TRANSPO CLASS #2
1, 2, 3, 4, and 5 of the preceding article, if
[1987 CONSTITUTION] Art XII. Section 11. No franchise, certificate, or any other form of authorization
for the operation of a public utility shall be granted except to citizens of the Philippines or to
corporations or associations organized under the laws of the Philippines, at least sixty per centum of
whose capital is owned by such citizens; nor shall such franchise, certificate, or authorization be
exclusive in character or for a longer period than fifty years. Neither shall any such franchise or right be
granted except under the condition that it shall be subject to amendment, alteration, or repeal by the
Congress when the common good so requires. The State shall encourage equity participation in public
utilities by the general public. The participation of foreign investors in the governing body of any public
utility enterprise shall be limited to their proportionate share in its capital, and all the executive and
managing officers of such corporation or association must be citizens of the Philippines.
SECTION 4
Common Carriers (n)
SUBSECTION 1. General Provisions
Article 1732. Common carriers are persons, corporations, firms or associations engaged in the
business of carrying or transporting passengers or goods or both, by land, water, or air, for
compensation, offering their services to the public.
Article 1733. Common carriers, from the nature of their business and for reasons of public policy, are
bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the
passengers transported by them, according to all the circumstances of each case.
Such extraordinary diligence in the vigilance over the goods is further expressed in articles 1734, 1735,
and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of the passengers is further
set forth in articles 1755 and 1756.
SUBSECTION 2. Vigilance Over Goods
Article 1734. Common carriers are responsible for the loss, destruction, or deterioration of the goods,
unless the same is due to any of the following causes only:
(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;
(2) Act of the public enemy in war, whether international or civil;
(3) Act or omission of the shipper or owner of the goods;
(4) The character of the goods or defects in the packing or in the containers;
(5) Order or act of competent public authority.
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Article 1735. In all cases other than those mentioned in Nos.
the goods are lost, destroyed or deteriorated, common carriers are presumed to have been at fault or to
have acted negligently, unless they prove that they observed extraordinary diligence as required in
article 1733.
Article 1736. The extraordinary responsibility of the common carrier lasts from the time the goods are
unconditionally placed in the possession of, and received by the carrier for transportation until the same
are delivered, actually or constructively, by the carrier to the consignee, or to the person who has a right
to receive them, without prejudice to the provisions of article 1738.
Article 1737. The common carrier's duty to observe extraordinary diligence over the goods remains in
full force and effect even when they are temporarily unloaded or stored in transit, unless the shipper or
owner has made use of the right of stoppage in transitu.
Article 1738. The extraordinary liability of the common carrier continues to be operative even during
the time the goods are stored in a warehouse of the carrier at the place of destination, until the
consignee has been advised of the arrival of the goods and has had reasonable opportunity thereafter
to remove them or otherwise dispose of them.
Article 1739. In order that the common carrier may be exempted from responsibility, the natural
disaster must have been the proximate and only cause of the loss. However, the common carrier must
exercise due diligence to prevent or minimize loss before, during and after the occurrence of flood,
storm or other natural disaster in order that the common carrier may be exempted from liability for the
loss, destruction, or deterioration of the goods. The same duty is incumbent upon the common carrier in
case of an act of the public enemy referred to in article 1734, No. 2.
Article 1740. If the common carrier negligently incurs in delay in transporting the goods, a natural
disaster shall not free such carrier from responsibility.
Article 1741. If the shipper or owner merely contributed to the loss, destruction or deterioration of the
goods, the proximate cause thereof being the negligence of the common carrier, the latter shall be
liable in damages, which however, shall be equitably reduced.
Article 1742. Even if the loss, destruction, or deterioration of the goods should be caused by the
character of the goods, or the faulty nature of the packing or of the containers, the common carrier must
exercise due diligence to forestall or lessen the loss.
Article 1743. If through the order of public authority the goods are seized or destroyed, the common
carrier is not responsible, provided said public authority had power to issue the order.
Article 1744. A stipulation between the common carrier and the shipper or owner limiting the liability of
the former for the loss, destruction, or deterioration of the goods to a degree less than extraordinary
diligence shall be valid, provided it be:
(1) In writing, signed by the shipper or owner;
(2) Supported by a valuable consideration other than the service rendered by the common
carrier; and
 (3) Reasonable, just and not contrary to public policy. Article 1752. Even when there is an agreement limiting the liability of the common carrier in the
vigilance over the goods, the common carrier is disputably presumed to have been negligent in case of
their loss, destruction or deterioration.
Article 1745. Any of the following or similar stipulations shall be considered unreasonable, unjust and
contrary to public policy:
Article 1753. The law of the country to which the goods are to be transported shall govern the liability
of the common carrier for their loss, destruction or deterioration.
(1) That the goods are transported at the risk of the owner or shipper;

Article 1754. The provisions of articles 1733 to 1753 shall apply to the passenger's baggage which is
(2) That the common carrier will not be liable for any loss, destruction, or deterioration of the
not in his personal custody or in that of his employee. As to other baggage, the rules in articles 1998
goods;
and 2000 to 2003 concerning the responsibility of hotel-keepers shall be applicable.

(3) That the common carrier need not observe any diligence in the custody of the goods;
SUBSECTION 3. Safety of Passengers

(4) That the common carrier shall exercise a degree of diligence less than that of a good
Article 1755. A common carrier is bound to carry the passengers safely as far as human care and
father of a family, or of a man of ordinary prudence in the vigilance over the movables
foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the
transported;
circumstances.

(5) That the common carrier shall not be responsible for the acts or omission of his or its
Article 1756. In case of death of or injuries to passengers, common carriers are presumed to have
employees;
been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence
as prescribed in articles 1733 and 1755.
(6) That the common carrier's liability for acts committed by thieves, or of robbers who do not
act with grave or irresistible threat, violence or force, is dispensed with or diminished;
Article 1757. The responsibility of a common carrier for the safety of passengers as required in articles
1733 and 1755 cannot be dispensed with or lessened by stipulation, by the posting of notices, by
(7) That the common carrier is not responsible for the loss, destruction, or deterioration of statements on tickets, or otherwise.
goods on account of the defective condition of the car, vehicle, ship, airplane or other
equipment used in the contract of carriage.
Article 1758. When a passenger is carried gratuitously, a stipulation limiting the common carrier's
liability for negligence is valid, but not for wilful acts or gross negligence.
Article 1746. An agreement limiting the common carrier's liability may be annulled by the shipper or
owner if the common carrier refused to carry the goods unless the former agreed to such stipulation.
The reduction of fare does not justify any limitation of the common carrier's liability.

Article 1747. If the common carrier, without just cause, delays the transportation of the goods or
Article 1759. Common carriers are liable for the death of or injuries to passengers through the
changes the stipulated or usual route, the contract limiting the common carrier's liability cannot be
negligence or wilful acts of the former's employees, although such employees may have acted beyond
availed of in case of the loss, destruction, or deterioration of the goods.
the scope of their authority or in violation of the orders of the common carriers.

Article 1748. An agreement limiting the common carrier's liability for delay on account of strikes or riots
This liability of the common carriers does not cease upon proof that they exercised all the diligence of a
is valid.
good father of a family in the selection and supervision of their employees.

Article 1749. A stipulation that the common carrier's liability is limited to the value of the goods
Article 1760. The common carrier's responsibility prescribed in the preceding article cannot be
appearing in the bill of lading, unless the shipper or owner declares a greater value, is binding.
eliminated or limited by stipulation, by the posting of notices, by statements on the tickets or otherwise.

Article 1750. A contract fixing the sum that may be recovered. by the owner or shipper for the loss,
Article 1761. The passenger must observe the diligence of a good father of a family to avoid injury to
destruction, or deterioration of the goods is valid, if it is reasonable and just under the circumstances,
himself.
and has been fairly and freely agreed upon.

