Franchise for Manila Railway extension to Antipolo

Policy, purpose, and governing conditions

The franchise is granted to enable the construction, maintenance, and operation of a railroad extension from Manila to Antipolo, and a spur/branch from the River San Juan crossing to the River Pasig opposite San Pedro Macati.
The franchise is expressly subject to the right of Congress to amend, modify, or repeal it under a perpetual act framework.
The granting of the charter is subject in all respects to corporate and franchise limitations under the Act of Congress approved July 1, 1902, titled “An Act temporarily to provide for the administration of affairs of civil government in the Philippine Islands, and for other purposes.”
Nothing in the Act prejudices ongoing issues involving the Manila Railway Company and the United States or the Insular Government on damages or forfeiture of claims.

Grantee, franchise coverage, and route

The grantee is Manila Railway Company, Limited, an English corporation operating the Manila and Dagupan Railroad under a Spanish concession.
The franchise authorizes construction from a point on the Manila and Dagupan Railroad located one and five hundred-thousandths kilometers from the then-known terminus in the City of Manila.
The authorized main railroad runs easterly to Antipolo, Province of Rizal, with an estimated distance of thirty-two kilometers.
The franchise authorizes a spur/branch beginning from the company’s crossing of the River San Juan to a point on the River Pasig opposite the municipality of San Pedro Macati, with an estimated distance of three kilometers.
The authorized Manila terminus for this extension is the present central station at Tutuban, with the junction with the existing line being at the point one and five hundred-thousandths kilometers from the then-known Manila terminus.

Authorized line alignment and provisional terminus

The main line runs easterly passing north of Sampaloc, through Pandacan (near the Santa Mesa Race Track), and crosses the River San Juan by a suitable bridge.
The line passes between San Felipe Neri and San Juan del Monte, follows a northeasterly course by tangents and curves bending easterly and southeasterly to barrio of San Isidro.
The line crosses the River Mariquina by suitable bridge to Mariquina, runs southeasterly to Cainta, then bends easterly and crosses the Liners Cut-cut and Cay-ticlin to Taytay, and runs northeasterly by tangents and curves to Antipolo.
The spur/branch begins near the eastern end of the River San Juan crossing, bends southeasterly to the River Pasig, and runs along and up the river to a Pasig point opposite San Pedro Macati.
The grantee may make route variations to avoid floods or heavy bank cutting and to reduce curvature and gradient, after detailed study.
If the detailed study shows a more advantageous route, the railway may instead pass from the terminus of the spur/branch easterly along and up the River Pasig, cross the River Mariquina above Pasig to Cainta, and continue to Antipolo as described.
If the last-described route is accepted, the grantee must construct an additional spur/branch connecting Cainta and Mariquina.
Until the route from Taytay to Antipolo can be properly surveyed and staked, Taytay is the provisional terminus.

Engineering standards and construction requirements

The maximum grade and minimum curve for construction are two per centum and two hundred meters radius, respectively.
The grade on curves must be compensated so that the maximum grade on curves of minimum radius shall not exceed one per centum.
The grantee must construct and maintain stations in Sampaloc, in the division of Pandacan known as Santa Mesa, and in San Felipe Neri, San Juan del Monte, Mariquina, Cainta, Taytay, and Antipolo.
The grantee must construct and maintain a freight depot on the River Pasig at the terminus of the spur/branch.
At Antipolo, and at Taytay for the period Taytay remains the provisional terminus, the grantee must build locomotive sheds with necessary turntables, water service, and cranes in the most suitable railroad locations.
All materials for buildings must be good class and quality, with galvanized iron roofing.
Bridges must be constructed of native hard wood or foreign timber, to be replaced by steel and masonry when traffic development justifies the outlay.

Rail, land, and equipment specifications

The railway must be a single line of three feet and six inches gauge, with sidings and loops needed to allow passing trains at each station.
Banks and cuttings must be made to the width necessary to carry the track.
Rails must be steel weighing not less than sixty-five pounds per yard, and must be thirty feet long.
The track must use two thousand one hundred and twelve cross-ties per mile, each cross-tie measuring six feet by eight inches by five inches, made of native hard wood.
If the required cross-ties cannot be obtained from the forests of the Archipelago with proper despatch due to lack of machinery and insufficient labor, the grantee must use specified Australian hard woods including puriog, maire, ironbark, karri, and kauri used on Australian government railways.
For land acquisition, the grantee must secure a strip of land thirty meters in width for the railway, except where greater width is needed for stations, buildings, embankments, cuts and borrow pits, quarries, water diversions, roads or highways, drainage of swamp lands, dikes and other works protecting tracks, yards, shops, wharves, platforms, turn-outs, switches, or other necessary railroad purposes.
When required lands cannot be obtained by free arrangement, the grantee has the right to expropriate the same in the manner established by law.

