Pangas in An

2/9/2019 PHILIPPINE REPORTS ANNOTATED VOLUME 070
VOL. 70, JUNE 26, 1940 221

Pangasinan Trans. Co. vs. Public Service Commission
[No. 47065. June 26, 1940]

PANGASINAN TRANSPORTATION CO., INC., petitioner, vs. THE PUBLIC
SERVICE COMMISSION, respondent.
1.PUBLIC SERVICE COMMISSION; COMMONWEALTH ACT NO. 146 AS AMENDED BY
COMMONWEALTH ACT NO. 454; CONSTITUTIONALITY; DELEGATION OF LEGISLATIVE

POWER.—Section 8 of Article XIII of the Constitution provides, among other
things, that no franchise, certificate, or any other form of authorization for the
operation of a public utility shall be "for a longer period than fifty years," and
when it was ordained, in section 15 of Commonwealth Act No. 146, as amended
by Commonwealth Act No. 454, that the Public Service Commission may
prescribe as a condition for the issuance of a certificate that it "shall be valid
only for a definite period of time" and, in section 16 that "no such certificates
shall be issued for a period of more than fifty years," the National Assembly
meant to give effect to the aforesaid constitutional mandate. More than this, it
has thereby also declared its will that the period to be fixed by the Public
Service Commission shall not be longer than fifty years. All that has been
delegated to the commission, therefore, is the administrative function, involving
the use of discretion, to carry out the will of the National Assembly having in
view, in addition, the promotion of "public interests in a proper and suitable
manner." The fact that the National Assembly may itself exercise the function
and authority thus conferred upon the Public Service Commission does not
make the provision in question constitutionally objectionable.
2. ID.; ID.; ID.; ID.—With the growing complexity of modern life, the multiplication
of the subjects of governmental regulation, and the increased difficulty of
administering the laws, there is a constantly growing tendency toward the
delegation of greater powers by the legislature, and toward the approval of the
practice by the courts. In harmony with such growing tendency, this court, since
the decision in the case of Campania General de Tabacos de Filipinas vs. Board
of Public Utility Commissioners (34 Phil., 136), relied upon by the petitioner,
has, in instances, extended its seal of approval to the "delegation of greater
powers by the legislature." 3.Id.; Id.; Id.; Applicability to Existing Certificates
op Public Convenience.—Under the fourth paragraph of section 15 of
Commonwealth Act No. 146, as amended by Commonwealth Act No. 454, the
power of the Public Service Commission to prescribe the conditions "that the
service can be acquired by the Commonwealth of the Philippines or by any
instrumentality thereof
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222 PHILIPPINE REPORTS ANNOTATED

upon payment of the cost price of its useful equipment, less reasonable
depreciation," and "that the certificate shall be valid only for a definite period of
time" is expressly made applicable "to any extension or amendment of
certificates actually in force" and "to authorizations to renew and increase
equipment and properties." We have examined the legislative proceedings on the
subject and have found that these conditions were purposely made applicable to
existing certificates of public convenience. 4.Id.; Id.; Id.; Power op National
Assembly to Amend or Alter Existing Certificates op Public Convenience.—The
National Assembly, by virtue of the Constitution, logically succeeded to the
http://www.central.com.ph/sfsreader/session/00000168d286b6ab94fe641d003600fb002c009e/t/?o=False 1/10
Congress of the United States in the power to amend, alter or repeal any
franchise or right granted prior to or after the approval of the Constitution; and
when Commonwealth Acts Nos. 146 and 454 were enacted, the National
Assembly, to the extent therein provided, has declared its will and purpose to
amend or alter existing certificates of public convenience.
5. ID.; ID.; ID.; POLICE POWER.—Statutes enacted for the regulation of public utilities,
being a proper exercise by the state of its police power, are applicable not only
to those public utilities coming into existence after its passage, but likewise to
those already established and in operation.
6. ID.; ID.; ID.; ID.—Commonwealth Acts Nos. 146 and 454 are not only the organic
acts of the Public Service Commission but are "a part of the charter of every
utility company operating or seeking to operate a franchise" in the Philippines.
(Streator Aqueduct Co. vs. Smith et al., 295 Fed., 385.) The business of a
common carrier holds such a peculiar relation to the public interest that there is
super induced upon it the right of public regulation. When private property is
"affected with a public interest it ceases to be juris privati only." When,
therefore, one devotes his property to a use in which the public has an interest,
he, in effect, grants to the public an interest in that use, and must submit to be
controlled by the public for the common good, to the extent of the interest he has
thus created. He may withdraw his grant by discontinuing the use, but so long as
he maintains the use he must submit to control. Indeed, this right of regulation is
so far beyond question that it is well settled that the power of the state to
exercise legislative control over public utilities may be exercised through boards
of commissioners.
7. ID.; ID.; ID.; ID.—This right of the state to regulate public utilities is founded upon
the police power, and statutes for the control and regulation of utilities are a
legitimate exercise thereof, for the protection of the public as well as of the
utilities themselves. Such statutes are, therefore, not unconstitutional, either as
im-
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pairing the obligation of contracts, taking property without due process, or

