shall be second class cars. The
grantee hereof shall at all times furnish cars of both classes sufficient to
satisfy the public demand and carry comfortably all the members of the
public desiring to ride thereon: Provided, That, after one year of operation,
the Municipal Board shall have the power, with the concurrence of the
grantee of this franchise, to amend this paragraph so as to require that only
one class of cars shall be run, upon which the lower rate of fare shall be
charged.
“PAR. 13. Every motor car run by the grantee shall be equipped
with a fender of a type to be approved by the municipal authorities.
“PAR. 14. The maximum rate of speed at which the grantee may
operate its cars shall be fixed by the municipal authorities.
“PAR. 15. The fare charged by the grantee shall not exceed . . . . . .
cents, in money of the United States, on a first-class car, or . . . . . . . . . . .
cents, in money of the United States, on a second-class car, for one
40
continuous ride from one point to another on the railway system of the
grantee within the city limits as now or hereafter established, whether it be
necessary to transfer the passenger from one car or line of the grantee to
another during said ride or not: Provided always, That where change of
cars is necessary there shall be established by the grantee a method of
transfer not unreasonably burdensome in its restrictions to the transferred
passengers; and in case of a failure to comply with the foregoing requirement
as to transfers it may be enforced upon application of the Municipal Board
by mandamus to the proper Court of First Instance or the Supreme Court:
And provided further, That on lines running outside of the city limits an
additional fare may be charged at the rate of five cents, in money of the
United States, on first-class cars, or three cents, in money of the United
States, on second-class cars, for each two miles or fraction thereof beyond
the then city limits: And provided further, That the grantee shall for four
years from the date hereof accept local currency in lieu of money of the
United State in payment for any ride or fare at the ratio of two cents local
currency for one cent in money of the United States, until such time as
there shall be established in these Islands a gold-standard coinage and money
there under shall be made legal tender, after which time the fares to be
charged shall be the equivalent of those stated above in money of the United
States: And provided further, That pending the adoption of the gold standard,
if the official ratio existing between the money of the United States and
local currency shall exceed two dollars and forty cents of local currency
for one dollar of money of the United States, then and in that case the
grantee may require from the passengers the payment for fares of sufficient
local currency to be the equivalent of the fares above fixed in money of the
United States at the official ratio: And provided further, That at any time
after twenty-five years from the date hereof, upon due notice from the city
of Manila to the grantee, the fares charged by the grantee may be readjusted
on a reasonable basis by three arbitrators, one to be chosen by the city, one
by the grantee, and the third to be selected by the two so chosen if they can
agree, but if not, then to be selected by the Chief Executive of the Islands.
The award of the majority of such arbitrators shall be final. [No bids on
this franchise shall be received for fares exceeding seven and one-half cents
on a first-class car or five cents on a second-class car, in money of the
United States.]
41
“PAR. 16. Members of the Police and Fire Departments of the city of
Manila wearing official badges shall be entitled to ride free upon the cars
of the grantee, subject to such reasonable and proper restrictions as may be
imposed. The fares charged children under seven years of age and children
under sixteen years of age going to and from school shall not exceed half
the ordinary rates of fare. Children in arms shall ride free. The grantee
shall have the power to establish reasonable regulations for identifying
those children going to and from school.
“PAR. 17. Until such time as the fares herein fixed shall be readjusted
the grantee shall place on convenient sale lots of one hundred tickets at the
rate of . . . . . . . . . . . . , in money of the United States, per hundred, each of
which shall be good for one first-class continuous ride on the cars of the
grantee within the limits of the city of Manila; and lots of six tickets at the
rate of. . . . . . . . . . . . , in money of the United States, per six, each of which
shall be good for one second-class continuous ride on the cars of the grantee
within the city limits: Provided, That the grantee may issue such tickets
subject to such reasonable restrictions as to the grantee may seem proper.
[No bids will be received which shall fix the price of first-class tickets in
lots of one hundred at the rate of more than six dollars, in money of the
United States, or which shall fix the price for lots of six second-class tickets
at the rate of more than twenty-five cents, in money of the United States].
“PAR. 18. In compliance with the franchise held by the Compañia

de los Tranvias de Filipinas, the grantee herein shall pay to said Compañia
de los Tranvias de Filipinas five per centum of one peseta per passenger
for each kilometer of the line of said Compañia de los Tranvias de Filipinas,
and a proportionate amount for each fraction of a kilometre of said line
over which said passenger is transported.
“PAR. 19. The grantee shall be liable to pay the same taxes on its
real estate, buildings, plant (not including roadbed and track, rolling stock,
poles, and wires), machinery, and personal property as other persons are
now or hereafter by law may be required to pay. The grantee shall further
pay to the municipal government of the city Manila . . . . . . . . . . . per
centum of the fares collected and tickets sold within the limits of the city of
42
Manila, and the same percentage of fares collected and tickets sold without
the said limits to the proper municipality or municipalities of the Province
of Rizal. Said percentage shall be due and payable by the grantee monthly,
and shall be in lieu of all taxes and assessments of whatsoever nature, and
by whatsoever authority, upon the privileges, earning, income, franchises,
roadbed, track, rolling stock, poles, and wires of the grantee, from which
taxes and assessments the grantee is hereby expressly exempted. [No bids
will be received for this franchise which do not provide for the payment of
at least one and one-half per centum of the fares collected and tickets sold.]
“PAR. 20. The grantee shall keep a record of all fares collected and
tickets sold, which shall be subject to the inspection of the municipal
authorities, who shall audit and approve the accounts of the company at
the end of each month before the payment of the percentage tax. The
accounts when audited and approved as herein provided shall be final and
conclusive evidence of the liability of the company under the provision of
paragraph nineteen.
“PAR. 21. The grantee shall begin the construction of the road within
the city of Manila within six months from the date of the granting of the
franchise, and shall complete the construction of the road and commence
the operation of the same within twenty months after the expiration of said
period of six months, unless prevented by an act of God, or the public
enemy, usurped or military power, martial law, riot, civil commotion, or
inevitable cause, and shall thereafter maintain a first-class street-railway
service in every respect. The failure of the grantee to comply with the
conditions of this paragraph shall render the franchise in this part described
liable to forfeiture.
“PAR. 22. Upon the award of this electric street-railway franchise

and before the same is finally granted, the grantee shall pay to the Treasurer
of the Philippine Archipelago, to the credit of the city of Manila, the sum
of one hundred and seventy-five thousand dollars, money of the United
States, in securities to be approved by the Civil Governor of the Philippine
Islands, as security for the performance of the bid: Provided, That the said
sum shall be repaid by the Treasurer to the grantee in the event of the
faithful performance by the grantee of all the conditions of this franchise,
43
and of all the obligations herein imposed on the grantee, whenever, within
the period hereinbefore fixed, three-fourths of the mileage of the road
covered by this franchise shall have been constructed. If, however, the
grantee shall, within the time required, fail to perform the obligations of
his contract, then the city may, by appropriate action, recover the sum so
deposited as liquidated damages for the breach. If the deposit of one hundred
and seventy-five thousand dollars shall be invested in interest-bearing
securities, the interest shall be collected by the Treasurer and shall be turned
over to the grantee as it accrues and is collected, until, and unless, the
grantee shall fail to perform the obligation of his contract, when thereafter
accruing interest shall be regarded as part of the liquidated damages.
“PAR. 23. The grantee shall hold the city of Manila harmless from
all claims, account, demands, or actions arising out of accidents or injuries,
whether to property or persons, caused by the construction or operation of
the road.
“PAR. 24. All reasonable or proper or necessary changes on the

lines or routes of the grantee may be made by the grantee, with the approval
of the municipal authorities and the consent of the Civil Governor.
“PAR. 25. The violation or the infringement by the grantee of any of

the conditions or the terms as above set forth in part one hereof shall not
subject or render liable to forfeiture the franchise more particularly described
in Part Two hereof.
“PAR. 26. Whenever any franchise or right of way is granted to any

other street railway company, now or hereafter in existence, over the portions
of the lines and tracks of the grantee herein, the terms on which said other
company shall use such right of way, and the compensation to be paid to
the grantee herein by such other company for said use, shall be fixed by the
members of the Supreme Court, sitting as a board of arbitrators, the decision
of a majority of whom snail be final.
“PAR. 27. Failure by the grantee to maintain a first-class street-

railway service in every respect over any portion of its lines or tracks shall
constitute an abandonment of such portion, and the grantee may be required
44
by the city of Manila to remove the lines or tracks so abandoned, or the

said city may cause such lines or tracks to be removed at the grantee’s
expense: Provided, That should any part of these lines be abandoned by
the company without the consent of the municipal authorities such
abandonment may constitute a ground of forfeiture of the entire street
railway franchise herein conferred.
“PAR. 28. At any time after twenty-five years from the date hereof
the city of Manila may purchase, and the grantee shall sell to the city of
Manila all of its lines, tracks, cars, real estate, buildings, plant, rights under
this franchise, and other property used by it in the operation of a street
railway in the city of Manila, at a valuation based upon the net earnings of
the grantee, the valuation to be determined, after hearing evidence, by the
Supreme Court of the Islands, sitting as a board of arbitrators, whose
decision, by a majority of the members thereof, shall be final.
“PART TWO.
“PAR. 1. The grantee shall have the further right and privilege, subject
to the laws and ordinances now or hereafter in force, not inconsistent
herewith, of erecting, extending, and maintaining in and along the streets,
thoroughfares, bridges, and public places of the city of Manila and its
suburbs the necessary poles, wires, cutouts, transformers, and other
appurtenances and overhead structures for the conducting and distributing
of electric currents light, heat, and power, and the furnishing and selling
the same to any person, corporation, or public authority: Provided, That
such electric current for the furnishing of light, heat, and power shall be
furnished under regulations of the Municipal Board to any person within
the corporate limits of the city, residing or doing business within such
distance from the main lines conveying such current as the Municipal Board
shall decide to be reasonable: And provided further; That the Municipal
Board may require the extension of the main lines of current in any direction
within the city limits in its discretion.
“PAR. 2. The Municipal Board, with the approval of the Advisory

Board and the Commission, shall have authority to fix, from time to time,
45
by ordinance, the prices at which such current shall be furnished to private

persons or corporations and to the city and the Insular Government: Provided
always That the prices so fixed shall be reasonable; and in case the Municipal
Board shall disagree with the Advisory Board as to reasonable rates, then
the Commission shall fix them.
“PAR. 3. All poles erected by the grantee shall be of such height and
shall be so located and painted as the municipal authorities shall direct.
The poles shall not be of such crooked or ungainly appearance as to disfigure
the streets.
“PAR. 4. All the wires of the grantee shall have double insulation
and shall be strung at such heights above the ground as the municipal
authorities shall direct. Feeder wires shall be of the insulated type known
as ‘triple braid weather proof.’
“PAR. 5. The system used by the grantee shall be that known as the
‘alternating current system:’ Provided, That where it is desired to furnish
heat, power, or arc lighting, direct currents may be used: And provided
further, That in the carrying of currents, stringing of wires, insulation, and
in all other respects, the grantee shall comply with the rules and regulations
adopted or hereafter to be adopted by the National Board of Underwriters
of the United States for the safeguarding of the conduct and use of electric
currents in cities.
“PAR. 6. The plant and system of the grantee shall be erected,

extended, and maintained according to the best and most approved type of
modern electric light, heat, and power plants and systems, and shall conform
in all respects to the laws and ordinances now, or hereafter in force, not
inconsistent herewith.
“PAR. 7. The grantee shall begin the construction of the system

within the city of Manila within six months from the date of the granting of
the franchise, and shall complete the construction of so much of the system
as shall be coextensive with the lines of the street railway to be constructed
under Part One hereof, and commence the operation of the same within
46
twenty months thereafter, unless prevented by act of God, or the public

enemy, usurped or military power, martial law, riot, civil commotion, or
inevitable cause. The failure of the grantee to comply with the conditions
of this paragraph shall render the franchise in this part described liable to
forfeiture.
“PAR. 8. The city of Manila shall have the privilege, without

compensation, of using the poles of the grantee for the purpose of installing,
maintaining, and operating a fire and police telegraph system.
“PAR. 9. The grantee shall be liable to pay the same taxes upon its
real estate, buildings, plant (not including poles, wires, transformers, and
insulators), machinery, and personal property as other persons are or may
be hereafter required by law to pay. In consideration of Part Two of the
franchise herein granted, to wit, the right to build and maintain in the city
of Manila and its suburbs a plant for the conveying and furnishing of electric
current for light, heat, and power and to charge for the same, the grantee
shall pay to the city of Manila not less than. . . . . . . . per centum of the gross
earnings received from its business under this franchise in the city and its
suburbs. Said percentage shall be due and payable at the time stated in
paragraph nineteen of Part One hereof and after an audit like that provided
in paragraph twenty of Part One hereof, and shall be in lieu of all taxes and
assessments of whatsoever nature and by whatsoever authority upon the
privileges, earnings, income, franchises, and poles, wires, transformers,
and insulators of the grantee, from which taxes and assessments the grantee
is hereby expressly exempted. [No bids will he received for this franchise
which do not provide for the payment of at least one and one-half per centum
of the gross earnings received by the grantee from its business in the city
and its suburbs.]
“PAR.10. The violation or infringement by the grantee of any of the

conditions or terms as above set forth in Part Two hereof shall not subject
or render liable to forfeiture the franchise more particularly described in
Part One.
“PAR. 11. Of the deposit of one hundred and seventy-five thousand

dollars of securities required in paragraph twenty-two of the first franchise,
47
twenty-five thousand dollars shall be held by the Treasurer of the Philippine

Archipelago for the benefit of the city of Manila, to secure compliance
with the second franchise herein granted, on the same terms as those
contained in paragraph twenty-two above.
“PART THREE.
“PAR. 1. The franchises herein granted shall be subject to

amendment, alteration, or repeal by the Congress of the United States, and
the right to use and occupy the street and other public lands herein granted
shall revert to the city of Manila, the provincial government of Rizal, or to
the Insular Government, as the case may be, upon the termination of these
franchises by forfeiture, repeal, or expiration in due course.
“PAR. 2. It shall be a condition of the enjoyment of these franchises

that the person or persons to whom they may be originally granted, under
the provisions of this Act, shall, before April first, nineteen hundred and
three, form a corporation under the laws of the Philippine Islands, hereafter
to be passed, or under the laws of the United States or of any State thereof
and whose charter shall comply with the laws prevailing in these Islands,
to take over these franchises and to perform the terms thereof to be
performed by the grantee thereof^ in which no stock shall be issued or
bonds sold except in exchange for actual cash or for property at a fair
valuation equal to the par value of the stocks or bonds so issued or sold,
and in which no stock or bond dividends shall be declared.
“PAR. 3. The books and accounts of such corporation shall be subject

to official inspection by the municipal authorities and by the Auditor for
the Archipelago or his authorized deputies.
“PAR. 4. It shall not be lawful for the grantee of these franchises, or

any vendee thereof, to use, employ, or contract for the labor of persons
claimed or alleged to be held in involuntary servitude.
“PAR. 5. The corporation to be formed by the persons originally

receiving the grant for the purpose of maintaining and operating these
48
franchises under the laws of the Philippine Islands shall not have power to
alienate the same except by consent of the municipal authorities and the
approval of the Civil Governor.”
SEC. 3. Immediately after the passage of this Act it shall be the duty
of the Municipal Board of Manila to advertise that such franchises as above
described will be granted upon competitive bidding, and that the bids for
compliance with the terms and conditions of the franchises shall be in the
form of an obligation or contract to accept the franchises and comply with
all their terms and conditions. Due advertisement of competitive bidding
for the proposed franchises shall be made in three newspapers printed in
the English language and two printed in the Spanish language in the city of
Manila, and in two newspapers in the city of New York, in one newspaper
in the city of Chicago, and in one newspaper in the city of Washington by
two insertions per week for six weeks after the passage of this Act, and a
single insertion per week for the subsequent six weeks. There shall also a
weekly insertion for the six weeks following the passage of this Act in a
leading street railway journal in the United States. The text of this law,
upon its passage, shall be immediately forwarded to the Bureau of Insular
Affairs of the War Department, together with a copy of the map of the city
showing the projected routes and shall remain on file in that Bureau for the
information of bidders in the United States. The text of the law and a similar
map shall be on file in the office of the Municipal Board of the city of
Manila for the information of bidders in Manila. Bids for the franchises
shall be received at any time after the passage of the Act and before the
fifth of March, nineteen hundred and three, at the office of the Municipal
Board in Manila. On the fifth day of March, nineteen hundred and three,
all bids received shall be opened by the Municipal Board. The competition
in bidding shall be with respect to three terms of the franchises: First, the
duration of the franchises, as contained in the first paragraph thereof; second,
the maximum of fares to be charged on the street-railway, as contained in
paragraphs fifteen and seventeen of the street railway franchise; and, third,
the percentage of gross receipts per annum to be paid for the franchises, as
contained in paragraph nineteen of the street railway franchise and paragraph
nine of the electric light, heat, and power franchise. The Municipal Board,
with the consent of the Advisory Board and the approval of the Philippine
49
Commission, shall determine, in its discretion, the bid most favourable to

the city and the public, and award the franchises, amended to include the
terms of the successful bid on the points in competition, to the person or
persons making such bid. In case the Municipal Board and the Advisory
Board do not agree as to which bid is the most favourable bid to the city
and the public, then the award shall be made by the Municipal Board in
accordance with the decision of the Commission.
SEC. 4. Each bidder shall deposit before his bid shall be considered
in the competition, as an evidence of good faith, the sum of seventy-five
thousand dollars, in money of the United States, in cash or certified check,
with the Treasurer of the Archipelago. The deposits of unsuccessful bidders
shall be returned to them immediately after the successful bidder has been
determined according to law. The deposit of the successful bidder shall be
retained and he shall add thereto one hundred thousand dollars, in money
of the United States to comply with paragraph twenty -two of the street-
railway franchise. The one hundred and seventy-five thousand dollars thus
deposited by the successful bidder may be changed into the form of interest-
paying securities, if approved by the Civil Governor, and shall be returned
to the contractor in accordance with the terms of paragraph twenty-two of
the first franchise and paragraph eleven of the second franchise.
50
ACT NO. 494
AN ACT AUTHORIZING THE COLLECTOR OF CUSTOM FOR THE

PHILIPPINE ARCHIPELAGO TO GRANT A TEMPORARY
LICENSE TO THE VESSEL SAN NICOLAS, NOW IN THE
HARBOR OF MANILA LOADED WITH RICE, TO PROCEED TO
THE PROVINCE OF AMBOS CAMARINES AND THERE TO
DISCHARGE SAID RICE, TAKE ON A CARGO, AND RETURN
TO MANILA

Commission, that:
SECTION 1. The Collector of Customs for the Philippine

Archipelago is hereby authorized to issue a license to the vessel San Nicolas
to proceed to the Province of Ambos Camarines with the cargo of rice she
now has, and to discharge said cargo, take on a cargo from the Province of
Ambos Camarines, and to return to the city of Manila.
SEC. 2. Nothing in this Act shall be construed to relieve the vessel

San Nicolas or her owners from liability to fine or other penalty for violation
of the coastwise trading laws or regulations prior to the passage hereof.
SEC. 3. The public good requiring the speedv enactment of this bill,
ENACTED, November 1, 1902.
51
ACT NO. 511
AN ACT FIXING THE SALARIES AND WAGES OF OFFICERS AND

CREWS OF THE COAST GUARD FLEET

Commission, that:
SECTION 1. The Chief of the Bureau of Coast Guard and

Transportations is hereby authorized to employ the necessary number of
officers and crews for the Coast Guard fleet at the following rates:
CUTTERS
Captain: First five years, one thousand eight hundred dollars per
annum; second five years, two thousand dollars per annum; third five years,
two thousand two hundred dollars per annum; fourth five years, two
thousand four hundred dollars per annum.
First officer: First five years, nine hundred dollars per annum; second
five years, one thousand one hundred dollars per annum. Second officer:
First five years, seven hundred and twenty dollars per annum; second five
years, eight hundred and forty dollars per annum.
52
Chief engineer: First five years, one thousand six hundred dollars
per annum; second five years, one thousand eight hundred dollars per
annum; third five years, two thousand dollars per annum; fourth five years,
two thousand two hundred dollars per annum.
Assistant engineer: First five years, nine hundred dollars per annum;
second five years, one thousand one hundred dollars per annum. Petty
officers and crew: Boatswain, twenty dollar’s per month; quartermaster,
twelve dollars and fifty cents per month; coxswain, eleven dollars per month;
sailor, ten dollars per month; machinist, thirty-five dollars per month; oilers,
twenty dollars per month; firemen, fifteen dollars per month; coal passers,
eleven dollars per month; steward, saloon, twenty dollars per month; first
cook, twenty dollars per month; second cook, twelve dollars and fifty cents
per month; boy, officers’ mess, eight dollars per month.
SEAGOING LAUNCHES.
Master, one thousand two hundred dollars per annum.
Mate, six hundred dollars per annum.
Chief engineer, seven hundred and twenty dollars per annum.
Petty officers and crew: Quartermaster, twelve dollars and fifty cents
per month; sailor, ten dollars per month; first assistant engineer, thirty dollars
per month; second assistant engineer, seventeen dollar and fifty cents per
month; fireman, eleven dollars per month; cook, fifteen dollars per month;
mess boy, eight dollars per month.
TWIN-SCREW LAUNCH “PICKETT” (LIGHT-HOUSE TENDER).
Master, one thousand two hundred dollars per annum.
Mate, six hundred dollars per annum.
Chief engineer, nine hundred dollars per annum.
53
Petty officers and crew: Boatswain, twenty dollars per month;

quartermaster, twelve dollars and fifty cents per month; sailor, ten dollars
per month; machinist, thirty -five dollars per month; second machinist,
thirty dollars per month; fireman, twelve dollars and fifty cents per month;
cook, twenty dollars per month; mess boy, eight dollars per month.
STERN-WHEELER “SENTINEL.”
Master, one thousand and eighty dollars per annum.
Mate, four hundred and eighty dollars per annum.
Chief engineer, nine hundred dollars per annum.
Petty officers and crew: Assistant engineer, thirty-seven dollars and

fifty cents per month; fireman, fifteen dollars per month; quartermaster,
twelve dollars and fifty cents per month; sailor, ten dollars per month; cook,
twelve dollars and fifty cents per month.
SUBSISTENCE ALLOWANCE.
Officers, thirty cents, gold, per day.
Petty officers and crew, ten cents, gold, per day.
CLOTHING ALLOWANCE.
Petty officers and crew, three uniforms and two hats per annum for
each man.
FLEET STAFF.
Pay officer, one thousand eight hundred dollars per annum.
Pay clerk, one thousand two hundred dollars per annum.
54
SEC.2. The public good requiring the speedy enactment of this bill,
SEC.3. This act shall take effect on its passage.
55
ACT NO. 520
AN ACT PERMITTING THE ISSUING OF SPECIAL LICENSES TO

ENGAGE IN THE COASTWISE TRADE OF THE PHILIPPINE
ISLANDS UNTIL JULY FIRST, NINETEEN HUNDRED AND
FOUR, TO VESSELS NOT ENTITLED TO GENERAL
COASTWISE-TRADE LICENSES UNDER THE CUSTOMS
ADMINISTRATIVE ACT, AND AUTHORIZING THE FIXING OF
MAXIMUM RATES FOR TRANSPORTATION OF
MERCHANDISE AND PASSENGERS IN THE COASTWISE
TRADE

Commission, that:
Whereas the President of the United States, upon October twenty-

third, nineteen hundred and two, signed an executive order providing that
“the executive order of July third, eighteen hundred and ninety-nine,
prescribing the conditions upon which officers of the customs in the
Philippine Islands, ceded to the United States by Spain, may issue a
certificate of protection entitling the vessel to which it is issued to the
protection and flag of the United States on the high seas and in all ports,
shall not be deemed to preclude the power and authority of the Philippine
Commission to enact laws extending the right or privilege of inter-island
or coastwise trade in the Philippine Archipelago to foreign vessels during
the period while the laws regulating the coastwise trade of the United States
are inapplicable thereto under the provisions of Act of Congress entitled
‘An Act temporarily to provide revenue for the Philippine Islands and for
other purposes,’ approved March eighth, nineteen hundred and two:”

is hereby authorized to issue a special coastwise license to any vessel
belonging in whole or in part to a citizen of the United States, to a citizen
of the Philippine Islands, or to a citizen or subject of any country with
which the United States is at peace, entitling said vessel to engage in the
56
coastwise trade of the Philippine Islands upon the terms and conditions
hereinafter prescribed.
SEC. 2. The owner, managing owner, charterer, or master of any

vessel for which a special coastwise license is sought shall make application
therefor under oath to the Collector of Customs for the Philippine
Archipelago, setting forth the name and residence of the owner or owners,
the nationality, name, and place of construction of the vessel, her class,
gross and net tonnage, number of decks and masts, her length, breadth, and
depth, and a statement that the vessel is intended for legitimate trade only.
If satisfied of the bona fides of the application, the Collector of

Customs for the Philippine Archipelago shall issue a special coastwise
license for a period not to exceed one year, upon the payment of a license
fee of one dollar per year for each ton of registered tonnage of the vessel,
or at the rate of fifteen cents per registered ton per month for any shorter
period: Provided, That in no case shall a license fee of less than fifteen
cents per ton be collected.
SEC. 3. In case the vessel is owned by an incorporated company, the

application may be made by the president, vice-president, acting president,
or secretary of such company, or by the master of the vessel.
SEC. 4. Upon the death, removal, or resignation of the person in

whose name the license is granted, or of one of the above-mentioned officers
of an incorporated company, or of a master of a vessel, whose name appears
in the license, a new license must be obtained, and the same shall be issued
without charge for the unexpired period of the original license.
SEC. 5. In assessing the license fee above prescribed, the vessels of

the United States, Great Britain, Belgium, Denmark, Austria-Hungary, the
German Empire, Italy, Sweden, Norway, Spain, the Netherlands, Russia,
Finland, Portugal, and Japan, whose registers indicate their gross and net
tonnage under their present law, shall be taken to be of the tonnage so
expressed in their documents, without admeasurement or charge therefor
in the Philippine Islands, but all other vessels shall be subject to the usual
57
admeasurement and fees at the port of Manila before being granted the
license above described.
SEC. 6. Vessels operating under the special coastwise license shall

hoist their national ensign, and shall fly at the mainmast the “Philippine
coastwise emblem,” which shall consist of a rectangular white flag with
one blue and one red star ranged from staff to tip in a horizontal median
line.
SEC. 7. The provisions of section one hundred and thirty-four, one

hundred and thirty-six, one hundred and thirty-seven, one hundred and thirty-
eight, one hundred and forty-eight, one hundred and forty-nine, one hundred
and fifty-two, one hundred and fifty-three, and one hundred and fifty-five
of the Philippine Customs Administrative Act shall apply to all vessels,
their cargoes, masters, officers, and crews operating or being carried under
the special coastwise license hereinbefore authorized.
SEC. 8. Vessels operating under the special coastwise license, arriving

at ports in the Philippine Islands from a port or place outside of the Islands,
shall be subject to all the laws, regulations, orders, provisions, fines,
forfeitures, and other penalties provided for foreign vessels, for vessels
possessing the certificate of protection issued under section one hundred
and seventeen of the Philippine Customs Administrative Act when entering
from a port or place outside of the Philippine Islands, and for other vessels
so entering the Philippine Islands.
SEC. 9. The master of any vessel engaging in the coastwise trade of

the Philippine Islands without being duly licensed in accordance with this
Act shall, on conviction, be fined not exceeding five thousand dollars, or
imprisoned at hard labor not more than ten years, or both, in the discretion
of the court, and the vessel and the cargo may be seized and forfeited.
SEC. 10. In addition to the penalties prescribed by section three

hundred and two of the Philippine Customs Administrative Act, the master
of any vessel operating under a special coastwise license which shall have
any firearms, gunpowder, cartridges, dynamite, or any other class of
58
explosives or munitions of war, concealed on board the vessel, or not duly

manifested, may also, on conviction, be imprisoned at hard labor not more
than ten years, in the discretion of the court; and any officer, member of the
crew, or other person aboard such vessel, who, having guilty knowledge of
the presence on board of such concealed or unmanifested firearms,
gunpowder, cartridges, dynamite, or other explosives or munitions of war,
shall fail to report, or to make due effort to report, the same to the first
authority of the Insular Government with whom communication can be
had, shall, on conviction, be fined not more than two thousand dollars, or
imprisoned at hard labor not more than five years, or both, in the discretion
of the court.
SEC. 11. In addition to the penalties prescribed by section one

hundred and fifty-one of the Philippine Customs Administrative Act, the
master of any vessel operating under a special coastwise license which
shall enter any closed port in the Philippine Islands without the special
permission of the collector of customs at a port of entry shall, on conviction,
be fined not to exceed two thousand dollars, or be imprisoned at hard labor
not more than five years, or both, in the discretion of the court.
SEC. 12. Every vessel for which a special coastwise license is sought
shall first be required to specially register in the office of the Collector of
Customs for the Philippine Archipelago all firearms, side arms, cartridges
or ammunition therefor, lead, and other articles on board or in the possession
of either crew or passengers, which the Collector of Customs for the
Philippine Archipelago may designate for such purpose, in addition to having
the same regularly manifested as required by law.
SEC. 13. The special coastwise license by this Act provided shall
not be issued to any vessel having Chinese persons in its crew who are
excluded by law from entering the Philippine Islands, until the master of
such vessel shall have given bond, conditioned for the payment of five
hundred dollars, in money of the United States, for every such Chinese
member of the crew who shall escape to the shores of the Philippine Islands
from the vessel, and for the payment of the expenses of capture and
deportation hereinafter described. The amount of such bond shall be fixed
59
by the Collector of Customs for the Philippine Archipelago and shall contain
a provision that, in addition to the payment of the penalties above provided
which it secures, it shall also cover the payment of all expenses incident to
the capture and deportation of such Chinese members of the crew escaping
from such vessel into the Philippine Islands. The bond shall be signed and
executed by the master of the vessel and by one or more sufficient sureties,
to be approved by the Collector of Customs for the Philippine Archipelago,
with whom it shall be filed. In addition to the security of the bond the
Collector of Customs shall have authority to seize and hold the vessel until
the penalties above provided and imposed, and the expense of capture and
deportation of such escaped Chinese person, shall have been paid: Provided,
That where such a Chinese member of the crew shall escape to the shores
of the Philippine Islands without the connivance of the master or the officers
of the vessel, and they, or either of them, shall retake and return to the
vessel such Chinaman within five days from the time of his escape, the
penalties herein provided may be reduced or remitted by the Collector of
Customs for the Philippine Archipelago in his discretion.
SEC. 14. Upon being informed of the escape of any such Chinese
member of the crew of a vessel receiving a special coastwise license under
this Act the Collector of Customs for the Philippine Archipelago shall apply
to the proper Constabulary, provincial, or municipal authorities for the
capture and return of the escaped Chinaman, and, if captured, he shall be
deported from the Philippine Islands to the place from which he last sailed
at the expense of the master of the vessel from which he escaped, the expense
thereof to be collected out of the penalty of the bond in addition to the
penalty already imposed.
SEC. 15. A Chinese member of the crew of a vessel receiving a

special coastwise license under this Act escaping from the vessel, as
described in sections thirteen and fourteen, may be apprehended upon a
warrant issued either by a collector of customs, a justice of the peace, a
municipal president, or the judge of a municipal court, upon an affidavit
duly filed with said officer setting forth the fact that the person named in
the warrant is a Chinese member of the crew of a vessel licensed under this
Act, the vessel to be named in the warrant, and who had unlawfully escaped
60
from such vessel; and any officer authorized to serve process in the
Philippine Islands shall be authorized to serve such warrant and make due
return thereof to the officer issuing the warrant.
SEC. 16. The master of any vessel for which a special coastwise
license is sought shall first be required to register in the Office of the
Collector of Customs for the Philippine Archipelago all aliens on board his
vessel, either as master, officers, members of crew, passengers, or otherwise,
who will continue on board while said vessel is engaged in the coastwise
trade, by presenting for file separate alien manifests, in duplicate, containing
the usual data in regard to all such persons.
SEC. 17. Vessels operating under a special coastwise license shall

be permitted to carry coastwise cargoes from one port of entry to another
simultaneously with foreign cargoes, provided that either all of such
coastwise merchandise or all of such foreign merchandise be contained in
separate holds or compartments, which may be securely fastened and sealed
in a manner satisfactory to the customs authorities, and the simultaneous
transportation of foreign and coastwise cargoes shall be subject generally
to such limitations, bonds, and regulations as the Collector of Customs for
the Philippine Archipelago may prescribe.
SEC. 18. No vessel shall receive a special coastwise license under

this Act until the master or owner thereof shall have paid full customs
duties upon all sea stores and supplies upon the vessel, which have not
been purchased in the Philippine Islands.
SEC. 19. No foreign merchandise upon which duties have not been
paid shall be transported to any but a port of entry in the Philippine Islands,
and any violation of the provisions of this section or of those of the two
next preceding sections shall render the vessel, her master, officers, and
crew, or any other guilty person, subject to all the penalties prescribed by
this Act, or otherwise by law, for smuggling and carrying unmanifested
goods, and in case any of the goods so transported in violation of law shall
be firearms, gunpowder, cartridges, dynamite, or any other class of
explosives or munitions of war, the vessel, her master, officers, and crew,
61
and any other guilty person, shall also be subject to all the penalties
prescribed by section ten of this Act and section three hundred and two of
the Philippine Customs Administrative Act.

be permitted to carry passengers from one port to another in the Philippine
Islands.

not be permitted to engage in the lighterage or other exclusively harbor
business in the Philippine Archipelago.
SEC. 22. All special coastwise licenses shall be numbered

consecutively, starting with “F 1 “
SEC. 23. All vessels operating under the special coastwise license
shall pay the regular fees prescribed by Chapter Twenty-two of the
Philippine Customs Administrative Act for vessels having a regular first-
class coastwise license.
SEC. 24. Any vessel possessing a certificate of protection issued

under section one hundred and seventeen of the Philippine Customs
Administrative Act, shall be entitled to the privileges and shall be subject
to all the penalties directly or indirectly imposed in sections nineteen, twenty,
and twenty-one of this Act, and all vessels engaged in the Philippine
coastwise trade on or after the first day of January, nineteen hundred and
three, shall fly the Philippine coasting emblem at the mainmast.
SEC. 25. All vessels engaged in the coastwise trade under this Act
or under the Customs Administrative Act are hereby declared to be common
carriers and subject to the provisions of Act Numbered Ninety-eight, entitled
“An Act to regulate commerce in the Philippine Islands.”
SEC. 26. It shall be unlawful for two or more masters, owners, or

agents of vessels engaged in the coastwise trade under this Act, or under
the Customs Administrative Act, to enter into any agreement between
62
themselves to fix, increase, or maintain rates of transportation for passengers

or merchandise, or to divide the coastwise trade and business of these
Islands, or between any port of the Islands, for the purpose of restraining
and avoiding competition; and it shall be the duty of the Collector of
Customs, after a due hearing, to withdraw and cancel the license to any
vessel to engage in the coastwise trade whose master, owner, or agent shall
have entered into such agreement. An appeal from the decision of the
Collector will lie to the Court of Customs Appeals in cases arising under
this section, as in other cases.
SEC. 27. The Civil Governor is hereby authorized to appoint a

commission of three persons, to membership in which any official of the
Insular Government may be eligible, which commission shall exercise the
authority and discharge the duties hereinafter prescribed and shall be known
as the “Coastwise Rate Commission.” The Coastwise Rate Commission is
authorized to classify vessels, merchandise, and passengers for the purpose
of carriage in the coastwise trade and to fix the maximum rates to be charged
thereunder for the transportation in the several classes of vessels of the
various classes of merchandise and passengers from one point to another
in the Philippine Islands.
SEC. 28. Each member of the Coastwise Rate Commission who

shall not be an official of the Insular Government shall receive for his
services while actually engaged in the work of said Rate Commission a per
diem of ten dollars per day, in money of the United States. The Civil
Governor is authorized to designate from some one of the Bureaus of the
Insular Government a stenographer to act as secretary of the said Rate
Commission, during its sessions, to take the evidence and transcribe the
same, and to keep the minutes of its proceedings.
It shall be the duty of the Collector of Customs of the Philippine

Archipelago to furnish rooms, furniture, and the necessary stationery for
the work of the Rate Commission and its secretary. The Rate Commission
shall meet at the call of the Civil Governor and may be adjourned from
time to time by his order.
63
SEC. 29. It shall be the duty of the owner or master of any vessel
engaged in the coastwise trade to comply with the requirements of the
tariff of maximum rates fixed by the Coastwise Rate Commission as
hereinbefore provided, and in case of failure to provide transportation at
the prescribed rate, the Collector of Customs for the Philippine Archipelago
shall withdraw the license of the vessel to engage in the coastwise trade,
and the offending vessel, if it thereafter engages in the coastwise trade, and
its owner, master, and officers, shall be liable to the same penalties as those
which are imposed upon any vessel, its owner, master, or officers, engaged
in the coastwise trade without a license: Provided, however, That if an
appeal be taken from the decision of the Coastwise Rate Commission and
the tariff fixed by it to the Court of Customs Appeals, as hereinafter provided,
and the Court of Customs Appeals shall modify or change the maximum
rates fixed by the Coastwise Rate Commission, then the maximum rates as
modified by the Court of Customs Appeals shall be observed and obeyed
by all vessels engaged in the coastwise trade subject to the penalties
hereinbefore provided for violation of the rates of the Coastwise Rate
Commission.
SEC. 30. The maximum rates shall be reasonable, and shall not be
fixed as hereinbefore provided, except after a public hearing of all persons
or companies engaged as common carriers in the transportation of freight
or passengers.
SEC. 31. Any person deeming himself aggrieved by the order of the
Coastwise Rate Commission fixing rates for transportation may appeal from
the decision of the Coastwise Rate Commission to the Court of Customs
Appeals, to which, upon notice of appeal, the Coastwise Rate Commission
shall forward a record of the proceedings before it, including a transcript
of all the evidence taken, and of its judgment thereon. The decision of the
Court of Customs Appeals shall be final.
SEC. 32. It shall not be obligatory upon the Civil Governor to appoint
the Coastwise Rate Commission herein provided unless he shall deem the
rates prescribed to be excessive and such regulation to be necessary.
64
SEC. 33. All prosecutions for violations occurring under this Act
shall be instituted in the Court of Customs Appeals in the manner provided
in the Customs Administrative Act, and all appeals from penalties imposed
by the Collector of Customs hereunder shall be taken to the Court of Customs
Appeals as in that Act provided.
SEC. 34. Copies of sections ten, eleven, twelve, thirteen, fourteen,

fifteen, and seventeen of this Act, printed in both English and Spanish in
bold type, shall be conspicuously posted in such places aboard vessels
operating under a special coastwise license and in such manner the Collector
of Customs for the Philippine Archipelago may direct.
SEC. 35. On and after the first day of December, nineteen hundred
and two, the Collector of Customs may, in his discretion, with the approval
of the Civil Governor and whenever the public interest shall require, issue
a regulation providing that no vessel of more than one hundred and fifty
tons of registered tonnage shall be permitted to enter, berth, or moor within
the Pasig River for the purpose of loading or discharging cargo, or for any
other purpose than to make necessary repairs which could not be made in
Manila Bay.
SEC. 36. All existing decrees, laws, regulations, or orders, or parts

thereof, inconsistent with the provisions of this Act, are hereby repealed.
SEC. 37. This Act shall be known and referred to as the “Coastwise
Trade Act.”
65
ACT NO. 554

RAILWAY COMPANY, LIMITED TO CONSTRUCT AND
OPERATE A RAILROAD FROM GUIGUINTO, ON THE
PRESENT LINE OF THE MANILA AND DAGUPAN
RAILROAD, TO CABANATUAN, IN THE PROVINCE OF NUEVA
ECIJA, AN ESTIMATED DISTANCE OF SEVENTY-ONE
KILOMETERS

Commission, that:
SECTION 1. The Manila Railway Company, Limited, an English

corporation, which under a Spanish concession constructed and is now
operating the Manila and Dagupan Railroad, is hereby authorized to
construct from the town of Guiguinto, in the Province of Bulacan, a station
on the line of the Manila and Dagupan Railroad, a railroad in a northeasterly
direction to Cabanatuan, in the Province of Nueva Ecija, an estimated
distance of seventy-one kilometers.
SEC. 2. From Guiguinto to the boundary of Bulacan and Nueva

Ecija, the railway line shall pass through the towns of Quingua and Pulilan,
cross by suitable bridge the River Quingua, follow the left bank of the
same river, pass through the town of Baliuag and the barrio of Sampaloc,
and here bending to the left pass through the towns of San Ildefonso and
San Miguel de Mayumo, crossing with the necessary bridges the rivers
Masim, Gailan and San Miguel. From the boundary line of the Province of
Bulacan and Nueva Ecija the line shall run to the left of the public road to
Gapan, cross the River Chico de San Isidro to the barrio Tambo, and thence
following the left bank of the River Grande de Nueva Ecija pass near the
town of San Isidro and through the town of Santa Rosa to Cabanatuan.
The grantee of the franchise shall be allowed in the route described

to make the variations in location which a detailed study of the ground may
show to be necessary to avoid floods, heavy cutting of bank, lessening a
66
curve, reducing a gradient, or benefitting the railroad; but the line shall
pass within three miles of San Isidro, the capital of the Province of Nueva
Ecija. If circumstances require that the line shall run to the east of San
Isidro, the town shall be put in direct communication with the railroad by
means of a short branch to be constructed along the public highway.
SEC. 3. The maximum grade and minimum curve to be employed in

the construction shall be two per cent and two hundred meters radius
respectively.
SEC. 4. The grantee shall construct and maintain stations at the

towns of Quingua, Pulilan, Baliuag, San Ildefonso, San Miguel de Mayumo,
Gapan, San Isidro, Santa Rosa, and Cabanatuan. At Cabanatuan, the grantee,
in addition to the station house, shall construct a locomotive shed with
necessary turn-table, water service, and crane, in the situation which shall
be most suitable for the purposes of the railroad.
SEC. 5. All material employed in the construction of the line shall

be of good class and quality adaptable to the conditions of the country.
The rails shall be of steel of a weight not less than sixty -five pounds per
yard, giving one hundred and two and fourteen one-hundredths tons per
mile and shall be thirty feet long. Two thousand one hundred and twelve
sleepers, six feet by eight inches by five inches, of native hard wood, shall
be employed per mile of track. In the case of its not being possible to
obtain the number required from the forest of the Archipelago with the
necessary despatch, due to want of proper machinery and insufficient labor,
Australian hard woods, puriog, maire, ironbark, karri, and kauri, used on
the Australian Government railways, shall be employed.
SEC. 6. The railway shall be single line of three feet and six inches
gauge (that is, the distance between the inner surfaces of the rails shall be
three feet and six inches), sidings and loops necessary for the proper working
of the line being provided for passing the trains at each station. The width
of banks and cuttings shall be that necessary to carry the track.
SEC. 7. All materials employed in the construction of buildings shall

be of good class and quality. Roofing shall be of galvanized iron. Bridges
67
shall be constructed of native hard wood or foreign timber, to be replaced

by steel and masonry when the development of traffic shall justify the outlay.
SEC. 8. The grantee shall acquire for the construction of the railroad
a strip of land thirty meters in width, except in such places where greater
width is required for stations, buildings, embankments, cuts and borrow
pits, quarries, and such additional lands as may be required for diversions
of water, roads or highways, drainage of swamp lands, dikes and other
works to protect the tracks from floods and freshets, as well as for yards,
shops, wharves, platforms, storehouses, turn-outs, switches, or for any other
purposes useful and proper to the railroad. In the case when lands necessary
for the proper construction of the line cannot be obtained by free
arrangement with the owners, the grantee shall have the right to expropriate
same in the manner established by law.
SEC. 9 . Before commencing work on any one section or district of

the line the grantee shall file with the Consulting Engineer of the
Commission a map or plan and profile thereof showing the course and
direction, accompanied by an explanatory statement as to the route and
general conditions of said section or district of the proposed railroad. On
approval of said plan and profile two copies shall be drawn by the grantee,
one of which shall remain in the possession of the grantee and the other be
filed in the office of the Consulting Engineer of the Commission.
SEC. 10. At points where the railroad shall cross public highways
the grantee shall construct the necessary bridges and crossings so that the
public communication shall not be interrupted. The grantee shall further
put up the necessary notices to the public to avoid danger from passing
trains, the same to be specified by the Consulting Engineer; and at points
of peculiar danger for crossing, when required by the Consulting Engineer
or by the provincial board of the province in which the crossing is, shall
station a gate or a guard or both at the crossing to prevent accidents.
SEC. 11. The grantee shall establish along the whole length of the
road a telegraph line for the exclusive use of the railroad. The posts of this
line shall also carry the number of wires which the Government may
68
consider necessary to erect for public service. The establishment, protection,

and maintenance of the wires and stations necessary for public service
shall be at the cost of the Government.
SEC. 12. The grantee before opening the road or portions of the
road for conveyance of passengers and freight shall give notice in writing
to the Consulting Engineer of the date when the railroad or portion of the
railroad will be, in the opinion of the company, sufficiently completed for
safe conveyance. Upon receipt of such notification the Consulting Engineer
shall himself or by his assistant forthwith examine all bridges, tunnels, and
other works, locomotives and rolling stock intended to be used thereon,
and if he finds the same to be satisfactory, in accordance with law, and safe
for public travel, shall authorize the opening of all or a portion of the line.
SEC. 13. The grantee shall enjoy the following powers, privileges
and exemptions:
(a) To occupy any part of the public domain, not occupied for other
public purposes, which may be necessary for the purposes of the enjoyment
of this franchise and may be approved by the Consulting Engineer. The
land to be taken under this power shall be acquired by the company in the
following manner: The company shall file a petition describing the land
which it desires to acquire from the public domain, showing that the same
belongs to the public domain, is not in use for any other public purpose,
and is property necessary for the enjoyment of the franchise to construct
and maintain the railroad herein described, and praying that the same may
be conveyed to it for uses and purposes of the enjoyment of said franchise.
The petition shall be accompanied by a plat and survey of the land described
in the petition. The Consulting Engineer, after an examination of the petition
and the plat and the taking of evidence if necessary, shall approve the same,
if he finds the land petitioned for to be necessary and proper for the
enjoyment of the franchise herein granted. The Consulting Engineer shall
then forward the petition, with his approval, to the Chief of the Bureau of
Public Lands, who shall, upon due investigation, determine whether the
land sought is public land, and is not in use for any other public purpose,
and shall certify the same to the Civil Governor, who, being satisfied of the
propriety and legality of granting the petition, shall execute a patent to the
69
railway company for the land described in the petition and plat. The patent
shall be recorded in the office of the Chief of the Bureau of Public Lands
and thereafter delivered to the grantee company. The patent shall operate
to convey the land described therein to the grantee company for the uses of
the franchise herein granted, but shall contain a clause providing for a
reverter of the land to the Insular Government whenever it shall have ceased
to be used for the purposes of the franchise.
(b) To acquire from provincial governments, municipalities,

corporations, or private individuals, by contract or expropriation, land which
may be necessary for the construction, maintenance and operation of the
railroad, but no lands within the boundaries of any province or town shall
be occupied by the grantee if the same is in actual use for provincial or
municipal purposes, nor shall any land within the boundary of any town be
occupied without the consent of the municipal authorities of such town.
No part of a public road shall be occupied by the railroad without the consent
of both the town and the provincial authorities, except such part as may be
necessary in the crossing of the road by the railroad. The character of the
crossing of any road shall be agreed upon by the provincial board of the
province and the agents of the grantee company. In case of a difference the
question shall be referred to the Consulting Engineer, whose decision shall
be final.
(c) To appear, to petition, to indicate, continue or discontinue at any

stage all proceedings in or out of court; to sue and be sued; and to appoint
or separate freely such employees and agents as the business of the
corporation shall require, and to allow them a suitable compensation.
(d) To acquire for the purposes of the railroad by purchase, voluntary

grant, or by any other lawful title, the ownership or possession of lands and
other real and personal property, as well as any estate, right, interest or
easement therein, and to take, hold, lease, exchange, mortgage, pledge, sell
or dispose of the same or any part thereof in conformity with the law.
(e) To construct, alter, substitute, maintain and operate the railway

conceded, make or construct all buildings, stations, shops, planes, tunnels,
70
embankments, aqueducts, bridges, or other structures, wharves, roads, ways,

passages, conduits, drains, piers, arches, cuttings and fences on lands
acquired, or on which the necessary right has been obtained, and to cross
any railway, tramway, river, stream, water course, lake, canal, shore, road,
and highway, where the necessary right has been obtained from those public
or private corporations or individuals whose rights will be affected, also to
direct or alter, as well as temporarily as permanently, the course of any
river, stream, water course or highway, or raise or sink the level thereof, in
order the more conveniently to carry the same across, over, under, or by the
side of the railroad, when the consent of the owners of rights or interests
which may be prejudiced or injured, shall have been obtained through
contract, or the injury compensated for in the case of expropriation
proceedings.
(f) To open quarries, to collect stones from the surface of the land, to
cut timber, to mine in lands for materials, and to build and operate kilns for
lime, gypsum, and brick on lands owned, occupied, leased or under control
for the purposes of the railroad.
(g) To conduct water to the railroad for the use of the same, and to
acquire the necessary land and to make such roads thereon as may be
necessary to give access to the stations from public roads in the vicinity.
(h) To borrow such sums of money and contract such debts from
time to time as may be necessary to construct, complete, maintain, and
operate the railroad or for any other lawful purposes; to issue and dispose
of promissory notes, debentures or other securities for any amount so
borrowed or debt contracted with or without the security of the properties
or property rights of the railroad, and to secure such debts, notes, bonds,
debentures or securities by a mortgage deed, creating mortgages, charges,
and incumbrances upon owned properties and property rights or rights of
any kind, or by deeds constituting liens and charges affecting the rents and
revenues of the railroad in whole or in part. The grantee shall not have
power to mortgage the railroad, construction of which is authorized herein,
to the extent of more than an amount equivalent to fifteen thousand dollars
a kilometre, in money of the United States.
71
(i) No real or personal property of the railroad actually used and

necessary for the purpose of the railroad line shall be taxed by any province
or municipality for twenty years from the granting of this franchise.
(j) In the case of refusal, neglect, or delay in payment of the cost and
expenses of transportation and conduction of freight over the whole length
or any part of the line, the grantee shall have the right to detain the same
until such time as amount due shall be paid. If the payment of rates or
transportation on goods should not be effected within fifteen days, the
company may apply for their sale at public auction to the justice of the
peace for the district wherein the station is situated, who will order the
total or partial sale of said goods in sufficient amount to cover expenses,
costs, transport, and conduction.
(k) To make application before the justice of the peace of the district
wherein the station is situated for the sale at public auction of all articles of
freight or luggage transported by the company which may have remained
at such station for two months or over and not been called for by the owner
or consignee. In the before-mentioned cases or when the owner or consignee
cannot be found or is unknown or shall refuse to receive the goods
transported or pay the cost of transport, application may be made by the
company to the justice of the peace for an order to sell at public auction
within two days those goods which are of a perishable nature, and within
ten days those not subject to deterioration. The proceeds of sale shall go
first to defray the cost and expenses of said sale, and then to the account of
freight and charges of the railroad company on said goods, and the balance,
if there be any, shall be deposited with said judge at the disposition of the
person who may have right to the same.
SEC. 14. The grantee company shall undertake to provide on its

trains the locale which may be necessary for the service of mails, the rate
of transportation, terms, and conditions under which same shall be carried
being arranged and agreed to between the Director of Posts and the company.
In case the Director of Posts and the company shall not agree as to the rate
and terms of transportation thereof, the Chief Executive of the Islands,
after giving the company opportunity to be heard, shall fix the prices, terms,
72
and conditions therefor. Such prices shall not be less for carrying such
mails in the regular passenger trains than the amount which the company
would realize as freight on a like transport of merchandise and a fair
compensation for the post-office car. If the Government of the Islands should
require in addition to the ordinary mail service, the transport of mail or
urgent orders, at other hours or at higher speed than the passenger trains
are run, the transport of troops, ammunition, bullion, or freight, the company
shall provide, day or night, special conveyance for same and be allowed
extra compensation therefor.
SEC. 15. The grantee company shall not put obstacles in the way of
the road conceded being crossed by other lines or railroad authorized by
the Government of the Islands, where full compensation is made for any
damage which may be sustained and the police law of railroads is complied
with.
SEC. 16. The legal domicile of the grantee company shall be in

Manila where there shall also be a duly authorized representative with full
powers to carry out the duties and sustain the rights conferred under the
concession.
SEC. 17. From the time when the whole or part of the railroad shall
be opened to public service the grantee company shall run its regular trains
for the transportation of passengers and freight as near as practicable at
regular hours fixed by public notice and shall furnish sufficient
accommodation for the transportation of passengers and property as are
within a reasonable time previously thereto offered for transportation at
the places of starting.
SEC. 18. The company shall concede to all passengers holding first
class tickets, the free carriage of fifty kilogrammes of personal baggage
and those holding lower-class tickets thirty kilogrammes of personal
baggage. By personal baggage is to be understood ordinary wearing apparel,
bicycles, and such articles as may be required by persons practicing any
profession or trade, it being further understood that such articles shall only
be accepted by the company when contained in such receptacles as will
73
safely contain the same for purposes of transportation and that the grantee
company shall not be liable beyond the extent of one hundred gold dollars
for each fifty kilogrammes of weight of such baggage unless the owner
thereof shall, upon offering the same for transportation, declare the contents
thereof and pay therefor by way of insurance for the additional amount of
responsibility to be assumed by the company in case of loss.
SEC. 19. The locomotive used in the working of the line shall be
furnished with a bell and with a steam whistle and the bell shall be rung or
the whistle sounded at a distance of at least three hundred meters from
every place at which the railroad passes any highway and be kept ringing
or sounding until the engine has crossed such highway.
SEC. 20. It shall be the duty of the grantee company to provide the
locomotives used in the operation of the road with the necessary apparatus
to prevent sparks or live coals setting fire to any properties adjacent to the
line.
SEC. 21. The grantee company shall regulate the speed of trains
running through the streets of towns or on public highways where the line
is not fenced in, or where there are no gates or flagmen at crossings of such
streets or highways to the velocity which the municipal councils of the
respective towns shall decide on. In case the decision seems unreasonable
the company may appeal to the Consulting Engineer, whose decision shall
be final.
SEC. 22. The company shall oblige every employee working on a

passenger train or at a station for passengers, to wear upon his hat or cap a
badge which shall indicate his office, and he shall not without such badge
be entitled to exercise any of the powers of his office or ask for the help of
the guardians of the law if such are necessary.
SEC. 23. It shall be obligatory for the company by means of its

agents or employees to affix checks or tags to every parcel of baggage
delivered to such agents or employees for transportation and a duplicate of
such check or tag shall be delivered to the passenger delivering same. If the
74
grantee company does not comply with this obligation no fare or toll shall
be received from such passenger, and if such passenger has already paid
same it shall be returned on demand.
SEC. 24. The company may refuse to transport any package or parcel
suspected to contain goods of a dangerous nature or whose transport shall
be prohibited by the Government.
SEC. 25. The grantee company shall charge for the transport of
passengers or freight prices fixed by reasonable tariffs. Such tariffs shall
be approved by the Consulting Engineer or by such other officers as may
be provided by law. The legislative authority of the Islands may provide
for the change and regulation of tariffs so as to make them reasonable.
SEC. 26. The tariffs approved by the governmental authority for the
conduction and transport of passengers, baggage, packages, freight, and
live stock shall be posted by the company m prominent places in its stations
before such tariffs shall go into effect, and they snail also be published in
the papers of Manila for the general information of the public.
SEC. 27. The franchise conferred herein to construct, maintain, and

operate a railroad from Guiguinto to Cabanatuan is, subject to the right of
Congress to amend, modify, or repeal the same under the Philippine Act,
made perpetual.
SEC. 28. The tariffs for transport of public and Government freight
and passengers which shall be applied for the working of the line from
Guiguinto to Cabanatuan shall be those approved by the Government of
the Islands for the Manila and Dagupan Railroad. These tariffs shall be
revised by the proper governmental authority when a standard currency
shall be established for these Islands in the place of the Mexican dollars to-
day in circulation or a law fixing the monetary basis in the Islands be enacted.
SEC. 29. Before inaugurating the first district of the line conceded
the grantee company shall submit for the approval of the proper
governmental authority of the Islands the working rules and regulations
75
for the government of its train and station service, for the condition of its
traffic, for the proper care of its tracks, bridges, and other appurtenances
and for the guidance of its employees, and the Government having given
the company opportunity to be heard thereon, shall make in said working
rules and regulations the additions and alterations which shall be considered
necessary. These working rules and regulations, after being approved by
the proper governmental authority, shall have the force of law, but they
shall be subject to modifications at any time at petition of the company,
said modifications being subject, after giving the company opportunity to
be heard, to alteration by the proper authority, and when approved in
presented or modified form snail have the force of law.
SEC. 30. Within the term of fifteen days from the date of the
acceptance of the concession as hereinafter provided, the grantee company
shall deposit in the office of the Insular Treasurer in Manila, a sum, in
money of the United States, equal to three hundred dollars to each kilometer
of the concession; said deposit shall be returned to the grantee company in
proportion and as the work be terminated and for lengths which shall not
be less than ten kilometers. The grantee company shall lose all or part of
said deposit in favor of the Insular Government if more than six months
shall elapse without having begun the railroad, or more than three years
shall elapse before it is terminated. The deposit shall not be forfeited when
the termination of the works shall have teen partially or totally interrupted
by force majeure or by fortuitous causes. In case the grantee company desires
to do so, the deposit herein required may, with the approval of the Civil
Governor, be made in interest bearing bonds, or other securities, at least
equivalent, both in par and actual value, to the money deposits above
required, and the interest due on the bonds or other securities shall, as it
accrues, be paid to the grantee company or its order.
SEC. 31. The Legislature of the Islands after hearing the grantee
company shall have the power to declare the forfeiture of the concession in
the following cases:
(a) If the works are not commenced or the road finished within the
period prescribed in the concession except in cases fortuitous or force
76
majeure; when such cases shall occur the Legislature of the Islands shall
have the power to extend as considered necessary the period fixed for the
execution of the works. At the termination of the extension of time, the
concession shall be forfeited.
(b) If on the opening to public traffic of the total length of line the
grantee company interrupts the public service for a longer period than one
month when such interruption shall not be due to force majeure or to the
carrying out of repairs as considered necessary for the security of the public
by the inspector named by the Government or by the company.
SEC. 32. Against the declaration of forfeiture of the concession made

by the Legislature of the Islands, the grantee company may apply in the
first instance to the courts of the Islands and on appeal to the Supreme
Court of the United States of America. If the grantee company should not
appeal against the declaration of forfeiture within a period of two months
after the same has been communicated, it shall be understood that the above
privilege is renounced. The forfeiture of the concession implies the loss of
the deposit.
SEC. 33. Once that the declaration of forfeiture of the concession is

signed all works which have been completed shall be put up to public auction
and the concession shall be adjudicated to the highest bidder who shall pay
to the original grantee the amount obtained in such auction for said works,
deducting costs and expenses which the same may occasion. The basis of
the auction shall of the estimated value of the technical study for the
execution of the work, the lands bought, works completed, the existing
plant and material for the execution of the works and the working of the
line. The valuation shall be made by two experts, one to be named by the
Government and the other by the grantee company, and a third who shall
be named by common consent in case of disagreement
SEC. 34. Nothing herein contained shall be used to prejudice the

Insular Government or the Government of the United States in the issues
pending between the Manila Railway Company, Limited, and the United
77
States or the Insular Government as to claims for damages or the forfeiture

of the right to present such claims by the Manila Railway Company, Limited.
SEC. 35. The granting of this charter shall be subject in all respects
to the limitations upon corporations and the granting of franchises contained
in the Act of Congress approved July first, nineteen hundred and two, entitled
“An Act temporarily to provide for the administration of affairs of civil
government in the Philippine Islands and for other purposes.”
SEC. 36. This Act shall take effect on its passage, but the grant of
the franchise shall not become operative unless the grantee company shall,
within sixty days after the passage hereof, file with the Civil Governor its
acceptance of the franchise and its agreement to comply with all the terms
of this act.
78
ACT NO. 578


Commission, that:
SECTION 1. Act Numbered Twenty-two providing for the

improvement of the port of Manila and Act Numbered One hundred and
one amendatory thereof, are hereby amended so as to authorize and empower
the engineer in charge of the improvement of the port of Manila to construct
an additional breakwater three thousand feet long to the south of the outer
end of the present west breakwater, as projected, and separated therefrom
by a suitable interval for the safe entry of vessels, said additional breakwater
to be in a general northwest to southeast direction, and in thirty feet depth
of water at mean low water, and to be constructed of riprap stone, of the
general height and cross section shown by map on file in the office of the
engineer in charge of the improvement of the port of Manila, dated October
eighteenth, nineteen hundred and two.
SEC. 2. The engineer in charge of the improvement of the port of

Manila is hereby authorized and empowered to make a contract for the
construction of the aforesaid additional breakwater to an amount not
exceeding one million and twenty-nine thousand dollars, money of the
United States, in addition to the two million dollars for the contracts provided
for in section three of Act Numbered One hundred and one, appropriations
for meeting the new contract to be made from time to time to meet
obligations incurred under said contract on or before the exhaustion of
funds already appropriated by Acts Numbered Twenty-two and One hundred
and one Provided, That the incidental expenses for surveys, advertisements,
administration, superintendence, and inspection for the said additional
breakwater may be paid directly from funds now available or to be hereafter
appropriated.
79
SEC. 3. The contract provided for in the preceding section shall be

made by the engineer in charge of the improvement of the port of Manila,
in form and manner as set forth in section five of Act Numbered
Twenty-two.
80
ACT NO. 583

APPLICANTS FOR THE POSITIONS OF MASTER, MATE AND
PATRON OF SEAGOING VESSELS, AS AMENDED BY ACT
NUMBERED THREE HUNDRED AND SIXTEEN

Commission, that:
SECTION 1. Section three of Act Numbered Seventy-three, entitled

“An Act providing for the examination and licensing of applicants for the
position of master, mate, and patron of seagoing vessels,” as amended by
Act Numbered Three hundred and sixteen, is hereby further amended by
striking out the words “two years” in said Act after the words “period of”
and before the word “from” and inserting in lieu thereof the words “two
years and three months.”
81
ACT NO. 586
AN ACT TO PROVIDE FOR THE APPOINTMENT OF A RAILROAD

ENGINEER AND AN ASSISTANT TO MAKE A REPORT FOR
USE IN THE UNITED STATES UPON FEASIBLE RAILROAD
LINES IN THE PHILIPPINES ISLANDS, AND TO ENCOURAGE
THE INVESTMENT OF CAPITAL

Commission, that:
SECTION 1. The Civil Governor shall appoint, by and with the con-
sent of the Commission, a chief civil engineer and an assistant civil engineer
having experience in locating railroads in tropical countries, whose duties
it shall be to visit the islands of the Philippine Archipelago and to examine
the same with a view of determining upon the practicable and useful routes
for the construction of railroads, make preliminary reconnaissances and
surveys of the same, and make full report of their examinations, surveys,
and conclusions to the Civil Governor, which report shall be published in
the United States for the purpose of encouraging the investment of capital
in railroad construction in said Islands. Such engineer and his assistant
when appointed shall be under the general supervisory control of the
Consulting Engineer to the Commission.
SEC. 2. The chief engineer appointed under this Act shall receive a
compensation at the rate of three hundred dollars per month and the assistant
engineer a compensation at the rate of two hundred dollars per month, in
money of the United States. Each of the said engineers shall receive
transportation and actual traveling expenses not exceeding five dollars per
day, in money of the United States.
SEC. 3. The Civil Governor, whenever in his opinion the work for
which the engineers hereunder to be appointed has been completed, shall
notify them, and thereafter their employment by the Government shall cease.
82
83
ACT NO. 592
AN ACT AUTHORIZING THE SECRETARY OF COMMERCE AND

POLICE TO ESTABLISH HARBOR LINES WHERE HE DEEMS
IT NECESSARY ON THE SHORES OF HARBORS, BAYS, AND
NAVIGABLE LAKES OR RIVERS OF THE PHILIPPINE
ISLANDS, AND TO APPOINT A COMMISSION FOR THE
PURPOSE

Commission, that:
SECTION 1. Where it is made manifest to the Secretary of Commerce

and Police that the establishment of harbor lines is essential to the
preservation and protection of harbors, bays, and navigable lakes or rivers,
he is hereby authorized to cause such lines to be established, beyond which
no piers, wharves, bulkheads, or other works shall be extended or deposits
made, except under such regulations as may be prescribed from time to
time by him Provided, That whenever the Secretary of Commerce and Police
grants to any person or persons permission to extend piers, wharves,
bulkheads, or other works, or to make deposits in any harbor, bay, or
navigable lake or river of the Philippine Islands, beyond any harbor lines
established by authority of the Insular Government, he shall cause to be
ascertained the amount of tide water to be displaced by any such structure
or any such deposits, and he shall, if he deem it necessary, require the
parties to whom the permission is given to make compensation for such
displacement either by excavating in some part of the harbor, including the
tide-water channels between high and low water marks, to such an extent
as to create a basin for as much tide water as may be displaced by such
structure or by such deposits, or in any other mode that may be satisfactory
to him.
SEC. 2. In the establishment of harbor lines for any harbor, bay, or

navigable lake or river of the Philippine Islands under this Act, the Secretary
of Commerce and Police is authorized to appoint a commission to
recommend to him the proper harbor lines. Said commission is authorized
84
to employ, for a reasonable sum to be approved by the Secretary of

Commerce and Police, such surveyors as may be needed to run the lines,
the compensation to be paid out of the Insular Treasury upon proper
appropriation. The Consulting Engineer to the Commission shall be ex
officio a member of such commission, and the chief engineer in charge of
the improvement of any port in the Islands shall be ex officio a member of
any port in the Island shall be ex officio a member of such commission
when the harbor lines are to be run in such port. The other member of the
commission shall be an officer of the Insular Government designated by
the Secretary of Commerce and Police. It shall be the duty of the commission
to supervise the necessary survey of the harbor lines, to agree upon the
proper lines to be adopted, and to recommend the same to the Secretary of
Commerce and Police for his approval.
SEC. 3. The commission shall Also adopt regulations with respect

to the construction of piers, wharves, bulkheads, and other works and with
respect to deposits which may be made, which shall be submitted to the
Secretary of Commerce and Police for his modification or approval, and
when approved by him the regulations shall govern the construction of
such piers, wharves, bulkheads, and other works, and the manner and amount
of deposits.
85
ACT NO. 640

CEBU

Commission, that:
SECTION 1. The sum of three hundred and fifty thousand dollars, in

money of the United States, is hereby appropriated out of any funds in the
Insular Treasury not otherwise appropriated to be expended in the
improvement of the harbor of Cebu, in accordance with the general plans
now on file in the office of the Consulting Engineer to the Commission,
and subject to such modifications, approved by resolution of the
Commission, as he may deem necessary.
SEC. 2. This appropriation shall be applied to dredging, where

necessary, in the harbor of Cebu, for the construction of wharves and docks
along such part of the south water front of the city of Cebu, as may be
designated by the Consulting Engineer to the Commission, and for the
reclaiming of such lands as may be required for the use of the public.
All such land or lands, together with such adjoining land or lands as
may be the property of the Insular Government are hereby reserved for
public use, and are to be held subject to such laws as the Philippine
Commission may hereafter enact.
SEC. 3. The work herein provided for shall, so far as practicable, be

done and the necessary materials purchased, by contract or contracts, with
private individuals or corporations.
SEC. 4. The Consulting Engineer to the Commission shall advertise

and contract for doing the work prescribed by this Act, either as a whole or
in parts as he may deem most advantageous to the public interest. Notice of
the letting of contracts shall be advertised thirty days in at least two
newspapers, one or more of which shall be printed in the English language,
86
and one in the Spanish language, of general circulation in the Philippine

Islands. The Consulting Engineer to the Commission is authorized to reject
any or all bids and to waive defects, and if in his opinion the bids are
excessive, he may with the approval of the Secretary of Commerce and
Police purchase material and hire labor and supervise the authorized work.
Paragraphs (b) to (s), inclusive, of section five of Act Numbered

Twenty-two shall control the letting of contracts in so far as they are
applicable under the Government of the Philippine Islands.
SEC. 5. The Consulting Engineer to the Commission shall prepare

plans, specifications and contracts, and advertise for proposals, for the work
herein provided for, within not more than sixty days from the date of the
passage of this Act.
enactment of laws,” passed September twenty sixth, nineteen hundred.
87
ACT NO. 641

ILOILO

Commission, that:
SECTION 1. The sum of one hundred and fifty thousand dollars, in

money of the United States, is hereby appropriated out of any funds in the
Insular Treasury not otherwise appropriated, to be expended in the
improvement of the harbor of Iloilo, in accordance with the general plans
now on file in the office of the Consulting Engineer to the Commission,
and subject to such modifications, approved by resolution of the
Commission, as he may deem necessary.
SEC. 2. This appropriation shall be applied to the dredging of a

channel in the Iloilo River having a depth of not less than fifteen feet at
mean low water, to the construction of suitable wharves and docks along
the right bank of the river, to the construction of breakwaters to protect the
harbor, and to the reclaiming of such land as may be required for the use of
the public.
All such land or lands, together with adjoining land or lands as may
be the property of the Insular Government, are hereby reserved for public
use, and are to be held subject to such laws as the Philippine Commission
may hereafter enact.
SEC. 3. The work herein provided for shall, so far as practicable, be

done and the necessary materials purchased by contract or contracts with
private individuals or corporations.
SEC. 4. The Consulting Engineer to the Commission shall advertise

and contract for doing wie work prescribed by this Act, either as a whole or
in parts as he may deem most advantageous to the public interest. Notice of
the letting of contracts shall be advertised thirty days in at least two
88
newspapers, one or more of which shall be printed in the English language,

and one in the Spanish language, of general circulation in the Philippine
Islands. The Consulting Engineer to the Commission is authorized to reject
any or all bids and to waive defects, and if in his opinion the bids are
excessive, he may with the approval of the Secretary of Commerce and
Police purchase material and hire labor and supervise the authorized work.
Paragraphs (5) to («), inclusive, of section five of Act Numbered

Twenty-two shall control the letting of contracts in so far as they are
applicable under the Government or the Philippine Islands.
SEC. 5. The Consulting Engineer to the Commission shall prepare

plans, specifications and contracts, and advertise for proposals, for the work
herein provided for, within not more than ninety days from the date of the
passage of this Act.
Enacted, February 16, 1903.
89
ACT NO. 667
AN ACT PRESCRIBING THE METHOD OF APPLYING TO

GOVERNMENTS OF MUNICIPALITIES, EXCEPT THE CITY OF
MANILA, AND OF PROVINCES FOR FRANCHISES TO
CONSTRUCT AND OPERATE STREET RAILWAY, ELECTRIC
LIGHT AND POWER AND TELEPHONE LINES, THE
CONDITIONS UPON WHICH THE SAME MAY BE GRANTED,
CERTAIN POWERS OF THE GRANTEES OF SAID FRANCHISES
AND OF GRANTEES OF SIMILAR FRANCHISES UNDER
SPECIAL ACT OF THE COMMISSION, AND FOR OTHER
PURPOSES

Commission, that:
SECTION 1. Whenever any person or corporation authorized to do

such business in the Philippine Islands shall desire a franchise to construct
and maintain an electric street railway, a telephone plant and line, or an
electric light or power plant and line, he shall file a formal application with
the council of the municipality in which or through which he desires to
construct and maintain his line, stating the general route of his proposed
line, whether on public streets, or roads, or on private property, the
approximate length of the line, the time within which he will begin its
construction, the time within which he will complete it, the character of
the materials which he expects to use, and the rates per passenger on the
electric street railway line, and per kilo of freight, if he intends to carry
freight thereon, the rate per month for the use of telephones, and the rate
per month for electric light, by lamp of special standard candlepower and
by amount of electricity consumed where a meter is used; it shall also state
the rate per centum of the gross receipts which he is willing to pay into the
provincial treasury for the franchise.
SEC. 2. The municipal council is authorized to accept the proposition

of the petitioner upon certain fixed conditions, as follows, to wit:
90
First. That the franchise shall not exceed thirty-five years in duration
and shall not be exclusive.
Second. That not less than one-half of one per centum of the gross
earnings shall be paid into the provincial treasury.
Third. That the rates to be charged shall always be subject to

regulation by Act of the Philippine Commission or the legislative body of
the Islands.
Fourth. That failure to construct within the time limited shall be

ground for forfeiture at the option of the municipalities and provinces
through which the lines run, with the approval of the Civil Governor.
Sixth. That in electric light or power franchises there shall always be

a term requiring the placing of poles, the insulation of wires, and their
stringing on the poles, in such a manner as to afford every reasonable
precaution against injury to the public or danger of fire, and to cause no
unnecessary injury or inconvenience to private owners. The grantee of the
franchise, in the maintenance and operation of the line, shall be constantly
subject to reasonable regulations for this purpose by the municipal council
and the provincial board.
Seventh. That no franchise shall become operative until the same

shall have been approved, first by the municipal council, secondly by the
provincial board, and finally by the Civil Governor.
Eighth. That failure to build and maintain any part of the lines granted,
without the consent of the municipal council and the provincial board, shall,
if approved by the Civil Governor, constitute a ground for forfeiture, at the
option of the municipality.
Ninth. That no franchise shall be granted until after the applicant

shall have deposited, in cash or in negotiable bonds of the United States or
other securities to be approved by the Civil Governor, in the Insular Treasury,
a sum not less than ten per cent of five thousand dollars in case of telephone
91
or electric light or power lines, and not less than ten per cent of fifteen
thousand dollars in case of electric street railways, as an earnest of the
good faith of the application. Within six months after the franchise shall be
granted the ninety per cent of the sums above stated shall be deposited, and
the whole deposit thus made shall be retained in the Insular Treasury as
security for the completion of the work to be done by the applicant within
the time specified in the franchise. The amount of the deposit, either as an
earnest of the good faith of the application or as security for the completion
of the work, may be increased by the municipal council, the provincial
board, or the Civil Governor over and above the sums in this section
mentioned. In case the ninety per cent of the whole deposit is not made
within six months after the franchise is granted, the ten per cent already
deposited shall be forfeited to the province or provinces in which the road
was to be constructed. In case, after the deposit of the ninety per cent of the
sum or sums above mentioned, the work to be done under the franchise is
not begun within the time specified or is not completed within the time
specified in the franchise, the whole deposit may be forfeited, at the option
of the municipality, provincial board, and the Civil Governor, to the province
as liquidated damages for the breach of the contract involved in the
acceptance of the franchise: Provided, however, That provision may be
made in the franchise by which, after work shall be begun, the money or
funds deposited may be delivered to the grantee of the franchise as the
work progresses, monthly or quarterly, in the proportion which the work
done bears to the work to be done.
Tenth. That no franchise shall be operative for any purpose until the
same shall be accepted in writing by the grantee thereof and the acceptance
filed in the office of the Secretary of Commerce and Police. But this
provision shall not be used as a defense by the grantee where he has begun
to exercise the privileges conferred by the franchise and has incurred liability
by forfeiture or otherwise to the municipality or province.
SEC. 3. In addition to the conditions above required as part of every

granting of a franchise, the municipality or the provincial board may
stipulate for such additional conditions, in favor of the public, as may seem
to it wise.
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SEC. 4. In cases where, in the opinion of the Civil Governor, such a

course would result in benefit to the public, he may require that the letting
of a franchise in any municipality or province shall be put up for public
bid, after due advertisement to be prescribed by him; but in cases where, in
his judgment, there is likely to be but one bidder, and no benefit would
accrue to the public by requiring the expense and delay of advertising, he
is authorized to dispense with the same upon petition from the municipality
and provincial board.
SEC. 5. Every franchise granted hereunder shall contain a provision

that it is granted subject to the power of Congress of Alter, modify, or
repeal the same in accordance with the Act of Congress entitled “An Act
temporarily to provide for the administration of the affairs of civil
government in the Philippine Islands, and for other purposes,” approved
July first, nineteen hundred and two.
SEC. 6. There shall be no power on the part of the municipal council

or the provincial board in the granting of franchises to contract for the
exemption from taxation of the property of the grantee of the franchise;
such exemption can only be granted by especial Act of the Commission.
SEC. 7. The books of the person or corporation maintaining and

operating a line of street railway, telephone, or electric light or power plant
under this law, shall always be open to the inspection of the provincial
treasurer or a deputy designated by him for the purpose, and it shall be the
duty of the grantee of the franchise operating under the same, to submit to
the provincial treasurer quarterly reports showing the gross receipts and
the net receipts for the quarter past and the general condition of the business.
The percentage of gross receipts, which by the terms of the franchise are to
be paid by the grantee thereof, shall be paid in quarterly installments, and
shall be paid to the provincial treasurer for deposit in the provincial treasury.
One-half thereof shall be retained for provincial purposes, and the other
half shall be distributed to the municipalities in which the line of railway,
telephone line, or electric light or power line is constructed; and where the
line runs through more than one municipality, the one-half of the receipts
shall be distributed between the two or more municipalities in proportion
to the mileage of the line in each.
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SEC. 8. The quarterly reports of the grantee of the franchise, required

in the preceding section, shall be in duplicate, and the provincial treasurer
shall forward one of them to the Insular Auditor, who shall keep the same
on file.
SEC 9. Franchises may be granted for the operation of an electric

street railway, line, electric light or power line, or electric telephone line,
in two or more provinces; but in such cases the grant shall be made not
only by the municipalities through which the line runs, but also by the
action of the provincial boards of the provinces in which the purposed
lines are to be, and in such cases the distribution of the percentage of gross
receipts for the franchise shall be between the provinces in proportion to
the mileage herein.
SEC 10. The owner of an electric street railway, electric telephone

line, or an electric light or power line constructed under this law, or by
authority of a special Act of the Commission, shall have the power to issue
a mortgage upon the franchise, plant, equipment, and property owned and
operated in connection with the franchise which shall constitute a first lien
on the entire property, movable and immovable, then in possession of or
subsequently acquired by the owner of the franchise and use by him in
operation under the franchise. Such mortgage shall not prevent the sale of
movables or personal property of the owner when the same shall have ceased
to be useful for the maintenance and operation of the line free from the
lien, but the lien shall attach to all property purchased and substituted in
the proper equipment of the line. In order that the mortgage shall constitute
a prior lien as against purchases of immovables, the mortgage having been
duly executed in accordance with law shall be filed with the registrar or
registrars of land in the province or provinces in which the line is: Provided,
That the mortgage may be duly filed as herein directed in the Spanish or
English language as it may have been executed in either language, but
unless the original is accompanied by a reasonably correct translation, it
shall be the duty of the registrar to procure the making of such a translation
and to charge and collect a reasonable amount from the person filing the
mortgage to pay for such a translation at the time of filing the original
instrument, and to file the translation at the time of filing the original
94
instrument, and to file the translation with the original, the language of the
latter in case of doubt to control. When the mortgage is foreclosed and the
property sold thereunder in accordance with its terms, as a whole, the sale
shall include the franchise, which may pass by assignment to the assignee
and be enjoyed by him, if he is otherwise competent to do such business in
the Philippine Islands, in accordance with its terms. The mortgage may be
issued to secure a number of negotiable bonds, the owners of which shall
be represented by one or more trustees, who shall be the grantee or grantees
of the mortgage.
SEC. 11. The franchise, when granted, shall be spread upon the
minutes of the municipal council, upon the minutes of the provincial board,
and a copy of the same, certified by the provincial secretary, shall be
forwarded to the Secretary of Commerce and Police, by him to be filed in
the records of the Executive Bureau.
SEC. 12. Neither the provincial board nor the council of any
municipality shall have power to confer the right to use water power derived
from any of the streams in such province or municipality in connection
with the franchise, the granting of which is herein provided for. Water-
power rights are hereby declared to be grantable only by and in accordance
with Acts of the Commission.
SEC. 13. The grantee of a franchise for an electric street railway,

electric light or power or telephone line, granted hereunder, or under any
special Act of the Commission, shall have the power of condemning private
property reasonably needed for the construction of its line, to be exercised
by a special proceeding begun in the proper Court of First Instance, with
such auxiliary proceedings as may be necessary in the Court of Land
Registration according to law; but such power of eminent domain shall
only be exercised after approval by the Civil Governor, to be given before
the judicial proceedings are begun.
SEC. 14. Nothing herein contained, except the language of sections

ten and thirteen, shall have application to electric street railways, electric
95
light or power or telephone lines, or to the grantees or franchises for the

same, in the city of Manila.
SEC. 15. Nothing herein contained shall prevent the Commission

from granting a special franchise to erect and maintain an electric street
railway, or electric light or power or telephone line when, in the opinion of
the Commission, the franchise applied for shall involve the construction of
a line so long and important as to justify the exercise of insular authority in
granting the franchise without requiring action by municipal and provincial
governments to give it legality and force.
Enacted, March 6, 1903.
96
ACT NO. 674
AN ACT APPROPRIATING ONE MILLION DOLLARS IN MONEY OF

THE UNITED STATES FOR IMPROVEMENT OF THE PORT OF
MANILA

Commission, that:
SECTION 1. The sum of one million dollars in money of the United

States is hereby appropriated out of any funds in the Insular Treasury
not otherwise appropriated, to be made available and expended by the
Civil Governor through the Chief Engineer of the United States proper,
Division of the Philippines, for continuing the improvements of the harbor
of Manila, and other public works as provided in Act Numbered Twenty-
two, as amended.

97
ACT NO. 703

RAILWAY COMPANY, LIMITED, TO CONSTRUCT, MAINTAIN,
AND OPERATE A RAILROAD FROM A POINT ON THE
PRESENT MANILA AND DAGUPAN RAILROAD ONE AND
FIVE-HUNDRED-THOUSANDTHS KILOMETERS FROM
WHAT IS KNOWN AT THE PRESENT TIME AS THE
TERMINUS OF SAID RAILROAD IN THE CITY OF MANILA,
TO ANTIPOLO, IN THE PROVINCE OF RIZAL, AN ESTIMATED
DISTANCE OF THIRTY-TWO-KILOMETERS, AND TO
CONSTRUCT, MAINTAIN, AND OPERATE A SPUR OR
BRANCH OF SAID RAILROAD FROM ITS CROSSING OF THE
RIVER SAN JUAN TO A POINT ON THE RIVER PASIG
OPPOSITE THE MUNICIPALITY OF SAN PEDRO MACATI, IN
THE PROVINCE OF RIZAL, AN ESTIMATED DISTANCE OF
THREE KILOMETERS

Commission, that:
SECTION 1. The Manila Railway Company, Limited, an English

corporation, which under a Spanish concession constructed, and is now
operating the Manila and Dagupan Railroad, is hereby authorized to
construct from a point on the present Manila and Dagupan Railroad one
and five-hundred-thousandths kilometers from what is known at the present
time as the terminus of said railroad in the city of Manila, a railroad in an
easterly direction, to Antipolo, in the Province of Rizal, an estimated distance
of thirty-two kilometers, and to construct a spur or branch of said railroad
from its crossing of the River San Juan to a point on the River Pasig opposite
the municipality of San Pedro Macati, in the Province of Rizal, an estimated
assistance of three kilometers.
SEC. 2. The Manila terminus of the railroad, the construction of which

is authorized in the preceding section, shall be the present central station
of the Manila and Dagupan Railroad at Tutuban, the junction with the
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existing line of said railroad being at a point one and five-hundred-

thousandths kilometers from what is at present known as the terminus of
the said Manila and Dagupan Railroad in the city of Manila. From this
point the railway line shall run easterly, passing north of the district of
Sampaloc, through the district of Pandacan, passing near the present race
course, commonly called the Santa Mesa Race Track ; crossing by suitable
bridge the River San Juan, passing between the municipalities of San Felipe
Neri and San Juan del Monte, following a northeasterly course by tangents
and curves bending easterly and southeasterly to the barrio of San Isidro ;
crossing by suitable bridge the River Mariquina to the municipality of
Mariquina; running thence southeastly to the municipality of Cainta ;
bending thence easterly, crossing by suitable bridges the Rivers Cutcut and
Cayticlin to the Municipality of Taytay; and running thence northeasterly,
by tangents and curves, to Antipolo.
The spur or branch of said road shall begin at a point near the eastern
end of its crossing of the River San Juan, bending in a southeasterly direction
be the River Pasig run thence along and up said river to a point on the same
opposite the municipality of San Pedro Macati.
The grantee of the franchise shall be allowed in the route described

to make the variations in location which a detailed study of the ground may
show to be necessary to avoid floods or heavy cutting of bank, and to allow
for lessening of curvature, reduction of gradient, or the benefiting of the
railroad. If, after completed survey and detailed study of the route of said
railway hereinbefore described, it shall appear to the grantee company more
advantageous, the railway line may pass, continuing from the terminus of
the spur or branch of said railroad hereinbefore authorized to be constructed,
at a point on the River Pasig opposite the municipality of San Pedro Macati,
easterly along and up the River Pasig, crossing by necessary bridges the
River Manquina at a point above the municipality of Pasig to Cainta, and
continue thence to Antipolo as hereinbefore described. In the event of the
acceptance of the last-described route the grantee company shall construct
a spur or branch of said railroad connecting the municipalities of Cainta
and Maricjuina, along the route hereinbefore described for said line between
said points: Provided, however, That until such time as the route from Taytav
99
to Antipolo can be properly surveyed and staked, the municipality of Taytay

is denominated as the provisional terminus of said railroad.
SEC. 3. The maximum grade and minimum curve to be employed in

the construction shall be two per cent and two hundred meters radius,
respectively. The grade on carves shall be so compensated that the maximum
grade on curves of minimum radius shall not exceed one per cent
SEC. 4. The grantee shall construct and maintain stations in the district
of Sampaloc, in the division of the district of Pandacan commonly known
as Santa Mesa, and in the municipalities of San Felipe Neri, San Juan del
Monte, Mariquina, Cainta, Taytay, and Antipolo, and shall also construct
and maintain a freight depot on the River Pasig at the terminus of the spur
or branch hereinbefore authorized to be constructed. At Antipoio, and at
Taytay for such period as the same is provisional terminus of said railroad,
the grantee, in addition to station houses shall construct locomotive sheds
with necessary turn-tables, water service, and cranes, in the situation which
shall be most suitable for railroad purposes.
SEC. 5. All material employed in the construction of the line shall be

of good class and quality adaptable to the conditions of the country. The
rails shall be of steel of a weight not less than sixty-five pounds per yard,
and shall be thirty feet long. Two thousand one hundred and twelve crossties,
six feet by eight inches by five inches, of native hard wood, shall be
employed per mile of track. In the case of its not being possible to obtain
the number required from the forests of the Archipelago with the necessary
despatch, due to want of proper machinery and insufficient labor, Australian
hard woods, puriog, maire, ironbark, karri, and kauri, such as used on the
Australian government railways, shall be employed.
SEC. 6. The railway shall be a single line of three feet and six inches
gauge (that is, the distance between the inner surfaces of the rails shall be
three feet and six inches), sidings and loops necessary for the proper working
of the line being provided for passing the trains at each station. The width
of banks and cuttings shall be that necessary to carry the track.
100
SEC. 7. All materials employed in the construction of buildings shall

be of good class and quality. Roofing shall be of galvanized iron. Bridges
shall be constructed of native hard wood or foreign timber, to be replaced
by steel and masonry when the development of traffic shall justify the outlay.
SEC. 8. The grantee shall acquire for the construction of the railroad
a strip of land thirty meters in width, except in such places where greater
width is required for stations, buildings, embankments, cuts and borrow
pits, quarries, and such additional lands as may be required for diversions
of water, roads or highways, drainage of swamp lands, dikes and other
works to protect the tracks from floods and freshets, as well as for yards,
shops, wharves, platforms, storehouses, turn-outs, switches, or for any other
purposes necessary and proper to the railroad. In the case when lands
necessary for the proper construction of the line can not be obtained by
free arrangement with the owners, the grantee shall have the right to
expropriate the same in the manner established by law.
SEC. 9. Before commencing work on any one section or district of

the line the grantee shall fife with the Consulting Engineer to the
Commission a map or plan and profile thereof showing the course and
direction, accompanied by an explanatory statement as to the route and
general conditions of said section or district of the proposed railroad. On
approval of said plan and profile two copies shall be drawn by the grantee,
one of which shall remain in the possession of the grantee and the other be
filed in the office of the Consulting Engineer to the Commission.
SEC. 10. At points where the railroad shall cross public highways
the grantee shall construct the necessary bridges and crossings so that the
public communication shall not be interrupted unnecessarily. The grantee
shall further put up the necessary notices to the public to avoid danger
from passing trains, the same to be specified by the Consulting Engineer;
and at points of peculiar danger for crossing, when required by the
Consulting Engineer or by the provincial board of the province in which
the crossing is, shall station a gate or a guard or both at the crossing to
prevent accidents.
101
SEC. 11. The grantee shall establish along the whole length of the
road a telegraph line for the exclusive use of the railroad. The posts of this
line shall also carry the number of wires which the Government may
consider necessarily to erect for public service. The establishment,
protection, and maintenance of the wires and stations necessary for public
service shall be at the cost of the Government
SEC. 12. The grantee before opening the road or portions of the road
for conveyance of passengers and freight shall give notice in writing to the
Consulting Engineer of the date when the railroad, or portion of the railroad
will be, in the opinion of the company, sufficiently completed for safe
conveyance. Upon receipt of such notification the Consulting Engineer
shall himself or by his assistant forthwith examine all bridges, tunnels, and
other works, locomotives and rolling stock intended to be used thereon,
and if he finds the same to be satisfactory, in accordance with law, and safe
for public travel, shall authorize the opening of all or a portion of the line.
SEC. 13. The grantee shall enjoy the following powers, privileges,
and exemptions:
(a) To occupy any part of the public domain not occupied for other
land to be taken under this power shall be acquired by the company in the
following manner: The company shall file a petition describing the land
which it desires to acquire from the public domain, showing that the same
belongs to the public domain, is not in use for any other public purpose,
and maintain the railroad herein described, and praying that the same may
be conveyed to it for uses and purposes of the enjoyment of said franchise.
and the plat and the taking of evidence if necessary, shall approve the same,
if he finds the land petitioned for to be necessary and proper for the
102
land sought is public land, and is not in use for any other public purpose,
propriety and legality of granting the petition, shall execute a patent to the
railway company for the land described in the petition and plat. The patent
shall be recorded in the office of the Chief of the Bureau of Public Lands
and thereafter delivered to the grantee company. The patent shall operate
to convey the land described therein to the grantee company for the uses of
the franchise herein granted, but shall contain a clause providing for a
reverter of the land to the Insular Government whenever it shall have ceased
to be used for the purposes of the franchise.
(b) To acquire from provincial governments, municipalities,

corporations, or private individuals, by contract or expropriation, land which
may be necessary for the construction, maintenance and operation of the
railroad, but no lands within the boundaries of any province or municipality
shall be occupied by the grantee if the same is in actual use for provincial
or municipal purposes, nor shall any land within the boundary of any
municipality be occupied without the consent of the municipal authorities
of such municipality. No part of a public rood shall be occupied by the
railroad without the consent of both the municipal and the provincial
authorities,, except such part as may be necessary in the crossing of the
road by the railroad. The character of the crossing of any road shall be
agreed upon by the provincial board of the province and the agents of the
grantee company. In case of a difference the question shall be referred to
the Consulting Engineer, whose decision shall be final.
(c) To appear, to petition, to indicate, continue or discontinue at any

stage all proceedings in or out of court; to sue and be sued; and to appoint
or separate freely such employees and agents as the business of the
corporation shall require, and to allow them a suitable compensation.
(d) To acquire for railroad purposes by purchase, voluntary grant, or

by any other lawful title, the ownership or possession of lands and other
real and personal property, as well as any estate, right, interest or easement
therein, and to take, hold, lease, exchange, mortgage, pledge, sell or dispose
of the same or any part thereof in conformity with the law.
103
(e) To construct, alter, substitute, maintain, and operate the railway

conceded, make or construct all buildings, stations, shops, planes, tunnels,
embankments, aqueducts, bridges, or other structures, wharves, roads, ways,
passages, conduits, drains, piers, arches, cuttings, and fences on lands
acquired, or on which the necessary right has been obtained, and to cross
any railway, tramway, river, stream, water course, lake, canal, shore, road,
and highway, where the necessary right has been obtained from those public
or private corporations or individuals whose rights will be affected, also to
direct or alter, as well temporarily as permanently, the course of any river,
stream, water course or highway, or raise or sink the level thereof, in order
the more conveniently to carry the same across, over, under, or by the side
of the railroad, when approved by the Consulting Engineer to the
Commission and when the consent of the owners of rights or interests which
may be prejudiced or injured shall have been obtained through contract, or
the injury compensated for in the case of expropriation proceedings.
(f) To open quarries, to collect stone from the surface of the land, to
cut timber, to mine in lands for materials, and to build and operate kilns for
lime, gypsum, and brick for railroad purposes on lands owned, occupied,
leased or under control of the grantee company.
(g) To conduct water to the railroad for the use of the same, and to
acquire the necessary land and to make such roads thereon as may be
necessary to give access to the stations from public roads in the vicinity.
(h) To borrow such sums of money and contract such debts from
time to time as may be necessary to construct, complete, maintain, and
operate the railroad or for any other lawful purposes; to issue and dispose
of promissory notes, debentures or other securities for any amount so
borrowed or debt contracted with or without the security of the properties
or property rights of the railroad, and to secure such debts, notes, bonds,
debentures, or securities by a mortgage deed, creating mortgages, charges,
and incumbrances upon owned properties and property rights or rights of
any kind, or by deeds constituting liens and charges affecting the rents and
revenues of the railroad in whole or in part. The grantee shall not have
power to mortgage the railroad, construction of which is authorized herein,
104
to the extent of more than an amount equivalent to fifteen thousand dollars

a kilometer in money of the United States.
(i) No real or personal property of the railroad actually used and

necessary for railroad purposes shall be taxed by any province or
municipality for twenty years from the granting of this franchise.
(j) In the case of refusal, neglect, or delay in payment of the cost and
expenses of transportation and conduction or freight over the whole length
or any part of the line, the grantee shall have the right to detain the same
until such time as the amount due shall be paid. The amount due shall
include all proper charges for storage of goods left in the care of the grantee
company for over forty-eight hours after reaching their destination.
(k) To make application before the justice of the peace of the district
wherein the station is situated for the sale at public auction of all articles of
freight or luggage transported by the company which may have remained
at such station for two months or over and not been called for by the owner
or consignee. In the before-mentioned cases or when the owner or consignee
can not be found or is unknown or shall refuse to receive the goods
transported or pay the cost of transport, application may be made by the
company to the justice of the peace for an order to sell at public auction
after general advertisement for two days those goods which are of a
perishable nature, and within thirty days those not subject to deterioration.
The proceeds of sale shall go first to defray the cost and expenses of said
sale, and then to the account of freight and charges of the railroad company
on said goods, and the balance, if there be any, shall be deposited with said
judge at the disposition of the person who may have right to the same. The
grantee company shall have the right to refuse to transport goods of a
perishable nature unless the freight charges are prepaid or guaranteed.
SEC. 14. The grantee company shall undertake to provide on its trains
the locale which may be necessary for the service of mails, the rate of
transportation, terms, and conditions under which same shall be carried
being arranged and agreed to between the Director of Posts and the other
company. In case the Director of Posts and the company shall not agree as
105
to the rate and terms of transportation thereof, the Chief Executive of the
Islands, after giving the company opportunity to be heard, shall fix the
prices, terms, and conditions therefor. Such prices shall not be less for
carrying such mails in the regular passenger trains than the amount which
the company would realize as freight on a like transport of merchandise
and a fair compensation for the postoffice car. If the Government of the
Islands should require in addition to the ordinary mail service, the transport
of mail or urgent oixlers, at other hours or at higher speed than the passenger
trains are run, the transport of troops, ammunition, bullion, or freight, the
company shall provide, day or night, special conveyance for same and be
allowed extra compensation therefor.
SEC. 15. The grantee company shall not put obstacles in the way of
the road conceded being crossed by other lines of railroad or highways
authorized by the Government of the Islands, where full compensation is
made for any damage which may be sustained and the police law of railroads
is complied with.
SEC. 16. The legal domicile of the grantee company shall be in Manila
where there shall also be a duly authorized representative with full powers
to carry out the duties and sustain the rights conferred under the concession.
SEC. 17. From the time when the whole or part of the railroad shall
be opened to public service the grantee company shall run its regular trains
for the transportation of passengers and freight as near as practicable at
regular hours fixed by public notice and shall furnish sufficient
accommodation for the transportation of passengers and property as are
within a reasonable time previously thereto offered for transportation at
the places of starting.
SEC. 18. The company shall concede to all passengers holding first-
class tickets, the free carriage of fifty kilograms of personal baggage and
those holding lower-class tickets thirty kilograms of personal baggage. By
personal baggage is to be understood ordinary wearing apparel, bicycles,
and such articles as may be required by persons practicing any profession
or trade, it being further understood that such articles shall only be accepted
106
by the company when contained in such receptacles as will safely contain

the same for purposes of transportation and that the grantee company shall
not be liable beyond the extent of one hundred dollars. United States
currency, for each fifty kilograms of weight of such baggage unless the
owner thereof shall, upon offering the same for transportation, declare the
contents thereof and pay therefor by way of insurance for the additional
amount of responsibility to be assumed by the company in case of loss.
SEC. 19. Every locomotive used in the working of the line shall be
furnished with a bell and with a steam whistle and the bell shall be rung or
the whistle sounded at a distance of at least three hundred meters from
every place at which the railroad passes any highway and be kept ringing
or sounding until the engine has crossed such highway. Brakes and such
other safety appliances for the security of life and property shall be installed
by the grantee company on all trains and locomotives, at road crossings
and at other places of danger, as may from time to time be designated and
approved by the Government.
SEC. 20. It shall be the duty of the grantee company to provide the
locomotives used in the operation of the road with the necessary apparatus
to prevent sparks or live coals setting fire to any property adjacent to the
line.
SEC. 21. The grantee company shall regulate the speed of trains
running through the streets of towns or on public highways where the line
is not fenced in, or where there are no gates or flagmen at crossing of such
streets or highways to the velocity which the municipal council of the
respective municipalities shall decide on. In case the decision seems
unreasonable the-company may appeal to the Consulting Engineer, whose
decision shall be final.
SEC. 22. The company shall oblige every employee working on a

passenger train or at a station for passengers, to wear upon his hat or cap a
badge which shall indicate his office, and he shall not without such badge
be entitled to exercise any of the powers of his office or ask for the help of
the guardians of the law if such are necessary.
107
SEC. 23. It shall be obligatory for the company, by means of its agents
or employees to affix checks or tags to every parcel of baggage delivered
to such agents or employees for transportation, and a duplicate of such
checks or tag shall be delivered to the passenger delivering same. If the
grantee company does not comply with this obligation no fare or toll shall
be received from such passenger, and if such passenger has already paid
same it shall be returned on demand.
SEC. 24. The company may refuse to transport any package or parcel
SEC. 25. The grantee company shall charge for the transport of
passengers or freight prices fixed by reasonable tariffs. Such tariffs shall
be approved by the Consulting Engineer or by such other officers as may
be provided by law. The legislative authority of the Islands may provide
for the change and regulation of tariffs so as to make them reasonable.
SEC. 26. The tariff, approved by the governmental authority for the
conduction and transport of passengers, baggage, packages, freight, and
live stock shall be posted by the company in prominent places in its stations
before such tariffs shall go into effect and any change in said tariffs shall
also be published in the papers of Manila for the general information of the
public.
SEC. 27. The franchise conferred herein to construct, maintain, and

operate a railroad from Manila to Antipolo is, subject to the right of Congress
to amend, modify, or repeal the same under the Philippine Act, made
perpetual.
SEC. 28. The tariffs for transport of public and Government freight
and passengers which shall be applied for the working of the line from
Manila to Antipolo shall be those approved by the Government of the Islands
for the Manila and Dagupan Railroad. These tariffs shall be revised by the
proper governmental authority when a standard currency shall be established
for these Islands in the place of the Mexican dollar to-day in circulation or
a law fixing the monetary basis in the Islands be enacted.
108
SEC. 29. Before inaugurating the first district of the line conceded
the grantee company shall submit for the approval of the proper
governmental authority of the Islands the working rules and regulations
for the government of its train and station service, for the condition of its
traffic, for the proper care of its tracks, bridges, and other appurtenances
and for the guidance of its employees, and the Government having given
the company opportunity to be heard thereon, shall make in said working
rules and regulations the additions and alterations which shall be considered
necessary. These working rules and regulations, after being approved by
the proper governmental authority, shall have the force of law, but they
shall be subject to modification at any time at petition of the company, or
by direction of the Government, said modifications being subject, after
giving the company opportunity to be heard, to alteration by the proper
authority, and when approved in presented or modified form shall have the
force of law.
SEC. 30. Within the term of fifteen days from the date of the
acceptance of the concession as hereinafter provided, the grantee company
shall deposit in the office of the Insular Treasurer in Manila, a sum, in
money of the United States, equal to three hundred dollars for each kilometer
of the concession ; said deposit shall be returned to the grantee company in
proportion and as the work be terminated and for lengths which shall not
be less than ten kilometers. The grantee company shall lose all or part of
said deposit in favor of the Insular Government if more than six months
shall elapse without having begun the railroad, or more than three years
shall elapse before it is terminated. The deposit shall not be forfeited when
the termination of the works shall have been partially or totally interrupted
by force majeure or by fortuitous causes. In case the grantee company desires
to do so, the deposit herein required may, with the approval of the Civil
Governor, be made in interest bearing bonds, or other securities, at least
equivalent, both in par and actual value, to the money deposits above
required, and the interest due on the bonds or other securities shall, as it
accrues, be paid to the grantee company or its order.
SEC. 31. The Legislature of the Islands after hearing the grantee
company shall have the power to declare the forfeiture of the concession in
the following cases:
109
(a) If the works are not commenced or the road finished within the
period prescribed in the concession except in cases fortuitous or force
majeure ; when such cases shall occur the Legislature of the Islands shall
have the power to extend as considered necessary the period fixed for the
execution of the works. At the termination of the extension of time the
concession shall be forfeited.
(b) If on the opening to public traffic of the total length of line the
grantee company interrupts the public service for a longer period than one
month when such interruption shall not be due to force majeure or to the
carrying out of repairs as considered necessary for the security of the public
by the inspector named by the Government or by the company.
SEC. 32. Against the declaration of forfeiture of the concession made

by the Legislature of the Islands, the grantee company may apply in the
first instance to the courts of the Islands and on appeal to the Supreme
Court of the United States of America. If the grantee company should not
appeal against the declarations of forfeiture within a period of two months
after the same has been communicated, it shall e understood that the above
privilege is renounced. The forfeiture of the concession implies the loss of
the deposit.
SEC. 33. Once that the declaration of forfeiture of the concession is

signed all works which shall have been completed shall be put up to public
auction and the concession shall be adjudicated .to the highest bidder, who
shall pay to the original grantee the amount obtained in such auction for
said works, deducting costs and expenses which the same may occasion.
The basis of the auction shall be the estimated value of the technical study
for the work executed, the lands bought, works completed, the existing
plant and material for the execution of the works and the working of the
line. The valuation shall be made by two experts, one to be named by the
Government and the other by the grantee company, and a third who shall
be named by common consent in case of disagreement. This Act shall be
subject to all the requirement and limitations of Act Numbered Ninety-
eight and the amendments thereto heretofore or hereafter made. A failure
to comply with the provisions of this Act or the orders of the proper
110
authorities shall be punishable as provided for the violation of Act Numbered

Ninety-eight, in any court of competent jurisdiction.
SEC. 34. Nothing herein contained shall be used to prejudice the

Insular Government or the Government of the United States in the issues
pending between the Manila Railway Company, Limited, and the United
States or the Insular Government as to claims for damages or the forfeiture
of the right to present such claims by the Manila Railway Company, Limited.
“An Act temporarily to provide for the administration of affairs of civil
government in the Philippine Islands, and for other purposes.”
SEC. 36. The Manila Railway Company, Limited, shall pay into the
Treasury of the Insular Government, as compensation for the granting of
this franchise, one and one-half per cent upon the gross income received
by it from the passenger and freight traffic upon said branch railway from
Manila to Antipolo. Where receipts either from freight traffic or passenger
traffic shall include transportation over part of the main line and the branch
herein authorized, the receipts for traffic on the branch line shall be
determined in proportion to the mileage. Said percentage of gross receipts
shall be due and payable by the Manila Railway Company, Limited, monthly,
and shall be in lieu of all taxes upon the privileges, earnings, income, and
franchises of said railway company, from other tax upon and assessment
upon which, said railway company is hereby expressly exempted for twenty
years from the passage of this Act.
SEC. 37. The Manila Railway Company, Limited, shall keep a record
of all its receipts for the carriage or freight and passengers over the line
herein authorized, which shall be subject to the inspection of the authorities
of the Insular Government, who shall audit and approve the accounts of the
company at the end of each month before the payment of the percentage
tax. The accounts when audited and approved as herein provided shall be
111
conclusive evidence of the liability of the company under the provisions of

section thirty-six.
SEC. 39. This act shall take effect on its passage, but the grant of the
franchise shall not become operative unless the grantee company shall,
within sixty days after the passage hereof, file with the Civil Governor its
acceptance of the franchise and its agreement to comply with the terms of
this Act.
112
ACT NO. 704
AN ACT AMENDING ACT NUMBERED FIVE HUNDRED AND FIFTY-

FOUR, CONFERRING A FRANCHISE UPON THE MANILA
RAILWAY COMPANY, LIMITED, TO CONSTRUCT A BRANCH
RAILROAD FROM GUIGUINTO TO CABANATUAN, BY
REQUIRING THE COMPANY TO PAY ONE AND ONE-HALF
PERCENTUM OF ITS GROSS EARNINGS TO THE INSULAR
GOVERNMENT

Commission, that:
SECTION 1. Act Numbered Five hundred and fifty-four, entitled

“An Act conferring a franchise upon the Manila Railway Company, limited,
to construct and operate a railroad from Guiguinto, on the present line of
the Manila and Dagupan Railroad, to Cabanatuan, in the Province of Nueva
Ecija, an estimated distance of seventy-one kilometers,” is hereby amended
by adding thereto the following sections:
“Sec. 37. The Manila Railway Company shall pay into the Treasury
of the Insular Government as compensation for the granting of this franchise
one and one-half per cent upon its gross income received by it from the
passenger and freight traffic upon said branch railway from Guiguinto to
Cabanatuan. Where receipts either from freight traffic or passenger traffic
shall include transportation over part of the main line and the branch herein
authorized, the receipts for traffic on the branch line shall be determined in
proportion to the mileage. Said percentage of gross receipts shall be due
and payable by the Manila Railway Company monthly, and shall be in lieu
of all taxes upon the privileges, earnings, income, and franchises of said
railroad company, from other tax and assessment upon which said railway
company is hereby expressly exempted for twenty years from the passage
of this Act.
“Sec. 38. The Manila Railway Company, Limited, shall keep a record
of all of its receipts for the carriage of freight and passengers over the line
113

tax. The amounts when audited and approved as herein provided shall be
section thirty-seven.”
SEC. 2. The Manila Railway Company, Limited, within sixty days

after the passage hereof, shall file with the Civil Governor its acceptance
of this amendment of the franchise and its agreement to comply herewith.
114
ACT NO. 705
AN ACT AMENDING ACT NUMBERED FIVE HUNDRED AND FIFTY-

FIVE, CONFERRING A FRANCHISE UPON THE MANILA
RAILWAY COMPANY, LIMITED, TO CONSTRUCT TWO
BRANCH ROADS, ONE CONNECTING MABALACAT WITH
THE MAIN LINE, AND ONE CONNECTING BAYAMBANG THE
MAIN LINE, BY REQUIRING THE COMPANY TO PAY ONE AND
ONE-HALF PER CENTUM OF ITS GROSS EARNINGS T O THE
INSULAR GOVERNMENT

Commission, that:
SECTION 1. Act Numbered Five hundred and fifty-five, entitled

“Act to authorize the construction by the Manila Railway Company, Limited,
owning and operating the Manila and Dagupan Railway, of two branches,
one connecting Mabalacat with the main line, and one connecting
Bayambang with the main line,” is hereby amended by adding there the
following sections:
“SEC. 5. The Manila Railway Company shall pay into the Treasury
of the Insular Government as compensation for the granting of this franchise
one and one-half per centum upon its gross income received by it from the
passenger and freight traffic upon said branch railways, one connecting
Mabalacat with the main line, and one connecting Bayambang with the
main line. Where receipts either from freight traffic or passenger traffic
shall include transportation over part of the main line and 7 either or both
of the branches herein authorized, the receipts for traffic and the branch
lines shall be determined in proportion to mileage. Said percentage of gross
receipts shall be due and payable by the Manila Railway Company, Limited,
monthly, and shall be in lieu of all taxes upon the privileges, earnings,
income, and franchises of said railroad company, other tax and assessments
upon which said railway company is hereby expressly exempted for twenty
years from the passage of this Act.
115
“SEC. 6. The Manila Railway Company, Limited, shall keep a record

of all its receipts for the carriage of freight and passengers over the lines
tax. The amounts when audited and approved as herein provided shall be
section five.”
SEC. 2. The Manila Railway Company, Limited, within sixty days

after the passage hereof, shall file with the Civil Governor its acceptance
of this amendment of the franchise and its agreement to comply herewith.
116
ACT NO. 722
AN ACT AMENDING ACT NUMBERED SIX HUNDRED AND FORTY,

ENTITLED “AN ACT AUTHORIZING THE IMPROVEMENT OF
THE PORT OF CEBU”

Commission, that:
SECTION 1. Act Numbered Six hundred and forty, entitled “An Act
authorizing the improvement of the port of Cebu,” is hereby amended by
striking out in section five thereof the phrase “within not more than sixty
days from the date of the passage of this Act”, and inserting in lieu thereof
the words “on or before the first day of May, nineteen hundred and three,”
so that said section five shall read as follows:
“SEC. 5. The Consulting Engineer to the Commission shall prepare

plans, specifications, and contracts, and advertise for proposals, for the
work herein provided for, on or before the first day of May, nineteen hundred
and three.”
the passage of me same is hereby expedited in accordance with section two
117
ACT NO. 746
AN ACT PROVIDING THAT THE SECRETARY OF COMMERCE

AND POLICE MAY, IN HIS DISCRETION, DIRECT AN EXTENSION
OF TIME WITHIN WHICH THE CONSULTING ENGINEER TO THE
COMMISSION SHALL ADVERTISE FOR BIDS FOR THE
IMPROVEMENT OF THE PORT OF ILOILO

Commission, that:
SECTION. 1. The Secretary of Commerce and Police is hereby

authorized and empowered, in his discretion, to direct a postponement of
the date upon which the Consulting Engineer to the Commission shall
advertise for bids for the improvement of the port of Iloilo, anything in Act
Numbered Six hundred and forty-one, entitled “An Act authorizing the
improvement of the port of Iloilo, “ to the contrary notwithstanding; and in
the event of such extension by the Secretary of Commerce and Police, he
shall also direct the date upon which the advertisement shall be published.

ENACTED, May 14, 1903.
118
ACT NO. 774
AN ACT AMENDING ACT NUMBERED EIGHTY-TWO, ENTITLED

“A GENERAL ACT FOR THE ORGANIZATION OF MUNICIPAL
GOVERNMENT IN THE PHILIPPINE ISLANDS” BY IMPOSING
A TAX UPON SLEDGES AND MAKING IT THE DUTY OF
PROVINCIAL BOARD TO DESIGNATE IMPROVED ROADS
IN THE SEVERAL PROVINCES UPON WHICH IT SHALL BE
UNLAWFUL TO USE CERTAIN CARTS AND SLEDGES

Commission, that:
SECTION 1. Paragraph (j) of section forty-three of Act Numbered

Eighty-two, entitled “A general Act for the organization of municipal
governments in the Philippine Islands,” shall be amended to read as follows:
“(j) An annual tax, hereby imposed for the purpose of protecting the
roads of the municipality and the province from destruction, of three dollars
Mexican upon each draft cart the wheels of which have tires less than two
and one half inches in width, and an annual tax of two dollars, Mexican,
upon each cart the wheels of which are rigid with the axle to which they are
attached, and an annual tax of five dollars Mexican upon each cart having
both such tires and axles, and an annual tax of three dollars, Mexican,
upon each sledge with runners less than two and one-half inches in width,
all to be collected by the provincial treasurer in the usual manner. One-half
the proceeds of such taxes shall be paid into the municipal treasury and
one-half shall be paid into the provincial treasury.
“The use of carts with wheels having tires less than two and one-half
inches in width and with wheels rigid with the axles and all sledges upon
improved or well-constructed public roads in the Philippine Islands, is
hereby prohibited after December first, nineteen hundred and three.
“It shall be the duty of the provincial board of each province in which
well-constructed or improved public roads exist to designate by public
119
notice, which shall be posted at the door of the municipal building or

presidencia of every municipality or township in the province, the roads on
which it shall be unlawful to use narrow-wheeled carts, carts the axles of
which are rigid with the wheels, or sledges. Any person violating the
provisions of this paragraph by using a cart sledge of the prohibited type
after December first, nineteen hundred and three, upon a road which has
been designated as an improved or well-constructed public road by the
provincial board of any province shall be subject to a fine not to exceed
one hundred dollars Mexican for each offense.’
120
ACT NO. 778
AN ACT AUTHORIZING THE COLLECTOR OF CUSTOMS FOR THE

PHILIPPINE ARCHIPELAGO TO COMMISSION MASTERS AND
WATCH OFFICERS OF COAST GUARD VESSELS TO MAKE
SEARCHES AND SEIZURES

Commission, that:

is hereby authorized to commission, in writing, the masters and watch
officers of vessels belonging to the Bureau of Coast Guard and
Transportation to make searches and seizures under the provisions of
Chapter Twenty-five of Act Numbered Three hundred and fifty-five of the
Philippine Commission, in the same manner as duly designated customs
officers.
SEC. 2. The Collector of Customs for the Philippine Archipelago

shall also prescribe the necessary regulations governing said masters and
watch officers in performance of the duties thereby assigned to them.
Enacted, May 29, 1903.
121
ACT No. 780
AN ACT PROVIDING FOR THE EXAMINATION AND LICENSING

OF APPLICANTS FOR THE POSITIONS OF MASTER, MATE,
PATRON,AND ENGINEER OF SEAGOING VESSELS IN THE
PHILIPPINE COASTWISE TRADE, AND PRESCRIBING THE
VESSELS

Commission, that:
SECTION 1. A board is hereby created, to consist of the Collector of

Customs for the Philippine Archipelago, the Superintendent of the Nautical
School, the Inspector of Boilers, the Inspector of Hulls, and one master of
a merchant vessel, who shall be appointed by the Insular Collector of
Customs, to examine and certify for licenses all applicants for the position
of master, mate, patron, and engineer of seagoing vessels in the Philippine
coastwise trade. The Insular Collector of Customs shall be president of the
Board ex officio, and any three members thereof shall constitute a quorum
for the transaction of business. This board shall be known and referred to
as the “Board on Philippine Marine Examinations.”
SEC. 2. Whenever any person applies for license as master, mate,

patron, or engineer of a Philippine coastwise vessel it shall be the duty of
the Board on Philippine Marine Examinations to make thorough inquiry as
to his character and carefully to examine the applicant, the evidence he
presents in support of his application, and such other evidence as it may
deem proper or desirable, and if satisfied that his capacity, experience,
habits of life, and character are such as to warrant the belief that he can be
safely intrusted with the duties and responsibilities of the position for which
he makes application, it shall so certify to the Insular Collector of Customs,
who shall issue a license authorizing such applicant to act as master, mate,
patron, or engineer, as the case may be.
SEC. 3. The board shall meet at the office of the Insular Collector of
Customs at Manila during the last week of the months of April, August,
122
and December of each year and examine all applicants for any such positions
who have filed in writing their applications for examination at least one
month before the meeting of the Board. Every applicant shall be examined
physically by a competent physician selected by the Board, and, unless
found to be physically sound, shall not be further examined and shall not
be licensed. The Board may, in its discretion, require the production of
ship’s journals and log books for inspection in the examination of applicants
for positions of master or mate.
Every applicant for license as master must produce satisfactory

evidence that he has served as certified first mate for at least three years in
a seagoing sailing vessel or at least five years in a seagoing steamer, and
must not be less than twenty-eight years of age.
Every applicant for license as first mate shall be required to produce

to the Board properly certified documents showing that he has served in
the capacity of second and third mate for at least two years in a seagoing
sailing vessel or at least three years in a seagoing steamer, and must not be
less than twenty-five years of age.
Every applicant for license as second mate must produce to the Board
a certificate as third mate and properly certified documents showing that
he has served in the capacity of third mate in a seagoing sailing vessel for
at least one year or in a seagoing steamer for at least two years, and must
not be less than twenty-three years of age.
Every applicant for the position of third mate shall be required to

present to the Board documents properly certified showing that he has served
as seaman, apprentice, or quartermaster continuously for at least nine months
in a seagoing sailing vessel or at least eighteen months in a seagoing steamer
; Provided, That, if the applicant produces a certificate of graduation from
the Nautical School of Manila, it shall be sufficient evidence of his technical
knowledge, but not of his physical condition, experience, habits or character.
The applicant shall not be less than nineteen years of age.
Every applicant for license as patron shall not be less than twenty-
three years of age. He shall be examined on the following subjects: Reading
123
and writing; management of the sails and rigging of coasting and pilot
boats; manner of loading according to cargo; manner of careening a boat
so as to rid it of water, as well as manner of stranding same; knowledge of
the coasts where he is to navigate, their shoals, banks, and reefs; of ocean
currents and tides; of prevailing, winds; which winds to sail with and which
to sail away from; how to square the compass; to take bearings by the lead,
and other practical methods for determining the nearness of the coast and
what course is to be taken; methods of entering and leaving the ports of the
provinces; precautions to be taken in time of storms at sea as well as in
port; method of repairing damage sustained by vessels; familiarity with all
existing coast light-houses on their routes; knowledge of all maritime laws
relating to the sanitation and police regulations of ports; knowledge of
regulations governing the use of lights and signals for the prevention of
collisions, and, in short, of all subjects that may have a bearing on his
calling.
The Board in examining applicants for the position of engineer shall

diligently inquire into the knowledge of said applicants of the construction
and operation of steam machinery and especially of engines and boilers,
also as to the applicant’s practical experience, character, and habits, and
the Board may, in its discretion, make such practical tests and examinations
of applicants as it may deem necessary to demonstrate their fitness or
unfitness for the positions which they seek. The Board may also take the
statements, written or oral, of any persons cognizant of the qualifications
of such applicants.
SEC. 4. The holders of licenses as master, mate, or engineer under

the laws of the United States shall be eligible to appointment to like positions
under this Act. The examination of every applicant shall be in writing and
shall include a thorough examination as to his knowledge of seamanship
and navigation in its various branches, his capacity and skill in lading and
unlading cargo, in handling and storing freight under all conditions, and
his knowledge generally of the duties of the position which he seeks.
SEC. 5. To obtain a license, every applicant shall be required to

show a proficiency in the subjects upon which he is examined and shall
124
answer correctly at least seventy-five per cent of the questions propounded

to him on such examination. Examinations of all applicants, as well as the
records of the Board, shall be kept in the office of the Insular Collector of
Customs at Manila.
SEC. 6. Every license authorized to be issued as above set forth

shall be operative and in force until July first, nineteen hundred and four,
but the Insular Collector of Customs may at any time suspend or revoke
any license upon satisfactory proof of misconduct, intemperate habits,
incapacity, or inattention to duty on the part of the licensee.
SEC. 7. On and after August first, nineteen hundred and three, every
applicant for license as master, mate, patron, or engineer of a Philippine
coastwise vessel shall be a citizen of the United States or of the Philippine
Islands : Provided, however, That any citizen or subject of any other country
who may be acting as master, mate, patron, or engineer of any Philippine
coastwise vessel at the time of the passage of this Act may, upon application
to the Insular Collector of Customs, be granted a certificate of service which
shall authorize him to continue to act in the Philippine coastwise trade as
such master, mate, patron, or engineer, as the case may be, upon his making
proper showing to the Board hereinbefore created, either by the presentation
of a properly authenticated license from some other recognized maritime
country satisfactory to the Board, or by such other evidence of competency
and good character as the Board in its discretion may deem sufficient: And
provided further, That he shall have seen at least two years’ service in the
coastwise trade of these Islands under the American flag and that he shall
take the following oath:
“I hereby solemnly swear that I acknowledge the sovereignty and

authority of the United States in the Philippine Islands and of the
Government constituted by the United States herein, and that while in the
Islands I will support and maintain the same, and that I will not at any time
hereafter while in these Islands or while serving under this license at any
place aid, abet, or incite resistance to the authority of the United States or
of the government established by the United States in these Islands, and
that I take this oath voluntarily, without any mental reservation whatsoever.
So help me God.”
125
Philippine coastwise vessel which is in charge of a master who is not a
citizen of the United States or of the Philippine Islands but is authorized to
perform the duties of master in accordance with the preceding section of
this Act, shall be required to have on board, as either a mate or other watch
officer, a citizen of the United States or of the Philippine Islands duly
authorized by said Board to act as such. Any Philippine coastwise vessel
which fails to comply with the terms of this section shall be required to pay
an additional tonnage tax at the rate of ten cents, United States currency,
per net ton per month during the continuance of said failure.
Philippine coastwise vessel which has on board a mate or other watch officer
who is not a citizen of the United States or of the Philippine Islands, although
authorized to perform the duties of such in accordance with section seven
of this Act, shall likewise be required to have on board, as either master or
some watch officer, a citizen of the United States or of the Philippine Islands
duly qualified by the Board to act in such capacity: Provided, however,
That, in the case of Philippine coastwise vessels on which neither the master
nor mate are citizens of the United States or the Philippine Islands, although
authorized to perform the duties of such positions in accordance with section
seven of this Act, the other watch officer or watch officers of the vessel
shall be citizens of the United States or citizens of the Philippine Islands
duly authorized by the Board to act in such capacity.
Any Philippine coastwise vessel which fails to comply with the terms
of this section shall be required to pay an additional tonnage tax at the rate
of ten cents, United States currency, per net ton per month during the
continuance of said failure.
SEC. 10. Philippine coastwise vessels which have on board a chief

engineer who is not a citizen of the United States or of the Philippine Islands,
although authorized to perform the duties of such in accordance with section
seven of this Act, shall have on board as a first assistant engineer a citizen
of the Philippine Islands duly authorized by the Board to act as such ; and
every Philippine coastwise vessel which has on board a first assistant
126
engineer who is not a citizen of the United States or a citizen of the Philippine
Islands shall have, as chief engineer, either a citizen of the United States or
a citizen of the Philippine Islands duly authorized by the Board to act as
such : Provided, however, That, in the case of Philippine coastwise vessels
on which neither the chief engineer nor the first assistant engineer is a
citizen of the United States or a citizen of the Philippine Islands, there shall
be employed and carried at least two other assistant engineers who shall be
citizens of the United States or citizens of the Philippine Islands, duly
authorized by the Board to act in such capacity.
Any Philippine coastwise vessels which fails to comply with the terms
of this section shall be required to pay an additional tonnage tax at the rate
of ten cents, United States currency, per net ton per month during the
continuance of said failure.
SEC. 11. No Philippine coastwise vessel which shall fail to comply

with any of the provisions of the three preceding sections of this Act shall
be permitted to sail under the United States flag or to engage in the Philippine
coastwise trade, except upon payment of the additional tonnage taxes
hereinbefore prescribed.
SEC. 12. All seagoing steam vessels engaged in Philippine coastwise

trade shall employ and carry a licensed chief engineer, and all such steam
vessels making night runs will employ and carry at least one licensed chief
engineer and one licensed assistant engineer: Provided, however, That the
Insular Collector of Customs may direct that more than two licensed
engineers shall be employed and carried on any steamer when, in his opinion,
the same are required.
SEC. 13. All steam vessels engaged exclusively in bay, river, and
harbor work shall only be required to carry a chief engineer possessing a
second-class license.
SEC. 14. Whenever the term “sailing vessel” is used in this Act, it
shall be understood and held to apply to sailing vessels of one hundred and
fifty tons or over; and whenever the term “steamer” is used, it shall be
127
understood and held to apply to all vessels of one hundred tons or over
propelled by steam alone or by steam and sail.
SEC. 15. Before issuing a license to any applicant for the position of
master or engineer, the Insular Collector of Customs shall receive from
such applicant the sum of ten dollars in compensation for his examination
and license, and for the same service shall demand and receive from every
mate, patron, or assistant engineer the sum of five dollars, money of the
United States. The sums thus collected shall be paid by the Insular Collector
of Customs into the Insular Treasury.
SEC. 16. Members of the Board created by this Act, unless they are
in the service of the United States or of the Government of the Philippine
Islands, shall be paid a per diem of five dollars. United States currency,
during the period of time required in the examination of applicants.
SEC. 17. The Board on Philippine Marine Examinations shall be

convened in extra session on July first, nineteen hundred and three, for the
examination of all applicants who may present themselves before that date.
SEC. 18. Act Numbered Seventy-three of the Philippine Commission

and all Acts amendatory thereof are hereby repealed.
128
ACT No. 788
AN ACT AUTHORIZING THE CONSTRUCTION OF A FOURTEEN-

HUNDRED-TON MARINE RAILWAY AND REPAIR SHOPS ON
ENGINEER ISLAND, AND AUTHORIZING THE EXPENDITURE
OF THE SUM OF ONE HUNDRED AND FORTY THOUSAND
DOLLARS, UNITED STATES CURRENCY, THEREFOR

Commission, that:
SECTION 1. The effective service of the Coast Guard boats requiring

that some adequate place be prepared where they can be properly docked
and repaired, the Chief of Coast Guard and Transportation is hereby
authorized to have constructed, under his direction, a fourteen-hundred-
ton marine railway, with the necessary machine or repair shops, for the use
of the Coast Guard vessels and other vessels belonging to the Insular
Government. Said marine railway shall be located on the small island known
as Engineer Island, lying immediately south of the Pasig River between the
canal leading from the Pasig River to what is known as the Inner Basin and
the west breakwater in Manila Bay, in accordance with the plans to be
furnished by the Chief of Coast Guard and Transportation and approved by
the Secretary of Commerce and Police.
SEC. 2. Such part of Engineer Island as is necessary for the use of

the Coast Guard fleet and for the construction of the marine railway and
repair shops as authorized by this Act is hereby assigned, subject to
regulations by the Secretary of Commerce and Police, to the Bureau of
Coast Guard and Transportation, together with all the wharfage front about
the island and the anchorage space in what is known as the Inner Basin and
inside of a line drawn from the southeast corner of Engineer Island to the
end of the pier on which the breakwater light is now located, and also the
canal leading to the proposed marine railway, with the necessary entrance
thereto.
SEC. 3. The Chief of Coast Guard and Transportation in constructing

said marine railway shall procure the building of same and of the repair
129
shop as far as practicable by contract or contracts by private individuals or

corporations. Advertisements for bids for doing such work shall be inserted
for at least ten days in at least two newspapers of general circulation
published in the city of Manila, one of which shall be published in the
English language, and one in the Spanish language, and contracts for
performing the work shall be awarded to the lowest bidder or bidders, except
as hereinafter provided. At the time and place fixed in the advertisement
all bids for doing the work or parts thereof shall be opened by the Chief of
Coast Guard and Transportation, who shall award the contract for doing
the same to the lowest responsible bidder, provided the Chief of Coast
Guard and Transportation deems the bid reasonable. If he considers the
lowest responsible bid to be excessive, he is hereby authorized to reject
same and may again advertise one or more times for new bids and open the
same and award the contract, as in the first instance, to the lowest responsible
bidder, if in his judgment the same is reasonable, and if not, he shall reject
same: Provided, however, That after one advertisement without obtaining
a satisfactory bid, the Chief of Coast Guard and Transportation, if he
considers it more economical and advantageous to the public interest, shall
report the fact to the Secretary of Commerce and Police, who shall, if he
deems further advertising undesirable, order the work done directly by the
Chief of Coast Guard and Transportation, under such rules as the Secretary
of Commerce and Police may establish for the employment of labor, and
other details: Provided further, That the amount contracted for or expended
under this section shall not exceed one hundred and forty thousand dollars
in money of the United States : And provided further, That no bid shall be
accepted or contract concluded without the approval of the Secretary of
Commerce and Police.
The provisions of subsections (d), (e), (f), (g), (h), (i), (j), (k), (l),
(m), (n), (o), (p), (q), (r), and (s) of section five of Act Numbered Twenty-
two, entitled “An Act appropriating one million dollars in money of the
United States, for improving the port of Manila,” shall be observed by the
Chief of Coast Guard and Transportation and shall be applicable to all bids
and contracts hereunder. In all cases where the Chief of Coast Guard and
Transportation shall, in accordance with the provisions of this Act, find it
necessary or advantageous to purchase material or machinery, such purchase
130
or purchases shall be made through the Insular Purchasing Agent unless

otherwise directed by the Civil Governor.
of “An Act prescribing the order of procedure by the Commission by the
ENACTED, June 1, 1903.
131
ACT NO. 829
AN ACT AUTHORIZING THE PROVINCIAL BOARD OF PROVINCES

WHICH ARE OPERATING LAUNCHES FOR THE USE OF THEIR
PROVINCIAL OFFICERS TO CHARGE REASONABLE RATES
OF FAREFOR TRANSPORTATIONS OF NONOFFICIAL
PASSENGERS

Commission, that:
SECTION 1. In any province in which the provincial board is

maintaining a launch or other vessel for the transportation of its officers
and for other public purposes the provincial board is authorized to transport
nonofficial passengers at reasonable rates of fare from one place in the
province to another : Provided, however, That nonofficial passengers shall
be received only when consistent with the carriage of all official passengers.
SEC. 2. The provincial board shall adopt regulations to govern the

officers in charge of the launch or other vessel in respect to the transportation
of nonofficial passengers and fix the charge for such carriage : Provided,
however, That the business thus authorized to be done by the provincial
board with its official launch shall be so arranged as not to compete with
regular commercial lines transporting passengers between points in the
same province, it being the intent of this Act merely to permit the provincial
board to supply transportation for the public where the same can not be
otherwise obtained.
SEC. 3. All moneys received by virtue of this act for the transportation
on a launch or other vessel belonging to a provincial government shall be
paid into the provincial treasury and shall be considered as provincial funds
available for expenditure by the provincial board, as provided by law, for
the general purposes of the provincial government.
the passage of the same is hereby expedite in accordance with section two
132

133
ACT NO. 863
AN ACT AMENDING SECTION ONE OF ACT NUMBERED FIVE

HUNDRED AND TWENTY, KNOWN AS THE “COASTWISE
TRADE ACT,” BY MAKING THE MINIMUM TONNAGE FOR
VESSELS LICENSED THEREUNDER FIFTY GROSS TONS

Commission, that:
SECTION 1. Section one of Act Numbered Five hundred and twenty,

entitled “An Act permitting the issuing of special licenses to engage in the
coastwise trade of the Philippine Islands until July first, nineteen hundred
and four, to vessels not entitled to general coastwise trade licenses under
the Customs Administrative Act, and authorizing the fixing of maximum
rates for transportation of merchandise and passengers in the coastwise
trade,” be, and the same is hereby, amended to read as follows :
“SECTION 1. The Collector of Customs for the Philippine Islands is

hereby” authorized to issue a ‘special coastwise license’ to any vessel of
fifty gross tons or over, belonging in whole or in part to a citizen of the
United States, to a citizen of the Philippine Islands, or to a citizen or subject
of any country with which the United States is at peace, entitling said vessel
to engage in the coastwise trade of the Philippine Islands upon the terms
and conditions hereinafter prescribed.”
134
ACT NO. 898
AN ACT PROVIDING FOR THE CLOSING OF THE PORT OF APARRI

AS A PORT OF ENTRY, CREATING THE PORTS OF BONGAO,
CAPE MELVILLE, BALABAC ISLAND, AND PUERTO
PRINCESA PORTS OF ENTRY, AND AMENDING SECTION
THREE HUNDRED AND ONE OF ACT NUMBERED THREE
HUNDRED AND FIFTY-FIVE

Commission, that:
SECTION 1. The port of Aparri, in the Aparri collection district,

hereby discontinued as a port of entry and sections two and three of Act
Numbered Three hundred and ninety-four, creating Aparri a port of entry
and providing for customs employees thereat, are hereby repealed.
SEC. 2. The port of Bongao, in the Jolo collection district, and the
ports of Cape Melville, Balabac Island, and Puerto Princesa, in the Manila
collection district, are hereby created ports of entry.
SEC. 3. The following employees are hereby authorized at each of

said ports : One collector of customs of class six, who shall act as disbursing
clerk without additional compensation ; one clerk of Class D, and such
number of boatmen of Class K as may be necessary to the proper conduct
of the customs business at each port.
SEC. 4. Nothing in this Act contained shall be construed to prohibit

the retention of Aparri as a port open to the Philippine coastwise trade.
SEC. 5. The Insular Collector of Customs is hereby authorized, upon

it appearing to him that the good of the service does not require the
maintenance of a custom-house and all or any of the employees provided
for any port of entry created by this Act, to close any or all of said ports as
ports of entry for a period not to exceed six months and to withdraw any or
all of said employees : Provided, That notice of such closing shall be posted
135
at the office of the collector of the port to be closed at least forty days
before the date fixed for closing the port. During the time that any of said
ports are thus closed, they shall be held to be coastwise ports, and the
importation of merchandise thereat shall subject both vessels and cargo to
seizure and forfeiture under the provisions of section three hundred and
one of Act Numbered Three hundred and fifty-five, as amended by the
following section of this Act.
SEC. 6. Section three hundred and one of Act Numbered Three

hundred and fifty-five of the Philippine Commission is hereby amended to
read as follows :
“SEC. 301. The importation of merchandise from any port or place

outside of the Philippine Islands into any port or place in the Philippine
Islands, except through such ports of entry as have been or may hereafter
be established by competent authority, or such importation of merchandise
in a vessel of less than thirty tons burden, shall subject both vessel and
cargo to seizure and forfeiture: Provided, That the importation of
merchandise at the entry ports of Bongao, Cape Melville, Balabac Island,
and Puerto Princesa may be made in vessels of Philippine construction of
five or more tons burden without subjecting said vessels to seizure and
forfeiture.”
SEC. 8. This act shall take effect October fifteenth, nineteen hundred
and three.
136
ACT NO. 1022
AN ACT AMENDING SECTION TEN OF ACT NUMBERED SIX

HUNDRED AND SIXTY-SEVEN, BY PROVIDING THAT A
MORTGAGE ISSUED BY AN OWNER OF AN ELECTRIC
STREET RAILWAY, ELECTRIC TELEPHONE LINE, OR AN
ELECTRIC LIGHT OR POWER LINE CONSTRUCTED BY
AUTHORITY OF A GENERAL OR SPECIAL ACT OF THE
COMMISSION, UPON THE FRANCHISES, PLANT,
EQUIPMENT, AND PROPERTY OWNED AND OPERATED IN
CONNECTION WITH THE FRANCHISE THEREFOR, MAY BE
RECORDED IN THE ENGLISH OR SPANISH LANGUAGE

Commission, that:
SECTION 1. Section ten of Act Numbered Six hundred and sixty-

seven, entitled, “An Act prescribing the method of applying to governments
of municipalities, except the city of Manila, and to provinces for franchises
to construct and operate street railway, electric light and power telephone
lines, the conditions upon which the same may be granted, certain powers
of the grantees of said franchises and of grantees of similar franchises under
special Act of the Commission, and for other purposes,” is hereby amended
by substituting in lieu thereof the following:
“SEC. 10. The owner of an electric street railway, electric telephone

line, or an electric light of power line constructed under this law, or by
authority of a special Act of the Commission, shall have the power to issue
a mortgage upon the franchise, plant, equipment, and property owned and
operated in connection with the franchise which shall constitute a first lien
on the entire property, movable and immovable, then in possession of or
subsequently acquired by the owner of the franchise and used by him in
operation under the franchise. Such mortgage shall not prevent the sale of
movables or personal property of the owner when the same shall have ceased
to be useful for the maintenance and operation of the line free from the
lien, but the lien shall attach to all property purchased and substituted in
137
the proper equipment of the line. In order that the mortgage shall constitute
a prior lien as against purchases of immovables, the mortgage having been
duly executed in accordance with law shall be filed with the registrar or
registrars of land in the province or provinces in which the line is: Provided,
That the mortgage may be duly filed as herein directed in the Spanish or
English language as it may have been executed in either language, but
unless the original is accompanied by a reasonably correct translation, it
shall be the duty of the registrar to procure the making of such a translation
and to charge and collect a reasonable amount from the person filing the
mortgage to pay for such a translation at the time of the filing of the original
instrument, and to file the translation with the original, the language of the
latter in case of doubt to control. When the mortgage is foreclosed and the
property sold thereunder in accordance with its terms, as a whole, the sale
shall include the franchise, which may pass by assignment to the assignee
and be enjoyed by him, if he is otherwise competent to do such business in
the Philippine Islands, in accordance with its terms. The mortgage may be
issued to secure one loan or to secure a number of negotiable bonds, the
owners of which shall be represented by one or more trustees, who shall be
the grantee or grantees of the mortgage.”

138
ACT NO. 1023
AN ACT AUTHORIZING PROVINCIAL BOARDS, IN THEIR

DISCRETION, TO EXTEND THE TIME WITHIN WHICH MAY
BE USED THE CARTS PROHIBITED BY ACT NUMBERED
SEVEN HUNDRED AND SEVENTY- FOUR TO A DATE NOT
LATER THAN THE THIRTY-FIRST OF MAY, NINETEEN
HUNDRED AND FOUR

Commission, that:
SECTION 1. The provincial boards of the various provinces of the

Islands organized under the provisions of Act Numbered Eighty-three are
hereby authorized, in their discretion, to extend the time within which may
be used carts with wheels having tires less than two and one-half inches in
width and with wheels rigid with the axles and all sledges, to a date not
later than the thirty-first day of May, nineteen hundred and four.
139
ACT NO. 1025

EIGHTY, SO AS TO AUTHORIZE THE BOARD THEREIN
CREATED TO RECOGNIZE LICENSES ISSUED BY THE
SPANISH GOVERNMENT AND TO GRANT LICENSES
THEREON WITHOUT WRITTEN EXAMINATION, AND
PROVIDING FOR THE RENEWAL OF LICENSES
ALREADY GRANTED

Commission, that:
SECTION 1. Section four of Act Numbered Seven hundred and eighty,

entitled “An Act providing for the examination and licensing of applicants
for the positions of master, mate, patron, and engineer of sea-going vessels
in the Philippines coastwise trade, and prescribing the number of engineers
to be employed by such vessels,” is hereby amended by inserting at the end
of said section the following:
“Provided, That should any applicant for license as master, mate,

patron, or engineer produce a properly authenticated license issued him by
the duly constituted authorities in the Philippine Islands during the Spanish
regime, or such other evidence of competency as may be satisfactory to the
Board, and shall have been engaged in the coastwise trade in the waters of
the Philippine Islands in the position for which he seeks a license for at
least two years, such written examination shall not be required, and license
shall be issued thereon, provided he is shown to be physically sound and of
good moral character and within the requirements of section seven of this
Act.”
SEC. 2. Upon the expiration of the license authorized to be issued

by said Act Numbered Seven hundred and eighty, the said Board is further
authorized and empowered to renew such license from year to year upon
due application being made as prescribed in said Act, but each renewal
shall be operative for only one year. In case of renewal of license the written
140
examination required by section three of said Act shall not be had, but the
applicant for renewal shall only be required to submit to an examination, if
deemed necessary by the Board, to test his physical soundness, but the
Board is authorized to refuse any application for renewal upon satisfactory
evidence of misconduct, intemperate habits, incapacity or inattention to
duty on the part of the licensee, and also to revoke any such renewal license,
when granted, for the same reasons, or any of them.
141
ACT NO. 1026
AN ACT FIXING THE ANNUAL TONNAGE TAX UPON CASCOES

AND OTHER VESSELS NOT DECKED OVER AND NOT
PROPELLED BYTHEIR OWN STEAM, SAIL, OR OTHER
SIMILAR MOTIVE POWER, AND CONSTRUCTED IN THE
PHILIPPINE ISLANDS, AND AMENDING SECTION ONE
HUNDRED AND THIRTY-FIVE OF THE PHILIPPINE CUSTOMS
ADMINISTRATIVE ACT

Commission, that:
SECTION 1. All cascoes and other craft not decked over and not
propelled by their own steam, sail, or other similar motive power, in the
Philippine Islands, for which licenses shall hereafter be obtained or renewed,
shall be subject to an annual license fee on one peso, Philippine currency,
per gross ton: Provided, That it shall be shown to the collector of customs
issuing the licenses that such craft have been constructed in the Philippine
Islands.
SEC. 2. Nothing in this Act contained shall be construed to authorize

any refund of any tonnage tax already paid upon these vessels in accordance
with the heretofore existing law.
SEC. 3. Anything in section one hundred and thirty-five of the

Philippine Customs Administrative Act in conflict with the provisions of
this Act is hereby repealed.

