Section 2
SEC. 2. Section three of the same Act is hereby amended to read as follows: "SEC. 3. Authorized Capital Stock of the Philippine National Railways.—The authorized capital stock of the Philippine National Railways shall be six hundred fifty million pesos divided into three million one hundred thirteen thousand common shares and one hundred thirty-seven thousand preferred shares, both with par value of two hundred pesos each, which shall include the present capitalization of the Philippine National Railways: Provided, That the increase in the authorized capital shall be fully subscribed by the Government: Provided, further, That the existing long term obligations of the Manila Railroad Company to the Government of the Philippines including its agencies or instrumentalities, in the amount of ninety-two million six hundred thousand pesos shall be converted into capital stocks of the Philippine National Railways and made a part of the subscription: Provided, still further, That the Philippine National Railways shall, aside from its authorized capital stock of six hundred fifty million pesos, receive from the Government of the Philippines the amounts allocated under Republic Acts Numbered Eighteen hundred sixty-seven, Sixteen hundred twenty-three, and Eighteen hundred one, for the construction of new railroad line to the Cagayan Valley, and to the Province of Sorsogon, and whenever economically and technically feasible, the rehabilitation of the Cabanatuan Line, respectively: And, provided, finally, That the additional amount of the one hundred twenty million pesos be set aside, and the entire amount or so much thereof as may be needed by the Philippine National Railways be made available to the Philippine National Railways at least one year before the completion of the Cagayan and/or Sorsogon construction projects, for the purchase of motive power, rolling stocks and other supplies for use in the new lines and for the Manila-Bulacan-Pampanga-Tarlac-Pangasinan-La Union Line and the reactivation and reconstruction of the old La Union-Baguio Line, it being specified that at least fifty million pesos of the authorized capital of the Philippine National Railways shall be invested as soon as practicable but not later than two years from the approval of this Act, for the purchase of motive power and rolling stocks for the railway project in Mindanao and five million pesos or so much thereof for the survey, economic and technical feasibility studies of said railway project, which shall be undertaken within six months from the approval of this Act."