TELEPHONE ORDINANCE, 1925

TELEPHONE ORDINANCE, 1925

No. 9 of 1925.

An Ordinance for the establishment of an improved telephone
service in the Colony.

[26th June, 1925.]

1. This Ordinance may be cited as the Telephone Ordinance,
1925.

2. In this Ordinance-,
Arbitrators ' includes an umpire appointed by the
arbitrators;

As amended by No. 9 of 1930 [15.8.30].





'Company' means 'Hong Kong Telephone Company
Limited ';

' Concession ' means sole right to supply telephonic corn-
munication which is granted to the company by this Ordinance;

Director ' means the Director of Public Works or his
duly authorized representative;

Person includes any person, firm, company or corpora-
tion

Peak District' includes all that area in the Island of
Hong Kong situated above the 700-feet contour and to the west
of a line drawn in a north and south direction through Middle
or Cemetery Gap, including the hills known as Mount Cameron,
Mount Gough, Mount Kellett and Victoria Peak;

' Street ' includes any square, court or alley, highway,
lane, road, or passage whether a, thoroughfare or not

' Subscriber ' means subscriber to a telephone of the com-
pany;

Undertaking ' includes all works, goods, trunk line
apparatus and cables and property of whatever nature belonging
to the company.

3. Subject to the provisions hereinafter contained the Gov-
ernment grants to the company the sole right to supply and
operate public telephonic communication within the Colony,
including trunk line telephonic communication therein for com-
municating with places outside the Colony, for the period of fifty
years commencing on and from the, 1st day of July, 1925. Such
trunk line telephonic communication shall include a right to
establish and maintain intercommunication with any commercial
radio telephony station outside the Colony lbut this right shall
be limited to the period during which intercommunication of the
same or like kind or nature is not provided through or by
some undertaking or service carried on or authorized by the
Government of the Colony or by His Majesty's Government in
the United Kingdom.

As amended by No. 14 of 1935 [22.3.35] and Law Rev. Ord., 1939,
Supp. Sched.





4. The company shall be and remain registered under the
Companies Ordinance, 1932, and its memorandum and first
articles of association shall be approved by the Governor *in
Council and neither its memorandum nor any of its articles of
association shall, at any time, be amended or added to in any
way, except with the previous consent in writing of the Governor
in Council.

-5. The directors of the company shall be not less than four
and not more than eight in number, and all the directors shall
be bona fide resident in Hong.Kong.

6.-(1) The capital of the company shall be $5,000,000
divided into 500,000 shares of $10 each, and the company shall
not, except with the previous consent of the Legislative Council,
make any further issue of shares or otherwise save as in, this
Ordinance provided in any manner whatever increase the moneys
employed in the company's undertaking beyond the sum of
$5,000,000.

(2) The company shall not issue any debentures or borrow
on mortgage except with the consent of the Legislative Council.

7. The company shall pay to the Accountant-General, as a
royalty for the concession, on the 1st day of July in every year
during the aforesaid period of fifty years, commencing on the
1st day of July, 1026,. the sum Of $4 in respect of each direct
exchange line telephone which has been used and paid for during
the whole previous twelve months by a subscriber. In cases,
where direct exchange line telephones have been used and paid
for by subscribers for periods of less than twelve months prior
to the ist day of July in each year, the amount of royalty to be
paid by the company shall be $1 for each direct exchange line
telephone for each period of three months or less during which
such telephone has been used and paid for by a subscriber.

8. Subject to the consent in writing of the Director and
subject also to the restrictions and,provisions hereinafter con-
tained and to such further conditions'as the Director may in any
particular*case impose or 'prescribe, the company may execute
works as follows-

As amended by Law Rev. Ord., 1939, Supp. Sched.





(a) it may Place and maintain telephone lines and cables
and ducts under any public street and may alter or remove the
same

(b) it may place and maintain telephone lines and cables
over, along or across any public street and may place and main-
tain posts in or upon any public street and may alter or remove
the same;

(c) it may, for the purposes aforesaid, open or break up
any public street

(d) it may place and maintain telephone lines and cables
and posts under, in, upon, over, along or across any unleased
Crown land or any estuary or branch of the sea or the shore or
bed of any tidal waters within the boundaries of the Colony (but
so that the same shall not hinder or interfere with navigation)
and may alter or remove the same;

(e) it may place and maintain telephone lihes and cables
under, in, upon, over, along or across railway tracks, tunnels
and other railway property belonging to the Government (but
so that the same shall not hinder or interfere with the railway
traffic) and may alter or remove the same:

Provided always that the company shall not be deemed to
acquire any right other than that of user only in the soil of
any street or unleased Crown land or any 'other place under,
in, upon, over, along or across which the company places or
maintains any works.

9. In the exercise of the authority conferred unnder section 8
the company shall do as little damage as may be, and shall make
full and reasonable compensation for all damage caused by reason
of or in consequence of the exercise of such authority.

10. The Government agrees to provide to the company, at
the company's expense, sites, to be approved by the Governor
in Council, for submarine cable terminal houses at suitable
points within the Colony and suitable sites', to be approved 'by
the Governor in Council, for the company's submarine cable
storage tanks.

The Government shall also provide, free of cost to the com-
pany, a suitable reserve or suitable reserves, in, which vessels





and craft may not anchor, for submarine cables of the company, such
reserve or reserves to be approved by the Governor in Council.

11. The depth, course and position at and in which any telephone lines
or cables, posts, inspection pits or any other Works are to be placed shall
be determined by the Director.

12. Every wire placed or maintained by the company, either overhead or
underground, shall, subject to the provisions of section 25, be on the
principle of a metallic return otherwise called the double wire system.

