Question & AnswerQ&A (Act No. 2479)
The main purpose of the Central Sugar Board is to promote and assist in the establishment of sugar centrals in the Philippine Islands, including their machinery, equipment, rights of way, railroads, and other appurtenances for sugar manufacture.
The board consists of the Governor-General, the Speaker of the Philippine Assembly or their authorized representatives, and three members appointed by the Governor-General with the consent of the Philippine Commission.
The board has powers to guarantee payments to sugar centrals from net proceeds, purchase bonds secured by sugar land or mortgages, and make loans secured by first mortgage for improvements to sugar centrals.
No landowner or cane producer under contract with a sugar central receiving benefits under the Act may dispose of or sell their land or cane production to any other person than the central within 20 years without consent from the Central Sugar Board; otherwise, such agreements are null and void.
Conditions include bonds not exceeding 60% of property value, contracts with owners of at least 1,000 hectares obligating cane delivery to the corporation, stockholders being mainly landowners, sinking fund provision, dividend restrictions, and bond retirement within 20 years.
Loans must be secured by first mortgage on the central and land, not exceed 60% of property value, and include annual installments with preference over dividends to ensure total debt extinction within 20 years.
Sugar centrals are supervised by the Central Sugar Board until capital and interest are fully paid and government disengages from liabilities, and the board may appoint an overseer with compensation fixed by the Governor-General.
Any agreement or transaction made in violation of this restriction is null and void.
The board must report to the Legislature at each session detailing sugar centrals aided, sums invested, repayments, interest paid or owing, and losses or profits of each central.
A sum of 25,000 pesos is appropriated for the board's use including salaries, personnel, and materials, with the ability to charge expenses for sugar central preparation and operation to the centrals themselves, except that government officers appointed to the board may not receive additional compensation.