Land-taking powers and public domain procedures

The grantee is authorized to occupy public domain land not occupied for other public purposes when approved by the Consulting Engineer.
The company must file a petition describing the land desired, showing it is public domain, not in use for other public purposes, and necessary for the franchise’s railroad enjoyment, and must attach a plat and survey.
The Consulting Engineer approves the petition if the land is necessary and proper for franchise purposes after examination and evidence if needed.
The Consulting Engineer forwards the petition with approval to the Chief of the Bureau of Public Lands, which, after due investigation, determines whether the land is public land and not used for other public purposes and certifies it to the Civil Governor.
The Civil Governor, satisfied of propriety and legality, executes a patent for the land, which is recorded in the Chief of the Bureau of Public Lands office and then delivered to the grantee.
The patent conveys the land for franchise purposes but must contain a reverter clause for the land to revert to the Insular Government whenever it ceases to be used for franchise purposes.
The grantee may acquire from provincial governments, municipalities, corporations, or private individuals by contract or expropriation land necessary for construction, maintenance, and operation.
The grantee may not occupy lands within the boundaries of a province or municipality if in actual use for provincial or municipal purposes.
The grantee may not occupy land within the boundary of a municipality without consent of the municipal authorities.
No part of a public road may be occupied without consent of both municipal and provincial authorities, except the portion necessary for the railroad crossing.
The crossing character must be agreed by the provincial board and the grantee’s agents; if there is a difference, the matter is referred to the Consulting Engineer whose decision is final.

Pre-works filings, openings, and public safety

Before commencing work on any one section or district, the grantee must file with the Consulting Engineer to the Commission a map or plan and profile showing the course and direction and an explanatory statement of the route and general conditions.
After approval of the plan and profile, two copies must be drawn by the grantee: one retained by the company and one filed in the Consulting Engineer’s office.
At public highway crossings, the grantee must construct necessary bridges and crossings so public communication is not interrupted unnecessarily.
The grantee must put up necessary public notices to avoid danger from passing trains, with specifications set by the Consulting Engineer.
At points of peculiar danger, when required by the Consulting Engineer or by the provincial board, the grantee must station a gate or guard, or both, to prevent accidents.
The grantee must establish along the whole length of the road a telegraph line for exclusive railroad use.
The telegraph line posts must also carry the number of wires the Government considers necessary for public service.
The Government must bear the cost of establishing, protecting, and maintaining the wires and stations necessary for public service.
Before opening the road or portions for conveyance of passengers and freight, the grantee must notify the Consulting Engineer in writing of the date it believes the railroad portion is sufficiently completed for safe conveyance.
Upon receipt, the Consulting Engineer (or an assistant) must examine bridges, tunnels, works, locomotives, and rolling stock intended for use, and, if satisfactory and safe, must authorize opening of all or the portion.

Operational obligations and passenger rules

From opening to public service, the grantee must run regular trains for passenger and freight transportation at regular hours fixed by public notice.
The grantee must furnish sufficient accommodation for passenger and property transportation within a reasonable time previously offered at places of starting.
The grantee must grant free carriage of fifty kilograms of personal baggage for passengers holding first-class tickets.
For lower-class tickets, the grantee must grant free carriage of thirty kilograms of personal baggage.
Personal baggage includes ordinary wearing apparel, bicycles, and articles required by persons practicing any profession or trade, but such articles are accepted only when contained in receptacles that safely hold them for transportation.
The grantee is not liable beyond one hundred dollars (United States currency) for each fifty kilograms of baggage unless the passenger declares contents and pays for additional insurance to cover added responsibility in case of loss.
Locomotives used must be furnished with a bell and a steam whistle, and the bell must be rung or whistle sounded from at least three hundred meters before every place where the railroad passes a highway, continuing until the engine crosses the highway.
The grantee must install brakes and other safety appliances for security of life and property at road crossings and other dangerous places designated and approved by the Government.
The grantee must provide locomotives with necessary apparatus to prevent sparks or live coals setting fire to adjacent properties.
The grantee must regulate train speed through streets of towns or on public highways where the line is not fenced in, or where no gates or flagmen exist at crossings, to the velocity decided by municipal councils.
If the grantee finds the municipal speed decision unreasonable, it may appeal to the Consulting Engineer; the Consulting Engineer’s decision is final.
Every employee working on a passenger train or at a passenger station must wear a badge on the hat or cap indicating office; without the badge, the employee cannot exercise office powers or ask for help of law guardians if necessary.
The grantee must affix checks or tags to every parcel of baggage delivered for transportation and must deliver a duplicate to the passenger.
If the grantee fails to comply with baggage-check tagging, it cannot receive any fare or toll from the passenger; if already paid, the grantee must return it on demand.
The grantee may refuse to transport any package suspected to contain goods of a dangerous nature or whose transport is prohibited by the Government.