13. Every, underground 'tube, casing, wire or cable of the company,
hereafter placed or laid or relaid by the company, shall be so marked by the
company throughout its course as to distinguish it from the tubes,, casings,
pipes, wires or cables of every other person.

14. Every post of the company shall be of a pattern, design and material
approved by the Director.

15. No wire, stay, bracket, insulator or other thing whatsoever shall be
attached to any Government building except with the previous consent in
writing of the Director, or to any tree , except with the previous consent in
writing of the Superintendent of the Botanical and Forestry Department, and
the company shall not without the likeconsent of the said Superintendent lop,
top or fell any tree or shrub.

16.-(1) The company shall paint or otherwise legibly mark a
distinguishing mark on all its posts, and shall at all times, maintain the marks
in a legible condition.

(2) The company shall prepare and shall once in every year cause to
be duly corrected plans of its area of operation showing the lines, street
distributing boxes, posts and other works for the time being in position.

(3) Every such plan shall be drawn to such scale as the Director may
require: Provided that no particular scale shall be required unless maps of
the locality on that scale are for the time being available to the public or to
the company.

As amended by Law Rev.. Ord, 1939, Supp. Sched.





(4) Every plan so made or corrected or a copy thereof
marked with the date when it was so made or corrected shall be
kept by the company at its principal office or place of business
within the area of operation and shall at all reasonable times be
open to the inspection of any person.

(5) The company shall if required by the Director supply
to the Director free of charge a copy of every such plan, duly
coitrected so as to agree with the original kept at the principal
office or place of business of the company.

17. Every overhead wire or cable in any main thoroughfare
shall be carried at a height of not less than eighteen feet above
the ground except with the previous consent in writing of the
Director.

18. Every telephone line shall be maintained in a safe con-
dition both electrically and mechanically.

19. The insulation resistance of, the company's apparatus
shall not fall below the 'following standards as between con-,
ductors or between conductors and earth-

Main underground cables 500 megohms per mile.,
Cast iron distribution boxes
fitted - with vacuum dis-
charges and glass fuses 10 megohms.
Lead sheathed leading-in
cable.......................................... 100 megohms per mile.
Coil windings and wires of the
telephone set ..............10 megohms.
Subscribers' circuits ......200,000 megohms.

Exchange switchboard circuits 2 megolims.

The Governor in Council may however, by order published
in the Gazette, direct that any of the provisions of this section
be relaxed in any particular instance to such extent, and subject
to such conditions (if any) as he may think reasonable and
proper in all the circumstances.

As amended by Law' Rev, Ord, 1939, Supp. Sched.





20. All circuits and apparatus shall be so arranged that there
shall be -no danger of any part thereof becoming accidentally
chdrged to any pressure beyond the limits of pressure for which
it is intended.


21. Whenever the company leads a telephone or aerial line
across or in proximity to any telephone or telegraph wire or
aerial line belonging to any person the company shall ensure
that its telephone or aerial line is so protected as to guard against
the possibility of its coming into contact with the telephone or
telegraph wire or aerial line of.any such person.

22. After the company has opened or broken up any public
street it shall be under the following further obligations-

(a) it shall with all convenient speed complete the work on'
account of which it has opened or broken up the same, and fill
in the ground and remove all rubbish occasioned by its work;

(b) the surface of such street shall be made good by the
Director *and the company shall pay on demand to the
Accountant General such, sum as the Director may certify to be
the cost of such making good;

(c) it shall in the meantime cause the place where such
street is opened or broken up to be fenced and watched and to
be properly lighted at night;

(d) it shall pay to the Accountant-General any such sum
as may be certified by the Director to be the reasonable cost of
keeping such portion of the street in repair for six months after
the same is restored so far as such cost may be applicable to
and increased by such opening or breaking up:

Provided always that, if the . company fails, within such
period as the Director considers reasonable in the circumstances,
to complete the work on account whereof it has opened or broken
up such street and. to fill in the ground, it shall be lawful for
the Director, forthwith and without notice to the company, to
fill in the ground and remove all rubbish, and the 'Cost as certified
by the Director of any work executed by the Director under the
terms of this proviso shall be paid by the company on demand
to the Accountant-General.

As amended by Law Rev. Ord., 1939, Supp. Sched.





23. When the company opens or breaks up any street it
shall not remove, displace or interfere with any gas or water
pipe or main or any drain or sewer or any tube, casing, wire
or cable for the carriage of electrical current except with the
previous consent of the owner thereof: -

Provided that when any such owner refuses to give any such
consent as aforesaid, it shall be lawful for the'company to appeal
from such refusal to the Director, who shall, if he considers such
refusal to have been unreasonable, give a certificate under his
hand to the company to that effect, and upon receipt of such
certificate it shall be lawful for the company to act in every
respect as if the consent of such owner had been previously
obtained.

24. The company shall not have any claim in damages or
otherwise against the Government in respect of any disturbance
or interruption of any part of the company's undertaking, lines
or Works occasioned by any works on or excavation or dis-
turbance of streets or lands which the Governor in Council may
think it necessary or desirable to make for the purpose of
altering the level of any lands or the. gradient or level of ori
repairing or constructing any street, path or land or laying or
renewing drain *pipes or sewers, gas or water pipes or mains or
any tube, casing, wire or cable for the carriage of electrical
current or inspecting the same or for any other lawful purpose,
'whether of a like nature to the purposes aforesaid or not, or in
respect of any disturbance' or interruption occasioned by any
person using or making any works upon. or excayation or
disturbance of any streets or lands.

25. The company shall take all reasonable precautions to
prevent lightning discharges from entering any buildings in
which its telephones are installed or to which any wire, bracket
or other apparatus of the company is attached.