Article 1762. The contributory negligence of the passenger does not bar recovery of damages for his
Article 1751. The fact that the common carrier has no competitor along the line or route, or a part
death or injuries, if the proximate cause thereof is the negligence of the common carrier, but the amount
thereof, to which the contract refers shall be taken into consideration on the question of whether or not
of damages shall be equitably reduced.
a stipulation limiting the common carrier's liability is reasonable, just and in consonance with public
policy.
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Article 1763. A common carrier is responsible for injuries suffered by a passenger on account of the
wilful acts or negligence of other passengers or of strangers, if the common carrier's employees
through the exercise of the diligence of a good father of a family could have prevented or stopped the
act or omission.
SUBSECTION 4. Common Provisions
Article 1764. Damages in cases comprised in this Section shall be awarded in accordance with Title
XVIII of this Book, concerning Damages. Article 2206 shall also apply to the death of a passenger
caused by the breach of contract by a common carrier.
Article 1765. The Public Service Commission may, on its own motion or on petition of any interested
party, after due hearing, cancel the certificate of public convenience granted to any common carrier that
repeatedly fails to comply with his or its duty to observe extraordinary diligence as prescribed in this
Section.
Article 1766. In all matters not regulated by this Code, the rights and obligations of common carriers
shall be governed by the Code of Commerce and by special laws.
COMMONWEALTH ACT No. 65
IN ACT TO DECLARE THAT PUBLIC ACT NUMBERED FIVE HUNDRED AND TWENTY-ONE,
KNOWN AS "CARRIAGE OF GOODS BY SEA ACT," ENACTED BY THE SEVENTY-FOURTH
CONGRESS OF THE UNITED STATES, BE ACCEPTED, AS IT IS HEREBY ACCEPTED BY THE
NATIONAL ASSEMBLY
WHEREAS, the Seventy-fourth Congress of the United States enacted Public Act Numbered Five
hundred and twenty-one, entitled:
"Carriage of Goods by Sea Act";
WHEREAS, the primordial purpose of the said Acts is to bring about uniformity in ocean bills of lading
and to give effect to the Brussels Treaty, signed by the United States with other powers;
WHEREAS, the Government of the United States has left it to the Philippine Government to decide
whether or not the said Act shall apply to carriage of goods by sea in foreign trade to and from
Philippine ports;
WHEREAS, the said Act of Congress contains advanced legislation, which is in consonance with
modern maritime rules and the practices of the great shipping countries of the world;
WHEREAS, shipping companies, shippers, and marine insurance companies, and various chambers of
commerce, which are directly affected by such legislation, have expressed their desire that said
Congressional Act be made applicable and extended to the Philippines; therefore,
Be it enacted by the National Assembly of the Philippines:
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Section 1. That the provisions of Public Act Numbered Five hundred and twenty-one of the Seventy-
fourth Congress of the United States, approved on April sixteenth, nineteen hundred and thirty-six, be
accepted, as it is hereby accepted to be made applicable to all contracts for the carriage of goods by
sea to and from Philippine ports in foreign trade: Provided, That nothing in the Act shall be construed as
repealing any existing provision of the Code of Commerce which is now in force, or as limiting its
application.
Section 2. This Act shall take effect upon its approval.
Approved: October 22,1936.
An Act Relating to the Carriage of Goods by Sea.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress
assembled, That every bill of landing or similar document of title which is evidence of a contract for the
carriage of goods by sea to or from ports of the United States, in foreign trade, shall have effect subject
to the provisions of the Act.
TITLE I
Section 1. When used in this Act —
(a) The term "carrier" includes the owner or the charterer who enters into a contract of
carriage with a shipper.
(b) The term "contract of carriage" applies only to contracts of carriage covered by a bill of
lading or any similar document of title, insofar as such document relates to the carriage of
goods by sea, including any bill of lading or any similar document as aforesaid issued under
or pursuant to a charter party from the moment at which such bill of lading or similar
document of title regulates the relations between a carrier and a holder of the same.
(c) The term "goods" includes goods, wares, merchandise, and articles of every kind
whatsoever, except live animals and cargo which by the contract of carriage is stated as
being carried on deck and is so carried.
(d) The term "ship" means any vessel used for the carriage of goods by sea.
(e) The term "carriage of goods" covers the period from the time when the goods are loaded
on to the time when they are discharged from the ship.
RISKS
Section 2. Subject to the provisions of section 6, under every contract of carriage of goods by sea, the
carrier in relation to the loading handling, stowage, carriage, custody, care, and discharge of such
goods, shall be subject to the responsibilities and liabilities and entitled to the rights and immunities
hereinafter set forth.
 RESPONSIBILITIES AND LIABILITIES
Section 3. (1) The carrier shall be bound, before and at the beginning of the voyage, to exercise due
diligence to —
(a) Make the ship seaworthy;
(b) Properly man, equip, and supply the ship;
(c) Make the holds, refrigerating and cooling chambers, and all other parts of the
ship in which goods are carried, fit and safe for their reception carriage and
preservation.
(2) The carrier shall properly and carefully load, handle, stow, carry, keep, care for, and
discharge the goods carried.
(3) After receiving the goods into his charge the carrier, or the master or agent of the carrier,
shall, on demand of the shipper, issue to the shipper a bill of lading showing among other
things —
(a) The leading marks necessary for identification of the goods as the same are
furnished in writing by the shipper before the loading of such goods starts, provided
such marks are stamped or otherwise shown clearly upon the goods if uncovered,
or on the cases or coverings in which such goods are contained, in such a manner
as should ordinarily remain legible until the end of the voyage.
(b) Either the number of packages or pieces, or the quantity or weight, as the case
may be, as furnished in writing by the shipper.
(c) The apparent order and condition of the goods: Provided, That no carrier,
master, or agent of the carrier, shall be bound to state or show in the bill of lading
any marks, number, quantity, or weight which he has reasonable ground for
suspecting not accurately to represent the goods actually received, or which he has
had no reasonable means of checking.
(4) Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods
as therein described in accordance with paragraphs (3) (a), (b), and (c) of this section:
Provided, That nothing in this Act shall be construed as repealing or limiting the application of
any part of the Act, as amended, entitled "An Act relating to bills of lading in interstate and
foreign commerce," approved August 29, 1916 (U. S. C. title 49, secs. 81-124), commonly
known as the "Pomerene Bills of Lading Act."
(5) The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of
shipment of the marks, number, quantity, and weight, as furnished by him; and the shipper
shall indemnify the carrier against all loss damages, and expenses arising or resulting from
inaccuracies in such particulars. The right of the carrier to such indemnity shall in no way limit
his responsibility and liability under the contract of carriage or to any person other than the
shipper.
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(6) Unless notice of loss or damage and the general nature of such loss or damage be given
in writing to the carrier or his agent at the port of discharge before or at the time of the
removal of the goods into the custody of the person entitled to delivery thereof under the
contract of carriage, such removal shall be prima facie evidence of the delivery by the carrier
of the goods as described in the bill of lading. If the loss or damage is not apparent, the
notice must be given within three days of the delivery.
Said notice of loss or damage maybe endorsed upon the receipt for the goods given by the
person taking delivery thereof.
The notice in writing need not be given if the state of the goods has at the time of their receipt
been the subject of joint survey or inspection.
In any event the carrier and the ship shall be discharged from all liability in respect of loss or
damage unless suit is brought within one year after delivery of the goods or the date when
the goods should have been delivered: Provided, That if a notice of loss or damage, either
apparent or concealed, is not given as provided for in this section, that fact shall not affect or
prejudice the right of the shipper to bring suit within one year after the delivery of the goods or
the date when the goods should have been delivered
In the case of any actual or apprehended loss or damage the carrier and the receiver shall
give all reasonable facilities to each other for inspecting and tallying the goods.
(7) After the goods are loaded the bill of lading to be issued by the carrier, master, or agent of
the carrier to the shipper shall, if the shipper so demands, be a "shipped" bill of lading
Provided, That if the shipper shall have previously taken up any document of title to such
goods, he shall surrender the same as against the issue of the "shipped" bill of lading, but at
the option of the carrier such document of title may be noted at the port of shipment by the
carrier, master, or agent with name or name the names of the ship or ships upon which the
goods have been shipped and the date or dates of shipment, and when so noted the same
shall for the purpose of this section be deemed to constitute a "shipped" bill of lading.
(8) Any clause, covenant, or agreement in a contract of carriage relieving the carrier or the
ship from liability for loss or damage to or in connection with the goods, arising from
negligence, fault, or failure in the duties and obligations provided in this section, or lessening
such liability otherwise than as provided in this Act, shall be null and void and of no effect. A
benefit of insurance in favor of the carrier, or similar clause, shall be deemed to be a clause
relieving the carrier from liability.
RIGHTS AND IMMUNITIES
Section 4. (1) Neither the carrier nor the ship shall be liable for loss or damage arising or resulting from
unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship
seaworthy, and to secure that the ship is properly manned, equipped, and supplied, and to make to the
holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried fit and
safe for their reception, carriage, and preservation in accordance with the provisions of paragraph (1) of
section 3. Whenever loss or damage has resulted from unseaworthiness, the burden of proving the
exercise of due diligence shall be on the carrier or other persons claiming exemption under the section.
(2) Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting
from —
(a) Act, neglect, or default of the master, mariner, pilot, or the servants of the
carrier in the navigation or in the management of the ship;
(b) Fire, unless caused by the actual fault or privity of the carrier;
(c) Perils, dangers, and accidents of the sea or other navigable waters;
(d) Act of God;
(e) Act of war,
(f) Act of public enemies;
(g) Arrest or restraint of princes, rulers, or people, or seizure under legal process;
(h) Quarantine restrictions;
(i) Act or omission of the shipper or owner of the goods, his agent or
representative;
(j) Strikes or lockouts or stoppage or restraint of labor from whatever cause,
whether partial or general; Provided, That nothing herein contained shall be
construed to relieve a carrier from responsibility for the carrier's own acts;
(k) Riots and civil commotions
(l) Saving or attempting to save life or property at sea;
(m) Wastage in bulk or weight or any other loss or damage arising from inherent
defect, quality, or vice of the goods;
(n) Insufficiency of packing;
(o) Insufficiency of inadequacy of marks;
(p) Latent defects not discoverable by due diligence; and
(q) Any other cause arising without the actual fault and privity of the carrier and
without the fault or neglect of the agents or servants of the carrier, but the burden
of proof shall be on the person claiming the benefit of this exception to show that
neither the actual fault or privity of the carrier nor the fault or neglect of the agents
or servants of the carrier contributed to the loss or damage.
Page 5 of 16
(3) The shipper shall not be responsible for loss or damage sustained by the carrier or the
ship arising from any cause without the act, fault, or neglect of the shipper, his agents, or
servants.
(4) Any deviation in saving or attempting to save life or property at sea, or any reasonable
deviation shall not be deemed to be an infringement or breach of this Act or of the contract of
carriage, and the carrier shall not be liable for any loss or damage resulting therefrom:
Provided, however, That if the deviation is for the purpose of loading cargo or unloading
cargo or passengers it shall, prima facie, be regarded as unreasonable.
(5) Neither the carrier nor the ship shall in any event be or become liable for any loss or
damage to or in connection with the transportation of goods in an amount exceeding $600
per package lawful money of the United States, or in case of goods not shipped in packages,
per customary freight unit, or the equivalent of that sum in other currency, unless the nature
and value of such goods have been declared by the shipper before shipment and inserted in
the bill of lading. This declaration, if embodied in the bill of lading, shall be prima facie
evidence, but shall not be conclusive on the carrier.
By agreement between the carrier, master, or agent of the carrier, and the shipper another
maximum amount than that mentioned in this paragraph may be fixed: Provided, That such
maximum shall not be less than the figure above named. In no event shall the carrier be
liable for more than the amount of damage actually sustained.
Neither the carrier nor the ship shall be responsible in any event for loss or damage to or in
connection with the transportation of the goods if the nature or value thereof has been
knowingly and fraudulently misstated by the shipper in the bill of lading.
(6) Goods of an inflammable, explosive, or dangerous nature to the shipment whereof the
carrier, master or agent of the carrier, has not consented with knowledge of their nature and
character, may at any time before discharge be landed at any place or destroyed or rendered
innocuous by the carrier without compensation, and the shipper of such goods shall be liable
