B-1 Aquino, Nelsie Joyce T.

PEOPLE VS. ROSENTHAL

G.R. Nos. 46076 and 46077

Facts:

Jacob Rosenthal and Nicasio Osmeñawere charged and convicted for violation of Act No.
2581, or the Blue Sky Law, w/c protects the public against "speculative schemes which
have no more basis than so many feet of blue sky" and against the "sale of stock in
fly-by-night concerns, visionary oil wells, distant gold mines, and other like
fraudulent exploitations."

Issue: Whether the Act furnishes a sufficient standard for the Insular Treasurer to
follow in reaching a decision regarding the issuance or cancellation of a certificate
or permit.

Ruling: YES. The authority of the Insular Treasurer to cancel a certificate or permit
is expressly conditioned upon a finding that such cancellation "is in the public
interest.

Analysis: In view of the intention and purpose of Act No. 2581—to protect the public
against "speculative schemes which have no more basis than so many feet of blue sky"
and against the "sale of stock in fly-by-night concerns, visionary oil wells, distant
gold mines, and other like fraudulent exploitations",—we incline to hold that "public
interest" in this case is a sufficient standard to guide the Insular Treasurer in
reaching a decision on a matter pertaining to the issuance or cancellation of
certificates or permits.

Conclusion: The constitutionality of similar provisions has been so thoroughly

considered by this court that further discussion thereof is unnecessary. The
following cases abundantly establish the constitutionality of this provision.