G.R. No. L-15939; November 5, 1920
KUAN LOW & CO., plaintiff-appellant, vs. VICENTE ALDANESE, Insular Collector of Customs, defendant-appellee.

FACTS:
The appellant, Kuan Low & Co., sought a writ of permanent injunction from the Court of First Instance of Manila to restrain the Collector of Customs from interfering with the exportation of rice from Manila to Hongkong. The Collector’s action was based on Act No. 2869 of the Philippine Legislature, approved on July 30, 1919, which authorized the Governor-General, with the consent of the Council of State, to prohibit the exportation of rice or palay (except to the United States) by proclamation when public interest required. On August 6, 1919, the Governor-General issued Proclamation No. 14, declaring Act No. 2869 in full force and effect and prohibiting rice export except to the United States. The appellant contested the validity of the Act, arguing that it was not yet effective on August 6, 1919, because (1) the President of the United States had not approved it, and (2) the Governor-General’s proclamation could not legally take effect before such presidential approval. The appellant also challenged the constitutionality of the Act, claiming it improperly regulated foreign commerce.

ISSUE:
1. Whether Act No. 2869 was in full force and effect on August 6, 1919.
2. Whether Act No. 2869 is constitutional, particularly regarding its authority to regulate commerce with foreign nations.

RULING:
1. On the effectiveness of Act No. 2869: The Supreme Court held that Act No. 2869 was in full force and effect on August 6, 1919. The Court examined Section 2 of the Act, which conditioned its effectivity on the express or implicit approval of the President of the United States and a proclamation by the Governor-General. However, under the Jones Law (Act of Congress of August 29, 1916), presidential approval was only required for specific classes of legislation: those concerning public lands, timber, mining; tariff acts; immigration; and currency or coinage laws. Act No. 2869 did not fall under any of these categories. Therefore, presidential approval was unnecessary. The Act became effective upon the Governor-General’s proclamation on August 6, 1919, which complied with the legislative intent to authorize the prohibition of rice exportation.

2. On the constitutionality of Act No. 2869: The Supreme Court ruled that the Act was constitutional. The power to regulate foreign commerce is vested in the U.S. Congress, which may delegate this authority to a legislative body created for governing U.S. territory, such as the Philippine Government. Citing United States vs. Bull (15 Phil. 7), the Court affirmed that the Philippine Government, by delegation from Congress, possesses the power to regulate commerce between foreign nations and Philippine ports. Thus, Act No. 2869 was a valid exercise of this delegated authority.

The judgment of the lower court denying the injunction was affirmed, with costs against the appellant.