The defendants, who were engaged in transporting passengers and goods by boat, charged the provincial government of Ilocos Norte 10 centavos per sack to unload 5,986 sacks of rice, amounting to 598.60 pesos. However, the defendants had a standing agreement with merchants to charge only 6 centavos per package. The prosecution argued the provincial government was overcharged by 359.16 pesos based on the normal 6 centavo rate. The defendants were found guilty of violating Act No. 98, which prohibited unreasonable discrimination by common carriers in their rates and services. The court upheld the conviction, finding no evidence the services rendered to different parties were different so as to justify charging different rates.
The defendants, who were engaged in transporting passengers and goods by boat, charged the provincial government of Ilocos Norte 10 centavos per sack to unload 5,986 sacks of rice, amounting to 598.60 pesos. However, the defendants had a standing agreement with merchants to charge only 6 centavos per package. The prosecution argued the provincial government was overcharged by 359.16 pesos based on the normal 6 centavo rate. The defendants were found guilty of violating Act No. 98, which prohibited unreasonable discrimination by common carriers in their rates and services. The court upheld the conviction, finding no evidence the services rendered to different parties were different so as to justify charging different rates.
The defendants, who were engaged in transporting passengers and goods by boat, charged the provincial government of Ilocos Norte 10 centavos per sack to unload 5,986 sacks of rice, amounting to 598.60 pesos. However, the defendants had a standing agreement with merchants to charge only 6 centavos per package. The prosecution argued the provincial government was overcharged by 359.16 pesos based on the normal 6 centavo rate. The defendants were found guilty of violating Act No. 98, which prohibited unreasonable discrimination by common carriers in their rates and services. The court upheld the conviction, finding no evidence the services rendered to different parties were different so as to justify charging different rates.
The defendants, who were engaged in transporting passengers and goods by boat, charged the provincial government of Ilocos Norte 10 centavos per sack to unload 5,986 sacks of rice, amounting to 598.60 pesos. However, the defendants had a standing agreement with merchants to charge only 6 centavos per package. The prosecution argued the provincial government was overcharged by 359.16 pesos based on the normal 6 centavo rate. The defendants were found guilty of violating Act No. 98, which prohibited unreasonable discrimination by common carriers in their rates and services. The court upheld the conviction, finding no evidence the services rendered to different parties were different so as to justify charging different rates.
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U.S. v.
Quinajon and Quitoriano
G.R. No. L-8686, July 30, 1915 Johnson, J.: FACTS: Defendants Pascual Quinajon and Eugenio Quitoriano have been engaged for more than four years in the transportation of passengers and merchandise in the port of Currimao by means of virayes. They, by means of their virayes and employees, unloaded 5,986 sacks of rice belonging to the provincial government of Ilocos Norte from Manila and demanded from the provincial treasurer for the unloading of each one 10 centavos which amounted to P598.60. The prosecuting attorney of the Province of Ilocos Norte filed a complaint against the defendants stating that the provincial government of Ilocos Norte suffered damaged in the sum of 359.16, inasmuch as it should have paid only 239.44, in accordance with the said normal rate of 6 centavos for each package. The provincial fiscal presented witnesses to prove that defendants entered into a special contract with certain merchants, under and by virtue of the terms of which they charged and collected, for loading merchandise in said port, the sum of 6 centavos for each package, without reference to its size or weight. Defendants were charged of violating Act No. 98 of the Civil Commission. Said Act No. 98 is "An Act to regulate commerce in the Philippine Islands." Its purpose, so far as it is possible, is to compel common carriers to render to all persons exactly the same or analogous service for exactly the same price, to the end that there may be no unjust advantage or unreasonable discrimination. It applies to persons or corporation engaged as common carriers of passengers or property. A common carrier is a person or corporation whose regular business is to carry passengers or property for all persons who may choose to employ and renumerate him. A common carrier is a person or corporation who undertakes to carry goods or persons for hire. The appellants admit that they are common carriers. They were found guilty and sentenced to pay a fine of P200 and costs, and to return to the provincial government of the Province of Ilocos Norte the sum of P359.16. From that sentence each of the defendants appealed to this court. ISSUE: Whether or not the defendants and appellants have violated Act No. 98. HELD: YES. It will be noted that the law requires common carriers to carry for all persons, either passengers or property, for exactly the same charge for a like or contemporaneous service in the transportation of like kind of traffic under substantially similar circumstances or conditions. The law prohibits common carriers from subjecting any person, etc., or locality, or any particular kind of traffic, to any undue or unreasonable prejudice or discrimination whatsoever. The law does not require that the same charge shall be made for the carrying of passengers or property, unless all the conditions are alike and contemporaneous. It is not believed that the law prohibits the charging of a different rate for the carrying of passengers or property when the actual cost of handling and transporting the same is different. It is not believed that the law intended to require common carriers to carry the same kind of merchandise, even at the same price, under different and unlike conditions and where the actual cost is different. It is when the price charged is for the purpose of favoring persons or localities or particular kinds of merchandise, that the law intervenes and prohibits. It is favoritism and discrimination which the law prohibits. The difference in charge must not be made to favor one merchant, or shipper, or locality, to the disadvantage of another merchant, or shipper, or locality. If the services are alike and contemporaneous, discrimination in the price charged is prohibited. In the case at bar, there is no proof that the conditions were different. There is no proof that the services rendered by the defendants for the different parties were unlike or even not contemporaneous. There is no pretense that it actually cost more to handle the rice for the province than it did for the merchants with whom the special contracts were made. From the evidence it would seem that there was a clear discrimination made against the province. Discrimination is the thing which is specifically prohibited and punished under the law.