Property Acquisition and Construction Rights
- Grantee authorized to acquire property by lease only for cable establishment and maintenance
- Construction and maintenance of cable works may be done over streets and foreshore lands with prior approval of the President of the Philippines
- Subject to legal procedures and limitations
Government's Special Rights in Emergencies
- Government reserved right to take over and operate cable and station during war, insurrection, or domestic disturbance upon the President's order
- Government to pay Grantee the net proceeds from operation during takeover period
Regulation of Telegraph Rates
- Rates charged for telegraph messages must be reasonable
- Rates to conform with International Telecommunication Convention (Atlantic City 1947) and Telegraph Regulations (Cairo 1938), including any updates
Compliance with International Telecommunication Conventions
- Grantee's operations must comply with applicable international telecommunication conventions and regulations
Public Service and Message Handling
- Grantee authorized to collect messages from the public for transmission at its Manila office
- Authorized to deliver messages received over submarine cable directly to the public
- Collection and delivery may use telephone or other efficient means for public convenience
Financial Accounting and Audit Requirements
- Grantee must maintain separate accounts of gross earnings from telegraph messages originating in the Philippines
- Annual submission of accounts to General Auditing Office by January 31 for preceding year
- Books related to Philippine-originated messages must be kept in the Philippines and open to audit and inspection
- Audit results are final and conclusive, with right of Grantee to appeal to Philippine courts under existing laws
Franchise Tax Obligations
- Grantee to pay annual tax of 5% on gross earnings originating in the Philippines under this franchise
- Tax due within 10 days after audit and approval of accounts
- Tax payment in lieu of all other local taxes except real property tax
Indemnification of Government
- Grantee shall hold the National, provincial, and municipal governments harmless from claims or damages arising from construction or operation of cable and stations
Compliance with Corporation and Labor Laws
- Grantee subject to Philippine corporation laws
- Prohibited from employing or contracting labor of persons in involuntary servitude
Franchise Amendments, Termination and Reversion of Rights
- Franchise subject to amendment, alteration, repeal by Congress
- Rights to use public property revert to the government upon termination, repeal, forfeiture, or expiration
- Franchise valid for 50 years from acceptance date unless earlier terminated or extended
Bond Requirement for Performance Assurance
- Grantee must execute a bond of 50,000 pesos with sureties to government
- Bond conditioned on faithful performance of obligations for first three years
- Bond cancelled upon satisfactory compliance after 3 years
Acceptance and Exercise of Franchise
- Franchise acceptance in writing within 6 months after approval of the Act
- Exercise of privileges granted only upon acceptance and bond approval by Secretary of Public Works and Communications
Restrictions on Transfer, Assignment, or Lease of Franchise
- Grantee may not lease, transfer, assign, sell, or grant usufruct without Congress approval
- Any assignee subject to Philippine corporation laws and all franchise conditions
Non-Exclusivity of Franchise
- Franchise does not confer exclusive rights to the privileges granted
Effectivity
- Act takes effect upon approval on June 21, 1952.