26. The company shall be answerable for and shall indem-
nify the Government against all claims on account,of accident,
damage or injury to property or to any person arising through
its act, neglect or default, or through the act, neglect or default
of its servants or of any contractor employed by it, or through

As amended by Law Rev. Ord., 1939, Supp. Sched.





or in consequence of any of the company's works under the
concession, or through the construction, maintenance,. repair or
operation of the company's telephone system, or through the
downfall of wires, cables, insulators, brackets, posts or any part
of its lines by reason of storm (if the damage caused by such
storm is due to the company's negligence) or any other cause
of whatever nature.or through the company's system interfering
with, injuring or impairing the efficiency of the undertaking of
any other person.

27. The company shall, within a reasonable tirne after
receipt of notice in writing from the Director, at the sole cost
and charges, of the company and in such manner as the Director
shall prescribe-

(a') alter the course, depth and position or the mode of
attachment of any of the company's lines or cables and the
position of any post or inspection pit or other works of the
company : save that the company shall not be required to alter
its ducts or main cables unless in the opinion of the Governor
in Council such alteration is necessary;

cause any line or cable to be protected, insulated-or
inclosed in order that the same may not affect, endanger or
interfere with any other telegraph line or cable or any line or
cable for the carriage of electrical current;

(c) where any such work as aforesaid necessitates the open-
ing or breaking up of any street, make good the surface thereof.

28. The'Director may, by notice in writing to the company,
require that all or any overhead lines shall be placed in cables
and that all or any overhead lines or cables shall be placed
underground, and upon receipt of notice in that behalf the
company shall, at its own cost and charges, within a reasonable
period not exceeding two years from the date of such notice,
carry out the works required by such notice:

Provided that the company shall only be required to place
its lines underground in those parts of its system in which twenty
or more wires can in the opinion of the Director be conveniently
grouped together, and the opinion of the Director in this respect
shall be conclusive and binding on.the company.

As amended hy Law Rev. Ord, 1939, Supp. Sebed.





29. The company shall at its own cost and charges place
underground where practicable its' wires or cables passing across
or along any street in the City of Victoria.

. 30. The company shall maintain and operate the public
telephone service in the Colony. The company shall also at all
times during the continuance of the concession provide and
maintain to the satisfaction of the Director a good, efficient
and continuous service of public telephonic communication with
modern appliances including all reasonable modern inventions.
The company shall likewise provide buildings for its plant and
offices, and shall keep in a good and sufficient state 'of repair all
lines, cables, posts, attachments, plant and appliances necessary
for the provision and maintenance of such service.

31.-(1) The Company shall establish at its own cost, and
keep in proper. condition such number of testing circuits as the
Director may reasonably require for the purpose of testing the
insulation resistance of the conductors, and shall supply and
keep in proper condition all such instruments.for testing as the
Director may approve, and shall supply energy to every testing
station for the purpose of testing.

(2) The company shall afford to the Director all facilities
for inspection and testing of its works and for the reading,
testing and inspection of its 'testing instruments, and may, 'on
each occasion of the testing of its works or the reading, testing or
inspection of any testing instruments, be represented by an agent
who may be present but shall not interfere with the reading,
testing or inspection.

(3) On the occasion of the testing of any works of the
company by the Director reasonable previous notice in writing
.thereof shall be given to the company, and the testing shall be
carried out at such suitable hours as in the opinion of the
Director will least interferewith the telephone service and in
such manner as the Director may think fit, but except under the
provisions of a written order made in each case in that behalf
by the Director no person shall be entitled to have access to or
interfere with the works of the company at any points other than
those at which the company itself has access to the same:

As amended by Law Rev. Ord., 1939, Supp. Sched.





Provided that the company shall not be held responsible
for any interruption of or. irregularity in tile telephone service
which may be occasioned by or required by the Director for the
purpose of any such testing as aforesaid:

Provided also that the testing shall not be made in regard
to any particular, portion of the works oftener than once in any
one year except in pursuance of a written order made in each
case in that behalf by the Director.

32. The company shall provide and equip to the satisfac-
-tion of the Director, in reinforced concrete and brick or similar
fire-resisting material, in locations suitable for the purpose at
Victoria, the Peak District, in the neighbourhood of Quarry
Bay, at Kowloon, New Kowloon and Taipo, and shall maintain
and operate, suitable and adequate telephone exchanges, capable
of expansion to meet the following requirements-

in the City of Victoria-10,000 subscribers;
in the Peak District-500 subscribers;

in the neighbourhood of Quarry Bay-1,000 subscribers;
in Kowloon-10,000 subscribers;

in New Kowloon-1,000 subscribers;
in Taipo-500 subscribers,

and the company shall from time to time furnish such exchanges
with all such fittings and apparatus as may be necessary to
meet the requirements of such respective areas.

The company shall also, within such period of'time as the
Governor in Council may decide to be reasonable and after
receipt of notice in that behalf from the Director, provide and
equip in like manner such further exchanges as the Director
may from time to time during the continuance of the concession
by notice in writing require, but such further exchanges need
not exceed in number two in that part of the Island of Hong
Kong outside the boundaries 'Of the City of Victoria and four
in the. New Territories. Each of such last mentioned exchanges
shall be adequate for the requirements of the area concerned
and shall be capable of such expansion as may appear to the
Governor, in Council to be reasonably necessary, and shall be

As amended by Law Rev. Ord., 1939, Supp. Sched.





furnished from time to time by the company.with all such fittings
and apparatus as may be necessary for the requirements of the
area concerned.

