Grant of Franchise to Luzon Stevedoring Co., Inc. (Radio Communications)

June 18, 1949

REPUBLIC ACT NO. 404

AN ACT GRANTING TO THE LUZON STEVEDORING COMPANY, INC., A FRANCHISE TO CONSTRUCT, INSTALL, ESTABLISH AND OPERATE PRIVATE FIXED POINT-TO-POINT AND PRIVATE COASTAL RADIO STATIONS FOR THE RECEPTION AND TRANSMISSION OF RADIO COMMUNICATIONS WITHIN THE PHILIPPINES

SECTION 1. There is hereby granted and conceded to the Luzon Stevedoring Co., Inc., its successors or assigns, the right and privilege of constructing, installing, establishing and operating in the Philippines and at such places as the said company may select, subject to the approval of the Department Secretary under whose jurisdiction the Radio Control Division is functioning, or any competent authority who is or shall be authorized now or in the future, to give said approval, such private fixed point-to-point and private coastal radio stations for the reception and transmission of wireless messages on radiotelegraphy or radiotelephony, each station to consist of two radio apparatus comprising of a receiving and sending radio apparatus.

SECTION 2. The President of the Philippine Republic shall have the power and authority to permit the location of said private fixed point-to-point and private coastal radio 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 date and stations shall be placed in operation and is made upon the express condition that the same shall be void unless the construction of said stations be begun within two years from date of approval of this Act and be completed within four years from said date.

SECTION 4. The Luzon Stevedoring Co., Inc., shall not engage in domestic business of telecommunications in the Philippines without further special assent of the Congress of the Philippines, it being understood that the purpose of this franchise is to secure to the grantee the right to construct, install, establish and operate private fixed point-to-point and private coastal radio stations in places within the Philippines as the interest of the company and of its trade and business may justify.

SECTION 5. A special right is hereby reserved to the President of the Republic of the Philippines in time of war, insurrection, public peril, calamity or disaster to cause the closing of the station or stations or to authorize the temporary use or possession thereof by any department of the Government, upon just compensation.

SECTION 6. No fees are chargeable as the radio stations that may be established by virtue of this Act shall engage in communication regarding company's business only.

SECTION 7. The grantee, it successors or assigns, shall hold the National, 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 wireless messages by the grantee, its successors or assigns.

SECTION 8. The grantee, its successors or assigns, shall so construct and operate its radio stations as not to interfere with the operation of other radio stations maintained and operated in the Philippines.

SECTION 9. 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 therein, and any authority to take and occupy land contained herein shall not authorize the taking, use, or occupation of any land except such as is required for the 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 National, provincial or municipal government to which such land or right to use and occupy belonged at the time of the grant thereof or the right to use or occupy the same was conceded to the grantee herein, its successors or assigns.

SECTION 10. Grantee, successors or assigns, shall be subject to the Corporation Law of the Philippines now existing or hereafter enacted.

SECTION 11. The grantee, its successors or assigns, is hereby authorized to operate its private coastal stations on commercial frequencies that may be assigned to it by the licensing authority, including the international distress frequency of five hundred kilocycles and the high frequency distress frequency of eight thousand two hundred eighty kilocycles, and to communicate with ship radio stations open to public correspondence only in cases of emergency.

SECTION 12. This franchise shall not be interpreted to mean as exclusive grant of the privilege herein provided for.

SECTION 13. This Act shall take effect upon its approval.

Approved: June 18, 1949

Published in the Official Gazette, Vol. 45, No. 9, p. 3766 in September 1949