for all damages and expenses directly or indirectly arising out of or resulting from such
shipment. If any such goods shipped with such knowledge and consent shall become a
danger to the ship or cargo, they may in like manner be landed at any place, or destroyed or
rendered innocuous by the carrier without liability on the part of the carrier except to general
average, if any.
SURRENDER OF RIGHTS AND IMMUNITIES AND INCREASE OF RESPONSIBILITIES AND
LIABILITIES
Section 5. A carrier shall be at liberty to surrender in whole or in part all or any of his rights and
immunities or to increase any of his responsibilities and liabilities under this Act, provided such
surrender or increase shall be embodied in the bill of lading issued to the shipper.
The provisions of this Act shall not be applicable to charter parties; but if bills of lading are issued in the
case of a ship under charter party, they shall comply with the terms of this Act. Nothing in this Act shall
be held to prevent the insertion in a bill of lading of any lawful provision regarding general average.
SPECIAL CONDITIONS
Section 6. Notwithstanding the provisions of the preceding sections, a carrier, master or agent of the connection with the carriage of property," approved February 13,1893, or of any other law which would
carrier, and a shipper shall, in regard to any particular goods be at liberty to enter into any agreement in be applicable in the absence of this Act, insofar as they relate to the duties, responsibilities, and
any terms as to the responsibility and liability of the carrier for such goods, and as to the rights and liabilities of the ship or carrier prior to the time when the goods are loaded on or after the time they are
immunities of the carrier in respect of such goods, or his obligation as to seaworthiness (so far as the discharged from the ship.
stipulation regarding seaworthiness is not contrary to public policy), or the care or diligence of his
servants or agents in regard to the loading, handling stowage, carriage, custody, care, and discharge of
Section 13. This Act shall apply to all contracts for carriage of goods by sea to or from ports of the
the goods carried by sea: Provided, That in this case no bill of lading has been or shall be issued and
United States in foreign trade. As used in this Act the term "United States" includes its districts,
that the terms agreed shall be embodied in a receipt which shall be a non-negotiable document and
territories, and possessions: Provided, however, That the Philippine legislature may by law exclude its
shall be marked as such.
application to transportation to or from ports of the Philippine Islands. The term "foreign trade" means
the transportation of goods between the ports of the United States and ports of foreign countries.
Any agreement so entered into shall have full legal effect: Provided, That this section shall not apply to Nothing in this Act shall be held to apply to contracts for carriage of goods by sea between any port of
ordinary commercial shipments made in the ordinary course of trade but only to other shipments where the United States or its possessions, and any other port of the United States or its
the character or condition of the property to be carried or the circumstances, terms, and conditions possession: Provided, however, That any bill of lading or similar document of title which is evidence of a
under which the carriage is to be performed are such as reasonably to justify a special agreement. contract for the carriage of goods by sea between such ports, containing an express statement that it
shall be subject to the provisions of this Act, shall be subjected hereto as fully as if subject hereto as
fully as if subject hereto by the express provisions of this Act: Provided, further, That every bill of lading
Section 7. Nothing contained in this Act shall prevent a carrier or a shipper from entering into any
or similar document of title which is evidence of a contract for the carriage of goods by sea from ports of
agreement, stipulation, condition, reservation, or exemption as to the responsibility and liability of the
the United States, in foreign trade, shall contain a statement that it shall have effect subject to the
carrier or the ship for the loss or damage to or in connection with the custody and care and handling of
provisions of this Act.
goods prior to the loading on and subsequent to the discharge from the ship on which the goods are
carried by sea.
Section 14. Upon the certification of the Secretary of Commerce that the foreign commerce of the
United States in its competition with that of foreign nations is prejudiced the provisions, or any of them,
Section 8. The provisions of this Act shall not affect the rights and obligations of the carrier under the
of Title I of this Act, or by the laws of any foreign country or countries relating to the carriage of goods
provisions of the Shipping Act, 1916, or under the provisions of section 4281 to 4289, inclusive, of the
by sea, the President of the United States, may, from time to time, by proclamation, suspend any or all
Revised Statutes of the United States, or of any amendments thereto; or under the provisions of any
provisions of Title I of this Act for such periods of time or indefinitely as may be designated in the
other enactment for the time being in force relating to the limitation of the liability of the owners of
proclamation. The President may at any time rescind such suspension of Title I hereof, and any
seagoing vessels.
provisions thereof which may have been suspended shall thereby be reinstated and again apply to
contracts thereafter made for the carriage of goods by sea. Any proclamation of suspension or
TITLE II rescission of any such suspension shall take effect on a date named therein, which date shall be not
less than ten days from the issue of the proclamation.
Section 9. Nothing contained in this Act shall be construed as permitting a common carrier by water to
discriminate between competing shippers similarly place in time and circumstances, either (a) with Any contract for the carriage of goods by sea, subject to the provisions of this Act, effective during any
respect to the right to demand and receive bills of lading subject to the provisions of this Act; or (b) period when title I hereof, or any part thereof, is suspended, shall be subject to all provisions of law now
when issuing such bills of lading, either in the surrender of any of the carrier's rights and immunities or or hereafter applicable to that part of Title I which may have thus been suspended.
in the increase of any of the carrier's responsibilities and liabilities pursuant to section 6, title I, of this
Act or (c) in any other way prohibited by the Shipping Act, 1916, s amended.
Section 15. This Act shall take effect ninety days after the date of its approval; but nothing in this Act
shall apply during a period not to exceed one year following its approval to any contract for the carriage
Section 10. Section 25 of the Interstate Commerce Act is hereby amended by adding the following of goods by sea, made before the date on which this Act is approved, nor to any bill of lading or similar
proviso at the end of paragraph 4 thereof: "Provided, however, That insofar as any bill of lading document of title issued, whether before or after such date of approval in pursuance of any such
authorized hereunder relates to the carriage of goods by sea, such bill of lading shall be subject to the contract as aforesaid.
provisions of the Carriage of Goods by Sea Act."
Section 16. This Act may be cited as the "Carriage of Goods by Sea Act."
Section 11. Where under the customs of any trade the weight of any bulk cargo inserted in the bill of
lading is a weight ascertained or accepted by a third party other than the carrier or the shipper, and the
Approved, April 16, 1936.
fact that the weight is so ascertained or accepted is stated in the bill of lading, then, notwithstanding any
thing in this Act, the bill of lading shall not be deemed to be prima facie evidence against the carrier of
the receipt of goods of the weight so inserted in the bill of lading, and the accuracy thereof at the time of COMMONWEALTH ACT No. 146
shipment shall not be deemed to have been guaranteed by the shipper.
THE PUBLIC SERVICE LAW
Section 12. Nothing in this Act shall be construed as superseding any part of the Act entitled "An act
relating to navigation of vessels, bills of lading, and to certain obligations, duties, and rights in
Page 6 of 16
(As amended, and as modified particularly by PD No. 1, Integrated Reorganization Plan and EO 546)
CHAPTER I
ORGANIZATION
Section 1. This Act shall be known as the "Public Service Act."
Section 2. There is created under the Department of Justice a commission which shall be designated
and known as the Public Service Commission, composed of one Public Service Commissioner and five
Associate Commissioners, and which shall be vested with the powers and duties hereafter specified.
Whenever the word "Commission" is used in this Act, it shall be held to mean the Public Service
Commission, and whenever the word "Commissioner" is used in this Act it shall be held to mean the
Public Service Commissioner or anyone of the Associate Commissioners. The Public Service
Commissioner and the Associate Public Service Commissioners shall be natural born citizens and
residents of the Philippines, not under thirty years of age; members of the Bar of the Philippines, with at
least five years of law practice or five years of employment in the government service requiring a
lawyer's diploma; and shall be appointed by the President of the Philippines, with the consent of the
Commission on Appointments of the Congress of the Philippines: Provided, however, That the present
Commissioner and the personnel of the Commission shall continue in office without the necessity of re-
appointment. The Commissioners shall have the rank and privilege of retirement of Judges of the
Courts of First Instance. (As amended by Republic Act Nos. 178 and 2677)
Section 3. The Commissioner and Associate Commissioners shall hold office until they reach the age
of seventy years, or until removed in accordance with the procedures prescribed in section one hundred
and seventy-three of Act Numbered Twenty-seven hundred and eleven, known as the Revised
Administrative Code: Provided, however, That upon retirement any Commissioner of Associate
Commissioner shall be entitled to all retirement benefits and privileges for Judges of the Courts of First
Instance or under the retirement law to which he may be entitled on the date of his retirement. In case
of the absence, for any reason, of the Public Service Commissioner, the Associate Commissioner with
seniority of appointment shall act as Commissioner. If on account of absence, illness, or incapacity of
any of three Commissioners, or whenever by reason of temporary disability of any Commissioner or of
a vacancy occurring therein, the requisite number of Commissioners necessary to render a decision or
issue an order in any case is not present, or in the event of a tie vote among the Commissioners, the
Secretary of Justice may designate such number of Judges of the Courts of First Instance, or such
number of attorneys of the legal division of the Commission, as may be necessary to sit temporarily as
Commissioners in the Public Service Commission.
The Public Service Commission shall sit individually or as a body en banc or in two divisions of three
Commissioners each. The Public Service Commissioner shall preside when the Commission sits en
banc and in one division. In the other division, the Associate Commissioner with seniority of
appointment in that division shall preside. Five Commissioners shall constitute a quorum for sessions
en banc and two Commissioners shall constitute a quorum for the sessions of a division. In the absence
of a quorum, the session shall be adjourned until the requisite number is present.
All the powers herein vested upon the Commission shall be considered vested upon any of the
Commissioners, acting either individually or jointly as hereinafter provided. The Commissioners shall
equitably divide among themselves all pending cases and those that may hereafter be submitted to the
Commissioner, in such manner and form as they may determine, and shall proceed to hear and
determine the case assigned to each or to their respective divisions, or to the Commission en banc as
follows: uncontested cases, except those pertaining to the fixing of rates, shall be decided by one
Commissioner; contested cases and all cases involving the fixing of rates shall be decided by the
Page 7 of 16
Commission in division and the concurrence of at least two Commissioners in the division shall be
necessary for the promulgation of a decision or non-interlocutory order in these cases: Provided,
however, That any motion for reconsideration of a decision or non-interlocutory order of any
Commissioner or division shall be heard directly by the Commission en banc and the concurrence of at
least four Commissioners shall be necessary for the promulgation of a final decision or order resolving
such motion for reconsideration. (As amended by Republic Act Nos. 723 and 2677)
Section 4. The Public Service Commissioner shall receive an annual compensation of thirteen
thousand pesos; and each of the Associate Commissioners an annual compensation of twelve
thousand pesos. The Commissioners shall be assisted by one chief attorney, one finance and rate
regulation officer, one chief utilities regulation engineer, one chief accountant, one transportation
regulation chief, one secretary of the Public Service Commission, and three public utilities advisers who
shall receive an annual compensation of not less than ten thousand eight hundred pesos each; five
assistant chiefs of division who shall receive an annual compensation of not less than nine thousand six
hundred pesos each; twelve attorneys who shall receive an annual compensation of not less than nine
thousand pesos each; and a technical and confidential staff to be composed of two certified public
accounts, two electrical engineers, two mechanical or communication engineers, and two special
assistants who shall receive an annual compensation of not less than seven thousand two hundred
pesos each. (As amended by Republic Act Nos. 723, 2677 and 3792)
Section 5. The Public Service Commissioner, the Associate Public Service Commissioners, and all
other officers and employees of the Public Service Commission shall enjoy the same privileges and
rights as the officer and employees of the classified civil service of the Government of the Philippines.
They shall also be entitled to receive from the Government of the Philippines their necessary travelling
expenses while travelling on the business of the Commission, which shall be paid on proper voucher
therefor, approved by the Secretary of Justice, out of funds appropriated for the contingent expenses of
the Commission.
When the exigency of the service so requires and with the approval of the Secretary of Justice, and
