[ Act No. 3784, November 29, 1930 ]
AN ACT GRANTING TO DIONISIO CONSENGCO, MANUEL SANTOS, DONATO CALIMBAS, AND EUSEBIO CRISTOBAL A FRANCHISE TO INSTALL, OPERATE, AND MAINTAIN A WATER SUPPLY SYSTEM IN THE MUNICIPALITY OF ORION, PROVINCE OF BATAAN, PHILIPPINE ISLANDS.
Be it enacted by the Senate and House of Representatives of the Philippines in
Legislature assembled and by the authority of the same:
Section 1. Subject to the conditions established in this Act and the provisions of Act Numbered Thirty-one hundred and eight and amendments, applicable thereto, there is hereby granted to Dionisio Consengco, Manuel Santos, Donato Calimbas, and Eusebio Cristobal, for a period of fifty years from the approval of this Act, the right, privilege, and authority to construct, maintain, and operate a water supply system for the purpose of distributing water for sale within the limits of the municipality of Orion, Province of Bataan, Philippine Islands. For this purpose, the grantees shall have the right and privilege to drill, maintain, and operate artesian wells on land owned or duly acquired by them for said purpose within the aforesaid limits, to install and maintain on said land hydraulic pumps moved by steam or otherwise, if necessary, and adequate tanks at suitable heights for storing the water from said artesian wells, and to install, lay, and maintain above or below the ground on the right of way duly acquired by said grantees, or below the ground on all the streets, public thoroughfares and public places and along or under the bridges within said limits, water mains, pipes, and conduits, and all other necessary apparatus and appurtenances for the furnishing and distribution of the water contained in said tanks, and to supply, sell, and furnish water to any person, corporation or public or private concern within said limits for provincial, municipal, domestic, or manufacturing uses and for any other use to which water may be put, and to charge and collect a schedule of prices and conventional rates for the use of said water: Provided, That this franchise shall not take effect until the grantees shall have obtained from the Public Service Commission a certificate showing the public necessity and convenience thereof, according to the purpose of subsection (i), section fifteen of Act Numbered Thirty-one hundred and eight, as amended, and shall have filed such certificate with the Secretary of Commerce and Communications, upon accepting this franchise: And provided, further, That if the grantees do not file the proper application for said certificate with the Public Service Commission, within three months from the date of the approval of this Act, this franchise shall become null and void.1aшphi1
Section 2. All water mains and pipes situated within the strong-material zone of the municipality of Orion, Province of Bataan, as now or hereafter established by law, shall be placed at least forty-five centimeters below the surface of the ground as far as the upper part of such mains or pipes is concerned. The water mains or pipes between the storage tanks and the source of supply and said limits of the strong-material zone of the municipality may be put above the ground on the grantees' right of way except where they cross a street or public place, in which case they shall be placed below the ground at the depth above mentioned. The construction and laying of the mains and pipes shall be done in a workmanlike manner, in accordance with a plan previously approved by the Public Service Commission, and whenever it shall be necessary to change the level in any part thereof in order to avoid interference with any public sewer or drain constructed or to be constructed, the grantees herein shall forthwith change such portion of said mains and pipes as the Public Service Commission may direct in writing, and said grantees shall supply water to any applicant for the same, within fifteen days after the date of his application, in the order of the date of his application up to the limit of the capacity of the system of said grantees, to be determined by the Public Service Commission on the application of said grantees, and should the demand for water at any time increase beyond the capacity of the system of said grantees to supply the same, the capacity of said system shall be increased by said grantees to meet such demand, in accordance with the decision of the Public Service Commission or its lawful successor: Provided, That the distribution system of the water pipes shall be installed, laid, maintained, and operated only on such streets and public places of the municipality as the Public Service Commission may designate: And provided, further, That the grantees in furnishing water to applicants therefor, as stated, shall make all connections with their mains and shall be entitled to demand a fair charge therefor as the Public Service Commission may by order provide.
