Grant of Hydrofoil and/or Ship Ferry Service Franchise to Cesar T. Rosales

June 19, 1965

REPUBLIC ACT NO. 4530

AN ACT GRANTING CESAR T. ROSALES A FRANCHISE TO ESTABLISH, MAINTAIN AND OPERATE A HYDROFOIL AND/OR SHIP FERRY SERVICE FOR PASSENGERS AND FREIGHT LINKING THE PROVINCES AND ISLANDS OF LUZON, MARINDUQUE, MINDORO, MASBATE, ROMBLON AND PANAY

SECTION 1. Subject to the conditions established in this Act and the provisions of the Constitution and the Public Service Act, there is granted to Cesar T. Rosales, for a period of twenty-five years from the approval of this Act, the right, privilege and authority to establish, maintain and operate a hydrofoil and/or ship ferry service for passengers and freight linking the provinces and islands of Luzon, Marinduque, Mindoro, Masbate, Romblon, and Panay, and to establish a schedule of rates therefor, which shall at all times be subject to regulations by the Public Service Commission: Provided, That this franchise shall be null and void unless the grantee, within one year from the date of the approval of this Act, files with the Public Service Commission his acceptance of the terms and conditions stipulated in this Act.

SECTION 2. Within one year after the acceptance of the franchise granted hereunder and in accordance with the conditions herein stipulated, the grantee shall put in operation an adequate and efficient hydrofoil and/or shipping ferry service linking the provinces mentioned in the preceding section. The hydrofoils and/or ferryboats operated by the grantee and the equipment thereof shall meet the requirements prescribed by the Public Service Commission, and the grantee, whenever the Public Service Commission has determined that public interest reasonably requires it, shall change or improve any of said hydrofoils or ferryboats or the equipment thereof at his expense.

SECTION 3. The grantee binds himself to provide in his hydrofoils or ferryboats a suitable and adequate place for the mail and shall carry them in the manner stipulated between the Postmaster General and the said grantee for such consideration as may be agreed upon between them, and in case of failure to arrive at an agreement as to the rate of compensation and the manner in which such mail shall be carried, the Public Service Commission shall fix the manner of, and compensation for, carrying said mail, after hearing and considering the arguments of the said Postmaster General and grantee: Provided, That in case the Government requires the transportation of troops, ammunition or funds for the public good, the grantee shall receive a reasonable compensation for such service.

SECTION 4. The books, records and accounts of the grantee shall always be open to the inspection of the City Treasurer of Lucena City or his authorized representative, and it shall be the duty of the grantee to submit to the National Treasurer quarterly reports in duplicate showing the gross receipts for passengers and freight for the past quarter and the general condition of the business, one of which shall be forwarded by the National Treasurer to the Auditor General, who shall keep the same on file.

SECTION 5. The grantee shall be liable to pay the same taxes on his real property, building, and personal property as other persons or corporations are now or hereafter may be required by law to pay. The grantee shall further be liable to pay all other taxes imposable under the National Internal Revenue Code by reason of this franchise.

SECTION 6. The grantee, upon prior approval of the Congress of the Philippines, may sell, lease, grant, convey, assign, give in usufruct, or transfer this franchise and all property and rights acquired thereunder to any individual, co-partnership, private, public or quasi-public association, corporation or joint-stock company competent to operate the business hereby authorized, but transfer of title to the franchise or any right of ownership or interest acquired under such sale, lease, grant, conveyance, assignment, gift in usufruct, or transfer shall not be effective, even after such approval shall have been obtained, until there shall have been filed with the Public Service Commission an agreement in writing by which the individual, co-partnership, private, public or quasi-public association, corporation, or joint-stock company in whose favor such sale, lease, grant, conveyance, assignment, gift in usufruct, or transfer is made, shall be firmly bound to comply with all the terms and conditions imposed upon the grantee by the franchise and to accept the same, subject to all existing terms and conditions.

SECTION 7. The Public Service Commission shall have the power after a reasonable written notice to the grantee and a hearing of the interested parties, to declare the forfeiture of this franchise and all rights inherent in the same for failure on the part of the grantee to comply with any of the terms and conditions hereof unless such failure shall have been directly and primarily caused by an act of God, force majeure, usurped right, uprising or other causes beyond the grantee's control. Against such declaration of forfeiture by the Public Service Commission, the grantee may apply for the remedies provided in Sections thirty-four and thirty-six of the Public Service Act. The remedy provided herein shall not be a bar to any other remedy provided by existing laws for the forfeiture of this franchise.

SECTION 8. In the event of any competing individual, association of persons, or corporation receiving from the Congress of the Philippines a similar franchise in which there shall be any term or terms more favorable than those herein granted or tending to place the herein grantee at any disadvantage, then such term or terms shall ipso facto become a part of the terms hereof and shall operate equally in favor of the grantee as in the case of said competing individual, association of persons or corporation. aisa dc

SECTION 9. Whenever in this franchise the term "grantee" is used, it shall be held and understood to mean and represent Cesar T. Rosales, his representative, successors or assigns.

SECTION 10. This franchise shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires, and shall not be interpreted to mean an exclusive grant of the privilege herein provided.

SECTION 11. This Act shall take effect upon its approval.

Approved: June 19, 1965

Published in the Official Gazette, Vol. 62, No. 50, p. 9405 on December 12, 1966