MANILA ELECTRIC COMPANY, PETITIONER AND APPELLANT, VS. PASAY TRANSPORTATION CO., INC., RESPONDENT AND APPELLEE.

The
Manila Electric Company operates a street car line between Manila and
the neighboring town of Pasig, Rizal, which was constructed by its
predecessor in interest about twenty-five years ago, and on which has
been expended more than a million pesos. The respondent-appellee, the
Pasay Transportation Co., Inc., purchased the right of one Salen to
make one round trip daily between Montalban, Rizal, and Manila, which
route ran by Pasig and Marikina. By various applications of the Public
Service Commission, of which the Manila Electric Company usually was
not notified, the Pasay Transportation Co., Inc., now has an approved
schedule of seven round trips per day between Marikina and Montalban,
and forty-two authorized round trips between Marikina and Plaza Santa
Cruz, Manila, via Pasig with the right on special occasions and
holidays to dispatch their autobus on a five minute schedule. Manila
Electric Company believing that the Pasay Transportation Co., Inc., was
engaged in unfair and illegal competition with the Manila Electric
Company with special reference to the passengers from Pasig to Manila
brought complaint before the Public Service Commission, in paragraph”
six of which it was alleged:

“That the
respondent is competing with the electric cars of the complainant in”
that the auto-trucks of said respondent are carrying passengers between
Pasig and Manila, and vice-versa, at a lower rate of fare than the
Manila Electric Company and at a lower rate of fare than is authorized
by the schedule of rates of the Pasay Transportation Co. on file with
this Hon. Commission.” After hearing, the Public Service Commission
dismissed the complaint of the Manila Electric Company, and upon
refusal of a re-hearing petitioner brings the case here for review.

The schedule of rates of the Pasay Transportation Co., Inc., approved
and on file with the Public Service Commission fixes a minimum charge
of one and one-half centavos per kilometer per person. Without special
authority from the Public Service Commission respondent has been
charging for this trip 15 centavos, while the minimum fare of the
Manila Electric Company is 16 centavos before 7 a. m. and 18 centavos
from 7 a. m. to midnight. Petitioner claims that the distance from
Plaza Santa Cruz to Pasig (kilometer 11) is 14.5 kilometers. Respondent
claims that it is only 11.5 kilometers. We have made a careful scale of
the official map of which this court can take judicial notice and find
that the distance is 12.19 kilometers.

Although the company
admits charging a lower rate than a centavo and a half per kilometer
per person, the commission says they have not encountered any proof to
sustain this allegations of petitioner and that the charges of the
respondent as to this portion of the line are adjusted to the
authorized tariff. Our attention has not been called to where this
lower rate had been authorized by the commission which should only be
done after a hearing. This court does not desire to attempt to state
what a fair rate would be. Too many elements enter into rate making to
make it advisable for an appellate court to enter that field even if it
had the legal authority so to do. Under the Public Service Act rates
are submitted by the public carriers and are subject to approval by the
Public Service Commission. In fixing the rate of the bus service
between Pasig and Manila the right and investments of the Manila
Electric Company must be taken into consideration. Especially does
equity and fair dealing require this, as the bus companies could not
compete with the Manila Electric Company were it not for the
construction by the Electric Company of an expensive bridge across the
river at Pasig.

The virtual approval by the Public Service
Commission of a 15-centavo rate by its dismissal of the complaint in
this case not being reasonably sustained by the evidence must be set
aside. Until after further hearing the Pasay Transportation Co., Inc.,
should not be permitted to charge less than 18 centavos per person from
Pasig to Plaza Santa Cruz, with the right of the Public Service
Commission after full hearing of all parties interested to approve a
rate that will be fair and just to all concerned and which will not
engender ruinous competition. Costs against appellee.

Villamor, Villa-Real, Vickers, and Imperial, JJ., concur.