142
ACT NO. 1047
AN ACT APPROPRIATING THE SUM OF FIVE HUNDRED

THOUSAND DOLLARS, IN MONEY OF THE UNITED STATES,
FOR CONTINUING THE IMPROVEMENT OF THE PORT OF
MANILA

Constitution, that:
SECTION 1. The sum of five hundred thousand dollars, in money of

the United States, is hereby appropriated, out of any funds in the Insular
Treasury not otherwise appropriated, to be immediately available and to be
expended by the Civil Governor through the Chief Engineer of the Philippine
Division of the United States Army, for continuing the improvements of
the Harbor of Manila and other public works, as provided in Act Numbered
Twenty-two, as amended.
SEC. 2. The appropriation made by this Act shall be available for

expenditure in the payment for all work at present under contract for the
improvement of the port of Manila, including payment for work on the
contract for the construction of an additional breakwater as provided by
Act Numbered Five hundred and seventy-eight.
enactment of laws, “ passed September twenty-sixth, nineteen hundred.
143
ACT NO. 1066
AN ACT EXEMPTING SMALL VESSELS FROM THE

REQUIREMENTS OF ACT NUMBERED SEVEN HUNDRED
AND EIGHTY, ENTITLED “AN ACT PROVIDING FOR THE
SEAGOING VESSELS IN THE PHILIPPINE COASTWISE
TRADE, AND PRESCRIBING THE NUMBER OF ENGINEERS
TO BE EMPLOYED BY SUCH VESSELS”

Constitution, that:
SECTION 1. So much of Act Numbered Seven hundred and eighty,

for the position of master, mate, patron, and engineer of seagoing vessels
in the Philippine coastwise trade, and prescribing the number of engineers
to be employed by such vessels,” as provides that steam vessels of less
than one hundred tons burden, or sailing vessels of less than one hundred
and fifty tons burden, shall carry licensed officers, is hereby repealed :
Provided, however, That all vessels propelled wholly or in part by steam
shall carry and employ a licensed engineer or engineers, as provided in
said Act Numbered Seven hundred and eighty.
144
ACT NO. 1090
AN ACT AUTHORIZING PROVINCIAL BOARDS OF PROVINCES

OPERATING LAUNCHES FOR THE USE OF THEIR
PROVINCIAL OFFICERS TO MAKE REASONABLE CHARGES
FOR TRANSPORATATION OF NONOFFICIAL PASSENGERS
AND FREIGHT AND AUTHORIZING THE CARRYING OF
UNOFFICIAL PASSENGERS AND CARGOES UNDER CERTAIN
CIRCUMSTANCES ON BOATS CONTROLLED BY THE
BUREAU OF COAST GUARD AND TRANSPORTATION, AND
REPEALING ACT NUMBERED EIGHT HUNDRED AND
TWENTY-NINE

Commission, that:
SECTION 1. In any province in which the provincial board is

maintaining a launch or other vessel for the transportation of its officers
and for other public purposes, the provincial board is authorized to transport
nonofficial passengers and freight from one place in the province to another
and to fix a reasonable tariff for such carriage and to adopt regulations to
govern the officers in charge of such launch or other vessel in respect to
the transportation of nonofficial passengers and freight: Provided, however,
That nonofficial passengers and freight shall be received only when
consistent with the carriage of all official passengers and freight, and that
the business hereby authorized to be done by the provincial board with its
official launch shall be so arranged as not to compete with regular
commercial lines transporting passengers or freight between points in the
same province, it being the intent of this section merely to permit the
provincial board to supply transportation for the public where the same
can not be otherwise obtained. All moneys received by virtue of this section
shall be paid into the provincial treasury and shall be considered as
provincial funds available for expenditure by the provincial board, as
provided by law, for the general purposes of the provincial government.
145
SEC. 2. The Secretary of Commerce and Police is hereby empowered

to authorize, in his discretion, the carrying of nonofficial passengers and
freight on boats controlled by the Bureau of Coast Guard and Transportation,
subject to the general limitation and restrictions set forth in section one of
this Act regarding launches operated by provincial boards. The tariff and
regulations for the transportation of nonofficial passengers and freight on
Coast Guard boats shall be fixed by the Chief of the Bureau of Coast Guard
and Transportation, subject to the approval of the Secretary of Commerce
and Police. All moneys received by virtue of the provisions of this section
for the transportation of passengers and cargoes on any Coast Guard boat,
shall be paid over to the disbursing officer of the Bureau of Coast Guard
and Transportation and by him covered into the Insular Treasury to the
credit of “miscellaneous receipts.”
SEC. 3. Act Numbered Eight hundred and twenty-nine is hereby

repealed.
146
ACT NO. 1111
AN ACT GRANTING A FRANCHISE TO CHARLES W. CARSON TO

CONSTRUCT, MAINTAIN, AND OPERATE BY ANIMAL POWER
A TRAMWAY WITHIN THE LIMITS OF THE MUNICIPALITY
OF DAET, IN THE PROVINCE OF AMBOS CAMABINES, FROM
THE WHARVES OF THE BARRIO OF MERCEDES, IN SAID
MUNICIPALITY, TO THE TOWN PROPER OR POBLACION OF
DAET, AND THROUGH THE SAID TOWN OF DAET TO A POINT
ON THE PUBLIC HIGHWAY ONE MILE DISTANT FROM THE
MUNICIPAL BUILDING OF SAID MUNICIPALITY OF DAET IN
THE DIRECTION OF THE TOWN OF TALISAY

Commission, that:
SECTION 1. Charles W. Carson, a citizen of the United States, upon

the terms and conditions hereinafter set out, is hereby authorized to construct
and, for a period of thirty-five years after the passage of this Act, to maintain
and operate by animal power a tramway over the public highway from the
shore line at the port of Mercedes, a barrio of the municipality of Daet, in
the Province of Ambos Camarines, to the town proper or población of Daet,
and through said town proper or población of Daet, to a point on said
public highway one mile distant from the municipal building of Daet in the
direction of the town proper or población of Talisay, and to construct and
maintain such switches, sidetracks, loops, turn-outs, and passing places as
may be necessary for the convenient operation of the tramway.
SEC. 2. The tramway shall be a single line and with necessary

switches, sidetracks, loops, turn-outs, and passing places shall be constructed
along one side of the public road or highway mentioned in section one so
as to leave at least twenty feet of the width of the public road for its entire
length free and clear of the tracks, roadbeds, switches, sidetracks, loops,
turn-outs, and passing places of said tramway. Within the town proper or
población of Daet and within the barrio proper or población of Mercedes,
said tramway, with its switches, sidetracks, loops, turn-outs, and passing
147
places, shall be so constructed and located that it shall not unreasonably

interfere with traffic over the entire width of the streets or street crossings
of said town proper or población of Daet or of said barrio proper or
población of Mercedes. In case of dispute between the authorities of the
municipality of Daet and the grantee as to the location of the track in the
town proper or población of Daet or in the barrio proper or población of
Mercedes, or as to whether such track when constructed will unreasonably
interfere with traffic, the matter shall be referred to the supervisor of the
province for decision, and the decision of such supervisor shall be final.
SEC. 3. The tramway shall be of three feet gauge, but this gauge may
be increased or diminished by permission of the Consulting Engineer to
the Commission previously obtained.
SEC. 4. The grantee shall begin the construction of the tramway within
six months after the acceptance in writing of this franchise and shall fully
complete the same and put it in operation for the public convenience for its
entire length within twelve months from the date of said acceptance, and
for failure to begin the work of construction or to complete the tramway
and put the same in operation for public convenience within the time and
as prescribed, the franchise hereby granted shall be forfeited and the grantee
shall be subject to the liabilities hereinafter prescribed for such failure.
SEC. 5. The materials employed in the construction of the tramway

shall be all of good class and quality and suitable for the purpose for which
they are used or to which they are applied.
SEC. 6. The grantee shall construct and maintain and keep in good
repair such drains, culverts, or waterways as the tramway or its operation
or maintenance may render necessary for the proper drainage of the road,
highway, or street over which it passes, and the construction and
maintenance of said drains, culverts, and waterways shall be under the
direction and supervision of the Consulting Engineer to the Commission,
or his authorized subordinate, to the extent necessary for the protection of
the public interests.
148
SEC. 7. All culverts, bridges, and drains constructed by the grantee

crossing the road, highway, or street shall be constructed and maintained
by the grantee for the full width of the road, highway, or street and in such
manner as not to interfere with the traffic over the road, highway, or street
or to prevent convenient use thereof by the public.
SEC. 8. The grantee shall be under a continuing obligation to keep in

good repair the roadbed of said tramway and the surfaces of the road,
highway, or street between the rails and between the tracks of the tramway
and for eighteen inches on each side of said tracks for the entire length of
the tramway, and within the town proper or población or municipality of
Daet and within the barrio proper or población of any barrio of said
municipality through which said tramway passess, the space between the
rails and tracks of the tramway and for eighteen inches on each side of said
tracks to be filled flush to the top of the rails by the grantee with the same
material as that used in the construction of the road, highway, or street and
as may be prescribed by ordinance of the municipality of Daet : Provided,
however ; That in case of dispute between the municipality and the grantee,
the work shall be done with the material and in the manner prescribed by
the Consulting Engineer to the Commission: And provided further, That if
the municipality shall order a change in the kind of material after the same
has once been laid by the grantee, the material necessary to make the change
shall be furnished by the municipality and the work of laying such material
and putting the same in place shall be borne by the grantee at his own
proper cost and expense.
SEC. 9. Before commencing the work on the tramway and within

thirty days after the passage of this Act the grantee shall file in duplicate
with the Consulting Engineer to the Commission a map or plan showing
the location, direction, and general course of said tramway, the estimated
distance between changes of course, accompanied by an explanatory
statement as to the route of the tramway and its relation to the road, highway,
or streets over which it passes. Should the Consulting Engineer refuse to
approve said map or plan, the grantee shall make such changes therein as
may be prescribed by the Consulting Engineer to the Commission. One
copy of the map or plan, when finally approved, shall be filed by the
149
Consulting Engineer in his office and one copy shall be returned by him
with his approval to the grantee. The failure or refusal of the grantee to file
the map required by this section within the time prescribed or to change
within a reasonable time the said map or plan when so directed by the said
Consulting Engineer to the Commission shall render null and void the
franchise granted by this Act.
SEC. 10. Within thirty days after the map or plan of the tramway
furnished by the grantee is returned to him by the Consulting Engineer
finally approved, the grantee shall file with the Secretary of Commerce
and Police his acceptance in writing of the franchise granted by this Act
and at the same time shall deposit in the provincial treasury of Ambos
Camarines the sum of one thousand pesos, Philippine currency, or negotiable
bonds of the United States or other securities of equal value approved by
the Civil Governor. Said deposit of one thousand pesos, Philippine currency,
shall be made as an earnest of good faith of the acceptance and as a guaranty
that within six months from the date of said acceptance the sum of nine
thousand pesos, Philippine currency, or negotiablebonds of the United States
or other securities of equal value approved by the Civil Governor shall be
deposited with the provincial treasurer of said province. The whole deposit
of ten thousand pesos, Philippine currency, thus made, shall be retained in
the provincial treasury as security for the completion of the work and
operation of the tramway for its entire length within twelve months from
the date of acceptance. In case said deposit of nine thousand pesos,
Philippine currency, is not made as herein set out or the grantee fails to
commence the work within six months after the acceptance of the franchise,
the deposit of one thousand pesos, Philippine currency, made on the
acceptance of the franchise, shall be forfeited to the municipality of Daet.
In case the tramway shall not be completed and put in operation for the
public convenience within twelve months from the date of the acceptance,
the whole deposit shall be forfeited as liquidated damages for breach of the
contract created by the acceptance of the franchise, and such deposit shall
be divided equally between said municipality of Daet and the Province of
Ambos Camarines : Provided, however, That any moneys deposited with
the provincial treasurer may, with the approval of the Civil Governor, be
paid by the provincial treasurer to the grantee monthly or quarterly in the
150
proportion which the work done bears to the whole work to be done, such
proportion to be certified by the Consulting Engineer to the Commission
or his duly authorized subordinate. If the deposits required by this section
to be made by the grantee, or either of them, is in interest-bearing bonds or
other interest-bearing securities, the interest shall be collected by the
provincial treasurer of Ambos Camarines and shall be turned over to the
grantee as it is collected, unless the grantee shall fail to perform the
obligations required of him by this franchise, in which case the accruing
interest shall be withheld by the said provincial treasurer and shall constitute
a part of the deposit to be divided equally between the Province of Ambos
Camarines and the municipality of Daet as liquidated damages resulting
from the default of the grantee.
SEC. 11. This franchise is granted with the understanding and on the
condition that it shall be subject to amendment, modification, alteration, or
repeal by the Congress of the United States and that all lands or rights of
use or occupation of lands secured by any corporation by virtue of this
franchise, and all lands or rights of use or occupation of lands granted by
this franchise on the public domain or public lands shall revert upon the
termination of this franchise and concession, or upon the revocation, repeal,
forfeiture, or lapse thereof, to the Insular, provincial, or municipal
government which owned said lands or enjoyed said rights at the time of
the grant of said franchise or concession.
The grantee of this franchise, his successors, and assigns are 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 so issued. Neither shall the grantee, his successors, or assigns declare
any stock or bond dividend. It shall be unlawful for the grantee, his
successors, or assigns to use or employ or contract for the labor of persons
claimed or alleged to be held in involuntary servitude, and any person,
company, or corporation exercising the rights and privileges conferred by
this franchise who shall use, employ, or contract for the labor of persons
claimed or alleged to be held in involuntary servitude shall not only forfeit
all such rights and privileges and the franchise hereby granted, but shall
also be deemed guilty of an offense and shall be punished by a fine of not
less than ten thousand dollars, United States currency.
151
SEC. 12. The rates to be charged by the grantee, his lessees,

successors, assigns for the transportation of passengers or freight or for
other service shall always be subject to regulation by Act of the Commission
or other legislative authority of the Islands.
SEC. 13. The grantee, his lessees, successors, or assigns shall pay
into the treasury of the Province of Ambos Camarines, in consideration of
the granting of this franchise, one and one-half per centum of the gross
income earned by the tramway or resulting from its operation. One per
centum of the gross income so paid into the provincial treasury shall be
paid by the provincial treasurer to the municipality of Daet for municipal
purposes, and the remaining one-half per centum of said gross income and
earnings shall be retained in the provincial treasury for provincial purposes.
The percentage of gross income and gross earnings of said tramway required
by this section to be paid into the treasury of Ambos Camarines by the
grantee, his lessees, successors, or assigns shall be due and payable quarterly
after said tramway shall have been put in operation for the whole or any
part of its length.
SEC. 14. The grantee may refuse to transport any package or parcel
and exemptions :
(a) To occupy any part of the public domain, not occupied for other
land to be taken under this power shall be acquired by the grantee in the
following manner: The grantee shall file a petition describing the land which
he desires to acquire from the public domain, showing that the same belongs
to the public domain, is not in use for any other public purpose, and is
property necessary for the enjoyment of the franchise to construct and
maintain the railroad herein described, and praying that the same may be
conveyed to him for uses and purposes of the enjoyment of said franchise.
152

and the plat and the taking of evidence, if necessary, shall approve the
same, if he finds the land petitioned for to be necessary and proper for the
land sought is public land and is not in use for any other public purpose,
propriety and legality of granting the petition, shall grant to the owner of
the franchise permission to use said land for the purposes of the tramway.
The permission to use said land shall be in writing and shall contain a
clause providing for a reversion of the land to the Insular Government
whenever it shall have ceased to be used for the purposes of the franchise.
(b) No real or personal property of said tramway actually used and

necessary for tramway purposes, shall be taxed by any province or
municipality for five years from the granting of this franchise.
(c) In the case of refusal or failure to pay the lawful charges, costs,
and expenses of the transportation and conduction of freight over the whole
length or any part of the line, the grantee shall have the right to detain said
freight until such time as the amount lawfully due shall be paid. The amount
lawfully due shall include all proper charges for storage of goods left in the
care of the grantee for over forty-eight hours after reaching their destination.
(d) To make application before the justice of the peace of the

municipality of Daet for the sale at public auction of all articles of freight
or luggage transported by the grantee which may have remained in the
hands of the grantee for two months or over uncalled for by the owner or
consignee. In the before-mentioned cases, or when the owner or consignee
can not be found or is unknown or shall refuse to receive the goods
transported or pay the lawful costs, charges, and expenses of transportation,
application may be made by the grantee, his lessees, successors, or assigns
to the justice of the peace of the municipality of Daet for an order to sell at
public auction, upon two day’s notice, those goods which are of a perishable
nature, and upon thirty day’s notice, goods not likely to suffer deterioration
or loss during the period of notice if given ordinary care. Notices of sale
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required by this section shall be given by posting at the place where goods
are stored or held and at the door of the municipal building a written
announcement of the date, hour, and place of sale, a description of the
goods to be sold, and the charges, costs, and expenses for which the goods
are held. The proceeds of sale shall go first to defray the cost and expenses
of said sale, and then to the account of freight and charges of the grantee on
said goods, and the balance, if there be any, shall be deposited with said
justice of the peace at the disposition of the person who may have right to
same. The grantee shall have the right to refuse to transport goods of a
perishable nature unless the freight charges are prepaid or guaranteed.
(e) To sell, lease, give, grant, convey, or assign this franchise and all
property and rights acquired thereunder to any person, company, or
corporation competent to conduct the business of the said tramway, but no
title to this franchise or to the property or rights acquired thereunder, shall
pass by sale, lease, gift, grant, conveyance, transfer, or assignment to the
vendee, donee, transferee, lessee, or assignees, or be enjoyed by him until
he shall have filed in the office of the Secretary of Commerce and Police
an agreement in writing agreeing to comply with all the terms and conditions
imposed on the grantee by the franchise and accepting the said franchise
subject to all its existing terms and conditions.
SEC. 16. The grantee, his lessees, successors, and assigns shall agree
to carry the mails upon such terms and conditions and at such rates as may
be agreed upon between the Director of Posts and the grantee. In case the
Director of Posts and the grantee can not agree on terms, conditions, or as
to rates of transportation of the mails, the Chief Executive of the islands,
after giving the grantee opportunity to be heard, shall fix the rates of
transportation and the terms and conditions under which the mails shall be
carried by the said tramway. If the Government of the Islands should require,
in addition to the ordinary mail service, the transport of mail on urgent
orders, at other hours or at higher speed than may be prescribed by the
ordinary tram-train schedule, or should the Government require the transport
of troops, ammunition, bullion, freight, or war supplies, the grantee shall
provide day or night special conveyance for same and he allowed such
extra compensation therefor as may be reasonable.
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SEC. 17. The tramway for which a franchise is conceded by this Act
may be crossed by lines of railroad, other tramways, or by roads or highways
on such terms and conditions and under such rules and regulations as may
be prescribed by the Government of the Philippine Islands.
SEC. 18. The legal domicile of the owner of this franchise shall be in
Daet, where there shall also be a duly authorized representative of said
owner with full power to perform the duties enjoined and maintain the
rights conferred by the franchise.
“An Act temporarily to provide for the administration of the affairs of civil
SEC. 20. The books of the grantee, his lessees, successors, or assigns
maintaining or operating said tramway shall always be open to the inspection
of the Insular Auditor, the provincial treasurer, or of a deputy designated
by either for the purpose, and once said tramway is put in operation for the
whole or any part of its length it shall be the duty of the grantee of the
franchise, his lessees, successors, or assigns operating under the same to
submit to the provincial treasurer quarterly reports in duplicate showing
the gross earnings. gross income, and all expenses and expenditures of
said tramway, as well as such other data as may be required by the Insular
Auditor or provincial treasurer for a complete understanding of the general
condition of the business of said tramway. One of the duplicate reports
required by this section to be furnished to the provincial treasurer shall be
retained by him and the other forwarded by him to the Insular Auditor, who
shall keep the same on file.
SEC. 21. At any time after five years from the granting and during
the life of this franchise, the Government of the Philippine Islands may, by
legislative enactment, upon such terms and conditions as to it may seem
proper, require the grantee, his lessees, successors, or assigns to operate
said tramway by electric or other power instead of by animal power. Should
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said grantee, his lessees, successors, or assigns decline, fail, or refuse to

operate said tramway by the power required by the Government and in the
manner and as directed by said Government, then the franchise granted by
this Act shall be forfeited and all rights, privileges, and concessions granted
by it shall end and terminate.
SEC. 22. Once said tramway has been put into operation for its entire
length, the grantee, his lessees, successors, or assigns shall furnish such
rolling stock and run such trains and make such number of trips over the
entire length of said line as the public service and the demands of traffic
may reasonably require. The failure by the grantee, his lessees, successors,
or assigns to operate said tramway for its entire length, unless prevented
by the act of God, the public enemy, or force majeure, shall constitute an
abandonment of the franchise hereby granted, and the municipality of Daet,
with the approval of the Civil Governor, may either declare said franchise
forfeited or require the grantee, his lessees, successors, or assigns to remove
the lines or tracks of said tramway for the whole or any part of the length of
said tramway, or may itself cause such lines or tracks of said tramway to be
removed at the expense of the grantee, his lessees, successors, or assigns.
SEC. 23. Upon such terms and conditions as may be agreed upon,
and at any time during the existence of this franchise, the grantee, his
successors, and assigns may construct. maintain, and operate such additional
side tracks, double tracks, loops, switches, and passing places as may be
deemed useful for the convenient and advantageous operation of the said
tramway, the consent of the council of the municipality of Daet having
been first obtained : Provided, however, That the construction of such
additions to the original tramway shall not be entered upon until the grantee
shall have filed with the Consulting Engineer to the Commission, in
duplicate, a map or plan of such proposed addition, accompanied by an
explanatory statement, and shall have had returned to him a copy of said
map with the approval of said Consulting Engineer. All such additions,
when completed, shall become 21 part of the said tramway, and shall be
held, maintained, and operated upon the same conditions as those which
control the rest of said tramway.
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SEC. 24. The council of the municipality of Daet, after hearing the
grantee, shall have the power, with the approval of the Civil Governor, to
declare the forfeiture of this franchise and concession for failure to comply
with any of the terms and conditions required of him to be performed by
the franchise, unless such failure shall have been directly and primarily
caused by the act of God, the public enemy, or force majeure.
SEC. 25. Against such declaration of forfeiture of the franchise the

grantee, his lessees, successors, or assigns may apply to any court of
competent jurisdiction for such relief as to him may seem proper, but if no
such application is made within a period of two months after the forfeiture
has been declared by such municipality and approved by the Civil Governor,
the right to apply to the courts for relief shall be considered waived and the
forfeiture shall become final. The forfeiture of the concession implies the
loss of the deposit.
SEC. 26. When the forfeiture of the franchise shall have become
final, either by failure to apply to the proper court within the time prescribed
or by a final decision of the courts confirming the forfeiture, the municipality
of Daet shall take possession of the tramway and all property necessary for
its proper operation and management and shall sell the same at public auction
for cash to the highest bidder therefor, after giving notice of such sale by
posting an announcement thereof in Spanish and English for sixty days
prior to the sale at the door of the municipal building and at the principal
office of the tramway. and by publishing a notice of such sale for sixty
days prior to the sale in at least one paper published in English and one
published in Spanish in the city of Manila. The notice shall set forth the
fact of the forfeiture of the franchise, a general description of the property
to be sold, and the date, hour, and place of sale. The proceeds of the sale
shall be paid to the grantee, his successors, or assigns, less the costs and
expenses of sale.
SEC. 27. This Act shall be subject to all the requirements and
limitations of Act Numbered N inety-eight, and the amendments thereto
heretofore or hereafter made, and a failure to comply with the provisions
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of said Act Numbered Ninety-eight shall be punishable as provided for the

violation of said Act Numbered Ninety-eight.
158
ACT NO. 1112
AN ACT AUTHORIZING THE ASSIGNMENT, SALE, AND TRANSFER

TO THE MANILA ELECTRIC RAILROAD AND LIGHT
COMPANY OF ALL THE ASSETS OF THE COMPANIA DE LOS
TRANVIAS DE FILIPINAS, PROVIDING FOR THE SURRENDER
BY THE MANILA ELECTRIC RAILROAD AND LIGHT
COMPANY OF THE FRANCHISES, AND AMENDMENTS
THERETO, OF THE SAID COMPANIA DE LOS TRANVIAS DE
FILIPINAS, AND FOR CERTAIN AMENDMENTS TO
ORDINANCE NUMBERED FORTY-FOUR OF THE MUNICIPAL
BOARD OF MANILA, ENACTED IN PURSUANCE OF ACT
NUMBERED FOUR HUNDRED AND EIGHTY-FOUR OF THE
PHILIPPINE COMMISSION, AND FOR THE OPENING OF
CERTAIN NEW STREETS BY THE MUNICIPAL BOARD OF
MANILA, AND FOR A FRANCHISE TO THE MANILA
ELECTRIC RAILROAD AND LIGHT COMPANY TO
STREET RAILWAY AND AN ELECTRIC LIGHT, HEAT, AND
POWER SYSTEM FROM THE LIMITS OF THE CITY OF
MANILA TO MALABON

Commission, that:
SECTION 1. The Compania de los Tranvias de Filipinas is hereby

authorized to sell, assign, and transfer its entire properties and assets,
including all its right, title, and interest in and to the franchises, and all
amendments thereto, first, to operate certain street railway lines in the city
of Manila (which franchises were granted to Senor Don Jacobo Zobel de
Zangroniz and Senor Don Lucio Maria Bremon on April twenty-second,
eighteen hundred and eighty-one, by the General Government of the
Philippine Archipelago) ; second, to operate a steam traction road from the
Bridge of Pretil, in Tondo, Manila, to the principal square in Malabon (which
franchise was granted to Señor Don Jacobo Zobel de Zangroniz on October
twenty-second, eighteen hundred and eighty-four, by the General
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Government of the Philippine Archipelago), to the Manila Electric Railroad

and Light Company, a corporation organized and existing under and by
virtue of the laws of the State of New Jersey, the name of which corporation
was originally the Manila Railway and Light Company, but which name
was, thereafter, on the sixth day of July, nineteen hundred and three, by
due process of law, changed to, and now is, the Manila Electric Railroad
and Light Company, and which corporation, under the name of Manila
Railway and Light Company, acquired from Charles M. Swift, on the twenty-
seventh day of March, nineteen hundred and three, the franchises heretofore
granted to said Charles M. Swift by Ordinance Numbered Forty-four of the
city of Manila, enacted in pursuance of Act Numbered Four hundred and
eighty-four of the Philippine Commission ; and said sale, assignment, and
transfer of said properties, assets, and franchises of said Compaûia de los
Tranvias de Filipinas to said Manila Electric Railroad and Light Company
is hereby consented to, allowed, and sanctioned : Provided, however, That
the Manila Electric Railroad and Light Company shall, upon purchase of
the properties and assets of the Compañia de los Tranvias de Filipinas,
thereafter hold, occupy, and operate the lines of street railways specified in
section two hereof, solely under its charter granted by Act Numbered Four
hundred and eighty-four and Ordinance Numbered Forty-four of the
Municipal Board as amended by this Act and the ordinance of said council
to be passed as herein directed.
SEC. 2. The Municipal Board of the city of Manila shall amend

Ordinance Numbered Forty-four, enacted in pursuance of Act Numbered
Four hundred and eighty-four of the Philippine Commission, as follows :
First. Paragraphs two, three, twelve, fifteen, seventeen, twenty-four,

and twenty-eight of Part One, and paragraphs two and nine of Part Two, of
said ordinance shall be amended to read as follows :
“PAR. 2. The streets, thoroughfares, bridges, and public places upon

which the grantee is authorized to make such excavations and constructions
are as follows:
“(a) Commencing at the southerly end of the Bridge of Spain, to and

along Calzada de Magallanes, across the Plaza de Martires (Plaza de
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Espana), to Calle Santo Tomás, thence to Calle Cabildo, thence to Calle

Fundicion, thence to Calle Palacio, thence through the wall and across the
moat, to Paseo de Vidal, thence along Paseo de Bagumbayan to Calle San
Luis, thence along Calle Real to Calle Cabañas. thence over the Bridge of
San Antonio and to the Pasay race track : Provided, That the grantee shall
have the right to operate its cars upon Calle Real, Malate, except in cases
of temporary emergency or necessity, in but one direction, without the
consent of the Municipal Board. and shall not have the right to put in turn-
outs along said street without like consent.
“(b) From the easterly end of Calle Aduana to Calle Palacio, thence
to Calle Fundicion.
“(c) From the northerly end of the Bridge of Spain and its junction
with the Escolta, along the Bridge of Spain, to its southerly end. Thence
from the southerly end of the Bridge of Spain to Paseo de Vidal, along said
paseo to its junction with Calzada de Nozaleda, along said calzada to its
junction with Calzada de San Marcelino.
“(d) From the junction of Calzada de Vidal and Calle Concepcion to

Calzada de San Marcelino, along the latter calzada to its junction with
Calzada de Nozaleda, thence to Calle Real (Paco), and along said street to
the church of Santa Ana.
“(e) From the southerly end of the Bridge of Spain to the Bridge of
Santa Cruz, across the Bridge of Santa Cruz, through Plaza Goiti, to Calle
Echague, thence to Calle San Miguel, thence to Calle General Solano, thence
to Calzada de Aviles, and, along Calzada de Santa Mesa, to Santa Mesa.
“(f) From Plaza Goiti to Plaza Santa Cruz, thence to Calle Enrile,
thence to Calle Alcalá, thence to Calle Almanza, thence to the Estero Cegado,
thence to the line on Calzada de Bilibid.
“(g) From the intersection of Calle Jolo and the easterly approach to
the Bridge of Binondo, thence across the Bridge of Binondo to Calle San
Fernando, thence to Calle Madrid. thence to Calle Aceiteros, thence to
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Calle de Segunto, thence to Paseo de Azcarraga, thence to Calle General

lzquierdo, thence to Calle San Bernardo, thence to Calle Paz, thence to
Calle Bilibid, thence to Calle de Iris, to Plaza Santa Ana, thence along
Calle Alix to the Rotonda de Sampaloc.
“(h) From the intersection of Paseo de Azcarraga and Calle Ylaya,

along the latter street, around Plaza Leon XIII. to and along Calle de Sande,
to the Pretil Bridge.
“(i) From the intersection of Calle de Bilihid and Calle Cervantes,

along said Calle Cervantes, to the San Lazaro race track.
“(j) From the intersection of Calle Ylaya and Paseo dc Azcarraga,

along Calle Ylaya, to the junction of the line on Calle Joló.
“(k) From the line at the intersection of Calle de Segunto and Calle
Aceiteros, along Calle de Segunto, to Calle Clavel, along Calle Clavel, to
the line of Calle Madrid.
“(l) Along Calle de Lemeri and Calle de Joló, from the Bridge of
Pretil (near Tondo Station) to Plaza de Binondo, across Plaza de Binondo,
and along Calle Rosario, and to and across Plaza de P. Moraga, to and
along the Escolta, to and across Plaza Goiti, to and along Calle de Carriedo,
to and across Plaza de Miranda, to and along Calle de Crespo. to and along
(Calle de San Sebastian. to and across Plaza del Carmen, to and across
Plaza dc Santa Ana, to and a junction with line (g), namely, the intersection
of Calzada de Iris and Plaza de Santa Ana, also along the main road from
Manila to Malabon, beginning at Tondo station, near the Bridge of Pretil,
to the limits of the city.
“(m) From the intersection of Calle San Luis and Calle Real (Ermita),
along Calle San Luis, to and along the proposed Calle E, as the same is
platted on the map of the engineer of the city of Manila, which map has
been approved by, and is now on file with the Municipal Board of the city
of Manila, to its intersection with Calle Padre Faura, thence along Calle
Padre Faura to and along the proposed Calle D, as the same is platted on
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the map hereinbefore referred to, to and along a proposed street running
from the cemetery at right angles to Calle Diaz Puertas, to Calle C, as the
same is platted on the map hereinbefore referred to, along Calle C to a
street running east from the end of Calle Cabanas and at right angles thereto,
thence to and along said last-mentioned street to Calle Cabañas.”
“PAR. 3. The grantee shall have the right to lay double tracks upon
each of the streets, throughfares, bridges, and public places mentioned in
the last preceding paragraph except the following, upon which (except with
the express consent of the Municipal Board to the laying of double tracks)
only single tracks shall be laid :
“Calle Enrile, Calle Jold, Calle Almanza. Calle Carriedo. Calle

Crespo, Calle Alcalá, Estero Cegado, where these streets are less than
twenty-four feet wide between curb lines ; also Calle de Cabanas ; also
Calle Cabildo, Calle Santo Tomas, Calle Fundicion, Calle Palacio, Calle
Aduana ; these last five being the streets within the Walled City : Provided,
That the grantee shall have the privilege, under the direction of the Municipal
Board, of placing upon all of the foregoing streets the necessary turnouts,
switches, and sidings : And provided further, That in all streets,
thoroughfares, bridges, and public places the tracks, rails, and other
constructions of the grantee shall be so laid and located as to leave a clear
driveway between the tracks and the curb line on at least one side of such
tracks where the width of the street between the curbs makes its physically
possible.”
“PAR. 12. The grantee shall, at all times, keep its tracks, rolling stock,
and other construction in good condition. Two classes of cars or
compartments, providing for two classes of passengers, shall be run, and at
least sixty per centum of the accommodation furnished shall be second-
class cars or compartments. The grantee hereof shall, at all times, furnish
cars or compartments of both classes sufficient to satisfy the public demand
and to carry comfortably all the members of the public desiring to ride
thereon : Provided, That, after one year of operation, the Municipal Board
shall have the power, with the concurrence of the grantee of this franchise,
to amend this paragraph so as to require that only one class of cars or
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compartments shall be run, upon which the lower rate of fare shall be
charged.”
“PAR. 15. The fare charged by the grantee shall not exceed six cents,
in money of the United States, on a first-class car or compartment or five
cents, in money of the United States, on a second-class car or compartment,
for one continuous ride from one point to another on the street railway
system of the grantee within the city limits, as now or hereafter established,
whether or not it be necessary to transfer the passengers from one car or
line of the grantee to another during said ride : Provided always, That where
a change of cars is necessary, there shall be established by the grantee a
method of transfers not unreasonably burdensome in its restrictions to the
transferred passengers ; and, in case of failure to comply with the foregoing
requirement as to transfers, it may be enforced, upon application of the
Municipal Board, by mandamus to the proper Court of First Instance or the
Supreme Court : And provided further, That on lines running outside of the
city limits, an additional fare or fares may be charged at the rate of five
cents, in money of the United States, on first-class cars, or three cents, in
money of the United States, on second-class cars for each two miles, or
fraction thereof, beyond the city limits, as now or hereafter established :
And provided further, That at any time after twenty-five years from the
date hereof, upon due notice from the city of Manila to the grantee, the
fares charged by the grantee may be readjusted on a reasonable basis by
three arbitrators, one to be chosen by the city, one by the grantee, and the
third to be selected by the two chosen, if they can agree, but, if not, then to
be selected by the Chief Executive of the Islands. The award of the majority
of such arbitrators shall be final.”
“PAR. 17. Until such time as the fares herein fixed shall be readjusted,
the grantee shall place on convenient sale lots of one hundred tickets at the
rate of five dollars and fifty cents, in money of the United States, per one
hundred, each of which shall be good for one continuous first-class ride on
the cars of the grantee within the limits of the city of Manila, and lots of six
tickets at the rate of twenty-four cents, in money of the United States, per
six, each of which shall be good for one second-class continuous ride on
the cars of the grantee within the city limits : Provided, That the grantee
164
may issue such tickets subject to such reasonable restrictions as to the

grantee may seem proper.”
“PAR. 24. All reasonable, or proper, or necessary changes on the

lines or routes of the grantee, or the abandonment of any part of its franchises
or of any street or streets which it may not be desirable or advisable to use,
may be made by the grantee with the approval of the municipal authorities.”
“PAR. 28. At any time after twenty-five years from the date hereof,
the city of Manila may purchase. and the grantee shall sell to the city of
Manila, and all of its franchises, lines, tracks, cars, real estate, buildings,
plant, rights, and other property used by it in the operation of a street railway
in the city of Manila and on the line to Malabon, at a valuation based upon
the net earnings of the grantee, the valuation to be determined, after hearing
evidence, by the Supreme Court of the Islands, sitting as a board of
arbitrators, whose decision, by a majority of the members thereof, shall be
final.”
“PART TWO,
“PAR. 2. The Municipal Board, with the approval of the Advisory

Board and the Commission, shall have authority to fix from time to time,
by ordinance, the prices at which such current shall be furnished to private
persons or corporations within the limits of the city of Manila as now or
hereafter established and to the city and the Insular Government : Provided
always, That the prices so fixed shall be reasonable ; and in case the
Municipal Board shall disagree with the Advisory Board as to reasonable
rates, then the Commission shall fix them.”
“PAR. 9. The grantee shall be liable to pay the same taxes upon its
real estate, buildings, plant (not including poles, wires. transformers, and
insulators), machinery, and personal property as other persons are or may
be hereafter required by law to pay. In consideration of Part Two of the
franchise herein granted, to wit, the right to build and maintain in the city
of Manila and its suburbs a plant for the conveying and furnishing of electric
current for light, heat, and power, and to charge for the same, the grantee
shall pay to the city of Manila two and a half per centum of the gross
165
earnings received from its business under this franchise in the city and its
suburbs : Provided, That two and a half per centum of the gross earnings
from the business of the line to Malabon shall be paid to the Province of
Rizal. Said percentage shall be due and payable at the time stated in
paragraph nineteen of Part One hereof and after an audit like that provided
in paragraph twenty of Part One hereof, and shall be in lieu of all taxes and
assessments of whatsoever nature and by whatsoever authority upon the
privileges, earnings, income, franchises, and poles, wires, transformers,
and insulators of the grantee, from which taxes and assessments the grantee
is hereby expressly exempted.”
Second. A new paragraph. to be known as paragraph two (a), shall be

inserted between paragraph two and paragraph three of Part One of said
Ordinance Numbered Forty-four, which paragraph two (a) shall read as
follows :
“PAR. 2. (a) The Manila Electric Railroad and Light Company shall
be authorized to make excavations and constructions for the purposes
prescribed in Part One of said Ordinance Numbered Forty-four, upon such
further streets, thoroughfares, bridges, and public places within the city of
Manila as may, from time to time, be approved by the Municipal Board.”
Third. Paragraph eighteen of Part One of said Ordinance Numbered

Forty-four shall be repealed.
SEC. 3. The franchise over the streets in subparagraph (m) of

paragraph two of Part One named shall become operative whenever such
of said streets as are not now open shall be constructed in pursuance of
section eight of this Act.
SEC. 4. A franchise is hereby granted to the Manila Electric Railroad

and Light Company to extend the line along the main road from Manila to
Malabon provided for in the last clause of subparagraph (I) of paragraph
two of Part One of said Ordinance Numbererl Forty-four as directed to be
amended by section two of this Act, from the limits of the city of Manila to
the principal square of the town of Malabon, upon the terms and conditions
of said Ordinance Numbered Forty-four, as directed to be amended by this
166
Act : Provided, That paragraphs five. seven, and nine of Part One of said
Ordinance Numbered Forty-four shall not be operative as to the franchise
for said line to Malabon ; But provided further, That the tracks of said line
to Malabon shall be laid to such grade, and the roadbed and eighteen inches
on each side thereof shall be maintained in such condition, as will not
unreasonably interfere with the traffic over the highway on which said line
runs : And provided further, That said roadbed and eighteen inches on each
side thereof, and said grade, shall be maintained to the reasonable
satisfaction of the proper authorities : And Provided further, That the rights
which the grantee acquires under this section to charge the fares provided
for in paragraphs fifteen and seventeen of section two of this Act shall not
be affected by any future extension of the city limits.
SEC. 5. ln lieu of the payment of two and one-half per centum of the
fares collected and tickets sold by the Manila Electric Railroad and Light
Company on the line to Malabon without the city limits of Manila, to
municipal authorities of the Province of Rizal, and in lieu of the inspection
by said municipal authorities of the accounts of the company at the end of
each month. as provided in paragraphs nineteen and twenty of Part One of
said Ordinance Numbered Forty-four, the Manila Electric Railroad and
Light Company shall pay said two and a half per centum of fares collected
and tickets sold on the line to Malabon, without the city limits of Manila,
to the provincial treasurer of the Province of Rizal, who shall inspect the
record of fares so collected and who shall audit and approve the accounts
of the company at the end of each month, and the provincial treasurer of
the Province of Rizal shall distribute to the proper municipalities the
amounts paid in by the Manila Electric Railroad and Light Company in
accordance with the provisions hereof.
SEC. G. The Manila Electric Railroad and Light Company is hereby

granted a franchise to construct, maintain, and operate a light, heat, and
power system coextensively with the said line to Malabon and upon the
terms of Part Two of said Ordinance Numbered Forty-four, as directed to
be amended by this Act.
SEC. 7. Paragraphs five. seven, and nine of Part One of said Ordinance
Numbered Forty-four shall not be applicable to the franchise contained in
167
said Ordinance Numbered Forty-four, as directed to be amended by this

Act, along the main road from Manila to Malabon, beginning at Tondo
station, near the Bridge of Pretil, to the limits of the city as described in
subparagraph (I) of paragraph two of Part One of said ordinance, as directed
to be amended by this Act : Provided. That the tracks of said line to Malabon
shall be laid to such grade, and the roadbed and eighteen inches on each
side thereof shall be maintained in such condition as will not unreasonably
interfere with the traffic over the highway on which said line runs : And
Provided further, That said roadbed and eighteen inches on each side thereof
and said grade shall be maintained to the satisfaction of the engineer of the
city of Manila.
SEC. 8. The city of Manila shall immediately proceed to open all

streets not now opened, designated in subparagraph (m) of paragraph two
of Part One of said Ordinance Numbered Forty-four as herein amended
and, immediately upon the completion of said streets, the Manila Electric
Railroad and Light Company shall commence the construction of the line
authorized in said subparagraph (m) of paragraph two of Part One and
pursue the construction of said line diligently to its completion.
SEC. 9. The Manila Electric Railroad and Light Company shall

remove all tracks, switches, and other obstructions of whatever character
heretofore placed in the streets of the city of Manila by the Compania de
los Tranvias de Filipinas, and restore all streets, or parts of streets, occupied
by the same to a good and passable condition to the satisfaction of the city
engineer.
SEC. 10. The amendments to Ordinance Numbered Forty-four herein

directed to be made by the Municipal Board shall be enacted upon the
filing by the Manila Electric Railroad and Light Company with the Executive
Secretary of the Philippine Islands of its acceptance in writing of the terms
of the foregoing Act and the surrender in writing by proper corporate action
to the Government of the Philippine Islands of the franchises, and all
amendments thereto, of said Conipania de los Tranvias de Filipinas.
168

ENACTED, April 11. 1904.
169
ACT NO. 1157
AN ACT TO SUSPEND ALL TAXES IMPOSED BY LAW ON DRAFT

CARTS AND SLEDGES IN THE PROVINCE OF ISABELA
Whereas the Province of Isabela is without improved roads which would

be injured by the use of carts with narrow tires, or with wheels rigid with
the axles, or by sledges: Therefore,

Commission, that:
SECTION 1. The tax imposed by paragraph (j) of section forty-

three of the Municipal Code, as amended by section one of Act Numbered
Seven hundred and seventy-four, entitled “An Act amending Act Numbered
Eighty-two, entitled ‘A general Act for the organization of municipal
governments in the Philippine Islands,’ by imposing a tax upon sledges,
and making it the duty of provincial boards to designate improved roads in
the several provinces upon which it shall be unlawful to use certain carts
and sledges,” is hereby suspended in its application to the Province of
Isabela.
of “Act prescribing the order of procedure by the Commission in the
170
ACT NO. 1160

PHILIPPINE ISLANDS TO CLEAR FOREIGN VESSELS FOR
THE PORT OF ISABELA DE BASILAN

Commission, that:
SECTION 1. The Collector of Customs for the Philippine Islands is

hereby authorized to clear foreign vessels for the port of Isabela de Basilan,
under such conditions and regulations as may impose: Provided, That all
expense incident to the entrance of a foreign vessel into the port of Isabela
de Basilan shall be a charge against such vessel and shall be collected
before the vessel is granted a foreign clearance.
171
ACT NO. 1223
AN ACT GRANTING TO CHO HANG LIN, OF MANILA, PHILIPPINE

ISLANDS, A REVOCABLE LICENSE TO CONSTRUCT,
OPERATE, AND MAINTAIN A SLIPWAY OR MARINE RAILWAY
ON THE WEST BANK OF THE ILOILO RIVER, IN THE
MUNICIPALITY OF ILOILO, PROVINCE OF ILOILO, ISLAND
OF PANAY

Commission, that:
SECTION 1. Cho Hang Lin, of the city of Manila, Philippine Islands,

is hereby granted a revocable license to construct, operate, and maintain a
slipway or marine railway consisting of one or more slips on that portion
of the west bank of the Iloilo River, in the municipality of Iloilo, Province
of Iloilo, Island of Panay, which is bounded upon the north and west by
property claimed by Cornelio Melliza, on the south by lands claimed by
Ynchausti and Company, and on the east by the waters of the Iloilo River.
SEC. 2. The slipway or marine railway and the machinery, appliances,

and auxiliaries of said slipway or marine railway must be so constructed
and placed as not to obstruct or injuriously to interfere with the free and
convenient navigation of the Iloilo River; and in no event shall said slipway
or marine railway, or any of the machinery, appliances, or auxiliaries thereof,
extend into the Iloilo River to a point more than fifty feet beyond the present
low-water line.
SEC. 3. Said slipway or marine railway must be constructed

according to detailed plans approved in writing by the Consulting Engineer
to the Commission, and such plans shall be submitted by the said Cho
Hang Lin to the Consulting Engineer to the Commission for official action
Within forty days after the passage of this Act.
SEC. 4. Said slipway or marine railway shall not be put in operation

or opened for public use until the same has been inspected and a permit to
172
operate it and open it for public use shall have been issued by the Consulting
Engineer to the said Cho Hang Lin.
SEC. 5. Whenever it is decided by the Philippine Commission that

said slipway or marine railway, or the machinery, appliances, or auxiliaries
thereof, constitute an interference with the free or convenient navigation
of the Iloilo River, or that space occupied by said slipway or marine railway,
or by the machinery, appliances, or auxiliaries thereof, is necessary for the
improvement of the river or harbor or for the protection of convenience of
navigation, it shall be the duty of Cho Han Lin, his lessees, grantees, or
successors in interest, to remove within the time to be specified by the
Consulting Engineer to the Commission any part of or portion of said
slipway or marine railway, or the machinery, appliances, or auxiliaries of
said slipway or marine railway, constituting an interference with the free
or convenient navigation of the Iloilo River, or occupying space necessary
for the improvement of the river or harbor or for the protection or
convenience of navigation.
SEC. 6. The grantee of this revocable license shall begin the

construction of said slipway or marine railway within ninety days, and
shall fully complete said slipway or marine railway and put the same in
operation for the public convenience within one year after the passage of
this Act; and for a failure to begin the work of construction within the time
limited by this section, or to put said slipway or marine railway in full
operation for the public convenience within the time herein prescribed, the
license granted by this Act to construct, maintain, and operate said slipway
or marine railway shall be forfeited and revoked.
SEC. 7. The rates to be charged for the use of said slipway or marine
railway, or for services rendered by said slipway or marine railway, shall
always be subject to examination and regulation by Act of the Commission
or other legislative authority of these Islands.
SEC. 8. The grantee of this revocable license, his lessees, grantees,

or successors in interest, shall at all times maintain said slipway or marine
railway in good repair to the satisfaction of the Consulting Engineer to the
173
Commission, and in a suitable state of efficiency for the proper carrying

out of the work for which said slipway or marine railway is constructed.
SEC. 9. The revocable license granted by this Act to Cho Hang Lin
shall not be assigned, transferred, let, or sublet without the authorization
and consent of the Philippine Commission.
SEC. 10. The license granted by this Act may be revoked at any time
by Act of Commission.
174
ACT NO. 1256
AN ACT GRANTING TO JUAN BAUTISTA FERNANDEZ, OF CEBU,

ALICENSE TO CONSTRUCT, OPERATE, AND MAINTAIN A
SLIPWAY OR MARINE RAILWAY ON A TRACT OF LAND
SITUATED IN THE BARRIO OF GANGHANA, IN THE
MUNICIPALITY OF OPON, PROVINCE OF CEBU

Commission, that:
SECTION 1. Juan Bautista Fernandez, of the municipality of Cebu,

Province of Cebu, his successors and assigns, is hereby granted a license to
construct, operate, and maintain a slipway or marine railway for the period
of fifty years, consisting of one or more slips, in that portion of the waters
lying between the Island of Cebu and the Island of Mactan which constitutes
the water front of a tract of land owned by the said Juan Bautista Fernandez
in the barrio of Ganghana, in the municipality of Opon, in the Province of
Cebu.
SEC. 2. Said slipway or marine railway must be constructed

according to detailed plans approved in writing by the Consulting Engineer
to the Commission, and such plans shall be submitted for such approval by
the said Fernandez within forty days after the passage of this Act.
SEC. 3. Said slipway or marine railway shall not be put in operation

or opened for public use until the same has been inspected and a permit to
operate it and open it for public use shall have been issued by the said
Consulting Engineer to the said Fernandez.
SEC. 4. The grantee of this license shall begin the construction of

said slipway or marine railway within ninety days, and shall fully complete
said slipway or marine railway and put the same in operation for the public
convenience within eighteen months after the passage of this Act; and for a
failure to begin the work of construction within the time limited by this
section, or to put said slipway or marine railway in full operation for the
175
public convenience within the time herein prescribed, the license granted
by this Act to construct, maintain, and operate said slipway or marine railway
shall be forfeited and revoked.
SEC. 5. The rates to be charged for the use of said slipway or marine
railway, or for services rendered by said slipway or marine railway, shall
always be subject to examination and regulation by Act of the Commission
or other legislative authority of these Islands.
SEC. 6. The grantee of this license, his lessess, grantees, or successors

in interest, shall at all times maintain said slipway or marine railway in
good repair to the satisfaction of the Consulting Engineer to the Commission,
and in a suitable state of efficiency for the proper carrying out of the work
for which said slipway or marine railway is constructed. The duly authorized
agent of the Government of the Philippine Islands shall always have the
right to enter and examine any and all parts of said property at any time,
either in person or by agent.
SEC. 7. The grantee of this license, his lessees, grantees, or successors

in interest, shall pay annually to the Government of the Philippine Islands
one-half of one per centum per annum of the gross receipts derived from
the operation of said slipway or marine railway from and after the date of
the acceptance of this license. Said payment shall be made on the fifteenth
day of January of each and every year for the year preceding, and any
accredited officer of the Insular Government shall, upon demand, have the
right to examine and inspect the books of the grantee, his successors or
assigns, for the purpose of ascertaining the gross receipts of the said slipway
or marine railway for any year; but nothing in this section shall be construed
to interfere with the rights of the municipal, provincial, or Insular
Government to assess taxes upon the land in question or improvements
thereon, nor shall it affect the right of the Government to assess and collect
any business or income tax on his business.
SEC. 8. The license granted herein is subject to amendment,

alteration, or repeal by the Congress of the United States as provided in
section seventy-four of Act of Congress approved July first, nineteen
176
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.”
177
ACT NO. 1258
AN ACT MAKING ADDITIONAL PROVISIONS TO THOSE

CONTAINED IN ACT NUMBERED ONE HUNDRED AND
NINETY, RELATING TO THE EXERCISE OF THE RIGHT OF
EMINENT DOMAIN IN CASES WHERE THE EXERCISE OF
SUCH POWER IS INVOKED BY A RAILROAD CORPORATION
FOR THE PURPOSES OF CONSTRUCTING, EXTENDING, OR
OPERATING ITS LINE

Commission, that:
SECTION 1. In addition to the method of procedure authorized for

the exercise of the power of eminent domain by sections two hundred and
forty-one to two hundred and fifty-three, inclusive, of Act Numbered One
hundred and ninety, entitled “An Act providing a Code of Procedure in
civil actions and special proceedings in the Philippine Islands,” the
procedure in this Act provided may be adopted whenever a railroad
corporation seeks to appropriate land for the construction, extension, or
operation of its railroad line.
SEC. 2. In case a railroad corporation is authorized to occupy any

part of the public domain for the purpose of construction, extension, or
operation of its line, it shall occupy only such portions of the public domain
as are by its charter authorized, and the manner of acquiring possession
thereof shall be such as is by its charter especially defined.
SEC. 3. Whenever a railroad corporation is authorized by its charter,

or by general law, to exercise the power of eminent domain in the city of
Manila or in any province, and has not obtained by agreement with the
owners thereof the lands necessary for its purposes as authorized by law, it
may in its complaint, which in each case shall be instituted in the Court of
First Instance of the city of Manila if the land is situated in the city of
Manila, or in the Court of First Instance of the province where the land is
situated, join as defendants all persons owning or claiming to own, or
178
occupying, any of the lands sought to be condemned, or any interest therein,

within the city or province, respectively, showing, so far as practicable, the
interest of each defendant and stating with certainty the right of
condemnation, and describing the property sought to be condemned. Process
requiring the defendants to appear in answer to the complaint shall be served
upon all occupants of the land sought to be condemned, and upon the owners
and all persons claiming interest therein, so far as known. If the title to any
lands sought to be condemned appears to be in the Insular Government,
although the lands are occupied by private individuals, or if it is uncertain
whether the title is in the Insular Government or in private individuals, or
if the title is otherwise so obscure or doubtful that the company cannot
with accuracy or certainty specify who are the real owners, averment may
be made by the company in its complaint to that effect. Process shall be
served upon residents and non-residents in the same manner as provided
therefor in Act Numbered One hundred and ninety, and the rights of minors
and persons of unsound mind shall be safe-guarded in the manner in such
cases provided in said Act. The court may order additional and special
notice in any case where such additional or special notice is, in its opinion,
required.
SEC. 4. Commissioners appointed in pursuance of such complaint,

in accordance with section two hundred and forty-three of Act Numbered
One hundred and ninety, shall have jurisdiction over all the lands included
in the complaint, situated within the city of Manila or within the province,
as the case may be, and shall be governed in the performance of their duties
by the provisions of sections two hundred and forty-four and two hundred
and forty-five, and the action of the court upon the report of the
commissioners shall be governed by section two hundred and forty-six, of
Act Numbered One hundred and ninety.
SEC. 5. In case it shall appear from the pleadings or from the report
of the commissioners, or the court shall otherwise be satisfied of the fact,
that the true ownership of the lands sought to be condemned is uncertain
and that there are conflicting claims to and diverse interests in any parcel
of land sought to be condemned, the court, if satisfied that the real owners
of the land have been notified and are before the court, shall, upon rendering
judgment for condemnation and for payment of the sum or sums fixed by
179
the court as just compensation for the land taken, order such sum or sums
to be paid to the clerk of the court for the benefit of the persons who shall
ultimately be adjudged entitled thereto. The sum or sums so awarded shall
be governed by the rules laid down in section two hundred and forty-four
of Act Numbered One hundred and ninety. Upon the payment by the plaintiff
to the defendants of compensation as fixed by the judgment, or after tender
to the defendants of the amounts so fixed and payment of the costs, or in
case the court shall order the compensation paid into court in accordance
with the provisions of this section, the plaintiff shall have the right to enter
in and upon the land so condemned, and to appropriate the same to the
public use defined in the judgment. In case such payment is made into
court, the clerk of the court shall be responsible upon his bond for the sum
so paid and shall be compelled to receive it. The effect of a bill of exceptions
in such case, the provisions as to costs, as to the fees of the commissioners,
as to final judgment and its record and effect, as to the powers of a guardian,
and as to persons not notified of the condemnation proceedings, shall be
such as are defined in sections two hundred and forty-eight to two hundred
and fifty-three, inclusive, of Act Numbered One hundred and ninety.
SEC. 6. Any party claiming an interest in money paid into court in

accordance with the provisions of the preceding section may litigate in
court his claim thereto, and the court shall apportion the sum so paid in
among the various claimants thereto as justice shall require, and shall award
such costs as to it may seem equitable, but the plaintiff in the condemnation
proceedings shall not be a necessary party to the proceedings for the
distribution of the sum or sums paid into court, nor be answerable for any
costs arising from such litigation.
SEC. 7. The commissioners appointed to investigate and report upon

damages to be awarded in condemnation proceedings under this Act may
receive a greater compensation than that fixed by section two hundred and
fifty, should the court in its order appointing the commissioners fix a greater
compensation than that allowed by section two hundred and fifty of Act
Numbered One hundred and ninety, but not to exceed ten pesos per day in
all for each commissioner. If additional compensation is to be allowed, the
sum to be allowed shall be fixed in the order of appointment.
180
SEC. 8. The court, in its order of appointment, may direct the

commissioners to report when any particular portion of the lands situated
within the city of Manila or in any province shall have been passed upon
by the commissioners, and may render judgments upon such partial report,
and direct the commissioners to proceed with their work as to subsequent
portions of the land sought to be condemned, and may from time to time so
deal with lands sought to be condemned within the city of Manila or
province, as the case may be.
SEC. 9. The proper judge of the Court of First Instance may act
upon complaints for condemnation of lands under this Act in vacation time
as well as in term time, and may make appointments of commissioners,
orders upon the reports of commissioners, and judgments of condemnation
and for the awarding and apportioning of damages, at any time when it is
convenient so to do, upon due notice to the parties in interest, and may
make any orders to expedite proceedings in the same manner and to the
same effect as though made in regular term time and in court. It shall be the
duty of the court or judge to expedite these proceedings as much as the
interests of justice will warrant.
SEC. 10. No judgments entered in pursuance of this Act, apportioning

damages among rival claimants, shall be conclusive as to the real ownership
of the land affected thereby in proceedings in the Court of Land Registration
for the purpose of obtaining a certificate of title.
181
ACT NO. 1288
AN ACT AUTHORIZING AND DIRECTING REGISTERS OF DEEDS

TO PERFORM CERTAIN DUTIES OF COMMERCIAL
REGISTERS AS DEFINED IN TITLE TWO OF THE CODE OF
COMMERCE, AND PROVIDING THAT THE DOCUMENTING,
REGISTRY, ENROLLMENT, AND LICENSING OF VESSELS IN
ACCORDANCE WITH THE CUSTOMS ADMINISTRATIVE ACT
AND THE CUSTOMS RULES AND REGULATIONS SHALL BE
DEEMED TO BE A REGISTRY OF VESSELS WITH THE
MEANING OF SAID TITLE

Commission, that:
SECTION 1. Registers of deeds and provincial treasurer who are

performing the duties of registers of deeds are hereby authorized and directed
to perform the duties of commercial registers as defined in Title Two of the
Code of Commerce: Provided, however, That such registers of deeds shall
not be required to register vessels or to keep a register of vessels in said
title.
SEC. 2. The documenting, registering, enrolling, and licensing of

vessels in accordance with the Customs Administrative Act and customs
rules and regulations shall be deemed to be a registry of vessels within the
meaning of Title Two of the Code of Commerce, unless otherwise provided
in said Customs Administrative Act or in said customs rules and regulations.
182
ACT No. 1310
AN ACT TO ENCOURAGE AND AID THE PHILIPPINE COASTWISE

TRADE, TO SECURE THE CARRIAGE OF MAILS,
GOVERNMENT FREIGHT AND PASSENGERS BY
COMMERCIAL VESSELS UNDER CONTRACT, TO EFFECT
UNIFORM REASONABLE RATES FOR THE GOVERNMENT
AND PUBLIC, TO INCREASE THE SAFETY STANDARDS AND
SERVICE OF CONTRACTING VESSELS, AND FOR OTHER
PURPOSES

Commission, that:
SECTION 1. The Secretary of Commerce and Police is hereby

authorized and directed to publish proposals in the United States and in the
Philippine Islands, asking for bids for the carriage of mails, Government
freight and passengers in the Philippine coastwise trade by vessels, and,
subject to the approval of the Commission, to enter into contract or contracts
therefor, under the following general conditions:
(a) Instructions to bidders, specifications, and forms of contracts

shall be placed on file for distribution at the Bureau of Insular Affairs,War
Department, Washington, and the office of the Secretary of Commerce and
Police, Manila.
(b) The contract or contracts shall be for a period of five years, except
as herein after provided.
(c) Bidders shall agree to extend to the public the same rates at which
they contract to carry Government freight and passengers, and to give the
Government as good rates as the lowest offered to the public: Provided,
That in case the contracting parties shall desire to lower the rates to the
public and not to the Government such action may be taken with the previous
consent of the Secretary of Commerce and Police: Provided always, That
the rates offered to the public be uniform and non-discriminating.
183
(d) The successful bidders shall take immediate steps to provide such
alterations and repairs as will bring their vessels up to the standards of
safety, sanitation, and comfort prescribed by the contract or contracts. Blank
forms of such proposed contracts shall be kept on file for the examination
of proposed bidders.
(e) All contracting vessels shall continue to be subject to the general

coastwise, navigation, sanitary, and quarantine laws of the Philippine
Islands.
(f) Bidders are invited, in making their bids, to quote rates for
transportation from wharf to wharf or from warehouse to warehouse, and
such rates shall be considered in determining which is the most advantageous
bid.
(g) Bidders shall be notified that they may submit alternate bids,
one complying with the instructions and specifications prescribed by the
Government, and another, or others, offering such modifications as may to
bidders seem advantageous in regard to term of contract or contracts, routes,
schedules, size and speed of vessels, but making no modifications as to the
standards of safety, sanitary arrangements, and quality of passenger service.
The Government shall retain the right to accept such bid or bids as may
seem to it most advantageous, or to reject all bids.
(h) In case bidders offer better terms than can be otherwise obtained
upon condition that the contract be made for a period exceeding five years,
the Secretary of Commerce and Police, with the approval of the Commission,
is authorized to accept said offer or offers, with a proviso in the contract or
contracts that the Government may, at any time after five years, upon giving
due notice to the contracting parties, terminate the contract or contracts by
submitting to arbitration the question of any indemnity to the contracting
parties for loss sustained by reason of preparations made for compliance
with the terms of the contract; but such arbitration shall be limited to fixing
the proportionate amount of money lost by reason of the termination of the
contract or contracts before the expiration of the period exceeding five
years contracted for, and shall not include any “profits lost” or potential
earnings.
184
(i) The Government shall take precedence in the matter of securing

accommodations for both passengers and freight by giving to the contracting
party or his authorized agent a reasonable notice of not less than forty-
eight hours in advance of the sailing time of the vessels, but in cases of
public emergency such notice shall not be necessary.
(j) For the sake of prompt service, vessels belonging to the Insular
Government shall be allowed to transport mails, passengers, and freight
between points covered by vessels under contract when the element of
time is important, but provision may be made in the contract that in such
cases an equitable portion of the net proceeds arising therefrom shall be
turned over to the contracting parties affected by such carriage: Provided,
That no payment shall be made to the contracting parties in the case of
tours for the purpose of inspection or for official duty made by the Insular
Government officials upon Government vessels.
(k) Officers charged with the inspection of vessels under contract

shall be furnished free transportation, subsistence, and the ordinary
accommodations for first-class passengers whenever said officers are
engaged in duly authorized inspections on said contracting vessels.
(l) Civil and military officers and employees traveling on leave, and
their immediate families under all circumstances, shall be granted half-
rates by contracting vessels.
SEC. 2. Whenever it is provided by this or any other Act of the

Philippine Commission or any other law or regulation in the Philippine
Islands that vessels belonging to the Insular Government may charge for
mails, Government passengers or freight or for public passengers or freight,
the proposed rates to be charged by such Government vessels shall be
submitted to the Secretary of Commerce and Police, who is hereby
authorized and directed to certify, as nearly as may be practicable, what
rates would be charged for the same service, by vessels under contract with
the Government, as herein before authorized, and the rates so certified
shall prevail.
185
SEC. 3. The office of Superintendent of Interisland Transportation is

hereby created at an authorized salary of six thousand pesos per annum.
The officer shall be appointed by the Governor-General, by and with the
consent of the Philippine Commission, and shall be under the supervision
and control of the Chief of Coast Guard and Transportation.
The Superintendent of Interisland Transportation shall keep advised

of the movement of all vessels of the Government and of the contracting
parties, publishing from time to time notices of the same. He shall record
and tabulate data as to rates, schedules, accommodations, and so forth,
receive all complaints in regard to service, inequality of rates, or other
failure to comply with the terms of the contract, and shall see generally to
the enforcement of all provisions of the contract or contracts entered into
under section one hereof. He shall issue either personally or by authorized
agent all orders for transportation of official passengers and freight on
Government and contracting vessels, and shall perform such other duties
as the Chief of Coast Guard and Transportation may direct.
SEC. 4. All Bureaus or Offices of the Insular Government maintaining

vessels shall keep an accurate account of the passengers and freight carried
on such vessels for other branches of the Insular Government, and
settlements for the same shall be made with the Bureau or Office performing
the service at regular intervals of not less than once in six months.
SEC. 5. All vessels belonging to the Insular Government making

trips on other than regular schedules, shall carry the mails free of charge,
and all Government vessels required to carry the mails shall be subject to
such rules and regulations as may be prescribed by the Secretary of
SEC. 6. Vessels belonging to the Bureau of Coast Guard and

Transportation, running in regular schedules, shall be paid by the Bureau
of Posts for mail service furnished by said vessels at a rate based upon the
rate charged by commercial vessels under contract, the exact amount of the
compensation to be determined by the Secretary of Commerce and Police;
but the Bureau of Posts may in part or full payment thereof, maintain on
186
board the Coast Guard vessel or vessels a postal clerk or clerks for the joint
service of the two Bureaus.
SEC. 7. The Chiefs of all Bureaus or Offices of the Insular

Government maintaining or operating vessels are hereby directed to keep
the Superintendent of Interisland Transportation duly informed of the
location, general duties, intended movements, and so forth, of their
respective vessels, in order that such vessels may be fully utilized.
SEC. 8. All vessels belonging to the Insular Government and assigned

to Bureaus which have no special inspection officers shall be regularly
inspected by the official hull and boilder inspectors of the Philippine Islands,
and shall not be permitted to operate without the regular certificates of
such inspecting officers.
SEC. 9. For the purposes of maintenance, inspection, and furnishing

officers and crew, all launches belonging to the Insular Government which
are assigned temporarily to the provinces or Bureaus and Offices of the
Insular Government shall be under the control of the Bureau of Coast Guard
and Transportation and a charge sufficient to cover all operating expenses,
repairs, wear and tear, and so forth, shall be made by the Bureau of Coast
Guard and Transportation, subject to the approval of the Secretary of
SEC. 10. As soon as the Superintendent of Interisland Transportation

shall have been appointed, so much of Act Numbered One hundredand
ninety-eight of the Philippine Commission as authorizes and directs the
Insular Purchasing Agent to make contracts with interisland vessels for
transportation of Government employees shall stand repealed, and all other
Acts or parts of Acts, in so far as the same are inconsistent with this Act,
are hereby repealed.
SEC. 11. This Act shall take effect April first, nineteen hundred and
five.
187
ACT NO. 1339

AN ACT TRANSFERING TO THE OFFICE OF THE IMPROVEMENT
OF THE PORT OF MANILA, WHICH SHALL HEREAFTER BE
KNOWN AS THE OFFICE OF PORT WORKS, THE DUTY OF
SUPERVISING THE CONSTRUCTION OF THE PORT WORKS
AT CEBU AND ILOILO, AND FOR OTHER PURPOSES

Commission, that:
SECTION 1. The supervision and direction of the improvements in

the harbors of Cebu and Iloilo are hereby delegated to the Officer in Charge
of the Improvement of the Port of Manila, whose office shall hereafter be
known as the Office of Port Works, and who shall hereafter be designated
as the Officer in Charge of Port Works, and shall be under the general
supervision of the Secretary of Commerce and Police; and all property,
plans, and documents now in the possession of the Bureau of Engineering,
which were purchased for use in connection with such work, or which
have reference to the same, shall be inventoried and transferred to the Office
of Port Works.
SEC. 2. The Officer in Charge of Port Works shall have charge of all
surveys and investigations of navigable rivers, harbors, and other navigable
waters in the Philippine Islands, except such as are by law assigned to the
Bureau of Coast and Geodetic Survey, and the time and services of the
various employees now employed in the Office of the Improvement of the
Port of Manila are hereby made available for the general purposes of the
Office of Port Works as provided herein.

188
ACT NO. 1340
AN ACT AUTHORIZING THE BOARD OF HEALTH FOR THE

PHILIPPINE ISLANDS TO PROMULGATE QUARANTINE
REGULATIONS FOR THE GOVERNMENT OF VESSELS
ENGAGED IN THE COASTWISE TRADE OF THE PHILIPPINE
ISLANDS

Commission, that:
SECTION 1. The Board of Health for the Philippine Islands shall,

with the approval of the Secretary General of the Interior, make and
promulgate quarantine regulations for the government of vessels, entering
all ports of the Philippine Islands, except ports of entry, and fix penalties
for violations thereof: Provided, however, That such penalties shall in no
case exceed a fine of five hundred pesos, Philippine currency; such
quarantine regulations so made and promulgated shall be published at least
once in the Official Gazette, and, upon such publication, they shall have
the force and effect of law, and violations thereof may be prosecuted in any
court of competent jurisdiction.
189
ACT NO. 1341
AN ACT TO AMEND ACT NUMBERED THREE HUNDRED AND

FIFTY-FIVE, KNOWN AS THE PHILIPPINE CUSTOMS
ADMINISTRATIVE ACT, BY DECLARING ALL PORTS AND
PLACES IN THE PHILIPPINE ISLANDS OPEN TO VESSELS
LICENSED TO ENGAGE IN THE COASTWISE TRADE, AND
FOR OTHER PURPOSES
By authority of the United States, be enacted by the Philippine

Commission, that:
SECTION 1. Section one hundred and fifty-one of Act Numbered

Three hundred and fifty-five, entitled “An Act to constitute the customs
service of the Philippine Archipelago and to provide for the administration
thereof,” is hereby amended to read as follows:
“SEC. 151. All ports and places in the Philippine Islands are hereby
declared open to vessels regularly licensed to engage in the coastwise trade,
and no entrance or clearance to or from such ports shall be required, except
as provided for in sections one hundred and thirty-six and one hundred and
thirty-seven of this Act: Provided, however, That the Governor-General
may by proclamation close any port or place in the Philippine Islands to
the coastwise trade, and any vessel found entering a place so closed by
proclamation of the Governor-General shall be subject to a fine of not less
than five dollars nor more than five hundred dollars.”
SEC. 2. Section one hundred and thirty-six of said Act is hereby

amended to read as follows:
“SEC. 136. The master of every vessel licensed for carrying on the
coasting trade shall, previous to the departure of such vessel from a port of
entry, make out and subscribe duplicate manifests of the whole of the cargo
on board such vessel, specifying in such manifests the marks and numbers
of packages, the port of destination, and the names of the respective
consignees. He shall deliver such manifests to the collector or other customs
190
official duly authorized, before whom he shall swear to the best of his
knowledge and belief that the goods therein contained, if foreign, were
imported legally and that the duties thereon have been paid or secured.
Thereupon the said collector or customs official shall certify the same on
the manifests, one of which he shall return to the master with a permit
specifying thereon, generally, the lading on board such vessel, and
authorizing him to proceed to his port of destination, retaining the duplicate.
“If any vessel, being laden, and destined as mentioned in this section,
shall depart from a port of entry without the master having first made out
and submitted duplicate manifests of the lading on board such vessel in the
form and manner prescribed herein, such master shall be liable to a penalty
of not more than one hundred dollars nor less than five dollars, or one
dollar per net ton, in the discretion of the collector: Provided, however,
That the manifests specified in this section shall not be required for cargo
transported between ports in the Philippine Islands which are not ports of
entry: And provided further, That all cargo laden on board a vessel at a port
in the Philippine Islands for transportation to a port of entry shall be
manifested by the master of the vessel as above specified.”
SEC. 3. Section one hundred and thirty-seven of said Act is hereby

“SEC. 137. The master of every vessel licensed for carrying on

coasting trade shall, previous to the unlading at a port of entry of any part
of the cargo of such vessel, deliver to the collector of customs or other
customs official residing at the port the manifest of the cargo for said port
of entry. Thereupon the collector of customs or other customs official shall
grant a permit for unlading a part or the whole of such cargo as the master
of the vessel may request.
“If the master of such vessel mentioned in this section shall neglect
or refuse to deliver said manifest at the time and in the manner directed, he
shall be liable to a penalty of not more than one hundred dollars nor less
than five dollars, or one dollar per net ton, in the discretion of the collector.”
191
SEC. 4. Section two hundred and eighty-four of said Act is hereby

“SEC. 284. The following papers shall not be issued, received,

granted, or in any manner recognized by any customs officer unless there
shall be fixed thereto a lawful customs stamp or stamps of the Philippine
Islands, representing the value in United States currency as follows, subject
to the exemptions prescribed by section one hundred and thirty-five of this
Act for vessels possessing second-class coastwise licenses:
“For each foreign clearance ………………………………………….. $2.00
“For each foreign entrance ....………………………………………… 2.00
“For each coastwise clearance (to be charged at ports of entry only)

except for vessels possessing a special license:’
“For vessels up to 75 tons, net …………………...............…… .20
“For vessels from 75 to 125 tons, net ……………...............… .50
“For vessels from 125 to 200 tons, net …………............……… 1.00
“For vessels from 200 to 300 tons, net …………............…….. 1.50
“For vessels from 300 tons, net, and upward …............……….. 2.00
“For each inward coastwise manifest (to be charged at ports of entry only)
except for vessels possessing a ‘special license:’
“For vessels up to 75 tons, net ………………….........………… .20
“For vessels from 75 to 125 tons, net ………….............……… .50
“For vessels from 125 to 200 tons, net …………...............……. 1.00
“For vessels from 200 to 300 tons, net ………...............…….... 1.50
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“For vessels from 300 tons, net, and upward …...................…. 2.00
“For each bill of health ……………………………………….........… .50
“For each outward foreign passenger list ………………………......... .50
“For each original export entry exceeding $25 in value …………….. .50
“For each original import entry exceeding $25 in value …………….. .50
“For each original withdrawal entry ………………………………… .20
“For each entry for immediate transportation in bond ……………… .50
“For each original free entry, except free entries of stores for
Government use, exceeding $10 in value ……………..………… .20
“For each original certificate ..……………………………………….. .50
“For each original bond ……………………………………………… .50
“For each copy of official document ………………………………... .50”
SEC. 5. Act Numbered Three hundred and seventy-six and section

one hundred and thirty-eight of Act Numbered Three hundred and fifty-
five are hereby repealed.
SEC. 7. This Act shall take effect on July first, nineteen hundred and
five.
193
ACT NO. 1348
AN ACT CONFERRING UPON THE MANILA ELECTRIC RAILROAD

AND LIGHT COMPANY A FRANCHISE FOR AN EXTENSION
OF ITS LINES, AND GRANTING IT THE RIGHT TO
EXPROPRIATE LAND NECESSARY FOR THE PURPOSES OF
THE COMPANY

Commission, that:
SECTION 1. The Manila Electric Railroad and Light Company is

hereby granted a franchise to extend its lines as follows: A double-track
line from the present terminus of what is known as the Malate line, at the
Pasay race track, to and along a private right of way to be acquired by the
grantee parallel to the road known as the Calle San Lucas running from
Manila to Paranaque, a distance of approximately three thousand feet,
crossing the said road at the terminus of the line and making a loop upon
property to be acquired by the grantee on the east side of said road at the
terminus herein provided for; subject to all the terms and conditions
applicable thereto set forth in Act Numbered Four hundred and eighty-four
as amended by Act Numbered Eleven hundred and twelve and Ordinance
Numbered Forty-four of the city of Manila, as amended by Ordinance
Numbered Seventy: Provided, however, That a single fare only may be
charged between any point in the city of Manila and the terminus herein
provided for.
SEC. 2. The Manila Electric Railroad and Light Company is hereby

granted the right to expropriate such real estate as may be necessary for the
purposes of the franchises granted in this Act, or for the purposes of the
franchise provided for in Act Numbered Four hundred and eighty-four as
amended by Act Numbered Eleven hundred and twelve.
194

195
ACT NO. 1354
AN ACT EXEMPTING ALL BOATS OF LESS THAN FIFTEEN GROSS

TONS FROM TAKING OUT A LICENSE TO ENGAGE IN THE
COASTWISE TRADE OF THE PHILIPPINE ISLANDS
By authority of the United States, be it enacted by the United States

Philippine Commission, that:
SECTION 1. All boats of less than fifteen gross tons are hereby
declared exempt from taking out the coastwise license required by sections
one hundred and thirty-five and one hundred and forty-one of Act Numbered
Three hundred and fifty-five of the Philippine Commission, known as the
Philippine Customs Administrative Act, and no documents shall be required
of such vessels, nor shall any fee be charged for either admeasurement or
license tax.
SEC. 2. This Act shall not be construed to authorize any refund on

account of license or other fees heretofore paid under laws in force prior to
July first, nineteen hundred and five.
SEC. 3. All Acts or parts of Acts in conflict with this Act are hereby
repealed.
five.
ENACTED, June 15, 1905.
196
ACT NO. 1366
AN ACT CREATING THE PORT OF JURATA, ON THE ISLAND OF

CAGAYAN DE JOLO, A PORT OF ENTRY, AND AMENDING
SECTION THREE HUNDRED AND ONE OF ACT NUMBERED
THREE HUNDRED AND FIFTY-FIVE, AS AMENDED
By authority of the United States, be it enacted by the United States

Philippine Commission, that:
SECTION 1. The port of Jurata, on the Island of Cagayan de Jolo, in

the Jolo collection district, is hereby created a port of entry.
SEC. 2. The following employees are hereby authorized at said port;

One collector of customs, class seven, who shall act as disbursing clerk
without additional compensation; one interpreter and clerk, Class I; and
such number of boatmen at a total expense of not to exceed twenty pesos,
Philippine currency, per month, as may be necessary for the proper conduct
of the customs business at said port.
SEC. 3. Section three hundred and one of Act Numbered Three

hundred and fifty-five, entitled “An Act to constitute the Custom Service
of the Philippine Archipelago and to provide for the administration thereof,”
as amended by Act Numbered Eight hundred and ninety-eight, is hereby
further amended by inserting, after the word “Bongao” in the eight line of
said section, the work “Jurata.”
197
ACT NO. 1387
AN ACT PROVIDING FOR THE LICENSING OF VESSELS ENGAGING

IN THE COASTWISE TRADE AND VESSELS ENGAGING
EXCLUSIVELY IN THE LIGHTERAGE AND HARBOR
BUSINESS IN THE PHILIPPINE ISLANDS, AND FIXING THE
LICENSE FEES THEREFOR

Commission, that:
SECTION 1. All vessels of the class designated in section one

hundred and seventeen of Act Numbered Three hundred and fifty-five, as
amended by Act Numbered Twelve hundred and thirty-five, of the Philippine
Commission, shall, prior to engaging in the coastwise trade, and annually
thereafter, take out a license therefor. This license shall be issued by
collectors of customs at ports of entry, and the following fees shall be
charged therefor:
(a) For vessels propelled by steam or other mechanical motive power,

one peso and fifty centavos, Philippine currency, per registered net ton;
(b) For sailing vessels and vessels not propelled by steam of

mechanical motive power, one peso, Philippine currency, per registered
net ton;
SEC. 2. All vessels of the class designated in section one of Act

Numbered Eleven hundred and thirty-six of the Philippine Commission
shall, prior to engaging in the lighterage or other exclusively harbor business,
and annually thereafter, take out a license therefor. This license shall be
issued by collectors of customs at ports of entry, and for each license issued
a fee of one peso, Philippine currency, per registered net ton, shall be
charged.
Licenses issued under authority of this section shall specify the

particular port or body of water for which issued, and no vessel shall
198
transport cargo or passengers for hire beyond the limits specified in its
license.
SEC. 3. Any license issued under authority of this Act may be

revoked, for cause, at any time by the Collector of Customs for the Philippine
Islands.
SEC. 4. This Act shall be retroactive in its effect so as to include all

licenses which have become due on and after July first, nineteen hundred
and five, and in all cases where license fees have been paid under existing
laws since that date a refund shall be paid to the licensee in an amount
equal to the difference between the license fee under existing law and that
under this Act, and appropriation is hereby made, out of any funds in the
Insular Treasury not otherwise appropriated, in such amount as may be
necessary to make the refunds hereby authorized. In all cases where license
fees have become due since said date, but have not been paid, licenses
shall be issued under this Act.
SEC. 5. All laws, or parts of laws, in conflict with this Act are hereby
repealed.
of “An Act prescribing the order of procedure b the Commission in the
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ACT NO. 1432
AN ACT TRANSFERRING THE NET INCOME ARISING FROM THE

OPERATION OF THE CUSTOMS TRAMWAY ON THE WHARF
AT JOLO TO THE GOVERNMENT OF THE MORO PROVINCE

Commission, that:
SECTION 1. The net income arising from the operation of the

customs tramway on the wharf a Jolo is hereby transferred to the
Government of the Moro Province : PROVIDED, HOWEVER, That the
control and operation of the plant and the fixing of rates for the use thereof
shall, as a regulation of commerce, remain with the Insular Government,
through the Bureau of Customs : AND PROVIDED FURTHER, That before
any of the proceeds of the plant are passed to the Moro Province the earnings
shall be applied to pay the expenses of operation and maintenance, and
reequipment, when necessary, and the extension of the plant in accordance
with the necessities of trade; and that for this purpose a reserve fund of not
less than four thousand pesos shall be established from the earnings, to be
maintained at that minimum figure from the receipts of the plant: AND
PROVIDED FURTHER, That any surplus receipts above said reserve fund
may be used in the discretion of the Government of the Moro Province for
the enlargement of the wharf and repairs thereto, and for other improvements
and facilities directly to the advantage of the merchants, importers, exporters,
and shippers who pay for the use of said plant in the form of arrastre charges,
or otherwise.
200
ACT NO. 1435
AN ACT AMENDING ACT NUMBERED ELEVEN HUNDRED AND

ELEVEN ENTITLED “AN ACT GRANTING A FRANCHISE TO
CHARLES W. CARSON TO CONSTRUCT, MAINTAIN, AND
OPERATE BY ANIMAL POWER A TRAMWAY WITHIN THE
LIMITS OF THE MUNICIPALITY OF DAET, IN THE PROVINCE
OF AMBOS CAMARINES, FROM THE WHARVES OF THE
BARRIO OF MERCEDES, IN SAID MUNICIPALITY, TO THE
TOWN PROPER OR POBLACION OF DAET, AND THROUGH
THE SAID TOWN OF DAET TO A POINT ON THE PUBLIC
HIGHWAY ONE MILE DISTANT FROM THE MUNICIPAL
BUILDING OF SAID MUNICIPALITY OF DAET IN THE
DIRECTION OF THE TOWN OFTALISAY”

Commission, that:
SECTION 1. Act Numbered Eleven hundred and eleven, entitled

“An Act granting a franchise to Charles W. Carson to construct, maintain,
and operate by animal power a tramway within the limits of the municipality
of Daet, in the Province of Ambos Camarines, from the wharves, of the
Barrio of Mercedes, in said municipality, to the town proper or poblacion
of Daet, and through the said town of Daet to a point on the public highway
one mile distant from the municipal building of said municipality of Daet
in the direction of the town of Talisay,” is hereby amended as follows:
(a) By striking from the title of said Act the words “one mile distant
from the municipal building of said municipality of Daet in the direction of
the town of Talisay” and substituting therefor “in front of the almacen or
store building known as the Diego Liñan Almacen.”
(b) By striking from section one of said Act the words “one mile
distant from the municipal building of Daet in the direction of the town
proper or poblacion of Talisay,” and substituting therefor the words “in
front of the almacen or store building known as the Diego Liñan Almacen.”
201
(c) By striking out the words “supervisor of the province” where

they occur in the second to last line of section two of said Act, and the
word “supervisor” where it occurs in the last line of said section, and
substituting therefor in each case the words “Director of Public Works.”
(d) By striking out the words “Consulting Engineer” and

“Consulting Engineer to the Commission” wherever they appear in said
Act and inserting in lieu thereof the words “Director of Public Works.”

202
ACT NO. 1439
AN ACT PROVIDING A METHOD OF ENABLING MASTERS OF

SHIPS INCERTAIN CASES TO SECURE THE RETURN TO
THEIR SHIPS OF SEAMEN WHO HAVE DESERTED
THEREFROM IN THE PHILIPPINE ISLANDS

Commission, that:
SECTION 1. On application of a consul or vice-consul of any foreign

Government having a treaty with the United States stipulating for the
restoration of seamen deserting made in writing, stating that the person
therein named has deserted from a vessel of any such Government while in
port of the Philippine Islands, and on proof, by the exhibition of the register
of the vessel, ship’s roll, or other official document, that the person named
belonged at the time of desertion to the crew of such vessel, it shall be the
duty of the Supreme Court, or of any Court of First Instance, or of any
judge thereof, or of any judge of a municipal court lawfully established in
the Philippine Islands, to issue warrants to cause such person to be arrested
for examination If, on examination, the facts stated are found to be true,
the person arrested, not being a citizen of the United States, or of the
Philippine Islands, shall be delivered up to the consul or vice-consul, to be
sent back to the dominions of any such Government, or, on request and at
the expense of the consul or vice-consul, shall be detained until the consul
or vice-consul finds an opportunity to send him back to the dominions of
any such Government. No person so arrested shall be detained more than
two months after his arrest; but at the end of that time shall be set at liberty,
and shall not be again molested for the same cause. If any such deserter
shall be found to have committed any crime or offense, his surrender may
be delayed until the tribunal before which the case shall be pending, or
may be cognizable, shall have pronounced its sentence, and such sentence
shall have been carried into effect.
203

204
ACT NO. 1446
AN ACT GRANTING A FRANCHISE TO CHARLES M. SWIFT TO

RAILWAY, AND TO CONSTRUCT, MAINTAIN, AND OPERATE
AN ELECTRIC LIGHT, HEAT, AND POWER SYSTEM FROM A
POINT IN THE CITY OF MANILA IN AN EASTERLY
DIRECTION TO THE TOWN OF PASIG, IN THE PROVINCE OF
RIZAL

Commission, that:
SECTION 1. A franchise is hereby granted to Charles M. Swift to

construct, maintain, and operate an electric railroad, either double or single
track (with the exceptions hereinafter set forth), with the necessary sidings
and turn-outs, and to construct, maintain, and operate an electric light, heat,
and power system along the line of said railroad and on all the streets and
thoroughfares in the town of Pasig, which railroad shall begin at any point
along Calle Real, Paco, Manila, between Calle Nozaleda and the San Pedro
Macati road, thence along the San Pedro Macati road to a point opposite
what is known as the English cemetery, and thence in an easterly direction,
by private right of way, or license, to be acquired by the grantee, to the
town of Pasig, in the Province of Rizal, and to such point in said town as
may be agreed upon between the municipal authorities of Pasig and the
grantee, and approved by the provincial board of the province, or, in case
of failure to agree, then to such terminal point as may be determined upon
by the Philippine Commission, crossing the Pasig River at or near the present
Pasig ferry on a steel bridge to be constructed by the grantee in accordance
with plans to be approved by the Director of Public Works; or on a private
right of way the entire route, beginning at any point on the line of the road
of the Manila Electric Railroad and Light Company on Calle Real, Paco,
between Calle Nozaleda and the San Pedro Macati road and running in an
easterly direction, crossing the Pasig River at the point and in the manner
above provided, or, at the election of the said grantee, on a private right of
way the entire route, beginning at any point on the Malate line of the Manila
205
Electric Railroad and Light Company south of the bridge across the estero
at Fort San Antonio de Abad, and running in an easterly direction, across
the Pasig River at the point and in the manner above provided, with the
privilege in any case of connecting the said road with the present line of
the Manila Electric Railroad and Light Company: Provided, That the bridge
across the Pasig River above authorized shall be so constructed as to permit
of its use as a wagon and foot bridge by the general public, and the general
public shall be entitled to use said bridge as though the same were a public
bridge without the payment of any fee or toll for said use. The grantee
shall construct the bridge complete for his use and for the use of the public
as above provided and shall thereafter keep in good and safe repair that
portion of the bridge between the outer rail and the side of the bridge, that
portion between the rails, and that portion eighteen inches outside the inner
rail. The remainder of the floor of the bridge shall be kept in repair by the
municipality of Pasig.
SEC. 2. The grantee shall have the right and privilege, and is hereby
authorized, subject to the laws now or hereafter in force, not inconsistent
herewith, to make all needful excavations and constructions in or upon any
of the streets, thoroughfares, bridges, and public places over which the
said line is authorized to run, for the purpose of placing, removing, and
repairing tracks, sidings, curves, switches, and connections, and erecting
poles, wires, and other overhead structures for the maintenance and
operation of an electric railroad and for the generation, conduction, and
distribution of electric current: Provided, That in every case where a street,
thoroughfare, or other public place is torn up or disturbed in the construction
of the electric railroad, or in the erection of poles or other overhead structures
for the maintenance and operation thereof or of an electric light, heat, and
power system, such street, thoroughfare, or other public place shall be
replaced by the grantee in good order and condition.
SEC. 3. The grantee is hereby given the right to construct upon any
street, thoroughfare, highway, or other public place outside of the city of
Manila, a single line of track only, with the necessary sidings and turn-outs
for the convenient operation of the line, unless by resolution of the Philippine
Commission he is expressly authorized to lay a double track thereon, which
206
double track, when constructed, shall be maintained and operated under

the provisions of this franchise: Provided, That any track upon any such
street, thoroughfare, highway, or other public place shall be laid to the
grade of the said street or highway, and it shall be the duty of the grantee to
maintain the road bed between the rails and for eighteen inches on each
side thereof in good and permanent repair to the reasonable satisfaction of
the proper authorities, using such material therefor as the local authorities
use for the remainder of the road: And provided further, That all such tracks
shall be so laid, constructed, and maintained as not to interfere with the
ordinary use by the general public of said street or highway, and to that end
the same shall be so laid as to leave sufficient space on one or both sides
thereof for vehicles to pass and repass without danger of collision with the
cars being operated on said tracks.
SEC. 4. The system of electric railroad to be installed by the grantee

shall be the “overhead trolley systems,” but the grantee shall have the right
and privilege to modify, improve, and change such system in such manner
as the progress of science and improvements in, and the development of,
motive power may make reasonable and proper.
SEC. 5. Standard T-rails of at least sixty pounds weight per yard

shall be used, and where the same shall pass through or over any street or
public thoroughfare, shall be laid and maintained true to the finished grade
of the said street or place; and the gauge of all tracks laid or maintained
hereunder shall be four feet eight and one-half inches.
SEC. 6. So much of the construction herein provided for as may be

within the limits of the city of Manila as now or hereafter constituted, and
upon any public road, street, highway, or place within the city limits, shall
be subject to the following terms, conditions, and limitations as to
construction, maintenance, and operation:
(a) The grantee shall in all cases lay and maintain his tracks so as to
conform to the grades of the street, thoroughfares, bridges, and public places
along or across which said tracks may be constructed, and whenever such
grades shall hereafter be established or altered by the municipal authorities
of the city of Manila the grantee shall immediately relay and maintain said
207
tracks to such established grades at his own expense: Provided, That if any
grade at which any such track is now laid is altered by the said municipal
authorities within seven years from the date hereof, the city of Manila shall
not only furnish the material to enable the grantee to conform the bed of
his tracks to the altered grade but shall also furnish the material necessary
to reconstruct the cement substructure of the track of the grantee at the new
grade: And provided further, That whenever the grade at which any such
track is laid is altered by the said municipal authorities after more than
seven years from the date hereof, the city of Manila shall furnish the
materials to enable the grantee to conform the bed of his tracks to the altered
grade, less the cement substructure of the track.
(b) The tracks, wires, and other constructions of the grantee shall
be supported by and across all bridges in the manner directed by the
municipal authorities.
(c) The poles erected by the grantee for the operation of said electric
railroad shall be of such height and shall be so located and painted as the
municipal authorities shall direct. The poles shall not be of such crooked
or ungainly appearance as to disfigure the streets.
(d) The trolley wires of the grantee may be suspended by span wires
or bracket, shall have double insulation, and shall be strung at such heights
above the ground as the municipal authorities shall direct. Feeder wires
shall be of the insulated type known as “triple braid weatherproof,” and no
overhead wire or conductor used as a trolley wire shall carry a voltage
greater than five hundred and fifty volts, direct current, and the system
used by the grantee in the generation, conduction, and distribution of electric
current for the purpose of furnishing electric light, heat, and power shall be
that known as the alternating current system: Provided, That where it is
desired to furnish heat, power, or arc lighting, direct current may be used:
And provided further, That in carrying of currents, stringing of wires,
insulation, and in all other respects the grantee shall comply with the rules
and regulations adopted, or hereafter to be adopted, by the National Board
of Underwriters of the United States for the safeguarding of the conduct
and use of electric currents in cities.
208
(e) Every motor car run by the grantee shall be equipped with a
fender of a type to be approved by the municipal authorities.
(f) The maximum rate of speed at which the grantee may operate
his cars shall be fixed by the municipal authorities wherever the same shall
be operated over or across a public street, highway, or place.
(g) Members of the police and fire departments of the city of Manila
wearing official badges shall be entitled to ride free upon the cars of the
grantee, subject to such reasonable and proper restrictions as may be
imposed.
(h) The grantee shall hold the city of Manila harmless from all
claims, accounts, demands, or actions arising out of accidents or injuries,
the road.
(i) All reasonable or proper or necessary changes on the lines or

routes of the grantee may be made by the grantee with the approval of the
municipal authorities and the consent of the Governor-General.
(j) The city of Manila shall have the privilege, without

compensation, of using the poles of the grantee for the purpose of installing,
maintaining, and operating a fire and police telegraph system.
SEC. 7. The provisions of subsections (b), (c), (d), (e), (f), (h), and
(i) of section six of this Act, which in terms apply to the city of Manila,
shall also be applicable as between the grantee and any municipalities
through which the said electric railroad or electric light, heat, and power
system may be constructed, outside of the city of Manila: Provided, however,
That the powers conferred in said subsections upon the municipal authorities
of the city of Manila shall be vested in the Governor-General.
SEC. 8. The grantee shall, at all times, keep his tracks, rolling stock,
and other construction in good condition. The grantee hereof shall, at all
times, furnish and operate cars sufficient to satisfy the public demand and
to carry comfortably all the members of the public desiring to ride thereon.
209
SEC. 9. The grantee shall be liable to pay the same taxes on his real
estate, buildings, plant (not including roadbed and track, rolling stock, poles,
and wires), machinery, and personal property as other persons are now or
hereafter by law may be required to pay. The grantee shall further pay to
the Treasurer of the Philippine Islands two and one-half per centum of the
fares collected, tickets sold, and gross receipts received from the sale of
electric light, heat and power, and two and one-half per centum of the gross
receipts for transportation of freight, baggage, and express. The said
percentage shall be due and payable monthly, and shall be in lieu of all
taxes and assessments whatsoever, under and by whatsoever authority, upon
the privileges, earnings, income, franchises, roadbed, track, rolling stock,
poles, and wires of the grantee, from which taxes and assessments the
grantee is hereby expressly exempted.
SEC. 10. The grantee shall keep a record of all the fares collected
and tickets sold and receipts from the sale of electric light, heat, and power,
and from the transportation of freight, baggage, and express, which shall
be subject to the inspection of the Auditor of the Philippine Islands, who
shall audit and approve the accounts of the grantee at the end of each month
before the payment of the said percentage tax. The accounts, when audited
and approved as herein provided, shall be final and conclusive evidence of
he liability of the grantee under the provisions of section nine of this Act,
in the absence of fraud or mistake.
SEC. 11. Whenever any franchise or right of way is granted to any

other person or corporation, now or hereafter in existence, over portions of
the lines and tracks of the grantee herein, the terms on which said other
person or corporation shall use such right of way, and the compensation to
be paid to the grantee herein by such other person or corporation for said
use, shall be fixed by the members of the Supreme Court, sitting as a board
of arbitrators, the decision of a majority of whom shall be final.
SEC. 12. At any time after March twenty-fourth, nineteen hundred

and twenty-eight, the city of Manila or the Insular Government may
purchase, and the grantee shall sell to the city of Manila or the Insular
Government, all of his lines, tracks, cars, real estate, buildings, plant, rights
under this franchise, and other property used by him in the operation of a
210
street railway in the city of Manila or in the Province of Rizal, at a valuation

based upon the net earnings of the grantee, the valuation to be determined,
after hearing evidence, by the Supreme Court of the Philippine Islands,
sitting as a board of arbitrators, whose decision, by a majority of the
members thereof, shall be final.
SEC. 13. The franchise herein granted shall be subject to amendment,

alteration, or repeal by the Congress of the United States, and the right to
use the streets and other public lands herein granted shall revert to the city
of Manila, to the provincial government of Rizal, to the proper municipal
government, or to the Insular Government, as the case may be, upon the
termination of this franchise by forfeiture, repeal, or expiration in due course.
SEC. 14. It shall be a condition for the enjoyment of this franchise

that Charles M. Swift, the grantee, shall, before six months from the date
of the passasge of this Act, form a corporation under the laws of the
Philippine Islands hereafter to be passed, or under the laws of the United
States or of any State thereof, and whose charter shall comply with the
laws prevailing in these Islands, to take over this franchise and to perform
the terms thereof to be performed by the grantee hereof, in which no stock
shall be issued or bonds sold except in exchange for actual cash or for
property at a fair valuation equal to the par value of the stocks or bonds so
issued or sold, and in which no stock or bond dividends shall be declared,
or shall transfer said franchise to the Manila Electric Railroad and Light
Company within the said six months.
SEC. 15. The books and accounts of such corporation shall be subject
to official inspection by the Auditor for the Philippine Islands or his
authorized deputies.
SEC. 16. It shall not be lawful for the grantee of this franchise or
any vendee thereof to use, employ, or contract for the labor of persons
claimed or alleged to be held in involuntary servitude.
SEC. 17. The corporation to be formed by the said Charles M. Swift

for the purpose of maintaining and operating this franchise under the laws
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of the Philippine Islands shall not have power to alienate the same except
by consent of the municipal authorities and the approval of the Governor-
General.
SEC. 18. The fare which may be charged by the grantee shall not
exceed the sum of five cents, in money of the United States, for one
continuous ride from one point to another on the railway herein authorized
to be constructed: Provided, That a fare of seven and one-half cents in
money of the United States may be charged for a ride extending from a
point on the said railway through and beyond the Fort William Mckinley
reservation in either direction. The fares charged children under sixteen
years of age going to and from school shall not exceed half the ordinary
rates of fare. The fares charged for children under seven years of age shall
not exceed the ordinary rate of half fare. Children in arms shall ride free.
The grantee shall have the power to establish reasonable regulations for
identifying those children going to and from school: Provided, That at any
time after twenty-five years from the date hereof, upon due notice from the
Chief Executive of the Philippine Islands to the grantee, the fares charged
by the grantee may be readjusted on a reasonable basis by two arbitrators,
one to be chosen by the Chief Executive of the Philippine Islands and one
by the grantee, and in case of failure of the arbitrators to agree the
readjustment shall be made by the Philippine Commission: And provided
further, That unless arrangement shall be made by the grantee with the
Manila Electric Railroad and Light Company for through cars over the
lines of both companies, the grantee herein shall maintain at the point of
junction a suitable station and convenience for passengers desiring to pass
from one line to the other.
Electric current for the furnishing of light, heat, and power under
this franchise shall be furnished under regulations of the Municipal Board
of Manila to any person within the corporate limits of the city of Manila,
residing or doing business within such distance from the main line conveying
said current as the Municipal Board of the city of Manila shall decide to be
reasonable, and to such other persons residing outside of the limits of the
city of Manila and within such reasonable distance from the main line
conveying such current as the Govenror-General shall prescribe.
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SEC. 19. The construction of the electric railroad and electric light,
heat, and power system herein provided for shall be completed and in
operation within eighteen months from the date of the passage of this Act
unless prevented by act of God, or the public enemy, usurped or military
power, martial law, riot, civil commotion, or inevitable cause; otherwise
the franchise herein granted shall become subject to forfeiture.
SEC.20. The duration of this franchise shall be until March twenty-

fourth nineteen hundred and fifty-three, unless terminated before said date
by forfeiture or surrender to the Government of the Philippine Islands.
SEC. 21. The grantee shall have the right to acquire by expropriation,
according to the existing laws or such as may hereafter be enacted, such
real estate as may be necessary for the construction, maintenance, and
operation of the railway.
SEC. 22, The rates to be charged for electric current of lighting,

heat, and power shall not exceed the rates authorized to be charged by the
Manila Electric Railroad and Light Company in the city of Manila:
PROVIDED, HOWEVER, That the rates to be charged for furnishing
electric current to Fort William Mckinley shall be agreed upon between
the War Department of the United States and the grantee.
SEC. 23. The grantee shall have the right to contract with the Manila
Electric Railway and Light Company for the purchase or sale of electric
current or power, and to lease from or to the Manila Electric Railway and
Light Company rolling stock and other equipment, and to make such
arrangements for through operation of cars as the grantee may see fit.
SEC. 24. The grantee shall have the right to transport freight and
express packages and baggage over his tracks and make reasonable charges
for the same. The right granted in this section to carry freight and express
packages and baggage over his tracks and make reasonable charges for the
same may be terminated by the Philippine Commission upon one year’s
notice to grantee.
213
SEC. 26. This Act shall take effect on its passage, but the grant of
the franchise shall not become operative unless the grantee shall, within
ninety days after the passage hereof, file with the Governor-General his
acceptance of the franchise and his agreement to comply with all the terms
of this Act.
214
ACT NO. 1447
AN ACT GRANTING PERMISSION TO THE MANILA ELECTRIC

RAILROAD AND LIGHT COMPANY TO CONSTRUCT
CERTAIN TRACKS AND OVERHEAD WORK IN THE CITY OF
MANILA AND USE THE SAME, AND TO CARRY FREIGHT AND
PARCELS OVER ITS LINES

Commission, that:
SECTION 1. Permission is hereby granted the Manila Electric

Railroad and Light Company to construct tracks and overhead work and
use the same, subject to all the terms and conditions of Ordinance Numbered
Forty-four of the city of Manila, as amended by Ordinance Numbered
Seventy, as follows:
A single track beginning at the corner of Calle Cabildo and the

southwest corner of the Ayuntamiento, passing in front of the Cathedral to
Calle Palacio, and northward on Calle Palacio to Calle Claveria, and thence
westward a double track along Calle Claveria to a point east of what is
known as “The Malecon,” thence north along the glacis parallel to the
Malecon to the Pasig River at the Anda Monument, thence west along the
Pasig River to the eastern end of the present Quartermaster’s storehouses,
and thence around the storehouses with a single-track loop, with the
necessary sidings and turn-outs.
The grantor may require the grantee to remove the said tracks and all
other construction upon one year’s notice, and if the grantee fails or refuses
to remove the same within the time specified it may be done by the grantor
at the expense of the grantee.
SEC. 2. The Manila Electric Railroad and Light Company is hereby

granted permission to carry and transport for hire freight and express parcels
and baggage over its lines, and to make a reasonable charge therefor.
215
The grantee shall pay to the Treasurer of the Philippine Islands, for
the benefit of the city of Manila and the Province of Rizal, two and one-
half per centum of the gross earnings from its business received under the
permission and license by this Act granted: PROVIDED, That the Auditor
for the Philippine Islands shall apportion such per centum between the city
of Manila and the Province of Rizal according to the earnings accruing
within the city of Manila and the Province of Rizal, in such manner as he
shall determine to be just and equitable.
The permission herein granted may be withdrawn by the Municipal

Board of the city of Manila, with the consent of the Philippine Commission,
at any time upon giving one year’s notice to the grantee.
Enacted, January 30, 1906.
216
ACT NO. 1448
AN ACT GRANTING A FRANCHISE TO WALTER E. OLSEN TO

CONSTRUCT, MAINTAIN, AND OPERATE BY STEAM
POWER A TRAMWAY FROM THE TOWN OF PANIQUE,
SITUATED ON THE LINE OF THE MANILA AND DAGUPAN
RAILROAD, PROVINCE OF TARLAC, TO THE TOWN OF
CAMILING, IN THE SAME PROVINCE, APPROXIMATELY A
DISTANCE OF TEN MILES

Commission, that:
SECTION 1. Walter E. Olsen, a citizen of the United States, upon

and, for a period of thirty-five years after the passage of this Act, to maintain
and operate by steam power a tramway over the public highway,
commencing at a point at the station of the Manila and Dagupan Railroad,
owned by the Manila Railway Company, Limited, in the jurisdiction of the
town of Panique, Province of Tarlac, and running west to and through the
poblacion or town proper of Panique, the barrios Salomague, Cabayacasan,
Aduas, Batang, Mabilang, Mariui, Matubog, Nibalio, to the town of
Camiling, and to construct and maintain such switches, sidetracks, loops,
turn-outs, and passing places as may be necessary for the convenient
operation of the tramway.
SEC. 2. The tramway shall be a single line, and with necessary

switches, sidetracks, loops, turn-outs, and passing places shall be constructed
along one side of the public road or highway mentioned in section one so
as to leave twelve feet of the width of the public road, for its entire length,
free and clear of the tracks, roadbeds, switches, sidetracks, loops, turn-
outs, and passing places of said tramway, and shall be so constructed as not
to unreasonably interfere with traffic on such road, Within the town proper
or poblacion of Panique and within the town proper or poblacion of
Camiling, and within the populated portions of the barrios mentioned in
section one, said tramway, with its switches sidetracks, loops, turn-outs,
217
and passing places shall be so constructed and located that it shall not
unreasonably interfere with traffic over the entire width of the streets or
street crossings of said towns and barrios. In case of dispute between the
municipal authorities of Panique or Camiling and the grantee as to the
location of the track in the said towns or barrios, or as to whether such
track when constructed will unreasonably interfere with traffic, the matter
shall be referred to the Director of Public Works for decision, whose
decision, when approved by the Governor-General, shall be final.
SEC. 3. The tramway shall be of two and one-half feet gauge, which
gauge may be increased or diminished by permission of the Director of
Public Works, previously obtained: PROVIDED, HOWEVER, That should
the Philippine Commission so require the grantee shall, at any time after
the expiration of five years from the granting of this franchise, increase
said gauge to one meter or to three feet six inches or four feet eight and
one-half inches, as said Commission may determine.
SEC. 4. The grantee shall begin the construction of the tramway

within six months after the acceptance in writing of this franchise and shall
fully complete the same and put it in operation for the public convenience
for its entire length within twelve months from the date of said acceptance,
and for failure to begin the work of construction or to complete the tramway
and put the same in operation for public convenience within the time and
as prescribed, the franchise hereby granted shall be forfeited and the grantee
shall be subject to the liabilities hereinafter prescribed for such failure.
SEC. 5. The materials employed in the construction of the tramway

shall be all of good class and quality and suitable for the purpose for which
they are to be used or to which they are to be applied.
SEC. 6. The grantee shall construct and maintain and keep in good
or maintenance may render necessary for the proper drainage of adjacent
lands and the road, highway, or street over which it passes, and the
construction and maintenance of said drains, culverts, and water ways shall
be under the direction and supervision of the Director of Public Works, and
218
his authorized subordinates to the extent necessary for the protection of

the public interests.
SEC. 7. All drains, culverts, and bridges constructed by the grantee

crossing the road, highways, or street shall be constructed and maintained
by the grantee for the full width of the road, highway, or street and in such
a manner as not to interfere with the traffic over the road, highway, or
street or to prevent convenient use thereof by the public.
SEC. 8. The grantee shall be under a continuing obligation to keep

in good repair the roadbed of said tramway and the surface of the road,
the tramway. Within the towns proper or poblaciones of the municipalities
of Panique and Camiling, and within the populated portions of the barrios
mentioned in section one, the space between the rails and tracks of the
tramway and for eighteen inches on each side of said tracks shall be filled
flush with the top of the rails by the grantee with the same material as that
used in the construction of the road, highway, or street and as may be
prescribed by ordinance of the municipalities of Camiling or Panique, or
by ordinance of the municipality having jurisdiction of said barrios, as the
case may be: PROVIDED, HOWEVER, That in case of dispute between
any municipality through which the tramway passes and the grantee, the
work shall be done with the material and in the manner prescribed by the
Director of Public Works: AND PROVIDED FURTHER, That if any
municipality through which said tramway passes shall order a change in
the kind of material after the same has once been laid by the grantee, the
material necessary to make the change shall be furnished by the municipality
ordering the change and the work of laying such material and putting the
same in place shall be done by the grantee at his own proper cost and
expense.

thirty days after the passage of this Act the grantee shall file, in duplicate,
with the Director of Public Works, a map or plan showing the location,
direction, and general course of said tramway, together with the estimated
219
distances between changes of course, and an explanatory statement as to

the route of the tramway and its relation to the road, highway, or streets
over which it passes. Should the Director of Public Works refuse to approve
said map or plan, the grantee shall make such changes therein as may be
prescribed by said Director of Public Works. One copy of the map or plan,
when finally approved, shall be filed by the Director of Public Works in his
office and one copy shall be returned by him with his approval to the grantee.
The failure or refusal of the grantee to file the map required by this section
within the time prescribed or to change within a reasonable time the said
map or plan when so directed by the said Director of Public Works shall
render null and void the franchise granted by this Act.
furnished by the grantee is returned to him by the Director of Public Works
finally approved, the grantee shall file with the Governor-General his
acceptance in writing of the franchise granted by this Act and at the same
time shall deposit in the provincial treasury of Tarlac the sum of two
thousand pesos, or negotiable bonds of the United States or other securities
of equal value, approved by the Governor-General, shall be deposited with
the provincial treasurer of said province. The whole deposit of eleven
thousand pesos thus made shall be retained in the provincial treasury as
security for the completion of the work and operation of the tramway for
its entire length within twelve months from the date of acceptance. In case
said deposit of nine thousand pesos is not made as herein set out or the
grantee fails to commence the work within six months after the acceptance
of the franchise, the deposit of two thousand pesos made on the acceptance
of the franchise shall be forfeited and shall be paid by the provincial treasurer
of Tarlac to the Province of Tarlac and to the municipalities of Panique and
Camiling, one-third to each. In case the tramway shall not be completed
and put in operation for the public convenience within twelve months from
the date of acceptance, the whole deposit shall be forfeited as liquidated
damages for breach of the contract created by the acceptance of this
franchise, and such deposit shall be divided equally between said
municipalities of Panique and Camiling and the Province of Tarlac:
PROVIDED, HOWEVER, That any moneys deposited with the provincial
treasurer may, with the approval of the Governor-General, be paid by the
220
provincial treasurer to the grantee monthly or quarterly in the proportion

which the work done bears to the whole work to be done, such proportion
to be certified by the Director of Public Works or his duly authorized
subordinate. If the deposits required by this section to be made by the
grantee, or either of them, are in interest-bearing bonds or other interest-
bearing securities, the interest shall be collected by the provincial treasurer
of Tarlac and shall be turned over to the grantee as it is collected, unless the
grantee shall fail to perform the obligations required of him by this franchise,
in which case the accruing interest shall be withheld by the said provincial
treasurer and shall constitute a part of the deposit to be divided equally
between the Province of Tarlac and the municipalities of Panique and
Camiling as liquidated damages resulting from the default of the grantee.
SEC. 11. This franchise is granted with the understanding and on

the condition that it shall be subject to amendment, modification, alteration,
or repeal by the Congress of the United States, and that all lands or rights
of use or occupation of lands secured by any corporation by virtue of this
franchise and all lands or rights of use or occupation of lands granted by
this franchise on the public domain or public lands shall revert, upon the
termination of this franchise and concession or upon the revocation, repeal,
forfeiture, or lapse thereof, to the Insular, provincial, or municipal
government which owned said lands or enjoyed said rights at the time of
the grant of said franchise or concession.
The grantee of this franchise, his lessees, successors, and assigns are
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 so issued. Neither shall the grantee, his lessees,
successors, or assigns declare any stock or bond dividend. It shall be
unlawful for the grantee, his lessees, successors, or assigns to use or employ
or contract for the labor of persons, company or alleged to be held in
voluntary servitude, and any person, company, or corporation exercising
the rights and privileges conferred by this franchise who shall use, employ,
or contract for the labor of persons claimed or alleged to be held in
involuntary servitude shall not only forfeit all such rights and privileges
and the franchise hereby granted shall also be deemed guilty of an offense
221
and shall be punished by a fine of not less than ten thousand dollars. United
States currency.
SEC. 12 The rates to be charged by the grantee, his lessees,

successors, or assigns for the transportation of passengers or freight or for
other services shall always be subject to regulation by Act of the Commission
or other legislative authority of the Islands.
SEC. 13. The grantee, his lessees, successors, or assigns shall pay
into the treasury of the Province of Tarlac in consideration of this franchise
one and one-half per centum of the gross income earned by the tramway or
resulting from its operation. One per centum of the gross income so paid
into the provincial treasury shall be paid by the provincial treasurer to the
municipalities of Panique and Camiling, one-half to each, for municipal
purposes, and the remaining one-half per centum of said gross income and
earnings shall be retained in the provincial treasury for provincial purposes.
The percentage of gross income and gross earnings of said tramway required
by this section to be paid into the treasury of Tarlac by the grantee, his
lessees, successors, or assigns, shall be due and payable quarterly after
said tramway shall have been put in operation for the whole or any part of
its length.
suspected to contain goods of a dangerous nature or whose transportation
shall be prohibited by the Government.
and exemptions:
(a) Subject to the approval of the Director of Public Works, to

occupy any part of the public domain not occupied for other public purposes,
which may be necessary for the purposes of the enjoyment of this franchise.
The land to be taken under this power shall be acquired y the grantee in the
following manner: The grantee shall file a petition describing the land
which he desires to acquire from the public domain, showing that the same
belongs to the public domain, is not in use for any other public purposes,
222

and maintain a tramway herein described, and praying that the same may
be conveyed to him for the uses and purposes of said franchise. The petition
shall be accompanied by a plat and survey of the land described in the
petition. The Director of Public Works, after an examination of the petition
and the plat and after the taking of evidence, if necessary, shall approve the
same if he finds that the land petitioned for is necessary and proper for the
enjoyment of the franchise herein granted. The Director of Public Works
shall then forward the petition with his approval to the Director of Lands,
who shall, after due investigation, determine whether the land sought is
public land, and is not in use for any other public purpose, and shall certify
his finding to the Governor-General, who, being satisfied of the propriety
and legality of granting the petition, shall grant the owner of the franchise
permission to use said land for the purpose of the tramway. The permission
to use said land shall be in writing and shall contain a clause providing for
a reversion of the land to the Insular Government whenever it shall have
ceased to be used for the purposes of the franchise.
(b) No real or personal property of said tramway actually used and

necessary for tramway purposes shall be taxed by any province or
municipality for five years from the granting of the franchise.
(c) In case of refusal or failure to pay the lawful charges, costs, and
expenses of the transportation and conduction of freight over the entire
length or an part of the line, the grantee shall have the right to detain said
freight until such time as the amount lawfully due shall be paid. The amount
lawfully due shall include all proper charges for storage of goods left in the
care of the grantee for over forty-eight hours after reaching their destination.
(d) If the payment of the rates of transportation on goods carried or

transported by the tramway to their destination should not be effected within
fifteen days after demand for payment, the grantee may apply to the justice
of the peace of the municipality in which goods are situate for their sale at
public auction, and said justice of the peace, after giving notice of the
application to the owner or consignee of the goods, shall order the sale at
public auction of said goods or so much thereof as may be necessary to
cover the expenses and costs of transportation and costs and expenses of
223
sale. Notice for the sale shall be posted for at least five days prior to the
sale in three of the most public places in the municipality in which the
goods are situate.
Freight, goods, or luggage transported to destination by the grantee

and not called for by the owner or consignee for a period of two months
after arrival may be sold at public auction after the making of the application,
the securing of the order, and the giving of the notice of sale prescribed by
the first paragraph of this section.
In case of the refusal or failure to pay proper charges for the

transportation of goods or freight of a perishable nature or in case the owner
or consignee should refuse to receive such goods or can not be found or is
unknown, application for their sale may be made to the justice of the peace
for the municipality in which they are situate, and after satisfying himself
that said goods are perishable and likely to deteriorate if held by the grantee
he may order their sale within such time and after giving such notice as to
him may seem proper.
The proceeds of sales made in accordance with the first paragraph of

this subsection shall be applied first to the payment of the cost and expenses
of said sales, and second, to the payment of freight and charges of the
grantee on said goods. After payment of costs and expenses of sale and the
freight and charges of the grantee, the balance if any there be, shall be
deposited to the credit of the owner or consignee of the goods with the
provincial treasurer of the Province of Tarlac.
(e) To sell, lease, give, grant, convey, or assign this franchise and
all property and rights acquired thereunder to any person, company or
corporation competent to conduct the business of the said tramway, but no
title to this franchise or to the property or rights acquired thereunder shall
pass by sale, lease, gift, grant, conveyance, transfer, or be enjoyed by him
until he shall have filed in the office of the Executive Secretary an agreement
in writing agreeing to comply with all the terms and conditions imposed on
the grantee by the franchise and accepting the said franchise subject to all
its existing terms and conditions.
224
SEC. 16. The grantee, his lessees, successors, and assigns shall agree
to carry the mails upon such terms and conditions and at such rates as may
be agreed upon between the Director of Posts and the grantee. In case the
Director of Posts and the grantee can not agree on terms, conditions, or as
to rates of transportation of the mails, the Governor-General, after giving
the grantee opportunity to be heard, shall fix the rates of transportation and
the terms and conditions under which the mails shall be carried by the said
tramway. If the Government of the Islands should require, in addition to
the ordinary mail service, the transportation of mail on urgent orders, at
other hours or at a higher speed than may be prescribed by the ordinary
tram-train schedule, or should the Government require the transportation
of troops, ammunition, bullion, freight, or war supplies the grantee shall
provide, day or night, special conveyance for same and be allowed such
extra compensation therefor as may be reasonable.
SEC. 17. The tramway for which a franchise is conceded by this Act
may be crossed by lines of railroad, other tramways, or by roads or highways
on such terms and conditions and under such rules and regulations as may
be prescribed by the Philippine Commission.
SEC. 18. The legal domicile of the owner of this franchise shall be
in Panique where there shall also be a duly authorized representative of
said owner with full power to perform the duties enjoined and maintain the
rights conferred by this franchise.
in 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
SEC. 20. The books of the grantee, his lessees, successors, or assigns
maintaining or operating said tramway, shall be always open to the
inspection of the Insular Auditor, the provincial treasurer, or of a deputy
designated by either for the purpose, and once said tramway is put in
operation for the whole or any part of its length it shall be the duty of the
grantee of the franchise, his lessees, successors, or assigns operating under
225
the same, to submit to the provincial treasurer quarterly reports, in duplicate,

showing the gross earnings, gross income, and all expenses and expenditures
of said tramway, as well as such other data as may be required by the Insular
Auditor or provincial treasurer for a complete understanding of the general
condition of the business of said tramway. One of the duplicate reports
required by this section to be furnished to the provincial treasurer shall be
retained by him and the other forwarded by him to the Insular Auditor, who
shall keep the same on file.
SEC. 21. At any time after five years from the granting and during
the life of this franchise the Government of the Philippine Islands may, by
legislative enactment, upon such terms and conditions as to it may seem
proper, require the grantee, his lessees, successors, or assigns to operate
said tramway by electric or other power instead of by steam power. Should
said grantee, his lessees, successors, or assigns decline, fail, refuse to operate
said tramway by the power required by the Government and in the manner
and as directed by said Government, then the franchise granted by this Act
shall be forfeited and all rights, privileges, and concessions granted by it
shall end and terminate.
SEC. 22. Once said tramway has been put into operation for its
entire length, the grantee, his lessees, successors, or assigns shall furnish
such rolling stock and run such rains and make such number of trips over
the entire length of said line as the public service and the demands of traffic
may reasonably require. The failure by the grantee, his lessees, successors,
or assigns to operate said tramway for its entire length, unless prevented
by the act of God, the public enemy, or force majeure, shall constitute an
abandonment of the franchise hereby granted, and the Province of Tarlac,
with the approval of the Governor-General, may either declare said franchise
forfeited or require the grantee, his lessees, successors, or assigns to remove
the lines or tracks of said tramway, or may itself cause such lines or tracks
of said tramway to be removed at the expense of the grantee, his lessees,
successors, or assigns.
SEC. 23. Upon such terms and conditions as may be agreed upon,
and at any time during the existence of this franchise, the grantee, his lessees,
successors, or assigns may construct, maintain, and operate such additional
226
sidetracks, double tracks, loops, switches, and passing places as may be

deemed useful for the convenient and advantageous operation of said
tramway, the consent of the municipalities concerned and of the provincial
board of Tarlac having been first obtained: PROVIDED, HOWEVER, That
the construction of such additions to the original tramway shall not be
entered upon until the grantee shall have filed with the Director of Public
Works, in duplicate, a map or plan of such proposed addition, accompanied
by an explanatory statement, and shall have had returned to him a copy of
said map with the approval of the said Director of Public Works. All such
additions, when completed, shall become a part of the said tramway, and
shall be held, maintained, and operated upon the same conditions as those
which govern and control the rest of said tramway.
SEC. 24. The provincial board of Tarlac Province, after hearing the
grantee, shall have the power, with the approval of the Governor-General,
to declare the forfeiture of this franchise and concession for failure to comply
with any of the terms and conditions required of him to be performed by
the franchise, unless such failure shall have been directly and primarily
caused by the act of God, the public enemy, or force majeure.
SEC. 25. Against such declaration of forfeiture of the franchise, the

grantee, his lessees, successors, or assigns, may apply to any court of
competent jurisdiction for such relief as to him or them may seem proper,
but if no such application is made within a period of two months after the
forfeiture has been declared by such province and approved by the Governor-
General, the right to apply to the courts for relief shall be considered waived
and the forfeiture shall become final. The forfeiture of the concession
implies the loss of the deposit.
SEC. 26. When the forfeiture of the franchise shall have become
final, either by failure to apply to the proper court within the time prescribed
or by a final decision of the courts confirming the forfeiture, the Province
of Tarlac shall take possession of the tramway and all property necessary
for its proper operation and management, and shall sell the same at public
auction for cash to the highest bidder therefor, after giving notice of such
sale by posting an announcement thereof in Spanish and English for sixty
227
days prior to the sale at the provincial building, at the municipal buildings
of Panique and Camiling, and at the principal office of the tramway, and by
publishing a notice of such sale for sixty days prior to the sale in at least
one paper published in English and one published in Spanish in the city of
Manila. The notice shall set forth the fact of the forfeiture of the franchise,
a general description of the property to be sold, and the date, hour, and
place of sale. The proceeds of the sale shall be paid to the grantee, his
successors or assigns, less the cost and expenses of the sale.
SEC. 27. This Act shall be subject to all requirements and limitation
of Act Numbered Ninety-eight, and the amendments thereto heretofore or
hereafter made, and a failure to comply with the provisions of said Act
numbered Ninety-eight shall be punishable as provided for the violation of
said Act Numbered Ninety-eight.
SEC. 28. The grantee shall have the right to acquire by purchase and
to hold all such lands as may be necessary for the proper construction and
operation of his tramway, including the maintenance of necessary stations,
turn-outs, and sidetracks, and if such land can not be secured by purchase
he shall have the right to acquire the same by expropriation in the manner
provided by law.
228
ACT NO. 1452
AN ACT TO AMEND ACT NUMBERED SEVEN HUNDRED AND

THREE BY GRANTING TO THE MANILA RAILWAY COMPANY,
LIMITED, A REVOCABLE LICENSE TO CONSTRUCT,
MAINTAIN, AND OPERATE A FERRY FROM THE FORT
WILLIAM MCKINLEY STATION ON THE NORTH BANK TO A
POINT IMMEDIATELY OPPOSITE ON THE SOUTH BANK OF
THE PASIG RIVER

Commission, that:
SECTION 1. Section two of Act Numbered Seven hundred and three,

entitled “An Act conferring a franchise upon the Manila Railway Company,
Limited, to construct, maintain, and operate a railroad from a point on the
present Manila and Dagupan Railroad one and ûve hundred-thousandths
kilometers from what is known at the present time as the terminus of said
railroad in the city of Manila, to Antipolo, in the Province of Rizal, an
estimated distance of thirty-two kilometres, and to construct, maintain, and
operate a spur or branch of said railroad from its crossing of the River San
Juan to a point on the River Pasig opposite the municipality of San Pedro
Macati, in the Province of Rizal, an estimated distance of three kilometers,”
is hereby amended by adding at the end of said section two the following:
“The grantee of the franchise is hereby given a revocable license,

which may be abrogated by the Legislature of the Philippine Islands
whenever in its opinion public interests so require, to construct, maintain,
and operate a ferry over the Pasig River from a point on the north bank of
the Pasig River nearly opposite the Quartermaster’s wharf at Fort William
McKinley to a point on the south bank of the Pasig River west of said
wharf. The exact points of termination of said ferry shall be ûxed by the
Director of Public Works. Said ferry shall be constructed according to plans
and speciûcations duly approved by the Director of Public Works and shall
be so operated and maintained as not to interfere with the free navigation
of the Pasig River. Copy of such plans and speciûcations duly approved by
the Director of Public Works shall be kept on ûle in his ofûce.”
229
230
ACT NO. 1453
AN ACT TO AMEND SECTION TWO OF ACT NUMBERED FIVE

HUNDRED AND FIFTY-FOUR, SO AS TO GRANT TO THE
MANILA RAILWAY COMPANY, LIMITED, THE RIGHT TO
CONSTRUCT, MAINTAIN, AND OPERATE A FREIGHT SPUR
SIX HUNDRED AND TWENTY METERS IN LENGTH FROM A
POINT EIGHTY-THREE THOUSAND SIX HUNDRED LINEAL
METERS FROM THE INITIAL POINT AT BIGAA OF THE BIGAA
AND CABANATUAN RAILROAD TO A POINT ON THE EAST
BANK OF THE PAMPANGA RIVER IN THE VILLAGE OF
SANTA ROSA, NUEVA ECIJA, AND THE RIGHT TO
CONSTRUCT, MAINTAIN, AND OPERATE A CABLEWAY
FOUR HUNDRED METERS IN LENGTH FROM SAID POINT
ON THE EAST BANK OF THE PAMPANGA RIVER TO A
POINT IMMEDIATELY OPPOSITE ON THE WEST BANK OF
SAID RIVER

Commission, that:
SECTION l. Section two of Act Numbered Five hundred and ûfty-

four, entitled “An Act conferring a franchise upon the Manila Railway
Company, Limited, to construct and operate a railroad from Guiguinto, on
the present line of the Manila and Dagupan Railroad, to Cabanatuan, in the
Province of Nueva Ecija, an estimated distance of seventy-one kilometres,”
is hereby amended by adding at the end of said section the following:
“The grantee of the franchise is hereby granted the right to construct,

maintain, and operate a freight spur six hundred and twenty meters in length
from a point eighty-three thousand six hundred lineal meters from the initial
point at Bigaa of the Bigaa and Cabanatuan Railroad, to a point on the east
bank of the Pampanga River in the village of Santa Rosa, Province of Nueva
Ecija, and to construct, maintain, and operate a cableway four hundred
meters in length from said point on the east bank of the Pampanga River to
a point immediately opposite on the west bank of said river. Said spur and
231
cableway shall be constructed according to plans and speciûcations duly

approved by the Director of Public Works. The cableway shall be so operated
and maintained as not to interfere in any way with the free navigation of
the Pampanga River, or with the free passage of boats or other water craft
thereon. Copies of the plans and speciûcations for said spur and cableway,
duly approved by the Director of Public Works, shall be kept on ûle in his
office.”
enactment of laws.” passed September twenty-sixth, nineteen hundred.
SEC. 3. This Act shall take effect upon the ûling with the Executive
Secretary by the Manila Railway Company, Limited, of its consent to the
amendment of its charter as provided for in section one of this Act.
ENACTED, February 5. 1906.
232
ACT NO. 1454
AN ACT CREATING THE ENTRY PORT OF SITANKI, AMENDING

ACT NUMBERED FOURTEEN HUNDRED AND SIXTEEN, AND
FOR OTHER PURPOSES

Constitution, that:
SECTION 1. The port of Sitanki, in the Jolo collection district, is

hereby created a port of entry, and shall be under the administrative
jurisdiction of the collector of customs at Jolo.
SEC. 2. The following ofûcers and employees are hereby authorized

for the post of Sitanki: One deputy collector of customs, at two thousand
four hundred pesos per annum; one clerk. Class I.
SEC. 3. The entry ports of Bongao, Balabac, and Jurata (Cagayan de

Jolo) are hereby placed under the administrative jurisdiction of the collector
of customs at Jolo.
SEC. 4. So much of Act Numbered Fourteen hundred and sixteen as

provides for the personnel of the Jolo, Zamboanga, Bongao, Balabac, and
Jurata custom-houses, in the Bureau of Customs, is hereby amended to
read as follows:
“Jolo custom-house:
“Collector of customs, class three; one examiner, class seven; one

clerk, class nine; one clerk, Class A; one clerk, Class I; four guards, Class
J; three employees, at two hundred and forty pesos per annum each.
“Zamboanga custom-house:
“Collector of customs, class two; one examiner, class seven; one

clerk, class nine: one clerk, Class I; four guards, Class J; one patron, at two
233
hundred and forty pesos per annum; four boatmen, at one hundred and
eighty pesos per annum each; one janitor, at one hundred and eighty pesos
per annum.
“Bongao custom-house:
“Deputy collector of customs, class seven; one clerk, Class D; four

boatmen at one hundred and eighty pesos per annum each.
“Balabac custom-house:
“Deputy collector of customs, class seven; one clerk. Class D: four

boatmen, at one hundred and eighty pesos per annum each.
“Jurata custom-house:
“Deputy collector of customs, class seven; one clerk, Class D: four

boatmen. at one hundred and eighty pesos per annum each.
“Sitanki custom-house:
“Deputy collector of customs, class nine; one clerk, Class l.”
234
ACT NO. 1510
AN ACT GRANTING TO THE MANILA RAILROAD COMPANY A

CONCESSION FOR RAILWAY LINES IN THE ISLAND OF
LUZON, AND PROVIDING IN RESPECT OF PROCEEDINGS
FOR CONDEMNATION OF LAND BY PUBLIC SERVICE
CORPORATIONS

Commission, that:
SECTION 1. Authority is hereby granted and given to the Manila

Railroad Company, a corporation duly organized and existing under and
by virtue of the laws of the State of New Jersey, and to its successors and
assigns, to locate, construct, equip, maintain, and operate certain railways
in the Island of Luzon, in the Philippine Archipelago, on terms and
conditions set out in the following concessionary grant, or contract:
This instrument, made, executed, and entered into this _________

day of _________________, anno Domini nineteen hundred and six, by
and between the Philippine Government, by the Governor-General of the
Philippine Islands, of one part, and The Manila Railroad Company, a
corporation duly organized and existing under and by virtue of the laws of
the State of New Jersey, of the other part, witnesseth that:
Whereas, under and by virtue of section seventy-four (74) of the Act

of the Congress of the United States, approved July 1, 1902, the Government
of the Philippine Islands was authorized and empowered, among other
things, to grant franchises, privileges, and concessions for the construction
and operation of works of public utility and service, as by reference thereto
will more fully appear; and
Whereas, under and by virtue of sections four (4) and five (5) of the
Act of the Congress of the United States, approved February 6, 1905, the
Government of the Philippine Islands was empowered, among other things,
235
to enter into a contract of guaranty with any railroad company organized

pursuant to the laws of said Government, or of the United States or any
State thereof, undertaking to construct, equip, operate, and maintain any
railroad in said Islands which should be specifically authorized by said
Government, under terms, conditions, and restrictions therein fully recited,
as by reference thereto will appear; and
Whereas, pursuant to said power and authority so conferred, the

Philippine Government, by William H. Taft, as Secretary of War of the
United States, did, upon June 12, 1905, issue an invitation for proposals or
bids for concessionary contracts or grants in aid of the construction,
equipment, maintenance, and operation of certain lines of railway in said
Philippine Islands, therein designated and specified, which said invitation
for proposals or bids, as above, was modified and amended by the circular
of the Secretary of War dated December 22, 1905; and
Whereas, under the provisions and conditions of said invitation, as

amended, Speyer and Company, a partnership, upon January 20, 1906, made
a proposal and bid for a concessionary contract for the construction,
equipment, maintenance, and operation of certain lines of railway as in the
proposal of said Speyer and Company contained.; and
Whereas the said Speyer and Company were the sole bidders for
certain lines of railway in the Island of Luzon; and
Whereas their said bid was not in all respects satisfactory to the
Philippine Government, but by negotiation between the Secretary of War,
on behalf of the Philippine Government, and Speyer and Company the
differences between the parties have been settled and accommodated by
the award, concurred in by the Philippine Commission, to said Speyer and
Company of a concession and grant upon the terms embodied in this
instrument; and
Whereas said invitation for proposals did, among other things, provide
that if the award thereunder be to any individual or co-partnership, he or it
236
should, within thirty (30) days thereafter, duly assign and transfer the same
to a corporation of the character and qualifications therein specified, namely,
a railroad corporation duly organized and existing under the laws of a State
of the United States, or of the United States or the Philippine Islands, and
legally competent in every respect to enter into and to perform all the terms,
conditions, and obligations of such proposal or bid, and the concessionary
contract or grant; and
Whereas said grantee is a corporation of the character. and

qualifications in said invitation specified, and pursuant to be provisions of
said invitation, the bidders to whom said award was made did on
_______________ 1906, duly assign said award to the grantee, and cause
the same to be by the grantee duly accepted and assumed to the satisfaction
of the Philippine Government;
In consideration thereof, it is conceded and granted by the

Government of the Philippine Islands (hereafter referred to as the
Government) of the one part, and contracted and agreed by the party of the
second part (hereinafter referred to as grantee), for itself, and for its
successors and assigns, of the other part, as follows:
The grantee, and its successors and assigns, are hereby granted by
the Government concessions in perpetuity for lines of railways in the
Philippine Islands, generally and approximately as follows and subject to
such variations as may be approved by the Governor-General and ratified
by the Secretary of War as hereinafter provided:
(a) A concession for the existing lines of the Manila Railway

Company, Limited, and branches therefrom, as follows: From Manila or
from a point on the Manila-Antipolo line to Cavite and Naic, 29 miles;
from San Fernando to Florida Blanca, 14 miles; from Dau to San Pedro
Magalang, 9 miles; from San Miguel to La Paz, 10 miles; from Panique to
Tayug, 28 miles, and to complete, maintain, and operate the branches of
the Manila-Dagupan line, now in course of construction, to Antipolo and
Cabanatuan.
237
(b) A concession for a branch from the Manila-Antipolo line, now

under construction, to continue the line, now authorized to Mariquina, from
Mariquina to Montalban, an estimated distance of 8 miles.
(c) A concession for a line from Manila, or from a point on the Manila-
Antipolo line, to Batangas and Bauan, an estimated distance of 73 miles,
and for a branch therefrom from Calamba to Santa Cruz, an estimated
distance of 22 miles, with the right to extend such branch for a farther
distance of about 8 miles for the purpose of extending the line to or building
via Magdalena and Pagsanjan, and for a branch from Santo Tomas to Lucena,
an estimated distance of 39 miles, with the right to extend the same from
Lucena a farther distance of about 8 miles to a point on the coast at which
the Government may decide to construct a harbor.
(d) A concession for a line from Pasacao to Legaspi, an estimated

distance of 72 miles, and for branches from such line from Pili to Lagonoy,
an estimated distance of 31 miles, and from Ligao to Tabaco, an estimated
distance of 21 miles.
(e) A concession for a line from a point near Dagupan to Camp No.
1, in the direction of Baguio, an estimated distance of 25 miles.
(f) A concession for a line northward from Dagupan to San Fernando,

an estimated distance of 35 miles.
1. It is understood that the routes of the respective lines above

mentioned are intended to be approximate only, and the grantee shall furnish
the Governor-General with detailed plans showing the exact routes, after
the surveys have been completed.
The grantee may, with the consent of the Governor-General in writing

ratified by the Secretary of War, construct any branch lines, in its judgment
desirable, for the purpose of reaching traffic points within a reasonable
distance from the main lines of said railways above described.
238
Surveys on and along the several proposed lines shall be commenced

by the grantee within sixty (60) days after written demand therefor shall be
made to the grantee by the Governor-General; detailed reports of the definite
plans, surveys, and specifications, accompanied by complete maps and
profiles of the character and kind in respect of such construction and
equipment directed by the Governor-General, shall, in writing, be submitted
to the Governor-General within twelve (12) months after said demand, or
at such later time as may be permitted by the Governor-General or the
Secretary of War; and within two (2) months after the submission thereof
to the Governor-General the latter shall fix and determine the final route,
substantially in accordance with the routes as above generally described.
2. Under and by virtue hereof the right of way through the public
lands of the Philippine Government is hereby given and granted for the
construction, operation, and maintenance of the railroad or railroads as
herein authorized to the extent of one hundred (100) feet in width where it
may pass through the public domain, including all necessary ground for
depots, machine shops, station buildings, workshops, water stations,
warehouses, terminals-including wharves and dock fronts, switches, side
tracks, and turntables-and also such extra lands beyond such one hundred
(100) feet as may be found necessary for said purposes: Provided, That the
same be approved by the Governor-General as a part of the definite plans
hereinbefore provided for; and the right, power, and authority shall
thereunder be given to said grantee, with the written approval of the
Governor-General, to open and work quarries and gravel pits upon any
public lands and to take from such lands earth, stone, timber, and other
materials, for the construction of such railway; but the provisions of this
paragraph shall only apply to public lands available for homestead settlement
or for sale under the Public Land Act, or to timber lands of the Philippine
Government, and shall not apply to lands used and assigned for other public
purposes, or to lands known as the friars’ lands.
The grantee shall have the right, with the approval of the Governor-
General, to cross or occupy such parts of public roads, alleys, avenues, and
squares, and to acquire title to such other municipal or provincial lands, as
239
may be necessary, on terms to be agreed upon by the grantee and the proper
provincial or municipal authorities, as the case may be, and in case of failure
to agree upon the terms thereof, such terms shall be fixed by the Governor-
General.
Lands or rights of use and occupation of lands granted under the

foregoing provisions of this paragraph shall revert to the governments by
which they were respectively granted, upon the termination of this franchise
or concession, or upon its revocation or repeal.
The grantee shall also have the right to acquire from corporations, or
private individuals, by purchase, contract, lease, grant, or donation, any
lands which may be necessary or useful for the construction, maintenance,
and operation of the said lines of railway, or any of them.
The grantee shall also have the right to acquire by condemnation the
lands necessary for bridges, for terminals, including wharves and docks at
harbor points and elsewhere; for sidings, stations, engine houses, water
stations and other appropriate buildings and structures for the proper and
convenient construction, operation, and maintenance of the lines of railway
herein authorized; but no lands within the boundaries of any province, city
town or municipality shall be occupied by the grantee if the same are in
actual use of provincial, governmental, or municipal purposes, nor shall
any land within the boundaries of any city, town, or municipality be so
occupied without the consent of the proper authorities of such city, town,
or municipality, unless the Governor-General shall consent to the same.
The right to condemnation or eminent domain shall be exercised by the
grantee in accordance with the laws of the Philippine Islands at the time
being in force.
The grantee shall have the right to construct and maintain for the
operation of said railways any and all tracks (single, double, or more),
bridges, viaducts, culverts, fences, and other structures; and all depots,
station houses, engine houses, car houses, freight houses, wood houses,
and other buildings; and all machine shops and other shops, water tanks,
240
turntables, superstructures, erections, and fixtures; and all elevators,

warehouses, wharves, piers, and other facilities terminal or otherwise-for
operating said railroads, and also any hotels or restaurants at any station or
terminal.
3. By the acceptance hereof the grantee stipulates and agrees to

construct said railways herein described in accordance with the terms and
conditions herein imposed, and in perpetuity properly to maintain and
operate them as commercial railways and common carriers in a manner
suitable to the local conditions.
4. All tracks of all the said lines of railways shall be of the gauge of
3 feet 6 inches, so that when completed the gauge of all lines covered
hereby shall be uniform. All materials employed in construction and all
equipment shall be of good class and quality and designed to fully meet the
requirements of local traffic and local conditions. This specification as to
gauge may be modified with the approval of the Governor-General. And
the said grantee hereby agrees to construct ready for operation not less
than one hundred and fifty (150) miles of main track, including main branch
lines but not sidings, at the end of two (2) years, after the approval of the
final plans for the same, and not less than seventy-five (75) miles annually
thereafter, until said lines are fully constructed and equipped ready for
operation; any excess construction during any period shall be credited on
account of the construction during the succeeding periods. Such time for
construction and equipment may be extended by the Governor-General when
in his judgment the grantee has been prevented from construction work by
reason of unforeseen labor difficulties earthquakes, action of the elements,
rebellion. ladronism or other causes beyond the control of the grantee.
The said railways shall be operated as commercial railways for the

transportation of freight, passengers, express, and mail, and, on demand of
the Governor-General, preference of carriage shall be given over said lines
of railway, or any part thereof, to business offered by the Government of
the United States or of the Philippine Islands.
241
5. The motive power of said railways shall be steam; except that

with the consent of the Governor-General, any of said lines may be operated
by electricity or other power.
6. The grantee, in respect of any said railways, shall permit (and the
right is reserved the Philippine Government to grant permission to) any
other railway now constructed or hereafter to be constructed in the Philippine
Islands to form and establish traffic connections or arrangements with it on
fair and equitable terms, to be determined, in case of disagreement, by the
Governor-General of the Philippine Islands upon petition by either party
and upon appeal by the Secretary of War.
7. The grantee and its contractors and subcontractors shall, so far as

possible, give preference to such satisfactory laborers as may be found
along the lines of railway.
8. The grantee shall have the right to construct and operate telegraph,
telephone, and electrical transmission lines over said railways for the use
of the railways and their business, and also, with the approval of the
Secretary of War, for public service and commercial purposes, but these
latter privileges shall be subject to the following provisions:
In the construction of telegraph or telephone lines along the right of

way the grantee shall erect and maintain poles with sufficient space thereon
to permit the Philippine Government, at the expense of said Government,
to place, operate, and maintain four wires for telegraph, telephone, and
electrical transmission for any Government purpose between the termini
of the lines of railway, main or branch; and the Philippine Government
reserves to itself the right to construct, maintain, and operate telegraph,
telephone, or electrical transmission lines over the right of way of said
railways for commercial, military, or governmental purposes, without
unreasonably interfering with the construction, maintenance, and operation
by the grantee of its railways, telegraph, telephone, and electrical
transmission lines.
242
The grantee shall furnish suitable telegraph offices and operators at

its stations for public use, when so directed by the Governor-General, on
payment of reasonable compensation for the service.
9. All plans for work to be done hereunder and the work itself shall
be subject to the inspection of the Governor-General or agents appointed
by him, and the book and accounts of all the railways operated, leased,
owned, or maintained by the grantee, or its successors or assigns hereunder,
shall be subject to the official inspection of the Philippine Government.
10. All material imported into the Philippine Archipelago for the
construction and equipment of the railways undertaken by the grantee
pursuant to authority conferred by this concessionary contract or grant shall
be admitted free of duty, under such rules and regulations as shall be
prescribed by the Philippine Government: Provided, That this provision
shall not extend or apply to any portion of such lines, or to any material or
supplies therefor, after the same shall be constructed and equipped:
Provided, further, That if any material so admitted free of duty shall not in
fact be used for the construction and equipment of said railroads the duty
shall become payable thereon whenever it is ascertained that it has been
used or disposed of or is held for other purposes: And provided, further,
That this exemption shall extend to port charges upon vessels whose entire
cargo consists of material for the construction or equipment of the railways,
and to such proportion of the prescribed port charges on other vessels as
the tonnage of material for such construction in equipment may bear to the
tonnage of the entire cargo of the vessel.
11. The right is hereby given to the grantee to fix, charge, and collect
just and reasonable compensation for the carriage of freight and passengers,
using as an initial basis for the various rates the charges now made for the
transportation of freight and passengers to and from stations on the present
lines of the Manila Railway Company; such right, however, for the purpose
of insuring just and reasonable rates at all times, shall be subject to effective
regulation, to be exercised, in the first instance, by the Philippine
Government, and upon appeal by the Secretary of War of the United States.
243
12. In consideration of the premises, and of the granting of this

concession or franchise, there shall be paid by the grantee to the Philippine
Government, annually, for the period of thirty (30) years from the date
hereof, an amount equal to one-half (½) of one per cent of the gross earnings
of the grantee in respect of the lines covered hereby for the preceding year;
after said period of thirty (30) years, and for fifty (50) years thereafter, the
amount so to be paid annually shall be an amount equal to one and one-half
( 1½ ) per cent of such gross earnings for the preceding year; and after such
period of eighty (80) years the percentage and amount so to be paid annually
by the grantee shall be fixed by the Philippine Government.
Such annual payments, when promptly and fully made by the grantee
shall be in lieu of all taxes of every name and nature-municipal, provincial,
or central-upon its capital stock, franchises, right of way, earnings, and all
other property owned or operated by the grantee under this concession or
franchise.
13. The said railway lines, and each thereof, shall be post routes and
military roads, subject to the use of the Philippine Government and the
United States of America for postal, military, naval, and other governmental
service, and also subject to such reasonable regulations as the Philippine
Government, with the approval of the Secretary of War, shall impose
restricting the charges for such Government transportation.
The grantee undertakes to provide on its trains necessary facilities

for carrying the mails, under terms and conditions to be agreed upon by the
Director of Posts and the grantee; and, in case they shall not be able to
agree, the Governor-General shall fix the terms and conditions, after a
hearing shall have been given the grantee thereon; but the compensation
for such carriage of mails shall, under all circumstances, be a reasonable
sum fixed with reference to the conditions existing in the Philippine Islands.
Reasonable compensation shall be allowed for the urgent

transportation of mail, troops, bullion, ammunition, or freight, for the
Government, at other hours or at higher speed than passenger trains are
244
ordinarily run. The grantee shall provide such facilities for such purposes,
as may be necessary, at any hour, day or night.
14. The grantee shall at all times have and maintain, by corporate
declaration satisfactory to the Governor-General, an office and domicile in
the Philippine Islands and a representative and agent at all times fully
qualified and empowered to treat with the Philippine Government in respect
of all matters arising hereunder, and upon whom process may be served in
any judicial proceeding for any object or purpose, whether arising hereunder
or otherwise, and upon whom also any and all notices, demands, tenders,
deliveries, and communications may be given or made to, for, or in behalf
of the grantee hereunder, and its and their successors and assigns; and all
process so served, and all notices, demands, tenders, deliveries, and
communications so made, shall be legal, sufficient, and binding upon the
grantee, and upon its and their successors and assigns, as if made to it or
them in person.
15. In consideration of this concession, and the waiver by the

Philippine Government of all claims against said Manila Railway Company,
Limited, based on the Spanish concession, the said Manila Railway
Company. Limited, shall fully release all claims against the United States,
the Government of the Philippine Islands, and the provinces and
municipalities thereof, based on the terms of the concession granted by the
Spanish Government to the Manila Railway Company, Limited; and also
all claims growing out of the use and occupation of the lines of said Manila
Railway Company, Limited, by the military authorities of the United States,
and out of the damage to said lines, accessories, and equipment resulting
during such use and actual occupancy, and especially the claim against the
United States for $1,515,000, gold, presented by the British ambassador to
the Department of State of the United States on behalf of the said Manila
Railway Company, Limited; and this concession shall not take effect as to
the lines of the Manila Railway Company, Limited, including the —
branches thereof to Antipolo and Cabanatuan, until the grantee shall have
presented to the Secretary of War a release and waiver of the claims aforesaid
in form acceptable to the Secretary of war, duly executed by the proper
officers of the Manila Railway Company, Limited, thereunto lawfully
245
authorized by said company, and upon such release and waiver being given
in a form binding on all holders of lien under any mortgage, deed of trust,
or other instrument heretofore executed by said Manila Railway Company,
Limited, the Spanish concession above referred to shall be deemed to be
canceled.
16. This franchise or concession is subject to amendment, alteration,

or repeal by the Congress of the United States; no stock or bonds shall be
issued by the grantee hereunder except in exchange for actual cash, or for
property at a fair valuation, equal to the par value of the stock or bonds so
issued the grantee shall not declare stock or bond dividends.
The foregoing and all other terms and provisions of section seventy-
four (74) of the Act of Congress approved July 1, 1902, and section five (5)
of the Act of Congress approved February 6, 1905, relating to said railways,
are incorporated into and made a part hereof, with the same effect as if they
were set forth herein at length.
17. The word “grantee” herein shall be held to include and apply to
the successors and assigns of said grantee.
In witness whereof, by virtue of authority conferred upon him, this

instrument, in triplicate, is executed by the Governor-General of the
Philippine Islands on behalf of the Philippine Government.
Done the day and year first above written.
(SEAL)
THE PHILIPPINE GOVERNMENT,
By Henry C. Ide,
Governor-General of the Philippine Islands.
246
The foregoing concessionary grant and contract is hereby accepted

by the grantee in its corporate name and under its corporate seal, by its
proper officers, thereto duly authorized by resolution of its board of
directors, passed on the ____________ day of ____________, 1906,
certified copies of which are hereto attached and made a part hereof.
_____________________,
By __________________,
As its President
Attest:
___________________,
As its Secretary.
(CORPORATE SEAL.)
SEC. 2. When condemnation proceedings are brought by any railway

or other public service corporation, in any court of competent jurisdiction
in the Philippine Islands, for the purpose of the expropriation of land for
the proper corporate use of any public service corporation, the corporation
shall have the right to enter immediately upon the possession of the land
involved, after and upon the deposit by it with the Treasurer of the Philippine
Islands of the value of the land, in money, as provisionally and promptly
ascertained and fixed by the court having jurisdiction of the proceedings,
said sum to be held by the Treasurer subject to the orders and final
disposition of the court. And the court is empowered and directed, by
appropriate order and writ if necessary, to place the corporation in possession
of the land, upon the making of the deposit.
SEC. 3. The Governor-General of the Philippine Islands is hereby

authorized and directed to execute, for and on behalf of the Philippine
247
Government, the concessionary contract or grant set out in section one (1)
hereof, after its approval by the Secretary of War, and to receive on said
behalf one of the triplicate copies thereof, when the same are fully executed,
and when a bond in the sum of three hundred thousand dollars ($300,000),
in a form and with sureties acceptable to the Secretary of War, or the
Governor-General, properly executed, shall have been delivered to the
Secretary of War, or the Governor-General.
SEC. 4. The proper officers of the Philippine Government are hereby

authorized and directed to do the acts and perform the functions by them to
be done and performed in relation to said railways, and their construction,
securities, and obligations, under the Acts of Congress approved July 1,
1902, section 74; February 6, 1905, section 5; and the concessionary contract
or grant set out in section 1 hereof.
the passage of the same is hereby expedited in accordance with section 2
SEC. 6. This Act shall take effect upon its passage, but the grant of
the franchise shall not become operative until the grantee, or its successors
or assigns, shall have accepted the same in the form above given and shall
within sixty (60) days after the passage of this Act, have executed and
delivered the contract and bond herein provided for, and have fully complied
with the provisions of this Act, in so far as the same are required to be done
and performed at said time.
SEC. 7. All Acts or parts of Acts inconsistent with the provisions of

this Act shall be, and the same are hereby repealed.
248
ACT NO. 1511
AN ACT PROVIDING FOR THE CONSTRUCTION, REPAIR, AND

MAINTENANCE OF PUBLIC HIGHWAYS, BRIDGES,
WHARVES, AND TRAILS IN THOSE PROVINCES ORGANIZED
UNDER THE PROVINCIAL GOVERNMENT ACT WHICH
SHALL VOTE TO ADOPT THE PROVISIONS OF THIS ACT IN
THE MANNER HEREAFTER PROVIDED, AND PROVIDING A
PENALTY FOR MALICIOUS INJURIES TO HIGHWAYS,
BRIDGES, WHARVES, AND TRAILS
By authority of the United States, be enacted by the Philippine

Commission, that:
SECTION 1. Every male inhabitant of the Philippine Islands who is

subject to the payment of a poll or cedula personal tax by virtue of the
provisions of the Internal Revenue Law as now existing or as hereafter
amended shall labor on the public highways, bridges, wharves, or trails for
five days of eight hours each, every calendar year. or pay the equivalent in
cash of such days‘ labor commuted at the rate and in the manner hereinafter
provided, subject, however, to the provisions of section eighteen of this
Act: PROVIDED, That this Act shall not apply to the city of Manila nor to
Bona ûde residents thereof, nor to members of the Philippine Constabulary
and municipal police, nor to residents of provinces organized under Act
Numbered Thirteen hundred and ninety-six: AND PROVIDED FURTHER,
That this Act shall not apply to township or settlement of any non-Christian
tribe in any province until made applicable to such township or settlement
by resolution of the provincial board approved by the Secretary of the
Interior.
SEC. 2. Every person subject to the labor provided for in section one
of this Act shall be permitted to elect whether he will himself perform such
labor, or in lieu thereof will pay in cash to the treasurer of the municipality
within which he resides the commuted value of such labor: PROVIDED,
That upon payment by any person of the commuted value of the labor
herein provided for the person so paying shall be relieved therefrom: AND
249
PROVIDED FURTHER, That any person who is liable for the performance
of labor upon public highways under the provisions of this Act may furnish
a substitute who is able and who shall perform the labor in his stead, but no
person furnishing a substitute shall be relieved from the liability of rendering
the labor personally unless and until the required labor is actually performed.
SEC. 3. The commuted value of the labor herein provided for shall,
between the first and fifteenth days of December of each year, be fixed at a
rate not less than twenty-five centavos nor more than two pesos per day’s
labor, for the ensuing year, by a committee to be composed of the provincial
board and two residents of the province owning property therein, to be
named by the Governor- General during the month of October. The figures
so reached shall be forwarded to the municipal council of each municipality
throughout the province and shall be the basis to be used for the commuted
value of the labor herein provided for: PROVIDED, That the rate so fixed
shall be the same for all municipalities in the province, and shall be fixed
at a sum equal to a fair day‘s wages for that class of labor in the province:
AND PROVIDED FURTHER, That the legislative council of the Moro
Province shall fix the commuted value for that province.
SEC. 4. (a) The provincial treasurer shall, during the month of

November of each year, present to the municipal council of each
municipality of the province a list of all persons who are shown, by his list
of cedulas sold, to be residing within the respective municipalities.
(b) The municipal council shall, between the first and fifteenth days
of December. cause an examination of this list to be made and specify the
barrio in which each person resides and shall remove therefrom the names
of any persons who are not liable for the performance of the labor required
by this Act, and shall add thereto the names of any persons liable for the
performance of this labor but whose names were not included in such list
by the provincial treasurer. The municipal council shall then forward to the
provincial treasurer and to the district engineer a copy of said list and shall
advise the provincial board of the number of names included therein.
250
SEC. 5. The commuted rate for the labor provided for by section one
of this Act shall be due and payable at the office of the municipal treasurer
in such municipality any time during the three months ending March thirty-
first of each year, and shall be collected by the municipal treasurer on
everyday, except Sundays and other legal holidays, during the collection
period in the same general manner as municipal taxes. Failure to pay the
commuted value of said labor within the period fixed by this section shall
operate as a final election to perform the required labor in lieu of the payment
in cash of the commuted value thereof, and said labor shall be performed
by the person so electing to labor, or by substitute, as provided in section
two hereof, at any time during the calendar year.
SEC. 6. For all moneys collected by the municipal treasurer pursuant

to the provisions of this Act, he shall account in the same manner as for
other collections made by him. He shall also render a report monthly to the
municipal council setting out in detail the sum of money received by him
as the commuted value of the labor provided for by this Act, and shall
specify by name and locality in such manner that they may be identified
the persons paying said sums of money. Copies of the report required by
this section shall be forwarded by the municipal treasurer to the provincial
treasurer, and summaries of the report, stating the amount paid in cash and
the amount paid and payable in labor, shall be reported to the district
engineer, and the district engineer shall at all times be entitled to have
access to the copies of the report filed with the provincial treasurer and in
the office of the municipal treasurer.
SEC. 7. All labor accruing under the provisions of this Act, and all
money collected by municipal treasurers as the commuted value of the
labor herein provided for, shall be expended upon the public highways,
bridges, wharves, or trails, within the municipality in which the same accrues
or is collected, under the supervision of the municipal president, except as
hereinafter provided.
SEC. 8. The district engineer shall prepare, prior to December thirty-

first of each year, after consultation with the municipal presidents, a detailed
plan showing the public highways, bridges, wharves, and trails on which
251
construction or repair shall be made during the succeeding year, and shall
set forth and specify therein the general nature and extent of the required
improvements, and shall submit such plans and general specifications to
the provincial board for approval, and when so approved the provincial
board shall furnish to each municipal president throughout the province a
copy of the plans and general specifications relating to his municipality.
SEC. 9. The municipal presidents shall be charged with carrying out

the plans of the district engineer for the work to be performed with their
respective municipalities, and shall follow in the prosecution of the work
the general specifications of the district engineer. They shall utilize the
labor provided for in this Act in the prosecution of said work and shall be
authorized to expend such sums from the money accruing under this Act as
are necessary for the purchase of tools and material and the hire of foreman
labor and of the transportation of materials for the proper prosecution of
the work, except as hereinafter provided.
Each person,” upon the performance of the labor required by this

Act, shall receive a certificate, in such form as the Insular Auditor shall
prescribe, stating that he has performed such labor and specifying the dates,
place, and nature of the work upon which such labor was performed.
SEC. 10. The municipal president shall select from the list of names
of persons liable to the performance of labor upon highways, bridges,
wharves, and trails within his municipality the number of persons required
by this Act for the works then in progress, and shall serve upon each person
so selected a notice in writing to that effect requiring the person so notified
to present himself at a designated time and place within the limits of the
municipality, such time and place to be set forth in the notice, and there to
perform the required labor, in the manner directed by the person officially
in charge of the work. All such notices shall be served upon the persons
named therein by a person designated by the president for that purpose
who shall make to the president a written return of the service in each case,
which return shall be ûled with the records of the municipal treasurer. It
shall be the duty of the president to make every effort so to designate the
laborers that they shall work in the part most convenient to their place of
252
residence, but this shall not prejudice the performance of work in any part
of the municipality if necessary: PROVIDED, That the method of selecting
the men from the said list and the proper time of the year for the rendition
of the service in view of the planting and harvesting season and the rules
specifying how long in advance said notice shall be served shall be
determined and duly promulgated by the provincial board, a copy of such
determination being furnished in each case by the provincial board to the
district engineer.
SEC. 11. If the person so notified shall fail to present himself for the
required labor the president shall cause him to be arrested by the municipal
police, and shall, unless good cause is shown for his delinquency, require
him to work upon the highways, bridges, wharves, or trails under guard for
a period of eight days or to pay the commuted value of eight days’ labor:
PROVIDED, HOWEVER, That if the delinquent can show good cause for
such failure and he is still eligible to perform the labor the president shall
order that he do the required five days‘ labor forthwith or that his name be
put back on the list for a later call during the same calendar year.
SEC. 12. Upon the expiration of each calendar year the respective
municipal councils shall forward a report to the provincial board setting
out by name and address the persons who have not rendered the labor
required by this Act nor paid the commuted value thereof, and it shall
thereupon become the duty of the provincial treasurer to collect from such
persons in cash the commuted value of eight days’ labor. In case of the
inability of the treasurer to collect in money the commuted value of eight
days’ labor, it shall be the duty of the district engineer to compel eight
days’ labor by the delinquent under such guard as may be necessary upon
the provincial public works. All money so collected shall be deposited to
the credit of the provincial road and bridge fund.
SEC. 13. The district engineer is hereby authorized to appoint any

municipal president within his district as his ofûcial representative for the
prosecution and supervision of repairs on provincial highways, bridges,
wharves, and trails within the municipality of the president so appointed.
253
SEC. 14. Each municipal president shall submit to the district

engineer, at such times and in such detail as may be required by the Director
of Public Works. a report showing the progress of the work on the public
highways, bridges, wharves, and trails under his supervision. and shall state
the number of days‘ labor and the amount of money expended by him during
the period covered by said report.
SEC. 15. The district engineer shall submit annually to the Director
of Public Works a report of the work accomplished in each province under
the operation of this Act, showing therein what highways, bridges, wharves,
and trails have been constructed or repaired, the nature and extent of such
construction and repair, the total number of days‘ labor, and the amount of
money expended. Said report shall be submitted before the fifteenth day of
January each year and shall contain such detailed information as the Director
of Public Works may direct. A copy of such report, so far as it appertains to
each province, shall be furnished to the provincial board of such province.
SEC. 16. It shall be unlawful for any person to convert any part of
any public highway, bridge, wharf, or trail to his own private use, or to
obstruct or damage the same in any manner, or to remove any tool or road
making material therefrom or to mutilate, damage, destroy, or in any manner
interfere with any public bridge, culvert, or drainage canal, or to use any
public ditch for irrigation or other private purposes, and any person so
offending shall be punished by a ûne of not more than one hundred pesos,
or by imprisonment at hard labor not exceeding three months, or by both
such fine and imprisonment, in the discretion of the court. The provisions
of this section shall likewise be applicable to highways, bridges, wharves,
and trails in the provinces organized under Act Numbered Thirteen hundred
and ninety-six, notwithstanding the limitations contained in sections one
to six of this Act.
SEC. 17. All money collected in fines under the provisions of the
preceding section shall be transmitted to the municipal treasurer to be
credited to the funds created by section seven of this Act, and all labor
accruing under the provisions of the said preceding section shall be expended
under the supervision of the municipal president as provided for in section
nine of this Act.
254
SEC. 18. This Act shall not be effective in any province until it shall
have been adopted for that province by a majority vote of those present at
an assembly as hereinafter provided. Within six months from the passage
of this Act the provincial board of each province affected by this Act shall
call an assembly of the municipal presidents and councilors for the purpose
of voting on the application of the provisions of this Act as a whole to the
province, and in the event of a majority vote of those present, after adequate
discussion, so to apply this Act, the same shall become effective on and
after the date of its approval by the provincial board. In case the assembly
of presidents and councilors fail to vote in the affirmative upon the
acceptance of this Act the provincial board may at any time after one year
call another meeting for the purpose of again voting upon the application
of the provisions of this Act as a whole: PROVIDED, That in the Moro
Province this Act shall become effective when accepted by the legislative
council without submission to the vote of the presidents: AND PROVIDED
FURTHER, That section sixteen shall be applicable to all provinces of the
Philippine Islands, irrespective of whether the other provisions of this Act
are or are not extended thereto.
SEC. 19. The short title of this Act shall be “The Philippine Road
Law.”
255
ACT NO. 1522
AN ACT TO AMEND SECTION THREE OF ACT NUMBERED SEVEN

HUNDRED AND EIGHTY, ENTITLED “AN ACT PROVIDING
FOR THE EXAMINATION AND LICENSING OF APPLICANTS
FOR THE POSITIONS OF MASTER, MATE, PATRON, AND
ENGINEER OF SEAGOING VESSELS IN THE PHILIPPINE
COASTWISE TRADE, AND PRESCRIBING THE NUMBER OF
ENGINEERS TO BE EMPLOYED BY SUCH VESSELS”

Commission, that:
SECTION 1. Section three of Act Numbered Seven hundred and

eighty, entitled “An Act providing for the examination and licensing of
applicants for the positions of master, mate, patron, and engineer of seagoing
vessels in the Philippine coastwise trade, and prescribing the number of
engineers to be employed by such vessels.” is hereby amended to read as
follows:
“SEC. 3. The Board shall meet at the office of the Insular Collector
of Customs at Manila during the last week of each month of the year and
examine all applicants for any such positions who have filed in writing
their applications for examination at least one month before the meeting of
the Board.
“Every applicant shall be examined physically by a competent

physician selected by the Board, and, unless found to be physically sound,
shall not be further examined and shall not be licensed.
“The Board may, in its discretion, require the production of ship’s

journals and log books for inspection in the examination of applicants.
“Every applicant for license as master must produce to the Board

evidence satisfactory to it, showing that he has served as certified first
mate for at least two years in a seagoing vessel.
256
“Every applicant for license as first mate must produce to the Board
evidence satisfactory to it, showing that he has served in the capacity of
certified second mate for at least one year in a seagoing vessel, or, first
showing that he has second mate’s license for one year, that he has served
as certified third mate at least three years in a seagoing vessel.
“Every applicant for license as second mate must produce to the Board
evidence satisfactory to it, showing that he has served in the capacity of
certified third mate in a seagoing vessel for at least one year.
“Every applicant for the position of third mate shall be required to

present to the Board documents properly certified showing that he has served
as seaman, apprentice, or quartermaster continuously for at least nine months
in a seagoing sailing vessel or at least eighteen months in a seagoing steamer:
PROVIDED, That, if the applicant produces a certificate of graduation
from the Nautical School of Manila, it shall be sufficient evidence of his
technical knowledge, but not of his physical condition, experience, habits,
or character. The applicant shall not be less than nineteen years of age.
“Every applicant for license as patron shall be examined on the

following subjects: Reading and writing; management of the sails and
rigging of coasting and pilot boats; manner of loading according to cargo;
manner of careening a boat so as to rid it of water, as well as manner of
stranding same; knowledge of the coasts where he is to navigate, their shoals,
banks, and reefs; of ocean currents and tides; of prevailing winds; which
winds to sail with and which to sail away from; how to box the compass; to
take bearings by the chart and other practical methods for determining the
nearness of the coast and what course is to be taken; methods of entering
and leaving the ports of the provinces; precautions to be taken in time of
storms at sea as well as in port; method of repairing damage sustained by
vessels; familiarity with all existing coast light-houses on their routes;
knowledge of all maritime laws relating to the sanitation and police
regulations of ports; knowledge of regulations governing the use of lights
and signals for the prevention of collisions and, in short, of all subjects that
may have a bearing on his calling.
257
“Every applicant for license as patron shall be at least nineteen years

of age.
‘Service as patron shall be deemed the equivalent of service as third

mate upon application for a second mate’s license.
“The Board in examining an applicant for the position of engineer

shall diligently inquire into the knowledge of said applicant of the
construction and operation of steam machinery and especially of engines
and boilers, also as to the applicant’s practical experience, character, and
habits, and the Board may, in its discretion, make such practical tests and
examinations of the applicant as it may deem necessary to demonstrate his
fitness or unfitness for the position which he seeks. The Board may also
take the statement, written or oral, of any persons cognizant of the
qualifications of such applicant.
“Every applicant for license as chief engineer shall be required to

produce to the Board evidence satisfactory to it, showing that he has served
as licensed first assistant engineer for at least two years in a seagoing
steamer.
“Every applicant for license as first assistant engineer shall be required

to produce to the Board evidence satisfactory to it, showing that he has
served in the capacity of second assistant engineer for at least one year in a
seagoing steamer.
“Every applicant for license as second assistant engineer must produce to

the Board evidence satisfactory to it, showing that he has served in the
capacity of oiler or fireman in a seagoing steamer for at least two years,
and he must be at least nineteen years of age.
“Every applicant for license as bay and river engineer must produce
to the Board evidence satisfactory to it, showing that he has served at least
two years as fireman on steam launches or other steam vessels, and must
be at least eighteen years of age. Every person holding a license as bay and
258
river engineer, who has served at least one year on such license shall be
eligible for examination for second assistant engineer of seagoing vessels.
259
ACT NO. 1535
AN ACT TO ENCOURAGE THE SHIPPING TRADE IN THE

PHILIPPINE ISLANDS BY ABOLISHING THE
COLLECTION OF ALL TONNAGE DUES ON VESSELS
COMING FROM FOREIGN PORTS OF ENTRY IN THE
PHILIPPINE ISLANDS
Whereas the Government of the Philippine Islands is authorized by

section eleven of an Act of the Congress of the United States, approved
February sixth, nineteen hundred and five, to modify, suspend, or repeal
the provisions respecting tonnage dues set forth in sections fourteen and
fifteen of an Act entitled “An Act to revise and amend the tariff laws of the
Philippine Archipelago,” enacted by the Philippine Commission on
September seventeenth, nineteen hundred and one, and confirmed by an
Act of Congress approved March eight, nineteen hundred and two, which
said section eleven has been continued in force by section twenty of an Act
of the Congress of the United States, approved March third, nineteen
hundred and five: Therefor,

Commission, that:
SECTION 1. The provisions respecting tonnage dues on the entry of

a vessel from a port or place not in the Philippine Islands contained in
sections fourteen and fifteen of Act Numbered Two hundred and thirty,
entitled “An Act to revise and amend the tariff laws of the Philippine
Archipelago,” enacted by the Philippine Commission on September
seventeenth, nineteen hundred and one, and confirmed by an Act of Congress
approved March eighth, nineteen hundred and two, are hereby repealed.
260
SEC. 3. This Act shall take effect on September first, nineteen

hundred and six.
261
ACT NO. 1563
ACT TO AMEND ACT NUMBERED FOURTEEN HUNDRED AND

FIFTY-FOUR, ENTITLED “AN ACT CREATING THE ENTRY
PORT OF SITANKI, AMENDING ACT NUMBERED FOURTEEN
HUNDRED AND SIXTEEN, AND FOR OTHER PURPOSES,” BY
INCREASING THE COMPENSATION OF THE DEPUTY
COLLECTOR OF CUSTOMS AND AUTHORIZING THE
EMPLOYMENT OF TWO BOATMEN AT SITANKI

Commission, that:
SECTION 1. The last line of section four of Act Numbered Fourteen

hundred and fifty-four, entitled “An Act creating the entry port of Sitanki,
amending Act Numbered Fourteen hundred and sixteen, and for other
purposes,” is hereby amended to read as follows:
“Deputy collector of customs, class seven; one clerk. Class I; two

boatmen, at twelve pesos per month each.”
SEC. 2. Payment of the salaries above authorized shall be made from

the appropriation for the Bureau of Customs under Act Numbered Fifteen
hundred and twenty-seven.
Sec. 4. This Act shall take effect on its passage.
262
ACT NO. 1566
AN ACT REGULATING THE FREE ENTRY OF CERTAIN RAILROAD

MATERIAL IMPORTED INTO THE PHILIPPINE ISLANDS
Whereas section five of the Act of Congress approved February sixth,

nineteen hundred and five, provides “That material imported into the
Philippine Islands for the construction and equipment of railroads therein
may, in the discretion of the General Government of said Islands, under
rules and regulations to be by it prescribed, be admitted free of duty.”

