Description and Scope of Railway Lines Granted
- Concessions cover multiple railway lines and branches:
- Existing lines from Manila to Cavite, Naic, San Fernando, Florida Blanca, and others.
- Branches including lines from Manila-Antipolo to Mariquina and Montalban.
- New lines from Manila to Batangas, Bauan, Calamba to Santa Cruz (with extension rights to Magdalena and Pagsanjan), Santo Tomas to Lucena, and others.
- Lines connecting Pasacan to Ligao and further branches.
- Lines from Dagupan toward Baguio and north to San Fernando.
- Routes are approximate; final detailed plans and routes to be submitted within twelve months of Governor-General’s demand for approval.
- Surveys to commence within 60 days of written demand by Governor-General.
Rights Regarding Use of Public Lands and Infrastructure
- Right of way granted through public lands, 100 feet wide, including necessary additional grounds for operational facilities.
- Permission to quarry and extract materials from public lands designated for homestead or sale, excluding lands reserved or already assigned for public purposes.
- Right to cross or occupy public roads and municipal lands subject to approval or terms set by Governor-General.
- Rights to acquire lands by purchase, lease, or condemnation for railway use.
- Condemnation (eminent domain) to be exercised in accordance with Philippine laws of the time.
Construction, Operation, and Technical Requirements
- Railways to be constructed and maintained as commercial lines and common carriers suited to local conditions.
- Standard track gauge of 3 feet 6 inches to ensure uniformity, subject to approval for modification.
- Construction schedule:
- At least 150 miles completed within 2 years of final plan approval.
- Additional 75 miles annually thereafter until completion.
- Extensions allowed for delays due to labor disputes, disasters, or other uncontrollable causes.
- Railways operated for freight, passenger, express, and mail transport.
- Steam motive power required except with Governor-General’s consent for other power sources such as electricity.
Rights of Other Railways and Labor Provisions
- Grantee must allow other Philippine railways to establish traffic connections on fair terms.
- Preference given to employing local labor along railway lines where possible.
Telegraph and Communication Lines
- Right to construct and operate telegraph, telephone, and electrical lines for railway business.
- Philippine Government may place and operate up to four wires at government expense on poles erected by grantee.
- Government retains right to construct and maintain communication lines over railway right of way without unreasonable interference.
- Telegraph offices and operators to be provided at stations upon Governor-General’s direction and paid reasonably.
Inspection and Regulation
- All plans and works are subject to Governor-General’s inspection.
- Books and accounts must be open to official government inspection.
Taxation and Duties
- Importation of railway construction materials exempt from duties under prescribed regulations.
- Exemption limited to material used for initial construction and equipment; improper use triggers duty liability.
- Port charges similarly exempted proportionally.
- Annual payment to Philippine Government based on gross earnings:
- 0.5% for first 30 years.
- 1.5% for next 50 years.
- After 80 years, rate fixed by government.
- Payments replace all other municipal, provincial, or central taxes on the railroad.
Postal and Military Use
- Railway lines designated as post routes and military roads.
- Subject to government use for postal, military, naval, and other services with reasonable restrictions on charges.
- Grantee to provide facilities for mail and government cargo on trains at reasonable compensation.
Corporate Requirements
- Grantee to maintain office and domicile in the Philippines.
- Must have an authorized representative for government dealings and service of process.
Release of Claims by Previous Railway Company
- Manila Railway Company, Limited, waives claims against U.S. and Philippine governments arising from previous Spanish concession and military occupation.
- Grant of concession to new grantee contingent on presentation of acceptable release and waiver.
Amendment and Financial Restrictions
- Franchise subject to amendment or repeal by U.S. Congress.
- Issuance of stock and bonds only for cash or property at fair value.
- No stock or bond dividends allowed.
Definitions
- "Grantee" includes successors and assigns.
Condemnation Proceedings (Section 2)
- Public service corporations have the right to immediate possession of land upon deposit of the estimated value with the Philippine Treasurer.
- Court empowered to order possession by writ after deposit.
Execution of Contract and Bond (Section 3)
- Governor-General authorized to execute concession contract after Secretary of War approval.
- Bond in amount of $300,000 required before contract execution.
Government Officials’ Authority (Section 4)
- Designated government officers authorized to act in relation to the railways under the law and concession contract.
Effectivity and Repeal (Sections 5-7)
- Act takes effect upon passage but concession becomes operative only after acceptance, execution of contract and bond by grantee within 60 days.
- All inconsistent prior laws or parts repealed.