GREGORIO ROBLES, PETITIONER, VS. CONCEPCION FERNANDO BLAYLOCK, RESPONDENT.

Petitioner seeks to set aside a judgment rendered by the the Public
Service Commission on 30 September 1960 granting to the respondent, the
applicant therein, a certificate of public convenience to operate for
fifteen (15) years five (5) units of taxicabs of different makes,
without fixed route and regular termini within the municipality of
Olongapo, Zambales, and its suburbs, and from the said municipality to
any point in the island of Luzon directly accessible to motor vehicle
traffic and vice-versa and subject to the terms and conditions
enumerated in the judgment (Case No. 130541).

Gregorio Robles, the petitioner, is a holder of a certificate of
public convenience to operate a taxi service of five (5) units in
Olongapo, Zambales, granted him, on 14 December 1959 (Case No. 128020).
On 16 February 1960, he filed an application for an increase of five
(5) units to his authorized equipment (Case No. 130299). On 24 February
1960, Concepcion Fernando Blaylock, the respondent, filed with the
Public Service Commission an application dated 22 February 1960 for a
certificate of public convenience to operate a taxicab service of ten
(10) units within the municipality of Olongapo and its suburbs alleging
that public convenience required such certificate (Case No. 130541). On
25 February 1960, the Public Service Commission set the case of
petitioner for hearing on 23 March 1960 (Case No. 130299) and that of
the respondent on 24 March 1960. On the last date the petitioner filed
his objection to the application of the respondent claiming that the
granting of the certificate prayed for would result in or bring about
ruinous competition; that there was no public necessity and convenience
justifying such grant; that the applicant was not financially able to
operate and maintain the service applied for; and that should the
Commission find that there was such public necessity and convenience
he, the first operator of taxicab in the line applied for, should be
given preference (Case No. 130541; p. 40 Rec). On 30 March 1960, the
application of petitioner for an increase of five (5) units was granted
(Case No. 130299). On 4 April 1960, or five days after the application
of the petitioner for an increase of five (5) units had been granted,
the petitioner applied for another increase of ten (10) units (Case No.
131499). On 1 July 1960, the petition being uncontested was granted,
but for an increase of five (5) units instead of ten (10) units applied
for.

At the hearing before Atty. Isidro L. Tayag of the Commission on 24
March and 9 May 1960, Concepcion Fernando Blaylock, then applicant and
now respondent, and her witnesses Pacita de Guzman and Sarah Vivian
Blaylock, testified in support of her application that there was need
of more units in the line applied for.

Israel Gregorio, Gabriel Gabriel, Dominga Manlapaz, Cristobal
Quarezo and Alfonso Gutierrez, witnesses for the opponent (now
petitioner), testified that they had had no difficulty in locating or
finding a taxicab whenever they needed one in Olongapo and that the
people in the neighborhood preferred to ride in jeepneys or buses
because they are cheaper.

On 15 August 1960, Gregorio Robles, the petitioner, again filed
another application for an increase of ten (10) units which had not
then been heard (Case No. 60766).

On 30 September 1960, the Public Service Commission rendered judgment en banc
overruling the objection of the petitioner and granting to the
applicant, the herein respondent, a certificate of public convenience
as stated at the beginning of this opinion (Case No. 130541).

On 27 October 1960, Gregorio Robles filed in this Court a petition
for review and stay of the execution of the judgment to be reviewed
rendered in Case No. 130541 (G.R. No. L-17629); and, upon the filing of
a surety bond for five thousand pesos (P5.000.00), on 2 November 1960
this Court stayed the execution of the judgment to be reviewed.

The errors claimed by the petitioner to have been committed by the Public Service Commission are –

I

The Public Service Commission erred in granting to
respondent a certificate of public convenience to operate a taxicab
service in Olongapo, Zambales to all points of Luzon as there is no
evidence to reasonably support the granting of said certificate of
public convenience.

II

The Public Service Commission erred in not taking
into consideration its ruling in the decision in Case No. 131499 of
Gregorio Robles dated July 1, 1960.

III

The Public Service Commission erred in granting a territory of operation larger than that applied for.

The judgment of the Public Service Commission under review states in part:

Applicant’s evidence consists of her testimony and
that of her witnesses. Mrs. Blaylock testified on the necessity of more
taxi cabs in Olongapo, that there are many passengers traveling within
the town especially sailors from ships docked at the U.S. Naval base.
She claims at the time of her testimony that there are only 5 taxicabs
presently operating in Olongapo and the town has from 10 to 16
districts, and that there are seven (7) theaters, three (3) high
schools and more than 100 nightclubs. Applicant introduced Exhibit E-1
resolution No. 102 of the Provincial Board of Zambales endorsing the
present application for ten (10) units and also mentioned the fact that
the residents of Olongapo are around 65,(X)0 excluding the personnel of
the U.S. Navy.

