- An Act to Amend Certain Sections of Act Numbered Twenty-Four Hundred and Seventy-Nine
- Act No. 2577
February 4, 1916
ACT NO. 2577
AN ACT TO AMEND CERTAIN SECTIONS OF ACT NUMBERED TWENTY-FOUR HUNDRED AND SEVENTY-NINE, ENTITLED "THE SUGAR CENTRAL ACT"
SECTION 1. Section three of Act Numbered Twenty-four hundred and seventy-nine is hereby amended to read as follows:
"SEC. 3. The Central Sugar Board shall have the following powers:
"(a) To guarantee to the concern establishing a sugar central the payment of its value and interest from the net proceeds of the sugar manufactured, after deduction of fifty per centum of the gross product, which shall be distributed pro rata among the producers of the cane milled and after the further deduction of the operating expenses.
"(b) To purchase from a corporation or corporations composed of owners of land planted in sugar cane, bonds issued upon the security of the property of said corporation or upon the security of first mortgages upon the land or part of the land of the individual owners who are stockholders in the said corporation, or upon both the securities mentioned: Provided, however, That the base value of the land received as security for the said bonds shall not exceed the value certified by an appraiser who shall be appointed to inspect and appraise the same.
"(c) To make loans secured by first mortgage to a corporation or corporations owning and operating a sugar central or sugar centrals for additions and improvements thereto."
SECTION 2. Section four of said Act Numbered Twenty-four hundred and seventy-nine is hereby amended to read as follows:
"SEC. 4. For the purposes of the next preceding section the Central Sugar Board is hereby authorized
"(a) To enter into negotiations with, receive propositions from, and make contracts on behalf of the corporations taking advantage of the benefits of this Act with constructing firms or concerns engaged in the establishment of sugar centrals.
"(b) To select the points where the centrals shall be established, taking into account the largest number of persons benefited whenever compatible with the business interests of the central.
"(c) To determine the operating capacity of the central to be established.
"(d) To demand that the minimum production of cane necessary for the economic operation of the central be guaranteed.
"(e) To establish rules and conditions under which it will furnish aid to the sugar centrals. THDIaC
"(f) To make proper provision for the training of technical supervisors, employees, and laborers who may take part in the work of a sugar central receiving the benefits of this Act.
"(g) To sell any or all of the bonds purchased or acquired in accordance with the provisions of this Act, and to re-invest the proceeds as herein authorized, and to exercise any other powers necessary for carrying out the purposes specified in this Act."
SECTION 3. Section five of said Act Numbered Twenty-four hundred and seventy-nine is hereby amended to read as follows:
"SEC. 5. Except by permission of the Central Sugar Board, no owner of land or of cane contracted for by a central may, within twenty years from and after the date of the contract, give, sell, alienate, or in any other manner dispose of or engage his production of cane to any person other than the central.
"No proprietor of land under contract with a central may, within twenty years from and after the date of the contract, give, sell, alienate, or in any other manner dispose of or engage his property without the consent of the Central Sugar Board.
"All contracts made by the owner of cane land with a central, by which said owner binds himself to set aside the said land for the cultivation of sugar-cane and to deliver said cane to the central, shall apply to the land during the entire term of the contract and shall be binding upon any and all of the subsequent owners: Provided, That duly certified copies of said contracts shall be filed for registration in the office of the register of deeds of the province in which the land affected, or part thereof, is situate, and shall be registered as provided by the Land Registration Act or by the Mortgage Law, with respect of all the land now covered by such contracts or which may hereafter be registered under any of the said systems.
"And any other agreement, document, or transaction made in violation of this section shall be null and void: Provided, That the provisions of this section shall be applicable only to contracts made with sugar centrals who have taken advantage of the benefits of this Act.
"All applications for aid under this Act addressed to the Central Sugar Board by any individual or corporation shall be under oath and in such form as the Central Sugar Board may prescribe."
SECTION 4. Section seven of said Act Numbered Twenty-four hundred and seventy-nine is hereby amended to read as follows:
"SEC. 7. A sum not to exceed two million pesos of the gold standard fund shall be available for investment by the Insular Treasurer, with the approval of the Governor-General, in accordance with the provisions of this Act: Provided, That the Central Sugar Board shall not purchase bonds of any corporation except under the following terms and conditions, among others: That the amount of bonds issued by the corporation shall not exceed sixty per centum of the value of the property offered as security; that before such purchase is made, such corporation shall have contracts with the owners of not less than one thousand hectares of land suitable for the cultivation of sugar, obligating such owners to cultivate in sugar cane a reasonable area of their holdings and to deliver and sell to the corporation all the sugar cane produced on such land and to convey to the corporation such rights of way as the corporation may deem necessary for roads and railroads connecting the mill with the fields; that the majority of the owners of said lands shall be stockholders in the corporation, and that the corporation shall provide for a sinking fund to be deposited with the Insular Treasurer for the retirement of the bonds; that the payment for the retirement of the bonds shall have preference over any dividends or profits of the stockholders and shall be sufficient for the total extinction of the debt in not exceeding twenty years; but until all bonds issued by such corporation shall be fully paid or money sufficient to pay the same safely deposited for that purpose with the Insular Treasurer, no dividend in excess of ten per centum per annum shall be paid upon the stock of such corporation, and the net earnings over and above said dividend shall be used in additions, betterments, or improvements to the property offered as security or in the redemption of the bonds of such corporation: Provided further, That the Central Sugar Board shall not make any loan except upon first mortgage on the central and the land or part of the land of the corporation, or both, and in a sum not to exceed sixty per centum of the value of the property offered as security, and that the corporation provide for the payment in each year of an annual installment, such annual installments to have the preference over any dividends or profits of the stockholders and to be sufficient for the total extinction of the debt in not exceeding twenty years."
SECTION 5. Section eight of said Act Numbered Twenty-four hundred and seventy-nine is hereby amended to read as follows:
"SEC. 8. Whenever the Insular Treasurer invests funds in accordance with this Act, the sums invested shall draw interest at the rate of at least five per centum per annum. The interest shall be paid annually, together with the proportion of the principal due; but the first two payments may be made on the first day of July of the year next following the one in which the central began operation: Provided, That with the approval of the Governor-General, all interest accruing on loans made or bonds purchased shall be available for re-investment for the purposes of this Act, any provision of law to the contrary notwithstanding. aHATDI
"Any provision of this Act to the contrary notwithstanding, the Insular Treasurer may at any time receive payment of all or part of the indebtedness to the Government, and in case any payment is made, a proportional reduction shall be made in the interest."
SECTION 6. This Act shall take effect on its passage.
Enacted, February 4, 1916.