Commission, that:
SECTION 1. All material imported into the Philippine Archipelago

for the construction and equipment of the railroads granted concessions by
Acts Numbered Fourteen hundred and ninety-seven and Fifteen hundred
and ten, which material shall, in fact, be so used, shall be admitted free of
duty under the following rules and regulations.
SEC. 2. All such materials shall be imported through some regular

port of entry in the Philippine Islands, and there shall be presented to the
collector of customs of the port through which such materials are imported
a free entry in duplicate, similar to the form prescribed for Government
importations. There shall be filed with such free entry a commercial invoice
in the usual form, specifying in detail the kind of materials imported and
the value thereof. There shall also be filed with each free entry for railroad
material a certificate in writing signed by the representative or agent of the
railroad company to the effect that the material for which free entry is
sought is to be used in the construction and equipment of a line of railroad
chartered by an Act of the Philippine Commission, giving the number of
the Act, that no other use or disposition of the material will be allowed or
permitted, and that if any other disposition is contemplated immediate notice
thereof will be given to the Insular Collector of Customs, and the material
held subject to his order, until the duties thereon have been assessed and
collected.
263
SEC. 3. These provisions for the free entry of railroad material shall
apply only to such material as is imported for the purpose of construction
and equipment, and shall not extend or apply to any portion of such lines,
or to any material or supplies therefor, after the same shall be constructed
and equipped as provided for in section one of this Act.
SEC. 4. In case the Insular Collector of Customs shall be in doubt as

to whether any article sought to be imported free of duty under this Act is
entitled to said exemption, he may submit the question in writing to the
Supervising Railway Expert, who shall thereupon examine the same, and
certify to the Insular Collector of Customs whether the expenditure by the
railroad for said article will, in his opinion, be allowed as a proper item in
the cost of construction under section one, subsection numbered nine of
Act Numbered Fourteen hundred and ninety-seven, and section four,
paragraphs (c) and (d) of Act Numbered Fifteen hundred and seven, in case
the road is one upon which interest on bonds is guaranteed by the
Government; or, in case of nonguaranteed roads, the Supervising Railway
Expert shall certify to the Insular Collector of Customs whether, in his
opinion, said article is a proper charge against the construction and
equipment of a railroad.
SEC. 5. The exemptions provided by this Act shall not be construed

to extend or apply to articles of any kind purchased from funds other than
those of the railroad company, or of one of its contractors or subcontractors;
nor to articles which are intended for the personal use of officers or
employees of any such company, whether the same are purchased from
funds of such company or not.
SEC. 6. All material, supplies, or articles of whatever kind and nature,

imported and passed free of duty under the provisions of this Act which
shall not be used in the construction or equipment of a line of railroad, and
all used construction machinery and equipment above that which can be
reasonably used in the maintenance and operation of the road shall be
inventoried and assessed for duty upon the completion of the construction
and equipment of the line of railroad for which such material, supplies,
articles, or machinery were imported: PROVIDED, That used construction
264
machinery and equipment shall be assessed for duty at a valuation to be

fixed thereon by the Insular Collector of Customs.
SEC. 7. Nothing contained in this Act shall be construed to affect,

repeal, or amend the existing laws or regulations in regard to protests against
and appeals from adverse decisions of the Insular Collector of Customs.
SEC. 8. Whenever free entry is requested for any materials or articles

which, in the opinion of the Insular Collector of Customs, are not entitled
to exemption from duty under the terms of this Act, that officer is authorized,
after making due examination and appraisement and ascertaining the amount
of duties found to be due on said materials or articles, to admit the same
without payment of the duties, and to deliver the same to the railway
company or its representatives, notifying them, in writing, that said materials
or articles, are found to be dutiable, that the duties thereon amount to a
certain sum, stating the sum, that the same have been passed and delivered
without payment of the duty, in accordance with this section, and that due
report of his decision and the amount of duties found to be due will be
made to the Governor-General, in order that the question of their dutiability
may be adjusted and decided by him in conformity with subsection
numbered nine of section one of Act Numbered Fourteen hundred and
ninety-seven. It shall thereupon become the duty of the Insular Collector of
Customs promptly to notify the Governor-General in writing of the above
facts and to hold the free entry and invoice and all other papers connected
with the case in, his office subject to the orders of the Governor-General
and until final adjustment of the question is had. Nothing in this section
contained ,all be construed to alter or amend the rights of the Insular Auditor
under the Accounting Act or any amendment thereto, or under any other
Act of the Philippine Commission.
SEC. 9. The Insular Collector of Customs is hereby authorized to

prescribe suitable and necessary regulations for carrying out the purposes
of this Act, not inconsistent with the terms hereof, and collectors of customs
at subports of entry in the Philippine Islands are hereby authorized to grant
free entry of railroad materials and supplies, the exemption of which from
265
duty under this Act may be questioned by them, under the general direction
and supervision of thee Insular Collector of Customs.
266
ACT NO. 1568
AN ACT TO AMEND SECTION FOURTEEN OF ACT NUMBERED

FOURTEEN HUNDRED AND SEVEN, ENTITLED “THE
REORGANIZATION ACT,” REPEALING SECTION SIXTEEN OF
SAID ACT AND MERGING THE BUREAU OF PORT WORKS
WITH THE BUREAU OF NAVIGATION

Commission, that:
SECTION 1. Section fourteen of Act Numbered Fourteen hundred

and seven, entitled “The Reorganization Act,” is hereby amended by adding
thereto a new subsection lettered (d), as follows:
“(d) The Bureau of Port Works is hereby abolished as a bureau and is

constituted a division of the Bureau of Navigation, to be known as the
Division of Port Works, which shall be in charge of an officer to be known
as the Chief of the Division of Port Works, by which the duties and services
required for the Bureau of Port Works by law in force at the time of the
passage of this Act shall be performed under the general supervision of the
Director of Navigation.”
SEC. 2. Section sixteen of Act Numbered Fourteen hundred and seven,

entitled “The Reorganization Act,” is hereby repealed.
SEC. 3. Whenever an officer of the United States Army is detailed

for service as Chief of the Division of Port Works he shall be entitled to a
per diem of ten pesos, out of funds appropriated for the Bureau of
Navigation.
267
268
ACT NO. 1589
AN ACT GRANTING THE MANILA SUBURBAN RAILWAYS

COMPANY AN EXTENSION OF TIME WITHIN WHICH TO
COMPLETE THAT PORTION OF ITS LINE EASTWARD OF
FORT WILLIAM MCKINLEY; GRANTING THE RIGHT TO
BUILD A BRANCH LINE FROM ANY POINT ALONG ITS
PRESENT LINE EASTWARD OF THE BARRIO OF SAN PEDRO
MACATI, IN A SOUTHERLY DIRECTION TO THE TOWN OF
TAGUIG AND TO THE LAGUNA DE BAY; AND GRANTING
THE RIGHT TO TRANSPORT FREIGHT,EXPRESS PACKAGES,
BAGGAGE, AND THE MAILS OVER ITS LINES, UNDER
REASONABLE REGULATIONS, AND TO MAKE
REASONABLE CHARGES FOR THE SAME
Whereas by Act Numbered Fourteen hundred and forty-six of the

Philippine Commission, enacted January thirtieth, nineteen hundred and
six, a franchise was granted to Charles M. Swift to construct, maintain,
and operate an electric railway and to construct, maintain, and operate an
electric light, heat, and power system from a point in the city of Manila in
an easterly direction to the town of Pasig, in the Province of Rizal; and
Whereas in accordance with section fourteen of the said Act the said
Charles M. Swift did, on July twentieth, nineteen hundred and six, execute
an assignment of the said franchise to the Manila Suburban Railways
Company; and
Whereas the said Manila Suburban Railways Company has made

application for certain amendments and additions to the said franchise:
Therefore,

Commission, that:
SECTION 1. An extension of time until January thirtieth, nineteen

hundred and eight, is hereby granted to the Manila Suburban Railways
269
Company to complete and put in operation that portion of its line east of
Fort William McKinley to the town of Pasig.
SEC. 2. The Manila Suburban Railways Company is hereby granted

the right to build a line from some connection with its present line, east of
the barrio of San Pedro Macati, in a southerly direction to the town of
Taguig and the Laguna de Bay, along a definitely located line, after surveys
made, map of which located line shall be submitted to the Governor-General
and approved by him before any work of construction is commenced. The
said line shall be built and operated subject to all the terms and conditions
of its present franchise: PROVIDED, That the fares charged upon the
additional portion of the Manila Suburban Railways Company’s lines
granted under this Act shall be subject to the limitations prescribed in section
eighteen of Act Numbered Fourteen hundred and forty-six, in the same
way as if this line had been constructed and made a part of the original
franchise.
SEC. 3. The Manila Suburban Railways Company shall have the

right to transport freight, express packages, and baggage over its lines, the
said right to continue during the life of its franchise or any extensions
thereof. The right is hereby given to the grantee to fix, charge, and collect
just and reasonable compensation for the carrying of freight, express
packages, and baggage. Such right, however, for the purpose of insuring
just and reasonable rates, shall at all times be subject to effective regulation
to be exercised, in the first instance, by the Governor-General, and, upon
appeal, by the Secretary of War of the United States: PROVIDED, That the
Governor-General shall have the power and authority to make reasonable
regulations governing the transportation of freight, express packages, and
baggage over the lines of the grantee, and for the purpose of carrying into
effect the provisions or the original franchise granted by Act Numbered
Fourteen hundred and forty-six, and subserving the rights of the public
thereunder.
SEC. 4. The grantee is hereby given the right, and is hereby obligated,
to carry the mails at reasonable rates and under reasonable regulations, to
270
be fixed, as above specified, for the carriage of freight, express packages,

and baggage.
271
ACT NO. 1591
AN ACT TO AMEND ACTS NUMBERED FIFTEEN HUNDRED AND

SEVEN AND FIFTEEN HUNDRED AND TWENTY-SEVEN, BY
REMOVING THE EMPLOYEES OF THE OFFICE OF THE
SUPERVISING RAILWAY EXPERT FROM THE BUREAU OF
PUBLIC WORKS AND ESTABLISHINGIT AS A SEPARATE
AND INDEPENDENT OFFICE AND MAKING ADDITIONAL
APPROPRIATION FOR THE OFFICE OF THE SUPERVISING
RAILWAY EXPERT

Commission, that:
SECTION 1. The following sum, or so much thereof as may be

necessary, is hereby appropriated, out of any funds in the Insular Treasury
not otherwise appropriated, for the current expenses of the office of the
Supervising Railway Expert in lieu of those provided by Acts Numbered
Fifteen hundred and seven and Fifteen hundred and twenty-seven.
SUPERVISING RAILWAY EXPERT.
For salaries and wages of one assistant, at eight thousand pesos per
annum; one chief clerk and office assistant, at six thousand pesos per annum;
three assistant engineers, at five thousand five hundred pesos per annum
each; two senior inspecting engineers, at five thousand five hundred pesos
per annum each, from December eighteenth, nineteen hundred and six;
five inspectors, at two thousand eight hundred pesos per annum each, four
being from December eighteenth, nineteen hundred and six, and one from
February first, nineteen hundred and seven; six time-keepers, at two
thousand eight hundred pesos per annum each; one draftsman, at three
thousand six hundred pesos per annum; one draftsman, at three thousand
two hundred pesos per annum, from December eighteenth, nineteen hundred
and six; one clerk, at three thousand two hundred pesos per annum; one
clerk, at two thousand eight hundred pesos per annum; one messenger, at
three hundred pesos per annum; for the hire of temporary employees,
272
including inspectors at not to exceed eight pesos per diem each, axmen,
rodmen, clerical assistants, and other skilled and semi-skilled employees
at not to exceed five pesos per diem each; and for the hire of unskilled
employees at rates to be approved by the Secretary of Commerce and Police;
for contingent expenses including the purchase of equipment, furniture,
and supplies; for per diems of officers and employees when traveling on
official business; transportation of officers, employees, and supplies;
purchase and maintenance of transportation; cablegrams; postage and
telegrams; printing and binding; for the hire of official transportation in
the city of Manila; rents; and other incidental expenses; sixty-five thousand
pesos.
SEC. 2. So much of Act Numbered Fifteen hundred and twenty-seven,

and of section two of Act Numbered Fifteen hundred and seven, as are in
conflict with the provisions of this Act, is hereby repealed: PROVIDED,
That the expenditures hereinbefore authorized for salaries and wages prior
to the date of passage of this Act shall be payable from the appropriation
for the Bureau of Public Works, in accordance with the provisions of Act
Numbered Fifteen hundred and twenty-seven.
SEC. 3. The provisions of sections two, three, five, six, seven, eight,
and nine of Act Numbered Fifteen hundred and twenty-seven, are hereby
made applicable to the office of the Supervising Railway Expert, as provided
by section one of this Act.
SEC. 4. Whenever in the opinion of the Governor-General the interests

of the public service so demand, appointments may be made to positions
authorized by this Act without compliance with the requirements of the
civil-service law and rules. Resolutions of the Philippine Commission
heretofore adopted authorizing appointments to any of the positions included
in this Act without compliance with the civil-service law and rules, are
hereby confirmed.
273

274
ACT NO. 1592
AN ACT AMENDING ACT NUMBERED TWELVE HUNDRED AND

FIFTY-EIGHT, ENTITLED “AN ACT MAKING ADDITIONAL
PROVISIONS TO THOSE CONTAINED IN ACT NUMBERED
ONE HUNDRED AND NINETY, RELATING TO THE EXERCISE
OF THE RIGHT OF EMINENT DOMAIN IN CASES WHERE THE
EXERCISE OF SUCH POWER IS INVOKED BY A RAILROAD
CORPORATION FOR THE PURPOSES OF CONSTRUCTING,
EXTENDING, OR OPERATING ITS LINE”

Commission, that:
SECTION 1. Section three of Act Numbered Twelve hundred and

fifty-eight, entitled “An Act making additional provisions to those contained
in Act Numbered One hundred and ninety, relating to the exercise of the
right of eminent domain in cases where the exercise of such power is invoked
by a railroad corporation for the purposes of constructing, extending or
operating its line, is hereby amended by adding at the end thereof the
following language:
“When condemnation proceedings are brought by any railway

corporation, in any court of competent jurisdiction in the Philippine Islands,
for the purpose of the expropriation of land for the proper corporate use of
such railway corporation, said corporation shall have the right to enter
immediately upon the possession of the land involved, after and upon the
deposit by it with the Treasurer of the Philippine Islands of the value of the
land, in money, as provisionally and promptly ascertained and fixed by the
court having jurisdiction of the proceedings, said sum to be held by the
Treasurer subject to the orders and final disposition of the court:
PROVIDED, HOWEVER, That the court may authorize the deposit with
the Insular Treasurer of a certificate of deposit of any depository of the
Government of the Philippine Islands in lieu of cash, such certificate to be
payable to the Insular Treasurer on demand in the amount directed by the
court to be deposited. The certificate and the moneys represented thereby
275
shall be subject to the orders and final disposition of the court. And in case
suit has already been commenced on any land and the money deposited
with the Insular Treasurer at the date of the passage of this Act, the said
money may, upon proper order of the court, be withdrawn from the Treasury
by the railway corporation which deposited the same, and a certificate of
deposit, as above described, may be deposited in lieu thereof. And the court
is empowered and directed, by appropriate order and writ if necessary, to
place the railway corporation in possession of the land, upon the making of
the deposit.”
SEC 2. The provisions of this Act shall apply to any railway

corporation in the Philippine Islands although its franchise may in terms
prescribe the deposit of actual cash.
SEC. 3. The public good requiring the speedy enactment of this bill, the
passage of the same is hereby expedited in accordance with section two
276
ACT NO. 1602

POSITIONS OF MASTER, MATE, PATRON, AND ENGINEER
OF SEAGOING VESSELS IN THE PHILIPPINE COASTWISE
TRADE, AND PRESCRIBING THE NUMBER OF ENGINEERS
TO BE EMPLOYED BY SUCH VESSELS”

Commission, that:
SECTION 1. Section one of Act Numbered Seven hundred and eighty,

for the positions of master, mate, patron, and engineer of seagoing vessels
in the Philippine coastwise trade, and prescribing the number of engineers
to be employed by such vessels,” is hereby amended to read as follows:
“SECTION 1. A board is hereby created, to consist of the Insular

Collector of Customs, the supervising inspector of hulls and boilers, and
assistant inspector of hulls, one person holding an unexpired license as
master in the Philippine coastwise trade, and one other competent person,
whose duty it shall be to examine and certify for licenses all applicants for
licenses as watch officers and engineers upon vessels of the Philippine
Islands. The Insular Collector of Customs shall be president of the board,
ex officio, and any three members thereof shall constitute a quorum for the
transaction of business. The board shall be known and referred to as the
“Board on Philippine Marine Examinations.” The Insular Collector of
Customs is authorized to designate the persons who shall constitute the
board, from among the classes above enumerated, and to detail from the
clerical force provided for the Bureau of Customs a competent person to
serve as secretary of the board without additional compensation:
PROVIDED, That nothing in this section shall be construed to make such
secretary a member of the board for any other purpose: AND PROVIDED
277
FURTHER, That the expenses of the said board shall be paid from the
regular appropriation for the Bureau of Customs.”
278
ACT NO. 1653
AN ACT TO AMEND ACT NUMBERED FIFTEEN HUNDRED AND

ELEVEN, ENTITLED “THE PHILIPPINE ROAD LAW,” BY
ENABLING MUNICIPALITIES TO AVAIL THEMSELVES OF ITS
PROVISIONS IN THE ABSENCE OF A PROVINCIAL VOTE OF
ACCEPTANCE AND BY ENABLING PROVINCES AND
MUNICIPALITIES TO AVAIL THEMSELVES OF ITS
PROVISIONS FOR A LIMITED PERIOD OF TIME

Commission, that:
SECTION 1. Section eighteen of Act Numbered Fifteen hundred

and eleven, entitled “The Philippine Road Law,” is hereby amended so
as to read as follows:
“SEC. 18. This Act shall not take effect throughout any province
until it has been accepted by the provincial board and by the municipal
councils of a majority of the municipalities in the province, but upon the
affirmative vote of the municipal council it may become effective in any
municipality in a province where there has been no vote of acceptance.
The vote of any province and its municipalities to make this Act effective
throughout the province, or by any municipality to make it effective in
such municipality, may be for a designated period of time, which shall not
be less than one year: PROVIDED, That in the Moro Province this Act
shall become effective when accepted by the legislative council without
submission to the vote of the presidents: AND PROVIDED FURTHER,
That section sixteen shall be applicable to all provinces of the Philippine
Islands, irrespective of whether the other provisions of this Act are or are
not extended thereto.”
279
280
ACT NO. 1672
AN ACT TO AMEND ACT NUMBERED EIGHTY-THREE BY

PROVIDING FOR THE ESTABLISHMENT AND
MAINTENANCE UNDER CERTAIN CONDITIONS OF
PROVIDING TOLL FERRIES

Commission, that:
SECTION 1. Act Numbered Eighty-three is hereby amended by

adding thereto a new section to be numbered forty-six and to read as follows:
“SEC. 46. Whenever for thirty days after service of a requested by

the provincial board any municipality declines or neglects to establish and
maintain a suitable system of ferries for public use, the provincial board
may designate, subject to revocation by the Governor-General, such ferries
as provincial toll ferries, may make appropriations from the provincial road
and bridge fund for the construction, maintenance, and operation thereof,
and may from time to time, subject to the approval of the Governor-General,
establish reasonable rates of tolls to be paid for the use hereof: PROVIDED,
That officers and enlisted men and civil employees of the United States
Army, Navy, and Marine Corps and other branches of the Federal Service
shall be exempt from the payment of toll or charges under this Act. The
proceeds from any such provincial toll ferry shall go into and become a
part of the provincial road and bridge fund of the province in which the
ferry is operated.
“Whenever either the Governor-General or the provincial board shall

decide that the financial situation of a province is such that the collection
of tolls on any ferry may be discontinued without injury to the welfare of
the province, the Governor-General or the provincial board, as the case
may be, shall so order and thereafter such ferry shall be free for public use.
“It shall be unlawful for any person whatever to use any such
provincial toll ferry except as provided in this section without paying the
281
toll provided therefor, and any person who shall make use thereof in violation
of this section shall be punished by a fine not to exceed fifty pesos and in
default of the payment thereof shall be imprisoned one day for each peso
of fine and costs unpaid.”
enactment of laws,” passed September twenty-sixth,, nineteen hundred.
282
ACT NO. 1714
AN ACT TO AMEND SUBDIVISION (d) OF SECTION ONE OF ACT

NUMBERED FIFTEEN HUNDRED AND TEN SO AS TO
AUTHORIZE A CHANGE OF THE RAILROAD ROUTE THEREIN
PRESCIRBED, AND AUTHORIZING AND PROVIDING FOR
THE CONSTRUCTION OF MILEAGE EQUIVALENT TO THAT
OF THE ROUTE ABANDONED, AND FOR OTHER PURPOSES

Commission, that:
SECTION 1. Subdivision (d) of section one of Act Numbered Fifteen

hundred and ten, entitled “An Act granting to the Manila Railroad Company
a concession for railway lines in the Islands of Luzon, and providing in
respect of proceedings for condemnation of land by public-service
corporation,” is hereby amended so as to read as follows:
“(d) A concession for a line from Nueva Caceres to Tabaco by way

of Legaspi, an estimated distance of eighty miles; and for branches from
such line from Pili to Lagonoy, an estimated distance of thirty-one miles,
and from Ligao toward Tabaco, an estimated distance of four miles, and
from Nueva Caceres, in either a northerly or westerly direction as may be
determined by the Governor-General, a further distance of seven, with the
right, at the option of the grantee, of extending said line to a point on the
west coast of the island of Luzon, to be approved by the Governor-General.”
SEC. 3. This Act shall take effect upon its approval by the Secretary
of War and upon the filing by the Manila Railroad Company with the
Executive Secretary of its acceptance, duly executed in writing, of the terms
of Act Numbered Fifteen hundred and ten as hereby amended.

283
ACT NO. 1735
AN ACT AUTHORIZING THE GOVERNOR-GENERAL TO EXECUTE

A CONCESSIONARY GRANT OR CONTRACT FOR A RAILWAY
LINE TO BAGUIO, PROVINCE OF BENGUET, AND FOR OTHER
PURPOSES

Commission, that:
SECTION. 1. Authority is hereby granted and given for the location,

construction, equipment, maintenance, and operation of a railway from
Manila or from any point on an already existing or authorized railway, to
Baguio, in the Province of Benguet; and the Governor-General is hereby
authorized, on behalf of the Government of the Philippine Islands, to
determine the grantee of this concession in the manner provided in this
Act, and with such grantee to execute a concessionary grant or contract in
the following form:
“This instrument made, executed, and entered into this

_____________ day of ____________, anno Domini _____________ by
and between the Government of the Philippine Islands, by the Governor-
General of the Philippine Islands, of the one part and
____________________________, of the other part: Witnesseth that:
“Whereas, under and by virtue of section seventy-four (74) of the

Act of Congress of the United States approved July first, nineteen hundred
and two, the Government of the Philippine Islands was authorized and
empowered, among other things, to grant franchises, privileges, and
concessions for the construction and operation of works of public utility
and service, as by reference thereto will more fully appear; and
“Whereas, under and by virtue of section four (4) and five (5) of the
Act of the Congress of the United States approved February sixth, nineteen
hundred and five, the Government of the Philippine Islands was empowered,
among other things, to enter into a contract of guaranty with any railroad
284
company organized pursuant to the laws of said Government, or of the

United States or any State thereof, undertaking to construct, equip, operate,
and maintain any railroad in said Islands which should be specifically
authorized by said Government, under terms, conditions, and restrictions
therein fully recited, as by reference thereto will appear.
“In consideration thereof, it is conceded and granted by the

government of the Philippine Islands (hereinafter referred to as the
Government), of the one part, and contracted and agreed by the party of the
second part (hereinafter referred to as the grantee), for itself, and for its
“The grantee, and its successors and assigns, are hereby granted by
the Government a concession in perpetuity for a line of railway in the
Philippine Islands, generally and approximately as follows and subject to
such variations as may be approved by the Governor-General, and ratified
by the Secretary of War, as hereinafter provided:
“(The Governor-General shall here fill in the route to be determined

upon, on the authority hereinbefore given.)
“1. It is understood that the route of the line above mentioned is

intended to be approximate only, and the grantee shall furnish the Governor-
General with detailed plans showing the exact route, after the survey has
been completed.
“The grantee may, with the consent of the Governor-General in

writing, ratified by the Secretary of War, construct any branch lines, in its
judgment desirable, for the purpose of reaching traffic points within a
reasonable distance from the main line of said railway above described.
“Surveys on and along the proposed line shall be commenced by the

grantee within sixty days after written demand therefor shall be made to
the grantee by the Governor-General; detailed reports of the definite plans,
surveys, and specifications, accompanied by complete maps and profiles
of the character and kind in respect of such construction and equipment
285
directed by the Governor-General, shall in writing, be submitted to the

Governor-General within twelve months after said demand, or at such later
time as may be permitted by the Governor-General or the Secretary of
War; and within two months after the submission thereof to the Governor-
General the later shall fix and determine the final route, substantially in
accordance with the route as above generally described.
“2. Under and by virtue hereof the right of way through the public
lands of the Government of the Philippine Islands is hereby given and
granted to the grantee for the construction, operation, and maintenance of
the railroad as herein authorized to the extent of one hundred (100) feet as
may be found necessary for said purposes: PROVIDED, That the same be
approved by the Governor General as a part of the definite plans,
public lands and to take from such lands earth, stone, timber, and other
or for sale under the Public Land Act, or to timber lands of the Government
of the Philippine Islands, and shall not apply to lands used and assigned for
other public purposes, or to the lands known as the friar lands.
“The grantee shall have the right, with the approval of the Governor-
General.
“Lands or rights of use and occupation of lands granted under the

foregoing provisions of this paragraph shall revert to the government by
which they are respectively granted, upon the termination of this franchise
286
“The grantee shall also have the right to acquire from corporations,
or private individuals, by purchase, contract, lease, grant, or donation, any
and operation of the said line of railway.
“The grantee shall also have the right to acquire by condemnation

the lands necessary for the right of way, for bridges, for terminals, including
wharves and docks at harbor points and elsewhere, for sidings, stations,
engine houses, water stations, and other appropriate buildings and structures
for the proper and convenient construction, operation, and maintenance of
the lines of railway herein authorized; but no lands within the boundaries
of any province, city, town, or municipality shall be occupied by the grantee
if the same are in actual use for provincial, governmental, or municipal
purposes, nor shall any land within he boundaries of any city, town or
municipality be so occupied without the consent of the proper authorities
of such city, town, or municipality, unless the Governor-General shall
consent to the same. The right of condemnation or eminent domain shall
be exercised by the grantee in accordance with the laws of the Philippine
Islands at the time being in force.
“The grantee shall have the right to construct and maintain for the
operation of said railway any and all tracks (single, double, or more), bridges,
viaducts, culverts, fences, and other structures; and all depots, station houses,
engine houses, car houses, freight houses, wood houses, and other buildings;
and all machine shops and other shops, water tanks, turntables,
superstructures, erections, and fixtures; and all elevators, warehouses,
wharves, piers, and other facilities – terminal or otherwise – for operating
said railroad, and also any hotels or restaurants at any station or terminal.
“3. By the acceptance hereof the grantee stipulates and agrees to

construct said railway herein described in accordance with the terms and
conditions herein imposed, and in perpetuity properly to maintain and
operate it as a commercial railway and a common carrier in a manner suitable
to the local conditions.
“4. All racks of said line railway shall be of the gauge of three feet
six inches. All materials employed in construction and all equipment shall
287
be of good class and quality and designed to fully meet the requirements of
local traffic and local conditions. This specification as to gauge may be
modified with the approval of the Governor-General. And they said grantee
hereby agrees to construct ready for operation this railway to Baguio within
the period of three years after the approval of the final plans for the same.
Such time for construction and equipment may be extended by the governor-
general when, in his judgment, the grantee has been prevented from
construction work by reason of unforeseen labor difficulties, earthquakes,
action of the elements, rebellion, ladronism, or other causes beyond the
control of the grantee.
“The said railway shall be operated as a commercial railway for the

transportation of freight, passengers, express, and mail, and, on demand of
the Governor-General, preference of carriage shall be given over said line
of railway, on any part thereof, to business offered by the Government of
the United States or of the Philippine Islands.
“5. The motive power of said railway shall be steam or electricity or

other motive power approved by the Governor-General.
“6. The grantee, in respect of said railway, shall permit (and the
right is reserved the Government of the Philippine Islands to grant
permission to) any other railway now constructed or hereafter to be
constructed in the Philippine Islands to form and establish traffic connections
or arrangements with it on fair and equitable terms, to be determined, in
case of disagreement, by the Governor-General of the Philippine Islands,
upon petition by either party, and, upon appeal, by the Secretary of War.
“The grantee and its contractors and subcontractors shall, so far as

along the line of railway.
“8. The grantee shall have the right to construct and operate telegraph,
telephone, and electrical transmission lines over said railway, for the use
of the railway and its business, and also, with the approval of the Secretary
of War, for public service, and commercial purposes, but these latter
privileges shall be subject to the following provisions:
288
“In the construction of telegraph or telephone lines along the right of

way the grantee shall erect and maintain poles with sufficient space thereon
to permit the Government of the Philippine Islands, at the expense of said
Government, to place, operate, and maintain four wires for telegraph,
telephone, and electrical transmission for any Government purpose between
the termini of the line of railway, main or branch, and the Government of
the Philippine Islands reserves to itself the right to construct, maintain, and
operate telegraph, telephone, or electrical transmission lines over the right
of way of said railway for commercial, military, or governmental purposes,
without unreasonably interfering with the construction, maintenance, and
operation by the grantee of its railway, telegraph, telephone and electrical
transmission lines.
“The grantee shall furnish suitable telegraph offices and operators at

“9. All plans for work to be done hereunder and the work itself shall
be subject to the inspection of the Governor-General or agents appointed
by him, and the books and accounts of all the railways operated, leased,
owned, or maintained by the grantee, or its successors, or assigns hereunder,
shall be subject to the official inspection of the Government of the Philippine
Islands.
“10. All material imported into the Philippine Islands for the
construction and equipment of the railway undertaken by the grantee
pursuant to authority conferred by this concessionary grant regulations as
shall be prescribed by the Government of the Philippine Islands:
PROVIDED, That this provision shall not extend or apply to any portion
of such line, or to any material or supplies therefor, after same shall have
been constructed and equipped: PROVIDED FURTHER, That if any
material so admitted free of duty shall not in fact be used for the construction
and equipment of such railway, the duty shall become payable thereon
whenever it is ascertained that it has been used or disposed of or is held for
other purposes.
289
“11. The right is hereby given to the grantee to fix, charge, and
collect just and reasonable compensation for the carriage of freight and
passengers; such right, however, for the purpose of insuring just and
reasonable rates at all times, shall be subject to effective regulation, to be
exercised, in the first instance, by the Government of the Philippine Islands,
and, upon appeal, by the Secretary of War of the United States.
“12. In consideration of the premises, and of the granting of this

concession or franchise, there shall be paid by the grantee to the Government
of the Philippine Islands, annually, for the period of thirty (30) years from
the date hereof, an amount equal to one-half of one (1/2) per centum of the
gross earnings of the grantee in respect of the line covered hereby for the
preceding year; after said period of thirty (30) years, and for fifty (50)
years thereafter, the amount so to be paid annually shall be an amount
equal to one and one-half (1½) per centum of such gross earnings for the
preceding year; and after such period of eighty (80) years the percentage
and amount so to be paid annually by the grantee shall be fixed by the
Government of the Philippine Islands.
“Such annual payments, when promptly and fully made by the grantee,
shall be in lieu of all taxes of every name and nature – municipal, provincial,
or central – upon its capital stock, franchise, right of way, earnings, and all
other property owned or operated by the grantee under this concession or
franchise.
“13. The said railway line shall be a post route and military road,
subject to the use of the Government of the Philippine Islands and the
United States of America for postal, military, naval, and other government
service, and also subject to such reasonable regulations as the Government
of the Philippines Islands, with the approval of the Secretary of War, shall
impose restricting the charges for such Government Transportation.
“The grantee undertakes to provide its trains necessary facilities for

carrying the mails, under terms and conditions to be agreed upon by the
Director of Posts and the grantee; and, in case they shall not be able to
agree, the Governor-General shall fix the terms and conditions, after a
290
hearing shall have been given the grantee thereon; but the compensation
for such carriage of mails shall, under all circumstances, be a reasonable
sum fixed with reference to the conditions existing in the Philippine Islands.
“Reasonable compensation shall be allowed for the urgent

transportation of mail, troops, bullion, ammunition, or freight, for the
Government, at other hours or at higher speed than passenger trains are
ordinarily run. The grantee shall provide, at any hour of the day or night,
such facilities for such purposes as may be necessary.
“14. The grantee shall at all times have and maintain, by corporate
declaration, satisfactory to the Governor-General, an office and domicile
in the Philippine Islands and a representative and agent at all times fully
qualified and empowered to treat with the Government of the Philippine
Islands in respect of all matters arising hereunder, and upon whom process
may be served in any judicial proceeding for any object or purpose, whether
arising hereunder or otherwise and upon whom also any and all notices,
demands, tenders, deliveries, and communications may be given or made
to, for or in behalf of the grantee hereunder, and its and their successors
and assigns; and all process so served, and all notices, demands, tenders,
deliveries, and communications so made, shall be legal, sufficient, and
binding upon the grantee, and upon its and their successors and assigns, as
if made to it or them in person.
“15. This franchise or concession is subject to amendment, alteration,

or repeal by the Congress of the Unites States; no stock or bonds shall be
issued by the grantee hereunder except in exchange for actual cash, or for
property at a fair valuation, equal to the par value of the stock or bond
dividends.
“The foregoing and all other terms and provisions of section seventy-
four (74) of the Act of Congress approved July first, nineteen hundred and
two, and section five (5) of the Act of Congress approved February sixth,
nineteen hundred and five, relating to said railway, are incorporated into
and made a part hereof, with the same effect as if they were set forth herein
at length.
291
“16. The word ‘grantee’ herein shall be held to include and apply to
“In witness whereof, by virtue of authority conferred upon him, this

Philippine Islands on behalf of the Government of the Philippine Islands.
“Done the day and year first above written.
“(SEAL.)
“THE GOVERNMENT OF THE PHILIPPINE ISLANDS,
“By ______________________________________,
“Governor-General of the Philippine Islands.
“The foregoing concessionary grant and contract is hereby accepted

by the grantee in its corporate name and under its corporate seal, by its
proper officers hereto duly authorized by resolution of its board of directors,
passed on the __________ day of _____________ nineteen hundred and
___________________, certified copies of which are hereto attached and
made a part thereof.
“__________________________________,
“By _______________________________,
“As Its President.

“Attest:
“________________________, (CORPORATE SEAL)

“As Its Secretary”
292
SEC. 2. In addition to the terms and conditions set out in the foregoing
concessionary grant or contract, the Governor-General with the approval
of the Secretary of War, may incorporate any or all of the following
additional terms and conditions in said concessionary grant or contract:
(a) 1. For all purposes hereunder and for the determination of the
amount of first lien bonds in respect of which interest will be guaranteed as
hereinafter provided, the actual total cost of construction and equipment of
the railway herein referred to shall be deemed to be the actual cost, first, of
all necessary land for buildings, right of way, and other railway purposes;
second, of all materials and labor, including transportation of employees,
tools, implements, plants, and animals used in such construction and
equipment, marine and fire insurance upon any such material, machinery,
and so forth, used in and expended upon or in aid of the construction of the
roadbeds, tracks and bridges, and in and about the building of telegraph,
telephone, and electrical transmission lines, sidings, and switches, depots,
terminals, roundhouses, turntables, water stations, repair and machine shops,
freight houses, docks, wharves, warehouses, waiting rooms, dining rooms,
hotels, and employee boarding houses, and all other appropriate buildings
and structures necessary for the construction, maintenance, and operation
of the railway line, on plans approved by the Governor-General; third, of
all expenses of engineering, surveying, and supervising in the Philippine
Islands, both of the grantee and of the Government of the Philippine Islands,
connected with the building of said railroad, and all legal expenses of the
Government of the Philippine Islands to be borne and paid by the granted
upon demand of the Government of the Philippine Islands; fourth, of all
expenses and outlays necessarily incurred by the grantee, or damages done
to the property of the grantee covered hereby, arising from acts of rebellion,
ladronism, outlawry, earthquakes, or through action of the elements, or
through accidents or acts of God; fifth, of all equipment of every name and
nature necessary for the operation of the railway line covered hereby,
including locomotives, passenger and freight cars, wrecking cars, and of
all tools, implements, and machinery for the construction, operation, and
repair of such railway line; sixth every other outlay and expense of
whatsoever character and wheresoever made, actually incurred in and about
the construction and equipment of the line of railway herein referred to,
293
and whatever included in an of the specific items of cost herein enumerated

or not; seventh, interest at four per centum per annum upon all sums
expended for such construction and equipment, from the respective dates
at which outlays are made, until the issue and delivery, in aid of such
construction and equipment, of the bonds respecting which the Government
of the Philippine Islands will so guarantee interest, less any net earning
arising from the operation of any portion of such line during construction;
eight, for the constructor’s profit, and expenses incurred in connection with
the organizing of the grantee, and such general expense outside of the
Philippine Islands as it may be necessary for the grantee incur preliminary
to its organization and acceptance of this concession, there shall be added
as a part of said actual total cost of construction, to be determined as above,
an amount equal to fifteen and one-half per centum of such actual total
cost: PROVIDED, That the cost of material, supplies, and equipment shall
be the actual first cost thereof to the grantee delivered on the ground where
it is to be used, and that he cost of labor, superintendence, and administration
shall be the actual wages, salaries, and fees paid in good faith by the grantee,
and shall not include any commission, allowances, profits, rebates, or
drawbacks to any third person.
All plans for work to be done hereunder shall be subject to the

approval of the Governor-General, the work itself shall be subject to his
inspection, and all bills and construction accounts shall be subject to the
audit of the Government of the Philippine Islands.
2. Under and in accordance with the terms and conditions of section

four of the Act of Congress approved February sixth, nineteen hundred and
five, the Government of the Philippine Islands hereby guarantees, for a
period of thirty years, from the date of issue and delivery of the bonds
hereinafter described, the due and punctual payment by the grantee of
interest (and in the event of the default of the grantee it will itself pay the
same upon demand) at the rate of four per centum per annum, upon first-
lien bonds to be issued by the grantee under and in conformity with his
instrument and said Act of Congress, to an amount of ninety-five per centum
of the actual total cost of construction and equipment of such railway and
appurtenances, completed in accordance with such approved definite plans
294
and as such actual total costs is determined in the foregoing paragraph

hereof, such bonds to be delivered under the terms, conditions, and
circumstances and at the time prescribed by said section four of the said
Act of Congress approved February sixth, nineteen hundred and five.
The grantee covenants and agrees duly and punctually to pay the
interest upon all bonds the interest upon which may be so guaranteed by
the Government of the Philippine Islands, and such interest becomes due
and payable; and in all respects duly and punctually to fulfill the covenants
and conditions of the mortgage securing such bonds; and that all bonds in
respect of which the Government of the Philippine Islands shall so guarantee
interest shall be secured by an absolute first lien, evidenced by mortgage
or deed of trust, upon the railroad, in respect of which bonds may be so
issued, and the equipment, franchises (including this concessionary contract
or grant), and other property, real, personal, and mixed, earnings, rents,
revenues, and income hereof, then owned and thereafter to be acquired.
Appropriate instruments, sufficient in law to secure more effectually

any liens existing or arising under any provision of the said Acts of Congress
and this contract, in favor of the Government of the Philippine Islands,
under or by reason of the making of said guaranty and of any payment
made or to be made thereunder, subject to such firs-lien bonds and the
mortgage securing the same, shall be duly executed and delivered to the
Government of the Philippine Islands, or to any trustee by it designated.
But failure to execute such instruments shall not impair or affect the liens
or the remedy of foreclosure secured by said Acts of Congress, this contract,
or other instruments.
It is expressly understood and agreed that the Government of the

Philippine Islands, although obligated upon its said guaranty of interest,
shall not be in any sense or to any degree obligated for the payment of any
part of the principal of any bond respecting which it may so guarantee the
payment of interest, nor upon any other bond, indebtedness, contract,
liability, or obligation whatsoever of the grantee, and that any such bonds
shall not be deemed, for any purpose whatsoever, to be the bonds or
obligations of the Government of the Philippine Islands, or be deemed issued
by said Government or under its authority.
295
After the construction and equipment of the railway herein referred

to in accordance with the foregoing provisions and all others of this contract
of guaranty, the grantee shall apply its gross earnings as follows: First, to
the necessary operating expenses, including reasonable expenses of the
corporation, and the amounts due the Government of the Philippine Islands
under paragraph thirteen hereof; second, to the necessary and ordinary
repairs of said railroad and its equipment; third, to such betterments and
extraordinary repairs of said railroad or equipment as may be first by the
Governor-General of the Philippine Islands, in writing, expressly consented
to; fourth to the payment of the interest on the bonds, the interest on which
to any extent shall have been guaranteed by the Government of the
Philippine Islands under his concession.
The form of the bonds, mortgages, deeds of trust, liens, guarantees,

and other instruments herein provided for, as well as the legality of the
organization of the grantee herein and its compliance with the requirements
of the Acts of Congress, the laws of the Philippine Islands, and this
concessionary grant, shall be approved by the Secretary of War.
3. If the grantee makes breach of an of the conditions hereof, or of

any of the obligations by is assumed hereunder, in respect to the construction
of said railway, and shall allow the same to continue for upward of four
months, after notice in writing from the Government of the Philippine
Islands to the grantee, then, in such case, at any time thereafter, the
Government of the Philippine Islands, at its option and at the cost and
expense of the grantee, may do and perform any and all acts and things
which it may deem useful and necessary to insure the construction,
equipment, and completion of the railway covered hereby or the fulfillment
of such condition or obligation, as the case may be; and in said event such
cost and expense shall thereupon thenceforth be and become a debt of the
grantee presently payable, and a lien upon the said railway and all franchises
and property relating thereto, subject only to the first mortgage securing
the first lien bonds respecting which the Government of the Philippine
Islands may guarantee interest as herein provided, and shall be enforceable
by foreclosure in the same manner as if secured by a second mortgage.
The remedy and relief given to the Government of the Philippine Islands
296
by this paragraph shall be considered as an additional remedy and relief

and shall not exclude the Government of the Philippine Islands from any
remedy, relief, or right of action which said Government might otherwise
have.
4. The Government of the Philippine Islands, through the auditing,

engineering, and railroad Bureaus thereof, and by such other agencies as
may be fixed by law, shall have the power, by monthly or other regular
inspection of the books, accounts, vouchers, and other papers, or by special
inspection, if in its judgment necessary, to keep itself advised of the financial
conditions and operations of the grantee to enable it to exercise the powers
vested in the Government of the Philippine Islands by law in respect to this
franchise and concession, and especially to verify the statements in the
financial reports of the railway company as to construction, maintenance,
and operation, with a view to the proper enforcement and execution of the
obligations of the grantee as contained in this franchise, and particularly in
paragraphs one and two hereof.
(b) A guaranty from the Government of the Philippine Islands of a

minimum annual gross business, of an amount to be fixed by the Governor-
General, by and with the approval of the Secretary of War, and not to exceed
one hundred thousand pesos: PROVIDED, HOWEVER, That no guaranty
of this nature shall be executed for a period exceeding fifteen years from
the date of the execution of the concessionary grant or contract.
(c) The right to make use of water power from the Bued and Agno
Rivers, or their tributaries, on terms and conditions to be determined by the
Governor-General, by and with the approval of the Secretary of War.
(d) The grantee may use the Benguet Road, with all its bridges and
other appurtenances, or any part thereof, for the construction of the said
railway, on terms and conditions as to use of the same and the closing of
the road or an portion thereof to traffic, either temporarily or permanently,
to be determined by the Governor-General by and with the approval of the
Secretary of War.
297
SEC. 3. The Governor-General of the Philippine Islands is hereby

authorized and directed to execute, for and on behalf of the Government of
the Philippine Islands, the concessionary contract or grant set out in this
Act, after its approval by the Secretary of War, with the best bidder for the
same, after public advertisement for a period of not less than three months,
and to receive on said behalf one of the triplicate copies thereof when the
same are fully executed and when a bond properly executed, conditioned
upon the signing and execution by the grantee of the concessionary contract
or grant set out in a form and with sureties acceptable to the Secretary of
War or the Governor-General, shall have been delivered to the Secretary of
War or the Governor-General.
The Governor-General may reject any or all bids and may readvertise
the concessions as often as he deems the public interest requires such action:
PROVDED, HOWEVER, That the authority of the Governor-General to
execute this concessionary grant or contract shall cease on the expiration
of three years from the date of the passage of this Act.
SEC. 5. This Act shall take effect on its passage, but the grant of the
franchise shall not become operative unless and until the said concessionary
grant or contract shall have been executed in the form and manner provided
in this Act.
298
ACT NO. 1738
AN ACT TO AMEND SECTION TWENTY-FOUR OF ACT NUMBERED

FIVE HUNDRED AND TWENTY BY PROVIDING FOR
ENSIGNS FOR VESSELS OPERATING UNDER THE
CONTRACTS AUTHORIZED BY ACT NUMBNERED THIRTEEN
HUNDRED AND TEN ACT NUMBERED SEVENTEEN
HUNDRED AND FIFTEEN

Commission, that:
SECTION 1. Section twenty-four of Act Numbered Five hundred

and twenty, entitled “An Act permitting the issuing of special licenses to
engage in the coastwise trade of the Philippine Islands until July first,
nineteen hundred and four, to vessels not entitled to general coastwise-
trade licenses under the Customs Administrative Act, and authorizing the
fixing of maximum rates for transportation of merchandise and passengers
in the coastwise trade,” is hereby amended to read as follows:
“SEC. 24. Any vessel possessing a certificate of protection issued

under section one hundred and seventeen of the Philippine Customs
Administrative Act shall be entitled to the privileges and shall be subject to
all the penalties directly or indirectly imposed in section nineteen, twenty,
and twenty-one of this Act, and all vessels engaged in the Philippine
coastwise trade on or after the first day of January, nineteen hundred and
three shall fly the Philippine coasting emblem at the mainmast: PROVIDED,
HOWEVER, That all vessels operating under the Government contracts
authorized by Acts Numbered Thirteen hundred and ten and Seventeen
hundred and fifteen shall fly at the mainmast, instead of the Philippine
coasting emblem, an ensign of a design to be approved by the Secretary of
Commerce and Police.”
299

enactment of law,” passed September twenty-sixth, nineteen hundred.
300
ACT NO. 1751
AN ACT TO PROVIDE FOR THE ARREST AND RETURN TO SHIP OF

SEAMEN DESERTING FROM CERTAIN MERCHANT VESSELS
IN THE PHILIPPINE ISLANDS; FOR THE ADJUDICATION BY
CONSULS OF CERTAIN DISPUTES AND FOR THE
ENFORCEMENT OF CONSULAR DECISIONS IN SUCH CASES;
AND REPEALING ACT NUMBERED FOURTEEN HUNDRED
AND THIRTY-NINE

Commission, that:
SECTION 1. On application made in writing by any consular officer

of any foreign government having a treaty with the United States, stipulating
for the restoration of seamen deserting, stating that the person therein named
has deserted from a vessel of any such government while in any port of
Philippine Islands, and on proof by the exhibition of the register of the
vessel, ship’s roll, or other official document that the person named belonged
at the time of desertion to the crew of such vessel, it shall be the duty of the
Court of First Instance, or a judge thereof, to issue a warrant and to cause
such person to be arrested and brought before such court for examination.
If on examination the facts stated are found to be true, the person arrested,
shall be delivered up to the consular officer to be sent back to the dominions
of any such government, or on request and at the expense of the consular
officer shall be detained until the consular officer finds an opportunity to
send him back to the dominions of any such government. No person so
arrested shall be detained for any greater period than stipulated by the treaty
under and by virtue of which the demand for his arrest shall be made, and
in case such treaty provides no term he shall not be detained more than
four months after his arrest, but at the end of that time shall be set at liberty
and shall not be again molested for the same cause. If any such disorder
shall be found to have committed any crime or offense his surrender may
be delayed until the tribunal before which the case shall be pending or may
be cognized shall have pronounced its sentence and such sentence shall
have been carried into effect.
301
SEC. 2. Like application may be made by Philippine customs officers

acting as American consular officers under authority of section eighty-four
of the Act of Congress of 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,” in which
case the same procedure shall be had as if the case arose out of an application
by the consul of a friendly foreign nation having a treaty with the United
States stipulating for the return of deserting seamen: PROVIDED,
HOWEVER, That no seamen brought before a court on the application of
an American consular officer shall be released because of the American
citizenship of such seamen.
SEC. 3. The proceedings at the examination of a person arrested

under the preceding sections shall be summary in character and shall be
regulated by the rule of court. The examination shall be held as soon as
practicable after arrest, and such proceedings may be dismissed, or the
person so in custody discharged, at any time upon written request of the
consular or acting consular officer at whose instance the arrest was made.
SEC. 4. Whenever it is stipulated by treaty or convention between

the United States, and any foreign nation that the consuls-general, consuls,
vice-consuls, or consular or commercial agents of each nation shall have
exclusive jurisdiction of controversies, difficulties, or disorders arising at
sea or in the waters or ports of the other nation, between the masters or
officers and any of the crew, or between any of the crew themselves, of any
vessel belonging to the nation represented by such consular officer, and the
President has issued his proclamation in respect thereto as prescribed in
section four thousand and seventy-nine of the Revised Statutes of the United
States, such stipulation shall be executed and enforce within the jurisdiction
of the Philippine Islands, as hereinafter declared.
SEC. 5. In all cases within the purview of the last preceding section,
the consul-general, consul, or other consular or commercial authority of
such foreign nation charged with the appropriate duty in the particular case,
may make application to any Court of First Instance, or to any judge thereof,
setting forth that such controversy, difficulty, or disorder has arisen, briefly
302
stating the nature thereof and when and where the same occurred, and
exhibiting a certified copy or extract of the shipping articles, roll, or other
paper of the vessel to the effect that the person in question is of the crew or
of ship’s company of such vessel; and further stating and certifying that
such person has withdrawn himself, or is believed to be about to withdraw
himself, from the control, and discipline of the master and officers of the
vessel, or that he has refused , or is about to refuse, to submit to and obey
the lawful jurisdiction of such consular or commercial authority in the
premises; and further stating and certifying that, to the best of the knowledge
and belief to the officer certifying (unless such officer be acting as an
American consular officer), such person is not a citizen of the United States.
Such application shall be in writing and duly authenticated by the consular
or other sufficient official seal. Thereupon such Court of First Instance, or
judge thereof, shall issue a warrant for the arrest of the person so complained
of directed to the sheriff of the province, or chief of police of the city of
Manila, as the case may be, or in his discretion to any person being a citizen
of the Philippine Islands or of the United States whom be may specially
depute for the purpose, requiring such person to be brought before him for
examination at a certain time and place.
SEC. 6. If, on such examination, it is made to appear that the person

so arrested is a citizen of the United States, and that the application is made
by a consul other than the United States consul, and in all cases where it
shall appear that the person arrested is a citizen of the Philippine Islands,
he shall be forthwith discharged from the arrest, and shall be left to the
ordinary course of law. But if this is not made to appear, and such court or
judge finds, upon the papers hereinbefore referred to, a sufficient prima
facie case the matter concerns only the internal order and discipline of
such foreign vessel, or that the case whether its nature be civil or criminal,
does not affect directly the execution of the laws in force in the Philippine
Islands or the rights and duties of any citizen of the Philippine Islands or of
the United States, with the above exception, he shall forthwith commit
such person to prison, after approval of the commitment by the appropriate
consular officer, where prisoners under sentence for crime may be lawfully
committed, or, in his discretion, to the master or chief officer of such foreign
vessel, to be subject to the lawful orders, control, and discipline of such
303
master or chief officer, and to the jurisdiction of the consular or commercial

authority of the nation to which such vessel belongs, to the exclusion of
any authority or jurisdiction of the Philippine Islands in the premises. No
person shall be detained more than the period of time stipulated in the
treaty under which the proceedings are had, and if the treaty specifies no
time, or if the application is made by officers acting as American consuls,
no such person shall be detained more than two months after his arrest, and
at the end of the time herein specified for his detention he shall be set at
liberty and shall not again be arrested for the same cause. The expenses of
the arrest and the detention of the person so arrested shall be paid by the
consular officers making the application.
SEC. 7. For the purposes of the preceding sections, Philippine

customs officers acting as American consular officers shall have rights,
privileges, and powers similar to those granted by this Act to the consuls of
a friendly foreign nation having a treaty with the United States in respect
to which the President has issued his proclamation as described in section
four of this Act.
SEC. 8. Act Numbered Fourteen hundred and thirty-nine and all

Acts and parts of Acts in conflict with this Act are hereby repealed.
SEC. 9. The public good requiring the speedy enactment of this bill
304
ACT NO. 1762
AN ACT FIXING THE MAXIMUM RATES WHICH MAY BE

CHARGED BY THE MANILA SUBURBAN RAILWAYS
COMPANY

Commission, that:
SECTION 1. For the purpose of fixing the charges for carrying

passengers on the line of the Manila Suburban Railways Company, the
construction of which is authorized by Acts Numbered Fourteen hundred
and forty-six and Fifteen hundred and eighty-nine, the Manila Suburdan
Railways Company is hereby authorized to divide its line into the following
sections:
A section commencing at the beginning of the line Calle Real, in

Santa Ana, and running to Fort William Mckinley, which shall be held to
mean any point with Fort William Mckinley Reservation.
A section beginning at Fort William Mckinley and running to Pasig.
A section beginning at Fort William Mckinley and running to Taguig;

which shall be held to mean any point within half a mile to the town center.
A section beginning at Taguig and running to the end of the line, at a

point on Laguna Bay at or near Mabato Point.
SEC. 2. The rates to be charged for carrying passengers shall not

exceed the following:
On the section between the beginning of the line and Fort William
Mckinley, ten centavos first class and five centavos second class;
On the section between Fort William Mckinley and Pasig, eight

centavos first class and five centavos class;
305
On the section between Fort William Mckinley and Taguig, eight

centavos first class and five centavos second class;
On the section between Taguig and the terminus at Laguna de Bay,

ten centavos first class and five centavos second class; all of which said
rates shall apply to passengers travelling in either direction.
SEC. 3. The right is reserved to the Government of the Philippine

Islands effectively to regulate the rates provided in this Act: PROVIDED,
That in no case shall such rates be fixed at less than the maximum prescribed
by the provisions of Acts Numebered Fourteen hundred and forty-six and
Fifteen hundred and eighty-nine, for the period during which the rates as
fixed in said Acts are to be in effect.
SEC. 4. The Manila Suburban Railways Company, in order to secure

the benefit of this Act, must file with Executive Secretary of the Philippine
Islands its acceptance of the same within sixty days from the passage hereof.
the passage of the same is hereby expedited in accordance with section of
“An Act prescribing the order of procedure by the Commission in the
enactment of laws,” passed September twenty-sixth nineteen hundred.
306
ACT NO. 1812
AN ACT PROVIDING FOR THE FILING WITH THE DIVISION OF

ARCHIVES PATENTS, COPYRIGHTS, AND TRADE-MARKS OF
THE EXECUTIVE BUREAU OF THE CONTRACTS OF
MORTGAGE EXECUTED BY THE MANILA RAILROAD
COMPANY AS SECURITY FOR THE ISSUANCE OF BONDS
AND OTHER OBLIGATIONS, CREATING AND FIXING UPON
THE PROPERTY COVERED BY SAID INSTRUMENTS A LIEN
AT AND FROM THE TIME OF FILING THE SAME, AND
EXEMPTING SAID INSTRUMENTS FROM THE PAYMENT OF
STAMP TAXES, AND FOR OTHER PURPOSES
By authority of the United States, be it enacted by the Philippine Legislature,

that:
SECTION 1. The first and second mortgages for the issuance of

bonds executed by the Manila Railroad Company to the Central Trust
Company of New York under date of January first, nineteen hundred and
seven, and to the New York Trust Company of New York under date of
April first, nineteen hundred and seven, respectively, shall become a lien
upon all of the property covered by the said instrument at and from the
time the said instruments shall have been filed with the division of archives,
patents, copyrights, and trade-marks of the Executive Bureau, which said
lien shall be prior to and take precedence of any and all liens and
incumbrances which may thereafter arise against the said property, except
such liens as arise from the imposition of lawful taxes, fines, and
assessments upon the same; and any subsequent conveyance of the said
property, or any part thereof, or any interest therein, shall be subject to the
aforesaid lien.
SEC. 2. Nothing in this Act contained shall be construed as depriving

the grantees or beneficiaries under said instruments of any right or lien in
connection therewith which exist by law independent of this Act.
SEC. 3. The chief of the division of archives, patents, copyrights,

and trade-marks of the Executive Bureau shall be, upon filing of the
307
instruments provided for in this Act, indorse thereon the date and hour
when the same were filed, with his official signature thereto, and the said
indorsement shall be prima facie evidence of the date and hour when the
instruments were filed for record.
SEC. 4. The said instrument shall be preserved and indexed in the

same manner as the papers and documents of corporations filed with the
division of archives, patents, copyrights, and trade-marks under the provision
of Act Numbered Fourteen hundred and fifty-nine and amendments thereto.

and trade-mark shall collect for the filing of each one of the instruments
provided for in this Act the sum of twenty-five pesos.
SEC. 6. The said instruments are hereby exempted from the payment
of the stamp taxes provided by section one hundred and sixteen of Act
Numbered Eleven hundred and eighty-nine, as amended.
SEC. 7. A copy of each one of the said instruments, certified by the

chief of the division of archives, patents, copyrights, and trade-marks of
the Executive Bureau, shall be of and have the same legal effect as the
original.
308
ACT NO. 1820
AN ACT PROVIDING FOR THE EXPENDITURE OF SEVENTEEN

THOUSAND DOLLARS, UNITED STATES CURRENCY, FOR
SALARY AND TRAVELING EXPENSES OF A DELEGATE FROM
THE PHILIPPINE ISLANDS AND SUBORDINATE PERSONNEL
TO ATTEND THE INTERNATIONAL NAVIGATION
CONFERENCE TO BE HELD FROM THE TWENTY-EIGHT, IN
SAINT PETERSBURG, RUSSIA, AND FOR OTHER
PURPOSES

Legislature, that:
SECTION. 1. The sum of seventeen thousand dollars, United States

currency, or so much thereof as may be necessary, is hereby appropriated,
out of the funds in the Insular Treasury not otherwise appropriated, for
travelling expenses and expenses of subsistence while travelling and for
salary of the delegate from the Philippine Islands and of subordinate
personnel who shall attend the International Conference of Navigation to
be held in Saint Petersburg, Russia, from the twenty-eight of May, nineteen
hundred and eight.
SEC. 2. Said delegate shall be appointed by the Governor-General,

and will receive a salary of one thousand five hundred dollars, United States
currency, a month from the date of his embarkation for Saint Petersburg
until one month after the said conference shall have been closed, and his
travelling expenses and expenses of subsistence going and returning, in
accordance with the next preceding section, shall be paid by the Insular
Treasurer.
SEC. 3. The delegate is hereby authorized to appoint the necessary

subordinate personnel, and the salary of said personnel shall not exceed
three hundred dollars, United States currency, a month. The Insular Treasurer
shall pay the travelling expenses and expenses of subsistence of said
309
personnel, both going and returning, in the same manner as those of the
delegate: Provided, That the expenses of the subordinate personnel shall
not exceed the necessary travelling expenses of one single employee.
SEC. 4. The Insular Treasurer shall provide for the payment, in

advance, to the delegate, after his appointment and prior to his departure
for Saint Petersburg, of his own salary and that of the subordinate personnel,
corresponding to one quarter; and shall place funds in any bank of that
capital, to be collected by the said delegate in his discretion, after the first
quarter for which payment was made shall have elapsed.
310
ACT NO. 1885
AN ACT AUTHORIZING THE INSULAR COLLECTOR OF CUSTOMS

TO CLEAR FOREIGN VESSELS FOR ANY PORT OF THE MORO
PROVINCE DESIGNATED BY HIM FOR THAT PURPOSE,
UNDER SUCH CONDITIONS AND REGULATIONS AS HE MAY,
WITH THE APPROVAL OF THE SECRETARY OF FINACE
AND JUSTICE, IMPOSE

Commission”, that:
SECTION 1. the Insular Collector of Customs is hereby authorized

to clear foreign vessels for any port of the Moro Province designated by
him for that purpose, under such conditions and regulations as he may,
with the approval of the Secretary of Finance and Justice, impose; Provided,
That all expense incident to the entrance of a foreign vessel into any such
port shall be a charge against such vessel and shall be collected before the
vessel is granted a foreign clearance.
SEC. 3. This Act shall take the effect on its passage.
311
ACT NO. 1889
AN ACT AMENDING SUBSECTION ONE OF PARAGRAPH THREE

OF ACT NUMBERED FOURTEEN HUNDRED AND NINETY-
SEVEN, CHANGING THE TERMINI OF THE LINE OF THE
PHILIPPINE RAILWAY COMPANY IN THE ISLAND OF
NEGROS
Whereas the Philippine Railway Company has made application to

abandon that portion of its line on the Island of Negros from the Harbor of
Escalante westward to the town of Saravia, and has offered, in consideration
of being permitted such abandonment, to extend its southern terminus from
Himamailan to Cabancalan; and
Whereas the Secretary of Commerce and Police and the Supervising

Railway Expert have reported favorably upon the said application; and
Whereas it appears that the best interest of the Philippine Government

and of the inhabitants of the Island of Negros will be served by granting the
said request: Now, therefore,

legislature, that:
SECTION 1. Paragraph three of subsection one of section one of Act

Numbered Fourteen hundred and ninety-seven, which reads as follows:
“On the Island of Negros: (b) A line in the Island of Negros, from the
harbor of Escalante, on the northeast coast of said Island, westerly, following
the coast line to Himamailan, a distance, approximately, of one hundred
miles.’’ be and the same is hereby, amended to read as follows:
“On the Island of Negros: (b) a line in the Island of Negros, from the
municipality of Saravia, on the northwest coast of said Island, southerly, to
Cabancalan, a distance, approximately, of seventy-five miles.”
312
SEC. 2. The Philippine Railway Company, by its duly authorized

agent and representative in the Philippine Island, shall file in duplicate
with the Executive Secretary its acceptance of the foregoing amendment.
SEC. 3. This Act shall take effect on the acceptance of the forgoing
amendment as prescribed in section two hereof.
313
ACT NO. 1900
AN ACT AMENDING ACT NUMBERED TWELVE HUNDRED AND

EIGHTY-EIGHT, ENTITLED “AN ACT AUTHORIZING AND
DIRECTING REGISTERS OF DEEDS TO PERFORM CERTAIN
DUTIES OF COMMERCIAL REGISTERS AS DEFINED IN TITLE
TWO OF THE CODE OF COMMERCE, AND PROVIDING THAT
THE DOCUMENTING, REGISTRY, ENROLLMENT, AND
LICENSING OF VESSELS IN ACCORDANCE WITH THE
CUSTOMS ADMINISTRATIVE ACT AND THE CUSTOMS
RULES AND REGULATIONS SHALL BE DEEMED TO BE A
REGISTRY OF VESSELS WITHIN THE MEANING OF SAID
TITLE,” BY PROVIDING THAT THE INSULAR COLLECTOR
OF CUSTOMS SHALL PERFORM THE DUTIES OF
COMMERCIAL REGISTER CONCERNING THE REGISTERING
OF VESSELS, AS DEFINED IN TITLE TWO OF THE CODE OF
COMMERCE

legislator, that:
SECTION 1. Section two of Act Numbered Twelve hundred and

eighty-eight, entitled “An Act authorizing and directing registers of deeds
to perform certain duties of commercial registers as defined in title two of
the Code of Commerce, and providing that the documenting, registry
enrollment, and licensing of vessels in accordance with the Customs
Administrative Act and the customs rules and regulations shall be deemed
to be a registry of vessels within the meaning of said title,” is hereby
“SEC. 2. The documenting, registering, enrolling, and licensing, of

vessels in accordance with the Customs Administrative Act and customs
rules and regulations shall be deemed to be a registry of vessels within the
meaning of title two of the Code of Commerce, unless otherwise provided
in said Customs Administrative Act or in said customs rules and regulations,
and the Insular Collector of Customs shall perform the duties of commercial
314
register concerning the registering of vessels, as defined in title two of the

Code of Commerce.”
315
ACT NO. 1977
AN ACT PROVIDING FOR THE FILING, WITH THE DIVISION OF

ARCHIVES, PATENTS, COPYRIGHTS, AND TRADE-MARKS
OF THE EXECUTIVE BUREAU, OF THE FIRST DEED OF
MORTGAGE, TRUST OR GUARANTY, DATED THE
NINTEENTH DAY OF MAY, NINETEEN HUNDRED AND
NINE, EXECUTED BY THE MANILA RAILROAD COMPANY
IN FAVOR OF THE GOVERNMENT OF THE PHILIPPINE
ISLANDS, AND OF THE FARMERS’ LOAN AND TRUST
COMPANY OF NEW YORK, AS TRUSTEES, CREATING
UPON THE PROPERTY MENTIONED IN SAID INSTRUMENT
A LIEN FROM THE DATE OF ITS FILING, MODIFYING THE
PROVISIONS OF ACT NUMBERED EIGHTEEN HUNDRED
AND TWELVE, IN REGARD TO THE LIEN OF THE
MORTGAGES FILED HERETOFORE, AND EXEMPTING
SAID INSTRUMENTS FROM THE PAYMENT OF STAMP
TAXES, AND THE FILING OF THE SUBORDINATING
AGREEMENT

legislature, that;
SECTION 1. The first deed of mortgage and contract of guaranty of

may nineteenth, nineteen hundred and nine, as approved by the Secretary
of War on the twenty-eighth day of January, nineteen hundred and ten,
executed by the Manila Railroad Company in favour of the Government of
the Philippine Islands and of the Farmer’s Loan and Trust company of
New York, as trustees, shall be and constitute a lien upon all the properties
described in the said instrument from the time of the filing of said instrument
with the division of archives, patents, copyrights, and trademarks of the
Executive Bureau, which lien shall be prior to and take precedence of any
and all lien and incumbrances which may thereafter arise against the said
property, except such lien as arise from the imposition of lawful taxes,
fines, and assessments upon the same. Any subsequent conveyance of said
316
property, or any part thereof, or any interest therein, shall be subject to the
aforesaid lien.
SEC. 2. In consideration of the agreements executed by the

bondholders of the first and second mortgages of the Manila Railroad
Company in the favour of the Central Trust Company of New York and of
The New York Trust Company, subordinating the lien of the said first and
second mortgages to that mentioned in the preceding section, which shall
be filed with the mortgage and contract of guaranty referred to in section
one hereof, the provisions of Act Numbered Eighteen hundred and twelve
are hereby modified: Provided, However, That the lien granted in said
mortgages shall continue in force and effect in so far as it does not refer to
all the properties set forth in the deed of mortgage executed in favor of the
Government of Philippine Islands, and of the Farmers’ Loan and Trust
Company of New York, as trustees. The said subordination shall commence
to take effect from the date of filing with the division of archives, patents,
copyrights, and trade-marks of the Executive Bureau, of the subordinating
agreements executed by the Manila Railroad Company with the bondholders
of the first and second mortgages.
SEC. 3. Nothing in this Act shall be construed as depriving the

grantees of beneficiaries under said instrument of any right or lien in
connection therewith which exist by law independent of this Act.

and trade-marks of the Executive Bureau shall, upon the filing of the
instruments referred to in sections one and two of this Act, indorse thereon
the date and hour when the same were filed, with his official signature
thereto, and the said indorsement shall be prima facie evidence of the date
and hour when the instruments were filed for record.
SEC. 5. The said instruments shall be preserved and indexed in the

same manner as the papers and documents of corporations filed with the
division of archives, patents, copyrights, and trade-marks of the Executive
Bureau, under the provisions of Act Numbered Fourteen hundred and fifty-
nine and amendments thereto.
317
SEC. 6. The chief of the division of archives, patents, copyrights and

trade-marks of the Executive Bureau shall collect for the filing of each one
of the instruments provided for in this Act the sum of twenty-five pesos.
SEC. 7. The said instruments are hereby exempted from the payment
of the stamp taxes provided by section one hundred and sixteen of Act
Numbered Eleven hundred and eighty-nine, as amended.
SEC. 8. A copy of each one of said instruments, certified by the chief

of the division of archives, patents, copyrights, and trade-marks of the
Executive Bureau, shall be of and have the same legal effect as the original.
the same shall take effect on its passage, in accordance with section one of
Act Numbered Nineteen hundred and forty-five of the Philippine
Legislature.
318
ACT NO. 1980
AN ACT TO PROVIDE FOR THE CREATION OF A COMMISSIONED

AND ENLISTED SERVICE WITHIN THE BUREAU OF
NAVIGATION, THE CREATION OF A PENSION FUND IN
CONNECTION THEREWITH, AND FOR THE PUNISHMENT OF
OFFENSES AGAINST GOOD ORDER AND DISCIPLINE
WITHIN SUCH SERVICE

Legislature, that:
SECTION 1. The Director of Navigation shall appoint the necessary

petty officers and crews for the proper maintenance and operation of all
vessels belonging to or under the charge of the Bureau of Navigation, and
the necessary officers, light keepers and apprentices for the proper
performance of the light-house service in the Philippine Islands, subject to
such rules, regulations, and examination as the Director of Navigation,
subject to the approval of the Secretary of Commerce and Police, may
prescribe.
Captains, first lieutenants, second lieutenants, and third lieutenants,

Bureau of Navigation, shall be recommended by the Director of Navigation,
with the approval of the Secretary of Commerce and Police, and appointed
and commissioned by the Governor-General, by and with advice and consent
of the Philippine Commission, and they shall perform such duties as may
be assigned to them by the Director of Navigation : Provided, However,
That no officer shall be commissioned who is not a citizen of the United
States or of the Philippine Islands and who has not taken oath of allegiance
to the United States.
SEC. 2. In addition to the regular pay of commissioned officers of

the Bureau of Navigation, there shall be allowed and paid to each such
officer an increase of ten per centum of his current annual pay for each five
years’ faithful and efficient service as a commissioned officers: Provided,
319
That the amount of such increase shall not exceed forty per centum of the
yearly pay of the grade as provided by law.
SEC. 3. The Director of Navigation is hereby authorized, subject to

such rules, regulations, and examinations as the Director of Navigation,
subject to the approval of the Secretary of Commerce and Police, may
prescribe, to enlist men for service in the Bureau of Navigation, and the
term of such enlistment for all petty officers and crews of vessels, consisting
of patrons, boatswains, quartermasters, cockswains, sailors, stewards, cooks,
mess boys, carpenters, engineers, machinists, oilers, firemen, coal passers,
and light keepers, apprentices, and so forth, shall be two years ; and to each
petty officer, enlisted man, light keeper, apprentice, and so forth, there shall
be paid in addition to his regular pay, the sum of one peso per month,
respectively, for the second and third enlistment : Provided, However, That
the Director of Navigation shall not enlist any petty officer or member of
the crew of any vessel who is not a citizen of the United States or of the
Philippine Islands or who has not taken the oath of allegiance to the United
States.
SEC. 4. Each officer, enlisted man, light keeper, and light-house

apprentice of the Bureau of Navigation shall, before entering upon the duties
of his office or position, make and subscribe the following oath:
“I _______________________________, having been appointed as

______________________ in the Bureau of Navigation, do solemnly swear
(or affirm) that I am a citizen of ____________________________, that I
recognize and accept the supreme authority of the United States of America
in the Philippine Islands, and will maintain true faith and allegiance thereto;
that I will obey the laws, legal orders, and decrees promulgated by its duly
constituted authorities ; that I impose upon himself these obligations
voluntarily, without mental reservation or purpose of evasion; and that I
will well and faithfully discharge the duties of the office upon which I am
about to enter ; so help me God. (The last four words to be stricken out in
case of affirmation).
“_________________________
(Signature of officer or member.)
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“Subscribed and sworn to (or affirmed) before me this

___________________ day of ___________________ 19___”
The oath may be taken before any judge, justice of the peace, notary
public, or other officer authorized to administer oaths, and when taken
shall be filed in the office of the Bureau of Navigation.
SEC. 5. It shall be, and hereby is, made the duty of the Director of
Navigation to see that the officers and crews of any vessel belonging to or
under the charge or direction of the Bureau of Navigation, and the light
keepers and apprentices of the light-house service, are suitably uniformed,
equipped, governed, and disciplined for the performance of necessary duty,
such rules and regulations as the Director of Navigation shall prescribe,
subject to the approval of the Secretary of Commerce and Police, and,
when in his judgment necessary, shall be suitably, armed. The Director of
Navigation is also empowered to suspend and for sufficient cause and upon
the approval of the Secretary of Commerce and Police, to punish or remove
any officer or member of any crew and any light keeper or apprentice of
the light-house service, for inefficiency, misconduct, or disloyalty to the
Government of the United States, or the commission of any of the offenses
enumerated in section nine of this Act; and when any officer or member of
any crew, light keeper or apprentice of the light-house service, shall have
been convicted and sentenced by a court of competent of a criminal offense,
or of any of the offenses hereinafter named, other than such offenses as are
hereinafter made punishable in and by the summary court hereinafter
provided, the Director of Navigation, with the approval of the Secretary of
Commerce and Police may order his dishonorable discharge and the
forfeiture of all pay and allowances due or to become due: Provided,
However, That such removal of commissioned officers shall not be effective
until approved by the Governor-General. The Director of Navigation is
also hereby empowered to fill temporarily any and all vacancies occuring
by reason of suspension, removal, discharge, resignation, death, or disability,
or by transfer, promotion, or, in case of said crews, light keepers of light-
house apprentices, by enlistment, as may seem to him advisable. The
Director of Navigation is hereby also empowered to make any and all
necessary and proper rules and regulations governing the selection and
321
promotion of members of crews of vessels and light keepers and apprentices

of the light-house service.
SEC. 6. When an officer, enlisted man, light keeper, or light-house

apprentice of the Bureau of Navigation shall have had twenty or more years
of continuous, faithful, and satisfactory service, he may, upon making
application therefore, be retired from active service by the Secretary of
Commerce and Police, and when so retired he shall receive until his death
an annual pension equal to two and one-half per centum of the total sum of
the pay and allowances received by him up to the time he is retired :
Provided, However, That no officer, enlisted man, light keeper, or light-
house apprentice shall receive an annual pension equivalent to more than
seventy-five per centum of the amount of his current pay and allowances
received by him at the time he is retired.
The Government of the Philippine Islands shall not be responsible

for any pension provided by this section to be paid to any retired officer,
enlisted man, light keepers, or light-house apprentice of the Bureau of
Navigation, but the same shall be paid from a fund created in accordance
with the provisions of section seven hereof.
The service of any officer, enlisted man, light keeper, or light-house

apprentice shall be considered continuous for the purposes of this section
if he be not separated from the service at any time for a longer period than
one year.
SEC. 7. In order that a fund may be provided for the purpose set
forth in section six there shall be deducted and retained two per centum of
the monthly pay of all officers, petty officers, and enlisted men, light keepers,
and apprentices. The deductions and retentions shall be noted on the pay
roll and the cashier of the Bureau of Navigation shall pay each officer,
petty officer, enlisted man, light keeper and apprentice only the net amount
due, the same being his total pay less such retentions and deductions as
may have been pursuant to this Act. The cashier shall keep a record in
duplicate of all such retentions and deductions showing the amount thereof
and the name of the officer, petty officer, enlisted man, light keeper, or
322
apprentice, as the case may be, and shall forward one copy to the Insular
Auditor at the end of each month, retaining the duplicate copy on file in his
office. The amount of these deductions and retentions shall be deposit in
the Insular Treasury to the credit of the fund hereby created, which shall be
known as “The Pension Fund, Bureau of Navigation,” and those deposits
shall constitute a special fund for the payment of pensions as hereinbefore
provided and shall not be considered general revenues of the Philippine
Islands. This fund may also expended for the relief of officers, enlisted
men, light keepers, and apprentices injured or incapacitated in line of duty,
or for the benefit of the widows and orphans of such officers, enlisted men,
light keepers, and apprentices as may have lost their lives in the line of
duty. The Director of Navigation is hereby authorized to recommend to the
Governor-General the disposition of this fund for such purpose and it may
be so expended upon the authorization and approval of, and under such
regulations as may be prescribed by, the Governor-General.
SEC. 8. The investment of the said pension fund of the Bureau of

Navigation shall be in charge of the Postal Savings Bank Investment Board
provided for by section eighteen ((a) of Act Numbered Fourteen hundred
and ninety-three, and said fund may be invested in the securities authorized
in said section, as amended, for funds of the Postal Saving Bank without,
however, the limitations in regard to the proportion of the funds which
may be invested in different classes of securities.
SEC. 9. Any officer, enlisted man, light keeper, or apprentice of the

Bureau of Navigation –
(a) Who participates in, incites, or encourages any mutinous uprising,

or begins, incites, causes, or joins in any mutiny, opposition or resistance
to, or defiance of, any superior authority in said Bureau with intent to usurp,
subvert, or override the same, or who, being present, does not use his utmost
endeavors to suppress all such mutiny, opposition, resistance, or defiance,
or who, having knowledge of any such mutiny, opposition, resistance, or
defiance being intended, does not without delay give information thereof
to such superior authority, shall, upon conviction, be punished by a fine
not exceeding five thousand pesos, or by imprisonment not exceeding two
years, or by both such fine and imprisonment in the discretion of the court.
323
(b) Who willfully disobeys the lawful command of his superior

officer shall, upon conviction, be punished by a fine not exceeding one
thousand pesos, or by imprisonment not exceeding one year, or by both
such fine and imprisonment in the discretion of the court.
(c) Who, being duly enlisted therein, absents himself from duty
without leave and with intent not to return, or advises or persuades others
to do the like, shall upon conviction, be punished by a fine not exceeding
one thousand pesos, or by imprisonment not exceeding one year, or both
such fine and imprisonment in the discretion of the court.
(d) Who misbehaves himself before any outlaw, robber, pirate, or

other enemy, shamefully abandons his ship or light station, or advises or
persuades others to do the like, or quit his post to plunder or pillage, shall,
upon conviction be punished by a fine not exceeding two thousand pesos,
or by imprisonment not exceeding one year, or by both such fine and
imprisonment in the discretion of the court.
SEC. 10. Any petty officer, enlisted man, light keeper, or apprentice,
who willfully, or through neglect, wastes, loses, or spoils property put in
his charge, his clothing or accoutrements, or behaves himself with disrespect
toward his superior officer, or advises or persuades any other enlisted man,
light keeper, or apprentice to be disrespectful to his superior officer, or
hires another to do his duty for him, or is found drunk on duty, or advises or
persuades any other petty officer, enlisted man, light keeper, or apprentice
to desert from his ship or light station, or is guilty of any petty offense,
disorder, or neglect to the to the prejudice of good order and discipline not
hereinbefore mentioned, shall be punished as the summary court
hereinbefore provided for shall direct, subject to the provisions and
limitations hereinafter contained.
SEC. 11. For the purpose of carrying out the provisions of section
ten hereof, the Director of Navigation, the Assistant Director of Navigation,
the Second Assistant Director of Navigation, and the Marine Superintendent
of the Bureau of Navigation are each hereby designated as summary court
officers before any one of whom offenders under the provisions of section
ten hereof shall be brought to trial within twenty-four hours of the time of
324
their arrest as soon thereafter as is practicable, and the officer holding a

summary court shall have the power to administer oaths, and to hear and
determine such cases and, when satisfied of the guilt of the accused, adjudge
the punishment to be inflicted as hereinafter provided. No petty officer,
enlisted man, light keeper, or apprentice, shall while awaiting trial, be
confined with prisoners who are not also petty officers, enlisted men, light
keepers, or apprentices, nor at all unless such confinement be absolutely
necessary as a measure of restraint; and no petty officer or light keeper
shall be sentenced to confinement except when he is also sentenced to
reduction to a lower grade. No petty officer or light keeper reduced to a
lower grade by sentence of the summary court shall be again advanced
within six months from the date of such sentence. When the accused is
sentenced to a forfeiture of pay, the sentence may provide for the deduction
of the forfeiture in equal monthly installment, during a period of not
exceeding six months after the date of the sentence. The summary court
shall keep a record in which shall be entered all cases heard and determined
and the action had thereon.
Upon the first conviction the maximum penalties for the offenses
described shall be as stated in the following schedule:
Losing or spoiling accounterments : Five days confinement and

or clothing through neglect. reimbursement of the value of
the accouterments or the
accouterments or clothing lost
; for petty officers and light
keepers, reduction in grade in
addition thereto.
Absence without leave: : Forfeiture of one peso and fifty

(a) One hour or less: centavos for petty officers and
light keepers; enlisted men and
apprentices one peso.
(b) For more than one to six : Forfeiture of three pesos for petty
hours, inclusive officers and light keepers;
325
enlisted men and apprentices

two pesos.
(c) For more than six to twelve : Forfeiture of six pesos for petty
hours, inclusive officers and light keepers;
enlisted men and apprentices
four pesos.
(d) For more than twelve to : Forfeiture of ten pesos for petty
twenty-four hours, officers and light keepers;
inclusive. enlisted men and apprentices
eight pesos.
(e) For more than twelve to : Forfeiture of fifteen pesos and

twenty-four hours, confinement : at hard labor for
inclusive. five days or reduction in grade,
for petty, officers and light
keepers; enlisted men and
apprentices ten pesos and
confinement at hard labor for
five days.
(f) For more than two to ten : Forfeiture of twenty pesos and
days, inclusive. confinement at hard labor for
ten days and reduction in grade
for petty officers and light
keepers; enlisted men and
apprentices for ten days at hard
labor.
(g) For more than ten to : Forfeiture of all pay and one
thirty days, inclusive. month’s confinement at hard
labor.
Using threatening or insulting : One month’s confinement at hard

or behaving in an insubordinate labor language and forfeiture of
326
manner to a superior officer fifteen pesos; for petty officers

while in the execution and light keepers reduction in
of his duties. grade in addition thereto.
Found drunk on duty… : Forfeiture of fifteen pesos for

enlisted men and apprentices; for
petty officers and light keepers,
forfeiture of twenty pesos and
reduction in grade in addition
thereto.
Noisy or disorderly conduct : Forfeiture of ten pesos for petty

aboard ship, or at light station. officers and light keepers;
enlisted men and apprentices five
pesos.
Drunk and disorderly aboard : Forfeiture of ten pesos and reduction

ship, or at light station, but in grade in grade for petty
not on duty. officers and light keepers;
enlisted men and apprentices,
forfeiture of five pesos.
Petty officers, light keepers, : Reduction in grade and forfeiture of

enlisted men, or apprentices five pesos for petty officers and
gambling or encouraging light keepers; enlisted men and
gambling. apprentices, forfeiture of five
pesos.
Encouraging another to : Forfeiture of fifteen pesos and

behave a disrespectful manner reduction in grade for petty
to a superior officer, or officers and light keepers;
encouraging another to desert enlisted men and apprentices,
or to commit any petty offense. forfeiture of ten pesos or
confinement at hard labor for ten
days, or both.
327
Any offense created by this Act for which a specific penalty is not
provided shall be punished by forfeiture of not more than one month’s pay
or by imprisonment at hard labor for not more than one month, or both, in
the discretion of the court.
Upon a second conviction for any one of the above-described offenses

within six months the penalty may be increased to twice that provided in
the foregoing schedule, and upon a third conviction for any offense within
the term of enlistment, in addition to the penalty prescribed for a second
offense, the offender may be dishonorably discharged.
SEC. 12. All forfeitures imposed in accordance with the last preceding
section shall be deposited with Treasurer of the Philippine Islands, and
shall be added to the fund created by section seven of this Act and used for
the purpose therein provided. All expenditures made from such fund shall
be audited by the Insular Auditor.
SEC. 13. The rules contained in the “Manual for Courts-martial, and
so forth,” for use in the United States Navy, published by the Secretary of
the Navy, in so far as such rules relate to procedure, forms of charges,
previous convictions, records, reports, sentences, and approvals, shall be
observe by the summary court provided by section eleven, in so far as said
rules are applicable and not inconsistent with the provisions of this Act.
SEC. 14. Pending investigation of charge of crime or conduct

unbecoming an officer or gentleman or prejudicial to good order and
discipline in the service, the Director of Navigation, Assistant Director of
Navigation, Second Assistant Director of Navigation and Marine
Superintendent, or any captain in the Bureau of Navigation, may arrest and
confine in his quarters on board any vessel or at any light station any
subordinate officer, or, pending investigation of the charge and action
thereon, may arrest and confine , for not exceeding ten days, any enlisted
man, light keeper, or apprentice charged with crime of conduct prejudicial
to good order and discipline. Any petty officer, enlisted man, light keeper,
or light-house apprentice of the Bureau of the Navigation charged with
crime or with any offense under this Act may be arrested and temporarily
confined by any superior authority of the Bureau of Navigation until
328
delivered to the proper executive or judicial officials having jurisdiction

over such crime or offense, or until tried, when the offense is punishable
by the summary court provided in this Act. Such arrest and confinement
shall be without warrant.
SEC. 15. All Acts or parts of Acts inconsistent with the provisions of
this Act are hereby repealed: Provided, That if any of the crimes herein
enumerated are punishable under the provisions of the Penal Code by higher
penalties than those herein provided, the provisions of the Penal Code shall
prevail.
329
ACT NO. 2034
AN ACT AUTHORIZING THE GRANTING ON CERTAIN

CONDITIONS OF A FRANCHISE TO CONSTRUCT, MAINTAIN,
AND OPERATE A STREET RAILWAY IN THE MUNICIPALITY
OF CEBU

Legislature, that:
SECTION 1. Authority is hereby granted to construct, maintain, and

operate a street railway over certain designated streets, thoroughfares, public
bridges, and places in the municipality of Cebu, Province of Cebu, Philippine
Islands, and the Governor-General is hereby authorized on behalf of the
Government of the Philippine Islands to offer for public bidding the
franchise set forth in this Act, and to grant said franchise to the best bidder,
upon such terms as to percentage of gross earnings paid in lieu of Insular,
provincial, and municipal taxes on the franchise and earnings thereof, which
shall in no case be less than one and one-half per centum, and upon such
terms and conditions as to advertisement and manner of bidding as he shall
deem proper.
SEC. 2. The franchise referred to in section one hereof shall be

substantially in the following form:
FRANCHISE
ARTICLE 1. There is hereby granted to ……………………………..

for the period of fifty years from and after the passage of this Act, the right
and privilege to construct, maintain, and operate a street railway in the
municipality of Cebu, over the streets, thoroughfares, public bridges, and
places hereinafter designated, subject to all the laws and ordinances of said
municipality which are not inconsistent with the provisions of this Act.
ART. 2. The grantee hereunder, his assigns and assignees, is

authorized to make all necessary excavations and constructions in and upon
330
any of the streets, thoroughfares, public bridges, and places designated in

this Act, for the purpose of placing, removing, and repairing tracks, sidings,
curves, switches, and connections, and to erect the necessary poles, wires,
and other overhead structures connected therewith.
ART. 3. With the consent of the municipal council of Cebu previously

obtained, the said excavations and constructions may be made in and upon
the following streets of the said municipality:
(a ) Commencing at the intersection of Calle de los Mártires and

Calle López Jaena, along the latter street to Calle Mabini, thence to Calle
Colon, thence to Calle Juan Climaco, thence along Calle Juan Climaco
throughout the length of such street to Calle Magallanes, thence across the
bridge called Puente Concordia to Calle Tupas, thence along Calle Tupas
to Calle Tuti on the west side of the San Nicolás Roman Catholic Church,
thence along Calle Padilla and its extension, in a westerly direction, to
appoint in front of the Roman Catholic Church of the barrio of El Pardo.
(b ) From the Concordia Bridge along Calle Magallanes to Calle

Carmelo, thence to Calle Morga (Comercio), then along the latter street to
its intersection with Calle de los Mártires throughout its entire length to
the first intersecting street north of the Mabolo Roman Catholic church.
(c ) From the intersection of Calle Magallanes and Calle Carmelo,

along Calle Magallanes to Calle Pedro Burgos, thence along Calle Burgos
to its intersection with Calle Morga.
(d ) From the intersection of Calle Magallanes and Calle Norte

América, along the latter street to its junction with Calle Colon.
(e ) Reasonable and necessary changes in and extensions of the

aforesaid lines and routes may be made by the grantee with the consent of
the municipal council, and the approval of the Governor-General.
ART. 4. The grantee may lay double tracks upon each and all of the
streets and thoroughfares mentioned in the last preceding article except
331
Calle Lopez Jaena; Calle Mabini from Lopez Jaena to Calle Colon; Calle
Padilla, in the barrio of San Nicolás, from Calle Colon to Calle Carlock;
and Calle Norte América. Upon these excepted streets double tracks may
be laid only after the express consent of the municipal council thereto has
been obtained.
ART. 5. The motive power to be used by the grantee hereunder shall

be electricity: Provided, That the grantee may at any time adopt other
motive power for the good of the service, with the consent of the municipal
council and the approval of the Governor-General.
ART. 6. In the construction of the track, standard T rails of not less

than twenty-four and eight-lengths kilograms in weight per meter shall be
used, and where the same pass through or over any street or thoroughfare
they shall be laid and maintained true to the finished grade of the street or
thoroughfare, and the gauge of all tracks laid or maintained hereunder shall
not be less than one meter six and sixty-eight hundredths centimeters.
ART. 7. The construction, operation, and maintenance of so much

of the construction herein provided for as may be upon any public road,
street, highway, or place shall be subject to the following terms, conditions
and limitations:
(a ) The grantee shall in all cases lay and maintain his tracks so as to
conform to the grades of the streets, thoroughfares, bridges, and public
places along or across which said tracks may be constructed, and whenever
such grades shall hereafter be established or altered by the municipal
authorities of the municipality of Cebu the grantee shall lay and maintain
his tracks to such established grades at his own expense: Provided, That f
the grade at which any such track is laid be altered by the municipal
authorities of the municipality of Cebu within seven years from the date
hereof, the said municipality shall at its expense furnish the material to
enable the grantee to conform the bed of his track to the altered grade, and
the material necessary to reconstruct the cement substructure of the track
of the grantee at the new grade: And provided further, That whenever the
grade at which any such track is laid is altered by the said municipal
332
authorities after more than seven years from the date hereof, the municipality
of Cebu shall furnish the material to enable the grantee to conform the bed
of his tracks to the altered grade, but not the cement for the substructure of
the track.
(b ) The said tracks shall be so constructed and maintained as not to

interfere with the ordinary use by the general public of said streets or
highways as regulated by the municipal ordinances, and to that end the
same shall be so laid as to leave sufficient space on one or both sides thereof
for vehicles to pass without danger of collision with the cars being operated
on said tracks.
(c ) The maximum rate of speed at which the grantee may operate

his cars shall be fixed by the municipal authorities wherever the same shall
be operated over or across a street, highway, or public place.
(d ) Members of the police and fire departments of the municipality

of Cebu wearing official badges shall be entitled to ride free upon the cars
of the grantee, subject to such reasonable and proper restrictions as may be
imposed.
(e) The grantee shall hold the municipality of Cebu harmless from
all claims, accounts, demands, or actions arising out of accidents or injuries,
the road.
ART. 8. The grantee shall at all times keep the tracks, rolling stock
and other construction in good repair. Provision shall be made for carrying
first and second class passengers; Provided, That except when demanded
by special parties, all cars carrying first-class passengers shall be divided
into first and second class compartments. The grantee shall at all times
furnish and operate sufficient cars to satisfy the public demand, and to
carry comfortably all the members of the public desiring to ride therein.
ART. 9. In consideration of the franchise hereby granted, the per

centum of the gross earnings of the enterprise agreed upon at the time of
the award of this franchise shall be paid quarterly into the Insular Treasury
333
in lieu of all Insular, provincial, and municipal taxes on the franchise and
the privileges granted hereunder, except taxes on real estate. The amount
of gross earnings thus paid shall be distributed between the Insular
Government, the Province of Cebu, and the municipality of Cebu, as may
be provided by general law.
ART. 10. The grantee shall keep a record of all fares collected and
tickets sold, and receipts from the transportation of freight, baggage, and
express, which shall be subject to the inspection of the Insular Auditor,
whose duty it shall be to audit and approve the accounts of the grantee at
the end of each quarter, before the payment of the percentage tax. The
accounts when thus audited and approved shall, in the absence of fraud or
mistake, be final and conclusive evidence of the liability of the grantee
under the provisions of article nine of this franchise.
ART. 11. Whenever any franchise or right of way is granted to any

other person or corporation now or hereafter in existence, over portions of
the lines and tracks of the grantee herein, the terms on which said other
person or corporation shall use said right of way, and the compensation to
be paid the grantee herein by such other person or corporation for said use,
shall be determined by the members of the Supreme Court of the Philippine
Islands, sitting as a board of arbitrators. The decision of a majority of said
board shall be final.
ART. 12. The franchise herein granted is subject to amendment,

alteration, or repeal by the Congress of the United States, and upon the
termination of this franchise by forfeiture, repeal, or expiration of time, the
right to use the streets and other public lands herein granted shall revert to
the municipality, province, or Insular Government, as the case may be.
ART. 13. The grantee herein may sell, lease, give, grant, convey, or
assign this franchise, and all property and rights acquired hereunder, to any
person, company, or corporation competent to conduct the business
authorized hereby, but no title to this franchise, or to the property or rights
acquired herender, shall pass by sale, lease, gift, grant, conveyance, or
assignment to the vendee, lessee, donee, transferee, or assignee, or be
334
enjoyed by him until he shall have filed in the office of the Secretary of
Commerce and Police an agreement in writing to comply with all the terms
and conditions imposed on the grantee by the franchise, and accepting the
said franchise subject to all its existing terms and conditions: Provided,
however, That no transfer of this franchise shall become effective under
the provisions of this article until it has been previously approved in writing
by the Secretary of Commerce and Police.
ART. 14. Should the grantee of this franchise sell, transfer, or assign
the franchise as herein authorized to a corporation to b formed and organized
in and under the laws of the Philippine Islands, the said corporation shall
offer and place on sale in the Philippine Islands, to citizens of the Philippine
Islands, at a price not exceeding par, twenty-five per centum of the stock of
said corporation. The offer to sell said stock on said terms shall be duly
advertised in the municipality of Cebu, and shall remain open for six months
after the date of such advertisement. After the expiration of that period,
any unsold part of said stock may be sold free form such restrictions.
ART. 15. All the terms, conditions, and restrictions required and
imposed by section seventy-four of the Act of Congress of July first, nineteen
hundred and two, are hereby a reference incorporated in and made a part of
this franchise, and the grantee and his successors and assigns take and hold
said franchise at all times subject thereto.
ART. 16. No stocks or bonds shall be issued by any corporation

owning or operating under this grant, except in exchange for actual cash,
of for property at a fair valuation, equal to the par value of the stock or
bonds so issued; nor shall such corporation declare any stock or bond
dividend; nor shall any person, company, or corporation receiving this
franchise from the Government of the Philippine Islands, or from its grantee,
use, employ, or contract for the labor of persons claimed or alleged to be
held in involuntary servitude, and any person, company or corporation
violating this provision shall forfeit all charters, grants, franchises, and
concessions for doing business in the Philippine Islands, and in addition be
deemed guilty of an offense, and punished therefor as provided by law.
335
ART. 17. The books and accounts of said corporation shall at all
times be subject to inspection and examination by the Auditor of the
Philippine Islands, or his duly authorized representative.
ART. 18. The fare which may be charged by the grantee shall not
exceed the sum of twelve centavos on a first-class car, or ten centavos on a
second-class car for one continuous ride from one point to another on the
railway herein authorized to be constructed. The fares charged for children
under seven years of age shall not exceed the ordinary rate of half fare.
Children in arms shall ride free: Provided, That where a change of cars is
necessary there shall be established by the grantee a method of transfer not
unreasonably burdensome in its restrictions to the transferred passengers;
and in case of a failure to comply with the foregoing requirement as to
transfers it may be enforced upon application of the municipal council to
the proper Court of First Instance or the Supreme Court: And provided
further, That the rates to be charged shall at all times be subject to revision
and regulation by the Board of Rate Regulation created by Act Numbered
Seventeen hundred and seventy-nine, or any legally created successor of
said Board.
ART. 19. The grantee shall begin the construction of the street railway
herein provided for within one year from the date of the granting of the
franchise, and the same shall be completed and in operation within eighteen
months after the expiration of said period of one year unless prevented by
the act of God, or the public enemy, usurped or military power, martial law,
riot, civil commotion, or inevitable cause; otherwise the franchise herein
granted shall become liable for forfeiture.
ART. 20. The grantee shall have the right to acquire from corporations
or private parties, by purchase, contract, lease, and grant or donation, such
real estate as may be necessary for the construction, maintenance, and
operation of the railway.
ART. 21. The grantee shall have the right to transport freight and
express packages over his tracks and make reasonable charges for the same,
with the approval of the municipal council.
336
ART. 22. Within ten days after the granting of this franchise, in
pursuance of the public bidding required by this Act, the grantee shall file
a formal written acceptance of the grant in the office of the Secretary of
Commerce and Police, and within thirty days after such acceptance the
grantee shall deposit in the Insular Treasury in cash or negotiable bonds of
the United States, or other securities to be approved by the Governor-
General, the sum of three thousand pesos, and within six months thereafter
the further sum of seven thousand pesos, as security for the performance of
the obligations of the franchise: Provided, That the said sums shall be
repaid by the Insular Treasurer to the grantee whenever, within the period
heretofore fixed, the Director of Public Works shall certify that three-fourths
of the mileage of the road covered by this franchise has been constructed
according to the terms and conditions herein imposed on the grantee. If,
however, the grantee shall, within the time required, fail to perform the
obligations of his contract, then the Insular Treasurer may, by appropriate
action, recover the sum so deposited as liquidated damages for the breach.
ART. 23. At any time after twenty-five years, the municipality of

Cebu may purchase, and the grantee shall sell to the municipality of Cebu,
all of its lines, tracks, cars, real estate, buildings, plant, rights under this
franchise, and other property used by it in the operation of a street railway
in the municipality of Cebu, at a valuation based upon the net earnings of
the grantee, the valuation to be determined, after hearing evidence, by the
Supreme Court of the Islands, sitting as a board of arbitrators, whose
decision, by a majority of the members thereof, shall be final.
337
ACT NO. 2053
AN ACT TO AMEND ARTICLE TWO OF THE FRANCHISE

CONTAINED IN ACT NUMBERED FOURTEEN HUNDRED
AND NINETY SEVEN OF THE PHILIPPINE COMMISSION,
ENTITLED” AN ACT GRANTING TO THE PHILIPPINE
RAILWAY COMPANY A CONCESSION TO CONSTRUCT
RAILWAYS IN THE ISLANDS OF PANAY, NEGROS, AND CEBU,
AND GUARANTEEING INTEREST IN THE FIRST MORTGAGE
BONDS THEROF, UNDER AUTHORITY OF THE ACT OF
CONGRESS APPROVED FEBRUARY SIXTH, NINETEEN
HUNDRED AND FIVE,” BY EXTENDING ITS PROVISIONS,
UNDER CERTAIN LIMITATIONS, TO THE ORESHORE AND
RECLAIMED LAND

legislature, that;
SECTION 1. The first paragraph of article two of the franchise

contained in Act Numbered Fourteen hundred and ninety-seven of the
Philippine Commission is hereby amended to read as follows:
lands of the Philippine Government is hereby given and granted to the
grantee for the construction, operation and maintenance of the railroad or
railroads as herein authorized to the extent of one hundred feet in width
where it may pass through the public domain, including all necessary ground
for depots, machine shops, station buildings, workships , water stations,
warehouses, terminals, including wharves and dock fronts, switches
sidetracks, and turntables and also extra lands beyond such one hundred
feet as maybe found necessary for said purposes: Provided, that the same
be approved by the Governor-General as a part of the definite plans
hereinbefore provided for, and the right, power and authority shall
public lands and take from such lands earth, stone, timber, and other
338
materials for the construction of such railway; but the provisions of this
or for sale under the Public Land Act, or to timber lands used and assigned
for other public purposes , nor to the lands known as the ‘fiars’ lands:
Provided, further, That the provisions of this paragraph shall also apply for
the foreshore, as defined in existing law, and to all government and public
lands made or reclaimed by the Government by dredging or filling, or
otherwise, unless such land shall have been used or assigned for other public
purposes; and such foreshore, or other land, hereby granted to the grantee,
is hereby taken out of the operation of Act Numbered sixteen hundred and
fifty-four of the Philippine Commission; And provided further, that the
quantity of land or width of way which, by virtue of this Act, may be acquired
by the railway company for right of way or other railway uses upon the
foreshore or reclaimed land shall be determined by the Governor –General.”
339
ACT NO. 2157
AN ACT AUTHORIZING THE GRANTING OF REVOCABLE

LICENSES TO CONSTRUCT AND OPERATE TRAMWAYS ON
PUBLIC ROADS AND FOR OTHER PURPOSES

Legislature, that:
SECTION 1. Any municipal council with the approval of the

provincial board is hereby authorized to grant a revocable license to
construct and operate a tramway upon any public road or roads within the
boundaries of the municipality: Provided, That such license shall contain
substantially the terms and conditions hereinafter set forth.
SEC. 2. Every such tramway shall be a single line with necessary

switches, sidetracks, loops, turnouts, and passing places, and shall be
constructed along one side of the public road or highways so as to leave to
least three meters between the tramway and the center line of the public
road for the entire length of the tramway free and clear of tracks, roadbeds,
switches, sidetracks, loops, turnouts, and passing places of and saids
tramway, and said tramway with its switches, sidetracks, loops, turnouts,
and passing places shall be so constructed and located that it shall not
unreasonably interfere with traffic over the entire width of the streets or
streets crossing.
SEC. 3. The license shall construct and maintain and keep in good
or maintenance may render necessary for the proper drainage of the road,
highway, or street over which it passes, and the construction and
maintenance of said drains, culverts, and waterways shall be under the
supervision of the Director of Public Works, or his authorized subordinate,
to the extent necessary for the protection of the public interests.
SEC. 4. All culverts, bridges and drains constructed by the licensee

crossing any road, highway, or street shall be constructed and maintained
340
by the so as not to interfere with the traffic over the road, highway, or street
or to prevent convenient use therof by the public.
SEC. 5. The licensee shall be under a continuing obligation to keep

in good repair the roadbed of said tramway and the surface of the road,
the tramway, within the town. Within the barrio proper or poblacion of any
barrio of the municipality through which such tramway passes, the space
between the rails and tracks of the tramway and for eighteen inches on
each side of said tracks shall be filled flush to the top of the rails by the
licensee with the same material as that used in the construction of the road,
highway, or street and as may be prescribed by the municipal council:
Provided, That if the municipal council shall order a change in the kind of
material after the same has once been approved by the municipal council
and laid by the licensee, the material necessary to make the change shall be
furnished by the municipality and the work of laying such material and
putting the same in place shall be borne by the licensee at his own proper
cost and expense.
SEC. 6. The licensee shall be liable for all damage to, and for his just
proportional share of the cost of construction and upkeep of, all bridges or
culverts and drains used by his tracks, such proportion to be determined by
the municipal council subject to the right of the licensee to appeal to the
provincial board, whose decision shall be final.

thirty days after the granting of any license under this Act the licensee shall
file in duplicate with the municipal council a map or plan showing the
location, direction, and general course of said tramway, the estimated
distance between changes of course, accompanied by an explanatory
statement as to the route of the tramway, and its relation to the road, highway,
or streets over which it passes. Should the municipal council refuse to
approve said map or plan, the licensee shall make such changes as maybe
prescribed by the municipal council. One copy of the map or plan, when
finally approved, shall be filed by the municipal council in the office of the
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municipal secretary and one copy shall be returned by him with the
municipal council’s approval to the licensee. The failure or refusal of the
licensee to file the map required by this section within the time prescribed
or to change within a reasonable time the said map or plan when so directed
by the said municipal council shall render null and void the license granted
by this Act.
furnished by the licensee is returned to him by the municipal council finally
approved the license shall file with the municipal council his acceptance
in writing of the licensee shall file with the municipal council his acceptance
in writing of the license granted by this Act and at the same time shall
deposit in the provincial treasury the sum of one thousand pesos Philippine
currency, or negotiable bonds or other securities of equal value approved
by the Insular Treasurer. Said deposit shall be made as an earnest of good
faith of the acceptance and as guaranty that within six months from the
date of said acceptance the tramway will be put in operation in accordance
with the terms and conditions of this license. Failure to comply with the
provisions of this section shall constitute a revocation of the license herein
granted, and shall IPSO FACTO forfeit the said one thousand pesos
Philippine currency to the municipality concerned.
SEC. 9. The licensee, in consideration of the granting of such license

shall transport, at rates to be fixed by the agreement between the licensee
and the municipal council or, in case of disagreement, by the provincial
board, such materials as maybe needed for the repair of the road along or
upon which the tramway is built and operated.
SEC. 10. Any license granted hereunder maybe revoked at any time
by the municipal council with the approval of the provincial board by serving
six months’ notice on the licensee. Within six months after the said notice
has been served it shall be the duty of the licensee to remove all the rails
and ties of the tramway and to supply and place such filling as maybe
necessary in order that no unevennesses caused by such removal may remain
to interfere with the ordinary traffic on the said road, the entire roadbed to
be left in neat, workmanlike condition, subject to the approval of the
342
municipal council. If within thirty days after the expiration of the period of
six months mentioned in this section, the licensee shall not have fulfilled
the requirements of this section, the provincial board shall cause the work
of removal and filling to be carried out as required herein and the cost of
the same shall be borne by the licensee. For the purpose of carrying out the
provisions of this section, the one-thousand-peso deposit required by section
seven hereof shall be retained as a guaranty until the provisions of this
section have been complied with, upon which it shall be returned to the
licensee less whatever amount maybe due the province for work done
hereunder. Should this work cost more than one thousand pesos, the licensee
shall make good the difference.
SEC. 11. Any license granted under the provisions of this Act shall
be subject to such municipal ordinances as may be passed from time to
time by the municipal council of the municipality in which the tramway is
to be operated.
343
ACT NO. 2242
AN ACT AMENDING ACT NUMBERED NINETEEN HUNDRED AND

EIGTHY, ENTITLED “AN ACT TO PROVIDE FOR THE
WITHIN THE BUREAU OF NAVIGATION, THE CREATION OF
A PENSION FUND IN CONNECTION THEREWITH, AND FOR
THE PUNISHMENT OF OFFENSES AGAINST GOOD ORDER
AND DISCIPLINE WITHIN SUCH SERVICE,” BY MAKING THE
PROVISIONS OF SECTION TWO THEREOF RETROACTIVE
FOR CERTAIN COMMISSIONED OFFICERS, AND FOR OTHER
PURPOSES

Legislature, that:
SECTION 1. Section two of Act Numbered Nineteen hundred and

eighty, entitled “An Act to provide for the creation of a commissioned and
enlisted service within the Bureau of Navigation, the creation of a pension
fund in connection therewith, and for the punishment of offenses against
good order and discipline within such service,” is hereby amended by adding
at the close of said section the following: “Provided, further, That this
section shall be retroactive so that all commissioned officers in the service
of the Bureau of Navigation at the date of the passage of this Act and who
entered the service prior to June twenty-seventh, nineteen hundred and
five, shall be entitled to the increase in pay provided for in this section for
each five years’ continuous, faithful and efficient service from the date of
their original entry into the service: And provided further, That the service
of any officer commissioned prior to June twenty-seventh, nineteen hundred
and five, shall be considered continuous for the purpose of this section if
he has not been separated from the service at any time for a longer period
than one year, but the time he was so separated shall not be counted in such
continuous service.
SEC.2. This Act shall take effect on its passage.
344
ACT NO. 2256
AN ACT TO AMEND ACT NUMBERED TWENTY-ONE HUNDRED

AND FIFTY-NINE, ENTITLED “AN ACT TO REGULATE
MOTOR VEHICLE TRAFFIC IN THE PHILIPPINE ISLANDS,
TO PROVIDE FOR THE REGISTRATION OF MOTOR VEHICLES
AND THE LICENSING OF OPERATORS, AND TO REQUIRE ALL
VEHICLES ON HIGHWAYS TO CARRY LIGHTS, AND FOR
OTHER PURPOSES,” BY PROVIDING PENALTIES FOR THE
VIOLATION OF CERTAIN PROVISION THEREOF, AND FOR
OTHER PURPOSES

Legislature, that:
SECTION 1. Paragraph (g) of section one of Act Numbered Twenty-

one hundred and fifty-nine, entitled “An Act to regulate motor vehicle traffic
in the Philippine Islands, to provide for the registration of motor vehicles
and the licensing of operators, and to require all vehicles on highways to
carry lights, and for other purposes,” is hereby amended to read as follows:
“(g) ‘Dealer’ includes every person making, manufacturing,

constructing, assembling, or setting up motor vehicles in these Islands for
sale; every person acting as agent for the sale of one or more makes, styles,
or kinds of motor vehicles, and every persons dealing in motor vehicles,
keeping the same in stock, or selling or handling the same with a view of
trading in or selling the same.”
SEC. 2. Section two of said Act is hereby amended to read as follows:
“SEC. 2. No motor vehicle shall be used or operated in, along, or

upon any highway of the Philippines Islands unless the same has been
registered in accordance with the provision of this Act, nor by any person
who has not been licensed to operate such motor vehicle under the provisions
of this Act.
345
“Any person convicted of a violation of the provisions of this section

shall be punished by a fine of not more than two hundred pesos: Provided,
however, That if the vehicle so operated is for let or hire to the public a
further penalty of not more than six months imprisonment may be imposed.
“Motor vehicles belonging to the Government of the United States,

the Government of the Philippine Islands or any of its subdivisions, or to
any provincial, city or municipal government shall be regarded as registered
under the provisions of this Act if they bear signs or legends plainly
indicating to what department, bureau, or political subdivision the same
belong and the number plates required by section seven hereof, which
number plates shall be issued free by the Director of Public Works.”
SEC. 3. Section three of said Act is hereby amended to read as follows:
“SEC. 3. Every person who owns or possesses a motor vehicle shall

within thirty days from the time of acquiring said vehicle file in the office
of the Director of Public Works or in the office of the district engineer for
each motor vehicle owned or possessed by him a statement of his name,
place of residence and address, the number and date of his cedula and the
place where same was issued, a brief description of each such motor vehicle
including the name, style, or type thereof, the name or title of the makers,
the number, if any, stamped upon or affixed by the makers to the same, the
number of wheels, the character of the motive power, and the amount thereof
stated in figures of horsepower, the name of the person from whom the
machine was acquired, and such other information as the Director of Public
Works may require. Such statement shall be regarded as an application for
the official registration of such motor vehicle.
“Every person acquiring a motor vehicle not registered under the

provision of this Act after the same is effective shall file a like statement
within thirty-six hours after he has taken possession of such motor vehicle.

shall be punished by a fine of not more than two hundred pesos.”
346
SEC. 4. Section nine of said Act is hereby amended to read as follows:
“SEC. 9. Every motor vehicle of more than three wheels shall at all
times when in use bear in a conspicuous place on the front of such vehicle
one of the number plates issued for such vehicle, and in a conspicuous
place in the rear thereof the other such number plate. And every other motor
vehicle shall bear the number plate issued for it in a conspicuous place in
the rear thereof. Such number plates shall be kept clean and cared for and
shall be firmly affixed so that the number thereon may at all times be visible
and legible whether the motor vehicle is in motion or not.

shall be punished by a fine of not more than two hundred pesos.”
SEC. 5. Section ten of said Act is hereby amended to read as follow:
“SEC. 10. Whenever any motor vehicle is sold or any change in the
ownership thereof takes place it is hereby made the duty of the former
owner thereof to notify the Director of Public Works as soon as possible in
writing of such change, giving the name, residence, and address of such
purchaser or new owner, the number of certificate of registration issued to
cover the vehicle, and the number borne on the number plate or plates
issued for such vehicle. Such notification shall be accompanied by a fee of
fifty centavos, and the Director of Public Works shall cause the name,
residence and address of such purchaser or new owner to be recorded in
the ‘Motor Vehicle Register’ in such a manner that the owner of any motor
vehicle may at any time readily be ascertained therefrom. Any statement
indorsed on the back of a certificate of registration issued under this Act
shall be sufficient evidence, for the purposes of this Act, of the ownership
of the purchaser or transferee named in such statement, if the same be
signed by the person in whose name the certificate was issued and complies
substantially with the following form:
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“ ‘. . . . . . . . . . . . . . . . . . . . . . .
(Date)
“‘I have this day transferred my ownership of the motor vehicle

described on the face hereof to . . . . . . . . . . . ., of . . . . . . . .. . . . . . . . . . . “
‘ . . . . . . . . . . . . . . . . . . . . . . . . .’
(Signature)
“Any person convicted of a violation of this section shall be punished

by a fine of not more than two hundred pesos.”
SEC. 6. Section twelve of said Act is hereby amended by adding at

the end thereof the following:
“Provided, That no dealer shall operate motor vehicles for hire unless same
shall have been registered in accordance with sections three and four of
this Act.”
SEC. 7. Section fourteen of said Act is hereby amended to read as

follows:
“SEC. 14. The Director of Public Works shall cause to be prepared a

form, which shall be furnished free of charge upon request, and upon which
every person who desires hereafter to operate any motor vehicle as a
chauffeur shall answer under oath all questions asked and give all
information required by the Director of Public Works, including his true
name, address and age, the number, date, and place of issue of his cedula,
and the names, kinds, types, or styles of motor vehicles which he is
competent to operate, together with the form and amount of their motive
power, and whether his senses of sight and hearing are normal.
“The Director of Public Works is hereby authorized in his discretion

to require an applicant for a license as chauffeur to answer such further
348
questions or to submit to such an examination touching his qualifications

as chauffeur, as in the Director of Public Works’ judgment will best disclose
the applicant’s fitness and competency to operate motor vehicles
“If after such examination or without the same the Director of Public
Works believes the applicant to possess the necessary qualifications and
knowledge, he shall, upon the receipt of a fee of two pesos, issue to such
applicant a license to operate as a chauffeur motor vehicles of the kind,
style, type, or make and power described in the application until the fifteenth
day of January next following or until such license is revoked. But if the
said Director does not believe the applicant to be a person qualified to
operate motor vehicles he shall not issue a license as chauffeur to such
applicant, in which event the applicant’s fee shall be returned to him.
“Every license issued to operate a motor vehicle shall have a line or

place for the signature of the licensee, and no license issued shall be effective
as an authorization to the person to whom issued to operate a motor vehicle
until after such person has written his usual signature in the place provided
for that purpose.
“Any license not renewed on or before January fifteenth of each

year shall become delinquent. The fee for renewal of a delinquent license
shall be four pesos.
“The Director of Public Works may suspend for a period not exceeding
two months or, after hearing, revoke any license issued under the provision
of this Act, and may order any such license to be delivered to him whenever
he has reason to believe that the holder thereof is an improper or incompetent
person to operate motor vehicles, or is operating a motor vehicle so as to
endanger the public; and the license so suspended or revoked shall not be
re-issued, unless, upon investigation, the Director of Public Works decides
that the operator may again legally be permitted to operate.
“Appeals from the decision of the Director of Public Works on the

revocation of or his refusal to renew licenses under the provisions of this
section may be taken to the Court of First Instance having jurisdiction within
the district wherein the appellant resides.
349
“Any person who operates a motor vehicle while his license is

suspended or revoked shall be punished by a fine of not less than twenty
nor more than two hundred pesos for each offense, provided that if the
vehicle so operated is for let or hire the penalty shall be not less than ten
days nor more than thirty days imprisonment for each offense.”
SEC. 8. Section sixteen of said Act is hereby amended to read as

follows.
“SEC. 16. Persons who have procured the registration of one or more
motor vehicles owned by them shall, if they desire themselves to operate
such vehicles, make like application as provided in section fourteen, and
under like conditions as those therein prescribed and upon the payment of
like fee, the Director of Public Works shall issue to such owners licences to
operate motor vehicles.”
SEC. 9. Section twenty-one of said Act is hereby amended to read as

follows:
“SEC. 21. Every person having motor vehicles for hire and every
proprietor of a garage shall keep, or cause to be kept, in a book having
blank columns, heading, and spaces, to be prescribed by the Director of
Public Works, a correct, exact, and legible record in ink of every motor
vehicle which leaves his place of business or garage, showing the exact
time of the vehicle’s departure and return, the name of the chauffeur
operating it, the name of the person to whom the same is rented, loaned,
let, or hired, and such other information as the Director of Public Works
may require. Such book shall be kept in a convenient place in said place of
business or garage and shall at all times while such place of business or
garage is not closed be open to examination by the Director of Public Works
or his agents and any police officer of the city or municipality within with
the garage is situated.
“Failure to provide such book or to keep correct and exact records

therein as required in this section shall upon conviction subject the offender
to a penalty of not less than five nor more than one hundred pesos. Upon a
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second conviction of such offense the Director of Public Works shall revoke
the license of such offender.”
SEC. 10. Section twenty-two of said Act is hereby amended to read

as follows:
“SEC. 22. No owner or other person in whose name one or more

motor vehicles have been registered under this Act shall lend to any other
person any such certificate of registration or any number plate or other
mark, nor give away or sell such certificate, number plate, or other mark,
except upon the transfer or change of ownership or possession of the motor
vehicle which is registered in such certificate, or for which such number
plate or other mark was issued, and no person shall borrow such certificate,
number plate, or other mark nor buy or purchase the same except upon like
transfer of ownership of a motor vehicle as above contemplated. No person
to whom a license or permit to operate a motor vehicle has been issued
under this Act shall lend, sell, or give away, and no person shall borrow,
buy, or purchase such license or permit.
“No person shall make use of any certificate of registration, number

plate, mark, permit or license issued under this Act to or in favor of any
other person or for any motor vehicle not owned or not in lawful possession
of the person using such certificate, number plate, or mark.
“Every person violating the foregoing provisions of this section, and

every person found guilty of stealing any certificate, number plate, mark,
permit or license issued under this Act, or taking and carrying away the
same without the knowledge of the person lawfully entitled thereto or against
the will of such person shall be punished by a fine of not more than two
hundred pesos or imprisonment of not more than six months.”
SEC. 11. Section twenty-five of said Act is hereby amended to read

as follows:
“SEC. 25. Unless a different course of action is required in the

interests of the safety and security of life, person, or property, every person
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operating a motor vehicle on a highway shall turn to the left when meeting
persons or vehicles coming toward him, and to the right when overtaking
persons or vehicles going in the same directions and when turning to the
right in going from the one highway into another every motor vehicle shall
be conducted to the left of the center of the intersection of the highway,
thus:
“Any person found guilty of a violation of the provisions of this

section shall be punished by a fine of not less than ten nor more than one
hundred pesos.”
SEC. 12. Section thirty-two of said Act is hereby amended to read as

follows:
“SEC. 32. Every motor vehicle of more than three wheels in use on
any public highway, whether in motion or not, shall bear two lamps in
front, one on each side which not later than one-half hour after sunset and
until at least one-half hour before sunrise, shall be lighted. While the vehicle
is in motion, the lights on a level shall render the person of a man dressed
in dark clothing visible for a distance of not less than three hundred feet
ahead and the light thrown forward or ahead of the motor vehicle shall be
white light. Additional lamps and lights may be carried; but if one additional
lamp is carried it shall be affixed midway between the two lamps
hereinbefore required. If two additional lamps are carried and one of them
is lighted the other shall also be lighted. The lighting of only one of a pair
of additional lamps while the motor vehicle is operated upon a public
highway is prohibited.
“Each such vehicle shall further, during the hours aforesaid, bear in
the rear a lamp throwing a white light upon the number plate or other
distinguishing mark issued for each vehicle and a red light to the rear. The
hours herein fixed within which such lamps shall burn shall not exempt
operators from the obligation of lighting such lamps or causing the same to
be lighted at earlier or later hours or times when, on accounts of atmospheric
or weather conditions or other phenomena, the use of such motor vehicles
upon public highways might otherwise be dangerous or unsafe. Motor
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vehicles of less than four wheels shall, during the hours herein fixed, bear
in front a lamp throwing a white light ahead.
“Every other vehicle, of whatever style, kind, make, character, or

nature, when upon a highway during the hours aforesaid, whether in motion
or not, shall bear one or more lights so arranged that the same shall be
visible from in front and from the rear of such vehicle.”
SEC. 13. Section thirty-three of said Act is hereby amended to read

as follows:
“SEC. 33. Every person operating a motor vehicle upon public

highway shall on signal by any police officer and by raising the hand, or on
request, or call, or cry from any person, riding, driving, or leading a horse
or other animal thereon, bring such motor vehicle immediately to a stop,
and, if travelling in an opposite direction, remain stationary so long as
may be reasonable, necessary to allow such horse or animal to pass, and, if
travelling in the same direction, use reasonable caution in passing such
horse or other animal, and if such horse or other animal appear to be badly
frightened, the operator shall cause the motor of his vehicle to cease running
so long as may be reasonably necessary to prevent accident and insure the
safety of others and shall render assistance, if requested, to enable the person
in charge of such horses or animals to pass with them. In approaching or
passing a car of a street or other railway which is stopping to allow
passengers to alight or embark, the operator of every motor vehicle shall
slow down and, if necessary for the safety of the public, come to a full
stop. No person shall unreasonably or maliciously call upon the operator
of a motor vehicle to stop.”
SEC. 14. Section forty-two of said Act is hereby repealed.
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ACT NO. 2282
AN ACT GRANTING A FRANCHISE TO HERBERT C. HEALD TO

CONSTRUCT OR ACQUIRE BY PURCHASE AND FOR A
PERIOD OF TWENTY YEARS, TO MAINTAIN AND OPERATE
BY STEAM OR OTHER POWER AN AERIAL TRAMWAY
FROM CAMP COLGANS NEAR KILOMETER TWENTY-FOUR
ON THE BENGUET ROAD TO THE CITY OF BAGUIO,
SUBPROVINCE OF BENGUET, MOUNTAIN PROVINCE,
APPROXIMATELY A DISTANCE OF FIVE KILOMETERS

Commission, that:
SECTION 1. Herbert C. Heald, a citizen of the United States, upon

or acquire by purchase and, for a period of twenty years after the passage
of this Act , to maintain and operate by steam or other mechanical power
an aerial tramway from Camp Colgans near kilometre twenty-four on the
Benguet Road, to the city of Baguio, subprovince of Benguet, Mountain
Province, including such stations, supporting towers, and passing places
as may be necessary for the convenient operation of the aerial tramway.
SEC. 2. The aerial tramway shall be of the double rope system, with
necessary stations for power and for receiving and discharging freight, and
shall be constructed along a right of way selected by the grantee and
approved by the Director of Public works: Provided, however, That should
it be necessary in the construction thereof, to occupy lands of private
ownership, the same shall be occupied only after they have been legally
acquired by the grantee.
SEC. 3. The tramway, including the stations, supporting towers,

cables, cars, and other accessories, shall be so constructed as not to interfere
with other traffic within the territory traversed by it. In case of dispute
between the city authorities of Baguio and the grantee as to the location of
the tramway and its supporting towers within the city limits, the matter
354
shall be referred to the Director of Public Works for decision, whose

decision, when approved by the Governor-General, shall be final.
SEC. 4. The grantee shall begin the construction of the aerial tramway
within thirty days after the acceptance in writing of the franchise and he
shall fully complete the same and put it in operation for the public
convenience for its entire length within six months from the date of said
acceptance, and for failure to begin the work of construction or to complete
the tramway and put the same in operation for public convenience within
the time prescribed the franchise shall be forfeited and the grantee shall be
subject to the liabilities hereinafter stated for such failure.
SEC. 5. The tramway shall be constructed in accordance with plans

to be presented by the grantee and approved by the Director of Public Works,
and whenever it shall be necessary in the construction of supporting towers
or buildings therefor to occupy any portion of a sidewalk, street, road,
thoroughfare, or other public place the grantee shall, on completion of the
structure, immediately remove all rubbish, sand, earth, or other material
left over from such construction, and shall leave such sidewalk, street, road,
thoroughfare, or other public place as nearly in its original shape and
condition as the structure will permit. In the construction of such towers or
buildings along the Benguet Road, the grantee shall use the utmost
precaution and shall do nothing to endanger traffic thereon. He shall, if so
required by the Director of Public Works or his duly authorized
representative, during the construction of such towers have guards stationed
along said road to give timely warning to approaching persons, or vehicles,
thereon, and in the event of slides or damage caused by such construction
he shall immediately, at his own expense, remove the obstruction and place
the road in its original condition.
SEC. 6. Whenever authority shall be granted by the city council of

Baguio to remove any building, or to prosecute any municipal work with
which the tramway may interfere, notice of such interference shall be duly
served on the grantee and he shall, within forty-eight hours from receipt of
the notice, raise or remove so much of the tramway as may be necessary to
the free and uninterrupted prosecution of the work. Such notice shall be
made only upon the adoption of a resolution to that effect by the city council,
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and shall be sufficient when same shall have been served on the grantee or
his authorized representative. In case of refusal on the part of the grantee to
comply with the notice, the mayor of the city, with the consent of the council,
shall then refer the matter to the Director of Public Works for decision.
SEC. 7. The grantee shall be under a continuing obligation to keep in

good repair the aerial tramway and its structures for the entire length of the
system.
SEC. 8. The construction, operation, and maintenance of the aerial

tramway system herein provided for shall be subject to the following terms,
conditions, and limitations:
(a) The grantee shall file a petition describing the land he desires
to obtain from the public domain, showing that same is not in use for any
other public purpose, and is properly necessary for the enjoyment of the
franchise to construct and maintain the aerial tramway herein described,
and praying that the same be conveyed to him for the uses and purposes of
said franchise. The petition shall be accompanied by a plat and survey of
the land described in the petition. The Director of Public Works, after an
examination of the petition and the plat and after taking evidence, if
necessary, shall, if he finds that the land petitioned for is necessary and
proper for the enjoyment of the franchise herein granted, approve the same.
The Director of Public Works shall then forward the petition with his
approval to the Director of Lands, who shall, after due investigation,
determine whether the land sought is public land, and is not in use for any
other public purpose, and shall certify his finding to the Governor-General,
who if satisfied as to the propriety and legality of granting the petition
shall grant to the owner of the franchise permissions to occupy and use
said land for the purpose of the franchise. The Government reserves the
right, however, to grant any portion of the land so used a third person, but
such grant shall, in that event, be subject to the terms and conditions of the
franchise.
(b) The permission to use the land shall be in writing and shall
contain a clause providing for the reversion of the land so used to the
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Government of the Philippine Islands whenever it shall have ceased to be

used for the purpose of the franchise.
(c) So long as the franchise shall remain in force no real or personal

property of the tramway actually used and necessary for the purposes thereof
shall be taxed by the Insular Government, or by any province or municipality.
(d) The grantee shall have the right to establish a lumber yard at
the Baguio terminal of the tramway within the area, according to the plat,
obtained for such terminal, and to sell therefrom such building material,
lumber, and firewood as he may desire to carry in stock for that purpose.
The exemption from taxation provided in subsection (c) hereof shall not
apply to such lumber yard or to building materials, lumber, and firewood
therein.
(e) Subject to the approval of the Director of Public Works, the

grantee may abandon or remove said tramway or any part thereof when, by
reason of the completion and operation of the Baguio extension of the line
of the Manila Railroad Company the tramway shall no longer be required
for the carrying of general freight to the city of Baguio.
(f) The rate for hauling freight and express into and from the city
of Baguio for others than the grantee shall be one-half centavo per kilo for
freight and one centavo per kilo for express, subject however, to change, as
may be fixed by the Board of Rate Regulation: Provided, That at any time
the capacity of the tramway shall be overtaxed all freight and express for
transportation presented by the Government shall have absolute preference.
(g) The grantee, his lessees, successors, or assigns shall be held

liable in the sum of one hundred pesos each for every piece of mail, baggage,
or express, and ten centavos each for every kilo of freight matter lost or
damaged through mechanical fault in the tramway or any other cause
whatsoever, except by act of God or the public enemy.
(h) The grantee shall be required to transport in either direction,

by said tramway, at least one hundred metric tons of general freight and
357
express per day of ten working hours each if offered: Provided, however,
That if an amount of freight and express is offered in excess of one hundred
metric tons per day, the grantee in that event, shall provide a special day
and night service to be maintained until the necessity therefor shall cease.
(i) The grantee, his lessees, successors, and assigns shall be required
to adjust all breakdowns of the tramway with the utmost possible dispatch.
In the event of a breakdown for more than twenty-four hours, a penalty of
fifty pesos per day shall be imposed if the breakdown occurs in the months
of January, February, March, April, May, or June for each period of twenty-
four hours that the breakdown shall continue, and a penalty of twenty-five
pesos shall be imposed for each period of twenty-four hours if the breakdown
occurs during the months of July, August, September, October, November,
and December: Provided, That the Director of Public Works may waive
this penalty if he deems that the breakdown is of such a nature as to cause
the remitting of the penalty to be just and equitable. The grantee, however,
shall make every effort during the period of such breakdown to carry the
freight and express then in his custody and such as may be presented for
transportation during the period of such breakdown over the tramway or
any other route, employing, if necessary, at his own expense, other means
of transportation.
(j) The grantee shall hold the Government harmless from all claims,
accounts, demands, or actions arising out of accidents or injuries, whether
to persons or property, caused by the construction or operation of the
tramway.

suspected to contain goods of dangerous nature, or whose transportation
shall be prohibited by law.
SEC. 10. In consideration of the franchise hereby granted, one-quarter

of one per centum of the gross receipts of the enterprise for the first two
years, and two and one-half per centum of the gross receipts for the
remaining period of the franchise shall be paid quarterly into the Insular
Treasury in lieu of all Insular, provincial and municipal taxes on the franchise
358
and the privileges granted hereunder, except taxes on real estate, and the
sale of such lumber, building materials, and firewood as shall form the
stock mentioned in paragraph (d), section eight hereof. Any penalties
imposed in subsection (i) of section eight hereof shall be paid into the
Insular Treasury in the same manner. The amount of gross receipts and
penalties thus paid shall be distributed between the Insular Government,
the subprovince of Benguet, and the city of Baguio, as provided by general
law.
SEC. 11. Within ten days after the map or plan of the tramway
furnished by the grantee is returned to him by the Director of Public Works
finally approved, the grantee shall file with the Secretary of Commerce
and Police his acceptance in writing of the franchise hereby granted, and at
the same time shall deposit in the Insular Treasury the sum of two thousand
pesos, or other negotiable securities of equal value approved by the
Government-General. Said deposit of two thousand pesos shall be made as
a guaranty for the faithful performance of the obligations of the franchise:
Provided, That if work on said tramway shall be commenced by the grantee
within the time specified in section four hereof, said sum may be repaid to
him as the work progresses in monthly installments in the proportion which
the work done bears to the whole project.
SEC. 12. The books and accounts of the grantee, his lessees,
successors, or assigns, shall at all times be open to inspection and
examination by the Insular Auditor, or his duly authorized representative,
and when the tramway shall have been put into operation it shall be the
duty of the grantee, his lessees, successors, or assigns to submit to the
Insular Auditor, and to the Director of Public Works quarterly reports, in
duplicate, showing the gross receipts and all expenditures for the account
of the tramway as well as such other data as may be required by the Insular
Auditor, or the Director of Public Works, who shall keep the same on file.
SEC. 13. The grantee, his lessees, successors, and assigns are
forbidden to issue stock or bonds under the franchise hereby granted except
in exchange for actual cash or property at a valuation equal to the par value
of the stock or bonds so issued. Neither shall said grantee or his successors
declare any stock or bond dividends.
359
SEC. 14. The grantee herein may sell, lease, give, grant, convey, or
assign the franchise hereby granted and all property and rights acquired
thereunder to any person, company, or corporation competent to conduct
the business authorized thereby but no title to the franchise or to the property
or rights acquired thereunder shall pass by sale, lease, gift, grant,
conveyance, transfer, or assignment to the vendee, donee, transferee, lessee,
or be enjoyed by him until he shall have filed in the office of the Secretary
of Commerce and Police an agreement in writing agreeing to comply with
all the terms and conditions imposed on the grantee by the franchise and
accepting the said franchise subject to all its existing terms and conditions.
SEC. 15. The franchise is hereby granted with the understanding and
upon the condition that it shall be subject in all respects to the limitations
upon corporations and the granting of franchises, contained in 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
SEC.16. The Secretary of Commerce and Police on recommendation

of the Director of Public Works, after hearing the grantee, shall have the
power, with the approval of the Governor-General, to declare the forfeiture
of the franchise for failure to comply with any of the terms and conditions
thereof unless such failure shall have been directly or primarily caused by
the act of God, the public enemy, or force majeure. Against such declaration
of forfeiture the grantee may apply to any court of competent jurisdiction
for such relief as to him may seem proper, but of no such application is
made within sixty days after the forfeiture has been declared by the Secretary
of Commerce and Police, and approved by the Governor- General, the right
to apply to the courts shall be considered waived.
SEC. 17. Whenever in the franchise the term “grantee” is used it

shall be held and understood to mean and represent the said Herbert C.
Heald, his representatives, successors, or assigns.

360
ACT NO. 2308
AN ACT ABOLISHING THE BUREAU OF NAVIGATION AND

TRANSFERRING TO OTHER BUREAUS CERTAIN PROPERTY,
EQUIPMENT, FUNCTIONS, AND DUTIES HITHERTO
APPERTAINING THERETO; PROVIDING FOR THE SALE OF
CERTAIN PROPERTY, AUTHORIZING THE SALE OR LEASE
OF THE MARINE RAILWAY AND REPAIR SHOP, AND
REPEALING CERTAIN PROVISIONS OF LAW RELATING TO
THE BUREAU OF NAVIGATION

Legislature, that:
SECTION 1. The Bureau of Navigation is hereby abolished and the

property, equipment, functions, and duties appertaining to said Bureau are
hereby transferred to the Bureau of Customs and to the Bureau of Public
Works, in the following manner:
(a) To the Bureau of Customs :
The construction, repair, maintenance, and operation of vessels

appertaining to or in charge of the Bureau of Navigation; the maintenance,
lighting, inspection, and superintendence of lighthouses, and the care and
maintenance of buoys, beacons, light-ships, navigation marks, and their
appurtenances; the jurisdiction over navigable rivers, bays, and other
navigable waters, except such jurisdiction as is designated by law to the
Bureau of Coast and Geodetic Survey; and the functions and duties
heretofore performed by the superintendent of interisland transportation:
Provided, however, That the dredges fitted up as vessels shall, in view of
the nature of their functions, be transferred to the Bureau of Public Works.
(b) To the Bureau of Public Works:
The construction of lighthouse towers and buildings appertaining

thereto; the construction of wharves, docks, jetties, retaining walls, and all
361
other port works; the work of reclaiming land from the sea by dredging,
filling in, or otherwise, and the construction of all structures in connection
with the improvement of the facilities for loading and unloading vessels,
and the construction, repair, and maintenance of bridges crossing navigable
waters: Provided, however, That when a bridge is constructed across
navigable waters, the project for the construction thereof shall be prepared
with the concurrence of the Bureau of Customs, and in case of disagreement
with the Bureau of Public Works, the Governor-General shall decide: And
provided further, That all funds appropriated for such work shall be
transferred to the Bureau of Public Works to be expended thereon.
SEC.2. All property, work under way, plans, and documents now in
possession of the several divisions of the Bureau of Navigation shall be
inventoried and transferred to the Bureau of Customs and Public Works,
respectively, pursuant to the provisions of the next preceding section. All
property, equipment, and materials which the Collector of Customs or the
Director of Public Works shall consider unnecessary or not required for
the public service, shall be sold at public auction or private sale, subject to
the approval of the Governor-General.
SEC. 3. The time and the services of the several employees of the
division of port works of said Bureau of Navigation are hereby made
available for the general purposes of the Bureau of Public Works, as provided
in this Act. The time and the services of the various officers and employees
of the division of vessels and the lighthouse division of the said Bureau of
Navigation are hereby made available for general purposes of the Bureau
of Customs, as herein provided: Provided, however, That said Bureaus shall
retain the services of only such officers and employees of said Bureau of
Navigation as may be deemed necessary: And provided further, That it is
not the purpose of this Act to affect the rights and liabilities of officers and
enlisted men under the provisions of Act Numbered Nineteen hundred and
eighty.
SEC. 4. The division of the Bureau of Navigation known as marine

railway and repair shop is hereby placed under the Bureau of Customs
until the consummation of the sale or lease authorized by this Act. The
362
Secretary of Finance and Justice is hereby authorized to sell or lease such

marine railway and repair shop to any person or private concern, subject to
such conditions as he may deem in the public interest, and with the approval
of the Governor-General: Provided, however, That one of the conditions of
such sale or lease shall be that any construction or repair work turned over
by the Government to the marine railway and repair shop shall be done at
the cost of materials and labor with a surcharge of only such per centum as
may be fixed in the contract of sale or lease and given preference over all
other work.
SEC .5. The transfer of the several divisions of the Bureau of

Navigation as herein provided, shall be effected in accordance with the
orders of the Secretary of Commerce and Police, with the approval of the
Governor-General, so as to prevent loss by reason of the noncompletion of
the construction and repair work now under way.
SEC. 6. So much as may be necessary of the unexpended funds of

the Bureau of Navigation for the current fiscal year, is hereby made available
for expenditure by the Bureau of Public Works and the Bureau of Customs
and the share of each of said Bureaus shall be determined by the Governor-
General, on the basis of the adjustment made of the duties transferred from
the Bureau of Navigation to said Bureau of Customs and Public Works,
respectively.
SEC. 7. Upon the transfers provided for this Act, the control and
executive supervision now vested in the Department of Commerce and
Police with regard to the part of the Bureau of Navigation transferred to
the Bureau of Customs shall be transferred to the Department of Finance
and Justice.
SEC. 8. Sections fourteen (a), fourteen (b), fourteen (c), sixteen (a),
and sixteen (b) of Act Numbered Fourteen hundred and seven; the
subsections of section one of Act Numbered Fourteen hundred and sixteen,
beginning with “Marine railway and repair shop, Bureau of Navigation,”
and ending with “marine railway and repair shop are hereby transferred
from account of other appropriations of the Bureau of Navigation to this
363
account;” Acts Numbered Thirteen hundred and thirty-nine, Fifteen hundred

and sixty-eight, and Seventeen hundred and ninety-six, and all other Acts
or parts of Acts inconsistent with the provisions of this Act, though not
especially mentioned herein, are hereby repealed.
SEC. 9. All funds derived from the sale or lease of the marine railway
and repair shop and the sale of other property authorized by this Act shall
be paid into the Insular Treasury, form part if the general funds and be
available for appropriation by Act of the Philippine Legislature and in no
other manner.
364
ACT NO. 2328
AN ACT TO AMEND ARTICLES NINETEEN AND TWENTY-TWO OF

SECTION TWO OF ACT NUMBERED TWO THOUSAND AND
THIRTY-FOUR, ENTITLED “AN ACT AUTHORIZING THE
GRANTING ON CERTAIN CONDITIONS OF A FRANCHISE TO
CONSTRUCT, MAINTAIN, AND OPERATE A STREET RAILWAY
IN THE MUNICIPALITY OF CEBU,” BY EXTENDING THE
TIME WITHIN WHICH THE CONSTRUCTION OF THE STREET
RAILWAY THEREIN PROVIDED FOR SHALL BE COMPLETED,
AND BY EXTENDING THE TIME FOR REPAYMENT TO THE
GRANTEE OF THE MONEY, BONDS OR OTHER SECURITIES
DEPOSITED WITH THE INSULAR TREASURY AS SECURITY
FOR THE PERFORMANCE OF THE OBLIGATIONS OF SAID
FRANCHISE

Legislature, that:
SECTION 1. Article nineteen of section two of Act Numbered Two

thousand and thirty-four is hereby amended to read as follows:
“ART.19. The grantee shall begin the construction of the street railway
herein provided for within one year from the date of the granting of the
franchise, and the same shall be completed and in operation within three
years after the expiration of said period of one year unless prevented by the
act of God, or the public enemy, usurped or military power, martial law,
riot, civil commotion or inevitable cause; otherwise the franchise herein
granted shall become liable to forfeiture: Provided, That the Governor-
General may at his option extend the period for the completion of the said
street railway for a further period of not exceed six months.”
SEC. 2. Article twenty-two of Act Numbered Two thousand and thirty-

four is hereby amended to read as follows:
“ART.22. Within ten days after the granting of this franchise, in

pursuance of the public bidding required by this Act, the grantee shall file
365
a formal written acceptance of the grant in the office of the Secretary of

Commerce and Police, and within thirty days after such acceptance the
grantee shall deposit in the Insular Treasury in cash or negotiable bonds of
the United States, or other securities to be approved by the Governor-
General, the sum of three thousand pesos, and within six months thereafter
the further sum of seven thousand pesos, as security for the performance of
the obligations of the franchise: Provided, That all of the said sums which
have heretofore been, or may hereafter be deposited as such security shall
be repaid by the Insular Treasurer to the grantee whenever, within the period
fixed by article nineteen of this section as hereby amended, the Director of
Public Works shall certify that three-fourths of the mileage of the road
covered by this franchise has been constructed according to the terms and
conditions herein imposed on the grantee. If, however, the grantee shall
within the time required, fail to perform the obligation of his contract, then
the Insular Treasurer may, by appropriate action, recover the sum so
deposited as liquidated damages for the breach.”
366
ACT NO. 2346
AN ACT TO REPEAL ACT NUMBERED NINETEEN HUNDRED AND

EIGTHY, ENTITLED “AN ACT TO PROVIDE FOR THE
WITHIN THE BUREAU OF NAVIGATION, THE CREATION OF
A PENSION FUND IN CONNECTION THEREWITH, AND FOR
THE PUNISHMENT OF OFFENSES AGAINST GOOD ORDER
AND DISCIPLINE WITHIN SUCH SERVICE,” AND ACT
NUMBERED TWENTY-TWO HUNDRED AND FORTY-TWO,
ENTITLED “AN ACT AMENDING ACT NUMBERED NINETEEN
HUNDRED AND EIGHTY, ENTITLED ‘AN ACT TO PROVIDE
FOR THE CREATION OF A COMMISSIONED AND ENLISTED
SERVICE WITHIN THE BUREAU OF NAVIGATION, THE
CREATION OF A PENSION FUND IN CONNECTION
THEREWITH, AND FOR THE PUNISHMENT OF OFFENSES
AGAINST GOOD ORDER AND DISCIPLINE WITHIN SUCH
SERVICE,’ BY MAKINGTHE PROVISIONS OF SECTION TWO
THEREOF RETROACTIVE FOR CERTAIN COMMISSIONED
OFFICERS, AND FOR OTHER PURPOSES,” AND TO PROVIDE
FOR THE REFUND OF THE PENSION FUND CREATED BY
SAID ACT NUMBERED NINETEEN HUNDRED AND EIGTHY

Legislature, that:
SECTION 1. Act Numbered Nineteen hundred and eighty, entitled

“An Act to provide for the creation of a commissioned and enlisted service
within the Bureau of Navigation, the creation of a pension fund in connection
therewith, and for the punishment of the offenses against good order and
discipline within such service,” and Act Numbered Twenty-two hundred
and forty-two, entitled “An Act amending Act Numbered Nineteen hundred
and eighty, entitled “An Act amending Act Numbered Nineteen hundred
and eighty, entitled ‘An Act to provide for the creation of a commissioned
and enlisted service within the Bureau of Navigation, the creation of a
pension fund in connection therewith, and for the punishment of offenses
367
against good order and discipline within such service,’ by making the
provision of section two thereof retroactive for certain commissioned
officers, and for other purposes,” are hereby repealed. Every officer, petty
officer, enlisted man, light keeper, and apprentice of the commissioned
and enlisted service of the former Bureau of Navigation now transferred to
the Bureau of Customs shall receive a refund from the general funds of the
Government of an amount equal to the sum he shall have paid into “the
pension fund, Bureau of Navigation,” the said general funds to be
reimbursed by the postal savings bank out of the securities and the interest
thereon invested for the said pension fund as the same come due.
368
ACT NO. 2373
AN ACT TO AMEND PARAGRAPH TWO OF SECTION ONE OF ACT

NUMBERED FIFTEEN HUNDRED AND TEN, ENTITLED “AN
ACT GRANTING TO THE MANILA RAILROAD COMPANY A
CONCESSION FOR RAILWAY LINES IN THE ISLAND OF
LUZON, AND PROVIDING IN RESPECT OF PROCEEDINGS
FOR CONDEMNATION OF LAND BY PUBLIC SERVICE
CORPORATIONS,” MAKING ITS PROVISIONS EXTENSIVE
WITH CERTAIN LIMITATIONS, TO THE FORESHORE AND
LAND RECLAIMED FROM THE SEA
By authority of the United States, be it enacted by the Philippines

Legislature, that:
SECTION 1. Paragraph two of section one of Act Numbered Fifteen

hundred and ten, granting to the Manila Railroad Company a concession
for railway lines in the Island of Luzon, and providing in respect of
proceedings for condemnation of land by public service corporations, is
hereby amended to read as follows:
land of the Philippine Government is hereby given and granted to the grantee
for the construction, operation and maintenance of the railroad or railroads
as herein authorized to the extent of one hundred feet in width where it
may pass through the public domain, including all necessary ground for
depots, machine shops, station buildings, workshops, water stations,
warehouse, terminals – including wharves and docks fronts, switches, side
tracks, and turntables – and also such extra lands beyond such one hundred
feet as may be found necessary for said purposes: Provided, That the same
be approved by the Governor General as a part of the definite plans
public lands and to take from such lands earth, stone, timber, and to other
369
or for sale under the Public Land Act, or to timber lands of the Philippines
Government, and shall not apply to lands used and assigned for other public
purposes, or to the lands known as the friars’ lands.
“The grantee shall have the right, with the approval of the Governor-
General.
“Lands or rights of use and occupation of lands granted under the

which they were respectively granted, upon the termination of this franchise
“The grantee shall also have the right to acquire from corporations,
or private individuals, by purchase, contract, lease, grant, or donation, any
and operation of the said lines of railway, or any of them.
“The grantee shall also have the right to acquire by condemnation

the lands necessary for the right of way, for bridges, for terminals, including
wharves and docks at harbor points and elsewhere, for sidings, stations,
engine houses, water stations, and other appropriate buildings and structures
for the proper and convenient construction, operation, and maintenance of
the lines of railway herein authorized; but no lands within the boundaries
of any province, city, town, or municipality shall be occupied by the grantee
if the same are in actual use for provincial, governmental, or municipal
purposes, nor shall any land within the boundaries of any city, town, or
municipality be so occupied without the consent of the proper authorities
of such city, town, or municipality, unless the Governor General shall
consent to the same. The right of condemnation or eminent domain shall
be exercised by the grantee in accordance with the laws of the Philippine
Island at the time being in force.
370
“The grantee shall have the right to construct and maintain for the
operation of said railways any and all tracks (single, double, or more),
bridges, viaducts, culverts, fences and other structures; and depots, station
houses, engine houses, car houses, freight houses, wood houses, and other
building; and all machine shops and other shops, water tanks, turntables,
superstructures, erections, and fixtures; and all elevators, warehouses,
wharves, piers, and other facilities –terminal or otherwise—for operating
said railroads, and also any hotels or restaurants at any station or terminal.
“The provisions of this paragraph shall also be applied to the

foreshore, as defined by existing law, and to all public land and Government
land formed or reclaimed by the Government by dredging, filling, or
otherwise, unless such land has been used or set aside for other public
purposes; and the foreshore or other land hereby ceded to the grantee shall
be excluded from the effects of Act Numbered Sixteen hundred and fifty-
four of the Philippine Commission: And provided further, That the Governor-
General shall determine the amount of land or the width of the right of way
which the railroad company may acquire under this Act for the right of
way or other uses of the railway, as defined in this paragraph, on the
foreshore or on land reclaimed from the sea and the plans for all structures
to be erected and all lines to be constructed under the provisions of this
paragraph shall be subject to the approval of the Governor-General.”
371
ACT NO. 2389

AN FIFTY- NINE, ENTITLED “AN ACT TO REGULATE MOTOR
VEHICLE TRAFFIC IN THE PHILIPPINE ISLANDS, TO
PROVIDE FOR THE REGISTRATION OF MOTOR VEHICLES
AND THE LICENSING OF OPERATORS, AND TO REQUIRE ALL
VEHICLES ON HIGHWAYS TO CARRY LIGHTS, AND F O R
OTHER PURPOSES,” BY FIXING A MAXIMUM RATE OF
SPEED, AND FOR OTHER PURPOSES

Legislature, that:
SECTION 1. Section five of Act Numbered Twenty-one hundred

and fifty-nine, entitled “An Act to regulate motor vehicle traffic in the
Philippine Island, to provide for the registration of motor vehicles and the
licensing of operators, and to require all vehicles on highways to carry
lights, and for other purposes,” is hereby amended to read as follows:
“SEC. 5. Upon the receipt of such application and fee the Director of
Public Works shall cause the same to be registered or recorded in a book to
be kept by him for that purpose, which shall be known as the ‘Motor Vehicle
Register,’ and in which such information shall be set forth as will enable
the vehicle and the owner thereof to be identified. The Director of Public
Works shall issue to the applicant a numbered certificate of registration (in
duplicate) for each separate vehicle and shall enter the number of such
certificate in the ‘Motor Vehicle Register.’ “
SEC. 2. Section eight of said Act is hereby amended to read as

follows:
“SEC. 8. All number plates shall be such color, size, and design as
may selected and determined by the Director of Public Works and shall
contain in Arabic numerals of a length of not less than one decimetre and
each stroke of which shall be not less than one centimetre in thickness, the
372
number assigned by the Director of Public Works: Provided, That the

Director of Public Works may issue to motor vehicles having three wheels
or less a number plate having Arabic numerals of a length not less than five
centimeters and a thickness not less than one centimetre.”
SEC. 3. Section twelve of said Act is hereby amended to read as

follows:
“SEC. 12. Every dealer in motor vehicles may, instead of registering

separately each such vehicle owned or controlled and used and operated in
his business by him or by his employees or agents, make, before the first
day of January of each year, application for a general certificate of
registration and a general distinguishing number or mark. Such application
shall contain whatever information may be required by the Director of Public
Works. The Director of Public Works, if satisfied with the statements in
such application, may grant to the application one general certificate of
registration (in quadruplicate) showing the name, residence, place of
business, and address of the applicant, and that the same is a dealer in
motor vehicles within the meaning of this Act. Such dealer’s certificate
shall further show the general distinguish number or mark assigned, the
kind, type, style, or make of motor vehicles manufactured, sold or kept, or
handled for sale by him, and such other information as the Director of
Public Works may deem expedient. The general distinguishing number or
mark shall be issued in quadruplicate. All motor vehicles manufactured,
owned, controlled or kept or handled for sale by such applicant shall
thereafter be regarded as registered under such general distinguishing
number or mark, except those for his private use, each of which shall be
separately registered under sections three, four, five, and six of this Act.
The fee for registration of a dealer in motor vehicles shall be twenty pesos.
“Provided, That no dealer shall operate motor vehicles for hire unless
same shall have been registered in accordance with section three and four
of this Act.”
SEC. 4. Section twenty-four of said Act is hereby amended to read

as follows:
373
SEC. 24. No person shall operate a motor vehicle on any highway in

these Islands recklessly or at a rate of speed greater than is reasonable and
proper, having regard to the width, traffic, grades, crossings, curvatures,
and other conditions of the highway and to the conditions of the atmosphere
and weather, or so to endanger the property or the safety or rights of any
person or so as to cause excessive or unreasonable damage to the highway.
If the rate of speed of any motor vehicle operated within any city or the
poblacion limits of any municipality exceeds twenty miles per hour such
rate of speed shall be prima facie evidence that the person operating same
is operating at a rate of speed greater than is reasonable and proper, and in
violation of the provisions of this section. If the rate of speed of a motor
vehicle operated on any public highway of the Philippine Islands, where
the operator’s view of the road and traffic is obstructed, when approaching
a crossing or intersecting public highway or when traversing a bridge, or a
sharp turn, or a steep descent, or a curve in the highway, or when meeting
any other motor vehicle or conveyance moving in an opposite direction,
exceeds fifteen miles an hours, such rate of speed shall be prima facie
evidence that the person operating such motor vehicle is operating the same
at a rate of speed greater than is reasonable and proper, and in violation of
the provisions of this section. If the rate of speed of a motor vehicle operated
upon any highway of the Philippine Islands in passing any street railway
car that is stationary or about to stop, on the same side of the car on which
passengers are ordinarily received and discharged exceeds ten miles an
hour, such rate of speed shall be prima facie evidence that the person
operating such motor vehicle is operating the same at a rate of speed greater
than is reasonable and proper and in violation of the provisions of this
sections.
“No persons shall unreasonably obstruct or impede the passage or

right of travel of any motor vehicle or operator thereof and no operator
shall unreasonably obstruct the passage of any other vehicle or person on
any highway. Every person found guilty of violating the provisions of this
section shall be punished by a fine of not less than five nor more than fifty
pesos or by imprisonment of not more than six months or by both such fine
and imprisonment.”
374
SEC. 5. Section twenty-seven of said Act is hereby amended to read

as follows:
“SEC. 27. Any operator of any motor vehicle which is for let or hire
to the public who drinks any intoxicating beverage while on duty, or operates
a motor vehicles on any public highway within one hour after having
partaken of any intoxicating beverage, and every person operating a motor
vehicle upon a highway while under the influence of liquor shall be punished
by a fine of not less than fifty nor more than two hundred and fifty pesos or
by imprisonment of not less than fifteen days nor more than six months, or
by both such fine and imprisonment.”
SEC. 6. Section thirty-two of said Act is hereby amended to read as

follows
public highway, whether in motion or not, shall bear lamps in front, one on
each side which not later than one-half hour after sunset and until at least
one-half before sunrise, shall be lighted. While the vehicle is in motion,
the lights on a level shall render the person of a man dressed in dark clothing
visible for a distance of not less than one hundred feet ahead and the light
thrown forward or ahead of the motor vehicle shall be white light. Additional
lamps and lights may be carried; but if one additional lamp is carried it
shall be affixed midway between the two hereinbefore required. If two
additional lamps are carried and one of them is lighted the other shall also
be lighted. The lighting of only one of a pair of additional lamps while the
motor vehicle is operated upon a public highway is prohibited.
distinguishing mark issued for each vehicle, which light shall render the
number legible for a distance from which such motor vehicle is proceeding,
and a red light to the rear. The hours herein fixed within which such lamps
shall burn shall not exempt operators from the obligation of lighting such
lamps or causing the same to be lighted at earlier or later hours or times
when, on account of atmospheric or weather conditions or other phenomena,
375
the use of such motor vehicles upon public highways might otherwise be
dangerous or unsafe. Motor vehicles of less than four wheels shall, during
the hours herein fixed, bear in front a lamp throwing a white light ahead.