denying the equal protection of the laws, especially inasmuch as the question
whether or not private property shall be devoted to a public use and the
consequent burdens assumed is ordinarily for the owner to decide; and if he
voluntarily places his property in public service he cannot complain that it
becomes subject to the regulatory powers of the state. (51 C. J., sec. 21, pp. 9,
10.) This is the more so in the light of authorities which hold that a certificate of
public convenience constitutes neither a franchise nor a contract, confers no
property right, and is a mere license or privilege.
8. ID.; ID.; ID.; Bight to be Heard and to Adduce Evidence; Case Remanded for
Further Proceedings.—Whilst the challenged provisions of Commonwealth Act
No. 454 are valid and constitutional, Held: That the decision of the Public
Service Commission should be reversed and the case remanded thereto for
further proceedings for the reason now to be stated. On the matter of limitation
to twenty-five (25) years of the life of its certificates of public convenience,
there had been neither notice nor opportunity given the petitioner to be heard or
present evidence. The commission appears to have taken advantage of the
petitioner to augment petitioner's equipment in imposing the limitation of
twenty-five (25) years which might as well be twenty or fifteen or any number
of years. This is, to say the least, irregular and should not be sanctioned. There
are cardinal primary rights which must be respected even in proceedings of this
character. The first of these rights is the right to a hearing, which includes the
right of the party interested or affected to present his own case and submit
evidence in support thereof. In the language of Chief Justice Hughes, in Morgan
vs. U. S. (304 U. S., 1; 58 Sup. Ct., 773, 999; 82 Law. ed., 1129), "the liberty
and property of the citizen shall be protected by the rudimentary requirements of
fair play." Not only must the party be given an opportunity to present his case
and to adduce evidence tending to establish the rights which he asserts but the
tribunal must consider the evidence presented.
PETITION for review on certiorari.

The facts are stated in the opinion of the court.
C. de G. Alvear for petitioner. Evaristo R. Sandoval for
respondent.
LAUREL, J.:
The petitioner has been engaged for the past twenty
224