subject to the provisions of Commonwealth Act Numbered Two hundred forty-six, as amended, funds
may be set aside from the appropriations provided for the Commission and/or from the fees collected
under Section forty of this Act to defray the expenses to be incurred by the Public Service
Commissioner or any of the Associate Commissioners, officers or employees of the Commission to be
designated by the Commissioner, with the approval of the Secretary of Justice, in the study of modern
trends in supervision and regulation of public services. (As amended by Republic Act No. 3792)
Section 6. The Secretary of Justice, upon recommendation of the Public Service Commissioner, shall
appoint all subordinate officers and employees of the Commission as may be provided in the
Appropriation Act. The Public Service Commissioner shall have general executive control, direction,
and supervision over the work of the Commission and of its members, body and personnel, and over all
administrative business. (As amended by Republic Act Nos. 178 and 3792)
Section 7. The Secretary of the Commission, under the direction of the Commissioner, shall have
charge of the administrative business of the Commission and shall perform such other duties as may be
required of him. He shall be the recorder and official reporter of the proceedings of the Commission and
shall have authority to administer oaths in all matters coming under the jurisdiction of the Commission.
He shall be the custodian of the records, maps, profiles, tariffs, itineraries, reports, and any other
documents and papers filed with the Commission or entrusted to his care and shall be responsible
therefor to the Commission. He shall have authority to designate from time to time any of his delegates
to perform the duties of Deputy Secretary with any of the Commissioners.
Section 8. The Commission shall furnish the Secretary such of its findings and decisions as in its
judgment may be of general public interest; the Secretary shall compile the same for the purpose of
publication in a series of volumes to be designated "Reports of the Public Service Commission of the
Philippines," which shall be published in such form and manner as may be best adapted for public
information and use, and such authorized publications shall be competent evidence of the reports and
decisions of the Commission therein contained without any further proof or authentication thereof.
Section 9. No member or employee of the Commission shall have any official or professional relation
with any public service as herein defined, or hold any office of profit or trust with the Government of the
Philippines.
Section 10. The Commission shall have its office in the City of Manila or at such other place as may be
designated, and may hold hearings on any proceedings at such times and places, within the
Philippines, as it may provide by order in writing: Provided, That during the months of April and May of
each year, at least three Commissioners shall be on vacation in such manner that once every two years
at least three of them shall be on duty during April and May: Provided, however, That in the interest of
public service, the Secretary of Justice may require any or all the Commissioners not on duty to render
services and perform their duties during the vacation months. (As amended by Republic Act Nos. 176
and 3792)
Section 11. The Commission shall have the power to make needful rules for its Government and other
proceedings not inconsistent with this Act and shall adopt a common seal, and judicial notice shall be
taken for such seal. True copies of said rules and other amendments shall be promptly furnished to the
Bureau of Printing and shall be forthwith published in the Official Gazette.
CHAPTER II
JURISDICTION, POWERS AND DUTIES OF THE COMMISSION
Section 13. (a) The Commission shall have jurisdiction, supervision, and control over all public services
and their franchises, equipment, and other properties, and in the exercise of its authority, it shall have
the necessary powers and the aid of the public force: Provided, That public services owned or operated
by government entities or government-owned or controlled corporations shall be regulated by the
Commission in the same way as privately-owned public services, but certificates of public convenience
or certificates of public convenience and necessity shall not be required of such entities or corporations:
And provided, further, That it shall have no authority to require steamboats, motor ships and steamship
lines, whether privately-owned, or owned or operated by any Government controlled corporation or
instrumentality to obtain certificate of public convenience or to prescribe their definite routes or lines of
service.
(b) The term "public service" includes every person that now or hereafter may own, operate,
manage, or control in the Philippines, for hire or compensation, with general or limited
clientele, whether permanent, occasional or accidental, and done for general business
purposes, any common carrier, railroad, street railway, traction railway, sub-way motor
vehicle, either for freight or passenger, or both with or without fixed route and whether may
be its classification, freight or carrier service of any class, express service, steamboat or
steamship line, pontines, ferries, and water craft, engaged in the transportation of passengers
or freight or both, shipyard, marine railways, marine repair shop, [warehouse] wharf or dock,
ice plant, ice-refrigeration plant, canal, irrigation system, gas, electric light, heat and power
water supply and power, petroleum, sewerage system, wire or wireless communications
system, wire or wireless broadcasting stations and other similar public services: Provided,
however, That a person engaged in agriculture, not otherwise a public service, who owns a
Page 8 of 16
motor vehicle and uses it personally and/or enters into a special contract whereby said motor
vehicle is offered for hire or compensation to a third party or third parties engaged in
agriculture, not itself or themselves a public service, for operation by the latter for a limited
time and for a specific purpose directly connected with the cultivation of his or their farm, the
transportation, processing, and marketing of agricultural products of such third party or third
parties shall not be considered as operating a public service for the purposes of this Act.
(c) The word "person" includes every individual, co-partnership, joint-stock company or
corporation, whether domestic or foreign, their lessees, trustees, or receivers, as well as any
municipality, province, city, government-owned or controlled corporation, or agency of the
Government of the Philippines, and whatever other persons or entities that may own or
possess or operate public services. (As amended by Com. Act 454 and RA No. 2677)
Section 14. The following are exempted from the provisions of the preceding section:
(a) Warehouses;
(b) Vehicles drawn by animals and bancas moved by oar or sail, and tugboats and lighters;
(c) Airships within the Philippines except as regards the fixing of their maximum rates on
freight and passengers;
(d) Radio companies except with respect to the fixing of rates;
(e) Public services owned or operated by any instrumentality of the National Government or
by any government-owned or controlled corporation, except with respect to the fixing of rates.
(As amended by Com. Act 454, RA No. 2031, and RA No. 2677 )
Section 15. With the exception of those enumerated in the preceding section, no public service shall
operate in the Philippines without possessing a valid and subsisting certificate from the Public Service
Commission known as "certificate of public convenience," or "certificate of public convenience and
necessity," as the case may be, to the effect that the operation of said service and the authorization to
do business will promote the public interests in a proper and suitable manner.
The Commission may prescribe as a condition for the issuance of the certificate provided in the
preceding paragraph that the service can be acquired by the Republic of the Philippines or any
instrumentality thereof upon payment of the cost price of its useful equipment, less reasonable
depreciation; and likewise, that the certificate shall be valid only for a definite period of time; and that
the violation of any of these conditions shall produce the immediate cancellation of the certificate
without the necessity of any express action on the part of the Commission.
In estimating the depreciation, the effect of the use of the equipment, its actual condition, the age of the
model, or other circumstances affecting its value in the market shall be taken into consideration.
The foregoing is likewise applicable to any extension or amendment of certificates actually in force and
to those which may hereafter be issued, to permit to modify itineraries and time schedules of public
services, and to authorizations to renew and increase equipment and properties.
Section 16. Proceedings of the Commission, upon notice and hearing. - The Commission shall have
power, upon proper notice and hearing in accordance with the rules and provisions of this Act, subject
to the limitations and exceptions mentioned and saving provisions to the contrary :
(a) To issue certificates which shall be known as certificates of public convenience,
authorizing the operation of public service within the Philippines whenever the Commission
finds that the operation of the public service proposed and the authorization to do business
will promote the public interest in a proper and suitable manner. Provided, That thereafter,
certificates of public convenience and certificates of public convenience and necessity will be
granted only to citizens of the Philippines or of the United States or to corporations, co-
partnerships, associations or joint-stock companies constituted and organized under the laws
of the Philippines; Provided, That sixty per centum of the stock or paid-up capital of any such
corporations, co-partnership, association or joint-stock company must belong entirely to
citizens of the Philippines or of the United States: Provided, further, That no such certificates
shall be issued for a period of more than fifty years.
(b) To approve, subject to constitutional limitations any franchise or privilege granted under
the provisions of Act No. Six Hundred and Sixty-seven, as amended by Act No. One
Thousand and twenty-two, by any political subdivision of the Philippines when, in the
judgment of the Commission, such franchise or privilege will properly conserve the public
interests, and the Commission shall in so approving impose such conditions as to
construction, equipment, maintenance, service, or operation as the public interests and
convenience may reasonably require, and to issue certificates of public convenience and
necessity when such is required or provided by any law or franchise.
(c) To fix and determine individual or joint rates, tolls, charges, classifications, or schedules
thereof, as well as commutation, mileage, kilometrage, and other special rates which shall be
imposed observed and followed thereafter by any public service: Provided, That the
Commission may, in its discretion, approve rates proposed by public services provisionally
and without necessity of any hearing; but it shall call a hearing thereon within thirty days,
thereafter, upon publication and notice to the concerns operating in the territory affected:
Provided, further, That in case the public service equipment of an operator is used principally
or secondarily for the promotion of a private business, the net profits of said private business
shall be considered in relation with the public service of such operator for the purpose of
fixing the rates.
(d) To fix just and reasonable standards, classifications, regulations, practices, measurement,
or service to be furnished, imposed, observed, and followed thereafter by any public service.
(e) To ascertain and fix adequate and serviceable standards for the measurement of quantity,
quality, pressure, initial voltage, or other condition pertaining to the supply of the product or
service rendered by any public service, and to prescribe reasonable regulations for the
examination and test of such product or service and for the measurement thereof.
(f) To establish reasonable rules, regulations, instructions, specifications, and standards, to
secure the accuracy of all meters and appliances for measurements.
(g) To compel any public service to furnish safe, adequate, and proper service as regards the
manner of furnishing the same as well as the maintenance of the necessary material and
equipment.
Page 9 of 16
(h) To require any public service to establish, construct, maintain, and operate any
reasonable extension of its existing facilities, where in the judgment of said Commission,
such extension is reasonable and practicable and will furnish sufficient business to justify the
construction and maintenance of the same and when the financial condition of the said public
service reasonably warrants the original expenditure required in making and operating such
extension.
(i) To direct any railroad, street railway or traction company to establish and maintain at any
junction or point of connection or intersection with any other line of said road or track, or with
any other line of any other railroad, street railway or traction to promote, such just and
reasonable connection as shall be necessary to promote the convenience of shippers of
property, or of passengers, and in like manner direct any railroad, street railway, or traction
company engaged in carrying merchandise, to construct, maintain and operate, upon
reasonable terms, a switch connection with any private sidetrack which may be constructed
by any shipper to connect with the railroad, street railway or traction company line where, in
the judgment of the Commission, such connection is reasonable and practicable and can be
out in with safety and will furnish sufficient business to justify the construction and
maintenance of the same.
(j) To authorize, in its discretion, any railroad, street railway or traction company to lay its
tracks across the tracks of any other railroad, street railway or traction company or across
any public highway.
(k) To direct any railroad or street railway company to install such safety devices or about
such other reasonable measures as may in the judgment of the Commission be necessary
for the protection of the public are passing grade crossing of (1) public highways and
railroads, (2) public highways and streets railway, or (3) railways and street railways.
(l) To fix and determine proper and adequate rates of depreciation of the property of any
public service which will be observed in a proper and adequate depreciation account to be
carried for the protection of stockholders, bondholders or creditors in accordance with such
rules, regulations, and form of account as the Commission may prescribe. Said rates shall be
sufficient to provide the amounts required over and above the expense of maintenance to
