Question & AnswerQ&A (Commonwealth Act No. 59)
It authorizes the Manila Railroad Company to discontinue and abandon specified railroad lines between certain municipalities in the provinces of Rizal, Cavite, Batangas, and Albay.
The railroad lines between: (1) Pasig (Rosario) and Montalban in Rizal; (2) Paco station, Manila, and Naic in Cavite; (3) Batangas and Bauan in Batangas; and (4) Legaspi and Tabaco in Albay.
The Company is authorized to dispose of the personal and real property belonging to these lines under terms considered most advantageous by its directors and the trustee of the mortgage.
The proceeds must be applied in accordance with the provisions of the deed of mortgage for the protection of bondholders.
The trustee, alongside the directors of the Company, determines the form and conditions of the property disposal to protect the interests of the mortgage and bondholders.
The Act took effect upon its approval on October 20, 1936.
No, the Act does not specify penalties; it simply authorizes the Manila Railroad Company to discontinue and abandon the specified lines.
Yes, the Act specifically authorizes discontinuance only for the particular railroad lines listed between the given municipalities.
It means the Manila Railroad Company may cease operations and relinquish maintenance or use of the listed railroad lines as authorized by law.
Approval of discontinuance is authorized by law, but actual implementation decisions are made by the directors of the Manila Railroad Company and the trustee of the mortgage.