years in the business of transporting passengers in the Provinces of

Pangasinan and Tarlac and, to a certain extent, in the Provinces of
Nueva Ecija and Zambales, by means of motor vehicles commonly
known as TPU buses, in accordance with the terms and conditions of
the certificates of public convenience issued in its favor by the
former Public Utility Commission in cases Nos. 24948, 3U973,
36831, 32014 and 53090. On August 26, 1939, the petitioner filed
with the Public Service Commission an application for authorization
to operate ten additional new Brockway trucks (case No. 56641), on
the ground that they were needed to comply with the terms and
conditions of its existing certificates and as a result of the
application of the Eight Hour Labor Law. In the decision of
September 26, 1939, granting the petitioner's application for increase
of equipment, the Public Service Commission ordered:
"Y de acuerdo con lo que se provee por el artículo 15 de la Ley No. 146
del Commonwealth, tal como ha sido enmendada por el artículo 1 de la Ley
No. 454, por la presente se enmienda las condiciones de los certificados de
conveniencia pubhca expedidos en los expedientes Nos. 24948, 30973,
36831, 32014 y la autorización concedida en el expediente No. 53090, así
que se consideran incorporadas en los mismos las dos siguientes
condiciones:
"Que los certificados de conveniencia publica y autorización arriba
mencionados serán válidos y subsistentes solamente durante el periodo de
veinticinco (25) años, contados desde la fecha de la promulgación de esta
decision.
"Que la empresa de la solicitante podrá ser adquirida por el
Commonwealth de Filipinas o por alguna dependencia del mismo en
cualquier tiempo que lo deseare previo pago del precio de costo de su
equipo útil, menos una depreciación razonable que se ha de fijar por la
Comision al tiempo de su adquisición."
Not being agreeable to the two new conditions thus incorporated

in its existing certificates, the petitioner filed on October 9, 1939 a
motion for reconsideration which was denied by the Public Service
Commission on November 14,
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VOL. 70, JUNE 26, 1940 225

1939. Whereupon, on November 20, 1939, the present petition for a

writ of certiorari was instituted in this court praying that an order be
issued directing the secretary of the Public Service Commission to
certify forthwith to this court the records of all proceedings in case
No. 56641; that this court, after hearing, render a decision declaring
section 1 of Commonwealth Act No. 454 unconstitutional and void;
that, if this court should be of the opinion that section 1 of
Commonwealth Act No. 454 is constitutional, a decision be
rendered declaring that the provisions thereof are not applicable to
valid and subsisting certificates issued prior to June 8, 1939. Stated
in the language of the petitioner, it is contended:
"1. That the legislative powers granted to the Public Service

Commission by section 1 of Commonwealth Act No. 454, without
limitation, guide or rule except the unfettered discretion and judgment of the
Commission, constitute a complete and total abdication by the Legislature
of its functions in the premises, and. for that reason, the Act, in so far as
those powers are concerned, is unconstitutional and void.
"2. That even if it be assumed that section 1 of Commonwealth Act
No. 454, is a valid delegation of legislative powers, the Public Service
Commission has exceeded its authority because: (a) The Act applies only to
future certificates and not to valid and subsisting certificates issued prior to
June 8, 1939, when said Act took effect, and (b) the Act, as applied by the
Commission, violates constitutional guarantees.
Section 15 of Commonwealth Act No. 146, as amended by section 1 of
Commonwealth Act No. 454, invoked by the respondent Public Service
Commission in the decision complained of in the present proceedings, reads
as follows:
"With the exception of those enumerated in the preceding section, no
public service shall operate in the Philippines without possessing a valid and
subsisting certificate from the Public Service Commission, known as
'certificate of public convenience,' or 'certificate of convenience and public
226

necessity,' as the case may be, to the effect that the operation of said service
and the authorization to do business will promote the public interests in a
proper and suitable manner.
"The Commission may prescribe as a condition for the issuance of the
certificate provided in the preceding paragraph that the service can be
acquired by the Commonwealth of the Philippines or by any instrumentality
thereof upon payment of the cost price of its useful equipment, less
reasonable depreciation; and likewise, that the certificate shall be valid only
for a definite period of time; and that the violation of any of these conditions
shall produce the immediate cancellation of the certificate without the
necessity of any express action on the part of the Commission.
"In estimating the depreciation, the effect of the use of the equipment, its
actual condition, the age of the model, or other circumstances affecting its
value in the market shall be taken into consideration.
"The foregoing is likewise applicable to any extension or amendment of
certificates actually in force and to those which may hereafter be issued, to
permits to modify itineraries and time schedules of public services and to
authorizations to renew and increase equipment and properties."
Under the first paragraph of the aforequoted section 15 of Act