Section 3. All apparatus and appurtenances used by the grantees shall be modern and first class in every respect, and the water mains and pipes shall, as above provided, be placed at a depth of at least forty-five centimeters under the surface of the street, measured from such surface to the upper part of such mains or pipes, and when laid in streets or public places, they shall be so placed and maintained as not to interfere in any manner with the unrestricted use of such public places and streets: Provided, That in the maintenance and operation of their water supply system, the grantees shall always be subject to such reasonable regulations as the Public Service Commission may promulgate in the premises.
Section 4. Whenever it shall be necessary in the laying of said mains or pipes to take up any portion of the sidewalks or dig up the ground of the sidewalks of public streets or thoroughfares, then the said grantees shall, after said mains or pipes are laid, without delay replace said sidewalks in the proper manner or arrange said streets or public thoroughfares, removing from the same all rubbish, dirt, refuse, or other material which may have been placed there, taken up or dug up in the laying of said mains or pipes, leaving them in as good condition as they were before the work was done; and whenever it shall become necessary, by reason of the extension of roads determined upon by the provincial board of Bataan, or by reason of the extension of streets or plazas determined upon by the municipal council of the municipality above mentioned to change the location of said mains or pipes, such change shall be made by the grantees, their successors or assigns, at their expense, without delay, and said mains or pipes shall be placed where directed by said provincial board or said municipal council.
Section 5. The grantees shall be liable to the municipality above named for any injury arising from any claims caused by accidents to persons or property by reason of the construction under this franchise or of any neglect or omission to keep the said mains or pipes, artesian wells, hydraulic pumps, and tanks in a safe condition.
Section 6. The grantees shall have the right to acquire or obtain by grant, lease or purchase sufficient land for the drilling thereon of artesian wells, the placing of hydraulic pumps moved by steam or otherwise, if necessary, and the erection of buildings and of tanks at suitable heights for the storage of the water from said artesian wells, and a right of way separate from all streets and public highways not to exceed ten meters in width, from the location of each tank to the limits of the strong-material zone of the municipality above mentioned, and in order to acquire such land or any part thereof they may institute proceedings in any competent court for the expropriation of all such land or any part thereof, as provided by law.
Section 7. Said grantees shall file their written acceptance of this franchise with the Secretary of Commerce and Communications within one hundred and twenty days from the date when they obtain the certificate required by section one of this Act, and shall commence work under the supervision of the district engineer, in accordance with the plan, specifications, and estimates previously approved by the Public Service Commission, within six months' time from and after the date of filing such acceptance, unless prevented by act of God or force majeure, usurped or military power, martial law, riot, or civil commotion or other inevitable cause, and shall complete the system and have the same in operation within eighteen months from the date of such acceptance, and shall thereafter maintain a first-class water system and furnish first-class service to the public and to private consumers: Provided, That in consideration of the franchise hereby granted, the grantees shall pay quarterly into the municipal treasury of the municipality above named, one per centum of the gross earnings of their business during the first thirty years, and two per centum during the remaining twenty years of the life of this franchise.
Section 8. Upon the acceptance of this franchise as provided in the next preceding section, the grantees shall deposit in the Insular Treasury or with any of its agents in the Province of Bataan, one thousand pesos, or negotiable bonds of the United States or other securities approved by the Secretary of Commerce and Communications, of the face value of one thousand pesos, as an earnest of good faith and a guaranty that they will begin the water supply business and may be completely provided with the necessary equipment therefor and ready to begin operation in accordance with the terms of this franchise: Provided, however, That if such deposit is in cash, it may be made in some official depository of the Government in the name of the grantees and subject to the order of the Insular Treasurer, who shall retain the evidence of the deposit so made. In this case, as well as in the case of the deposit being made in negotiable bonds or other securities, as provided in this section, the interest of the cash deposit or of the bonds or securities deposited, if any, shall belong to the grantees.
In case such grantees shall fail, refuse, or neglect, unless prevented by fortuitous cause or force majeure, the public enemy, usurped or military power, martial law, riot, civil commotion, or other inevitable cause, to commence the work for the water supply service within six months from the date of the acceptance of this franchise, or shall fail to provide the necessary equipment and be ready to operate within eighteen months after the date of such acceptance, in accordance with the terms of this franchise, then the deposit prescribed in this section and in the possession of the Insular Treasurer, whether in cash, bonds, or other securities, shall be forfeited to the provincial government of Bataan, as damages for the breach of the implied contract involved in the acceptance of this franchise. In case the grantees begin to operate the water supply service, and are ready for operation under this franchise, within the time limits specified, the deposit provided for in this section shall, upon recommendation of the Public Service Commission or its legal successor, be returned by the Insular Treasury to said grantees: Provided, That the time during which such grantees have been prevented from carrying out the terms above mentioned, shall be added to the time granted by this franchise for the fulfillment of its conditions.
