G.R. No. 40977 , 40982, 40983; April 21, 1934
PANAY AUTOBUS CO. and JOVITA ALFARAS, petitioners-appellants, vs. ILOILO TRANSPORTATION CO., INC., and PANAY AUTOBUS CO., respondents-appellees.

FACTS

Three operators—Jovita Alfaras, Panay Autobus Co., and Iloilo Transportation Co., Inc.—were providing autobus service in Iloilo and its suburbs. Panay Autobus and Iloilo Transportation applied with the Public Service Commission to enlarge their routes and increase their equipment. Each operator objected to the others’ applications. Alfaras already covered the desired routes but had inadequate equipment, leading to irregular service. The other two companies had sufficient capital and management, providing adequate service, though possibly with excessive and expensive equipment beyond public necessity.

ISSUE

Whether the Public Service Commission erred in granting the applications of Panay Autobus Co. and Iloilo Transportation Co., Inc., to extend their routes and increase their equipment, despite objections from existing operators.

RULING

No. The Supreme Court affirmed the orders of the Public Service Commission. The Court found that the Commission, after careful study, had evidence to conclude that the extensions were for public benefit and that restrictive measures to prevent competition were not yet warranted. The extensions were slight and involved existing operators, not new entrants. As the Commission’s decision was supported by evidence and involved no new question of law, the Court declined to interfere with its practical discretion.

AI Generated by Armztrong.