376
ACT NO. 2485
AN ACT GRANTING SEÑOR VICENTE SOTELO Y MATTI, A NATIVE

AND RESIDENT OF THE CITY OF MANILA, PHILIPPINE
ISLANDS, AND HIS SUCCESSORS, AND ASSIGNS, A
FRANCHISE TO ESTALBISH, CONSTRUCT, EQUIP, MAINTAIN,
AND OPERATE A RAILROAD IN THE SOUTHERN PART OF
THE ISLAND OF NEGROS, PHILIPPINE ISLANDS

Legislature, that:
SECTION 1. A franchise is hereby granted to Señor Vicente Sotelo

y Matti, a native of the city of Manila, Philippine Islands, to construct,
subject to the terms and conditions hereinafter set forth, and to operate and
maintain for a period of ninety-nine years from and after the passage of
this Act, an economic agricultural railroad on the Island of Negros,
Philippine Islands, which, parting from the port of Pulupandan, municipality
of Valladolid, Province of Occidental Negros, and going in a southwesterly
direction, shall pass through La Rama, La Carlota, Zaragoza, La Granja,
Danao and La Castellana, and terminating at Isabela, on Malipay River, as
well as such branches as may, after the completion of this line, be deemed
necessary to develop it.
SEC. 2. The length of this railroad shall be approximately sixty

kilometers.
SEC. 3. The grantee may make in the route described such variations
as a careful investigation of the locality may show to be necessary in order
to avoid inundations and large cuts and fills, diminish curves, reduce grades,
or feed the road.
SEC. 4. The maximum grade of the construction shall be two per

centum and the minimum curve shall have a radius of two hundred meters.
The grade on curves shall be compensated in such manner that the maximum
grade on minimum radius curves shall not exceed one and six-tenths per
centum.
377
SEC. 5. The grantee shall construct and maintain stations at

Pulupandan, La Rama, La Carlota, Zaragoza, La Granja, Danao, La
Castellana, and La Isabela, and freight sheds, locomotive sheds, and water
tanks wherever he may consider such necessary.
SEC. 6. All material used in the construction of the line shall be of

good quality and adapted to the conditions of the country. The rails shall
be steel rails weighing fifteen kilograms per meter, with a resistance of
three thousand five hundred kilos. On each kilometer of track there shall
be used at least twelve hundred ties of native hard wood, one meter and
fifty centimeters long, seven inches wide and five inches thick.
SEC. 7. The railroad shall be single track, of seventy-five to ninety

centimeter gauge, with the necessary sidings to allow the trains passing
each other at each station. The width of the fills and cuts shall be that
required for the development of the track.
SEC. 8. All material used in the construction of buildings shall be of

good class and quality. The roofing shall be of galvanized iron. The bridges
and culverts shall be constructed of native hard wood, which may be replaced
by masonry and steel when the development of the traffic warrants the
expense.
SEC. 9. The grantee shall acquire for the laying of the track a strip
of land approximately thirty meters wide, except in the places where more
space is needed for stations, buildings, fills, cuts, and excavations, quarries,
and all other land necessary for the deviation of watercourses, wagon roads,
drainage of marshy land, dams, and other works necessary for the protection
of the tracks from inundation, and for the construction of yards, shops,
wharves, platforms, warehouses, turntables, switches, or other means
suitable for the operation of the railroad. In case any of the land necessary
for the proper construction of the line can not be obtained by free contract
with its owners, the grantee shall be entitled to expropriation in the form
established by law.
SEC. 10. Before commencing with the construction of each of the

section of the road, the grantee shall file with the Board of Public Utility
378
Commissioners three copies of the plan and cross section thereof of the
project and its construction, accompanied by three copies of the descriptive
report for approval by the Governor-General. Upon approval of the plans,
two of the three copies thereof and of the descriptive report shall be filed in
the proper offices of the Government and the other shall be delivered to the
grantee.
SEC. 11. It shall be the duty of the grantee, in order to prevent

accidents, to place gates in charge of guards at the points where the railroad
crosses much frequented public highways or roads.
SEC. 12. Along the entire right of way the grantee shall establish a
telegraph line for the exclusive use of the railroad. The poles of this line
may also carry such wires as the Government may deem necessary ; but the
maintenance and custody of the latter shall be at the expense of the
Government.
SEC. 13. Before opening all or part of the road to the public for the
transportation of passengers or freight, the grantee shall notify the Board
of Public Utility Commissioners in writing, stating the date on which it is
desired to begin operation. Upon receiving such notice, the Board of Public
Utility Commissioners shall direct an immediate inspection to be made of
all the works on the section, engines, rolling stock to be used, and if it finds
everything in accordance with the law, it shall authorize the opening of the
road or of the part thereof fit for traffic.
and exemptions:
(a) To convey or transfer this privilege to another person, company,

or corporation.
(b) To acquire the right of way through the public lands of the
Philippine Government for the construction, operation, and maintenance
of the railroad herein authorized to the extent of thirty meters in width
for depots, machine shops, station buildings, workshops, water stations,
379
warehouses, terminals, including wharves and dock fronts, switches,

sidetracks, and turntables, and also such extra lands beyond such thirty
meters as may be found necessary for said purposes: Provided, That the
same be approved by the Governor-General, to open and work quarries and
gravel pits upon any public lands and take from such lands earth, stone,
timber, and other materials for the construction of such railway; but the
provisions of this paragraph shall only apply to public lands available for
homestead settlement or for sale under the Public Land Act or to timber
lands of the Philippine Government, and shall not apply to lands used and
assigned for other purposes.
squares, acquire title to such other municipal or provincial lands, as may
be necessary, on terms to be agreed upon by the grantee and the proper
provincial or municipal authorities, as the case may be; and in case of
failure to agree upon the terms thereof, such terms shall be fixed by the
Governor-General.

which they were respectively granted upon the termination of this franchise
(c) To acquire from the provincial or municipal governments,

corporations, or private individuals, by contract or expropriation, the land
necessary for the construction, maintenance, and operation of the railroad;
but the grantee shall not occupy any land within the limits of any province
or municipality, if the same is set aside for another purpose, nor shall he
occupy land within said limits without authorization by the proper
authorities.
(d) To appear in, petition for, initiate, prosecute, and abandon

judicial or extrajudicial proceedings of any kind; to sue; to appoint and
remove freely the employees and agents necessary for the operation,
assigning to them such compensation as he may see fit.
380
(e) To acquire for the railroad by purchase, donation, or any method

permitted by law, the title to or possession of land and other real and personal
property, easements, or other property rights, and acquire, possess, lease,
exchange, mortgage, pledge, sell, or dispose of the same entirely or in part,
in accordance with law.
(f) To construct and alter, substitute, maintain, and operate the road
for which a franchise has been granted ; construct all buildings, stations,
shops, fills, aqueducts, bridges, wharves, roads, thoroughfares, crossings,
ditches, drains, pillars, arches, retaining walls, and fences on land of his
own, and to cross any railroad, tramway, river, canal, creek, lake, shore,
culvert, road, and public thoroughfare, upon obtaining the necessary
authorization therefor from the public or private corporations or persons
whose rights may be affected.
(g) To open quarries, gather stones form the surface of the land,
cut timber, excavate the ground for material, and construct and operate
ovens for lime, gypsum, and bricks on land owned or leased for these
purposes by the grantee.
(h) To conduct water to the railroad, for its use; to acquire the land
and construct the roads necessary to facilitate access to the stations from
the pueblos.
(i) To borrow money and contract the necessary indebtedness for

the construction, completion, maintenance, and operation of the road and
for any other legal purpose ; to issue or negotiate promissory notes, chits,
bonds, or other documents representing value for any sum borrowed or
indebtedness contracted, at a rate of interest of not less than four per centum
nor more than eight, and to guarantee such indebtedness by mortgages,
encumbering property already acquired, or capital actually invested at the
time of contracting the indebtedness with aid securities. Twenty per centum
of such bonds, notes, promissory notes, etc., shall be redeemed annually
ten years after their issue or prior thereto if the grantee deem it advisable.
(j) None of the personal or real property in use and necessary for
the operation of the road shall be burdened with imposts and taxes by the
381
province or municipality from the date of the franchise to that of the

expiration thereof.
(k) All material which it may be found necessary to import from

Europe or America for the construction of the railroad shall be exempt
from the payment of customs duties.
(l) In case of refusal, delay, or failure of the payment of the freight

charges on merchandise, either for the entire distance or part thereof, the
grantee may retain the said merchandise until payment is made. Such
payment shall include all storage charges on merchandise left with the
railroad for over forty-eight hours after arrival at its destination.
(m) To petition the justice of the peace of the district in which

station is located, for the sale at public auction of all articles, freight,
merchandise, or baggage transported by the grantee and not claimed by the
owner or consignee within a period of two months. In the cases hereinbefore
set forth, or when the owner or consignee is not known or refuses to receive
the articles transported, or if he refuses the transportation expenses, the
grantee may petition the justice of the peace for an order for the sale at
public auction of perishable goods. The proceeds of the sale shall be applied
primarily to the payment of the costs and expenses of such sale, and then to
that of the account of the railroad for freight and expenses on said goods,
and the remainder, if any, shall be deposited in the court at the disposal of
the person entitled to claim it. The grantee shall have the right to refuse to
accept perishable goods for transportation unless the freight charges thereon
are paid in advance.
(n) The grantee binds himself to provide on his trains 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. In case of
failure to arrive at an agreement, the Governor-General shall establish the
manner in which said mails shall be carried, after hearing and considering
the arguments of the said Director and grantee. Said mails shall be carried
free of charge: Provided, That in case the Government requires, in addition
to the ordinary mail service, the transportation of urgent mail or orders at
382
other hours or a greater speed than those of the ordinary trains, or the
transportation of troops, ammunition, funds, or freight, the grantee shall
take the necessary steps to comply therewith and shall receive a reasonable
compensation for such service.
SEC. 16. The grantee shall not hinder the crossing of his road by any
other railroad or wagon road authorized by the Government, provided the
same pays the proper indemnity and complies with the railroad police
regulations.
SEC. 17. The legal domicile of the grantee shall be the city of Iloilo,
Philippine Islands ; but if he consider it advisable and necessary, he may
have a representative in Manila, properly authorized and empowered to
deal with the Insular Government with respect of this franchise.
SEC. 18. From and after the date when the railroad is opened to the
public service in its entirety or in part, the grantee shall have the regular
passenger and freight train service keep as closely as possible within
schedule time.
SEC. 19. The grantee shall allow all passengers having first-class
tickets fifty kilograms of baggage free of charge and shall allow thirty
kilograms to passengers having tickets of an inferior class. Baggage shall
be understood to include clothing of current use, bicycles, and such other
articles as a person may need for practicing a profession or trade. Baggage
shall be accepted by the grantee only when contained in receptacles assuring
its safety during the transportation, and the grantee shall not be liable for
more than three hundred pesos for each fifty kilograms of baggage unless
the owner thereof, upon presenting it for transportation, declares its contents
and pays for it a reasonable insurance for the additional liability assumed
by the grantee.
SEC. 20. Each locomotive used in the operation of the road shall be
equipped with a bell and a steam whistle. The bell shall be rung and the
whistle blown at a distance of at least three hundred meters from each
point where the railroad crosses any road and the ringing shall be continued
until the locomotive has crossed such road. Each passenger train shall
383
have adequate and efficient means of establishing immediate communication

with the engineer, to the end that the latter can be advised immediately to
stop the train.
The grantee shall install on all trains and locomotives the necessary
pneumatic air brakes for the protection of lives and property on grade
crossings and other points of danger. The locomotives shall be provided
with the necessary apparatus for preventing the sparks from setting fire to
the property adjacent to the right of way.
SEC. 21. The velocity of the trains upon passing on streets of the
pueblos or public thoroughfares where there are no bars shall not exceed
thirty-two kilometers per hour.
SEC. 22. It shall be the duty of the grantee to issue receipts from a
stub book for merchandise or articles booked, and to label such merchandise
or articles.
SEC. 23. It shall be the duty of the grantee to provide uniforms for
the personnel in his service, issuing to them a special badge without which
they shall not be allowed to perform any official duty or apply for assistance
to the peace officers.
SEC. 24. The grantee may refuse to accept for transportation goods
of a dangerous character or goods the transportation whereof is prohibited
by the Government.
SEC. 25. The grantee shall establish his schedules of passenger and
freight rates and the Board of Public Utility Commissioners shall exercise
control over them in accordance with the provisions of Act Numbered
Twenty-three hundred and seven of the Philippine Legislature and its
amendments. The schedules adopted shall be posted in conspicuous places
at the stations.
SEC. 26. Before the inauguration of the first section of the road
covered by this concession, the grantee shall submit for approval by the
384
Board of Public Utility of Commissioners, the regulations for the operation

of the road, train and station service, accounting, conditions of traffic, care
and maintenance of the tracks and other appurtenances for the government
of his employees. These regulations upon approval by said Board shall
have the force of law; but shall be subject to such amendments as practice
may counsel. The amendments, duly approved by said Board, shall always
have the force of law.
SEC. 27. Within one hundred and twenty days from and after the
acceptance of this Act, hereinafter provided the grantee shall deposit in the
office of the Insular Treasurer at Manila a sum equal to fifty pesos Philippine
currency per kilometer of the concession. This deposit shall be returned in
proportion as the work is completed in sections of not less than twenty
kilometers.
The grantee shall forfeit all or part of said deposit if two years elapse
without the work on the railroad having been begun, or over five after such
work has begun, without its being completed. The forfeiture of this bond
shall not take place if the completion of the work has been hindered totally
or partially by force majeure or fortuitous events.
SEC. 28. The grantee or his successors shall pay into the Insular
Treasury of the Islands, as compensation for the concession of this franchise,
one-half of one per centum of the gross receipts from the passenger and
freight traffic on this railroad. This percentage shall be paid monthly and
shall be in lieu of all privilege, profit, income, and franchise taxes, and the
grantee is hereby declared exempt from all classes of taxes.
SEC. 29. The grantee shall keep a record of all receipts for passenger
and freight of the railroad herein mentioned, which shall be subject to
inspection by the authorities, who shall audit and approve the accounts and
designate the sum due to the Government.
SEC. 30. The concession of this franchise shall be subject in all

respects to the restrictions imposed upon corporations and franchises by
the Act of Congress approved July first, nineteen hundred and two, entitled
385
“An Act temporarily to provide for the administration of the affairs of the
Civil Government in the Philippine Islands, and for other purposes,” and to
the provisions of Act Numbered Twenty-three hundred and seven of the
Philippine Legislature and its amendments, any provision hereof to the
contrary notwithstanding.
SEC. 31. This Act shall take effect on its passage; but the franchise
shall not be effective unless within sixty days after the said passage of the
grantee shall file with the Government his acceptance in due form, binding
himself to comply with all the terms hereof.
386
ACT NO. 2507
AN ACT PROVIDING FOR A BOARD OF MARINE EXAMINERS, FOR

THE EXAMINATION AND LICENSING OF WATCH OFFICERS
AND ENGINEERS ON PHILIPPINE VESSELS IN THE
COASTWISE TRADE AND FOR THE HIGH SEAS, LICENSE
FEES, COMPENSATION, AND PENALTIES, IN CERTAIN
CASES, AND REPEALING CERTAIN ACTS RELATING
THERETO

Legislature, that:
SECTION 1. Board of marine examiners.— There shall be maintained

in the Bureau of Customs a board of marine examiners to consist of five
members, to wit: The Insular Collector of Customs, as ex officio president;
the supervising inspector of hulls and boilers; an assistant inspector of
hulls; a master in the Philippine merchant marine; and a chief engineer.
The three latter members shall be designated by the Secretary of Finance
and Justice, and the Insular Collector of Customs shall detail from the
clerical force of the Bureau of Customs a competent person to serve as
secretary.
Any three members of the board shall constitute a quorum for the
transaction of business.
SEC. 2. Functions of board. – It shall be the duty of this board to

conduct examinations of persons applying for certificate as marines officers
or engineers under the provisions hereof, to certify the successful examinees
in such examinations for certificate as master, mate, or engineer, as the
case may be, and to exercise such other powers as are herein conferred.
SEC. 3. Meetings of board.— The board shall meet at the office of

the Insular Collector of Customs at Manila during the last week of each
month for the examination and certification of such applicants as may have
filed their applications within the preceding month.
387
SEC. 4. Qualifications of applicants.—An applicant for certificate

or license as master, mate, or engineer shall be:
(a) A citizen of the Philippine Islands; or
(b) A citizen of the United States; or
(c) An honorably discharged soldier, sailor, or marine of the United

States.
SEC. 5. Physical examination.— An applicant shall be examined

physically by a competent physician selected by the board and unless found
to be physically sound shall not be entitled to take examination: Provided,
however, That such applicant may request of the Secretary of Finance and
Justice, through the Insular Collector of Customs, a re-examination at the
said applicant’s expense by another physician who shall be appointed by
the Secretary of Finance and Justice.
SEC. 6. Examination into moral and technical qualification of

applicants.— Excepts as otherwise specifically provided, an applicant for
certificate shall be required to undergo a technical examination, such
examination to be restricted only to applicants having served the time
required to obtain the certificate for which they are to examined. To obtain
a certificate, he must show a proficiency in the subjects upon which he is
examined and shall answer correctly at least seventy per cent of the questions
propounded to him. It shall be the duty of the board of marine examiners to
make thorough inquiry into the character of the applicant and to consider
the evidence he presents in support of his application and such other relevant
evidence as the board shall deem proper or desirable. In this connection
the board may consider the statement, written or oral, of any person
cognizant of the qualifications of the applicant and may, in its discretion,
require the production of ships’ journals and log books for inspection.
(a) Watch officers.— The board in examining an applicant for a

certificate as watch officer shall inquire into his knowledge of seamanship
and navigation in its various branches, his capacity and skill in lading and
388
unlading cargo, and in handling and storing freight under all conditions,
and more especially his knowledge of the duties of the particular position
which he seeks to fill and his special qualifications for such position.
(b) Engineer.— The board in examining an applicant for a certificate

as engineer shall inquire into his knowledge of the operation of steam
machinery and especially of engines and boilers, also as to his practical
experience, character and habits, and the board may, in its discretion, make
such practical test and examinations of the applicant as it may deem
necessary to demonstrate his fitness or unfitness for the position which he
seeks.
(c) The holder of a license as master, mate, or engineer under the

laws of the laws of the United States shall be entitled to obtain a license of
the same grade in the Philippine coastwise service without being subject to
these requirements other than the physical examination; but if he desires to
secure the certificate mentioned in section twelve of this Act, he shall be
required to take the necessary examination.
SEC. 7. Requirement as to past service of master and mates.— (a)

Master: An applicant for certificate as master shall be not less than twenty-
five years of age at the time of filling the application, and shall produce to
the board evidence, satisfactory to it, showing that he has served on a
seagoing vessel in the capacity of first mate, with a certificate as such, for
at least one year.
(b) First mate: An applicant for certificate as first mate shall produce
to the board evidence, satisfactory to it, showing that he has served on a
seagoing vessel in the capacity of second mate, with a certificate as such,
for at least one year.
(c) Second mate: An applicant for certificate as second mate shall

produce to the board evidence, satisfactory to it, showing that he has served
on a seagoing vessel in the capacity of third mate, with a certificate as
such, for at least one year. Service as patron on vessels of two hundred tons
389
shall be deemed the equivalent of service as third mate upon application

for examination for a second mate’s certificate.
(d) Third mate: An applicant for a certificate as third mate shall be

not less than nineteen years of age, and shall be required to present to the
board documents properly certified showing that he has served as seaman,
quartermaster or agregado for at least two years in a seagoing sailing vessel
or steamer: Provided, however, That agregados serving as such on
steamships upon the passage of this Act shall be entitled to examination
after eighteen months of navigation: And provided further, That an applicant
producing a certificate of graduation from the Nautical School of Manila,
showing an average of not less than seventy per cent in nautical work, who
has served as seaman, quartermaster or agregado for at least fifteen months
in a seagoing sailing vessel or at least eighteen months in a seagoing steamer,
shall be considered as having furnished sufficient evidence of his technical
knowledge and experience, but not of his physical condition, habits, or
character.
SEC. 8. Requirements as to past service of engineers.—(a) Chief

engineer: An applicant for certificate as chief engineer shall be not less
than twenty-five years of age at the time of filing his application, and shall
be required to produce to the board evidence, satisfactory to it, showing
that he has served on a seagoing steamer in the capacity of second engineer,
with certificate as such, for at least one year.
(b) Second engineer: An applicant for certificate as second engineer

shall be required to produce to the board evidence, satisfactory to it, showing
that he has served on a seagoing steamer in the capacity of third engineer,
with a certificate as such for at least one year.
(c) Third engineer: An applicant for certificate as third engineer shall

be required to produce to the board evidence, satisfactory to it, showing
that he has served on seagoing steamer in the capacity of fourth engineer,
with certificate as such, for at least one year.
(d) Fourth engineer: An applicant for certificate as fourth engineer

shall produce to the board evidence, satisfactory to it, showing that he has
390
served on steam launches or on steam vessels as agregado, oiler, or fireman

at least two years and has been working one year in a machine shop as
operative and he must be at least nineteen years of age.
SEC. 9. Certification of applicant for certificate; issuance of

certificate by Insular Collector of Customs.— If the board of marine
examiners shall find that the capacity, experience, habit of life, and character
of any applicant are such as to warrant the belief that he can be safely
intrusted with the duties and responsibilities of the position for which he
makes application, and that the applicant has in other respects complied
with the requirements hereof, it shall so certify to the Insular Collector of
Customs, who shall thereupon issue the appropriate certificate.
SEC. 10. Certificates for the high seas.— The board of marine
examiners is hereby further authorized to certify for certificate all applicants
for certificate as watch officers and engineers upon seagoing Philippine
vessels, where nautical instruments are used to navigate the vessel on the
high seas.
(a) An applicant for certificate as master, mate or engineer under

this section shall surrender to the board his Philippine coastwise certificate
and evidence satisfactory to it, showing that he has served on the surrendered
certificate for two years or longer on a vessel of six hundred tons gross or
more, for a master or mate, or with an engine of fifty actual horsepower or
more, for an engineer, and such other evidence of competency and good
character as the board in its discretion may require.
(b) Successful applicants shall be issued an ocean going certificate

equivalent to the one surrended entitling them to serve on vessels operating
on the high seas or in the Philippine coastwise trade.
SEC. 11. Recognition of old licenses.— All existing licenses as

master, mate, or engineer in the coastwise trade shall entitle the holder to
navigate on the high seas, and to apply for the proper certificate without
necessity of further requirements , excepts the payment of fees as established
in section sixteen of this Act.
391
Any person holding a license as river and harbour engineer may

request the exchange thereof for a certificate as fourth engineer and shall
be entitled to promotion, upon examination, as in this Act provided, if he is
duly qualified.
Certificates as master and mate on all seas shall authorize the holder to
navigate in the coastwise trade.
The certificate of marine engineer of any class provided in this section

shall authorize the holder thereof to navigate on all seas and in ships of any
tonnage.
The existing patron’s licenses shall continue in force and effect, and
new patron’s licenses may be issued in the same manner as heretofore, and
the holders thereof shall have the same rights and duties as they have at
present.
SEC.12. Issuance of certificates; rights inherent in them.— The

several certificates provided for in this Act shall be issued in the form of
diplomas by the Insular Collector of Customs and shall be signed by him
and countersigned by the Department Secretary and shall entitle the holders
thereof to navigate in accordance with the authorization contained in them;
and shall not be suspended or revoked except upon the filing of charges
and proceedings as provided in section fourteen hereof but none of the
provisions of this section shall be construed as preventing an annual physical
examination of the holders of such certificates, and any person whom such
examination shows to be unfit to continue navigating, shall be disqualified
from doing so. Any person so disqualified may, within fifteen days after
notification thereof, appeal to the Secretary of Finance and Justice, subject
to the provisions of section five hereof
SEC.13. Reinstatements.— Any citizen of the United States or of

the Philippine Islands who has held the office of captain, mate, master, or
engineer and whose license or certificate has been revoked on account of
physical defects shall be entitled to reinstatement without further
examination upon the favourable certificate of the physician designated in
section five of this Act.
392
SEC.14. Suspension or revocation of licenses or certificates;

procedure.— All charges against the holders of licenses or certificates shall
be filed with the Insular Collector of Customs who, by the board of marine
examiners, shall investigate and decide the complaint, giving the party an
opportunity to be heard in his defense, and the decision of the Insular
Collector of Customs by which he may suspend or cancel any officer’s
license on account of misconduct in temperate habits, incapacity or
inattention to duty on the part of the licensee or holder of a certificate shall
be subject to appeal to the Secretary of Finance and Justice: Provided,
That the license or certificate shall not be cancelled by the Insular Collector
of Customs until a decision unfavorable to the licensee shall have rendered
by the Secretary of Finance and Justice.
SEC. 15. Licenses to foreigners ; their duration.— All licenses issued

to foreigners under section seven of Act Numbered Seven hundred and
eighty are hereby confirmed and ratified: Provided, however, That said
licenses shall be valid only until six months from and after the enactment
of a Philippine citizenship law.
SEC. 16. Fees for licenses and certificates.— Any person desiring a
certificate or license as master, mate, or engineer shall pay:
(a) For each certificate or license as master or chief engineer—

1. Coastwise, thirty pesos.
2. Ocean going, fifty pesos.
(b) For each certificate or license as mate or engineer—

1. Coastwise, twenty pesos.
2. Ocean going, thirty pesos.
SEC. 17. Compensation of members of the board of marine

examiners.— Members of the board of marine examiners who are not in
the service of the United States or the Government of the Philippine Islands
shall be paid diem of ten pesos during the period of time required in the
examination of applicants or in the transaction of any other business
intrusted to them by this Act.
393
SEC. 18. Limiting number of foreign officers and engineers on board

vessels; penalty.— Every Philippine vessel operating in the coastwise trade
or on the high seas shall not be permitted to have on board more than one
master or one mate and one engineer who are not citizens of the United
States or of the Philippine Islands, but who obtained licenses under section
fifteen hereof. Any such vessel which fails to comply with the terms of this
section shall be required to pay an additional tonnage tax of fifty centavos
per net ton per month during the continuance of said failure.
SEC. 19. Number and class of marine officers on board vessels;

penalty.— The Insular Collector of Customs, with the prior approval of
the Secretary of Finance and Justice, shall prescribe the number and class
of marine officers to be carried on Philippine vessels, and in case any such
vessels shall navigate without its full complement of duly licensed or
certified officers, the same not being due to a cause beyond the control of
the master, agents, or owners, such vessel may be fined not more than one
hundred pesos for each offense, but shall not be so fined for such offense
oftener than once in thirty days.
SEC. 20. Repealing provisions.— Acts Numbered Seven hundred

and eighty, except the part concerning patrons, Ten hundred and twenty-
five, Thirteen hundred and seventeen, Fifteen hundred and twenty-two,
Sixteen hundred and two, Sixteen hundred and ten, and all other Acts or
parts of Acts inconsistent with the provisions of this Act, though not
specifically mentioned herein, are hereby repealed.
394
ACT NO. 2570
AN ACT PROVIDING FOR THE COLLECTION OF TONNAGE DUES

ON VESSELS COMING FROM OR GOING TO FOREIGN PORTS

Legislature, that:
SECTION 1. At all ports and places in the Philippine Islands there

shall be collected from any vessel coming from or going to a port or place
outside of the territory of the Philippine Islands, irrespective of nationality,
in accordance with regulations to be issued by the Insular Collector of
Customs, with the approval of the Secretary of Finance and Justice, twelve
and one-half centavos per net ton as expressed in her certificate of registry,
or thirty-five centavos per thousand kilograms of merchandise discharged
or laden, in Philippine ports, at the option of the master or consignee of the
vessel.
SEC. 2. The following shall be exempted from the payment of the

dues herein established:
(a) Vessels not discharging or lading cargo and discharging and

lading only passengers and their baggage;
(b) Vessels belonging to the Government of the United States and

to foreign governments, or chartered by the same, if not engaged in trade;
(c) Vessels in distress; and
(d) Yachts of the United States, the Philippine Islands, or any foreign
nation which imposes no tonnage or equivalent taxes on United States and
Philippine yachts.
sixteen.
395
ACT NO. 2574
AN ACT AUTHORIZING THE GOVERNOR GENERAL TO EXECUTE

ACERTAIN MEMORANDUM OF AGREEMENT WITH THE
MANILA RAILROAD COMPANY (1906) AND THE MANILA
RAILWAY COMPANY (1906), LIMITED, MAKING
APPROPRIATIONS FOR THE PURPOSE OF CARRYING OUT
SAID MEMORANDUM OF AGREEMENT, AND FOR OTHER
PURPOSES

Legislature, that:
SECTION 1. The Governor-General, on behalf of the Legislature of

the Philippine Islands, is hereby authorized to execute the following
memorandum of agreement with the Manila Railroad Company, a
corporation duly organized and existing under and by virtue of the laws of
the State of New Jersey, and the Manila Railway Company (1906), Limited,
a company incorporated under the English Companies’ Acts as a company
limited by shares, to wit:
“MEMORANDUM OF AGREEMENT between the Manila Railroad

Company, a corporation organized under the laws of the State of New Jersey
and duly authorized to do business in the Philippine Islands (herein referred
to as the ‘Railroad Company’), the Manila Railway Company (1906),
Limited, a company incorporated under the English Companies’ Acts as a
company limited by shares to wit:
“MEMORANDUM OF AGREEMENT between the Manila Railroad

Company, a corporation organized under the laws of the State of New Jersey
and duly authorized to do business in the Philippine Islands (herein referred
to as the ‘Railroad Company’), the Manila Railway Company (1906),
Limited, a company incorporated under the English Companies’ Acts as a
company limited by shares and also duly authorized to do business within
the Philippine Islands (herein referred to as the ‘Construction Company’),
and the Government of the Philippine Islands (herein referred to as the
‘Government’).
396
“WITNESSETH, THAT
“Whereas under the provisions of Act Numbered Nineteen hundred

and five of the Philippine Legislature and a contract in accordance therewith
executed between the Government and the Railroad Company, the
Government has guaranteed until maturity the due and punctual payment
by the Railroad Company of interest at the rate of four per centum per
annum upon first lien bonds with respect to the lines of railway therein
designated as the southern lines issued in the amounts and for the purposes
specified in paragraph four of said contract; and
“Whereas the Government, by reason of said contract of guaranty

and under the provisions of law whereby such guaranty is authorized, is
compelled through various agencies created for that purpose to inspect and
supervise the construction and operation of the lines designated in said Act
Numbered Nineteen hundred and five as the southern lines of the Railroad
Company in order to protect itself under said contract of guaranty; and
“Whereas the Railroad Company, on the twenty-eight of January,

nineteen hundred and ten, entered into a contract with the Construction
Company whereby among other things it was agreed that the latter company
should construct and equip all such portions of the northern lines and
southern lines of the Railroad Company as said lines are designated in said
Act Numbered Nineteen hundred and five, including telegraph, telephone
and electrical transmission lines thereupon as then remained to be
constructed and receive in payment therefor securities of the Railroad
Company as therein specified; and
“Whereas under and by virtue of the provisions of Acts Numbered

Two thousand and eighty-three and Twenty-four hundred and sixty-five of
the Philippine Legislature and Two thousand and eighty-eight of the
Philippine Commission the Government has loaned to the Railroad
Company from the so-called gold standard fund the sum of five million six
hundred and thirty-seven thousand pesos in order to assist the Railroad
Company in the construction and equipment of said southern lines; and
397
“Whereas the Railroad Company has reloaned to the Construction

Company the moneys loaned to it by the Government from the gold standard
fund, as hereinbefore recited, in order to assist the Construction Company
to carry out its said contract of the twenty-eight of January, nineteen hundred
and ten, said loans by the Railroad Company to the Construction Company
being on the terms and conditions set forth in a contract dated January
fourteenth, nineteen hundred and thirteen; and
“Whereas the Construction Company has purchased construction

stores and materials and has performed construction work under the said
contract of January twenty-eight, nineteen hundred and ten, in an amount
in excess of its indebtedness to the Railroad Company by reason of said
loans and all other loans made by the Railroad Company to it; and
“Whereas the outstanding stock of the Railroad Company consists

of common stock of a par value of two million one hundred and thirty
thousand and seven hundred dollars and seven per cent cumulative preferred
stock of a par value of three million six hundred and fifty-two thousand
eight hundred dollars, all of which is owned by the Construction Company;
and
“Whereas the funded indebtedness of the Railroad Company consists

of four million three hundred and thirty thousand dollars northern lines
first mortgage six per cent gold bonds, seven million seven hundred and
sixteen thousand dollars northern lines second mortgage seven per cent
gold bonds, all which are owned by the Construction Company, and ten
million five hundred and seventy-five thousand dollars southern lines first
mortgage four per cent gold bonds, many which are also owned by the said
Construction Company; and
“Whereas all the outstanding stock of the Railroad Company and all
its northern lines bonds have been pledged by the Construction Company
with the Merchants Trust Limited of London as security for certain a and b
debenture bonds of the Construction Company; and
398
“Whereas by reason of the European wars the Construction Company

is unable to proceed further with its contract of January twenty-eight,
nineteen hundred and ten, in the construction and equipment of such portions
of the northern and southern lines of the Railroad Company as remain to be
constructed and equipped; and
“Whereas it is the desire of all parties hereto that the accounts between
the Railroad Company and the Construction Company be liquidated, and
that the Government, through the acquisition of all the outstanding stock
of the Railroad Company, acquire the management and control thereof,
and that the payment of the southern lines four per cent bonds of the Railroad
Company be more fully ensured by the establishment and maintenance of a
sinking fund sufficient to pay off said bonds at their maturity all in the
manner and upon the terms and conditions outlined in this agreement; and
“Whereas it is the desire of the Government upon acquiring the stock

of the Railroad Company to make substantial changes in the management
and operation thereof in order to effect certain proposed economies therein,
and the Railroad Company and the Construction Company concede to the
Government the right so to do; and
“Whereas there are no contracts of employment between the Railroad

Company and its officers, general manager, or counsel which cannot be
cancelled forthwith, but there are certain written contracts of employment
between the Railroad Company and certain of its employees in usual and
customary forms, a specimen copy of which has been exhibited to all the
parties hereto, and others of said employees are now serving or continuing
to serve without the formal execution or renewal of such written contracts,
to each of which contracts reference is hereby made for the exact terms
and conditions therein contained and the rights of the parties thereunder;
and
“Whereas the negotiations between the parties hereto have resulted

in the agreement herein outlined, which His Excellency, the Governor-
General, has accepted subject to the approval of the Legislature of the
Philippine Islands, and which Mr. Horace L. Higgins, as president of the
399
Railroad Company and as attorney-in-fact of the Construction Company,

has been duly authorized, by cables recently transmitted and exhibited to
the Governor-General, to execute on behalf of the Railroad Company and
the Construction Company, respectively, but which agreement is to be
subject also to the approval and consent of the Merchants Trust Limited,
trustees for the holders of said a and b debenture bonds of the Construction
Company, and of the shareholders of the Construction Company should
their consent and approval be necessary or advisable:
“Now, therefore, in consideration of the premises, and of the mutual

promises herein contained, and of the benefits to accrue to each of the
parties hereto, and of other valuable considerations the receipt whereof by
each is hereby acknowledge, the parties hereto hereby respectively agree:
“One, The maturity of the southern lines four per cent bonds shall be
extended for twenty years, that is to say to May first, nineteen hundred and
fifty-nine, as to those holders of said bonds consenting thereto, provided
that the consent of Congress to such extension and to the extension for a
like term of the guaranty by the Government of the interest on said bonds
can be secured, in which event the Construction Company will consent to
such extension as to all bonds then held by it.
“Two, The Railroad Company will establish a sinking fund from funds
available for such purpose, if any, to be deposited with the Insular Treasurer
in annual instalments payable on May first, nineteen hundred and seventeen,
and thereafter on May first of each succeeding year. Unless and until the
parties hereto agree upon a graduated scale of payments, the first three of
said annual instalments shall be five hundred thousand pesos each, and
thereafter said annual instalments shall be sufficient to enable the Railroad
Company to pay off upon their maturity in nineteen hundred and thirty-
nine all the southern lines four per cent bonds issued and to be issued,
provided that if the consent of Congress to the extension of the maturity of
said bonds and of the Government’s guaranty of interest, as foresaid, has
been or shall at any time be secured then the amount of said annual
instalments shall be sufficient to pay off upon their maturity in nineteen
hundred and fifty-nine those lines four per cent bonds, the holder of which
400
consent to such extension, and only such consenting bondholders shall

thereafter participate in any of the benefits of said sinking fund.
“Three. All holders of said bonds shall be given an opportunity to

signify their consent to such extension and to participate in the benefits of
the sinking fund. Such holders as desire to consent to said extension shall
surrender their bonds to the Railroad Company for the endorsement thereon
of such extension so as to bind subsequent holders. In case any such
bondholders shall withhold their consent, the Railroad Company and the
Government jointly and severally bind themselves to preserve the lien of
the mortgage and protect the security of the consenting bondholders, not
withstanding that the bonds of such non-consenting bondholders may
become due and payable on the first day of May, nineteen hundred and
thirty-nine; and if the Railroad Company or the Government should fail
adequately so to do, any of the consenting bondholders may themselves
take such steps as may be necessary to project their interests. Any expense
on the part of the consenting bondholders in so doing shall be a charge on
the property of the Railroad Company of equal priority with said bonds,
and said sinking fund shall thereupon be increased by annual payments
sufficient to pay off such expense and interest thereon at maturity of said
bonds on May first, nineteen hundred and fifty-nine.
“Four. The Government, by a continuing annual appropriation or in

such other lawful manner as may hereafter be agreed upon, will loan to the
Railroad Company an amount sufficient to maintain the sinking fund at the
required figure. All loans so made by the Government shall bear interest at
the rate four per cent per annum and shall constitute a lien on the property
of the Railroad Company subject only to liens or mortgages existing on
said property at the time such loans are made.
“Five. Such portion of said sinking fund as shall have been deposited
by the Railroad Company shall be invested only in the purchase of said
southern lines four per cent bonds at the market value on the date of
purchase, but at a price not above their par value, provided that funds loaned
by the Government to the Railroad Company for the purpose of maintaining
401
said sinking fund may be invested for the benefit of said sinking fund, in
the discretion of the Governor-General. All bonds purchased by said fund
shall be forthwith canceled.
“Six. Upon the maturity of the four per cent bonds for which a sinking
fund is created the fund shall be applied in paying off such of the bonds as
have not been purchased and canceled. All loans made by the Government
for the purpose of maintaining said sinking fund and the interest thereon
shall thereupon become immediately due and payable and the lien of the
Government securing the same shall become immediately enforceable.
“Seven. The Government shall purchase all the capital stock of the
Railroad Company now outstanding for the sum of eight million pesos,
Philippine currency, in cash payable fifty-one per cent upon the date of the
sale, and the balance within eighteen months thereafter with interest thereon
at five per cent per annum said balance to be evidenced by paper, which
can be discounted with banks and shall be issued by such parties as may
hereafter be lawfully agreed upon.
“Eight. The Construction Company will transfer said stock to the

Government in proper proportion of preferred and common shares as and
when the payment therefor is received.
“Nine. The net amount due to the Construction Company from the
Railroad Company on September thirtieth, nineteen hundred and fifteen,
as appears from the books of the two companies is acknowledged to be
approximately nine million seven hundred and thirty thousand six hundred
and fifty pesos, exclusive of moneys advanced and liabilities incurred by
the Construction Company for the stores and materials, shipped and
unshipped and not yet received, for and on account of the Railroad Company,
which, when properly verified, shall be added thereto, said amount being
also subject to the adjustment of exchange, interest and other items which
ordinarily are adjusted at periodic or irregular intervals and which
consequently have not yet been entered in the books of the respective
companies.
402
“It is agreed that all accounts between the Railroad Company and
the Construction Company shall be adjusted as of the thirty-first of
December, nineteen hundred and fifteen, and entered in the books of the
respective companies, that the books of the Railroad Company shall be
closed as of said date, that proper trial balances and balance sheets shall be
prepared showing the status of the accounts between the Railroad Company
and the Construction Company, a certified copy of which shall be furnished
to each of the parties hereto, and that the net amount then due to the
Construction Company from the Railroad Company, including said expenses
and liabilities incurred by the Construction Company for said stores and
materials, shall be definitely ascertained. All said accounts and the
adjustment thereof and the net amount due to the Construction Company
ascertained therefrom shall be examined, checked and certified by auditors
of the Government and of the Railroad and Construction Companies. All
disputes regarding these accounts and any additions to be made thereto
under this agreement shall be settled by arbitration in the usual manner.
“The net balance due to the Construction Company on December

thirty-first, nineteen hundred and fifteen, as thus ascertained, shall be
accepted by the parties as correct, provided that an inventory shall be made
of ten per cent of those certain construction stores and materials in stock,
not issued up to the date of the sale for construction purposes, which
constitute part of said indebtedness of the Railroad Company to the
Construction Company, to ascertain if said stores and materials are actually
on hand on December thirty-first, nineteen hundred and fifteen; if said
inventory shows that the stores and materials actually on hand do not vary
in overage or shortage by more than ten per cent from the amounts thereof
which should be on hand, as shown by the books, then the book figures of
such indebtedness shall be accepted, but if such variation indicated by said
inventory be greater than ten per cent then a complete inventory shall be
taken of all such construction stores and materials, and said net balance
shall be increased or diminished as said complete inventory may disclose
an overage or shortage in the total amount of said construction stores and
materials.
403
“Subject to such changes as may occur in the usual course of business

between December thirty-first, nineteen hundred and fifteen, and the date
of the sale, the said net balance due to the Construction Company shall,
without deduction, be paid in the manner hereinafter set forth.
“Ten. The two agreements between the Railroad Company and the
Construction Company one dated the first day of January, nineteen hundred
and ten, and the further agreement supplementing the same dated the
fourteenth day of January, nineteen hundred and thirteen, shall be terminated
and cancelled as of the date of the sale.
“Eleven. The Railroad Company shall refund at par and cancel all its
outstanding four million three hundred and thirty thousand dollars first
mortgage six per cent bonds and seven million seven hundred and sixteen
thousand dollars second mortgage seven per cent bonds and issue in lieu
thereof new bonds maturing at the expiration of forty years from the date
of the sale and bearing interest at five per cent annum, which shall be
secured by a first mortgage on the northern lines and by a mortgage on the
southern lines subject only to said southern lines four per cent mortgage
and the lien of the Government for the payment of interest guaranteed
thereunder; provided that said five per cent bonds may be divided into
classes having different priorities or may be divided into two issues secured
by first and second mortgages, or may be issued under the existing first
and second mortgages, modified accordingly, as the Construction Company
may elect. The Construction Company shall surrender for cancellation all
said first mortgage six per cent and second mortgage seven per cent bonds
and shall accept, in exchange therefor, said new five per cent bonds of an
equal par value. The issue of new five per cent bonds shall not exceed in
the aggregate the principal amount of thirteen million two hundred and
thirty-six thousand dollars
“Twelve. The net balance due to the Construction Company on the

date of the sale, ascertained as above provided, shall be paid by bonds of
the Railroad Company of an equal par value as follows: one million one
hundred and ninety thousand dollars by said new five per cent bonds and
404
one million seven hundred and forty thousand dollars by southern lines
four per cent bonds, all (including six hundred and ninety thousand dollars
of said southern lines four per cent bonds now held by the Government as
security for certain loans heretofore made by the Government to the Railroad
Company) to be issued and certified and delivered to the Construction
Company upon the date of the sale, the remainder by southern lines four
per cent bonds as and when first issued. The Construction Company agrees
to accept said bonds in lieu of the stock and bonds which it is or would be
entitled to receive under said agreements of January first, nineteen hundred
and seven, and January twenty-eighth, nineteen hundred and ten. Interest
up to the date of the sale due the Construction Company as holder of the
first mortgage six per cent bonds and second mortgage seven per cent bonds
of the Railroad Company, although included in the net balance, shall,
however, be paid in cash.
“Thirteen. Until fully paid the net balance due the Construction
Company shall be evidenced by notes of the Railroad Company bearing
interest at four per cent which, principal and interest shall be paid off and
cancelled by the delivery to the Construction Company of an equal par
value of southern lines four per cent bonds as and when first issued. All of
such bonds hereafter issued by the Railroad Company shall be delivered to
the Construction Company until said balance and notes are paid off,
notwithstanding the right of the Government under certain existing contracts
between it and the Railroad Company to hold said bonds as additional
security for loans to the Railroad Company.
“Fourteen. The Construction Company shall upon the date of the

sale be released from all liability to the Railroad Company or to the
Government except as herein otherwise provided and particularly from all
claims or liabilities based on or arising out of said agreements and
supplementary agreement dated respectively January first, nineteen hundred
and seven, January twenty-eighth, nineteen hundred and ten, and January
fourteenth, nineteen hundred and thirteen.
“Fifteen. The Government agrees to waive any defaults existing on

the date of the sale on the part of the Railroad Company in complying with
405
any of the conditions on requirements of the various concessions granted

to it by the Government, and the Government agrees that thereafter it will
take no steps to forfeit any concession or franchise because of any default
thereunder on the part of the Railroad Company.
“All bonds heretofore executed as a guaranty for the performance of

the obligations of the concessions shall be cancelled and returned.
“Sixteen. The Government and the Railroad Company shall be

released from all claims on the part of the Construction Company except
those hereby continued or created, and excepting, always, the obligations
set forth in the various bonds and mortgages, it being expressly understood
and agreed that the Construction Company does not waive any rights which
it may have as holder of any of the bonds of the Railroad Company.
“Seventeen. Immediately upon acquiring a majority of the stock of

the Railroad Company the Government, as majority stockholder, shall have
the right to change the personnel of the board of directors and to nominate
new directors and officers of the Railroad Company including its general
manager, and counsel, and the Construction Company, as present majority
stockholder agrees to procure the resignation of said officials if requested
by the Government so to do, and will undertake to hold the Railroad
Company harmless from any such change, provided that so long as the
Construction Company shall continue to hold any of the stock of the Railroad
Company it shall be entitled to have a substantial minority representation
on the board of directors and executive committee, if any, of the Railroad
Company.
“In order more fully to ensure to the Government the foregoing rights,
the Railroad Company and the Construction Company jointly and severally
represent that there are no existing contracts of employment between the
Railroad Company and its officers, agents or employees, other than those
hereinbefore referred to, which will hinder or prevent the Government from
effecting such changes in management or operation as it may desire, but
nothing herein contained shall affect any of the said contracts of employment
between the Railroad Company and its employees it being the intention of
406
the parties hereto that the Railroad Company shall continue to have the
same discretionary rights with respect thereto under the new management
as it now has.
“The Construction Company will consent to the transfer of the

principal office of the Railroad Company to Manila in any lawful manner
which the Government may elect.
“Eighteen. The Government agrees that the time for completing the
construction of the lines of railway of the Railroad Company shall be
extended for such time as may be prudently necessary and the time for
payment of the loans made by the Government to the Railroad Company
from the gold standard fund of the Philippine Islands shall be extended for
as long a time as the Governor General may lawfully extend the same, and
in case legislative permission can be secured the time for the payment of
said loans shall be further extended for such time as may be prudently
necessary.
“Nineteen. The points here outlined shall be embodied in an agreement

of sale the execution of which shall be dependent upon legislative action
necessary or proper to enable the Government and the Railroad Company
to carry out the agreement, and it is understood that the agreement herein
set forth shall be subject to the assent of the Trustees of the a and b debenture
bonds of the Construction Company, and of its share-holders should their
consent be necessary or advisable. In said agreement of sale the parties
shall fix a date when the accounts between the Railroad Company and the
Construction Company shall be finally liquidated, when all payments and
transfer provided for shall be made, and which shall be considered as the
date of the sale for the purposes of this agreement.
“Twenty. The parties will execute such further instruments as may

be necessary to carry out this agreement.
“In witness whereof, this memorandum of agreement is executed in

triplicate on this eighteenth day of December, nineteen hundred and fifteen,
witness the hand of Francis Burton Harrison, Governor-General, and the
407
great seal of the Government of the Philippine Islands, and that of Horace
L. Higgins, president of the Manila Railroad Company, with the corporate
seal of the latter, and attorney-in-fact of the Manila Railway Company
(1906) Limited, thereunto duly authorized.
“THE GOVERNMENT OF THE PHILIPPINE ISLANDS,
“BY FRANCIS BURTON HARRISON,

“Governor-General of the Philippine Islands.
“Attest: S. FERGUSON,
“Acting Executive Secretary.
“MANILA RAILROAD COMPANY,
“BY HORACE L. HIGGINS

“As its president.
“Attest: P. A. ALEXANDER,
“Assistant secretary.
“MANILA RAILWAY COMPANY (1906), LTD.,
“BY HORACE L. HIGGINS,

“ As its attorney-in-fact.
“Witness: P. A. Alexander.
“PHILIPPINE ISLANDS,
“City of Manila, ss:
“In the city of Manila, Philippine Islands, on the 18th day of December,
1915, personally appeared before me Francis Burton Harrison, Governor-
General of the Philippine Islands, and Horace L. Higgins, to me known to
be the persons who executed the foregoing instrument, and acknowledged
that they executed the same in their respective official capacities. The cedula
certificates of the parties were exhibited to me being numbered respectively
408
F-1 and F-1797660, issued at Manila and Caloocan, and dated January 2,
1915, and February 1, 1915, respectively.
“M. DE YRIARTE,
“Ex officio notary public.
“(Register No. 48, page 57.)
“I, Samuel Ferguson, Acting Executive Secretary for the Philippine

Islands, do hereby certify that M. De Yriarte, who took the annexed
acknowledgement, was at the time of taking the same a duly qualified notary
public in and for the city of Manila, P. I., and authorized to take the same,
that the same is executed in accordance with the laws of the Philippine
Islands; that I am acquainted with the signature and seal of said notary, and
that the signature and seal affixed to the said acknowledgement are his
genuine signature and seal.
“In witness whereof, I have hereunto set my hand and caused the
great seal of the Government of the Philippine Islands to be affixed at
Manila, Philippine Islands, this eighteenth day of December, 1915.
“S. FERGUSON,
“Acting Executive Secretary
of the Philippine Islands.”
Provided, however, That the Government of the Philippine Islands in

ratifying and confirming said memorandum of agreement assumes no
obligation either to pay in cash the interest balance due from the Manila
Railroad Company to the Manila Railway Company (1906) Limited in
accordance with the last sentence of the twelfth paragraph of said
memorandum of agreement, or to lend to the Manila Railroad Company an
amount sufficient to enable that company to make said payment in cash.
SEC. 2. The Governor-General or his representative thereunto by

him duly authorized is hereby empowered to execute such other and further
contracts or agreements as may be necessary or convenient in order to
carry into effect said memorandum of agreement set forth in section one
hereof.
409
SEC. 3. Upon the acquisition by the Government of the Philippines

Islands of any or all of the stock of the Manila Railroad Company in
accordance with said memorandum of agreement, the Governor-General
or his duly authorized representative shall have the power to vote said stock
at all stockholders’ meetings of said The Manila Railroad Company for
and in behalf of the Government of the Philippine Islands.
SEC. 4. After the acquisition of any or all of the stock of the Manila
Railroad Company in accordance with said memorandum of agreement,
the Governor-General shall annually, and at such other periods as may be
provided either by law or by his order require full and complete reports of
finances and operation to be made to him by those persons charged with
the operation of the Manila Railroad Company, including an itemized
account of all moneys received and expended, which said reports shall be,
by the Governor-General, transmitted to the Legislature.
SEC. 5. For the purpose of carrying out the provisions of said

memorandum of agreement, the Insular Treasure, with the authorization of
the Governor-General, is hereby authorized, within the limit of the eighty
per cent already authorized for investment from the gold standard fund as
at present constituted by Act Numbered Two thousand eighty-three, as
amended, to invest from the said fund four million and eighty thousand
pesos for the purpose of purchasing fifty-one per cent of the outstanding
stock of the Manila Railroad Company, in accordance with the paragraph
seven of said memorandum of agreement set forth in section one hereof:
Provided, however, That the repayment of the sum so invested from the
gold standard fund as herein contemplated shall be guaranteed by all the
resources of the Philippine Government and shall be repaid to the gold
standard fund from the proceeds of such bond issues therefor as may be
authorized by the Congress of the United States and the Philippine
Legislature: And provided, further, That in event that within two years funds
shall not be available by reason of the bond issue authorized by the Congress
of the United States and the Philippine Legislature, as in the next preceding
proviso contemplated, the gold standard fund shall be reimbursed for the
entire investment herein authorized from any funds available in the Insular
410
Treasury, and the transaction herein authorized from the proceeds of the
gold standard fund shall be considered as temporary in nature.
SEC. 6. The Insular Treasurer, with the approval of the Governor-

General, is further hereby authorized to lend to the Manila Railroad
Company from time to time out of the public works bonds sinking fund,
friar lands bonds sinking fund, and the insurance fund, such sums as may
be necessary in order to enable the said The Manila Railroad Company to
comply with the provisions of paragraph second of said memorandum of
agreement, said loans to bear interest at the rate of four per cent per annum
and to constitute a lien on the property of the said The Manila Railroad
Company, subject only to such liens or mortgages as exist on said property
at the time such loans are made, all in accordance with paragraph four of
said memorandum of agreement:
SEC. 7. The Governor-General is hereby authorized to extend the

period of guarantee by the Government of the Philippines Islands of the
interest on bonds issued in accordance with the provisions of the Act
Numbered Nineteen hundred and five of the Philippine Legislature for the
construction of the southern lines of the Manila Railroad Company to May
first, nineteen hundred and fifty-nine, provided Congressional authority
for said extension can be secured.
SEC. 8. After the payment by the Government of all common and

preferred stock, amounting to eight million pesos, according to the
memorandum of agreement, the Governor-General shall submit the draft
of an Act for the administration of the railroad to the Philippine Legislature,
which latter shall determine such form of administration of said railroad as
may be the most advisable, in the public interest.
411
ACT NO. 2587

AND FIFTY- NINE, AS AMENDED, ENTITLED “AN ACT TO
REGULATE MOTOR VEHICLE TRAFFIC IN THE
LIGHTS, AND FOR OTHER PURPOSES,” BY FIXING AN
ANNUAL REGISTRATION, AND FOR OTHER PURPOSES

Legislature, that:
SECTION 1. Section three of Act Numbered twenty-one hundred

Philippine Islands, to provide for the registration of motor vehicles and the
licensing of operators, and to require all vehicles on highways to carry
lights, and for other purposes,” as amended by Act Numbered Twenty-Two
hundred and fifty-six, is hereby amended to read as follows:
“SEC. 3. Every person who owns or possesses a motor vehicle shall

within thirty days from the time of acquiring said vehicle and thereafter
not later than the thirty-first day of January of each year file in the office of
the Director of Public Works or in the office of the district engineer for
each motor vehicle owned or possessed by him a statement of his name;
place of residence and address; the number and date of his cedula and the
place where same was issued; a brief description of each such motor vehicle
including the name, style or type and seating or carrying capacity thereof;
the name or title of the makers, the number, if any, stamped upon or affixed
by the makers to the same; the number of wheels; the character of the
motive power; and the amount thereof stated in figures of horsepower,
such horsepower in case of internal combustion engines to be determined
by the formula D2 N , D being the diameter of the cylinder in inches and
2.5 N the number of cylinders, and in the case of steam and electric motor
vehicles the amount of such horsepower to be taken as rated and advertised
412
by the maker thereof; the weight of the motor vehicle; the name of the
person from whom the machine was acquired; and such other information
as the Director of Public Works may require. Such statement shall be
regarded as an application for the official registration of such motor vehicle.
Every application for a motor vehicle, or motor truck, used for carrying or
hauling freight, merchandise or agricultural produce shall state the weight
of the vehicle unloaded, and loaded, the diameter of the wheels, and the
width and material of the tires.
“Every person acquiring a motor vehicle not registered under the

provision of this Act after the same is effective shall file a like statement
within thirty-six hours after he has taken possession of such motor vehicle,
and shall thereafter file a like statement not later than the thirty-first day of
January of each succeeding year.
“Any re-registration of motor vehicles not renewed on or before the

thirty-first day of January of each year shall become delinquent. The penalty
for renewal of a delinquent registration shall be fifteen pesos.

shall be punished by a fine of not less than twenty-five nor more than two
hundred pesos.”
SEC. 2. Section four of said Act is hereby amended to read as follows:
“SEC. 4. Each such application, if for one calendar year, shall be

accompanied by a registration fee in accordance with the following tariff:
“All motor vehicles, except motorcycles and motor trucks, the sum
of twenty centavos per horsepower.
“Motor trucks, including trailers, carrying passengers, merchandise

or freight, the sum of fifty pesos for the first one thousand kilos or fractional
part thereof of carrying capacity as determined by the Director of Public
Works and four pesos for each additional five hundred kilos, or fraction
thereof over two hundred kilos.
413
“Motor vehicles operated for hire, except motor trucks and

motorcycles, thirty pesos in addition to the fee per horsepower.
“Motorcycles of two or three wheels, five pesos each.
“If an application for the registration is made during the period of

January first to March thirty-first, inclusive, the annual fee mentioned above
in this section shall be paid. If the application is made during the period
April first to June thirtieth, inclusive, three-fourths of the annual fee shall
be paid. If the application is made during the period July first to September
thirtieth, inclusive, one-half of the annual fee shall be paid. If the registration
is made during the period October first to December thirty-first, inclusive,
one fourth of the annual fee shall be paid.
“The postal date of envelopes containing money orders, checks or

cash shall be considered as the date of application in the appliance of the
above tariff, except in case of improperly prepared applications when the
postal date of the envelope containing the properly prepared application
shall be considered as the date of application.
“Tourists sojourning in the Philippine Islands for a period of two

months or less shall be exempt from the payment of the above stated fees
of this section, but if they remain in the Islands for any part of a period
from two months to five months, inclusive, they shall be required to pay
one quarter of the annual fee; if they remain for any part of a period from
six months to eight months, inclusive, they shall be required to pay one-
half of the annual fee; if they remain for any part of a period from nine
months to eleven months, inclusive, they shall be required to pay three-
fourths of the annual fee; if they remain a longer period than eleven months
they shall be required to pay the full annual fee. They shall, however, be
required to register their motor vehicles, and shall pay one peso for each
certificate, and one peso for each number plate issued, and five pesos for a
license if they intend to drive their own cars.”
SEC. 3. Section seven of said Act is hereby amended to read as

follows:
414
“SEC. 7. The Director of Public Works shall issue, annually, for

each motor vehicle having more than three wheels duplicate number plates
bearing a distinctive number so that the same will serve to identify the
vehicle, and for every other motor vehicle one such number plate. Said
plates shall be of a distinctly different color each year.”
SEC. 4. Section ten of said Act as amended by Act Numbered Twenty-

two hundred and fifty-six is hereby amended to read as follows:
“SEC. 10. Whenever any motor vehicle is sold or an exchange in the

owner thereof to notify the Director of Public Works within fifteen days
from the date of the change of ownership, in writing, of such changes giving
the name, residence, and address of such purchaser or new owner, the
number of the certificate of registration issued to cover the vehicle, and the
number borne on the number plate or plates issued for such vehicle. Such
notification shall be accompanied by a fee of one peso and the Director of
Public Works shall cause the name, residence and address of such purchaser
or new owner to be recorded in the “Motor Vehicle Register” in such a
manner that the owner of any motor vehicle may at any time readily be
ascertained therefrom. Any statement indorsed on the back of a certificate
of registration issued under this Act shall be sufficient evidence, for the
purposes of this Act, of the ownership of the purchaser or transferee named
in such statement, if the same be signed by the person in whose name the
certificate was issued and complies substantially with the following form:
“ ‘____________________________
(Date)
“I have this day transferred my ownership of the motor vehicle

described on the face hereof to____________________________________,
of ________________________________________________________.
“ ‘______________________________
(Signature)
415
“Any person convicted of a violation of this section shall be punished

by a fine of not more than ten pesos.”
SEC. 5. Section twelve of said Act, as amended by Act Numbered

Twenty-two hundred and fifty-six and Act Numbered Twenty-three hundred
and eighty-nine, is hereby amended to read as follows:
“SEC. 12. Every dealer in motor vehicles may, instead of registering

separately each such vehicle owned by or controlled and used and operated
in his business by hire or by his employees or agents, make, before the
thirty-first of day of January of each year, application for a general certificate
of registration and a general distinguishing number or mark. Such
application shall contain whatever information may be required by the
Director of Public Works. The Director of Public Works, if satisfied with
the statements in such application, may grant to the applicant one general
certificate of registration (in quadruplicate) showing the name, residence,
place of business, and address of the applicant, and that the same is a dealer
in motor vehicles within the meaning of this Act. Such dealer’s certificate
shall further show the general distinguishing number or mark assigned, the
kind, type, style, or make of motor vehicles manufactured, sold or kept, or
handled for sale by him, and such other information as the Director of
Public Works may deem expedient. The general distinguishing number or
mark shall be issued in quadruplicate. All motor vehicles manufactured,
owned, controlled, or kept or handled for sale by such applicant shall
thereafter be regarded as registered under such general distinguishing
number or mark, except those for his private use, each of which shall be
separately registered under sections one and two of this Act, section five of
Act Numbered Twenty-one hundred and fifty-nine as amended by Act
Numbered Twenty-three hundred and eighty-nine, and section six of Act
Numbered Twenty-one hundred and fifty-nine. The fee for registration of
a dealer in motor vehicles shall be twenty pesos: Provided, That no dealer
shall operate motor vehicles for hire unless the same color shall have been
registered in accordance with sections one and two of this Act.”
SEC. 6. Section fourteen of said Act as amended by Act Numbered

Twenty-two hundred and fifty-six is hereby amended to read as follows:
416
“Sec. 14. The Director of Public Works shall cause to be prepared a

form, which shall be furnished free of charge upon request, and upon which
every person who desires hereafter to operate any motor vehicle as a
chauffeur shall answer under oath all questions asked and give all
power, and whether his senses of sight and hearing are normal. He is also
required, except in case of an owner, to have his photograph taken to be
pasted to the license.
“The Director of Public Works is hereby authorized in his discretion

to require an applicant for a license as chauffeur to answer such further
questions or to submit to such an examination touching his qualifications
as chauffeur, as in the Director of Public Works’ judgment will best disclose
the applicant’s fitness and competency to operate motor vehicles.
“If after such examination or without the same the Director of Public
Works believes the applicant to possess the necessary qualifications and
knowledge, he shall, upon the receipt of a fee of two pesos, issue to such
applicant a license to operate as a chauffeur motor vehicles of the kind,
style, type, or make and power described in the application until the thirty-
first day of January next following or until such license is revoked. But if
the said Director does not believe the applicant to be a person qualified to
operate motor vehicles he shall not issue a license as chauffeur to such
applicant, in which event the applicant’s fee shall be returned to him.
“Every license issued to operate a motor vehicle shall have a line or

place for the signature and the photograph of the licensee, and no license
issued shall be effective as an authorization to the person to whom issued
to operate a motor vehicle until after such person has written his usual
signature in the place provided for that purpose.
“Any license not renewed on or before January thirty-first of each

year shall become delinquent. The penalty for renewal of a delinquent
license shall be three pesos.
417
“The Director of Public Works may suspend for a period not exceeding
two months or, after hearing, revoke any license issued under the provisions
of this Act, and may order any such license to be delivered to him whenever
he has reason to believe that the holder thereof is an improper or incompetent
person to operate motor vehicles, or is operating a motor vehicle so as to
endanger the public; and the license so suspended or revoked shall not be
re-issued, unless, upon investigation, the Director of Public Works decides
that the operator may again legally be permitted to operate.
“Appeals from the decision of the Director of Public Works on the

revocation of or his refusal to renew licenses under the provisions of this
section may be taken to the Secretary of Commerce and Police.
“Any person who operates a motor vehicle without having procured

a license or while his license is suspended or revoked shall be punished by
a fine of not less than twenty-five nor more than two hundred pesos for
each offense, provided that if the vehicle so operated is for let or hire the
penalty shall be a fine of not less than twenty-five pesos nor more than two
hundred pesos, or imprisonment of not less than ten days nor more than
thirty days, or both in the discretion of the court for each offense.
SEC. 7. Section fifteen of said Act is hereby amended to read as

follows:
“SEC. 15. The Director of Public Works is further authorized to

issue temporary permits to persons who are learning to operate motor
vehicles upon the payment of a fee of fifty centavos. No such permit shall,
however, be issued for a longer period than three months, and no such
permit shall authorize the person to whom the same is issued to operate a
motor vehicle on any public highway unless accompanied as instructor by
some person under this Act, licensed to operate such motor vehicle. For
any violation of the provisions of this Act and for any injury or damage
done by a motor vehicle, or on account, or as a result of the operations of a
motor vehicle operated by a beginner who is accompanied by an instructor,
the instructor shall be liable.”
418
SEC. 8. Section sixteen of said Act as amended by Act Numbered

Twenty-two hundred and fifty-six is hereby amend to read as follows:
“SEC. 16. Persons (including tourists) who have procured the

registration of one or more motor vehicles owned by them shall, if they
desire themselves to operate such vehicles, make a like application as
provided in section fourteen, as amended, and the Director of Public Works
shall issue to such owners licenses to operate motor vehicles, free of charge.
“Tourists will not be required to present a personal cedula to obtain

a license, but are required, in lieu of a cedula, to make a written statement
on their application for a license to the effect that they are tourists and also
as to the probable time they expect to remain in the islands.
“Upon proof of loss of a license to operate motor vehicles a duplicate

license may be issued under like conditions and after payment of fees as
follows:
“For each duplicate driver’s, owner’s,

or tourist’s license …………………………… P2.00
“For each student’s license ……………………. 1.00"
SEC. 9. Section twenty of said Act is hereby amended to read as

follows”
“SEC. 20. No person operating a motor vehicle is permitted to carry

any person or persons on the running boards or mudguards of his car or to
allow more passengers in his car than its actually fixed and registered
carrying capacity.
“The Director of Public Works or his representatives are hereby

authorized to fix the carrying capacity of all motor vehicles for hire, as
regards passengers, and of trucks as regards freight and merchandise, which
capacity is to be entered on the motor vehicle certificate and register and
thereby made of record, as will the Director of Public Works or his
419
representatives also fix in the same manner the number of persons permitted
on the front or driver’s seat of any motor vehicle.
“Motor vehicles for hire, or trucks used in the carrying of passengers

or freight or merchandise, are required to have the maximum allowed
passenger or freight or merchandise carrying capacity plainly painted in a
conspicuous place upon the vehicle or truck.
“Any person violating any of the above provisions of this section

shall be punished by a fine of from fifty to two hundred pesos or if the car
is a public vehicle by imprisonment of three months or both fine and
imprisonment in the discretion of the court.
“The Director of Public Works or his representative is furthermore

authorized at any time to examine and inspect any motor vehicle, in order
to determine whether the same is unsafe, improperly marked and equipped,
or otherwise unfit to be operated because of possible danger to the chauffeur,
to the passenger, or to the public; or because of possible excessive damage
to the public highways, bridges, or culverts. If the Director of Public Works
finds any such vehicle to be dangerous, or capable of causing excessive
damage to the public highways, bridges or culverts, as aforesaid he may
refuse to register the same, or if the same be registered, he may revoke
such registration or suspend the force and operation thereof, until the defects,
improper equipment, or other cause of insecurity, danger or excessive
damage has been remedied. The Director of Public Works’ action under
this section shall be communicated in writing to the owner of the vehicle,
and, if the vehicle be property of the Government or any of its political
subdivisions, to the chief of the Bureau or Office to which the vehicle in
question belongs. If, after the suspension or revocation of the registration
of a motor vehicle, or motor vehicles, excessive damage is caused to any
public highway, bridge, or culvert as a result of the operation of such motor
vehicle, or motor vehicles, the owner of such vehicle, or vehicles, or the
person, or persons, having control and authority over such vehicle or
vehicles, shall be punished for each offense by a fine of not less than fifty
pesos nor more than two hundred pesos for each motor vehicle operating
after the revocation of its registration, or by imprisonment at hard labor not
420
exceeding three months, or by both such fine and imprisonment, in the

discretion of the court: Provided, That from the decision of the Director of
Public Works regarding the state of security of a motor vehicle, an appeal
may be taken to the Secretary of Commerce and Police.
“If, after the suspension or revocation of the registration of a motor

vehicle, any person is injured, the owner of such vehicle, or the person
having control and authority over such vehicle, shall be guilty of the offense
described in the first paragraph of article five hundred and sixty-eight of
the Penal Code and shall be subject to the penalties therein prescribed.”
SEC. 10. The provisions of this section shall be applicable to heavy

motor vehicles and trailers when upon the public highway:
(a) The approved registered weights and the allowable rate of speed
shall be conspicuously marked upon the sides of the vehicles.
(b) The total weight of a laden vehicle shall in no case exceed eight
metric tons (17,920 pounds) unless permission in writing, from the Director
of Public Works, or his authorized representative, has been obtained.
(c) No metal tire of a vehicle, shall be provided with dogs, flanges,

grooves, corrugations, ribs, strips, or present other than a smooth surface.
(d) Vehicles traveling over the highways shall have the proportion
between width of tire and weight of vehicle loaded as determined in the
following paragraph.
(e) The width of tire of any wheel of a vehicle shall be determined

from the following empirical formula:
K,
T T
421
being the number expressing the width of the tire in centimeters, K the
number expressing the pressure of the wheel upon the highway surface in
kilograms, and D the number expressing the diameter of the wheel in
centimeters.
(f) No vehicle of a weight, including its load, of three and one-half

metric tons (7,840 pounds) but less than five metric tons (11,200 pound),
shall be operated upon any highway or bridge at a speed greater than twenty
kilometers per hour if the tires are of rubber, or at a speed greater than
twelve kilometers per hour if the tires are of metal; and no vehicle of a
weight, including its load, greater than five metric tons (11,200 pounds)
but less than eight metric tons (17,920 pounds) shall be operated upon any
highway or bridge at a speed greater than fifteen kilometers per hour if the
tires are of rubber, or at a speed greater than ten kilometers per hour if the
tires are made of metal.
(g) The width of tire of each wheel shall be governed by the

provisions of paragraph (e) of this Act.
(h) The owners of the vehicles shall be liable for any and all damages
to the highways, bridges and culverts, which damages may be recovered
by the government of the province wherein the damage occurred, or by the
Insular Government, in a court of competent jurisdiction.
(i) The terms “heavy motor vehicle” and “trailers” used in this section
are those vehicles carrying passengers, or carrying or hauling freight or
merchandise or agricultural produce and having a weight when loaded
greater than one and one-half metric tons (3,360 pounds).
(j) Infractions of any of the provisions of this section shall be

punished by a fine of the owner of the vehicle, or trailer, of ten pesos for
the first offense and for a second offense by a revocation of the registration
of the vehicle and a fine of the owner of the vehicle of two hundred pesos
or by imprisonment for a term not to exceed fifty days or both fine and
imprisonment.
422
SEC. 11. Except in cases of a special permit in writing from the

Director of Public Works all motor vehicles and trailers shall carry their
loads so distributed that no part of same shall extend beyond the sides of
the vehicles, and trailers, and in no case shall the width of the vehicle or
trailer exceed two and twenty-five one hundredths meters.
SEC. 12. Section forty-nine of said Act is hereby amended to read as

follows:
“SEC. 49. All moneys collected under the provisions of this Act
shall be covered into the Insular Treasury to create a special fund for the
maintenance of roads and bridges in the Philippine Islands, to be allotted
in the discretion of the Secretary of Commerce and Police for the carrying
out of the provisions of this Act and for the maintenance of roads and
bridges in the Philippine Islands.”
SEC. 13. All motor vehicles under this Act shall be exempted from
any local or municipal taxation.
SEC. 14. Section thirty-two of said Act as amended by Acts

Numbered Twenty-two hundred and fifty-six and Twenty-three hundred
and eighty-nine is hereby amended to read as follows:
front, one on each side which not later than one-half hour before sunrise,
shall be lighted. While the vehicle is in motion, the lights on a level shall
render the person of a man dressed in dark clothing visible for a distance of
not less than one hundred feet ahead and the light thrown forward or ahead
of the motor vehicle shall be white light. Additional lamps and lights may
be carried; but if one additional lamp is carried it shall be affixed midway
between the two lamps hereinbefore required. If two additional lamps are
carried and one of them is lighted the other shall also be lighted. The
lighting of only one of a pair of additional lamps while the motor vehicle is
operated upon a public highway is prohibited.
423
number legible for a distance of sixty feet in the direction from which such
motor vehicle is proceeding, and a red light to the rear. The hours herein
fixed within which such lamps shall burn shall not exempt operators from
the obligation of lighting such lamps or causing the same to be lighted at
earlier or later hours or times, when on account of atmospheric or weather
conditions or other phenomena, the use of such motor vehicles upon public
highways might otherwise be dangerous or unsafe. Motor vehicles of less
than four wheels shall, during the hours herein fixed, bear in front a lamp
throwing a white light ahead.

visible from in front and from the rear of such vehicle.
“No lamp shall be used upon a motor vehicle, or motorcycle, which

concentrates and projects the light or any portion thereof into a beam, unless
the lamp is so adjusted or equipped that the beam of light projected therefrom
shall not be directly visible for more than seventy-five centimeters above
the surface of the highway at a distance of twenty-five meters or more.
“Any person violating the provisions of this section, shall upon

conviction be punished by a fine of not less than twenty-five pesos nor
more than two hundred pesos.”
SEC. 15. Section thirty-nine of said Act is hereby repealed.
SEC. 16. Section forty-three of said Act is hereby amended to read

as follows:
“SEC. 43. Whenever any owner or chauffeur has been three times in
one year convicted of the violation of any one or more provisions of this
Act, or of any regulations lawfully issued or prescribed by the Director of
424
Public Works under authority of this Act such third conviction shall ipso
facto revoke the license of the person convicted and he shall for two years
thereafter be ineligible to be licensed to operate a motor vehicle in the
Philippine Islands.”
SEC. 17. The Chief of Constabulary is hereby given authority, and it

is made his duty, to prevent violations of the provisions of this Act outside
of the city of Manila, and he is hereby authorized to designate as his agents
and deputies, officers of Constabulary, at such places and offices as he
may deem expedient to properly carry out the police requirements of this
Act.
SEC. 18. This Act shall take effect on April first, nineteen hundred
and sixteen.
425
ACT NO. 2616
AN ACT ON SALVAGE AND RENDERING THE ASSISTANCE TO

VESSELS AND CARGOES

Legislature, that:
SECTION 1. When, in the case of shipwreck, the vessel or its cargo

shall be beyond the control of the crew, or shall have been abandoned by
them, and picked up and conveyed to a safe place by other persons, the
later shall be entitled to a reward for the salvage.
Those who, not being included in the above paragraph, assist in saving
a vessel or its cargo from shipwreck, shall be entitled to a like reward.
SEC. 2. If the captain of the vessel, or the person acting in his stead,
is present, no one shall take from the sea, or from the shores or coasts,
merchandise or effects proceeding from a shipwreck, or proceed to the
salvage of the vessel, without the consent of such captain or person acting
in his stead.
SEC. 3. He who shall save or pick up a vessel or merchandise at sea,

in the absence of the captain of the vessel, owner, or a representative of
either of them, they being unknown, shall convey and deliver such vessel
or merchandise, as soon as possible, to the collector of customs, if the port
has a collector, and otherwise to the provincial treasurer or municipal
president.
SEC. 4. After the salvage is accomplished, the owner or his

representative shall have a right to the delivery of a bond to secure, the
expenses and the proper reward.
The amount and sufficiency of the bond, in the absence of agreement,

shall be determined by the collector of customs or by the judge of Court of
First Instance of the province in which the things saved may be found.
426
SEC. 5. The collector of customs, provincial treasurer, or municipal

president, to whom a salvage is reported shall order:
(a) That the things saved be safeguarded and inventoried.
(b) The sale at public auction of the things saved which may be in
danger of immediate loss or of those whose conservation is evidently
prejudicial to the interests of the owner, when no objection is made to such
sale.
(c) The advertisement within the thirty days subsequent to the

salvage, in one of the local newspapers or in the nearest newspaper
published, of all the details of the disaster, with a statement of the marks
and number of the effects, requesting all interested persons to make their
claims.
SEC. 6. If, while the vessel or things saved are at the disposition of
the authorities, the owner or his representative shall claim them, such
authorities shall order their delivery to such owner or his representative,
provided that there is no controversy over their value, and a bond is given
by the owner or his representative to secure the payment of the expenses
and the proper reward. Otherwise, the delivery shall not be made until the
matter is decided by the Court of First Instance of the province.
SEC. 7. No claim being presented in the three months subsequent to

the publication of the advertisements prescribed in subsection (c) of section
five, the things saved shall be sold at public auction, and their proceeds,
after deducting the expenses and the proper reward, shall be deposited in
the Insular Treasury. If three years shall pass without anyone claiming it,
one-half of the deposit shall be adjudged to him who saved the things, and
the other half to the Insular Government.
SEC. 8. The following shall have no right to a reward for salvage or

assistance:
427
(a) The crew of the vessel shipwrecked or which was in danger of

shipwreck;
(b) He who shall have commenced the salvage in spite of opposition

of the captain or of his representative; and
(c) He who shall have failed to comply with the provisions of section
three.
SEC. 9. If during the danger, an agreement is entered into concerning

the amount of the reward for salvage or assistance, its validity may be
impugned because it is excessive, and it may be required to be reduced to
an amount proportionate to the circumstances.
SEC. 10. In a case coming under the last preceding section, as well
as in the absence of an agreement, the reward for salvage or assistance
shall be fixed by the Court of First Instance of the province where the
things salvaged are found, taking into account principally the expenditures
made to recover or save the vessel or the cargo or both, the zeal
demonstrated, the time employed, the services rendered, the excessive
expenses occasioned, the number of persons who aided, the danger to which
they and their vessels were exposed, as well as that which menaced the
things recovered or salvaged, and the value of such things after deducting
the expenses.
SEC. 11. From the proceeds of the sale of the things saved shall be
deducted, first, the expenses of their custody, conservation, advertisement,
and auction, as well as whatever taxes or duties they should pay for their
entrance; then there shall be deducted the expenses of salvage; and from
the net amount remaining there shall be taken the reward for the salvage or
assistance, which shall not exceed fifty per cent of such amount remaining.
SEC. 12. If in the salvage or in the rendering of assistance different persons

shall have intervened, the reward shall be divided between them in
proportion to the services which each one may have rendered, and in case
of doubt, in equal parts.
428
Those who, in order to save persons, shall have been exposed to the
same dangers, shall also have a right to participation in the reward.
SEC. 13. If a vessel or its cargo shall have been assisted or saved,
entirely or partially, by another vessel, the reward for salvage or for
assistance shall be divided between the owner, the captain, and the remainder
of the crew of the latter vessel, so as to give the owner a half, the captain a
fourth, and all the remainder of the crew the other fourth of the reward, in
proportion to their respective salaries, in the absence of an agreement to
the contrary. The expenses of salvage, as well as the reward for salvage or
assistance, shall be a charge on the things salvaged or their value.
429
ACT NO. 2630
AN ACT AUTHORIZING THE “MARINE TRADING COMPANY,

INCORPORATED” TO BRING SUIT AGAINST THE
GOVERNMENT OF THE PHILIPPINE ISLANDS TO RECOVER
DAMAGES, IF ANY, ALLEGED TO HAVE ARISEN FROM THE
COLLISION OF ITS LAUNCH WITH A SCOW TOWED BY A
LAUNCH BELONGING TO THE GOVERNMENT OF THE
PHILIPPINE ISLANDS
Whereas a collision occurred upon the Pasig River in the city of

Manila, Philippine Islands, between the launch Active, belonging to the
“Marine Trading Company, Incorporated” and a scow towed by the launch
Bohol, belonging to the Government of the Philippine Islands, and causing
damage to the said launch Active, and,
Whereas question has arisen between the owners of the said two
launches as to which was at fault in causing the said collision, and that
such question can only be properly determined by action in court ;
Now, therefore, in order to promote right and justice,

Legislature, that:
SECTION 1. The Marine Trading Company, Incorporated, is hereby

authorized and empowered to bring action in the Court of First Instance in
and for the city of Manila, being the Ninth Judicial District, in order to
determine the responsibility and liability for the collision between its launch
Active and the scow towed by the launch Bohol belonging to the Government
of the Philippine Islands, and to fix the damages, if any, to which the said
Marine Trading Company, Incorporated, is entitled on account of said
collision, and that judgment may be entered accordingly.

430
ACT NO. 2639

AND FIFTY-NINE, AS AMENDED, ENTITLED, “AN ACT TO
REGULATE MOTOR VEHICLE TRAFFIC IN THE PHILIPPINE
ISLANDS, TO PROVIDE FOR THE REGISTRATION OF MOTOR
VEHICLES AND THE LICENSING OF OPERATORS, AND TO
REQUIRE ALL VEHICLES ON HIGHWAYS TO CARRY LIGHTS,
AND FOR OTHER PURPOSES” AS AMENDED, BY
REGULATING THE USE OF HEADLIGHTS ON MOTOR
VEHICLES, AND FOR OTHER PURPOSES

Legislature, that:
SECTION 1. Section four of Act Numbered Twenty-one hundred

Philippine Islands, to provide for the registration of motor vehicles, and
the licensing of operators, and to require all vehicles on highways to carry
lights, and for other purposes” as amended, is hereby further amended to
read as follows:
“SEC. 4. Each such application, if for one calendar year, shall be

accompanied by a registration fee in accordance with the following tariff:
“All motor vehicles, except motorcycles and motor trucks, the sum
of twenty centavos per horse power.
“Motor trucks, with metallic tires in whole or in part, including

trailers, carrying passengers, merchandise or freight, the sum of fifty pesos
for the first one thousand kilos or fractional part thereof of carrying capacity
as determined by the Director of Public Works and four pesos for each
additional five hundred kilos, or fraction thereof over two hundred kilos;
motor trucks with rubber tires engaged exclusively in carrying passengers,
the sum of ten pesos for the first one thousand kilos or fractional part thereof
carrying capacity as determined by the Director of Public Works and two
431
pesos for each additional five hundred kilos, or fraction thereof over two
hundred kilos; and motor trucks with rubber tires engaged exclusively in
carrying merchandise or freight, the sum of twenty-five pesos for the first
one thousand kilos or fractional part thereof of carrying capacity as
determined by the Director of Public Works, and three pesos for each
additional five hundred kilos, or fraction thereof over two hundred kilos.
“Motor vehicles operated for hire, except motor trucks and

motorcycles, twenty pesos in addition to the fee per horse power.
“Motorcycles of two or three wheels, three pesos each.
“If an application for the registration is made during the period of

January first to March thirty-first, inclusive, the annual fee mentioned above
in this section shall be paid. If the application is made during the period of
April first to June thirtieth, inclusive, three-fourths of the annual fee shall
be paid. If the application is made during the period July first to September
thirtieth, inclusive, one-half of the annual fee shall be paid. If the registration
is made during the period of October first to December thirty-first, inclusive,
one-fourth of the annual fee shall be paid.
“The postal date of envelopes containing money orders, checks or

cash shall be considered as the date of application in the appliance of the
above tariff, except in the case of improperly prepared applications when
the postal date of the envelope containing the properly prepared application
shall be considered as the date of the application.
“Tourists sojourning in the Philippine Island for a period of two

months or less shall be exempt from the payment of the above stated fees
of this section, but if they remain in the Islands for any part of a period
from two months to five months, inclusive, they shall be required to pay
one quarter of the annual fee, if they remain for any part of a period from
six months to eight months, inclusive, they shall be required to pay one-
half of the annual fee, if they remain for any part of a period from nine
months to eleven months, inclusive, they shall be required to pay three-
fourths of the annual fee. If they remain a longer period than eleven months
432
they shall be required to pay the full annual fee. They shall, however, be
required to register their motor vehicles, and shall pay a peso for each
certificate, and one peso for each number plate issued, and five pesos for a
license if they intend to drive their own cars.”
SEC. 2. Section thirty-two of said Act as amended, is hereby further

front, one on each side which not later than one-half hour after sunset and
until at least one-half hour before sunrise, shall be lighted. While the vehicle
is in motion, the lights on a level shall render the person of a man dressed
in dark clothing visible for a distance of not more than thirty meters ahead
and the light thrown forward or ahead of the motor vehicle shall be white
light. Additional lamps and lights may be carried; but if one additional
lamp is carried it shall be affixed midway between the two lamps
hereinbefore required. If two additional lamps are carried and one of them
is lighted the other shall also be lighted. The use of a headlight, which
concentrates and projects the light or any portion thereof into a beam, unless
said light is so adjusted or equipped that the reflected beam of the light
flowing therefrom shall not be visible for more than seventy-five centimeters
above the ground at a distance of twenty meters or more, is prohibited
within the limits of the poblaciones. The lighting of only one of a pair of
additional lamps while the motor vehicle is operated upon a public highway
is also prohibited.
number legible for a distance of eighteen meters in the direction from which
such motor vehicle is proceeding, and a red light to the rear. The hours
herein fixed within which such lamps shall burn shall not exempt operators
from the obligation of lighting such lamps or causing the same to be lighted
at earlier or later hours or times when, on account of atmospheric or weather
conditions or other phenomena, the use of such motor vehicles upon public
433
highways might otherwise be dangerous or unsafe. Motor vehicles of less

than four wheels shall, during the hours herein fixed, bear in front a lamp
throwing a white light ahead.

434
ACT NO. 2643
AN ACT GRANTING RAMON FERNANDEZ, A CITIZEN OF THE

PHILIPPINE ISLANDS AND RESIDENT OF THE CITY OF
MANILA, AND HIS SUCCESSORS AND ASSIGNS, A
FRANCHISE TO ESTABLISH, CONSTRUCT, EQUIP,
MAINTAIN, AND OPERATE A RAILROAD IN THE PROVINCE
OF NEGROS, PHILIPPINE ISLANDS

Legislature, that:
SECTION 1. A franchise is hereby granted to Ramon Fernandez,

citizen of the Philippine Islands and resident of the city of Manila, in his
capacity as member of the Central Sugar Board, for conveyance to the
sugar central established by said board in conformity with Act Numbered
Twenty-four hundred and seventy-nine, to construct, equip, and operate
subject to the terms and conditions hereinafter set forth, for a period of
fifty years from and after the date of the passage of this Act, an agricultural
railroad for the transportation of freight, in the Province of Occidental
Negros, generally and approximately as hereinafter indicated, and subject
to such variations, changes, and extensions of the main line and branches
as the Governor-General may approve: from the municipality of Hinigaran
to the municipality of Isabela, with extensions to the Panaquiao River and
to the hacienda “Carmen,” in the municipality of Isabela, on the Binalbagan
River, in the municipality of Binalbagan, to the barrio of Soledad.
The grantee may, with the consent of the Governor-General, construct

other branches to points of traffic within a reasonable distance from the
main line.
SEC. 2. The length of the railroad shall be approximately sixty

kilometers, exclusive of the branches, but inclusive of the extensions.
SEC. 3. The grantee may make the route described such variations
as a careful investigation of the locality may show to be necessary in order
435
to avoid inundations and large cuts and fills, diminish curves, reduce grades,
or feed the road.
SEC. 4. The maximum grade of the construction shall be two per

centum and the minimum curve shall have a radius of two hundred meters.
The grade on curves shall be compensated in such manner that the maximum
grade on minimum radius curves shall not exceed one and six-tenths per
centum.
SEC. 5. The grantee shall construct and maintain stations at

Hinigaran, Isabela, Paticui, Bulad, Mampahubug, and Soledad, and in such
other places as may be deemed necessary for an adequate public service.
SEC. 6. All material used in the construction of the line shall be of

good quality and adapted to the conditions of the country. The rails shall
be steel rails weighing fifteen kilograms per meter, with a resistance of
three thousand five hundred kilos. On each kilometer of track there shall
be used at least twelve hundred ties of native hard wood, one meter and
fifty centimeters long, seven inches wide and five inches thick.
SEC. 7. The railroad shall be single track, of seventy-five to ninety

centimeter gauge, with the necessary sidings to allow the trains passing
each other at each station. The width of the fills and cuts shall be that
required for the development of the track.
Sec. 8. The motive power of said railroad shall be steam; but with
the consent of the Governor-General, any part of said railroad or of its
extensions and branches may be operated by electricity or any other
equivalent motive power.
SEC. 9. All materials used in the construction of buildings shall be

of good class and quality. The roofing shall be of galvanized iron. The
bridges and culverts shall be constructed of reinforced concrete or of
masonry and steel.
SEC. 10. In harmony with and by virtue of this Act, and subject to
the approval of the Governor-General, the grantee is hereby given the right
436
of way through the public lands of the Philippine Government for the
construction, operation, and maintenance of the railroad and its branches
and extensions, herein authorized, to the extent of thirty meters in width
warehouses, terminals, including wharves and dock fronts, switches,
sidetracks, and turntables, and also such extra lands beyond such thirty
meters as may be found necessary for said purposes and be approved by
the Governor-General; Provided, That the provisions of this paragraph shall
only apply to public lands available for homestead settlement or for sale
under the Public Land Act or to timber lands of the Philippine Government,
and shall not apply to lands used and assigned for other public purposes.
failure to agree upon the terms thereof, such terms shall be fixed by the
Governor-General.
The grantee shall also have the right to acquire from corporations
and other entities, by purchase, contract, lease, concession, or donation,
the land necessary or useful for the construction, maintenance and operation
of the railroad and its extensions and branches.
The grantee shall also have the right to acquire, by contract or

expropriation, the land necessary for right of way, of thirty meters
approximately, for bridges, terminals, wharves, docks, sidetracks, depots,
warehouses, shops, platforms, turntables, switches, and other means suitable
for the operation of the railroad, and may, in a like manner, acquire the
land necessary for fills, cuts, and excavations, quarries, and all other land
necessary for the deviation of watercourses, wagon roads, drainage of
marshy land, dams and other works necessary for the protection of the
track from inundation: Provided, That the grantee shall not occupy any
land within the limits of any province or municipality, if the same is actually
437
used for provincial or municipal purposes, nor shall he occupy land within
said limits without authorization by the proper authorities.
The right of eminent domain granted by this franchise shall be

exercised by the grantee in conformity with the laws of the Philippine Islands
in force at the time.
SEC. 11. The grantee shall have and enjoy, besides, the following
powers, privileges, and exemptions:
(a) To convey or transfer this privilege to the central established

by the Central Sugar Board.
(b) With the approval of the Governor-General, to open and work

quarries and gravel pits upon any public lands and take form such lands
earth, stone, timber, and other materials for the construction of such railway;
but the provisions of this paragraph shall only apply to public lands available
for homestead settlement or for sale under the Public Land Act, and shall
not apply to lands used and assigned for other purposes.
(c) To appear in, petition for, initiate, prosecute, and abandon

judicial or extrajudicial proceedings of any kind; to sue; to appoint and
remove freely the employees and agents necessary for the operation,
assigning to them such compensation as he may see fit.
(d) To acquire for the railroad by purchase, donation, or any method

permitted by law, the title to or possession of land and other real and personal
property, easements, or other property rights, and acquire, possess, lease,
exchange, mortgage, pledge, sell, or dispose of the same entirely or in part,
in accordance with law.
(e) To construct and alter, substitute, maintain, and operate the

railroad; construct all buildings, stations, shops, fills, aqueducts, bridges,
wharves, roads, thoroughfares, crossings, ditches, drains, pillars, arches,
retaining walls, and fences on land of his own, and to cross any railroad,
tramway, river, canal, creek, lake, shore, culvert, road, and public
438
thoroughfare, upon obtaining the necessary authorization therefor from the

public or private entities or persons whose rights may be affected.
(f) To open quarries, gather stones from the surface of the land, cut
timber, excavate the ground for material, and construct, and operate ovens
for lime, gypsum, and bricks on land owned or leased for these purposes
by the grantee.
(g) To conduct water to the railroad, for its use; to acquire the land
and construct roads necessary to facilitate access to the stations from the
pueblos.
(h) To borrow money and contract the necessary indebtedness for

the construction, completion, maintenance and operation of the road and
for other legal purpose; to issue or negotiate promissory notes, chits, bonds,
or other documents representing value for any sum borrowed or indebtedness
contracted, at a rate of interest of not less than four per centum nor more
than eight, and to guarantee such indebtedness by mortgages, encumbering
property already acquired, or capital actually invested at the time of
contracting the indebtedness with said securities. Twenty per centum of
such bonds, notes, promissory notes, etc., shall be redeemed annually ten
years after their issue or prior thereto if the grantee deem it advisable.
(i) None of the personal or real property in use and necessary for
the operation of the road shall be burdened with imposts and taxes by the
province or municipality from the date of the franchise to that of the
expiration thereof.
(j) In case of refusal, delay, or failure of the payment of the freight

charges on merchandise, either for the entire distance or part thereof, the
grantee may retain the said merchandise until payment is made. Such
payment shall include all storage charges on merchandise left with the
railroad for over forty-eight hours after arrival at its destination.
(k) To petition the justice of the peace of the district in which the
station is located, for the sale at public auction of all articles, freight,
439
merchandise, or baggage transported by the grantee and not claimed by the

owner or consignee within a period of two months. In the cases hereinbefore
set forth, or when the owner or consignee is not know or refuses to receive
the articles transported, or if he refuses to pay the transportation expenses,
the grantee may petition the justice of the peace for any order for the sale at
public auction of perishable goods. The proceeds of the sale shall be applied
primarily to the payment of the costs and expenses of such sale, and then to
that of the account of the railroad for freight and expenses on said goods,
and the remainder, if any, shall be deposited in the court at the disposal of
the person entitled to claim it. The grantee shall have the right to refuse to
accept perishable goods for transportation unless the freight charges thereon
are paid in advance.
SEC. 12. It shall be the duty of the grantee, in order to prevent

accidents, to place gates in charge of guards at the points where the railroad
crosses much frequented public highways or roads.
SEC. 13. Along the entire right of way of the grantee shall establish
a telegraph line for the exclusive use of the railroad. The poles of this line
may also carry such wires as the Government may deem necessary; but the
maintenance and custody of the latter shall be at the expense of the
Government.
SEC. 14. The grantee binds himself to provide on his trains a suitable
stipulated between the Director of Posts and the said grantee. In case of
failure to arrive at an agreement, the Governor-General shall establish the
manner in which said mails shall be carried, after hearing and considering
the arguments of the said Director and grantee. Said mails shall be carried
free of charge: Provided, That in case the Government requires, in addition
to the ordinary mail service, the transportation of urgent mail or orders at
other hours or a greater speed than those of the ordinary trains, or the
transportation of troops, ammunition, funds, or freight, the grantee shall
take the necessary steps to comply therewith and shall receive a reasonable
compensation for such service.
440
SEC. 15. The grantee shall not hinder the crossing of his road by any
other railroad or wagon road authorized by the Government, provided the
same pays the proper indemnity and complies with the railroad police
regulations.
SEC. 16. Each locomotive used in the operation of the road shall be
equipped with a bell and a steam whistle. The bell shall be rung and the
whistle blown at a distance of at least three hundred meters from each
point where the railroad crosses any road and the ringing shall be continued
until the locomotive has crossed such road. Each locomotive shall be
provided with the necessary apparatus for preventing the sparks from setting
fire to the property adjacent to the right of way.
SEC. 17. The velocity of the trains upon passing on streets of the
pueblos or public thoroughfares where there are no bars shall not exceed
thirty-two kilometers per hour.
SEC. 18. It shall be the duty of the grantee to issue receipts from a
stub book for merchandise or articles booked, and to label such merchandise
or article.
SEC. 19. It shall be the duty of the grantee to provide the personnel
in his service with a special badge without which they shall not be allowed
to perform any official duty or apply for assistance to the peace officers.
SEC. 20. The grantee may refuse to accept for transportation goods
of a dangerous character or goods the transportation of whereof is prohibited
by the Government.
SEC. 21. The concession of this franchise shall be subject in all

respects to the restriction imposed upon corporations and franchises by the
Act of Congress approved July first nineteen hundred and two, entitled
“An Act temporarily to provide for the administration of the affairs of the
Civil Government in the Philippine Islands, and for other purposes,” and to
the provisions of Act Numbered Twenty-three hundred and seven of the
Philippine Legislature and its amendments, any provisions hereof to the
contrary notwithstanding.
441
SEC. 22. Within one hundred and twenty days from and after the
transfer of the franchise granted by this Act, as hereinafter provided, the
grantee shall deposit in the office of the Insular Treasurer at Manila a sum
equal to fifty pesos Philippine currency per kilometer of the concession.
This deposit shall be returned in proportion as the work is completed in
sections of not less than twenty kilometers.
SEC. 23. The grantee or his successors shall pay into the Insular
Treasury of the Islands, as compensation for the concession of this franchise,
one-half of one per centum of the gross receipts from the freight traffic on
this railroad. This percentage shall be paid monthly and shall be in lieu of
all privilege, profit, income, and franchise taxes, and the grantee is hereby
declared exempt from all classes of taxes.
SEC. 24. The grantee shall keep a record of all receipts for freight of
the railroad herein mentioned, which shall be subject to inspection by the
authorities, who shall audit and approve the accounts and designate the
sum due to the Government.
SEC. 25. This franchise or concession is granted subject to

amendment, alteration, or repeal by the Congress of the United States or by
the Legislature of the Philippine Islands and subject to the provisions of
Act Numbered Twenty-three hundred and seven, as amended by Act
Numbered Twenty-three hundred and sixty-two of the Philippine
Legislature. No stock or bonds shall be issued by the grantee, his successors
or assigns, hereunder, except in exchange for actual cash, or for property at
a fair valuation equal to the par value of the stock or bonds so issued, and
said grantee, his successors or assigns, shall not declare any stock or bond
dividend. No private property shall be taken for any purpose under this
franchise without just compensation paid or tendered therefor, and any
authority to take and occupy land shall not authorize the taking, use or
occupation of any land except such as is required for the actual necessary
purposes for which this franchise is granted. All lands or rights or use and
occupation of lands granted to the grantee, his successors or assigns, shall,
upon the termination of this franchise or upon its revocation or repeal,
revert to the Insular or the provincial or city government to which such
442
lands or the right to use and occupy them belonged at the time of the grant
thereof or the right to use or occupy the same was conceded to the grantee,
his successors or assigns.
SEC. 26. Whenever the word “grantee” is used in this Act, it shall be
considered and understood as referring to Ramon Fernandez, his
representatives, successors, or assigns.
SEC. 27. This Act shall take effect on its passage; but the franchise
shall not be effective unless within sixty days after the said passage the
grantee shall file with the Secretary of Commerce and Police his acceptance
in due form, binding himself to comply with all the terms hereof.
443
ACT NO. 2687
AN ACT TO AMEND THE SECOND PARAGRAPH OF SECTION

TWENTY-SEVEN OF ACT NUMBERED TWENTY-FOUR
HUNDRED AND EIGHTY-FIVE, ENTITLED “AN ACT
GRANTING SEÑOR VICENTE SOTELO Y MATTI, A NATIVE
AND RESIDENT OF THE CITY OF MANILA, PHILIPPINE
ISLANDS, AND HIS SUCCESSORS AND ASSIGNS, A
FRANCHISE TO ESTABLISH, CONSTRUCT, EQUIP, MAINTAIN,
AND OPERATE A RAILROAD IN THE SOUTHERN PART OF
THE ISLAND OF NEGROS, PHILIPPINE ISLANDS”
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 second paragraph of section twenty-seven of Act

Numbered Twenty-four hundred and eighty-five, entitled “An Act granting
Señor Vicente Sotelo y Matti, a native and resident of the city of Manila,
Philippine Islands, and his successors and assigns, a franchise to establish,
construct, equip, maintain, and operate a railroad in the southern part of
the Island of Negros, Philippine Islands,” is hereby amended to read as
follows:
“The grantee shall forfeit all or part of said deposit if the work on the
railroad has not been begun by December thirty-first, nineteen hundred
and nineteen, or if over five years have elapsed after such work is begun,
without its being completed. The forfeiture of this bond shall not take
place if the completion of the work has been hindered totally or partially
by force majeure or fortuitous events.”
SEC. 2. This Act shall take effect on its approval.
Approved, March 9 1917.
444
ACT NO. 2748
AN ACT TO AUTHORIZE THE MANILA RAILROAD COMPANY TO

DISCONTINUE ITS RAILROAD LINE BEWEEN THE
MUNICIPALITIES OF TAYTAY AND ANTIPOLO, PROVINCE OF
RIZAL, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representative of the Philippines

SECTION 1. The Manila Railroad Company is hereby authorized to

discontinue its line of railroad between the municipalities of Taytay and
Antipolo, in the province of Rizal, and to dispose of the property real and
personal appertaining to said lines in such manner and upon such terms as
may be deemed most advantageous to the interests of the Manila Railroad
Company by the directors of said company and the trustee of the mortgage
covering said property. The proceeds of the sale of such property as is
covered by the mortgages to protect the bond holders, shall be applied as in
said mortgage provided.
SEC. 2. This Act shall take effect upon its approval.
Approved, February 21, 1918.
445
ACT NO. 2790
AN ACT TO PROVIDE FUNDS FOR THE EXTENSION OF THE LINES

OF THE MANILA RAILROAD COMPANY

SECTION 1. The Insular Treasurer is hereby authorized, upon the

order of the Secretary of Finance and with the approval of the Governor-
General, to lend to the Manila Railroad Company out of the unappropriated
general funds of the Insular Treasury for a period not exceeding ten years,
the sum of two million pesos to be secured by bonds of the Manila Railroad
Company with interest at three and one half per centum per annum for the
extension of the present line from Calauag, south to Guinayangan, or other
suitable terminal; for the extension of the Legaspi lines from Iriga, north;
for the extension of the Northern lines into the Cagayan Valley, and for the
purchase of such additional equipment and rolling stock as may be necessary.
Said loan shall constitute a lien on the property of the Manila Railroad
Company subject only to prior liens thereon at the time such loan is made.
SEC. 2. This act shall take effect on its approval.
446
ACT NO. 2800
AN ACT TO AMEND SECTION SEVENTEEN OF ACT NUMBERED

TWENTY-FOUR HUNDRED AND EIGHTY-FIVE, ENTITLED
“AN ACT GRANTING SENOR VICENTE SOTELO y MATTI A
NATIVE AND RESIDENT OF THE CITY OF MANILA,
PHILIPPINE ISLANDS, AND HIS SUCCESSORS AND ASSIGNS,
A FRANCHISE TO ESTABLISH, CONSTRUCT, EQUIP,
MAINTAIN AND OPERATE A RAILROAD IN THE SOUTHERN
PART OF THE ISLAND OF NEGROS, PHILIPPINE ISLAND”
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. Section seventeen of Act numbered Twenty-four

hundred and eighty-five is hereby amended to read as follows:
“SEC. 17. The legal domicile of the grantee shall be the city of Manila,
Philippine Islands; but if he consider it advisable and necessary, he may
have a representative at Pulupandan, Occidental Negros, properly
authorized and empowered to deal with the Insular Government with
Respect of this franchise.”
Approved, February 28,1919.
447
ACT NO. 2876
AN ACT TO AMEND PARAGRAPH EIGHTEEN OF SECTION ONE

OF ACT NUMBERED TWENTY-EIGHT HUNDRED AND
THIRTY-SIX ENTITLED “AN ACT GRANTING TO THE
MANILA RAILROAD COMPANY OF THE PHILIPPINE
ISLANDS A CONCESSION TO CONSTRUCT A RAILROAD
IN THE ISLAND OF LUZON”
Be it enacted by the Senate and House of the Representatives of the

Philippines in Legislatures assembled and by the authority of the
same;
SECTION 1. Paragraph eighteen of section one of Act numbered

Twenty-eight hundred and thirty-six is hereby amended to read as follows:
“18. 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
the section twenty-three of Act numbered Twenty-three hundred and seven,
as amended and shall have filed such certificate with the Governor–General
and said grantee shall make application for such certificate within ten months
from and after the date of the approval of this Act, and if this period expires
without its having made such application, this franchise shall become null
and void if the grantee fails to file with the Governor-General , within sixty
days from and after the date on which it secured the certificate hereinbefore
required, its acceptance in due form of the terms and conditions set forth in
this Act, together with said certificates: Provided, that upon making such
acceptance, the grantee shall also state in writing that it accepts as necessary
part at this concession the following condition, to-wit:
“ That the grantee states 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 the
reply message of the Philippine Assembly made in the name of the Filipino
448
people and approved and set 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 further binds
itself to exact a similar engagement from its administrators, agents,
successors, and assigns.’
“By the acceptance hereof, the grantee stipulates and agrees that any
railways constructed by virtue of this presents shall accord with the terms
and conditions herein imposed and shall be maintained in perpetuity as
commercial railways and common carriers in a manner suitable to the local
conditions.
“In witness whereof, by virtue of authority conferred upon him, this

instrument, in triplicate is executed by the Governor-General of the
“The Philippine Government,
[SEAL.]
“By
“Governor-General of the Philippine Islands.”
SEC. 2 This act shall take effect on its approval.
Approved, January 8, 1920.
449
ACT NO. 2895

PHILIPPINE ISLANDS, SIXTY THOUSAND SIX HUNDRED
AND THIRTY-FIVE SHARES OF THE CAPITAL STOCK OF THE
ISLANDS, AND TO PROVIDE FUNDS FOR THE PAYMENT OF
THE PURCHASE PRICE OF SUCH SHARES

SECTION 1. The Governor-General is hereby authorized and directed

to subscribe for and buy, on behalf of the Government of the Philippine
Islands, sixty thousand six hundred and thirty-five shares of the capital
stock of the Manila Railroad Company of the Philippine Islands, of the par
value of twelve million one hundred and twenty-seven thousand pesos, to
be paid for at the time of the execution of the subscription contract, as
follows:
(a) The sum of one million pesos shall be paid in cash.
(b) The sum of eleven million one hundred and twenty-seven

thousand pesos shall be paid by the application of the present indebtedness
of the Manila Railroad Company of the Philippine Islands as successor of
The Manila Railroad Company, to the general funds of the Government of
the Philippine Islands for loans to the corporation last named.
450
ACT NO. 2951
AN ACT TO AMEND SECTION TWENTY-THREE HUNDRED AND

THIRTEEN OF ACT NUMBERED TWENTY-SEVEN HUNDRED
AND ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE OF
NINETEEN HUNDRED AND SEVENTEEN, PROVIDING THAT
THE CART AND SLEDGE TAX SHALL BE PAYABLE ON OR
BEFORE JANUARY THIRTY-FIRST OF EACH YEAR

SECTION 1. Section twenty-three hundred and thirteen of Act

Numbered Twenty-seven hundred and eleven, known as the Administrative
Code of nineteen hundred and seventeen is hereby amended to read as
follows:
“SEC. 2313. Cart and sledge tax. - There shall be paid, on or before
the thirty-first day of January of each year, an annual privilege tax upon
carts and sledges used upon any public road in a municipality, as follows:
“Upon each draft cart having tires less than two and one-half inches
in width, three pesos.
“Upon each draft cart having wheels rigid with the axle, two pesos.
“Upon each draft cart having both rigid wheels and tires less than
two and one-half inches in width, five pesos.
“Upon each sledge with runners less than two and one-half inches in
width, three pesos.
“Where a cart or sledge not previously used upon a public road is

acquired or first used subsequently to the thirty-first of January of any
year, the tax thereon may be computed by the quarter; and the owner shall
be liable for the tax only from the beginning of the first quarter during
which the use of the cart or sledge was begun.”
451
452
ACT NO. 2960

PHILIPPINE ISLANDS, TEN THOUSAND SHARES OF THE
CAPITAL STOCK OF THE MANILA RAILROAD COMPANY
OF THE PHILIPPINE ISLANDS, AND APPROPRIATING FUNDS
FOR PAYING FOR SAID SHARES


to subscribe to and purchase, on behalf of the Government of the Philippine
Islands, ten thousand shares of the capital stock of the Manila Railroad
Company of the Philippine Islands, of the par value of two million pesos.
SEC. 2. The sum of two million pesos is hereby appropriated, out of

any funds in the Insular treasury not otherwise appropriated, to carry out
the provisions of this Act.
453
ACT NO. 2962
AN ACT EXEMPTING THE MANILA RAILROAD COMPANY FROM

TAXATION

SECTION 1. The Manila Railroad Company is hereby exempted from

all taxes and assessments, of every name and nature, either municipal,
provincial, or insular, until December thirty-first, nineteen hundred and
twenty-two.
Until December thirty-first, nineteen hundred and twenty-two, no

specific tax shall be collected on any article sold or delivered directly to
the Manila Railroad Company.
SEC. 2. This Act shall take effect as of January first, nineteen hundred
and twenty-one.
454
ACT NO. 2965
AN ACT TO AMEND SUBSECTION (N) OF SECTION TWENTY-FOUR

HUNDRED AND FORTY-FOUR OF ACT NUMBERED TWENTY-
ADMINISTRATIVE CODE, AS AMENDED BY ACT NUMBERED
TWENTY-SEVEN HUNDRED AND SEVENTY-FOUR,
EMPOWERING THE MUNICIPAL BOARD OF THE CITY OF
MANILA TO ESTABLISH A TAX ON AUTOMOBILES

SECTION 1. Subsection (n) of section twenty-four hundred and forty-

four of Act Numbered Twenty-seven hundred and eleven, known as the
Administrative Code, as amended by section eight of Act Numbered Twenty-
seven hundred and seventy-four, is hereby amended to read as follows:
“(n) To tax motor and other vehicles, notwithstanding the provisions

to the contrary contained in section thirteen of Act Numbered Twenty-five
hundred and eighty-seven, and draft animals not paying any Insular tax:
Provided, That all automobiles and trucks belonging to the Insular
Government or to any provincial or municipal government and automobiles
and trucks not regularly kept in the city of Manila shall be exempt from
such tax.”
455
ACT NO. 3017
AN ACT AUTHORIZING THE “MANILA RAILROAD COMPANY” TO

ABANDON ITS RAILROAD LINE BETWEEN THE
MUNICIPALITIES OF NOVELETA AND CAVITE, PROVINCE OF
CAVITE, AND FOR OTHER PURPOSES

SECTION 1. The Manila Railroad Company is hereby authorized

to abandon its railroad line between the municipalities of Noveleta and
Cavite, Province of Cavite, and to dispose of the personal and real property
belonging to said line in such form and subject to such conditions as the
directors of the Manila Railroad Company and the trustee of the mortgage
on said property may consider most advantageous for the interests of said
company. The proceeds of the sale of said property in so far as the same is
affected by the mortgage for the protection of the bondholders shall be
applied in accordance with the provisions of the deed of mortgage.
Approved, March 8, 1922.
456
ACT NO. 3045
AN ACT TO AMEND AND COMPILE THE LAWS REGULATING

MOTOR VEHICLE TRAFFIC IN THE PHILIPPINE ISLANDS,
THE LAWS PROVIDING FOR THE REGISTRATION OF MOTOR
VEHICLES AND THE LICENSING OF MOTOR VEHICLE
OPERATORS, THE LAWS REQUIRING LIGHTS OF ALL
VEHICLES USING HIGHWAYS AT NIGHT, AND THE LAWS
PRESCRIBING PENALTIES FOR VIOLATIONS THEREOF, AND
FOR OTHER PURPOSES

SECTION 1. For the purposes of this Act:
(a) “Motor vehicles” are all vehicles propelled by any power other
than muscular power, excepting road rollers, street sweepers and sprinklers,
lawn mowers or vehicles which run only on rails or tracks. Trailers, having
two or more wheels, when propelled or intended to be propelled by
attachment to a motor vehicle, shall be classified as separate motor vehicles
with no power rating. “Passenger automobiles” include all pneumatic tired
motor vehicles of types similar to those usually known under the following
terms: touring car, speedster, roadster, cycle car (except motor wheel and
similar small outfits which are classified with motorcycles), coupé,
landaulet, closed car, limousine, cabriolet, sedan, etc. Motor vehicles with
changed or rebuilt bodies, using a chassis of the usual pneumatic tired
passenger automobile type, shall also be classified as passenger automobiles,
provided their net allowable carrying capacity as determined under sections
twenty and twenty-one of this Act, does not exceed eight passengers and
provided they are not used primarily for carrying freight or merchandise.
(b) “Highways” include every public thoroughfare, every public

boulevard, driveway, avenue, park parkway, plaza, square, place, street,
road, alley, and callejon.
457
(c) “Chauffeur” includes every and any licensed operator of a motor

vehicle, except an owner operating his own motor vehicle not for hire.
(d) “Operating” and the other inflection of that verb signifying

running, driving, guiding, controlling, or conducting a motor vehicle.
(e) “Operator” includes every person operating a motor vehicle

whether he be or be not licensed to do so.
(f) “Owner” includes, when the context requires it, in addition to

the actual legal owner of a motor vehicle or trailer, also every person for
the time being in legal possession of such motor vehicle and lawfully entitled
to give commands and directions with regard to the same, but not a person
who has rented or hired such motor vehicle or trailer from a garage. In as
far as concerns publicly owned motor vehicles or trailers, the “owner,” in
the contemplation of this Act, is the head of the office or the chief of the
bureau to which the said motor vehicle or trailer belongs except when the
context requires a different interpretation.
(g) “Dealer” includes every person, association, partnership or

corporation making, manufacturing, constructing, assembling, or setting
up motor vehicles or trailers in these Islands for sale; and every person,
association, partnership or corporation, acting as agent for the sale of one
or more makes, styles or kinds of motor vehicles, dealing in motor vehicles,
keeping the same in stock, or selling same or handling with a view of trading
in same.
(h) “Dealer’s certificate” means a certificate of registration issued

to a dealer as defined in the last preceding subsection.
(i) “Garage” includes every place where motor vehicles belonging

to persons other than the owner of such garage are housed, stored, kept or
repaired for payment, and every place where motor vehicles are housed,
stored, or kept to let or for hire to the public, with the exception of street
stands or other public places designated by proper municipal authority as
458
parking space for motor vehicles for hire, while awaiting or soliciting
passengers or business.
(j) “Proprietor of a garage” includes every proprietor and owner

of a garage as defined in the last preceding subsection, and every person in
control or charge of such garage in his own behalf or in behalf of the owner
or proprietor.
(k) “Intersection” includes every part of a public highway which

joins another at an angle, whether or not it crosses the other.
(l) “Horn” shall include every device for signaling by sound.
(m) “Gross weight” includes the measured weight of a motor

vehicle in running condition, as determined by the Director of Public Works
or his deputies, plus the maximum allowable carrying capacity in
merchandise, freight or passengers, as determined by the Director of Public
Works or his deputies. For the determination of carrying capacity, the
weight of a passenger shall be assumed arbitrarily as fifty kilos exclusive
of personal or other baggage.
(n) “The Director of Public Works,” except where expressly stated

otherwise, is defined as the actual or acting chief of the Bureau of Public
Works.
(o) “The Director of Public Works or his deputies” is defined as

the actual or acting chief of the Bureau of Public Works or such
representatives, deputies, agents, or assistants, as he may, with the approval
of the Secretary of Commerce and Communications, authorize or detail in
writing for the purposes contemplated by this Act.
SEC. 2. (a) No motor vehicle shall be used or operated in, along, or

upon any public highway of the Philippine Islands unless the same is
registered in accordance with the provisions of this Act, nor by any person
who is not licensed to operate such motor vehicle under the provisions of
this Act.
459
(b) Any person convicted of a violation of the provisions of this

section shall be punished by a fine of not less than five nor more than two
hundred pesos: Provided, however, That if the vehicle so operated is for let
or hire to the public a further penalty of not more than six months’
imprisonment may be imposed.
(c) Motor vehicles belonging to the government of the United States,

the Government of the Philippine Islands or any of its subdivisions, or to
any provincial, city or municipal government shall be regarded as registered
under the provisions of this Act if they bear signs or legends plainly
indicating to what department, bureau, or political subdivision the same
belong and the number plates required by section seven hereof, which
number plates shall be issued free by the Director of Public Works upon
request.
SEC. 3. (a) Every owner of a motor vehicle kept or used in the

Philippine Islands, shall within seven days after taking actual possession,
and thereafter, not later than the last working day of February of each year,
file in the office of the Director of Public Works or in the office of the
district engineer for each motor vehicle owned or possessed by him, a
statement of his name; place of residence and business address; the number
and date of his cedula and the place where same was issued; a brief
description of each such motor vehicle including the name, style or type,
and seating capacity or maximum allowable number of passengers; the
number of kilos allowable gross weight, the name or title of the makers,
the serial number, if any, stamped upon or affixed thereto by the makers;
the number of wheels, the size, character, and material of all tires; the
character of the motive power; and the amount thereof stated in figures of
horsepower, such horsepower in case of internal combustion engines to be
determined by the usual Association of Licensed Automobile Manufacturers
or National Automobile Chamber of Commerce formula D2N , D being the
diameter of the cylinder in inches, and N the number of 2.5 Cylinders, and
in the case of steam and electric motor vehicles the amount of such
horsepower to be taken as rated and advertised by the maker thereof; the
name of the person or firm from whom the machine was acquired; and
460
such other information as the Director of Public Works or his deputies may
require. Such statement shall be regarded as an application for the official
registration of such motor vehicle.
(b) Any registration of motor vehicle not renewed on or before the

last working day of February of each calendar year shall become delinquent.
The penalty for renewal of a delinquent registration shall be a fifty per cent
addition to the fees mentioned in section four below: Provided, That a
penalty of five pesos only shall be collected for renewal of a delinquent
registration “for storage only,” as described under section four (n) of this
Act.
(c) Any person convicted of a violation of the provisions of this

section shall be punished by a fine of not less than twenty-five nor more
than two hundred pesos.
SEC. 4. (a) Each such application, if for one calendar year, shall be
accompanied by an annual registration fee in accordance with the following
tariff: All motor vehicles, the sum of fifty centavos per horsepower or
fraction thereof as determined under section three of this Act, in addition
to the following:
(b ) Private automobiles with pneumatic tires, the sum of one centavo

per kilogram of gross weight, as defined under section one of this Act.
(c ) Private traction engines used for hauling purposes on public

highways, and motor trucks, with metallic tires in whole or in part, the sum
of ten centavos per kilogram of gross weight.
(d ) Private motor trucks with solid rubber tires or with part solid
and part pneumatic rubber tires, the sum of two centavos per kilogram of
gross weight.
(e ) Private motor trucks with pneumatic rubber tires the sum of one
and on-half centavos per kilogram of gross weight.
461
(f ) Private trailers with metallic tires, the sum of five centavos per
kilogram of gross weight.
(g) Private trailers with solid rubber tires or with part solid and part
pneumatic rubber tires, the sum of one and one-half centavos per kilogram
of gross weight.
(h) Private trailers with pneumatic rubber tires, the sum of one centavo
per kilogram of gross weight.
(i ) Private motorcycles of two or three wheels, bicycles with motor

attachments, and similar motor vehicles, the sum of one centavo per
kilogram of gross weight.
(j ) The fee of registration of automobiles operated for hire shall be

two times the fee mentioned for private automobiles. Freight or passenger
motor trucks for hire shall be subject to the same fees as private motor
trucks.
(k ) If an application for the first registration is made during the

period of January first to March thirty-first, inclusive, the annual fee
mentioned above in this section shall be paid. If the application is made
during the period of April first to June thirtieth, inclusive, three-fourths of
the annual fee shall be paid. If the application is made during the period of
July first to September thirtieth, inclusive, on-half of the annual fee shall
be paid. If the first registration is made during the period of October first
to December thirty-first, inclusive, one-fourth of the annual fee shall be
paid,
(l ) The date of cancellation of the postage stamp of envelopes

containing money orders, checks or cash shall be considered as the date of
application in the appliance of the above tariff, except in the case of
improperly prepared applications, when the date of cancellation of the
postage stamp of the envelope containing the properly prepared application
shall be considered as the date of the application.
462
(m ) Tourists using or operating their own motor vehicles and

sojourning in the Philippine Islands for a period of fort-five days or less
shall be exempt from the payment of the above-stated fees of this section,
but if they remain in the Islands for any period longer than forty-five days,
they shall be required to pay one-tenth of the above-stated annual
horsepower and gross weight fees, on or before each first day of the month
subsequent to the expiration of the first forty-five-day period
aforementioned, while they remain in the Islands. They shall, however, be
required to register their motor vehicles, and shall pay the fees mentioned
under section nine of this Act for each number plate or tag issued
(n ) Any owner of a motor vehicle which is in storage, undergoing

repairs, or out of service for any other reason, may also be exempted from
payment of the registration fees previously mentioned under this section
for the period during which the said motor vehicle is out of service, but no
refund or reimbursement of registration fees or parts thereof shall be made
to any owner on account of a motor vehicle which is taken out of service
subsequently to the payment of said registration fees. The owner desiring
exemption under this subsection, shall make application for registration of
the motor vehicle as provided under section three of this Act. The
application shall also be accompanied by a properly accomplished affidavit
substantially in the following form:
“AFFIDAVIT FOR EXEMPTION FROM PAYMENT OF FEES FOR

REGISTRATION OF MOTOR VEHICLE WHILE IN STORAGE.
“I, ……………………………, residing at ………………………...

…..........................................., and holding cedula number ……………..,
issued at …………………, dated …………………, do hereby swear that I
am the owner of the motor vehicle described in the attached application for
registration, and that said motor vehicle has not been and will not be operated
on any public highway in the Philippine Islands during the period beginning
………………...……., and ending on or about …………………………”
Attested:…………...…………… Signed ……………...........................
One 20-centavo
documentary stamp
463
SEC. 5. Upon the receipt of such application and fee or affidavit, the
Director of Public Works shall cause the same to be registered or recorded
in a book or file to be kept by him for that purpose, which shall be known
as the “Motor Vehicle Register,” and in which such information shall be
set forth as will enable the motor vehicle and the owner thereof to be readily
identified. The Director of Public Works or his deputies shall issue to the
applicant free of charge, a numbered certificate of registration for each
separate motor vehicle and shall enter the number of such certificate in the
“Motor Vehicle Register:” Provided, however, That in case of exemption
under subsection (n ) of section four of this Act, both the certificate and the
“Motor Vehicle Register” shall be plainly marked or stamped substantially
after the following form:
“REGISTERED FOR STORAGE ONLY. MOTOR VEHICLE NOT TO

BE OPERATED ON PUBLIC HIGHWAYS UNDER THIS
CERTIFICATE.”
SEC. 6. Each such certificate of registration shall contain, in addition

to its number, the date of registration and all the information required to be
set forth in the application. The said certificate shall be preserved by the
owner as evidence of the registration of the motor vehicle described therein,
and shall be attached to and presented with subsequent applications for
renewal or transfer of registration.
SEC. 7. At all times, while using he public highways, every motor

vehicle of more than three wheels shall display in conspicuous places, one
in the front and one in the rear thereof, the identification number plates
described in sections eight and nine of this Act, and every motor vehicle of
less than four wheels shall display one such number plate in a conspicuous
place in the rear thereof. Such number plates shall be kept clean and cared
for, and shall be firmly affixed so that the numbers thereon may at all times
be visible and legible whether the motor vehicle is in motion or not:
Provided, however, That in case no number plates are available, the Director
of Public Works or his deputies may issue a written permit temporarily
authorizing the operation of any motor vehicle without such number plates.
464
Any person convicted of a violation of the provisions of this section

shall be punished by a fine of not less than ten nor more than two hundred
pesos.
SEC. 8. All number plates shall be of such color, size, and design as
may be selected and determined by the Director of Public Works, and shall
contain in Arabic numerals of a length of not less than one decimeter and
each stroke of which shall be not less than one centimeter in thickness, the
registration number assigned by the Director of Public Works or his deputies
under section five of this Act: Provided, That the Director of Public Works
or his deputies may issue to motor vehicles having three wheels or less a
number plate having Arabic numerals of a length not less than five
centimeters and a thickness not less than seven millimeters.
Each such number plate shall also bear small numerals or legends
indicating that the motor vehicle has been registered or re-registered for
the current year.
SEC. 9. (a ) The Director of Public Works shall cause the

aforementioned number plates to be prepared, and issued to owners of motor
vehicles registered under this Act, charging a fee of one peso for each
complete plate including the numerals indicating the year of registry.
(b ) In case the design of the number plate is such that the numerals
indicating the year of registry are in a detachable tag, the Director of Public
Works or his deputies may, in their discretion, issue the said tag only, for
subsequent re-registrations, charging a fee of fifty centavos for each tag
issued.
(c ) No identification number plates or tags shall be issued for motor

vehicles registered “For Storage Only” under subsection (n) of section four
of this Act, during the period for which exemption from payment of
registration fees is claimed thereunder.
465
(d ) In case an owner desires to change the status of registration of a

motor vehicle from a “private” to a “hire” or “garage” denomination, or
viceversa, the Director of Public Works shall issue upon request a new
certificate of registration and corresponding new number plates or tags
upon payment of a fee of two pesos for each such change, and of the fees
mentioned under subsections (a) and (b) of this section, for each new number
plate or tag issued: Provided, however, That if such change of status places
the motor vehicle in a classification under section four of this Act, requiring
a larger registration fee, then the owner shall pay a proportional part of
such difference of registration fees for the remaining portion of the year, in
accord with subsection (k) of section four of this Act, in addition to the
fees hereinbefore mentioned: And provided, further, that no refund or
reimbursement of fees or parts thereof shall be made to the owner, even if
such contemplated change of status corresponds with a smaller registration
fee: An provided, further, That no motor vehicle shall be registered under
more than one classification or denomination or status simultaneously.
SEC. 10. Whenever any motor vehicle is sold or any change in the
owner thereof to notify the director of Public works within seven days
from the date of the change of ownership, in writing, of such change,
giving the name, place, or residence and business address of such
purchaser or new owner, and the number and date of the certificate of
registration issued to cover the motor vehicle. Such notification shall be
accompanied by a fee of one peso and the Director of Public Works shall
cause the name, place of residence and business address of such
purchaser or new owner to be recorded in the “Motor Vehicle Register,”
in such a manner that the owner of any motor vehicle may at any time
readily be ascertained therefrom. Any statement indorsed on the back of
a certificate of registration issued under this Act shall be sufficient
evidence, for the purposes of this Act, of the ownership of the purchaser
or transferee named in such statement, if the same be signed by the
person in whose name the certificate was issued and if it complies
substantially with the following form:
466
…………………………..........
(Date)
“I have this day transferred my ownership of the motor vehicle

described on the face hereof to ……………………………………..…….
of ………………………..………………………………………………”
…………………………..........
(Signature)
Any person convicted of a violation of this section shall be punished

by a fine of not more than ten pesos.
SEC. 11. Upon proof satisfactory to the Director of Public Works or

his deputies, that any certificate of registration, number plate or tag issued
under the provisions of this Act has been lost or destroyed, he shall cause a
duplicate to be issued to the owner of such vehicle after payment of one
peso, for each certificate of registration so issued, and of the fees mentioned
under section nine of this Act for each number plate or number tag so
issued.
SEC. 12. (a ) Every dealer in motor vehicles may, instead of

registering separately each such motor vehicle owned by or controlled and
used and operated in his business by him or by his employees or agents,
make before the last working day of February of each year, application for
a general certificate of registration and general distinguishing number plates.
Such application shall contain whatever information may be required by
the Director of Public Works. The Director of Public Works, or his deputies,
if satisfied with statements in such application, may grant to the applicant
free of charge, one general certificate of registration (multiplicate is desired)
showing the name, place of residence, and business address of the applicant,
and that the same is a dealer in motor vehicles within the meaning of this
Act. Such dealer’s certificate shall further describe the general
distinguishing number plates delivered to said dealer, the kind, type, style,
or make of motor vehicles manufactured, sold or kept, or handled for sale
by him, and such other information as the Director of Public Works may
deem expedient. The general distinguishing number plates shall be issued
467
in such quantities as may be required by the applicant, upon payment of

ten pesos for each such general distinguishing number plate thus issued.
All motor vehicles manufactured, owned, controlled, or kept or handled
exclusively for sale or for demonstration for sale, but not for other service
by such applicant, shall thereafter be regarded as registered under such
general distinguishing number. Those kept or operated for hire or for his
private use, or for passenger or freight service in his business, shall be
separately registered under the preceding sections of this Act.
(b) No dealer’s number plate shall be displayed on any motor vehicle

operating on the public highways for a period longer than seven days
following the next working day after a purchase or other person or entity
has taken actual possession of said motor vehicle from the dealer.
(c ) The penalty for each violation of the provisions of subsection (b

) of this section shall be a fine of ten pesos each, against the owner of the
vehicle, and against the dealer concerned.
SEC. 13. Upon proof of loss of a certificate issued to a dealer, a

duplicate certificate may be issued to him under like conditions and after
payment of like fees as those set forth in section eleven of this Act, and
upon the request of such dealer additional duplicate distinguishing number
plates or tags may be issued to him after the fees fixed in section twelve of
this Act for each such duplicate have been paid.
SEC. 14. (a) the Director of Public Works shall cause to be prepared
a form, which shall be furnished free of charge upon request, and upon
which every person who desires hereafter to operate any motor vehicle as
a chauffeur shall answer under oath all questions asked and give all
power, and whether his senses of sight and hearing are normal.
(b) The Director of Public Works or his deputies are hereby authorized
in their discretion to require an applicant for a license as chauffeur to answer
468
such further questions or to submit to such an examination touching his

qualifications as chauffeur, as in the judgment of the Director of Public
works or his deputies, will best disclose the applicant’s fitness and
competency to operate motor vehicles.
(c) If after such examination, or without the same, the Director of

Public Works or his deputies believe the applicant to posses the necessary
qualifications and knowledge, they shall, upon the receipt of a fee of five
pesos, issue to such applicant a license to operate as a chauffeur, motor
vehicles of the kind, style, type, or make and power described in the
application, until the last working day of February next following, or until
such license is otherwise revoked. Each applicant for a license as chauffeur,
except an owner not operating for hire, shall upon notice that his
qualifications have been found satisfactory, and prior to the issuance of
said license, furnish the Director of Public Works or his deputies, three
copies of a recent and readily recognizable photograph of said applicant,
one copy of which shall be securely attached to the license, and two copies
of which shall be filed and kept as provided under section eighteen of this
Act. If the said Director or his deputies do not believe the applicant to be
a person qualified to operate motor vehicles, they shall not issue a license
as chauffer to such applicant, in which event the applicant’s fee shall be
returned to him.
(d ) Every license issued to operate a motor vehicle shall have a line

or place for the signature and the photograph of the licensee, and no license
issued shall be effective as an authorization to the person to whom issued
to operate a motor vehicle until after such person has written his usual
signature in the place provided for that purpose.
(e ) Every application for a renewal of chauffeur’s license, except in

case of an owner not operating for hire, shall be accompanied by three
copies f a readily recognizable photograph of the applicant, which
photograph shall have been taken not exceeding three and one-half years
prior to the date of application for renewal. Any license not renewed on or
before the last working day of February of each year shall become
delinquent. The penalty for renewal of a delinquent license shall be five
pesos, in the discretion of the Director of Public Works.
469
(f ) the Director of Public works may suspend for a period not

exceeding three (3) months or, after hearing, revoke any license issued
under the provisions of this Act, and may order any such license to be
delivered to him whenever he has reason to believe that the holder thereof
is an improper or incompetent person to operate motor vehicles, or is
operating or using a motor vehicle in, or as an accessory to, the practice or
commission of any unlawful act, or so as to endanger the public; and the
license so suspended or revoked shall not be reissued, unless upon
investigation, the Director of Public Works decides that the operator may
again safely be permitted to operate.
(g ) Appeals from the decision of the Director of Public Works on

the revocation of, or his refusal to renew, licenses under the provisions of
this section may be taken to the Secretary of Commerce and
Communications.
(h ) Any person who operates a motor vehicle without having

procured a license or while his license is suspended or revoked, shall be
punished by a fine of not less than fifty pesos nor more than two hundred
pesos, or imprisonment for not less than ten or more than thirty days, or
both fine and imprisonment, in the discretion of the court, for each offense.
(i ) Every operator of a motor vehicle owned or controlled by the

Government of the United States, the Government of the Philippine Islands
or any of its subdivisions, or any provincial, city or municipal government
within the Philippine Islands, shall be licensed in accord with the provisions
of this section with the exception that no license or delinquent fees shall be
collected therefor, and provided, that all licenses so issued shall bear the
words “For Government Vehicles Only” plainly marked or stamped in red
ink across the face thereof. A license so marked or stamped shall not
authorize an operator to operate a privately owned motor vehicle.
SEC. 15. The Director of Public Works or his deputies are further
authorized to issue temporary permits covering a period of six months, to
persons who are learning to operate motor vehicles, upon the payment of a
fee of one peso for each such temporary permit. No such permit shall
470
authorize the person to whom the same is issued to operate a motor vehicle
on any public highway, however, unless accompanied by some person
licensed under this Act to operate such motor vehicle. The license operator
acting as instructor shall be responsible and liable for any violation of the
provisions of this Act and for any injury or damage done by a motor vehicle,
or on account, or as a result of, the operation of a motor vehicle operated
by a beginner under his direction.
SEC. 16. (a ) Persons (including tourists) who have procured the

registration of one or more motor vehicles owned by them and not operated
for hire shall, if they desire themselves to operate such vehicles, make a
like application as provided in section fourteen hereof, and the Director of
Public Works or his deputies shall issue to such owners, licenses to operate
motor vehicles for their own private use upon payment of two pesos. If for
hire, they shall pay the fees required by and be subject to section fourteen
of this Act.
(b ) Tourists will not be required to present a personal cedula to

register their motor vehicles or to obtain a license, but are required, in lieu
of a cedula, to make a written statement on their applications, to the effect
that they are tourists and also as to the probable time they expect to remain
in the Islands.
(c ) Upon proof of loss of a license to operate motor vehicles a

duplicate license may be issued after payment of fees as follows:
For each duplicate chauffeur’s license …………. P 2.00
For each duplicate owner’s tourists, or

Student’s license……………….....………….. 1.00
SEC. 17. No license, whether to owners of motor vehicles or to

professional chauffeurs, to operate motor vehicles within the purview of
sections fourteen, fifteen, and sixteen of this Act shall be issued to any
person under sixteen years of age, and no person under sixteen years of age
shall be permitted to operate a motor vehicle upon any highway of the
Philippine Islands.
471
SEC. 18. The Director of Public Works shall cause to be prepared

and kept in his office in Manila a register, in which shall be recorded every
license issued to an owner or to a chauffeur, with such information, including
names, addresses, photographs and ages of the licensees, and the dates on
which their respective licenses were issued, as he may deem to be useful
and expedient. He shall likewise cause to be carefully filed away and
preserved, all applications for such licenses, in chronological, alphabetical,
or numerical order so that anyone of them may be promptly made accessible.
SEC. 19. No owner, dealer, proprietor of garage, chief of bureau,

head of office or other person or entity is permitted to engage, employ, or
hire any person to operate a motor vehicle unless the person whose
employment, engagement, or hire is contemplated, is a licensed chauffeur.
Any person violating this provision or employing a licensed chauffeur as
such, while his license is suspended or revoked shall upon conviction be
fined not less than fifty nor more than two hundred pesos: Provided, however,
That if the person convicted of a violation of this provision is engaged in
letting or renting motor vehicles to other persons or to the public for hire,
such person may be further punished by imprisonment for not less than six
months nor more than one year in addition to the fine aforesaid.
SEC. 20. (a ) No person operating a motor vehicle shall allow more

passengers in his motor vehicle than its fixed and registered carrying
capacity, and no operator shall permit any person or persons to ride the
running boards or mudguards of his motor vehicle for any purpose, except
for necessary adjustments of the motor or mechanism, or for collection of
fares by the conductor of a public passenger motor vehicle. In no case
shall such conductors remain on the running boards while not actually
making collections.
(b ) The Director of Public Works or his deputies shall, in accord

with rules to be determined and published by the Director of Public Works,
fix the maximum carrying capacity in passengers or freight, of all motor
vehicles with the exception of private passenger automobiles. The carrying
capacity thus fixed is to be entered on the certificate of registration and the
“Motor Vehicle Register” and thereby made of record, as will the Director
472
of Public Works or his deputies also fix and record in the same manner the
number of persons permitted on the front or driver’s seat of any motor
vehicle.
(c ) Any person violating any of the provisions of subsection (a ) of

this section shall be punished by a fine of not less than ten pesos nor more
than one hundred pesos, and in the discretion of the Director of Public
Works the operator’s license or the certificate of registration of the motor
vehicle concerned may be suspended for a period not to exceed three months.
(d ) The Director of Public Works or his deputies are furthermore

authorized at any time to examine and inspect any motor vehicle, in order
to determine whether the same is unsafe, improperly marked and equipped,
or otherwise unfit to be operated because of possible danger to the chauffeur,
to the passengers, or to the public; or because of possible excessive e damage
to the public highways, bridges, or culverts. If the Director of Public Works
or his deputies find any such motor vehicle to be dangerous, or capable of
causing excessive damage to the public highways, bridges, or culverts, as
aforesaid, he may refuse to register the same, or if the same be already
registered he may upon twenty-four hours notice to the owner or operator,
revoke such registration or suspend the force and operation thereof, until
the defects, improper equipment, or other cause of insecurity, danger or
excessive damage has been remedied. The action of the Director of Public
Works or his deputies under this section shall be communicated in writing
to the owner of the motor vehicle, and, if the motor vehicle be property of
the Government or any of its political subdivision, to the chief of the bureau
or office to which the motor vehicle in question belongs. If, after the
suspension or revocation of the registration of a motor vehicle, excessive
damage is caused to any public highway, bridge, or culvert as a result of
the operation of such motor vehicle, the owner of such motor vehicle, or
the person, or persons having control and authority over such motor vehicle
shall be punished for each offense by a fine of not less than fifty pesos nor
more than two hundred pesos for each motor vehicle operating after the
revocation of its registration or by imprisonment at hard labor not exceeding
three months, or by both such fine and imprisonment, in the discretion of
the court: Provided, That from the decision of the Director of Public Works
473
or his deputies regarding the state of security of a motor vehicle, or its

damaging effect upon public highways and bridges an appeal may be taken
to the Secretary of Commerce and Communications.
(e ) If, after the suspension or revocation of the registration of a

motor vehicle, any person is injured as a result of the operation of said
motor vehicle, the owner of such motor vehicle, or the person having control
and authority over such motor vehicle, shall be guilty of the offense
described in the first paragraph of article five hundred and sixty-eight of
the Penal code and shall be subject to the penalties therein prescribed.
SEC. 21. The provisions of this section shall be applicable to all

motor vehicles when upon the public highway:
(a) All passenger automobiles for hire shall have the approved
registered passenger capacity plainly marked in a conspicuous place,
preferably on the glass windshield thereof.
(b) All motor trucks, whether for passengers or freight, private, or

for hire, shall have the approved registered passenger and gross weight
capacities and the allowable rate of speed plainly marked in a conspicuous
place, preferably on this sides thereof.
(c) The total weight of a laden motor vehicle shall in no case exceed
eight metric tons (17,920 pounds) unless permission in writing, from the
Director of Public Works or his deputies, has been previously obtained.
(d) No metal tire of a motor vehicle shall be provided with dogs,

flanges, grooves, corrugations, ribs, strips, or present other than a smooth
surface in contact with the road.
(e) The maximum allowable gross weight of a motor vehicle shall

be so fixed by the Director of Public Works, or his deputies, that the
maximum allowable net carrying capacity placed at the center of the body,
the total load on any one wheel will not exceed the values given in the
following tables:
474
SOLID RUBBER OR METAL TIRES
Nominal width. Solid rubber or metal tires Pneumatic

Nominal diameter tires of
any
diameter
Inches Centimeters 32” 34” 36” 40”
Maximum gross load per wheel
2 ½ …..… 6.3 180 190 200 220 100
3.............. 7.6 355 375 400 445 200
3 ½ .....… 8.9 535 565 600 665 300

4……….. 10.1 710 755 800 890 400
4 ½ ….... 11.4 890 945 1,000 1,110 510
5……….. 12.7 1,165 1,135 1,200 1,335 650
5 ½ …… 14.0 1,292 1,322 1,400 1,555 810
6……..... 15.2 1,420 1,510 1,600 1,775 1,000
7…...….. 17.8 1,775 1,890 2,000 2,220 1,400
8…...….. 20.3 2,135 2,265 2,400 2,665 1,800
9……..... 22.8 2,490 2,645 2,800 3,110 2,270
10…...… 25.4 2,930 3,115 3,300 3,665 2,730
11…...… 28.0 3,330 3,540 3,750 4,165 3,200
12…...… 30.4 3,730 3,970 4,200 4,665 3,670
(f) No motor vehicle shall be operated on or along the public

highways with tires of different size or material from those described in
the certificate of registration therefor, not with wheel loads in excess of
those contemplated under paragraph (e ) of this section, unless permission
in writing from the Director of Public Works or his deputies for such change
or excess, has been previously obtained.
475
(g) In case an owner desires to change the size or material of his

tires, or to perceptibly change the size or capacity of the body or chassis,
subsequent to the registration of his motor vehicle, he shall present his
certificate of registration to the Director of Public Works or his deputies,
together with a request for a revision of gross weight rating. If in the
opinion of the Director of Public Works or his deputies, such contemplated
change of body, tires, or gross weight will not endanger the public safety,
or result in excessive damage to highways, bridges or culverts, the said
Director of his deputies shall in red ink revise the certificate of registration
and the “Motor Vehicle Register,” in accord therewith: Provided, That if
such contemplated revisions place a motor vehicle in a classification under
section four of this Act, requiring a larger gross weight fee, then the applicant
shall pay a proportional part of such difference of fees for the remaining
portion of the year, in accord with subsection (k ) of section four of this
Act: And provided, further, That no refund or reimbursement of fees or
parts thereof shall be made to the owner, even if such contemplated revision
of rating corresponds with a smaller gross weight fee.
(h) No motor vehicle shall be operated on or along the public

highways with solid rubber tires of less than two centimeters thickness,
nor with deflated pneumatic tires, for a distance greater than necessary to
properly park the vehicle for repairs.
(i) The owners of the motor vehicles shall be liable for any and all
damages to the highways, bridges, and culverts, which damages may be
recovered by the Government of the province wherein the damage occurred,
or by the Insular Government, in a court of competent jurisdiction, without
prejudice to further prosecution under any other provisions of this Act.
(j) The Director of Public Works or his deputies shall levy and
collect a special additional fee in accord with a tariff and regulations to be
established by the Director of Public Works, for each special written permit
issued under subsection (b), (d ), and (f ), of this section and under section
twenty-two hereof. All motor vehicles operating under such special written
permits shall bear a special distinguishing identification mark to be
determined by the Director of Public Works; and a copy of the special
written permit shall be entered in the “Motor Vehicle Register.”
476
(k) Violation of any of the provisions of this section shall be

punished y fining the owner of the motor vehicle, not less than ten pesos
nor more than fifty pesos for the first and second offense, and for third
offense by revoking the registration of the motor vehicle and fining the
owner of the motor vehicle two hundred pesos or by imprisonment for a
term not to exceed fifty days or by both such time and imprisonment.
SEC. 22. Except in cases of a special permit in writing from the

Director of Public Works, all motor vehicles, shall carry their loads so
distributed that no part of same shall extend beyond the sides of the motor
vehicles, and in no case shall the width of the motor vehicle exceed two
and twenty-five one hundredth meters.
SEC. 23. (a ) Every person having motor vehicles for hire and every
proprietor of a garage shall keep, or cause to be kept, in a book having
blank columns, headings, and spaces, to be prescribed by the Director of
Public Works, a correct, exact, and legible record in ink of every motor
vehicle which leaves his place of business or garage, showing the registration
number an exact time of the vehicle’s departure and return, the name of the
chauffeur operating it, and such other information as the Director of Public
Works may require. Such book shall be kept in a convenient place in said
place of business or garage and shall during all regular business hours be
open to examination by the Director of Public Works or his deputies, and
any police officer of the city or municipality within which the garage is
situated.
(b ) Failure to provide such book or to keep correct and exact records

therein as required in this section shall upon conviction subject the offender
to a penalty of not less than five nor more than one hundred pesos. Upon a
second conviction of such offense the Director of Public Works shall revoke
the certificates of registration of all motor vehicles owned or controlled by
such offender.
(c) Prior to leaving the garage or place of business, every operator

of a passenger truck for hire shall further be provided by the owner or
manager, with a “trip identification card” for each separate trip. The trip
identification card shall state the name and place of business of the owner;
477
the name and address of the person or firm ordering or requesting the
services of the motor vehicle; the date and time of leaving the garage or
place of business; the registration number of the motor vehicle; and the
name of the chauffeur or operator. No passenger truck for hire shall be
permitted to operate upon or occupy the public highways without the above
described trip identification card: Provided, however, That the provisions
of this subsection shall not apply to such passenger trucks for hire as are
operated under and subject to the provisions of the public utilities acts.
The penalty for violation of the provisions of this subsection shall be a fine
of not less than twenty-five nor more than one hundred pesos.
SEC. 24. (a ) No owner or other person in whose name one or more

motor vehicles have been registered under this Act shall transfer a number
plate from one motor vehicle to another motor vehicle nor lend to any
other person any such certificate of registration, or any number plate or
tag, nor give away or sell such certificate, number plate, or tag, except
upon the transfer or change of ownership or possession of the motor vehicle
which is registered in such certificate, or for which such number plate or
tag was issued, and no person shall borrow such certificate, number plate,
or tag, nor buy or purchase the same except upon like transfer of ownership
of a motor vehicle as above contemplated. No person to whom a license or
permit to operate a motor vehicle has been issued under this Act shall lead,
sell, or give away, and no person shall borrow, buy, or purchase such license
or permit.
(b ) No certificate of registration, number plate, tag, permit, or license

issued to or in favor of any person under this Act, shall be made use of by
any other person, or for any other motor vehicle than that owned by or in
the lawful possession of the person using said certificate, number plate, or
tag, and for which said certificate, number plate, or tag, was issued under
this Act.
(c ) Whenever any owner, proprietor of a garage or repair shop,

dealer, or other person or entity makes any repair or change in a motor
vehicle involving the exchanging, elimination, effacing, or replacing of
the manufacturer’s serial number or the motor number, or the part or parts
upon which such number is stamped, he shall within seven days after
478
effecting such change or repair, notify the Director of Public Works in

writing, of the character of the change or repair thus accomplished, the
registration number and date, and the new manufacturer’s number or motor
number of the motor vehicle thus repaired or changed.
(d ) Every person violating the foregoing provisions of this section,

and every person found guilty of stealing any certificate, number plate,
tag, permit or license issued under this Act, or taking and carrying away
the same without the knowledge of the person lawfully entitled thereto or
against the will of such person, shall be punished for each offense by a fine
of not less than five nor more than two hundred pesos or imprisonment for
not more than six months.
SEC. 25. Every person using for any purpose of deceit or evasion a
number plate or tag not issued under authority of this Act, or affixing such
number plate or tag to a vehicle for the purpose or with the intent of using
the same as and for a number plate or tag lawfully issued hereunder, and
every person using a number plate or tag lawfully issued hereunder, for a
vehicle other than the one for which such number plate or tag was issued
shall be subject to a penalty of not less than five nor more than two hundred
pesos or imprisonment for not more than six months.
SEC. 26. (a ) The maximum speed of motor vehicles operated upon

any public highway or bridge shall not exceed the respective values given
in the following tabulation:
Gross weight Pneumatic tires Solid rubber tires Metal tires

Passenger automobiles Reasonable 20 kms. 12 kms. (8
of any weight and speed. (12.5 miles) per miles) per hour.
trucks not exceeding hour.
2,300 kilos,
2,300 to 5,000 25 kms. 18 kms. 12 kms. (8

ks. inclusive (16 miles) per (11 miles) per miles) per hour.
hour. hour.
5,001 to 8,000 20 kms. 15 kms. (9 10 kms.

ks. inclusive (12.5 miles) per miles) per hour. (6 miles) per
hour. hour.
479
Upon conviction for exceeding any of the speed limits above

mentioned in this subsection, the Director of Public Works may in his
discretion require the motor vehicle in question to be equipped permanently
either with a reliable speedometer acceptable to the Director of Public
Works, or with a properly adjusted and reliable engine governor sealed by
the Director of Public Works or his deputies, so as to effectively prevent
future overspeeding of the motor vehicle. Any subsequent adjusting,
repairing or tampering with an engine governor so sealed by the Director
of Public Works or his deputies shall be immediately reported to the Director
of Public Works in writing by the owner, on penalty of suspension of the
certificate of registration for a period not to exceed six months in the
discretion of the Director of Public Works.
(b ) No person shall operate a motor vehicle on any highway in these

