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GOVERNMENT OF THE PHILIPPINE ISLANDS Certiorari to the Philippine Supreme Court [May 14, 1928] FACTS:

National Coal Company (NCC): created by Act 2706 approved March 10, 1917 w/subsequent amendments. Voting power of all stocks owned by PI gov’t shall be vested exclusively in a committee composed

of the Gov Gen, Senate Pres, and House Speaker. National Bank (NB): created by Act 2612 approved Feb. 4, 1916 w/subsequent amendments. Phil. gov’t owns 97,332 out of the 100,000 shares. Remainder

by amendment. Power to . such power was transferred to the Board of Control composed of Gov Gen. Originally. Senate Pres.held by private persons. However. and House Speaker. voting power was vested exclusively on Gov Gen.

The Boards of Control .appoint bank Pres & VP. Directors will also vote for a gen mgr subject to advice & consent of Board of Control. removed from Gov Gen too. Directors to decide such among themselves.

Philippine government instituted proceedings quo warranto against the petitioners claiming that formulation of these bodies invaded the Governor- .of both the NCC & NB appointed one director each without Gov Gen’s participation.

Voting power of . Thus. Petitioners contend: 1.General’s appointing power. petitioners brought this appeal to the US SC. Philippine SC ordered the ouster of the two as directors of the aforementioned institutions.

(Sheboyan County vs.Phil Legislature shares general . Parker) 2. Alleged invasion of Gov Gen’s general power of appointing persons to public office are beside the point.the NCC’s government .owned stock is not an office.

. including conferring voting power of corporate stock. Congress can create corporations to attain objects w/in its powers & provide for organization & mgt of such corp.legislative powers exercised by States & Territories..

Granting this voting power to parties other than the executive officers of the gov’t has been done in the cases of the Smithsonian Institution & National Home for Disabled Soldiers.Congress likewise uses privately owned stock companies to . 3.

attain its objectives using an extra-governmental means (California vs. Such corporations exercise some executive functions if allowed to do so by Congress. Pacific R. Co. However even if they are used as instruments .R.).

) Government ownership is .of Congress. (Meaning: Congress doesn’t transfer such powers to the executive and instead confides such to the private stockowners. they often retain the stock-voting power.

insufficient to blur corporate lines that separate corporations from the gov’t that created them (Bank of the United States vs. Planters Bank). Corporate lines are blurred simply because these corporations are granted governmental .

privileges & protection. US) 4. vs. are still considered as separate entities (Russel Motor Car Co.Even if voting power should remain with the government. But in terms of management. these corp. it should still be within the powers of .

the legislative officers to do so. 4 of the Consti provides that the Pres or heads of exec depts only enjoy powers to use or dispose public property if allowed by Congress. Sec. Powers of Congress in caring for gov’t . Art. 3.

Exec depts. this does not belong to .NCC officers are not gov’t officers. are mere agents or instrumentalities of Congress limited to performing detail of such care. are plenary w/c includes power of direction. 5.

. 6.Philippine statutes involved have received implied sanction of Congress & should not be disturbed (Clinton vs.Governor General’s asserted power of appointing persons to public office.

Englebrecht) – Meaning: since US Congress did not nullify these statutes. During this time. we can imply that they are valid & upheld by US Congress. . laws enacted by Phil Legislature were subj to review of US Congress.

Statutes stripped Gov Gen all supervision/control over the NCC & NB and vested direction of mgt & operation of such in Congress thru the majority.Respondents contend: 1. .

22 of the Organic Act w/c provides that all exec functions must be under the Gov Gen or w/in one of the exec. under his supervision & control.Stripping gov gen of his powers violates Sec. Depts. .

. 3.2.Selection & removal of managing directors & officers. and direction of operation are not legislative functions.Relation of PI gov’t to these corp. No making/repealing of laws or anything incidental to such is involved.

and not legislative body. (governmental or private business) are immaterial. has power to perform administrative or executive functions in .(proprietary/sovereign ) and functions performed by these corp. Gov Gen.

4.If Board of Control post is different from Gov Gen.all instances mentioned. And if functions to be performed are exec or . then selection of representative is an exec act. Senate Pres. Or House Speaker positions.

administrative in charac.Congress cannot make appointments to exec/administrative positions & it may not confer executive or administrative functions on legislative officials. 5. . selection is likewise not legislative.

Its invalidity does not depend on Congress reiteration.Inaction of US Congress is of no consequence.6. ISSUE: WON voting power in the government-owned . It is invalid because it is in conflict w/ the Organic Act.

It’s an executive rather than a legislative function.stock belongs to Congress. HELD: NO. Since Congress has not yet decided as to whether such power should be exercised by the Gov Gen or by . Phil SC affirmed.

. Nat’l Cement Co.. RATIO: 1.. power will be vested on Gov Gen. Nat’l Dev’t Co.Take note that legislature similarly devolved voting power in at least 4 other corps: Nat’l Petroleum Co...any of the exec depts.

Organic Act follows established rule of American Consti – dividing gov’t into 3 .Nat’l Iron Co. 2. proof that Congress has been taking direct control over nationally organized/controlled stock corp. accdg to Sol Gen.

faithful execution of laws. 21). b. etc.Legislative power . Among executive functions mentioned: gen supervision of gov’t depts. 22). and bureaus (Sec.separate departments: a.Executive power on executive officer/Gov Gen (Sec.

on Phil Legislature (Sec. or make changes in names & duties as it may seem fit. (Sec. 8). or abolish exec depts. 22) . Among its duties are: to increase no. provide for appointment & removal of heads of exec depts. by Gov Gen.

26 recognizes SC & CFIs.Sec.c. .