roads, ways, passages, conduits, drains, piers, arches, cuttings and fences on lands acquired, or on which the necessary right has been obtained, and to cross any railway, tramway, river, stream, water course, lake, canal, shore, road, and highway, where the necessary right has been obtained from those public or private corporations or individuals whose rights will be affected, also to direct or alter, as well temporarily as permanently, the course of any river, stream, water course or highway, or raise or sink the level thereof, in order the more conveniently to carry the same across, over, under, or by the side of the railroad, when the consent of the owners of rights or interests which may be prejudiced or injured, shall have been obtained through contract, or the injury compensated for in the case of expropriation proceedings.

(f) To open quarries, to collect stone from the surface of the land, to cut timber, to mine in lands for materials, and to build and operate kilns for lime, gypsum, and brick on lands owned, occupied, leased or under control for the purposes of the railroad.

(g) To conduct water to the railroad for the use of the same, and to acquire the necessary land and to make such roads thereon as may be necessary to give access to the stations from public roads in the vicinity.

(h) To borrow such sums of money and contract such debts from time to time as may be necessary to construct, complete, maintain, and operate the railroad or for any other lawful purposes; to issue and dispose of promissory notes, debentures or other securities for any amount so borrowed or debt contracted with or without the security of the properties or property rights of the railroad, and to secure such debts, notes, bonds, debentures or securities by a mortgage deed, creating mortgages, charges, and incumbrances upon owned properties and property rights or rights of any kind, or by deeds constituting liens and charges affecting the rents and revenues of the railroad in whole or in part. The grantee shall not have power to mortgage the railroad, construction of which is authorized herein, to the extent of more than an amount equivalent to fifteen thousand dollars a kilometer in money of the United States.

() No real or personal property of the railroad actually used and necessary for the purpose of the railroad line shall be taxed by any province or municipality for twenty years from the granting of this franchise.

(3) In the case of refusal, neglect, or delay in payment of the cost and expenses of transportation and conduction of freight over the whole length or any part of the line, the grantee shall have the right to detain the same until such time as amount due shall be paid. If the payment of rates or transportation on goods should not be effected. within fifteen days, the company may apply for their sale at public auction to the justice of the peace for the district wherein the station is situated, who will order the total or partial sale of said goods in sufficient amount to cover expenses, costs, transport, and conduction. (k) To make application before the justice of the peace of the district wherein the station is situated for the sale at public auction of all articles of freight or luggage transported by the company which may have remained at such station for two months or over and not been called for by the owner or consignee. In the before-mentioned cases or when the owner or consignee can not be found or is unknown

or shall refuse to receive the goods transported or pay the cost of transport, application may be made by the company to the justice of the peace for an order to sell at public auction within two days those goods which are of a perishable nature, and within ten days those not subject to deterioration. The proceeds of sale shall go first to defray the cost and expenses of said sale, and then to the account of freight and charges of the railroad company on said goods, and the balance, if there be any, shall be deposited with said judge at the disposition of the person who may have right to the same.

SEC. 14. The grantee company shall undertake to provide on its trains the locale which may be necessary for the service of mails, the rate of transportation, terms, and conditions under which same shall be carried being arranged and agreed to between the Director of Posts and the company. In case the Director of Posts and the company shall not agree as to the rate and terms, of transportation thereof, the Chief Executive of the Islands, after giving the company opportunity to be heard, shall fix the prices, terms, and conditions therefor. Such prices shall not be less for carrying such mails in the regular passenger trains than the amount which the company would realize as freight on a like transport of merchandise and a fair compensation for the post-office car. If the Government of the Islands should require in addition to the ordinary mail service, the transport of mail or urgent orders, at other hours or at higher speed than the passenger trains are run, the transport of troops, ammunition, bullion, or freight, the company shall provide, day or night, special conveyance for same and be allowed extra compensation therefor.

SEC. 15. The grantee company shall not put obstacles in the way of the road conceded being crossed by other lines of railroad authorized by the Government of the Islands, where full compensation is made for any damage which may be sustained and the police law of railroads is complied with.

SEC. 16. The legal domicile of the grantee company shall be in Manila where there shall also be a duly authorized representative with full powers to carry out the duties and sustain the rights conferred under the concession.

