GR 40705; (February, 1934) (Digest)
G.R. No. 40705 ; February 28, 1934
TOLEDO TRANSPORTATION CO., INC., oppositor-appellant, vs. MANILA RAILROAD CO., petitioner-appellee.
FACTS
The Manila Railroad Co. (appellee), which acquired the rights of Tanza Traffic Company, applied with the Public Service Commission to extend its bus service to the barrios of Kalunuran and Muzon in Rosario, Cavite, using specific streets (P. Burgos, M. Pujeda, Evangelista). The Toledo Transportation Co., Inc. (appellant) opposed, claiming it already adequately served the area along the main road. Both companies operated on the same main road in Rosario, but no carrier had previously served the lateral streets in question. The appellant argued the extension would cause ruinous competition and that, as the first operator, it should have preference.
ISSUE
Whether the Public Service Commission erred in granting Manila Railroad Co. a certificate of public convenience to extend its bus service to the lateral streets of Rosario, Cavite.
RULING
No. The Supreme Court affirmed the Commission’s decision. The extension was justified by public necessity and convenience, as evidenced by petitions from residents. The Court found no conclusive proof of ruinous competition. The doctrine granting preference to the first operator in a territory is inapplicable here because both carriers were already authorized to serve the same general area, and the extension was into a collateral territory not served by the opponent. When two or more carriers operate on the same line, any may be permitted to collaterally extend service if public convenience demands and no other carrier has prior authorization for that extension.
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