Islands recklessly or at a rate of speed greater than that indicated in the
foregoing tabulation, nor faster than is reasonable and proper, having regard
to the width, traffic, grades, crossings, curvatures, visibility and other
conditions of the highways and to the conditions of the atmosphere and
weather, or so as to endanger the property or the safety or rights of any
person or so as to cause excessive or unreasonable damage to the highway.
If the rate of speed of any motor vehicle operated within any city or the
poblacion limits of any municipality exceeds thirty kilometers (19 miles)
per hour such rate of speed shall be prima facie evidence that the person
operating same is operating at a rate of speed greater than is reasonable
and proper, and in violation of the provisions of this section. If the rate of
speed of a motor vehicle operated on any public highway of the Philippine
Islands, where the operator’s view of the road and traffic is obstructed
when approaching a crossing or intersecting public highway or when
traversing a bridge, or a steep descent, or a curve in the highway, or when
meeting any other motor vehicle or conveyance moving in an opposite
direction, exceeds twenty-five kilometers (sixteen miles) per hour, such
rate of speed shall be prima facie evidence that the person operating such
motor vehicle is operating the same at a rate of speed greater than is
reasonable and proper, and in violation of the provisions of this section. If
the rate of speed of a motor vehicle operated upon any highway of the
Philippine Islands in passing any street railway car that is stationary or
480
about to stop, on the same side of the car on which passengers are ordinarily
received and discharged exceeds fifteen kilometers (9 miles) per hour, such
rate of speed shall be prima facie evidence that the person operating such
motor vehicle is operating the same at a rate of speed greater than is
reasonable and proper and in violation of the provisions of this section.
(c ) No person shall unreasonably obstruct or impede the passage or

right of travel of any motor vehicle or operator thereof and no operator
shall unreasonably obstruct the passage of any other vehicle or person on
any highway. The operator of any motor vehicle or the driver of any other
vehicle which is traveling at a rate of speed less than the limits mentioned
under subsection (a ) and (b ) of this section shall, upon signal, move to the
left of the center of the road at the earliest opportunity, to allow an overtaking
vehicle to pass.
(d ) A person or vehicle when approaching a highway intersection,

shall have reasonable right of way over all persons or vehicles approaching
from the right, but shall yield reasonable right of way to all persons or
vehicles approaching from the left. Every person found guilty of violating
the foregoing provisions of this section shall be punished by a fine of not
less than five nor more than fifty persons or by imprisonment for not more
than six months or by both such fine and imprisonment.
SEC. 27. Unless a different course of action is required in the interest

of the safety and security of life, person, or property, ever person operating
a motor vehicle or guiding an animal-drawn vehicle on a highway shall
turn to the left when meeting person or vehicles coming toward him, and to
the right when overtaking persons or vehicles going in the same direction,
and when turning to the right in going from one highway into another every
vehicle shall be conducted to the left of the center of the intersection of the
highway, thus:
Any person found guilty of a violation of the provisions of this section

shall be punished by a fine of not less than five nor more than fifty pesos.
SEC. 28. No person is permitted to operate a motor vehicle upon or

along any sidewalk, walk, path, alley, or other part or section of a highway
481
set aside or reserved for pedestrians. Every violation of this section shall
subject the offender to a fine of not more than ten pesos.
SEC. 29. Any operator of any motor vehicle which is for let or hire
to the public, who drinks any intoxicating beverage while on duty, and
every person operating a motor vehicle upon a highway while under the
influence of liquor shall be punished by a fine of not less than five nor
more than two hundred pesos, or by imprisonment for not less than fifteen
days nor more than six months, or by both such fine and imprisonment.
SEC. 30. In the event that any accident should occur as a result of
the operation of a motor vehicle upon a highway, the operator is required
to come to a stop immediately and if requested by any person present, to
give his true name and address and also the true name and address of the
owner of the motor vehicle, and the driver of any other vehicle concerned
in the accident shall also be required to come to a stop and give his true
name and address and the name and address of the owner of the vehicle, if
requested, and all other persons present or witnessing the accident shall
giver their names and addresses if requested.
SEC. 31. Every motor vehicle operated on any public highway shall
be provided with brakes adequate and efficient at all times and with a horn
or other signaling device approved by the Director of Public Works or his
deputies. No horn or signaling device emitting sounds of an exceptionally
loud or startling or disagreeable nature shall be approved by the Director
of Public Works or his deputies for any purpose other than police patrol
wagons, fire wagons, and engines, ambulances, and automobiles and
motorcycles especially designated and assigned by the Director of Public
Works for the purpose of enforcing the provisions of this Act.
SEC. 32. Whenever it is necessary for the safety of the public or

traffic, every operator shall sound his horn as a warning and also before
coming to crossing or intersections of public highways, where his view is
obstructed.
SEC. 33. When meeting or overtaking persons or vehicles every

operator of a motor vehicle shall give timely notice and warning of his
482
proximity by sounding his horn. Such warning should be sounded when

the operator, having regard to the speed at which he is traveling, is still at a
safe distance from the person or vehicle about to be met or overtaken and
before the motor vehicle has drawn opposite to or abreast of such person
or vehicle, the intent of this provision being the avoidance of a warning
within such short distance that, owing to its nearness and suddenness, it is
likely to cause fright or to startle the person, horse, or other animal which
is being met or overtaken.
SEC. 34. Every motor vehicle of more than one meter of projected
width, in use on any public highway, whether in motion or not, shall bear
two lamps visible from the front one on each side, which not later than
one-half hour after sunset and until at least one-half hour before sunrise,
shall both be lighted. While the vehicle is in motion on a level the lights
shall render the person of a man dressed in dark clothing visible at a distance
of not less than thirty meters ahead and the light thrown forward or ahead
of the motor vehicle shall be white light. Additional lamps and lights may
be carried. The use of a headlight or headlights which concentrate and
project the light or any portion thereof into a beam, unless said light is so
adjusted or equipped that the projected beam of light therefrom shall not
be uncomfortably visible for more than one meter above the surface of the
highway at a distance of twenty meters or more, is prohibited within the
limits of cities, municipalities or barrios and on any highway when less
than fifty meters from an approaching vehicle. Every motor vehicle shall
further, during the hours aforesaid, bear in the rear a lamp throwing a white
light upon the number plate issued for such vehicle, which light shall render
the number legible for a distance of at least eighteen meters in the direction
from which such motor vehicle is proceeding. The hours herein fixed within
which such lamps shall burn shall not exempt operators from the obligation
of lighting such lamps or causing the same to be lighted at earlier or later
hours or times, when on account of atmospheric or weather conditions or
other phenomena, the use of such motor vehicles upon public highways
might otherwise be dangerous or unsafe. Every motor vehicle of less than
one meter of projected width shall be subjected to the preceding provisions
of this section, except that but one head lamp and one tail lamp will be
required thereon. Additional lamps may be carried provided they comply
with the preceding provisions of this section.
483
Every other vehicle, of whatever style, kind, make, character, or

or not, shall bear one or more lights so arranged that same shall be visible
from the front and the rear of such vehicle. The provisions of this section
shall not apply to vehicles parked or standing on well lighted streets of
cities and municipalities.
SEC. 35. Every person operating a motor vehicle upon a public

highway shall, on signal by any police officer, and by raising the hand, or
on request, or call, or cry from any person, riding driving, or leading a
horse or other animal thereon, bring such motor vehicle immediately to a
stop, and, if traveling in an opposite direction, remain stationary so long as
may be reasonably necessary to allow such horse or animal to pass, and, if
traveling in the same direction, use reasonable caution in passing such horse
or other animal, and if such horse or other animal appear to be badly
frightened, the operator shall cause the motor of his vehicle to cease running
so long as may be reasonably necessary to prevent accident and to insure
the safety of others, and shall render assistance, if requested to enable the
person in charge of such horses or animals to pass with them. In approaching
or passing a car of a street car or other railway which is stopping to allow
passengers to alight or embark, the operator of every motor vehicle shall
slow down and, if necessary for the safety of the public come to a full stop.
No person shall unreasonably or maliciously call upon the operator of a
motor vehicle to stop.
SEC. 36. The provision of sections twenty-six, thirty, and thirty-five

of this Act shall not be applicable to ambulances nor to police patrol wagons,
nor to fire wagons and engines, nor to automobiles or motorcycles especially
designated and assigned by the Director of Public Works for the purpose
of, and while being used for, the enforcement of this Act. This exemption
is not, however, to be construed to authorize or condone uselessly or
unnecessarily reckless or fast operation of any of the motor vehicles
mentioned in this section, nor exempt from liability under this Act, any
operator of such motor vehicle for uselessly or unnecessarily fast or reckless
operation.
484
SEC. 37. All motor power shall be stopped in every motor vehicle
whenever the same is unattended on any highway. Whenever a motor vehicle
passes through thickly populated districts of any municipality or barrio or
through the streets of any city the “muffler,” if the vehicle be propelled by
an internal combustion motor, shall not be cut out or disconnected and no
unnecessary noises of any kind shall be given off, emitted, caused, or made
by any motor vehicle at the times or in places in this section described.
SEC. 38. No smoke shall be given or emitted by any motor vehicle

in unreasonably or annoying quantities while the same is in or is passing
through the streets of any city or the thickly inhabited portions of any
municipality or barrio in the Philippine Islands, or in any other place where
the same shall constitute a nuisance.
SEC. 39. No person shall operate, use, play, tamper, or interfere

with a motor vehicle without the permission of the owner. No chauffeur
shall use or operate a motor vehicle without proper authority from the owner
of said motor vehicle.
SEC. 40. No person shall drop, place, scatter, or throw, or cause to

be dropped, placed, scattered, or thrown upon any highway, any tacks, nails,
wire, scrap metal, glass, crookery, or any other substance or thing injurious
to the feet of persons or animals, or to the tires or wheels of vehicles.
SEC. 41. Every operator who refuses, after being requested by the
Director of Public Works or his deputies, or by any police officer, to show
the license or permit issued to such operator, to operate a motor vehicle,
knowing the official character of the person making such request, and every
person found guilty of violation of sections thirty-one, thirty-two, thirty-
three, thirty-four, thirty-five, thirty-seven, thirty-eight, thirty-nine and forty
of this Act shall be punished by a fine of not less than five pesos nor more
than two hundred pesos.
SEC. 42. The conviction of any person of any offense under this Act
shall not bar prosecution of other offenses in this Act or elsewhere defined
and penalized which may have been committed by such person concurrently
485
with the commission of the offense of which he was convicted or in doing

the act or series of acts which constituted the offense of which he was
convicted.
SEC. 43. Whenever any licensed operator or chauffeur has been

three times in one year convicted of the violation of any one or more
provisions of this Act, or of any regulations lawfully issued or prescribed
by the Director of Public Works, the latter may, in his discretion, suspend
or revoke the license of the person convicted for a period not to exceed two
years.
SEC. 44. It is hereby made the duty of every clerk of Court of First
Instance in these Islands to certify to the Director of Public Works at Manila
every conviction of any person of any and every violation of this Act which
may have taken place in such court, giving the name of the person so
convicted, his address, the number of his license or of the certificate of
registration of his vehicle, and the date thereof, and briefly the offense of
which he was convicted. Similarly it shall be the duty of every such clerk
to certify the fact of every judgment for damages or injury found against
any owner or chauffeur and based upon any of the provisions of this Act
whether penal in their nature or merely declaratory of the law of the road.
Like certifications shall also be made to the Director of Public Works, by
justices of the peace in these Islands, or by the judge of any municipal
court vested with jurisdiction to try such cases, of similar convictions or
judgments found by such justices of the peace or municipal judges. For
certifying convictions or judgments no fee shall be demanded or paid.
SEC. 45. In the discretion of the Director of Public Works public

notice may be given of the certificates, permits, and licenses issued,
suspended or revoked and of motor vehicles transferred during such week
under the provisions of this Act. Such public notice shall state the name
and address of the owner of the certificate, permit or license, the number
thereof, the date of issue, the number shown on the number plates in proper
instances, the date of suspension or revocation with the cause thereof, and
the period of suspension, if the act made public is a suspension, and such
further information as will, by being made publicly known, tend to aid and
assist in the efficient enforcement of the provisions of this Act.
486
SEC. 46. All the applications, certificates, permits, licenses, transfers,

convictions, notifications, suspensions, revocations, and other documents
or records herein contemplated, shall be arranged, noted, compiled, entered
or recorded as the Director of Public Works shall prescribe with a view of
making and keeping the same and each and all of them as accessible as
possible to and for persons and officers properly interested in the same. To
this end the Director of Public Works is authorized to prescribe and provide
from funds appropriated for the administration of this Act, such index,
files and other systems as will best accomplish desired result, and to issue
such reasonable regulations governing the search and examination of the
documents and records above mentioned as will be consistent with their
availability to the public and their safe and secure preservation.
SEC. 47. The Director of Public Works is hereby authorized with

the approval of the Secretary of Commerce and Communications to
designate as his agent and deputies, district engineers or provincial or
municipal treasurers at such places and offices as he may deem expedient
to assist in carrying out the provisions of this Act. And each and every
district engineer or provincial or municipal treasurer so designated is hereby
vested with all the power and authority which is conferred by this Act upon
the Director of Public Works or his deputies, as defined in subsection (o )
of section one of this Act. And the Director of Public Works is hereby
authorized and empowered to formulate and issue with approval of the
Secretary of Commerce and Communications such administrative rules and
regulations as may be found necessary to govern his agents and deputies
and to give full effect to the provisions of this Act.
SEC. 48. Every person who falsely or fraudulently represents himself

to be the person named in a license to operate motor vehicles issued under
this Act; every person knowingly using or attempting to use a license falsely
and fraudulently purporting to be issued under this Act; every person falsely
and fraudulently making, issuing, or preparing any license or certificate in
imitation or similitude of licenses or certificates issued under this Act; e
very person falsely or fraudulently making or preparing a certificate or
license not in imitation or similitude of certificates or licenses issued under
this Act and using or intending to use the same as and for a legal certificate
487
or license, or with intent to sell or otherwise dispose of the same to another;

every person falsely or fraudulently representing as valid and in force any
certificate or license issued under this Act which has been revoked or the
operation and force of which has been suspended, and using or attempting
to use the same or disposing or intending to dispose of the same to another
as and for a certificate or license in full and legal force and effect; every
person who knowingly and with intent to deceive makes one or more false
or fraudulent statements in an application for a license under this Act to
operate motor vehicles or in an application for the registration of motor
vehicles; and every person who in any manner falsely or fraudulently
represents himself to be a licensed operator of motor vehicles, shall upon
conviction be punished by a fine of not less than twenty-five pesos nor
more than two hundred pesos or by imprisonment for not more than two
years.
SEC. 49. The collection of all fees, taxes, fines, etc., under the
provisions of this Act, shall be made in accordance with regulations to be
prescribed jointly by the Director of Public Works and the Collector of
Internal Revenue with the joint approval of the Secretary of Commerce
and Communications and the Secretary of Finance.
All moneys collected under the provisions of this Act shall be covered
into the Insular Treasury to create a special fund for the maintenance of
provincial and Insular roads and bridges, as well as the maintenance of the
streets and bridges in the cities of Manila and Baguio, to be allotted by the
Secretary of Commerce and Communications to the different provinces
and the cities of Manila Baguio, in the following proportions:
Twenty per cent in proportion to the population of the province or

city according to the 1918 census.
Twenty per cent in proportion to the combined length of first and

second class roads maintained throughout the previous year in the province
or city.
Twenty per cent in proportion to the land area of the province or city.
488
Twenty per cent in proportion to the number of motor vehicles owned

or customarily operated in the province or city.
Twenty per cent to be allotted by the Secretary of Commerce and

Communications upon recommendation of the Director of Public Works
for the maintenance of important roads supporting heavy motor vehicle
traffic.
SEC. 50. (a ) The Director of Public Works is hereby authorized to

acquire, from funds appropriated for the administration of this law,
designate, and assign, with the approval of the Secretary of Commerce and
Communications, such automobile, motorcycles, equipment, or accessories,
as may be deemed necessary to secure enforcement of the provisions of
this Act, ;and the Director of Public Works and his deputies are hereby
authorized to make arrests for violations of the provisions hereof, and to
use all reasonable means within their power to secure enforcement of the
provisions of this Act.
(b ) The appointment subject to the provisions of Act Numbered

Twenty-eight hundred and three, section two, covering section seventy-
nine (d ) of the Administrative Code, and the employment from funds
appropriated for the administration of this Act, of such officers, clerks, and
other employees as may be necessary to be included in the personnel of the
Bureau of Public Works to carry out the provisions and purposes of this
Act, is hereby authorized.
SEC. 51. No provincial, city or municipal authority shall regulate or

restrict the rate of speed or allowable gross weight of motor vehicles within
their respective jurisdictions otherwise than in conformity with the
provisions of section twenty, twenty-one and twenty-six of this Act:
Provided, That the Director of Public Works or his deputies may limit the
gross weight and maximum speed of any vehicle crossing a bridge or ferry,
or operating on any designated section of a highway to a value consistent
with the safety or preservation of such bridge or ferry or highway.
SEC. 52. Every constabulary officer and every city or municipal

police officer is hereby given authority, and it is hereby made the duty of
489
all such officers to prevent violations of this Act, and to carry out the police
provisions hereof within their respective jurisdictions.
SEC. 53. The provisions of this Act control, as far as they apply, the
registration and operation of motor vehicles, and the licensing of owners,
dealers, and chauffeurs, and the carrying of lights on all vehicles. Act
Numbered Twenty-one hundred and fifty-nine, entitled “An Act to regulate
motor vehicle traffic in the Philippine Islands, to provide for the registration
of motor vehicles and the licensing of operators, and to require all vehicles
on highways to carry lights, and for other purposes,” as amended by Acts
Numbered Twenty-two hundred and fifty-six, Twenty-three hundred and
eighty-nine, Twenty-five hundred and eighty-seven, Twenty-six hundred
and thirty-nine and Twenty-nine hundred and sixty-five are hereby declared
to be and are superseded and repealed in their entirety, from the date on
which this Act becomes effective. Such parts of subsection (i ), (n), and (u
) of section eight of Act Numbered Twenty-seven hundred and seventy-
four as amended by Act Numbered Twenty-nine hundred and sixty-five,
and of section twenty-one hundred and fifty-one of Act Numbered Twenty-
seven hundred and eleven, as are contrary to the provisions of this Act, are
hereby declared to be and are superseded and repealed from the date on
which this Act becomes effective. All other acts or parts of acts contrary to
the provisions of this Act, and all ordinances, resolutions, regulations,
restrictions, or other provisions of any city, municipality, board, authority,
or person, in conflict with the provisions of this Act are hereby declared to
be and are superseded and repealed from the date on which this Act becomes
effective. The certificate of registration issued under the provisions of this
Act for any motor vehicle shall, while the same is effective and has not
been suspended or revoked, authorize such motor vehicle to be used and
operated on all public highways in any province, city, or municipality of
the Philippine Islands. Every license issued under the provisions of this
Act to any operator shall entitle the person to whom issued, while the same
is effective and not suspended or revoked, to operate the motor vehicles
described in such license in any province, city or municipality of the
Philippine Islands. No further fees than those fixed in this Act shall be
exacted or demanded by any public authority of these Islands for the
operation or use of any motor vehicle on any public highway, bridge or
490
ferry, or for the operation of any motor vehicle by the owner thereof:
Provided, however, That nothing in this Act shall be construed to exempt
any motor vehicle from the payment of any lawful and equitable Insular,
local or municipal property tax imposed thereupon: And provided, further,
That any provincial board, city or municipal council or board, or other
competent authority may exact and collect such reasonable and equitable
toll fees for the use of the bridges and ferries, within their respective
jurisdictions, as may be authorized and approved by the Secretary of
Commerce and Communications, and also for the use of the public roads,
upon authorization by the Governor-General and the recommendation of
the Secretary of Commerce and Communications, but in all such cases, the
approval schedule of tolls shall be posted in a conspicuous place at each
toll station: And provided, further, That municipal councils are authorized
and empowered to prescribe reasonable regulations and nominal fees not
inconsistent with this Act, for the conduct, control, and operation of garages,
and to determine where and how vehicles may park upon or occupy, while
not in use, the public streets or places.
SEC. 54. This Act shall take effect on its approval and shall apply to
the nineteen hundred and twenty-two registration of motor vehicles and to
subsequent years: Provided, That owners of motor vehicles which, prior
to the approval of this Act, have been registered under previous Acts or
city or municipal ordinances, for the year nineteen hundred and twenty-
two shall be given an extension of time for re-registration under the
provisions of this Act for the fiscal year nineteen hundred and twenty-two,
until the last working day in the month of June, nineteen hundred and twenty-
two, without becoming delinquent, and such owners shall be allowed credit
and may have deducted by the Director of Public Works or his deputies the
amount of fees paid by them under such laws and ordinances for the year
nineteen hundred and twenty-two, and said owners shall in case the
registration fees stipulated under this Act are in excess of the amount already
paid as fees for nineteen hundred and twenty-two under said Acts or
ordinances, be required to pay to the Director of Public Works or his
deputies, an amount equal to such difference or excess of fees: And provided,
further, That no actual refund or reimbursement of fees or parts thereof
shall be made to the owner, even if the fees already paid under previous
491
Acts or ordinances exceed those stipulated under this Act: And provided
further, That the credit allowed under this section shall be taken into account
in the allotment of funds to provinces and cities under section forty-nine of
this Act: And provided, finally, That the provisions of this section shall
apply in like manner to the fees for licensing of operators and chauffeurs.
492
ACT NO. 3064
AN ACT TO AMEND SUBSECTION (C) OF SECTION FOURTEEN OF

ACT NUMBERED THREE THOUSAND AND FORTY-FIVE,
REDUCING THE FEE FOR THE ISSUANCE OF A LICENSE TO
OPERATE MOTOR VEHICLES TO TWO PESOS

SECTION 1. Subsection (c) of section fourteen of Act Numbered

Three thousand and forty-five is hereby amended to read as follows:
“(c) If after such examination, or without the same, the Director of Public
Works or his deputies believe the applicant to possess the necessary
qualifications and knowledge, they shall, upon they receipt of a fee of two
pesos, issue to such applicant a license to operate, as a chauffeur, motor
vehicles of the kind, style, type, or make and power described in the
application, until the last working day of February next following, or until
such license is otherwise revoked. Each applicant for a license as chauffeur,
except an owner not operating for hire, shall, upon notice that his
qualifications have been found satisfactory, and prior to the issuance of
said license, furnish the Director of Public Works or his disputes, three
copies of a recent and readily recognizable photograph of said applicant,
one copy of which shall be securely attached to the license, and two copies
of which shall be filed and kept as provided under section eighteen of this
Act. If the said Director or his deputies do not believe the applicant to be a
person qualified to operate motor vehicles, they shall not issue a license as
chauffeur to such applicant, in which event the applicant’s fee shall be
returned to him,”
493
ACT NO. 3116

PHILIPPINE ISLANDS, SEVENTY THOUSAND SHARES OF
THE CAPITAL STOCK OF THE MANILA RAILRAOD
COMPANY OF THE PHILIPPINE ISLANDS, AND TO PROVIDE
FUNDS FOR PAYING THE PRICE OF SAID SHARES


to subscribe for and purchase on behalf of the Government of the Philippine
Islands, whenever the financial situation of the Government permits it,
seventy thousand shares of the capital stock of the Manila Railroad Company
of the Philippine Islands, of the par value of fourteen million pesos.
SEC. 2. The Manila Railroad Company of the Philippine Islands shall

expend these funds exclusively for the construction of railroad lines, and
especially for the completion of the lines between Aloneros, Tayabas, and
Pamplona, Camarines Sur; between Bauang South and San Fernando, La
Union; and between San Quintin and Tayug, Pangasinan.
SEC. 3. Said sum of fourteen million pesos shall be paid in amounts

of not less than two million pesos each year until fully paid, and the first
payment shall be made on the date of the execution of the subscription
contract.
SEC. 4. The sum of fourteen million pesos is hereby appropriated

out of any funds in the Insular Treasury not otherwise appropriated for
investment in the manner provided in section three hereof: Provided, That
this sum shall not be set up on the books of the Insular Auditor until totally
or partially released by the Governor-General.
494
ACT NO. 3128
AN ACT TO AMEND SECTION TWENTY-ONE HUNDRED AND

FORTY-TWO OF ACT NUMBERED TWENTY-SEVEN
HUNDRED AND ELEVEN, BY PROVIDING THAT ALL
COLLECTIONS BELONGING TO THE ROAD FUND SHALL
ACCRUE TO THE TREASURIES OF THE SUBPROVINCES

SECTION 1. Section twenty-one hundred and forty-two of Act

Code of nineteen hundred and seventeen, is hereby amended to read as
follows:
SEC. 2142. Funds pertaining to subprovince. – Seventy per centum

of all provincial taxes, fines, or other revenue collected in any subprovince
or by reason of any right originating therein shall accrue to the treasury of
such subprovince for the sole use and benefit thereof. The remaining thirty
per centum of such collections shall accrue to the general fund of the
province: Provided, however, That the collections belonging to the road
tax of any subprovince shall accrue in their entirety to the treasury of such
subprovince.
“There shall also accrue to the treasury of a subprovince, for the sole
use and benefit of such subprovince, seventy per centum of the internal
revenue apportioned to the province in respect of the number of inhabitants
contained in the subprovince, except so far as the road fund is concerned,
which in accordance with this section shall accrue entirely to the
subprovince.”
SEC. 2. All Acts and provisions of law inconsistent with the provisions
of this Act are hereby repealed.
495
ACT NO. 3188
AN ACT AUTHORIZING AND DIRECTING THE GOVERNOR-

GENERAL AND THE MANILA RAILROAD COMPANY OF THE
PHILIPPINE ISLANDS TO MAKE AN INVESTIGATION AND
SURVEY AND SUBMIT THEIR RECOMMENDATIONS ON
THE ESTABLISHMENT OF A RAILROAD LINE IN THE
PROVINCES OF LEYTE AND ORIENTAL NEGROS, AND
APPROPRIATING FUNDS FOR THIS PURPOSE


to take through the Manila Railroad Company of the Philippine Islands,
the necessary steps for the investigation and survey of a plan for the
construction and operation of a railroad line in the Provinces of Leyte and
Oriental Negros. The plan consists in running a line from the municipality
of Tacloban, as point of departure, to the municipality of Carigara and
thence, passing through the municipality of Capoocan and lands of the
municipality of Leyte, to the municipality of Ormoc, with a branch to the
municipality of Palompon. From Ormoc to Baybay, via Albuera, and from
Baybay across the island to Abuyog; from Abuyog, passing through the
jurisdictional territories of the municipalities of La Paz, Dulag, Burawen,
Dagami, Tanawan, Pastrana, and Palo, back to the pueblo of Tacloban.
SEC. 2. The Manila Railroad Company of the Philippine Islands

shall submit to the Philippine Legislature, through the Governor-General,
the report of its investigation and survey, together with its recommendations,
in accordance with the provisions of the preceding section, on or before
October ûfteenth, nineteen hundred and twenty-ûve.
SEC. 3. The sum of ûfty thousand pesos or so much thereof as may

be necessary is hereby appropriated out of any funds in the Insular Treasury
not otherwise appropriated, to carry out the provisions of section one of
this Act.
496
Approved, November 28, 1924.
497
ACT NO. 3190
AN ACT GRANTING THE MANILA RAILROAD COMPANY OF THE

PHILIPPINE ISLANDS AUTHORITY TO ESTABLISH A
TELEPHONE LINE BETWEEN THE MUNICIPALITIES OF
PAMPLONA AND PASACAO, IN THE PROVINCE OF
CAMARINES SUR

SECTION 1. There is hereby granted for a period of ûfty years from

and after the date of the approval of this Act to the Manila Railroad Company
of the Philippine Islands, its successors or assigns, the right and privilege
to construct, maintain, and operate a telephone system for the exclusive
use of said Manila Railroad Company of the Philippine Islands in its business
between the municipalities of Pamplona and Pasacao, in the Province of
Camarines Sur, and for the purpose of operating said telephone system, to
construct, maintain, and operate and use all apparatus, conduits, and
appliances necessary for the electrical transmission of messages and signals,
to erect poles, string wires, build conduits, lay cables, and to construct,
maintain, and use such other approved and generally accepted means of
electrical conduction in, on, over, or under the public roads, highways,
lands, bridges, streets, lanes, alleys, avenues, and sidewalks of said
municipalities as may be necessary and best adapted to the transmission of
messages and signals by means of electricity.
498
ACT NO. 3214
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 the 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-ûve 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, ûles 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 certiûcate 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
499
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, ûve thousand pesos, in negotiable
bonds of the United States or other securities approved by the Secretary of
Commerce and Communications, of the face value of ûve 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 notiûcation
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 gas declaration of the
500
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-ûve 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 ûfteen 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-ûve, 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 ûx 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.
501
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 ûle.
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
502
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 ûle 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.
Approved, December 6, 1924.
503
ACT NO. 3367
AN ACT TO AMEND SECTIONS TEN AND TWENTY-FOUR OF ACT

NUMBERED THIRTY-ONE HUNDRED AND EIGHT,
ENTITLED “AN ACT CREATING THE PUBLIC UTILITY
COMMISSION AND PRESCRIBING ITS DUTIES AND POWERS
Be it enacted by the Senate and the House of Representatives of the

Philippines in Legislature assembled and by the authority of the same:
SECTION 1. Section ten of Act Numbered Thirty-one hundred and

eight, is hereby amended to read as follows:
SEC. 10. The Commission shall have its office in the City of Manila
at such place as may be designated, and any of the Commissioners may
hold hearings on any proceedings at such times and places, within the
Philippine Islands, may provide by order in writing : Provided, That during
the months of April and May of each year, only one of Commissioners
shall be on duty and the other two shall be on vacation, in such manner that
each Commissioner shall be on duty during the vacation months once every
three years : Provided, further, That nothing hereinbefore provided shall
prevent any of the Commissioners from rendering service and remaining
on duty during the vacation months when the interest of the public service
requires it : Provided, finally, That notwithstanding the foregoing provisions,
the Commissioners shall be entitled to accrued leave privileges in the manner
prescribed for judges of Courts of First Instance.”
SEC. 2. Section twenty-four, letter (c), of Act Numbered Thirty-one

hundred and eight, is hereby amended to read as follows:
“SEC. 24 (c). The Public Service Commissioner, the Associate

Commissioners, the Chiefs of Division, and Deputy Secretaries shall have
the power to administer oaths in all matters coming under the jurisdiction
of the Commission.”
504
SEC. 3. This Act shall take effect upon its passage.
505
ACT NO. 3376
AN ACT TO TAKE THE MANILA RAILROAD COMPANY OUT OF

THE SUPERVISION AND CONTROL OF THE PUBLIC SERVICE
COMMISSION

SECTION 1. The Public Service Commission shall hereafter not

exercise any control or supervision over the Manila Railroad Company so
long as the same shall be controlled by the Government of the Philippine
Islands, except with regard to its rates.
SEC. 2. All acts and other provisions of the law inconsistent herewith
506
ACT NO. 3399
AN ACT GRANTING TO THE MANILA RAILROAD COMPANY OF

THE PHILIPPINE ISLANDS AN ADDITIONAL CONCESSION
TO CONSTRUCT A RAILROAD IN THE ISLAND OF LUZON

SECTION 1. Authority is hereby granted and given to the Manila

Railroad Company of the Philippine Islands, a corporation duly organized
and existing under and by virtue of the laws of the Philippine Islands, and
to its successors and assigns, to locate, construct, furnish, maintain, and
operate certain railways on the Island of Luzon, in the Philippine
Archipelago, on terms and conditions set out in the following concessionary
grant, or contract:
This instrument, made, executed, and entered into this ……..… day
of ………….. Anno Domini one thousand nine hundred twenty ……… by
and between the Philippine Government, by the Governor-General of the
Philippine Islands, of the one part, and the Manila Railroad Company of
the Philippine Islands, a corporation duly organized and existing under and
by virtue of the laws of the Philippine Islands, of the other part, witnesseth
that :
WHEREAS, under and by virtue of section twenty-eight of the Act

of the Congress of the United States, approved August twenty-ninth, nineteen
hundred and sixteen, the Government of the Philippine Islands was
authorized and empowered to grant franchises, privileges, concessions, and
rights, including the authority to exercise the right of eminent domain, for
the construction and operation of works of public utility and service, as by
reference thereto will more fully appear ; and
WHEREAS, the Manila Railroad Company of the Philippine Islands,

a corporation organized and existing under and by virtue of the laws of the
Philippine Islands, has applied for a franchise to construct and operate a
railroad line in the Island of Luzon along the route hereinafter described;
507
In consideration thereof, it is conceded and granted by the

Government of the Philippine Islands (hereinafter referred to as the
Government), of the one part, and contracted and agreed by the party of the
second part (herein-after referred to as the grantee), for itself, and for its
1. The grantee, and its successors and assigns, are hereby authorized
by the Government to construct, equip, maintain, and operate in perpetuity
a line of railway in the Philippine Islands, generally and approximately as
follows, and subject to such variations and such extensions of the main
stem, not exceeding twenty-five miles each, as may be approved by the
Governor-General :
On the Island of Luzon : a line from Tarlac, in the Province of Tarlac,

in a northeasterly direction to San Jose, in the Province of Nueva Ecija.
The grantee may, with the consent of the Governor-General, in

addition to the line named, construct branch lines to reach traffic points
within a reasonable distance from the main lines of the railways.
Surveys on and along the proposed line shall be commenced by the

grantee within sixty days after written demand therefor shall be made to
the grantee by the Governor-General; detailed reports of the deûnite plans,
surveys, and speciûcations, accompanied by complete maps and proûles of
the character and kind in respect of such construction and equipment directed
by the Governor-General, showing the course, direction, length, and grade
of the line in each section or district, and embodying also estimates of the
costs of such construction and equipment, shall, in writing, be submitted to
the Governor-General through the Director of Public Works, within six
months after said demand, or at such later time as may be permitted by the
Governor-General; and within two months after the submission thereof to
the Governor-General the latter shall ûx and determine the ûnal route,
substantially in accordance with the routes as above generally described.
2. Under and by virtue hereof, the right of way through the public
lands of the Philippine Government is hereby given and granted to the
grantee for the construction, operation, and maintenance of the railroad or
508
railroads as herein authorized to the extent of one hundred feet in width

warehouses, terminals, including wharves and dock fronts, switches, side
tracks, and turntables, and also such extra lands beyond such one hundred
feet as may be found necessary for said purposes: Provided, That the same
be approved by the Governor-General as a part of the deûnite plans
hereinbefore provided for, and the right, power, and authority shall
thereunder, be given to said grantee, with the written approval of the
Governor-General, to open and work quarries and gravel pits, to collect
earth and stone, to cut timber, to mine for materials and to build and operate
kilns for lime, gypsum and brick, upon any public lands; but the provisions
of this paragraph shall only apply to public lands available for homestead
settlement, lease or sale under the Public Land Act, or to timber lands of
the Philippine Government, and shall not apply to lands reserved for military
purposes, or to lands used and assigned for other public purposes, nor to
the lands known as the “Friar Lands.”
failure to agree upon the terms thereof, such terms shall be ûxed by the
Governor-General.

which they were respectively granted upon the termination of this franchise
or concession, or upon its revocation or repeal. The grantee shall also have
the right to acquire from corporations, or private individuals, by purchase,
contract, lease, grant, or donation, any lands which may be necessary or
useful for the construction, maintenance, and operation of the said lines of
railway or any of them.
The grantee shall have the right to acquire by condemnation the lands
necessary for the right of way, for bridges, for terminals, including wharves
509
and docks at harbor points and elsewhere, for sidings, stations, engine
houses, water stations, and other appropriate buildings and structures for
the proper and convenient construction, operation, and maintenance of the
line of railway herein authorized; but no land within the boundaries of any
province, city, town, or municipality shall be occupied by the grantee if the
same is being used for governmental, provincial, or municipal purposes,
nor shall any land within the limits of any city, pueblo, or municipality be
occupied without the consent of the proper authorities thereof, except by
permission of the Governor-General. The right of condemnation or eminent
domain shall be exercised by the grantee in accordance with the laws of
the Philippine Islands at the time being in force.
The grantee shall also have the right to conduct water to the railroad
for the use of the same and to cross any railway, tramway, river, stream,
water course, lake, canal, and shore, and to construct, alter, substitute, and
maintain for the operation of said railways any and all tracks (single, double,
or more), bridges, tunnels, embankments, aqueducts, viaducts, culverts,
fences, and other structures, passages, conduits, drains, abutments, arches,
cuttings, and stockades; and all depots, stations, engine houses, car houses,
freight houses, wood houses, and other building; and all machine shops
and other shops, water tanks, turntables, superstructures, erections and
ûxtures; and all elevators, warehouses, wharves, piers, and other facilities,
terminal or otherwise, for operating said railroads, and also any hotels, or
restaurants at any station or terminal.
3. All tracks of the said line of railway shall be of the gauge of three
feet six inches, so that when completed the gauge of the line covered hereby
shall be uniform, and the construction, equipment, and rolling stock shall
be in every respect ûrst class, and in accordance with the approved deûnite
plans, and, with due regard to local conditions, shall be equal in quality to
the best American practice. This speciûcation as to gauge may be modiûed
with the approval of the Governor-General. And the said grantee hereby
agrees to construct and complete and put in operation an average of not
less than ten kilometers of main track per annum, after the approval of the
ûnal plans for the same, such work to be commenced at the option of the
grantee, at the southern or northern terminal of its proposed lines, or at
each of such terminals, simultaneously or successively.
510
Extension of time of completion may be granted by the Governor-

General, in his judgment, for good cause shown. The said railways shall be
operated as commercial railways for the transportation of passengers,
freight, goods, express, and mail: Provided, That in its operation the grantee
shall be bound to fulûll the duties prescribed by chapter two of Act
Numbered Fourteen hundred and ûfty-nine, regarding the service to be
rendered and the measures to be taken for the custody and safety of the
passengers and goods transported : Provided also, That on written demand
of the Governor-General, preference of carriage shall be given over said
line of railway, or any part thereof, to business offered by the Government
of the United States or of the Philippine Islands, or to officers and employees
of the Insular and provincial governments of the Philippine Islands, or to
officers, soldiers, and sailors of the Army and Navy of the United States in
the Philippine Islands, and their families.
4. The motive power of said railways shall be steam, except that,

with the consent of the Governor-General, any of said lines may be operated
by electricity or other equivalent power.
5. The grantee, in respect of any of said railway, shall permit (and

the Philippine Government shall be empowered to reserve to itself the right
to grant the proper permission) any other railway now constructed or
hereafter to be constructed in the Philippine Islands, to form and establish
trafûc connections or arrangements with it on fair and equitable terms, to
be determined, in case of disagreement, by the Public Service Commissioner,
who will act on the matter as in any ordinary case before said tribunal.
6. The grantee and its contractors and subcontractors shall, so far as

along the line of railway, and the employment of labor shall be at all times
under the reasonable direction of the Governor-General of the Philippine
Islands: Provided, That the grantee shall not use, employ or contract for
the labor of persons claimed or alleged to be held in involuntary servitude.
All material employed in the construction of the lines shall be of ûrst

class and quality, adapted to the conditions of the country, and equal to the
511
best American practice for railroads of similar gauge. Deûnite speciûcations

as regards all construction shall be approved by the Governor-General of
the Philippine Islands.
7. The grantee shall have the right to construct and operate telegraph,
telephone, and electrical transmission lines over said right of way for use
in the construction and operation of said railways, and also, with the consent
of the Governor-General, for public service and commercial purposes.
In the construction of telegraph or telephone lines along the right of

way, the grantee shall erect and maintain poles with sufûcient space thereon
to permit the Philippine Government, at its expense, to place, and itself or
by the United States Government to operate and maintain, four wires with
the necessary ûxtures including crossarms, pins and insulators for telegraph,
telephone, and electrical transmission for any purpose between the termini
of the line of railway ; and the Philippine Government reserves to itself the
right to construct, maintain, and operate telegraph, telephone, or electrical
transmission lines over the right of way of said railways for commercial,
military, or governmental purposes, without unreasonably interfering with
the construction, maintenance, and operation by the grantee of its railways,
telegraph, telephone, and electrical transmission lines.
The grantee shall furnish suitable telegraph offices and operators at

In case that the grantee shall operate telegraph, telephone or electrical

transmission lines for public service or commercial purposes, prior to such
operation, it must ûle with the Public Utility Commission its rate schedule
and statement showing the equipment to be used and kind of service to be
rendered.
8. All material imported into the Philippine Archipelago for the

construction and equipment of the railways undertaken by the grantee,
pursuant to authority conferred by this contract or grant shall be admitted
free of duty, under such rules and regulations as shall be prescribed by the
512
Philippine Government : Provided, That this provision shall not extend or

apply to any portion of such line or to any material or supplies therefor,
after the same shall be constructed and equipped : Provided further, That if
any material admitted free of duty shall not in fact be used for the
construction and equipment of said railroad the duty shall become payable
thereon whenever it is ascertained that it has been used or disposed of or is
held for other purposes: And provided further, That this exemption shall
extend to port charges upon vessels whose entire cargo consists of material
for the construction or equipment of the railway and to such proportion of
the prescribed port charges on other vessels as the tonnage of material for
such construction or equipment may bear to the tonnage of the entire cargo
of the vessel.
9. The grantee, its successors or assigns, may by consent of the

stockholders holding a majority of the issued capital stock, and by
compliance with any other requisite of the laws of the Philippine Islands
relating to the incurrence of bonded indebtedness by railroad corporations,
mortgage all corporate property, real and personal, pertaining to the grantee
and used or intended for use, directly or indirectly, with its proposed railroad,
and the franchise hereby granted, or execute deeds of trust thereof to trustees
selected by such stockholders, to secure payment of bonds or notes issued
by the grantee for the purpose of securing money for its legitimate corporate
purposes, including the construction and equipment of its road: Provided,
That such mortgage or deed of trust shall be subject in all respects to the
terms of this concessionary grant.
10. If the grantee make breach of any of the conditions hereof, or of

any of the obligations by it assumed hereunder, in respect to the construction
of said railways, and shall allow the same to continue for upward of six
months, after notice in writing from the Philippine Government to the
grantee, then, in such case, at any time thereafter, the Philippine Government
may, at its option, and at the cost and expense of the grantee, do and perform
any and all acts and things which it may deem useful and necessary to
insure the construction, equipment, and completion of the railways covered
hereby or the fulfillment of such condition or obligation, as the case may
be ; and in said event such cost and expense shall thereupon thenceforth be
513
and become a debt of the grantee payable immediately, and a lien upon the
said railways and all franchises and property relating thereto, subject only
to recorded mortgages previously existing thereon, and shall be enforceable
by foreclosure in the same manner as if secured by a mortgage junior only
to said prior recorded mortgages, or alternatively, and at the exclusive option
of the Philippine Government, this franchise may be wholly cancelled and
revoked.
11. The Government of the Philippine Islands, through the Bureau of

Audits and the Bureau of Public Works, and by such other agencies as may
be ûxed by law hereafter, shall have the power, by monthly or other regular
inspection of the books, accounts, vouchers, and other papers, and by special
inspection of the works accomplished and the construction made, if in its
judgment necessary, to keep itself advised of the ûnancial condition and
actual operations of the grantee to enable-it to exercise the powers vested
in the Philippine Government by law in respect of this franchise and
concession, and especially to verify the statements in the ûnancial reports
of the railroad company as to construction, maintenance, and operation,
with a view to the proper enforcement and execution of the obligations of
the grantee as contained in this franchise.
12. In consideration of the premises and of the granting of this

concession or franchise, there shall be paid by the grantee to the Philippine
Government, annually, for the period of thirty years from the date hereof,
an amount equal to one-half of one per centum of the gross earnings of the
grantee in respect of the line covered hereby for each preceding year; after
said period of thirty years, and for ûfty years thereafter, the amount so to be
paid annually shall be an amount equal to one and one-half per centum of
such gross earnings for each preceding year ; and after such period of eighty
years the percentage and amount so to be paid annually by the grantee shall
he ûxed by the Philippine Government. Such annual payments, when
promptly and fully made by the grantee, shall be in lieu of all taxes of
every name and nature—municipal, provincial, or central—upon its capital
stock, franchises, right of way, earnings, and all other property owned or
operated by the grantee under this concession.
514
13. The right is hereby given to the grantee to ûx, charge, and collect
just and reasonable individual rates, joint rates, commutation rates, mileage,
tolls, fares, charges or schedule for carriage of freight and passengers, but
in the exercise of this right the grantee shall be subject to the general
supervision and control of the Public Service Commission of the Philippine
Islands as other public utilities operating within the Philippine Islands with
regard to their rates.
14. The said railway line shall be post route and military road, subject
to the use of the Government of the Philippine Islands and the Government
of the United States of America for postal, military, naval, and other
governmental service, and also subject to such reasonable regulations
restricting the charges for such government transportation, as may be
approved by the Secretary of Commerce and Communications, so far as
the Philippine Government is concerned, and by the Commanding General
of the American Division of the Philippines, so far as the military and
naval services are concerned.
The grantee binds itself to provide on its trains the necessary facilities
for carrying the mails subject to terms and conditions agreed upon by the
Secretary of Commerce and Communications and the grantee ; and in case
of failure to arrive at an agreement, the Public Service Commissioner shall
establish such terms and conditions, after hearing the grantee; but the
compensation for carrying the mails shall, under all circumstances, be a
reasonable amount ûxed with due consideration of the conditions existing
in the Philippine Islands.
A reasonable compensation shall be allowed for carrying urgent mail,

troops, silver in bullion, ammunition or freight for the Government at other
hours or at a greater speed than that of the ordinary passenger trains. The
grantee shall provide the necessary facilities for this purpose at any hour of
the day or the night.
15. The grantee shall at all times have and ûx, by corporate declaration
satisfactory to the Governor-General, a place where the principal office of
the corporation is to be established or located, which place must be within
515
the Philippine Islands, and shall appoint and designate a representative or

agent at all times fully qualiûed and empowered to treat with the Philippine
Government in respect of all matters arising hereunder, and upon whom
process may be served in any judicial proceeding for any object or purpose,
whether arising hereunder or otherwise, and upon whom also any and all
notices, demands, tenders, deliveries, and communications may be given
or made to, for, or in behalf of the grantee hereunder, and its and their
successors and assigns; and all processes so served and all notices, demands,
tenders, deliveries, and communications so made shall be legal, sufficient,
and binding upon the grantee, and upon its and their successors and assigns,
as if made to it or them in person: Provided, That in the absence of this
representative or agent, judicial process shall be made in accordance with
the provisions of the Philippine Code of Civil Procedure.
16. This franchise or concession is subject to amendment, alteration,

or repeal by the Philippine Legislature or by the Congress of the United
States.
The grantee shall not issue stocks or bonds except in exchange for
actual cash paid to the corporation, or for property actually received by it
at a fair valuation, equal to the par value of the stock or bonds so issued ;
and shall not make or declare any stock or bond dividends or any dividend
whatever except from the surplus proûts arising from its business, or divide
or distribute its capital stock or property other than actual proûts among its
members or stockholders until after the payment of its debts and the
termination of its existence by limitation or lawful dissolution.
The foregoing and all other terms and provisions of section twenty-
eight of the Act of Congress of August twenty-ninth, nineteen hundred and
sixteen, as well as the provisions of Act Numbered Fourteen hundred and
fifty-nine relating to railroad corporations so far as not inconsistent with
the provisions of this franchise and concession and with the exception of
sections eighty-two, eighty-four, ninety-eight, and ninety-nine, are
incorporated into and made a part hereof, with the same effect as if they
were set forth herein at length.
516
17. The word “grantee” herein shall be held to include and apply to
18. This franchise shall not take effect until the grantee shall have
obtained from the Public Service Commission a certificate showing the
public necessity and convenience of the same, in accordance with the
purpose of section twenty-two of Act Numbered Thirty-one hundred and
eight, and shall have filed such certificate with the Governor-General, and
said grantee shall make application for such certificate within one year
from and after the date of the approval of this Act and if this period expires
without its having made such application, this franchise shall become null
and void. This franchise shall also become null and void if the grantee fails
to ûle with the Governor-General, within sixty days from and after the date
on which it secured the certificate hereinbefore required, its acceptance in
due form of the terms and conditions set forth in this Act, together with
said certificate.
By the acceptance hereof, the grantee stipulates and agrees that any
railways constructed by virtue of these presents shall accord with the terms
and conditions herein imposed and shall be maintained in perpetuity as
commercial railways and common carriers in a manner suitable to the local
conditions.
In witness whereof, by virtue of authority conferred upon him, this

THE PHILIPPINE GOVERNMENT,
By___________________________________
Governor-General of the Philippine Islands
517
ACT NO. 3410
AN ACT AUTHORIZING THE GOVERNOR-GENERAL, ON BEHALF

OF THE GOVERNMENT OF THE PHILIPPINE ISLANDS, TO
PURCHASE FIFTY THOUSAND SHARES OF STOCK OF THE
ISLANDS, AND APPROPRIATING FUNDS FOR PAYMENT OF
SUCH SHARES, THE PROCEEDS OF WHICH SHALL BE SET
ASIDE FOR THE EXTENSION OF THE RAILROAD FROM SAN
FERNANDO, LA UNION, TOWARDS LAOAG

SECTION 1. The Governor-General on behalf of the Government of

the Philippine Islands, is hereby authorized to subscribe to and purchase,
whenever the financial condition of the Government shall permit it, fifty
thousand shares of the capital stock of the Manila Railroad Company of
the Philippine Islands, of the par value of ten million pesos.
SEC. 2. The Manila Railroad Company of the Philippine Islands

shall use these solely and exclusively for the extension of the railroad line
from San Fernando, LaUnion, towards Laoag, or part thereof.
SEC. 3. Said sum of ten million pesos shall be paid in installments of

not less than two million pesos per annum until fully paid, and the first
installment shall be paid on the date of the contract of subscription.
SEC. 4. The sum of ten million pesos is hereby appropriated, out of

any funds in the Insular Treasury not otherwise appropriated, for
disbursement in the manner prescribed in section three of this Act: Provided,
That this sum shall be disbursed nor set up in the books of the Insular
Auditor until the same or part thereof shall not release by the Governor-
General, who shall not release it until the Auditor shall certify that there
are funds on hand and available in the Insular Treasury, and the Board of
Directors of the Manila Railroad Company shall determine to undertake
the work.
518
519
ACT NO. 3426
AN ACT TO PROVIDE FOR MARINE EXAMINATIONS AND FOR

OTHER PURPOSES

SECTION 1. Section eleven hundred and eighty-four of the

Administrative Code as amended by Acts Numbered Twenty-eight hundred
and fifty-two and Thirty-one hundred and seventy-seven is hereby further
“SEC. 1184. Organization of the Board of Marine Examiners.— There

shall be maintained in the Bureau of Customs at Manila an Office of Marine
Examiners which shall be occupied and used by the Boards of Marine
Examiners for Deck Officers and the Board of Examiners for Engineer
Officers. The former shall consist of three master mariners one of whom
may be of the Government service, and the latter of three chief engineers,
one of whom may be of the Government service. The members of the two
boards above mentioned shall be appointed by the Secretary of Finance at
the recommendation of the Insular Collector of Customs, within not more
than one month before each call and shall automatically cease upon
submission of their certified report, under oath, of the result of the
examination. The Insular Collector of Customs shall appoint, with the
approval of the Secretary of Finance, an officer or employee of the Bureau
of Customs to act as Secretary of the Boards of Marine Examiners. It shall
be the duty of the Secretary to record, take charge of, and keep all
proceedings, documents, and other papers of the Boards of Marine
Examiners, to pass upon application for marine examinations and to perform
such other duties as the Secretary of Finance may prescribe in connection
with marine examinations other than as a marine examiner.”
SEC. 2. Section eleven hundred eighty-five of the Administrative

Code as amended by Act Numbered Thirty-one hundred and seventy-seven
is hereby further amended to read as follows:
520
“SEC. 1185. Functions of the Boards.—It shall be the duty of said

Boards of Marine Examiners to conduct marine examinations of persons
applying for certificates as deck or engineer officers under the provisions
hereof, to impose such corrective measures in connection with such
examinations as may be necessary, and to certify under oath the successful
candidates in such examinations for certificate as master, mate, marine
engineer, motor engineer, or patron, as the case may be.”
SEC. 3. Section eleven hundred eighty-nine of the Administrative

Code is hereby amended to read as follows:
“SEC. 1189. Examination into moral and technical qualifications of

applicants.—Except as otherwise specially provided, an applicant for a
marine certificate shall be required to undergo a technical examination on
the subjects hereinafter stated. To obtain a certificate he must show a
proficiency in the subjects upon which he is examined and shall answer
correctly at least seventy-five per cent of the questions propounded to him.
It shall be the duty of the Boards of Marine Examiners to make a thorough
inquiry into the character of the applicant and to consider the evidence he
presents in support of his application and such other relevant evidence as
the Boards shall deem proper. In this connection the Boards may consider
the statement, written or oral, of any person cognizant of the qualifications
of the applicant, and may, in its discretion, require the production of the
ships’ journals and logbooks for inspection.
“The Boards of Examiners for decks officers in examining an

applicant for a certificate as master or mate shall inquire into his character
and habits, his knowledge of seamanship and navigation in its various
branches, his capacity and skill in the loading and unloading of ships, and
in handling and stowing freight, and all other knowledge which the Boards
believe he should possess in order to properly perform his duties as master
or mate.
“An applicant for the certificate as patron in the major coastwise

trade shall prove to the satisfaction of the Board that he possesses the
knowledge necessary for navigating in all the Philippine seas.
521
“An applicant for certificate as patron in the limited coastwise trade

shall be required to show to the Board that he possesses practical knowledge
for navigating on the limited waters for which he requests a certificate,
“An applicant for admission to the examination as patron for harbor,

bay, lake, and river shall produce to the Board evidence, satisfactory to it
showing that he possesses the knowledge necessary for navigating in the
harbor, bay, lake, and river for which he seeks a certificate
“The Board of Examiners for engineer officers in examining an

applicant for a certificate as marine engineer shall inquire into his theoretical
and practical knowledge of the operation and repair of all classes of marine
machinery; also into his practical experience, character and habits, and the
Board may, in its discretion, make such practical tests and examination of
the applicant as it may deem necessary to demonstrate his fitness for the
position for which he seeks a certificate,
“The Board in examining an applicant for certificate as motor engineer

shall inquire into his theoretical and practical knowledge in the operation
and repair of internal combustion engines, his practical experience,
character, and habits as the Board may believe that he should possess in
order to properly perform his duties as such motor engineer.
“The examinations shall be theoretical and practical for masters,

mates, marine engineers, motor engineers, and major patrons, and practical
only for minor patrons, bay, river and lake patrons, and bay, river and lake
motor engineers. The theoretical examinations shall be made in writing.
Practical examinations may be made orally. There shall be an extensive
permanent schedule of subjects prepared for each certificate, which shall
not be modified or extended within six months immediately before the
holding of such examination. The examination papers shall not be signed
and the authors thereof shall be identified by means of slips enclosed in
envelopes which shall not be opened until after the ratings have been given.
In order to determine the general average of each candidate such oral
examination of in the opinion of the Boards may be necessary shall be
conducted in the presence of all the members of the corresponding board,
522
but no rating above twenty per cent shall be given to any oral examination.
The schedule and regulations by which marine examinations are to be
governed shall be promulgated by the Secretary of Finance, and for this
purpose he shall from time to time as may be necessary and convenient
appoint a committee to study, revise, and prepare such schedule and
regulations. There shall be held in the Port of Manila yearly marine
examinations in the months of January and July.”
SEC. 4. Section eleven hundred ninety of the Administrative Code is

hereby amended to read as follow:
“SEC. 1190. Reservation in favor of American officers. - The holder

of an unexpired license as master, mate, or engineer of any ocean issued
under the laws of the United Stated shall be entitled to obtain a certificate
of the same grade in the Philippine Islands without being subject to the
requirements hereinabove specified other than the physical examination
and the payment of the required fees.”
SEC. 5. Section eleven hundred and ninety-one of the Administrative

Code is hereby amended to read &s follows:
“SEC. 1191. Qualification required of candidates for master, mate,

and patron.— Besides the physical examination and other evidence relative
to habits and character herein required, candidates for master, mate, and
patron, shall have the following qualifications:
“(a) Master: An applicant for a certificate as master shall be not less

than twenty-live years of age at the time of filing his application, and shall
produce to the Board evidence, satisfactory to it, showing that he has served
on a seagoing vessel in the capacity of first mate with a certificate as such
for at least two years, one year of which shall be on vessels of five hundred
gross tons or over.
“(b) First mate: An applicant for a certificate as first mate shall

on a seagoing vessel in the capacity of second mate, with a certificate as
such, for at least one year.
523
“(c) Second mate: An applicant for certificate as second mate shall

on a seagoing vessel in the capacity of third mate, with a certificate as
such, for at least one year.
“(d) Third mate: An applicant for a certificate as third mate shall be

not less than nineteen years of age and shall produce a certificate of
graduation from the Philippine Nautical School or from any other officially
recognized nautical school after having completed the second year high
school or its equivalent, and shall further be required to present to the
Board evidence, satisfactory to it, showing that he has served as an
apprentice mate, at least eighteen months in a seagoing sailing vessel, or at
least twenty-four months in a seagoing steam or motor vessel. Major patrons
who on the approval of this Act were acting as masters on vessels of two
hundred tons or over may apply for examination for a third mate’s certificate
after two years of such service: Provided, That apprentice mates who are
actually navigating as such on or prior to the approval of this Act shall be
required to present to the Board evidence, satisfactory to it, showing that
they have successfully passed the second year high school or its equivalent
in any recognized school, and that they have shipped or acted as agregado
or piloto for at least two years on a seagoing vessel.
“(e) Patron: In order to be admitted to examination for patron in the

major coastwise trade, the applicant shall be at least twenty-five years of
age and shall produce to the Board a certificate, satisfactory to it, showing
that he has passed the intermediate school or its equivalent in an officially
recognized school and that he has navigated in the major coastwise trade
as boatswain, quartermaster, sailor, or apprentice mate on 3 seagoing vessel
navigating in the Philippine coastwise trade of not less than two hundred
fifty tons gross for a period of at least five years, or that he has navigated as
patron or mate in the coastwise trade with a certificate of minor patron for
at least three years.
“An applicant for admission to the examination for patron in the

minor coastwise trade shall be not less than twenty-three years of age and
shall produce to the Board evidence, satisfactory to it, showing that he has
524
passed the intermediate school or its equivalent in an officially recognized

school and that he has navigated on a seagoing vessel of thirty gross tons
or over for a period of not less than five years as boatswain or quartermaster
or sailor.
“An applicant for admission to the examination as patron for harbor,

bay, lake and river shall be at least twenty-three years of age, must know
how to read and write English or Spanish, and shall produce to the Board
evidence, satisfactory to it, showing that he has navigated on board of a
vessel or launch of three tons or over for a period of not less than five years
as quartermaster or sailor.”
SEC. 6. Section eleven hundred ninety-two of the Administrative

“SEC. l192. Qualifications required of candidates for the certificate

as engineer.- Besides the physical examination and other evidence relative
to moral qualifications herein required, candidates for marine and motor
engineers shall have the following qualifications:
“Marine engineers:
“(a) Chief engineer: An applicant for certificate as chief engineer

shall be not less than twenty-five years of age at the time of filing his
application and shall he required to produce to the Board evidence,
satisfactory to it, showing that he has served on a seagoing steamer in the
capacity of second engineer, with a certificate as such for at least two years.
“(b) Second engineer: An applicant for certificate as second engineer

shall be required to produce to the Board evidence, satisfactory to it, showing
that he has served on a seagoing steamer in the capacity of third engineer,
with a certificate as such for at least one year.
“(c) Third engineer: An applicant for certificate as third engineer

shall be required to produce to the Board evidence, satisfactory to it, showing
that he has served on a seagoing steamer in the capacity of fourth engineer,
with a certificate as such, for at least one year.
525
“(d) Fourth engineer: An applicant for certificate as fourth engineer

shall be at least nineteen years of age at the time of filing his applications
and shall produce to the Board evidence, satisfactory to it, showing that he
has passed the second year high school course or its equivalent, or has
graduated from an officially recognized marine engineers’ school and that
he has served at least six months on a seagoing motor vessel and eighteen
months on a seagoing steam vessel as apprentice engineer, machinist, or
oiler, after having served two years in a marine shop as apprentice or fitter
(operario) : Provided, That apprentice marine engineers who are actually
navigating as such on or prior to the approval of this Act, are required to
present to the Board evidence, satisfactory to it, showing that they have
passed the primary school or its equivalent in an officially recognized school,
and that they have served on steam launches or vessels as agregado, oiler
or fireman for at least two years and have worked for two years in a machine
shop as operative and they must be at least nineteen years of age.
“Motor engineers:
“(a) Chief motor engineer; An applicant for eertifi-cati1 as chief motor

engineer •’hall not be less than twenty-five years of age at the time of filing
his application and shall produce to the Board evidence, satisfactory to it,
showing that he has served on a seagoing vessel in the- capacity of second
motor engineer with a certificate as such for at least two years.
“(b) Second motor engineer: An applicant for certificate as second

motor engineer shall produce to the Board evidence, satisfactory to it,
showing that he has served on a seagoing vessel in the capacity of third
motor engineer with a certificate as such for at least one year.
“(c) Third motor engineer: An applicant for certificate as third motor

engineer shall produce to the Board evidence, satisfactory to it, showing
that he has served on a seagoing vessel in the capacity of fourth motor
engineer with a certificate as such for at least one year.
“(d) Bay, river and lake motor engineer: An applicant for certificate
as bay, river and lake motor engineer must be at least nineteen years of age,
526
must know how to read and write Spanish or English and shall produce to
the Board evidence satisfactory to it, showing that he has served on a
seagoing motor vessel in the capacity of oiler, machinist or apprentice motor
engineer for at least two years after having worked as apprentice mechanic
or fitter in a marine shop for at least one year.”
SEC. 7. An additional section to be known as section eleven hundred

ninety-two and one-half is hereby inserted in the Administrative Code to
read as follows:
“SEC, 1192½. Admission fees.—Applicants for marine examinations

must pay the following admission fees: For master, chief marine engineer
and chief motor engineer, fifteen pesos,
“For first mates, second marine and motor engineers and major
patrons, ten pesos.
“For mates, third and fourth marine and motor engineers and minor
patrons, seven pesos and fifty centavos.
“For river, bay and lake patrons and motor engineers, five pesos.”
SEC. 8. Section eleven hundred ninety-three of the Administrative

“SEC, 1193. Certification of applicant.—If the Boards of Marine

Examiners shall find that the experience, habits and character of an applicant
are such as to warrant the belief that he can safely be entrusted with the
duties and responsibilities of the position for which he makes application,
and that the applicant has in other respects complied with the requirements
hereof, it shall so certify and thereupon issue the appropriate certificate.”
SEC. 9. Section eleven hundred and ninety-four of the Administrative

“SEC. 1194. Issuance of certificates.— (a) Candidates for mate and

master having passed the requisite examination shall be entitled to have
527
the proper certificate issued to them which will entitle them to navigate in
any ocean.
“(b) Candidates for patron in the major coastwise trade having passed
the requisite examination shall be entitled to have the proper certificates
issued to them authorizing them to navigate in the Philippine coastwise
trade.
“(c) Candidates for patron in the minor coastwise trade having passed
the requisite examination shall be entitled to have the proper certificates
issued to them which shall authorize them to navigate upon the seas, harbors,
bays, rivers, or lakes for which they have shown proficiency and a thorough
practical knowledge.
“(d) Candidates for marine engineers having passed the requisite

examinations shall be entitled to have the proper certificates issued to them
which shall authorize them to navigate as such engineers on vessels of any
tonnage propelled by any kind of machinery.
“(e) Candidates for motor engineers having passed the requisite

examinations shall be entitled to have the proper certificate issued to them
which shall authorize them to act as such motor engineers on vessels of
any tonnage propelled by internal combustion engines.”
SEC. 10. Section eleven hundred and ninety-five of the Administrative

“SEC. 1195. Form of certificate.—The several certificates herein

provided for shall be issued in the form of diplomas by the chairman of the
respective Boards and shall be signed by him and countersigned by the
Secretary of Finance, and shall entitle the holders thereof to navigate in
accordance with the authority contained in them and shall not be suspended
nor revoked except as hereinafter provided.”
SEC. 11. Section eleven hundred and ninety-six of the Administrative

528
“SEC. 1196. Physical examination of holder of certificate.—Once in

every five years all holders of marine certificates shall be required to undergo
a physical examination to determine their fitness to continue navigating.
Any person who upon such examination is found to be physically unfit for
the service shall thereafter be disqualified from engaging therein.”
SEC. 12. Section eleven hundred and ninety-eight of the

Administrative Code is hereby amended to read as follows:
“SEC. 1198. Marine investigation and suspension or revocation of

marine certificates.— For the purpose of investigating marine accidents or
of charges preferred and filed with the Insular Collector of Customs, or
with the Collector of Customs of any subport, there shall be maintained in
the Bureau of Customs at Manila a Board of Marine Inquiry to consist of
five members to wit: The Surveyor of the Port as chairman, one master
mariner and one chief engineer of the Division of Hulls and Boiler, Bureau
of Customs, and one master mariner and one chief engineer of the Philippine
merchant marine who shall not belong to the qualified Civil Service and
who shall he appointed by the Secretary of Finance. The two latter members
shall receive a per diem of twenty pesos for each day of not less than seven
hours of service rendered in connection with such marine investigation.
Such Board shall have the power to investigate into the professional conduct
of marine officers, giving the party affected an opportunity to be heard in
his defense, and the decision of the Insular Collector of Customs based
upon the findings and recommendations of the Board, by which any marine
certificate may be suspended or cancelled on account of misconduct,
intemperate habits, or inattention to duty, shall be appealable to the
Department Head whose decision shall be final in all cases. Rules and
regulations governing the procedure of the marine investigation and the
proceedings of the Board shall be promulgated by the Secretary of Finance.”
SEC. 13. Section twelve hundred of the Administrative Code is hereby

“SEC. 1200. Fees for issuance of certificates.— Any person to whom

any certificate as master, mate, patron, or engineer is issued, upon
examination or by way of exchange, shall pay:
529
“For a certificate as master, fifty pesos.
“First, second and third mates, and major patron, thirty pesos.
“Chief marine engineer, fifty pesos.
“Second, third and fourth marine engineer, thirty pesos.
“Chief motor engineer, forty pesos.
“Second, third and fourth motor engineer, twenty-five pesos.
“Bay, river and lake motor engineer and patrons, twenty pesos.”
SEC. 14. Section twelve hundred and one of the Administrative Code,
as amended by Act Numbered Twenty-eight hundred and fifty-two, is hereby
further amended to read as follows:
SEC. 1201. Compensation of members of the Boards of Marine

Examiners. — The members of the Boards of Marine Examiners shall
receive a per diem of twenty pesos for each day of not less than seven
hours of service rendered in connection with the work and duties as such
marine examiners.”
SEC. 15. All acts or parts of any acts inconsistent herewith, are hereby
repealed.
530
ACT NO. 3444
AN ACT AUTHORIZING THE PURCHASE OF NEW VESSELS FOR

USE IN THE GOVERNMENT STEAMSHIP SERVICE,
EQUIPPING OF VESSELS THE USE OF WHICH MAY BE
OBTAINED BY THE GOVERNMENT, AND APPROPRIATING

SECTION 1. There is hereby appropriated, out of any funds in the

Insular Treasury not otherwise appropriated, the sum of one million pesos,
for the purpose of acquiring four new vessels for the use of the Philippine
Government, including any necessary expense involved in delivering said
vessels in the Philippine Islands. The contract for the acquisition or
construction of these vessels shall be awarded to the bid most advantageous
to the Government, whether from national or foreign company. This sum
shall be available for such investment by the Secretary of Commerce and
Communications, with the approval of the Governor-General, as follows:
on the ûrst day of January, nineteen hundred and twenty-nine, the sum of
ûve hundred thousand pesos for the acquisition of two vessels, and a like
sum and for the same purpose on the ûrst day of January, nineteen hundred
and thirty.
SEC. 2. Any unexpended and unobligated balance at the end of each

year from the said annual outlay of ûve hundred thousand pesos shall be
added to the appropriation and made available for the year immediately
following: Provided, That any balance remaining unexpended and
unobligated at the end of the year nineteen hundred and thirty shall revert
to the unappropriated funds in the Insular Treasury.
SEC. 3. The Insular Auditor shall, as soon, as the new vessels shall
have been acquired and operated, dispose by public auction, under the most
favorable terms to the Government, of such number of old Government
vessels as may no longer be needed by the Philippine Government.
531
532
ACT NO. 3449
AN ACT AMENDING SECTION ONE, PARAGRAPH ,”G,” ITEM (cc),

AND PARAGRAPH “I,” (kk), ITEM FOURTEEN, OF ACT
NUMBERED THIRTY-FOUR HUNDRED AND TWENTY-
SEVEN, ENTITLED “AN ACT MAKING APPROPRIATION FOR
PUBLIC WORKS” SO AS TO AUTHORIZE THE ACQUISITION
BY PURCHASE OR OTHERWISE OF A FULLY EQUIPPED
CABLESHIP, OR THE OBTAINING THE USE OF A SHIP AND
THE RECONDITIONING AND EQUIPPING THE SAME FOR
CABLE WORK, AND TO PROVIDE FUNDS THEREFOR,
INCLUDING THE EXPENSE OF DELIVERING SUCH SHIP IN
THE PHILIPPINE ISLANDS, AND FOR OTHER PURPOSES

SECTION 1. Section one, paragraph “G,” item (cc), of Act Numbered

Thirty-four hundred and twenty-seven, is hereby amended to read as follows:
“(cc) For the construction, reconstruction, maintenance, and repair

of radio, telegraph, and telephone lines, and for the purchase of equipment
and wire, including the acquisition by purchase or otherwise of a fully
equipped cableship, and the expense of delivering same in the Philippine
Islands or the obtaining the use of a ship and the reconditioning and
equipping the same for cable work, including the expense of delivering the
same in the Philippine Islands, and including also the expense of chartering
a boat for the purpose of bringing to the Philippine Islands the cable material
purchased from, and now in, London, England, to be expended by the
Director of Posts with the approval of the Secretary of Commerce and
Communications;…P300,000.00
SEC. 2. Section one, paragraph “I,” (kk), item fourteen, of Act

Numbered Thirty-four hundred and twenty-seven, also hereby amended to
read as follows:
533
“(14) For the, construction, reconstruction, maintenance, and repair

of radio, telegraph, and telephone lines, and for the purchase of equipment
and wire, including the acquisition by purchase or otherwise of the fully
equipped cableship mentioned in section one of this Act, and the expense
of delivering the same in the Philippine Islands or the obtaining the use of
a ship and the reconditioning and equipping the same for cable work,
including the expense of delivering the same in the Philippine Islands, as
provided in section one of this Act, and including also the expense of
chartering a boat for the purpose of bringing to the Philippine Islands the
cable material purchased from, and now in, London, England, to be
expended by the Director of Posts with the approval of the Secretary of
Commerce and Communications…295,000.00”
SEC. 3. The Bureau of Posts shall have the administration and control
of the cableship, the acquisition of which is herein authorized, and the
funds that may be appropriated in the Appropriation Act for nineteen
hundred and twenty-nine for the operation, repair and maintenance of the
Government cableship shall be transferred from the Bureau of Commerce
and Industry to the Bureau of Posts upon authority of the Secretary of
Commerce and Communications in the sums to be determined by said
Secretary.
SEC. 4. When the cableship mentioned in this Act shall have become
available for use in the Philippine Islands, the Insular Auditor is hereby
authorized to dispose of by public auction the cableship J. Bustamante in
such terms as may be advantageous to the Government.
534
ACT NO. 3472
AN ACT AMENDING SECTION TWELVE HUNDRED AND EIGHTEEN

OF ACT NUMBERED TWENTY-SEVEN HUNDRED AND
ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE,
RELATIVE TO VESSELS ELIGIBLE FOR BAY AND DRIVER
LICENSE

in Legislature assembled and by authority of the same:
SECTION 1. Section twelve hundred and eighteen of Act Numbered

Twenty-seven hundred and eleven, known as the Administrative Code, is
SEC. 1218. Vessels eligible for bay and river license. – To be eligible
for the bay and river license, a vessel must be built in the Philippine Islands
or in the United States, and the ownership of such vessel must be vested in
someone or more of the following classes of persons: (a) Citizens of the
United States; (b) Citizens or residents of the Philippine Islands; (c)
Domestic corporations or companies; (d) Foreign corporations or companies
lawfully engaged in business in the Philippine Islands.
Vessels actually engaged in the bay and river business in any port of
the Philippine Islands on the twenty-ninth day of April nineteen hundred
and eight, may be licensed in the future for the same business, regardless
of ownership or place of construction, subject in other respect to the same
regulations and conditions as other vessels: Provided, however, That vessels
of one hundred ûfty gross tons or over may be licensed regardless of the
place of their construction.”
535
ACT NO. 3474
AN ACT TO AMEND SECTION TWELVE HUNDRED AND TWO OF

ACT NUMBERED TWENTY-SEVEN HUNDRED AND ELEVEN,
KNOWN AS THE ADMINISTRATIVE CODE, AS AMENDED, TO
PERMIT VESSELS OPERATING ON THE HIGH SEAS TO
CARRY SEAMEN NOT CITIZENS OF THE UNITED STATES
OR OF THE PHILIPPINE ISLANDS

SECTION 1. Section twelve hundred and two of Act Numbered

twenty-seven hundred and eleven, known as the Administrative Code, is
hereby further amended to read as follows:
“SEC. 1202. Limiting number of foreign personnel on board

vessels.— No Philippine vessel operating in the coastwise trade or on the
high seas shall be permitted to have on board more than one master or one
mate and one engineer who are not citizens of the United States or of the
Philippine Islands, but the master, mate or engineer so employed must hold
a license under section one thousand one hundred and ninety-nine hereof.
No other person who is not a citizen of the United States or of the Philippine
Islands shall be an officer or a member of the crew of such vessel. Any
such vessel which fails to comply with the terms of this section shall be
required to pay an additional tonnage tax of ûfty centavos per net ton per
month during the continuance of said failure: Provided, That a vessel
registered under section eleven hundred and seventy-two of this Code
operating on the high seas and not engaged in the coastwise trade may
employ foreign seamen as members of its crew except watch and engine-
room officers: And provided, further, That nothing herein contained shall
be construed as revoking or modifying any of the existing provisions of the
Acts of the United States Congress regulating immigration.”
SEC. 2. This Act shall, take effect on its approval.
536
ACT NO. 3476
AN ACT TO AMEND SECTIONS TWO THOUSAND AND SEVENTY-

SIX AND TWO THOUSAND AND NINETY-EIGHT OF ACT
NUMBERED TWENTY-SEVEN HUNDRED AND ELEVEN,
KNOWN AS THE ADMINISTRATIVE CODE

SECTION 1. Section two thousand and seventy-six of Act Numbered

Twenty-seven, hundred and eleven, known as the Administrative Code, is
“SEC. 2076. Temporary designation of provincial ofûcer. - Upon the

occasion of the absence, illness, suspension, or other temporary disability
of a provincial officer, the Governor-General may designate any other
provincial ofûcer or employee to perform the duties of the position or he
may temporarily appoint thereto some suitable person not in the service.
“Until the Governor-General shall act, the duties of the provincial

governor, in the case contemplated, shall be discharged by one of the elective
members of the provincial board, who shall have been previously authorized
or deputed by the provincial governor. When a member of the provincial
board is thus deputed, the authority may be limited to the performance,
during the absence of the governor from the provincial capital, of such of
his duties as can only be conveniently performed at the capital or it may be
limited to the performance of speciûc acts or classes of acts. Every such
delegation of authority shall be in writing and shall be spread upon the
minutes of the provincial board.”
SEC. 2. Section two thousand and ninety-eight of Act Numbered

537
“SEC. 2098. Secretary of Provincial Board. - There shall be a

secretary of the provincial board, whose duty it shall be to attend the
meetings of the board and act as its recording officer and secretary.
“The secretary of the provincial board shall be the keeper of the seal
of the province and he shall attest therewith the official acts of the provincial
governor and shall record all those of the governor’s acts which are required
by law to be recorded. He shall receive from the provincial governor and
ûle in his ofûce all reports to the provincial governor required by law, and
shall index the same, and he shall generally act as custodian of all provincial
records and documents. He shall, on demand, furnish certiûed copies of all
public records and documents, for which he shall charge such fees as may
be ûxed by the provincial board, all the proceeds whereof shall be paid into
the provincial treasury.
“The position of the secretary shall be regarded as within the

unclassiûed civil service but may be ûlled in the manner in which classiûed
positions are ûlled, and if so ûlled, the appointee shall be entitled to all the
beneûts and privileges of classiûed employees, except that he shall hold
office only during the term of office of the appointing governor and until a
successor in the office of secretary is appointed and qualiûed, unless sooner
separated.”
538
ACT NO. 3478
AN ACT TO AMEND SECTION ELEVEN HUNDRED AND EIGHTY-

ONE OF ACT NUMBERED TWENTY-SEVEN HUNDRED AND
ELEVEN, KNOWN AS THE ADMINISTRATIVE CODE,
PROVIDING FOR THE ISSUANCE OF INSPECTION
CERTFICATES TO VESSELS HOLDING UNEXPIRED
INSPECTION CERTIFICATES ISSUED BY EXAMINERS OF
LLOYD’S AMERICAN BUREAU OF SHIPPING AND U.S.
STEAMBOAT INSPECTION SERVICE
SECTION 1. Section eleven hundred and eighty-one of Act Numbered
“SEC. 1181. Inspection certiûcate. – Upon the inspection of any
vessel as aforesaid, a certiûcate of inspection shall be issued, if the inspected
vessel shall be found to conform with the requirements applicable to it:
Provided, That Philippine vessels arriving from foreign countries with
unexpired certiûcates of inspection issued by examiners of Lloyd’s Bureau
Veritas, American Bureau of Shipping, U. S. Steamboat Inspection Service,
and viséd by a United States consul, vice-consul, or consular agent in the
performance of his ofûcial duties in the country or place where issued,
shall likewise be entitled to have an inspection certiûcate issued to them.
Said vessels shall not be subjected to any inspection other than that required
to convince the local inspectors that the condition of the vessel, boilers and
life-saving equipment are as stated in the current certiûcate of inspection.
A vessel inspected and certiûed in this manner or in the manner prescribed
in the preceding section shall be permitted to operate for the length of time
stated in the certiûcate, under the conditions imposed by the collector of
customs of the district, with the approval of the Insular Collector.”
539
ACT NO. 3479

AN ACT TO AMEND SECTION ELEVEN HUNDRED AND EIGHTY
OF ACT NUMBERED TWENTY- SEVEN HUNDRED AND
ELEVEN, KNOWN AS THEY ADMINISTRATIVE CODE, AS
AMENDED, PROVIDING FOR THE INSPECTION OF
STEAMSHIPS OF FOREIGN PRIVATE OWNERSHIP AND
EXEMPTING SUCH VESSELS FROM INSPECTION, UNDER
CERTAIN CONDITIONS

SECTION 1. Section eleven hundred and eighty of Act Numbered

“SEC. 1180. Inspection of hulls, boilers, and other constructional

features. – In the exercise of the authority conûded in the Bureau of Customs
over the coastwise trade and over Philippine vessels and shipping generally,
it shall be the duty of the Insular Collector to cause adequate technical
inspections to be made from time to time and as occasion may require of
the hulls, engines, boilers, and other mechanical and constructional features
of all Philippine vessels and of all steam vessels of foreign private ownership
navigating in any waters of the Philippine Islands, on common trade routes
open to general or competitive navigation, and carrying passengers from
any port of the Philippine Islands to any other place or country, and to ûx
the standards which must be attained in respect thereto: Provided, however,
That the following vessels shall not be subjected to any inspection other
than that required to convince the local inspectors that the condition of the
vessel, its boilers and life-saving equipment are as stated in the current
certiûcate of inspection: (a) passenger steamers of the United States having
unexpired inspection certificates issued by competent authorities of said
country; (b) passenger steamers belonging to other countries having
inspection laws resembling those of the Philippine Islands, if the laws of
said countries grant to Philippine steamships visiting said countries
540
privileges identical to those granted to steamships of said countries visiting

the Philippine Islands, but not otherwise. The hulls, engines, and boilers of
all steam vessels engaged in coastwise trafûc shall be inspected at least
once a year, or in case of the hull of a wooden vessel, at least once every
two years.”
541
ACT NO. 3635
AN ACT REQUIRING SAILING VESSELS OF FROM THIRTY-FIVE

NET TONS TO ONE HUNDRED AND FORTY-NINE GROSS
TONS, WITH OR WITHOUT AUXILIARY ENGINE, TO BE
COASTWISE TRADE, AMENDING THE ADMINISTRATIVE
CODE ACCORDINGLY, AND FOR OTHER PURPOSES

SECTION 1. Section (g) of section twelve hundred and three of the

Administrative Code is hereby amended to read as follows:
“(g) Every sailing vessel or sailing vessel with auxiliary engine of

one hundred and ûfty gross tons or over, shall carry as ofûcers one patron
in the major coastwise trade, or one ûrst mate, as master, and every sailing
vessel of from thirty-ûve net tons to one hundred and forty-nine gross tons,
with or without auxiliary engine, shall be commanded by an patron in the
minor coastwise trade.”
SEC. 2. Persons who before the approval of this Act have served for
as total period of not less than two years as patrons on sailing vessels of
from thirty-ûve to one hundred and forty-nine gross tons, without the proper
patron’s certiûcate and who can read and write English, Spanish, or any
native dialect, may, upon producing a certiûcate or certiûcates to that effect
signed by the outûtter or owner or outûtters or owners of such sailing vessels
and duly acknowledged before a notary public or other person authorized
by law to administer oaths, be allowed to continue acting as patrons without
the requisites of subsection (e) of section eleven hundred and ninety-one
of the Administrative Code, as amended by Act Numbered Thirty-four
hundred and twenty-six, and may obtain the certiûcate of patron in the
minor coastwise trade upon application and payment of fees.
SEC. 3. All acts and provisions of law inconsistent herewith are

hereby repealed.
542
543
ACT NO. 3678
AN ACT MAKING AVAILABLE, OUT OF ANY UNEXPENDED

BALANCE OF THE APPROPRIATIONS FOR THE BUREAU OF
PUBLIC WORKS MADEIN ACT NUMBERED THIRTY-SIX
HUNDRED AND THIRTY-EIGHT, THE SUM NOT EXCEEDING
EIGHT THOUSAND PESOS FOR TRANSPORTATION AND
TRAVELING EXPENSES OF ONE OR TWO DELEGATES TO
THE INTERNATIONAL ROAD CONGRESS TO BE HELD IN
WASHINGTON IN OCTOBER, NINETEEN HUNDRED AND
THIRTY

SECTION 1. Any unexpended balance of the appropriations for the

Bureau of Public Works made in Act Numbered Thirty-six hundred and
thirty-eight, not exceeding eight thousand pesos, is hereby made available
for the transportation and traveling expenses of one or two delegates to the
Sixth International Road Congress to be held in Washington in October,
nineteen hundred and thirty.
SEC. 2. The Governor-General, upon recommendation of the

Secretary of Commerce and Communications, is hereby authorized to
designate one or two engineers in the Government service to represent the
Philippine Islands as delegates to said International Congress and who shall
report of their mission to the Governor-General and to the Philippine
Legislature.
Approved, September 3, 1930.
544
ACT NO. 3697
AN ACT TO AMEND SUBSECTION (g) OF SECTION TWELVE

HUNDRED AND THREE OF ACT NUMBERED TWENTY-
ADMINISTRATIVE CODE, AS AMENDED BY ACT
NUMBERED THIRTY-SIX HUNDRED AND THIRTY-FIVE, AND
SECTION TWO OF SAID ACT NUMBERED THIRTY-SIX
HUNDRED AND THIRTY-FIVE, PROVIDING THAT SAILING
VESSELS OF THIRTY-FIVE GROSS TONS OR OVER BUT LESS
THAN ONE HUNDRED AND FIFTY GROSS TONS, SHALL BE
COASTWISE TRADE

SECTION 1. Subsection (g) of section twelve hundred and three of

the Administrative Code, as amended by section one of Act Numbered
Thirty-six hundred and thirty-five, is hereby further amended to read as
follows:
“(g) Every sailing vessel or sailing vessel with auxiliary engine of

one hundred and fifty gross tons or over, shall carry as officers one patron
in the major coastwise trade, or one first mate, as master, and every sailing
vessel of thirty-five gross tons or over, but less than one hundred and fifty
gross tons, with or without auxiliary engine, shall be commanded by a
patron in the minor coastwise trade.”
SEC. 2. Section two of Act Numbered Thirty-six hundred and thirty-

five is hereby amended to read as follows:
“SEC. 2. Persons who before the approval of this Act have served
for a total period of not less than two years as patrons on sailing vessels of
from thirty-five to less than one hundred and fifty gross tons, without the
proper patron’s certificate and who can read and write English, Spanish, or
545
any native dialect, may, upon producing a certificate or certificates to that

effect signed by the outfitter or owner or outfitters or owners of such
sailing vessels and duly acknowledged before a notary public or other person
authorized by law to administer oaths, be allowed to continue acting as
patrons without the requisites of subsection (e) of section eleven hundred
and ninety-one of the Administrative Code, as amended by Act Numbered
Thirty-four hundred and twenty-six, and may obtain the certificate of patron
in the minor coastwise trade upon application and payment of fees.”
546
ACT NO. 3765
AN ACT TO AMEND SUBSECTION (d) OF SECTION TWENTY-SIX

OF ACT NUMBERED THREE THOUSAND AND FORTY-FIVE,
INCREASING THE PENALTY PROVIDED FOR PERSONS
OBSTRUCTING A ROAD PASSAGE UNDER CERTAIN
CONDITIONS TO IMPEDE OR DISTURB THE PASSAGE OF A
MOTOR VEHICLE

SECTION 1. The following proviso is hereby added at the end of

subsection (d) of section twenty-six of Act Numbered Three thousand and
forty-five:
“Provided, that in case the obstruction placed on a road or passage

to impede the passage of a motor vehicle endangers the life of a passenger
or passengers or of the driver thereof or causes serious damage, the person
who deliberately placed such obstruction shall be punished by imprisonment
for not less than six months nor more than one year. In case there are serious
injuries or death, the responsible person or persons shall be prosecuted for
the most serious offense.”
547
ACT NO. 3818
AN ACT AMENDING FURTHER CERTAIN PROVISIONS OF THE

PHILIPPINE TARIFF ACT OF NINETEEN HUNDRED AND NINE
RELATING TO CHARGES FOR WHARFAGE

SECTION 1. Section fourteen of the Philippine Tariff Act of nineteen

hundred and nine, as amended by Act Numbered Thirty-four hundred and
twenty-nine, is hereby further amended to read as follows:
“SEC. 14. That there shall be levied and collected upon all articles,
goods, wares, or merchandise, except coal, timber, cement, guano, the
minerals and ores of copper, lead, zinc, iron and steel metals, refractory
gold ores, and sugar molasses, the product of the Philippine Islands, exported
through ports of entry of the Philippine Islands, or shipped therefrom to
the United States or any of its possessions, a duty of one dollar per gross
ton of one thousand kilos, as a charge for wharfage, whatever be the port of
destination or nationality of the exporting vessel: Provided, That articles,
goods, wares, or merchandise imported, exported, or shipped in transit for
the use of the Government of the United States, or of that of the Philippine
Islands, shall be exempt from the charges prescribed in this section.”
SEC. 2. All acts and regulations or parts thereof, inconsistent with

the provisions of this Act, are hereby repealed.
SEC. 3. When this Act shall have been approved by the President of
the United States, as provided in section nine of the Act of Congress of
August twenty-ninth, nineteen hundred and sixteen, such fact shall be made
known by proclamation of the Governor-General of the Philippine Islands,
and this Act shall take effect on the date of the proclamation.
Approved, January 22, 1931.
548
ACT NO. 3819

DESIGNATE ANY TRACT OR TRACTS OF THE PUBLIC
DOMAIN AS RESERVATIONS FOR AIRPORTS, AIRPLANE
LANDING FIELDS OR BASES, BY AMENDING SECTION
EIGHTY-ONE OF ACT NUMBERED TWENTY-EIGHT
HUNDRED AND SEVENTY-FOUR AS AMENDED
SECTION 1. Section eighty-one of Act Numbered Twenty-eight
hundred and seventy-four, as amended by Act Numbered Thirty-two hundred
and nineteen, is hereby further amended to read as follows:
“SEC. 81. Upon the recommendation of the Secretary of Agriculture
and Natural Resources, the Governor-General may designate by
proclamation any tract or tracts of land of the public domain as reservations
for the use of the Government of the Philippine Islands or of any of its
branches, or of the inhabitants thereof, in accordance with regulations
prescribed for this purpose, or for quasi-public uses or purposes when the
public interest requires it, including reservations for highways, airports,
airplane landing fields or bases, rights of way for railroads, hydraulic power
sites, irrigation systems, communal pastures or leguas comunales, public
parks, public quarries, public fishponds and other improvements for the
public benefit.”
SEC. 2. Upon the express or implicit approval of this Act by the
President of the United States, as provided in the Act of Congress approved
on 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,” the Governor-General shall so
announce forthwith, by means of a proclamation, and this Act shall take
effect on the date of such proclamation.”
549
ACT NO. 3851
AN ACT TO AMEND ACT NUMBERED THREE THOUSAND AND

TWO, CREATING A HARBOR BOARD FOR THE PORT OF
MANILA

SECTION 1. Section ten of Act Numbered Three thousand and two,

creating a Harbor Board for the Port of Manila, is hereby amended to read
as follows:
“SEC. 10. The Board shall have general supervision and regulation
of, and control over the receiving, handling, custody, and delivery of
merchandise on the wharves and piers of the Port of Manila and shall fix
the rates to be charged for the service, both for the merchandise imported
and for that exported ; and in the exercise of its functions it is hereby
authorized to take over, operate, and superintend such plants as may have
been established or may hereafter be established by the Government of the
Philippine Islands for the receiving, handling, custody and delivery of
merchandise, and convenience and comfort of passengers and the handling
of their baggage. The said Board is further authorized to establish and
operate such additional facilities as may be deemed proper for the receiving,
handling, custody and delivery of merchandise, for the convenience and
comfort of passengers and the handling of their baggage, and for the
provision of adequate fire protection at the piers, the expenses thereof to
be paid out of the funds in its possession.”
SEC. 2. Section nineteen of said Act Numbered Three thousand and

two is hereby amended to read as follows:
“SEC. 19. All receipts of the Harbor Board for the Port of Manila
coming into its possession by reason of the performance of its duties and
powers shall be deposited in the Insular Treasury or in the Philippine
National Bank on the account of the Manila Harbor Board.”
550
551
ACT NO. 3909
AN ACT CONCERNING THE LICENSING OF AIRMEN AND

AIRCRAFT, AND INSPECTION OF THE SAME, CONCERNING
AIR TRAFFICS RULES, CONCERNING SCHEDULES AND
RATES OF AVIATION COMPANIES AND CONCERNING THE

in Legislature assembled and by authority of the same:
CHAPTER I. – Definition of terms
SECTION 1. In this Act “air commerce” means transportation in

whole or in part by aircraft of persons or property for any purpose
whatsoever, or navigation of aircraft in the furtherance of business or
pleasure.
“Aircraft” means any contrivance now known or hereafter invented,

used or design for navigation of or flight in the air, except a parachute or
other contrivance designed for such navigation but used primarily as safety
equipment.
“Operating aircraft” means performing the services of aircraft pilot.
“Airman” means any individual, including the person in command,

and any pilot, mechanic or member of the crew, who engages in navigation
of the aircraft, while underway, and any individual who is in charge of the
inspection, overhauling or repairing of aircraft.
The term “person” means an individual, a partnership or two or more

individuals having a joint or common interest, or a corporation.
CHAPTER II. – Promotion of air commerce
SEC. 2. It shall be the duty of the Secretary of Commerce and

Communications to foster air commerce in accordance with the provisions
of this Act, and for such purpose :
552
(a) To encourage the establishment of air ports, civil airways and

other navigation facilities.
(b) To make recommendations to the Secretary of Agriculture and

Natural Resources as to necessary establishment of meteorological
facilities.
(c) To study the possibilities for the development of air commerce

and the aeronautical industry and trade in the Philippine Islands, and to
collect and disseminate information relative thereto and also as regards the
existing state of the art.
(d) To request the Bureau of Science, the Weather Bureau, and other
agencies in the Executive Branch of the Government to assist in carrying
on such researches and development work as tend to improve air navigation
facilities. The Secretary of Commerce and Communications is authorized
to transfer funds available for carrying out the purposes of this subdivision
to any such agency or agencies engaged in such research and development
work in cooperation with the Department of Commerce and
Communications.
(e) To investigate, record, and make public the causes of accidents in

civil air navigation in the Philippine Islands.
(f) To exchange with foreign governments, through existing

governmental channels, information pertaining to civil air navigation.
SEC. 3. To aid the Secretary of Commerce and Communications and

to assist in the performance of the functions vested in him under this Act,
there shall be employed an expert in aeronautics, who shall be appointed
by the Governor-General with the consent of the Senate. The said expert
shall receive as compensation a per diem to be fixed by the Secretary of
Commerce and Communications with the approval of the Governor-General.
To qualify for such appointment, this expert must : (a) have successfully
passed the examination for aeronautical inspector or higher office under
the Aeronautics Branch of the Department of Commerce of the United
553
States; or (b) hold or have held a commission as an officer in the aviation

forces of the United States ; or (c) be an aeronautical engineer who has
successfully passed such examination as shall immediately after the passage
of this Act be prescribed by the Bureau of Civil Service of the Philippine
Islands.
SEC. 4. Except as otherwise specifically provided, the Secretary of

Commerce and Communications shall administer and enforce the provisions
of this Act, including air traffic rules promulgated herein or hereafter
enacted, and for such purpose is authorized :
(1) To make such regulations as are necessary to execute the functions

vested in him by this Act.
(2) To issue or revoke licenses for pilots, for approved types of aircraft
for operation in the Philippine Islands, and for structural modification or
repair of such aircraft.
(3) To incur such expenditures (including expenditures for personal

services, and for books of reference and periodicals) as may be necessary
for such administration and as may be provided by the Philippine Legislature
from time to time.
(4) To publish from time to time a bulletin setting forth such matters
relating to the functions vested in him by this Act as he deems advisable,
including air navigation treaties, laws and regulations and decisions
thereunder.
(5) To operate and, for this purpose, to acquire, within the limits of
the available appropriation hereafter made by the Philippine Legislature
such aircraft and air navigation facilities as are necessary for executing the
functions vested in the Secretary of Commerce and Communications by
this Act.
554
CHAPTER III. – Requirements for aircraft and airmen

operating in the Philippine Islands
SEC. 5. Aircraft—Construction, design, and airworthiness—United

States licenses.—The public safety requiring, and the advantages of uniform
regulation making it desirable in the interest of aeronautical progress that
aircraft operating within the Philippine Islands should conform with respect
to design, construction, and airworthiness to the standards prescribed by
the United States Government with respect to navigation of civil aircraft
subject to its jurisdiction, it shall be unlawful for any person to navigate an
aircraft within the Philippine Islands unless such an aircraft has an
appropriate, effective license issued by the Department of Commerce and
Communications : Provided, however, That this restriction shall not apply
to military or licensed civil aircraft of the United states, or to aircraft licensed
by a foreign country with which the United States or the Philippine Islands
has a reciprocal agreement covering the operation of such licensed aircraft.
SEC. 6. Qualifications of operators—Federal license.—The public

safety requiring, and the advantages of uniform regulation making it
desirable in the interest of aeronautical progress that a person engaged
within the Philippine Islands in navigating aircraft in any form of navigation,
shall have the qualification necessary for obtaining and holding a pilot’s
license issued by the Department of Commerce and Communications, it
shall be unlawful for any person to operate any aircraft in the Philippine
Islands unless such person is the holder of an appropriate, effective pilot’s
license issued by the Department of Commerce and Communications :
Provided, however, That this restriction shall not apply to licensed pilots of
the United States or to foreign pilots operating aircraft of foreign countries
with which the United States or the Philippine Islands have a reciprocal or
other agreement covering the operation : And provided, further, That, upon
application approved by the Governor-General, a revocable license may be
granted by the Secretary of Commerce and Communications for a period
not to exceed one hundred and twenty days to persons not citizens of the
United States or the Philippine Islands, or countries having reciprocal or
other agreement covering operation. By the action of the same authorities,
such temporary license may be renewed from time to time for a like period.
555
SEC. 7. Possession and display of license.—The pilot’s license herein

required shall be kept in the personal possession of the licensee when he is
operating aircraft within the Philippine Islands, and must be presented for
inspection upon the demand of any passenger, any peace officer of the
Philippine Islands, or any official, manager, or person in charge of any
airport or landing field in the Philippine Islands upon which he shall land.
CHAPTER IV. – Air traffic rules
SEC. 8. All aircraft whether licensed or unlicensed must display

license or identification mark issued by the Department of Commerce and
Communications. This applies all flights whether for hire or pleasure, test
purposes, experimental purposes and whether the aircraft is licensed or
unlicensed.
SEC. 9. Flying rules.— The following rules pertaining to air traffic

shall be conformed to at all times by aircraft operating in the Philippine
Islands :
(a) Right-side traffic.— Aircraft flying in established civil airways,

when it is safe and practicable, shall keep to the right side of each airway.
(b) Giving-way order. – Aircraft shall give way to each other in the
following order –
(1) Airplanes.
(2) Airships.
(3) Balloons, fixed or free.
An airship not under control is classed as a free balloon. Aircraft

required to give way shall keep a safe distance, having regard to the
circumstances of the case. Three hundred feet will be considered a minimum
safe distance.
556
(c) Giving-way duties. – If the circumstances permit, the craft which

is required to give way shall avoid crossing ahead of the other. The other
craft may maintain its course and speed, but no engine-driven craft may
pursue its course if it would come within three hundred feet of another
craft, three hundred feet being the minimum distance within which aircraft
other than military aircraft of the United States engaged in military
maneuvers and commercial aircraft engaged in local industrial operations
may come within proximity of each other in flight.
(d) Crossing.— When two engine-driven aircraft are on crossing

courses the aircraft which has the other on its right shall keep out of the
way.
(e) Approaching.— When two engine-driven aircraft are approaching

head-on, or approximately so, and there is the risk of collision, each shall
alter its course to the right, so that each may pass on the left side of the
other. This rule does not apply to cases where aircraft will, if each keeps on
its respective course, pass more than three hundred feet from each other.
(f) Overtaking.— (1) Definition. An overtaking aircraft is one

approaching another directly from behind or within seventy degrees of that
position, and no subsequent alteration of the bearing between the two shall
make the overtaking aircraft a crossing aircraft within the meaning of these
rules or relieve it of the duty of keeping clear of the overtaken craft until it
is finally past and clear. (2) Presumption. In case of doubt as to whether it
is forward or abaft such position, it should assume that it is an overtaking
aircraft and keep out of the way. (3) Altering course. The overtaking aircraft
shall keep out of the way of the overtaken aircraft by altering its own course
to the right and not in the vertical plane.
(g) Height over congested and other areas.—Exclusive of taking off

from or landing on an established landing field, airport, or on property
designated for that purpose by the owner, and except as otherwise permitted
by section seven, aircraft shall not be flown :
557
(1) Over the congested parts of cities, towns, or settlements, except

at a height sufficient to permit of a reasonably safe emergency landing,
which in no case shall be less than one thousand feet.
(2) Elsewhere at a height less than five hundred feet, except where
indispensable to an industrial flying operation.
(3) Over certified high explosive danger areas except at a height

sufficient to permit a reasonably safe emergency landing outside of the
certified danger area, which in no case shall be less than one thousand feet.
(h) Height over assembly of persons.—No flight under one thousand

feet in height shall be made over any open-air assembly of persons except
with the consent of the Secretary of Commerce and Communications. Such
consent will be granted only for limited operations.
(i) Acrobatic flying. – (1) Acrobatic flying means intentional

maneuvers not necessary to air navigation.
(2) No person shall acrobatically fly an aircraft—
(a) Over a congested area of any city, town or settlement.
(b) Over any open-air assembly or persons or below two hundred

feet in height over any established civil airway, or within one thousand feet
horizontally thereof.
(c) Any acrobatic maneuvers performed over any other place shall
be concluded at a height greater than one thousand five hundred feet.
(d) No person shall acrobatically fly any airplanes carrying passengers

for hire.
(e) When performing acrobatic not prohibited by these regulations

each person in the aircraft must be properly equipped of a parachute of a
type and design which has been tested and approved by a competent agency
558
of the United States Government or of the Government of the Philippine

Islands.
(f) Dropping objects or things.—When an aircraft is in flight the

pilot shall not drop or release, or permit any person to drop or release, any
object or thing except by permission of the Secretary of Commerce and
Communications or when necessary to the personal safety of the pilot,
passengers, or crew.
(g) Seaplane on water. – Seaplanes on the water shall maneuver

according to the laws and regulations of the United States governing the
navigation of water craft, except as otherwise provided herein.
(h) Transporting explosives.—The transporting of explosives other

than that necessary for signaling or for fuel for such aircraft while in flight
or materials for industrial or agricultural spraying (dusting) is prohibited,
except upon special authority obtained from the Secretary of Commerce
and Communications.
(i) No person shall navigate aircraft while under the influence of,
using, or having personal possession of intoxicating liquor, cocaine, or
other habit-forming drugs.
(j) The towing of aircraft by another aircraft is prohibited except by

special permission of the Secretary of Commerce and Communications.
(k) Parachute jumpers making exhibition, test, training, or

demonstration jumps are required to wear an auxiliary parachute so arranged
that it can be operated should the first parachute fail to function or become
fouled.
(l) The regulations heretofore issued prohibiting the flights, except

under certain conditions, over the Islands of Corregidor and other fortified
areas will remain in full force notwithstanding these regulations.
SEC. 10. Take-off and landing rules:
559
(a) Method.—Take-offs and landing shall be made upwind when

practicable. The take-off shall not be commenced until there is no risk of
collision with landing aircraft. Aircraft when taking off or landing shall
observe the traffic lanes indicated by the field rules or signals. No take-off
or landing shall be made from or on a public street or highway without the
prior consent of the local governing authority and the approval of the
Secretary of Commerce and Communications.
(b) Course.—If practicable, when within one thousand feet

horizontally of the leeward side of the landing field the airplane shall
maintain a direct course toward the landing zone.
(c) Right over ground planes.—A landing plane has the right of way
over planes moving on the ground or taking off, but this shall not excuse
the pilots of either or both such aircraft from the exercise of due care and
diligence.
((d) Giving way.—When landing and maneuvering in preparation to

land, the airplane at the greater height shall be responsible for avoiding the
airplane at the lower height and shall, as regards landing, observe the rules
governing overtaking aircraft.
(e) Distress landing.—An aircraft in distress shall be given free way

in attempting to land.
SEC. 11. Lights :
(a) Angular limits.—The angular limits laid down in these rules will
be determined as when the aircraft is in normal flying position.
(b) Airplane lights.—Between sunset and sunrise airplanes in flight

must show the following lights—
(1) On the right side, a green light so constructed and fixed as to

show an unbroken light between two vertical planes whose dihedral angle
is one hundred and ten degrees when measured to the right from dead ahead,
and visible at a distance of at least two miles.
560
(2) On the left side, a red light so constructed and fixed as to show an
unbroken light between two vertical planes whose dihedral angle is one
hundred and ten degrees when measured to the left from dead ahead, and
visible at a distance of at least two miles.
(3) At the rear and as far aft as possible, a white light shining rearward,
visible in a dihedral angle of one hundred and forty degrees bisected by a
vertical plane through the line of flight and visible at least three miles.
(4) Licensed aircraft, when engaged in carrying passengers for hire

any time between sunset and sunrise, shall be equipped with electric landing
lights and parachute type of flares, or approved equivalent, in addition to
the navigation lights required.
(c) Airship lights.— Between sunset and sunrise airships shall carry
and display the same lights that are prescribed for airplanes, excepting the
side lights which shall be doubled horizontally in a fore-and aft position
and the rear light shall be doubled vertically. Lights in a pair shall be at
least seven feet apart.
(d) Balloon lights.— A free balloon, between sunset and sunrise,

shall display one white light not less than twenty feet below the car, visible
for at least two miles. A fixed balloon, or airship, shall carry three lights—
red, white and green—in a vertical line, one over the other, visible at least
two miles. The top red light shall not be less than twenty feet below the car,
and the lights shall be not less than seven nor more than ten feet apart.
(e) Lights when stationary.— (1) Between sunset and sunrise all
aircraft which are on the surface of the water and not under control, or
which are moored or anchored in navigation lanes, shall show a white light
visible for at least two miles in all directions.
(2) Balloon and airship mooring cables between sunset and sunrise
shall show groups of three red lights at intervals of at least every ten feet,
measured from the basket, the first light in the first group to be approximately
twenty feet from the lower red balloon light. The object to which the
561
balloon is moored on the ground shall have a similar group of lights to

mark its position.
SEC. 12. Day marks of masts, etc. — By day, balloon and airship
mooring cables shall be marked with conical streamers not less than twenty
inches in diameter and seven feet long colored with solid color of chrome
yellow. The object to which the balloon or airship is moored on the ground
shall have the same kind of streamers, which must be in the same position
as the lights specified herein.
SEC. 13. Signals :
(a) Distress. — The following signals, separately or together, shall

where practicable, be used in case of distress :
(1) The international signal, S.O.S. by radio.
(2) The international code flag signal of distress, RC.
(3) A square flag having either above or below it a ball or anything

resembling a ball.
(b) Signal when completed to land. — When an aircraft is forced to

land at night at a lighted airport it shall signal its forced landing by making
a series of short flashes with its navigation lights if practicable to do so.
(c) Fog signals. — In fog, mist, or heavy weather, an aircraft on the

water in navigation lanes, when its engines are not running, shall signal its
presence by a sound device emitting a signal for about five seconds in two-
minute intervals.
SEC. 14. Deviation from air traffic rules. — The air traffic rules
may be deviated from when special circumstances, render a departure
necessary to avoid immediate danger or when such departure is required,
because of stress of weather conditions, or other unavoidable causes :
Provided, however, That aircraft carrying passengers for hire shall not
562
deviate from the air traffic rules pertaining to minimum altitudes of flight
because of stress weather conditions.
CHAPTER V. — Schedule and rates—Enforcement and penalties
SEC. 15. Person or persons engaged in air commerce shall submit

for approval to the Public Service Commission or its authorized
representative uniform charges and rates applied to merchandise and
passenger and passengers per kilometer or over specified distance between
given airports.
SEC. 16. Except when otherwise specified, the Secretary of

Commerce and Communications shall administer the provisions of this
Act and, for such purposes, is authorized to make such regulations as may
be necessary to execute the functions vested in him by this Act including
air traffic rules, which regulations shall conform to and coincide with, as
far as possible, the provisions of the Air Commerce Act of nineteen hundred
and twenty-six and amendments thereto passed by the Congress of the
United States and air commerce regulations and air traffic rules issued from
time to time pursuant thereto. The Public Service Commission shall
administer the next section preceding and for such purpose is authorized
to make such regulations as may be necessary to insure safety, regularity
and reliability of air commerce.
SEC. 17. Penalty for violation.— Any person who acts as an airman
for any aircraft when flown and operated in the Philippine Islands without
holding an effective license issued by the Department of Commerce and
Communications in accordance with the provisions of this Act or who flies
or causes to be flown in the Philippine Islands any aircraft without an
effective license or identification issued by the Department of Commerce
and Communications in accordance with the provisions of this Act or who
violates any provisions of this Act or any rules or regulations promulgated
hereunder shall be punished by a fine of not more than five hundred pesos
or six months’ imprisonment, or both.
563
CHAPTER VI.— Appropriations
SEC. 18. To effectively carry out the purposes of this Act, there is
hereby appropriated the sum of thirty thousand pesos, out of the funds in
the Insular Treasury not otherwise appropriated: Provided, That in
subsequent years the said sum shall be included in the General Appropriation
Act.
SEC. 19. This Act shall take effect upon its approval, except that no
penalty shall be enforced for any violation thereof occurring till December
fifteen, nineteen hundred and thirty-one.
564
ACT NO. 3993
AN ACT FURTHER TO AMEND SECTIONS ELEVEN HUNDRED AND

EIGHTY-FOUR AND EIGHTY-FIVE AND ELEVEN HUNDRED
AND NINETY-FIVE OF ACT NUMBERED TWENTY-SEVEN
HUNDRED AND ELEVEN, KNOWN AS THE ADMINISTRATIVE
CODE, AUTHORIZING IN CERTAIN CASES THE CREATION
OF A SPECIAL BOARD OF MARINE EXAMINERS FOR
PATRONS OR ENGINEERS

SECTION 1. Section eleven hundred and eighty-four of Act

Code of nineteen hundred and seventeen, as amended by Acts Numbered
Twenty-eight hundred and fifty-two, Thirty-four hundred and twenty-six,
is hereby further amended to read as follows:
“SEC. 1184. Organization of the Board of Marine Examiners. – There

shall be maintained in the Bureau of Customs at Manila an Office of Marine
Examiners which shall be occupied and used by the Board of Examiners
for Deck Officers and the Board of Examiners for Engineer Officers. The
former shall consist of three master mariners one of whom may be of the
Government service, and the latter of three chief engineers one of whom
may be of the Government service. The members of the two boards above
mentioned shall be appointed by the Secretary of Finance at the
recommendation of the Insular Collector of Customs, within not more than
one month before each call and shall automatically cease upon submission
of their certified report, under oath, of the result of the examination.
“Subject to the approval of the Secretary of Finance, the Insular

Collector of Customs may appoint a Special Board of Marine Examiners
consisting of three members who shall belong to the classified service of
the Government and be master mariners or chief engineers with certificates
duly issued, to conduct the examinations or tests of candidates for
565
certificates as patron or bay, river and lake engineer, and to perform the
functions of the regular Boards of Marine Examiners in connection with
said examinations in the ports or places designated by the Insular Collector
of Customs, whenever the public interest may require it and when none of
the regular boards for deck officers or engineer officers, as the case may
be, is regularly appointed and sitting. The members of said Special Board
of Marine Examiners shall act as such without additional compensation.
Two members of any of the Boards of Marine Examiners, regular or special,
mentioned in this Act shall constitute a quorum for the transaction of
business. The Insular Collector of Customs shall appoint an officer or
employee of the Bureau of Customs to act as secretary of the Board of
Marine Examiners. It shall be the duty of the secretary to record, take charge
of, and keep all proceedings, documents, and other papers of the several
Boards of Marine Examiners, the creation of which is authorized in this
section to pass upon applications for marine examinations and to perform
such other duties as the Insular Collector of Customs may prescribe in
connection with marine examinations other than as marine examiner.”
SEC. 2. Section eleven hundred eighty-five of Act Numbered Twenty-

seven hundred and eleven, known as the Administrative Code of nineteen
hundred and seventeen, as amended by Acts Numbered Thirty-one hundred
and seventy-seven and Thirty-four hundred and twenty-six, is hereby further
“SEC. 1185. Functions of the Boards. – It shall be the duty of said

Boards of Marine Examiners to conduct marine examinations of persons
applying for certificates as deck or engineer officers under the provisions
hereof, to impose such corrective measures in connection with such
examinations as may be necessary, and to certify under oath to the Insular
Collector of Customs the successful candidates in such examinations for
certificate as master, mate, marine engineer, motor engineer, or patron, as
the case may be.”
SEC. 3 Section eleven hundred and ninety-five of Act Numbered

Twenty-seven hundred and eleven, known as the Administrative Code of
566
nineteen hundred and seventeen, as amended by Act Numbered Thirty-

four hundred and twenty-six, is hereby further amended to read as follows:
“SEC. 1195. Form of certificate. – The several certificates herein

provided for shall be issued in the form of diplomas by the Insular Collector
of Customs and shall be signed by him and countersigned by the Secretary
of Finance, and shall entitle the holders thereof to navigate in accordance
with the authority, contained in them and shall not be suspended nor revoked
except as hereinafter provided.”
SEC. 4. All acts or parts of any acts inconsistent herewith, are hereby
repealed.
SEC. 5. This act shall take effect on its approval.
567
ACT NO. 3996
AN ACT TO AMEND ACT NUMBERED THIRTY-NINE HUNDRED

AND NINE CONCERNING THE LICENSING OF AIRMEN AND
AIRCRAFT, INSPECTION OF THE SAME, AIR TRAFFIC RULES,
SCHEDULES AND RATES OF AVIATION COMPANIES AND
THE ENFORCEMENT OF THE LAW

SECTION 1. The first paragraph of section one, Chapter one of Act

Numbered Thirty-nine hundred and nine, is hereby amended to read as
follows:
“SEC. 1. In this Act ‘air commerce’ means transportation in whole

or in part by aircraft of persons or property for hire, navigation of aircraft
of persons of property for hire, navigation of aircraft in furtherance of
business, or navigation of aircraft from one place to another for operation
in the conduct of a business.”
SEC. 2. Sections five, six and seven of Chapter three of the same
Act, are hereby amended to read as follows:
“SEC. 5. Aircraft – Construction, design, and airworthiness – United

States licenses. – The public safety requiring, and the advantages of uniform
regulation making it desirable in the interest of aeronautical progress that
aircraft operating within the Philippine Islands should conform with respect
to design, construction, and airworthiness to the standards prescribed by
the United States Government with respect to navigation of civil aircraft
subject to its jurisdiction, it shall be unlawful for any person to navigate an
aircraft within the Philippine Islands unless such an aircraft has an
appropriate, effective license issued by the Department of Commerce and
Communications: Provided, however, That this restriction shall not apply
to military or licensed civil aircraft of the United States or to aircraft licensed
by a foreign country with which the United States or the Philippine Islands
568
has a reciprocal or other agreement covering the operation of such licensed

aircraft in the Philippine Islands. Such aircraft shall be flown only subject
to the provisions of such agreement.
“SEC. 6. Qualifications of operators – Federal license. – The public

safety requiring and the advantages of uniform regulation making it desirable
in the interest of aeronautical progress that a person engaged within the
Philippine Islands in navigating aircraft in any form of navigation shall
have the qualifications necessary for obtaining and holding a pilot’s license
issued by the Department of Commerce and Communications, it shall be
unlawful for any person to operate any aircraft in the Philippine Islands
unless such person is the holder of an appropriate, effective pilot’s license
issued by the Department of Commerce and Communications: Provided,
however,That this restriction shall not apply to licensed pilots of the United
States or to foreign pilots operating aircraft of foreign countries with which
the United States or the Philippine Islands have a reciprocal or other
agreement covering commercial-pilot privileges in the Philippine Islands:
And provided, further, That those persons holding temporary revocable
transport licenses on December first, nineteen hundred and thirty-two, may
upon application approved by the Governor-General, be granted renewals
of such licenses not to exceed one hundred eighty days by the Secretary of
Commerce and Communications.
“Sec. 7. Possession and display of licenses. – The pilot’s license

herein required shell be kept in the personal possession of the licenses
when he is operating aircraft within the Philippine Islands and must be
presented for inspection upon the demand of any passenger, any peace
officer of the Philippine Islands, or any official, manager, or person in
charge of any airport or landing field in the Philippine Islands upon which
he shall land, or any inspector or other authorized representative of the
Department of Commerce and Communications.”
SEC. 3. Subsections (g) and (i) (2b and 2c), section nine, Chapter
four of the same Act, are hereby amended to read as follows:
“(g) Height over congested and other areas. – Exclusive of taking

off from or landing on an established landing field, airport, or on property
569
designated for that purpose by the owner, and except as otherwise permitted
by section fourteen aircraft shall not be flown:
“(i) Acrobatic flying.
“(2) No person shall acrobatically fly an aircraft –
“ (b) Over any open-air assembly of persons or below two thousand

feet in height over any established civil airway, or within one thousand feet
horizontally thereof.
“(c) Any acrobatic maneuvers performed over any other place shall
be concluded at a height greater than one thousand five hundred feet.”
SEC. 4. Subsections (d) and (e) (2) of section eleven, Chapter four,
of the same Act, hereby amended to read as follows:
“(d) Ballon light. – A free balloon, between sunset and sunrise, shall
display one white light not less than twenty feet below the car, visible for
at least two miles. A fixed balloon, or airship, shall carry three lights – red,
white, and red – in a vertical line, one year, one over the other, visible at
least two miles. The top red light shall be not less than twenty feet below
the car, and the lights shall be not less than seven nor more than ten feet
apart.
“(e) Lights when stationary.
“(2) Balloon and airship mooring cables between sunset and sunrise
shall show groups of three red lights at intervals of at least every one hundred
feet, measured from the basket, the first light in the first group to be
approximately twenty feet from the lower red balloon light. The object to
which the balloon is moored on the ground shall have a similar group of
lights to make its position.”
SEC. 5. Subsections (a) (2) and (c), section thirteen, Chapter four, of
the same Act, are hereby amended to read as follows:
570
“ (a) Distress. – The following signals, separately or together, shall

where practicable, be used in case of distress:
“(2) The international code flag signal of distress, NC.
“ (c) Fog signals. – In fog, mist, or heavy weather, an aircraft on

water in navigation lanes, when its engines are not running, shall signal its
presence by a sound device emitting a signal for about five seconds in two-
minute intervals.”
SEC. 6. Sections fifteen and sixteen, Chapter five, of the same Act,
are hereby amended to read as follows:
“SEC. 15. Person or persons engaged in air commerce shall submit

for approval to the Public Service Commission or its authorized
representative uniform charges and rates applied to merchandise and
passengers per kilometer or over specified distances between given airports.
The Public Service Commission shall administer the provisions of this
section and for such purpose is authorized to make such regulations as may
be necessary to insure regularity and reliability of air commerce.
“SEC. 16. Except when otherwise specified, the Secretary of

Commerce and Communications shall administer the provisions of this
Act, and, for such purposes, is authorized to make such regulations as may
be necessary to execute the functions vested in him by Act including air
traffic rules, which regulations shall conform to and coincide with, as far
as possible, the provisions of the Air Commerce Act of nineteen hundred
and twenty-six and amendments thereto passed by the Congress of the
United States and air commerce regulations and air traffic rules issued from
time to time pursuant thereto.”
571
ACT NO. 4072
AN ACT TO AMEND SECTION TWO OF ACT NUMBERED THIRTY-

THREE HUNDRED AND NINETY-SIX, ESTABLISHING
ADDITIONAL EXEMPTIONS FROM THE OBLIGATION TO
INSTALL RADIO APPARATUS ON SHIPS OF PHILIPPINE
REGISTER

SECTION 1. Section two of Act Numbered Thirty-three hundred

and ninety-six is hereby amended to read as follows:
“SEC. 2. Vessels of Philippine register of three hundred and fifty

tons gross or over carrying passengers in the coastwise trade, except vessels
plying exclusively on rivers, lakes, and bays, and on straits when the distance
traversed is not greater than thirty nautical miles and the voyage does not
last over three hours, shall be equipped with radio apparatus capable of
sending and receiving communications over a distance of not less than two
hundred nautical miles: Provided, That vessels of two hundred tons net
making regular trips from one port to another for more than fifteen hours
shall be included in this section.”
Approved, October 12, 1933.
572
ACT NO. 4111
AN ACT AUTHORIZING THE CONSOLIDATION OF THE BUREAU

OF PUBLIC WORKS SHOPS WITH THE MARINE RAILWAY
AND REPAIR SHOPS, APPROPRIATING FUNDS THEREFOR,

inLegislature assembled and by the authority of the same:
SECTION 1. All the shops of the Bureau of Public Works and the
Marine Railway and Repair Shops at the Engineer Island are hereby
consolidated and shall be known as the “Government Marine Railway and
Repair Shops.” The Director of Public Works shall administer these shops
subject to the executive supervision and control of the Secretary of Public
Works and Communications.
SEC. 2. Two hundred thousand pesos of the amount appropriated in

Act Numbered Four thousand and seventy-four for the operation of the
Marine Railway and Repair Shops and the reimbursable fund of ûfty
thousand pesos set aside in Act Numbered Four thousand and thirty-two
for the operation of the Bureau of Public Works Machine Shop are hereby
fused to constitute a reimbursable fund to be known as the “Government
Marine Railway and Repair Shops Fund” for the operation of the herein
consolidated shops on an income-earning or self-supporting basis. Upon
the approval hereof, all the assets and liabilities of the shops above named
shall be transferred to this fund. All income to be derived from the operation
of the shops shall accrue to this fund, which shall be disbursed by the
Director of Public Works, in accordance with an annual budget to be
approved by the Cabinet: Provided, however, That in case the cash funds,
are, at any time, insufficient to defray the operating expenses of the
Government Marine Railway and Repair Shops, the Insular Treasurer, upon
the request of the Director of Public Works and with the approval of the
Cabinet, shall advance the necessary sums for such expenses from any
unappropriated funds in the Insular Treasury in an amount not exceeding
ûfty per cent of the shop’s accounts receivable, and such advanced funds
573
shall be refunded to the Insular Treasury as soon as the accounts receivable

are collected: Provided, further, That all positions of personnel that are
employed throughout the year shall be shown in detail in the annual
appropriation acts. Any surplus funds which in the opinion of the Cabinet
are not necessary for the operation of the said shops shall revert to the
general fund in the Insular Treasury.
SEC. 3. The income of the shops, except sufficient cash for the
emergency expenditures, shall be deposited with the Insular Treasury.
SEC. 4. As soon as possible after the close of each year, the Director
of Public Works shall render a detailed ûnancial report of the operation of
the funds hereinbefore mentioned to the Secretary of Public Works and
Communications, who shall furnish a copy thereof to the presiding officers
of both Houses of the Philippine Legislature.
SEC. 5. The Philippine Government or any of its political subdivisions

shall have all their repair Works on ûoating equipment, machinery, and
other equipment done at these shops, subject to such restrictions or
limitations as may be provided in executive orders issued by the Governor-
General.
SEC. 6. All acts or parts of acts inconsistent with the provisions of

this Act are hereby repealed.
574
ACT NO. 4153
AN ACT AUTHORIZING THE SECRETARY OF FINANCE TO

ENTER INTO CONTRACT WITH ANY PUBLIC SERVICE
COMPANY OR CARRIER FOR THE TRANSPORTATION OF
PASSENGERS OR CARGO FOR THE PHILIPPINE
GOVERNMENT
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. Whenever the exigencies of the public service so require,

the Secretary of Finance, with the approval of the Governor-General, may
enter into contract with any public service company or carrier for the
transportation of officials and employees, including their families, or cargo
for the Insular Government at special or reduced rates and on such other
special terms and conditions as said Secretary may deem satisfactory and
advantageous to the Government. The provisions of any existing law to the
contrary notwithstanding, any public service company or carrier may accept
special or reduced rates, fares or charges provided for in any such contract,
for services rendered in the transportation of officials and employees,
including their families, or cargo for the Philippine Government.
575
ACT NO. 4193
AN ACT APPROPRIATING THE SUM OF TWO HUNDRED

THOUSAND PESOS FOR THE CONSTRUCTION, OPERATION,
AND MAINTENANCE OF EMERGENCY OR INTERMEDIATE
LANDING FIELDS AND OTHER AIR NAVIGATION FACILITIES,
RECHARTING AIRWAYS AND PUBLICATION OF AIR MAPS,
FOR THE EMPLOYMENT OF AERONAUTICAL INSPECTORS
AND OTHER EMPLOYEES AND THE PAYMENT OF PER
DIEMS, AND FOR OTHER PURPOSES

SECTION 1. For the purposes of: (1) acquisition, construction, repair,

operation, and/or maintenance of emergency or intermediate landing fields
and other air navigation facilities and to reimburse private companies of
their investments in the improvement of public landing fields owned by
the Government; (2) recharting or airways and publication of air maps; and
(3) for the employment of aeronautical inspectors and other employees
and the payment of per diems to United States Army officers engaged as
aeronautical inspectors or for other in the Insular Treasury not otherwise
appropriated, is hereby made available.
576
COMMONWEALTH ACT NO. 4
AN ACT TO PROVIDE FUNDS TO BE LOANED TO THE MANILA

RAILROAD COMPANY FOR THE PURCHASE OR
REDEMPTION BEFORE MATURITY OF CERTAIN
OUTSTANDING MANILA RAILROAD COMPANY FIRST
MORTGAGE SOUTHERN LINES FOUR PER CENT GOLD
BONDS DUE MAY FIRST, NINETEEN HUNDRED AND THIRTY-
NINE, AND FOR OTHER PURPOSES
Be it enacted by the National Assembly of the Philippines:
SECTION 1. The Treasurer of the Philippines is hereby authorized,

upon the order of the Secretary of Finance and with the approval of the
President of the Philippines, to loan to the Manila Railroad Company a
sum not exceeding thirteen million three hundred fifty thousand pesos to
bear interest at the rate of two per centum per annum payable semi-annually,
for the purpose of purchasing or redeeming, before maturity, certain
outstanding Manila Railroad Company First Mortgage Southern Lines Four
Per Cent Gold Bonds due May first, nineteen hundred and thirty-nine :
Provided, That the price at which said bonds shall be acquired shall not
exceed eighty per centum of their par value.
SEC. 2. This loan is to be secured by the deposit as collateral with

the Government by the Manila Railroad Company of the Southern Lines
Four Per Cent Bonds acquired in accordance with the provisions of section
one, and after maturity of said bonds, by such security as may be acceptable
to the Government, which shall be at least equal to that at present securing
the payment of the said bonds. The Manila Railroad Company shall pay to
the Government an annual amortization of not less than two per centum of
the amount loaned, and shall continue until the loan is repaid in full.
SEC. 3. The sum of thirteen million three hundred fifty thousand

pesos is hereby appropriated out of any funds in the Treasury not otherwise
appropriated, to carry out the provisions of this Act.
577
578
AN ACT AUTHORIZING THE “MANILA RAILROAD COMPANY

OF THE PHILIPPINE ISLANDS” TO DISCONTINUE AND
ABANDON ITS RAILROAD LINES BETWEEN: (a) THE
MUNICIPALITIES OF PASIG (ROSARIO) AND MONTALBAN,
PROVINCE OF RIZAL; (b) THE RAILROAD STATION AT PACO,
MANILA AND THE MUNICIPALITY OF NAIC, PROVINCE OF
CAVITE; (c) THE MUNICIPALITIES OF BATANGAS AND
BAUAN, PROVINCE OF BATANGAS; AND (d) THE
MUNICIPALITIES OF LEGASPI AND TABACO, PROVINCE OF
ALBAY
SECTION 1. The Manila Railroad Company of the Philippine Islands

is hereby authorized to discontinue and abandon the following lines of
railroad : (1) between the municipalities of Pasig (Rosario) and Montalban,
in the Province of Rizal; (2) between the railroad station at Paco, Manila,
and the municipality of Naic, in the Province of Cavite; (3) between the
municipalities of Batangas and Bauan, in the Province of Batangas; and
(4) between the municipalities of Legaspi and Tabaco, in the Province of
Albay.
SEC. 2. The Manila Railroad Company of the Philippine Islands is

further authorized to dispose of the personal and real property belonging to
said lines in such form and subject to such conditions as the directors of
the Company and the trustee of the mortgage on said property may consider
most advantageous for the interests of said company. The proceeds of the
sale of said property in so far as the same is affected by the mortgage for
the protection of the bondholders shall be applied in accordance with the
provisions of the deed of mortgage.
579
AN ACT TO REGULATE THE COMMERCIAL USE OF AIRPLANES

OPERATED BY AVIATION SCHOOLS AND BY COMPANIES
HOLDING A FRANCHISE
SECTION 1. Aviation schools duly recognized by the Government

of the Philippines and air service companies operating under a franchise
duly granted may be issues a permit by the Secretary of Public Works and
Communications to rent their airplanes for purposes of air photography,
land survey or exploration, advertising and sanitary control, and for
occasional trips between points not served by an air service operating with
a franchise, or between such points as are covered by a franchise in the
event of inability on the part of the operating concern to furnish the service.
580
AN ACT TO AMEND SECTION EIGHT, ARTICLE TWO, CHAPTER

TWO, AND SECTION SEVENTY-THREE, ARTICLE TWO,
CHAPTER FOUR, OF ACT NUMBERED THIRTY-NINE
HUNDRED AND NINETY-TWO KNOWN AS THE REVISED
MOTOR VEHICLE LAW
By it enacted by the National Assembly of the Philippines:
SECTION 1. Section eight, Article two, Chapter two, of Act

Numbered Thirty-nine and ninety-two is hereby amended to read as follows:
“SEC. 8. Tariff or registration fees.— (a) Except as otherwise

specifically provided in this Act, each application shall be accompanied by
an annual registration fee in accordance with the following tariff:
“(b) Private automobiles with pneumatic rubber tires, originally

manufacture for less than six passengers, the sum of thirty-five pesos, private
automobiles with pneumatic tires originally manufactured for six to eight
passengers, the sum of sixty pesos.
“(c) Private motor trucks, passenger busses and trailers with

pneumatic rubber tires, the sum of three pesos per hundred kilograms of
maximum allowable gross weight or fraction thereof.
“(d) Private motor trucks, passenger busses and trailers with solid
rubber tires, or with part solid and part pneumatic rubber tires, the sum of
five pesos per hundred kilograms of maximum allowable gross weight or
fraction thereof.
“(e) Private motor vehicles with metallic tires in whole or in part,

the sum of twelve pesos per hundred kilograms of maximum allowable
gross weight or fraction thereof.
581
“(f) Private motorcycles of two or three wheels and bicycles with

motor attachments, the sum of twelve pesos.
“(g) The fee for registration of passenger trucks, trailers and motorcycles
under the public utility, garage, transportation contractor, or any hire
classification shall be two times the fees prescribed for private motor
vehicles: Provided, That passenger automobiles under the public utility
shall pay the following rates; for less than six passengers, sixty-five pesos;
for six to eight passengers, ninety-five pesos.
“(h) Dealers.--— No fees shall be charged for the general

registration of motor vehicles contemplated under the dealers classification,
but in lieu thereof they shall pay the special fees for dealer’s number plates
provided hereinafter.
“(i) Registration under the “Government motor vehicle”

classifications shall be free of charge, on request of the chief of bureau or
office concerned.
“(j) Tourist bringing their own motor vehicles to the Islands, shall
be exempt from payment of registration under this Act during but not after
the first ninety days of their sojourn.
“After the first ninety days, they shall be subject to the regular fees,
except that the Director of Public Works or his deputies may, in his
discretion, require payment of fees in advance for only the fractional part
of a year for which the tourist except to remain in the Islands.
“(k) Motor vehicles not intended to be operated or used upon any

public highway or motor vehicles operated on highways not constructed
nor maintained by the Government, or to be placed out of service for any
other reason, shall be exempt from payment of the registration fees provided
in this Act : Provided, however, That no refund, credit for, or reimbursement
of registrations or parts thereof shall be made to any owner on account of a
motor vehicle which is taken out of service subsequent to the payment of
such registration fee.
582
“(l) The maximum allowable gross weight of a motor truck, passenger

bus, or trailer, upon which to compute the registration fee therefor, shall be
obtained by regulations to be promulgated by the Director of Public Works.
The Director of Public Works shall, upon passage of this Act and from time
to time thereafter as the needs of the service may require, prepare suitable
tables of maximum allowable loads per wheel for different sizes and kinds
of tires, and shall issue regulations for the proper use thereof subject to the
approval of the Secretary of Public Works and Communications, as provided
in section four (a) hereof. The registration fees provided in this Act for
public utility trucks (T. P. U.) shall be payable in two equal instalments,
first to be paid on or before the last day of February, and the second to the
paid on or before the last day of July.”
SEC. 2. Section seventy-three, Article two, Chapter four, of Act

Numbered thirty-nine hundred and ninety-two, is hereby amended to read
as follows:
“SEC. 73. Disposal of moneys collected.-— Twenty per centum of

the money collected under the provisions of this Act shall accrue to the
road and bridge funds of the different provinces and chartered cities in
proportion to the cedula sales during the next previous year and the
remaining eighty per centum shall be deposited in the Philippine Treasury
to create a special fund for the construction and maintenance of national
and provincial roads and bridges, as well as the streets and bridges in the
chartered cities to be allotted by the Secretary of Public Works and
Communications for projects recommended by the Director of Public Works
in the different provinces and chartered cities in the following proportion:
“Twenty per cent in proportion to the combined length of first and

second-class roads maintained throughout the next previous year.
“Twenty per cent in proportion to land area.
“Twenty per cent in proportion to the number of motor vehicles owned

in the province or city.
583
“Twenty per cent at the discretion of the Secretary of Public Works

and Communications for maintenance and improvement of important roads
and bridges supporting heavy motor vehicle traffic.
“ For the purposes of this Act, the subprovinces of Catanduanes and

Siquijor shall be considered as separate provinces, independent from the
Provinces of Albay and Oriental Negros, respectively.”
SEC. 3. This Act shall take effect on January first, nineteen hundred
and thirty-seven.
584
AN ACT TO AMEND SECTION ONE OF ACT NUMBERED THIRTY-

FIVE HUNDRED AND NINETY-TWO KNOWN AS THE “PORT
WORKS FUND ACT” AND TO PROVIDE FOR THE
DISBURSEMENT OF SAID FUND SO AS TO INCLUDE THE
COST OF THE INVESTIGATION, CONTRUCTION,
IMPROVEMENT AND MAINTENANCE OF BUOYS,
LIGHTHOUSES, AND OTHER AIDS TO MARINE NAVIGATION,
AND FOR AIRPORTS AND LANDING FIELDS OF THE
COMMONWEALTH GOVERNMENT, INCLUDING THE
PURCHASE AND MAINTENANCE OF THE NECESSARY
EQUIPMENT FOR THOSE PURPOSES
SECTION 1. Section one of Act Numbered Thirty-five hundred and

ninety-two is hereby amended to read as follows:
“SECTION 1. All wharfage fees collected from the date on which

this Act takes effect, under the provisions of section fourteen of the Tariff
Law of nineteen- hundred and nine, shall be deposited in the National
Treasury and shall form a special fund to be known as “Port Works Fund,”
which shall be disbursed in accordance with acts of the National Assembly
for the investigation, construction, improvement and maintenance of ports,
buoys, lighthouses, and other aids to navigation, and for airports and landing
fields, including the purchase and maintenance of necessary equipment:
Provided, however, That fifty per centum of the fund so formed is hereby
set aside for the necessary expenses of maintenance of ports, buoys,
lighthouses, and other aids to navigation and for airports and landing fields
belonging to the National Government, or constructed by authority of the
National Assembly, including dredging and improvements incidental to such
maintenance, to be allotted by the Secretary of Public Works and
Communications, with the approval of the President, upon certification by
the Secretary of Finance that the necessary funds are available: Provided,
further, That out of the remaining fifty per centum of the fund so formed
585
there is hereby set aside annually such sum as may be necessary to reimburse
the general fund for the payment of interest charges on account of bonds
issued by the National Government for the construction and improvement
of ports.”
586
AN ACT PROVIDING FOR THE PROMOTION AND DEVELOPMENT

OF CIVIL AVIATION IN THE PHILIPPINES, CREATING THE
BUREAU OF AERONAUTICS, AND DEFINING ITS POWERS,
DUTIES AND FUNCTIONS
CHAPTER I.—Title and Purpose
SECTION 1. Title of Act.— The short title of this Act shall be the
“Civil Aviation Law.”
SEC. 2. Purpose and scope of Act.— The general purpose of this Act
shall be the promotion, development, and control of air commerce, air
communication, and all forms of civil aeronautics in the Philippines.
CHAPTER II.—Definition of terms
SEC. 3. Words and phrases defined.--—The following definitions

shall control in the application and construction of this Act:
(a) The term “air commerce” shall be taken to mean and include
transportation in whole or in part by aircraft of person or property for hire,
the navigation of aircraft in furtherance of a business, or the navigation of
aircraft from one place to another for operation in the conduct of a business.
(b) The term “aircraft shall be taken to mean and include airplanes,
seaplanes, airships, balloons, and/or any other vehicles or contrivances now
known or hereafter invented, used, or designated for navigation or flight in
the air without other support than the atmosphere, except parachutes or
other safety contrivances designed for such navigation but used primarily
as safety equipment.
(c) The term “airman” shall be taken to mean and include any
587
individual (including the person in command, and pilot, mechanic, or

member of the crew) who engages or assists in the navigation or operation
of aircraft while under way, and any individual who is in charge of the
inspection, overhauling, or repairing of aircraft or of parachutes.
(d) The term “scheduled airline” shall be taken to mean an airline

operating between specific points for the purposes of air commerce on a
regular schedule in accordance with minimum requirements prescribed by
this Act and/or regulations issued hereunder, except as prevented by an act
of God, public enemy, weather conditions, strikes, or other causes beyond
the control of such person.
(e) The term “person” where the context reasonably permits, shall
be taken to mean and include individuals, partnerships, joint enterprises,
associations, and/or corporations.
(f) The term “airworthiness” shall be taken to mean that an aircraft,

its engines, propellers and other components and accessories, are of proper
design and construction, and are safe for air navigation purposes; and such
design and construction being consistent with accepted engineering practice
and in accordance with aerodynamic laws and aircraft science.
(g) The term “airport” shall be taken to mean any locality, either on
water or on land, which is adapted for the landing and taking off of aircraft
and which provides facilities for shelter, supply, and repair of aircraft, or a
place used regularly for receiving or discharging passengers or cargo by
air.
(h) The term “airport of entry” shall be taken to mean any airport
designated by the Secretary of Finance as an airport of entry for civil aircraft
arriving in the Philippines from any place outside thereof and for passengers
and merchandise carried on such aircraft.
(i) The term “emergency landing field” shall be taken to mean any
locality, either on water or on land which is adapted for landing and taking
off of aircraft, is located along an airway, and is intermediate to airports
588
connected by the airways, but which is not equipped with facilities for
shelter, supply, and repair of aircraft and is not used regularly for the receipt
or discharge of passengers or cargo by air.
(j) The term “air navigation facility” shall include any airport,
emergency landing field, light or other signal structure, radio directional
finding facility, radio or other electrical communication facility, and any
other structure or facility used as an aid to air navigation.
(k) The term “civil airway” shall be taken to mean a route in the
navigable airspace designated by the Director of Aeronautics as a route
suitable for air commerce.
(l) The term “Secretary” shall mean the Secretary of Public Works
and Communications, and the terms “Director” shall mean the Director of
Aeronautics unless otherwise specified.
CHAPTER III.—Bureau of Aeronautics
SEC. 4. Bureau of Aeronautics.— There is hereby created a Bureau

of Aeronautics to be immediately organized under the Department of Public
Works and Communications; and the Secretary is authorized, any provision
of law to the contrary notwithstanding, to assign, either temporarily or
permanently, any employee or employees and equipment from any of the
bureaus and offices under his Department, and to transfer any item of
appropriation for salaries and wages from any such bureaus and offices to
the Bureau of Aeronautics. He may also employ such personnel as may be
necessary for the functioning of the Bureau from any funds pertaining to
aviation which may be at his disposal. The Secretary shall render the
President of the Philippines and the National Assembly, at the next regular
session, a report of all assignment of employees, employment of personnel,
and transfer of appropriations made in accordance with the provision of
this section.
SEC. 5. Official of the Bureau of Aeronautics.— The Bureau of

Aeronautics shall be under the immediate executive control and supervision
589
of the Director of Aeronautics who shall be appointed by the President of

the Philippine with the consent of the Commission on Appointments of the
National Assembly, and shall have the rank and salary of Director of a first
class Bureau.
CHAPTER IV.— Power and Duties of the Director
SEC. 6. General authority and responsibility.— Subject to the general

control and supervision of the Secretary, the Director of Aeronautics is
charged with the responsibility and vested with the authority to carry out
the purposes and enforce the provisions of this Act, and the rules and
regulations issued hereunder; and he shall have, among others, the following
specific powers and duties:
(a) Designation and establishment of civil airways.— To designate

and establish civil airways, acquire, construct, operate, and maintain along
such airways all necessary emergency and intermediate landing fields and
other air navigation facilities utilizing the equipment, supplies, materials
and assistance of existing agencies of the Government, so far as practicable.
(b) Research and experimentation.— To conduct research and

experimentation regarding the possibility of aircraft construction and the
use of Philippine products in such construction
(c) Public use of Government air navigation facilities.— Except as

otherwise herein expressly provided, to make available for public use, under
such conditions and to such extent as he may deem advisable, all civil air
navigation facilities, owned or operated by the Philippine Government, or
any subdivision thereof: Provided, however, That no exclusive right shall
be given for the use of any civil airway, airport, emergency landing field,
or other air navigation facility under his jurisdiction.
(d) Publication of aeronautical bulletins.— To publish from the time

to time, whenever he may deem it advisable, a bulletin setting forth such
matters relating to aeronautics including air navigation treaties and laws,
and regulations and decisions thereunder.
590
(e) Acquisition of aircraft and air navigation facilities.— To acquire

and operate such aircraft and air navigation facilities as may be necessary
for executing the duties and functions prescribed by this Act.
(f) Exchanging aeronautical information with foreign government.—

To foster the development of aviation by exchanging with foreign
governments information pertaining to civil aviation, and by such other
means as may be consistent with the provisions of this Act.
(g) Investigation of accidents.— To investigate accidents in civil

air navigation in the Philippines, including the attending facts, conditions
and circumstances, and for that purpose the Director, or any officer or
employee of the Bureau of Aeronautics, designated by him in writing for
the purpose, is authorized to hold public hearings in such places or at such
times he shall deem practical, and for the purpose of such hearings,
administer oaths, examine witnesses, require the preservation of evidence
and issue subpoenas for the attendance and testimony of witnesses or the
production of books, papers, documents, exhibits or other evidence, or the
taking of depositions before any designated individual competent to
administer oaths. Witnesses summoned or whose depositors are taken shall
receive the same fee and mileage as witnesses in the court of First Instance.
All evidence taken at the hearing shall be recorded and forwarded to the
Director. At the conclusion of the investigation or hearing on any such
accident, or as soon thereafter as circumstances permit, the Director shall
make a complete report thereof to the Secretary, who shall, if he deems it
in public interest, make a statement of the probable cause or causes of the
accidents, except that when the accident has resulted in serious or fatal
injury, it shall be the duty of the Secretary to make public such statement.
Neither any such statement nor any report of such investigation or hearing,
nor any part thereof shall be admitted as evidence or used for any purpose
in any suit or action growing out of any matter referred to in any such
statement, investigation, hearing or report thereof.
(h) Issuance of permits and licenses.— To issue permits and licenses

to persons duly and legally qualified and entitled thereto, according to the
provisions of this Act and the rules and regulations made and issued
591
hereunder, provided that permits and licenses to engage in air commerce

shall be issued only by the Secretary of Public Works and Communications
with the approval of the President of the Philippines.
(i) Examination and rating of civilian aviation schools.— To provide

for the examination and rating of the civilian aviation schools giving flying
and ground instruction, as to the adequacy of the course of instruction, as
to suitability and airworthiness of the equipment, and as to the competency
of the instructors. The examinations and ratings provided for this subsection
shall only be made upon request of the owners or representatives of the air
navigations facilities or schools.
(j) Promulgations of rules and regulations.— To issues such rules

and regulations as may be necessary or proper to effectuate the purposes
and enforce the provisions of this Act. Such rules and regulations shall
have the same force and effect as though they were written herein, and
shall pertain to, among other matters:
(1) The design structural modification, repair and airworthiness or

aircraft power plant, and accessories, and parachutes used in connection
with such aircraft;
(2) The examination and rating of airmen;
(3) The examination and rating of airlines engaged in air commerce

and the establishment of minimum safety standard for the operation thereof;
(4) The establishment of aircraft rules;
(5) The issuance, suspension, cancellation and revocation of licenses

for aircraft and airmen.
CHAPTER V.— Unlawful Acts and Penalties
SEC. 7. Unlawful acts.— It shall be unlawful for any person to operate

or navigate any aircraft in the Philippines in violation of any of the provisions
592
of this Act, or any rules and regulations made and issued in pursuance
thereof, or the terms and conditions of any permit or license granted
hereunder, or in violation of any of the following specific provisions and
requirements:
(a) Flying over prohibited areas; carrying of photographic equipment

in aircraft.— No aircraft shall be operated or navigated within the limits of
prohibited areas defined in proclamations or executive orders from time to
time issued by competent military and civil authorities, including the
President of the United States, and the President of the Philippines; no
airman or passenger shall take any picture by photograph or sketching of
said prohibited areas; and no aircraft other than those of the United States
and Philippine Governments shall carry any apparatus which can be used
for taking photographs, except as permitted by and in conformity with such
proclamations or executive orders.
(b) Airworthiness of aircraft.— No aircraft shall be operated or

navigated without a license duly issued in accordance with the provisions
of this Act. No aircraft shall be licensed under this Act unless it shall be
found to be airworthy in accordance with the rules and regulations issued
hereunder.
(c) Licenses for airmen.— No person shall act as airman without a

license, and no person, who is not a citizen of the Philippines, shall act as
airman or engage in air commerce in the Philippines, except as herein
expressly provided.
(d) Ownership of aircraft.— No person shall engage in air commerce

and no aircraft shall be operated or navigated in air commerce, without
having been granted a license or permit therefor issued in accordance with
the provisions of this Act. Except as may be necessary in the operations of
an international air service, no permit shall be issued for the operation of
any aircraft in air commerce that is registered under the laws of any foreign
country, or any aircraft that is not absolutely owned and exclusively
controlled by:
593
(1) A citizen or citizens of the Philippines, or
(2) A partnership or other joint enterprise of which each member is

a citizen of the Philippines; or
(3) A corporation organized under the laws of the Philippines, of

which the directing head and at least two-thirds of the directors and
managing officers are citizens of the Philippines; and of which at least
sixty-six and two-thirds per centum of the voting interest of the corporation
is owned absolutely and controlled exclusively by citizens of the Philippines;
or
(4) The Government of the United States or of the Philippines or a

political subdivision thereof.
SEC. 8. Penalties. — Any person who shall violate any provisions of

this Act, or any rules and regulations made and issued in accordance
therewith, shall be punished by a fine of not more than five thousand pesos
or not more than six months imprisonment, or both.
CHAPTER VI. — Miscellaneous
SEC. 9. Acts repealed.— Acts Numbered Three thousand nine hundred

nine and Three thousand nine hundred ninety-six and such other acts or
parts of acts as are in conflict with the provisions hereof are hereby repealed.
SEC. 10. Exemptions.— The conditions and requirements of this Act,

and the rules and regulations issued hereunder shall not apply to aircraft
and airmen of the armed forces of the United States and Philippine
Governments.
CHAPTER VII. — Appropriations
SEC. 11. Annual appropriation for the Bureau of Aeronautics.— To

effectively carry out the purpose of this Act, there is hereby appropriated
the sum of one hundred thousand pesos, out of the funds in the Philippine
Treasury, not otherwise appropriated: Provided, That any unexpended
594
balance of said sum on December thirty-first, nineteen hundred and thirty-

seven, shall be reverted to the Philippine Treasury.
The Division of Aeronautics is hereby abolished and its activities,

appropriations, properties, equipment, records, assets and liabilities are
transferred to the Bureau of Aeronautics.
SEC. 12. Effective date of Act. — This Act shall take effect upon its
approval.
595
AN ACT TO AMEND PARAGRAPH SIX OF SUB-SECTION TWO OF

SECTION ONE OF ACTS NUMBERED FIFTEEN HUNDRED
AND TEN, TWENTY-EIGHT HUNDRED AND THIRTY-SIX,
AND THIRY-THREE HUNDRED AND NINETY-NINE, TO
AUTHORIZE THE MANILA RAILROAD COMPANY OF THE
PHILIPPINE ISLANDS TO CONSTRUCT TOLL VIADUCTS,
TOLL BRIDGES, AND TOLL TUNNELS
SECTION 1. Paragraph six of subsection two section one of Acts

Numbered Fifteen hundred and ten, Twenty-eight hundred and thirty-six
and Thirty-three hundred and ninety-nine is hereby amended so as to read
as follows:
“The Manila Railroad Company of the Philippine Islands, aside from

the powers vested upon it by its articles of incorporation, shall also have
the right to conduct water to the railroad for the use of the same and to
cross any railway, tramway, river, stream, water course, lake, canal, and
shore, and to construct, alter, substitute, and maintain for the operation of
said railways any and all tracks, (single, double, or more), bridges, tunnels,
embankments, aqueducts, viaducts, culverts, fences, and other structures,
passage, conduits, drains, abutment, arches, cuttings, and stockades, toll
viaducts, toll bridges, and toll tunnels, and all depots, stations, engine houses,
car houses, freight houses, wood houses, and other buildings; and all
machine shops and other shops, water tanks, turntables, superstructures,
erections and fixtures; and all elevators, warehouses, wharves, piers, and
other facilities, terminal or otherwise, for operating said railroads, and also
any hotel, or restaurant at any station, terminal, or any other place convenient
to the travelling public.”
596
AN ACT TO AMEND SECTIONS THREE AND TWENTY-ONE OF ACT

NUMBERED FOUR THOUSAND TWO HUNDRED AND
SEVENTY-ONE, ENTITLED “AN ACT GRANTING A
FRANCHISE TO PHILIPPINE AERIAL TAXI COMPANY,
SECTION 1. Section three of Act Numbered Four thousand two

hundred and seventy-one is hereby amended so as to read as follows:
“SEC. 3. The grantee shall fix just, reasonable and uniform rates for
the transportation of passengers and freight, subject to the supervision and
approval of the Public Service Commission. Any order of the Public Service
Commission made under this section shall be subject to review by the
Supreme Court in the same manner as the decisions of said Commission in
other cases.
“All aircraft used by the grantee shall be licensed by the Government

of the Philippines, and, together with its accessories and equipment, shall
be at all times modern, safe and first class; it shall be provided with a radio
transmitting set whenever the voyage is in excess of three hours, it shall
carry a pilot and an assistant and shall have as many life preservers as there
may be passengers.
“The service and equipment of the grantee shall be at all time subject
to inspection and supervision by the Department of Public Works and
Communications whose decisions shall be binding until revoked or annulled
by the courts for excess or abuse of jurisdiction.
“The grantee shall comply with the provisions of Act Numbered

Thirty-nine hundred and nine, as amended by Act Numbered Thirty-nine
hundred and ninety-six, and the regulations promulgated thereunder from
time to time.”
597
SEC. 2. Section twenty-one of said Act is hereby amended by the

inserting at the end of said section the following proviso: Provided, however,
That with the approval of the President of the Philippines, the grantee may
lease, transfer, grant the usufruct of sell or assign, wholly or partially, this
franchise and rights and privileges acquired thereunder to, or it may merge
with, another corporation holding a franchise from the Government.”
598
AN ACT TO AMEND SECTIONS THREE AND TWENTY-ONE OF ACT

NUMBERED FOUR THOUSAND TWO HUNDRED AND
SEVENTY-TWO, ENTITLED “AN ACT GRANTING A
FRANCHISE TO ILOILO-NEGROS AIR EXPRESS COMPANY,
SECTION 1. Section three of Act Numbered Four thousand two

hundred and seventy-two is hereby amended to read as follows:
“SEC. 3. The grantee shall fix just, reasonable and uniform rates for
the transportation of passengers and freight, subject to the supervision and
approval of the Public Service Commission. Any order of the Public Service
Commission made under this section shall be subject to review by the
Supreme Court in the same manner as the decisions of said Commission in
other cases.
“All aircraft used by the grantee shall be licensed by the Government

of the Philippines, and, together with its accessories and equipment, shall
be at all times modern, safe and first class; it shall be provided with a radio
transmitting set whenever the voyage is in excess of one hour, and whenever
the voyage is in excess three hours, it shall carry a pilot and an assistant
and shall have as many life preservers as there may be passengers.
“The service and equipment of the grantee shall be at all time subject
to inspection and supervision by the Department of Public Works and
Communications whose decisions shall be binding until revoked or annulled
by the courts for excess or abuse of jurisdiction.
“The grantee shall comply with the provisions of Act Numbered

Thirty-nine hundred and nine, as amended by Act Numbered Thirty-nine
hundred and ninety-six, and the regulations promulgated thereunder from
time to time.”
599
SEC. 2. Section twenty-one of said Act is hereby amended by the

inserting at the end of said section the following proviso:
“Provided, however, That with the approval of the President of the

Philippines, the grantee may lease, transfer, grant the usufruct of sell or
assign, wholly or partially, this franchise and rights and privileges acquired
thereunder to, or it may merge with, another corporation holding a franchise
from this Government.”
600
AN ACT PROVIDING FOR THE AWARD OF AIR MAIL CONTRACTS

AND APPROPRIATING THE NECESSARY FUNDS THEREFOR
SECTION 1. The Secretary of Public Works and Communications,

with the approval of the President of the Philippines, is authorized to enter,
from time to time, into contracts for the transportation of mails by air
between any points within the Philippines and between the Philippines and
foreign countries for periods not to exceed five years. The base rate of pay
in awarding such contract shall in no case exceed seventy-five centavos
per airplane mile for transporting a mail load not to exceed three hundred
pounds. In fixing the base rate of pay, the passenger capacity of the planes
carrying the mails should be taken into consideration. Payment for
transportation shall be at the base rate fixed in the contract for the first
three hundred pounds of mail, or fraction thereof, plus one-tenth of such
base rate for each additional one hundred pounds of mail or fraction thereof,
computed at the end of each calendar month on the basis of the average
mail load carried by mile over the route during such month. With reference
to the airmail to foreign countries the pay shall be in accordance with the
provisions of Act Numbered Three thousand eight hundred and sixty-nine.
SEC. 2. The Secretary of Public Works and Communications is

hereby authorized to grant to the parties to whom the contacts for the
transportation of the mails by air above mentioned are awarded, the right,
to use any and all navigation facilities, including landing fields, now or
hereafter opened, operated, or controlled by the Government of the
Philippines or any subdivision thereof.
SEC. 3. The Secretary of Public Works and Communications, with

the approval of the President of the Philippines, is hereby authorized to
make and issue such rules and regulations as may be necessary to carry out
601
SEC. 4. To carry out the provisions of this Act, the sum of one hundred
and fifty thousand pesos for the year nineteen hundred and thirty-seven is
hereby appropriated out of the funds in the Philippine Treasury not otherwise
appropriated. The amount hereby appropriated shall be disbursed by the
Secretary of Public Works and Communications. The unexpected balance
at the end of such year shall revert to the unappropriated general funds in
the Philippine Treasury.
SEC. 5. In case of any deficiency in any annual appropriation made

for the purposes of this Act, the Secretary of Public Works and
Communications, with the approval of the President of the Philippines,
may use, for the payment of services of airmail contractors as herein
provided, the whole of the revenue derived from the additional postage
collected on airmails, or such portion thereof as he may deem convenient.
and thirty-seven.
602
AN ACT PROVIDING FOR THE ABOLITION OF THE ROAD TAX
SECTION 1. The road tax imposed by section twenty-one hundred

and fifty-eight of the Administrative Code is abolished, and all delinquencies
by reason thereof are condoned.
603
AN ACT ABOLISHING THE MANILA HARBOR BOARD, MAKING

THE NECESSARY PROVISIONS FOR THE ADMINISTRATIVE
ADJUSTMENTS RESULTING THEREFROM, AND
APPROPRIATING FUNDS THEREFOR
SECTION 1. The Manila Harbour Board, created by Act Numbered

Three thousand and two, as amended by Act Numbered Thirty-eight hundred
and fifty-one, is hereby abolished and the powers and duties conferred
upon it by existing law shall hereafter be exercised by the Bureau of Customs
subject to the administrative control and supervision of the Department of
Finance.
SEC. 2. The unexpended balance of the Manila Harbor Board Fund

existing on the date of the approval of this Act shall revert to the General
Fund of the National Government, and the personnel, equipment, materials,
records, and other properties of the said Board shall be transferred to the
Bureau of Customs, to be used for the same purposes for which they were
originally intended.
SEC. 3. For the payment of the salaries of the necessary personnel

and for the exercise of the powers and the performance of the duties
mentioned in section one hereof, during the remaining period of the year
nineteen hundred and thirty-eight, by the Bureau of Customs, there is
appropriated out of the unappropriated portion of the General Fund in the
Philippine Treasury the sum of forty-two thousand five hundred pesos, or
so much thereof as may be necessary.
Approved, June 3, 1938.
604
AN ACT TO PROHIBIT THE CONSTRUCTION OF OBSTRUCTIONS

HAZARDOUS TO AIR NAVIGATION, THE CONSTRUCTION
OF PRIVATE LANDING FIELDS ABUTTING OTHER LANDING
FIELDS, AND PRESCRIBING PENALTIES FOR VIOLATIONS
OF SAME
SECTION 1. The Secretary of Public Works and Communications is

empowered, for the safety of air navigation, to prohibit the construction
within three hundred meters of any established landing fields of any
buildings, line poles and towers, masts, or any structures or obstructions
whatsoever which project to a height of from four to ten meters above
structures that will stand on the ground to a height of thirty meters or more
will be constructed within a distance of three kilometers from the boundary
of any established airport or landing field without the prior approval of the
Secretary of Public Works and Communications.
SEC. 2. Any radio towers, tents, poles or any tall structures

constructed outside the limits of a city or town proper which project to a
height of thirty meters or more above the ground shall be painted and shall
have obstacle lights in accordance with the rules and regulations to be
prepared by the Bureau of Aeronautics.
SEC. 3. It is prohibited to construct or operate an airport or landing

field within a radius of five kilometers of another airport or landing field.
SEC. 4. Any person or persons who violate any provisions of this

Act shall be punished by a fine of not more than five hundred pesos or
imprisonment of not more than six months, or both, in the discretion of the
court.
SEC. 5. This act shall take effect upon its approval.

