GR 37136; (March, 1933) (Digest)
G.R. No. 37136 ; March 1, 1933
MANILA ELECTRIC COMPANY, petitioner-appellant, vs. PASAY TRANSPORTATION CO., INC., respondent-appellee.
FACTS
Manila Electric Company (Meralco) operates a streetcar line between Manila and Pasig. Pasay Transportation Co., Inc. operates autobus services, including a route from Marikina to Manila via Pasig, which competes with Meralco’s streetcar service on the Pasig-Manila segment. Meralco filed a complaint with the Public Service Commission, alleging that Pasay Transportation was engaging in unfair and illegal competition by carrying passengers between Pasig and Manila at a fare lower than Meralco’s and lower than its own authorized schedule rate of 1.5 centavos per kilometer. The Public Service Commission dismissed Meralco’s complaint. Meralco appealed, arguing the dismissal effectively approved an unauthorized 15-centavo fare for the Pasig-Manila trip, which was below the minimum based on the correct distance.
ISSUE
Did the Public Service Commission err in dismissing Meralco’s complaint against Pasay Transportation for charging an allegedly unauthorized and unfairly low fare on the competing Pasig-Manila route?
RULING
Yes. The Supreme Court reversed the Public Service Commission’s order of dismissal. The Court found that the Commission’s virtual approval of a 15-centavo fare was not reasonably sustained by the evidence. The Court determined the correct distance for the trip was 12.19 kilometers, making the minimum authorized fare under Pasay Transportation’s schedule approximately 18 centavos (1.5 centavos x 12.19 km). The Court held that in fixing rates for the bus service, the Public Service Commission must take into consideration the rights and investments of Meralco, especially since Meralco’s infrastructure (like the Pasig bridge) enabled the bus company’s operations. The Court set aside the order and directed that, pending a full hearing, Pasay Transportation should not charge less than 18 centavos for the Pasig-Manila trip. The Public Service Commission was ordered to conduct a full hearing to approve a fair and just rate that would not engender ruinous competition. Costs were imposed on Pasay Transportation.
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