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[ Act No. 1111, April 08, 1904 ]

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.

By authority of the United States, be it enacted by the Philippine 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 Caniarines, to the town proper or poblacion of Daet, and through said town proper or poblacion 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 poblacion of Talisay and to construct and maintain such switches, sidetracks loops, turn-outs, and passing places as may he 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 poblacion of Daet and within the barrio proper or poblacion of Mercedes, said tramway, with its switches, sidetracks, loops, turn-outs, 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 town proper or poblacion of Daet or of said barrio proper or poblacion 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 poblacion of Daet or in the barrio proper or poblacion 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.

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 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 Hie surface 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 Hie town proper or poblacion or municipality of Daet and within the barrio proper or poblacion of any barrio of said municipality through which said tramway passes, the space between the rails and tracks of the tram­way arid 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 hi 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 nurse, 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 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 lime 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 negotiable bonds 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 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 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.

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 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 Knot 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 suspected to contain goods of a dangerous nature or whose transport shall be prohibited by the Government.

SEC. 15. The grantee shall enjoy the following powers, privileges, and exemptions:
  1. 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 tin's franchise and may be approved by the Consulting Engineer. The land to he 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. The petition shall he 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, the 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 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.

  2. To 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.

  3. 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.

  4. 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 days notice, those goods which are of a perishable nature, and upon thirty days' notice, goods not likely to suffer deterioration or loss during the period of notice if given ordinary care. Not ices of sale 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.

  5. To sell,  lease, give, grant, convey, or assign  this franchise f 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 he 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.

SEC. 17. The tramway for which a franchise is conceded by this Act may be crossed by lines of railroad, other  tramways, or Inroads 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.

SEC. 19. 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 the affairs of civil government in the Philippine Islands, and for other purposes."

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 he 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 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 a 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.

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

SEC. 29. This Act shall take effect on its passage.

Enacted, April 8, 1904.
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