605
ACT TO REGULATE FOR A LIMITED PERIOD, IN VIEW OF THE

EXISTENCE OF A STATE OF NATIONAL EMERGENCY, THE
TRANSFER OF VESSELS AND OF SHIPPING FACILITIES AND
TO PROVIDE PENALTIES FOR THE VIOLATION THEREOF
SECTION 1. The existence of a state of a National emergency caused

by the present war among several nations of the world requires that the
transfer of vessels and shipping facilities owned in whole or in part by
Filipino citizens, or by corporations organized under the laws of the
Philippines, or registered therein, be regulated to maintain the strictest
neutrality and to meet the shortage of bottoms for the transportation of
products between the Philippines and foreign countries and in the coastwise
trade.
SEC. 2. Until the date of adjournment of the next regular session of

the National Assembly, no person, corporation, association, or entity
whatsoever shall, without the approval of the President of the Philippines:
(a) transfer to or place under any foreign registry or flag any vessel owned
in whole or in part by a citizen of the Philippines or by corporation organized
under the laws of the Philippines or by a corporation organized under the
laws of the Philippines; or (b) sell, mortgage, lease, charter, deliver, or in
any manner transfer, directly or indirectly, to any person not a citizen of
the United States or of the Philippines, (1) any such vessel or any interest
therein or (2) any vessel registered under the laws of the Philippines or
bearing a certificate of Philippine registry, or any interest therein, or (3)
any shipyard, drydock, shipbuilding or ship-repairing plant or facilities, or
any interest therein; or (c) enter into any contract, agreement, or
understanding, to construct a vessel within the Philippines for or to be
delivered to any person not a citizen of the United States or of the Philippines
or to be placed under any foreign registry or flag, without expressly
stipulating that such construction shall not begin while this Act is in full
force and effect; or (d) make any agreement or effect any understanding
606
whereby there is vested in or for the benefit of any person not a citizen of
the United States or the Philippines, the controlling interest or the majority
of the voting power in a corporation which is organized under the laws of
the Philippines, and which owns any vessel, shipyard, drydock, or ship-
building or ship-repairing plant or facilities; or (e) cause or procure any
vessel constructed in whole or in part within the Philippines, which has
never cleared for any foreign port, to depart from a port of the Philippines
before it has been registered under the laws of the Philippines.
SEC. 3. Whoever violates, or attempts or conspires to violate any of

the provisions of section two of this Act shall be guilty of an offense and
shall be punished by a fine of not more than five thousand pesos or by
imprisonment for not more than five years, or by both such fine and
imprisonment, in the discretion of the court; Provided, That, if such violation
is committed by a corporation the directors approving such action, and the
manager, managing director or the person charged with the management of
such corporation shall be criminally responsible therefor.
SEC. 4. Any vessel, shipyard, drydock, ship-building or ship-repairing

plant or facilities, or interest therein, sold, mortgaged, leased, chartered,
delivered or transferred, or agreed to be sold, mortgaged, leased, chartered,
delivered or transferred, in violation of any of the provisions of section
two of this Act, and any stocks, bonds, or other securities, sold and
transferred, or agreed to be sold or transferred in violation of any such
provisions, or any vessels departing in violation of the provisions of
subsection (e) of the aforesaid section shall be forfeited to the Government
of the Philippines.
SEC. 5. Any sale, mortgage, lease, charter, delivery, transfer, or

agreement therefor, made in violation of section two of this Act, shall be
void, whether made within or without the Philippines, and any consideration
paid therefor or deposited in connection therewith shall be recoverable at
the suit of the person who has paid or deposited the same, or of his successors
or assigns, after the tender of such vessel, shipyard, drydock, ship-building
or ship-repairing plant or facilities, or interest therein, or of such stocks,
bonds, or other securities, to the persons entitled thereto, or after forfeiture
607
thereof to the Government of the Philippines, unless the person to whom

the considerations was paid, or in whose interest it was deposited, entered
into the transaction in the honest belief that the person who paid or deposited
such consideration was a citizen of the United States or of the Philippines.
The provisions of this section shall apply to any sale, mortgage, lease,
charter, delivery, transfer, or agreement thereof, which on the date of the
approval of this Act was not registered in accordance with law.
SEC. 6. All forfeitures incurred under the provisions of this Act may
be prosecuted and disposed of in the same manner as forfeitures incurred
for offenses against Customs Laws in so far as the same may be applicable.
608
AN ACT AMENDING SECTIONS THREE, SIX, AND SEVEN OF

COMMONWEALTH ACT NUMBERED ONE HUNDRED SIXTY-
EIGHT, KNOWN AS THE CIVIL AVIATION LAW, AND
INSERTING SECTION SIX AND ONE-HALF IN THE SAME
Be it enacted by the National Assembly of the Philippines.
SECTION 1. Paragraph (1) of section three of Commonwealth Act

Numbered One hundred and sixty-eight, known as the Civil Aviation Law,
is amended to read as follows:
“(1) The terms ‘Department’ and ‘Secretary’ shall mean the

Department of National Defense and the Secretary of National Defense,
respectively, and the term ‘Director’ shall mean the Director of Aeronautics
unless otherwise specified.”
SEC. 2. Paragraphs (h), (i), and (j) of section six of said Act are
“(h) Issuance of permits and licenses. – To issue permits and licenses

to persons duly and legally qualified and entitled thereto, according to the
provisions of this Act and the rules and regulations made and issued
hereunder, provided that permits and licenses to engage in air commerce
shall be issued only by the Secretary of National Defense with the approval
of the President of the Philippines.”
“(i) Examination, rating and supervision of civilian aviation schools

and any other person giving flying and/or ground instruction. – To provide
for the examination and rating of civilian aviation schools giving flying
and/or ground instruction, as to the adequacy of the course of instruction,
as to the suitability and airworthiness of the equipment, and as to the
competency of the instructors. The Director of Aeronautics is empowered
to supervise all activities of said schools and any other person giving flying
and/or ground instruction.”
609
“(j) Promulgation of rules and regulations. – To issue such rules

and regulations as may be necessary or proper to effectuate the purposes
and enforce the provisions of this Act. Such rules and regulations shall
have the same force and effect as though they were written herein, and
shall pertain to, among other matters:
“(1) The design, structural modification, repair and airworthiness of

aircraft, aircraft power plant, and accessories, and parachutes used in
connection with such aircraft;
“(2) The examination and rating of airmen;
“(3) The examination and rating of airlines engaged in air commerce

and the establishment of minimum safety standard for the operation thereof;
“(4) Air traffic;
“(5) The issuance, suspension, cancellation and revocation of licenses

for aircraft and airmen;
“(6) The examination, rating, operation, and use of air navigation

facilities.”
SEC. 3. There is inserted between sections six and seven of said Act
a new section known as section six and one-half, which shall read as follows:
“Sec. 6-1/2. Authority of officers to administer oaths. – Besides the

Director, the Assistant to the Director and the chiefs of divisions in the
Bureau of Aeronautics shall have authority to administer oaths in the
transaction of official business.”
SEC. 4. Paragraph (a) of section seven of said Act is amended to

read as follows:
“(a) Flying over prohibited areas; aerial photography; carrying of

photographic equipment in aircraft. – No aircraft shall be operated or
navigated with the limits of prohibited areas defined in proclamations or
610
executive orders from time to time issued by competent military and civil
authorities, including the President of the United States, and the President
of the Philippines. No airman or passenger of an aircraft shall take aerial
photography or picture by photograph or sketching of any part of the
Philippines: Provided, however, That this provision shall not apply to aerial
photography or picture by photograph or sketching of any part of the
Philippines officially made by the United States and Philippine governments
and by agencies expressly authorized by the President of the Philippines.
“No aircraft other than those of the United States and Philippine
Governments shall carry any apparatus, instrument, or device which can
be used for aerial photography or sketching of any part of the Philippines
without first securing written permission from the President of the
Philippines.”
Approved, May 11, 1940.
611
COMMONWEALTH AcT NO. 548
AN ACT TO REGULATE AND CONTROL THE USE OF AND TRAFFIC

ON NATIONAL ROADS AS WELL AS CONSTRUCTIONS
ALONG THE SAME, PRESCRIBING PENALTIES FOR THE
VIOLATION THEREOF
SECTION 1. To promote safe transit upon, and avoid obstructions

on, roads and streets designated as national roads by acts of the National
Assembly or by executive orders of the President of the Philippines, the
Director of Public Works, with the approval of the Secretary of Public
Works and Communications, shall promulgate the necessary rules and
regulations to regulate and control the use of and traffic on such roads and
streets. Such rules and regulations, with the approval of the President, may
contain provisions controlling or regulating the construction of buildings
or other structures within a reasonable distance from and along national
roads. Such roads may be temporarily closed to any or all classes of traffic
by the Director of Public Works or his duly authorized representative
whenever the condition of the road or the traffic thereon makes such action
necessary or advisable in the public interest, or for a specified period, with
the approval of the Secretary of Public Works and Communications.
SEC. 2. It shall be unlawful for any person to convert any part of any
national road to his private use or in any manner to obstruct or damage the
same or any bridge, culvert, drainage ditch, road sign, or other appurtenance
pertaining thereto.
SEC. 3. It shall be the duty of every Constabulary officer and every

provincial, city or municipal police officer to enforce the provisions of this
Act and the rules and regulations issued under the authority of the same.
SEC. 4. Any person found guilty of violating any of the provisions of

this Act or the rules and regulations issued thereunder shall be punished,
for the first conviction, by a fine of not less than ten nor more than three
612
months, or both; for the second conviction, a fine of not less than twenty
nor more than one hundred pesos or by imprisonment for not more than six
months, or both; for any subsequent conviction, a fine of not less than fifty
nor more than five hundred pesos or by imprisonment for not more than
one year or both.
613
AN ACT TO REGULATE THE TRANSFER OF VESSELS AND OF

SHIPPING FACILITIES AND TO PROVIDE PENALTIES FOR
THE VIOLATION THEREOF
SECTION 1. No person, corporation, association, or entity

whatsoever shall, without the approval of the President of the Philippines:
(a) transfer to or place under any foreign registry or flag any vessel owned
in whole or in part by a citizen of the Philippines or by a corporation
organized under the laws of the Philippines; or (b) sell, mortgage, lease,
charter, deliver, or in any manner transfer, directly or indirectly, to any
person not a citizen of the United States or of the Philippines, (1) any such
vessel or any interest therein, or (2) any vessel registered under the laws of
the Philippines or bearing a certificate of Philippine registry, or any interest
therein, or (3) any shipyard, drydock, shipbuilding or ship-repairing plant
or facilities, or any interest therein; or (c) enter into any contract, agreement,
or understanding, to construct a vessel within the Philippines for or to be
delivered to any person not a citizen of the United States or of the Philippines
or to be placed under any foreign registry or flag, without expressly
stipulating that such construction shall not begin while this Act is in full
force and effect; or (d) make any agreement or effect any understanding
whereby there is vested in in or for the benefit of any person not a citizen
of the United States or of the Philippines, the controlling interest or the
majority of the voting power in a corporation which is organized under the
laws of the Philippines, and which owns any vessel, shipyard, drydock, or
ship-building or ship-repairing plant or facilities; or (e) cause or procure
any vessel constructed in whole or in part within the Philippines, which
has never cleared for any foreign port, to depart from a port of the Philippines
before it has been registered under the laws of the Philippines.
SEC. 2. Whosoever violates or attempts or conspires to violate any

of the provisions of section one of this Act shall be guilty of an offense and
shall be punished by a fine of not more than five thousand pesos or by
imprisonment for not more than five years, or by both: Provided, That,if
614
such violation is committed by a corporation the directors approving such

action, and the manager, managing director or the person charged with the
management of such corporation shall be criminally responsible therefor.
SEC. 3. Any vessel, shipyard, drydock, ship-building or ship-repairing

plant or facilities, or interest therein, sold, mortgaged, leased, chartered,
delivered, or transferred, or agreed to be sold, mortgaged, leased, chartered,
delivered, or transferred in violation of any of the provisions of section one
of this Act, and any stocks, bonds, or other securities, sold and transferred,
or agreed to be sold or transferred in violation of any such provisions, or
any vessel departing in violation of the provisions of subsection (e) of the
aforesaid section shall be forfeited to the Government of the Philippines.
SEC. 4. Any sale, mortgage, lease, charter, delivery, transfer, or

agreement therefor, made in violation of section one of this Act, shall be
void, whether made within or without the Philippines, and any consideration
paid therefor or deposited in connection therewith shall be recoverable at
the suit of the person who has paid or deposited the same, or of his successors
or assigns, after the tender of such vessel, shipyard, drydock, ship-building
or ship-repairing plant or facilities, or interest therein, or of such stocks,
bonds or other securities, to the persons entitled thereto, or after forfeiture
thereof to the Government of the Philippines, unless the person to whom
the consideration was paid, or in whose interest it was deposited, entered
into the transaction in the honest belief that the person who paid or deposited
such consideration was a citizen of the United States or of the Philippines.
The provisions of this Section shall apply to any sale, mortgage, lease,
charter, delivery, transfer, or agreement therefor, which on the date of the
approval of this Act was not registered in accordance with law.
SEC. 5. All forfeitures incurred under the provisions of this Act

may be prosecuted and disposed of in the same manner as forfeitures
incurred for offenses against Customs Laws in so far as the same may be
applicable.
Approved, August 22, 1940.

615
AN ACT AUTHORIZING THE TRANSFER TO THE “PHILIPPINE

AIRLINES, INCORPORATED,” OF THE FRANCHISE OF THE
“PHILIPPINE AERIAL TAXI COMPANY, INCORPORATED,” TO
OPERATE AN AERIAL TRANSPORTATION SERVICE IN THE
PHILIPPINES
SECTION 1. The transfer to the “Philippine Airlines, Incorporated,”

of the franchise of the “Philippine Aerial Taxi Company, Incorporated,”
granted under Act Numbered Forty-two hundred seventy-one, to operate
an aerial transportation service in the Philippines is authorized. The
“Philippine Airlines, Incorporated” shall therefore be subject to the
provisions of said Act and its amendments, under section one thereof, insofar
as the franchise is concerned.
APPROVED, June 11, 1941.
616
AN ACT AUTHORIZING THE PAN AMERICAN AIRWAYS C0MPANY

TO SELL, ASSIGN OR OTHERWISE TRANSFER ITS
FRANCHISE AND ALL PROPERTY AND RIGHTS ACQUIRED
UNDER ACT NUMBERED FORTY-TWO HUNDRED AND
FORTY-NINE IN FAVOR OF THE PAN AMERICAN AIRWAYS
INCORPORATED
SECTION 1. The Pan American Airways Company is authorized to

sell, lease, convey, grant, assign, or otherwise transfer its franchise and all
property and rights acquired under Act Numbered Forty-two hundred and
forty-nine, in favor of the Pan American Airways Incorporated, subject to
all the conditions, terms, restrictions and limitations of said franchise.
SEC. 2. It is expressly provided that’ in the event the Government

should desire to maintain and operate for itself the plant and the enterprise,
the sale and conveyance of which is herein authorized, the grantee shall
surrender its franchise and will turn over to the Government all serviceable
equipments, at cost, less reasonable depreciation.
617

AN ACT AMENDING SECTION ONE OF COMMONWEALTH
ACT NUMBERED TWO HUNDRED AND TWENTY-THREE
AND APPROPRIATING THREE HUNDRED THOUSAND PESOS
AS ADDITIONAL FUND FOR THE AWARD OF INCREASED AIR
MAIL CONTRACTS
SECTION 1. Section one of Commonwealth Act Numbered Two

hundred and twenty-three is amended to read as follows:
“SECTION 1. The Secretary of Public Works and Communications,

with the approval of the President of the Philippines, is authorized to enter,
from time to time, into contracts for the transportation of mails by air
between any points within the Philippines for periods not to exceed five
years. The base rate of pay in awarding such contract shall in no case exceed
one peso per airplane mile for transporting a mail load not to exceed three
hundred pounds. In fixing the base rate of pay, the passenger capacity of
the planes carrying the mails should be taken into consideration. Payment
for transportation shall be at the base rate fixed in the contract for the first
three hundred pounds of mail, or fraction thereof, plus one-tenth of such
base rate for each additional one hundred pounds of mail or fraction thereof,
computed at the end of each calendar month on the basis of the average
mail load carried by mile over the route during such months.
SEC. 2. There is appropriated, out of any funds in the Philippine

Treasury not otherwise appropriated, the sum of three hundred thousand
pesos as additional fund for the extension of air routes and for the increase
in base rate of the air mail contracts: Provided, That in subsequent years
the sum of four hundred and fifty thousand pesos shall be included in the
Appropriation Act. The unexpended balance at the end of such year shall
revert to the unappropriated general funds in the Philippine Treasury.
618
AN ACT TO REHABILITATE THE MANILA RAILROAD COMPANY,

APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives in Congress

assembled;
SECTION 1. The sum of twenty million pesos is appropriated out of

any funds in the National Treasury not otherwise appropriated, which sum
shall be loaned without interest by the Government of the Commonwealth
of the Philippines to the Manila Railroad Company for the purchase of
locomotives, cars, rails, ties, and other equipment and accessories of railroad
transportation ; for the repair of tracks and bridges ; for the reorganization
and salaries of personnel ; and for any other purposes to rehabilitate the
said Company to enable it to operate on pre-war basis.
SEC. 2. Fifty per centum of the net profits every year of the Manila
Railroad Company shall, within fifteen days after such profits are declared,
be turned over to the National Treasury until the sum of twenty million
pesos, loaned to said Company by the Government by virtue of the
provisions of this Act, is fully paid.
SEC. 3. The funds herein appropriated shall not be released unless

and until the Secretary of Finance and the Auditor General shall have
certified to the President that there are existing and available funds in the
National Treasury in excess of the sums appropriated in the General
Appropriation Law for the fiscal year ending June thirty, nineteen hundred
and forty-six, and the priority appropriations established by law : Provided,
further, That the President may order the release in full or in installments
of the funds herein authorized as the Secretary of Finance and the Auditor
General may certify to their existence and availability.
APPROVED, November 1, 1945.
619
BATAS PAMBANSA BLG. 13

Be it enacted by the Batasang Pambansa in session assembled:
SECTION 1. Appropriation of Funds. – The following sums or so

much thereof as may be necessary, are hereby appropriated out of the
General Fund in the National Treasury, including the proceeds of authorized
bond issues and/or loans and grants from local or foreign institutions, to
implement public works and highway projects of the National Government,
as specified hereunder:
TITLE A – TRANSPORT PROJECTS
For the construction, improvement, rehabilitation, reconstruction, and/

or completion of the following projects, including detailed engineering
and acquisition of sites, equipment, materials, supplies, and services to be
used directly for the projects:
XXX
XXX
(b) RAILWAYS
National Capital Region

Light Rail Transit System ................................ P 200,000,000
TOTAL FOR RAILWAYS …………… ........ .P 200,000,000

===========
(c) PORTS
XXX
XXX
620
Region X
8. Port of Cagayan de Oro ( Cagayan

De Oro City) .........................................................63,000,000
Region XI
9. Port of Davao (Davao City and

Davao del Sur) .............................................................53,000,000
TOTAL FOR PORTS ............................. P589,000,000

==========
(d) AIRPORTS AND AIR NAVIGATIONAL FACILITIES
Region I
1. Laoag International Airport

(Laoag City) .........................................................46,000,000
Region IV
2. Puerto Princesa Airport (Puerto

Princesa City) ...................................................... 13,000,000
Region VI
3. Kalibo Airport (Aklan) ......................................... 10,000,000
Region VII
4. Dumaguete Airport (Dumaguete City) ................. 11,000,000
Region IX
5. Pagadian Airport (Pagadian City) ........................ 11,000,000

6. Cagayan de Sulu Airport (Tawi-Tawi) .................. 11,000,000
621
Region XI
7. General Santos Airport (General

Santos City ..................................................22,000,000
8. Bislig Airport (Surigao del Sur) ..................__________ 10,000,000
TOTAL FOR AIRPORTS AND AIR

NAVIGATIONAL FACILITIES .............. P ____________
134,000,000
TOTAL FOR TRANSPORT P 3,823,000,000

============
XXX
XXX
SEC. 10. Reports. – The head of the bureau or agency concerned

shall submit to the Minister of Public Works, Transportation and
Communications or the Minister of Public Highways, as the case may be,
quarterly accomplished reports, copies of which shall be furnished the
President (Prime Minister), the National Economic and Development
Authority, the Ministry of the Budget, the Speaker of the Batasang Pambansa
and the Chairman of the Regional Development Council of the Region
where the project is undertaken. At the end of the calendar year, the Minister
of Public Works, Transportation and Communications and the Minister of
Public Highways, shall submit their annual accomplishment reports which
shall include the appropriations released as of the end of the calendar year,
the extent of the work accomplished, further works to be done to complete
the program of broad categories of public works and public highway projects
and recommendations, if any, for the transfer of appropriations or changes
of program to be incorporated in the succeeding appropriations measure,
to the President (Prime Minister), with copies furnished the National
Economic Development Authority, the Ministry of the BudgeT and the
Batasang Pambansa through the Speaker.
SEC. 11. Separability. – If any provision of this Act is declared

unconstitutional, the remaining provisions shall remain in force.
622
SEC. 12. Effectivity. – This Act shall take effect immediately upon
approval.
623
AN ACT PROVIDING FOR THE ISSUANCE OF PERMANENT

NUMBER PLATES TO OWNERS OF MOTOR VEHICLES AND
TRAILERS, AMENDING FOR THE PURPOSE SECTION
SEVENTEEN OF REPUBLIC ACT NUMBERED FORTY-ONE
HUNDRED AND THIRTY-SIX
Be it enacted by the Batasang Pambansa in session assemble:
SECTION 1. Section seventeen of Republic Act Numbered Forty-

one hundred and thirty-six, otherwise known as the Land Transportation
and Traffic Code, is hereby amended to read as follows:
“Section 17. Number plates, preparation and issuance of. —
“The Bureau of Land Transportation shall cause reflective number

plates to be prepared and issued to owners of motor vehicles and trailers
registered and recorded in the Bureau of Land Transportation under this
Act, as amended, for a reasonable fee: Provided, That the fee shall be subject
to the approval of the Minister of Transportation and Communications in
consultation with the Minister of Finance, and, Provided, further, That the
identification, numbers and letters of any motor vehicle number plate shall
be permanently assigned to such motor vehicle during its lifetime. No motor
vehicles shall be exempted from payment of registration fees. Motor vehicles
for hire and privately owned motor vehicles shall bear plates of reflective
materials so designed and painted with different colors to distinguish one
class from another.
“The transfer of motor vehicle plates whether temporary or regular,

validating tags and/or stickers from one motor vehicle to another without
permit from the Bureau of Land Transportation, except security number
plates on authorized vehicles, shall be punishable with a fine of not less
than Five Thousand Pesos (P5,000.00) and/or imprisonment of six months
at the discretion of the Court.
624
“For purposes of renewal of registration of motor vehicles, the

Director or his Deputies shall issue validating tags and stickers indicating
the year of registry, charging a reasonable fee: Provided, That the fee shall
be subject to the approval of the Minister of Transportation and
Communications in consultation with the Minister of Finance.”
Approved: November 14, 1979.
625

SECTION 1. Appropriation of Funds. — The following sums, or so

much thereof as may be necessary, are hereby appropriated out of the
General Fund in the National Treasury not otherwise appropriated in any
subsequent General Appropriations Acts, including the proceeds of bond
issues and/or loans and grants from local or foreign institutions, to
implement public works and highway projects of the National Government
for the years beginning 1980, as prescribed hereunder:
TITLE A. — Rural Infrastructure Support System
For the construction, improvement, provision, rehabilitation,

reconstruction and/or completion of Rural Infrastructure Support Systems
to service Bagong Lipunan Improvement of Sites and Services (BLISS)
and related programs covering the provision of community centers,
warehousing facilities, multi-purpose pavements and associated facilities,
including engineering and acquisition of sites, equipment, materials,
supplies and services to be used directly for the projects.
National Capital Region P400,000

Region I 20,100,000
Region II 13,100,000
Region III 4,100,000
Region IV 24,800,000
Region V 13,200,000
Region VI 14,800,000
Region VII 15,100,000
Region VIII 16,700,000
Region IX 9,900,000
Region X 13,700,000
Region XI 9,200,000
626
Region XII 10,500,000

Nationwide 24,400,000
——————
Total, Title A P200,000,000
TITLE B. — Rural Water Supply

reconstruction and/or completion of rural water supply facilities, including
engineering and acquisition of sites, equipment, materials, supplies and
services to be used directly for the projects.
B-1. Wells, Springs, and Other Point Source Development

Projects.
National Capital Region P10,000,000

Region I 129,000,000
Region IV 134,000,000
Region V 105,000,000
Region VI 134,000,000
Region IX 66,000,000
Region X 60,000,000
Region XI 83,000,000
–——————
Total Title B-1 P1,263,000,000
B-2n Communal Faucet Systems

Region I 274,000,000
627
Region II 188,000,000
Region IV 344,000,000
Region V 251,000,000
Region VI 320,000,000
Region IX 171,000,000
Region X 170,000,000
Region XI 217,000,000
——————
Total Title B-2 P3,076,000,000
——————
Grand Total, Title B P4,339,000,000
TITLE C. — National and Communal Irrigation, and Farm Systems

Development

reconstruction and/or completion of national and communal irrigation, and
farm systems development projects, including engineering and acquisition
of sites, equipment, materials, supplies and services to be used directly for
the projects.
C-1. Communal, Irrigation and Farm Systems Development
Region I P193,000,000
Region II 208,000,000
Region IV 195,000,000
Region V 122,000,000
Region VI 100,000,000
628
Region IX 105,000,000
Region X 163,000,000
Region XI 207,000,000
——————
Total Title C-1 P1,906,000,000
——————
C-2. National Irrigation Projects
Region II P1,020,000,000
——————
1. Magat Multipurpose Project (IBRD-assisted Project)
966,000,000
2. Soil Erosion Control and Watershed Management Project,

Magat River Multi-Purpose Watershed Area (IBRD-assisted
Project) 54,000,000
Region III P186,000,000
3. Soil Erosion Control and Watershed Management Project,
Upper Pampanga River Project Watershed Area, Nueva Ecija
(IBRD-assisted Project) 186,000,000
Region IV P1,084,000,000
——————
4. Medium Scale Irrigation Project, Mindoro and Palawan (IBRD-
assisted Project) 900,000,000
5. Laguna de Bay Development Project, Part B, Cavite (ADB-
Region X P119,000,000
——————
6. Lower Agusan Irrigation Project, Agusan del Norte (KFW-
Assisted Project) 119,000,000
Nationwide P360,000,000
629
7. Various Watershed Management Projects 360,000,000

——————
Total, Title C-2 P2,769,000,000
——————
Grand Total, Title C P4,675,000,000
TITLE D. — Small Water Impounding Management Projects

reconstruction and/or completion of small water impounding management
(SWIM) projects, including engineering and acquisition of sites, equipment,
materials, supplies and services to be used directly for the projects in support
of the Bagong Lipunan Improvement of Sites and Services (BLISS) and
related programs.

Region I 100,000,000
Region II 100,000,000
Region IV 100,000,000
Region V 100,000,000
Region VI 100,000,000
Region IX 100,000,000
Region X 100,000,000
——————
Total Title D P1,400,000,000
TITLE E. — Farm Drainage

reconstruction and/or completion of drainage facilities and related structures
630
for communal irrigation systems, including engineering and acquisition of

sites, equipment, materials, supplies and services to be used directly for
the projects.
Region I P38,000,000
Region V 7,000,000
Region VI 7,000,000
Region IX 3,000,000
Region X 14,000,000
Region XI 7,000,000
—————
Total, Title E P167,000,000
TITLE F. — Dredging of Rivers
For the dredging of rivers and inland waters and removal of

obstructions and encroachments, including engineering and acquisition of
sites, equipment, materials, supplies and services to be used directly for
the projects.
Region I P10,000,000
Region V 10,000,000
631
Region X 10,000,000
——————
Total, Title F P190,000,000
TITLE G. — Flood and Erosion Control for Highways and Railways

reconstruction and/or completion of flood and erosion control projects for
highways, including but not limited to embankments, revetments, cross-
drains, raising and construction of bridges and improvement of bridge
approaches, detours, and related structures, and the engineering and
acquisition of sites, equipment, materials, supplies and services to be used
directly for the projects.

Region I 210,000,000
Region V 35,000,000
Region X 40,000,000
——————
Total, Title G P1,415,000,000
TITLE H. — Reclamation of Swamps and Inland Waters and Lands
For the reclamation of swamps and inland waters and lands, including
services to be used directly for the projects, and provision of infrastructure.

Region V 55,000,000
632
Region IX 125,000,000
Region X 82,000,000
——————
Total, Title H P1,892,000,000
TITLE I. — Ports

reconstruction and/or completion of municipal fishing ports and national
ports, including engineering and acquisition of sites, equipment, materials,
I-1. Municipal Fishing Ports

Region I 30,000,000
Region V 30,000,000
Region X 20,000,000
——————
Total Title I-1 P420,000,000
633
I-2. National Ports
Region VI P65,000,000
1. Port of Iloilo (3rd IBRD — assisted Port Package), Iloilo City
65,000,000
Region VII P245,000,000

2. Port of Cebu (3rd IBRD — assisted Port Package), Cebu City
245,000,000
Region VIII P100,000,000

3. Port of Isabel (Support to Industrial Estate), Leyte 100,000,000
Region IX P122,000,000
4. Port Zamboanga (3rd IBRD-assisted Port Package),
Zamboanga City 122,000,000
Region X P71,000,000
5. Port of Cagayan de Oro (3rd IBRD-assisted Port Package),
Cagayan de Oro City) 71,000,000
Total Title I-2 P603,000,000

——————
Grand Total, Title I P1,023,000,000
TITLE J. — School Buildings
For the Construction, improvement, provision, rehabilitation,

reconstruction and/or completion of school buildings, including engineering
and acquisition of sites, equipment, materials, supplies and services to be
used directly for the projects.

Region I 163,000,000
Region II 163,000,000
Region IV 325,000,000
634
Region V 244,000,000
Region VI 216,000,000
Region IX 190,000,000
Region X 163,000,000
Region XI 244,000,000
——————
Total, Title J P3,003,000,000
TITLE K. — National Buildings

reconstruction and/or completion of national buildings, and related facilities,
K—1. Regional, Provincial, City and Municipal Sports and

Recreational Centers

Region I 40,000,000
Region V 40,000,000
Region X 40,000,000
——————
Total Title K-1 P540,000,000
635
K-2. Court of First Instance and Related Judicial Buildings

Region I 22,000,000
Region V 18,000,000
Region X 28,000,000
Total, Title K-2 P290,000,000
——————
Grand Total, Title K 830,000,000
TITLE L. — Urban Infrastructure

reconstruction and/or completion of small-scale infrastructure facilities,
such as communal water supply (tankers, tanks and public standpipes),
public toilets, sewage disposal, drainage and roads in low-income areas,

Metro Manila Infrastructure, Utilities, and Engineering (IBRD-
636
TITLE M. — Feasibility Studies and Engineering Activities
For the conduct of feasibility studies and investigations, surveys,

preparation of plans and designs, and other engineering activities for
infrastructure projects.
M-1 Public Works

Nationwide P200,000,000
Total, Title M-1 P200,000,000
M-2 Public Highways

Nationwide
1. Feasibility Studies and Preliminary Engineering P50,000,000

2. Detailed Engineering 50,000,000
Total, Title M-2 P100,000,000
——————
Grand Total, Title M P300,000,000
SEC. 2. Detailed Plans and Programs of Work. — Prior to the actual

construction, improvement rehabilitation and or construction of the projects
covered in whole or in part by appropriations in this Act, approval of detailed
engineering plans and programs of work by the Minister of Public Works
or the Minister of Public Highways, as the case may be, shall be obtained
for every project with an estimated cost greater than P1,000,000; by the
line of Bureau of Agency Head or, in the case of staff bureaus by the Ministry
Head concerned, for every project with an estimated cost greater than
P500,000 but not more than P1,000,000; by the Regional Director concerned
for every project with an estimated cost greater than P200,000 but not more
than P500,000; and by the District or City Engineer concerned for every
project with an estimated cost of P200,000 or less. The program of work
shall include, among other things, estimates of the work items, quantities
and costs, a PERT/CPM (Program Evaluation Review Technique/ Critical
Path Method) network of the project activities, and monthly cash flows.
The program of work shall cover at least a usable portion of the project and
no construction shall be started for portions of the project that are less than
637
usable, except projects requiring stage construction, in which case continuity

of construction up to the completion of a usable portion shall be assured.
Once the program of work is approved, it shall serve as the basis for the
implementation of the project and the corresponding expenditure of funds.
No project shall be divided into smaller portions for the purpose of
circumventing the provisions of this Section.
SEC. 3. Local Labor. — In the implementation of projects covered

by appropriations in this Act, the required unskilled labor shall be procured,
where available, from the sitio, barangay, poblacion, municipality, or city
where the project is located, and, for this purpose, a certification from the
City of Municipal Mayor or Barangay Captain, as the case may be, shall be
secured as to the availability of the unskilled labor. Skilled labor shall be
procured, where available from within the province where the project is
located. Specialized skilled labor may be procured outside the province
where the project is located.
SEC. 4. Labor-Intensive Methods. — Whenever technically and

economically feasible, labor-intensive methods shall be used in the
prosecution of the projects authorized in this Act: Provided, That (a) the
estimated financial cost of each project done by labor-intensive methods
does not exceed the cost of the best alternative construction method defined
by the agency concerned by more than ten per centum (10%), (b) the
estimated duration of the project done by labor-intensive methods does not
exceed the duration of the best alternative method defined by the agency
concerned by more than fifty per centum (50%), and (c) the employment
of workers in the projects will not unduly impair the labor requirements of
agricultural production in consultation with the Barangay Captain
concerned: Provided, finally, That before any such project is prosecuted,
the agency concerned shall prepare at least two alternative methods of
construction based on the same plans and structural standards, one being
labor-intensive together with a comparative evaluation of projected financial
and economic costs, employment generation, and technical quality; such
comparison shall be the basis for selecting the most advantageous
construction techniques to be employed in terms of the criteria aforestated.
The District or City Engineer concerned shall certify in the program of
638
work that he has maximized the use of labor-intensive methods in accordance

with the foregoing criteria. The purchase of hand tools and other work
implements for labor-intensive methods may be charged against project
funds not exceeding five per centum (5%) of the estimated project cost.
These implements may be turned over to the laborers with the payment
therefor deductible from their wages on reasonable installments during the
duration of their employment in the project.
The agencies concerned shall refer to and take into consideration the
relevant studies of the Ministry of Public Works and the Ministry of Public
Highways for the identification of project work items or activities for labor-
intensive methods of construction.
SEC. 5. Pre-Construction Activities. — In the implementation of

the work, a general plan of operation shall be prepared to indicate the
methods and the procedures to be followed. This plan will cover and
organize all relevant fields of study, delineation or responsibilities for
undertaking each phase, specifying or analyzing all analytical procedures
and resources to be required for conducting the studies.
SEC. 6. Purchase of Materials and Supplies. — The Minister of

Public Works or the Minister of Public Highways, as the case may be, is
authorized, subject to bidding and auditing requirements, to procure the
necessary materials and supplies for the construction, reconstruction,
improvement, repair and/or rehabilitation of any project covered by
appropriations in this Act. When these materials and supplies are obtainable
locally in the province or city where the project is located, the same may be
procured by the District or City Engineer or, in the case of special projects,
the Project Manager, without prior authority from the Minister of Public
Works or the Minister of Public Highways, as the case may be, subject to
bidding and auditing requirements. No surcharge shall be imposed for the
service of procuring such materials and supplies. The expenditures for these
materials and supplies shall not exceed the estimated cost for the same as
stated in the approved program of work.
SEC. 7. Prosecution of projects by Administration. — Any project

covered by appropriations in this Act with a cost of P500,000.00 or less,
based on the approved program of work under Section 2 hereof, may be
639
done by administration or force account by the bureau or agency concerned

without benefit of public bidding. Every project with a cost of more than
P500,000.00 shall be advertised for public bidding: Provided, That subject
to the guidelines to be jointly promulgated by the Minister of Public
Highways and the Minister of Public Works, preference shall be given to
qualified bidders within the region where the proposed project shall be
constructed. If there are no acceptable bids for such project, the project
may be prosecuted by administration by the bureau or agency concerned
after securing the approval of the Minister of Public Works or the Minister
of Public Highways, as the case may be, if the project cost is P2,000,000.00
or less; and the approval of the President of the Philippines, upon
recommendation of the Minister of Public Works or the Minister of Public
Highways, as the case may be, if the project cost is more than P2,000,000.00.
In case of urgent necessity or emergency, however, a project costing more
than P500,00.00 may be prosecuted by administration, without prior public
bidding, by the bureau or agency concerned subject to the approval by the
Minister of Public Works or the Minister of Public Highways, as the case
may be, if the project cost is P2,000,000.00 or less; and to the approval of
the President of the Philippines, upon recommendation of the Minister of
Public Works or the Minister of Public Highways, as the case may be, if
the project cost is more than P2,000,000.00.
SEC. 8. Negotiated Contracts. — Pursuant to the general policy of

undertaking projects by contract after public bidding, no project covered
by appropriations in this Act shall be prosecuted by negotiated contract
except: (a) in cases where public bidding has failed to produce bids
acceptable to the bureau or agency concerned; or (b) in case of urgent
necessity or emergency or danger to life and property; or (c) in case of a
project under contract, in which case the agency concerned may negotiate
with the contractor of the on-going project to undertake the additional work
under the same contractual terms and conditions of the on-going contract
less credit for mobilization, except in cases of extraordinary inflation or
state of recession declared by the Government: Provided, That no negative
slippage is incurred by the contractor in any of his on-going projects:
Provided, further, That the additional work is within his contracting
capabilities. Authority to negotiate contracts for projects under these
640
exceptional cases shall be subject to prior approval by the Minister of Public

Works or the Minister of Public Highways, as the case may be, if the project
cost is P2,000,000.00 or less; and to approval by the President of the
Philippines, upon recommendation of the Minister of Public Works or the
Minister of Public Highways, as the case may be, if the project cost is more
than P2,000,000.
SEC. 9. Allocation of Regionwide Lump-Sum Appropriations. —

The lump-sum appropriations authorized in this Act for each region shall
be allocated to specific areas and projects within the region concerned on
the basis of their conformance to the national and regional plans, and taking
into account the size and potential of the area, population, low rate of
employment and/or underemployment, and degree of infrastructure needs,
and allocating such projects as equitably as possible among the provinces
and cities within the region.
SEC. 10. Reports. — The head of the bureau or agency concerned

shall submit to the Minister of Public Works or the Minister of Public
Highways, as the case may be, quarterly accomplishment reports, copies
of which shall be furnished the President (Prime Minister). the National
Economic and Development Authority, the Ministry of the Budget, the
Speaker of the Batasang Pambansa and the Chairman of the Regional
Development Council of the region where the project is undertaken. At the
end of the calendar year, the Minister of Public Works and the Minister of
Public Highways shall submit their annual accomplishment reports which
shall include the appropriations released as of the end of the calendar year,
the extent of the work accomplished, further works to be done to complete
the program of broad categories of public works and public highways
projects, and recommendations, if any, for transfer of appropriations or
changes of program to be incorporated in the succeeding appropriations
measure, to the President (Prime Minister), with copies furnished the
National Economic and Development Authority, the Ministry of the Budget
and the Batasang Pambansa through the Speaker.
SEC. 11. Separability. — If any provision of this Act is declared

641
SEC. 12. Effectivity. — This Act shall take effect immediately upon
approval.
Approved : December 20, 1979.
642
AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT

NUMBERED FORTY-ONE HUNDRED AND THIRTY-SIX,
OTHERWISE KNOWN AS THE LAND TRANSPORTATION AND
TRAFFIC CODE
Section 1. Sections five, seven and eight of Republic Act Numbered

Forty-one hundred and thirty-six, otherwise known as the Land
Transportation and Traffic Code, are hereby amended to read as follows:
“Sec. 5. Compulsory registration of motor vehicles. — (a) All motor

vehicles and trailer of any type used or operated on or upon any highway of
the Philippines must be registered with the Bureau of Land Transportation
for the current year in accordance with the provisions of this Act.
“(b) The dates of annual registration of motor vehicles shall be based

on a registration scheme to be prepared by the Bureau of Land Transportation
subject to the approval of the Minister of Transportation and
Communications. The scheme shall provide for a system that will distribute
the registration of motor vehicles equitably over different months in a
calendar year. Said scheme and rates shall not be changed more often than
once every three (3) years, and only upon due notice given to the public at
least ninety (90) calendar days before the effectivity of such registration
scheme.
“Any registration of motor vehicles not renewed or before the date

fixed by the Bureau of Land Transportation shall become delinquent and
invalid.
“(c) Dealer’s Report. — Dealers shall submit to the Director of Land

Transportation a report concerning the sale or transfer of or any other
transaction involving motor vehicles, including such information as
importation, manufacturing data, and number of stocks remaining, as the
Director may require for the effective enforcement of the provisions of this
Act within five (5) working days from such sale, transfer or transaction.
643
Such dealers shall furnish also the buyer with a duplicate copy thereof,
duly authenticated by the Director of Land Transportation.
“(d) Unauthorized repair or change of engine serial number. —

Unless satisfactorily explained to and approved by the Director of Land
Transportation, no repair involving the restoration of the original or
registered serial number as stamped on the engine shall be allowed. No
change involving an alteration of or tampering with the original or registered
engine serial number of a motor vehicle shall ever be allowed, and any
motor vehicle with a trace of having its engine serial number altered or
tampered with shall be refused registration or re-registration.
“(e) Encumbrances of motor vehicles. — Mortgages, attachments,

and other encumbrances of motor vehicles, in order to be valid against
third parties must be recorded in the Bureau. Voluntary transactions or
voluntary encumbrances shall likewise be properly recorded on the face of
all outstanding copies of the certificates of registration of the vehicle
concerned.
“Cancellation or foreclosure of such mortgages, attachments, and

other encumbrances shall likewise be recorded, and in the absence of such
cancellation, no certificate of registration shall be issued without the
corresponding notation of mortgage, attachment and/or other encumbrances.
“Records of encumbrances of motor vehicles shall be kept by the

Bureau of Land Transportation in chronological and/or alpha-numerical
and/or any other sequence and shall contain, among other things, the time,
date, number of the entry, and other cross-indexing entries for immediate
data retrieval, in a ‘Book of Motor Vehicle Encumbrances’ referring to the
creation, cancellation or foreclosure of the aforesaid mortgages, attachments
or to other encumbrances.
“The Bureau of Land Transportation shall collect a fee of Fifty Pesos

(P50.00) for every annotation of a mortgage, attachment and/or other
encumbrances or cancellation thereof.”
644
“Section 7. Registration Classification. — The classification of

vehicles shall be:
(1) Private
(2) For Hire
(3) Government
(4) Diplomatic
“Within ninety days from the approval of this Act, appropriate

subclassifications shall be determined by the Director of Land
Transportation with the approval of the Minister of Transportation and
Communications, taking into consideration the body configuration, weight,
cubic displacement and/or number of cylinders of the motor vehicle.
“(a) Private. — Motor vehicles registered under this classification

shall not be used for hire under any circumstance.
“(b) For Hire. — Motor vehicles registered under this classification

are those covered by certificates of public convenience, or special permits
issued by the Board of Transportation, and shall be subject to the provisions
of the Public Service Act and the rules and regulations issued thereunder,
as well as the provisions of this Act.
“(c) Government. — Motor vehicles owned by the government of

the Philippines or any of its political subdivisions shall be registered under
this classification.
“(d) Diplomatic. — Motor vehicles owned by foreign governments

or by their duly accredited diplomatic officers in the Philippines and used
in the discharged of their official duties.
Tourists bringing their own motor vehicles to the Philippines may

however, without registering such motor vehicles, use the same during but
not after ninety (90) days of their sojourn: Provided, That the motor vehicle
645
displays the number plates for the current year of some other country or
state, and said number plates as well as the name and address (permanent
and temporary) of the thereof are registered in the Bureau of Land
Transportation prior to the operation of the motor vehicle.
“If such tourists remain in the Philippines longer than ninety (90) days,
the motor vehicle shall not be operated unless registered in accordance
with this Act and the corresponding registration fees paid.”
“Sec. 8. Schedule of Registration Fees. — Except as otherwise

specifically provided in this Act, each application for registration of motor
vehicles shall be accompanied by an annual registration fee in accordance
with a schedule to be prepared by the Bureau of Land Transportation subject
to the approval of the Minister of Transportation and Communications in
consultation with the Minister of Finance. The fees in the schedule shall be
fixed on the basis of the model, body configuration, weight, cubic
displacement or number of cylinders of the motor vehicle and other relevant
factors. Said schedule shall not be changed more often than once every
three (3) years, and only upon due notice given to the public at least ninety
(90) calendar days before the effectivity of such schedule: “Provided,
however, That beginning the calendar year 1981 and until changed pursuant
to this section, the schedule of registration fees shall be as follows:
Gas Diesel
Bantam Cars 0-1600 cc P 300.00 P 250.00
For Hire 450.00 400.00
Light Cars 1601-1280 cc 600.00 550.00

For Hire 900.00 800.00
Heavy Cars 2801-over 1,500.00 1,200.00

For Hire 2,500.00 2,000.00
646
Gas Diesel
Trucks/Buses, including
all types of utility vehicles
(per 100 kg. of gross
vehicle weight)
Private 20.00 12.00
For Hire 30.00 15.00
Trailers (per 100 kg.

of gross weight)
Private P10.00
For Hire 12.00
Mopeds (0-49 cc) P 60.00
Morpeds (50-cc over)

Without sidecar Private 120.00
With sidecar Private 150.00
Without sidecar For Hire 150.00
With sidecar For Hire 240.00
“Provided, further, That registration fees for vehicles owned by the

government and its political subdivisions shall be determined in consultation
with the Minister of the Budget and within the constraints imposed by
available funds: Provided, furthermore, That all motor vehicles, regardless
of type and/or classification, which are exclusively used and operated on
private roads shall be subject to a recording fee of One Hundred Pesos
(P100.00) only, for which stickers in lieu of regular plates shall be issued
corresponding to the year of recording: Provided, finally, that such vehicles
shall not be required to be physically brought to the office of the Bureau of
Land Transportation for recording nor to be covered by compulsory vehicle
insurance as required for registration purposes.
“For uniformity of registration fees and classification, all manufacturers

and/or assemblers of motor vehicles, prior to the introduction of a new
model motor vehicle, shall submit the specifications of said model to the
647
Bureau of Land Transportation which shall determine under what schedule

of registration fees the said model should fall.”
Sec. 2. All references to the “Land Transportation Commission” or

“Commissioner” in any other provision of Republic Act Numbered Forty-
one hundred thirty-six, as amended, shall be automatically substituted with
the words “Bureau of Land Transportation” and/or “Director”, as the case
may be; and all other section or portions thereof which are inconsistent
with this Act and/or Executive Order Numbered Five Hundred forty-six
Sec. 3. This Act shall take effect upon its approval.
Approved: June 11, 1980.
648
AN ACT APPROPRIATING FUNDS FOR PUBLIC WORKS,

HIGHWAYS, TRANSPORTATION AND COMMUNICATIONS
PROJECTS AND FOR OTHER PURPOSES
Be it enacted by the Batasang Pambansa in session assembled:
SECTION 1. Appropriation of Funds. – The following sums, or so

much thereof as may be necessary are hereby appropriated out of the General
Fund in the National Treasury not otherwise appropriated in any subsequent
General Appropriations Acts, including the proceeds of bond issues and/or
loans and grants from local or foreign institutions, to implement public
works, highways, transportation and communications projects of the
National Government for the years beginning 1982, as prescribed hereunder:
XXX
XXX
TITLE B. – RAILWAYS
For the construction of the following projects, including engineering

and acquisition of sites, equipment, materials, supplies and services to be
used directly for the projects.
National Capital Region ............................................ .P 800,000,000
1. Light Rail Transit System ...................................... 800,000,000
NCR and other Regions
1. Repair, Maintenance and Improvement of

Rolling Stocks, Tracks and other Facilities
including Reha bilitation of the South and
North Main Lines and and the Commuter
649
Service .......................................................... P2,120,000,000
Total, Title B................................................. P2,920,000,000

...................................................................... ============
TITLE C. – PORTS
For the construction, dredging, improvement, provision,

rehabilitation, reconstruction and/or completion of port projects, including
services to be used directly for the projects.
C.—1. Fishing ports
Region I ............................................................. P 76,000,000

1. Sual Fishing Port, Pangasinan ...................... 76,000,000
Region IV .......................................................... P 36,000,000

1. Lucena Fishing Port ..................................... 36,000,000
Region V ............................................................ P 44,000,000

1. Camaligan Fishing Port, Camarines Sur ...... 44,000,000
Region VI .......................................................... P 139,000,000

1. Iloilo Fishing Port ........................................ 139,000,000
Region IX .......................................................... P 177,000,000

1. Zamboanga Fishing Port .............................. 177,000,000
Total, Title C-1 .................................................. P 472,000,000
C.-2 Commercial Ports
Region I ............................................................. P 11,000,000
Region II ............................................................ 10,000,000
650
Region III ........................................................... 13,000,000
Region IV .......................................................... 23,000,000
Region V ........................................................... 16,000,000
Region VI .......................................................... 25,000,000
Region VII ......................................................... 7,000,000
Region VIII ........................................................ 29,000,000
Region IX .......................................................... 18,000,000
Region X ........................................................... 21,000,000
Region XI .......................................................... 20,000,000
Region XII ......................................................... 14,000,000
Nationwide ........................................................ 20,000,000
Total, Title C-2 .................................................. P 237,000,000

...................................................................... ===========
Grand Total, Title C .......................................... 709,000,000

...................................................................... ===========
TITLE D. – AIRPORTS AND AIR NAVIGATION FACILITIES
For the construction, improvement, rehabilitation, reconstruction, and/

or completion of the following airports and air navigation facility projects,
including feasibility and detailed engineering studies, acquisition of sites,
equipment, materials, supplies and services to be used directly for the
projects.
651
Region I ............................................................ P 10,600,000
Region II ........................................................... 35,000,000
Region III ........................................................... 3,400,000
Region IV .......................................................... 363,580,000
Region V ........................................................... 13,170,000
Region VI .......................................................... 31,500,000
Region VII ......................................................... 566,750,000
Region VIII ........................................................ 34,100,000
Region IX .......................................................... 553,900,000
Region X ........................................................... 17,000,000
Region XI .......................................................... 219,500,000
Region XII ......................................................... 23,000,000
National Capital Region (NCR) ........................ 695,000,000
Various Air Navigational Aids Projects ............ 380,000,000
Total, Title D ..................................................... P2,945,000,000

...................................................................... ============
XXX
XXX
SEC. 12. Reports. – The Minister of Public Works and Highways

and the Minister of Transportation and Communications shall submit
quarterly accomplishment reports to the President, the Prime Minister, the
652
National Economic and Development Authority, the Ministry of the Budget,

the Batasang Pambansa through the Speaker, and the Chairman of the
Regional Development Council of the region where the project is
undertaken. At the end of the calendar year, the Minister of Public Works
and Highways and the Minister of Transportation and Communications
shall submit their annual accomplishment reports which shall include the
appropriations released as of the end of the calendar year, the extent of the
work accomplished, further works to be done to complete the program of
broad categories of public works and public highways projects, and
recommendations, if any, for transfer of appropriations or changes of
program to be incorporated in the succeeding appropriations measure, to
the President, the Prime Minister, the National Economic and Development
Authority, the Ministry of the Budget and the Batasang Pambansa through
the Speaker.
SEC. 13. Separability. – If any provision of this Act is declared

SEC. 14. Effectivity. This Act shall take effect immediately upon
approval.
653
REPUBLIC ACT NO. 125
AN ACT GOVERNING THE USE OF AIR NAVIGATION FACILITIES

AND PROVIDING THE PAYMENT OF THE USE THEREOF

Philippines in Congress assembled:
SECTION 1. Except, as herein expressly provided, only Government

air navigation facilities shall, at reasonable charges to be fixed by the
Director of the Bureau of Aeronautics, be open and available for use of
duly licensed private or commercial air service operators, under such rules
and regulations as may be issued by the Bureau of Aeronautics and approved
by the Department Head. Private air navigation facilities shall be used only
when the Government does not own any air navigation facility, unless
permitted by the Director of the Bureau of Aeronautics, and under such
rules and regulations as may be issued by him and approved by the
Department Head, and at reasonable charges to be fixed by the Public
Service Commission after due hearing.
SEC. 2. (a) The term “Air navigation faculty” shall include any
airport, emergency landing field, light or other signal structure, radio
directional finding facility, radio or other electrical communication facility,
and any other structure or facility used as an aid to air navigation.
(b) The term “airport” shall mean any locality, either on water or on
land, which is adopted for the landing and taking off of aircraft, or a place
used regularly for receiving or discharging passengers or cargo by air.
SEC. 3. “Reasonable charges” are those which insure just and

reasonable return on the capital invested, taking into consideration the cost
of construction, operation and maintenance, and non-aeronautical revenue
of the air navigation facility affected, which shall be uniform.
SEC. 4. Charges collected for the use of the Government air navigation
facility shall accrue to the general fund of the national, provincial or
654
municipal government financing said facilities: Provided, That for a period

of five years from the date of the approval of this Act, all charges collected
are hereby appropriated for the construction, repair and maintenance of
such facilities.
SEC.5. All acts or parts of act inconsistent with the provisions of this
Act are hereby repealed.
SEC.6. This Act shall take effect upon its approval.
655
AN ACT REQUIRING DISTRICT HEALTH OFFICERS THEIR

AUTHORIZED REPRESENTATIVES TO INSPECT THE
SANITARY CONDITION OF COASTWISE PASSENGER
VESSELS CALLING AT PORTS IN THEIR DISTRICT AND FOR
OTHER PURPOSES

SECTION 1. The District Health Officers in the provinces, or their

authorized representatives, are hereby required to inspect and investigate
the sanitary condition of all coastwise passenger vessels calling at the ports
of their respective districts. The District Health Officers are further required
to submit a report, every fifteen days, to the Bureau of Health which shall
immediately furnish a copy thereof to the Bureau of Customs for purposes
of Republic Act Numbered Seventy.
656
AN ACT TO AMEND SUBSECTION (d), SECTION SEVEN OF

SIXTY-EIGHT, KNOWN AS THE “CIVIL AVIATION LAW,” AND
TO GRANT LICENSES FOR AIRMEN TO NATIONALS OF ANY
COUNTRY UNDER CERTAIN COINDITIONS

SECTION 1. Section seven, subsection (d) of Commonwealth Act

Numbered One hundred and sixty-eight is hereby amended to read as
follows:
“(d) Ownership of aircraft. – No person shall engage in air commerce

and no aircraft shall be operated or navigated, without having been granted
a license or permit therefor issued in accordance with the provisions of this
Act. Except as may be necessary in the operation of an international air
service, no permit shall be issued for the operation of any aircraft in air
commerce that is registered under the laws of any foreign country, or any
aircraft that is not absolutely owned and exclusively controlled by:
“(1) A citizen or citizens of the Philippines; or
“(2) A partnership or other joint enterprise of which each member

is a citizen of the Philippines; or
“(3) A corporation organized under the laws of the Philippines, of

which the directing head and at least two thirds of the directors and managing
officers are citizens of the Philippines; and of which at least sixty-six and
two thirds percent of the voting interest of the corporation is owned
absolutely and controlled exclusively by citizens of the Philippines; or
“(4) The Government of the Philippines or a political subdivision

thereof:
657
“Provided, however, That with the approval of the President of the

Philippines, the Secretary of National Defense, upon the recommendation
of the Director of Aeronautics, may allow the registration and issue permits
for the operation of aircrafts owned by any person, corporation, or
association for personal use only to Filipino citizens and to aliens whose
countries allow reciprocal privilege to Filipino nationals.”
SEC. 2. Any provision of existing law to the contrary notwithstanding,

with the approval of the President of the Philippines, the Secretary of
National Defense may grant for a period of five years from the approval of
this Act, licenses for airmen, to Filipino citizens and to aliens whose
countries allow reciprocal privilege to Filipino nationals: Provided, however,
That such licenses shall only, be granted to said aliens who have resided in
the Philippines for at least three months: Provided, further, That during the
said period of five years, the number of licensed alien airmen shall be
reduced every succeeding year to one-half of the number of licensed alien
airmen in the preceding year.
658
AN ACT TO CREATE A PUBLIC CORPORATION TO BE KNOWN AS

THE “NATIONAL AIRPORTS CORPORATION”, TO DEFINE ITS
POWERS AND DUTIES, TO APPROPRIATE THE NECESSARY

SECTION 1. There is hereby created a public corporation to be known

as the “National Airports Corporation”, hereinafter called and designated
the Corporation, to serve as an agency of the Republic of the Philippines
for the development, administration, operation and management of
government owned landing fields in the Philippines.
The said Corporation shall exist for a term of fifty years from the
date of the approval of this Act, and shall have its principal place of business
at Nichols Field, Municipality of Paranaque, Province of Rizal.
SEC. 2. The “National Airports Corporation” shall have the

following objects:
(a) To take over the use, management, operation, maintenance,

development, control, regulation and policing of Nichols Field as a public
airport for national and international air traffic, and of all other government
airfields, except those controlled and/or operated by the Armed Forces of
the Republic, and of any other airfields which it may acquire or construct;
(b) To plan, design, equip, expand, improve, repair, alter, or construct

these airports or any navigation facilities appurtenant thereto with a view
to providing the public with an efficient and modern air transportation
service;
(c) To assist in the development and utilization of the air potential

of the Philippines, and in the encouragement and promotion of civil
aeronautics.
659
SEC. 3. The said Corporation shall be subject to the provisions of

the Corporation Law in so far as they are not inconsistent with the provision
of this Act, or the purposes for which the Corporation is formed, and it
shall enjoy the general powers mentioned in said Corporation Law in
addition to the following powers:
(a) To enter into, make and execute contracts of any kind as may be
necessary or incidental to the attainment of its objects, with any person,
firm, or public or private corporation or entity, or, subject to the approval
of the President, with any foreign government;
(b) To acquire, hold, purchase, or lease any personal or real property,

rights of way, and easements which may be proper or necessary for the
furtherance of the purposes of the corporation;
(c) To exercise the right of eminent domain for the purposes for which
it was created, in the manner provided by law for condemnation proceedings
by the national, provincial and municipal governments;
(d) To sell, pledge, mortgage, alienate or otherwise dispose of any

property, or interest therein, or part thereof, whenever in the judgment of
the Board of Directors said property, or interest therein, or part thereof, is
no longer needed or required for the purposes for which the corporation is
formed; or to lease the same when the lease thereof for any purpose shall
not interfere with the main use of the airport: Provided, however, That no
real property of whatever value, nor fixed installations of any kind having
a book value of one hundred thousand pesos or over, may be sold or
otherwise disposed of by the Corporation without the approval of the
President of the Phi1ippines
e) To contract loans, to issue bonds and other obligations as security

therefor: Provided, however, That at no time shall bonded indebtedness of
the corporation exceed ten million pesos. In order that the corporation may
validly issue bonds, the resolution of the Board of Directors authorizing
660
the issuance thereof shall state the purpose and the terms and conditions of
the bonds, which resolution shall be subject to the approval of the President
of the Philippines upon recommendation of the Secretary of Finance. All
bonds issued by the Corporation shall be exempt from taxation by the
Republic of the Philippines or by any political subdivision thereof, and
shall be receivable as security in any transaction with the Government of
the Republic of the Philippines in which security is required. As security
for any and all loans which it may contract, the Corporation is authorized
to mortgage any and all airfields, installations and equipment which it has
or may control.
(f) With the exception only of the amounts to be charged as landing

fees, parking-space fees for transient aircraft, and royalties on sales or
deliveries, direct or indirect, to an aircraft for its use of aviation gasoline,
oil and lubricants, spare parts, accessories and supplies which shall be
subject to the approval of the Civil Aeronautics Board, the Corporation
shall have authority to determine, impose, collect and receive all charges,
tolls, royalties, fees or rentals for the use of any of the property under its
management and control; and to prescribe the terms and conditions under
which such property may be used. As used in this section:
(1) “Landing fees” refer to all charges for the use of any landing strip
or runaway by any aircraft landing or taking off at the airport;
(2) “Terminal fees” refer to all charges for parking at or near the
ramp, terminal area or building for purposes of loading or unloading
passengers and/or cargo;
(3) “Transient aircraft” refer to all those which do not have, at the
airport, any fixed base, area, or parking space;
(4) “Royalties” refer to all charges based on gross business or sales,

or gross or net profit.
(5) “Supplies” include any and all items of whatever nature or

description which may be necessary for, or incidental to, the operation of
an aircraft.
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(g) To grant to any person, firm or company such concession or

concession rights as may be necessary or convenient to the airports upon
such terms and conditions as the corporation may deem proper: Provided,
however That the exclusive use of any landing strip or runaway within any
airport shall not be granted to any person, firm, or corporation.
(h) To determine the types of aircraft that may be allowed to use the
airports and to limit their use to certain types of aircraft only, in the interest
of public safety;
(i) To prescribe, adopt, establish and enforce such rules and

regulations, consistent with existing laws, rules and regulations, as may be
necessary for the safety, health, and welfare of the public within the airport;
(j) In general, to do everything, directly or indirectly, necessary or

incidental to, or in furtherance of, the purposes of the corporation; and the
enumeration of the specific powers herein granted shall not be construed
as a limitation upon the general and incidental powers of the corporation;
(k) In the transaction of its business, to perform all acts which a

copartnership or natural person is authorized to perform under the laws
existing or which may be enacted hereafter.
SEC. 4. The governing body of the Corporation shall consist of a

Board of Directors composed of five members to be appointed by the
President of the Philippines, with the consent of the Commission on
Appointments of the Congress of the Philippines. The President of the
Philippines shall designate from among the members of the Board a
Chairman and a Vice-Chairman who shall act as Chairman during the
absence or temporary disability of the former.
Of the directors first appointed as above prescribed, the President of

the Philippines shall designate one to serve for five years, one to serve for
four years, one for three years, one for two years, and one for one year; and
thereafter, each director appointed shall serve for four years. Whenever a
vacancy occurs among the directors, the person appointed director to fill
662
such vacancy shall hold office for the unexpired portion of the term of the
member whose place he is selected to fill. Any director shall be subject to
removal by the President of the Philippines. Three members of the Board
of Directors shall constitute a quorum for the transaction of business.
Before entering upon the discharge of their duties, each of the directors
shall take the oath prescribed in section twenty-three of the Revised
Administrative Code and in the Constitution of the Philippines.
The members of the board shall each receive a per diem of not to
exceed thirty pesos for each meeting actually attended by them.
SEC. 5. The board shall submit its annual report and balance sheets
to the President of the Philippines and to the Congress of the Philippines,
as provided in sections five hundred and seventy-four to five hundred
seventy-seven of the Revised Administrative Code.
SEC. 6. The direct and active management of the affairs and business
of the Corporation shall be performed by the General Manager, subject to
the supervision and control of the Board of Directors. The General Manager
shall be appointed by the President of the Philippines with the consent of
the Commission on Appointments of the Congress of the Philippines; shall
be entitled to a compensation to be fixed by the President of the Philippines,
and shall hold office at his pleasure.
The General Manager shall, with the approval of the Board of

Directors, appoint and fix the number and salaries of such technical and
other officers and employees as may be necessary for the performance of
the functions and activities of the Corporation; shall sit at all meetings of
the Board of Directors and may participate in its deliberations but shall
have no right to vote, and shall render and submit such report or reports to
the board as may be required of him from time to time.
SEC. 7. The Office of the Administrator of the Manila International

Airport, established under the provisions of Executive Order No. 100, dated
October 21, 1947, is hereby abolished, and all personnel, records, properties,
663
assets, rights, obligations, liabilities, appropriations and unexpended

balances thereof are hereby transferred to, and assumed, by, the “National
Airports Corporation”. All works, construction and improvements made
by the Civil Aeronautics Administration or any agency of the National
Government in or upon government airfields, as well as the appropriations
or the unexpended balances thereof shall belong to this Corporation.
SEC. 8. All laws, executive orders and rules and regulations governing
the operation of aircraft in the Philippines shall be applicable to any aircraft
using the landing fields of the National Airports Corporation.
SEC. 9. In order to enable the Corporation to carry out its purposes

as set forth in this Act, there is hereby appropriated out of any funds in the
National Treasury not otherwise appropriated, the sum of one million pesos,
which, together with the appropriations and unexpended balances mentioned
in Sec. 7 of this Act shall constitute the capital of this Corporation and will
be placed at the disposal of the Board of Directors for the attainment of the
objectives of the Corporation.
The funds herein appropriated shall not be released unless and until
the Secretary of Finance and the Auditor General shall have certified to the
President of the Philippines that there are existing and available funds in
the National Treasury in excess of the sums appropriated in the General
Appropriation Law for the fiscal year ending June thirtieth, nineteen hundred
and forty-nine and the priority appropriations established by law.
SEC. 10. All acts or parts of acts and executive orders, administrative
orders, or parts thereof which are inconsistent with the provisions of this
Act are hereby repealed.
SEC. 11. This Act shall take effect on its approval
664
AN ACT PROVIDING FOR THE TRANSPORTATION AT

GOVERNMENT EXPENSE OF THE MEMBERS OF THE FAMILY
OF AN OFFICER OR EMPLOYEE OF THE PROVINCIAL, CITY
OR MUNICIPAL GOVERNMENT, WHO IS TRANSFERRED
FROM ONE STATION TO ANOTHER

SECTION 1. Whenever, due to the requirement of the service and

not at his own request, an officer or employee of the provincial, city or
municipal government is transferred from one station to another, said officer
or employee and his wife or her husband and children below twenty-one
years of age shall be entitled to transportation, including that of their baggage
and household effects, at the expense of the province, city or municipality
to which such officer or employee is transferred, to be paid from the
appropriation for traveling expenses of the office to which he or she is
appointed.
SEC. 2. Section three hundred and five of the Revised Administrative

Code and all other acts or parts of acts which are inconsistent with the
provisions of this Act are hereby repealed.
665
AN ACT AUTHORIZING THE TRANSFER TO THE PHILIPPINE AIR

LINES, INC., OF THE FRANCHISE OF THE ILOILO-NEGROS
AIR EXPRESS COMPANY, INC., LATER KNOWN AS FAR
EASTERN AIR TRANSPORT, INC., TO OPERATE AN AERIAL
TRANSPORTATION SERVICE IN THE PHILIPPINES

SECTION 1. The transfer to the Philippine Air Lines, Inc., of the

franchise of the Iloilo-Negros Air Express Company, Inc., later known as
Far Eastern Air Transport, Inc., granted under Act Numbered Forty-two
hundred and seventy-two, to operate an aerial transportation service in the
Philippines, is authorized. The Philippine Air Lines, Inc. shall therefore be
subject to the provisions of said Act and its amendments under section one
thereof, insofar as the franchise is concerned.
666
AN ACT TO REORGANIZE THE CIVIL AERONAUTICS BOARD AND

THE CIVIL AERONAUTICS ADMINISTRATION, TO PROVIDE
FOR THE REGULATION OF CIVIL AERONAUTICS IN THE
PHILIPPINES AND AUTHORIZING THE APPROPRIATION OF
FUNDS THEREFOR

in Congress assembled:
CHAPTER I.- Title and Purpose
SECTION 1. Title of Act.- The title of this Act shall be “The Civil
Aeronautics Act of the Philippines.”
SEC. 2. Purpose and scope of Act.- The general purpose of this Act
is the reorganization of the Civil Aeronautics Board and the Civil
Aeronautics Administration, defining their powers and duties and making
certain adjustment of funds and personnel in connection therewith; and the
regulation of civil aeronautics.
The provisions of this Act and the rules and regulations issued
pursuant there to shall not apply, except with respect to air traffic rules, to
military aircraft and airmen of the Philippine and of foreign countries and
to foreign civil and public aircraft and airmen other than those covered by
Chapters III and IV hereof.
CHAPTER II.-General Pro visions
SEC. 3. Words and phrases defined .- The following definitions shall

control in the application and construction of this Act, unless the context
otherwise requires:
(a) “Administrator” means the Civil Aeronautics Administrator.
667
(b) “Aerodrome” means a defined area on land or water, including any

buildings, installations and equipment intended to be used either wholly or
in part for the arrival, departure and movement of aircraft.
(c) “Aeronautics” means the science and art of flight.
(d) “Aeronautical telecommunication” means and includes any

telegraph or telephone communication signs, signals, writings, images and
sounds of any nature, by wire, radio or other systems or processes of
signaling, used in the aeronautical service.
(e) “Aeronautical telecommunication station” means any station

operated to provide telecommunications for aeronautical purposes.
(f) “Air carrier” means a person who undertakes, whether directly or

indirectly, or by a lease or any other arrangements, to engage in air
transportation or air commerce.
(g) “Air commerce” means and includes air transportation for pay or
hire, the navigation of aircraft in furtherance of a business, or the navigation
of aircraft from one place to another for operation in the conduct of a
business.
(h) “Air transportation” means service or carriage of persons, property,

or mail, in whole or in part, by aircraft.
(i) “Aircraft” means any contrivance now known or here after

invented, used, or designed for navigation of, or flight in the air.
(j) “Aircraft engine” means an engine used or intended to be used for

propulsion of aircraft and includes all parts, appurtenances, and accessories
thereof other than propellers.
(k) “Aircraft radio station” means a radio station on board any aircraft.
(l) “Airman” means any individual who engages, as the person in

command or as pilot, mechanic, flight radio operator or member of the
668
crew, in the navigation of aircraft while under way; and any individual
who is directly in charge of inspection, maintenance, overhauling, or repair
of aircraft, aircraft engine, propellers, or appliances; and any individual
who serves in the capacity of aircraft dispatcher or air traffic control operator.
(m) “Air navigation facility” means any facility used in, available
for use in, or designed for use in, aid of air navigation, including areas,
lights, any apparatus or equipment for disseminating weather information,
for signaling, for radio-directional finding, or for radio or other electrical
communication, and any other structure or mechanism having a similar
purpose for guiding or controlling flight in the air or the landing and take-
off of aircraft.
(n) “Airway” means a path thru the navigable air space identified by
an area of specified width on the surface of the earth designated or approved
by the Administrator as suitable for air commerce or air transportation.
(o) “Airworthiness” means that an aircraft, its engines, propellers,

and other components and accessories, are of proper design and
construction, and are safe for air navigation purposes, such design and
construction being consistent with accepted engineering practice and in
accordance with aerodynamic laws and aircraft science.
(p) “Appliances” means instruments, equipment, apparatus, parts,

appurtenances, or accessories, of whatever description, which are used or
are capable of being or intended to be used in the navigation, operation, or
control of aircraft in flight (including parachutes and communication
equipment and any other mechanism or mechanisms installed in or attached
to air craft during flight), and which are not a part or parts of aircraft,
aircraft engines or propellers.
(q) “Board” means the Civil Aeronautics Board.
(r) “Citizen of the Philippines” means (a) an individual who is a

citizen of the Philippines, or (b) a partnership of which each member is
such an individual, or (c) a corporation or association created or organized
669
under the laws of the Philippines, of which the directing head and two-
thirds or more of the Board of Directors and other managing officers are
citizens of the Philippines, and in which sixty per centum of the voting
interest is owned or controlled by persons who are citizens of the Philippines.
(s) “Civil Aircraft” means any aircraft other than a public aircraft.
(t) “Domestic air carrier” means an air carrier who is a citizen of the
Philippines: Provided, That an air carrier who is not a citizen of the
Philippines but who may be allowed to engage in domestic and/or foreign
air transportation, or domestic and/or foreign air commerce, in accordance
with the provisions of section twelve, Chapter IV of this Act, shall, to all
intents and purposes, be classified as a domestic air carrier.
(u) “Domestic air commerce” means and includes air commerce

within the limits of the Philippine territory.
(v) “Domestic air transportation” means air transportation within the

limits of the Philippine territory.
(w) “Flight radio operator” means and includes a member of the

operating crew of aircraft who is granted a radio operator’s license by the
Civil Aeronautics Administrator to operate aircraft radio station.
(x) “Foreign air carrier” means an air carrier who is not a citizen of
the Philippines, and/or an air carrier other than a domestic air carrier.
(y) “Foreign air commerce” means and includes air commerce

between the Philippines and any place outside it.
(z) “Foreign air transportation” means air transportation between the

Philippines and any place outside it, or wholly outside the Philippines.
(aa) “Landing field” means any locality, either on water or on land,

which is adapted for landing and taking-off of aircraft located along an
airway, and is intermediate to airports connected by the airway, whether or
670
not facilities are provided for the shelter, servicing, or repair of aircraft, or
for receiving or discharging passengers or cargo.
(bb) “Mail” means Philippine mail or foreign-transit mail.
(cc) “Navigation of aircraft” or “navigate aircraft” includes the

piloting of aircraft.
(dd) “Navigable air space” means air space above the minimum
altitudes of flight prescribed by regulations issued under this Act.
(ee) “Permit” means Certificate of Public Convenience and Necessity.
(ff) “Person” means any individual, firm, copartnership, corporation,

company, association, joint-stock association, or body politic; and includes
any trustee, receiver, assignee, or other similar representative thereof.
(gg) “Propeller” includes all parts, appurtenances and accessories

thereof.
(hh) “Public aircraft” means an aircraft used exclusively in the service

of the National Government of the Republic of the Philippines or of any
political subdivision or instrumentality thereof, but not including any
government-owned aircraft engaged in air commerce.
(ii) “Reasonable charges” are those which insure just and reasonable
return on the capital invested, taking into consideration the cost of
construction, operation and maintenance and non-aeronautical revenue of
the air navigation facility affected, which shall be uniform.
SEC. 4. Declaration of policies-In the exercise and performance of

its powers and duties under this Act, the Civil Aeronautics Board and the
Civil Aeronautics Administrator shall consider the following, among other
things, as being in the public interest, and in accordance with the public
convenience and necessity:
671
(a) The development and utilization of the air potential of the

Philippines.
(b) The encouragement and development of an air transportation

system properly adapted to the present and future of foreign and domestic
commerce of the Philippines, of the Postal Service, and of the National
Defense;
(c) The regulation of air transportation in such manner as to recognize

and preserve the inherent advantages of, assure the highest degree of safety
in, and foster sound economic condition in, such transportation, and to
improve the relations between, and coordinate transportation by, air carriers;
(d) The promotion of adequate, economical and efficient service by

air carriers at reasonable charges, without unjust discriminations, undue
preferences or advantages, or unfair or destructive competitive practices;
(e) Competition between air carriers to the extent necessary to assure

the sound development of an air transportation system properly adapted to
the need of the foreign and domestic commerce of the Philippines, of the
Postal Service, and of the National Defense;
(f) To promote safety of flight in air commerce in the Philippines;

and
(g) The encouragement and development of civil aeronautics.
CHAPTER III - Civil Aeronautics Board
SEC. 5. Composition of the Board.-The Civil Aeronautics Board shall

be composed of the Secretary of Commerce and Industry as Chairman, the
Civil Aeronautics Administrator, the Commanding Officer of the Philippine
Air Force, and two other members to be appointed by the President of the
Philippines. They shall hold office at the pleasure of the President and
shall be entitled to per diem for each meeting actually attended by them in
such amount as may be fixed by the President. In case of absence or
672
incapacity of the Secretary of Commerce and Industry, the Civil Aeronautics

Administrator shall act as Chairman.
In case the Under-Secretary of Commerce and Industry and or Deputy

Administrator act in the stead of the Secretary of Commerce and Industry
and/or Administrator, respectively, they shall hold office and be entitled to
per diem for each meeting actually attended by them in the Civil Aeronautics
Board. No member of the Board shall have any pecuniary interest in, or
own any stock or bond of, any civil aeronautics enterprise.
SEC. 6. Principal office and quorum. -The Board shall have its
principal office in the City of Manila and may hold hearings on any
proceedings at such time and places within the Philippines as it may provide
by order in writing. The Chairman and two members of the Board shall
constitute a quorum to transact business. A majority vote of the members
constituting a quorum shall be necessary for a valid and enforceable decision
or order by the Board. A tie vote shall be referred to the President of the
Philippines for decision.
SEC. 7. Permanent personnel.- The Board shall have a permanent

Secretary, who shall be a member of the Philippine Bar, with compensation
at five thousand one hundred pesos per annum. He shall record all
proceedings of the Board, take charge of and keep all its papers, and perform
such other duties as may be prescribed by the Board in connection with its
proceedings or papers. The Board shall also have a permanent stenographer
with compensation at two thousand four hundred pesos per annum and
such other employees and personnel as the Board may deem necessary in
exercising and performing its powers and duties.
SEC. 8. Temporary personnel.- The Board may, with the approval of

the President of the Philippines, engage for temporary service such duly
qualified consulting engineers and agencies or other qualified persons as
are necessary, and fix the compensation of such engineers, agencies, or
persons without regard to civil service rules and regulations.
SEC. 9. Annual report.- The Board shall make an annual report to

the President which shall contain such information and data collected by
673
the Board as may be considered of value in the determination of questions

connected with the development of civil aeronautics, together with such
recommendations as to additional legislation relating thereto as the Board
may deem necessary.
SEC. 10. Powers and duties of the Board.-(A) Except as otherwise

provided herein, the Board shall have the power to regulate the economic
aspect of air transportation, and shall have the general supervision and
regulation of, and jurisdiction and control over, air carriers as well as their
property, property rights, equipment, facilities, and franchise, in so far as
may be necessary for the purpose of carrying out the provisions of this Act.
(B) The Board may perform such acts, conduct such investigations,
issue and amend such orders, and make and amend such general or special
rules, regulations, and procedures as it shall deem necessary to carry out
(C) The Board shall have the following specific powers and duties:
(1) In accordance with the provisions of Chapter IV of this Act, to

issue, deny, amend, revise, alter, modify, cancel, suspend or revoke, in whole
or in part, upon petition or complaint, or upon its own initiative, any
temporary operating permit or Certificate of Public Convenience and
Necessity: Provided, however, That in the case of foreign air carriers, the
permit shall be issued with the approval of the President of the Republic of
the Philippines.
(2) To fix and determine reasonable individual, joint or special rates,

charges or fares which an air carrier may demand, collect or receive for
any service in connection with air commerce. The Board may adopt any
original, amended, or new individual, joint or special rates, charges or fares
proposed by an air carrier if the proposed individual, joint, or special rates,
charges or fares are not unduly preferential or unduly discriminatory or
unreasonable. The burden of proof to show that the proposed individual
joint or special rates, charges or fares are just and reasonable shall be upon
the air carrier proposing the same.
674
In fixing rates, charges, or fares under the provisions of this Act, the
Board shall take into consideration, among other factors:
(a) The effect of such rates upon the movement of traffic;
(b) The need in the public interest of adequate and efficient

transportation of persons and property by air carriers at the lowest cost
consistent with the furnishing of such service;
(c) Such standards respecting the character and quality of service to

be rendered by air carriers as may be prescribed by or pursuant to law;
(d) The inherent advantages of transportation by aircraft; and
(e) The need of each air carrier for revenue sufficient to enable such
air carrier, under honest, economical, and efficient management, to provide
adequate and efficient air carrier service.
(3) To authorize charters whether domestic or international and special

air services or flight heretofore exercised by the Department of Commerce
and Industry under Commonwealth Act Numbered Ninety-seven under such
terms and conditions as in its judgment the public interest requires.
(4) To approve or disapprove increase of capital, sale of equipment

of an air carrier engaged in air commerce, consolidation, merger, purchase,
lease, operating contract or acquisition and control between domestic air
carriers; or between domestic air carrier s and foreign air carriers; or between
domestic air carriers and any per son engaged in any phase of aeronautics.
(5) To inquire into the management of the business of any air carrier
and, to the extent reasonably necessary for such inquiry, to obtain from
such carrier, and from any person controlling, or cont rolled by, or under
common control with, such air carrier, full and complete reports and other
information. Such reports shall be under oath whenever the Board so
requires.
675
(6) To require annual , monthly, periodical, and special reports from

any air carrier; to prescribe the manner and form in which such reports
shall be made; and to require from any air carrier specific answers to all
questions upon which the Board may deem information to be necessary.
Such reports shall be under oath whenever the Board so requires. The
Board may also require any air carrier to file with it any contract, agreement,
understanding or arrangement, or a true copy thereof, between such air
carrier and any other carrier or person, in relation to any traffic affected by
the provision of this Act.
(7) To prescribed the forms of any and all accounts, records, and
memoranda of the movement of traffic, as well as of the receipt and
expenditures of money, and the length of time such accounts records and
memoranda shall be preserved: Provided, That any air carrier may keep
additional accounts, records, or memoranda if they do not impair the
integrity of the accounts, records, or memoranda prescribed or approved
by the Board and do not constitute an undue financial burden on such air
carrier.
(8) To Require each officer and director of any air carrier to transmit
a report describing the shares of stock or other interest held by such air
carrier with any persons engaged in any phase of aeronautics, and the holding
of the stock in, and control of, other persons engaged in any phase of
aeronautics.
(D) The Board may investigate, upon complaint or upon its own
initiative, whether any individual or air carrier, domestic or foreign, is
violating any provision of this Act, or the rules and regulations issued there
under, and shall take such action consistent with the provisions of this Act,
as may be necessary to prevent further violation of such provision, or rules
and regulations so issued.
(E) The Board may issue subpoena or subpoena duces tecum, require
the attendance and testimony of witnesses in any matter or inquiry pending
before the Board or its duly authorized representative, and require the
production of books, papers, tariffs, contracts, agreements and all other
676
documents submitted for purposes of this section to be under oath and

verified by the person in custody thereof as to the truth and correctness of
data appearing in such books, papers, tariffs, contracts, agreements and all
other documents.
(F) The Board may review, revise, reverse, modify, or affirm on

appeal any administrative decision or order of the Administrator on matters
pertaining to:
(1) Grounding of airmen and aircrafts; or
(2) Revocation of any certificate or the denial by Administrator of

issuance of any certificate; or
(3) Imposition of civil penalty or fine in connection with the violation

of any provision of this Act or regulations and regulations issued thereunder.
(G) The Board shall have the power, either on its own initiative or
upon review on appeal from an order or decision of the Administrator, to
determine whether to impose, remit, mitigate, or increase, or compromise,
such fines and civil penalties, as the case may be.
(H) (1) The Civil Aeronautics Board shall be advised of and shall
consult with the Department of Foreign Affairs concerning the negotiation
of any air agreement with foreign government for the promotion,
establishment or development of foreign air transportation.
(2) In exercising and performing its powers and duties under the
provisions of this Act, the Civil Aeronautics Board shall take into
consideration the obligation assumed by the Republic of the Philippines in
any treaty, convention or agreement with foreign countries on matters
affecting civil aviation.
CHAPTER IV. - Certificate of Public Convenience and Necessity
SEC. 11. Nature terms and conditions.-A Certificate of Public
677
Convenience and necessity is a permit issued by the Board authorizing a

person to engage in air commerce and/or air transportation, foreign and/or
domestic.
Any permit may be altered, amended, modified, suspended, cancelled

or revoked by the Board in whole or in part upon complaint or petition or
upon the Board’s initiative as hereinafter provided, whenever the Board
finds such action to be in the public interest.
There shall be attached to the exercise of the privileges granted by

the permit, or amendment thereto, such reasonable terms conditions or
limitations as, in the judgment of the Board, the public interest may require.
No permit shall confer any proprietary, property, or exclusive right in the

use of any air space, civil airway, landing area or government air-navigation
facility.
The permit shall, among others, specify the terminal and intermediate
points, if any, between which the air carrier is authorized to operate; the
service to be rendered; the time of arrival and departure at each point, and
the frequency of flights: Provided, That no change in routes, rates, schedules,
or frequency nor supplemental or additional flights to those covered by an
Air Commerce Permit or franchise shall be effected without prior approval
of the Civil Aeronautics Board. Insofar as the operation is to take place
without the Philippines, the permit shall designate the terminal and
intermediate points only insofar as the Board shall deem practicable, and
otherwise shall designate only the general route or routes to be followed.
No carrier shall abandon any route, or part thereof for which a permit
has been issued, unless upon findings by the Civil Aeronautics Board that
such an abandonment is un economical and is in the public interest.
SEC. 12. Citizenship requirement.-Except as otherwise provided in

the Constitution and existing treaty or treaties, a permit authorizing a person
to engage in domestic air commerce and/or air transportation shall be issued
only to citizens of the Philippines.
678
SEC. 13. Conduct of proceedings.- The Board shall conduct its

proceedings in such manner as will be conducive to the proper dispatch of
business and to the ends of justice. All hearings and investigations before
the Civil Aeronautics Board shall be governed by the rules of procedure
adopted by the Board, and in the conduct thereof the Board shall not be
bound by the technical rules of evidence.
SEC. 14. Delegation of authority to conduct hearing. The Board

may designate in writing any of its members or any of its officer to conduct
hearings and investigations on any matter pending before the Board and
for that purpose the person so designated shall have authority to administer
oaths, issue subpoena and subpoena duces tecum, require the attendance
and testimony of witnesses, examine witnesses, make ocular inspection of
or enter into any airline establishment, building, place or premise in the
performance of its official business
SEC. 15. Application for permit.-Application for permit shall be made

to the Board in writing and shall be verified Said application shall be in
such form shall contain such information, and shall be accompanied by
such proof of service upon such interested persons as the board shall by
regulation require.
SEC. 16. Notice.-Upon the filing of any such application, the Board
shall give due notice thereof : (1) to the public, by posting a notice of such
application in the Office of the Civil Aeronautics Board and by publication
once a week for three consecutive weeks, at expense of the applicant, in a
newspaper of general circulation; and (2 ) to such other persons as the
Board by regulation determine: Provided, however, That notice of
publication may be dispensed with by the board whenever, in its judgment,
the public interest so requires Any interested person may file with the Board
a memorandum in support of, or in opposition to, the issuance of the permit.
SEC. 17. Time and place of meeting – Within a week after the last
publication of the application as provided in section 16 of this Act, the
Board or its duly designated representative shall set the time and the place
for the meeting of the parties interested in said application or their attorneys,
679
and shall notify said parties or their attorneys in writing to appear: Provided.
That, if publication has been dispensed with, the Board shall immediately
set the time and place for the meeting of t he parties.
SEC. 18. Non-appearance.-If a party interested in the application

fails to appear or if no party appears at the designated time and place, the
Board or its duly designated representative may proceed ex parte or, in his
discretion, adjourn the proceeding for a future date, giving notice to the
absent party or parties of the adjournment.
SEC. 19. Depositions.-The Board or its duly designated

representatives may, in any investigation or hearing, by order in writing,
cause the depositions of witnesses residing within or without the Philippines
to be taken in the manner prescribed by the Rules of Court.
Witnesses whose depositions are necessary shall be entitled to mileage

fees at the same rates as those allowed in the Courts of First Instance.
SEC. 20. Hearings and records of proceedings.-Hearings on all

applications shall be open to t he public unless the Board shall determine
otherwise f or reasons of national security. Proceedings shall be recorded
in such form and manner as may be determined by t he Board and the
record of proceedings shall become part of the records of the application.
SEC. 21. Issuance of permit.-The Board shall issue a permit

authorizing the whole or any par t of the service covered by t he application,
if it finds: (1) that the applicant is fit, willing and able to perform such
service properly in conformity with the provisions of this Act and the rules,
regulations, and requirements issued thereunder; and (2) that such service
is required by the public convenience and necessity; otherwise the
application shall be denied.
SEC. 22. Modification, suspension, revocation.- The Board, upon

petition or complaint or upon its own initiative, may, by order entered after
notice and opportunity for hearing, alter amend, modify or suspend any
permit, in whole or in part, if public convenience and necessity so require
680
; or may revoke any permit, in whole or in part , for intentional failure to

comply with any provision of this Act or any order, rule or regulation issued
thereunder or any term, condition or limitation of such permit: Provided,
That the Board, for good cause, may, by order without notice and hearing
suspend, for a period not to exceed thirty days, any permit or the exercise
of any privilege or authority issued or granted under this Act whenever
such step shall, in the judgment of the Board, be necessary to avoid serious
or irreparable damage or inconvenience to the public. Any interested person
may file with the Board a protest or memorandum in support of or in
opposition to the alteration, amendment, modification, suspension, or
revocation of any permit.
SEC. 23. Transfer of permit.-No permit may be transferred unless

such transfer is approved by the Board as being consistent with the public
interest.
SEC. 24. Effective date and duration. of permit.-Each permit shall

be effective from the date specified therein and shall continue in effect
until suspended or revoked or until the Board shall certify that operation
thereunder has ceased: Provided, That, if any service authorized by a permit
is not inaugurated within a period of ninety days after the date of
authorization as shall be fixed by the Board or after such other period as
may be designated by the Board, the Board may by order direct that such
permit shall thereupon cease to be effective to the extent of such service :
Provided, further. That no permit shall be issued for a period of more than
twenty five (25) years.
CHAPTER V. - Civil Aeronautics Administration
SEC. 25. Organization of the Civil Aeronautics, Administration.-The

Civil Aeronautics Administration shall be under the administrative
supervision and control of the Department of Commerce and Industry. The
Civil Aeronautics Administration shall have one chief and one deputy chief
who shall be known as “Administrator” and “Deputy Administrator,”
respectively,
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SEC. 26. The civil Aeronautics Administration.-The Administrator

shall be appointed by the President of the Philippines ‘with the consent of
the Commission on Appointments and shall receive an annual basic salary
of seven thousand two hundred pesos and, subject to the approval of the
President, additional salary of one thousand eight hundred pesos per annum.
He shall be the administrative head of the Civil Aeronautics Administration
and shall possess the powers generally conferred upon bureau heads. He
shall administer all laws relating to civil aviation in ·the Philippines. He
shall submit in writing to the Department head, annually or as oftener as
may be required, reports of the activities and transactions of his office.
SEC. 27. The Deputy Administrator.-The Deputy Administrator shall

be appointed by the President with the consent of the Commission on
Appointments. He shall receive an annual basic salary of six thousand pesos.
SEC. 28. Authority of the Officers of the Civil Aeronautics

Administration to administer oaths.-Besides the Administrator, the Deputy
Administrator, chiefs of the divisions, and duly designated members of the
examining and investigating committees of the Civil Aeronautics
Administration shall have authority to administer oaths in the transaction
of official business.
SEC. 29. Permanent divisions.-The Civil Aeronautics Administration

shall have such permanent divisions as may be determined by administrative
regulations or office orders duly approved by the Secretary of Commerce
and Industry, which shall likewise determine the rate of compensation for
the chiefs of division and their subordinate personnel, as well as other
matters of detail concerning internal organization.
SEC. 30. Officials and employees.- Upon recommendation of the

Administrator, such officers , assistants and employees as may be necessary
for the proper functioning of the Civil Aeronautics Administration shall be
appointed by the Secretary of Commerce and Industry. The Administrator
may assign within the limits of available funds, officers, assistants, and
other personnel for study and training abroad.
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All rated and/ or licensed airmen and such other authorized personnel of
the Civil Aeronautics Board and or Civil Aeronautics Administration who
may be required to undertake or perform regular and frequent aerial flights
in connection with their duties, shall at the discretion of the head of the
office receive an increase in compensation equivalent to fifty per centum
of their respective base pay: Provided, however, That the total flying hours
per month shall not be less than four hours.
Whenever the Administrator shall require the personnel of the Civil

Aeronautics Administration to work beyond the usual office hours, the
employees concerned shall in all cases be entitled to receive, as additional
compensation for the overtime work performed, at least twenty five per
centum of their regular salaries.
SEC. 31. Temporary personnel.-The Administrator may, with the

approval of the President, engage for temporary service such duly qualified
consulting experts or other qualified persons as he may find necessary and
fix their compensation.
SEC. 32. Powers and Duties of the Administrator - Subject to the

general control and supervision of the Department head, the Administrator
shall have among others, the following powers and duties:
(1) To carry out the purposes and policies established in this Act; to
enforce the provisions of, the rules and regulations issued in pursuance to,
said Act; and he shall primarily be vested with authority to take charge of
the technical and operational phase of civil aviation matters.
(2) To designate and establish civil airways and to acquire, control,

operate and maintain along such airways, air navigation facilities and to
chart such airways and arrange for their publication including the
aeronautical charts or maps required by the international aeronautical
agencies by utilizing the equipment, supplies or assistance of existing
agencies of the government as far as practicable.
683
(3) To issue airman’s certificate specifying the capacity in which the

holder thereof is authorized to serve as airman in connection with aircraft
and shall be issued only upon the finding that the applicant is properly
qualified and physically able to perform the duties of the position. The
certificate shall contain such terms, conditions and limitations as the
Administrator may determine to be necessary to assure safety in air
commerce: Provided, however, That the airman’s license shall be issued
only to qualified persons who are citizens of the Philippines or qualified
citizens of countries granting similar rights and privileges to citizens of the
Philippines.
(4) To issue airworthiness certificate for aircraft which shall prescribe

the duration of such certificate, the type of service for which the aircraft
may be used. And such other terms and conditions and limitations as are
required.
(5) To issue air carrier operating certificate and to establish minimum

safety standards for the operation of the air carrier to whom such certificate
is issued. The air carrier operating certificate shall be issued only to aircrafts
registered under the provisions of this Act.
(6) To issue type certificate for aircraft, aircraft engine, propellers

and appliances.
(7) To inspect, classify and rate any air navigation facilities and
aerodromes available for the use of aircraft as to its suitability for such use
and to issue a certificate for such air navigation facility and aerodrome;
and to determine the suitability of foreign aerodromes, air navigation
facilities as well as air routes to be used prior to the operation of Philippine
registered aircraft in foreign air transportation and from time to time
thereafter as may be required in the interest of safety in air commerce.
(8) To issue certificates of persons or civil aviation schools giving

instruction in flying, repair stations, and other air agencies and provide for
the examination and rating thereof.
684
(9) To promulgate rules and regulations as may be necessary in the

interest of safety in air commerce pertaining to the issuance of the airman’s
certificate including licensing of operating and mechanical personnel, type
certificate for aircraft, aircraft engines, propellers and appliances,
airworthiness certificate, air carrier operating certificate, air agency
certificate, navigation facility and aerodrome certificate; air traffic routes;
radio and aeronautical telecommunications and air navigation aids; aircraft
accident inquiry; aerodromes, both public and private owned; construction
of obstructions to aerodromes; registration of aircraft; search and rescue;
facilitation of air transport; operations of aircraft, both for domestic and
international, including scheduled and non-scheduled; meteorology in
relation to civil aviation; rules of the air; air traffic services; rules for
prevention of collision aircraft; identification of aircraft; rules for safe
altitudes of flight; and such other rules, regulations , standards, governing
other practices, methods, procedures as the Administrator may find
necessary and appropriate to provide adequately for safety regularity and
efficiency in air commerce and air navigation.
(10) To provide for the enforcement of the rules and regulations issued
under the provisions of this Act and to conduct investigations for violations
thereto. In undertaking such investigation, to require by subpoena or
subpoena duces tecum, the attendance and testimony of witness, the
production of books, papers, documents, exhibit matter, evidence, or the
taking of depositions before any person authorized to administer oath.
Refusal to submit to the reasonable requirements of the investigation
committee shall be punishable in accordance with the provisions of this
Act.
(11) To investigate accidents involving aircraft and report to the Civil

Aeronautics Board the facts, conditions and circumstances relating to the
accidents and the probable cause thereof; and to make such
recommendations the Civil Aeronautics Board as may tend to prevent similar
accidents in the future Provided, That when an y accident has resulted in
serious or fatal injury the Civil Aeronautics Board shall make public such
report and recommendations: And provided, further, That no report on any
accident or any statement made during any investigation or during hearing
685
relative to such accident may be admitted as evidence or used for any

purpose in any civil suit growing out of any matter revealed with in any
such report, statement investigation or hearing.
(12) To collect and disseminate information relative to civil

aeronautics and the development of air commerce and the aeronautical
industry; to exchange with foreign governments, information pertaining to
civil aeronautics ; and to provide for direct communication all matters
relating to the technical or operational phase of aeronautics with
international aeronautical agencies.
(13) To acquire and operate such aircraft as may be necessary to

execute the duties and functions of the Civil Aeronautics Administration
prescribed in this Act.
(14) To plan, design, acquire, establish, construct, operate, improve,

maintain, and repair necessary aerodromes and other air navigation facilities.
(15) To impose and fix, except those mentioned in section forty,

paragraph twenty-five and hereinafter provided, reasonable charges and
fees for the use of government aerodromes or air navigation facilities; for
services rendered by the Civil Aeronautics Administration in the rating of
any aerodrome or air navigation facilities, civil aviation schools and
instructions, aircraft repair stations, and aircraft radio and aeronautical
telecommunications stations. To collect and receive charges and fees for
the registration of aircraft and for the issuance and/or renewal of licenses
or certificates for aircraft, aircraft engines, propellers and appliances, and
airmen as provided in this Act .
(16) To fix the reasonable charges to be imposed in the use of privately

owned air navigation facilities and aerodromes.
(17) To impose fines and/or civil penalties and make compromises

in respect thereto.
(18) To adopt a system for registration of aircraft as hereinafter

provided.
686
(19) To participate actively with the largest possible degree in the

development of international standardization practices in aviation matters
important to safe, expeditious, and easy navigation, and to implement as
far as practicable the international standards, recommended practices, and
policies adopted by appropriate international aeronautical agencies .
(20) To exercise and perform its powers and duties under this Act
consistent with any obligation assumed the Republic of the Philippines in
any treaty, convention or agreement on civil aviation matters.
(21) To cooperate, assist and coordinate with any research and

technical agency of the Government on matters relating to research and
technical studies on design, materials, workmanship, construction,
performance, maintenance and operation of aircraft, aircraft engines,
propellers, appliances and air navigation facilities including aircraft fuel
and oil: Provided, That nothing in this Act shall be construed to authorize
the duplication of the laboratory research, activities or technical studies of
any existing governmental agency.
(22) To designate such prohibited and danger areas, in consonance

with the requirements of the international aeronautical agencies and national
security.
(23) To issue, deny, cancel or revoke any certificate, permit or license

pertaining to aircraft, airmen, and air agencies: Provided, That an y order
denying, cancelling, revoking the certificate, permit or license may be
appealed to the Civil Aeronautics Board, whose decisions shall be final,
within fifteen days from the date of notification of such denial, cancellation
or revocation.
(24) To administer, operate, manage, control, maintain and develop

the Manila International Airport and all government-owned aerodromes
except those controlled or operated by the Armed Forces of the Philippines,
including such powers and duties as: (a) to plan, design, construct, equip,
expand, improve, repair or alter aerodromes or such structures,
improvements, or air navigation facilities; (b) to enter into, make and execute
687
contracts of any kind with any person, firm, or public or private corporation
or entity; (c) to acquire, hold, purchase, or lease any personal or real property,
right of ways, and easements which may be proper or necessary: Provided,
That no real property thus acquired and any other real property of the Civil
Aeronautics Administration shall be sold without the approval of the
President of the Philippines; (d) to grant to any person, such concession or
concession rights on space or property within or upon the aerodrome for
purposes essential or appropriate to the operation of the aerodrome upon
such terms and conditions as the Administrator may deem proper: Provided,
however, That the exclusive use of any landing strip or runway within the
aerodrome shall not be granted to any person; ( e) to determine the types of
aircraft that may be allowed to use any of the aerodromes under its
management and control in the interest of public safety; (f) to prescribe,
adopt, establish and enforce such rules and regulations consistent with
existing laws, rules and regulations as may be necessary for the safety,
health and welfare of the public within the aerodrome.
(25) To determine, fix, impose, collect and receive landing fees,

parking space fees, royalties on sales or deliveries, direct or in direct, to
any aircraft for its use of aviation gasoline, oil and lubricants, spare parts,
accessories, and supplies, tools, other royalties, fees or rentals for the use
of any of the property under its management and control.
As used in this sub-section:
(1) “Landing fees” refer to all charges for the use of any landing strip
or runway by any aircraft landing or taking off at an aerodrome.
(2) “Terminal fees” refer to charges for parking at or near the ramp,
terminal area or building, for purposes of loading or unloading passengers
and/or cargo.
(3) “Royalties” refer to all charges based on gross business or sales,

or gross or net profit.
688
(4) “Supplies” include any and all items of whatever nature or

description which may be necessary for or incidental to, the operation of
an aircraft.
(26) To grant permit to civil aircraft or persons to carry instrument or

photographic device to be used for aerial photography or taking of pictures
by photograph or sketching of any part of the Philippines.
SEC. 33. The Civil Aeronautics Administration shall make an annual

report to the Department Head which shall contain such information and
data as may be considered of value in the development of civil aeronautics
and such recommendation as to additional legislation on civil aeronautics
as may be deemed necessary.
CHAPTER VI - Registration and record
SEC. 34. Eligibility for registration.- Except as otherwise provided

in the Constitution and existing treaty or treaties no aircraft shall be eligible
for registration unless it is owned by a citizen or citizens of the Philippines
and is not registered under the laws of any foreign country.
Such certificate shall be conclusive evidence of nationality for

international purposes, but not in any proceedings under the laws of the
Republic of the Philippines.
The certificate of registration is conclusive evidence of ownership,

except in a proceeding where such ownership is or may be, at issue.
SEC. 35. Application for aircraft Registration – Applications for

certificate of registration shall be made in writing, signed and sworn to by
the owner of any aircraft eligible for registration. The application shall
also state: (1) the date and place of filing (2) the specifications, construction,
and technical description of the aircraft, and (3) such other information as
may be required by the Administrator in such manner and form as the
Administrator may by regulations prescribe.
689
SEC. 36. Issuance of certificate of Registration – Should the

Administrator, upon considering the application for registration, find the
aircraft eligible for registration, such aircraft shall be registered by the
Administrator, and the Administrator shall issue to the owner thereof a
certificate of registration.
SEC. 37. Revocation.-Any certificate of registration may be revoked

by the Administrator for any cause which render the aircraft ineligible for
registration.
SEC. 38. Conveyance to be recorded- No conveyance made or

executed, which affects the title to or interest in any civil aircraft of
Philippine registry, or any portion hereof shall be valid in respect to such
aircraft or portion on thereof against any person other than the person by
whom the conveyance is made or executed, his heirs assignees, executors,
administrators, devisees, or successors in interest, and any person haying
actual notice thereof, until such conveyance is recorded in the office of the
Civil Aeronautics Administration. Every such conveyance so recorded in
the Civil Aeronautics Administration shall be valid as against all persons.
Any instrument, recording of which is required by the provisions of this
Act, shall take effect from the date of its record in the books of the Civil
Aeronautics Administration, and not from the date of its execution.
SEC. 39. Form of conveyance.- No conveyance may be recorded

under the provisions of this Act unless it complies with the requirements
for the registration of documents affecting land. The conveyance to be
recorded shall also state: (1) the interest in the aircraft of the person by
whom such conveyance is made or executed or in the case of a contract of
conditional sale, the interest of the vendor; and (2) the interest transferred
by the conveyance.
SEC. 40. Method of recording,-The Administrator shall record

conveyances delivered to it in the order of their receipt, in files kept for
that purpose, indexed to show:
(a) the identifying description of the aircraft;
690
(b) the names of the parties to the conveyance;
(c) the date of the instrument and the date and time it is recorded;
(d) the interest in the aircraft transferred by the conveyance;
(e) if such conveyance is made as security for indebtedness, the

amount and date of maturity of such indebtedness; and
(f) all particular estates, mortgages, liens, leases, orders, and other
encumbrances and all decrees, instruments, attachments, or entries affecting
aircraft and other matters properly determined under this Act.
SEC. 41. Previous unrecorded ownership.- Applications for the

issuance or renewal of an airworthiness certificate for aircraft whose
ownership has not been recorded as provided in this Act shall contain such
information with respect to the ownership of the aircraft as the Administrator
shall deem necessary to show who have property interests in such aircraft
and the nature and extent of such interest .
CHAPTER VII - Violation and penalties
SEC. 42. Specific penalties.- (A) Any person engaging in air

commerce without a permit issued by the Board as provided in this Act
shall be published by a fine not exceeding five thousand pesos or by
Imprisonment for no more than one year, or both, in the discretion of the
court: Provided. That a person engaging in air commerce on the date of the
approval of this Act may continue so to engage until such time as the Board,
shall pass upon an application for a permit for such service, which
application must be filed, as provided in Chapter IV of this Act, within one
hundred and twenty days after the approval of this Act.
(B) Any air carrier violating any of the terms, conditions or limitations
contained in any permit or amendment thereto shall be punished by a fine
not exceeding one thousand pesos for each violation.
691
(C) Any air carrier violating any order, rule or regulation issued by
the Board shall be punished by a fine not exceeding one thousand pesos for
each violation.
(D) The following acts shall subject any air carrier to a fine not
exceeding one thousand pesos for each offense:
(1) Discounts or rebates on authorized rates, fares and charges;.
(2) Adopting rates, fares and charges which have been found or
determined by the Board to be unjust, unreasonable unduly preferential or
unjustly discriminatory in a final order; or which have not been previously
approved and authorized by the Board;
(3) Issuing any free pass, free tickets or free or reduced rates, fares
or charges for passengers except to the following persons : (a) officers,
agents, employees of the air carrier and their immediate families ;
(b)witnesses and attorneys attending any legal investigation into accidents
or any legal investigation in which such air carrier is interested; ( c) persons
injured in aircraft accidents and physicians and nurses attending such per
sons; (d ) members of the Board; (e) Officer and personnel of the Civil
Aeronautics administration when travelling on official business upon the
exhibition of their credentials; (f ) Members of Congress of the Philippines;
and (g) such other persons duly approved by the Board.
(E) Any person who operates any civil aircraft in violation of any
rule, regulation or order issued by the Administrator relating to aeronautical
safety standards or practices or procedures shall be punished by a fine not
exceeding five thousand pesos or by imprisonment for not more than one
year, or both, in the discretion of the court.
(F) Any person who, without the previous approval of the Civil
Aeronautics Board, effects any consolidation, merger, purchase, lease,
operating contract or acquisition and control between domestic air carriers,
or between domestic air carriers a and foreign air carriers, or between
domestic air carriers and any person engaged in any phase of aeronautics
692
shall be punished by a fine of five thousand pesos or by imprisonment for

not more than one year, or both, in the discretion of the court.
(G) No person shall use an unregistered aircraft eligible for

registration under the provisions of t his Act. Any per son who operates
such aircraft shall be punished by a fine not exceeding five thousand pesos
or by imprisonment for not more than six months, or both, in the discretion
of the court .
(H) Any person serving in any capacity as an airman in connection

with any civil aircraft without an airman certificate, or in violation of the
terms of any such certificate or in excess of the rating of such certificate
shall be punished by a fine not exceeding five thousand pesos. The repetition
of this offense shall be sufficient cause for t he revocation of the airman’s
certificate.
(I) Any person who employs in connection with any civil air craft
used in air commerce an airman who does not have an airman’s certificate
authorizing him to serve in the capacity for which he is employed, shall be
punished by a fine not exceeding five thousand pesos. A repetition of the
offense shall be sufficient cause for revocation of the permit.
(J) Any person who operates any civil air craft for which there is not
currently in effect an airworthiness certificate or in violation of the terms
of such certificate shall be punished by a fine not exceeding five thousand
pesos. The repetition of this offense shall be sufficient cause for the
revocation of the permit.
(K) Any person who without previous approval and authorization of

the Board, shall adopt, establish, maintain, change, revise, abandon, alter
amend defer reject discontinue, suspend, or restore, any classification,
rule or regulation, or practice affecting routes, itineraries, schedules,
classifications, increase or decrease of frequency of flights, in any manner
whatsoever, shall be punished by a fine of five thousand pesos. The repetition
of such offense shall be sufficient cause for revocation of the permit.
693
(L) No person shall interfere, obstruct, hinder, or delay the Civil

Aeronautics Board or any person duly delegated by the Board in the
performance of its duties in the public interest. A fine not exceeding five
thousand pesos shall be imposed upon anyone who:
(l) with intent to interfere with the performance of the duties of the
Board or any person duly delegated by the Board, shall knowingly or
willfully alter, falsify, mutilate any report, accounts, records, books, papers,
contracts, agreements and all other documents ; or
(2) shall knowingly and willfully fail or refuse: (a) to make and/ or
submit the books, contracts, tariffs, papers, agreements, reports and all other
documents required to be submitted by him for consideration before the
Administrator or his duly authorized representative or before the Board; or
(b) to keep or preserve accounts, records, memoranda, books, reports, papers
and all other documents required by the Administrator or his duly authorized
representative, or by the Civil Aeronautics Board; or
(3) is guilty of misconduct in the presence of the Board or so near

the same as to obstruct or interrupt the hearing or session or any proceedings
before the Board and/or the Administrator or any representative duly
authorized by them; or shall conduct himself in a rude or disorderly manner
before the Administrator or his duly authorized representative or any
member of the Board engaged in the discharge of official duty; or shall
orally or in writing disrespectfully offend or insult any of the above named
bodies or persons on the occasion of or in the performance of their official
duty or during any hearing, session, or investigation held by either the
Board or Administrator or their duly designated representative; or
(4) refuses to be sworn in as a witness or to answer as such when

lawfully required to do so: Provided, That the Board or the Administrator
or their duly authorized representative shall, if necessary, be entitled to the
assistance of the municipal police for the execution of any order to compel
a witness to be present or to testify; or
694
(5) without lawful justification or excuse, hinders obstructs, or delays

the Civil Aeronautics Board, the Administrator or their duly designated
representative in the inspection or examination of the books and or accounts
of an air carrier for the purpose of ascertaining the correctness in any material
particular of any report, papers, documents, books, contracts, agreements
and/or other documents submitted by such air carrier, or for any other
purpose deemed by the Board and/or the Civil Aeronautics Administration
to be in accordance with the public interest; or
(6) neglects or refuses to attend and/or testify and/or to answer any

lawful inquiry or to produce books, papers, or documents, if in his power
to do so, in obedience to the subpoena or lawful requirement of the Civil
Aeronautics Board or the Civil Aeronautics Administration; or
(7) testifies falsely or makes false affidavits or both before the Board
or Civil Aeronautics Administration or any duly designated representative
of either.
(M) No person shall interfere with air navigation. A fine not exceeding
five thousand pesos or imprisonment for not more than one year, or both,
in the discretion of the court, shall be imposed upon any person who:
(1) with intent to interfere with air navigation within the Philippines,
exhibits within the Philippines any light or signal at such place or in such
manner that it is likely to be mistaken f or a true light or signal established
pursuant to this Act or f or a true light or signal in connection with an
airport or other air navigation facility; or
(2) after due warning by the Administrator, continues to maintain

any misleading light or signal; or
(3) knowingly removes, extinguishes, or interferes with the operation

of an y true light or signal.
(N) Any person who shall knowingly and willfully forge, counterfeit,
alter, or falsely make any certificate authorized to be issued under this Act
695
or knowingly use or attempt to use any fraudulent certificate shall be

punished by a fine not exceeding five thousand pesos or imprisonment for
not more than one year, or both, in the discretion of the court.
(O) For the purpose of carrying out the provisions of this section, the
manager, or general manager or business manager, or person in charge of
the business of the firm or corporation committing an unlawful act shall be
held personally liable.
(P) The Administrator may file the necessary complaints for the
imposition of the penalties provided by this Act.
SEC. 43. General Penalty.-Any violation of the provisions of this

Act , or any order, rule or regulation issued thereunder, or any term, condition
or limitation of any certificate or permit issued under this Act for which no
penalty is expressly provided shall be punished by a fine not exceeding
five hundred pesos for each violation.
SEC. 44. Compromise Regarding penalty.-The Civil Aeronautics

Board may enter into compromise with respect to any penalty or fine
imposed by virtue of the provisions of this Act. Failure to comply with the
order or decision of the Board respecting such compromise shall be deemed
good and sufficient reason for the suspension of the permit or any certificate
until compliance is made. Compliance may also be enforced by appropriate
action brought in a court of competent jurisdiction.
CHAPTER VIII. - Orders and Judicial Review
SEC. 45. Enforcement of orders.-The orders, decisions, and

regulations of the Board and the terms and conditions of any certificate
issued by it may also be enforced by any of the civil remedies provided by
existing law.
SEC. 46. Effective date of orders and decisions.-All orders, rules,

and regulations of t he Civil Aeronautics Board shall take effect at such
time as the Board may prescribe. Whenever the Board is of the opinion that
696
an emergency requiring immediate action exists in respect to safety in air

navigation, it may, upon complaint or upon its initiative, make such just
and reasonable orders, rules and regulations as may be essential in the
interest of safety in air navigation to meet such emergency, without answer
or other form of pleading by the interested person or persons, with or without
notice, hearing, or the making or filing of a report: Provided, That the
Board shall immediately initiate proceedings relating to the matters
embraced in any such order, rule, or regulation and shall, insofar as
practicable, give preference to such proceedings over all others under this
Act.
SEC. 47. Reconsideration of orders.- Any interested party may request

the reconsideration of any order, ruling or decision of the Civil Aeronautics
Board by petition filed within fifteen days from the date of the notice of the
said order, ruling or decision made by the Board. The petition shall clearly
and specifically state the grounds for reconsideration. Copies of said petition
shall be served on all parties interested in the matter. It shall be the duty of
the Board to call a hearing on said petition without delay, after notice to all
parties concerned, and, after hearing, to decide the same as soon as
practicable.
SEC. 48. Finality of decision, order or ruling.- Decisions, orders,

and or rulings of the Board shall become final and conclusive after fifteen
days from the date thereof unless appealed within said period to the Supreme
Court by certiorari.
SEC. 49. Judicial review.- The Supreme Court may review any order,
ruling or decision of the Board and modify or set aside such order, ruling
or decision when it clearly appears that there was no evidence before the
Board to support reasonably such order , ruling or decision, or that the
same is contrary to law or that the Board has no or has exceeded its
jurisdiction. The evidence presented to the Board together with the record
of proceedings before the Board shall be certified by the secretary of the
Board to the Supreme Court.
Any ruling, order, decision or award of the Civil Aeronautics Board,

except such ruling, order, decision or award with respect to the issuance of
697
a permit, may be reviewed by the Supreme Court upon a writ of certiorari

in proper cases. The procedure for review, except as herein provided, shall
be prescribed by the Supreme Court.
Except as otherwise provided in the preceding paragraph, all orders,

rulings, or decisions of the Board may be reviewed on the application of
any person affected thereby by certiorari in appropriate cases or by petition
to be known as Petition for Review, which shall be filed within fifteen days
from the notification of such order , ruling or decision, or, in case a petition
for the reconsideration of such order is filed in accordance with the
preceding section and the same is denied, within fifteen days after notice
of the order denying the petition for reconsideration. Said petition shall be
placed on file in the office of the Supreme Court, which shall furnish copies
thereof to the secretary of the Boar d and other parties interested.
CHAPTER IX.-Receipts of the Civil Aeronautics
Administration and Civil Aeronautics Board.
SEC. 50. Fees.-For services rendered and documents issued by the

Civil Aeronautics Administration and/or the Civil Aeronautics Board, the
following fees shall be charged and collected:
(1) For filing of an application to engage in air commerce, two hundred

and fifty pesos;
(2) For filing of an application for ratings of aviation schools and

other air agencies, one hundred pesos;
(3) For each airman’s certificate issued, a maximum charge of fifty

pesos;
(4) For certifying copies of official documents and orders in the files
of the Civil Aeronautics Administration and Civil Aeronautics Board, fifty
centavos per copy plus twenty centavos per each page of folio so certified;
698
(5) For certified transcripts of notes of the Civil Aeronautics

Administration or Civil Aeronautics Board, thirty centavos for each page
of not less than two hundred words;
(6) For the registration of aircraft, a maximum fee of fifty pesos for
every aircraft registered, regardless of type;
(7) For the registration of engines, propellers and/or appliances, a

fee of ten pesos for every engine, propeller and/or appliance registered.
SEC. 51. Other fees.-When any act or service has been performed or
rendered by the Civil Aeronautics Administration under the provisions of
this Act for which no fee has been fixed by law, such fees shall be collected
as may from time to time be prescribed by the Civil Aeronautics
Administration with the approval of the Department Head.
SEC. 52. Disposition of receipt.- All money collected by the Civil

Aeronautics Administration under the provisions of this Act shall constitute
a revolving fund and shall be disbursed for the construction, repair,
maintenance and improvement of government air navigation facilities:
Provided, however, That any and all sums to be derived and collected for
the Manila International Airport as well as cash and collections on accounts
receivable standing to the credit of the National Airports Corporation and
the Manila International Airport Division shall accrue to the Manila
International Airport r evolving fund which shall be disbursed by the Civil
Aeronautics Administration for the operation of the Manila International
Airport and for such other expenses as may be necessary, appropriate or
incidental in connection therewith.
CHAPTER X.-Miscellaneous Provisions
SEC. 53. Separability of unconstitutional provisions. - The

unconstitutionality of any section, subsection, sentence, clause, or term of
this Act shall not affect the validity of the other provisions thereof.
SEC. 54. The provisions of Commonwealth Act Numbered Ninety-

seven, Commonwealth Act Numbered One hundred and sixty-eight as
699
amended by Commonwealth Act Numbered Five hundred and twenty-nine,

Republic Act Numbered One hundred and twenty-five, section one hundred
and thirty-six to one hundred and fifty of Executive Order Numbered Ninety-
four dated October four, nineteen hundred and forty-seven, sections two,
three, four, and six of Executive Order Numbered Three hundred and sixty
five dated November ten, nineteen hundred and fifty, and Republic Act
Numbered One hundred and fifty-eight, and all other laws, executive orders,
administrative orders or proclamations or parts thereof inconsistent with
the provisions of this Act are hereby repealed or modified accordingly.
The present personnel of , and all un expended balances of

appropriations available to, the Civil Aeronautics Administration created
under the aforementioned Executive Orders shall be transferred to, and
shall be available for use by the Civil Aeronautics Administration
reorganized under this Act, respectively.
SEC. 55. Appropriation.- The sum of sixty thousand pesos or so much

thereof as may be necessary is authorized to be appropriated out of any
funds in the National Treasury not otherwise appropriated for the purpose
of carrying out the provisions of sections seven and eight, Chapter III, of
this Act; and the sum of sixty thousand pesos or so much thereof as may be
necessary, is authorized to be appropriated out of any funds in the said
Treasury not otherwise appropriated for carrying out the provisions of
sections twenty-six, thirty and thirty-one, Chapter V, of this Act.
SEC. 56. Effectivity. - This Act shall take effect upon its approval.
700
AN ACT GRANTING TO A. L. AMMEN TRANSPORTATION

COMPANY, INCORPORATED, AND/OR ITS ASSOCIATES AND
SUBSIDIARIES, A TEMPORARY PERMIT TO CONSTRUCT,
INSTALL, ESTABLISH AND OPERATE PRIVATE FIXED POINT-
TO-POINT AND LAND-BASED RADIO STATIONS FOR THE
RECEPTION AND TRANSMISSION OF INTER-OFFICE RADIO

SECTION 1. There is hereby granted to A. L. Ammen Transportation

Company, Incorporated, and/or its associates and subsidiaries, successors
or assigns, a temporary permit to construct, install, establish and operate in
the Philippines and at such places as the said company may select, subject
to the approval of the Department Secretary under whose jurisdiction the
Radio Control Division is functioning, or any competent authority who is
or shall be authorized, to give said approval, private fixed point-to-point
and land-based radio stations for the reception and transmission of wireless
messages on radiotelephony, each station to consist of two radio apparatus
comprising of a receiving and a sending radio apparatus.
SEC. 2. The President of the Philippines shall have the power and
authority to permit the location of said private fixed point-to-point and
land-based radio stations or any of them on the public domain upon such
terms as he may prescribe.
SEC. 3. This temporary permit shall continue to be in force during

the time that the Government has not established similar service at the
places selected by the grantee.
SEC. 4. The A. L. Ammen Transportation Company, Incorporated,

shall not engage in domestic business of telecommunications in the
Philippines without further special assent of the Congress of the Philippines,
701
it being understood that the purpose of this temporary permit is to secure to

the grantee the right to construct, install, establish and operate private fixed
point-to-point and land-based radio stations in places within the Philippines
as the interest of the company and its trade and business may justify.
SEC. 5. A special right is hereby reserved to the President of the

Philippines in time of war, insurrection, public peril, calamity, or disturbance
of peace or order, to cause the closing of the stations or to authorize the
temporary use or possession thereof by any department of the Government
upon just compensation.
SEC. 6. No fees shall be charged by the grantee as the radio stations

that may be established by virtue of this Act shall engage in communications
regarding the grantee’s business only.
SEC. 7. The grantee, its associates and subsidiaries, successors or

assigns, shall hold the National, provincial, and municipal governments of
the Philippines harmless from all claims, accounts, demands or actions
arising out of accidents or injuries, whether to property or to persons caused
by the construction or operation of the stations for reception and
transmission of wireless messages by the grantee, its associates and
subsidiaries, successors or assigns.

assigns, shall so construct and operate its radio stations as not to interfere
with the operation of other radio stations maintained and operated in the
Philippines.

assigns, shall be subject to the Corporation Law of the Philippines now
existing or which may hereafter be enacted.

assigns, is hereby authorized to operate its private stations on commercial
frequencies that may be assigned to it by the licensing authority.
702
SEC. 11. This temporary permit shall be subject to amendment,

alteration, or repeal by the Congress of the Philippines when the public
interest so requires, and shall not be interpreted to mean as an exclusive
grant of the privilege herein provided for.
703
AN ACT TO AMEND SECTION ELEVEN OF ACT NUMBERED THREE

THOUSAND NINE HUNDRED AND NINETY-TWO, AS
AMENDED, OTHERWISE KNOWN AS THE REVISED MOTOR
VEHICLE LAW

SECTION 1. Section eleven of Act Numbered Three thousand nine

hundred and ninety-two is hereby amended to read as follows:
“SEC. 11. Registration fees for part of year. – If any application for
the first registration is made during the first quarter ·of a calendar year, the
total annual fee for that year shall be paid.
“If such first application is made during the second quarter of a

calendar year, three-fourths of the annual fee for that year shall be paid.
“If such first application is made during the third quarter, one-half of
the annual fee shall be paid.
“If during the fourth quarter, one-fourth of the annual fee shall be
paid.
“This section shall not be construed to allow quarterly renewals of

registration in order to avoid payment of fees in advance for the entire
year: Provided, however, That owners of motor vehicles dedicated solely
to agricultural purposes may register the same monthly for such months
when the said motor vehicles are to be actually used.”
704
AN ACT PROHIBITING THE NAMING OF SITIOS, BARRIOS,

MUNICIPALITIES, CITIES, PROVINCES, STREETS,
HIGHWAYS, AVENUES, BRIDGES, AND OTHER PUBLIC
THOROUGHFARES, PARKS, PLAZAS, PUBLIC SCHOOLS,
PUBLIC BUILDINGS, PIERS, GOVERNMENT AIRCRAFTS AND
VESSELS, AND OTHER PUBLIC INSTITUTIONS AFTER
LIVING PERSONS

SECTION. 1. The naming of sitios, barrios, municipalities, cities,

provinces, streets, highways, avenues, bridges, and other public
thoroughfares, parks, plazas, public schools, public buildings, piers,
government aircrafts and vessels, and other public institutions and places
after living persons is hereby prohibited, except when it is a condition in a
donation in favor of the government. Any ordinance or resolution adopted
contrary to the provisions of this Act shall be null and void.
SEC. 2. The naming of streets, highways, avenues, bridges and public

thoroughfares, parks, plazas, sitios, barrios, municipalities, cities, provinces,
public schools, public buildings, piers, government aircrafts and vessels,
and other public institutions and places after living persons, except those
made pursuant to existing Acts of Congress, which are still in effect on the
date of the approval of this Act, are hereby declared null and void and the
proper authorities are hereby directed to make the corresponding changes
within six months after the approval of this Act.
705
AN ACT TO APPROPRIATE FUNDS TO BEAR THE EXPENSES OF

HOLDING THE SECOND NORTH PACIFIC REGIONAL AIR
NAVIGATION MEETING AND THE FOURTH SESSION OF THE
FACILITATION OF INTERNATIONAL AIR TRANSPORT
DIVISION MEETING TO BE CONVENED BY THE
INTERNATIONAL CIVIL AVIATION ORGANIZATION AT
MANILA IN NINETEEN HUNDRED AND FIFTY-FIVE

SECTION 1. There is hereby appropriated the sum of one hundred

fifty thousand pesos to bear the expenses of holding the Second North
Pacific Regional Air Navigation Meeting and the Fourth Session of the
Facilitation of Air Transport Division Meeting to be convened by the
International Civil Aviation Organization at Manila in nineteen hundred
and fifty-five, and such other expenses as shall be necessary to carry into
effect the purposes of this Act.
706
AN ACT CLASSIFYING AS A TRUCK INSTEAD OF AS AN

AUTOMOBILE THE MOTOR VEHICLE POPULARLY KNOWN
AS JEEP, FOR THE PURPOSES OF THE IMPOSITION AND
COLLECTION OF THE SALES TAX

SECTION 1. For purposes of the imposition and collection of the

sales tax, the motor vehicle technically denominated “one-fourth ton truck,
four by four” and popularly known as the jeep, is hereby classified as a
truck, and every original sale, barter, exchange or similar transaction
involving the transfer of ownership of, or title to, said motor vehicle shall
be subject to the payment of the tax provided for in section one hundred
eighty-six of the National Internal Revenue Code, as amended.
Approved,
** Lapsed into law on June 29, 1964 without the signature of the President by
virtue of the provisions of Article VI, Section 20(1) of the Constitution.
707
AN ACT TO FURTHER AMEND SECTION ONE OF ACT NUMBERED

THIRTY-FIVE HUNDRED AND NINETY-TWO, KNOWN AS THE
“PORT-WORKS FUND ACT”, AS AMENDED BY
THIRTY, AND TO PROVIDE FOR THE DISBURSEMENT OF
SAID FUNDS SO AS TO EXCLUDE DISBURSEMENT OF PORT
WORKS FUND FOR THE INVESTIGATION, CONSTRUCTION,
IMPROVEMENT AND MAINTENANCE OF AIRPORTS AND
LANDING FIELDS

SECTION 1. Section one of Act Numbered Thirty-five hundred and

ninety-two, as amended by Commonwealth Act Numbered One hundred
and thirty, is hereby further amended to read as follows:
“SECTION 1. All wharfage fees collected from the date on which

this Act take effect, under the provisions of section fourteen of the Tariff
Law of nineteen hundred and nine, shall be deposited in the National
Treasury and shall form a special fund to be known as ‘Port Works Fund,’
which shall be disbursed in accordance with acts of the Congress for the
investigation, construction, improvement and maintenance of ports, buoys,
lighthouses, and other aids to navigation, including the purchase and
maintenance of necessary equipment: Provided, however, That fifty per
centum of the fund so formed is hereby set aside for the necessary expenses
of maintenance of ports, buoys, lighthouses, and other aids to navigation
belonging to the National Government, including dredging and
improvements incidental to such maintenance, to be allotted by the Secretary
of Public Works and Communications, with the approval of the President,
upon certification by the Secretary of Finance that the necessary funds are
available: Provided, further, That out of the remaining fifty per centum of
the fund so formed there is hereby set aside such sum as may be necessary
708
to reimburse the general fund for the payment of interest charges on account
of bonds issued by the National Government for the construction and
improvement of ports.”
709
AN ACT TO BE KNOWN AS “THE PHILIPPINE OVERSEAS SHIPPING

ACT OF NINETEEN HUNDRED AND FIFTY-FIVE”

SECTION 1. Declaration of policy. – Shipping commands a

transcendental position in the economic development and growth of a nation.
One of the urgent needs of the Philippines is a well-balanced Philippine
merchant marine (a) sufficient to carry the expanding international trade
of the Philippines in time of peace, (b) capable of serving as a naval and
military auxiliary in time of war and national emergency, (c) owned and
operated under the Philippine flag by citizens of the Philippines, or by
associations or corporations organized under the laws of the Philippines, at
least sixty per cent of the capital of which is owned by citizens of the
Philippines, and (d) composed of the best equipped, safest and most suitable
types of modern vessels, and manned with trained and efficient Filipino
officers and crew. To attain this objective it is hereby declared to be the
policy of the Government of the Philippines: (a) to encourage and assist
vessels of Philippine registry engaged in international trade; (b) to foster
the development and encourage the maintenance of such a Philippine
merchant marine; (c) to provide financial aid and assistance in long-range
ship-building program, and at all times, to promote shipping in such other
respects as may be required to attract private capital and enterprise to the
shipping industry and create a healthy climate to attract private enterprise
to invest in the overseas transportation; and (d) to do whatever may be
necessary, from time to time, to attain these objectives.
The Republic of the Philippines, in common with other maritime

nations, recognizes the international character of shipping in foreign trade
and existing international practices in maritime transportation, and declares
it to be part of its national policy to cooperate with other friendly nations in
the maintenance and improvement of such practices.
710
SEC. 2. In pursuance of the above-declared policy any citizen of the

Philippines, or any association or corporation organized under the laws of
the Philippines, at least sixty per cent of the capital of which is owned by
citizens of the Philippines, engaged or which shall engage exclusively in
the overseas shipping business, and in the construction of modern boats for
overseas service shall be exempt from the payment of income tax on income
derived from his or its shipping business for a period of ten years from the
date of approval of this Act, provided that all those who avail themselves
of the loan assistance in this Act shall invest all net profits realized during
that period in the construction, purchase, or acquisition of additional vessels
and equipment and/or in the improvement of its vessels and equipment.
SEC. 3. There is hereby appropriated out of any funds in the National

Treasury not otherwise appropriated or from loans which may be contracted
either locally or abroad for the purpose, by the National Development
Company through an agency of the Philippine Government, for the fiscal
year ending June thirty, nineteen hundred and fifty-six, and for each of the
four fiscal years thereafter, the sum of twenty million pesos annually for
the construction, purchase, or acquisition of ocean-going vessels for the
purpose of resale, lease or charter to persons, associations or corporations
referred to in section two of this Act. The fund may also be invested in
loans to citizens of the Philippines or to associations or corporations
organized under the laws of the Philippines, at least sixty per cent of the
capital of which is owned by citizens of the Philippines, for the purpose of
financing the construction, purchase, or acquisition and operation by such
citizens, associations or corporations of ocean-going vessels.
SEC. 4. The administration and investment of the annual sums

appropriated, pursuant to section three of this Act, shall be vested in the
National Development Company, which is hereby authorized and
empowered to acquire ocean-going vessels for resale upon an irrevocable
contract to purchase such vessels; to make from the said sums the loans
referred to above; to make or cause to be made studies and investigations
of the person or entity applying for the loan of the shipping service to be
established; and to determine the advisability of making said loan.
711
SEC. 5. All loans authorized under this Act shall be upon the security
of a preferred mortgage on the vessel for the acquisition of which such
loans are made, including its equipment, and the certificate or any other
form of authorization for the operation of such vessels and the shipping
service of the borrower. Ail said loans shall be self-liquidating within a
period not to exceed twenty years and shall bear interest at the rate of not
more than four and one-half per cent per annum: Provided, however, That
such loans shall not exceed seventy-five per cent of the cost of the vessels:
Provided, further, That such vessels shall be fully insured: Provided, finally,
That no rights acquired under this Act by the vendee, lessee or charterer of
the vessel shall, during the existence of the contractual agreement, be
transferred or otherwise encumbered in favor of third parties without the
consent of the National Development Company.
SEC. 6. All moneys representing payments of principal and interest

on loans made pursuant to this Act shall be considered as special fund to be
used exclusively to carry out the provisions of this Act.
SEC. 7. The National Development Company is authorized and

empowered to bid for and purchase at any foreclosure or other sale, or
otherwise to acquire the vessels, including all other equipment, certificate
or authorization for the operation of such vessels, pledged or mortgaged to
secure any loan made pursuant to this Act; to pay the purchase price and
any costs and expenses incurred in connection therewith from the sums
authorized in section three of this Act; to accept title to any vessel, including
all its property and equipment, certificate or authorization for its operation,
so purchased or acquired in the name of the Government of the Philippines;
to lease or charter on bare-boat basis for an amount which, if computed
annually, shall not exceed seven per cent of the total cost of such vessel
and equipment and for such period as may be deemed necessary or advisable
to protect the investment therein; and to sell such vessel and all its property,
certificate or authorization for its operation, so acquired, upon such terms
and for such consideration as the National Development Company shall
determine to be reasonable. The sale of vessels shall be made only to
responsible persons who are citizens of the Philippines, or associations or
corporations organized under the laws of the Philippines, at least sixty per
712
cent of the capital of which is owned by citizens of the Philippines, who

agree to maintain such lines upon such terms of payment and other
conditions as may be deemed just and necessary to secure and maintain the
service of said lines.
SEC. 8. For the purpose of making the studies and investigations

herein provided for, the National Development Company may request and
utilize, with the approval of the proper heads of departments, free of charge,
such services of national officers and employees and of officers and
employees of any government-owned or controlled corporation as are
available, and such services shall be considered to have been rendered to
the departments, bureaus or offices in which they are employed.
SEC. 9. The National Development Company is empowered to issue

the necessary rules and regulations to carry out the provisions and purposes
of this Act subject to the limitations imposed in this Act. It shall present to
the Congress at the close of each fiscal year a full report of its activities
under this Act.
SEC. 10. The President of the Philippines may in time of war and
other national emergency, take possession, absolutely or temporarily, for
any naval or military purpose, of any and all vessels of Philippine registry.
The Government shall pay the person whose vessel has been taken, upon
ascertainment by agreement or otherwise, the fair actual value based upon
normal conditions at the time of taking the interest of such person in every
vessel taken absolutely, or if taken for a limited period, the fair charter
value under normal conditions for such period. In case of disagreement, as
to such fair value it shall be determined by appraisers, one to be appointed
by the National Development Company, one by the person whose vessel
has been taken, and a third by the two so appointed. The finding of such
appraisers shall be final and binding upon both parties.
SEC. 11. For the purpose of this Act, an ocean-going vessel of

Philippine registry is deemed to be engaged in international trade when it
undertakes the carriages of goods and/or passengers from the Philippines
to a foreign port, or from a foreign port to either another port or a Philippine
port.
713
SEC. 12. All dollars required by ocean-going vessels of Philippine

registry or by operators of ocean-going vessels of Philippine registry for
the purchase of vessels, repair and improvement, engines, spare parts,
accessories, supplies and other expenses required for the operation of the
vessels in foreign ports or in the high seas, when recommended by the
National Economic Council, shall be made available by the Central Bank
of the Philippines or by any other agency in charge of dollar controls, subject
to the rules and regulations of the Central Bank, free of exchange tax, and
that all such engines, spare parts, accessories, supplies and materials needed
for the repair or construction of vessels shall be exempt from the special
import tax: Provided, That previous certification by the National Shipyards
and Steel Corporation shall be issued to the effect that the above-mentioned
vessels, repair and improvement, engines, spare parts, accessories and
supplies cannot be furnished by the National Shipyards and Steel
Corporation. All dollars acquired or spent by the owners of said vessels
shall be properly accounted for to the Central Bank of the Philippines or to
any other agency in charge of dollar controls.
SEC. 13. All laws, executive orders and regulations, or parts thereof,
which are inconsistent with this Act are hereby repealed.
714
AN ACT GRANTING THE MONSERRAT TRANSPORTATION, INC.,

A TEMPORARY PERMIT TO CONSTRUCT, MAINTAIN AND
OPERATE PRIVATE FIXED POINT-TO-POINT AND LAND
BASED AND LAND MOBILE RADIO STATIONS FOR THE
RECEPTION AND TRANSMISSION OF RADIO
COMMUNICATIONS IN THE CITIES OF MANILA, QUEZON,
AND PASAY AND IN THE PROVINCES OF RIZAL, BULACAN,
LAGUNA, AND CAVITE

SECTION 1. There is hereby granted to Monserrat Transportation,

Inc., its successors or assigns, a temporary permit to construct, maintain
and operate in the cities of Manila, Quezon, and Pasay and in the provinces
of Rizal, Bulacan, Laguna and Cavite, private fixed point-to-point and land
based and land mobile radio stations for the reception and transmission of
wireless messages on radiotelegraphy or radio-telephone, each station to
be provided with a radio transmitting apparatus and a radio receiving
apparatus.

places stated above, and is granted upon the express condition that the
same shall be void unless the construction or installation of said stations be
begun within one year from the date of the approval of this Act and be
completed within two years from said date.
SEC. 3. The grantee, its successors or assigns, shall not engage in

domestic business of-telecommunications in the Philippines, it being
understood that the purpose of this temporary permit is to secure to the
grantee the right to construct, install, maintain, and operate private fixed
point-to-point and land based and land mobile radio stations in such places
within the Philippines as the interests of the grantee may justify.
715

SEC. 5. The grantee, its successors or assigns, shall so construct and

operate its radio stations as not to interfere with the operation of other
radio stations maintained and operated in the Philippines.
SEC. 6. The grantee, its successors or assigns, shall hold the national,
provincial, city and municipal governments of the Philippines harmless
from all claims, accounts, demands or actions arising out of accidents or
injuries, whether to property or to persons, caused by the construction or
operation of its radio stations.
SEC. 7. The grantee, its successors or assigns, is authorized to operate

its private fixed point-to-point and land based and land mobile radio stations
on the medium frequency, high frequency, and very high frequency, that
may be assigned to him by the Secretary of Public Works and
Communications.

Philippines in time of war, insurrection, public peril, calamity or disaster
to cause the closing of the grantee’s radio stations or to authorize the
temporary use, or possession thereof by any department of the Government
upon just compensation.
SEC. 9. This temporary permit shall be subject to the amendment,

alteration, or repeal by the Congress of the Philippines when public interest
so requires, and shall not be interpreted as an exclusive grant of the privilege
herein provided for.
716
AN ACT TO AMEND SECTION FOUR, ARTICLE THREE, CHAPTER

ONE, SECTION FIVE, ARTICLE ONE, CHAPTER TWO, AND
SECTIONS TWELVE AND FOURTEEN, ARTICLE THREE,
CHAPTER TWO, OF ACT NUMBERED THIRTY-NINE
MOTOR VEHICLE LAW, AS AMENDED

SECTION 1. Subsection (l) is hereby added to Section four, Article

three, Chapter One, of Act Numbered Thirty-nine hundred and ninety-two,
as amended, which reads as follows:
“(l) It shall be the duty of the Chief, Motor Vehicles Office and his
deputies to require applicants for registration of motor vehicles purchased
or acquired from tax-free persons, entities, or agencies in the Philippines
to show proof of payment of the sales or compensating tax prescribed in
the National Internal Revenue Code on the said motor vehicles, in case of
non-payment of the said taxes, the Chief, Motor Vehicles Office, shall have
the same powers granted him in section fourteen hereof and shall
immediately notify the Collector of Internal Revenue of such non-payment
of the said taxes.”
SEC. 2. Subsection (f) is hereby added to section five, Article one,

Chapter two, of Act Numbered Thirty-nine hundred and ninety-two, as
amended, which reads as follows:
“(f) Report of Purchase or Acquisition of Motor Vehicles.-Any person

who purchases or acquires motor vehicles from tax-free persons, entities,
or agencies in the Philippines, shall, within fifteen days from the purchase
or acquisition thereof, render a report of his purchase or acquisition of the
motor vehicle to the Chief, Motor Vehicles Office, stating the name and
address of the person, entity, or agency from whom the motor vehicle was
717
acquired, the date of purchase or acquisition, the manufacturer’s serial

number and motor number, a brief description of the vehicle, whether or
not the sales or compensating tax on the vehicle has already been paid, and
such other information as the Chief, Motor Vehicles Office, may require.
The Collector of Internal Revenue shall be furnished with a copy of the
said report within the same period. Failure to submit the report required in
this section shall constitute an offense and shall be punished by a fine of
not more than two hundred pesos or an imprisonment of not more than six
months or both in the discretion of the court.”
SEC. 3. Section twelve, Article three, Chapter two, of Act Numbered

Thirty-one hundred and ninety-two is hereby amended to read as follows:
“SEC. 12. Filing application and issuing certificates.- Upon receipt

of the application for registration, with corresponding fee, the Chief, Motor
Vehicles Office, or his deputies shall cause the same to be registered or
filed for future reference, and shall issue to the applicant a numbered
certificate of registration for each separate motor vehicle: Provided, That
in cases where the applicants are common carriers or transportation
contractors subject to the fixed and percentage taxes established in sections
182 and 192 of the National Internal Revenue Code, no certificate of
registration shall be issued to such common carriers or transportation
contractors unless they show evidence of payment of the required taxes to
which they are liable under the law covering the period up to and including
the calendar quarter immediately preceding the date of their application
for renewal of registration of their motor vehicles. Evidence of payment
may consist of either a tax clearance certificate issued by the Collector of
Internal Revenue, if in Manila, or his deputies, if in the provinces; or of the
official receipts under which said taxes were paid. Any evidence so presented
shall be noted on the certificate of registration by the issuing officer.”
SEC. 4. Section 14, Article three, Chapter two, of Act Numbered

Thirty-nine hundred and ninety-two, as amended, is hereby further amended
to read as follows:
“SEC. 14. Suspension of registration certificates.-If on inspection as

provided under Section four (h) hereof, the Chief, Motor Vehicles Office
718
or his deputies find any motor vehicle to be unsightly, dangerous,

overloaded, or capable of causing excessive damage as aforesaid, he may
refuse to register the same, or if already registered he may require the number
plates to be surrendered to him; and upon seventy-two hours notice to the
owner or operator, suspend such registration until the defects of vehicles
are corrected. When the record of any particular motor vehicle or of its
chauffeur shows for any twelve months period, more than three warnings
to the owner or chauffeur for violations of this Act, or of the Public Service
Acts, or more than one conviction by the Courts, the Chief, Motor Vehicles
Office may, in his discretion or upon recommendation of the Public Service
Commissioner, suspend the certificate of registration and require the
surrender of the number plates for a period not to exceed sixty days.
“Upon recommendation of the Collector of Internal Revenue, on

account of failure or refusal to pay internal revenue taxes, the Chief, Motor
Vehicles Office may suspend the certificates of registration of the motor
vehicles of common carriers and transportation contractors and require the
surrender of the license plates within a period of sixty days.
“After two such suspensions, the owner may be refused re-registration

of the vehicle concerned for one year.
“The action of the Chief; Motor Vehicles Office, or his deputies under
this section shall be communicated in writing to the owner of the motor
vehicle.”
719
THE PHILIPPINE COASTWISE SHIPPING ACT OF NINETEEN

HUNDRED FIFTY-SIX

SECTION 1. There is hereby authorized to be appropriated out of

any funds in the National Treasury not otherwise appropriated or from the
proceeds of the sale of bonds as provided in Republic Act Numbered One
thousand, for the fiscal year ending June thirty, nineteen hundred fifty-
seven and for each of the four fiscal years thereafter, the sum of twenty
million pesos for the purpose of financing the local construction of coastwise
vessels or watercrafts of not less than one hundred gross tons.
SEC. 2. The administration and investment of the sum appropriated

pursuant to section one of this Act and the local construction of coastwise
vessels or watercrafts shall be vested in the National Shipyards and Steel
Corporation which is hereby authorized and empowered under its charter
to engage in the building of ships, vessels, launches, tugs, barges, ferries,
scows, liners and other vessels or marine crafts or equipments.
SEC. 3. Pursuant to section two of this Act, the National Shipyards

and Steel Corporation is authorized and empowered to construct and/or to
enter into an irrevocable contract for the construction of vessels and
watercrafts of no less than one hundred gross tons with any natural-born
citizens of the Philippines, or any government agency, or association or
corporation organized under the laws of the Philippines, one hundred per
cent of the capital (or sixty-seventy-five per cent) of which is owned by
natural-born citizens of the Philippines which is engaged in the coastwise
shipping business.
Provided, That bids first be opened inviting offers for payments in

shorter term than twenty years and in larger installments. If there are two
or more desiring to build, preference should be given to those who have
720
made larger investments and contributed more to the growth of the shipping
industry in the Philippines.
SEC. 4. All construction, other than of government agencies,

authorized under this Act shall be upon the security of a preferred mortgage
on the vessel including its equipment and the certificate or any other form
of authorization for the operation of such vessel.
SEC. 5. All such funds used for the construction of the vessels or
watercrafts herein contemplated shall be self liquidated within a period not
to exceed twenty years and shall bear interest at the rate of not more than
four and one-half per cent per annum: Provided, however, That a down
payment from owner or operator of not less than twenty per cent of the
price of the vessel shall be paid upon the execution of the contract for the
construction of such vessels or watercrafts:
Provided, further, That such vessels shall be fully insured by the

owner or operator: And provided, finally, That no right secured under this
Act by the owner of the vessel shall, during the existence of the contractual
agreement, be transferred or encumbered to third parties without the consent
of the National Shipyards and Steel Corporation.
SEC. 6. All moneys representing payments of principal and interest

on constructions made pursuant to this Act shall be considered as revolving
fund to be used exclusively to carry out the provisions of this Act.
SEC. 7. The National Shipyards and Steel Corporation is authorized

and empowered to bid for and purchase at any foreclosure or the sale, or
otherwise to acquire the vessel or watercraft, including all other equipment,
certificate or authorization for the operation of such vessel, pledged or
mortgaged to secure any construction expenses made pursuant to this Act,
to accept title to any vessel or watercraft including all its property and
equipment, certificate or authorization and to sell such vessel or watercraft
and all its property, certificate or authorization for its operation, so acquired,
upon such terms and for such consideration as the National Shipyards and
Steel Corporation shall determine to be reasonable.
721
SEC. 8. The National Shipyards and Steel Corporation is empowered

to issue the necessary rules and regulations to carry out the provisions and
purposes of this Act subject to the limitations imposed in this Act.
SEC. 9. All laws, executive orders and regulations, or parts thereof,

which are inconsistent with this Act are hereby repealed.
722
AN ACT GRANTING THE PHILIPPINE RABBIT BUS LINES, A

TEMPORARY PERMIT TO CONSTRUCT, INSTALL,
ESTABLISH AND OPERATE PRIVATE FIXED POINT-TO-POINT
AND LAND BASED RADIO STATIONS FOR THE RECEPTION
AND TRANSMISSION OF INTER-OFFICE RADIO

SECTION 1. There is hereby granted to the Philippine Rabbit Bus

Lines a temporary permit to construct, install, establish and operate in the
Philippines and at such places as the said company may select, subject to
the approval of the Department Secretary under whose jurisdiction the Radio
Control Division is functioning, or any competent authority who is or shall
be authorized to give said approval, private fixed point-to-point and land
based radio stations for the reception and transmission of wireless messages
on radiotelephony, each station to consist of two radio apparatus comprising
of a receiving and a sending radio apparatus.
land based radio stations or, any of them on the public domain upon such

places selected by the grantee.
SEC. 4. The Philippine Rabbit Bus Lines shall not engage in domestic
business of telecommunications in the Philippines without further special
assent of the Congress of the Philippines, it being understood that the
purpose of this temporary permit is to secure to the grantee the right to
construct, install, establish and operate private fixed point-to-point and land
based radio stations in places within the Philippines as the interest of the
grantee and its trade and business may justify.
723

Philippines in time of war, insurrection, public peril, calamity, or disturbance
of peace and order, to cause the closing of the stations or to authorize the
temporary use or possession thereof by any department of the Government
upon payment of just compensation.

SEC. 7. The grantee shall hold the national, provincial, city and
municipal governments of the Philippines harmless from all claims,
accounts, demands or action arising out of accidents or injuries, whether to
property or to persons, caused by the construction or operation of the stations
for reception and transmission of wireless messages by the grantee.
SEC. 8. The grantee shall so construct and operate its radio stations
as not to interfere with the operation of other radio stations maintained and
operated in the Philippines.
SEC. 9. The grantee shall be subject to the corporation laws of the

Philippines now existing or which may hereafter be enacted.
SEC. 10. The grantee is hereby authorized to operate its private

stations on commercial frequencies that may be assigned to it by the
licensing authority.

interest so requires, and shall not be interpreted to mean as an exclusive
grant of the privileges herein provided for.
724
AN ACT APPROPRIATING ONE HUNDRED EIGHTY THOUSAND

PESOS FOR THE MAINTENANCE, FUEL, REPAIR AND
REPLACEMENT OF RURAL HEALTH JEEPS AND OTHER
VEHICLES

SECTION 1. The sum of one hundred eighty thousand pesos is hereby

appropriated, out of any funds in the National Treasury not otherwise
appropriated, for the maintenance, fuel, repair and replacement of rural
health jeeps and other vehicles of the rural health personnel: Provided,
however, That not more than three hundred pesos per annum shall be spent
for the maintenance and repair of each vehicle herein mentioned.
725
AN ACT GRANTING PHILIPPINE AIR LINES, INC., A TEMPORARY

PERMIT TO CONSTRUCT, MAINTAIN AND OPERATE
COMMERCIAL FIXED POINT-TO-POINT, COASTAL,
AERONAUTICAL, LAND BASED AND LAND MOBILE RADIO

SECTION 1. There is hereby granted to Philippine Air Lines, Inc., a

temporary permit to construct, maintain and operate in the Philippines, at
such places where it operates its airline business, subject to the approval of
the Secretary of Public Works and Communications, or any licensing
authority, commercial fixed point-to-point, coastal, aeronautical, land based
and land mobile radio stations for the reception and transmission of wireless
messages on radiotelegraphy or radiotelephony, each station to be provided
with radio transmitting apparatus and radio receiving apparatus.

the time that grantee conducts its airline business and operations at the
places selected by the grantee, and is granted upon the express condition
that the same shall be void unless the construction or installation of said
stations be begun within two years from the date of the approval of this Act
and be completed within three years from said date.
SEC. 3. The grantee may charge such fees for its services at such
rates as may be approved by the Secretary of Public Works and
Communications or any licensing authority.
SEC. 4. The grantee shall file a bond in the amount of fifty thousand
pesos to guarantee full compliance and fulfilment of the conditions under
which this temporary permit is granted.
726
SEC. 5. The grantee shall so construct and operate its radio stations
as not to interfere with the operation of other radio stations maintained and
accounts, demands, or actions arising out of accidents or injuries whether
to property or to persons, caused by the construction or operation of its
radio stations.

Philippines now existing or which may hereafter be enacted.
SEC. 8. The grantee shall not lease, transfer, grant the usufruct of,
sell or assign this temporary permit, nor the rights or privileges acquired
thereunder to any person, firm, company, corporation or other commercial
or legal entity, nor merge with any other person, firm, company or
corporation organized for the same purpose, without the approval of the
Congress of the Philippines first had. Any corporation to which this
temporary permit may be sold, transferred, or assigned, shall be subject to
the corporation laws of the Philippines now existing or hereafter enacted,
and any person, firm, company, corporation or other commercial or legal
entity to which this temporary permit is sold, transferred, or assigned shall
be subject to all conditions, terms, restrictions and limitations of this
temporary permit as fully and completely and to the same extent as if the
temporary permit had been originally granted to the said person, firm,
company, corporation or other commercial or legal entity.
SEC. 9. The grantee is authorized to operate its commercial fixed

point-to-point, coastal, aeronautical, land based and land mobile radio
stations in the medium frequency, high frequency, and very high frequency
that may be assigned to it by the Secretary of Public Works and
Communications or by any licensing authority.

