G.R. No. L-18440; April 26, 1922
PHILIPPINE SHIPOWNERS’ ASSOCIATION, petitioner, vs. THE PUBLIC UTILITY COMMISSIONER AND THE BOARD OF APPEAL, respondents.

FACTS

The Philippine Shipowners’ Association, a corporation composed of common carriers in the coastwise trade, sought to review an order of the Public Utility Commissioner (affirmed by the Board of Appeal) which amended Order No. 16. The amendment required freight on rice to be charged by weight only, instead of by the unit (weight or volume) yielding the largest tariff, resulting in an alleged 39% reduction. The petitioner claimed the order was unsupported by evidence, unreasonable, confiscatory, and prejudicial to public interest. The petition was filed after a rehearing was denied by the Board.

ISSUE

Whether the Supreme Court can set aside the order of the Public Utility Commissioner and the Board of Appeal.

RULING

No. The Supreme Court dismissed the petition. Its power of review under Section 37 of Act No. 2307 is limited to setting aside an order only when it clearly appears that there was no evidence before the Board to support it reasonably, or that the order was issued without jurisdiction. The Court found that a full hearing was conducted, with ample evidence presented by both sides. The Court cannot substitute its judgment on the reasonableness of the rate or public policy. The mere reduction in gross receipts does not conclusively prove the rate is confiscatory or that operations would be at a loss. The temporary injunction was dissolved.