Section 9. This franchise is granted with the understanding and upon the condition that it shall be subject to amendment, alteration, or repeal by the Congress of the United States as provided in section twenty-eight of the Act of Congress approved August twenty-ninth, nineteen hundred and sixteen, entitled "An Act to declare the purpose of the people of the United States as to the future political status of the people of the Philippine Islands, and to provide a more autonomous government for those Islands," or by the Philippine Legislature, and that it shall be subject, in all respects, to the limitations upon corporations and the granting of franchises contained in said Act of Congress, and that all lands or rights of use or occupation of lands secured by virtue of this franchise shall revert upon its termination to the insular, provincial, or municipal governments which were the owners thereof upon the date on which this franchise was granted, and all property of the grantees used in connection with this franchise shall become the property of the Insular Government.
Section 10. The books and accounts of the grantees shall always be open to the inspection of the provincial treasurer of Bataan or his authorized representative, and it shall be the duty of the grantees to submit to the provincial treasurer quarterly reports in duplicate showing the gross receipts and the net receipts for the quarter past and the general condition of the business, one of which shall be forwarded by the provincial treasurer to the Insular Auditor, who shall keep the same on file.
Section 11. The grantees shall pay on their real estate, buildings, plant, machinery, and other personal property the same taxes as are now or may hereafter be required by law from other persons.
Section 12. The grantees herein shall not, without the approval of the Philippine Legislature first had, lease, grant, sell, convey or give in usufruct this franchise and the property and rights acquired thereunder to any person or corporation: Provided, That for the purpose of such lease, granting, sale, conveyance, or giving in usufruct, it shall be necessary to file in the office of the Secretary of Commerce and Communications an agreement in writing by which the person or corporation in whose favor such lease, grant, sale, conveyance, or giving in usufruct is made, shall bind himself to comply with all existing terms and conditions: Provided, further, That in case of any national emergency affecting and endangering the public safety and order, the Government of the Philippine Islands shall have the right to take possession of the water supply system as provided in this Act, and operate the same until such emergency shall have passed.
Section 13. The Public Service Commission or its legal successor, after hearing the interested parties, upon notice and order in writing, shall have the power to declare the forfeiture of this franchise and all rights inherent in the same for failure on part of the grantees to comply with any of the terms and conditions thereof, unless such failure shall have been directly and primarily caused by the act of God, the public enemy, or force majeure. Against such declaration of forfeiture by the Public Service Commission or its legal successor, the grantees may apply for the remedies provided in section thirty-live of Act Numbered Thirty-one hundred and eight, as amended.
Section 14. At any time after twenty years from the date of this Act, the Government of the Philippine Islands or any political subdivision thereof to which the right may be assigned, may purchase, and the grantees shall sell thereto all their artesian wells, hydraulic pumps, tanks, mains or pipes, buildings, real estate, and all other property used in the enjoyment of this franchise, at a valuation based in part upon the net earnings of the grantees and the actual value on the books, making the proper deduction for depreciation, in part on the actual cost of reproduction of said property less depreciation, and in part on the original cost thereof less depreciation, the valuation to be determined, after hearing evidence, by the Supreme Court of the Philippine Islands, sitting as a board of arbitrators, whose decision, by a majority of the members thereof, shall be final.
Section 15. The rates for the water service fixed by the grantees shall always be subject to regulation by Act of the Philippine Legislature or by the entities authorized by law.
Section 16. Whenever in this franchise the term "grantees" is used, it shall be held and understood to mean and represent Dionisio Consengco, Manuel Santos, Donato Calimbas, and Eusebio Cristobal, their representatives, successors, or assigns.
Section 17. This Act shall take effect on its approval.
Approved, November 29, 1930.
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