No. 146, as amended, no public service can operate without a
certificate of public convenience or certificate of convenience and
public necessity to the effect that the operation of said service and
the authorization to do business will promote "public interests in a
proper and suitable manner." Under the second paragraph, one of the
conditions which the Public Service Commission may prescribe for
the issuance of the certificate provided for in the first paragraph is
that "the service can be acquired by the Conmmonwealth of the
Philippines or by any instrumentality thereof upon payment of the
cost price of its useful equipment, less reasonable depreciation," a

condition which is virtually a restatement of the principle already
embodied
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VOL. 70, JUNE 26, 1940 227

in the Constitution, section 6 of Article XII, which provides that "the

State may, in the interest of national welfare and defense, establish
and operate industries and means of transportation and
communication, and, upon payment of just compensation, transfer to
public ownership utilities and other private enterprises to be
operated by the Government." Another condition which the
Commission may prescribe, and which is assailed by the petitioner,
is that the certificate "shall be valid only for a definite period of
time." As there is a relation between the first and second paragraphs
of said section 15, the two provisions must be read and interpreted
together. That is to say, in issuing a certificate, the Commission must
necessarily be satisfied that the operation of the service under said
certificate during a definite period fixed therein "will promote the
public interests in a proper and suitable manner." Under section 16
(a) of Commonwealth Act No. 146 which is a complement of
section 15, the Commission is empowered to issue certificates of
public convenience whenever it "finds that the operation of the
public service proposed and the authorization to do business will
promote the public interests in a proper and suitable manner."
Inasmuch as the period to be fixed by the Commission under section
15 is inseparable from the certificate itself, said period cannot be
disregarded by the Commission in determining the question whether
the issuance of the certificate will promote the public interests in a
proper and suitable manner. Conversely, in determining "a definite
period of time," the Commission will be guided by "public
interests," the only limitation to its power being that said period shall
not exceed fifty years (sec. 16 (a), Commonwealth Act No. 146;
Constitution, Art. XIII, sec. 8.) We have already ruled that "public
interest" furnishes a sufficient standard. (People vs. Fernandez and
Trinidad, G. R. No. 45655, promulgated June 15, 1938; People vs.
Rosenthal and Osmeiia, G. R. Nos. 46076 and 46077, promulgated
June 12, 1939, citing New York Central Securities Corporation vs.
U. S. A., 287 U. S. 12, 24, 25, 77 Law. ed. 138, 145, 146;
Schenchter
228

Poultry Corporation vs. U. S., 295 U. S. 495, 540, 79 Law. ed. 1570,
1585; Ferrazzini vs. Gsell, 34 Phil., 697, 711-712.)
Section 8 of Article XIII of the Constitution provides, among
other things, that no franchise, certificate, or any other form of
authorization for the operation of a public utility shall be "for a
longer period than fifty years," and when it was ordained, in section
15 of Commonwealth Act No. 146, as amended by Commonwealth
Act No. 454, that the Public Service Commission may prescribe as a
condition for the issuance of a certificate that it "shall be valid only
for a definite period of time" and, in section 16 (a) that "no such
certificates shall be issued for a period of more than fifty years," the
National Assembly meant to give effect to the aforesaid
constitutional mandate. More than this, it has thereby also declared

its will that the period to be fixed by the Public Service Commission
shall not be longer than fifty years. All that has been delegated to the
Commission, therefore, is the administrative function, involving the
use of discretion, to carry out the will of the National Assembly
having in view, in addition, the promotion of "public interests in a
proper and suitable manner." The fact that the National Assembly
may itself exercise the function and authority thus conferred upon
the Public Service Commission does not make the provision in
question constitutionally objectionable.
The theory of the separation of powers is designed by its
originators to secure action and at the same time to forestall
overaction which necessarily results from undue concentration of
powers, and thereby obtain efficiency and prevent despotism.
Thereby, the "rule of law" was established which narrows the range
of governmental action and makes it a subject to control by certain
legal devices. As a corollary, we find the rule prohibiting delegation
of legislative authority, and from the earliest timeAmerican legal
authorities have proceeded on the theory that legislative power must
be exercised by the legislature alone. It is frankness, however, to
confess that as one delves into the mass of judicial pronouncements,
he finds a great deal of
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VOL. 70, JUNE 26, 1940 229