33. The company shall, within a reasonable time after the
receipt of a request in writing in that behalf from any person,
and upon the payment in advance, if demanded, of the com-
pany's usual charges and of any other moneys due under this
Ordinance from such person to the company, and the signature,
if required, of the company's usual form of agreement for an
exchange line, instal a telephone in such building within the
Colony as the requesting party may require, and shall connect
the same with the nearest exchange and accord to the requesting
person a good and continuous telephone service for so long as
that person continues to pay the company's usual charges on
the due date.

34. Whenever any system of wireless telephony is estab-
lished in the Colony the company shall, if so requested by the
Government, permit its system of telephony to be connected
therewith on such terms as the Governor in Council, after dis-
cussion with the company, considers reasonable.

35. The company shall be entitled to charge its subscribers
rates of subscription which, shall not exceed those specified in
the Schedule or such revised rates as are hereinafter, provided
for. Such subscription shall include the cost of erection and
fitting up of the lines and the installation of all necessary
receivers, transmitters, switches or other appliances and the con-
nexion thereof with the nearest exchange and also all necessary
repairs and renewals requisite for the maintenance of an efficient
and continuous service, with the exception of damage not
occasioned by fair wear and tear to telephonic apparatus inside
a subscriber's premises.

36. In the event of any subscriber having changed or being
about to change his address and requiring his telephone or line
to be removed from one place, office or address to another or
requiring the installation of a line and apparatus of a similar
type at his new address then upon his notifying the company of

As amended by No. 9 of 1930 [15.8.30].
As amended by Law Rev. Ord., 1939, Supp. Sched.





such his desire and upon payment of the charges in respect
thereofIset out in the Schedule the company shall, subject to
the provisions of section 33, carry out such removal or instal-
lation as aforesaid. In addition to the charges mentioned in this
section and the rates of subscription mentioned in section 35 the
company shall be entitled to. charge its subscribers In respect of
other services mentioned in the Schedule such charges as are
therein set out.

37. No subscriber shall be entitled to make trunk calls from
his telephone unless he has first notified the company in writing
of such his desire and unless he has deposited and kept deposited
such sum not exceeding twenty dollars as the company may
demand of him as security for charges in respect of such trunk
calls.

38.-(1) For the purposes of section 39, the net profits of
the company shall be the gross takings of the company, includ-
ing the takings in respect of trunk line services ', less the moneys
appropriated for the foliowing purposes, namely-

(i) interest on moneys borrowed by the company, includ-
ing interest on debenturesi
(ii) the sums payable yearly to the Accountant-General in
accordance* with section 7
(iii) working costs;
(iv) reasonable management, expenses;

(v) superannuation and provident funds;
(vi) maintenance and removal of works, apparatus and
other property of the company;
(vii) depreciation of buildings, plant, apparatus and other
property of the company, and

(viii) the appropriation of authorized sums io reserve.

(2) The amount to be written off or provided annually for
depreciation shall not exceed ten per cent. of the cost of the
company's plant and equipment other than land and buildings.
The deprec iation on land and buildings shall be such a sum or

As amended by No. 9 of 1930 [15.8.30].
As amended by No. 27 of 1933 [1.1.34].
As amended by Law Rev. Ord., 1939, Supp. Sched.





sums as shall be fixed by an architect approved by the Director
and the company.

The company shall be entitled. to make. an nual appro-
priations to reserve.' No such annual appropriation shall exceed
the sum of one hundred and seventy thousand four hundred and'
eighty-two dollars. The company shall have the power to deal
with the reserve in such manner as, it may think fit, save that it
shall not capitalize the same without the previous consent of, the
Legislative Council.

(4) The cost of making provision for the maintenance of
an efficient service shall not include any sums expended on works
where such expenditure is in the nature of capital outlay.

(5) Notwithstanding that in any year or other, accounting
period no allowance or a less allowance than that hereinbefore
authorized may have been made for depreciation or appropriation
to reserve, it shall not be lawful for'the.company to make in any
succeeding year or accounting period any. greater allowance for
those purposes than that hereinbefore authorized :
Provided always that nothing in this section shall be deemed
to authorize the, inclusion of accounts in respect of any trunk
line service opened by the company without the written sanction
of the Governor in Council or in respect of any trunk fine service
which in the opinion of thd Governor in Council is not being
managed, worked or conducted satisfactorily.

39. The net profits of the company as defined in section 38
shall be dealt with in the following manner, namely-
(a) in payment of a dividend on the paid-up capital for the
time being of the company which, save as provided in paragraph
shall not exceed twelve per cent. per annum;

(b) if the net profits be such that a larger dividend than
twelve per cent. per annum on the paid-up capital for the time
being of the company could be paid, the sum representing an
amount not exceeding a further six per cent. per annum upon
the paid-up capital for the time being of the company shall as to
one-half thereof be paid by way of increase of dividends to the
shareholders of the company and as to the balance thereof be set
aside for the benefit of subscribers by way of reduction of the
rates set out in the Schedule, or such revised rates as are herein-

As amended by Law Rev. Ord., 1939, Supp. Sched.





after provided for, and any further profits in excess of the said
further six per cent per annum shall be applied by the company
solely for the reduction of the rates. payable by subscribers, so
that the maximum dividend payable to the shareholders shall in
no circumstances whatever exceed fifteen per per annum
upon such paid-up capital as aforesaid;

(c) the rate of dividend shall not be increased by the pay-
ment of any bonus or by any other, colourable means-of increasing
the dividend, nor' shall 'any other'.shares or class of shares bearing
or capable of bearing higher rate of. interest be substituted;

(d )Any dispute,which may arise under section 38 or under
this section as to the amount of the net profits of the. company
or as to their dtsposal or division or as to their proper applica-
tion for the reduction of rates payable by subscribers shall be.
referred to arbitration under the provisionsof section 52.

