GR 40637; (December, 1933) (Digest)
G.R. No. 40637, December 20, 1933
M. P. TRANSPORTATION CO., INC. vs. THE PUBLIC SERVICE COMMISSION and THE MANILA RAILROAD CO.
FACTS
The Manila Railroad Company, owner of the Benguet Auto Line, applied to the Public Service Commission (PSC) for approval of reduced freight rates (Supplement No. 7 to special tariff 254-B) on certain goods between Manila and Baguio and nearby mines. The PSC granted the application ex parte, allowing the new rates to take effect on September 4, 1933, and provided a 30-day period for written objections. Petitioner M.P. Transportation Co., Inc., a competitor operating auto lines in the same territory, filed an opposition and a motion for reconsideration, which the PSC denied. The PSC then set a hearing on the merits for November 28, 1933. Instead of awaiting that hearing, the petitioner filed this original action for certiorari with injunction before the Supreme Court on October 21, 1933.
ISSUE
Whether the Supreme Court should issue a writ of certiorari to annul the PSC’s ex parte order authorizing the reduced rates to take effect.
RULING
No. The petition for certiorari is denied. The Court found the issue regarding the PSC’s authority to shorten the statutory 30-day notice period for rate changes (under Act No. 3108) to be academic, as that period had already expired by the time the case was filed. More importantly, the petitioner failed to exhaust its administrative remedies. A hearing on the merits of the rate change was scheduled before the PSC. The Court presumed the PSC would, after a proper hearing, issue appropriate orders and would not approve rates that are unremunerative, destructive, or that would foster ruinous competition. Any adverse effect on the petitioner’s rights should first be addressed through the speedy remedy of the PSC hearing. Therefore, the petitioner must exhaust that remedy before seeking judicial relief.
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