confusion. One thing, however, is apparent in the development of

the principle of separation of powers and that is that the maxim of
delegatus non potest delegari or delegata potestas non potest
delegari, attributed to Bracton (De Le-gibus et Consuetedinious
Angliae, edited by G. E. Woodbine, Yale University Press, 1922,
vol. 2, p. 167) but which is also recognized in principle in the
Roman Law (D. 17.18.3), has been made to adapt itself to the
complexities of modern governments, giving rise to the adoption,
within certain limits, of the principle of "subordinate legislation,"
not only in the United States and England but in practically all
modern governments. (People vs. Rosenthal and Os-mefia, G. R.
Nos. 46076 and 46077, promulgated June 12, 1939.) Accordingly,
with the growing complexity of modern life, the multiplication of
the subjects of governmental regulation, and the increased difficulty
of administering the laws, there is a constantly growing tendency
toward the delegation of greater powers by the legislature, and
toward the approval of the practice by the courts. (Dillon Catfish
Drainage Dist. v. Bank of Dillon, 141 S. E. 274, 275, 143 S. Ct. 178;
State v. Knox County, 54 S. W. 2d. 973, 976, 165 Tenn. 319.) In
harmony with such growing tendency, this Court, since the decision
in the case of Compania General de Tabacos de Filipinas vs. Board
of Public Utility Commissioners (34 Phil., 136), relied upon by the
petitioner, has, in instances, extended its seal of approval to the
"delegation of greater powers by the legislature." (Inchausti
Steamship Co. vs. Public Utility Commissioner, 44 Phil., 366;
Alegre vs. Collector of Customs, 53 Phil., 394; Cebu Autobus Co.
vs. De Jesus, 56 Phil., 446; People vs. Fernandez & Trinidad, G. R.
No, 45655, promulgated June 15,1938; People vs. Rosenthal &
Osrnena, G. R. Nos. 46076, 46077, promulgated June 12, 1939; and
Robb and Hilscher vs. People, G. R. No. 45866, promulgated June
12, 1939.)
Under the fourth paragraph of section 15 of Commonwealth Act
No. 146, as amended by Commonwealth Act No. 454, the power of
the Public Service Commission to prescribe the conditions "that the

service can be acquired
230

by the Commonwealth of the Philippines or by any instrumentality

thereof upon payment of the cost price of its useful equipment, less
reasonable depreciation and that the certificate shall be valid only
for a definite period of time" is expressly made applicable "to any
extension or amendment of certificates actually in force" and "to
authorizations to renew and increase equipment and properties." We
have examined the legislative proceedings on the subject and have
found that these conditions were purposely made applicable to
existing certificates of public convenience. The history of
Commonwealth Act No. 454 reveals that there was an attempt to
suppress, by way of amendment, the sentence "and likewise, that the
certificate shall be valid only for a definite period of time," but the
attempt failed:
* * * * * * *
"Sr. CUENCO. Señor Presidente, para otra enmienda. En la misma página,
líneas 23 y 24, pido que se supriman las palabras 'and likewise, that the
certificate shall be valid only for a definite period of time.' Esta disposición
del proyecto autoriza a la Comision de Servicios Publicos a fijar un plazo de
vigencia del certificado de conveniencia pública. Todo el mundo sabe que
no se puede determinar cuando los intereses del servicio público requieren
la explotación de un servicio público y como ha de saber la Comision de
Servicios Publicos, si en un tiempo determinado, la explotación de algunos
buses en cierta ruta ya no tiene razon de ser, sobre todo, si se tiene en
cuenta; que la explotación de los servicios públicos depende de condiciones
fluctuantes, así como del volumen del tráfico y de otras condiciones.
Además, el servicio público se concede por la Comision de Servicios
Públicos cuando el interés público así lo exige. El interés público no tiene
duración fija, no es permanente; es un proceso más o menos indefinido en
cuanto al tiempo. Se ha acordado eso en el caucus de anoche.
"EL PRESIDENTE PRO TEMPORE. Que dice el Comité?
"Sr. ALANO. El Comité siente tener que rechazar esa enmienda, en vista
de que esto de los certificados de conve-
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niencia pública es igual que la franquicia: se puede extender. Si los servicios