Tariffs, posting, and approval

The grantee must charge for passenger transport and freight prices fixed by reasonable tariffs.
Tariffs must be approved by the Consulting Engineer or by other officers provided by law.
The legislative authority of the Islands may provide for change and regulation of tariffs to keep them reasonable.
Tariffs for conduction and transport of passengers, baggage, packages, freight, and live stock must be posted in prominent station locations before they go into effect.
Changes to tariffs must be published in Manila papers for general public information.

Passenger/freight dispute, detention, and auction of goods

If the grantee refuses, neglects, or delays payment of transportation and conduction costs of freight over the entire length or any part, the grantee may detain the freight until the amount due is paid.
The amount due includes proper storage charges for goods left in the grantee’s care for over forty-eight hours after reaching destination.
If freight or luggage remains at a station for two months and is not railed by the owner or consignee, the grantee may apply before the justice of the peace of the district where the station is situated for public auction of all such articles.
When the owner or consignee cannot be found or is unknown, or refuses to receive goods or pay transport costs, the grantee may apply for an order to sell at public auction after general advertisement for two days for perishable goods and for up to thirty days for goods not subject to deterioration.
Sale proceeds must first defray the costs and expenses of the sale, then be credited to freight and railroad charges; any balance must be deposited with the judge for disposition to the person with the right.
The grantee may refuse to transport perishable goods unless freight charges are prepaid or guaranteed.

Mails service arrangements

The grantee must provide on its trains the equipment locale necessary for the service of mails.
Mail rate, terms, and conditions are arranged and agreed between the Director of Posts and the company.
If the Director of Posts and the company cannot agree on rate and terms, the Chief Executive of the Islands fixes the prices, terms, and conditions after giving the company opportunity to be heard.
The fixed mail-carriage prices must not be less than the amount the company would realize as freight for like merchandise transport and a fair compensation for the post-office car.
If the Government of the Islands requires additional mail transport or urgent orders at other hours or at higher speed than passenger trains, or requires transport of troops, ammunition, bullion, or freight, the company must provide special conveyance day or night and receives extra compensation.

Franchise privileges, borrowing limits, and taxation

The grantee may establish and use railroad-related works, structures, roads, and crossings, and may direct or alter rivers, streams, waterways, or highways to carry them across/under/by the side of the railroad, when approved by the Consulting Engineer to the Commission and with consent or compensated injury where required.
The grantee may open quarries, collect stone, cut timber, mine for materials, and build and operate kilns for lime, gypsum, and brick on lands owned, occupied, leased, or under control.
The grantee may conduct water to the railroad for its use and acquire necessary land and roads to give access to stations from public roads.
The grantee may borrow sums and contract debts necessary to construct, complete, maintain, and operate the railroad or for other lawful purposes, and may issue and dispose of promissory notes, debentures, or other securities for any borrowed amount or contracted debt, with or without security.
The grantee may secure debts, notes, bonds, debentures, or securities by mortgage deeds or by liens affecting all or part of rents and revenues in whole or in part.
The grantee may not mortgage the railroad authorized herein to an extent more than an amount equivalent to fifteen thousand dollars a kilometer in money of the United States.
No real or personal property of the railroad actually used and necessary for railroad purposes may be taxed by any province or municipality for twenty years from the granting of the franchise.
The grantee’s legal domicile is in Manila, where it must have a duly authorized representative with full powers to carry out duties and sustain rights under the franchise.