keep such property in a state of efficiency corresponding to the progress of the industry. Each
public service shall conform its depreciation accounts to the rates so determined and fixed,
and shall set aside the moneys so provided for out of its earnings and carry the same in a
depreciation fund. The income from investments of money in such fund shall likewise be
carried in such fund. This fund shall not be expended otherwise than for depreciation,
improvements, new construction, extensions or conditions to the properly of such public
service.
(m) To amend, modify or revoke at any time certificate issued under the provisions of this Act,
whenever the facts and circumstances on the strength of which said certificate was issued
have been misrepresented or materially changed.
(n) To suspend or revoke any certificate issued under the provisions of this Act whenever the
holder thereof has violated or willfully and contumaciously refused to comply with any order
rule or regulation of the Commission or any provision of this Act: Provided, That the
Commission, for good cause, may prior to the hearing suspend for a period not to exceed
thirty days any certificate or the exercise of any right or authority issued or granted under this
Act by order of the Commission, whenever such step shall in the judgment of the
 Commission be necessary to avoid serious and irreparable damage or inconvenience to the
public or to private interests.
(o) To fix, determine, and regulate, as the convenience of the state may require, a special
type for auto-busses, trucks, and motor trucks to be hereafter constructed, purchased, and
operated by operators after the approval of this Act; to fix and determine a special registration
fee for auto-buses, trucks, and motor trucks so constructed, purchased and operated:
Provided, That said fees shall be smaller than more those charged for auto-busses, trucks,
and motor trucks of types not made regulation under the subsection.
Section 17. Proceedings of Commission without previous hearing. - The Commission shall have power
without previous hearing, subject to established limitations and exception and saving provisions to the
contrary:
(a) To investigate, upon its own initiative, or upon complaint in writing, any matter concerning
any public service as regards matters under its jurisdiction; to require any public service to
furnish safe, adequate, and proper service as the public interest may require and warrant; to
enforce compliance with any standard, rule, regulation, order or other requirement of this Act
or of the Commission, and to prohibit or prevent any public service as herein defined from
operating without having first secured a certificate of public convenience or public necessity
and convenience, as the case may be and require existing public services to pay the fees
provided for in this Act for the issuance of the proper certificate of public convenience or
certificate of public necessity and convenience, as the case may be, under the penalty, in the
discretion by the Commission, of the revocation and cancellation of any acquired rights.
(b) To require any public service to pay the actual expenses incurred by the Commission in
any investigation if it shall be found in the same that any rate, tool, charge, schedule,
regulation, practice, act or service thereof is in violation of any provision of this Act or any
certificate, order, rule, regulation or requirement issued or established by the Commission.
The Commission may also assess against any public service costs not to exceed twenty-five
pesos with reference to such investigation.
(c) From time to time appraise and value the property of any public service, whenever in the
judgment of the Commission it shall be necessary so to do, for the purpose of carrying out
any of the provisions of this Act, and in making such valuation the Commission may have
access to and use any books, documents, or records in the possession of any department,
bureau, office, or board of the government of the Philippines or any political subdivision
thereof.
(d) To provide, on motion by or at the request of any consumer or user of a public service, for
the examination and test of any appliance used for the measuring of any product or service of
a public service, and for that purpose, by its agents, experts, or examiners to enter upon any
premises where said appliances may be, and other premises of the public service, for the
purpose of setting up and using on said premises any apparatus necessary therefor. and to
fix the fees to be paid by any consumer or user who may apply to the Commission for such
examination or test to be made, and if the appliance be found defective or incorrect to the
disadvantage of the consumer or user to require the fees paid to be refunded to the
consumer or user by the public service concerned.
Page 10 of 16
(e) To permit any street railway or traction company to change its existing gauge to standard
steam railroad gauge, upon such terms and conditions as the Commission shall prescribe.
(f) To grant to any public service special permits to make extra or special trips within the
territory covered by its certificates of public convenience, and to make special excursion trips
outside of its own territory if the public interest or special circumstances required it: Provided,
however, that in case a public service cannot render such extra service on its own line or in
its own territory, a special permit for such extra service may be granted to any other public
service.
(g) To require any public service to keep its books, records, and accounts so as to afford an
intelligent understanding of the conduct of its business and to that end to require every such
public service of the same class to adopt a uniform system of accounting. Such system
conform to any system approved and confirmed by the Auditor General.
(h) To require any public service to furnish annual reports of finances and operations. Such
reports shall set forth in detail the capital stock issued, the amounts of said capital stock paid
up and the form of payment thereof; the dividends paid, the surplus, if any and the number of
stockholders, the consolidated and pending obligations and the interest paid thereon; the cost
and value of the property of the operator; concessions or franchises and equipment; the
number of employees and salaries paid to each class; the accidents to passengers,
employees, and other person, and the causes thereof; the annual expenditures on
improvements; the manner of their investment and nature of such improvements; the receipts
and profits in each of the branches of the business and of whatever source; the operating and
other expenses; the balance of profits and losses; and a complete statement of the annual
financial operations of the operator, including an annual balance sheet. Such reports shall
also contain any information which the Commission may require concerning freight and
passenger rates, or agreements, compromises or contracts affecting the same. Said reports
shall cover a period of twelve months, ending on December thirty-first of each year, and shall
be sworn to by the officer or functionary of the public service authorized therefor. The
Commission shall also have power to require from time to time special reports containing
such information as above provided for or on other matters as the Commission may deem
necessary or advisable.
(i) To require every public service to file with the Commission a statement in writing, verified
by the oaths of the owner or the president and the secretary thereof, if a corporation, setting
forth the name, title of office or portion, and post-office address, and the authority, power and
duties of every officer, member of the board of directors, trustees executive committee,
superintendent, chief or head of construction and operation thereof, in such form as to
disclose the source and origin of each administrative act, rule, decision, order or other action
of the operator of such public service; and, within ten days after any change is made in the
title of, or authority, powers or duties appertaining to any such office or position, or the person
holding the same, filed with the Commission a like statement, verified in like manner, setting
forth such change.
(j) To require any public service to comply with the laws of the Philippines and with any
provincial resolution or municipal ordinance relating thereto and to conform to the duties
imposed upon it thereby or by the provisions of its own character, whether obtained under
any general or special law of the Philippines.
 (k) To investigate any or all accidents that may occur on the property of any public service or
directly or indirectly arising from or connected with its maintenance or operation in the
Philippines; to require any public service to give the Commission immediate and effective
notice of all any such accidents, and to make such order or recommendation with respect
thereto as the public interest may warrant or require.
(l) To require every public service s herein defined to file within complete schedules of every
classification employed and of every individual or joint rate, toll fare or charge made, charged
or exacted by it for any product supplied or service rendered within the Philippines and, in the
case of public carriers, to file with it a statement showing the itineraries or routes served as
specified in such requirement.
CHAPTER III
OPERATORS OF PUBLIC SERVICES REGULATIONS AND PROHIBITIONS
Section 18. It shall be unlawful for any individual, co-partnership, association, corporation or joint-stock
company, their lessees, trustees or receivers appointed by any court whatsoever, or any municipality,
province, or other department of the Government of the Philippines to engage in any public service
business without having first secured from the Commission a certificate of public convenience or
certificate of public convenience and necessity as provided for in this Act, except grantees of legislative
franchises expressly exempting such grantees from the requirement of securing a certificate from this
Commission as well as concerns at present existing expressly exempted from the jurisdiction of the
Commission, either totally or in part, by the provisions of section thirteen of this Act.
Section 19. Unlawful Acts. - It shall be unlawful for any public service:
(a) To provide or maintain any service that is unsafe, improper, or inadequate or withhold or refuse any
service which can reasonably be demanded and furnished, as found and determined by the
Commission in a final order which shall be conclusive and shall take effect in accordance with this Act,
upon appeal of otherwise.
(b) To make or give, directly or indirectly, by itself or through its agents, attorneys or brokers, or any of
them, discounts or rebates on authorized rates, or grant credit for the payment of freight charges, or
any undue or unreasonable preference or advantage to any person of corporation or to any locality or to
any particular description of traffic or service, or subject any particular person or corporation or locality
or any particular description of traffic to any prejudice or disadvantage in any respect whatsoever; to
adopt, maintain, or enforce any regulation, practice or measurement which shall be found or determined
by the Commission to be unjust, unreasonable, unduly preferential or unjustly discriminatory in a final
order which shall be conclusive and shall take effect in accordance with the provisions of this Act, upon
repeal or otherwise.
(c) To refuse or neglect, when requested by the Director of Posts or his authorized representative, to
carry public mail on the regular trips of any public land transportation service maintained or operated by
any such public service; upon such terms and conditions and for a consideration in such amount as
may be agreed upon between the Director of Posts and the public service carrier of fixed by the
Commission in the absence of an agreement between the Director of Posts and the carrier. In case the
Director of Posts and public service carrier are unable to agree on the amount of the compensation to
be paid for the carriage of the mail, the Director of Posts shall forthwith request the Commission to fix a
just and reasonable compensation for such carriage and the same shall be promptly fixed by the
Commission in accordance with Section sixteen of this Act.
Page 11 of 16
Section 20. Acts requiring the approval of the Commission. - Subject to established limitations and
exceptions and saving provisions to the contrary, it shall be unlawful for any public service or for the
owner, lessee or operator thereof, without the approval and authorization of the Commission previously
had -
(a) To adopt, establish, fix, impose, maintain, collect or carry into effect any individual or joint
rates, commutation, mileage or other special rate, toll, fare, charge, classification or itinerary.
The Commission shall approve only those that are just and reasonable and not any that are
unjustly discriminatory or unduly preferential, only upon reasonable notice to the public
services and other parties concerned, giving them a reasonable opportunity to be heard and
the burden of the proof to show that the proposed rates or regulations are just and
reasonable shall be upon the public service proposing the same.
(b) To establish, construct, maintain, or operate new units or extend existing facilities or make
any other addition to or general extension of the service.
(c) To abandon any railroad station or stop the sale of passenger tickets, or cease to maintain
an agent to receive and discharge freight at any station now or hereafter established at which
passenger tickets are now or may hereafter be regularly sold, or at which such agent is now
or may hereafter be maintained, or make any permanent change in its time tables or
itineraries on any railroad or in its service.
(d) To lay any railroad or street railway track across any highway, so as to make a new
crossing at grade, or cross the tracks of any other railroad or street railway, provided, that this
subsection shall not apply to replacements of lawfully existing tracks.
(e) Hereafter to issue any stock or stock certificates representing an increase of capital; or
issue any share of stock without par value; or issue any bonds or other evidence of
indebtedness payable in more than one year from the issuance thereof, provided that it shall
be the duty of the Commission, after hearing, to approve any such issue maturing in more
than one year from the date thereof, when satisfied that the same is to be made in
accordance with law, and the purpose of such issue be approved by the Commission. (f) To
capitalize any franchise in excess of the amount, inclusive of any tax or annual charge,
actually paid to the Government of the Philippines or any political subdivision thereof as the
consideration of said franchise; capitalize any contract for consolidation, merger or lease, or
issue any bonds or other evidence of indebtedness against or as a lien upon any contract for
