GR 41534; (August, 1934) (Digest)
G.R. No. 41534 ; August 31, 1934
M. P. TRANSPORTATION CO., INC., petitioner-appellant, vs. MANILA RAILROAD COMPANY, respondent-appellee.
FACTS
The Manila Railroad Company applied to the Public Service Commission for authority to operate an auto-calesa service in Baguio City and its suburbs. The M. P. Transportation Co., Inc., an existing operator of autotruck passenger and freight services in the area, opposed the application. The opposition argued that the applicant’s franchise did not authorize such service, that public necessity did not demand it, and that granting it would create ruinous competition. The Commission granted the certificate of public convenience, prompting M. P. Transportation to appeal.
ISSUE
Whether the Public Service Commission correctly granted Manila Railroad Company a certificate of public convenience to operate an auto-calesa service in Baguio City and its suburbs.
RULING
No. The Supreme Court reversed the decision of the Public Service Commission. The evidence failed to sufficiently establish that the proposed service would promote public convenience and necessity. The Court found that an efficient and reasonably priced transportation service (including garage cars, autotrucks, and midget taxicabs) already existed in the territory. Authorizing a new service under these circumstances would create ruinous competition among operators. The Court emphasized the rule that existing operators should first be required to improve and increase their equipment if public demand warrants it. Furthermore, the existing operator (M. P. Transportation) provided additional benefits, such as road upkeep, which justified protecting its interest in this case. The application was denied.
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