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F.C. FISHER vs.

YANGCO STEAMSHIP COMPANY


G.R. No. L-8095 March 31, 1915
Carson, J.:

Facts: The board of Yangco Steamship Co. adopted a resolution which was ratified
by the stockholders declaring classes of merchandise which are not to be carried by
the vessels of the company and prohibiting the employees to carry dynamite,
powder or other explosives. The Collector of Customs suspended the issuance of
clearances for the vessels unless they carry the explosives. Fisher, a stockholder of
YSC, filed a petition for prohibition.

Issue: Whether or not the refusal of the board of YFC to accept for carriage
"dynamite, powder or other explosives" from any and all shippers who may offer
such explosives for carriage can be held to be a lawful act.

Held: No. In construing Act 98 for the alleged violation, the test is whether the
refusal of YSC to carry the explosives without qualification or conditions may have
the effect of subjecting any person or locality or the traffic is such explosives to an
unduly unreasonable or unnecessary prejudice or discrimination. Common carriers
in this jurisdiction cannot lawfully decline to accept a particular class of goods
unless it appears that for some sufficient reason the discrimination for such is
reasonable and necessary. YSC has not met those conditions.
The nature of the business of a common carrier as a public employment is
such that it is within the power of the State to impose such just regulations in the
interest of the public as the legislator may deem proper.