consolidation, merger, or lease: Provided, however, that the provisions of this section shall
not prevent the issuance of stock, bonds, or other evidence of indebtedness subject to the
approval of the Commission by any lawfully merged or consolidated public services not in
contravention of the provisions of this section.
(g) To sell, alienate, mortgage, encumber or lease its property, franchises, certificates,
privileges, or rights or any part thereof; or merge or consolidate its property, franchises
privileges or rights, or any part thereof, with those of any other public service. The approval
herein required shall be given, after notice to the public and hearing the persons interested at
a public hearing, if it be shown that there are just and reasonable grounds for making the
mortgaged or encumbrance, for liabilities of more than one year maturity, or the sale,
alienation, lease, merger, or consolidation to be approved, and that the same are not
detrimental to the public interest, and in case of a sale, the date on which the same is to be
consummated shall be fixed in the order of approval: Provided, however, that nothing herein
contained shall be construed to prevent the transaction from being negotiated or completed
 before its approval or to prevent the sale, alienation, or lease by any public service of any of
its property in the ordinary course of its business.
(h) To sell or register in its books the transfer or sale of shares of its capital stock, if the result
of that sale in itself or in connection with another previous sale, shall be to vest in the
transferee more than forty per centum of the subscribed capital of said public service. Any
transfer made in violation of this provision shall be void and of no effect and shall not be
registered in the books of the public service corporation. Nothing herein contained shall be
construed to prevent the holding of shares lawfully acquired. (As amended by Com. Act No.
454.)
(i) To sell, alienate or in any manner transfer shares of its capital stock to any alien if the
result of that sale, alienation, or transfer in itself or in connection with another previous sale
shall be the reduction to less than sixty per centum of the capital stock belonging to Philippine
citizens. Such sale, alienation or transfer shall be void and of no effect and shall be sufficient
cause for ordering the cancellation of the certificate.
(j) To issue, give or tender, directly or indirectly, any free ticket free pass or free or reduced
rate of transportation for passengers, except to the following persons: (1) officers, agents,
employees, attorneys, physicians and surgeons of said public service, and members of their
families; (2) inmates of hospitals or charity institutions, and persons engaged in charitable
work; (3) indigent, destitute, and homeless persons when transported by charitable societies
or hospitals, and the necessary agents employed in such transportation; (4) the necessary
caretakers, going and returning, of livestock, poultry, fruit, and other freight under uniform and
non-discriminatory regulation; (5) employees of sleeping car corporations, express
corporations and telegraph and telephone corporations, railway and marine mail service
employees, when traveling in the course of their official duly; (6) post-office inspectors,
customs officers and inspectors, and immigration inspectors when engaged in inspection; (7)
witnesses attending any legal investigation in which the public service is an interested party;
(8) persons injured in accidents or wrecks, and physicians and nurses attending such
persons; (9) peace officers and men of regularly constituted fire departments. (As amended
by Com. Act No. 454.)
(k) Adopt, maintain, or apply practices or measures, rules or regulations to which the public
shall be subject in its relations with the public service.
CHAPTER IV
PENALTIES FOR VIOLATIONS
Section 21. Every public service violating or failing to comply with the terms and conditions of any
certificate or any orders, decisions or regulations of the Commission shall be subject to a fine of not
exceeding two hundred pesos per day for every day during which such default or violation continues;
and the Commission is hereby authorized and empowered to impose such fine, after due notice and
hearing.
The fines so imposed shall be paid to the Government of the Philippines through the Commission, and
failure to pay the fine in any case within the same specified in the order or decision of the Commission
shall be deemed good and sufficient reason for the suspension of the certificate of said public service
until payment shall be made. Payment may also be enforced by appropriate action brought in a court of
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competent jurisdiction. The remedy provided in this section shall not be a bar to, or affect any other
remedy provided in this Act but shall be cumulative and additional to such remedy or remedies.
Section 22. Observance of the orders, decisions, and regulations of the Commission and of the terms
and conditions of any certificate may also be enforced by mandamus or injunction in appropriate cases,
or by action to compel the specific performance of the orders, decisions, and regulations so made, or of
the duties imposed by law upon such public service: Provided, that the Commission may compromise
any case that arise under this Act in such manner and for such amount as it may deem just and
reasonable.
Section 23. Any public service corporation that shall perform, commit, or do any act or thing forbidden
or prohibited or shall neglect, fail or omit to do or perform any act or thing herein to be done or
performed, shall be punished by a fine not exceeding twenty-five thousand pesos, or by imprisonment
not exceeding five years, or both, in the discretion of the court.
Section 24. Any person who shall knowingly and willfully perform, commit, or do, or participate in
performing, committing, or doing, or who shall knowingly and willfully cause, participate, or join with
others in causing any public service corporation or company to do, perform or commit, or who shall
advice, solicit, persuade, or knowingly and willfully instruct, direct, or order any officer, agent, or
employee of any public service corporation or company to perform, commit, or do any act or thing
forbidden or prohibited by this Act, shall be punished by a fine not exceeding two thousand pesos, or
imprisonment not exceeding two years, or both, in the discretion of the court: Provided, however, that
for operating a private passenger automobile as a public service without having a certificate of public
convenience for the same the offender shall be subject to the penalties provided for in section sixty-
seven (j) of Act numbered thirty-nine hundred an ninety-two.
Section 25. Any person who shall knowingly and willfully neglect, fail, or omit to do or perform, or who
shall knowingly and willfully cause or join or participate with others in causing any public service
corporation or company to neglect, fail or omit to do or perform, or who shall advise, solicit, or
persuade, or knowingly and willfully instruct, direct, or order any officer, agent, or employee of any
public service corporation or company to neglect, fail, or omit to do any act or thing required to be done
by this Act, shall be published by a fine not exceeding two thousand pesos or by imprisonment not
exceeding two years, or both, in the discretion of the court.
Section 26. Any person who shall destroy, injure, or interfere with any apparatus or appliance owned or
operated by to in charge of the Commission or its agents, shall be deemed guilty of a misdemeanor and
upon conviction shall be published by a fine not exceeding one thousand pesos or imprisonment not
exceeding six months, or both in the discretion of the court.
Any public service permitting the destruction, injury to, or interference with, any such apparatus or
appliances shall forfeit a sum not exceeding four thousand pesos for each offense.
Section 27. This Act shall not have the effect to release or waive any right of action by the Commission
or by any person for any right, penalty, or forfeiture which may have arisen or which may arise, under
any of the laws of the Philippines, and any penalty or forfeiture enforceable under this Act shall not be a
bar to or affect a recovery for a right, or affect or bar any criminal proceedings against any public
service or person or persons operating such public services, its officers, directors, agents, or
employees.
Section 28. Violations of the orders, decisions, and regulations of the Commission and of the terms
and conditions of any certificate issued by the Commission shall prescribe after sixty days, and
violations of the provisions of this Act shall prescribe after one hundred and eighty days.
CHAPTER V
PROCEDURE AND REVIEW
Section 29. All hearings and investigations before the Commission shall be governed by rules adopted
by the Commission, and in the conduct thereof the Commission shall not be bound by the technical
rules of legal evidence: Provided, That the Public Service Commissioner or associate commissioners
may summarily punish for contempt by a fine not exceeding two hundred pesos or by imprisonment not
exceeding ten days, or both, any person guilty of misconduct in the presence of the Commissioner or
associate commissioners or so near the same as to interrupt the hearing or session or any proceeding
before them, including cases in which a person present at a hearing, session, or investigation held by
either of the commissioners refuses to be sworn as a witness or to answer as such when lawfully
required to do so. To enforce the provisions of this section, the Commission may, if necessary, request
the assistance of the municipal police for the execution of any order made for said purpose.
(1) While the Commission is authorized to make rules for the conduct of their business, it
could not set at naught the fundamental rule of all proceedings that only parties having a real
interest will be heard.
(2) A party not affected or prejudiced cannot file an opposition.
(3) One public service corporation cannot assume the name and be substituted in the place
of another public service corporation.
(4) A legal representative of the estate of a deceased applicant may be substituted for the
latter. If the right consists in the prosecution of unfinished proceedings upon an application for
a certificate of public convenience of the deceased before the Public service Commission, it
is but logical that the legal representative be empowered and entitled in behalf of the estate
to make the right effective in that proceeding.
(5) One who has been granted a legislative franchise to operate an ice plant, although not yet
an operator of such public utility, has sufficient interest or personality either to oppose an
established operator's application for an increase in the capacity of his existing plant, or to
ask for a joint hearing of said application and the grantee's own application for the issuance
of a certificate of public convenience in order to operate under such franchise.
(6) The fact that a party is the lessee of a line does not bar him from applying for a certificate
of its own in the same line. Even in cases where the owner of a certificate has sold it subject
to the condition that he would not apply for a similar service on the same line sold by him, it
has been held that such an argument does not bar the seller from applying and that the
Public Service Commission, if it finds that there is public need for the new service applied for,
may properly grant the certificate requested. In other words the primary consideration is a
finding by the Commission that public interest and convenience require a given service and
that parties may not by agreement deprive the Commission of its power.
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(7) A case involving the grant of a Certificate of Public Convenience to the respondent
becomes moot and academic where the respondent ceases to be a bus operator, and it
should be dismissed.
Section 30. (a) The Commission may issue subpoenas and subpoenas duces tecum, for witnesses in
any matter or inquiry pending before the Commission and require the production of all books, papers,
tariffs, contracts, agreements, and all other documents, which the Commission may deem necessary in
any proceeding. such process shall be issued under the seal of the Commission, signed by one of the
Commissioners or by the secretary, and may be served by any person of full age, or by registered mail.
In case of disobedience to such subpoena, the Commission may invoke the said of the Supreme Court
or of any Court of First Instance of the Philippines in requiring the attendance and testimony of witness
and the production of books, papers, and documents under the provisions of this chapter, and the
Supreme Court, or any Court of First Instance of the Philippines within the jurisdiction of which such
inquiry is carried on, may in case of contumacy of refusal to obey a subpoena, issue to any public
service subject to the provisions of this Act, or to any person, an order requiring such public service or
other person to appear before the Commission and produce and papers if so ordered and give
evidence touching the matter; and any failure to obey such order of the court may be punished by such
court as a contempt thereof.
(b) Any person who shall neglect or refuse to answer any lawful inquiry or produce the
Commission books, paper, tariffs, contracts, agreements, and documents or other things
called for by said Commission, if in his power to do so, in obedience to the subpoena or
lawful inquiry of the Commission, upon conviction thereof by a court of competent jurisdiction,
shall be punished by a fine not exceeding five thousand pesos or by imprisonment not
exceeding one year, or both, in the discretion of the court.
(c) The Commissioner and associate commissioners, the chiefs of divisions, the attorneys of
the Commission, and the deputy secretaries shall have the power to administer oaths in all
matters under the jurisdiction of the Commission.
(d) Any person who shall testify falsely or make any false affidavit or oath before the
Commission or before any of its members shall be guilty of perjury, and upon conviction
thereof in a court of competent jurisdiction, shall be punished as provided by law.
(e) Witnesses appearing before the Commission in obedience to subpoena or subpoena
duces tecum, shall be entitled to receive the same fees and mileage allowance as witnesses
attending Courts of First Instance in civil cases.
(f) Any person who shall obstruct the Commission or either of the Commissioners while
engaged in the discharge of Official duties, or who shall conduct himself in a rude,
disrespectful or disorderly manner before the Commission or either of the Commissioners,
while engaged in the discharge of official duties, or shall orally or in writing be disrespectful
to, offend or insult either of the Commissioners on occasion or by reason of the performance