As to the financial capacity of the applicant,
she said she has ten (10) TPU jitneys operating in Olongapo, the total
worth of which is around P50,000. She has a checking account with the
Prudential Bank as of March 23, 1960 more than P8,000.00, one house in
Olongapo with an assessed value of P7,000.00, the market value of which
is more or less P20,000.00, and she has ten (10) automobiles used as
taxis inside the base.

Applicant’s witness, Pacita T. de
Guzman, directress of a vocational school and actually a councilor of
the municipality of Olongapo, mentioned in her affidavit and testimony
that there are 100 restaurants, 7 hotels, 1 junior college, 7
elementary schools, 2 cockpits and many civic organizations like the
Rotary, Jaycee, Knight of Columbus, Masonic Lodge, 2 Fleet Reserve
Associations, American Legion, Toast master Club, Gray Ladies, Catholic
Women’s League, the municipal and the provincial government offices and
the BIR Branch etc., and that the population of Olongapo is 45,253 and
this does not include the population of the officers and men and the
civilian component of the U.S. Naval base at Subic Bay which are
estimated to be around 8,000. A big portion of these people utilize
taxicabs and they need this kind of conveyance. The population of this
town increases considerably when ships are present in the Naval base.

Witnesses Israel Gregoriof Gabriel Gabriel, Dominga Manlapaz and
Alfonso Gutierrez of the oppositor testified that they have no
difficulty finding a taxicab whenever they need one in Olongapo; that
some people prefer jitneys and auto- calesas because they are cheaper,
and more than 200 TPU units are operating between the Gate and Sta.
Rita. Oppositor Gregorio Eoblcs claimed that he is actually operating
15 units and these are sufficient to cope with the needs of the
traveling public in Olongapo. But again, last August 15, 1960,
oppositor Gregorio Robles in Case No. 6O-766 filed another application
for an increase of units by the addition of 10 taxicabs. This new
application has not yet been heared. The application of Mrs. Blaylock
was filed on February 24, 1960 at the time when Robles had only five
(5) units for operation.

After an examination of the evidence presented by both parties, the Public Service Commission held—

x x x we find merit in the claims of the applicant
that there is need for more taxicab facilities in Olongapo (Zambales)
and that the service now existing is not sufficient for the needs of
the public. There is a showing that there are many TPU jitneys, but it
is a fact that the service of these jitneys could not serve the purpose
of a passenger who needs a conveyance for his own use like a taxicab
service for his business and social trip.

In view of the
foregoing considerations and finding that applicant is a Filipino
citizen and financially qualified to operate a taxicab service, we
believe the granting of this application will promote public
convenience and will benefit the traveling public. The opposition filed
against this application is accordingly overruled, and a certificate of
public convenience to operate five (5) units in Olongapo (Zambales) is
granted to applicant Concepcion Fernando Blaylock. x x x.

The findings of the Public Service Commission are supported by the evidence.

The protection of or preference for a prior operator over a newcomer
can not be invoked by the petitioner, because before the petitioner was
granted a certificate of public convenience to operate a taxicab
service in Olongapo, Zambales, the respondent had been operating a taxi
cab service, known then as Base taxi under a grant of U.S. naval
authorities in the naval reservation including Olongapo, before its
turn over by the U. S. Government to the Republic of the Philippines.

If public need and convenience demand or require the service; if the
service to be rendered applied for would not result in or bring about
ruinous competition; and if the ability of the applicant for service to
satisfy public need and convenience is shown, a competition of two
services and not a monopoly would redound to the benefit of the
community where the service is to be rendered.

As to exclusive right of operating a taxicab service which has no
fixed schedule over any certain route or between certain points, this
Court in the case of Carmelo and Orioles vs. Monserrat, 55 Phil. 644,
held —

“In the granting or refusal of a certificate of
public convenience, all things considered, the question is what is for
the best interest of the public. Tested by that rule, it is hard to
conclude how it would be for the best interest of the public to have
one taxicab service only, and how the public would be injured by the
granting of the certificate in question, for it must be conceded that
two companies in the field would stimulate the business, and that the
public would much sooner and much easier become educated in the use of
the taxi.”

The Public Service Commission is granting to the respondent a
certificate of public convenience comprising of a territory larger than
that applied for committed an error. Her application in Case No. 130541
alleges that respondent Blaylock desires to establish a taxicab service
in the municipality of Olongapo, Zambales. Her evidence does not show
that she intended to operate the taxicab service beyond Olongapo town
and from said municipality to any point in Luzon Island accessible to
motor vehicle traffic and vice-versa.

Modified as to the area of operation of the taxicab service granted
to the respondent which must be within Olongapo, ZambaJles, and its
suburbs, the rest of the judgment appealed from is affirmed, without
pronouncement as to costs.

Bengzon, C. J., Bautista Angelo, Labrador, Concepcion, Reyes J.B.L., Barrera, Paredes, Dizon, Regala and Makalintal, JJ., concur.