G.R. No. 46208 , December 12, 1938
MANILA RAILROAD COMPANY, petitioner, vs. PARSONS HARDWARE COMPANY, INC., respondent.

FACTS

Respondent Parsons Hardware Company, Inc. applied with the Public Service Commission for a certificate of public convenience to operate two auto-trucks for freight from Manila to various provinces, primarily to carry goods purchased by its customers. The applicant stated it intended to use the trucks to accept return cargoes to Manila to avoid losses from empty return trips, promising this would not be a regular transportation business. Petitioner Manila Railroad Company opposed the application. The Commission granted the certificate, prompting the petitioner to appeal.

ISSUE

Whether the Public Service Commission erred in granting the certificate of public convenience based on the evidence presented.

RULING

Yes. The Supreme Court reversed the Commission’s decision. The evidence showed the primary purpose was to serve the applicant’s private interest in avoiding losses from empty return trips, with public service being merely incidental. The meager evidence did not reasonably establish public necessity or convenience, which are essential for granting such a certificate. The certificate was improperly granted.

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