TRANSLATION OF THE LAW OF RAILROADS WAR DEPARTMENT, 1899. LAW OF RAILROADS FOR THE ISLAND OF PORTO RICO. CHAPTER I.-CLASSIFICATION OF RAILROADS. ARTICLE 1. This law refers to all railroads, whatever be the system of tranction employed. ART. 2. Railroads are divided into lines of general service and of private service. ART. 3. Railroads of general service are those devoted to public operation for transportation of passengers and traffic of merchandise; those of private service are devoted to the exclusive operation of a given industry or to private use. ART. 4. For the purposes of this law, the following lines form the general plan of railroads of the island of Porto Rico: 1. From San Juan de Puerto Rico to Mayagüez, by way of Arecibo and Aguadilla. 2. From Rio Piedras to Humacao, by way of Fajardo. 3. From Ponce to Mayagüez, by way of San German. 4. From Ponce to Humacao, by way of Arroyo. 5. From Caguas to the beach of Naguabo, by way of Juncos. ART. 5. All the lines included in the plan adopted by the previous article, and also those which may be included in the future in said plan, are lines of general service. Lines devoted to the operation of coal veins and mines of importance, may also be included in those of general service when so classified. ART. 6. The plan of railroads can not be changed or modified but by virtue of a law. ART. 7. All the railroad lines of general service are of public ownership, and shall be considered as works of public utility, which are entitled to the right of eminent domain. ART. 8. The declaration that a railroad, devoted to the operation of a coal vein or of mines of importance, is of general service, shall be made by a law. In order to obtain said declaration, a report of experts as to the importance of the mines shall in all cases be necessary. The report shall be made by the Secretary of the Colonies, after hearing the Superior Consulting Board of Mines. CHAPTER II.-CONCESSION AND AUTHORIZATION TO CONSTRUCT RAILROADS OF GENERAL SERVICE. ART. 9. The construction of lines of general service may be undertaken by the general government, by companies, or by individuals. ART. 10. In order that the government may undertake the construction of a line with national funds, or with the aid of the provinces or 75270-H. Doc. 1484, 60-2, pt 3- -16 1629 towns, it is necessary that the line be included in the plan, and besides, its immediate execution must be authorized by a special law. ART. 11. When a line of general service is to be constructed by individuals or companies, the concession must always be preceded by a law fixing the conditions under which the concession is to be granted. ART. 12. The construction of lines of general service may be aided with public funds: 1. By carrying on certain works in conjunction with the lines. 2. By delivering to the companies at stated periods a part of the capital invested. 3. By allowing the use of works constructed for public use compatible with the use of the railroads. 4. By granting exemption from customs duties upon the material of construction and operation of the railroads, complying strictly with the provisions of the laws of the Budget or any others in force. 5. By guaranteeing interest, which shall not exceed 8 per cent per annum on all, or on part, of the capital invested in constructing the railroad. 6. By delivering to the companies an annual amount per kilometer in operation, repayable with half of the gross earnings. ART. 13. The provinces and towns directly interested in the construction of a line of general service, shall contribute with the State to the subsidy granted, in the proportion and manner prescribed by the law referred to in Article 11. ART. 14. The aid which is to be given the constructing companies, once determined by the Laws of Concession, the concession shall be offered at public auction, under the terms fixed, for three months, and shall be awarded to the highest bidder, with the obligation to pay to the proper party the cost of the plans of the project, which may have served as a basis for the concession; the said cost shall be fixed, before making the public sale, in the cases and in the form determined by the Regulations. ART. 15. In order to be able to bid at the auctions, it must be shown that 1 per cent of the total value of the railroad, according to the approved estimate, has been deposited as a guaranty of the proposals which are submitted. ART. 16. In no case shall the concession titles to lines of general service be issued, until the holder of the concession shows that he has deposited, as a guaranty of his obligations, 5 per cent of the amount of the estimate, if the concession has a subsidy, and 3 per cent if there be none. If the holder of the concession allows fifteen days to pass without making the deposit, the award shall be declared null, with the forfeiture of the bond given, and the concession of the line shall be again offered at auction within the period of forty days. ART. 17. The companies holding concessions of lines enjoying subsidies can not dispose of the amounts deposited as guaranty of the construction of the railroad, until they have totally finished the works which are the object of the concession. In case the line has no subsidy, the guaranty may be returned, when it is proven that there are works finished equivalent to a third of the cost of the works included in the concession. The said completed works shall remain as a guaranty for the fulfillment of the conditions stipulated. |