40. It shall be lawful for. either the Government or the com-
pany from time to time to require from the other of them the
revision of the rates of subscription and other charges set forth
in the Schedule or for the time being in force: Provided that
there shall be a minimum interval of two years between every
revision of rates. Three months' previous notice in writing of
such requirement shall be given by the party requiring revision
to the other party and thereupon, and in default of agreement
between the pariies with regard to such revision, the matter
shall be preferred to arbitration in accordance with the provisions
of section 52. Either of the parties shall be entitled to place
before the arbitrators any evidence which such party thinks fit
relative to the subject of such application, and thi arbitrators
shall be entitled to require the company to produce such. books
as may be necessary and to require an investigation of and
report upon the company's affairs to be made and prepared, at
the cost of such party as may be decided by the arbitrators, by
such independent auditor as the arbitrators may think fit.

If the arbitrators are of opinion that the then existing
charges for subscriptions are insufficient to make provision for
the maintenance of an efficient service and for the payment for
the tinne being of a dividend of eight per cent. per annum on

As amended by No. 9 of 1930 [15.8.30] and Law Rev. Ord., 1939,
Supp. Sehed.





the paid-up capital for the time being of the company, the
arbitrators shall require and the Government shall permit such
charges to be increased to such sum as the arbitrators may
consider adequate to provide for such service and dividend as
aforesaid.

If however the arbitrators are of the opinion that the then
existing charges exceed the amount required to provide for the
time being for such service and a maximum dividend of fifteen
per cent. per annum on the paid-up capital for the time being
of the company, they shall require the company to reduce such
charges to such sum as the arbitrators consider adequate for the
provision of such service and payment of such dividend as
aforesaid, and the company shall forthwith reduce such charges
accordingly.

41. All lines, branch lines and extensions required by the
Government to be supplied by the company to the Government
shall be paid for in accordance with the rates of subscription
specified in the Schedule or such revised rates as are provided
for in section 40.

42.-(1) The company shall keep true and particular
accounts of and concerning all matters connected with the con-
cession and shall on the first day of July in every year deliver
to the Accountant-General a statement in writing, showing the
number of subscribers connected with each exchange and the
number of persons who have requested to be supplied with lines
during the preceding twelve months, and.also the names and
addresses of all persons who have requested to be supplied with
lines during the preceding six months and with whose request
the company has not complied. The company shall permit the
Accountant-General to inspect and take copies of or extracts from
the books of account, receipts, papers and documents in the
possession or under the control of the company and relating
wholly or in part to the subject-matter of this Ordinance. The
company shall cause all its books to be kept in. Hong Kong at
its registered office.

(2) The annual statement of accounts of the undertaking
shall be examined and audited by such person or persons as the
Governor in Council. may approve in this behalf.

1. As amended by Law Rev. Ord., 1939, Supp. Sched.





43. The company shall at all times during the continuance
of the concession permit the Director or his agent authorized
in writing in that behalf to enter the premises of the company
at all reasonable times and to inspect and take account of all
.plant, fittings, apparatus or other material thereon, and shall
upon written demand furnish to the Director all such particulars,
information and accounts relative to the conduct of the com-
pany's business and such other evidence as he may require of
the due performance by the company of its obligations under
this Ordinance.

44. If upon any reference to arbitration it is held that the
company has committed any breach of section 31 the arbitrators
shall require the company to pay to the Accountant-General such
sum as the Governor in Council thinks fit not exceeding one
hundred dollars for every such breach and such further sum as
the Governor in Council thinks fit not exceeding twenty dollars
for every month during which such breach continues after due
notice thereof has been given by the Government to the
company.

45. 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 breach as is referred
to in section 33, the company shall, without prejudice to the
provisions of section 46, forfeit to the Government a penalty,
payable to the Accountant-General, of one hundred dollars per
day for every day during which such breach continues after the
company has received from the Director notice of any such
breach and has in the opinion of the Governor in Council had a
reasonable opportunity of reiiiedying the same.

46. If the company-

(a) fails or neglects to exectite and do all such assurances
and things as are necessary for performing its obligations under
this Ordinance; or

(b) goes into. liquidation (otherwise than for the purpose
of reconstruction); or

(c) ceases to carry on business; or

As amended by Law Rev. Ord., 1939, Supp. Sched.





(d) sells its undertaking or any part thereof or assigns the
benefit of the concession without the consent in writing of the
Governor in Council or if upon anv reference the arbitrators
find-

(i) that the system of the company has ceased to be in
regular operation for thirty-one consecutive days (except where
such cessation has in the opinion of the Governor in Council
been caused bv stress of weather or any other cause whatsoever
beyond the company's control), or

(ii) that the company has neglected to provide and main-
tain an efficient and continuous service of public telephonic
communication (and in particular has neglected to comply with
the provisions of sections 3o 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 Governor in Council
that it will rectify the default ' or neglect, failing which the
concession may be cancelled by the Governor in Council. In
the event of any dispute arising under this section the matter
shall be referred to arbitration as Provided for in section 52.

Upon such cancellation the rights, powers, benefit and
privileges of the company tinder this Ordinance shall cease and
determine forthwith 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 thereunder) 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 reason-
ably may be); or

(b) on notice in writing to the company in that behalf
immediately to take over and purchase from the company the
undertaking of the company.

If the Government elects to take over and purchase the com-
pany's undertaking the company shall be deemed to have. sold.
such undertaking to the Government on, the date upon which






the Government gives notice of its intention to take over and
purchas e the same, and it shall be lawful for the Government
forthwith to enterin and upon the premises of the company
wheresoever situate and 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
contractual rights or obligations and all books of account or
other documents used by the company in its undertaking.

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

The undertaking so taken over as aforesaid shall as soon as
reasonably possible be paid for by the Government in. accord-
ance 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 52.

