Question & AnswerQ&A (Act No. 2868)
The primary purpose of Act No. 2868 is to penalize monopoly, hoarding, and speculation in palay, rice, and corn under extraordinary circumstances, regulate the distribution and sale of these commodities, and authorize the Governor-General to issue necessary rules and regulations for this purpose.
It is unlawful to destroy, limit, prevent or obstruct production or milling for price manipulation; to corner or hoard the products; to charge prices exceeding those fixed by the Act; to possess or sell quantities beyond limits fixed; and to conspire to limit or restrict production, importation, harvesting, milling, storage, or distribution to raise prices.
Monopoly or hoarding exists if: (1) a person not dealing or industrially using the product possesses quantities beyond personal/family use; (2) a merchant or agent possesses quantities beyond ordinary business requirements; (3) anyone withdraws the foodstuffs from the market to unreasonably raise or decrease prices, retaining possession or through others under arrangements. However, planters or cooperatives storing their own production are exempted.
Violations are punishable by a fine of up to five thousand pesos, or imprisonment of up to two years, or both, at the court's discretion. Company managers or administrators are criminally liable if the company or corporation violates the Act.
The Governor-General may fix the quantities that companies or individuals may acquire and set the maximum sale prices that industrial users or merchants may demand.
The Emergency Board is authorized to appropriate funds necessary to purchase and distribute palay, rice, or corn as per subsection (d) of Section 1, and to cover any losses incurred by government or its agents in these operations.
The Act appropriates two million pesos from any funds in the Insular Treasury not otherwise appropriated to increase the funds available to the Emergency Board for the year 1919.
The Act takes effect upon its approval.