SEC. 17. From the time when the whole or part of the railroad shall be opened to public service the grantee company shall run its regular trains for the transportation of passengers and freight as near as practicable at regular hours fixed by public notice and shall furnish sufficient accommodation for the transportation of passengers and property as are within a reasonable time previously thereto offered for transportation at the places of starting.

SEC. 18. The company shall concede to all passengers holding first class tickets, the free carriage of fifty kilogrammes of personal baggage and those holding lower-class tickets thirty kilogrammes of personal baggage. By personal baggage is to be understood ordinary wearing apparel, bicycles, and such articles as may be required by persons practicing any profession or trade, it being further understood that such articles shall only be accepted by the company when contained in such receptacles as will safely contain the same for purposes of transportation and that the grantee company shall not be liable beyond the extent of one hundred gold dollars for each fifty kilogrammes of weight of such baggage unless the owner thereof shall, upon offering the same for transportation, declare the contents thereof and pay therefor by way

of insurance for the additional amount of responsibility to be assumed by the company in case of loss.

SEC. 19. The locomotive used in the working of the line shall be furnished with a bell and with a steam whistle and the bell shall be rung or the whistle sounded at a distance of at least three hundred meters from every place at which the railroad passes any highway and be kept ringing or sounding until the engine has crossed such highway.

SEC. 20. It shall be the duty of the grantee company to provide the locomotives used in the operation of the road with the necessary apparatus to prevent sparks or live coals setting fire to any properties adjacent to the line.

SEC. 21. The grantee company shall regulate the speed of trains running through the streets of towns or on public highways where the line is not fenced in, or where there are no gates or flagmen at crossings of such streets or highways to the velocity which the municipal councils of the respective towns shall decide on. In case the decision seems unreasonable the company may appeal to the Consulting Engineer, whose decision shall be final.

SEC. 22. The company shall oblige every employee working on a passenger train or at a station for passengers, to wear upon his Hat or cap a badge which shall indicate his office, and he shall not without such badge be entitled to exercise any of the powers of his office or ask for the help of the guardians of the law if such are necessary.

SEC. 23. It shall be obligatory for the company by means of its agents or employees to affix checks or tags to every parcel of baggage delivered to such agents or employees for transportation and a duplicate of such check or tag shall be delivered to the passenger delivering same. If the grantee company does not comply with this obligation no fare or toll shall be received from such passenger, and if such passenger has already paid same it shall be returned on demand.

SEC. 24. The company may refuse to transport any package or parcel suspected to contain goods of a dangerous nature or whose transport shall be prohibited by the Government.

SEC. 25. The grantee company shall charge for the transport of passengers or freight prices fixed by reasonable tariffs. Such tariffs shall be approved by the Consulting Engineer or by such other officers as may be provided by law. The legislative authority of the Islands may provide for the change and regulation of tariffs so as to make them reasonable.

SEC. 26. The tariffs approved by the governmental authority for the conduction and transport of passengers, baggage, packages, freight, and live stock shall be posted by the company in prominent places in its stations before such tariffs shall go into effect, and they shall also be published in the papers of Manila for the general information of the public.

SEC. 27. The franchise conferred herein to construct, maintain, and operate a railroad from Guiguinto to Cabanatuan is, subject to the right of Congress to amend, modify, or repeal the same under the Philippine Act, made perpetual.

SEC. 28. The tariffs for transport of public and Government freight and passengers which shall be applied for the working of the line from Guiguinto to Cabanatuan shall be those approved by the Government of the Island for the Manila and Dagupan Railroad. These tariffs

shall be revised by the proper governmental authority when a standard currency shall be established for these Islands in the place of the Mexican dollar to-day in circulation or a law fixing the monetary basis in the Islands be enacted.

SEC. 29. Before inaugurating the first district of the line conceded the grantee company shall submit for the approval of the proper governmental authority of the Islands the working rules and regulations for the government of its train and station service, for the condition of its traffic, for the proper care of its tracks, bridges, and other appurtenances and for the guidance of its employees, and the Government having given the company opportunity to be heard thereon, shall make in said working rules and regulations the additions and alterations which shall be considered necessary. These working rules and regulations, after being approved by the proper governmental authority, shall have the force of law, but they shall be subject to modification at any time at petition of the company, said modifications being subject, after giving the company opportunity to be heard, to alteration by the proper authority, and when approved in presented or modified form shall have the force of law.