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

Upon any such taking over nothing shall be paid for or
allowed in.respect of the goodwill of the company's undertaking
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.

47. The concession is personal to the company, and the
company shall not, without the previous written consent of the
Governor in Council, assign, transfer, mortgage, charge, lease or
otherwise dispose of the concession or the benefit thereof or of

As amended by No. 9 of, 1930 [15.8.30] and Law Rev. Ord, 1939,
Supp. Sched.





any part thereof or of its undertaking or any part thereof to
any other person or grant any sub-licence in respebt of the con-
cession; and the Government shall not during the continuance
of the concession permit any person other than the company to
place or maintain telephone. lines or telephone wires: or cables
within the Colony or the waters thereof, except in the case of the
following telephone lines, namely-

(a) all telephone lines whatsoever which were bona^ fide in operation
on the 26th day of,June, 1925 ; and

(b) such telephone lines as may be constructed or maintained by the
Colonial Government or by the Imperial Government in connexion with their
Colonial and Imperial services; and

(c) telephone lines constructed or, maintained by 'Cable and Wireless,
Limited, and the Great Northern Telegraph Company, Limited, in accordance
with their agreements with or any licence from the Colonial or Imperial
Governments or any modification or renewal thereof; and

(d) such telephone lines as may be installed 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 Council
or such person as he may authorize in that behalf, at any time
during the five years preceding the termination of this conces-
sion, 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
continuin- the supply of public telephonic communication after
the termination of the concession.

48. The company shall during the whole term of the concession carry
on its operations and use every endeavour to the company, its system as
though the concession were perpetual.

49.-(1) It shall be lawful but not obligatory for the Government by
notice in writing to the company, given not less than five years previous to
the date of the termination of the concession to require the company to
continue the supply of telephonic communication in like manner and upon
like terms

As arnexided by Law Rev. Ord,, 1939, Supp. Sched.





as in this Ordinance and in any regulation, made thereunder provided (and
particularly with the use of the most modern apparatus suitable for local '
conditions and climate) for a further period of twenty-five years and the
company shall, within six months of the date of such notice, inform the
Government in writing whether it is willing to continue such supply. If the
company so signifies its willingness to continue such supply then then
supply shall be.continued by the company for the further term of twenty-
five. years from the expiration of the concession in like rn.Lnner and upon
like terms as aforesaid save so far as such terms may be varied by mutual
agreement between the parties.

(2) If the company fails or neglects to inform the Government within the
prescribed period of its willingness to continue such supply, or declines
within such period to continue such supply in like manner and upon like
terms as aforesaid, then it shall be lawful for the Government, upon giving
the company six months previous notice in writing, to take over and
purchase from the company, on the expiration of the concession, the whole
or such part as the Governor in Council may think, fit of. the undertaking of
the company and upon, such taking over and purchase the terms of section
46 shall apply in all respects as if such taking over had been effected under
that section.

(3) Notwithstanding anything in this section it shall be lawful for the
Government, on giving to the company six months' notice in writing in that
behalf and without requiring the company to continue the supply under sub-
section (1), to take over and purchase from the company on the expiration of
the concession all or such part of the undertaking as the Governor in Council
thinks fit and all property of whatever kind used by the company in its
undertaking and upon such taking over and purchase the terms of section
46 shall apply in all respects as if such taking over and purchase had been
effected under that section.

50. Upon any taking over and purchase of the company's undertaking
by the Government the price to be paid by the Government shall be
determined by arbitration if the same cannot be agreed upon by the parties,
and due regard shall be

As amended by Law Rev. Ord., 1939, Supp. Sched.





had to hnd allowance made for the then value of land and build-
ings and to the then condition and value of plant, apparatus and
material, and compensation shall be allowed td the company
in respect of spare plant provided for the reasonably anticipated
future requirements of the undertaking.

51. if,upon the expiration of the concession. no arrange-
ments are made for the continuance of supply by the company
or if the Government does not elect to'take over and purchasc
the company's undertaking under the foregoing provisions in
that behalf, the Government may, on the expiration of the con-
cession, require the company to remove and the company shall
as soon as reasonably may be, and at its own cost, remove all
work's erected or made by the company in pursuance of this
Ordinance, and the company shall immediately upon such
removal make good all damage which may be done in effecting
such removal and make full compensation for all damage done
in like manner as if such, damage had been done in the exercise
of the authority contained in section 8.

52. Any claim under any of the provisions of this.Ordinance
other than section 45 by the Government or by any person
against any person'or the Government in respect of any matter
arising out of this Ordinance or any regulation made there-
under, and any dispute, difference, doubt or question which may
,arise touching the carrying out or the construction of any of the
provisions of this Ordinance or of any such regulation or as
to any matter in any way connected with or arising out of this
Ordinance or of any such regulation or the operation thereof or
the obligations, rights, duties or liabilities of the Government
or of any person in connexion with or arising out of the same,
shall be referred to arbitration, in accordance with the provisions
of the Code of Civil Procedure in the same way as if all the
parties concerned in any such claim, dispute, difference, doubt
or question had entered into a written agreement with one
another to submit the same to the arbitration of two arbitrators
in this Colony. '

53. Any notice, direction, request or order, required or
authorized by this Ordinance to be given to the company, may
be served by prepaid registered letter sent through the post to

As amended by Law Rev, Ord., 1939, 'Supp. Sched.





the last known place of business, . of the, company in, the'Colony,
and the same shall operate. And be deemed to. have been served.
at the expiration'of twerity-four hours from the time of being
put into, the Post Office, and proof that the letter was properly
addressed,' registered and posted shall be., sufficient evidence of
service.

