GR 45740; (July, 1938) (Digest)
G.R. No. 45740; July 30, 1938
LA PAZ ICE PLANT & COLD STORAGE CO., INC., respondent, vs. ELPIDIO JAVELLANA, petitioner.
FACTS
The respondent, La Paz Ice Plant & Cold Storage Co., Inc., an ice plant operator in Iloilo authorized to produce ten tons of ice daily, applied with the Public Service Commission for a permit to increase its production to fifty tons daily and to reduce its selling price. The petitioner, Elpidio Javellana, also an ice plant operator in Iloilo authorized to produce thirty tons daily, opposed the application. He argued that the respondent had been illegally overproducing, that the territory did not require more ice, and that the price reduction would lead to ruinous competition.
ISSUE
Whether the Public Service Commission correctly granted the respondent’s application to increase its ice production capacity and reduce its selling price.
RULING
Yes, the Supreme Court affirmed the decision of the Public Service Commission. The Court found that the growing population of Iloilo and neighboring towns (over 85,000 inhabitants), the presence of numerous hospitals, hotels, restaurants, ice cream factories, a public market, and daily arriving ships and fishing vessels justified the increased production. The respondent’s prior violation of its production limit was not a bar to its application, as the application itself demonstrated an intent to operate lawfully. The Court also held that the increase would not cause ruinous competition given the demonstrated public need and the prospects of the city’s development. The permit granted an authorization, not an obligation, to produce the maximum amount, allowing operators to adjust production according to actual demand.
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