prestados por la compañía durante el tiempo de su certificado lo requiere,
puede pedir la extensión y se le extenderá; pero no creo conveniente el que
nosotros demos un certificado de conveniencia publica de una manera que
podria pasar de cincuenta años, porque sería anticonstitucional."
* * * * * * *
By a majority vote the proposed amendment was defeated.

(Sesión de 17 de mayo de 1939, Asamblea Nacional.)
The petitioner is mistaken in the suggestion that, simply because
its existing certificates had been granted before June 8, 1939, the
date when Commonwealth Act No. 454, amendatory of section 15 of
Commonwealth Act No. 146, was approved, it must be deemed to
have the right of holding them in perpetuity. Section 74 of the
Philippine Bill provided that "no franchise, privilege, or concession
shall be granted to any corporation except under the conditions that
it shall be subject to amendment, alteration, or repeal by the

Congress of the United States." The Jones Law, incorporating a
similar mandate, provided, in section 28, that "no franchise or right
shall be granted to any individual, firm, or corporation except under
the conditions that it shall be subject to amendment, alteration, or
repeal by the Congress of the United States." Lastly, the Constitution
of the Philippines provides, in section 8 of Article XIII, that "no
franchise or right shall be granted to any individual, firm, or
corporation, except under the condition that it shall be subject to
amendment, alteration, or repeal by the National Assembly when the
public interest so requires." The National Assembly, by virtue of the
Constitution, logically succeeded to the Congress of the United
States in the power to amend, alter or repeal any franchise or right
granted prior to or after the approval of the Constitution; and when
Commonwealth Acts Nos. 146 and 454 were enacted, the National
Assembly, to the extent therein provided, has declared its will and
purpose to amend or alter existing certificates of public convenience.
232

Upon the other hand, statutes enacted for the regulation of public
utilities, being a proper exercise by the state of its police power, are
applicable not only to those public utilities coming into existence
after its passage, but likewise to those already established and in
operation.
"Nor is there any merit in petitioner's contention, that, because of the

establishment of petitioner's operations prior to May 1, 1917, they are not
subject to the regulations of the Commission. Statutes for the regulation of
public utilities are a proper exercise by the state of its police power. As soon
as the power is exercised, all phases of operation of established utilities,
become at once subject to the police power thus called into operation.
Producers' Transportation Co. v. Railroad Commission, 251 U. S. 228, 40
Sup. Ct. 131, 64 Law. ed. 239, Law v. Railroad Commission, 184 Cal. 737,
195 Pac. 423, 14 A. L. R. 249. The statute is applicable not only to those
public utilities coming into existence after its passage, but likewise to those
already established and in operation. The 'Auto Stage and Truck
Transportation Act' (Stats. 1917, c. 213) is a statute passed in pursuance of
the police power. The only distinction recognized in the statute between
those established before and those established after the passage of the act is
in the method of the creation of their operative rights. A certificate of public
convenience and necessity is required for any new operation, but no such
certificate is required of any transportation company for the operation which
was actually carried on in good faith on May 1, 1917. This distinction in the
creation of their operative rights in no way affects the power of the
Commission to supervise and regulate them. Obviously the power of the
Commission to hear and dispose of complaints is as effective against
companies securing their operative rights prior to May 1, 1917. Test against
those subsequently securing such rights under a certificate of public
convenience and necessity. (Motor Transit Co. et al. v. Railroad
Commission of California et ai., 209 Pac. 586.)"
Moreover, Commonwealth Acts Nos. 146 and 454 are not
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VOL. 70, JUNE 26, 1940 233

