CO129-525-12 Transfer of Government wireless services to imperial and international communications Ltd 20-3-1930 - 7-1-1931 — Page 38

40

Penalty for breach by

Company of any of its obligations.

Power for Government

to take over

the under

taking in

certain

events.

· 10

-

breach and such further sum as the Governor in Council shall think it not exceeding twenty dollars for every month during which such breach shall continue after due notice thereof has been given by the Governinent to the Company.

42. In the event of any breach by the Company of any of its obligations under this Ordinance, or under any Regulation made thereunder, other than any such brench as is referred to in section 33, the Company shall, without prejudice to the provisions of section 43, forfeit to the Government a penalty, payable to the Treasurer, of 100 dollars per day, for every day after the Company has received from the Director notice of any such broach and has in the opinion of the Governor in Council had a reason- able opportunity of remedying such breach, during which any such breach continues.

43. If the Company shall:-

() fail or neglect to execute and do all such assure anees and things as shall be necessary for taking over the existing telephone undertaking and for performing its obligations under this Ordinance,

Or

(6) go into liquidation (otherwise thun for the pur-

pose of reconstruction), or

(c) cease to carry on business, or

(d) sell its undertaking or any part thereof or assign the benefit of the concession without the consent

in writing of the Governor in Council or if upon

any reference the arbitrators shall find :—

(1) that the system of the Company has coase to be in regular operation for thirty-one consecutive days (except where such cessation shall in the opinion of the Governor in Council have been caused by stress of weather or any other cause of whatsoever nature beyond the Company's control), or

(2) that the Company has neglected to provide and maintain an efficient and continuous service of public telephonic communication (and in particular bas neglected to comply with the provisions of sections 30 and 32 or any of them),

then and in any such event the Government shall issue a notice in writing calling upon the Company to show cause why the concession should not be cancelled forthwith. The Company shall on receipt of such notice satisfy the Gov ernor in Council that it will rectify the default or neglect, failing which the concession may be cancelled by the Governor in Conncil. In the event of any dispute arising under this section the matter shall be referred to arbitra tion as provided for in section 49.

Upon such cancellation the rights powers benefit and privileges of the Company under this Ordinance shall cease and determine forth with and it shall be lawful but not obligatory for the Government (without prejudice to any remedy against the Company for failure to comply with any of the provisions of this Ordinance or of any Regulation made hereunder) at any time within three months after the service of such notice either (a) by notice in writing to require the Company to remove forthwith all works of a like nature to those specified in section 8 (with which notice the Company shall comply as soon as reasonably may be) or (b) on notice in writing to the Company in that behalf immediately to take over and par- chase from the Company the undertaking of the Company.

1

}

11

If the Government shall elect to take over and purchase the Company's undertaking the Company shall be deemed to have sold such undertaking to the Government on the date upon which the Government shall give notice of its intention to take over and purchase the same, and it shall be lawful for the Government forthwith to euter in and upon the premises of the Company wheresover situate aml to exercise all acts of ownership over all exchanges, plant, apparatus, lines and cables and all other property of the Company of whatsoever nature including any con tractual rights or obligations and all books of account or other documents used by the Company in its nudertaking.

Upon any such taking over and purchase and at all times thereafter the Company shall ou demand exeunte und do all such assurances and things as may be reasonably required by the Government for assuring and vesting its undertaking in the Government or as it shall direct.

The undertaking so taken over as aforesaid shall as soon as reasonably possible be paid for by the Government in accordance with the then condition and value thereof and any dispute or difference between the parties as to the amount so to be paid shall be referred to arbitration in accordance with the provisions of section 49.

Upon any such taking over the Government shall not be compelled to purchase any plant, apparatus, machinery or any other property whatsoever of the Company which is then obsolete or unserviceable.

Upon any sneli taking over nothing shall be paid for or allowed in respect of the goodwill of the Company's under- taking or for any loss of estimated profits resultant on such taking over, or for any profits whatever except up to and including the date of such taking over.

The Government shall pay to the Company interest at the rate of eight per cent per annum upon the amount of the purchase money from the date of taking over until the date of payment.

exclusive,

44. The concession is personal to the Company, and Concession the Company shall not, without the previous written is not trans- consent of the Governor in Council, assign, transfer, ferable and is mortgage, charge, lease or otherwise dispose of the conces sion or the benefit thereof or of any part thereof or of its undertaking or any part thereof to any other person or grant any sub-licence in respect of the concession; and The Government shall not during the continuance of the concession permit any person other than the Company to place or maintain telephones or telephone wires or cables within the Colony or the waters thereof, except in the case of the following telephones, namely:-

(a) All telephones whatsoever which may be hond fide in operation at the date of the commencement

of this Ordinance: and

(b) such telephones as may now or hereafter bo constructed or maintained by the Colonial Government or by the Imperial Government in connection with their Colonial and Imperial services and

(c) telephones constructed or maintained by the Easteru Extension Australasia and China Tele- graph Company Limited and the Great Northern Telegraph Company Limited in accordance with the agreement now existing or any modification or renewal thereof and

(7) such telephones as may now or hereafter be in- stalled and maintained by any person solely for the private use of such person in his business.

Provided that it shall be lawful for the Governor in Commeil or such person as he shall authorise in that behalf, at any time during the five years preceding the termination of this coucession, to execute and do any works of a like nature to those specified in section 8 and any other works which the Governor in Council may think necessary or desirable for the purpose of continuing the supply of public telephonic communication after the termi nation of the concession.

41