G.R. No. 19650 , December 19, 1922
FIDEL REYES, petitioner, vs. JOSE TOPACIO, as Director of Posts, respondent.

FACTS

The Director of Posts issued a fraud order against Fidel Reyes, directing postmasters to return all mail addressed to him or his businesses marked “Fraudulent” and to forbid payment of postal money orders to him. The order was based on findings that Reyes conducted a gift enterprise for the distribution of money by chance, planned to conduct another, and used the mail service for such enterprise, as authorized by sections 1982 and 1983 of the Administrative Code. Reyes filed an original petition for mandamus seeking to annul the fraud order and to declare the cited statutory sections unconstitutional.

ISSUE

(1) Whether the Director of Posts exceeded his authority in issuing the fraud order. (2) Whether sections 1982 and 1983 of the Administrative Code are constitutional.

RULING

The Supreme Court sustained the demurrer and upheld the constitutionality of the challenged provisions. The Court ruled that the use of the mails is a privilege, not an absolute right, and is subject to regulation to prevent abuse. The Director of Posts, upon satisfactory evidence, has the authority to issue fraud orders against persons using the mails for lottery schemes or fraudulent enterprises. The statutory provisions, copied from U.S. federal statutes, are constitutional as they serve a valid regulatory purpose. The action of the Director is subject to judicial review only if he exceeds his authority or acts in a palpably wrong manner. In this case, the Director did not exceed his authority. The petitioner was given five days to amend his complaint; otherwise, it would be dismissed with costs.