The Municipal code and the Provincial government act, being Act no. 82, entitled "A general act for the organization of municipal governments in the Philippine islands", and Act no. 83, entitled "A general act for the organization of provincial governments in the Philippine islands" as amended by the acts of the Philippine commission down to and including May 31, 1905, revised and codified by the Committee on revision and codification appointed by the governor-general. Published by authority of the Philippine commission.

FRANCHISES, ETC.

145

such a course would result in benefit to the public, he may require
that the letting of a franchise in any municipality or province
shall be put up for public bid, after due advertisement to be prescribed by him; but in cases where, in his judgment, there is
likely to be but one bidder, and no- benefit would accrue to the
public by requiring the expense and delay of advertising, he is
authorized to dispense with the same upon petition from the
municipality and provincial board.
SEC. 5. Every franchise granted hereunder shall contain a pro- Reservation of
power to alter,
vision that it is granted subject to the power of Congress to alter, etc.
modify, or repeal the same in accordance with the Act of Congress
entitled "An Act temporarily to provide for the administration of
the affairs of civil government in the Philippine Islands, and for
other purposes," approved July first, nineteen hundred and two.
SEC. 6. There shall be no power on the part of the municipal Taxation.
council or the provincial board in the granting of franchises to
contract for the exemption from taxation of the property of the
grantee of the franchise; such exemption can only be granted by
special Act of the Commission.
SEC. 7. The books of the person or corporation maintaining and Open books.
operating a line of street railway, telephone, or electric light or
power plant under this law, shall always be open to the inspection
of the provincial treasurer or a deputy designated by him for the
purpose, and it shall be the duty of the grantee of the franchise
operating under the same to submit to the provincial treasurer
quarterly reports showing the gross receipts and the net receipts
for the quarter past and the general condition of the business.
The percentage of gross receipts, which by the terms of the fran- Payment of percentage of gross
chise are to be paid by the grantee thereof, shall be paid in quar- receipts.
terly installments, and shall be paid to the provincial treasurer
for deposit in, the provincial treasury. One-half thereof shall be
retained for provincial purposes and the other half shall be dis- Distribution.
tributed to the municipalities in which the line of railway, telephone line, or electric light or power line is constructed; and
where the line runs through more than one municipality, the onehalf of the receipts shall be distributed between the two or more
municipalities in proportion to the mileage of the line in each.
SEC. 8. The quarterly reports of the grantee of the franchise, Quarterly rerequired in the preceding section, shall be in duplicate and the
provincial treasurer shall forward one of them to the Insular
Auditor, who shall keep the same on file.
SEC. 9. Franchises may be granted for the operation of an elec- Two or more
provinces.
tric street railway line, electric light or power line, or electric telephone line, in two or more provinces; but in such cases the grant
shall be made not only by the municipalities through which the
line runs, but also by the action of the provincial boards of the
provinces in which the proposed lines are to be, and in such cases
the distribution of the percentage of gross receipts for the franchise shall be between the provinces in proportion to the mileage
therein.
SEC. 10. The owner of an electric street railway, electric tele- Mortgage.
phone line, or an 'electric light or power line constructed under
this law or by authority of a special Act of the Commission, shall
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