Working rules and regulations

Before inaugurating the first district, the grantee must submit for approval of the proper governmental authority the working rules and regulations governing train and station service, traffic conditions, care of tracks and bridges and other appurtenances, and guidance of employees.
The Government must give the company opportunity to be heard on these working rules and regulations and may make additions and alterations it considers necessary.
Approved working rules and regulations have the force of law.
Working rules and regulations may be modified at the company’s petition or by Government direction, with opportunity for the company to be heard; modified rules after approval also have the force of law.

Bond/deposit, forfeiture, and appeal process

Within fifteen days from acceptance of the concession, the grantee must deposit in the office of the Insular Treasurer in Manila a sum equal to three hundred dollars for each kilometer of the concession.
The deposit is returned to the grantee in proportion and as the work terminates for lengths not less than ten kilometers.
The grantee loses all or part of the deposit in favor of the Insular Government if more than six months elapse without beginning the railroad or if more than three years elapse before termination.
The deposit is not forfeited when the interruption of work is due to force majeure or fortuitous causes.
The deposit may be made, with Civil Governor approval, in interest-bearing bonds or other securities at least equivalent in both par and actual value to the required money deposit, with interest paid as it accrues to the grantee or its order.
The Legislature of the Islands may declare forfeiture after hearing the grantee company if:
- (a) works are not commenced or road not finished within periods prescribed in the concession, except cases of force majeure or fortuitous events, in which event the Legislature may extend the time; at the end of any extension, forfeiture occurs; or
- (b) once the total length is open to public traffic, the company interrupts public service for more than one month not due to force majeure or necessary repairs for public security by the Government inspector or the company.
A forfeiture declaration by the Legislature may be appealed first to the courts of the Islands and, on appeal, to the Supreme Court of the United States of America.
The grantee forfeiture challenge is renounced if the company does not appeal within two months from communication of the forfeiture declaration.
Forfeiture implies loss of the deposit.
After a forfeiture declaration is signed, completed works must be put up to public auction, and the concession adjudicated to the highest bidder.
The highest bidder must pay the original grantee the auction amount for completed works, deducting costs and expenses caused by the process.
The auction basis is the estimated value of technical study for executed work, lands bought, works completed, existing plant and material, and operation of the line.
Valuation must be made by two experts, one named by the Government and one by the grantee, with a third expert named by common consent if disagreement occurs.
This Act is subject to all requirements and limitations of Act Numbered Ninety-eight and its amendments.
Failure to comply with the Act or orders of proper authorities is punishable as provided for violations of Act Numbered Ninety-eight in any court of competent jurisdiction.

Financial compensation, accounts, and tax in lieu

The grantee must pay into the Treasury of the Insular Government as compensation for the franchise one and one-half per cent upon gross income received from passenger and freight traffic upon the Manila-to-Antipolo branch railway.
If receipts for freight or passenger traffic include transportation over part of the main line and the branch, the receipts attributable to the branch are determined in proportion to mileage.
The percentage of gross receipts is due and payable monthly.
The percentage payment is in lieu of all taxes on the privileges, earnings, income, and franchises of the railway company, and the company is expressly exempt for twenty years from other tax and assessment imposed by this Act.
The grantee must keep a record of all receipts for carriage of freight and passengers, subject to inspection by Insular authorities.
Insular authorities must audit and approve company accounts at the end of each month before payment of the percentage tax.
Audited and approved accounts are conclusive evidence of the company’s liability under the gross-receipts payment rule.

Moiety of relationship to existing tariffs and currency

The franchise is subject to the right of Congress to amend, modify, or repeal it under a perpetual Philippine Act framework.
Tariffs for public and Government freight and passengers for the Manila-to-Antipolo line are those approved by the Government of the Islands for the Manila and Dagupan Railroad.
Tariffs must be revised by the proper governmental authority when a standard currency is established for the Islands in place of the Mexican dollar currently in circulation or when a law fixing the monetary basis in the Islands is enacted.

Additional legal and corporate limitations

The grantee may occupy public domain and exercise other enumerated corporate franchise powers under conditions and procedures specified in the Act.
The grantee must not put obstacles in the way of the railroad being crossed by other authorized railroad or highway lines of the Government, provided full compensation is made for damages and the police law of railroads is complied with.
The Act does not prejudice existing claims in pending issues between the Manila Railway Company, Limited, and the United States or the Insular Government regarding damages or forfeiture of the right to present such claims.