only the organic acts of the Public Service Commission but are "a
part of the charter of every utility company operating or seeking to
operate a franchise" in the Philippines. (Streator Aqueduct Co. v.
Smith et al., 295 Fed. 385.) The business of a common carrier holds
such a peculiar relation to the public interest that there is
superinduced upon it the right of public regulation. When private
property is "affected with a public interest it ceased to be juris
privati only." When, therefore, one devotes his property to a use in
which the public has an interest, he, in effect, grants to the public an
interest in that use, and must submit to be controlled by the public
for the common good, to the extent of the interest he has thus
created. He may withdraw his grant by discontinuing the use, but so
long as he maintains the use he must submit to control. Indeed, this
right of regulation is so far beyond question that it is well settled that
the power of the state to exercise legislative control over public
utilities may be exercised through boards of commissioners. (Fisher
vs. Yangco Steamship Company, 31 Phil., 1, citing Munn vs. Illinois,
94 U. S. 113; Georgia R. & Bkg. Co. vs. Smith, 128 U. S. 174; Budd
vs. New York, 143 U. S. 517; New York etc. R. Co. vs. Bristol, 151
U. S. 556, 571; Connecticut etc. R. Co. vs. Woodruff, 153 U. S. 689;
Louisville etc. Ry Co. vs. Kentucky, 161 U. S. 677, 695.) This right
of the state to regulate public utilities is founded upon the police
power, and statutes for the control and regulation of utilities are a
legitimate exercise thereof, for the protection of the public as well as
of the utilities themselves. Such statutes are, therefore, not un-
constitutional, either as impairing the obligation of contracts, taking
property without due process, or denying the equal protection of the
laws, especially inasmuch as the question whether or not private
property shall be devoted to a public use and the consequent burdens
assumed is ordinarily for the owner to decide; and if he voluntarily
places his property in public service he cannot complain that it
becomes subject to the regulatory powers of the state. (51 C. J., sec.
21, pp. 9-10.) This is the more so
234

in the light of authorities which hold that a certificate of public

convenience constitutes neither a franchise nor a contract, confers no
property right, and is a mere license or privilege. (Burgess vs. Mayor
& Aldermen of Brockton, 235 Mass. 95, 100, 126 N. E. 456;
Roberto vs. Commissioners of Department of Public Utilities, 262
Mass. 583, 160 N. E. 321; Scheible vs. Hogan, 113 Ohio St. 83, 148
N. E. 581; Matz vs. Curtis [J. L.] Cartage Co. [1937], 132 Ohio St.
271, 7 N. E. [2d] 220; Manila Yellow Taxicab Co. vs. Sabellano, 59
Phil., 773.)
Whilst the challenged provisions of Commonwealth Act No. 454
are valid and constitutional, we are, however, of the opinion that the
decision of the Public Service Commission should be reversed and
the case remanded thereto for further proceedings for the reason now
to be stated. The Public Service Commission has power, upon proper
notice and hearing, "to amend, modify or revoke at any time any
certificate issued under the provisions of this Act, whenever the
facts and circumstances on the strength of which said certificate was
issued have been misrepresented or materially changed." (Section
16, par. [m], Commonwealth Act No. 146.) The petitioner's
application here was for an increase of its equipment to enable it to
comply with the conditions of its certificates of public convenience.
On the matter of limitation to twenty five (25) years of the life of its
certificates of public convenience, there had been neither notice nor
opportunity given the petitioner to be heard or present evidence. The

Commission appears to have taken advantage of the petitioner to
augment petitioner's equipment in imposing the limitation of twenty-
five (25) years which might as well be twenty or fifteen or any
number of years. This is, to say the least, irregular and should not be
sanctioned. There are cardinal primary rights which must be
respected even in proceedings of this character. The first of these
rights is the right to a hearing, which includes the right of the party
interested or affected to present his own case and submit evidence in
support thereof. In the language of Chief Justice Hughes,
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VOL. 70, JUNE 26, 1940 235

in Morgan v. U. S., 304 U. S. 1, 58 S. Ct. 773, 999, 82 Law. ed.

