G.R. No. 39217          December 20, 1933
MANILA RAILROAD COMPANY, applicant-appellee, vs. M.P. TRANCO, INC., opponent-appellant.

FACTS

The Manila Railroad Company applied to the Public Service Commission for a change in freight rates for hauling fuel oil from Bauang to mines in the Benguet district. M.P. Tranco, Inc., a competing operator, opposed the application. The Commission, after proceedings, found the existing rates too high and the proposed new rates too low. It issued an order setting what it determined to be fair and reasonable rates, and allowed the proposed rates to remain in effect pending appeal. M.P. Tranco, Inc. appealed the Commission’s order.

ISSUE

1. Whether the Public Service Commission erred in setting new freight rates and in its exercise of discretion in allowing the proposed rates to remain in effect pending appeal.
2. Whether the practice of the Manila Railroad Company in establishing joint or through rates constituted unfair competition.

RULING

The Supreme Court affirmed the order of the Public Service Commission.
1. The Commission has the power and discretion to determine and fix fair and reasonable rates based on the evidence before it. The evidence on record was sufficient for reasoning men to conclude that the rates adopted by the Commission were fair and remunerative. The Commission’s action in allowing the proposed rates to remain pending appeal was within its discretionary power and not an abuse of discretion.
2. The issue of unfair competition was not addressed by the Commission in its decision, as it had already denied the application for the joint rate on other grounds. The Commission’s discretion in not ruling on this specific ground, when it had other valid grounds for its order, cannot be a basis for error. The order appealed from is affirmed.

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