of official duties, upon conviction thereof by a court of competent jurisdiction, shall be
punished for each offense by a fine not exceeding one thousand pesos, or by imprisonment
not exceeding six months, or both, in the discretion of the court.
Section 31. No person shall be excused from testifying or from producing any book, document, or
paper in any investigation or inquiry by or upon the hearing before the Commission, when ordered so to
do by said Commission, except when the testimony or evidence required of him may tend to incriminate
him. Without the consent of the interested party no member or employee of the Commission shall be
compelled or permitted to give testimony in any civil suit to which the Commission is not a party, with
regard to secrets obtained by him in the discharge of his official duty.
Section 32. The Commission may, in any investigation or hearing, by its order in writing cause the
deposition of witnesses residing within or without the Philippines to be taken in the manner prescribed
by the Rules of Court. Where witnesses reside in places distant from Manila and it would be
inconvenient and expensive for them to appear personally before the Commission, the Commission
may, by proper order, commission any clerk of the Court of First Instance, municipal judge or justice of
the peace of the Philippines to take the deposition of witnesses in any case pending before the
Commission. It shall be the duty of the official so commissioned, to designated promptly a date or dates
for the taking of such deposition, giving timely notice to the parties, and on said date to proceed to take
the deposition, reducing it to writing. After the depositions have been taken, the official so
commissioned shall certify to the depositions taken and forward them as soon as possible to the
Commission. It shall be the duty of the respective parties to furnish stenographers for taking and
transcribing the testimony taken. in case the are no stenographers available, the testimony shall be
taken in long hand by such person as the clerk of court, the municipal judge or justice of the peace may
designate. The Commission may also commission a notary public to take the depositions in the same
manner herein provided.
The Commission may also, by proper order, authorize any of the attorneys of the legal division or
division chiefs of the Commission, if they be lawyers, to hear and investigate any case filed, with the
Commission and in connection therewith to receive such evidence as may be material thereto. At the
conclusion of the hearing or investigation, the attorney or division chief so authorized shall submit the
evidence received by him to the Commission to enable the latter to render its decision. (As amended by
Rep. Act No. 723.)
Section 33. Every order made by the Commission shall be served upon the person or public service
affected thereby, within ten days from the time said order is filed by personal delivery or by ordinary
mail, upon the attorney of record, or in case there be no attorney of record, upon the party interested;
and in case such certified copy is sent by registered mail, the registry mail receipt shall be prima facie
evidence of the receipt of such order by the public service in due course of mail. All orders of the
Commission to continue an existing service or prescribing rates to be charged shall be immediately
operative; all other orders shall become effective upon the dates specified thereon: Provided, however,
that orders, resolutions or decisions in converted matters and not referring to the continuance of an
existing service or prescribing rates to be charged shall not be effective unless otherwise provided by
the Commission, and shall take effect thirty days after notice to the parties.
Section 34. Any interested party may request the reconsideration of any order, ruling, or decision of the
Commission by means of a petition filed not later than fifteen days after the date of the notice of the
order, ruling, or decision in question. The grounds on which the request for reconsideration is based
shall be clearly and specifically stated in the petition. Copies of said petition shall be served on all
parties interested in the matter. It shall be the duty of the Commission to call a hearing to decide the
same promptly, either denying the petition or revoking or modifying the order, ruling or decision under
consideration.
Section 35. The Supreme Court is hereby given jurisdiction to review any order, ruling, or decision of
the Commission and to modify or set aside such order, ruling, or decision when it clearly appears that
there was no evidence before the Commission to support reasonably such order, ruling, or decision, or
that the same is contrary to law, or that it was without the jurisdiction of the Commission. The evidence
presented to the Commission, together with the record of the proceedings before the Commission, shall
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be certified by the secretary of the Commission to the Supreme Court. Any order, ruling, or decision of
the Commission may likewise be reviewed by the Supreme Court upon a writ of certiorari in proper
cases. The procedure for review, except as herein provided, shall be prescribed by rules of the
Supreme Court.
Section 36. Any other, ruling, or decision of the may be reviewed on the application of any person or
public service affected thereby, by certiorari in appropriate cases, or by petition, to be known as petition
for review, which shall be filed within thirty days from the notification of such order, ruling or decision, or
in case of a petition is filed in accordance with the preceding section for the reconsideration of such
order, ruling or decision and the same is denied it shall be filed within fifteen days after notice of the
order denying reconsideration. Said petition shall be placed on file in the office of the Clerk of the
Supreme Court who shall furnish copies thereof to the Secretary of the Commission and other parties
interested.
Section 37. The institution of a writ of certiorari or other special remedies in the Supreme Court shall in
no case supersede or stay any order, ruling or decision of the Commission, unless the Supreme Court
shall so direct, and the appellant may be required by the Supreme Court to give bond in such form and
of such amount as may be deemed proper.
Section 38. The chief of the legal division or any other attorneys of the Commission shall represent the
same in all judicial proceedings. It shall be the duty of the Solicitor General to represent the
Commission in any judicial proceedings if, for special reason, the Commissioner shall request his
intervention.
There is hereby created under the administrative supervision of the Secretary of Justice an office to be
known as the Office of the People's Counsel in the Public Service Commission. The people's Counsel
shall have two assistants and such number of employees as may be necessary to perform the functions
hereinafter specified. The People's Counsel and his assistants shall be appointed by the President of
the Philippines with the consent of the commission on appointments of the Congress of the Philippines.
The employees of the office of the People's Counsel shall be appointed by the Secretary of Justice
upon recommendation of the People's Counsel.
The People's Counsel and his assistants shall posses the qualifications of a provincial fiscal. The
People's Counsel shall receive compensation at the rate of seven thousand two hundred pesos per
annum, and the first and second assistant's People's Counsel, at the rate of six thousand pesos per
annum each.
The People's Counsel, his assistants, and the employees of the Office of the People's Counsel shall
not, during their continuance in office, intervene directly or indirectly in the management or control of, or
be financially interested directly or indirectly in any public service as defined in this Act.
It shall be the duty of the People's Counsel (1) to institute proceedings before the Commission, in
behalf of the public, for the purpose of fixing just and reasonable rates or charges to be followed and
observed by public services as herein defined, whenever he has reason to believe that the existing
rates or charges of such public services are unjust and unreasonable or unjustly discriminatory; (2) to
represent and appear for the public before the Commission or any court of the Philippines in every case
involving the interest of users of the products of, or service furnished by any public service under the
jurisdiction of the Commission; (3) to represent and appear for petitioners appearing before the
Commission for the purpose of complaining in matters of the rates and services; (4) to investigate the
service given by the rates charged by, and the valuation of the properties of the public services under
the jurisdiction of the Commission, and such other matters relating to said public services as affect the
interests of users of the products or service thereof, and to take all the steps necessary for the
protection of the interests of the person or persons or of the public affected thereby. In connection with
such investigation he is hereby empowered to issue subpoena or subpoena duces tecum.
The People's Counsel is authorized to call upon and obtain such assistance as he may deem
necessary in the performance of his duties from any officer or employee of any department, bureau,
office, agency, or instrumentality of the government including corporations owned, controlled or
operated by the government. (As amended by Rep. Act No. 178.)
Section 39. Any preceding in any court of the Philippines directly affecting an order of the Commission
or to which the Commission is a party, shall have preference over all other civil proceedings pending in
such court, except election cases.
CHAPTER VI
FEES
Section 40. The Commission is authorized and ordered to charge and collect from any public service or
applicant, as the case may be, the following fees as reimbursement of its expenses in the authorization,
supervision and/or regulation of public services:
(a) The charge of fifty pesos for the registration of:
(1) Applications under the provisions of Section sixteen (a), (b), (c), and (d), and
twenty (a), (b) (c), (e), (f), and (h): Provided however, That in case of transportation
services an additional filing fee of five pesos shall be charged for each additional
unit or vehicle in excess of five units or vehicles applied for: And provided, finally,
That no filing fee shall be collected for the reduction of rates if the same does not
alter or modify in any way the basic rates of the schedule.
(2) Applications for the approval or modification of maximum rates under Section
fourteen.
(b) Thirty pesos shall be collected from any operator of land transportation for the registration
of:
(1) Applications under Section seventeen (f).
(2) Applications for the extension of time covering a period of thirty days for the
registration of motor vehicles previously authorized by the Commission.
(c) The charge of thirty pesos for the filing of other applications by any public service operator
not specifically provided for in the preceding paragraphs of this section other than motions of
a temporary or incidental character: Provided, however, That fifteen pesos only shall be
collected for each certificate of public convenience or certificate of public convenience and
necessity in diploma form issued to a public service operator.
Page 15 of 16
(d) For annual reimbursement of the expenses incurred by the Commission for the
supervision and regulation of the operations of motor vehicle services:
(1) For each automobile, ten pesos.
(2) For each motor vehicle, truck, or trailer of less than two tons gross
transportation capacity, ten pesos.
(3) For each motor vehicle, truck, or trailer of two tons or more, but less than three
tons gross transportation capacity, twenty pesos.
(4) For each motor vehicle, truck, or trailer of three tons or more but less than four
tons gross transportation capacity, thirty pesos.
(5) Motor vehicles, trucks, trailers or buses of four tons or more gross capacity shall
pay at the rate of ten pesos per ton gross. The fees provided in paragraphs (d) and
(e) hereof shall be paid on or before September thirtieth of each year with a penalty
of fifty per centum in case of delinquency: Provided, further, That if the fees or any
balance thereof are not paid within sixty days from the said date, the penalty shall
be increased by one per centum for every month thereafter of delinquency:
Provided, however, That motor vehicles registered in the Motor Vehicles Office
after September thirtieth shall be exempt from payment for said year.
(e) For annual reimbursement of the expenses incurred by the Commission in the supervision
of other public services and/or in the regulation or fixing of their rates, twenty centavos for
each one hundred pesos or fraction thereof, of the capital stock subscribed or paid, or if no
shares have been issued, of the capital invested, or of the property and equipment,
whichever is higher.
(f) For the issue or increase of capital stock, twenty centavos for each one hundred pesos or
fraction thereof, of the increased capital.
(g) For each permit authorizing the increase of equipment, the installation of new units or
authorizing the increase of capacity. or the extension of means or general extension in the
services, twenty centavos for each one hundred pesos or fraction of the additional capital
necessary to carry out the permit.
(h) For the inspection or certification made in the meter laboratory of the Commission or each
apparatus or meter used by any public service, four pesos, and for examination made outside
the meter laboratory of the Commission, the additional expenses as may be incurred in
making the examination shall also be paid.
(i) For certification of copies of official documents in the files of the Commission, fifty
centavos plus fifty centavos for each page or folio so certified.
This section shall not be applicable to the Republic of the Philippines, nor to its instrumentalities.
Aside from the appropriations for the Commission under the annual General Appropriation Act, any
unexpended balance of the fees collected by the Commission under this section shall be constituted
receipts automatically appropriated each year, and together with any surplus in the standardizing meter
laboratory revolving fund under Commonwealth Act Numbered Three hundred forty-nine, shall be
disbursed by the Public Service Commissioner in accordance with special budgets to be approved by
the Department of Justice, the Budget Commission and the Office of the President of the Philippines for
additional needed personal services, maintenance and operating expenses, acquisition of urgently
needed vehicles, furniture and equipment, maintenance of an adequate reference library, acquisition of
a lot and building for the Commission, and other expenses necessary for efficient administration and
effective supervision and regulation of public services. (As amended by Com. Act No. 454 and RA No.
3792, approved June 22, 1963.)