1129, "the liberty and property of the citizen shall be protected by
the rudimentary requirements of fair play." Not only must the party
be given an opportunity to present his case and to adduce evidence
tending to establish the rights which he asserts but the tribunal must
consider the evidence presented. (Chief Justice Hughes in Morgan
vs. U. S., 298 U. S. 468, 56 S. Ct. 906, 80 Law. ed. 1288.) In the
language of this Court in Edwards vs. McCoy (22 Phil., 598), "the
right to adduce evidence, without the corresponding duty on the part
of the board to consider it, is vain. Such right is conspicuously futile
if the person or persons to whom the evidence is presented can thrust
it aside without notice or consideration." While the duty to
deliberate does not impose the obligation to decide right, it does
imply a necessity which cannot be disregarded, namely, that of
having something to support its decision. A decision with absolutely
nothing to support it is a nullity, at least when directly attacked.
(Edwards vs. McCoy, supra.) This principle emanates from the more
fundamental principle that the genius of constitutional government is
contrary to the vesting of unlimited power anywhere. Law is both a
grant and a limitation upon power.
The decision appealed from is hereby reversed and the case
remanded to the Public Service Commission for further proceedings
in accordance with law and this decision, without any
pronouncement regarding costs. So ordered.
Avanceña, C. J., Imperial, Diaz, Conception, and Moran, J J.,

concur.
Writ granted.
———————————
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2/9/2019 PHILIPPINE REPORTS ANNOTATED VOLUME 070

VOL. 70, JUNE 26, 1940 221

[No. 47065. June 26, 1940]

1.PUBLIC SERVICE COMMISSION; COMMONWEALTH ACT NO. 146 AS AMENDED BY

COMMONWEALTH ACT NO. 454; CONSTITUTIONALITY; DELEGATION OF LEGISLATIVE

222 PHILIPPINE REPORTS ANNOTATED

VOL. 70, JUNE 26, 1940 223

pairing the obligation of contracts, taking property without due process, or

PETITION for review on certiorari.

224 PHILIPPINE REPORTS ANNOTATED

years in the business of transporting passengers in the Provinces of

Not being agreeable to the two new conditions thus incorporated

VOL. 70, JUNE 26, 1940 225

1939. Whereupon, on November 20, 1939, the present petition for a

"1. That the legislative powers granted to the Public Service

226 PHILIPPINE REPORTS ANNOTATED

Under the first paragraph of the aforequoted section 15 of Act

cost price of its useful equipment, less reasonable depreciation," a

VOL. 70, JUNE 26, 1940 227

in the Constitution, section 6 of Article XII, which provides that "the

228 PHILIPPINE REPORTS ANNOTATED

constitutional mandate. More than this, it has thereby also declared

VOL. 70, JUNE 26, 1940 229

confusion. One thing, however, is apparent in the development of

the Public Service Commission to prescribe the conditions "that the

230 PHILIPPINE REPORTS ANNOTATED

by the Commonwealth of the Philippines or by any instrumentality

VOL. 70, JUNE 26, 1940 231

niencia pública es igual que la franquicia: se puede extender. Si los servicios

By a majority vote the proposed amendment was defeated.

it shall be subject to amendment, alteration, or repeal by the

232 PHILIPPINE REPORTS ANNOTATED

"Nor is there any merit in petitioner's contention, that, because of the

Moreover, Commonwealth Acts Nos. 146 and 454 are not

VOL. 70, JUNE 26, 1940 233

234 PHILIPPINE REPORTS ANNOTATED

in the light of authorities which hold that a certificate of public

opportunity given the petitioner to be heard or present evidence. The

VOL. 70, JUNE 26, 1940 235

in Morgan v. U. S., 304 U. S. 1, 58 S. Ct. 773, 999, 82 Law. ed.

Avanceña, C. J., Imperial, Diaz, Conception, and Moran, J J.,

© Copyright 2019 Central Book Supply, Inc. All rights reserved.

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