Section 1. There is granted to the United Press Associations, its successors or
assigns, a franchise to construct, maintain and operate in the
Philippines at such places as the said company may select, subject to
the approval of the Secretary of Public Works and Communications, a
station or stations for the wireless reception and transmission or
wordage, pictures or other matter intended for publication, either in
the public press or by means of broadcast radionews, to and from points
within the Philippines, to and from points exterior thereto, including
airplanes, airships and vessels even though such airplanes, airships
and vessels be located within the territorial limits of the
Philippines.
Each station may consist of two plants, a sending station and a
receiving station: Provided, That the United Press Associations, may
establish in any province in the Philippines a station for the master
receiving and transmitting plant, and if, due to lack of facilities or
other reason, the said company is unable to avail itself of the use of
land line service, it may establish, in Manila or other nearby points
where such service is available, such smaller plants or plants as may
be necessary for the handling of wireless traffic relayed to and from
the master stations, which handling of traffic shall not be construed
as engaging in domestic business in the Philippines, but merely a part
of the circuit in bringing press material to Manila from Points
exterior to the Philippines.
Section 2. The President of the Philippines shall have
power and authority to permit the location of said stations or any of
them on the public domain upon such terms as he may prescribe.
Section 3. This grant and concession shall continue
for a period of fifty years from the date of the issuance of the
license required in section five hereof and is made upon the express
condition that the same shall be void unless the construction of the
master station be started within one year from the date of the issuance
of said license and be completed within two years
Section 4. The said company shall not engage in
domestic business in the Philippines without further special assent of
the National Assembly, it being understood that the purpose of this
franchise is to secure to the said company the right to conduct the
business of long distance wireless communication with points outside
the Philippines, by receiving and transmitting wordage, pictures or
other matter for publication, either in the public press or by means of
broadcast radionews.
Section 5. This franchise shall not take effect until
the President of the Philippines shall have allotted to the grantee the
frequencies and wave-lengths to be used thereunder and determined the
stations to and from which each such frequency and wave-length may be
used, and issued to the grantee a license for such use. The grantee
shall begin operation under this franchise within three years from the
date on which said license shall have been issued by the President of
the Philippines.
Section 6. The President of the Philippines on
reasonable notice to the grantee, may at any time change or cancel or
modify in whole or in part any or all of the allotments of frequencies
or wave-lengths hereunder as well as any license issued hereunder to
use such frequencies or wave lengths to or from any or all stations to
and from which they may be used. He may take such action (a) whenever
in his judgment such frequencies and wavelengths have been used or
there is danger that they will be used by the grantee to impair
electrical communication or stifle competition or to obtain a monopoly
in electrical communication, or to secure unreasonable rates for such
communication, or otherwise to violate the laws of public policy of the
Philippines; (b) whenever in his judgment the public interest of the
Philippines requires that such frequencies or wave-lengths should be
used for other purposes than those of the grantee, either by the
Commonwealth of the Philippines or by other individuals or corporations
licensed by it; (c) whenever in his judgment for any reason the public
interest of the Philippines pines so require.
The President of the Philippines is authorized to appoint, employ or
make use of such boards, commissions or agents as in his discretion he
may select, to investigate and determine the facts upon which he may
act as aforesaid, and such boards, commissions and agents shall have
the right by compulsory process of subpoena, to summon witnesses,
administer oaths and take evidence.
Section 7. The grantee, its successors or assigns,
shall so construct and operate its wireless station or stations as not
to interfere with the operation of other radio stations maintained and
operated in the Philippines.
Section 8. A special right is reserved to the
President of the United States, in time of war, insurrection, or
domestic trouble, to take over and operate the said station upon the
order and direction of the State Department of the Republic of the
United States, the United States Government paying and compensating the
grantee for the use of said station during the period when they shall
be so operated by the said Government.
A similar right is hereby reserved to the Commonwealth of the
Philippines, under similar circumstances and upon similar conditions,
upon the order and direction of the President of the Commonwealth.
Section 9. The right is hereby reserved to the
Government of the Commonwealth of the Philippines through the Public
Service Commissioner or such other officer as may be thereunto duly
authorized, to fix the maximum rates to be charged by the said company,
its successors or assigns.
Section 10. The grantee, its successors or
assigns, shall keep an account of the gross receipts of the business
transacted by it and shall furnish to the Auditor General and the
Treasurer of the Philippines a copy of such account not later than the
thirty-first day of January of each year for the preceding year. For
the purpose of auditing accounts so rendered to the Auditor General and
the Treasurer of the Philippines, all of the books and accounts of the
grantee, its successors or assigns, shall be subject to the official
inspection of the Auditor General. or his authorized representative,
and in the absence of fraud or mistake the audit and approval by the
.Auditor General of the accounts so rendered to him to the Treasurer of
the Philippines shall be final and conclusive evidence as to the amount
of said gross receipts.
Section 11. The grantee, its successors or
assigns, shall be liable to pay the same taxes on their real estates,
buildings, and personal property, exclusive of the franchise, as other
persons or corporations are now or hereafter may be required by law to
pay. The grantee, its successors or assigns, shall further pay the
Treasurer of the Philippines each year, within ten days after the audit
and approval of the accounts as prescribed in section ten of this Act,
one and one-half per centum of all gross receipts for business
transacted under this franchise by said grantee, its successors or
assigns, in the Philippines, and the said percentages shall be in lieu
of all taxes on the franchise or earnings thereof.
Section 12. The grantee, its successors or
assigns, shall hold the Commonwealth, provincial, and municipal
governments of the Philippines harmless from all claims, accounts,
demands, or actions arising out of accidents or injuries, whether to
property or to persons caused by the construction or operation of the
stations for reception and transmission of press messages of said
grantee, its successors or assigns.
Section 13. No private property shall be taken
for any purpose by the grantee of this franchise, its successors or
assigns, without proper condemnation proceedings and just compensation
paid or tendered therefor, and any authority contained herein to take
and occupy land shall not authorize the taking, use, or occupation of
any land except such as is required for actual necessary purposes for
which the franchise is granted. All lands or rights of use and
occupation of lands granted to the grantee, its successors or assigns,
shall upon the termination of this franchise or upon its revocation or
repeal, revert to the Commonwealth Government or the provincial or
municipal government to which such lands or the right to use and occupy
them belonged at the time the grant thereof or the right to use or
occupy the same was conceded to the grantee herein its successors or
assigns.
Section 14. The grantee, its successors or
assigns, shall not issue stock or bonds except in exchange for actual
cash or for property at a fair valuation equal to the par value of the
stock or bonds issued, and said grantee, its successors or assigns,
shall not use, employ, or contract for the labor of persons claimed or
alleged to be held in involuntary servitude.
Section 15. As a condition of the granting of
this franchise the grantee shall execute a bond in favor of the
Government of the Philippines, in the sum of twenty-five thousand
.pesos, in a form and with sureties satisfactory to the Secretary of
Public Works and Communications, conditioned upon the faithful
performance of the grantee's obligations hereunder during the first
three years of the life of this franchise. If, after three years from
the date of the acceptance of this franchise, the grantee shall have
fulfilled said obligation or so soon thereafter as the grantee shall
have fulfilled the same, the bond aforesaid shall be cancelled by the
Secretary of Public Works and Communication.
Section 16. The bond required in the preceding
section together with an acceptance in writing of this franchise shall
be given within six months after approval of this Act, and filed with
the Secretary of Public Works and Communications.
Section 17. This franchise shall be subject to
the limitations of the Constitution and shall not be interpreted to
mean as exclusive grant of the privileges herein provided
for.
Section 18. This Act shall take effect on its
approval.
|