Question & AnswerQ&A (Republic Act No. 808)
The main purpose of Republic Act No. 808 is to grant The Eastern Extension Australasia and China Telegraph Company Limited a franchise to land, construct, maintain, and operate a submarine telegraph cable connecting Manila with Hongkong, including the construction of a cable house and station for transmitting and receiving telegraph messages.
The Secretary of Public Works and Communications must approve the places selected by the Grantee for the landing, construction, maintenance, and operation of the submarine cable and stations.
The government reserves the right during times of war, insurrection, or domestic trouble to take over and operate the cable and station upon the direction of the President of the Philippines, paying the Grantee the net proceeds from the operation during such period.
The Grantee is authorized to acquire by way of lease only such property as is actually necessary for the establishment and efficient operation of the cable and station, subject to the President's prior approval for crossings over streets and foreshore lands.
The rates must be reasonable and established in conformity with the International Telecommunication Convention (Atlantic City 1947), the Telegraph Regulations (Cairo 1938), and any subsequent revisions.
The Grantee must keep a separate account of gross earnings from submarine telegraph cable messages originating in the Philippines and submit these accounts to the General Auditing Office annually. The accounts are subject to official inspection and their audit and approval are final and conclusive, except for appeal to Philippine courts under lawful conditions.
The Grantee must pay an annual tax of five percent of the gross earnings derived from operations under the franchise originating in the Philippines, due within ten days after the audit and approval of accounts. This tax replaces all other taxes except the tax on real property.
The franchise is granted for fifty years from the date of acceptance by the Grantee unless earlier terminated, repealed, or forfeited.
The Grantee may not lease, transfer, sell, assign, or merge the franchise or its rights without prior approval of the Philippine Congress. Any transferee will be subject to applicable corporation laws and all terms and conditions of the franchise.
No, the Act explicitly states that the franchise does not imply an exclusive grant of the privileges provided therein.
The Grantee shall hold the National, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries caused by the construction or operation of the cable and station.
It is unlawful for the Grantee to employ or contract the labor of persons held in involuntary servitude.
The Grantee must execute a bond of fifty thousand pesos in favor of the Government, conditioned upon the faithful performance of obligations during the first three years of the franchise. This bond can be canceled after fulfillment of obligations.
The franchise takes effect upon its written acceptance by the Grantee within six months after approval of the Act and upon approval of the bond by the Secretary of Public Works and Communications.