GR L 6738; (August, 1954) (Digest)

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G.R. No. L-6738; August 25, 1954
PANGASINAN TRANSPORTATION CO., INC., petitioner, vs. MARCIAL TAMBOT, respondent.

FACTS

Marcial Tambot filed an application with the Public Service Commission to operate an auto-truck service on three lines: Pozorrubio-Dagupan City, Pozorrubio-Baguio City via Kennon Road, and Dagupan City-Baguio via San Fabian and Naguilian Road. The Pangasinan Transportation Co., Inc. (PANTRANCO) opposed the application, arguing that it was already a regular operator on those lines with fully rehabilitated prewar units; that Tambot was not financially capable and lacked experience; that existing service was more than sufficient; and that granting the application would cause ruinous competition. After a hearing, the Commission granted Tambot a certificate of public convenience to operate the lines for 25 years using a total of six units. PANTRANCO filed the present petition for review.

ISSUE

The primary issues were: (1) whether respondent Marcial Tambot possessed the financial capacity to maintain and operate the proposed transportation service; and (2) whether the evidence supported the Public Service Commission’s finding that public necessity and convenience warranted the granting of the certificate to Tambot.

RULING

The Supreme Court dismissed the petition. On the issue of financial capacity, the Court upheld the Commission’s finding that Tambot was financially capable, noting his P15,000 cash, a fishpond valued at P20,000 yielding P6,000 annual income, a residential lot worth P10,000, agricultural land valued at P30,000 yielding P4,000 annually, and estimated monthly receipts of P5,000 from the operation. The Court also noted the matter was moot as Tambot had already purchased and registered the units. On the issue of public necessity, the Court deferred to the Commission’s factual findings, which were supported by sufficient evidence. The Commission found that PANTRANCO did not operate on the Pozorrubio-Baguio (Kennon Road) and Dagupan-Baguio (Naguilian Road) lines at all, and that its 12 daily round trips on the Pozorrubio-Dagupan line were insufficient. The Court cited established doctrine that it will not disturb the Commission’s factual findings when there is a material conflict in evidence and the findings are reasonably supported. Furthermore, the Court noted significant population increases in the areas served (totaling over 100,000 across the lines) without a corresponding increase in transportation facilities, which alone justified the additional service.

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