Case Digest (G.R. No. 15574)
Facts:
In Smith, Bell & Company (Ltd.) v. Joaquin Natividad, G.R. No. 15574 decided September 17, 1919, the petitioner, Smith, Bell & Co. (Ltd.), a Philippine corporation organized under local law but majority‐owned by British subjects, sought a writ of mandamus against respondent Joaquin Natividad, Collector of Customs at the Port of Cebu, to compel issuance of a certificate of Philippine registry for its motor vessel *Bato*, built in 1916 and intended for coastwise trade. Upon application at Cebu, the Collector refused registration on the sole ground that the corporation’s shareholders were not all citizens of the United States or the Philippine Islands. The petitioner thereupon filed an original petition in this Court. Respondent demurred for failure to state a cause of action. The parties invoked several statutes: the U.S. Shipping Acts of 1906 and 1908, the Jones Law (Act of August 29, 1916), and Philippine Act No. 2761 (February 23, 1918), which amended the AdmCase Digest (G.R. No. 15574)
Facts:
- Parties and Vessel
- Smith, Bell & Co. (Ltd.) is a Philippine corporation with a majority of British stockholders.
- It owns the motor vessel “Bato,” built in the Philippines in 1916, over fifteen tons gross, intended for inter-island transport.
- Procedural Background
- The petitioner applied to the Collector of Customs at Cebu for a Philippine registry certificate.
- The Collector refused because not all stockholders were citizens of the United States or the Philippine Islands.
- Smith, Bell & Co. filed a petition for a writ of mandamus to compel issuance of the certificate.
- Statutory Framework
- U.S. Shipping Acts:
- Act of April 29, 1908 (35 Stat. 70) authorizes the Philippine government to regulate inter-island commerce until U.S. Congress provides otherwise.
- Jones Law of August 29, 1916 expands civil rights guarantees (due process, equal protection) and grants general legislative power to the Philippine Legislature.
- Act No. 2761 (Feb. 23, 1918) amends the Administrative Code:
- Sec. 1172 defines “domestic ownership” to include corporations wholly composed of U.S. or Philippine citizens.
- Sec. 1176 empowers the Collector to inspect vessels and owners to ensure domestic ownership and legitimate trade.
- Sec. 1202 limits foreign officers and crew on coastwise vessels and imposes a tonnage tax for noncompliance.
Issues:
- Constitutional Authority
- Can the Philippine Legislature validly enact Act No. 2761 under its delegated power from Congress?
- Does denial of registry to corporations with alien stockholders exceed that power?
- Due Process and Equal Protection
- Does Act No. 2761 deprive Smith, Bell & Co. of property without due process?
- Does the classification based on stockholder citizenship deny equal protection of the laws?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)