54. Any notice, direction, request or order required or
authorized to be given by the Government may be signed by or
on behalf of the Colonial Secretary.

Nothing in this Ordinance shall relieve the com-
pany or any other person claiming any right theretindier from
being subject to any restrictions, regulations, provisions or
penalties which may hereafter be made or imposed by any Act
of the Imperial Parliament made applicable to the Colony or any
Ordinance, regulations or by-laws for the time being in force
in ' the Colony, and the company shall conform to the technical
instructions contained in the Post Office, London, Engineering
Department Handbooks XIII, and XIV.(Part I and Part II),
and IV in relation to the construction of aerial lines on roads
and railways, the construction of underground telegraph and
telephone lines and maintenance testing, so far as the same may
be capable of being applied to local conditions, and so far as
the same are not contrary to the provi sions of this Ordinance,
as if the same had been incorporated in and had formed part of
this Ordinance.

(2) 'Nothing in this Ordinance shall be deemed. to make it
obligatory for the Government to take over or purchase any
portion of the undertaking of the company situate outside the
Colony.

(3) Nothing in this Ordinance shall be construed as a grant
by the Government to the company of any, right, interest,
benefit, privilege or franchise outside the Colony, or as entitling
the company to make any claim whatsoever against the Govern-
ment in respect of any part of its undertaking outside the Colony.

56.-(1) The Governor in Council may make regulations
for the carrying out of the provisions of this Ordinance.

As amended by No. 9 of 1930 [15.8.30].
As amended by Law Rev. Ord., 1939, Supp. Sched.





(2) The company may from time to time, subject to the
approval of the Governor in Council,. make by-laws for the
carrying out of this Ordinance hnd.a breach of any such by-law
shall be punishable on summary conviction by a fine not
exceeding fifty -dollars.

57. Nothing in, this Ordinance shall affect or be deemed
to -affect the rights of His Majesty the King His Heirs or
Successors, or of any bodies politic or corporate', or other persons
except such as are mentioned in this Ordinance and those
claiming by, from or under them.

SCHEDULE. [ss. 35, 36, 39, 40.]

A. The following annual rates (payable quarterly in advance)
shall be paid by subscribers-

(i) $117 per exchange line within-

(a) Victoria and Kowloon, as defined by the Interpretation Ordin-
ance, 1911, and

(6) within the Peak District, as defined by the, Peak: District
(Residence) Ordinance, 19118, but substituting '700
feet ' for' 788 feet.'

(ii) $117 per exchange line within a radius of. one mile from any
exchange that may hereafter be opened outside the. areas referred to
in (i).

(iii) An additional charge of $50 per mile or part of . a mile
measured outwards from the nearest point of the boundary' of the
areas referred to in (i) and (ii).

(iv) $1 per indicator on a private branch exchange switchboard.

(v) $81 per power circuit to a private branch exchange switch-.
board.

(vi) $6 per single switch.

(vii) $30 per internal extension.

As amended by No. 9 of 1930 [15.8.30].
As, amended by Law Rev. Ord., 1939, Supp. Sched.





(viii) $40 per external extension of 50 yards.
(xi) $50 ' ' 100 '
(x) $60 200
(xi) $70 300
(Xii) $80 400
(Xiii) $90 600
(Xiv) $100 1 mile.
(xv) $140 1.5 miles.
(xvi.) $180 2
(xvii) $200 2.5
(xviii) $ 220 3
(xix) $240 3.5
(xx) $250 4

(xxi)$6 per extension bell, small.
(xxii) $12 ' ' large.
(xxiii) $12 per indicator and bell.

(xxiv) $12 per portable telephone for ship's use.
(xxv) $6 per watertight plug and socket.

(XXvi) For the provision and installation of every hand micro-tele-
phone-$12.00 per telephone.
Any subscriber requiring a hand micro-telephone to be installed
in a position different from that of his former instrument shall in
addition pay for such change of position according to the scale of
removal charaes in this Schedule.
(xx vii) For the provision and installation of every additional auto-
matic dial-$6.00 pet. dial.

(xxviii) For other services or apparatus of the like nature-at such
annual rates as the Governor in Council may approve.

B. The following charges shall he paid by subscribers for the

'External extension- means a connexion completed externally between a
main exchange line telephone or private branch exchange and a point
Situated in another building from a main line instrument or private
branch exchange; it includes the internal wiring and the lightning
protector connecting to the external wiring at the main office, the
external line (wliichM;Ly be cable or open wires or both) between
the main and extens on offices, also the lightning protector, internal
wiring and extension telephone at the extension or sub-office end of
the line.





removal of telephone lines and apparatus to, or the installation of
lines and apparatus of a similar type at, new positions-

(i) For removal of single telephone lines and a single telephone
from one place to.another in the same building-$5.00 per instru-
ment.

(ii) For removal of single telephone lines and a single telephone
from one building to another-$12.00 per instrument.

(iii) For removal of internal extensions either from one place to
another in the same building or from one building to another-$5 per
extension.

(iv) For removal of external extensions from one place to another
in the same building-$5 per extension.

(v) For removal of external extensions from one building to
another-$12 per extension.

(vi) For removal of extension bells, extension switches and
sockets, either from one place to another in the same building or from
one building to another-$5 per extension.

(vii) For removal of private branch exchange switchboards either
from one place to another in the building or from one building to
another and all other removals not specifically mentioned herein-
such sum calculated according to the work necessary as may be
agreed upon between the subscriber and the company.

C. The followhig charges shall be paid by subscribers for other
services performed by the company-

(i) For every trunk call between Hong Kong and Canton of three

minutes' or part of three minutes duration-$2; and for every
additional three minutes or part of three minutes--$2.

