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No. 47065 June 26, 1940

FACTS: Pangasinan Transportation Company Inc. (PTI) has been engaged for 20
years in the business of transporting passengers in Pangasinan, Tarlac and Nueva
Ecija through TPU buses in accordance with the terms and conditions of the
certificates of public convenience issued by the Public Utility Commission (later
called Public Service Commission). The company applied for an authorization to
operate ten additional Brockway trucks on the ground that they were needed to
comply with the terms and conditions of its existing certificates and as a result of
the application of the Eight Hour Labor Law. PSC agreed to grant the authorization,
but with two conditions as provided for by section 1 of Commonwealth Act No. 454:
First, that the certificates of authorization issued to it would be valid only for a
period of 25 years counted from the date of promulgation; and second, that the
company may be acquired by the Philippine Commonwealth with proper payment of
the cost price of its equipment, taking into account reasonable depreciation to be
fixed by the Commission at the time of it acquisition. PTI did not agree with the
conditions, and instead asked the Supreme Court to declare Commonwealth Act No.
ISSUE: Whether or not Commonwealth Act No. 454 is unconstitutional for being
undue delegation of legislative power on the ground that without limitation, guide or
rule except the unfettered discretion and judgment of the Commission, constitute a
complete and total abdication by the Legislature of its functions in the premises,
and for that reason, the Act, in so far as those powers are concerned.
HELD: No, the law is not unconstitutional. The law is made subject to a sufficient
standard that the PSC must strictly follow. Inasmuch as the period to be fixed by the
Commission under section 15 is inseparable from the certificate itself, said period
cannot be disregarded by the Commission in determining the question whether the
issuance of the certificate will promote the public interests in a proper and suitable
manner. Conversely, in determining "a definite period of time," the Commission will
be guided by "public interests," the only limitation to its power being that said
period shall not exceed fifty years (sec. 16 (a), Commonwealth Act No. 146;
Constitution, Art. XIII, sec. 8.) The Supreme Court had earlier ruled that "public
interest" furnishes a sufficient standard.