Title
Board regulating public-service rates in Philippines
Law
Act No. 1779
Decision Date
Oct 12, 1907
The Philippine Jurisprudence case explores the creation and powers of the Board of Rate Regulation, which is responsible for regulating rates charged by public-service corporations in the Philippines, and the scope and application of the law that established it.
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Location and Conduct of Meetings

  • Board's main office is in Manila but may hold meetings anywhere in the Philippine Islands.
  • Flexibility in conducting proceedings to ensure efficiency and justice.

Official Seal and Authentication

  • Board possesses a seal inscribed with "Board of Rate Regulation."
  • All official acts, orders, and certificates are authenticated by this seal.

Quorum and Hearings

  • Majority of the Board members constitute a quorum.
  • Investigations or hearings may be conducted by one or more members with subsequent Board approval.

Supervisory Powers Over Public-Service Corporations

  • Board has authority to supervise, fix, revise, regulate, reduce, or increase rates charged by public-service corporations.
  • Duty to ensure corporations’ compliance with Board orders and applicable laws.

Information and Reports from Public-Service Corporations

  • Power to demand necessary information and full reports under oath.
  • Failure to comply leads to a penalty of two hundred pesos per day of default.

Examination of Witnesses and Evidence

  • Board members may administer oaths and examine witnesses without strict observance of technical evidence rules.
  • False testimony or affidavit before the Board constitutes perjury.

Issuance and Enforcement of Subpoenas

  • Board or members may issue subpoenas and subpoenas duces tecum.
  • Process served by legally authorized officers akin to court processes.

Court Assistance and Contempt Powers

  • Courts may compel compliance with subpoenas and enforce attendance or production of evidence.
  • Disobedience may be punished as contempt of court.

Subpoenas from Courts

  • Courts can issue subpoenas for Board proceedings upon application by Board members.
  • Noncompliance can lead to penalties similar to court subpoena disobedience.

Witness Compensation

  • Witnesses subpoenaed by the Board receive fees and mileage like Court of First Instance witnesses.
  • Payment responsibilities differ depending on which party summons the witness.

Testimony by Deposition

  • Board may order testimony to be taken by deposition according to the Civil Procedure Code.

Immunity from Self-Incrimination

  • No person can refuse to testify or produce evidence on grounds of self-incrimination in Board or court proceedings under this Act.
  • Immunity from prosecution except for perjury is granted to such witnesses.

Penalties for Noncompliance with Board Orders

  • Refusal to attend, testify, or produce documents results in fines or imprisonment.

Penalties for Obstruction and Misconduct

  • Fines or imprisonment for obstructing the Board or behaving improperly during its proceedings.

Power to Determine and Enforce Just and Reasonable Rates

  • Board determines just and reasonable rates, regulations, and practices after full hearing.
  • May issue cease and desist orders and compel compliance.

Formality and Effectivity of Board Orders

  • Orders are in writing, certified under the Board seal, and admissible as prima facie evidence in courts.
  • Orders take effect after a reasonable period (minimum 30 days) and last up to two years unless altered.

Service and Suspension of Board Orders

  • Orders served personally or by registered mail to corporations.
  • Board authorized to suspend or modify orders with due notice.
  • Corporations obligated to comply while orders are in effect.

Penalties for Violation of Board Orders

  • Forfeiture of 2,000 to 10,000 pesos for knowing failure to comply with orders.
  • Each violation and day of continuing violation considered a separate offense.

Rehearings and Appeals within the Board

  • Interested parties may apply for rehearing.
  • Rehearings proceed with similar formalities to original hearings.
  • Revisions to orders possible post-rehearing without suspending compliance unless ordered.

Penalties for Violations and Enforcement

  • Forfeitures up to 10,000 pesos for violations, failure to comply, or overcharges.
  • Additional fines/imprisonment for officers aiding violations.
  • Burden of proof lies with the corporation claiming Board actions are unjust or unreasonable.
  • Attorney-General represents the Government and Board.

Reporting to Legislature

  • Annual report to the Philippine Legislature including copies of orders and recommendations.

Expenses of the Board

  • Expenses paid from appropriations upon Governor-General’s approval.

Scope and Definitions

  • Applies to all public-service corporations (domestic or foreign) operating in the Philippines.
  • Includes railroads, telegraph/telephone companies, utilities, carriers, and those using streets/public ways.
  • Excludes municipal corporations and government-owned/control entities.
  • "Rates" include fares, tolls, charges, and compensation.

Government Rights and Legislative Expediting

  • The Act does not impair government rights in franchises.
  • The Act’s passage expedited due to public necessity.

Effective Date

  • The Act takes effect immediately upon passage.

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