(ii) For all other services of whatsoever nature or kind performed
by the company-such charges as the Governor in Council may from
time to time approve.

No. 10-of 1925, incorporated in No. 5 of 1922.

No. 11 and 12 of 1925, repealed by Law Revision
Ordinance, 1939, Supp. Sched.

No. 13 of 1925, repealed by No. 42 Of 1932..
[Originally No. 9 of 1925. No. 9 of 1930. No. 27 of 1933. No. 14 of 1935. Law Rev. Ord., 1939.] Short title. Interpretation. Grant of telephone concession to the company for 50 years. Registration of articles of the company. Ordiance No. 39 of 1932. Number and residence of directors. Authorized capital of company; restriction on borrowing. Payement to Government. Power to execute works. Minimum of damage to be done; compensation to be paid. Government to provide facilities. Depth, course and position of works. Wires to be on metallic return principle. Marking of furture underground apparaturs. Posts to be of approved design and material. Restriction on attachements to public buildings or to trees. Overhead wires to be carried at height of least 18 feet. Telephone lines to be maintained in safe condition. Insulation resistance. Pressure on circuits and apparatus to be limited. Crossed services of others to be protected. Provisions as to completion and protection of works in public streets and payment of costs of surfacing. Restriction on company interfering with works of others. Company not to have claim against Government for disturbance of its works by certain specified works. Precautions to be taken to prevent lightning discharges entering buildings. Company to be answerable for and indemnify Government against claims. Company to alter works on notice. Overhead lins to be placed in cables and overhead lines and cables to be placed underground on notice. Wires in Victoria to be placed underground. Improved and efficient service to be provided and works kept in repair. Company to provide testing circuits, etc. Specified exchanges to be provided. Lines to be provided on request. Connexion of company's telephone system with wireless telephone system. Rates of subscription: matters covered by subscription. Schedule. Removal of lines and instruments on change of address. Schedule. Making of, and charges and security for, trunk calls. Computation of net profits. Authorized dividend and disposal of surplus profits. Schedule. Revision of rates. Schedule. Lines, etc., for Government service to be paid for at usual rates of subscription. Schedule. Company to keep and allow inspection of accounts. Company to permit inspection of works. Penalty for breach of secton 33. Penalty for breach by company of any of its obligations. Power for Government to take over the undertaking in certain events. [s. 46 contd.] Concession is not transferable and is exclusive. Company to operate as if tenure were perpetual. Procedure to be adopted on expiration of term of concession. Determination of amount of purchase money. Removal of works on expiration of licence in default of arrangement for continuance or sale. Reference to arbitration. Ordinance No. 3 of 1901. Service of notices, etc. Signature of notices. Reservation of liability to penalties imposed by law: applicability of Post Office, London, technical instructions: reservation of Government rights in respect of undertaking outside the Colony: limitation of company's rights, etc., to the Colony. Power to make regulations and by-laws. Saving of rights of the Crown and of certain other rights. [Sched. Contd.] [Sched. Contd.] [9.12.32.]

[Originally No. 9 of 1925. No. 9 of 1930. No. 27 of 1933. No. 14 of 1935. Law Rev. Ord., 1939.] Short title. Interpretation. Grant of telephone concession to the company for 50 years. Registration of articles of the company. Ordiance No. 39 of 1932. Number and residence of directors. Authorized capital of company; restriction on borrowing. Payement to Government. Power to execute works. Minimum of damage to be done; compensation to be paid. Government to provide facilities. Depth, course and position of works. Wires to be on metallic return principle. Marking of furture underground apparaturs. Posts to be of approved design and material. Restriction on attachements to public buildings or to trees. Overhead wires to be carried at height of least 18 feet. Telephone lines to be maintained in safe condition. Insulation resistance. Pressure on circuits and apparatus to be limited. Crossed services of others to be protected. Provisions as to completion and protection of works in public streets and payment of costs of surfacing. Restriction on company interfering with works of others. Company not to have claim against Government for disturbance of its works by certain specified works. Precautions to be taken to prevent lightning discharges entering buildings. Company to be answerable for and indemnify Government against claims. Company to alter works on notice. Overhead lins to be placed in cables and overhead lines and cables to be placed underground on notice. Wires in Victoria to be placed underground. Improved and efficient service to be provided and works kept in repair. Company to provide testing circuits, etc. Specified exchanges to be provided. Lines to be provided on request. Connexion of company's telephone system with wireless telephone system. Rates of subscription: matters covered by subscription. Schedule. Removal of lines and instruments on change of address. Schedule. Making of, and charges and security for, trunk calls. Computation of net profits. Authorized dividend and disposal of surplus profits. Schedule. Revision of rates. Schedule. Lines, etc., for Government service to be paid for at usual rates of subscription. Schedule. Company to keep and allow inspection of accounts. Company to permit inspection of works. Penalty for breach of secton 33. Penalty for breach by company of any of its obligations. Power for Government to take over the undertaking in certain events. [s. 46 contd.] Concession is not transferable and is exclusive. Company to operate as if tenure were perpetual. Procedure to be adopted on expiration of term of concession. Determination of amount of purchase money. Removal of works on expiration of licence in default of arrangement for continuance or sale. Reference to arbitration. Ordinance No. 3 of 1901. Service of notices, etc. Signature of notices. Reservation of liability to penalties imposed by law: applicability of Post Office, London, technical instructions: reservation of Government rights in respect of undertaking outside the Colony: limitation of company's rights, etc., to the Colony. Power to make regulations and by-laws. Saving of rights of the Crown and of certain other rights. [Sched. Contd.] [Sched. Contd.] [9.12.32.]

https://oelawhk.lib.hku.hk/items/show/1590

1937

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No. 9 of 1925

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