bus org1

SMITH, BELL & CO. vs NATIVIDAD (Malcolm, J.)40 Phil 136, 144-145 (1919) Facts:-Smith, Bell & Co.

is a corporation organized and existing under the laws of the Philippine Islands;majority of the stockholders are British; owner of a motor vessel known as the Bato—brought toCebu for the purpose of transporting Smith, Bell & Co.’s merchandise between ports in theislands.-application for registration was made at Cebu at the Collector of Customs---denied. Becausethey were not citizens of the US/Phils.-Act 2671, Sec. 1172. Certificate ofPhilippine Register.—upon registration of a vessel of domesticownership, and of more than 15 tons gross, a certificate of Philippine register shall be issued forit. If the vessel is of domestic ownership and of 15 tons gross or less, the taking of the certificateof Philippine register shall be optional with the owner.-domestic ownership, as used in this section, means ownership vested in the (a) citizens ornative inhabitants of the Phil Islands; (b) citizens of the US residing in the Phil. Islands; (c) anycorporation or company composed wholly of citizen of Phils./US or both-plaintiff’s contention: Act No. 2671 deprives the corp. of its property without due process of lawbecause by the passage of the law, the company was automatically deprived of every beneficialattribute of ownership of the Bato and that they are left with a naked title they could not use.Issue: WON Smith, Bell & Co. were denied of the due process of law by the Phil. Legislature in itsenactment of Act 2761. Ruling: No. (judgment affirmed—plaintiff can’t be granted registry.)RD: Act No. 2761, in denying to corporations such as Smith, Bell & Co. Ltd., the right to registervessels in the Phils. Coastwide trade, falls within the authorized exceptions. Specifically withinthe purview of the police power. Literally and absolutely, steamship lines are the arteries of thecommerce in the Phils. If one be severed, the lifeblood of the nation is lost. If these areprotected, security of the country and general welfare is sustained

Sign up to vote on this title
UsefulNot useful