Philippines in time of war, insurrection, public peril, emergency, calamity
or disaster to cause the closing of the grantee’s radio stations or to authorize
727
the temporary use or possession thereof by any department of the

Government, upon payment of just compensation.

interest so requires, and shall not be interpreted as an exclusive grant of the
privilege herein provided for.
Finally passed by the Senate on May 23, 1957.
This Act, which originated in the House of Representatives, was

finally passed by the same on May 23, 1957.
Approved: June 22, 1957
728
AN ACT AMENDING SUBSECTION (C), SECTION FOURTEEN, OF

FORTY-SIX, AS AMENDED, BY REMOVING FROM THE
JURISDICTION, SUPERVISION AND CONTROL OF THE
PUBLIC SERVICE COMMISSION TUGBOATS AND LIGHTERS

SECTION 1. Subsection (c), section fourteen, of Commonwealth Act

Numbered One hundred and forty-six, as amended by Commonwealth Act
Numbered Four hundred and fifty-four, is further amended to read as
follows:
“(c) Vehicles drawn by animals and bancas moved by oar or sail, and
tugboats and lighters.”
Approved,
** Lapsed into law on June 23, 1957 without the signature of the President, in
accordance with Article VI, Section 27 (1) of the Constitution.
729
AN ACT TO REACTIVATE THE INTERNATIONAL AIR TRANSPORT

SERVICES OF THE PHILIPPINE AIR LINES, INC., AND TO
APPROPRIATE THE NECESSARY FUNDS THEREFOR

SECTION 1. Declaration of policy.-Because of the peculiar

geographical location of the Philippines, it is vital to her security and defense
and to the enhancement of her commerce that she should maintain her own
international air operations.
The need for a Philippine flag carrier in air commerce is underlined

by the current crisis in international relations; which, aside from Berlin
and the Middle East, recently found focus in the Far East because of
pronouncements made by Soviet Russia that she will expand her economic
program in this area. The Philippines particularly, finds herself constantly
threatened with the Communist menace due to her proximity with Red
China and with Formosa. Under this context, it is not difficult to visualize
the country’s instant involvement in case of a “shooting war” between the
world’s great powers. And that, in case of such an eventuality, the foreign
interests now controlling air travel to and from the Philippines will have to
suspend their operations; thus isolating, in this respect, the Philippines from
the other parts of the world.
Considerations of commerce also dictate that the Philippines maintain

her own air lanes in the international field. The demand for air travel from
this country to other points of the globe has increased enormously.
Reactivation of Philippine air transport services would meet this demand;
with resultant profit not to foreign-owned airlines but to the national flag
carrier. Furthermore, the build-up in modern long-range aircraft, controlled
by Filipino enterprises, would add to the stature and strengthen the position
of the Philippines in world commerce and navigation; to say nothing of the
training and experience which Filipino pilots, engineers and technicians
would obtain in the process.
730
Today, the conduct of air commerce between the Philippines and

other countries is exclusively and completely done with airships flying
foreign flags. All benefits, therefore, that accrue to this necessary and
tremendously important industry go to foreign interests. In addition,
Philippine dollar reserves are unnecessarily depleted by conversion of the
foreign carriers’ peso earnings into United States dollars, as authorized by
the Central Bank of the Philippines.
As a sovereign nation, the Republic of the Philippines, should have

her own air routes and traffic rights if she is to exploit the international air-
traffic potential. The attainment of this objective on a sound and economic
basis requires a national air carrier, whose company should be given all the
rights and privileges necessary to insure that it shall have fair and equal
opportunities to compete profitably with other airlines for the international
trade.
To successfully operate such an air transport system and to adequately

cope with the exigencies brought about by modern jet equipment, the
national air carrier will require adequate compensation for air-mail services
similar to that provided other international airlines by their respective
governments. This air-mail compensation assistance will be particularly
essential to the national flag carrier during its first five years of reactivated
operation. And because the need for such government assistance is greatest
at the start of operations (the first two years) gradually diminishing in
subsequent years; different rates of compensation at an inverse escalation
ratio would be most effective and beneficial. These rates of compensation
will be computed on the basis of the per-mile flown on the following Pacific
route:
North Central Pacific

Manila, Hongkong, Manila, Tokyo, Honolulu,
San Francisco/ or Los Angeles
With two jet aircraft, four weekly round trip
services can be offered.
731
Considering the international character of the operation, such rates

are established in United States’ dollars but will be payable in pesos, as
follows:
Calendar Year Rate in U.S. $ Total in pesos
1st year (1961) .................................... $0.75 P5,661,552
2nd year (1962) ..................................... 0.75 5,661,552
3rd year (1963) .................................... 0.625 4,717,960
4th year (1964) ...................................... 0.50 3,774,368
5th year (1965) ...................................... 0.50 3,774,368
Total ....... P23,589,800
(NOTES: The rates apply to the scheduled route miles operated. The
total amount per year, therefore, will vary from time to time depending on
a schedule basis, but may not exceed the total amounts appropriated herein
for each year.)
It is, therefore, declared to be the national policy, in the interest of

the nation, to reactivate international air transport services. It is likewise
declared to be the national policy to adequately compensate the national
flag carrier for the carriage of international airmail for the route above
indicated, and, for this purpose, an annual appropriation shall be made for
the Bureau of Posts, to be paid to the national flag carrier for a period of
five years. In order that this national policy may be properly and effectively
implemented, it is the sense of Congress that all the instrumentalities of the
Government, including the Central Bank of the Philippines, shall lend full
support to this undertaking by making available the loan funds and foreign
exchange required for the purchase of the latest type of turbine aircraft for
use in long-range international operations and for other purposes related to
such operations in order that the national flag carrier’s services, may, in
732
every way possible, be comparable, if not superior, to those of competing

airlines. To this end, it shall be mandatory on the Central Bank to earmark
the foreign exchange requirements applied for in pursuance of this national
aviation program.
SEC. 2. Experience and events in World War II, Berlin Airlift, Korea
and other contemporary disturbances in Europe, Middle East, and Southeast
Asia have shown that airline operations performed an important part in
any emergency. While airplanes could be acquired on short term basis,
pilots, engineers, and other technicians take much longer time to train.
Despite our deficiency of opportunity and equipment, the Filipino

pilots, navigators, engineers and other technicians have proven beyond doubt
that they are the equal of any group in the world, if given the opportunity.
Filipino airline captains, navigators, engineers, and other technicians have
already flown international flights across the Pacific to the United States,
Japan and Hawaii and to various countries in Europe and Asia. Many of
our pilots have been flying for fifteen to twenty years and over fifty Filipino
pilots have logged from ten thousand to fifteen thousand flying hours.
Presently we have over twenty airline captains who have over fifteen
thousand flying hours and who have flown 4-engine aircrafts of the propeller
and turbo-prop type, such as the DC-4, DC-6 and Viscount. The transition
from turbo-prop (Viscounts) to DC-8 (Jet) is a matter of course.
As in the case of the Viscount, all that was- necessary was for the
Filipino flight crews to be trained for two months in England and upon
completion of their two months training, our Filipino flight crews flew the
Viscounts from London to Manila and thereafter operated the Viscounts to
Hongkong and Tokyo. The same procedure was also done in the cases of
transition from the DC-3 (Twin-engine) to the DC-4 and DC-6 (4-engines).
Thus there is no doubt that the Filipino airline captains and other
technicians can operate safely and satisfactorily, in competition with any
other airline crews in the world.
In the past it has also been found embarrassing to see our flag airlines
operate in foreign countries with foreign crews, not to mention the loss of
733
employment opportunity of our flight crews and technicians and the build-
up of our air potential.
Therefore, it is also declared to be the national policy, in the interest

of Philippine security, air commerce and international prestige, to fully
Filipinize the operations of the Philippine Air Lines, Inc., whenever
practicable, and after the expiration of twenty-four months from the
resumption of its international flights no alien shall be employed as one of
its flight crew, maintenance or service personnel unless he be in its employ
on the date of the approval of this Act or whose service shall be necessary
to improve its air operations or technical know-how but in the latter case
the period of employment shall not exceed six months, in each instance.
SEC. 3. Appropriation. – There is appropriated the sum of five million

six hundred sixty-one thousand five hundred fifty-two pesos for the year
nineteen hundred sixty-one; the sum of five million six hundred sixty-one
thousand five hundred fifty-two pesos for the year nineteen hundred sixty-
two; the sum of four million seven hundred seventeen thousand nine hundred
sixty pesos for the year nineteen hundred sixty-three; the sum of three million
seven hundred seventy-four thousand three hundred sixty-eight pesos for
the year nineteen hundred sixty-four; and the sum of three million seven
hundred seventy-four thousand three hundred sixty-eight pesos for the year
nineteen hundred sixty-five, out of any funds in the National Treasury not
otherwise appropriated, to be paid to Philippine Air Lines, Inc., through
the Bureau of Posts, in twelve equal monthly installments each year, as
payment for the carriage of international airmail.
SEC. 4. Effective date. – This Act shall take effect upon its
approval.
734
AN ACT TO AMEND FURTHER ACT NUMBERED THIRTY-NINE

REVISED MOTOR VEHICLES LAW, AS AMENDED

SECTION 1. Paragraph (b) of section five of Act Numbered Thirty-

nine hundred ninety-two, otherwise known as the Revised Motor Vehicles
Law, as amended, is further amended to read as follows:
“(b) Any registration of motor vehicles not renewed on or before the

date fixed for different classifications as provided hereunder shall become
delinquent and invalid:
1. For hire motor vehicles-on or before the last working day of

February
2. Privately owned motor vehicles-on or before the last working

day of March
3. All other motor vehicles-on or before the last working day of

April except when the plates of such motor vehicles are returned to the
Motor Vehicles Office in Manila, or to the Office of the Motor Vehicle
Registrar in the provincial or city agencies of the Motor Vehicles Office
on or before the last working day of December of the year of issue.”
SEC. 2. Paragraphs (b) and (c) of section eight of the same Act, as
amended, are further amended to read as follows:
“(b) Private automobiles with pneumatic rubber tires, an amount

based on their respective shipping weight or factory weight as indicated in
the following schedule:
735
1000 kilos or less ............................................................ P75.00
1001 to 1500 kilos .......................................................... 100.00
1501 to 2000 kilos .......................................................... 135.00
2001 and above ............................................................. 180.00
The factory or shipping weight of a private automobile shall be

obtained worn the Red Book edited by the National Market Report, Inc., of
the United States of America: Provided, That in the case of automobiles
with altered, changed or rebuilt bodies, the weight as obtained by actual
weighing shall be considered the vehicle weight: Provided, further, That
the increased registration fees herein prescribed shall not apply to jeeps
and jeepneys for private use or for hire and the fees thereof shall be those
prescribed for them before the approval of this Act.
“The registered passenger capacity of passenger automobiles operated

for hire or for private use shall be determined as follows:
“1. For each adult passenger, not less than a horizontal rectangular
area, including seat and foot space, 40 cm. wide and 60 cm. long, except in
the front seat which shall allow 50 cm. wide for the operator.
“2. For each half-passenger, not less than a horizontal rectangular

area, including seat and foot space, 20 cm. wide by 60 cm. long, provided
that each continuous row of seats shall not be allowed more than one-half
passenger.
“(c) Private motor trucks, passenger buses and trailers with pneumatic
rubber tires, the sum of five pesos per hundred kilograms of maximum
allowable gross weight or fraction thereof.”
SEC. 3. Section seventeen of the same Act, as amended, is further

736
“SEC. 17. Number plate, preparation and issuance of.- (a) The Chief
of the Motor Vehicles Office shall cause number plates to be prepared and
issued to owners of motor vehicles and trailers registered under this Act,
charging a fee of one peso for each complete plate including the numerals
indicating the year of registry: Provided, however, That in Case no number
plates are available, the Chief of the Motor Vehicles Office or his deputies
may issue, without charge, a written permit temporarily authorizing the
operation of any motor vehicles with other means of identification: Provided,
further, That all motor vehicles exempted from payment of registration
fees, motor vehicles for hire, and privately owned motor vehicles, shall
bear plates so designed and painted with different colors to distinguish one
class from the other: Provided, still further, That the plates of motor vehicles
exempted from payment of registration fees shall be permanently assigned
to such motor vehicles during their entire lifetime while exempted from
payment of fees: And provided” finally, That the owner thereof shall return
such plate to the Chief of the Motor Vehicles Office within a period of
seven working days after such owner has lost his exemption privilege or
has transferred the vehicle to a non-exempt owner.
“(b) In case the design of the number plate is such that the numerals
indicating the year of registry are in a detachable tag, the Chief, Motor
Vehicles Office or his deputies may, in their discretion, issue the said tag
only, for subsequent re-registration, charging a fee of fifty centavos for
each tag issued.”
SEC.4. Section twenty-four of the same Act, as amended, is further

“SEC. 24. Driver’s license, fees, examination.- Every person who

desires personally to operate any motor vehicle shall make application to
the Chief, Motor Vehicles Office or his deputies for a license to drive motor
vehicles: Provided, however, That no person shall be issued a professional
chauffeur’s license who is suffering from highly contagious diseases, such
as, advanced tuberculosis, gonorrhea, syphilis, and the like.
737
“Each such application except in the case of enlisted men operating

Government owned vehicles shall be accompanied by a fee of five pesos,
and shall contain such information respecting the applicant and his ability
to operate motor vehicles, as may be required by the Chief, Motor Vehicles
Office.
“The Chief, Motor Vehicles Office or his deputies shall also ascertain
that the applicant’s sight and hearing are normal, and may, in their discretion,
require a certificate to that effect, signed by a reputable physician.
“An examination or demonstration to show any applicant’s ability to

operate motor vehicles may also be required in the discretion of the Chief,
Motor vehicles Office or his deputies.”
SEC. 5. Section thirty-one, article one, Chapter Three of the same

Act, as amended, is further amended to read as follows:
“SEC. 31. Renewal of license.-Any license not renewed every year

on or before the last working day of the month when the applicant was
born shall become delinquent and invalid.
“The fee for renewal of delinquent license shall be five pesos, in

addition to the basic fee as hereinabove prescribed.
“Every applicant for renewal of license to operate any motor vehicle

shall present to the Chief, Motor Vehicles Office, either in. person or by
mail or messenger the license issued to the applicant for the previous year,
together with the proper fee of five pesos and, in the case of professional
chauffeurs, three copies of a readily recognized photograph of the applicant
which photograph shall have been taken not exceeding three years prior to
the date of application for renewal.
“Lost license.-In case the license for the previous year has been lost
or cannot be produced, the applicant shall obtain a duplicate on accord
738
with section ten of this Act, on penalty of refusal, by the Chief, Motor
Vehicles Office or his deputies to renew the license: Provided, however,
That the Chief, -Motor Vehicles Office or his deputies may, in their
discretion, accept in lieu of the previous year’s license, the duly signed and
sworn statement of an operator to the effect that he has not operated any
motor vehicle in the Philippines during the year or years for which no
license was issued in his name.
“The Chief, Motor Vehicles Office and his deputies are hereby
authorized to administer the oath in connection with such affidavit.”
SEC. 6. This Act shall take effect with respect to car licenses and
drivers’ licenses for the calendar year nineteen hundred and sixty.
739
AN ACT GRANTING JORGE D. BAYONA A FRANCHISE TO

ESTABLISH, MAINTAIN AND OPERATE A FERRY SERVICE
FOR PASSENGERS AND FREIGHT BETWEEN THE
MUNICIPALITY OF LEGASPI AND THE ISLANDS OF BATAN
AND RAPU-RAPU IN THE PROVINCE OF ALBAY

in Congress Assembled:

provisions of the Constitution and the Public Service Act, there is granted
to Jorge D. Bayona, for a period of fifty years from the approval of this
Act, the right, privilege and authority to establish, maintain and operate a
ferry service for passengers and freight between the Municipality of Legaspi
and the islands of Batan and Rapu-Rapu in the Province of Albay, and to
establish a schedule of rates therefor, which shall at all times be subject to
regulation by the Public Service Commission: 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 Public Service Commission his
acceptance of the terms and conditions stipulated in this Act.
SEC. 2. Within ninety days after the acceptance of the franchise

the grantee shall put in operation an adequate and efficient ferry service
between the municipality and the islands mentioned in the preceding section.
The ferryboats operated by the grantee and the equipment thereof shall
meet the requirements prescribed by the Public Service Commission, and
the grantee shall, whenever the Public Service Commission shall determine
that public interest reasonably requires it, change or improve any of said
ferryboats or the equipment thereof at his expense.
SEC. 3. The grantee binds himself to provide in his ferryboats a

suitable and adequate place for the mails and shall carry them in the manner
740
stipulated between the Postmaster General 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 Service Commission shall fix
the manner of, and compensation for, carrying said mails, after hearing and
considering the arguments of the said Postmaster General and grantee:
such service.
SEC. 4. The books, records and accounts of the grantee shall always
be open to the inspection of the Provincial Treasurer of Albay 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 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 Auditor General, who shall keep the same on file.
property, buildings and personal property as other persons or corporations
are now or hereafter may be required by law to pay. The grantee shall
further be liable to pay all other taxes imposable under the National Internal
Revenue Code by reason of this franchise.
SEC. 6. The grantee, with the approval of the Congress of the

Philippines first had, may sell, lease, grant, convey, assign, give in usufruct,
or transfer this franchise and all property and rights acquired thereunder to
any individual, co-partnership, private, public or quasi-public association,
corporation or joint-stock company competent to operate the business hereby
authorized, but transfer of title to the franchise or any right of ownership or
interest acquired under such sale, lease, grant, conveyance, assignment,
gift in usufruct, or transfer shall not be effective, even after such approval
shall have been obtained, until there shall have been filed in the office of
the Public Service Commission an agreement in writing by which the
741
individual, co-partnership, private, public or quasi public association,

corporation or joint-stock company in whose favor such sale, lease, grant,
conveyance, assignment, gift in usufruct, or transfer is made, shall be firmly
bound 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. 7. The Public Service Commission shall have the power, after
a reasonable written notice to the grantee and a hearing of the interested
parties, to declare the forfeiture of this franchise and all rights inherent in
the same for failure on the 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 an act of God, force majeure, usurped right, uprising
or other cause beyond the grantee’s control. Against such declaration of
forfeiture by the Public Service Commission, the grantee may apply for the
remedies provided in sections thirty-four and thirty-six of the Public Service
Act. The remedy provided herein shall not be a bar to any other remedy
provided by existing laws for the forfeiture of this franchise.
SEC. 8. In the event of any competing individual, association of

persons, or corporation receiving from the Congress of the Philippines a
similar franchise in which there shall be any term or terms more favorable
than those herein granted or tending to place the herein grantee at any
disadvantage, then such term or terms shall ipso facto become a part of the
terms hereof and shall operate equally in favor of the grantee as in the case
of said competing individual, association of persons or corporation.
SEC. 9. Whenever in this franchise the term “grantee” is used, it

shall be held and understood to mean and represent Jorge D. Bayona, his
representatives, successors or assigns.
SEC. 10. This franchise shall be subject to amendment, alteration or

repeal by the Congress of the Philippines when the public interest so
requires, and shall not be interpreted to mean an exclusive grant of the
privileges herein provided.
742
Approved,
Enacted without executive approval, June 21, 1959.
743
AN ACT TO CHANGE THE NAME OF DAVAO (SASA) AIRPORT IN

DAVAO CITY TO FRANCISCO BANGOY AIRPORT IN HONOR
OF THE LATE DON FRANCISCO BANGOY

tin Congress assembled:
SECTION 1. In recognition of the philanthropic acts of the late Don

Francisco Bangoy, the name of Davao (Sasa) Airport in Davao City is hereby
changed to Francisco Bangoy Airport.
Approved,
Enacted without Executive approval, June 19, 1960.
744
AN ACT CONVERTING THE PRESENT PHILIPPINE NAUTICAL

SCHOOL INTO THE PHILIPPINE MERCHANT MARINE
ACADEMY, CONFERRING THE DEGREES OF BACHELOR OF
SCIENCE IN MARINE TRANSPORTATION, MAJOR IN
NAVIGATION AND SEAMANSHIP, AND BACHELOR OF
SCIENCE IN MARINE TRANSPORTATION, MAJOR IN STEAM
ENGINE AND ELECTRICAL ENGINEERING, PROVIDING FOR
A MERCHANT MARINE ACADEMY BOARD, DEFINING THE
BOARD’S RESPONSIBILITIES AND DUTIES, AND FOR OTHER
PURPOSES

SECTION 1. The Philippine Nautical School, located in Pasay City,

Philippines, is hereby converted into the Philippine Merchant Marine
Academy, which will offer a nautical curriculum leading to the degrees of
Bachelor of Science in Marine Transportation, major in navigation and
seamanship, and Bachelor of Science in Marine Transportation, major in
steam engine and electrical engineering.
SEC. 2. The main purpose of the Philippine Merchant Marine

Academy is to produce efficient and well trained merchant marine officers
who can favorably compare with marine officers of progressive maritime
countries sufficient to carry the expanding international trade in times of
peace and capable of serving as a naval and military auxiliary in times of
war and national emergency. The secondary purpose is to produce young
men well trained in other fields of the merchant marine service, like marine
surveyors, port supervisors, shipping office personnel, shipping management
and others.
SEC. 3. The head of this institution shall be known as the

Superintendent of the Philippine Merchant Marine Academy. He must at
least be a master mariner and shall be appointed by the President of the
745
Philippines upon the recommendation of the Philippine Merchant Marine

Academy Board. The powers and duties of the Superintendent in addition
to those specifically provided for in this Act, shall be those usually pertaining
to the office of the president of a college.
SEC. 4. The government of said Academy is hereby vested in the

Philippine Merchant Marine Academy Board which shall be composed of
the following: the Secretary of Commerce and Industry who shall be ex
officio chairman of the Board, with a representative of the Philippine Navy,
the Chairman of the Board of Marine Inquiry, the Chairman of the Board
of Marine Examination for Deck Officers, the Chairman of the Board of
Marine Examination for Marine Engineers, the President of the United
Harbor Pilots Association of the Philippines, the President of the Filipino
Shipowners Association, the President of the Philippine Marine Officers’
Guild. and the Superintendent of the Academy as members.
Members of the Philippine Merchant Marine Academy Board shall

serve without compensation, other than actual and necessary expenses
incurred either in attendance upon meetings of the Board or upon official
business authorized by a resolution of the Board.
SEC. 5. The Philippine Merchant Marine Academy Board shall have

the following powers and duties in addition to its general powers of
administration:
(a) To confer the degree of Bachelor of Science in Marine

Transportation, major in navigation and seamanship, and Bachelor of
Science in Marine Transportation, major in steam engine and electrical
engineering to successful candidates for graduation.
(b) To appoint, upon the recommendation of the Superintendent of

the Academy, instructors, professors and other employees of the Academy;
to fix their compensation, hours of service and other duties as it may deem
proper, to grant to them leaves of absence under existing laws and regulations
and to remove them from office for cause after an investigation and hearing
and after, in the opinion of the Board, there is just cause for his removal.
746
(c) To approve the curricula and rules of discipline drawn up by the

Academy Council as hereunder provided.
(d) To provide fellowships for faculty members and scholarships to

students showing special evidence of merits.
(e) To provide rules for its government, and to enact for the
government of the Academy such general ordinances and regulations, not
contrary to law, as are consistent with the purpose of the Academy as defined
in Section two of this Act.
(f) To receive in trust legacies, gifts, and donations of real and personal
property of all kinds and to administer the same for the benefit of the
Academy or for aid to any cadets, in accordance with the directions and
instructions of the donor, and, in default thereof, in such manner as the
Academy Board may, in its discretion, determine.
(g) To receive and appropriate to the ends specified by law such

sums as may be provided by law for the support of the college.,
SEC. 6. A quorum of the Academy Board shall consist of a majority

of all the members. All processes against the Academy Board shall be served
on the Superintendent of the Academy or secretary thereof.
SEC. 7. On or before the fifteenth of June of each year, the Academy

Board shall file with the President of the Philippines a detailed report,
setting forth the progress, condition, and needs of the Academy.
SEC. 8. There shall be an Academy Council consisting of the

Superintendent and all instructors and professors of the Academy. The
Council shall have the power to prescribe the curricula and rules of
discipline, subject to the approval of the Philippine Merchant Marine
Academy Board. It shall fix the requirements for admission to the Academy
as well as for graduation and the receiving of a degree. The Council alone
shall have the power to recommend students or others to be recipients of
degrees. Through the Superintendent it shall have disciplinary power over
747
the students within the limits prescribed by the rules of discipline approved
by the Academy Board.
SEC. 9. The body of instructors and professors of the Academy shall

constitute the faculty of the Academy, with the Superintendent of the
Academy as the presiding officer. In the appointment of professors or
instructors of the Academy, no religious test shall be applied, nor shall the
religious opinions or affiliations of the faculty of the Academy be made a
matter of examination or inquiry: Provided, however. That no instructor or
professor in the Academy shall inculcate sectarian tenets in any of the
teachings, nor attempt either directly or indirectly, under penalty of dismissal
by the Philippine Merchant Marine Academy Board, to influence students
or attendants at the Academy for or against any particular church or religious
sect.
SEC. 10. Professors and other regular instructors in the Academy

shall be exempt as such from any civil service examinations or regulations
as a requisite to appointment.
SEC. 11. There shall be a Secretary of the Academy appointed by the

Philippine Merchant Marine Academy Board. He shall be the Secretary of
the Board as well as the Academy, and shall keep such records of the
Academy as may be designated by the Board.
SEC. 12. Graduates of the Philippine Merchant Marine Academy

who are holders of a Bachelor of Science degree in Marine Transportation,
major in navigation and seamanship, shall be exempted from taking the
third mate examination, and those who are holders of a Bachelor of Science
degree in Marine Transportation, major in steam engine and electrical
engineering, shall be exempted from taking the fourth steam engineers’
examination.
SEC. 13. In order not to interrupt the smooth functioning of the present
four-year nautical curriculum of the Philippine Nautical School, the present
Superintendent and faculty, as well as the other personnel, shall be absorbed
by the new Academy. Salaries of these personnel shall be adjusted at the
748
discretion of the Academy Board within the limits available for

appropriation.
SEC. 14. For carrying out the purposes and provisions of this Act,
the sum of eight hundred thousand pesos is hereby appropriated from funds
in the National Treasury not otherwise appropriated for the fiscal year
nineteen hundred sixty-three to nineteen hundred sixty-four. An additional
five hundred thousand pesos is hereby appropriated for the purpose of
acquiring a modern steam powered training ship to supplement classroom
instructions. Thereafter the amount of three hundred thousand pesos shall
be included in the yearly General Appropriation Acts for the maintenance
and operation of the Philippine Merchant Marine Academy. The sum herein
appropriated shall not be released except upon certification of the Secretary
of Finance and the Auditor General as to the availability of fund in excess
of those necessary for the operation of the Government as provided in the
annual General Appropriation Act for the fiscal year nineteen hundred sixty-
three to nineteen hundred sixty-four.
SEC. 15. Any provisions of existing laws inconsistent with this Act
749
AN ACT CREATING A BRANCH OFFICE OF THE MOTOR VEHICLES

OFFICE OF THE PROVINCE OF ILOCOS SUR, WITH
PERMANENT STATION AT THE MUNICIPALITY OF CANDON,
THEREFOR

SECTION 1. There is hereby created a branch office of the Motor

Vehicles Office of the Province of Ilocos Sur, with permanent station at the
Municipality of Candon, which shall be under the immediate control and
supervision of a deputy motor vehicle registrar to be appointed by the
Secretary of Public Works and Communications. The said deputy motor
vehicle registrar shall receive the same salary as that provided for by the
Wage and Position Classification Office for Motor Vehicle Registrar I and
shall be assisted by such other personnel, likewise appointed by the Secretary
of Public Works and Communications as may be necessary to carry out the
duties appurtenant to the said branch office.
SEC. 2. The sum of fifty thousand pesos, or so much thereof as may

be necessary is hereby authorized to be appropriated, out of any funds in
the National Treasury not otherwise appropriated, to carry out the purposes
of this Act. Thereafter, the necessary sum for the purpose shall be included
in the annual General Appropriation Acts.
750
AN ACT GRANTING DEMETRIO UYVICO A FRANCHISE TO

FOR PASSENGERS AND FREIGHT BETWEEN THE CITY OF
TACLOBAN AND THE MUNICIPALITIES OF CABUCGAYAN,
CAIBIRAN, CULABA, KAWAYAN AND MARIPIPI, ALL IN THE
ISLAND OF BILIRAN, SUBPROVINCE OF BILIRAN PROVINCE
OF LEYTE


to Demetrio Uyvico, for a period of twenty-five years from the approval of
this Act the right, privilege and authority to establish, maintain and operate
a ferry service for passengers and freight between the City of Tacloban and
the municipalities of Cabucgayan, Caibiran, Culaba, Kawayan and Maripipi,
all in the Island of Biliran, Subprovince of Biliran, Province of Leyte, and
to establish a schedule of rates therefor, which shall at all times be subject
to regulation by the Public Service Commission: 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 Public Service Commission
his acceptance of the terms and conditions stipulated in this Act.

between the city and the municipalities mentioned in the preceding section.
751

ammunition or funds for the public good, the grantee shall receive a
reasonable compensation for such service.
be open to the inspection of the Provincial Treasurer of Leyte or his
authorized representatives, and it shall be the duty of the grantee to submit
to the Provincial Treasurer quarterly reports in duplicate showing the gross
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
property, buildings, and personal property as other persons or corporation
are now or hereafter maybe required by law to pay. The grantee shall further
be liable to pay all other taxes imposable under the National Internal

or transfer this franchise and all property and rights acquired there under to
shall have been obtained until there shall have been filed in Public Service
Commission an agreement in writing by which the individual, copartnership,
private, public or quasi-public association, corporation or joint-stock
752
company in whose favor such sale, lease, grant, conveyance, assignment,

gift in usufruct, or transfer is made, shall be firmly bound 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.
forfeiture by the Public Service Commission the grantee may apply for the
remedies provided in Sections thirty-four and thirty-six of the Public Service
SEC. 8. In the event of· any competing individual, association of

persons, or corporations receiving from the Congress of the Philippines a
of said competing individual, association of persons or corporations.

shall be held and understood to mean and represent Demetrio Uyvico, his

753
AN ACT GRANTING THE LAGUNA TAYABAS BUS COMPANY AND

BATANGAS TRANSPORTATION COMPANY A FRANCHISE TO
ESTABLISH, MAINTAIN AND OPERATE PRIVATE FIXED
POINT-TO-POINT, PRIVATE COASTAL, AND LANDBASED
AND LAND MOBILE RADIO STATIONS FOR THE
TRANSMISSION OF WIRELESS MESSAGES TO AND FROM
SAID STATIONS

SECTION 1. The Laguna Tayabas Bus Company and Batangas

Transportation Company are hereby granted a franchise to establish,
maintain and operate private fixed point-to-point, private coastal, and land-
based and land mobile radio stations in the cities of Manila, Pasay, San
Pablo, Lipa, Lucena, Tagaytay and Naga, in the province of Laguna, Quezon,
Batangas, Mindoro Oriental and Mindoro Occidental, Camarines Norte
and Camarines Sur, and in such places within the Philippines where they
operate their business and/or the interest of their trade and business activities
may justify, subject to the approval of the Secretary of Public Works and
Communications, for the transmission and reception of wireless messages
on radiotelegraphy or radiotelephony to and from said stations.
SEC. 2. This franchise shall continue to be in force for a period of

twenty-five years and is granted upon the express condition that the same
shall be void unless the construction or installation of at least one station
be begun within two years from the date of approval of this Act and be
completed within four years from said date. The President of the Philippines
shall have the power and authority to permit the location of said private
fixed point-to-point, private coastal, and land-based and land mobile radio
stations on any land of the public domain upon such terms as he may
prescribe.
754
SEC. 3. The grantees shall not engage in domestic business of

telecommunications in the Philippines without further special assent of the
Congress of the Philippines, it being understood that the purpose of this
franchise is to secure to the grantees the right to establish, maintain and
operate private fixed point-to-point, private coastal, and land-based and
land mobile radio stations at the places hereinabove stated for no other
purpose than to promote, protect and subserve the trade and business
interests of the grantees.
SEC. 4. No fees shall be charged by the grantees as the radio stations

regarding the grantees business only.
SEC.5. The grantees shall so construct and operate their stations as

not to interfere with the operation of other radio stations maintained and
SEC.6. The grantees are authorized to operate their radio stations on

the frequency and/or frequencies that may be assigned to them by the
Secretary of Public Works and Communications.

Philippines in time of war, insurrection, public peril, calamity, or disaster
to cause the closing of the grantees’ radio stations or to authorize the
temporary use or possession thereof by any department of the Government,
upon payment of just compensation.

requires, and shall not be interpreted as an exclusive grant of the privileges
herein provided for.
SEC. 9. Whenever in this Act the term “grantees” is used, it shall be

held and understood to mean and represent the Laguna Tayabas Bus
Company and Batangas Transportation Company, their representatives,
successors or assigns.
755
756
AN ACT CREATING A BRANCH OFFICE OF THE MOTOR VEHICLES

OFFICE IN MOUNTAIN PROVINCE, WITH PERMANENT
STATION AT THE MUNICIPALITY OF TABUK, AND
AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR

SECTION 1. There is hereby created a branch office of the Motor

Vehicles Office of Mountain Province with permanent station at the
Municipality of Tabuk, which shall be under the immediate control and
supervision of a deputy motor vehicles registrar to be appointed by the
Secretary of Public Works and Communications. The said deputy motor
vehicles registrar shall receive the same salary as that provided for by the
Wage and Position Classification Office for motor vehicles registrar I and
shall be assisted by such other personnel, likewise appointed by the Secretary
of Public Works and Communications, as may be necessary to carry out
the duties appurtenant to the said branch office.

be necessary, is hereby authorized to be appropriated out of any funds in
of this Act. Thereafter, the necessary sum for the purpose shall be included
in the annual General Appropriations Act.
757
AN ACT GRANTING ROBERT O. PHILLIPS A FRANCHISE TO

ESTABLISH, MAINTAIN AND OPERATE A HYDROFOIL FERRY
SERVICE WITHIN MANILA BAY INCLUDING WATERS ALONG
CORREGIDOR, BATAAN, CAVITE, ZAMBALES AND OTHER
NEIGHBORING BAY AREAS

SECTION 1. Subject to the conditions established in this Act and to

the provisions of the Constitution, there is hereby granted to Robert O.
Phillips, for a period of twenty-five years from the approval of this Act, the
right, privilege and authority to establish, maintain and operate a hydrofoil
ferry service for passengers within Manila Bay including the waterways
along Corregidor, Bataan, Bulacan, Batangas, Pampanga, Mindoro, Lubang
Island, Cavite, Zambales, Iloilo, Bacolod, Ozamiz, Iligan, Cagayan,
Pagadian, Cotabato, Zamboanga and Basilan.

Philippines in time of war, rebellion, public peril, calamity or disaster to
authorize the temporary use and operation of the grantee’s water
transportation facilities by any department of the government upon payment
of just compensation.
SEC. 3. In the event of any competing individuals, associations or

corporations receiving from the Congress of the Philippines a similar
franchise in which there shall be any term or terms more favorable than
those herein granted or tending to place the herein grantee at any
of said competing individuals, associations, or corporations.

shall be held and understood to mean and represent Robert O. Phillips, his
758

requires.
SEC. 6. The rates to be charged by the grantee shall be subject to the

approval of the Public Service commission.
759
AN ACT TO COMPILE THE LAWS RELATIVE TO LAND

TRANSPORTATION AND TRAFFIC RULES, TO CREATE A
LAND TRANSPORTATION COMMISSION AND FOR OTHER
PURPOSES

CHAPTER I.-PRELIMINARY PROVISIONS ARTICLE
ARTICLE I. – Title and Scope of Act
SECTION 1. Title of Act.-This Act shall be known as the “Land

Transportation and Traffic Code.”
SEC.2. Scope of Act. – The provisions of this Act shall control, as far
as they apply, the registration and operation of motor vehicles and the
licensing of owners, dealers, conductors, drivers, and similar matters.
ARTICLE II. – Definitions
SEC. 3. Words and phrases defined. – As used in this Act:
(a) “Motor Vehicle” shall mean any vehicle propelled by any power
other than muscular power using the public highways, but excepting road
rollers, trolley cars, street-sweepers, sprinklers, lawn mowers, bulldozers,
graders, fork-lifts, amphibian trucks, and cranes if not used on public
highways, vehicles which run only on rails or tracks, and tractors, trailers
and traction engines of all kinds used exclusively for agricultural purposes.
Trailers having any number of wheels, when propelled or intended

to be propelled by attachment to a motor vehicle, shall be classified as
separate motor vehicle with no power rating.
760
(b) “Passenger automobiles” shall mean all pneumatic tire vehicles

of types similar to those usually known under the following terms: touring
car, command car, speedster, sportscar, roadster, jeep, cycle car (except
motor wheel and similar small outfits which are classified with motorcycles),
cope, landaulet, closed car, limousine, cabriolet, and sedan.
Motor vehicles with changed or rebuilt bodies, such as jeepneys,

jitneys, or station wagons, using a chassis of the usual pneumatic-tire
passenger automobile type, shall also be classified as passenger automobile,
if their net allowable carrying capacity, as determined by the Commissioner
of Land Transportation, does not exceed nine passengers and if they are
not used primarily for carrying freight or merchandise.
The distinction between “passenger truck” and “passenger

automobile” shall be that of common usage: Provided, That a motor vehicle
registered for more than nine passengers shall be classified as “truck”: And
provided, further, That a “truck with seating compartments at the back not
used for hire shall be registered under special “S” classifications. In case
of dispute, the Commissioner of Land Transportation shall determine the
classification to which any special type of motor vehicle belongs.
(c) “Articulated vehicle” shall mean any motor vehicle with a trailer
having no front axle and so attached that part of the trailer rests upon the
motor vehicle and a substantial part of the weight of the trailer and of its
load is borne by the motor vehicle. Such a trailer shall be called as “semi-
trailer.”
(d) “Driver” shall mean every and any licensed operator of a motor
vehicle.
(e) “Professional driver” shall mean every and any driver hired or
paid for driving or operating a motor vehicle, whether for private use or for
hire to the public.
Any person driving his own motor vehicle for hire is a professional
driver.
761
(f) “Owner” shall mean the actual legal owner of a motor vehicle, in
whose name such vehicle is duly registered with the Land Transportation
Commission.
The “owner” of a government-owned motor vehicle is the head of

the office or the chief of the Bureau to which the said motor vehicle belongs.
(g) “Dealer” shall mean every person, association, partnership, or

corporation making, manufacturing, constructing, assembling, remodeling,
rebuilding, or setting up motor vehicles; and every such entity acting as
agent for the sale of one or more makes, styles, or kinds of motor vehicles,
dealing in motor vehicles, keeping the same in stock or selling same or
handling with a view to trading same.
(h) “Garage” shall mean any building in which two or more motor
vehicles, either with or without drivers, are kept ready for hire to the public,
hut shall not include street stands, public service stations, or other public
places designated by proper authority as parking spaces for motor vehicles
for hire while awaiting or soliciting business.
(i) “Gross weight” shall mean the measured weight of a motor vehicle
plus the maximum allowable carrying capacity in merchandise, freight and/
or passengers, as determined by the Commissioner of Land Transportation.
(j) “Highways” shall mean every public thoroughfare, public

boulevard, driveway, avenue, park, alley and callejon, but shall not include
roadway upon grounds owned by private persons, colleges, universities, or
other similar institutions.
(k) “The Commissioner of Land Transportation or his deputies” shall

mean the actual or acting chief of the Land Transportation Commission or
such representatives, deputies, or assistants as he may, with the approval of
the Secretary of Public Works and Communications, appoint or designate
in writing for the purpose contemplated by this Act.
(l) “Parking or parked”, for the purposes of this Act, shall mean that
a motor vehicle is “parked” or “parking” if it has been brought to a stop on
762
the shoulder or proper edge of a highway, and remains inactive in that

place or close thereto for an appreciable period of time. A motor vehicle
which properly stops merely to discharge a passenger or to take in a waiting
passenger, or to load or unload a small quantity of freight with reasonable
dispatch shall not be considered as “parked”, if the motor vehicle again
moves away without delay.
(m) “Tourist” shall mean a foreigner who travels from place to place
for pleasure or culture.
ARTICLE III – Administration of Act
SEC. 4. Creation of the Commission. – (a) There is created under the

Department of Public Works and Communications an office which shall be
designated and known as the Land Transportation Commission, composed
of one Commissioner and one Deputy Commissioner, who shall be vested
with the powers and duties hereafter specified. Whenever the word
“Commission” is used in this Act, it shall be deemed to mean the Land
Transportation Commission, and whenever the word “Commissioner” is
used in this Act, it shall be taken to mean the Commissioner or Deputy
Commissioner.
The Commissioner and the Deputy Commissioner shall be natural-

born citizens and residents of the Philippines, and they shall be appointed
by the President of the Philippines, with the consent of the Commission on
Appointments of the Congress of the Philippines: Provided, however, That
the present Administrator, Assistant Administrator and the personnel of the
Motor Vehicles Office shall continue in office without the necessity of
reappointment.
(b) The Commissioner and Deputy Commissioner shall hold office

until removed in accordance with the provisions of the Revised
Administrative Code.
(c) The Commissioner shall receive an annual compensation of twelve

thousand pesos and the Deputy Commissioner, an annual compensation of
763
ten thousand four hundred pesos. The Commissioner shall be assisted by

one head executive assistant (MV regulation adviser or chief), one
administrative officer, one registration regulation chief, one inspection,
examination and licensing regulation chief, one law and traffic enforcement
regulation chief, one provincial regulation chief, one utility and property
regulation chief, one accounting officer, one internal chief auditor, and one
personnel officer, who shall receive an annual compensation of nine
thousand pesos each; eight land transportation regional directors who shall
receive an annual compensation of eight thousand four hundred pesos each
and eight land transportation assistant regional directors, who shall receive
an annual compensation of seven thousand pesos each and ten assistant
regulation chiefs, who shall receive an annual compensation of seven
thousand pesos each.
(d) The Commission shall have its offices in Quezon City where the
present Motor Vehicles Office is located, and shall establish a regional
branch office each in Tuguegarao (Cagayan), Baguio City, Pasig (Rizal),
Lipa City, San Fernando (La Union), Naga City, Cebu City, Iloilo City,
Cagayan de Oro City, and Davao City, to be headed by a regional director
who will have immediate administration, supervision and control over all
activities and administration of the Commission in the respective regions.
The Commissioner shall be responsible for the administration of this

Act and shall have, in connection therewith, the following powers and duties,
in addition to those mentioned elsewhere in this Act:
(1) With the approval of the Secretary of Public Works and

Communications, to issue rules and regulations not in conflict with the
provisions of this Act, prescribing the procedure for the examination,
licensing and bonding of drivers; the registration and re-registration of motor
vehicles, transfer of ownership, change of status; the replacement of lost
certificates, licenses, badges, permits or number plates; and to prescribe
the minimum standards and specifications including allowable gross weight,
allowable length, width and height of motor vehicles, distribution of loads,
allowable loads on tires, change of tire sizes, body design or carrying
764
capacity subsequent to registration and all other special cases which may
arise for which no specific provision is otherwise made in this Act.
(2) To compile and arrange all applications, certificates, permits,

licenses, and to enter, note and record thereon, transfers, notifications,
suspensions, revocations, or judgments of conviction rendered by competent
courts concerning violations of this Act, with the end in view of preserving
and making easily available such documents and records to public officers
and private persons properly and legitimately interested therein.
(3) To give public notice of the certificates, permits, licenses and

badges issued, suspended or revoked and/or motor vehicles transferred and/
or drivers bonded under the provisions of this Act.
(4) The Commissioner of Land Transportation, with the approval of

the Secretary of Public Works and Communications, may designate as his
deputy and agent any employee of the Land Transportation Commission,
or such other government employees as he may deem expedient to assist in
the carrying out the provisions of this Act.
(5) The Commissioner of Land Transportation and his deputies are

hereby authorized to make arrests for violations of the provisions of this
Act in so far as motor vehicles are concerned; to issue subpoena and
subpoena duces tecum to compel the appearance of motor vehicle operators
and drivers and/or other persons or conductors; and to use all reasonable
means within their powers to secure enforcement of the provisions of this
Act.
(6) The Commissioner of Land Transportation or his deputies may at

any time examine and inspect any motor vehicle to determine whether such
motor vehicle is registered, or is unsightly, unsafe, overloaded, improperly
marked or equipped, or otherwise unfit to be operated because of possible
excessive damage to highways, bridges and/or culverts.
(7) The Philippine Constabulary and the City and municipal police
forces are hereby given the authority and the primary responsibility and
duty to prevent violations of this Act, and to carry out the police provisions
765
hereof within their respective jurisdiction: Provided, That all apprehensions

made shall be submitted for final disposition to the Commissioner and his
deputies within twenty-four hours from the date of apprehension.
(8) All cases involving violations of this Act shall be endorsed immediately
by the apprehending officer to the Land Transportation Commission. Where
such violations necessitate immediate action, the same shall be endorsed
to the traffic court, city or municipal court for summary investigation,
hearing and disposition, but in all such cases, appropriate notices of the
apprehensions and the dispositions thereof shall be given to the
Commissioner of Land Transportation by the law-enforcement agency and
the court concerned.
Notation of all such dispositions shall be entered in the records, and

a copy shall be mailed to the owner and to the driver concerned.
CHAPTER II. – REGISTRATION OF MOTOR VEHICLES
ARTICLE I. – Duty to Register, Reports, Applications,

Classifications
SEC. 5. All motor vehicles and other vehicles must be registered. –

(a) No motor vehicle shall be used or operated on or upon any public
highway of the Philippines unless the same is properly registered for the
current year in accordance with the provisions of this Act.
(b) Any registration of motor vehicles not renewed on or before the

date fixed for different classifications, as provided hereunder shall become
delinquent and invalid:
1. For hire motor vehicles – on or before the last working day of

February.
2. Privately-owned motor vehicles – from March one to the last

working day of May.
3. All other motor vehicles – from June one to the last working day
766
of June; except when the plates of such motor vehicles are returned to the
Commission in Quezon City or to the Office of the Motor Vehicles Registrar
in the provincial or city agency of the Commission on or before the last
working day of December of the year of issue.
(c) Dealers’ reports – The Commissioner of Land Transportation shall

require dealers to furnish him with such information and reports concerning
the sale, importation, manufacture, number of stocks, transfer or other
transactions affecting motor vehicles as may be necessary for the effective
enforcement of the provisions of this Act.
(d) Change of motor number prohibited. – No repair or change in the

motor vehicle involving the exchange, elimination, effacing, or replacing
of the original or registered serial or motor number as stamped or imprinted,
shall be allowed, and any motor vehicle with a trace of having its motor
number altered or tampered with shall be refused registration or re-
registration, unless such is satisfactorily explained and approved by the
Commissioner.
(e) Encumbrances of motor vehicles. – Mortgages, attachments, and

other encumbrances of motor vehicles, in order to be valid, must be recorded
in the Land Transportation Commission and must be properly recorded on
the face of all outstanding copies of the certificates of registration of the
vehicle concerned.
Cancellation or foreclosure of such mortgages, attachments, and other

encumbrances shall likewise be recorded, and in the absence of such
cancellation, no certificate of registration shall be issued without the
corresponding notation of mortgage, attachment and/or other encumbrances.
Records of encumbrances of motor vehicles shall be kept by the Land

Transportation Commission in chronological sequence and shall contain,
among other things, the time, date and number of the entry in a “Book of
Motor Vehicles” referring to the creation, cancellation or foreclosure of
the aforesaid mortgages, attachments or to other encumbrances.
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The Land Transportation Commission shall collect a fee of five pesos

for every annotation of a mortgage, attachment and/or other encumbrances,
or cancellation thereof.
SEC. 6. Application and payments for registration. – Applications

and payments for registration shall be made either personally or by registered
mail, and the date of the cancellation of the postage stamps of envelopes
containing money order or check shall be taken as the date of the application
and/or payment for registration: Provided, That the application is properly
prepared and the payment for registration is sufficient as required by law.
SEC. 7. Registration Classification. – Every motor vehicle shall be

registered under one of the following described classifications:
(a) Private passenger automobiles; (b) private trucks; and (c) private
motorcycles, scooters or motor wheel attachments. Motor vehicles
registered under these classifications shall not be used for hire under any
circumstances and shall not be used to solicit, accept, or be used to transport
passengers or freight for pay.
Laborers necessary to handle freight on board private trucks may

ride on such trucks: Provided, That seats shall not be installed in the rear
compartment thereof and that only such number of laborers, not exceeding
ten, as may be needed to handle the kind of freight carried, shall ride on the
truck: Provided, further, That the combined weight of cargo and passengers
does not exceed the registered net capacity of the truck.
For the purpose of this section, a vehicle habitually used to carry

freight not belonging to the registered owner thereof, or passengers not
related by consanguinity or affinity within the fourth civil degree to such
owner, shall be conclusively presumed to be “for hire.”
No person shall be allowed to register as private truck any truck not

actually and reasonably necessary to carry out his duly licensed business
or legitimate occupation or industry regularly paying taxes.
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(d) Public utility automobiles; (e) public utility trucks; (f) taxis and
auto-calesas; (g) garage automobiles; (h) garage trucks; (i) hire trucks; and
(j) trucks owned by contractors and customs brokers and customs agents.
Application for registration under these classifications shall be accompanied
by a certificate of public convenience or a special permit issued by the
Public Service Commission, and motor vehicles registered under these
classifications shall be subject to the Public Service Law, rules and
regulations, as well as the provisions of this Act.
(k) Undertakers.
(l) Dealers-Registrations under this classification are intended to cover

generally and successively all the motor vehicles imported or handled by
dealers for sale. Motor vehicles registered under the dealer’s classification
shall, under no circumstances, be employed to carry passengers or freight
in the dealer’s business, or for hire. Such vehicles shall be operated under
this classification only for the purpose of transporting the vehicle itself
from the pier or factory to the warehouse or sales room or for delivery to a
prospective purchaser or for test or demonstration.
(m) Government automobiles; (n) government trucks; and (o)

government motorcycles. Motor vehicles owned by the Government of the
Philippines or any of its political subdivisions shall be registered under
these classifications. Motor vehicles owned by government corporations,
by government employees or by foreign governments shall not be registered
under this classification.
(p) Tourists bringing their own motor vehicles to the Philippines may,
without registering such motor vehicles, use the same during but not after
ninety days of their sojourn: Provided, That the motor vehicle displays the
number plates for the current year of some other country or state, and said
number plates as well as the name and address (permanent and temporary)
of the owner thereof are registered in the Land Transportation Commission
prior to the operation of the motor vehicle.
769
If such tourists remain in the Philippines longer than ninety days, the
motor vehicle shall not be operated unless registered in accordance with
this Act and the corresponding registration fees paid.
(q) Special. The Commissioner of Land Transportation may, in his

discretion, allow the registration under this classification of motor vehicles
which do not conform to the foregoing described regular classifications.
ARTICLE II. – Registration Fees
SEC. 8. Schedule of registration fees. – Except as otherwise

specifically provided in this Act, each application for renewal of registration
of motor vehicles shall be accompanied by an annual registration fee in
accordance with the following schedule:
(a) Private automobiles with pneumatic rubber tires, an amount based

on their respective shipping weight or factory weight as indicated in the
following schedule:
1,000 kilos or less ...................................................... P 75.00
1,001 to 1,500 kilos .................................................... 100.00
1,501 to 2,000kilos ..................................................... 135.00
2,001 kilos and above ................................................. 180.00
The factory or shipping weight of a private automobile shall be

obtained from the Red Book edited by the National Market Report, Inc., of
the United States of America: Provided, further, That in the case of
automobiles with altered, changed or rebuilt bodies, the weight as obtained
by actual weighing shall be considered the vehicles weight: Provided,
furthermore, That the increased registration fees herein prescribed shall
not apply to jeeps and jeepneys for private use or for hire and the fees
hereof shall be those prescribed for them before the approval of this Act.
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The registered passenger capacity of passenger automobiles operated

for hire or for private use shall be determined as follows:
1. For each adult passenger, a horizontal rectangular area, including

seat and feet space, not less than thirty five centimeters wide and sixty
centimeters long, except in the front seat, which shall allow an area fifty
centimetres wide for the operator.
2. For each half passenger, a horizontal rectangular area, including

seat and feet spaces, not less than seventeen and a half centimeters wide by
sixty centimetres long, provided that each continuous row of seats shall
not be allowed to have more than one-half passenger.
(b) Private motor trucks, passenger buses and trailers with pneumatic
rubber tires, the sum of five pesos for every hundred kilograms of maximum
allowable gross weight or fraction thereof.
(c) Private motor trucks, passenger buses and trailers with solid rubber
tires or with part-solid and part-pneumatic rubber tires, the sum of seven
pesos for every hundred kilograms of maximum allowable gross weight or
fraction thereof.
(d) Private motorcycles and scooters of two or three wheels and

bicycles with motor attachments, the sum of thirty pesos.
(e) The fee for registration of motor vehicles for hire shall be sixty
percent more than the fee prescribed for private motor vehicles of the same
category.
(f) The fee for registration of diesel-oil-consuming vehicles shall be

fifty percent more than that of vehicles using motor fuel other than diesel
oil. The fee for registration of motor vehicles for hire shall be sixty percent
more than the fees prescribed for private motor vehicles.
(g) No regular registration fees shall be charged for the general

registration of motor vehicles contemplated under the dealer’s classification:
Provided, That the Commissioner of Land Transportation shall provide
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appropriate dealer’s number plates corresponding to the classification of

vehicles herein below described, and registration fee for every set of such
dealer’s number plates shall be in accordance with the following schedule
of rates:
Two hundred pesos for each truck or trailer;
One hundred pesos for each passenger automobile; and
Twenty pesos for each motorcycle and the like.
(h) Registration under the “Government Motor Vehicle” classification

shall be free of charge, upon request of the chief of bureau or office
concerned.
(i) Motor vehicles not intended to be operated or used upon any public
highway, or which are operated on highways not constructed or maintained
by the Government, or are intended not to be used or operated at all, shall
be exempt from payment of the registration fees provided in this Act, but
shall each pay an annual recording and service fee of fifteen pesos: Provided,
however, That no refund, credit for, or reimbursement of registration fees
or part thereof shall be made to any owner on account of the discontinuance
of the use or operation of a motor vehicle subsequent to the payment of
such registration fees: Provided, further, That in the event motor vehicles
exempted under this section shall be found operated on any public highways,
the regular registration fees and surcharges shall be collected in addition to
whatever penalties may be imposed for violation of this Act. The
Commissioner of Land Transportation shall provide distinctive number
plates for vehicles exempted from payment of regular registration fees,
and the owner of the vehicles concerned shall pay four pesos for each of
such number plates.
(j) The maximum allowable gross weight of a motor truck, passenger

bus, or trailer, upon which to compute the registration fee thereof, shall be
determined by the Commissioner of Land Transportation. He shall, from
time to time as the need of the service may require, prepare, subject to the
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approval of the Secretary of Public Works and Communications, suitable

tables of maximum allowable loads per wheel for different sizes and kinds
of tires.
(k) The registration fees provided in this Act for trucks may be payable
in two equal installments, the first to be paid on or before the last working
day of February if for hire, and in March if private; and the second to be
paid on or before the last working day of August: Provided, That the fifty
per cent penalty shall apply on to the unpaid balance of the remaining
period of delinquency.
SEC. 9. Permissible weights and dimensions of vehicles in highways

traffic. – (a) The maximum gross weight and measurement of motor
vehicles, unladen or with load, permissible on public highways shall be as
specified hereunder, subject to such regulations as the Commissioner with
the approval of the Secretary of Public Works and Communications, may
promulgate, from time to time, as the conditions of the public highways
may warrant and the needs of the service may require.
Permissible maximum weights:
1. Per most heavily loaded wheel ..... three thousand six hundred
kilograms;
2. Per most heavily loaded axle…… eight thousand kilograms;
3. Per most heavily loaded axle

group (the two axles of the group
being at least one meter and
less than two meters apart)….......... fourteen thousand five
hundred kilograms.
An axle weight shall be the total weight transmitted to the road by all
the wheels the centers of which can be included between the parallel
transverse vertical planes one meter apart extending across the full width
of the vehicles.
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No provincial, city or municipal authority shall enact or enforce any

ordinance or resolution regulating or prescribing the maximum gross weight
of any motor vehicle
(b) No motor vehicle operating as a single unit shall exceed the

following dimensions:
Overall width ...................................... two and five-tenths meters
Overall heigh ...................................... four meters
Overall length:
Freight vehicles with two axles .......... ten meters
Passengers vehicles with two axles .... eleven meters
Vehicles with three or more axles ...... fourteen meters
(c) No motor vehicle and/or trailer combination shall exceed eighteen

meters in overall projected length, including any load carried on such vehicle
and trailer.
(d) No articulated vehicles shall be allowed to draw or pull a trailer

and no vehicle already drawing a trailer shall draw another.
SEC. 10. Special permits, fees for. – The Commissioner with the
approval of the Secretary of Public Works and Communications, shall issue
regulations and schedules of additional fees under which special permits
may be issued in the discretion of the Commissioner or his deputies, for
each of the following special cases, without which special permit no vehicles
shall be operated on the public highways:
(a) To operate a motor vehicle or trailer outfit with wheel, axle, or

axle group loads in excess of the limits fixed in subsection (a) of Section
nine hereof or in any regulation issued by the Commissioner.
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(b) To operate a motor vehicle the size of which exceeds the limit of
permissible dimensions specified in paragraph (b) of Section nine hereof.
(c) To operate a motor vehicle with any part of the load extending
beyond the projected width of the vehicle.
(d) To pull two trailers behind a motor vehicle.
(e) For any other special authority relating to the use of vehicles, not
otherwise specifically provided herein.
SEC. 11. Additional fees. – In addition to the fees elsewhere provided

in this Act, for each change of registration, from private to for hire or vice-
versa; revision of gross weight rating, change of the tire size; transfer of
ownership; replacement of a lost registration certificate, number plate,
driver’s license or permit; badge; preparation of affidavit or certified copy
of records, or for any similar circumstances requiring the issue, revision,
or reissue of a certificate of registration, driver’s license, badge, permit, or
other document, a fee of two pesos shall be collected.
The replacement of a lost or utterly spoiled certificate, number plate,

license, badge or permit shall render the original invalid.
In case of a request in writing for certification of data or facts

involving two or more vehicles, a fee of five pesos a page or part thereof
shall be collected for each certification.
SEC. 12. Fee for original registration for part of year. – If any
application for the original registration is made during the first quarter of a
calendar year, the total annual fee for the year shall be paid, if made during
the second quarter, three-fourths of the annual fee for that year shall be
paid, if made during the third quarter, one half of the annual fee shall be
paid, and if made during the fourth quarter, one-fourth of the annual fee
shall be paid.
Nothing in this section shall be construed as allowing quarterly
775
renewals of registrations in order to avoid payment of fees in advance for

the entire year.
SEC. 13. Payment of taxes upon registration. – No original

registration of motor vehicles subject to payment of taxes, customs duties
or other charges shall be accepted unless proof of payment of the taxes due
thereon has been presented to the Commission.
ARTICLE III – Registration Certificates, Records,
Number Plates
SEC. 14. Issuance of certificates of registration. – A properly

numbered certificate of registration shall be issued for each separate motor
vehicle after due inspection and payment of corresponding registration fees.
SEC. 15. Use and authority of certificate of registration. – (a) The

said certificate shall be preserved and carried in the car by the owner as
evidence of the registration of the motor vehicle described therein, and
shall be presented with subsequent applications for re-registration, transfer
of ownership, or recording of encumbrances: Provided, That in lieu of the
certificate of registration a true copy or photostat thereof may be carried in
the motor vehicle.
(b) The certificate of registration issued under the provisions of this

Act for any motor vehicle shall, while the same is valid and effective and
has not been suspended or revoked, be the authority for the operation of
such motor vehicle.
(c) No motor vehicle shall be operated on the public highways in a

manner which would place it under a classification requiring the payment
of a larger registration fee than that stated in the certificate of registration.
SEC. 16. Suspension of registration certificate. – If on inspection, as

provided in paragraph (6) of Section four hereof, any motor vehicle is found
to be unsightly, unsafe, overloaded, improperly marked or equipped, or
776
otherwise unfit to be operated, or capable of causing excessive damage to

the highways, or not conforming to minimum standards and specifications,
the Commissioner may refuse to register the said motor vehicle, or if already
registered, may require the number plates thereof to be surrendered to him,
and upon seventy-two hours notice to the owner of the motor vehicle,
suspend such registration until the defects of the vehicle are corrected and/
or the minimum standards and specifications fully complied with.
Whenever it shall appear from the records of the Commission that

during any twelve-month period more than three warnings for violations of
this Act have been given to the owner of a motor vehicle, or that the said
owner has been convicted by a competent court more than once for violation
of such laws, the Commissioner may, in his discretion, suspend the certificate
of registration for a period not exceeding ninety days and, thereupon, shall
require the immediate surrender of the number plates.
Whenever a motor vehicle is found to be underweighed the owner

thereof shall pay the difference in the registration fees corresponding to
the shortage in weight plus a fifty per cent surcharge, and until such payment
is made, the certificate of registration of the motor vehicle concerned shall
be suspended by the Commissioner.
After two such suspensions, re-registration of the vehicle concerned

for one year may be denied.
The Commissioner shall notify the owner of the motor vehicle of

any action taken by him under this section.
SEC. 17. Number plates, preparation and issuance of. –
(a) The Commissioner shall cause number plates to be prepared and

issued to owners of motor vehicles and trailers registered under this Act,
charging a fee of four pesos for each pair including the numerals indicating
the year of registry: Provided, however, That in case no number plates are
available, the Commissioner or his deputies may issue, without charge, a
written permit temporarily authorizing the operation of any motor vehicles
777
with other means of identification: Provided, further, That all motor vehicles
exempted from payment of registration fees, motor vehicles for hire, and
privately-owned motor vehicles shall bear plates so designed and painted
with different colors to distinguish one class from another: Provided,
furthermore, That the plates of motor vehicles exempted from payment of
registration fees shall be permanently assigned to such motor vehicles during
their entire lifetime while exempted from payment of the fees: And provided,
finally, That the owner thereof shall return such plates to the Land
Transportation Commission within a period of seven working days after
such owner has lost his exemption privilege or has transferred the vehicle
to a non-exempt owner.
(b) In case the design of the number plate is such that the numerals
indicating the year of registry are on a detachable tag, the Commissioner or
his deputies may, in their discretion, issue the said tag only for subsequent
re-registration charging a fee of one peso for each tag issued.
SEC.18. Use of number plates. – At all times, every motor vehicle

shall display in conspicuous places, one in front and one in the rear thereof,
the said number plates.
The number plates shall be kept clean and cared for, and shall be
firmly affixed to the motor vehicle in such a manner as will make it entirely
visible and always legible.
Except in the case of dealer’s number plates which may be used

successively on various motor vehicles in stock, no person shall transfer
number plates from one motor vehicle to another.
No dealer’s number plate shall be used on any motor vehicle after

said vehicle has been sold and delivered to a purchaser, and no dealer shall
allow such dealer’s number plates to be used on any motor vehicle after its
sale and delivery to a purchaser.
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CHAPTER III – OPERATION OF MOTOR VEHICLES
ARTICLE I.— License to Drive Motor Vehicles
SEC. 19. Duty to procure license. – Except as otherwise specifically

provided in this Act, no person shall operate any motor vehicle without
first procuring a license to drive a motor vehicle for the current year, nor
while such license is delinquent, invalid, suspended or revoked.
The license shall be carried by the driver at all times when operating
a motor vehicle, and shall be shown and/or surrendered for cause and upon
demand to any person with authority under this Act to confiscate the same.
SEC. 20. License for enlisted men operating Government motor

vehicles. – Enlisted men operating a motor vehicle owned by the
Government of the Philippines shall be licensed in accordance with the
provisions of this Act, but no license or delinquency fees shall be collected
therefrom. All licenses so issued shall bear the words “For Government
Vehicles Only” plainly marked or stamped in red ink across the face thereof.
A license so marked so stamped shall not authorize the holder thereof

to operate a privately-owned motor vehicle.
SEC. 21. Operation of motor vehicles by tourists. –Bona fide tourists

and similar transients who are duly licensed to operate motor vehicles in
their respective countries may be allowed to operate motor vehicles during
but not after ninety days of their sojourn in the Philippines.
If any accident involving such tourist or transient occurs, which upon

investigation by the Commissioner or his deputies indicates that the said
tourist or transient is incompetent to operate motor vehicles, the
Commissioner shall immediately inform the said tourist or transient in
writing that he shall no longer be permitted to operate a motor vehicle.
After ninety days, any tourist or transient desiring to operate motor

vehicles shall pay fees and obtain and carry a license as hereinafter provided.
779
SEC. 22. Driver’s license, fees, examination. – Every person who

desires personally to operate any motor vehicle shall file an application to
the Commissioner or his deputies for a license to drive motor vehicles:
Provided, however, That no person shall be issued a professional driver’s
license who is suffering from highly contagious diseases, such as, advanced
tuberculosis, gonorrhea, syphilis, and the like.
Each such application, except in the case of enlisted men operating

government-owned vehicles, shall be accompanied by a fee of five pesos,
and shall contain such information respecting the applicant and his ability
to operate motor vehicles, as may be required by the Commission.
The Commissioner or his deputies shall also ascertain that the

applicant’s sight and hearing are normal, and may in their discretion, require
a certificate to that effect, signed by a reputable physician.
An examination or demonstration to show any applicant’s ability to

operate motor vehicles may also be required in the discretion of the
Commissioner or his deputies.
SEC. 23. Issuance of driver’s license. – If, after such examination,

the Commissioner or his deputy believes that the applicant possesses the
necessary qualifications and is proficient in the operation of motor vehicles,
a license shall be issued to such applicant upon payment of five pesos, but
prior to the issuance of said license, the applicant shall furnish three copies
of his recent photograph to be securely attached to the license, and two
copies to be filed and kept as provided by this Act. All driver’s licenses
shall bear the signature and right-hand thumb print of the licensee.
SEC. 24. Use of driver’s license and badge. – Every license issued
under the provisions of this Act to any driver shall entitle the holder thereof,
while the same is valid and effective and not suspended or revoked, to
operate the motor vehicles described in such license: Provided, however,
That every licensed professional driver, before operating a public service
motor vehicle registered under classifications (d) to (j) inclusive of Section
seven hereof, shall secure from the Commissioner, upon payment of the
780
sum of one peso, a driver’s badge which he shall, at all times while so
operating a motor vehicle, display in plain sight on the band of his cap or
on his coat or shirt. Such driver’s badge shall be of metal with a plainly
readable number assigned to the licensee stamped thereon.
It shall be unlawful for any duly licensed driver to transfer, lend or

otherwise allow any person to use his license for the purpose of enabling
such person to operate a motor vehicle.
No owner of a motor vehicle shall engage, employ, or hire any person

to operate such motor vehicle, unless the person sought to be employed is
a duly licensed professional driver.
SEC. 25. Driver’s records. – Any driver who changes his address
shall, within fifteen days, notify the Commissioner in writing of his new
address, name and address of his new employer, the number of the motor
vehicle he is employed to operate, and such other information as the
Commissioner may require.
SEC. 26. Renewal of license. – Any license not renewed on or before

the last working day of the month when the applicant was born shall become
delinquent and invalid, except when the license is surrendered to the
Commissioner or his deputies before the last working day of the month of
his birth in order to avoid payment of the delinquency fees.
The fee for renewal of delinquent license shall be five pesos in

addition to the basic fee as hereinabove prescribed.
Every applicant for renewal of license to operate any motor vehicle

shall present to the Commissioner, in person or by mail or messenger, the
license issued to the applicant for the previous, year, together with the
proper fee of five pesos and, in the case of professional chauffeurs, three
copies of a readily-recognized photograph of the applicant, which
photograph shall have been taken not exceeding three years prior to the
date of application for renewal.
781
Lost license. – In case the license for the previous year has been lost
or cannot be produced, the applicant shall obtain a duplicate in accord with
Section eleven of this Act, on penalty of refusal, by the Commissioner or
his deputies, to renew the license: Provided, however, That the
Commissioner or his deputies may, in their discretion, accept in lieu of the
previous year’s license, the duly signed and sworn statement of an operator
to the effect that he has not operated any motor vehicle in the Philippines
during the year or years to which no license was issued in his name.
The Commissioner and his deputies are hereby authorized to

administer the oath in connection with such affidavit.
SEC. 27. Suspension, revocation of driver’s license. – (a) The

Commissioner may suspend for a period not exceeding three months or,
after hearing, revoke any driver’s license issued under the provisions of
this Act, and may order any such license to be delivered to him whenever
he has reason to believe that the holder thereof is an improper person to
operate motor vehicles, or in operating or using a motor vehicle in, or as an
accessory to, the commission of any crime or act which endangers the public.
Any deputy of the Commissioner may, for the same cause, suspend for a
period not exceeding three months any driver’s license issued under the
provisions of this Act: Provided, That such suspension may be appealed to
the Commissioner who may, after reviewing the case, confirm, reverse or
modify the action taken by such deputy.
(b) Whenever during any twelve-month period a driver shall have

been convicted at least three times for the violations of any provisions of
this Act or of any regulation issued by the Commissioner or any municipal
or city ordinance relating to motor vehicle traffic not in conflict with any
of the provisions of this Act, the Commissioner may, in his discretion, revoke
or suspend the license of such driver for a period not exceeding two years.
(c) The license suspended or revoked under the provisions of

subsections (a) and (b) of this section shall not be reinstated unless the
driver has furnished a bond in accordance with Section twenty-nine of this
782
Act and only after the Commissioner has satisfied himself that such driver
may again safely be permitted to operate a motor vehicle.
(d) A decision of the Commissioner revoking or refusing the

reinstatement of a license under the provisions of this section may be
appealed to the Secretary of Public Works and Communications.
SEC. 28. Driver’s bond. – The Commissioner before reinstating any

driver’s license which has been suspended or revoked under the provisions
of the preceding section or of any provisions of this Act, may require such
driver to post a bond in the sum of one thousand pesos conditioned upon
the satisfaction and payment of any claim which may be filed or of any
execution which may be issued against such driver in any case wherein
said driver may be held answerable while operating motor vehicles. The
bond required in this section shall be in such form as to render sureties
liable at least for a period of not less than one year nor more than three
years: Provided, however, That upon written application to the
Commissioner for release from such a bond, the Commissioner may after
revoking or suspending the driver’s license, authorize the release of the
bondsmen from further responsibility thereunder: Provided, further, That
should the Commissioner decide not to revoke the license of a driver who
has been convicted of homicide through reckless imprudence, or of the
violation of the speed limit or of reckless driving at least three times within
a twelve- month period, the said driver shall post a bond in the sum of not
less than two thousand pesos, conditioned upon the payment of any claim
which may be filed or any execution which may be issued against him in
any case wherein said driver may be held answerable while operating motor
vehicles.
SEC. 29. Confiscation of driver’s licenses. – Law enforcement and

peace officers duly designated by the Commissioner shall, in apprehending
any driver for violations of this Act or of any regulations issued pursuant
thereto, or of local traffic rules and regulations, confiscate the license of
the driver concerned and issue a receipt prescribed and issued by the
Commission therefor which shall authorize the driver to operate a motor
vehicle for a period not exceeding seventy-two hours from the time and
783
date of issue of said receipt. The period so fixed in the receipt shall not be
extended, and shall become invalid thereafter. Failure of the driver to settle
his case within fifteen days from the date of apprehension will cause
suspension and revocation of his license.
SEC. 30. Student-driver’s permit. – Upon proper application and the

payment of three pesos, the Commissioner or his deputy may issue student-
driver’s permits, valid for six months to persons not under eighteen years
of age, who desire to learn to operate motor vehicles. No application for
driver’s license shall be received unless the applicant has undergone
instruction in the operation of motor vehicles for at least a month and has a
valid student-driver’s permit: Provided, however, That any person who has
a license to operate motor vehicles in other countries may, upon presentation
of appropriate evidence of such license, be allowed to pay for a driver’s
license without presenting a student driver’s permit.
A student driver who fails in the examination shall continue as a

student driver for at least one additional month. No student driver shall
operate a motor vehicle unless accompanied by a duly licensed driver.
The licensed driver acting as instructor to the student driver shall

likewise be responsible and liable for any violation of the provisions of
this Act and for any injury or damage done by the motor vehicle on account
or as a result of its operation by a student driver under his direction.
ARTICLE II. – Illegal Use of Licenses, Number Plates, Etc.
SEC. 31. Imitation and false representations. – No person shall make

or use or attempt to make or use a driver’s license, badge, certificate of
registration, number plate, tag, or permit in imitation or similitude of those
issued under this Act, or intended to be used as or for a legal license, badge,
certificate, plate, tag or permit, or with intent to sell or otherwise dispose
of the same to another. No person shall falsely or fraudulently represent as
valid and in force any driver’s license, badge, certificate, plate, tag or permit
issued under this Act which is delinquent or which has been revoked or
suspended.
784
No person shall, knowingly and with intent to deceive, make one or

more false or fraudulent statements in an application for the registration of
vehicles, or for a driver’s license.
ARTICLE III - Passengers and Freight
SEC. 32. Exceeding registered capacity.-No person operating any

vehicle shall allow more passengers or more freight or cargo in his vehicle
than its registered carrying capacity. In the case of public utility trucks or
buses, the conductor shall be exclusively liable for violations of this section
or of Section thirty-two, letter (c) hereof: Provided, That the conductor,
before being employed by any public service operator, shall get a permit or
license from the Commission and pay five pesos annually for said license
or permit issued in his favor, and the same is renewable on or before the
last working day of the month of his birth, attaching a readily recognizable
photograph and after presentation of a medical certificate of fitness of
applicant.
Passenger trucks may be allowed to construct any cargo carrying

device at the rear or at the side of the truck, subject to the approval of the
Commissioner: Provided, however, That the total weight of the device,
including the cargo, shall not exceed one hundred kilos.
(b) Carrying of passengers and freight on top of vehicles. – No person

operating a motor vehicle shall allow any passenger to ride on the cover or
top of such vehicles: Provided, however, That subject to such conditions as
may be contained in permits that may be issued by the Commissioner,
baggage or freight may be carried on the top of a truck provided the weight
thereof does not exceed twenty kilos per square meter and is distributed in
such a manner as not to endanger the passengers or stability of the truck.
(c) Riding on running boards. – No driver shall permit any person to

ride on the running board, step board, or mudguard of his motor vehicle for
any purpose except to make repair or adjustment in the motor or to collect
fares.
785
SEC. 33. Passenger or freight capacity marked on vehicle. – All

passenger automobiles for hire shall have the registered passenger capacity
plainly and conspicuously marked on both sides thereof, in letters and
numerals not less than five centimeters in height.
All motor trucks, whether for passenger or freight, private, or for

hire, shall have the registered passenger gross and net weight capacities
plainly and conspicuously marked on both sides thereof, in letters and
numerals not less than five centimeters in height.
ARTICLE IV.- Accessories of Motor Vehicles
SEC. 34. (a) Tires of motor vehicles. – No motor vehicle with metallic
tires shall be operated upon any public highway, and solid tires whenever
used ‘shall be of sufficient thickness to prevent the metal rims thereof from
coming in direct contact with the road.
(b) Brakes – Every motor vehicle with four or more wheels shall be
provided with dual hydraulic brake system so that in case of hydraulic line
failure affecting the braking efficiency of any of the four wheels at least
either the front or rear wheels shall retain normal braking capabilities. In
the absence of such dual braking system every motor vehicle with four or
more wheels shall be provided with safety valve devices of such design
and make so that failure of the hydraulic braking system of the vehicle
because of leakage in the line or other parts of the system will not affect all
wheels but rather render at all times effective the braking power of either
the two front wheels or the two rear wheels when brakes are applied. This
requirement, however, does not apply to motor vehicles equipped with
pneumatic braking system.
(b-l) Horns-Every motor vehicle shall be provided with a horn or

signalling device in good working order: Provided, however, That no horn
or signalling device emitting an exceptionally loud, startling, or disagreeable
sound shall be installed or used on any motor vehicle.
786
All authorized emergency vehicles, such as ambulance and police

cars and fire wagons used for emergency calls shall be equipped with a
bell, siren, or exhaust whistle of a type approved by the Commissioner, and
no such device shall be installed or used in any other vehicle.
No vehicle not classified as a motor vehicle under this Act shall be

equipped with a horn or signalling device similar to the horn customarily
used on motor vehicle.
(c) Headlights. – Every motor vehicle of more than one meter of

projected width, while in use on any public highway shall bear two
headlights, one on each side, with white or yellowish light visible from the
front, which, not later than one-half hour after sunset and until at least one-
half hour before sunrise and whenever weather conditions so require, shall
both be lighted.
Additional lamps and light may be carried, but no red lights shall be
visible forward or ahead of the vehicle. Trucks, buses, trailers, and other
similar vehicles must carry, while in use on any public highway during
night time, colored riding lights on each of the four corners not more than
ten centimeters from the top.
All motor vehicles shall be equipped with devices for varying the
intensity of light, and the driver must dim the headlights or tilt the beams
downward whenever the vehicle is being operated on well-lighted streets
within the limits of cities, municipalities, and thickly populated barrios or
districts, or whenever such vehicle meets another vehicle on any public
highway.
(d) Taillights. – Every motor vehicle and trailer shall, during the
above-mentioned hours, also bear on each side in the rear a lamp showing
a red light visible at least one hundred meters from the rear of the vehicle
and a lamp throwing a white light upon the number plate issued for such
vehicle.
787
(e) Stop lights. – Every motor vehicle shall be equipped at the rear
with at least one lamp which, shall throw a sustained bright red light visible
under all conditions, even under bright sunlight, when the brakes are applied.
Each bus, truck, trailer, or similar vehicle shall be equipped, as its stop
light at or near its rear center, with a lamp at least twelve centimeters in
diameter with the word “stop” inscribed in the center.
(f) Motorcycle and other vehicle lights. – Every motor vehicle of less
than one meter of projected width shall be subject to the preceding
provisions of this section, except that one headlight and one taillight shall
be required. No signal light shall be necessary.
Additional lamps may be carried provided they comply with the

preceding provisions of this section.
Every other vehicle, of whatever style, kind, make, character, or

nature, when upon a highway during the hours above-mentioned, whether
in motion or not, shall have one or more lights so arranged that the same
shall be visible at least fifty meters from the front and the rear of such
vehicle.
(g) Lights when parked or disabled. – Appropriate parking lights or

flares visible one hundred meters away shall be displayed at a -corner of
the vehicle whenever such vehicle is parked on highways or in places that
are not well-lighted or is placed in such manner as to endanger passing
traffic.
(h) Windshield wiper. – Every motor vehicle shall be equipped with a

mechanically or electrically operated device for wiping off raindrops or
other moisture from its front windshield.
(i) Use of red flag. – Whenever the load of any vehicle extends more
than one meters beyond the bed or body thereof, there shall be displayed at
every projecting end of such load a red flag not less than thirty centimetres
both in length and width, except that during the hours fixed under subsection
788
(c), there shall be displayed, in lieu of the required red flags, red lights
visible at least fifty meters away.
(j) Mufflers. – Every motor vehicle propelled by an internal

combustion engine shall be equipped with a muffler, and whenever said
motor vehicle passes through a street of any city, municipality, or thickly
populated district or barrio, the muffler shall not be cut out or disconnected.
No motor vehicle shall be operated in such a manner as to cause it to emit
or make any unnecessary or disagreeable odor, smoke or noise.
CHAPTER IV. – TRAFFIC RULES
ARTICLE I. – Speed Limit and Keeping to the Right
SEC. 35. Restriction as to speed.-(a) Any person driving a motor

vehicle on a highway shall drive the same at a careful and prudent speed,
not greater nor less than is reasonable and proper, having due regard for the
traffic, the width of the highway, and of any other condition then and there
existing; and no person shall drive any motor vehicle upon a highway at
such a speed as to endanger the life, limb and property of any person, nor at
a speed greater than will permit him to bring the vehicle to a stop within
the assured clear distance ahead.
(b) Subject to the provisions of the preceding paragraph, the rate of

speed of any motor vehicle shall not exceed the following:
MAXIMUM ALLOWABLE SPEEDS
Passenger cars Motor trucks

and motorcycles and buses
1. On open country roads, with no
“blind corners” not closely
bordered by habitations 80 km./hr. 50 km./hr
2. On “through streets” or boulevards,

clear of traffic, with no “blind
corners,” when so designated 40 km./hr. 30 km./hr
789
3. On city and municipal streets, with

light traffic, when not designated
“through streets.” 30 km./hr. 30 km./hr
4. Through crowded streets,

approaching intersections at “blind
corners,” passing school zones,
passing other vehicles which are
stationary, or for similar dangerous
circumstances. 20 km./hr. 20 km./hr
(c) The rates of speed hereinabove prescribe shall not apply to the
following:
(1) A physician or his driver when the former responds to emergency

calls;
(2) The driver of a hospital ambulance on the way to and from the
place of accident or other emergency;
(3) Any driver bringing a wounded or sick person for emergency

treatment to a hospital, clinic, or any other similar place;
(4) The driver of a motor vehicle belonging to the Armed Forces

while in use for official purposes in times of riot, insurrection or invasion;
(5) The driver of a vehicle, when he or his passengers are in pursuit

of a criminal;
(6) A law-enforcement officer who is trying to overtake a violator of

traffic laws; and
(7) The driver officially operating a motor vehicle of any fire

department, provided that exemption shall not be construed to allow useless
or unnecessary fast driving of drivers afore-mentioned.
790
SEC. 36. Speed limits uniform throughout the Philippines. – No

provincial, city or municipal authority shall enact or enforce any ordinance
or resolution specifying maximum allowable speeds other than those
provided in this Act.
SEC. 37. Driving on right side of highway. – Unless a different course

of action is required in the interest of the safety and the security of life,
person or property, or because of unreasonable difficulty of operation in
compliance herewith, every person operating a motor vehicle or an animal-
drawn vehicle on a highway shall pass to the right when meeting persons
or vehicles coming toward him, and to the left when overtaking persons or
vehicles going the same direction, and when turning to the left in going
from one highway to another, every vehicle shall be conducted to the right
of the center of the intersection of the highway.
SEC. 38. Classification of highways. – Public highways shall be

properly classified for traffic purposes by the provincial board, municipal
board or city council having jurisdiction over them, and said provincial
board, municipal board or city council shall provide appropriate signs
therefor, subject to the approval of the Commissioner. It shall be the duty
of every provincial, city and municipal secretary to certify to the
Commissioner the names, locations, and limits of all “through streets”
designated as such by the provincial board, municipal board or council.
ARTICLE II. – Overtaking and Passing a Vehicle,

and Turning at Intersections
SEC. 39. Overtaking a vehicle. – The driver of any motor vehicle

overtaking another vehicle proceeding in the same direction shall pass at a
safe distance to the left thereof, and shall not again drive to the right side of
the highway until safely clear of such overtaken vehicle, except that, on a
highway, within a business or residential district, having two or more lanes
for the movement of traffic in one direction, the driver of a vehicle may
overtake and pass another vehicle on the right. Nothing in this section shall
be construed to prohibit a driver overtaking and passing, upon the right,
another vehicle which is making or about to make a left turn.
791
SEC. 40. Driver to give way to overtaking vehicle. – The driver, of a

vehicle about to be overtaken and passed by another vehicle approaching
from the rear shall give way to the overtaking vehicle on suitable and audible
signal being given by the driver of the overtaking vehicle, and shall not
increase the speed of his vehicle until completely passed by the overtaking
vehicle.
SEC. 41. Restrictions on overtaking and passing. –
(a) The driver of a vehicle shall not drive to the left side of the center
line of a highway in overtaking or passing another vehicle proceeding in
the same direction, unless such left side is clearly visible, and is free of
oncoming traffic for a sufficient distance ahead to permit such overtaking
or passing to be made in safety.
(b) The driver of a vehicle shall not overtake or pass another vehicle
proceeding in the same direction, when approaching the crest of a grade,
nor upon a curve in the highway, where the driver’s view along the highway
is obstructed within a distance of five hundred feet ahead, except on a
highway having two or more lanes for movement of traffic in one direction
where the driver of a vehicle may overtake or pass another vehicle: Provided,
That on a highway, within a business or residential district, having two or
more lanes for movement of traffic in one direction, the driver of a vehicle
may overtake or pass another vehicle on the right.
(c) The driver of a vehicle shall not overtake or pass any other vehicle
proceeding in the same direction, at any railway grade crossing, nor at any
intersection of highways, unless such intersection or crossing is controlled
by traffic signal, or unless permitted to do so by a watchman or a peace
officer, except on a highway having two or more lanes for movement of
traffic in one direction where the driver of a vehicle may overtake or pass
another vehicle on the right. Nothing in this section shall be construed to
prohibit a driver overtaking or passing, upon the right, another vehicle which
is making or about to make a left turn.
792
(d) The driver of a vehicle shall not overtake or pass, or attempt to

pass, any other vehicle, proceeding in the same direction, between any
points indicated by the placing of official temporary warning or caution
signs indicating that men are working on the highway.
(e) The driver of a vehicle shall not overtake or pass, or attempt to

overtake or pass, any other vehicle proceeding in the same direction in any
“no-passing or overtaking zone.”
ARTICLE III – Right of Way and Signals
SEC. 42. Right of way. – (a) When two vehicles approach or enter an
intersection at approximately the same time, the driver of the vehicle on
the left shall yield the right of way to the vehicle on the right, except as
otherwise hereinafter provided The driver of any vehicle travelling at an
unlawful speed shall forfeit any right of way which he might otherwise
have hereunder.
(b) The driver of a vehicle approaching but not having entered an

intersection, shall yield the right of way to a vehicle within such intersection
or turning therein to the left across the line of travel of such first-mentioned
vehicle, provided the driver of the vehicle turning left has given a plainly
visible signal of intention to turn as required in this Act.
(c) The driver of any vehicle upon a highway within a business or

residential district shall yield the right of way to a pedestrian crossing such
highway within a crosswalk, except at intersections where the movement
of traffic is being regulated by a peace officer or by traffic signal. Every
pedestrian crossing a highway within a business or residential district, at
any point other than a crosswalk, shall yield the right of way to vehicles
upon the highway.
(d) The driver of a vehicle upon a highway shall bring to a full stop
such vehicle before traversing any “through highway” or railroad crossing:
Provided, That when it is apparent that no hazard exists, the vehicle may
be slowed down to five miles per hour instead of bringing it to a full stop.
793
SEC. 43. Exception to the right of way rule. – (a) The driver of a
vehicle entering a highway from a private road or drive shall yield the right
of way to all vehicles approaching on such highway.
(b) The driver of a vehicle upon a highway shall yield the right of
way to police or fire department vehicles and ambulances when such
vehicles are operated on official business and the drivers thereof sound
audible signal of their approach.
(c) The driver of a vehicle entering a “through highway” or a “stop

intersection” shall yield the right of way to all vehicles approaching in
either direction on such “through highway”: Provided, That nothing in this
subsection shall be construed as relieving the driver of any vehicle being
operated on a “through highway” from the duty of driving with due regard
for the safety of vehicles entering such “through highway” nor as protecting
the said driver from the consequence of an arbitrary exercise of such right
of way.
SEC. 44. Signals on starting, stopping or turning. – (a) The driver of

any vehicle upon a highway, before starting, stopping or turning from a
direct line, shall first see that such movement can be made in safety, and if
any pedestrian may be affected by such movement, shall give a clearly
audible signal by sounding the horn, and whenever the operation of any
other vehicle approaching or following may be affected by such movement,
shall give a signal plainly visible to the driver of such other vehicles of the
intention to make such movement.
(b) The signal herein required shall be given by means of extending

the hand and arm beyond the left side of the vehicle, or by any approved
mechanical or electrical signal device.
ARTICLE IV. – Turning and Parking
SEC. 45. Turning at intersections. – (a) The driver of a vehicle

intending to run to the right at an intersection shall approach such
intersection in the lane for traffic nearest to the right-hand side of the
794
highway and, in turning, shall keep as close as possible to the right-hand

curb or edge of the highway.
(b) The driver of a vehicle intending to turn to the left shall approach
such intersection in the lane for traffic to the right of and nearest to the
center line of the highway, and, in turning, shall pass to the left of the
center of the intersection, except that, upon highways lane for traffic and
upon one-way highways, a left turn shall be made from the left lane of
traffic in the direction in which the vehicle is proceeding,
(c) For the purpose of this section, the center of the intersection
shall mean the meeting point of the medial lines of the highways intersecting
one another, except when it is occupied by a monument, grass plot or any
permanent structure, other than a traffic control device.
SEC. 46. Parking prohibited in specified places. – No driver shall

park a vehicle, or permit it to stand, whether attended or unattended, upon
a highway in any of the following places:
(a) Within an intersection
( b) On a crosswalk
( c) Within six meters of the intersection of curb lines.
(d) Within four meters of the driveway entrance to any fire station.
(e) Within four meters of a fire hydrant
(f) In front of a private driveway
(g) On the roadway side of any vehicle stopped or parked at the

curb or edge of the highway
(h) At any place where official signs have been erected prohibiting
parking.
795
SEC. 47. Parked vehicle. – Whenever a motor vehicle is parked

unattended on any highway, the driver thereof must turn off the ignition
switch and stop the motor and notch effectively the hand brake.
ARTICLE V. – Miscellaneous Traffic Rules
SEC. 48. Reckless driving. – No person shall operate a motor vehicle

on any highway recklessly or without reasonable caution considering the
width, traffic, grades, crossing, curvatures, visibility and other conditions
of the highway and the conditions of the atmosphere and weather, or so as
to endanger the property or the safety or rights of any person or so as to
cause excessive or unreasonable damage to the highway.
SEC. 49. Right of way for police and other emergency vehicles. –
Upon the approach of any police or fire department vehicle, or of an
ambulance giving audible signal, the driver of every other vehicle shall
immediately drive the same to a position as near as possible and parallel to
the right-hand edge or curb of the highway, clear of any intersection of
highways, and shall stop and remain in such position, unless otherwise
directed by a peace officer, until such vehicle shall have passed.
SEC. 50. Tampering with vehicles. – No unauthorized person shall

sound the horn, handle the levers or set in motion or in any way tamper
with or damage or deface any motor vehicle.
SEC. 51. Hitching to a vehicle. – No person shall hang on to, or ride

on, the outside or the rear end of any vehicle, and no person on a bicycle,
roller skate or other similar device, shall hold fast to or hitch on to any
moving vehicle, and no driver shall knowingly permit any person to hang
on to, or ride on, the outside or rear end of his vehicle or allow any person
on a bicycle, roller skate or other similar device to hold fast or hitch to his
vehicle.
SEC. 52. Driving or parking on sidewalk. – No person shall drive or

park a motor vehicle upon or along any sidewalk, path or alley not intended
for vehicular traffic or parking.
796
SEC. 53. Driving while under the influence of liquor or narcotic

drug. – No person shall drive a motor vehicle while under the influence of
liquor or narcotic drug.
SEC. 54. Obstruction of traffic. – No person shall drive his motor

vehicle in such a manner as to obstruct or impede the passage of any vehicle,
nor, while discharging or taking on passengers or loading or unloading
freight, obstruct the free passage of other vehicles on the highway.
SEC. 55. Duty of driver in case of accident. – In the event that any
accident should occur as a result of the operation of a motor vehicle upon
a highway, the driver shall stop immediately, and, if requested by any person
present, shall show his driver’s license, give his true name and address and
also the true name and address of the owner of the motor vehicle.
No driver of a motor vehicle concerned in a vehicular accident shall

leave the scene of the accident without aiding the victim, except under any
of the following circumstances:
1. If he is in imminent danger of being seriously harmed by any person

or persons by reason of the accident;
2. If he reports the accident to the nearest officer of the law; or
3. If he has to summon a physician or nurse to aid the victim.
CHAPTER V. – PENAL AND OTHER PROVISIONS
ARTICLE I. – Penalties
SEC. 56. Penalty for violation. – The following penalties shall be

imposed for violations of this Act:
(a) For registering later than seven days after acquiring title to an
unregistered motor vehicle or after conversion of a registered motor vehicle
requiring larger registration fee than that for which it was originally
797
registered, or for renewal of a delinquent registration, the penalty shall be

a fine fifty percent of the registration fees corresponding to the portion of
the year for which the vehicle is registered for use.
(b) For failure to sign driver’s license or to carry same while driving,
twenty pesos fine.
(c) Driving a vehicle with a delinquent or invalid driver’s license,

fifty pesos fine.
(d) Driving a motor vehicle with delinquent, suspended or invalid

registration, or without registration or without the proper license plate for
the current year, three hundred pesos fine.
(e) Driving a motor vehicle without first securing a driver’s license,

three hundred pesos fine.
(f) Driving a motor vehicle while under the influence of liquor or

narcotic drug, a fine of not less than two hundred pesos nor more than five
hundred pesos, or imprisonment of not more than three months, or both, at
the discretion of the Court.
(g) Violation of Sections thirty-two, thirty-four (a), (b) and (b-1),

thirty-five and forty-six a fine not exceeding one hundred pesos: Provided,
however, That in the case of violation of Section 34 (b) the vehicle or vehicles
affected may not be allowed to operate unless the requirements provided in
this section are complied with.
(h) Violations of Sections forty-nine, fifty and fifty-two, a fine not

exceeding fifty pesos.
(i) For making, using or attempting to make or use a driver’s license,

badge, certificate of registration, number plate, tag or permit in imitation
or similitude of those issued under this Act, or intended to be used as or for
a legal license, badge, ‘certificate, plate, tag or permit or with intent to sell
or otherwise dispose of the same to another, or falsely or fraudulently
798
represent as valid and in force any driver’s license, badge, certificate, plate,
tag or permit issued under this Act which is delinquent or which has been
suspended or revoked, a fine of not exceeding three hundred pesos.
(j) For using private passenger automobiles, private trucks, private

motorcycles, and motor wheel attachments for hire, in violation of Section
seven, subsections (a), (b), and (c), of this Act, a fine of two hundred pesos
and suspension of driver’s license for a period of three months for the first
conviction; a fine of three hundred pesos and six months imprisonment for
the second conviction; and an imprisonment of one year and permanent
revocation of the driver’s license for the third conviction.
(k) For permitting, allowing, consenting to, or tolerating the use of a

privately-owned motor vehicle for hire in violation of Section seven,
subsections (a), (b), and (c), of this Act, there shall be imposed upon the
owner of the vehicle a fine of five hundred pesos and the certificate of
registration shall be suspended for a period of three months for the first
conviction, and an increase of one hundred pesos in the fine and one month’s
suspension of the registration for each subsequent conviction.
(l) For violation of any provisions of this Act or regulations

promulgated pursuant hereto, not hereinbefore specifically punished, a fine
of not less than ten nor more than fifty pesos shall be imposed.
(m) In the event an offender cannot pay any fine imposed pursuant to
the provisions of this Act, he shall be made to undergo subsidiary
imprisonment as provided for in the Revised Penal Code.
(n) If, as the result of negligence or reckless or unreasonable fast

driving, any accident occurs resulting in death or injury of any person, the
motor vehicle operator at fault shall, upon conviction, be punished under
the provisions of the Revised Penal Code.
SEC. 57. Punishment for other offenses. – The conviction of any

person for any offense under this Act shall not bar his prosecution for any
other offense which may have been committed by such person concurrently
799
with the commission of the offense of which he was convicted or in doing

the act or series of acts which constituted the offense of which he was
convicted.
SEC 58. Duty of clerks of court. – It is hereby made the duty of

clerks of the Court of First Instance, the City Court or Municipal Court
trying traffic violation cases to certify to the Commission the result of any
case, whether criminal or civil, involving violations of any provisions of
this Act or of other laws and ordinances relating to motor vehicles. Said
certificate shall specifically contain the name of the driver or owner of the
vehicle involved, his address, the number of his license and/or of the
certificate of registration of his vehicle, and the date thereof, and the offense
of which he was convicted or acquitted.
ARTICLE II. – Collection of Fees, Taxes and Fines, Liens,

Allotment of Fund
SEC. 59. (a) Collection of fees; national and local taxes; toll fees.-
The collection of all fees, taxes, and fines, under the provisions of this Act
shall be made in accordance with regulations to be prescribed by the
Commissioner and approved jointly by the Auditor General.
( b) No taxes or fees other than those prescribed in this Act shall be

imposed for the registration or operation or on the ownership of any motor
vehicle, or for the exercise of the profession of chauffeur, by any municipal
corporation, the provisions of any city charter to the contrary
notwithstanding: Provided, however, That any provincial board, city or
municipal council or board or other competent authority may enact and
collect such reasonable and equitable toll fees for the use of such bridges
and ferries, within their respective jurisdiction, as may be authorized and
approved by the Secretary of Public Works and Communications, and also
for the use of such public roads, as may be authorized by the President of
the Philippines upon recommendation of the Secretary of Public Works
and Communications, but in none of these cases shall any toll fees be charged
or collected until and unless the approved schedule of tools has been posted
legibly in a conspicuous place at such toll station.
800
SEC. 60. The lien upon motor vehicles. – Any balance of fees for
registration, re-registration or delinquent registration of a motor vehicle,
remaining unpaid and all fines imposed upon any vehicle owner, shall
constitute a first lien upon the motor vehicle concerned.
The Commission is hereby vested with authority to issue a warrant

of constructive or actual distraint or and levy to any owner of motor vehicle
who has any balance of fees for registration, re-registration or delinquent
registration of a motor vehicle remaining unpaid, which upon demand by
the Commissioner of the Land Transportation Commission or any of his
deputies executing such warrant, the owner of the said vehicle shall
surrender same at the time demanded, except when the attachment or
execution is under any judicial process. Any owner who fails or refuses to
surrender any of such property or vehicle not so surrendered shall be
punished by a fine not exceeding the amount of the fees (including penalties
and interests, if any, for the collection of which such warrant has been
issued, together with the costs and interests, if any, from the time of such
surrender. In addition, such owner shall be punished by a fine of not more
than three hundred pesos or an imprisonment of not more than six months,
or both.
SEC. 61. Disposal of monies collected.-Monies collected under the

provisions of this Act shall be deposited in a special trust account in the
National Treasury to constitute the Highway Special Fund, which shall be
apportioned and expended in accordance with the provisions of the
“Philippine Highway Act of 1953”: Provided, however, That the amount
necessary to maintain and equip the Land Transportation Commission but
not to exceed fifteen per cent of the total collections during any one year,
shall be set aside for the purpose.
ARTICLE III- Final Provisions
SEC. 62. No provincial board, city or municipal board or council

shall enact or enforce any ordinance or resolution in conflict with the
provisions of this Act, or prohibiting any deputy or agent of the Commission
801
to enforce this Act within their respective territorial jurisdiction and the
provisions of any charter to the contrary notwithstanding.
SEC. 63. Repeal of laws and ordinances. – Act Numbered Thirty-

nine hundred ninety-two, as amended, and all laws, executive orders,
ordinances, resolutions, regulations, or parts thereof in conflict with the
provisions of this Act are repealed: Provided, however, That nothing
contained in this Act shall be construed as limiting or superseding any
provision of the Public Service Act, as amended, with respect to the control
by the Public Service Commission of motor vehicles operating as public
service, nor shall any provision of this Act be construed as limiting or
abridging the powers conferred upon and exercised by the Public Service
Commission with regards to the control and supervision of the operation
of such motor vehicles as public service.
SEC. 64. Appropriation. – To carry out effectively the provisions of

this Act, the amount of two hundred fifty thousand pesos is hereby
appropriated out of the fees collected under this Act, in addition to the
appropriations provided in the General Appropriations Act, for the expense
of this Commission for the fiscal year beginning July first, nineteen hundred
and sixty-four, to June thirtieth, nineteen hundred and sixty-five: Provided,
however, That any savings in the appropriations of the Motor Vehicles Office
for the fiscal year beginning July first, nineteen hundred and sixty-three, to
June thirtieth, nineteen hundred and sixty-four shall likewise be available
for this purpose.
SEC. 65. Separability. – If any provision of this Act or the application

thereof to any person or circumstance is held invalid, the remainder of the
Act, and the application of such provision to other persons or circumstances,
shall not be affected thereby.
SEC. 66. Effectivity. – This Act shall take effect upon its approval.
802
AN ACT TO AMEND SECTION TWO OF REPUBLIC ACT NUMBERED

FOURTEEN HUNDRED AND SEVEN, ENTITLED “AN ACT TO
BE KNOWN AS ‘THE PHILIPPINE OVERSEAS SHIPPING ACT
OF NINETEEN HUNDRED AND FIFTY-FIVE’’’

SECTION 1. Section two of Republic Act Numbered Fourteen

hundred and seven is amended to read as follows:
“SEC. 2. In pursuance of the above-declared policy any citizen of

the Philippines, or any association or corporation organized under the laws
of the Philippines, at least sixty per cent of the capital of which is owned
by citizens of the Philippines, engaged or which shall engage exclusively
in the overseas shipping business, or in the construction of modern boats
for overseas service shall be exempt from the payment of income tax on
income derived from his or its overseas shipping business for a period of
ten years from the date of approval of this Act and for another five years
after the expiration of said period, provided that all those who avail
themselves of the loan assistance in this Act shall invest all net profits
realized during that period in the construction, purchase, or acquisition of
additional vessels and equipment and/or in the improvement of its vessels
and equipment.”
803
AN ACT GRANTING A FRANCHISE TO FILIPINAS ORIENT

AIRWAYS, INCORPORATED, TO ESTABLISH AND MAINTAIN
AIR TRANSPORT SERVICE IN THE PHILIPPINES AND

SECTION 1. There is hereby granted to Filipinas Orient Airways,

Incorporated, hereinafter called the grantee, a franchise to establish, operate
and maintain transport services for the carriage of passengers, mail,
industrial flights and cargo by air in and between any and all points and
places throughout the Philippines and other countries.
SEC. 2. Excepting cases of force majeure and whenever weather

conditions permit, the grantee shall maintain scheduled or non-scheduled
air transport services in and between any and all points and places throughout
the Philippines as well as between the Philippines and other countries at
such frequencies as traffic needs may require
SEC. 3. The grantee shall fix just, reasonable and uniform rates for
the transportation of passengers and freight, subject to the regulations and
approval of the Civil Aeronautics Board or such other regulatory agency as
the Government may designate for this purpose. Any order of the Civil
Aeronautics Board made under this section shall be subject to review by
the courts.
All aircraft used by the grantee and the flight crew members operating
such aircraft shall be licensed by the Government of the Philippines and,
together with its accessories and equipment, shall at all times be in airworthy
condition; it shall be equipped with radio communications, safety and other
equipment and shall be operated and maintained in accordance with the
regulations and technical requirements of the Civil Aeronautics
Administration or of such other regulatory body as the Government may
prescribe for this purpose.
804
The grantee’s equipment and the operation of such equipment shall

at all times be subject to inspection and regulation by the Civil Aeronautics
Administration whose decisions on technical matters shall be binding until
revoked or annulled by the Department Head under whose control this
office falls or by the courts for excess or abuses of jurisdiction.
The grantee shall comply with the provisions of Republic Act

Numbered Seven hundred and seventy-six and the regulations promulgated
thereunder from time to time.
SEC. 4. Subject to such terms and conditions as the Philippine

Government may prescribe, the grantee may use such landing and
replenishment facilities on land or water as may be maintained or owned
by the Government within the Philippines on the grantee’s lines, excepting
those which, in the opinion of said Government, may not be used by the
grantee because of military or naval considerations, and, reciprocally, the
Philippine Government shall have the right to use the landing and
replenishment facilities on land or water maintained or owned by the grantee
in the Philippines.
SEC. 5. The grantee shall have the right at its terminals and landing
fields, as well as in its aircraft, to construct, operate and maintain stations
or transmitting sets for wireless telegraphy and direction finding, and other
radio aids to air navigation, using such wave lengths as shall be in accordance
with the rules and regulations made’ from time to time by the Philippine
Government; but the wireless communication facilities shall be used solely
for receiving and transmitting weather forecasts and, messages relating to
the grantee’s aircraft and other matters in connection with the grantee’s
service.
SEC. 6. The grantee is authorized to enter into transportation contracts

with the Philippine Government, including, the carrying of mail, upon terms
and conditions to be mutually agreed upon. The grantee shall give
preferential consideration to contracts with the Philippine Government.
The grantee may likewise enter into transportation maintenance and/or
servicing contracts, and such other contracts relating to air transport with
805
other foreign-owned airlines particularly with those who have international

routes.
SEC. 7. In case of war, insurrection, domestic trouble, public calamity

or national emergency, the Philippine Government, upon order of the
President, shall, have the right to take over and operate the equipment of
the grantee, paying for its use or damages.
SEC. 8. The grantee shall be subject to the laws of the Philippines

now existing or hereafter enacted.
SEC. 9. With the approval of the Chief Executive of the Philippine

Government and subject to the limitations and procedure prescribed by
law, the grantee shall be authorized to exercise the right of eminent domain
as may be reasonably necessary for its stations, landing fields, hangars,
docks, ramps, wireless stations and other structures in connection with the
grantee’s activities.
No private property shall be taken for any purpose by the grantee

without proper condemnation proceedings and just compensation paid or
tendered therefor, and any authority to take and occupy land contained
herein shall not apply to the taking, use or occupation of any land except
such as is required for the actual purpose for which this franchise is granted.”
SEC. 10. It shall be unlawful for the grantee to use, employ or contract
for the labor of persons held in involuntary servitude.
SEC. 11. The grantee shall hold the national, provincial and municipal
governments of the Philippines, harmless from all claims, accounts,
demands, or actions arising out accidents or injuries, whether to property
or to persons, caused by the operation of the service under the franchise
hereby granted.
SEC. 12. In consideration of the franchise and rights hereby granted,

the grantee shall pay to the National Government during the life of this
franchise a tax of two per cent of the gross revenue or gross earnings derived
by the grantee from its operation under this franchise. Such tax shall be
806
payable quarterly and shall be in lieu of all taxes of any kind, nature or
description, levied, established or collected by any municipa1, provincial
or national authority: Provided, That if, after the audit of the accounts of
the grantee by the Commissioner of Internal Revenue, a deficiency tax is
shown to be due, the deficiency tax shall be payable within ten days from
the receipt of the assessment. The grantee shall pay the tax on its real
property in conformity with existing law.
SEC. 13. The grantee shall keep an account of the gross receipts,
revenues or earnings of the business transacted by it and shall furnish the
Commissioner of Internal Revenue a quarterly report of such gross receipts,
revenues or ,earnings during the month next following the close of the
quarter. For the purpose of verification of gross receipts, revenues or
earnings and for assessment of the franchise tax due on such gross receipts,
revenues or earnings as rendered to the Commissioner of Internal Revenue,
all the books and accounts of the grantee shall be kept in the Philippines,
and shall be subject to inspection by the Commissioner of Internal Revenue
or his authorized representatives. The audit and approval of such accounts
by the Commissioner of Internal Revenue shall be final and conclusive as
to the determination of the amount of said gross receipts, revenues or
earnings except that the grantee shall have the right to appeal to the courts
of the Republic of the Philippines in the manner provided for by laws of
the Republic of the Philippines.
The words “gross receipts,” “revenue,” and “earnings” are herein

defined as the total receipts obtained from transportation services or
revenues derived from other services or earnings realized from the
disposition of equipment by the grantee through its operation under this
franchise.
SEC. 14. This franchise is granted with the understanding that the
grantee is a corporation sixty per cent of the capital stock of which is the
bona fide property of citizens of the Philippines and that the interest of
such citizens in its capital stock or in the capital of the Company with
which it may merge shall at no time be allowed to fall below such percentage,
under the penalty of the cancellation of this franchise.
807
SEC. 15. This franchise shall not be interpreted to mean an exclusive

grant of the privileges herein provide for.
SEC. 16. This franchise is granted with the understanding that it

shall be subject to amendment, alteration, or repeal by the Congress of the
Philippines.
SEC. 17. The term of the franchise shall be fifty years from the date
of the acceptance of this Act by the grantee.
SEC. 18. This franchise shall not be valid unless the grantee accepts
the same within two years after its approval, filing such acceptance in writing
with the Civil Aeronautics Board.
SEC. 19. The grantee shall execute a bond of twenty thousand pesos
in favor of the Philippine Government, in form and with sureties satisfactory
to the Civil Aeronautics Board, conditioned upon the establishment and
operation of any of the lines which the grantee may decide to operate within
one year from the acceptance of this franchise. If the grantee shall fail to
execute such bond and commences operation within the term mentioned,
the franchise shall be ipso facto cancelled. After a year of satisfactory
operation, the bond therefor shall be cancelled by the Civil Aeronautics
Board.
SEC. 20. The grantee shall not, without the previous approval of the.
Congress of the Philippines, lease, transfer, grant the usufruct of, sell or
assign this franchise and the rights and privileges acquired thereunder to
any person, firm, company, corporation or other mercantile or legal entity,
nor merge with any other company or corporation organized for the same
or any other purpose. Any corporation to which this franchise may be sold,
transferred or assigned or with which the grantee may merge with the
approval above-mentioned, shall be subject to the corporation laws of the
Philippines now existing or hereafter enacted, and any person, firm,
company, corporation or other commercial or legal entity to which this
franchise may be validly sold, transferred or assigned or with which the
grantee may merge, shall be subject to all the conditions, terms, restrictions
808
and limitations of this franchise as fully and completely and to the same
extent as if the franchise had been originally granted to the same person,
firm, company, corporation or other commercial or legal entity.
The abandonment by the grantee for one year of any of the lines
covered by this franchise shall give rise to the cancellation of the franchise
as regards to the line so abandoned upon judicial proceedings instituted by
the Secretary of Commerce and Industry.
SEC. 21. If the grantee should commit any substantial violation of

any provision of this Act, it shall forfeit all its privileges, franchises and
grants to engage in business in the Philippines upon an action or proceeding
instituted for said purpose in any competent court by any officer of the
Philippine Government, or by virtue of a complaint filed by any Philippine
citizen, in conformity with such rules and regulations as the Congress of
the Philippines may prescribe, and it shall, besides, be deemed guilty of a
violation of the law and shall be punished by a fine of not more than twenty
thousand pesos, in proceedings identical with those provided for ordinary
civil cases.
SEC. 22. The planes or aircraft of the grantee used for international
flights shall be considered national flag carriers of the Philippine
Government.
SEC. 23. Upon the termination of this franchise by repeal, forfeiture,

annulment or expiration in due course, all public land and other property
and the right to occupy and use the same granted to the grantee shall revert
to the Philippine Government; and all real property of the grantee not
disposed of within two years after the termination of this franchise shall
likewise revert to said Government.
809
AN ACT APPROPRIATING FUNDS FOR THE OPERATION AND

MAINTENANCE OF AIRPORTS AND AIR NAVIGATION
FACILITIES

SECTION 1. The following sums, or so much thereof as may be

necessary, are appropriated, out of any funds in the National Treasury not
otherwise appropriated, for the purposes mentioned hereunder:
(a) For the operation, maintenance and repair of airports, buildings

and outside installations therein, including the purchase of necessary
materials and supplies.
1. Manila ....................................................... P 400,000.00
2. Alabat ........................................................ 5,000.00
3. Allah Valley ............................................... 10,000.00
4. Aparri ........................................................ 10,000.00
5. Bacolod ..................................................... 50,000.00
6. Bagabag ..................................................... 6,000.00
7. Baguio ....................................................... 40,000.00
8. Baler .......................................................... 15,000.00
9. Barobe ....................................................... 7,000.00
10. Bancasi .................................................... 30,000.00
810
11. Basco ....................................................... 10,000.00
12. Buayan .................................................... 10,000.00
13. Bulan ....................................................... 4,000.00
14. Cagayan de Oro ....................................... 50,000.00
15. Calapan ................................................... 10,000.00
16. Calbayog ................................................. 15,000.00
17. Camiguin ................................................. 6,000.00
18. Catarman ................................................. 6,000.00
19. Castillejos................................................ 7,000.00
20. Cauayan ................................................... 10,000.00
21. Corregidor ............................................... 8,000.00
22. Cotabato .................................................. 40,000.00
23. Cebu (Lahug) .......................................... 100,000.00
24. Daet ......................................................... 40,000.00
25. Davao ...................................................... 50,000.00
26. Dipolog ................................................... 15,000.00
27. Dumaguete .............................................. 40,000.00
28. Guiuanan ................................................. 7,000.00
29. Hilongos .................................................. 10,000.00
811
30. Iba ............................................................ 5,000.00
31. Iloilo ........................................................ 50,000.00
32. Jolo .......................................................... 15,000.00
33. Jomalig .................................................... 8,000.00
34. Kalibo ...................................................... 30,000.00
35. Kiamba .................................................... 5,000.00
36. Laoag ....................................................... 30,000.00
37. Legazpi .................................................... 50,000.00
38. Liloy ........................................................ 6,000.00
39. Lingayen.................................................. 5,000.00
40. Lubang .................................................... 10,000.00
41. Lucena ..................................................... 5,000.00
42. Malabang ................................................. 10,000.00
43. Malaybalay .............................................. 8,000.00
44. Mamburao ............................................... 15,000.00
45. Marinduque ............................................. 10,000.00
46. Maria Cristina ......................................... 30,000.00
47. Masbate ................................................... 10,000.00
48. Misamis ................................................... 20,000.00
812
49. Naga ........................................................ 30,000.00
50. Ormoc ...................................................... 7,000.00
51. Palanan .................................................... 7,000.00
52. Plaridel .................................................... 30,000.00
53. Puerto Princesa ....................................... 15,000.00
54. Romblon .................................................. 20,000.00
55. Rosales .................................................... 6,000.00
56. Rosario .................................................... 15,000.00
57. Roxas ....................................................... 30,000.00
58. San Fernando .......................................... 10,000.00
59. San Jose Buenavista ................................ 10,000.00
60. San Jose Mindoro ................................... 30,000.00
61. Sanga-Sanga ............................................ 5,000.00
62. Siargao .................................................... 10,000.00
63. Siocon ..................................................... 5,000.00
64. Siquijor .................................................... 7,000.00
65. Sorsogon ................................................. 15,000.00
66. Surigao .................................................... 30,000.00
67. Tacloban .................................................. 40,000.00
813
68. Tagbilaran ............................................... 40,000.00
69. Tandag ..................................................... 10,000.00
70. Tuguegarao .............................................. 10,000.00
71. Ubay ........................................................ 5,000.00
72. Vigan ....................................................... 5,000.00
73. Virac ........................................................ 10,000.00
74. Wasig ....................................................... 5,000.00
75. Zamboanga .............................................. 60,000.00
Total .............................................................. P 1,800,000.00
(b) For the operation, maintenance and repair of existing air navigation
facilities, including the purchase of necessary materials and supplies:
1. Manila Aeronautical Control Station ........ P 130,000.00
2. Manila Aeronautical Transmitting Station 150,000.00
3. Manila Receiving Station.......................... 37,000.00
4. Rosario NDB (Non Directional Beacon) .. 45,000.00
5. Antipolo NDB (Non Directional Beacon) 11,000.00
6. Lubang VOR (very high frequency

omnidirectional radio waves) Station ....... 50,000.00
7. Jomalig VOR (very high frequency

omnidirectional radio waves) .................. 50,000.00
814
8. Airways Engineering Shop ....................... 50,000.00
9. Training School ......................................... 10,000.00
10. Main Office ............................................. 150,000.00
11. Cabanatuan NDB (Non Directional

Beacon) ................................................... 16,000.00
12. Laoag Aeronautical Station ..................... 100,000.00
13. Legazpi Aeronautical Station .................. 25,000.00
14. Alabat NDB (Non Directional Beacon) .. 25,000.00
15. Romblon Aeronautical Station ................ 50,000.00
16. Virac Aeronautical Station ...................... 5,000.00
17. Cebu Aeronautical Station ...................... 125,000.00
18. Tacloban Aeronautical Station ................ 1,000.00
19. Tagbilaran Aeronautical Station ............. 5,000.00
20. Lumbia Aeronautical Station .................. 50,000.00
21. Davao VOR (very high frequency

omnidirectional radio waves) ................. 40,000.00
22. Zamboanga Aeronautical Station ............ 55,000.00
23. Baguio Aeronautical Station ................... 20,000.00
Total ................................ P 1,200,000.00
815
SEC. 2. The itemization of appropriation herein mentioned may be

transferred by the Administrator of the Civil Aeronautics Administration
upon approval of the Secretary of Public Works and Communications from
one airport to another in an amount not exceeding twenty per cent thereof.
816
AN ACT GRANTING ANGEL R. CABATINGAN A FRANCHISE TO

MAINTAIN AND OPERATE A FERRY SERVICE BETWEEN THE
MUNICIPALITY OF SANTA FE, PROVINCE OF CEBU, AND THE
BARRIO OF HAGNAYA IN THE MUNICIPALITY OF SAN
REMIGIO, SAME PROVINCE

SECTION 1. Subject to the provisions of Commonwealth Act

Numbered One hundred and forty-six, as amended, and to the provisions
of the Constitution, there is granted to Angel R. Cabatingan for a period of
twenty-five years from the approval of this Act, the right, privilege and
authority to maintain and operate a ferry service between the Municipality
of Santa Fe in the Province of Cebu and the barrio of Hagnaya in the
Municipality of San Remigio, same province.
SEC. 2. It is expressly provided that in the event the Government

should desire to maintain and operate for itself the service and enterprise
herein authorized, the grantee shall surrender his franchise and will turn
over to the Government all serviceable equipment therein, at cost, less
reasonable depreciation.
817
AN ACT GRANTING A FRANCHISE TO AIR MANILA,

INCORPORATED, TO ESTABLISH AND MAINTAIN AIR
TRANSPORT SERVICE IN THE PHILIPPINES AND BETWEEN
THE PHILIPPINES, AND OTHER COUNTRIES

SECTION 1. There is hereby granted to Air Manila, Incorporated, a

corporation duly created and existing under Philippine laws, and a holder
of a Civil Aeronautics Board permit to operate domestically on a commercial
basis, herein after called the grantee, a franchise to establish, operate and
maintain transport services for the carriage of passengers, mail, industrial
flights and cargo by air in and between, any and all points and places
throughout the Philippines and other countries.
SEC. 2. Except in cases of force majeure and whenever weather

air transport services in and between, any and all points and places
throughout the Philippines as well as the Philippines and other countries at
such frequencies as traffic needs may require.
SEC. 3. The grantee shall fix just and reasonable and uniform rates
for the transportation of passengers and freight, subject to the regulations
and approval of the Civil Aeronautics Board or such other regulatory
agencies as the Government may designate for this purpose. Any order of
the Civil Aeronautics Board made under this section shall be subject to
review by the courts.
All aircrafts used by the grantee and the flight crew members operating
such aircraft shall be licensed by the proper agencies of the Philippine
Government and together with the accessories and equipment, shall at all
times be airworthy; they shall be equipped with radio communications and
such other equipment which will insure the safety of the passengers and
818
cargo and shall be operated and maintained in accordance with regulations

and technical requirements of the Civil Aeronautics Administration or of
such other regulatory body as the Philippine Government may prescribe
for this purpose.

at all times be subject to inspection and regulation by the Civil Aeronautics
Administration, whose decisions on technical matters shall be binding until
revoked or annulled by the department head under whose control this office
falls or by the courts for excess or abuse of jurisdiction.

Numbered Seven hundred and seventy-six and the regulations promulgated

Government may prescribe, the grantee may use such landing and
replenishment facilities on land, water or air as may be maintained or owned
by the government within the Philippines on the grantee’s lines, excepting
those which, in the opinion of said government, may not be used by the
grantee because of military or naval considerations, and, reciprocally, the
Philippine Government shall have the right to use the landing and
replenishment facilities on land, water or air maintained or owned by the
grantee in the Philippines.
SEC. 5. The grantee shall have the right at its terminals, offices and
landing fields, as well as in its aircrafts, to construct, operate and maintain
stations or transmitting sets for wireless telegraphy and direction finding,
and other radio aids to air navigation, using such wave lengths as shall be
in accordance with the rules and regulations prescribed from time to time
by the Philippine Government; but the wireless communications facilities
shall be used solely for receiving and transmitting weather forecasts and
messages relating to the grantee’s aircraft and other matters in connection
with the grantee’s services.

with the Philippine Government, including the carrying of mail, upon terms
819
and conditions to be mutually agreed upon. The grantee shall give

The grantee may likewise enter into transportation, maintenance and/or
servicing contracts, and such other contracts relating to air transport with
other airlines, whether foreign or domestic, particularly with those having
international routes.
SEC. 7. In case of war, insurrection, or national emergency, the

Philippine Government, upon order of the President, shall have the right to
take over and operate the equipment of the grantee, as long as the emergency
exists, paying for its use or damages.
SEC. 8. The grantee shall be subject to the laws of the Philippines

now existing or hereafter enacted.
SEC. 9. With the approval of the Chief Executive of the Philippine

Government and subject to the limitations and procedures prescribed by
as may be reasonably necessary for its stations, landing fields, hangars,
docks, ramps, telephone and telegraph lines and wireless stations and other
structures in connection with the grantee’s activities. No private property
shall be taken for any purpose by the grantee without proper condemnation
proceedings and just compensation paid therefor, and any authority to take
and occupy land contained herein shall not apply to the taking, use or
occupation of any land except such as is required for the actual purpose for
which this franchise was granted.
SEC. 10. It shall be unlawful for the grantee to use, employ, or contract
for the services of persons held in involuntary servitude.
SEC. 11. The grantee shall hold the national, provincial, and municipal
governments of the Philippines harmless of all claims, accounts, demands
or actions arising out of accidents or injuries whether to property or to
persons, caused by the operation of the service under the franchise hereby
granted.
820

the grantee shall pay to the national government during the life of this
franchise, a tax of two per cent of the gross revenue or gross earnings
derived by the grantee from its operation under this franchise. Such tax
shall be payable quarterly and shall be in lieu of all taxes of any kind,
nature or description levied, established, or collected by any municipal or
city, provincial or national authority: Provided, That if, after the audit of
the .accounts of the grantee by the Commissioner of Internal Revenue, a
deficiency tax is shown to be due, the deficiency tax shall be payable within
ten days from the receipt of the assessment. The grantee shall pay the tax
on its real property in conformity with existing laws.
SEC. 13. The grantee shall keep an account of the gross receipts,
revenues or earnings of the business transacted by it and shall furnish the
Commissioner of Internal Revenue a quarterly report of such gross receipts,
revenues or earnings during the month next following the close of the
quarter. For the purpose of verification of gross receipts, revenues or
earnings and for assessment of the franchise tax due on such gross receipts,
revenues or earnings as rendered to the Commissioner of Internal Revenue,
all the books and accounts of the grantee shall be kept in the Philippines,
and shall be subject to inspection by the Commissioner of Internal Revenue
or his authorized representatives. The audit and approval of such accounts
by the Commissioner of Internal Revenue shall be final and conclusive as
to the determination of the amount of said gross receipts, revenues or
earnings, except that the grantee shall have the right to appeal to the courts
of the Republic of the Philippines in the manner provided for by laws of
the Republic of the Philippines. The words “gross receipts,” “revenues”
and “earnings” are herein defined as the total receipts obtained from
transportation services or revenues derived from other services or earnings
realized from the disposition of equipment by the grantee through its
operations under this franchise.
grantee is a corporation, sixty per cent of the capital stock of which is
owned or the bona fide property of citizens of the Philippines and that the
interest of such citizens in its capital stock or in the capital of the company
821
with which it may merge shall at no time be allowed to fall below such
percentage, under the penalty of the cancellation of this franchise.
SEC. 15. This franchise shall not be interpreted to mean an exclusive

grant of the privileges herein provided for.
SEC. 16. This franchise is subject to amendments, alterations or repeal

by the Congress of the Philippines, in accordance with the laws of the land.
SEC. 17. The term of the franchise shall be fifty years from the date
of approval of this Act.
SEC. 18. The grantee shall not, without the previous approval of the
Congress of the Philippines, lease, transfer, grant the use of, sell or assign
this franchise and the rights and privileges acquired thereunder to any
person, firm, company, corporation or other legal entity nor merge with
any other company or corporation organized for the same or any other
purposes.
Any corporation to which this franchise may be sold, transferred or

assigned or with which the grantee may merge with the approval above-
mentioned, shall be subject to the corporation laws of the Philippines now
existing or hereafter enacted; and any person, firm, company or commercial
or legal entity to which this franchise may be validly transferred or sold or
assigned shall be subject to all the conditions, terms, restrictions, and
limitations of this franchise, as fully and completely and to the same extent
as if the franchise had been originally granted to the same person, company,
firm, corporation, or other commercial or legal entity. The abandonment
by the grantee for one year of any of the lines covered or all of the lines, by
this franchise shall give rise to the cancellation of the franchise as regard
the line so abandoned upon judicial proceeding instituted by the Secretary
of Commerce and Industry.
SEC. 19. If the grantee should commit any substantial violation of

any provision of this Act, it shall forfeit all its privileges, franchises and
grants to engage in business in the Philippines upon an action or proceeding
822
instituted for such purpose in any competent court by any officer of the
Philippine Government or by virtue of a complaint filed by any Philippine
citizen, in conformity with such rules and regulations as the Congress of
the Philippines may prescribe, and it shall, besides, be deemed guilty of a
violation of the law and shall be punished by a fine of not more than twenty
thousand pesos, in proceedings identical with those provided for ordinary
civil cases.
SEC. 20. Upon termination of this franchise by repeal, forfeiture,

annulment or expiration in due course, all public land and the right to occupy
and use the same granted to grantee shall revert to the Philippine
Government; and all real properties of the grantee not disposed of within
two years after the termination of this franchise shall likewise revert to
said government.
823
AN ACT GRANTING PHILIPPINE PRESIDENT LINES, INC., A

CORPORATION ENGAGED EXCLUSIVELY IN THE OVERSEAS
SHIPPING BUSINESS, A TEMPORARY PERMIT TO
CONSTRUCT, ESTABLISH, MAINTAIN AND OPERATE
PRIVATE FIXED POINT-TO-POINT AND PRIVATE COASTAL
RADIO STATIONS, MOBILE LAND, SEA AND AIR RADIO

SECTION 1. There is hereby granted to Philippine President Lines,

Inc., a corporation engaged exclusively in the overseas shipping business,
its successors and assigns, a temporary permit to construct, establish,
maintain and operate in the Philippines, at such places as said grantee may
select subject to the approval of the Secretary of Public Works and
Communications, private fixed point-to-point and private coastal radio
stations, mobile land stations, mobile sea stations and mobile air stations
as well as point-to-point field stations for communications from point-to-
point ground, land point to mobile air, land or sea, mobile air to air, sea or
land, mobile sea to air, sea or land and ships of the grantee for the reception
and transmission of wireless messages on radiotelegraph, radiotelephone,
radio teletype or such other types of emissions as may, in the future, be
made possible which may include corresponding relay stations as are or
may be necessary, each station to be provided with a radio transmitting
apparatus and a radio receiving apparatus. Said grantee is authorized to
use any combination of these facilities for the efficiency and safety of its
operations.
private coastal radio stations, mobile land stations, mobile sea stations and
mobile air stations as well as point-to-point field stations for
824
communications from point-to-point ground, land point to mobile air, land

or sea, mobile air to air, sea or land, mobile sea to air, sea or land and ships
of the grantee or any of them on lands of the public domain upon such
SEC. 3. This temporary permit shall exist and continue while the
overseas shipping business continues to be in operation by the grantee and
is granted upon the express condition that the same shall be void unless the
construction of said stations be begun within two years from the date of
approval of this Act and completed within four years from said date.
SEC. 4. A special right is reserved to the President of the Philippines

in time of war, rebellion, public peril, calamity, disaster or disturbance of
peace and order, to cause the closing of said stations or to authorize the
temporary use and operation thereof by any department of the Government
upon payment of just compensation to the grantee for the use of said stations
during the period when they shall be so operated.
SEC. 5. This temporary permit shall not take effect until the Secretary
of Public Works and Communications shall have allotted to the grantee the
frequencies and wave lengths to be used thereunder, but the grantee, its
successors or assigns, may use the international distress frequency of five
hundred kilocycles and high distress frequency of eight thousand two
hundred eighty kilocycles whenever necessary.

domestic business of telecommunications in the Philippines without further
special assent of the Congress of the Philippines, it being understood that
the purpose of this temporary permit is to secure to the grantee the right to
construct, establish, maintain and operate private fixed point-to-point and
private coastal radio stations, mobile land stations, mobile sea stations,
mobile air stations, and communications from point-to-point ground, land
point to mobile air, land or sea, mobile air to air, sea or land, mobile sea to
air, sea or land and ships of the grantee within the Philippines as the interest
of the company and its trade and business may justify.
825
SEC. 7. No fees are chargeable, as the radio stations that may be

established by virtue of this Act shall engage in communications regarding
the grantee’s business only.
SEC. 8. The grantee, its successors and assigns, shall so construct

and operate its radio stations as not to interfere with the operation of other
SEC. 9. The grantee, its successors and assigns, shall hold the national,
provincial and municipal governments of the Philippines harmless from all
claims, accounts, demands or actions arising out of accidents or injuries,
whether to property or to persons, caused by the construction or operation
of its radio stations.
SEC. 10. The grantee, its successors and assigns, shall be subject to
the corporation laws of the Philippines now or hereafter existing.

alteration or repeal by the Congress of the Philippines when the public
826
AN ACT GRANTING CESAR T. ROSALES A FRANCHISE TO

ESTABLISH, MAINTAIN AND OPERATE A HYDROFOIL AND/
OR SHIP FERRY SERVICE FOR PASSENGERS AND FREIGHT
LINKING THE PROVINCES AND ISLANDS OF LUZON,
MARINDUQUE, MINDORO, MASBATE, ROMBLON AND
PANAY


to Cesar T. Rosales, for a period of twenty-five years from the approval of
this Act, the right, privilege and authority to establish, maintain and operate
a hydrofoil and/or ship ferry service for passengers and freight linking the
provinces and islands of Luzon, Marinduque, Mindoro, Masbate, Romblon,
and Panay, and to establish a schedule of rates therefor, which shall at all
times be subject to regulation by the Public Service Commission: Provided,
That this franchise shall be null and void unless the grantee, within one
year from the date of the approval of this Act, files with the Public Service
Commission his acceptance of the terms and conditions stipulated in this
Act.
SEC. 2. Within one year after the acceptance of the franchise granted
hereunder and in accordance with the conditions herein stipulated, the
grantee shall put in operation an adequate and efficient hydrofoil and/or
shipping ferry service linking the provinces mentioned in the preceding
section. The hydrofoils and/or ferryboats operated by the grantee and the
equipment thereof shall meet the requirements prescribed by the Public
Service Commission, and the grantee, whenever the Public Service
Commission has determined that public interest reasonably requires it, shall
change or improve any of said hydrofoils or ferryboats or the equipment
thereof at his expense.
827
SEC. 3. The grantee binds himself to provide in his hydrofoils or

ferryboats a suitable and adequate place for the mail and shall carry them
in the manner stipulated between the Postmaster General 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 mail shall be carried, the Public Service Commission
shall fix the manner of, and compensation for, carrying said mail, after
hearing and considering the arguments of the said Postmaster General and
grantee: Provided, That in case the Government requires the transportation
of troops, ammunition or funds for the public good, the grantee shall receive
a reasonable compensation for such service.
be open to the inspection of the City Treasurer of Lucena City or his
authorized representative, and it shall be the duty of the grantee to submit
to the National Treasurer quarterly reports in duplicate showing the gross
receipts for passengers and freight for the past quarter and the general
condition of the business, one of which shall be forwarded by the National
property, building, and personal property as other persons or corporations
SEC. 6. The grantee, upon prior approval of the Congress of the

Philippines, may sell, lease, grant, convey, assign, give in usufruct, or
transfer this franchise and all property and rights acquired thereunder to
any individual, copartnership, private, public or quasi-public association,
shall have been obtained, until there shall have been filed with the Public
Service Commission an agreement in writing by which the individual, co-
partnership, private, public or quasi-public association, corporation, or joint-
828
stock company in whose favor such sale, lease, grant, conveyance,

assignment, gift in usufruct, or transfer is made, shall be firmly bound to
comply with all the terms and conditions imposed upon the grantee by the
franchise and to accept the same, subject to all existing terms and conditions.
SEC. 7. The Public Service Commission shall have the power after a
reasonable written notice to the grantee and a hearing of the interested
terms and conditions hereof unless such failure shall have been directly
or other causes beyond the grantee’s control. Against such declaration of


shall be held and understood to mean and represent Cesar T. Rosales, his
representative, successors or assigns.

privilege herein provided.
829
AN ACT GRANTING JOPANE FERRY A FRANCHISE TO ESTABLISH,

MAINTAIN AND OPERATE A FERRY SERVICE FOR
PASSENGER AND FREIGHT VEHICLES FROM ANY POINT IN
THE SUBPROVINCE OF CAMIGUIN TO THE MUNICIPALITY
OF BALINGO-AN IN THE PROVINCE OF MISAMIS ORIENTAL
AND THE CITIES OF GINGOOG AND CAGAYAN DE ORO AND
VICE VERSA BETWEEN ANY OTHER FOCAL POINTS OF
TRADE AND TRANSHIPMENT


to the Jopane Ferry for a period of twenty-five years from the approval of
this Act, the right, privilege and authority to establish, maintain and operate
a ferry service for passengers, freight and vehicles from any point in the
Subprovince of Camiguin to the Municipality of Balingo-an in the Province
of Misamis Oriental and the cities of Gingoog and Cagayan de Oro and
vice versa between any other focal points of trade and transhipment, and to
regulation by the Public Service Commission: Provided, That this franchise
shall be null and void unless the grantee, within two years from the date of
the approval of this Act, files with the Public Service Commission its
SEC. 2. Within two years after the acceptance of the franchise granted
grantee shall put in operation an adequate and efficient ferry service between
the municipalities and the islands mentioned in the preceding section. The
ferryboats to be operated by the grantee and the equipment thereof must
the grantee, whenever the Public Service Commission shall determine that
830
public interest reasonably requires it, shall change or improve any of said
ferryboats or the equipment thereof at its expense.
SEC. 3. The grantee binds itself to provide in its ferryboats a suitable

the manner of, and compensation for, carrying said mails after hearing and
considering the arguments of the Postmaster General and the grantee:
such service.
SEC. 4. The grantee shall be liable to pay the same taxes on its real
SEC. 5. The grantee may sell, lease, grant, convey, assign, give in
usufruct, or transfer this franchise and all properties and rights acquired
thereunder to any individual, co-partnership, private, public or quasi-public
association, corporation or joint-stock company competent to operate the
business hereby authorized, but transfer of title to the franchise or any
right of ownership or interest acquired under such sale, lease, grant,
conveyance, assignment, gift in usufruct, or transfer shall not be effective,
even after such approval shall have been obtained, until there shall have
been filed in the office of the Public Service Commission an agreement in
writing by which the individual, copartnership, private, public or quasi-
public association, corporation or joint-stock company in whose favor such
sale, lease, grant, conveyance, assignment, gift in usufruct or transfer is
made, shall be firmly bound to comply with all the terms and conditions
831
imposed upon the grantee by this franchise and to accept the same, subject
to all existing terms and conditions.

shall be held and understood to mean and represent the Jopane Ferry, its

832
AN ACT CREATING THE OFFICE OF HEALTH SERVICES IN THE

LAND TRANSPORTATION COMMISSION AND AUTHORIZING
THE APPROPRIATION OF THE NECESSARY FUNDS
THEREFOR

SECTION 1. There is hereby created the Office of Health Services

in the Land Transportation Commission, which shall be under the
supervision and control of the Commissioner. The technical management,
operation and over-all control and supervision of said office shall be under
the Chief, Medical Division IV, to be appointed by the Secretary of Public
Works and Communications. The Chief, Medical Division IV, shall receive
an annual compensation of ten thousand seven hundred and seventy-six
pesos. He shall be assisted by such other personnel as may be necessary,
likewise to be appointed by the Secretary of Public Works and
Communication, to carry out the duties pertaining to said Office.
SEC. 2. The sum of seventy-three thousand pesos, or so much thereof

as may be necessary, is hereby authorized to be appropriated, out of any
funds in the National Treasury not otherwise appropriated, to carry out the
purpose of this Act. Thereafter, the necessary sum as may be needed for the
same purpose shall be included in the annual General Appropriations Act.
833
AN ACT GRANTING ALEX REYES, JR. AND CO., A TEMPORARY

PERMIT TO ESTABLISH, MAINTAIN AND OPERATE PRIVATE
FIXED POINT-TO-POINT AND PRIVATE COASTAL RADIO
STATIONS, MOBILE LAND STATIONS, MOBILE SEA
STATIONS AND MOBILE AIR STATIONS AS WELL AS POINT-
TO-POINT FIELD STATIONS FOR COMMUNICATIONS FROM
POINT-TO-POINT GROUND, LAND POINT TO MOBILE AIR,
LAND OR SEA, MOBILE AIR TO AIR, SEA OR LAND, MOBILE
SEA TO AIR, SEA OR LAND FOR THE RECEPTION AND
TRANSMISSION OF RADIO COMMUNICATIONS WITHIN THE
PHILIPPINES

SECTION 1. There is hereby granted to Alex Reyes, Jr., and Co., a

temporary permit to establish, maintain and operate in the Philippines, at
such places as the said company may select, subject to the approval of the
Secretary of Public Works and Communications, private fixed point-to-
point and private coastal radio stations, mobile land stations, mobile sea
stations and mobile air stations as well as point-to-point field stations for
communications from point-to-point ground, land point to mobile air, land
or sea, mobile air to air, sea or land, mobile sea to air, sea or land for the
reception and transmission of wireless messages on radiotelegraphy or
radiotelephony, each station to be provided with a radio transmitting
apparatus and a radio receiving apparatus.

places selected by the grantee, but not exceeding twenty-five years, and is
granted upon the express condition that the same shall be void unless the
construction or installation of said stations be begun within two years from
the date of approval of this Act and be completed within five years from
said date.
834

domestic business of telecommunications in the Philippines without further
special assent of the Congress of the Philippines, it being understood that
the purpose of this temporary permit is to secure to the grantee the right to
establish, maintain and operate private radio stations in such places within
the Philippines as the interest of the grantee may justify.

SEC. 5. The grantee, its successors or assigns, shall so construct and

operate its radio stations as not to interfere with the operations of other
municipal governments harmless from all claims, accounts, demands, or
actions arising out of accidents or injuries, whether to property or to persons,
caused by the construction or operation of its radio stations.

Philippines now existing or hereafter enacted.
SEC. 8. The grantee is authorized to operate its private radio stations

in the medium frequency, high frequency, and very high frequency that
may be assigned to it by the Secretary of Public Works and Communications.
sell or assign this temporary permit, nor the rights or privileges acquired
thereunder to any person, firm, company, corporation or other commercial
or legal entity, nor merge with any other person, company or corporation
organized for the same purpose, without the approval of the Congress of
the Philippines first had. Any corporation to which this temporary permit
may be sold, transferred, or assigned, shall be subject to the corporation
laws of the Philippines now existing or hereafter enacted, and any person,
firm, company, corporation or other commercial or legal entity to which
835
this temporary permit is sol, transferred, or assigned shall be subject to all

conditions, terms, restrictions and limitations of this temporary permit as
fully and completely and to the same extent as if the temporary permit had
been originally granted to the said person, firm, company, corporation or
other commercial or legal entity.

Philippines in time of war, insurrection, public peril, emergency, calamity
or disaster to cause the closing of the grantee’s radio stations or to authorize
the temporary use or possession thereof by any department of the
Government upon payment of just compensation.

836
AN ACT GRANTING ALDYMAC, INC., A FRANCHISE TO

ESTABLISH AND OPERATE FERRY SERVICES BETWEEN THE
MUNICIPALITY OF VIRAC, PROVINCE OF CATANDUANES,
AND LEGAZPI CITY BETWEEN THE MUNICIPALITY OF
ALLEN, PROVINCE OF SAMAR, AND THE CITY OF LEGAZPI
BETWEEN THE MUNICIPALITY OF MASBATE, PROVINCE OF
MASBATE, AND THE CITY OF LEGAZPI AND BETWEEN THE
MUNICIPALITY OF MASBATE, PROVINCE OF MASBATE, AND
THE MUNICIPALITY OF SORSOGON, PROVINCE OF
SORSOGON


to Aldymac, Inc., for a period of twenty-five years from the approval of
this Act, the right, privilege and authority to establish and operate ferry
services for passengers and freight between the Municipality of Virac,
Province of Catanduanes, and Legazpi City; between the Municipality of
Allen, Province of Samar, and the City of Legazpi; between the Municipality
of Masbate, Province of Masbate, and the City of Legazpi; and between
the Municipality of Masbate, Province of Masbate, and the Municipality
of Sorsogon, Province of Sorsogon, and to establish a schedule of rates
therefor, which shall at all times be subject to regulation by the Public
Service Commission: 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 Public Service Commission his acceptance of the terms
and conditions stipulated in this Act.

the grantee shall put in operation an adequate and efficient ferry services
between the city and the municipalities mentioned in the preceding section.
837
ferryboats or the equipment thereof at grantee’s expense.
SEC. 3. The grantee binds himself to provide the ferryboats a suitable

be open to the inspection of the Auditor General or his authorized
representatives, and it shall be the duty of the grantee to submit to the
Auditor General quarterly reports in duplicate showing the gross receipts
for passengers and freight for the quarter past and the general condition of
the business, one of which shall be forwarded by the Auditor General to
the National Treasurer, who shall keep the same on file.
property, buildings, and personal property as other persons or corporations

Philippines first had may sell, lease, grant, convey, assign, give in usufruct,
838

shall have been obtained until there shall have been filed in the Public
partnership, private, public or quasi-public association, corporation or joint-
comply with all the terms and conditions imposed upon the grantee by this
terms and conditions hereof, unless such failure shall have been directly
and primarily caused by an act of God, or force majeure, usurped right,
uprising or other cause beyond the grantee’s’ control. Against such
declaration of forfeiture by the Public Service Commission the grantee
may apply for the remedies provided in Sections thirty-four and thirty-six
of the Public Service Act. The remedy provided herein shall not be a bar to
any other remedy provided by existing laws for the forfeiture of this
franchise.

839
AN ACT GRANTING THE PHILIPPINE MONORAIL TRANSIT

SYSTEM, INCORPORATED A FRANCHISE TO ESTABLISH,
MAINTAIN AND OPERATE A MONORAIL TRANSPORTATION
SERVICE IN THE CITY OF MANILA AND SUBURBS AND CEBU
CITY AND PROVINCE
Be it enacted by the Senate and Hou.se of Representatives of the Philippines


provisions of Commonwealth Act Numbered One hundred and forty-six,
as amended, and of the Constitution, there is hereby granted to the Philippine
Monorail Transit System, Incorporated, hereinafter called the grantee, its
successors or assigns, for a period of fifty years from the approval of this
Act, the right, privilege and authority to establish, maintain and operate a
monorail transportation service for the carriage of passengers and freight
in the City of Manila and suburbs and Cebu City and province.
SEC. 2. For the purposes of the monorail transportation service

intended in this Act, the grantee hereby binds itself to use equipment,
apparatuses, structures ‘and appurtenances that are modern, safe and first
class in every respect; and the monorail transportation service, together
with requisite installations, shall be maintained at all times in a satisfactory
manner so as to be adequate, convenient, efficient and economical. It shall
be the further duty of the grantee, its successors or assigns, to modify,
improve and change the monorail transportation service in such manner
and to such extent as the progress of science, technology and the public
need may make reasonable and proper: Provided, That the plans and
specifications shall be approved by the city and municipal authorities
concerned, the Commissioner of Public Highways and the Secretary of
Public Works and Communications.
SEC. 3. In the event that the grantee fails to commence construction

of the monorail transportation service contemplated in this Act within three
840
years nor commence operation of the service within five years from the
approval of this Act, this franchise shall be null and void unless prevented
by fortuitous cause or force majeure, martial law, riot, civil commotion,
usurpation by a military power, or any other reasonable cause beyond the
grantee’s control: Provided, however, That all the time during which the
grantee, its successors or assigns may be prevented from carrying out the
terms and conditions of this franchise shall be added to the time allowed
by this franchise for compliance with its provisions.
SEC. 4. Within sixty days after the approval of this Act, the grantee
shall file with the Treasurer of the Philippines a bond in the amount of fifty
thousand pesos as an earnest of good faith and a guarantee for full
compliance and fulfilment of the terms and conditions under which this
franchise is granted.
SEC. 5. The grantee shall have the right, privilege and authority to
install, lay, and maintain in, along, under and over all suitable public streets,
traffic islands, sidewalks, thoroughfares and highways, provincial roads,
streams and other bodies of water; bridges and public squares within the
City of Manila and its suburbs and Cebu City and province all such
equipment, apparatuses, structures and appurtenances as may be necessary
and best adapted for the monorail transportation service intended in this
Act: Provided, That the plans and specifications shall be approved by the
city, province, and municipal authorities concerned, the Commissioner of
Public Highways and the Secretary of Public Works and Communications:
Provided, further, That the grantee shall indemnify any person or corporation
for any loss or damage caused to the property of said person or corporation.
The supporting and allied structures to be erected by the grantee shall be of
such appearance as not to disfigure the streets, and shall be placed or
installed with due regard for public safety: Provided, That the grantee shall
be allowed to render only long run or express services.
SEC. 6. Subject to the requirements of existing laws, the grantee is

hereby obliged to install, maintain, operate, purchase or lease for the
monorail cars and station such telephone, radio, or other communication
841
systems or devices as are or may be essential or convenient to efficiently

carry out the purposes of this franchise.
sell or assign this franchise, nor any rights and privileges acquired thereunder
to any individual, company or corporation, nor merge with any other
individual, company or corporation. The grantee also shall not sell any
share of its capital stock to any person other than the incorporators thereof,
before the completion and approval of the feasibility survey of this project.
SEC: 8. In the event of any competing individual, company or corporation,

receiving from Congress a similar franchise in which there shall be any
term or condition more favorable than anyone herein granted, then such
term or condition shall ipso facto become part of the terms or conditions
hereof, and shall operate equally in favor of the grantee as in the case of
said competing individual, company or corporation.
property, buildings and personal property, exclusive, of this franchise, as
other persons or corporations are now or hereafter may be required by law
to pay. In addition, the grantee, its successors or assigns, shall render a
report of its gross receipts, revenues or earnings from the use and operation
of the franchise during each calendar quarter, and shall pay within the month
immediately following all the taxes imposed by the existing laws on similar
public utilities.
SEC. 10. The grantee shall keep books, records and accounts as are
generally required by law of holders of franchise. Such books, records and
accounts of the grantee shall be open to inspection by the Commissioner of
Internal Revenue and/or other authorized representative of the Government.
SEC. 11. A special right is reserved to the President of the Philippines

in time of war, rebellion, public peril, or other national emergency, when
public safety so requires, to cause the closing of the monorail transportation
service, or to authorize the use and operation thereof by any department of
842
the Government without compensation to the grantee for the use of said
monorail transportation service other than the actual cost of such use or
operation during the continuance of the national emergency.
SEC. 12. It is expressly provided that in the event that the Philippine
Government should desire to maintain and operate for itself the system and
enterprise herein authorized, the grantee, its successors or assigns shall
surrender its franchise and will turn over to the Government said system
and all serviceable equipment at cost less reasonable depreciation.
843
AN ACT GRANTING DON ANICETO LACSON A FRANCHISE TO

FOR PASSENGERS AND FREIGHT BETWEEN BARRIO PUNTA
EQUI, MUNICIPALITY OF AJUY, PROVINCE OF ILOILO, AND
THE MUNICIPALITY OF VICTORIAS, PROVINCE OF NEGROS
OCCIDENTAL


to Don Aniceto Lacson, for a period of twenty-five years from the approval
of this Act the right, privilege and authority to establish, maintain and operate
a ferry service for passengers and freight between Barrio Punta Equi,
Municipality of Ajuy, Province of Iloilo, and the Municipality of Victorias,
Province of Negros Occidental, and to establish a schedule of rates therefor,
which shall at all times be subject to regulation by the Public Service
Commission: 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 Public Service Commission his acceptance of the terms and
conditions stipulated in this Act.

between Barrio Punta Equi, Municipality of Ajuy, Province of Iloilo and
the Municipality of Victorias, Province of Negros Occidental. The
ferryboats operated by the grantee and the equipment thereof shall meet
the requirements prescribed by the Public Service Commission, and the
grantee shall, whenever the Public Service Commission shall determine
844

the manner of, and compensation for carrying said mails, after hearing and
be open to the inspection of the Auditor General or his authorized
Provincial Treasurer of the province where he is residing, quarterly reports
in duplicate showing the gross 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 Auditor General, who shall
keep the same on file.

shall have been obtained until there shall have been filed in the Public
845
partnership, private, public or quasi-public association, corporation or joint-

comply with all the terms and conditions imposed upon the grantee by this
forfeiture by the Public Service Commission the grantee may apply for the

of said competing individual, association of persons or corporations.

shall be held and understood to mean and represent Don Aniceto Lacson,
his representatives, successors or assigns.

846
AN ACT GRANTING ISLAND TRANSPORT COMPANY,

INCORPORATED, A FRANCHISE TO ESTABLISH, MAINTAIN
AND OPERATE A FERRY SERVICE FOR PASSENGERS AND
FREIGHT VEHICLES BETWEEN THE BARRIO OF PAJO,
LAPULAPU CITY, AND BANTAYAN SA HARI, BARRIO OF LO-
OC, MUNICIPALITY OF MANDAWE, PROVINCE OF CEBU;
AND BETWEEN OTHER VISAYAN FOCAL POINTS OF TRADE
AND TRANSHIPMENT


to the Island Transport Company, Inc., for a period of twenty-five years
from the approval of this Act, the right, privilege and authority to establish,
maintain and operate a vehicular, freight and passenger ferry service between
the Barrio of Pajo, Lapulapu City and Mandawe (Bantayan sa Hari) Barrio
of Lo-oc, Municipality of Mandawe, Province of Cebu; Barrio of Maribago,
Mactan Island, and Barrio Po-o, Olango Island, Province of Cebu;
Municipality of Mandawe, Province of Cebu, alternating to the Municipality
of Clarin, Province of Bohol and Municipality of Bato, Province of Southern
Leyte; Municipality of Guihulngan, Province of Negros Oriental, alternating
to the Municipalities of Dumanjug and Barili, Province of Cebu;
Municipality of Escalante, Province of Negros Occidental, alternating to
the municipalities of Tuburan, San Remigio and Tabuelan (Bantayan Island),
Province of Cebu; Municipality of Placer, Province of Masbate, alternating
to the Municipality of Estancia, Province of Iloilo and Municipality of
Escalante, Province of Negros Occidental; and the municipalities of
Tabuelan (Bantayan Island) and San Remigio, Province of Cebu; and to
regulations by the Public Service Commission: Provided, That this franchise
shall be null and void unless the grantee, within two years from the date of
847
the approval of this Act, files with the Public Service Commission its
SEC. 2. Within two years after the acceptance of the franchise granted
grantee shall put in operation an adequate and efficient ferry service between
the municipalities and the islands mentioned in the preceding section. The
ferryboats operated by the grantee and the equipment thereof shall meet
the requirements prescribed by the Public Service Commission, and the
grantee shall, whenever the Public Service Commission shall determine
ferryboats or the equipment thereof at its expense.

the manner of and compensation for, carrying said mails, after hearing and
such service.
be open to inspection by the Provincial Treasurer of Cebu or his authorized
Provincial Treasurer quarterly reports in duplicate showing the gross receipts
for passengers and freight for the quarter past and the general condition of
the business, one copy of which shall be forwarded by the Provincial
848
SEC. 6. The grantee, after obtaining approval of the Congress of the

Philippines, may sell, lease, grant, convey, assign, give in usufruct, or
transfer this franchise and all property and rights acquired thereunder to
shall have been obtained, until there shall have been filed in the Office of
the Public Service Commission an agreement in writing by which the
individual, co-partnership, private, public or quasi-public association,
corporation or joint-stock company in whose favor such sale, lease, grant,
conveyance, assignment, gift in usufruct or transfer is made, shall be firmly
conditions.

849
disadvantage, then such term or terms shall ipso facto become part of the

shall be held and understood to mean and represent the Island Transport
Company, Inc., its representatives, successors or assigns.
SEC. 10. This franchise shall be subject to amendment, alteration, or repeal

by the Congress of the Philippines when the public interest so requires,
and shall not be interpreted to mean an exclusive grant of the privilege
herein provided.
Approved,
** Lapsed into law on June 17, 1967 without the signature of the President,
pursuant to Article VI, Section 27 (1) of the Constitution.
850
AN ACT GRANTING SURIGAO FERRY SERVICE, INC., A

FERRY SERVICE FOR PASSENGERS AND FREIGHT BETWEEN
THE MUNICIPALITY OF SURIGAO AND NONOC ISLAND,
BOTH IN THE PROVINCE OF SURIGAO DEL NORTE


to Surigao Ferry Service, Inc., for a period of twenty-five years from the
approval of this Act, the right, privilege and authority to establish, maintain
and operate a ferry service for passengers and freight between the
Municipality of Surigao and Nonoc Island, both in the Province of Surigao
del Norte, and to establish a schedule of rates therefor which shall at all
times be subject to regulation by the Public Service Commission: 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 Public Service
Commission its acceptance of the terms and conditions stipulated in this
Act.

granted hereunder and in accordance with the conditions as herein stipulated,
between the Municipality of Surigao and Nonoc Island, both in the Province
of Surigao del Norte. The ferryboats operated by the grantee and the
equipment thereof shall meet the requirements prescribed by the Public
Service Commission, and the grantee shall. whenever the Public Service
Commission shall determine that public interest reasonably requires it,
change or improve any of said ferryboats or the equipment thereof at its
expense.
851

be open to the inspection of the Provincial Treasurer of Surigao del Norte
or his authorized Representatives, and it shall be the duty of the grantee to
submit to the provincial treasurer quarterly reports in duplicate showing
the gross 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 Auditor General, who shall keep the same on
file.

corporation or joint-stock company competing to operate the business
hereby authorized, but transfer of title to the franchise or any right of
ownership or interest acquired under such sale, lease, grant, conveyance,
assignment, gift in usufruct, or transfer shall not be effective, even after
such approval .shall have been obtained until there shall have been filed
852
with the Public Service Commission an agreement in writing by which the

individual, co-partnership, private, public or quasi-public association,
corporation, or joint-stock company in whose favor such sale, lease, grant,
conveyance, assignment, gift in usufruct, or transfer is made, shall be firmly
conditions.

of said competing individual, association or corporation.

shall be held and understood to mean and represent Surigao Ferry Service,
Inc., its representatives, successors or assigns.

