G.R. No. 42441 , December 22, 1934
Iloilo Transportation Co., Inc. vs. Panay Autobus Company, et al.

FACTS

Petitioner Iloilo Transportation Co., Inc. applied with the Public Service Commission for a certificate of public convenience to operate 100 autocalesas (four-wheeled vehicles) within the City of Iloilo and its neighboring municipalities. The proposed service would operate without fixed routes or timetables. The application was opposed by several existing operators of truck services, a garage and taxicab service, and associations of owners and drivers of horse-drawn vehicles, all of whom were rendering similar transportation services in the same territory. The Public Service Commission denied the application.

ISSUE

Whether the Public Service Commission erred in denying the application for a certificate of public convenience to operate an autocalesa service on the ground that it would not promote public interest and would constitute ruinous competition.

RULING

No, the Public Service Commission did not err. The Supreme Court affirmed the Commission’s decision. The evidence showed that the population of the affected territory did not exceed 85,000 and was already being adequately and efficiently served by existing public utility vehicles, including autotrucks, garage cars, taxicabs, and horse-drawn vehicles. Granting the new franchise would lead to unlawful and ruinous competition with these established services, contrary to public interest. The Court found the Commission’s conclusion to be reasonably supported by the evidence.

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