Facts:

The case involves Bacolod Ice and Cold Storage Co., Inc. as the petitioner and Negros Ice and Cold Storage Co., Inc. as the respondent. The events leading to the case date back to May 8, 1952, when Negros Ice and Cold Storage Co., Inc. applied to the Public Service Commission (PSC) for a certificate of public convenience to sell ice not just within Bacolod City but throughout the province of Occidental Negros. For approximately 22 years prior, Negros Ice had operated an ice plant with a daily capacity of 5 tons, which was increased to 15 tons as of September 26, 1950. Bacolod Ice and Cold Storage Co., Inc., a competitor, was authorized to sell its production throughout Occidental Negros except Bacolod City, and later gained permission to operate within Bacolod City. Several other local operators, such as San Carlos Electric Co. and Insular Lumber Co., also filed oppositions against the application based on claims of efficient service within their territories.

The PSC initially

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Facts:

Background and Authorization

• The Negros Ice & Cold Storage Co., Inc. had a certificate of public convenience authorizing it to operate an ice plant in Bacolod City for nearly 22 years.
• Initially, the plant had a daily productive capacity of 5 tons, which was increased to 15 tons on September 26, 1950, as evidenced in the certificate (Case No. 58242).

Application for Expanded Service

• On May 8, 1952, the operator filed an application with the Public Service Commission requesting authorization to sell its ice production not only in Bacolod City but throughout Occidental Negros.
• The application intended to extend the service area beyond its original authorized territory.

Opposition by Other Operators

• Several local ice operators, already granted certificates of public convenience for their respective territories, opposed the expansion.
• The Bacolod Ice & Cold Storage Co., Inc. had an existing ice plant in Bacolod City with authorization to sell in Occidental Negros, initially excluding Bacolod City and subsequently including it.
• The San Carlos Electric Co. was an established operator in San Carlos and Calatrava with a 5-ton plant.
• The Insular Lumber Co. operated in Fabrica and Paraiso.
• Jesus Campos, with service in San Enrique and other nearby towns (La Castellana, La Carlota, Pontevedra, Valladolid, Pulupandan, and Murcia), opposed the application.
• Elpidio Javellana, operating a 10-ton plant in Cadiz and other areas including Manapla, Fabrica, Sagay, and Escalante, raised concerns.
• Additional separate oppositions were filed by operators in Manapla, Fabrica, Sagay, and Escalante, arguing that their efficient service in their authorized territories negated the need for the applicant’s additional market presence.

Proceedings and Hearings

• The hearing on the opposition began in Manila before the Public Service Commission and was later continued before the Municipal Judge of Bacolod City, upon motion by the oppositors.
• Evidence was presented primarily by the Insular Lumber Co. and the Bacolod Ice & Cold Storage Co., Inc., supporting the contention that there was sufficient ice service in the contested areas.
• On August 23, 1952, the Commission issued a provisional permit allowing the applicant to sell ice in Bacolod City and other towns of Occidental Negros—with the exception of Fabrica—subject to future alteration or revocation.

Final Decision by the Public Service Commission

• On August 28, 1953, following the hearings and consideration of oral and documentary evidence, the Commission rendered its judgment.
• The applicant was authorized to sell its ice production in all towns within Occidental Negros except Fabrica, Cadiz, and Victorias.
• The provisional permit previously granted on August 23, 1952, was revoked and replaced by this final decision.
• The Bacolod Ice & Cold Storage Co., Inc. brought the matter for judicial review, challenging the Commission’s findings and authorization.

Evidence and Testimonies Presented

• Evidence for Bacolod Ice & Cold Storage (opponent):
• Witnesses testified regarding the regular use and availability of ice, claiming that the opposition’s service was consistent and adequate.
• The manager testified on losses suffered by the company during specific periods and highlighted alleged rate violations by the applicant.
• Evidence for the applicant (Negros Ice & Cold Storage):
• Testimonies from fishing boat operators and salesmen indicated a persistent shortage of ice service in several towns of Occidental Negros.
• Evidence was presented showing that additional ice supply would remedy the inadequacies in towns where the oppositor’s service was irregular or nonexistent.

Issue:

• Whether the expansion of the service area to include the towns of Occidental Negros (outside Bacolod City) was warranted in view of the existing ice service provided by the established operators.
• Whether the evidence sufficiently demonstrated a public need for additional ice supply in various towns, contrary to the claim of adequate service by the opposed companies.
• Whether the alleged losses incurred by the opposition (Bacolod Ice & Cold Storage Co., Inc.) were directly attributable to the competition arising from the expansion or to external factors such as typhoons and other economic conditions.

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

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