853
Enacted without Executive approval, June 15, 1968.
854
AN ACT IMPOSING A TAX ON PRIVATELY OWNED PASSENGER

AUTOMOBILES, MOTORCYCLES AND SCOOTERS, AND A
SCIENCE STAMP TAX, TO CONSTITUTE A SPECIAL SCIENCE
FUND, DEFINING THE PROGRAMS, PROJECTS AND
ACTIVITIES OF SCIENCE AGENCIES TO BE FINANCED
THEREFROM AND FOR OTHER PURPOSES

SECTION 1. Creation of Special Science Fund. – There is hereby

created a Special Science Fund, hereafter referred to as the Fund, to be
constituted from the proceeds of the taxes imposed in Sections three and
four of this Act to promote scientific and technological research and
development, foster invention, and utilize scientific knowledge as an
effective instrument for the promotion of national progress. This Fund shall
be expended exclusively for the programs, projects and activities of the
National Science Development Board, Philippine Atomic Energy
Commission, National Institute of Science and Technology, Philippine
Coconut Research Institute, Philippine Inventors Commission, National
Research Council of the Philippines, and the Science Foundation of the
Philippines authorized under their respective charters or laws of their
creation, including colleges and units of the University of the Philippines
and bureaus of the Department of Agriculture and Natural Resources
involved in scientific and technological research and development, and for
the expenses of science agencies to carry out their functions, duties and
responsibilities, as well as the undertaking of legislative studies and
observation on incentive policies and the funding schemes of scientific
and technological bodies abroad.
SEC. 2. Expenditure of the Fund subject to congressional action. –

Expenditure of the Fund shall be in pursuance of appropriations made by
law: Provided, That for the period from the date of the effectivity of this
Act up to June thirty, nineteen hundred sixty-nine, the collections accruing
855
to the Fund shall be used to fund the unprogrammed appropriations from

the General Fund for the said science agencies which cannot be released
for lack of funds. Expenditure for subsequent fiscal years shall be included
in the annual General Appropriations Act.
SEC. 3. Imposition of additional tax on privately-owned passenger

automobiles, motorcycles and scooters. – An additional tax is hereby
imposed on every privately-owned passenger automobile, motorcycle and
scooter to be paid by the owner thereof, in the amount based on their
respective shipping weight or factory weight of private passenger
automobiles as indicated in the following schedule:
(a) 1,000 kilos or less......................... P 35.00
(b) 1,001 to 1,500 kilos...................... P100.00
(c) 1,501 to 2,000 kilos...................... P250.00
(d) 2,001 kilos and above.................. P450.00
Provided, however, That the owner of a private motorcycle and scooter

shall pay a fixed additional tax of P15.00 and that of jeep, P30.00.
The additional tax imposed herein shall be collected at the same time,
in the same manner and subject to the same penalties as the registration
fees imposed under Republic Act Numbered Four thousand one hundred
thirty-six: Provided, however, That from the effectivity of this Act the words
“Science Tax” shall be printed across all official receipts issued covering
the payment of the tax herein imposed.
SEC. 4. Imposition of additional stamp taxes. – In addition to the

documentary stamp taxes imposed under Sections 211 to 235 of
Commonwealth Act Numbered Four hundred sixty-six, as amended,
otherwise known, as the National Internal Revenue Code, there are hereby
imposed science stamp taxes equal to one hundred per cent thereof except
that in addition to the documentary stamp taxes on tax clearance certificates
856
under Section 225 thereof, the science stamp taxes shall be as follows:
fifty pesos on each certificate for a first-class passenger; thirty pesos on
each certificate for a second or tourist-class passenger; and five pesos on
each certificate for third-class or steerage passenger: Provided however,
That no science tax shall be imposed on freight tickets covering goods,
merchandise, or effects carried as accompanied baggage of passengers on
land and water carriers primarily engaged in the transportation of passengers:
And provided, further, That no science tax shall be imposed on each
certificate issued by a notary public or by any person authorized to
administer oath.
The tax imposed herein shall be collected at the same time, in the
same manner and subject to the same penalties as the documentary stamp
tax imposed under the National Internal Revenue Code, as amended.
SEC. 5. Turnover of the. collection; release of the Fund is ministerial

– The Commissioner of Internal Revenue and the Commissioner of the
Land Transportation Commission shall turn over their collections of the
taxes and penalties mentioned in Sections three and four hereof to the
Treasurer of the Philippines monthly within the first ten days of the
succeeding month which shall accrue to and form part of the Special Science
Fund. No portion of the collections may be transferred or diverted to the
general or any other fund or used or expended for any purpose other than
those specified in this Act. It shall be the ministerial duty of the Budget
Commissioner and the National Treasurer, as well as of the officers and
employees under their supervision and control, to effect releases from the
Fund upon order and/or authorization of the Chairman of the National
Science Development Board, on recommendation by the agencies under
the National Science Development Board, or of the Chairman of the National
Research Council of the Philippines, as the case may be.
SEC. 6. Rules and Regulations. – The Secretary of Finance and the

Secretary of Public Works and Communications, as the case may be, shall
promulgate such rules and regulations relating to the collection of the taxes
accruing to the Special Science Fund as may be necessary. The Chairman
of the National Science Development Board and the Chairman of the
857
National Research Council of the Philippines may also promulgate such

rules and regulations as may be necessary for the effective implementation
of this Act including the adoption of an appropriate design for the science
stamp.
SEC. 7. Annual Report. – The Chairman of the National Science

Development Board and the Chairman of the National Research Council
of the Philippines shall each submit within fifteen days from the opening
of the regular session of Congress to the President of the Philippines and to
the presiding officers of both Houses of Congress, an annual report which
shall include an account of the programs, projects and detailed expenses
undertaken pursuant to this Act, which shall be incorporated in their
respective annual reports.
SEC. 8. Duration of the Fund. – The proceeds of the taxes imposed

in this Act shall, to the extent specified therein, constitute the Fund:
Provided, That after five years from the effectivity of this Act, the taxes
herein imposed shall accrue to the General Fund unless otherwise provided
by law.
SEC. 9. Penal provision. – Any person who fails or refuses to turn

over collections of the taxes mentioned in this Act within the period fixed
in Section five hereof, or who delays, obstructs or prevents the same; or
who fails or refuses to effect releases from the Fund, or who delays, obstructs
or prevents the same; or who orders, causes, or effects the transfer or
diversion of the collections of this Fund shall be punished with a fine not
exceeding ten thousand pesos or imprisonment not exceeding six years or
both in the discretion of the Court. If the offender is a government official
or employee, he shall, in addition, be dismissed from the service with
prejudice to reinstatement and with disqualification for election to any public
office. If he is an alien, he shall, in addition, be deported after payment of
fine, without further deportation proceedings.
SEC. 10. Separability clause. – If any clause, sentence, provision or

section of this Act or application thereof to any person or circumstance
should for any reason be held invalid and unconstitutional, such invalidity
858
or unconstitutionality shall not affect other provisions or applications of

this Act which can be given force and effect without the invalid or
unconstitutional provisions or application, and to this end the provisions
and applications of this Act are declared to be separable.
SEC. 11. Repealing clause. – All Acts, executive orders, rules and
regulations, or parts thereof, which are inconsistent with the provisions of
this Act are hereby repealed, amended, or modified accordingly.
sixty-nine.
859
AN ACT CREATING A BRANCH OFFICE OF THE LAND

TRANSPORTATION COMMISSION IN THE MUNICIPALITY OF
CARIGARA, PROVINCE OF LEYTE, AND AUTHORIZING THE
APPROPRIATION OF FUNDS THEREFOR

SECTION 1. There is hereby created a branch office of the Land

Transportation Commission in the Municipality of Carigara, Province of
Leyte. The Commissioner of Land Transportation shall, subject to the
approval of the Secretary of Public Works and Communications, organize
the said branch office.

be necessary, is hereby authorized to be appropriated, out of any funds in
of this Act. Hereafter, such Bum as may be necessary for the same purpose
shall be included in the annual General Appropriations Act.
Approved,
** Lapsed into law June 21, 1969 without the signature of the President, pursuant
to Article VI, Section 27 (1) of the Constitution.
860
AN ACT AMENDING SECTION TWO OF REPUBLIC ACT

NUMBERED FOURTEEN HUNDRED AND SEVEN, KNOWN AS
“THE PHILIPPINE OVERSEAS SHIPPING ACT OF NINETEEN
HUNDRED AND FIFTY-FIVE”, AS AMENDED BY SECTION
ONE OF REPUBLIC ACT NUMBERED FORTY-ONE HUNDRED
AND FORTY-SIX
Be it enacted by the Senate and House of Representative, Of the Philippines

SECTION 1. Section two of Republic Act Numbered Fourteen

hundred and seven, as amended by Section one of Republic Act Numbered
Forty one hundred and forty-six further amended to read as follows:
“SEC. 2. In pursuance of the above-declared policy any citizen of

the Philippines, or any association or corporation organized under the laws
of the Philippines, at least sixty per cent of the capital of which is owned
by citizens of the Philippines, engaged or which shall engage exclusively
in the overseas shipping business or in the construction of modern boats
for overseas service shall be exempt from the payment of income tax on
income derived from his or its overseas shipping business for a period of
twenty years from the date of approval of this Act or until September nine,
nineteen hundred and seventy-five: Provided, That they shall invest the
entire net income realized during the period of exemption which would
have otherwise been taxable under the provisions of Title II of the National
Internal Revenue Code in the construction, purchase, or acquisitions of
vessels and equipment and/or in the improvement of its vessels and
equipment. The amount so invested shall not be withdrawn for a period of’
twenty years after the expiration of the period of income tax exemption.
Any amount withdrawn before the end of this period shall be subject to the
corresponding income tax, including surcharges and interests.
“Any taxpayer wishing to take advantage of the tax exemption in the

preceding paragraph shall file annually a regular income tax return with
861
the Bureau of Internal Revenue, together with such information and

supporting documents as the Bureau may require, indicating the net income
exempt under this Act.”
SEC. 2. All Acts or parts of Acts and all executive orders,

administrative orders, proclamations or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.
862
AN ACT AMENDING REPUBLIC ACT NUMBERED ONE THOUSAND

FOUR HUNDRED SEVEN, AS AMENDED, TO PRESCRIBE THE
RULES FOR FINANCING THE ACQUISITION OR
CONSTRUCTION OF VESSELS TO BE USED FOR OVERSEAS
SHIPPING, TO ALLOW THE CREATION OF A MARITIME LIEN
THEREON, AND FOR OTHER PURPOSES

SECTION 1. Republic Act Numbered One thousand four hundred

seven, as amended, is hereby further amended to include a new provision.
known as Section 11 1/2, which shall read as follows:
“SEC. 11 1/2 a. Any citizen of the Philippines, or any association or

corporation organized under the laws of the Philippines, at least seventy-
five percent of the capital of which is owned by citizens of the Philippines,
engaged or which shall engage exclusively in the overseas shipping business,
may, for the purpose of financing the construction, acquisition or purchase
of vessels for use in overseas shipping, freely constitute a mortgage or any
other lien or encumbrance on such vessels and its equipment with any bank
or other financial institutions, domestic or foreign.
“b. The instrument of mortgage, lien or encumbrance shall be recorded

in the registry of vessels in the order of their reception and shall show:
1. The name of the vessels;
2. The name of the parties;
3. The time and date of reception of the instrument;
4. The interest in the vessel transferred or affected; and
5. The amount and date of maturity of any mortgage.
863
A copy of the instrument of mortgage shall be furnished the Central

Bank of the Philippines.
“c. Any mortgage, lien or encumbrance constituted in accordance

with this Act is a preferred mortgage and shall constitute a maritime lien
upon the mortgaged vessel in the amount of the outstanding mortgage
indebtedness secured by such vessel.
“d. A preferred mortgage shall have priority over all claims against
the vessel, except the following preferences in the order stated :
1. Judicial costs of the proceedings;
2. Taxes due the Philippine Government;
3. Salaries and wages of the Captain and Crew of the vessel during
its last voyage;
4. General average or salvage including contract salvage; bottomry

loans; and indemnity due shippers for the value of goods transported but
which were not delivered to the consignee;
5. Costs of repair and equipment of the vessel, and provisioning of

food, supplies and fuel during the last voyage; and
6. Preferred mortgages. registered prior in .time.
“e. The lien of a preferred mortgage may be enforced by suit in rem

or otherwise in the Philippines, or in any foreign country in which the
vessel shall be found pursuant to the procedure of said country for the
enforcement of ship mortgages constituting maritime liens on vessels
documented under the laws of said country.
“f. After the bill of judicial sale at public auction has been executed,
all claims against the vessel in favor of the creditors shall be considered
extinguished, and such claim shall thereafter attach, in like amount and in
accordance with their respective priorities to the proceeds of the sale. If the
864
proceeds of the judicial sale should not be sufficient to pay all the creditors
included in one number or grade, the residue shall be- divided among them
pro rata. All credits not paid, whether fully or partially, shall subsist as
ordinary credits enforceable by personal action against the debtor. The
record of the judicial sale shall be inscribed in the registry of vessels.”
SEC. 2. The provisions of Commonwealth Act Numbered Six hundred

six, as amended by Republic Act Numbered Nine hundred thirteen; the
Code of Commerce, particularly Articles 580 and 584 thereof; and all other
Acts, Executive Orders and regulations inconsistent herewith are hereby
repealed or modified accordingly.
865
AN ACT AMENDING REPUBLIC ACT NUMBERED FORTY-ONE

HUNDRED THIRTY-SIX, KNOWN AS THE “LAND
TRANSPORTATION AND TRAFFIC CODE”

SECTION 1. Paragraphs (a) and (c) of Section four, of Republic Act

Numbered Forty-one hundred thirty-six, otherwise known as the Land
Transportation and Traffic Code, are hereby amended to read as follows:
“SEC. 4 (a) There is created under the Department of Public Works

and Communications an office which shall be designated and known as the
Land Transportation Commission, composed of one Commissioner and
one Deputy Commissioner, who shall be vested with the powers and duties
hereafter specified. Whenever the word “Commission” is used in this Act,
it shall be deemed to mean the Land Transportation Commission, and
whenever the word “Commissioner” is used in this Act, it shall be taken to
mean the Commissioner or Deputy Commissioner, as the case may be. “(c)
The Commissioner shall receive an annual compensation of twenty thousand
five hundred eighty pesos and the Deputy Commissioner, an annual
compensation of eighteen thousand six hundred thirty-six pesos. The
Commissioner shall be assisted by one head executive assistant (MV
regulation adviser or chief), one administrative officer, one registration
regulation chief, one inspection, examination, and licensing regulation chief,
one law and traffic enforcement regulation chief, one provincial regulation
chief, one utility and property regulation chief, one accounting officer, one
internal chief auditor, one personnel officer III, one budget officer IV, and
one chief medical division IV who shall receive an annual compensation
of fifteen thousand two hundred sixty-four pesos each; ten land
transportation regional directors who shall receive an annual compensation
of fourteen thousand five hundred thirty-two pesos each; ten transportation
assistant regional directors, who shall receive an annual compensation of
eleven thousand three hundred twenty-eight pesos each; and ten land
866
transportation assistant regulation chiefs, who shall receive an annual

compensation of thirteen thousand one hundred fifty-two pesos each;
Provided, That the assistant chiefs of divisions shall receive an annual
compensation of twelve thousand five hundred sixteen pesos each; the chiefs
of sections, district supervisors, and land transportation registrars III shall
receive an annual compensation of ten thousand two hundred sixty pesos
each; the assistant district supervisors and land transportation registrars II
shall receive an annual compensation of eight thousand eight hundred thirty-
two pesos each; the land transportation registrars I shall receive an annual
compensation of seven thousand six hundred, eight pesos each; and all
other employees in the land transportation commission whose salaries are
paid monthly shall receive an increase in an amount equivalent to eight
WAPCO ranges each “but in no case shall an employee exceed the salary
of his immediate superiors.”
SEC. 2. Section Sixty-one of Republic Act Numbered Forty-one

hundred thirty-six, is hereby amended to read as follows:
“SECTION 61. Disposal of Monies Collected.- Monies collected

under the provisions of this Act shall be deposited in a special trust account
in the National Treasury to constitute the Highway Special Fund, which
shall be apportioned and expended in accordance with the provisions of
the “Philippine Highway Act of 1953”: Provided, however, That the amount
necessary to maintain and equip the Land Transportation Commission but
not to exceed twenty percent of the total collection during anyone year,
shall be set aside for the purpose.”
SEC. 3. In order to carry out the provisions of this Act the payment
of salary differentials resulting from the adjustment in salaries as provided
for in this Act shall be implemented from the amount that maybe taken out
of the twenty per cent of the collections of the Land Transportation
Commission necessary to maintain and equip it from the fiscal year 1970-
71. Thereafter, so much amount as will be needed to carry out the purpose
of this Act shall be included in the annual appropriation of the Land
Transportation Commission.
867
SEC. 4. The incumbents of the positions at the time of the approval

of this Act whose salaries are herein standardized shall automatically be
entitled to the benefits hereof without the need of another appointment.
SEC. 5. Any provision of law to the contrary notwithstanding, the

beneficiaries of the salary increases provided for in this Act are not precluded
from receiving general salary adjustments that may be provided for
government officials and employees in future General Appropriations Act.
868

AN ACT GRANTING PHILIPPINE EXPRESS MESSENGER SERVICE
CORPORATION A FRANCHISE TO CONDUCT AIR FREIGHT
FORWARDING, MESSENGER AND DELIVERY SERVICE

SECTION 1. Any provision of law to the contrary notwithstanding,

the Philippine Express Messenger Service Corporation, a domestic
corporation duly registered and existing under the laws of the Philippines,
is hereby granted a franchise to conduct air freight forwarding, both of
domestic and international destination, as well as to conduct messenger
and delivery service of messages, parcels and packages, at regular intervals
and in special and emergency cases, through all hours of the day and’ night,
for a period of twenty-five years from and after the approval of this Act:
Provided, however, That the said corporation shall not receive and deliver
messages, parcels, goods or articles described in Section nineteen hundred
and fifty-four and nineteen hundred fifty-five of the Revised Administrative
Code, and any matter received by it in violation of existing laws and/or
constituting a criminal act shall be forfeited in favor of the Government;
and any matter unmailable under Section nineteen hundred fifty-five of the
same Code received by it for delivery the possession of which does not
constitute any criminal act punishable by law, the said matter shall whenever
practicable be returned to the person who deposited it, and shall not be
delivered to the addressee: Provided, further, That any willful violation of
the foregoing provisos by the said corporation shall be sufficient cause for
the revocation of the franchise; lastly, the Secretary of Public Works and
Communications and/or through his proper instrumentality or agency, shall
exercise supervision over said corporation for the purpose of having its
operations strictly in accordance with law, as well as to prevent violation
of the foregoing provisos and/or existing laws and regulations.
SEC. 2. The grantee is hereby empowered to fix its service fees or

charges, subject to the rates approved and provided by the Public Service
Commission.
869
SEC. 3. This franchise is granted subject to amendment, alteration

or repeal by the Congress of the Philippines when public interest intervenes
and so requires and shall not be exclusive in character.

the grantee shall pay a franchise tax equal to five per centum of the gross
earnings under this franchise, three per centum shall accrue to the national
government and two per centum to the municipality where the franchise is
in operation.
SEC. 5. The grantee shall file a bond in the sum of twenty-five

thousand pesos to answer for any damages or loss that any customer or
customers may suffer.
sell or assign this franchise or the rights, privileges acquired thereunder, to
any person, firm, company, corporation or other commercial or legal entity,
nor merge with any other person, company, or corporation organized for
the same purpose, without the approval and/or consent of the Congress of
the Philippines.
870
AN ACT AMENDING SECTIONS THREE AND SEVEN OF REPUBLIC

ACT NUMBERED FORTY-SIX HUNDRED FIFTY-TWO,
ENTITLED “AN ACT GRANTING THE PHILIPPINE MONORAIL
TRANSIT SYSTEM, INCORPORATED A FRANCHISE TO
ESTABLISH, MAINTAIN AND OPERATE A MONORAIL
TRANSPORTATION SERVICE IN THE CITY OF MANILA AND
SUBURBS AND CEBU CITY AND PROVINCE”

SECTION 1. Section three of Republic Act Numbered Forty-six

hundred fifty-two is hereby amended to read as follows:
“SEC. 3” In the event that the grantee fails to commence construction

of the monorail transportation service contemplated in this Act within three
years nor commence operation of the service within eight years from the
approval of this Act, this franchise shall be null and void unless prevented
by fortuitous cause or force majeure, martial law, riot, civil commotion,
usurpation by a military power, or any other reasonable cause beyond the
grantee’s control: Provided, however, That all the time during which the
grantee, its successors and assigns, may be prevented from carrying out the
terms and conditions of this franchise shall be added to the time allowed
by this franchise for compliance with its provisions.”
SEC. 2. Section seven of the same Act is amended to read as follows:
“SEC. 7. The grantee shall not lease, transfer, grant the usufruct of,
sell or assign this franchise, nor any rights and privileges acquired thereunder
to any individual, company or corporation, nor merge with any other
individual, company or corporation. The grantee also shall not sell any
share of its capital stock to any person other than the incorporators thereof,
before the completion and approval of the feasibility survey of this project.
Any provincial, city or municipal government whose territorial area is
871
directly served by the monorail transit service is authorized to invest therein

through purchase of shares of the capital stock of the grantee.”
SEC. 3. Any provision of law to the contrary notwithstanding, the

franchise shall be limited to the City of Manila and suburbs and shall exclude
Cebu City and province.
Enacted without Executive approval, October 4, 1971.
872
AN ACT GRANTING CEBU AIR, INC., A FRANCHISE TO ESTABLISH,

OPERATE AND MAINTAIN TRANSPORT SERVICES FOR THE
CARRIAGE OF PASSENGERS, MAIL, GOODS AND PROPERTY
BY AIR, BOTH DOMESTIC AND INTERNATIONAL, WITH
CEBU AS ITS BASE

SECTION 1. Nature and Scope of Franchise. - Subject to the

provisions of the Constitution and applicable laws, rules and regulations,
there is hereby granted to Cebu Air, Inc., hereunder referred to as the grantee,
its successors or assigns a franchise to establish, operate and maintain
transport services for the carriage of passengers, mail, goods and property
by air, both domestic and international, with Cebu as its base.
Air transport services shall include the maintenance and operation

of hangars and aircraft service stations and facilities and other services of
similar nature which may be necessary, convenient or useful as an auxiliary
to aircraft transportation.
The grantee shall have the right at its terminals and landing fields, as
well as in its aircraft, to construct, operate and maintain stations or
transmitting sets for wireless telegraphy and direction findings, and other
radio aids to air navigation, using wavelengths in accordance with the rules
and regulations made from time to time by the proper agencies of the
Government. The wireless communication facilities shall be used solely
for receiving and transmitting weather forecasts and other matters in
connection with the grantee’s services.
SEC. 2. Civil Aeronautics Board. - The grantee shall secure from the
Civil Aeronautics Board the appropriate permits and licenses for its
operations.
873
All aircraft used by the grantee including their accessories and

equipment shall at all times be airworthy and the crew members shall be
licensed by the Government of the Philippines. They shall be equipped
with radio communication, safety and other equipment and shall be operated
and maintained in accordance with the regulations and technical
requirements of the Air Transportation Office or such other regulatory bodies
as the Government may prescribe for this purpose.

at all times be subject to inspection and regulation by the Air Transportation
Office.

Numbered Seven hundred and seventy-six, and the regulations promulgated
SEC. 3. Responsibility to the Public. - Excepting cases of force

majeure and whenever weather conditions permit, the grantee shall maintain
scheduled and/or non-scheduled and/or charter air transport services
between any and all points and places throughout the Philippines and other
countries at such frequencies as traffic needs may require with Cebu as its
base: Provided, however, That at least twenty-five percent (25%) of all its
frequencies shall be for the domestic market.
SEC. 4. Rates for Services. - The grantee shall fix just and reasonable
rates for the transportation of passengers, mail, goods and freight, subject
to the regulations and approval of the Civil Aeronautics Board and other
proper regulatory agencies of the Government.
SEC. 5. Term of Franchise. - This franchise shall be for a term of

forty (40) years from the date of the approval of this Act, unless sooner
revoked or cancelled. In the event that the grantee fails to operate within
two (2) years from the effectivity of this Act, this franchise shall be deemed
ipso facto revoked.
874
SEC. 6. Landing Facilities. - The grantee may use the landing and
other airport facilities on land and water as may be maintained or owned
by the Government within the Philippines on the grantee’s lines subject to
such terms and conditions, restrictions and national policy considerations
as the Philippine Government may prescribe and, reciprocally, the Philippine
Government shall have the right to use the landing and other airport facilities
as may be maintained or owned by the grantee in the Philippines.
SEC. 7. Contracts. - The grantee is authorized to enter into

transportation contracts with the Philippine Government, including the
carrying of mail, upon such terms and conditions as may be mutually agreed
upon. The grantee shall give preferential consideration to contracts with
the Philippine Government. The grantee may likewise enter into
transportation maintenance and/or servicing contracts, and such other
contracts relating to air transport with other foreign-owned airlines
particularly with those which have international routes.
SEC. 8. Right of Government.- In case of war, insurrection, domestic

trouble, public calamity or national emergency, the Philippine Government,
upon the order of the President, shall have the right to take over and operate
the equipment of the grantee, paying for its use or damages.
SEC. 9. Public Equity Participation. - In compliance with the

constitutional mandate to democratize ownership of public utilities, the
herein grantee shall make public offering through the stock exchanges of
at least thirty percent (30%) of its common stocks within a period of ten
(10) years from the date of effectivity of this Act: Provided, That no single
person or entity shall be allowed to own more than five percent (5%) of the
stock offerings.
SEC. 10. Warranty in Favor of National and Local Governments. -

The grantee shall hold the national, provincial, and municipal governments
of the Philippines harmless from all claims, accounts, demands or actions
arising out of accidents or injuries, whether to property or to persons, caused
by the operation of the services under the franchise hereby granted,
attributable solely to the act or omission of the grantee.
875
SEC. 11. Tax Provisions. - The grantee shall pay to the Philippine
Government during the life of this franchise a franchise tax of five percent
(5%) of the gross revenues derived by the grantee from transport operations.
In the event that any competing individual, partnership or corporation

receives and enjoys tax privileges and other favorable terms which tend to
place the herein grantee at any disadvantage, then such provisions shall be
deemed ipso facto part hereof and shall operate equally in favor of the
grantee.
The grantee shall, however, be subject to income tax levied under

Title II of the National Internal Revenue Code, as amended, and tax on its
real property under existing laws on revenues earned from activities other
than air transportation.
SEC. 12. Sale. Lease, Transfer, Assignment, Usufruct, etc. - The

grantee shall not lease, transfer, grant the usufruct of, sell or assign this
franchise and the rights and privileges acquired thereunder to any person,
firm, company, corporation, or legal entity, nor shall the controlling interest
in the grantee be transferred to any such private person, firm, company,
corporation or entity without the prior approval of Congress.
Any person or entity to which this franchise is sold, transferred, or

limitations of this Act.
SEC. 13. Legislative Amendment. - This franchise is subject to

amendments or repeal by Congress when the common good so requires.
SEC. 14. Separability Clause. - If any section or provision of this

franchise, as amended, is held or declared unconstitutional or invalid by a
competent court in a final judgment, the other sections or provisions hereof
shall continue to be in force as if the section or provision so annulled or
voided had never been incorporated in this franchise.
876
SEC. 15. Repealing Clause. - All laws, decrees, orders, instructions,

and rules and regulations, or parts thereof, which are inconsistent herewith
are hereby repealed or modified accordingly.
SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in at least two (2) national newspapers of general
circulation.
877
AN ACT GRANTING DAVAO AGRITECH, INC., A FRANCHISE TO

ESTABLISH, OPERATE AND MAINTAIN DOMESTIC AIR
SPRAYING SERVICES WITH DAVAO AS ITS MAJOR HUB


there is hereby granted to the Davao Agritech, Inc., hereunder referred to
as the grantee, its successors or assigns a franchise to establish, operate
and maintain domestic air spraying services with Davao as its major hub.
Air spraying services shall include the maintenance and operation of hangars
and aircraft service stations and facilities and other services of similar nature
which may be necessary, convenient or useful as an auxiliary to air spraying
services. The grantee shall be given the right at its terminals and landing
fields, as well as in its aircraft, to construct, operate and maintain stations
or transmitting sets for wireless telegraphy and direction findings, and other
and regulations issued from time to time by the proper agencies of the
for receiving and transmitting weal her forecasts and other matters in
SEC. 2. Prior Approval of the Civil Aeronautics Board. - The grantee

shall secure from the Civil Aeronautics Board the appropriate permits and
licenses for its operations. All aircraft used by the grantee and the flight
crew members operating such aircraft shall be licensed by the Government
of the Philippines and, together with its accessories and equipment, shall at
all times be in airworthy condition. They shall be equipped with radio
communication, safety and other equipment and shall be operated and
maintained in accordance with the regulations and technical requirements
of the Air Transportation Office or such other regulatory bodies as the
Government may prescribe for this purpose. The grantee’s equipment and
878
the operation of such equipment shall at all times be subject to inspection

and regulation by the Air Transportation Office. The grantee shall com ply
with the provisions of Republic Act Numbered Seven hundred and seventy-
six, and the regulations promulgated thereunder from time to time.
SEC. 3. Responsibility to the Public. - Excepting cases of Force

air spraying services within Davao and any and all points and places
throughout the Philippines as traffic needs may require.
rates for its air spraying operation, subject to the regulations and approval
of the Civil Aeronautics Board and other proper regulatory agencies of the
Government.

revoked or cancelled. In the event that the grantee fails to operate
continuously for two (2) years, this franchise shall be deemed ipso facto
revoked.
by the Government within the Philippines or the grantee’s lines subject to
such terms and conditions, restrictions and national policy consideration
SEC. 7. Contracts. - The grantee is authorized to enter into air spraying

and air spraying maintenance and/or servicing contracts, and such other
contracts relating to air spraying activities. The grantee shall give
SEC. 8. Right of Government. - In case of war, insurrection, domestic

879
upon order o(the President, shall have the right to take over and operate the
equipment of the grantee, paying for its use or damages.
SEC. 9. Eminent Domain. - With the approval of the President of the

Republic of the Philippines and subject to the limitations and procedures
prescribed by law: the grantee shall be authorized to exercise the right of
eminent domain as may be reasonably necessary for its stations, landing
fields, hangars, docks, ramps, wireless stations and other structures in
connection with the grantee’s activities. No private property shall be taken
for any purpose by the grantee without proper condemnation proceedings
and just compensation paid or tendered therefor, and any authority to take
and occupy land contained herein shall not apply to the taking, use or
occupation of any land except such as is required for the actual purposes
for which this franchise is granted.

The grantee shall hold the national, provincial and municipal governments
by the operation of the services under the franchise hereby granted.
SEC. 11. Public Equity Participation. - In compliance ·with the

herein grantee shall make a public offering through the stock exchanges of
at least thirty percent (30%) of its common stock within a period of ten
(10) years from the date of the effectivity of this Act: Provided, That no
single person or entity shall be allowed to own more than five percent
(5%) of the stock offering.
SEC. 12. Tax Provisions. - In consideration of the franchise and rights

hereby granted, the grantee shall pay to the Philippine Government during
the life of this franchise a franchise tax of five percent (5%) of the gross
receipts derived by the grantee from its air spraying operations. The grantee
shall, however, be subject to income tax levied under Title II of the National
Internal Revenue Code, as amended, and the tax on its real property under
existing law.
880
SEC. 13. Interpretation of Franchise. - This franchise shall not be

interpreted to mean as an exclusive grant of the privileges herein provided
for. However, in the event that any competing individual, partnership, or
corporation shall receive a similar permit or franchise with terms and/or
provisions more favorable than those herein granted or which tend to place
the grantee herein at any disadvantage, then such terms and/or provisions
shall be deemed part hereof and shall operate equally in favor of the grantee
herein.
SEC. 14. Sale, Lease, Transfer, Assignment, Usufruct, etc. - The

firm, company, corporation or legal entity, nor shall the controlling interest
corporation or entity without the prior approval of the Congress of the
Philippines. Any person or entity to which this franchise is sold, transferred
or assigned shall be subject to all the conditions, terms, restrictions and
SEC. 15. Reportorial Requirement. - The grantee shall submit an

annual report to the Congress of the Philippines on its compliance with the
terms and conditions of the franchise and on its operations within sixty
(60) days from the end of every year.

amendment or repeal by the Congress of the Philippines when the common
good so requires.


and rules and regulations or parts thereof which are inconsistent herewith
881
SEC. 19. Effectivity. Clause. - This Act shall take effect fifteen (15)
days from the date of its publication in at least two (2) newspapers of general
circulation in the Philippines.
882
AN ACT GRANTING HOUSE OF TRAVEL, INCORPORATED, A

FRANCHISE TO ESTABLISH, OPERATE AND ‘MAINTAIN
DOMESTIC PASSENGERS AND CARGO AIR CHARTERED
TRANSPORT SERVICES WITH DAVAO AS ITS MAJOR HUB


there is hereby granted to the House of Travel, Inc., hereunder referred “to
and maintain passenger and cargo air charter transport services with Davao
as its major hub. Domestic air transport for tourist services shall include
the maintenance and operation of hangars and aircraft service stations and
facilities and other services of similar nature which may be necessary,
convenient or useful as an auxiliary to tourist air transport services. The
grantee shall be given the right at its terminals and landing fields, as well
as in its aircraft, to construct, operate and maintain stations or transmitting
sets for wireless telegraphy and direction findings, and other radio aids to
air navigation, using wavelengths in accordance with the rules and
regulations issued from time to time by ‘the proper agencies of the

licenses for its operations. All aircraft used by the grantee and the flight
crew members operating such aircraft shall be licensed by the Government
of the Philippines and, together with its accessories and equipment, shall at
all times be in airworthy condition. They shall be equipped with radio
communication, safety and other equipment and shall be operated and
maintained in accordance with the regulations and technical requirements
883
of the Air Transportation Office or such other regulatory bodies as the

Government may prescribe for this purpose. The grantee’s equipment and
the operation of such equipment shall at all times be subject to inspection
and regulation by the Air Transportation Office. The grantee shall comply
with the provisions of Republic Act Numbered Seven hundred seventy-six,
and the regulations promulgated thereunder from time to time.

passenger and cargo air charter transport services within Davao and any
and all points and places throughout the Philippines as traffic needs may
require.
rates for its air transport services, mail, goods and freight, subject to the
regulations and approval of the Civil Aeronautics Board and other proper
regulatory agencies of the Government.

revoked.
by the Government within the Philippines or the grantee’s lines subject to
such terms and conditions, restrictions and national policy consideration

carrying of mail, upon terms and conditions to be mutually agreed upon.
The grantee shall give preferential consideration to contracts with the
884
Philippine Government. The grantee may likewise enter into such other
contracts relating to air transport activities.

upon order of the President shall have the right to take over and operate the
equipment of the grantee, paying for its use or damages.
SEC. 9. Eminent Domain. - With the approval of the President of the

Republic of the Philippines and subject to the limitations and procedures
prescribed by law, the grantee shall be authorized to exercise the right of
eminent domain as may be reasonably necessary for its stations and other
structures in connection with the grantee’s activities. No private property
shall be taken for any purpose by the grantee without proper condemnation
proceedings and just compensation paid or tendered therefor, and any
authority to take and occupy land contained herein shall not apply to the
taking, use or occupation of any land except such as is required for the
actual purposes for which this franchise is granted.

SEC. 11. Public Equity Participation. – In compliance with the

at least thirty percent (30%) of its common stock within a period of ten
(10) years from the date of the effectivity of this Act: provided, That no
(5%) of the stock offering.
SEC. 12. Tax Provisions. - In consideration of the franchise and rights

hereby granted, the grantee shall pay to the Philippine Government during
the life of this franchise a franchise tax of five percent (5%) of the gross
885
receipts derived by the grantee from its domestic air transport operations.
The grantee shall, however, be subject to income tax levied under Title II
of the National Internal Revenue Code, as amended, and the tax on its real
property under existing law.

the grantee herein at any disadvantage, then such terms and/or provisions
herein.
SEC. 14. Sale, Lease, Transfer, Assignment, Usufruct. etc. - The

firm, company, corporation or legal entity, nor shall the controlling interest
corporation or entity without .I the prior approval of the Congress of the
Philippines. Any person or entity to which this franchise is sold, transferred,
or assigned shall be subject to all the conditions, terms, restrictions and


good so requires.

886


SEC. 19. Effectivity Clause. - This Act shall take effect fifteen (15)
days from the date of its publication in at least two (2) newspapers of general
887
AN ACT GRANTING THE ASTRO AIR INTERNATIONAL, INC., A

DOMESTIC AND INTERNATIONAL AIR TRANSPORTATION
SERVICES AND OTHER ALLIED SERVICES FOR THE
CARRIAGE AND TRANSFER OF PASSENGERS, MAIL, GOODS
AND OTHER PROPERTY BY AIR AND FOR OTHER PURPOSES


there is hereby granted to the Astro Air International, Inc., hereunder referred
to as the grantee, its successors or assigns a franchise to establish, operate
and maintain domestic and international air transportation services and other
allied services for the carriage and transfer of passengers, mail, goods and
other property by air.

and regulations issued from time to time by the proper agencies of the
SEC. 2. Prior Approval of the Civil Aeronautics Board, - The grantee

licenses for its operations.
888
All aircraft used by the grantee including their accessories and equipment
shall at all times be airworthy and the crew members shall be licensed by
the Government of the Philippines.

Office.


scheduled and/or non scheduled and/or charter air transport services between
Manila and any and all points and places throughout the Philippines and
between Manila and other countries such frequencies as traffic needs may
require: Provided, however, That at least twenty-five percent (25%) of all
its frequencies shall be for the domestic market.
SEC. 4. Rates for Services. - The grantee shall fix and charge
reasonable rates for the transportation of passengers, mail, goods and freight,
subject to the regulations and approval of the Civil Aeronautics Board and
other proper regulatory agencies of the Government.

forty (40) years from the date of the effectivity of this Act, unless sooner
revoked or cancelled. In the event that the grantee fails to operate within
two (2) years from the effectivity of this Act, this franchise shall be deemed
ipso facto revoked.
as the Philippine Government may impose: Provided, That the Philippine
889
Government shall have the right to use such landing and other airport
facilities as may be maintained or owned by the grantee in the Philippines.
SEC. 7. Contracts. - The grantee is hereby authorized to enter into

Philippine Government. The grantee may likewise enter into transportation
maintenance and/or service contracts, and such other contracts relating to
air transport with other foreign-owned airlines, particularly with those which
have international routes.

upon order of the President, shall have the right to take over and operate

at least thirty percent (30%) of its common stocks within a period of ten
stock offerings.

The grantee shall hold the national, provincial, and municipal governments
of the Philippines harmless from all claims, accounts, demands, or actions
by the operation of the services under the franchise hereby granted,
attributable solely to an act or omission of the grantee.
SEC. 11. Tax Provisions. - The grantee shall pay to the Philippine
Government during the life of this franchise a franchise tax of five percent
890
In the event that any competing individual, partnership and

corporation receives and enjoys tax privileges which tend to place the
grantee herein at any disadvantage, then such provisions shall be deemed
part hereof and shall operate equally in favor of the grantee.
The grantee shall however be subject to income tax levied under

SEC. 12. Sale, Lease, Transfer, Assignment, Usufruct, etc. - The

corporation, or entity without the prior approval of Congress.

SEC. 13. Legislative Amendment/Repeal. - This franchise is Subject

to amendment or repeal by Congress when the common good so requires.

franchise is held or declared unconstitutional or invalid by a competent
court in a final judgment, the other sections or provisions hereof shall
continue to be in force as if the section or provision so annulled or voided
had never been incorporated in this Act.
days after its publication in at least two (2) national newspapers of general
891
AN ACT GRANTING TO SILANGAN AIRWAYS, INC., A FRANCHISE

TO ESTABLISH, OPERATE AND MAINTAIN TRANSPORT
SERVICES FOR CARRIAGE OF PASSENGERS, MAILS, GOODS
AND PROPERTY BY AIR BOTH DOMESTIC AND
INTERNATIONAL

SECTION 1. Nature and Scope of Franchise. – Subject to the

there is hereby granted to the Silangan Airways, Inc., hereunder referred to
and maintain transport services for carriage of passengers, mails, goods
and property by air both domestic and international.

transmitting sets for wireless telegraphy and direction finding, and other
SEC. 2. Prior Approval of the Civil Aeronautics Board. – The grantee

892
All aircraft used by the grantee and the flight-crew members operating
such aircraft shall be licensed by the Government of the Philippines and
together with its accessories and equipment shall at all times be in airworthy
condition. They shall be equipped with radio communications, safety and
other equipment and shall be operated and maintained in accordance with
the regulations and technical requirements of the Air Transportation Office
or such other regulatory body as the Government may prescribe for this
purpose.

Office.

SEC. 3. Responsibility to the Public. – Excepting cases of force

scheduled and/or non-scheduled and/or charter air transport services to any
and all points and places throughout the Philippines and between the
Philippines and other countries at such frequencies as traffic needs may
SEC. 4. Rates for Services. – The grantee shall fix just and reasonable
rates for the transportation of passengers, mails, goods and freight, subject
proper regulatory agencies of the Government.
SEC. 5. Term of Franchise. – This franchise shall be for a term of

revoked.
893
SEC. 6. Landing Facilities. – The grantee may use the landing and
as the Philippine Government may prescribe, and reciprocally, the Philippine
SEC. 7. Contracts. – The grantee is authorized to enter into

maintenance and/or servicing contracts, and such other contracts relating
to air transport with other foreign-owned airlines particularly with those
who have international routes.
SEC. 8. Right of Government. – In case of war, insurrection, domestic

trouble, public calamity, or national emergency, the Philippine Government,
SEC. 9. Public Equity Participation. – In compliance with the

herein grantee shall make public offering through the stock exchange of at
least thirty percent (30%) of its common stock within a period of ten (10)
years from the date of effectivity of this Act: Provided, That no single
stock offerings.
SEC. 10. Warranty in Favor of National and Local Governments. –

894
SEC. 11. Tax Provisions.I – The grantee shall pay to the Philippine
Government during the life of this franchise, a franchise tax of five percent
In the event any competing individual, partnership and corporation

receives and enjoys tax privileges which tend to place the grantee herein at
any disadvantage, then such provisions shall be deemed part hereof and
shall operate equally in favor of the grantee.

SEC. 12. Interpretation of Franchise. – This franchise shall not be

the herein grantee at any disadvantage, then such term and/or provision
herein.
SEC. 13. Sale, Lease, Transfer, Assignment, Usufruct, etc. – The

corporation or entity at a time when the corporation is not in operation
without the prior approval of the Congress of the Philippines.

assigned shall be subject to all conditions, terms, restrictions and limitations
of this Act.
895
SEC. 14. Legislative Amendment. – This franchise is subject to

good so requires.
SEC. 15. Separability Clause. – If any section or provision of this

competent court in final judgment, the other sections or provisions hereof
SEC. 16. Repealing Clause. – All laws, decrees, orders, instructions,

SEC. 17. Effectivity Clause. – This Act shall take effect fifteen (15)
days after its publication in at least two (2) newspapers of general circulation.
Approved, April 2, 1992.
896
AN ACT TO PROMOTE THE DEVELOPMENT OF PHILIPPINE

OVERSEAS SHIPPING

SECTION 1. Title. - This Act shall be known and cited as the

“Philippine Overseas Shipping Development Act.”
SEC. 2. Declaration of Policy. - It is hereby declared the policy of

the Government of the Philippines to:
(a) Develop and maintain a Philippine Merchant Marine composed

of well-equipped, safe and modern vessels most suited for Philippine
requirements and conditions, manned by qualified Filipino officers and
crew, and owned and operated under the Philippine flag by citizens of the
Philippines or by associations or corporations organized under the laws of
the Philippines, at least sixty percent (60%) of the capital of which is owned
by citizens of the Philippines;
(b) Assist in the development, recovery and expansion of Philippine

overseas shipping capable of meeting the requirements of the expanding
international trade of the Philippines;
(c) Provide assistance to Philippine shipping enterprises and

encourage the long-range vessel acquisition, development, modernization
and expansion through private investments without direct government
financial assistance; and
(d) Create a healthy climate to attract private enterprise.
SEC. 3. Definitions. – As used in this Act:
(a) “Philippine overseas shipping” means the transport of goods and/
897
or passengers by a ship owned and operated under the Philippine flag by a

Philippine shipping enterprise, except when the ship is operated solely
between ports in the Philippines;
(b) “Philippine shipping enterprise” means a citizen of the Philippines

or an association or corporation organized under the laws of the Philippines,
at least sixty percent (60%) of the capital of which is owned by citizens of
the Philippines and engaged exclusively in Philippine overseas shipping;
(c) “MARINA” means the Maritime Industry Authority;
(d) “Monetary authority” means the Central Bank of the Philippines

and any other agency in charge of foreign exchange controls; and
(e) “Regulations” means the rules and regulations promulgated

pursuant to Section 10 hereof.
SEC. 4. Foreign Exchange Requirements. - Foreign exchange

requirements of Philippine shipping enterprises for the purchase of
oceangoing vessels for registration under the Philippine flag, for repair or
improvement of vessels, for importation of engines, spare parts, accessories,
supplies, containers and for other expenses required for the operation of
vessels in foreign ports or in the high seas, when recommended by the
MARINA, shall be made available to the Philippine shipping enterprise
subject to the regulations.
SEC. 5. Acquisition of Oceangoing Vessels. – Philippine shipping

enterprises may likewise acquire oceangoing vessels for Philippine overseas
shipping upon approval by the MARINA, subject to the guidelines
prescribed in the regulations: Provided, That:
(a) The funds utilized in the acquisition of the vessel are financed
from sources other than the Philippine banking system;
(b) No guaranty of the monetary authority or of any Philippine

government or private financial institution is granted or extended for the
purpose;
898
(c) The vessel serves as sole collateral for the financing of the vessel
and no other asset of the Philippine shipping enterprise is pledged,
mortgaged, or used as security in case of default;
(d) All foreign exchange requirements for the servicing of the loan,
the operation, maintenance and repair of the vessel, the purchase of supplies
and related equipment shall be financed solely from earnings derived from
the operation of the vessel and no foreign exchange shall be made available
by the monetary authority and the Philippine banking system for these
purposes;
(e) Mortgage documents and/or other financial agreements shall be

filed with the monetary authority and such other government agencies in
charge of such mortgage formalities; and
(f) Any excess foreign exchange earning shall be inwardly remitted

and surrendered to the Philippine banking system.
SEC. 6. Exemption from Import Duties and Taxes. – The importation

by a Philippine shipping enterprise of oceangoing vessels for registration
under the Philippine flag shall be exempt from the payment of import duties
and taxes. The spare parts for the repair and/or overhaul of vessels shall
likewise be exempt from the payment of import duties and taxes: Provided,
That such items are destined or consigned either to:
(a) A Philippine dry-docking or repair facility, accredited by the

MARINA and registered as a customs-bonded warehouse, which will
undertake the necessary repairs and works on the vessel; and
(b) The vessel in which the items are to be installed: Provided, That,
if such items are found in locations other than the two (2) aforementioned
ones or in places not authorized by customs, the person or entity in
possession of such items shall be subject to full duties and taxes, including
surcharges and penalties.
Local manufacturers or dealers who sell machinery, equipment,

materials and spare parts to a Philippine shipping enterprise shall be entitled
899
to tax credits for the full amount of import duties and taxes actually paid
thereon, or on parts or components thereof, subject to the approval of the
Secretary of Finance, upon the recommendation of the MARINA.
SEC. 7. Exemption from Income Tax. - A Philippine shipping

enterprise shall be exempt from payment of income tax on income derived
from Philippine overseas shipping for a period of ten (10) years from the
date of approval of this Act: Provided, That:
(a) The entire net income, after deducting not more than ten percent
(10%) thereof for distribution of profits or declaration of dividends, which
would otherwise be taxable under the provisions of Title II of the National
Internal Revenue Code, is reinvested for the construction, purchase, or
acquisition of vessels and related equipment and/or in the improvement or
modernization of its vessels and related equipment in accordance with the
regulations; and
(b) The cumulative amount so reinvested shall not be withdrawn for a period
of ten (10) years after the expiration of the period of income tax exemption
or until the vessel or related equipment so acquired have been fully paid,
whichever date comes earlier.
Any amount not so invested or withdrawn prior to the expiration of

the period stipulated herein shall be subject to the corresponding income
tax, including penalties, surcharges and interests.
SEC. 8. Registration and Deletion of Vessels. - All vessels owned by

Philippine shipping enterprises and availing of the incentives under this
Act shall be registered under the Philippine flag. Said vessels can only be
deleted from the Philippine registry after the MARINA has determined
that:
(a) No other Philippine shipping enterprise is interested in acquiring

the vessel; or
(b) The vessel has to be scrapped.
900
SEC. 9. Requisition of Vessels. - The President of the Philippines

may, in times of war and other national emergency, requisition, absolutely
or temporarily, for any naval or military purpose, any and all vessels of
Philippine registry. The Government shall pay the owner or operator of the
vessel, based on normal conditions at the time of requisition:
(a) The fair market value, if the vessel is taken absolutely; or
(b) The fair charter value, if the vessel is taken temporarily.
In case of disagreement, such fair value shall be determined by an

arbitration committee composed of:
(a) One (1) member to be appointed by MARINA;
(b) One (1) member to be appointed by the owner or operator of

the vessel; and
(c) One (1) member to be appointed by the two (2) members so

appointed.
The decision of the arbitration committee shall be final and binding

on both parties.
SEC. 10. Rules and Regulations. - The MARINA, in consultation

with the monetary authority and the Department of Finance, shall jointly
formulate and promulgate the rules and regulations necessary for the
implementation of this Act taking into consideration the policies and
programs of the Government for the development of the Philippine overseas
shipping.
SEC. 11. Annual Report. - The MARINA, in coordination with the

monetary authority and the Department of Finance, shall submit an annual
report to the President of the Philippines and the Congress of the Philippines
on the implementation of this Act, which report shall include:
901
(a) The amount of foreign exchange earned, acquired and spent by

Philippine shipping enterprises;
(b) The amount of income tax and import duties and taxes for which
exemptions have been granted;
(c) The additional oceangoing vessels constructed, purchased or

acquired; the improvements made thereon and the additional related
equipment procured; and
(d) Such other information as the MARINA may deem necessary or

the President of the Philippines may require.
SEC. 12. Penal Provisions. - Violation of the provisions of this Act

or the rules and regulations promulgated to implement the same shall be
punished by a fine of not more than Ten thousand pesos (P 10,000) or
imprisonment for not more than five (5) years, or both such fine and
imprisonment, at the discretion of the court.
If the violation is committed by an association or corporation, the

penalties prescribed hereunder shall be imposed on the president, the chief
executive officer and the other officials and employees responsible for the
violation.
If the violation is committed by a government official or employee,

he shall, in addition to the penalties prescribed hereunder, be dismissed
from the government service with all the administrative penalties accessory
thereto.
SEC. 13. Repealing Clause. - All laws, executive orders, regulations,

or parts thereof, inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.
902
AN ACT GRANTING THE ABOITIZ AIR TRANSPORT CORPORATION

TRANSPORT SERVICES FOR THE CARRIAGE OF GOODS,
MAIL AND OTHER PROPERTY BY AIR, BOTH DOMESTIC AND
INTERNATIONAL


there is hereby granted to the Aboitiz Air Transport Corporation, hereunder
referred to as the grantee, its successors or assigns a franchise to establish,
operate and maintain transport services for the carriage of goods, mail and
other property by air, both domestic and international.

of hangars and aircraft services stations and facilities and other services of

903

with radio communication, safety and other equipment and shall be operated
as the Government may prescribe for this purpose.

Office.


scheduled and/or non scheduled and/or charter air transport services between
Manila and any and all points and places throughout the Philippines and
between Manila and other countries at such frequencies as traffic needs
may require: Provided, however, That at least twenty-five percent (25%) of
all frequencies shall be for the domestic market.
rates for the transportation of mail, goods and freight, subject to the
regulations and approval of the Civil Aeronautics Board and other proper
regulatory agencies of the Government.

forty (40) years from the date of effectivity of this Act, unless sooner revoked
or cancelled. In the event that the grantee fails to operate within two (2)
years from the effectivity of this Act, this franchise shall be deemed ipso
facto revoked.
904


maintenance and/or servicing contracts, and such other contracts relating
to air transport with other foreign-owned airlines particularly with those
which have international routes.


herein grantee shall make the public offering through the stock exchange
of at least thirty percent (30%) of its common stock within a period of ten
stock offerings.

of the Philippines harmless from all claims, accounts, demands, or actions
by the operation of the services under the franchise hereby granted
attributable solely to the act or omission of the grantee.
SEC. 11. Tax Provisions. - In consideration of the franchise and the

rights hereby granted, the grantee shall pay to the Philippine Government
905
during the life of this franchise a franchise tax of five percent (5%) of the
gross revenues derived by the grantee from transport operations.

receives and enjoys tax privileges which tend to place the herein grantee at
any disadvantage, then such provisions shall be deemed part hereof and
shall operate equally in favor of the grantee.

SEC. 12. Sale, Lease, Transfer, Assignment, Usufruct of Franchise. -

The grantee shall not lease, transfer, grant the usufruct of, sell or assign
this franchise or the rights and privileges acquired thereunder to any person,
firm, company, corporation, or legal entity, nor merge with any other
corporation or entity, without the prior approval of the Congress of the
Philippines. Neither shall the controlling interest in the grantee be
transferred, whether as a whole or in parts and whether simultaneously or
contemporaneously, to any such private person, firm, company, corporation
or entity without the prior approval of the Congress.

assigned shall be subject to all the conditions, terms, restrictions and

amendment or repeal by Congress when the common good so requires.

franchise is held or declared unconstitutional or invalid by a competent
court in a final judgment, the other sections or provisions hereof shall
continue to be in force as if the section or provision so annulled or voided
had never been incorporated in this franchise.
906
SEC. 15. Repealing Clause. - All laws, decrees, orders, instructions

and rules and regulations, or parts thereof, which are inconsistent herewith

circulation.
907
AN ACT GRANTING A FRANCHISE TO PACIFIC AIRWAYS

CORPORATION TO ESTABLISH AND MAINTAIN RURAL AIR
TRANSPORT SYSTEM AND ALLIED SERVICES IN THE
PHILIPPINES

SECTION 1. There is hereby granted to Pacific Airways Corporation,

hereinafter referred to as the grantee, a franchise to establish, operate and
maintain rural air transport services for the carriage of passengers, cargo
and mail, industrial flights, aerial agricultural spraying, aerial environmental
protection and management and related services, in and between
municipalities, cities or provinces and all points and places throughout the
Philippines and to enhance efficiency in the provision of such services to
manufacture, overhaul, assemble and repair aircraft components, parts, tools,
engines, airframes, propellers, and related parts.
SEC. 2. As used in this Act, the phrase “rural air transport” shall
mean the service of providing air transport in and between municipalities,
cities or provinces and all points and places throughout the Philippines as
short-haul carriers, making such service an essential part of the national
transportation network.

air transport services in and between any and all points and places throughout
the Philippines at such frequencies as traffic needs may require.
SEC.4. The grantee shall secure the prior approval of the Civil
Aeronautics Board in determining its routes and rates for scheduled and
non-scheduled passenger and/or freight services.
SEC. 5. Subject to such term and conditions as the Philippine

government may prescribe, the grantee may use the landing and
908
replenishment facilities on land or water, as may be maintained or owned

by the government of the Philippines, excepting those which, in the opinion
of said government, may not be used by the grantee because of military or
naval considerations, and reciprocally, the Philippine government shall have
the right to use such landing and replenishment facilities on land or water
maintained and owned by the grantee in the Philippines.
fields, as it is allowed to use under Section 5 hereof, as well as in its aircraft,
to construct, operate and maintain stations or transmitting sets for wireless
telegraphy and direction findings, and other radio aids to air navigation
using wavelengths or frequencies in accordance with the rules and
regulations made by the National Telecommunications Commission:
Provided however, That the wireless communications facilities shall be
used solely for receiving and transmitting weather forecasts and messages
relating to the grantee’s aircraft and other matters in connection with the
grantee’s services.
SEC. 7. The grantee shall be authorized to establish a responsive

system with the Philippine Air Force involving the agreement of service
credits that will permit drawings of the grantee from the Philippine Air
Force of such services as aircraft parts and fuel in order to meet its needs,
and the repayments by future goods and services to be drawn by the
Philippine Air Force.
SEC. 8. The grantee shall be authorized to enter into transportation

contracts with the Philippine government, including the carrying of mail,
under such terms and conditions to be mutually agreed upon. The grantee
may likewise enter into transportation and/or servicing contracts and such
other contracts relating to air transport with other foreign-owned airline
particularly those with international routes.
SEC 9. The grantee may, from time to time, be deputized by the Air
Transportations Office especially in areas relating to the enforcement of
air safety standards.
909
SEC. 10. Subject to the limitations and procedures prescribed by

as may be reasonably necessary for its landing fields, hangars, docks, ramps,
wireless stations, and other structures in connection with the grantee’s
activities.
No private property shall be taken for any purpose without proper

condemnation proceedings and just compensation paid or tendered therefor,
and any authority to take and occupy land as provided herein, shall not
apply to the taking, use or occupation of any land except such as is required
for the actual purpose for which this franchise is granted.
SEC. 11. The grantee shall hold the national, provincial, city or
demands, or actions arising out of accidents or injuries, whether to property
or to persons, caused by the operation of the services under which this
franchise is hereby granted.
SEC.12. The grantee shall pay to the Philippine government during

the life of this franchise a franchise tax of five (5%) of the gross revenues
derived by the grantee from transport operations. The grantee shall however
be subject to income tax levied under Title II of the National Internal
Revenue Code, as amended, and tax on its real property under existing
laws on revenues earned from activities other than air transportation.
SEC.13. This franchise is granted with the understanding that the

grantee is a corporation sixty percent (60%) of the capital stock of which is
the bona fide property of citizens of the Philippines and that the interest of
such citizens in its capital stock or in the capital of the company with which
it may merge shall at no time be allowed to fall below such percentage,
under the penalty of cancellation of this franchise.
SEC. 14. This franchise shall not be interpreted to mean as an

exclusive grant of the privileges herein provided for. However, in the event
any competing individual, partnership, or corporation shall receive a similar
permit or franchise with terms and/or provisions more favorable than those
herein granted or which tend to place the grantee herein at any disadvantage,
910
then such terms and/or provisions shall ipso facto become part hereof and
shall operate equally in favor of the grantee herein.
SEC. 15. The franchise hereby granted shall be subject to amendment,

alteration or repeal by the Congress of the Philippines.
SEC. 16. The term of this franchise shall be fifty (50) years from the
date of the effectivity of this Act.
sell or assign this franchise, nor the rights or privileges acquired thereunder,
to any person, firm, company, corporation, or other commercial or legal
entity, nor merge with any other company or corporation organized for the
same purpose, without the prior approval of the Congress of the Philippines.
Any person, firm, company, corporation or other commercial or legal entity
to which this franchise is sold, transferred or assigned shall be subject to
all the conditions, terms, restrictions and limitations of this franchise as
fully and completely and to the same extent as if the franchise had been
granted to the same person, firm, company, corporation or commercial or
legal entity.
SEC. 18. This franchise shall not be valid unless the grantee accepts
the same within two (2) years after its effectivity. Filing such acceptance in
writing shall be made with the Civil Aeronautics Board.
SEC. 19. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.
911
AN ACT GRANTING A FRANCHISE TO ALL ASIA AIRLINES CO.,

INC., TO ESTABLISH AND MAINTAIN AIR TRANSPORT
SERVICES THROUGHOUT THE PHILIPPINES AND/OR

SECTION 1. It is the policy of the State, as set forth in Executive

Order No. 333 dated 16 August 1988, to encourage the operation and
development of air transport industry and to further encourage healthy
competition in order to promote the sound development of the same industry.
SEC. 2. There is hereby granted to All Asia Airlines Co., Inc.,

hereinafter referred to as the grantee, a franchise to establish, operate and
maintain scheduled and/or non-scheduled and/or charter air transport
services for the carriage of passengers, mail, freight and property by air, in
and between any and all points and places throughout the Philippines and
between the Philippines and other countries as a designated flag carrier.

conditions permit, the grantee shall maintain scheduled and/or non-
scheduled and/or charter air transport services in and between any and all
points and/or places throughout the Philippines, as well as between the
Philippines and other countries, at such frequencies as traffic needs may
require.
The term “air transport services” shall include the maintenance and
operation of hangars, aircraft service stations, passenger and/or cargo
terminals, lodges, warehouses, facilities, and other services which may be
necessary, convenient, or useful as an auxiliary to aircraft transportation.
SEC. 4. The grantee shall fix just and reasonable rates for the
transportation of passengers, mail, freight, and property subject to the
912
regulation and approval of the Civil Aeronautics Board or such other

regulatory agencies as the government may designate for this purpose. Any
order of the Civil Aeronautics Board made under this section shall be subject
to review by the courts.
All aircraft used by the grantee and the flight crew members operating
such aircraft shall be licensed by the government of the Philippines.
The grantee’s aircraft, together with their accessories and equipment,

shall at all times be in airworthy condition. They shall be equipped with
radio communication, safety and other equipment, and shall be operated
as the government may prescribe for this purpose.
The grantee’s equipment and the operation thereof shall at all times
be subject to inspection and regulation by the Air Transportation Office
whose decisions on technical matters shall be binding until revoked or
annulled by superior authority under whose control this office falls or by
the courts for excess or abuse of jurisdiction.

Numbered Seven hundred and seventy-six, as amended, and the regulations
promulgated thereunder.

government may prescribe, the grantee may use the landing and other airport
facilities on land or water as may be maintained or owned by the government
within the Philippines on the grantee’s lines, excepting those which, in the
opinion of the government, may not be used by the grantee because of
military or naval considerations. Reciprocally, the government shall have
the right to use the landing and other airport facilities on land or water
maintained or owned by the grantee in the Philippines.
fields, as it is allowed to use under Section 5 hereof, as well as in its aircraft,
to construct, operate and maintain stations or transmitting sets for wireless
913
telegraphy and direction findings, and other radio aids to air navigation
using wavelengths or frequencies in accordance with the rules and
regulations made by the government: Provided, however, That the wireless
communication facilities shall be used solely for receiving and transmitting
weather forecasts and messages relating to the grantee’s aircraft and other
matters in connection with the grantee’s services.

with the government, including the carrying of mail, upon such terms and
conditions as may be mutually agreed upon. The grantee shall give
preferential consideration to contracts with the Philippine government and,
reciprocally, the latter shall give preferential consideration to contracts with
the grantee in the carrying of passengers, mail, freight and property.
The grantee may likewise enter into transportation maintenance and/

or servicing contracts and such other contracts relating to air transport with
other foreign-owned airlines, particularly those which have international
routes.
SEC. 8. In case of war, insurrection, civil disturbance or other national

emergency, and when the public interest so requires, the government, upon
order of the President, may temporarily take over or direct the operations
of the grantee paying just compensation for such use and for damages that
may result therefrom.
SEC. 9. With the approval of the President of the Philippines and

subject to the limitations and procedures prescribed by law, the grantee
shall be authorized to exercise the right of eminent domain as may be
reasonably necessary for its stations and other structures in connection
with the grantee’s activities and operations.
No private property shall be taken for any purpose by the grantee

without proper condemnation proceedings and just compensation paid or
tendered therefor, and any authority to take and occupy land contained
herein shall not apply to the taking, use or occupation of any land except
such as is required for the actual purposes for which this franchise is granted.
914
SEC. 10. The grantee shall not issue stock or bonds except in exchange
for actual cash or for property at least equal in value to the par value of the
stock or bonds so issued or for services rendered as provided under existing
corporate laws: Provided, however, That it may issue stock, bonds, or
property dividends upon compliance with the requirements of applicable
laws.
SEC. 11. The provisions of existing laws to the contrary

notwithstanding, the grantee is hereby authorized, to hire or employ foreign
nationals with special qualifications, competence, or experience, or
otherwise avail of the services of foreign firms or entities under an
appropriate contract, who/which are needed by the grantee for the efficiency
and improvement of its operations and other business activities.
It shall be unlawful for the grantee to use, employ, or contract for the
labor of persons held in involuntary servitude.
SEC. 12. The grantee shall hold the national, provincial, and municipal
governments of the Philippines harmless from all claims, accounts, demands
or actions arising out of accidents or injuries, whether to property or to
persons, caused by the operation of the services under which this franchise
is hereby granted.
SEC. 13. In consideration of the franchise and the rights hereby

granted, the grantee shall pay to the Philippine government during the life
of this franchise a franchise tax of five percent (5%) of the gross revenues
derived by the grantee from transport operations.

real property under existing laws or revenues earned from activities other
SEC. 14. In compliance with the constitutional mandate to

democratize ownership of public utilities, the herein grantee shall make
public offering through the stock exchange of at least thirty percent (30%)
915
of its common stock within a period of ten (10) years from the date of
effectivity of this Act: Provided, That no single person or entity shall be
allowed to own more than five percent (5%) of the stock offerings.
SEC. 15. Within two (2) years after the effectivity of this Act, the
grantee shall file with the Secretary of Transportation and Communications
its written acceptance of the franchise and of all the terms and conditions
hereof, and in default of such acceptance within the time so limited, this
franchise shall become null and void.
SEC. 16. This franchise shall not be interpreted to mean as an

exclusive grant of the privileges herein provided for. However, in the event
that any individual, partnership, or corporation shall receive a similar permit
or franchise with terms and/or provisions more favorable than those herein
granted or which tend to place the herein grantee at any disadvantage, then
such terms and/or provisions shall be deemed part hereof and shall operate
equally in favor of the herein grantee.
grantee is a corporation, at least sixty percent (60%) of the capital stock of
which is owned and controlled by citizens of the Philippines and that the
interest of such citizens in its capital stock or in the capital stock of the
company with which it may merge or consolidate shall at no time be allowed
to fall below such percentage, under the penalty of cancellation of this
franchise.
SEC. 18. This franchise is granted with the understanding that it

shall be subject to amendment, alteration or repeal by the Congress of the
Philippines when the common good so requires.
SEC. 19. The term of this franchise shall be fifty (50) years from the
date of the effectivity of this franchise.
SEC. 20. The provisions of existing laws to the contrary

notwithstanding, the Treasurer of the Philippines is hereby authorized to
offset any outstanding obligation of the grantee to any agency or
916
instrumentality of the Government with any receivable of the grantee from

any agency or instrumentality of the government.
SEC. 21. The grantee shall not, without the prior approval of the
Congress of the Philippines, lease, transfer, grant the usufruct of, sell, or
assign this franchise nor the rights and privileges acquired thereunder to
any person, firm, company, corporation, or any other commercial or legal
entity, nor merge or consolidate with any other company or corporation
organized for the same or any other purpose. Any corporation to which this
franchise may be sold, transferred or assigned or with which the grantee
may merge or consolidate, with the approval from the above-mentioned,
shall be subject to the corporation laws of the Philippines now existing or
hereafter enacted, and any person, firm, company, corporation or other
commercial or legal entity to which this franchise is validly sold, transferred
or assigned or with which the grantee may merge or consolidate, shall be
subject to all the conditions, terms, restrictions, and limitations of this
franchise as fully and completely and to the same extent as if this franchise
had been originally granted to such person, firm, company, corporation or
other commercial or legal entity.
SEC. 22. Upon termination of this franchise by repeal, forfeiture,

annulment, or expiration in due course, all public land and the right to
occupy and use the same, granted to the grantee, shall revert to the Philippine
government.
SEC. 23. If any section or provision of this franchise is held or

declared unconstitutional or invalid by a competent court in a final judgment,
the other sections or provisions hereof shall continue to be in force as if the
section or provision so annulled or voided had never been incorporated in
this franchise.
SEC. 24. All laws, decrees, orders, instructions, rules and

regulations or parts thereof inconsistent herewith are hereby repealed or
modified accordingly.
917
SEC. 25. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of national circulation.
Approved,
** Lapsed into law on July 9, 1995 without the signature of the President, in
918
AN ACT GRANTING AIR PHILIPPINES CORPORATION (AIR

TRANSPORT SERVICES


there is hereby granted to Air Philippines Corporation, hereunder referred
to as the grantee, its successors or assigns, a franchise to establish, operate
and maintain transport services for the carriage of passengers, mail, goods
and property by air, domestic and international.

The grantee shall have the right at its terminal and landing fields, as
government. The wireless communication facilities shall be used solely
operations.

919

with radio communications, safety and other equipment and shall be
operated and maintained in accordance with the regulations and technical
the government may prescribe for this purpose.

Office.

Numbered Seven Hundred and Seventy-Six (RA. No. 776), and the
regulation promulgated thereunder from time to time.

scheduled and/or non-scheduled and/or chartered air transport services to
any and all points and places throughout the Philippines and between the
proper regulatory agencies of the government.

twenty-five (25) years from the date of effectivity of this Act, unless sooner
revoked or cancelled. This franchise shall be deemed ipso facto revoked in
the event the grantee fails to comply with any of the following conditions:
(a) Commence operations within one (1) year from the approval of
its permit by the Civil Aeronautics Board;
(b) Operate continuously for two (2) years; and
920
(c) Commence operations within two (2) years from the effectivity
of this Act.
SEC. 6. Acceptance and Compliance. - Acceptance of this franchise

shall be given in writing within sixty (60) days after the effectivity of this
Act. Upon giving such acceptance, the grantee shall exercise the privileges
granted under this Act. Nonacceptance shall render the franchise void.
SEC. 7. Bond. - The grantee shall file a bond issued in favor of the
Civil Aeronautics Board, which shall determine the amount, to guarantee
the compliance with and fulfilment of the conditions under which this
franchise is granted. If after three (3) years from the date of the approval of
its permit by the Board, the grantee shall have fulfilled the same, the bond
shall be cancelled by the Board. Otherwise, the bond shall be forfeited in
favor of the government and the franchise ipso facto revoked.
by the government within the Philippines on the grantee’s lines subject to

SEC. 10. Right of Government. - A special right is hereby reserved to

the President of the Philippines, in times of war, rebellion, public peril,
calamity, emergency, disaster or disturbance of peace and order, to
921
temporarily take over and operate the facilities or equipment of the grantee,
to temporarily suspend the operation of any facility or equipment in the
interest of public safety, security and public welfare, or to authorize the
temporary use and operation thereof by any agency of the government,
upon due compensation to the grantee, for the use of said facilities or
equipment during the period when they shall be so operated.
SEC. 11. Tax Provisions. - The grantee, its successors or assigns,

shall be liable to pay the same taxes on their real estate, buildings and
personal property, exclusive of this franchise, as other persons or
corporations are now or hereafter may be required by law to pay. In addition
thereto, the grantee, its successors or assigns, shall pay the value-added tax
under Republic Act No. 7716, as amended, or a franchise tax of five percent
(5%) per annum or at such percentage as may be prescribed by law on all
gross receipts of its air transport business transacted under this franchise,
whichever is higher: Provided, That the grantee, its successors or assigns,
shall continue to be liable for income taxes payable under Title II of the
National Internal Revenue Code pursuant to Section 2 of Executive Order
No. 72 unless the latter enactment is amended or repealed, in which case
the amendment or repeal shall be applicable thereto.
The grantee shall file the return with, and pay the taxes due thereon
to the Commissioner of Internal Revenue or his duly authorized
representatives in accordance with the National Internal Revenue Code
and the return shall be subject to audit by the Bureau of Internal Revenue.

SEC. 13. Sale, Lease, Transfer, Usufruct, etc. - The grantee shall not
lease, transfer, grant the usufruct of, sell nor assign this franchise or the
rights and privileges acquired thereunder to any person, firm, company,
corporation or other commercial or legal entity, nor merge with any other
922
corporation or entity, nor shall the controlling interest of the grantee be

contemporaneously, to any such person, firm, company or entity without
the prior approval of the Congress of the Philippines. Any person or entity
to which this franchise is sold, transferred or assigned shall be subject to
the same conditions, terms, restrictions, and limitations of this Act.
SEC. 14. Dispersal of Ownership. - In accordance with constitutional

provisions to encourage public participation in public utilities, the grantee
shall offer at least thirty percentum (30%) of its outstanding capital stock
or a higher percentage that may hereafter be provided by law in any securities
exchange in the Philippines within five (5) years from the commencement
of its operations. Noncompliance therewith shall render the franchise ipso
facto revoked.

for. However, in the event that any competing individual, partnership or
herein grantee at any disadvantage, then such terms and/or provisions shall
be deemed part hereof and shall operate equally in favor of the herein
grantee.
SEC. 16. Separability Clause. - If any of the sections or provisions

of this Act is held invalid, all the other provisions not affected thereby
shall remain valid.
SEC. 17. Repealability and Nonexclusivity Clause. – This franchise

Philippines when the public interest so requires and shall not be interpreted
as an exclusive grant of the privileges herein provided for.

923
SEC. 19. Effectivity. – This Act shall take effect fifteen (15) days
from the date of its publication in at least two (2) newspapers of general
circulation the Philippines.
Approved,
**Lapsed into law on August 8, 1997 without the signature of the President,
in accordance with Article VI, Section 27 (1) of the Constitution.
924
AN ACT BANNING THE REGISTRATION AND OPERATION OF

VEHICLES WITH RIGHT-HAND STEERING WHEEL IN ANY
PRIVATE OR PUBLIC STREET, ROAD OR HIGHWAY,
PROVIDING PENALTIES THEREFOR AND FOR OTHER
PURPOSES

SECTION 1. It shall be unlawful for any person to import, cause the

importation of, register, cause the registration of, use, or operate any vehicle
with its steering wheel right-hand side thereof in any highway, street or
road, whether private or public or of the national or local government except
such vehicles that are acknowledged as vintage automobiles, manufactured
before 1960, in showroom condition, and/or are to be utilized exclusively
for officially and legally sanctioned motorsports events, and off-road special
purpose vehicles.
SEC. 2. The penalty of prision correccional in its medium period

and a fine of Fifty thousand pesos (P50,000)shall be imposed upon any
person violating the provisions of this Act.
SEC. 3. This Act shall take effect immediately after its complete
publication in the Official Gazette or in at least two (2) national newspapers
of general circulation.
925
AN ACT GRANTING THE GRAND INTERNATIONAL AIRWAYS, INC.

(GRAND AIR), A FRANCHISE TO ESTABLISH, OPERATE AND
TRANSPORT SERVICES


there is hereby granted to Grand International Airways, Inc. (Grand Air),
hereunder referred to as the grantee, its successors or assigns, a franchise
to establish, operate and maintain transport services for the carriage of
passengers, mail, goods and property by air, both domestic and international.

SEC. 2. Civil Aeronautics Board. – The grantee shall secure from the
operations.
926

licensed by the government of the Philippines. They shall be equipped

Office.

Numbered Seven hundred and seventy-six, and the regulation promulgated

scheduled and/or nonscheduled and/or chartered air transport services to
SEC. 5. Term of Franchise. – This franchise shall be for a term of

revoked or canceled. This franchise shall be deemed ipso facto revoked in
927
of this Act.
SEC. 6. Acceptance and Compliance. – Acceptance of this franchise

SEC. 7. Bond. – The grantee shall file a bond issued in favor of the
the compliance with and fulfillment of the conditions under which this
as the Philippine government may impose: Provided, That the Philippine
government shall have the right to use the landing and other airport facilities

transportation contracts with the Philippine government, including the
the Philippine government. The grantee may likewise enter into
928
SEC. 10. Right of Government. – A special right is hereby reserved

to the President of the Philippines, in times of war, rebellion, public peril,
SEC. 11. Tax Provisions. – The grantee, its successors or assigns,

shall be liable to pay the same taxes on their real estate, buildings and
personal property, exclusive of this franchise, as other persons or
corporations are now or hereafter may be required by law to pay. In addition
thereto, the grantee, its successors or assigns, shall pay the value added tax
under Republic Act No. 7716 or a franchise tax of five percent (5%) per
annum or at such percentage as may be prescribed by law, on all gross
receipts of its air transport business transacted under this franchise,
whichever is higher: Provided, That the grantee, its successors or assigns,
shall continue to be liable for income taxes payable under Title II of the
National Internal Revenue Code pursuant to Section 2 of Executive Order
No. 72 unless the latter enactment is amended or repealed, in which case
the amendment or repeal shall be applicable thereto.
The grantee shall file the return with and pay the taxes due thereon
to the Commissioner of Internal Revenue or his duly authorized
representatives in accordance with the National Internal Revenue Code
and the return shall be subject to audit by the Bureau of Internal Revenue.

receives or enjoys tax privileges and other favorable terms which tend to
grantee.
929

SEC. 13. Sale, Lease, Transfer, Usufruct., Etc. – The grantee shall
not lease, transfer, grant the usufruct of, sell nor assign this franchise or the
contemporaneously, to any such person, firm, company, corporation or entity
without the prior approval of the Congress of the Philippines. Any person
or entity to which this franchise is sold, transferred or assigned shall be
subject to the same conditions, terms, restrictions and limitations of this
Act.
SEC. 14. Dispersal of Ownership. – In accordance with constitutional

shall offer at least thirty percentum (30%)of its outstanding capital stock
facto revoked.

corporation shall receive a similar permit, authority or franchise with terms
and/or provisions more favorable than those herein granted or which tend
to place herein grantee at any disadvantage, then such terms and/or
provisions shall be deemed part hereof and shall operate equally in favor
of the herein grantee.
930
SEC. 16. Separability Clause. – If any of the sections or provisions

shall remain valid.

SEC. 18. Reportorial Requirement. – The grantee shall submit an

SEC. 19. Effectivity. – This Act shall take effect fifteen (15) days
from the date of its publication in at least two (2) newspapers of general
Approved,
** Lapsed into law on February 28, 1998 without the signature of the President
931
AN ACT REQUIRING THE MANDATORY COMPLIANCE BY

MOTORISTS, OF PRIVATE AND PUBLIC VEHICLES TO USE
SEAT BELT DEVICES, AND REQUIRING VEHICLE
MANUFACTURERS TO INSTALL SEAT BELT DEVICES IN ALL
TIIEIR MANUFACTURED VEHICLES

SECTION 1. Short Title. - This Act shall be known as the “Seat Belts
Use Act of 1999.”

the State to secure and safeguard its citizenry, particularly the passengers
and drivers of private and public motor vehicles, from the ruinous and
extremely injurious effects of vehicular accidents. Towards this end, the
State shall pursue a more proactive and preventive approach in order to
secure the safety of the passengers and drivers at all times with the
mandatory enforcement of the use of seat belt devices by the drivers and
front seat passengers of private and public motor vehicles.
SEC. 3. Definition of Terms. - For purposes of this Act, the term:
(a) “Motorist” shall refer to the driver of a motor vehicle.
(b) “Seat belt device” shall refer to any strap, webbing or similar
device in the form of pelvic restraint or lap belt, upper torso restraint or
shoulder strap or a combination thereof designed to secure a person in a
motor vehicle in order to mitigate the results of any accident, including all
necessary buckles and other fasteners, and all hardware designed for
installing such seat belt device in a motor vehicle.
(c) “Motor vehicle” shall refer to both private and public motor
vehicle. The term shall not include the tricycle and motorcycle.
932
(d) “Private motor vehicle” shall refer to any of the following:
(1) Any motor vehicle owned by individuals and juridical persons

for private use;
(2) Any motor vehicle owned by the National Government or any of

its agencies, instrumentalities or political subdivisions, including
government-owned or -controlled corporations or their subsidiaries for
official use; and
(3) Any diplomatic vehicle.
(e) “Public motor vehicle” shall refer to public utility vehicle or

vehicle for hire.
(f) “Motor vehicle of running engine” shall refer to a vehicle as stated

herein, operating and standing on any road or thoroughfare with engine
running.
(g) “Front seat passengers” shall refer to persons on board a public

utility vehicle seated at the right side beside the driver for public utility
jeepneys (PUJs) and to passengers seated at the right side beside the driver
and those at the first row immediately behind the driver in the case of
public utility buses (PUBs) and to passengers seated on the right side beside
the driver for private motor vehicles.
SEC. 4. Mandatory Use of Seat Belts. - For their own safety, the
driver and front seat passengers of a public or private motor vehicle are
required to wear or use their seat belt devices while inside a vehicle of
running engine on any road or thoroughfare: Provided, That for private
vehicles, except for jeeps, jeepneys, vans, buses and such other private
vehicles as may be determined in the Implementing Rules and Regulations
(IRR), front and back seat passengers are likewise required to use their
seat belt devices at all times.
In the case of public motor vehicles, the driver shall be required to

immediately inform and require the front seat passengers upon boarding a
933
vehicle of running engine to wear the prescribed seat belts. Any passenger
who refuses to wear seat belts shall not be allowed to continue his/her trip.
For special public service vehicles such as school services and other
similar vehicles as may be determined by the IRR, seat belt devices should
be provided and used by both drivers and front seat passengers as defined
herein and the first row passengers immediately behind the driver at all
times while inside a vehicle of running engine.
Operational motor vehicles, both public and private, which are not
equipped with the required seat belt devices, are given one (1) year from
the issuance of the IRR by the Land Transportation Office (LTO) to retrofit
appropriate seat belt devices in their vehicles.
SEC. 5. Children Prohibited to Sit in Front Seat. - Infants and or

children with ages six (6) years and below shall be prohibited to sit in the
front seat of any running motor vehicle.
SEC. 6. Coverage. - This Act, in the interest of public safety, shall

apply to drivers and front seat passengers of public and private motor
vehicles and other vehicles as may be determined by the IRR thereon.
SEC. 7. Provisions for Seat Belt. - This Act further requires car
manufacturers, assemblers and distributors to ensure that seat belt devices
are properly installed before the distribution and sale of the said vehicles
as determined by the IRR thereon: Provided, That manufacturers, assemblers
and distributors of jeepneys may install a pelvic restraint or lap belt only in
the driver’s and front seat passengers’ seats and this shall be considered as
substantial compliance with the requirements of this Act.
SEC. 8. Importation. - It shall be unlawful for any person to import

or cause the importation of any vehicle without appropriate and operational
seat belt devices as required herein and in accordance with the IRR thereon.
SEC. 9. Type of Seat Belt Devices Required. - The seat belt devices
required to be installed in all motor vehicles shall comply with the standards
934
and specifications established by the Bureau of Product Standards of the

Department of Trade and Industry (DTI) in consultation with the LTO of
the Department of Transportation and Communications (DOTC): Provided,
That the seat belt devices installed in imported second-hand motor vehicles
shall conform to the standards and specifications of the Bureau of Product
Standards for purposes of importation and registration.
SEC. 10. Registration. - No new motor vehicle shall be allowed initial

registration and succeeding renewal of registration unless it is equipped
with the necessary seat belt devices. Renewal of registration of in-use
vehicles without necessary seat belt devices shall not be allowed one (1)
year after the passage of the IRR as specified in Section 11 of this Act. For
this purpose, the LTO shall include in the implementing guidelines a system
of vehicle registration where compliance with Section 4 hereof is required.
SEC. 11. Period of Implementation. - The LTO shall be the agency

primarily responsible in the enforcement and implementation of this Act.
Within sixty (60) days from the effectivity of this Act, the LTO shall
formulate and issue the necessary implementing rules, regulations and
guidelines and shall mobilize available resources to assure the effective
implementation of this Act: Provided, That the LTO or its successor tasked
with the implementation of this Act may require the use of special car seats
for infants, if it is deemed necessary.
SEC. 12. Penalties and Fines. - In the enforcement of this Act, the
LTO shall impose fines against drivers, operators, owners of vehicles,
manufacturers, assemblers, importers and/or distributors for violation of
this Act.
The following shall be the basis in defining fine and penalty provisions
of the IRR to be promulgated pursuant to Section 11 hereof, provided that
six (6) months grace period shall be allowed to lapse to conduct a nationwide
information campaign:
(1) On the driver
935
(a) For failure to wear the prescribed seat belt devices and/or failure
to require his passengers to wear the prescribed seat belt device, a minimum
fine of One hundred pesos (Pl00) but not to exceed One thousand pesos
(P1,000)for the first violation; a minimum fine of Two hundred pesos (P200)
but not to exceed Two thousand pesos (P2,000) for the second violation;
and a minimum fine of Five hundred pesos (P500) but not to exceed Five
thousand pesos (P5,000)and suspension of driver’s license for a period of
one (1) week for the third and succeeding violations;
(b) Public utility vehicles shall post appropriate signages instructing

front seat passengers to wear seat belts when inside the vehicle. Non-
compliance hereof will hold both the driver and the operator liable and
shall be fined a minimum of Three hundred pesos (P300) but not to exceed
Three thousand pesos (P3,000)for every violation; and
(2) On any manufacturer, assembler, importer and distributor for every

unit found without seat belt devices installed prior to its distribution to the
public, a minimum fine of Five thousand pesos (P5,000)but not to exceed
Ten thousand pesos (PI0,000)and suspension of the license to manufacture,
assemble, import or distribute for a period of one (1) year for the first
violation; a minimum fine of Ten thousand pesos (P10,000)but not to exceed
Twenty thousand pesos (P20,000)and suspension of the license to
manufacture, assemble, import or distribute for a period of two (2) years
for the second violation; and a fine of Twenty thousand pesos (P20,000)
but not to exceed Fifty thousand pesos (P50,000) and suspension of the
license to manufacture, assemble, import or distribute for a period of five
(5) years for the third violation.
SEC. 13. Nationwide Public Information Campaign. - (a) The LTO,

in coordination with the Philippine Information Agency (PIA), the
Department of Education, Culture and Sports (DECS) and private agencies
and organizations, shall undertake a regular nationwide Information,
Education and Communication (IEC) campaign for the attainment of the
objectives of this Act. The campaign shall stress the safety and health value
of seat belts to support the most effective enforcement of this Act.
936
(b) The LTO, in coordination with the local government units, shall
likewise utilize the services of citizen groups and community organizations
for the promotion of public safety awareness in observance of this Act.
(c) The fines that will be collected for the enforcement of this Act
shall be used exclusively for the implementation of the provisions of this
Act, including the necessary promotion campaigns for the use of seat belt
devices.
SEC. 14. Separability Clause. - If any provision, or part hereof, is

held invalid or unconstitutional, the remainder of the law or provision not
otherwise affected shall remain valid and subsisting.
SEC. 15. Repealing Clause. - Section 34, Article IV of Republic. Act

No. 4136 is hereby amended and any law, executive order, decree, issuance,
ordinance, rule and regulation or any part thereof contrary or inconsistent
with the provisions of this Act is also hereby repealed, modified or amended
accordingly.
circulation.
937
AN ACT IMPOSING A MOTOR VEHICLE USER’S CHARGE ON

OWNERS OF ALL TYPES OF MOTOR VEHICLES AND FOR
OTHER PURPOSES

SECTION 1. Declaration of Policy. - It is hereby declared as the

policy of the State to provide for and ensure the adequate maintenance of
national and provincial roads through sufficient funding for the purpose.
SEC. 2. Coverage. - In lieu of the registration fee under Section 8 of

Republic Act No. 4136, as amended by Batas Pambansa Bilang 74, and the
Private Motor Vehicle Tax under Executive Order No. 43. series of 1986,
there is hereby imposed on every motor vehicle, whether for hire or for
private use, including government motor vehicles as more fully provided
in Section 3 hereof, a Motor Vehicle User’s Charge (MVUC) which shall
be collected from and paid by the owner of the motor vehicle.
SEC. 3. Rates of the Motor Vehicle User’s Charge. - (a) For private
passenger cars registered as of the date of effectivity of this Act, the MVUC
to be paid shall be the private motor vehicle tax under Executive Order No.
43, series of 1986, plus twenty-five percent (25%) for the first year, fifty
percent (50%) for the second year, seventy-five percent (75%) for the’ third
year, and one hundred percent (100%) for the fourth year and thereafter:
Provided, however, That private passenger cars to be registered for the first
time after the effectivity of this Act, shall be subject to the MVUC rates
prescribed in Section 3(b) hereof.
(b) Except as provided under Section 3(a) hereof, for each motor
vehicle under each 6f the categories as herein provided, the MVUC shall
be collected from and paid by the vehicle owner, at the following base
rates plus twenty-five percent (25%) in the first year from the effectivity of
this Act; the said base rates plus fifty percent (50%) in the second year
938
from the effectivity of this Act; the said base rates plus seventy-five percent
(75%) in the third year from the effectivity of this Act; and the said base
rates plus one hundred percent (100%) in the fourth year from the effectivity
of this Act and thereafter: Provided, That the MVUC for sports utility
vehicles shall be fifteen percent (15%) higher than the MVUC herein set
for private utility vehicles: Provided, further, That motorcycles for hire
with sidecars shall not pay more than Three hundred pesos (P300,00).
Type of Vehicle Base Rates
I. Private and Government
A. Passenger Cars
(1) GVW up to 1,600 kgs. P 800
(2) GVW more than 1,600 kgs. - 2,300 kgs. 1,800
(3) GVW more than 2,300 kgs. 4,000
B. Utility Vehicles
GVW up to 2,700 kgs. P 1,000
GVW more than 2,700 kgs.- 4,500 kgs. P l,000 + P20
per 100 kgs. of
GVW over
2,700 kgs.
C. Motorcycles
without sidecar P 120
with sidecar 150
D. Buses
GVW more than 4,500 kgs. P900 + P12 per 100
kgs. of GVW over
2,700 kgs.
E. Trucks
GVWmore than 4,500 kgs. P900 + P12 per 100
kgs. of GVW over
2,700 kgs.
939
F. Trailers
GVW more than 4,500 kgs. P12 per 100 kgs. of
GVW
II. For Hire
A Passenger Cars
(1) GVW up to 1,600 kgs. P 450
(2) GVW more than 1,600 kgs.- 2,300 kgs. 900
(3) GVW more than 2,300 kgs. 2,500
B. Utility Vehicles
GVWup to 4,500 kgs. PI5 per 100 kgs. of
GVW
C. Motorcycles
without sidecar P150
with sidecar 240
D. Buses
GVWmore than 4,500 kgs. P15 per 100 kgs. of GVW
E. Trucks
GVWmore than 4,500 kgs. P900 + P12 per 100 kgs.
of GVW over 2,700 kgs.
F. Trailers
GVW more than 4,500 kgs. P12 per 100 kgs. of GVW
After the fourth year from the effectivity of this Act, the President of
the Philippines may adjust the rates contained in Section 3 which shall be
reflective of but shall not exceed the annual rate of increase of the Consumer
Price Index (CPI).
The President may adjust such rates not more than once every five
(5) years.
940
SEC. 4. Government Motor Vehicles. - The manner of payment of

the user’s charge on government motor vehicles shall be in accordance
with the procedure that shall be promulgated by the Secretary of the
Department of Budget and Management (DBM).
SEC. 5. Reclassification and New Models of Motor Vehicles. - The

Land Transportation Office (LTO)shall submit any recommendation for
any change in the classification of motor vehicles above-listed for approval
by the Secretary of the Department of Transportation and Communications
(DOTC). All manufacturers and or assemblers of motor vehicles shall, not
later than three (3) months prior to the introduction of any new model of
motor vehicle in the market, submit the specifications of such new model
to the LTO which shall recommend for approval by the said secretary, the
proper classification of the new model and the rate of the MVUC under
which the new model shall fall. The LTO shall also release the proper
classification of said new motor vehicle model on or before the scheduled
release of such new model to the market, but in no case later than three (3)
months after its receipt of the new motor vehicle’s specifications.
SEC.6. Penalty for Overloading. - An amount equivalent to twenty-

five percent (25%) of the MVUC shall be imposed on trucks and trailers
for loading beyond their prescribed gross vehicle weight: Provided, That
no axle load shall exceed thirteen thousand five hundred kilograms (13,500
kgs.).
SEC. 7. Disposition of Monies Collected. - All monies collected under

this Act shall be earmarked solely and used exclusively (1) for road
maintenance and the improvement of road drainage. (2) for the installation
of adequate and efficient traffic lights and road safety devices. and (3) for
air pollution control.
All such monies collected shall be deposited in four (4) special trust
accounts in the National Treasury. namely: (1) Special Road Support Fund;
(2) Special Local Road Fund; (3) Special Road Safety Fund; and (4) Special
Vehicle Pollution Control Fund. The distribution of collections under this
Act shall be as follows:
941
(1) Eighty percent (80%) shall be allotted to and placed in the Special
Road Support Fund;
(2) Five percent (5%) shall be allotted to and placed in the Special
Local Road Fund;
(3) Seven and one-half percent (7.5%) shall be allotted to and placed
in the Special Road Safety Fund; and
(4) Seven and one-half percent (7.5%) shall be allotted to and place
in the Special Vehicle Pollution Control Fund.
The Special Road Support Fund, the Special Local Road Fund and
the Special Road Safety Fund shall be under the DPWH, whereas the Special
Vehicle Pollution Control Fund shall be under the DOTC.
Seventy percent (70%) of the Special Road Support Fund shall be

used exclusively for the maintenance of, and the improvement of drainage
of. national primary roads. The remaining thirty percent (30%) thereof shall
be allocated and used for the maintenance, and improvement of drainage
of national secondary roads throughout the country.
The cost of installation of adequate and efficient traffic lights and

road safety devices throughout the country, where such traffic lights and
safety devices are needed, shall be taken from the Special Road Safety
Fund.
The Special Local Road Fund shall be apportioned to provincial and

city governments in accordance with the vehicle population and size of the
road network under their respective jurisdictions, and shall be used
exclusively for maintenance of local roads, traffic management and road
safety devices.
A Road Board to implement the prudent and efficient management

and utilization of the special funds shall be organized by the President of
the Philippines. The Road Board shall be composed of seven (7) members,
942
with the Secretary of the DPWH as ex officio head, and the secretaries of
the Departments of Finance, Budget and Management, and Transportation
and Communications, as ex officio members. The remaining three (3)
members shall come from transport and motorist organizations which have
been in existence and active for the last five (5) years prior to this Act.
They shall be appointed for a term of two (2) years each by the President of
the Philippines upon the recommendation of the secretaries of the DPWH
and the DOTC.
SEC. 8. Status of the Special Funds. - The four (4) special funds
established under this Act shall be distinct and separate from and in addition
to any appropriation authorized and granted yearly to the DPWH and the
DOTC to cover expenditures for the identified objects of expenditures under
this Act. Congress shall continue to appropriate an amount in the General
Appropriations Act for road maintenance of the DPWH: Provided, however,
That any savings for each year out of such appropriation shall revert to the
General Fund. Any savings from the special funds created herein shall accrue
to these respective special funds.
SEC. 9. Implementing Rules and Regulations. – The secretaries of

the DPWH and the DOTC shall jointly within thirty (30) days from the
effectivity of this Act, promulgate the rules and regulations to implement
and carry out the intent, objectives, purposes and provisions of this Act,
including such structural and procedural improvements in the systems and
agencies concerned as may be necessary to ensure the prudent, wise,
effective and efficient utilization of the special funds established under
this Act: Provided, That the Secretary of the DPWH shall prepare the portion
of the implementing rules and regulations pertaining to the Special Road
Support Fund, the Special Local Road Fund, and the Special Road Safety
Fund, and the Secretary of the DOTC shall prepare the portion of the
implementing rules and regulations pertaining to the collection of the MVUC
stated under Section 3 of this Act and on the disposition of the monies
accruing to the Special Vehicle Pollution Control Fund.
SEC. 10. Prohibition Against the Imposition of Similar Charge on

Users of Motor Vehicles. - No other tax, fee or any other charge of similar
943
nature, as the Motor Vehicle User’s Charge shall be imposed by any political
subdivision or unit in the country.
This provision shall apply to all motor vehicles, including tricycles,

motorized pedicabs and “trisikads”.
SEC. 11. Repealing Clause. - Except as provided under Section 3

hereof, all other provisions of Executive Order No. 43, series of 1986, and
Section 8 of Republic Act No. 4136, as amended by Batas Pambansa Bilang
74, and all other laws, orders, issuances, circulars, rule and regulations or
parts thereof, which are inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.
SEC. 12. Separability Clause. If any provision of this Act is declared

unconstitutional or invalid, other parts or provisions hereof not affected
hereby shall continue to be in full force and effect.
SEC. 13. Effectivity. - This Act shall take effect after fifteen (15)
days following its publication in at least two (2) newspapers of general
circulation.
944
AN ACT GRANTING THE AIR MABUHAY CORPORATION A

DOMESTIC AND INTERNATIONAL AIR TRANSPORT
SERVICES FOR THE CARRIAGE OF PASSENGERS, MAILS,
GOODS AND PROPERTY, AND OTHER ALLIED SERVICES


there is hereby granted to Air Mabuhay Corporation, hereunder referred to
as the grantee, its successors or assigns, a franchise to establish, operate
and maintain air transport services for the carriage of passengers, mails,
goods and property, both domestic and international.

operations.
945


at all times be subject to inspection and regulations by the Air Transportation
Office.

Numbered Seven Hundred and Seventy-Six, and the regulations
promulgated there under from time to time.
SEC. 3. Responsibility to the Public. - Excepting in cases of force

rates for the transportation of passengers, mails, goods and freight, subject

twenty -five (25) years from the date of effectivity of this Act, unless sooner
its permits by the Civil Aeronautics Board;
946
(c) Commence operations within two (2) years from theeffectivity of

this Act.

granted under this Act. Non acceptance shall render the franchise void.


947


SEC. 12. Sale, Lease, Transfer, Usufruct, Etc. – The grantee shall
Act.
SEC. 13. Dispersal of Ownership. - In accordance with constitutional

facto revoked.

948

provisions shall be deemed part hereof and shall operate in favor of the
herein grantee.

shall remain valid.


from the date of its publication, upon the initiative of the grantee, in at
least two (2) newspapers of general circulation in the Philippines.
949
AN ACT GRANTING THE LAOAG INTERNATIONAL AIRLINES, INC.

SERVICES


there is hereby granted to Laoag International Airlines, Inc., hereunder
referred to as the grantee, its successors or assigns, a franchise to establish,
operate and maintain air transport services for the carriage of passengers,
mail, goods and property, both domestic and international.

SEC. 2. Civil Aeronautics Board. – The grantee shall secure from the
operations.
950


Office.

Numbered Seven Hundred and Seventy-Six, and the regulation promulgated

rates for the transportation-of passengers, mail, goods and freight, subject

(a) Commence operations within one (l) year from the approval of
951
of this Act.
SEC. 6. Acceptance and Compliance. – Acceptance of this franchise

SEC. 7. Bond. – The grantee shall file a bond issued in favor of the
shall be canceled by the Board. Otherwise, the bond shall be forfeited in

SEC. 10. Right of Government. – A special right is hereby reserved

to the President of the Philippines, in times of war, rebellion, public peril,
952


Act.
SEC. 13. Dispersal of Ownership. – In accordance with constitutional

exchange in the
Philippines within five (5) years from the commencement of its

operations. Noncompliance therewith shall render the franchise ipso facto
revoked.
953

provisions shall be deemed part hereof and shall operate equally in favor
of the herein grantee.
SEC. 15. Separability Clause. – If any of the sections or provisions

shall remain valid.


Approved,
** Lapsed into law on April 9, 2001 without the signature of the President, in
954
AN ACT AMENDING REPUBLIC ACT NO. 7583, ENTITLED “AN ACT

GRANTING THE ABOITIZ AIR TRANSPORT CORPORATION
TRANSPORT SERVICES FOR THE CARRIAGE OF GOODS,
MAILS AND OTHER PROPERTY BY AIR, BOTH DOMESTIC
AND INTERNATIONAL”

SECTION 1. The title of Republic Act No. 7583 is hereby amended

to read as follows:
“An Act Granting The Aboitiz One, Inc. A Franchise To Establish,

Operate And Maintain Transport Services For The Carriage of Goods, Mails
And Other Property By Air, Both Domestic and International.”
SEC. 2. Section 1, Paragraph 1 of Republic Act No. 7583 is hereby

“SECTION 1. Nature and Scope of Franchise. - Subject to the

there is hereby granted to Aboitiz One, Inc., hereunder referred to as the
grantee, its successors or assigns, a franchise to establish, operate and
maintain transport services for the carriage of goods, mails and other
property by air, both domestic and international”
SEC. 3. Section 9 of Republic Act No. 7583 is hereby amended to

read as follows:
“SEC. 9. Public Equity Participation. - In accordance with the

herein grantee shall make the public offering through the stock exchange
955
of at least thirty percent (30%) of its common stock within a period of

fifteen (15) years from the date of effectivity of this Act: Provided, That no
(5%) of the stock offering.”
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days from
the date of its publication, upon the initiative of the grantee, in at least two
(2) newspapers of general circulation in the Philippines.
956
AN ACT GRANTING THE PROVINCIAL AIRWAYS CORPORATION

SERVICES


there is hereby granted to Provincial Airways Corporation, hereunder
referred to as the grantee, its successors or assigns, a franchise to establish,
operate and maintain transport services for the carriage of passengers, mails,
goods and property by air, both domestic and international.

operations.

equipment shall at all times be air worthy and the crew members shall be
957

with radio communications, safety and other equipment, and shall be
requirements of the Air Transportation Office(ATO) or such other regulatory
bodies the government may prescribe for this purpose.

at all times be subject to inspection and regulation by the ATO.

Numbered Seven Hundred and Seventy-Six (RA. No. 776) and the
regulations promulgated thereunder from time to time.

its frequencies shall be for domestic market.

958
of this Act.
SEC. 6. Acceptance and Compliance. -Acceptance of this franchise

by the government within the Philippines on the grantee’s line subject to
SEC. 9. Contracts.- The grantee is authorized to enter into

SEC. 10. Right of Government. -A special right is hereby reserve to

959

The grantee shall hold the national, provincial, city and municipal
persons, caused by the operation of the services under the franchise hereby
granted.
contemporaneously. to any such person, firm, company, corporation or entity
without the prior approval of the Congress of the Philippines. Any persons
Act.
SEC. 13. Dispersal of Ownership. - In accordance with the

constitutional provision to encourage public participation in public utilities,
the grantee shall offer at least thirty percent (30%) of its outstanding capital
stock or a higher percentage that may hereafter be provided by law in any
securities exchange in the Philippines within five (5) years from the
commencement of its operations. Noncompliance therewith shall render
the franchise ipso facto revoked.

960

herein grantee at any disadvantage, then such terms and/or provisions shall
be deemed part hereof and shall operate equally in favor of the herein
grantee.

shall remain valid.


days from the date of its publication, upon the initiative of the grantee, in
at least two (2) newspapers of general circulation in the Philippines.
Approved,
** Lapsed into law on December 15, 2002 without the signature of the President,
961
AN ACT GRANTING THE ASIAN SPIRIT, INC. A FRANCHISE TO

ESTABLISH, OPERATE AND MAINTAIN DOMESTIC AND
INTERNATIONAL AIR TRANSPORT SERVICES


there is hereby granted to Asian Spirit, Inc., hereunder referred to as the
grantee, its successors or assigns, a franchise to establish, operate and
maintain transport services for the carriage of passengers, mail, goods and
property by air, both domestic and international.

The grantee shall have the right at its terminal and landing fields as
transmitting sets for wireless telegraphy and direction findings and other
SEC. 2. Civil Aeronautics Board/Air Transportation Office. - The

grantee shall secure from the Civil Aeronautics Board the appropriate
permits and licenses for its operations.

962


Office.
The grantees shall comply with the provisions of Republic Act

Numbered Seven hundred and seventy-six (R. A. No. 776), and the
regulation promulgated thereunder from time to time.

SEC. 5.Terms of Franchise. - This franchise shall be for a term of

(a) Commence operation within one (1) year from the approval of its
permit by the Civil Aeronautics Board;
(b) Operate continuously for two years; and
963
of this Act.

Act. Upon giving such acceptance the grantee shall exercise the privileges
SEC. 7. Bond the grantee shall file a bond issued in favor of the Civil
Aeronautics Board, which shall determine the amount to guarantee the
compliance with and fulfillment of the conditions under which this franchise
is granted. If, after three (3) years from the date of the approval of its
permit by the Board, the grantee shall have fulfilled the same, the bond
shall be cancelled by the Board. Otherwise the bond shall be forfeited in
as the Philippine Government may impose: Provided, That the, Philippine
as may be maintained and owned by the grantee in the Philippines.

the Phi1ippine Government. The grantee may likewise enter into

the President of the Philippines, in time of war, rebellion, public peril,
964
equipment during period when they shall be so operated.
SEC. 11. Warranty in Favor of the National and Local Governments.

- The grantee shall hold the national, provincial, city and municipal
granted.
SEC. 12. Sale, Lease, Transfer, Usufruct Etc. – The grantee shall not
lease, transfer, grant the usufruct of, sell nor assign this franchise or the
rights and privilege acquired thereunder to any person, firm, company,
or entity to which this franchise is sold, transferred or assigned, shall be
subject to the same condition, terms, restrictions and limitations of this
Act.
SEC. 13. Dispersal of Ownership. - In accordance with the

the grantee shall offer at least thirty percent (30%)of its outstanding capital

965

the herein grantee at any disadvantage then such terms and/or provisions
shall be deemed part hereof and shall operate equally in favor of the herein
grantee.
SEC. 15. Separability Clause – If any of the sections or provisions

of this Act is held invalid all other provisions not affected thereby shall
remain valid.
SEC. 16. Repealability and Nonexclusivity Clause. –This franchise


annual report the Congress of the Philippines on its compliance with the
SEC. 18. Effectivity Clause. – This Act shall take effect fifteen (15)
days from the date of publication, upon the initiative of the grantee, in at
Approved,
** Lapsed into law on January 9, 2003 without the signature of the President in
966
AN ACT AMENDING REPUBLIC ACT NO. 8339, ENTITLED “AN ACT

GRANTING AIR PHILIPPINES CORPORATION (AIR
TRANSPORT SERVICES”

SECTION 1. Section 11 of Republic Act No. 8339 is hereby amended

to read as follows:
“SEC. 11. Tax Provisions. - The grantee, its successors or assigns,

shall pay to the Philippine Government during the life of its franchise a
franchise tax of five percent (5%) of the gross revenues derived by the
grantee from its transport operations.

receives or enjoys tax privileges and other favorable terms which tend to
grantee. The grantee shall, however, be subject to income tax levied under
than air transportation.” .

read as follows:
“Sec. 14. Dispersal of Ownership. - In accordance with constitutional

exchange in the Philippines within ten (10) years from the commencement
967

facto revoked. “

read as follows:
“Sec. 15. Nonexclusivity Clause. - This franchise shall not be

for.”

read as follows:
“Sec. 17. Repealability Clause. - This franchise shall be subject to

amendment, alteration or repeal by the Congress of the Philippines when
the public interest so requires.”
SEC. 5. Separability Clause. - If any of the sections or revisions of

this Act is held or declared unconstitutional or invalid a competent court in
a final judgment, all the other sections or provisions not affected thereby
shall remain valid.
SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days’
Approved, July 26, 2003.
968
AN ACT PROMOTING THE DEVELOPMENT OF PHILIPPINE

DOMESTIC SHIPPING, SHIPBUILDING, SHIP REPAIR AND SHIP
BREAKING, ORDAINING REFORMS IN GOVERNMENT
POLICIES TOWARDS SHIPPING IN THE PHILIPPINES, AND
FOR OTHER PURPOSES

CHAPTER 1
GENERAL PROVISIONS
SECTION1. Short Title. - This Act shall be known as the “Domestic

Shipping Development Act of 2004.”
SEC. 2. Declaration of Policy. - The State recognizes that shipping

is a necessary infrastructure, which is vital to the economic development
of our country.
The Philippines needs a strong and competitive domestic merchant

fleet owned and controlled by Filipinos or by corporations at least sixty
percent (60%) of the capital of which is owned by Filipinos and manned by
qualified Filipino officers and crew, which shall: (a) bridge our islands by
ensuring safe, reliable, efficient adequate and economic passenger and
cargo service; (b) encourage the dispersal of industry and the economic
development of our regional communities by ensuring the availability of
regular, reliable and efficient shipping services; (c) ensure the growth of
exports by providing necessary, competitive and economical domestic sea
linkages; (d) serve as a naval and military auxiliary in times of war and
other national emergencies; and (e) function as an employment support
base for our Filipino seafarers.
To attain these objectives, it is hereby declared to be the policy of

the State to: (a) promote Filipino ownership of vessels operated under the
969
Philippine flag; (b) attract private capital; to invest in the shipping industry
by creating a healthy and competitive investment and operating
environment; (c) provide necessary assistance and incentives for the
continued growth of the Philippine domestic merchant marine fleet; (d)
encourage the improvement and upgrading of the existing domestic
merchant marine fleet and Filipino crew to meet international standards;
(e) ensure the continued viability of domestic shipping operations; and (f)
encourage the development of a viable shipbuilding and ship repair industry
to support the expansion and modernization of the Philippine domestic
merchant marine fleet and its strict adherence to safety standards which
will ensure the seaworthiness of all sea-borne structures.
SEC. 3. Definition of Terms. – As used in and for purposes of this

Act the following terms, whether in singular or plural, are hereby defined
as follows:
(a) “Domestic Shipping” shall mean the transport of passengers or

cargo, or both, by ships duly registered and licensed under Philippine law
to engage in trade and commerce between Philippine ports and within
Philippine territorial or internal waters, for hire or compensation, with
general or limited clientele, whether permanent, occasional or incidental,
with or without fixed routes, and done for contractual or commercial
purposes;
(b) “Domestic Trade” shall mean the sale, barter or exchange of goods,
materials or products within the Philippines;
(c) ‘’Domestic Ship Operator” or “Domestic Ship Owner” may be

used interchangeably and shall mean a citizen of the Philippines, or a
commercial partnership wholly owned by Filipinos, or a corporation at
least sixty percent (60%) of the capital of which is owned by Filipinos,
which is duly authorized by the Maritime Industry Authority (MARINA)
to engage in the business of domestic shipping;
(d) “Shipper” shall mean any person, partnership or corporation who

shall procure for itself the services of a domestic ship operator for the
970
carriage of its cargo in the domestic trade upon payment of proper

compensation;
(e) “MARINA” shall mean the Maritime Industry Authority;
(f) “Ship” or “Vessel” may be used interchangeably and shall mean

any kind, class or type of craft or artificial contrivance capable of floating
in water, designed to be used, or capable of being used, as a means of water
transport in the domestic trade for the carriage of passengers or cargo, or
both, utilizing its own motive power or that of another;
(g) “Importation” shall mean the direct purchase, lease or charter of

newly constructed or previously owned ships, or the purchase of ships spare
parts from foreign sources or from registered enterprises operating in special
economic zones as this term is defined in Republic Act No. 7916 entitled,
“The Special Economic Zone Act of 1995;”
(h) “Spare parts shall mean the replacement parts or components of a

vessel, including but not limited to its hull, engines, machineries, equipment,
appurtenances, necessaries, accessories, articles, supplies, materials, steel
plates aluminum plates, other metal plates, communications equipment and
other parts or components thereof, installed aboard the ship necessary for
its safe and efficient navigation and operation;
(i) “Certificate of Public Convenience” shall mean the license or

authority issued by MARINA to a domestic ship operator to engage in
domestic shipping;
(j) “Cargo handling equipment” shall mean any machinery, gear or

equipment used by the ship operator or a duly authorized licensed port
operator to service or handle cargo, on board the vessel, at the pier, or in
the terminal or container yard such as, but not limited to, cranes, forklifts,
top lifts, stackers, tractor heads, containers, pallet boards, and the like
including all spare parts, replacement parts; appurtenances, accessories,
articles, supplies and materials thereof;
971
(k) “Shipbuilding” shall mean the design, constructing, launching

and outfitting of all types of ships and watercraft;
(l) “Ship repair” shall mean the overhaul, refurbishment, renovation,

improvement, or alteration, of the hull, machineries, equipment, outfits
and components of all types of ships;
(m) “Shipyard” shall mean the shipbuilding or repair facilities which

have the capability to lift vessels above the waterline in order to effect ship
work on vessels, appendages, structure, machinery and equipment; and
(n) “Shipbuilder” and “Ship repairer” shall mean a citizen of the

Philippines, or a commercial partnership owned by majority of Filipinos,
or a corporation· incorporated under the laws of the Philippines, the capital
of which is owned or controlled in any proportion by Filipinos or by foreign
nationals, or by both such Filipinos or foreign nationals, or by corporations
whether Filipino or foreign-owned, which is duly authorized by the
MARINA to engage in the business of shipbuilding or ship repair or to
otherwise operate a shipyard, graving dock or marine repair yard.
CHAPTER II
INVESTMENT INCENTIVES
SEC. 4. Investment Incentives. - To ensure the continued viability of

domestic shipping, and to encourage investments in the domestic shipping
industry, the following incentives shall be granted to qualified domestic
ship operators:
(a) Exemption from value-added tax on the importation and local

purchase of passenger and/or cargo vessels of one hundred fifty (150) tons
and above, including engine and spare parts of said vessels: Provided, That
the vessels to be imported shall comply with the age limit requirement, at
the time of acquisition counted from the date of the vessel’s original
commissioning, as follows: 1) For passenger and/or cargo vessels, the age
limit is fifteen (15) years old, 2) For tankers, the age limit is ten (10) years
972
old, and 3) For high-speed passenger crafts, the age limit is five (5) years
old; and
(b) Exemption from value-added tax on the importation of life-saving

equipment, safety and rescue equipment and communication and
navigational safety equipment, steel plates and other metal plates including
marine-grade aluminum plates, used for transport operations.
The importation of the articles under Section 4( a) and (b) of the Act
shall be granted exemption from value-added tax subject to the following
conditions: (1) That said articles are not manufactured domestically in
sufficient quantity, of comparable quality and at reasonable prices; (2) That
said articles are directly imported by a MARINA-registered domestic
shipping operator; (3) That said articles are reasonably-needed and will be
used exclusively by the registered domestic shipping operator in its transport
operations; (4) That the approval of MARINA was obtained prior to the
importation of said articles; and (5) That exemption from value-added tax
on the importation of said articles shall be granted to all domestic shipping
operators within a period of ten (l0) years from the effectivity of this Act.
Any sale, transfer or disposition of articles covered under Section

4(a) and (b) within ten (10) years from the effectivity of this Act to another
registered shipping operator enjoying similar incentive shall require prior
approval of MARINA. If the sale, transfer or disposition was made without
prior approval of MARINA, both the vendor and the transferee or assignee
shall be liable to pay twice the amount of value added tax exemption given
him; Provided further, That if the sale, transfer or disposition was made to
a nonexempt entity or to a party other than a registered domestic ship
operator within ten (10) years from the effectivity of this Act, both the
vendor and the transferee or assignee shall be solidarily liable to pay twice
the amount of the value-added tax waived: Provided, finally, That the sale,
transfer or disposition made after ten (10) years from the effectivity of this
Act shall be made by informing MARINA in writing. The purchase
transferees or recipients shall be considered the importers thereof, who
shall be liable for any internal revenue tax on such importation. The tax
due on such importation shall constitute a lien on article itself and such
973
lien shall be superior to all charges or liens on the goods, irrespective of

the possessor thereof. The Bureau of Internal Revenue (BIR) shall be
furnished with the notice of actions taken by the MARINA.
(c) Net operating loss carry over. A net operating loss in any taxable
year immediately preceding the current taxable year, which had not been
previously offset as a deduction from the gross income shall be carried
over for the next three (3) consecutive taxable years immediately following
the year of such loss subject to the pertinent provisions of the National
Internal Revenue Code of 1997, as amended.
(d) Accelerated depreciation. Fixed assets may be depreciated as

follows:
(i) To the extent of not more than twice as fast as the normal rate of
depreciation or depreciated at normal rate of depreciation if the expected
life is ten (10) years or less; or
(ii) Depreciation over any number of years between five (5) years
and the expected life if the latter is more than ten (10) years, and the
depreciation thereon allowed as deduction from taxable income: Provided,
That the domestic shipping operator notifies the BIR at the beginning of
the depreciation period which depreciation rate allowed by this section
will be used.
CHAPTER III
DEREGULATION OF THE DOMESTIC

SHIPPING INDUSTRY -AUTHORTIY OF
THE MARITIME INDUSTRY AUTHORTIY
SEC. 5. Authority to Operate. –No franchise, certificate or any other

form of authorization for the carriage of cargo or passenger, or both, in the
domestic trade, shall granted except to domestic ship owners or operators.
SEC. 6. Foreign Vessels Engaged in Trade and Commerce in

Philippine Territorial Waters. - No foreign vessel shall be allowed to
974
transport passengers or cargo between ports or places within the Philippine

territorial waters, except upon the grant of Special Permit by the MARINA
when no domestic vessel is available or suitable to provide the needed
shipping service and public interest warrants the same.
SEC. 7. Issuance of Authority to Operate. – The MARINA shall have

the power and authority to issue certificates of public convenience to
qualified domestic ship operators, taking into consideration the economic
and beneficial effect which the proposed service shall have to the port,
province or region which it proposes to serve, and the financial capacity of
the domestic ship operator to provide and sustain safe, reliable, adequate,
efficient and economic service in accordance with the standards set by the
government regulation.
Every domestic ship operator shall state in its application the route it
proposes to serve, and the service it proposes to offer. Domestic ship
operators who do not intend to operate in a fixed route shall nevertheless
state in its application the service it proposes to offer.
SEC. 8. Deregulation of the Domestic Shipping Industry. – In order

to encourage investments in the domestic shipping industry by existing
domestic ship operators and attract new investment from new operators
and investors, domestic ship operators are hereby authorized to establish
their own domestic shipping rates: Provided, That effective competition is
fostered and public interest is served.
The MARINA shall monitor all shipping operations and exercise

regulatory intervention where it is established, after due process that public
interest needs to be protected and safeguarded.
SEC. 9. Safety Standards. - All vessels operated by domestic ship

operators shall at all times be in sea worthy condition, properly equipped
with adequate life-saving, communication, safety and other equipment,
operated and maintained in accordance with the standards set by MARINA,
and manned by duly licensed and competent vessel crew:
975
The MARINA shall have the power to inspect vessels and all
equipment on board vessels to ensure compliance with safety standards.
SEC. 10. Jurisdiction; Powers; and Duties of MARINA. – The MARINA

shall have the power and authority to:
(1) Register vessels;
(2) Issue certificates of public convenience, or any extensions or

amendments thereto, authorizing the operation of all kinds, classes and
types of vessel in domestic shipping: Provided, That no such certificate
shall be valid for a period of more than twenty-five (25) years;
(3) Modify, suspend or revoke at anytime, upon notice and hearing,

any certificate, license or accreditation it may have issued to any domestic
ship operator;
(4) Establish and prescribe, routes, zones and areas of operations of

domestic ship operators;
(5) Require any domestic ship operator to provide shipping services

to any coastal area, island or region in the country where such services are
necessary for the development of the area, to meet emergency sealift
requirements, or when public interest so requires;
(6) Set safety standards for vessels in accordance with applicable

convention and regulations;
(7) Require all domestic ship operators to comply with operational

and safety standards for vessels set by applicable conventions and
regulations, maintain its vessels in safe and serviceable condition, meet
the standards of safety of life at sea and safe manning requirements, and
furnish safe, adequate, efficient, reliable and proper service at all times;
(8) Inspect all vessels to ensure and enforce compliance with safety
standards and other regulations;
976
(9) Ensure that all domestic ship operators shall have the financial
capacity to provide and sustain safe, reliable efficient and economic
passenger or cargo service, or both;
(10) Determine the impact which any new service shall have to the
locality it will serve;
(11) Adopt and enforce such rules and regulations which will ensure
compliance by every domestic ship operator with required safety standards
and other rules and regulations on vessel safety;
(12) Adopt such rules and regulations which ensure the reasonable
stability of passengers and freight rates and if necessary, to intervene in
order to protect public interest;
(13) Hear and adjudicate any complaint made in writing involving

any violation of this law or the rules and regulations of the Authority:
(14) Impose such fines and penalties on, including the revocation of
licenses of, any domestic ship operator who shall fail to maintain its vessels
in safe and serviceable condition, or who shall violate or fail to comply
with safety regulations;
(15) Investigate any complaint made in writing against any domestic

ship operator, or any shipper, or any group of shippers regarding any matter
involving violations of the provisions of this Act;
(16) Upon notice and hearing, impose such fines, suspend or revoke
certificates of public convenience or other license issued, or otherwise
penalize any ship operator, shipper or group of shippers found violating
the provisions of this Act; and
(17) Issue such rules and regulations necessary to implement the

provisions of this Act: Provided, That such rules and regulations cannot
change or in any way amend or be contrary to the intent and purposes of
this Act.
977
CHAPTER IV
RATES
SEC. 11. Rates. - Every domestic ship operator shall have the right
to fix its own passenger or cargo rates, or both.
SEC. 12. Government Cargo. – Every domestic ship operator shall

have the obligation to carry mail on mutually agreed terms and conditions,
and preferential, negotiated conditions shall be given for the carriage of
other government cargo.
SEC. 13. Monopolized Routes. –The MARINA shall have the

authority to draw up such rules and regulations necessary for service in
monopolized routes to determine the fairness of passenger and cargo rates
needed to sustain the service taking into consideration the economic and
beneficial effect which the service shall have to the port, province, island
or region it proposes to serve, the volume of passengers and cargo available,
the level and quality of service offered by the ship operator, and the available
port facilities and terminal handling services.
CHAPTER V
COMPULSORY
INSURANCE COVERAGE
SEC. 14. Compulsory Insurance Coverage For Passenger and Cargo.

- To meet its financial responsibility for any liability which a domestic ship
operator may incur for any breach of the contract of carriage, every domestic
ship operator shall be required to submit annually the following:
(1) Adequate insurance coverage for each passenger in an amount to

be computed in accordance with existing laws, rules and regulations, and
the total amount of such coverage shall be equivalent to the total number of
passenger accommodations being offered by the vessel;
978
(2) Adequate insurance coverage for cargo in an amount to be

computed in accordance with existing, laws, rules and regulations, and the
total amount of such coverage shall be equivalent to the total cargo capacity
being offered by the vessel; and
(3) If a domestic ship operator should offer both passenger and cargo
service, then the total insurance coverage shall be in the total sum equivalent
to that stipulated in paragraphs (l) and (2) of this section.
Provided, That if a domestic ship operator should operate more than

one (1) vessel, the amount of insurance coverage required under this section,
for purposes of proving financial capacity, shall be the amount equivalent
to the total number of passenger accommodations, or total cargo capacity,
or both, of the largest operating vessel which the domestic ship operator
may have: Provided, further, That the total insurance coverage which may
be required of any domestic ship operator shall not exceed the value of
such vessel: Provided, finally, That adequate insurance coverage shall be
obtained from any duly licensed insurance company or international
protection and indemnity association.
SEC. 15. Other Insurance Coverage. – The MARINA shall have the
power to require every ship operator to obtain such other compulsory
insurance coverage necessary to adequately cover claims for damages.
CHAPTER VI
PROHIBITED ACTS
AND PRACTICES
SEC. 16. Prohibited Acts and Practices of Domestic Ship Operators.

- The MARINA shall have the power to impose such fines and penalties
against every domestic ship operator who shall:
(1) Operate without a valid certificate of public convenience,

accreditation or other form of authority required by this Act;
979
(2) Refuse to accept or carry any passenger or cargo without just

cause;
(3) Fail to maintain its vessels in safe and serviceable condition, or

violate safety rules and regulations;
(4) Fail to obtain or maintain adequate insurance coverage;
(5) Fail to meet or maintain safe manning requirements; and
(6) Such other acts which the MARINA shall determine, after due
notice and hearing, to be detrimental or prejudicial to the safety, stability
and integrity of domestic shipping.
CHAPTER VII
FEES, FINES AND PENALTIES
SEC. 17. Fees.- The MARINA shall have the power to impose, fix,
collect and receive in accordance with the schedules approved by its Board,
such fees necessary for the licensing, supervision, regulation, inspection,
approval and accreditation of domestic ship operators and the promotion
and development of the country’s maritime industry. The MARINA shall
have the power to establish and manage a trust fund for this purpose.
Fees prescribed by the MARINA under this section shall be imposed

and collected in order to recover the cost for rendering the service and
shall not be used in order to impose a pena1ty on the domestic ship operator.
Excessive fees, multiple fees and duplicative fees shall at all times be
avoided.
The supervision fee provided in Sec. 40 (e) of Commonwealth Act

No. 146 insofar as the same applies to the operation, management, control
and regulation of vessels, steamboats, steamship lines, ferries, water craft
and the like, is hereby repealed.
980
SEC. 18. Fines and Penalties.- The MARINA, upon notice and
hearing and a determination of the existence of any breach or violation of
the provisions of this Act or any rules and regulations issued pursuant
thereto, shall have the power and authority to:
(1) Suspend or revoke any certificate of public convenience, license,

permit, accreditation, or other form of authority issued to any domestic
ship operator who shall violate any provision of this Act or any rules and
regulations issued pursuant thereto, or any condition imposed on such
certificate of public convenience, license, permit or accreditation;
(2) Impose a fine on a domestic ship operator who shall operate

without a valid certificate of public convenience, license, permit,
accreditation or other form of authority;
(3) Impose a fine on a domestic ship operator in an amount to be

determined by the MARINA for refusing to accept, or to carry passengers
or cargo, without just cause, or for engaging in any prejudicial,
discriminatory or disadvantageous act towards any class of passengers or
shippers;
(4) Impose a fine on any domestic ship operator in an amount to be

determined by the MARINA, or suspend or revoke the certificate of public
convenience of such domestic ship operator, or both, who shall fail to meet
the standards of such safety or who refuses to comply with or violates
safety regulations imposed by the MARINA or fails to maintain its vessels
in safe and serviceable condition;
(5) Impose a fine on any domestic ship operator in an amount to be,

determined by the MARINA, or impose such other penalty, including the
revocation of any certificate or license, who fails to procure or renew
required insurance policies;
(6) Impose a fine on any domestic ship operator in an amount to be

determined by the MARINA, or impose such other penalty, including the
revocation of any certificate or license who fails to meet or to maintain
safe manning requirements; and
981
(7) Imposes such other fines and penalties the MARINA may deem
necessary and appropriate in order to enforce the provisions of this Act.
CHAPTER VIII
SHIPBUILDING
AND SHIP REPAIR
SEC. 19. Shipbuilding and Ship Repair Investment Incentives: -To

encourage investments and to ‘ensure the development of a viable
shipbuilding and ship repair, industry, the following incentives are hereby
granted:
(a) Exemption from value-added tax on the importation of capital

equipment, machinery, spare parts, life saving and navigational equipment
steel plates and other metal plates including marine grade aluminum plates
to be used in the construction, repair, renovation or alteration of any
merchant marine vessel operated, or to be operated in the domestic trade.
The importation of the above articles shall be granted exemption

from value-added tax subject to the following conditions: (1) That said
articles are not manufactured domestically in sufficient quantity, of
comparable quality and at reasonable prices; (2) That said articles are
directly imported by a MARINA-registered shipbuilder and ship repairer;
(3) That said articles are reasonably needed and will be used exclusively
by the registered shipbuilder and ship repairer; (4) That the approval of
MARINA was obtained prior to the importation of said articles; and (5)
That shipbuilders and ship repairers may avail of the exemption from value-
added tax provided herein within a period often (10) years from the approval
of this Act.
Any sale, transfer or disposition of articles under Section 19 (a) within ten
(10) years from the effectivity of this Act to another registered shipbuilder
or repairer enjoying, similar incentive shall require prior approval of
MARINA. If the sale, transfer or disposition was made without prior
approval of MARINA, both the vendor and the transferee or assignee shall
be liable to pay twice the amount of the value-added tax exemption given
982
him: Provided, further; That if the sale, transfer or disposition was made to
a nonexempt entity or to a party other than a registered shipbuilder or repairer
within, ten (10) years from the effectivity of this Act, both the vendor and
the transferee or assignee shall be solidarily liable to pay twice the amount
of the value-added tax waived: Provided, finally, That the sale, transfer or
disposition made after ten (10) years from the effectivity of this Act shall
be made by informing MARINA in writing. The purchasers, transferees or
recipients shall be considered the importers thereof, who shall be liable for
any internal revenue tax on such importation. The tax due on such
importation shall constitute a lien on the goods superior to all charges or
liens on the goods, irrespective of the possessor thereof. The BIR shall be
furnished with notice of actions taken by the MARINA.
(b) Net operating loss carry over. A net operating loss in any taxable
year immediately preceding the current taxable year, which had not been
previously offset as a deduction from gross income shall be carried over as
a deduction from gross income for the next three (3) consecutive taxable
years immediately following the year of such loss subject to the pertinent
provisions of the National Internal Revenue Code of 1997, as amended;
(c) Accelerated depreciation. Fixed assets may be depreciated as

follows:
(i) To the extent of not more than twice as fast as the normal rate of
depreciation or depreciated at normal rate of depreciation if the expected
life is ten (10) years or less; or
(ii) Depreciated over any number of years between five (5) years
and the expected life if the latter is more than ten (10) years, and the
depreciation thereon allowed as deduction from taxable income; Provided,
That the registered ship builder and ship repairer notifies the BIR at the
beginning of tile depreciation period which depreciation rate allowed by
this section will be used.
SEC. 20. Restrictions on Vessel Importations. - Ten (10) years from

the effective date of this Act and every year thereafter, the MARINA shall
evaluate and determine the progressive capability of MARINA registered
983
shipyards to build and construct new vessels for the domestic trade.
In its first year of evaluation, the MARlNA shall determine the

capability of MARINA-registered shipyards to build new vessels below
500 GRT. If, upon evaluation, the capability of MARINA-registered
shipyards to build classed vessels below 500 GRT in quantities sufficient
to meet domestic demand is proven, then all domestic ship operators shall
be discouraged from importing new or previously owned vessels that are
less than 500 GRT for the domestic trade and vessels built in MARINA-
registered shipyards shall be given priority for entry in the Philippine
Registry and allowed to operate in the domestic trade.
The MARINA shall undertake a yearly evaluation of the progressive

capabilities of all MARINA- registered shipyards to build larger classed
vessels for the domestic trade in quantities sufficient to meet the demand
of domestic ship owners and shall correspondingly adjust the size of vessels
which may be sourced from MARINA- registered shipyard.
CHAPTER IX
TRANSITORY PROVISIONS
SEC. 21. Period of Transition. - Upon the approval of this Act, existing
liner operators shall continue to operate in their approved routes.
SEC. 22. Classification of Vessels in the Domestic Trade. – All vessels,

whether newly built or previously owned, which are acquired on or after
the effectivity of this Act shall be classed by a government recognized
classification society on the date of acquisition prior to its operation in the
domestic trade.
SEC. 23. Retirement of Old Vessels.- Immediately upon the approval

of this Act, the MARINA shall prepare and implement a mandatory vessel
retirement program for all unclassed vessels that fail to meet the
classification standards of a government-recognized classification society.
All vessels which have attained the maximum vessel age stipulated
by MARINA’s mandatory vessel retirement program and which do not carry
984
a class certificate issued by a government recognized classification society

shall not be al1owed to operate in the domestic trade and shall be
automatically de-1isted from the Philippine registry.
CHAPTERX
FINAL PROVISIONS
SEC. 24. Temporary Take-Over of Operations. – In times of national

emergency when the public interest so requires, the State may, during
emergencies and under reasonable terms prescribed by it, temporarily take
over or direct the operations or any vessel engaged in domestic trade and
commerce, or prescribe its rates or routes of operation. Immediately upon
the cessation of the emergency, the State shall immediately reinstate to the
domestic ship, operator the operation of its vessel under the same terms
and conditions existing prior to the occurrence of the emergency.
SEC. 25. Separability Clause. - If, for any reason, any section,
subsection, sentence, clause or, term of this Act is held to be illegal, invalid
or unconstitutional, such parts not affected by such declaration shall remain
in full force and effect.
SEC. 26. Repealing Clause. - The provisions of Commonwealth Act

No. 146, insofar as the same applies to the operation, management, control
and regulation of vessels, steamboats; steamship lines, ferries, water craft
and the like, as well as the provisions of Presidential Decree No. 474,
Executive Order Nos. 125 and 125-A, and such other laws, presidential
decrees, executive orders, issuances, rules and regulations or parts thereof,
which are inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.
SEC. 27. Effectivity.- This Act shall take effect after fifteen (15)
days following its publication in at least two (2) newspapers of general
circulation.
985
REPUBLIC ACT No. 9301
AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO.

7471, ENTITLED “AN ACT TO PROMOTE THE DEVELOPMENT
OF PHILIPPINE OVERSEAS SHIPPING” AND FOR OTHER
PURPOSES

SECTION 1. Section 3(a) of Republic Act No. 7471 is hereby

amended as follows:
“SEC. 3. Definitions. – As used in this Act:
“(a) ‘Philippine overseas shipping’ means the operation of a Philippine

shipping enterprise in the overseas trade of any type of Philippine registered
ship for any kind of shipping operation, which shall include, but shall not
be limited to the transport of goods and/or passengers, and the purchase of
ships for operation and the sale of ships after operation, except when the
ship is operated solely between ports in the Philippines.”
SEC. 2. Section 7 of the same Act is reinstated with amendments, to

read as follows:
“SEC. 7. Exemption from Income Tax. – A Philippine shipping

enterprise shall be exempt from payment of income tax on income derived
from Philippine overseas shipping for a period of ten (10) years from the
date of approval of this Act: Provided, That:
“(a) The entire net income, after deducting not more than fifteen
percent (15%) thereof for distribution of profits or declaration of dividends,
which would otherwise be taxable under the provisions of Title II of the
National Internal Revenue Code, is reinvested for the construction, purchase,
or acquisition of vessels and related equipment and/or in the improvement
or modernization of its vessels and related equipment in accordance with
the regulations; and
986
(b) The cumulative amount so reinvested shall not be withdrawn for

a period of seven (7) years after the expiration of the period of income tax
exemption or until the vessel or related equipment so acquired have been
fully paid, whichever date comes earlier.
“Any amount not so invested or withdrawn prior to the expiration of

the period stipulated herein shall be subject to the corresponding income
tax, including penalties, surcharges and interests.”
SEC. 3. Section 12 of the same Act is hereby likewise amended to

read as follows:
“SEC. 12. Penal Provisions.- Violation of the provisions of this Act

or the rules and regulations promulgated to implement the same shall be
punished by a fine of not more than One hundred thousand pesos
(PI00,000.00) or imprisonment for not more than five (5) years or both
such fine and imprisonment at the discretion of the court.
“If the violation is committed by an association or corporation, the

penalties prescribed hereunder shall be imposed on the president, the chief
executive officer and the other officials and employees responsible for the
violation.
“If the violation is committed by a government official or employee,

he/she shall, in addition to the penalties prescribed hereunder, be dismissed
from the government service with all the administrative penalties accessory
thereto.”
SEC. 4. Repealing Clause. - All laws, decrees, executive orders or

rules and regulations inconsistent with this Act are hereby repealed, amended
or modified accordingly.
SEC. 5. Effectivity. This Act shall take effect after fifteen (15) days
following its publication in at least two (2) newspapers of general
circulation.
Approved, July 27, 2004.
987
REPUBLIC ACT No. 9343
AN ACT AMENDING REPUBLIC ACT NO. 9182, OTHERWISE

KNOWN AS THE SPECIAL PURPOSE VEHICLE ACT OF 2002
FOR THE PURPOSE OF ALLOWING THE ESTABLISHMENT
AND REGISTRATION OF NEW SPVS AND FOR OTHER
PURPOSES

SECTION 1. Section 6 of Republic Act No. 9182 is hereby amended

to read as follows:
“SEC. 6. Period for Filing of Applications. - Applications for the

establishment and registration of an SPV shall be filed with the Commission
within eighteen (18) months from the date of effectivity of this amendatory
Act.”
SEC. 2. Section 15 of the same Act is hereby amended to read as

follows:
“SEC.15. Tax Exemptions and Fee Privileges. - Any existing law to the
contrary notwithstanding, the transfer of NPAs from the FI to an SPV, and
from an SPV to a third party or dation in payment (dacion en pago) by the
borrower or by a third party in favor of an FI or in favor of an SPY shall be
exempt from the following taxes:
“(a) Documentary stamp tax on the abovementioned transfer of NPAs

and dation in payment (dacion en pago) as may be imposed under Title VII
of the National Internal Revenue Code of 1997;
“(b) Capital gains tax imposed on the transfer of lands and/or other
assets treated as capital assets as defined under Section 39(A)(1) of the
National Internal Revenue Code of 1997;
“(c) Creditable withholding income taxes imposed on the transfer of
988
land and/or buildings treated as ordinary assets pursuant to Revenue

Regulation No. 2-98, as amended;
“(d) Value-added tax on the transfer of NPAs as may be imposed

under Title IV of the National Internal Revenue Code of 1997 or gross
receipts tax under Title V of the same Code, whichever is applicable.
“The abovementioned transfers shall also be subject to the following, in

lieu of the applicable fees:
“(a) Fifty percent (50%) of the applicable mortgage registration “and

transfer fees on the transfer of real estate mortgage and chattel mortgage
registrations to and from the SPY, as imposed in accordance with the existing
circulars of the Land Registration Authority (LRA);
“(b) Fifty percent (50%)of the filing fees for any foreclosure initiated
by the SPV in relation to any NPA acquired from an FI, as prescribed by
the Rules of Court; and
“(c) Fifty percent (50%)of the land registration .fees prescribed under
the existing circulars of the LRA.
“All sales or transfers of NPAs from the Fls to an SPV or transfers by

way of dation in payment (dacion en pago) by the borrower or by a third
party to the FI shall be entitled to the privileges enumerated herein for a
period of not more than two (2) years from the date ofeffectivity ofthis
amendatory Act: Provided, That transfers from an SPV to a third party of
NPAs acquired by the SPV within such two year period or transfers by way
of dation in payment (dacion en pago) by a borrower to the SPV shall
enjoy the privileges enumerated herein for a period of not more than five
(5) years from the date of acquisition by the SPV: Provided, further, That
properties acquired by an SPV from GFls or GOCCs which are devoted to
socialized or low-cost housing shall not be converted to other uses.
“The abovementioned tax exemptions, incentives, and fee privileges

given to Fls and SPV at the various stages of the transactions under this
989
section shall likewise be extended to any individual in accordance with the

IRR: Provided, That:
“(i) the transaction is limited to a single family residential unit

ROPOA or NPL secured by real estate mortgage on a residential unit;
“(ii) there shall only be one transaction consisting of one residential

unit per individual; and “(iii) the two-year transfer and the five-year
entitlement period granted to NPA shall also apply to said single family
residential unit.”
SEC. 3. Separability Clause. - If any provision of this Act is

subsequently declared unconstitutional, the validity of the remaining
provisions hereof shall remain in full force and effect.
SEC. 4. Repealing Clause. - Any law, presidential decree or issuance,

executive order, rule or regulation contrary to, or inconsistent with the
provisions of this Act is hereby repealed, modified or amended accordingly.
following its complete publication in the Official Gazette or in at least two
newspapers of general circulation.
Approved, April 24, 2006.
990
AN ACT GRANTING SOUTHEAST ASIAN AIRLINES (SEAir), INC. A

SERVICES WITH CLARK FIELD, PAMPANGA AS ITS BASE


there is hereby granted to Southeast Asian Airlines (SEAir), Inc., hereunder
referred to as the grantee, its Successors or assigns, a franchise to establish,
operate and maintain transport services for the carriage of passengers, mail
goods and property by air, both domestic and international.

SEC. 2. Civil Aeronautics Board (CAB). - The grantee shall secure

from the CAB the appropriate permits and licenses for its operations.

991

requirements of the Civil Aviation Authority of the Philippines or such
other regulatory bodies the government may prescribe for this purpose.

at all times be subject to inspection and regulation by the Civil Aviation
Authority of the Philippines.

Numbered Seven hundred and seventy-six (R.A. No. 776), otherwise known
as the “Civil Aeronautics Act of the Philippines”, and the regulation
promulgated thereunder from time to time.

rates for the transportation of passengers, mail goods and freight, subject
to the regulations and approval of the CAB and other proper regulatory
agencies of the government.

twenty-five (25) years from the date of effectivity of this Act. unless sooner
its permit by the CAB:
992
of this Act.

granted under this Act. Non acceptance shall render the franchise void.
CAB, which shall determine the amount, to guarantee the compliance with
and fulfillment of the conditions under which this franchise is granted. If,
after three (3) years from the date of the approval of its permit by the
Board, the grantee shall have fulfilled the same, the bond shall be cancelled
by the Board. Otherwise, the bond shall be forfeited in favor of the
government and the franchise ipso facto revoked.
SEC. 8. Landing Facilities. -. The grantee may use the landing and
other uirpl1rtfacilities on land and water as may be maintained or owned
as may be maintained and owned by the grantee in the Philippines.

contracts relating to air transport with other foreign owned airlines

993

SEC. 11. Warranty in Favor of the National and Local Governments.

- The grantee shall hold the national, provincial, city and municipal
granted.
SEC. 12. Nontransferability of Franchise. – The grantee shall not

lease, transfer, grant the usufruct of sell nor assign this franchise or the
or entity to which this franchise is sold, transferred or assigned, shall be
Act.
SEC. 13. Dispersal of Ownership. – In accordance with the

the grantee shall offer at least thirty percent (30%) of its outstanding capital

994
SEC. 15. Equality Clause. - In the event that any competing individual,
partnership or corporation receives or enjoys or shall receive similar permit
or franchise with terms, provisions and/or privileges more favorable than
those herein granted or which tend to place the herein grantee at any
disadvantage, then such terms and/or provisions shall be deemed part hereof
and shall operate equally in favor of the herein grantee.

of this Act is held invalid, all other provisions not affected thereby shall
remain valid.

days from the date of its publication, upon the initiative of the grantee, in
at least two (2) newspapers of general circulation in the Philippines.
Approved,
** Lapsed into law on December 27, 2008 without the signature of the President,
pursuant to Article VI, Section 27 (1) of the Constitution.
995
AN ACT ESTABLISHING THE PHILIPPINE COAST GUARD AS AN

ARMED AND UNIFORMED SERVICE ATTACHED TO
THE DEPARTMENT OF TRANSPORTATION AND
COMMUNICATIONS, THEREBY REPEALING REPUBLIC ACT
NO. 5173, AS AMENDED, AND FOR OTHER PURPOSES

SECTION 1. Title. - This Act shall be known as the “Philippine Coast

Guard Law of 2009”.
SEC. 2. Establishment. - The Philippine Coast Guard, hereinafter

referred to as the PCG, is hereby established as an armed and uniformed
service attached to the Department of Transportation and Communications
(DOTC): Provided, That in times of war, as declared by Congress, the
PCG or parts thereof, shall be attached to the Department of National
Defense.
SEC. 3. Powers and Functions. - The PCG shall have the following
powers and functions:
(a) To enforce regulations in accordance with all relevant maritime

international conventions, treaties or instruments and national laws for the
promotion of safety of life and property at sea within the maritime
jurisdiction of the Philippines and conduct port state control implementation;
(b) To conduct inspections on all merchant ships and vessels, including

but shall not be limited to inspections prior to departure, to ensure and
enforce compliance with safety standards, rules and regulations;
(c) To detain, stop or prevent a ship or vessel which does not comply
with safety standards, rules and regulations from sailing or leaving port;
996
LEGAL ISSUANCES
(d) To conduct emergency readiness evaluation on merchant marine

vessels;
(e) Subject to the approval of the Secretary of the DOTC, to issue

and enforce rules and regulations for the promotion of safety of life and
property at sea on all maritime-related activities;
(f) To coordinate, develop, establish, maintain and operate aids to

navigation, vessel traffic system, maritime communications and search and
rescue facilities within the maritime jurisdiction of the Philippines;
(g) To remove, destroy or tow to port, sunken or floating hazards to

navigation, including illegal fish traps and vessels, at or close to sea lanes
which may cause hazard to the marine environment;
(h) To issue permits for the salvage of vessels and to supervise all
marine salvage operations, as well as prescribe and enforce rules and
regulations governing the same;
(i) To render aid to persons and vessels in distress and conduct search
and rescue in marine accidents within the maritime jurisdiction of the
Philippines, including the high seas, in accordance with applicable
international conventions. In the performance of this function, the PCG
may enlist the services of other government agencies and the merchant
marine fleet;
(j) To investigate and inquire into the causes of all maritime accidents
involving death, casualties and damage to properties;
(k) To assist in the enforcement and maintenance of maritime security,

prevention or suppression of terrorism at sea, and performance of law
enforcement functions in accordance with pertinent laws, rules and
regulations;
(1) To assist in the enforcement of laws on fisheries, immigration,

tariff and customs, forestry, firearms and explosives, human trafficking,
997
dangerous drugs and controlled chemicals, transnational crimes and other

applicable laws within the maritime jurisdiction of the Philippines;
(m) To board and inspect all types of merchant ships and watercrafts
in the performance of its functions;
(n) To enforce laws and promulgate and administer rules and

regulations for the protection of marine environment and resources from
offshore sources of pollution within the maritime jurisdiction of the
Philippines;
(o) To develop oil spill response, containment and recovery

capabilities against ship-based pollution;
(p) To grant, within its capabilities and consistent with its mandate,
requests for assistance of other government agencies in the performance of
their functions;
(q) To organize, train and supervise the PCG Auxiliary (PCGA) for
the purpose of assisting the PCG in carrying out its mandated functions;
and
(r) To perform such other functions that may be necessary in the

attainment of the objectives of this Act.
SEC. 4. Gender Sensitivity Program. - Gender concerns should be

addressed in all planning activities, setting of priorities, allocating of
resources and identifying actions and activities of the PCG. It should also
incorporate a gender sensitive perspective in the implementation of such
plans and programs.
Gender sensitivity shall also be employed in all its internal policies,

strategies, budget, projects, structures and mechanisms, including but not
limited to hiring, promotions, assignment, training opportunities, pay and
benefits. A gender perspective should likewise be integrated in all its training
programs, especially for maritime search and rescue.
998
LEGAL ISSUANCES
SEC. 5. The PCG Commandant. - The PCG shall be headed by a

Commandant who shall carry the rank of Coast Guard Admiral: Provided,
That he shall be appointed by the President from among the Flag Officers
in the Coast Guard service. He shall hold a command-at-sea badge and
must have served as a District Commander of the PCG. The Commandant
shall have a maximum term of three (3) years. A Commandant who has
served for three (3) years prior to his compulsory retirement shall be
considered as retired and entitled to all the benefits available to a Coast
Guard officer as if he is compulsorily retired.
SEC. 6. Organization. - The PCG shall consist of the following

categories of officers and employees:
(a) PCG officers
(b) PCG non officers
(c) PCG non-uniformed personnel
(d) Probationary ensign; and
(e) Cadets and Cadettes
SEC. 7. Officer Rank Distribution. - The officer rank distribution of

the PCG shall be as follows: two per centum (2%) in the Flag Officer rank;
six per centum (6%) in the rank of Coast Guard Captain; twelve per centum
(12%) in the rank of Coast Guard Commander; eighteen per centum (18%)
in the rank of Coast Guard Lieutenant Commander; twenty per centum
(20%) in the rank of Coast Guard Lieutenant; and forty-two per centum
(42%) in the ranks of Coast Guard Lieutenant Junior Grade and Coast
Guard Ensign: Provided, That such distribution is based on the ratio between
officer and non-officer which is one (1) officer to every seven (7) non-
officer: Provided, finally, That if the actual number in a rank is less than
the number prescribed, the difference may be applied as an increase to the
number prescribed in a lower rank.
999
SEC. 8. Distribution of Flag Officers. - The number of Flag Officers

herein authorized shall be distributed to the various Flag Officer ranks in
accordance with the schedule as hereunder prescribed:
Coast Guard Admiral 1
Coast Guard Vice Admiral 1
Coast Guard Rear Admiral 5
Coast Guard Commodore 15
Total 22
Provided, That the herein prescribed Coast Guard ranks shall be

distinct from those prescribed in the Philippine Navy: Provided, further,
That the total number of Flag Officers prescribed under this section shall
in no case be less than the number resulting from the implementation of
Section 7 hereof, otherwise the latter shall apply.
The number corresponding to the ranks of Coast Guard Admiral,

Coast Guard Vice Admiral, Coast Guard Rear Admiral, and Coast Guard
Commodore, as provided for in this section, shall be the maximum:
Provided, That if the actual number in a rank, except in the case of Coast
Guard Admiral and Coast Guard Vice Admiral, is less than the number
herein prescribed, the difference may be applied as an increase to the number
prescribed in the lower rank: Provided, finally, That no officer shall be
promoted to the rank of Coast Guard Commodore or higher unless there is
an existing vacancy, and the officer is occupying a position in the table of
organization that requires the rank of which he is being considered for
promotion.
SEC. 9. Maximum Tenure in Rank. - The maximum tenure of officers

in the ranks of Captain and Flag Officer in the PCG are hereby prescribed
as follows:
1000
LEGAL ISSUANCES
Rank Maximum Tenure in Rank
Coast Guard Admiral three (3) years
Coast Guard Vice Admiral three (3) years
Coast Guard Rear Admiral three (3) years
Coast Guard Commodore five (5) years
Coast Guard Captain seven (7) years
Unless earlier separated, retired or promoted to the next higher rank

or occupying a position calling for the higher rank in the PCG table of
organization, Captains and Flag Officers shall be compulsorily retired upon
the attainment of the maximum tenure in rank herein prescribed, or upon
reaching the age of compulsory retirement whichever comes earlier:
Provided, That officers already holding these ranks upon the approval of
this Act may be allowed one (1) year more of tenure in rank before the
maximum tenure provided in this section shall be applied to them, unless
they shall have already reached the compulsory retirement age under existing
laws, in which case the compulsory retirement age shall prevail.
SEC. 10. Maximum Tenure in Position. – Officers holding the

following key positions are hereby limited to a maximum tenure of three
(3) years, unless otherwise earlier relieved by competent authority or
compulsorily retired under existing laws:
Coast Guard Commandant;
Coast Guard Deputy Commandant; and
Coast Guard District Commander.
1001
Provided, That except for the Commandant, no other officer shall be

assigned/designated to the aforementioned key positions or promoted to
the rank of Commodore or higher if he has less than one (1) year of active
service remaining prior to compulsory retirement.
SEC. 11. Organization of a PCG Auxiliary (PCGA). – The PCG shall

continue to maintain, supervise, develop and train the PCGA as a civilian
volunteer organization under the direct control and supervision of the PCG
Commandant. The PCGA shall assist the PCG in the promotion of safety
of life and property at sea, the preservation of the marine environment and
its resources, the conduct of maritime search and rescue, the maintenance
of aids to navigation and such other activities that enhance maritime
community relations which include civic action, participation under the
National Service Training Program, youth development, recreational safety
and other related activities.
SEC. 12. Appointments. - Appointments of PCG officers, which shall

be in the initial rank of Coast Guard Ensign, shall be made by the Secretary
of the DOTC upon the recommendation of the PCG Commandant. The
initial appointment ranks of chaplains, dentists, lawyers, medical doctors
and veterinarians shall be Coast Guard Lieutenant.
No person shall be appointed as an officer of the PCG unless he is a

natural born citizen of the Philippines, at least twenty-one (21) years of
age at the date of appointment, physically fit and is a baccalaureate degree
holder. The appointment of the PCG Commandant and Flag Officers shall
be approved by the President upon the recommendation of the Secretary of
the DOTC. Appointments of all PCG non-officers shall be made by the
PCG Commandant. Appointments of all non-uniformed personnel shall be
in accordance with the Civil Service laws, rules and regulations.
SEC. 13. Promotions. - The promotion of PCG officers, as submitted

by the PCG Officers Selection and Promotion Board, shall be recommended
by the PCG Commandant for the approval of the Secretary of the DOTC:
Provided, That the promotion to the rank of Flag Officers in the PCG shall
be submitted by a Board of Senior Officers to the PCG Commandant for
1002
LEGAL ISSUANCES
the approval of the President upon the recommendation of the Secretary of

the DOTC: Provided, further, That said officers shall possess all the
qualifications and none of the disqualification provided under pertinent
laws, rules and regulations, specifically on the completion of the required
schooling, training and minimum time and grade for said ranks.
The PCG Commandant shall approve the promotion of PCG non-

officers to the next higher rank based on the recommendation of the PCG
Selection and Promotion Board for Non-Officers: Provided, That special
or meritorious promotion shall be extended to any PCG non-officer for
acts of inconspicuous courage or outstanding achievement in the Coast
Guard service as determined by the PCG Selection and Promotion Board
for Non-Officers. The promotion of non-uniformed employees shall be
governed by Civil Service laws, rules and regulations.
SEC. 14. Salaries and Other Benefits. - The uniformed personnel of

the PCG shall receive the same base pay, longevity pay, hazard pay and
other benefits and allowances as are now or hereafter may be authorized
for corresponding salary grades and ranks in the Armed Forces of the
Philippines (AFP) until such time that a new law is enacted for the purpose.
The salaries and allowances of the non-uniformed employees of the PCG
shall be in accordance with Civil Service laws, rules and regulations.
SEC. 15. Active Service. - For purposes of this Act, the active service
of PCG personnel hereof shall refer to services rendered as an officer, non-
officer, probationary ensign, or those rendered as a civilian official or
employee in the PCG prior to the date of separation or retirement from the
PCG: Provided, That the term active service shall include confirmed services
rendered as a civilian employee in the Philippine government.
SEC. 16. Disciplinary Action. - The applicable and pertinent

provisions of the AFP Military Justice System shall be adopted in
disciplinary cases against PCG officers and nonofficers. The applicable
rules, regulations and guidelines promulgated by the Civil Service
Commission shall govern cases against PCG non-uniformed employees.
1003
SEC. 17. Retirement. - Upon attaining fifty-six (56) years of age or

upon accumulation of thirty (30) years of continuous satisfactory active
service, whichever comes later, a PCG officer or non-officer shall be
compulsorily retired: Provided, That said officer or non-officer shall have
a minimum of twenty (20) years of active service. The retirement of non-
uniformed personnel shall be governed by Civil Service laws, rules and
regulations.
SEC. 18. Retirement Benefits. - Monthly retirement pay of officers

and non-officers shall be fifty percent (50%)of base pay and longevity pay
of the next higher grade last held in case of twenty (20) years of active
service, increasing by two and one-half percent (2 ½ %) for every year of
service rendered beyond twenty (20) years to a maximum of ninety percent
(90%) for thirty-six (36) years of active service and over. The retirement
benefits of non-uniformed personnel shall be governed by Civil Service/
Government Service Insurance System Law.
SEC. 19. Separation from Service. - Officers and non-officers who

voluntarily resign or otherwise fail to comply with the standards of
competence and proficiency of the PCG, shall be separated from the service
under existing laws, rules and regulations. The separation of non-uniformed
personnel shall be in accordance with Civil Service laws, rules and
regulations.
SEC. 20. Collection of Revenues. - The PCG shall collect fees, dues,
charges and fines relevant to the exercise of its various functions.
SEC. 21. Rules and Regulations. - The Secretary of the DOTC shall
issue rules and regulations, determine, fix, and/or prescribe charges, rates,
penalties pertinent, as may be necessary, to implement the provisions of
this Act, as well as the provision of acts, decrees and orders related to the
implementation of the PCG functions.
SEC. 22. PCG Properties and Lighthouse Reservations. - The PCG

shall continue to exercise exclusive ownership, possession, control and
supervision over all properties transferred to it by virtue of Executive Order
1004
LEGAL ISSUANCES
No. 475 dated 30 March 1998 and Executive Order No. 477 dated 15 April
1998, such as inter alia, vessels, watercrafts, firearms, armaments,
munitions, communications and electronic equipment, vehicles, buildings,
real estate and lighthouse reservations.
SEC. 23. Establishment and Expansion of Coast Guard Bases and

Facilities. - In coordination with other appropriate government agencies,
the PCG shall develop and enhance its capabilities in the performance of
its mandated functions and establish its strategic presence.
SEC. 24. Appropriations. - The Secretary of the DOTC shall

immediately prepare the necessary guidelines to cover the establishment
of the PCG as an attached agency to the DOTC, the initial funding of which
shall be charged against the current year’s appropriations of the PCG and,
thereafter, in the annual General Appropriations Act.
SEC. 25. Transitory Provisions. - All previous appointments and

promotions of PCG uniformed personnel made prior to the enactment of
this Act shall remain valid and subsisting.
SEC. 26. Separability Clause. - If for any reason, any provision of

this Act is declared unconstitutional or invalid, such parts not affected
thereby shall remain in full force and effect.
SEC. 27. Repealing Clause. - All laws, decrees, executive orders,

rules and regulations and other issuances or parts thereof which are
inconsistent with this Act are hereby repealed, amended or modified
accordingly.
after its publication in the Official Gazette or in any two (2) newspapers of
general circulation.
1005
AN ACT MANDATING ALL MOTORCYCLE RIDERS TO WEAR

STANDARD PROTECTIVE MOTORCYCLE HELMETS WHILE
DRIVING AND PROVIDING PENALTIES THEREFOR

SECTION 1. Short Title. - This Act shall be known as the “Motorcycle

Helmet Act of 2009”.

the State to secure and safeguard its citizenry, particularly the operators or
drivers of motorcycles and their passengers, from the ruinous and extremely
injurious effects of fatal or life threatening accidents and crashes. Towards
this end, it shall pursue a more proactive and preventive approach to secure
the safety of motorists, their passengers and pedestrians at all times through
the mandatory enforcement of the use of standard protective motorcycle
helmet.
SEC. 3. Mandatory Use of Motorcycle Helmets. – All motorcycle

riders, including drivers and back riders, shall at all times wear standard
protective motorcycle helmets while driving, whether long or short drives,
in any type of road and highway.
Standard protective motorcycle helmets are appropriate types of

helmets for motorcycle riders that comply with the specifications issued
by the Department of Trade and Industry (DTI).
The DTI shall issue guidelines, which should include the

specifications regarding standard protective motorcycle helmets.
SEC. 4. Exemption. - Drivers of tricycles shall be exempted from

complying with the mandatory wearing of motorcycle helmets as provided
in this Act.
1006
LEGAL ISSUANCES
SEC. 5. Provision of Motorcycle Helmets. - A new motorcycle helmet

which bears the Philippine Standard (PS) mark or Import Commodity
Clearance (ICC) of the Bureau of Product Standards (BPS) and complies
with the standards set by the BPS shall be made available by every seller
and/or dealer every time a new motorcycle unit is purchased and which the
purchaser may buy at his option. Failure to comply with the requirements
provided under this section shall constitute a violation of this Act.
SEC. 6. Implementation. - The Department of Transportation and

Communications (DOTC), with its attached agency, the Land Transportation
Office (LTO), is mandated by this Act to issue guidelines necessary to
implement the provisions of this Act.
The DTI, through the BPS, is mandated to utilize the United Nations
Economic Commission for Europe (UNECE) Protocols with regard to the
standards that will be applicable to the approval or disapproval of motorcycle
helmets that will be sold in the Philippines.
The DTI, through the BPS, shall conduct a mandatory testing of all
manufactured and imported motorcycle helmets in the Philippines. All
manufacturers and importers of standard protective motorcycle helmets
are required to secure a PS license or ICC prior to the sale and distribution
of their products. The BPS shall issue periodically a list of motorcycle
helmet manufacturers and importers and the brands which pass the standards
of the BPS to be published in a newspaper of general circulation or in its
website.
Upon the effectivity of this Act, only those standard protective

motorcycle helmets bearing the PS or ICC mark shall be sold in the market.
SEC. 7. Penalties. - (a) Any person caught not wearing the standard
protective motorcycle helmet in violation of this Act shall be punished
with a fine of One thousand five hundred pesos (Php1,500.00) for the first
offense; Three thousand pesos (Php3,000.00) for the second offense; Five
thousand pesos (Php5,000.00) for the third offense; and Ten thousand pesos
(Php10,000.00) plus confiscation of the driver’s license for the fourth and
succeeding offenses.
1007
(b) Any seller and/or dealer who violates Section 5 of this Act shall
be punished with a fine of not less than Ten thousand pesos (Php10,000.00)
but not more than Twenty thousand pesos (Php20,000.00).
(c) Any person who uses, sells and distributes substandard motorcycle
helmets or those which do not bear the PS mark or the ICC certificate shall
be punished with a fine of not less than Three thousand pesos (Php3,000.00)
for the first offense; and Five thousand pesos (Php5,000.00) for the second
offense, without prejudice to other penalties imposed in Republic Act No.
7394 or the “Consumer Act of the Philippines”.
(d) Tampering, alteration, forgery and imitation of the PS mark and

the ICC certificates in the helmets shall be punished with a fine of not less
than Ten thousand pesos (Php10,000.00) but not more than Twenty thousand
pesos (Php20,000.00) without prejudice to other penalties imposed in
Republic Act No. 7394 or the “Consumer Act of the Philippines”.
SEC. 8. Nationwide Public Information Campaign. – The LTO, in

coordination with the Philippine Information Agency (PIA), the Department
of Education (DepED) and private agencies and organizations, shall
undertake a nationwide information, education and communication (lEC)
campaign for a period of six (6) months for the attainment of the objectives
of this Act.
SEC. 9. Separability Clause. - If any provision or part hereof is held

invalid or unconstitutional, the remainder of this Act or the provisions not
otherwise affected shall remain valid and subsisting.
SEC. 10. Repealing Clause. - All laws, decrees, orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed
or modified accordingly.
1008

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LAWS & EXECUTIVE ISSUANCES

LAW NO. TITLE PAGE

Republic of the Philippines

T ransportation impacts on many

This compilation of Philippine laws and executive issuances is

The second volume contains executive issuances promulgated

This book is the second of a series of topical compilations of

I acknowledge the tireless efforts devoted to the production

FELICIANO BELMONTE, JR.

LAW NO. TITLE PAGE

LAW NO. TITLE PAGE

LAW NO. TITLE PAGE

ACT NO. 101 7

ACT NO. 182 10

ACT NO. 198 12

ACT NO. 199 15

ACT NO. 217 17

ACT NO. 237 18

LAW NO. TITLE PAGE

ACT NO. 238 20

ACT NO. 266 23

ACT NO. 275 27

ACT NO. 316 28

ACT NO. 321 29

ACT NO. 352 30

LAW NO. TITLE PAGE

ACT NO. 376 31

ACT NO. 382 32

ACT NO. 394 33

ACT NO. 454 34

ACT NO. 484 35

LAW NO. TITLE PAGE

ACT NO. 494 51

ACT NO. 511 52

ACT NO. 520 56

ACT NO. 554 66

ACT NO. 578 79

LAW NO. TITLE PAGE

ACT NO. 583 81

ACT NO. 586 82

ACT NO. 592 84

ACT NO. 640 86

ACT NO. 641 88

ACT NO. 667 90

LAW NO. TITLE PAGE

CERTAIN POWERS OF THE GRANTEES OF SAID FRANCHISES

ACT NO. 674 97

ACT NO. 703 98

ACT NO. 704 113

LAW NO. TITLE PAGE

ACT NO. 705 115

ACT NO. 722 117

ACT NO. 746 118

ACT NO. 774 119

ACT NO. 778 121

LAW NO. TITLE PAGE

ACT NO. 780 122

ACT NO. 788 129

ACT NO. 829 132

ACT NO. 863 134

ACT NO. 898 135

LAW NO. TITLE PAGE

ACT NO. 1022 137