Pangasinan Trans Co.

v Public Service Commission

GR No. 47065, 26 June 1940
Topic: Power to grant licenses or franchise to operate public utilities

Facts:
 Pangasinan Trans Co. has been engaged in the transport business for 20 years by moving passengers in the
Provinces of Pangasinan and Tarlac though the use of TPU buses in accordance with the terms and conditions of
the certificates of public convenience. On Aug. 1939, PTC filed with the Public Service Commission an
application for authorization to operate 10 additional new Brockway trucks on the ground that these were
needed to comply with the terms and conditions of its existing certificates and as a result of the 8-hour labor
law.

 Upon the grant of the application, the Public Service Commission ordered (1) that all the public certificates held
by PTC shall only be valid for 25 years from the time of the decision and that (2) the Commonwealth of the
Philippines can acquire the company after payment of price of the equipment less depreciation. In
disagreement with the conditions filed a motion for reconsideration but was denied, hence this petition.

Issue: WON the conditions imposed by the Public Service Commission is valid

Held: Yes.

Ruling:
 Sec 15 of Act No. 146, as amended, provides that no public service can operate without a certificate of public
convenience or certificate of convenience and public necessity to the effect that the operation of said service
and the authorization to do business will promote public interest in a proper and suitable manner. As such the
Commission must necessarily be satisfied that the operation of the service under said certificate during a
definite period fixed therein will promote the public interests in a proper and suitable manner.
 The Commission is empowered to issue certificates of public convenience whenever it finds that the operation
of the public service proposed and the authorization to do business will promote the public interests in a proper
and suitable manner. The period cannot be disregarded in determining the question whether the issuance of
the certificate will promote the public interests in a proper and suitable manner. In determining the definite
period of time, the Commission will be guided by public interest, the only limitation to its power being that the
said period shall not exceed fifty years.