SEC. 30. Within the term of fifteen days from the date of the acceptance of the concession as hereinafter provided, the grantee company shall deposit in the office of the Insular Treasurer in Manila, a sum, in money of the United States, equal to three hundred dollars for each kilometer of the concession; said deposit shall be returned to the grantee company in proportion and as the work be terminated and for lengths which shall not be less than ten kilometers. The grantee company shall lose all or part of said deposit in favor of the Insular Government if more than six months shall elapse without having begun the railroad, or more than three years shall elapse before it is terminated. The deposit shall not be forfeited when the termination of the works shall have been partially or totally interrupted by force majeure or by fortuitous causes. In case the grantee company desires to do so, the deposit herein required may, with the approval of the Civil Governor, be made in interest bearing bonds, or other securities, at least equivalent, both in par and actual value, to the money deposits above required, and the interest due on the bonds or other securities shall, as it accrues, be paid to the grantee company or its order.

SEC. 31. The Legislature of the Islands after hearing the grantee company shall have the power to declare the forfeiture of the concession in the following cases:

(a) If the works are not commenced or the road finished within the period prescribed in the concession except in cases fortuitous or force majeure; when such cases shall occur the Legislature of the Islands shall have the power to extend as considered necessary the period fixed for the execution of the works. At the termination of the extension of time, the concession shall be forfeited.

(b) If on the opening to public traffic of the total length of line the grantee company interrupts the public service for a longer period than one month when such interruption shall not be due to force majeure or to the carrying out of repairs as considered necessary for the security of the public by the inspector named by the Government or by the company.

SEC. 32. Against the declaration of forfeiture of the concession made by the Legislature of the Islands, the grantee company may

apply in the first instance to the courts of the Islands and on appeal to the Supreme Court of the United States of America. If the grantee company should not appeal against the declaration of forfeiture within a period of two months after the same has been communicated, it shall be understood that the above privilege is renounced. The forfeiture of the concession implies the loss of the deposit.

SEC. 33. Once that the declaration of forfeiture of the concession is signed all works which have been completed shall be put up to public auction and the concession shall be adjudicated to the highest bidder who shall pay to the original grantee the amount obtained in such auction for said works, deducting costs and expenses which the same may occasion. The basis of the auction shall be the estimated value of the technical study for the execution of the work, the lands bought, works completed, the existing plant and material for the execution of the works and the working of the line. The valuation shall be made by two experts, one to be named by the Government and the other by the grantee company, and a third who shall be named by common consent in case of disagreement.

SEC. 34. Nothing herein contained shall be used to prejudice the Insular Government or the Government of the United States in the issues pending between the Manila Railway Company, Limited, and the United States or the Insular Government as to claims for damages or the forfeiture of the right to present such claims by the Manila Railway Company, Limited.

SEC. 35. The granting of this charter shall be subject in all respects to the limitations upon corporations and the granting of franchises contained in the Act of Congress approved July first, nineteen hundred and two, entitled "An Act temporarily to provide for the administration of affairs of civil government in the Philippine Islands and for other purposes.

SEC. 36. This Act shall take effect on its passage, but the grant of the franchise shall not become operative unless the grantee company shall, within sixty days after the passage hereof, file with the Civil Governor its acceptance of the franchise and its agreement to comply with all the terms of this act.

Enacted, December 8, 1902.

[No. 555.]

AN ACT to authorize the construction by the Manila Railway Company, Limited, owning and operating the Manila and Dagupan Railway, of two branches, one connecting Mabalacat with the main line and one connecting Bayambang with the main line.

By authority of the United States, be it enacted by the Philippine Commission, that:

SECTION 1. The Manila Railway Company, Limited, is hereby authorized to construct a railroad in the municipality of Mabalacat, in the Province of Pampanga, four and one-half miles in length, from the main line of the Manila and Dagupan Railway to a point to be occupied by troops of the United States Army as an Army post; and in the municipality of Bayambang, in the Province of Pangasinan, a branch to be one mile in length, and to connect the main line of said