CHAPTER VII
GENERAL AND TRANSITORY PROVISIONS

Section 41. A substantial compliance with the requirements of this Act shall be sufficient to give effect
to all the rules, orders, acts and regulations of the Commission and they shall not be declared
inoperative, illegal, or void for any omission of a technical nature in respect thereto.

Section 42. Copies of all official documents and orders filled or deposited in the office of the
Commission, certified by either of the commissioners, or by the secretary to be true copy of the original,
under the seal of the Commission shall be evidence in like manner as the originals in all courts of the
Philippines.

Section 43. The Commission created under this Act shall succeed the Commission created under Act
numbered thirty-one hundred and eight in the dispatch, hearing, and determination of all pending
matters before the latter; and shall take charge of its archives, books, furniture, equipment, and other
properties of whatsoever nature.

Section 44. In addition to the sum appropriated for the former commission under Act numbered forty-
one hundred and thirty-two, the General Appropriation Act for nineteen hundred and thirty-six, the sum
of six thousand seven hundred and sixty-eight pesos and thirty-four centavos is hereby appropriated
out of any funds in the Philippines Treasury not otherwise; and in addition to the sum appropriated
under Act numbered thirty-eight, the General Appropriation Act for nineteen hundred and thirty-seven,
the sum of twenty-three thousand six hundred and ten pesos, or so much thereof as may be necessary,
is hereby appropriated, out of any funds in the Philippines Treasury not otherwise appropriated, for
carrying out the purposes of this Act.

Section 45. If, any reason, any section, subsection, sentence, clauses or terms of this Act is held to the
unconstitutional such decision shall not affect the validity of the other provisions of this Act.

Section 46. Act numbered thirty-two hundred and forty-seven and Act numbered thirty-five hundred
and eighteen shall continue in force and effect; but all provisions of Act numbered thirty-one hundred
and eight and amendments thereof, and all other acts or parts or acts inconsistent with the provisions of
this Act are hereby repealed.

Section 47. This Act shall take effect upon its approval.

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