ICHONG VS HERNANDEZ

FACTS:
The Legislature passed R.A. 1180 (An Act to Regulate the Retail Business). Its purpose was to prevent
persons who are not citizens of the Phil. from having a stranglehold upon the people’s economic life. a
prohibition against aliens and against associations, partnerships, or corporations the capital of which are not
wholly owned by Filipinos, from engaging directly or indirectly in the retail trade aliens actually engaged in
the retail business on May 15, 1954 are allowed to continue their business, unless their licenses are forfeited
in accordance with law, until their death or voluntary retirement. In case of juridical persons, ten years after
the approval of the Act or until the expiration of term.
Citizens and juridical entities of the United States were exempted from this Act. provision for the forfeiture
of licenses to engage in the retail business for violation of the laws on nationalization, economic control
weights and measures and labor and other laws relating to trade, commerce and industry. provision against
the establishment or opening by aliens actually engaged in the retail business of additional stores or
branches of retail business
Lao Ichong, in his own behalf and behalf of other alien residents, corporations and partnerships affected by
the Act, filed an action to declare it unconstitutional for the ff: reasons: it denies to alien residents the equal
protection of the laws and deprives them of their liberty and property without due process the subject of
the Act is not expressed in the title the Act violates international and treaty obligations the provisions of
the Act against the transmission by aliens of their retail business thru hereditary succession
ISSUE: WON the Act deprives the aliens of the equal protection of the laws.

HELD: The law is a valid exercise of police power and it does not deny the aliens the equal protection of the
laws. There are real and actual, positive and fundamental differences between an alien and a citizen, which
fully justify the legislative classification adopted.

RATIO:
The equal protection clause does not demand absolute equality among residents. It merely requires that all
persons shall be treated alike, under like circumstances and conditions both as to privileges conferred and
liabilities enforced.

The classification is actual, real and reasonable, and all persons of one class are treated alike.

The difference in status between citizens and aliens constitutes a basis for reasonable classification in the
exercise of police power.

Official statistics point out to the ever-increasing dominance and control by alien of the retail trade. It is this
domination and control that is the legislature’s target in the enactment of the Act.

The mere fact of alienage is the root cause of the distinction between the alien and the national as a trader.
The alien is naturally lacking in that spirit of loyalty and enthusiasm for the Phil. where he temporarily stays
and makes his living. The alien owes no allegiance or loyalty to the State, and the State cannot rely on
him/her in times of crisis or emergency.

While the citizen holds his life, his person and his property subject to the needs of the country, the alien may
become the potential enemy of the State.

The alien retailer has shown such utter disregard for his customers and the people on whom he makes his
profit. Through the illegitimate use of pernicious designs and practices, the alien now enjoys a monopolistic
control on the nation’s economy endangering the national security in times of crisis and emergency.