06 US V ANG TANG HO Digest With Full Case
06 US V ANG TANG HO Digest With Full Case
06 US V ANG TANG HO Digest With Full Case
US V. ANG TANG HO
G.R. No. 17122
W/N the delegation made by the Legislative body to the G-G was
constitutional?
Held:
No. Legislative powers cannot be delegated. What can be delegated is
the execution of the laws under acceptable standards, limiting
discretion of the executive. However, the constitution provides certain
specific exemptions. It is the duty of the Legislature to make the
law and the Executive to execute the law. The Legislature has no
authority to execute the law or construe, as well as the
Executive has no authority to make or construe a law. Subject to
the Constitution only, the power of each branch is supreme within its
own jurisdiction, and it is for the Judiciary only to say when any Act
of the Legislature is or not constitutional. All Legislative power is
vested in the Legislature, and the power conferred upon the
Legislature to make laws cannot be delegated to the G-G, or any one
else. The Legislature cannot delegate the legislative power to enact
any law. A law must be complete, in all its terms and provisions, when
it leaves the legislative branch of the government, and nothing must
be left to the judgment of the electors or the other appointee, so that,
in form and substance, it is a law in all its details. With the above
case, the Legislature left it to the sole discretion of the G-G to
say what was and what was not any cause, an extraordinary rise in
the price, and under certain undefined conditions to fix the price
should be sold, without regard to grade or quality, also to say a
proclamation should be issued, and if so whether or not the law should
be enforced, and its effective period. The Legislature did not
specify or define what was any cause and an extraordinary
rise in price. Neither did it specify or define the conditions
upon which the proclamation should be issued. In the absence of
the proclamation, no crime was committed. The alleged sale was made
a crime, if at all, because the G-G issued a proclamation.
Judgment of lower court is reversed and the defendant discharged.
FULL TEXT:
6
Republic of the Philippines
SUPREME COURT
Manila
EN BANC
G.R. No. 17122
(a) To prevent the monopoly and hoarding of, and speculation in, palay, rice or corn.
(b) To establish and maintain a government control of the distribution or sale of the
commodities referred to or have such distribution or sale made by the Government
itself.
(c) To fix, from time to time the quantities of palay rice, or corn that a company or
individual may acquire, and the maximum sale price that the industrial or merchant
may demand.
(d) . . .
SEC. 2. It shall be unlawful to destroy, limit, prevent or in any other manner obstruct
the production or milling of palay, rice or corn for the purpose of raising the prices
thereof; to corner or hoard said products as defined in section three of this Act; . . .
Section 3 defines what shall constitute a monopoly or hoarding of palay, rice or corn within
the meaning of this Act, but does not specify the price of rice or define any basic for fixing
the price.
SEC. 4. The violations of any of the provisions of this Act or of the regulations, orders
and decrees promulgated in accordance therewith shall be punished by a fine of not
more than five thousands pesos, or by imprisonment for not more than two years, or
both, in the discretion of the court: Provided, That in the case of companies or
corporations the manager or administrator shall be criminally liable.
SEC. 7. At any time that the Governor-General, with the consent of the Council of
State, shall consider that the public interest requires the application of the provisions
of this Act, he shall so declare by proclamation, and any provisions of other laws
inconsistent herewith shall from then on be temporarily suspended.
Upon the cessation of the reasons for which such proclamation was issued, the
Governor-General, with the consent of the Council of State, shall declare the
application of this Act to have likewise terminated, and all laws temporarily
suspended by virtue of the same shall again take effect, but such termination shall
not prevent the prosecution of any proceedings or cause begun prior to such
termination, nor the filing of any proceedings for an offense committed during the
period covered by the Governor-General's proclamation.
August 1, 1919, the Governor-General issued a proclamation fixing the price at which rice
should be sold.
August 8, 1919, a complaint was filed against the defendant, Ang Tang Ho, charging him
with the sale of rice at an excessive price as follows:
may not have been any cause, and the price may not have been extraordinary, and there
may not have been an emergency, but, if the Governor-General found the existence of such
facts and issued a proclamation, and rice is sold at any higher price, the seller commits a
crime.
By the organic law of the Philippine Islands and the Constitution of the United States all
powers are vested in the Legislative, Executive and Judiciary. It is the duty of the
Legislature to make the law; of the Executive to execute the law; and of the Judiciary to
construe the law. The Legislature has no authority to execute or construe the law, the
Executive has no authority to make or construe the law, and the Judiciary has no power to
make or execute the law. Subject to the Constitution only, the power of each branch is
supreme within its own jurisdiction, and it is for the Judiciary only to say when any Act of the
Legislature is or is not constitutional. Assuming, without deciding, that the Legislature itself
has the power to fix the price at which rice is to be sold, can it delegate that power to
another, and, if so, was that power legally delegated by Act No. 2868? In other words, does
the Act delegate legislative power to the Governor-General? By the Organic Law, all
Legislative power is vested in the Legislature, and the power conferred upon the Legislature
to make laws cannot be delegated to the Governor-General, or any one else. The
Legislature cannot delegate the legislative power to enact any law. If Act no 2868 is a law
unto itself and within itself, and it does nothing more than to authorize the Governor-General
to make rules and regulations to carry the law into effect, then the Legislature itself created
the law. There is no delegation of power and it is valid. On the other hand, if the Act within
itself does not define crime, and is not a law, and some legislative act remains to be done to
make it a law or a crime, the doing of which is vested in the Governor-General, then the Act
is a delegation of legislative power, is unconstitutional and void.
The Supreme Court of the United States in what is known as the Granger Cases (94 U.S.,
183-187; 24 L. ed., 94), first laid down the rule:
Railroad companies are engaged in a public employment affecting the public interest
and, under the decision in Munn vs. Ill., ante, 77, are subject to legislative control as
to their rates of fare and freight unless protected by their charters.
The Illinois statute of Mar. 23, 1874, to establish reasonable maximum rates of
charges for the transportation of freights and passengers on the different railroads of
the State is not void as being repugnant to the Constitution of the United States or to
that of the State.
It was there for the first time held in substance that a railroad was a public utility, and that,
being a public utility, the State had power to establish reasonable maximum freight and
passenger rates. This was followed by the State of Minnesota in enacting a similar law,
providing for, and empowering, a railroad commission to hear and determine what was a
just and reasonable rate. The constitutionality of this law was attacked and upheld by the
Supreme Court of Minnesota in a learned and exhaustive opinion by Justice Mitchell, in the
case of State vs. Chicago, Milwaukee & St. Paul ry. Co. (38 Minn., 281), in which the court
held:
Regulations of railway tariffs Conclusiveness of commission's tariffs. Under
Laws 1887, c. 10, sec. 8, the determination of the railroad and warehouse
commission as to what are equal and reasonable fares and rates for the
transportation of persons and property by a railway company is conclusive, and, in
proceedings by mandamus to compel compliance with the tariff of rates
recommended and published by them, no issue can be raised or inquiry had on that
question.
Same constitution Delegation of power to commission. The authority thus
given to the commission to determine, in the exercise of their discretion and
judgement, what are equal and reasonable rates, is not a delegation of legislative
power.
It will be noted that the law creating the railroad commission expressly provides
That all charges by any common carrier for the transportation of passengers and
property shall be equal and reasonable.
With that as a basis for the law, power is then given to the railroad commission to
investigate all the facts, to hear and determine what is a just and reasonable rate. Even
then that law does not make the violation of the order of the commission a crime. The only
remedy is a civil proceeding. It was there held
That the legislative itself has the power to regulate railroad charges is now too well
settled to require either argument or citation of authority.
The difference between the power to say what the law shall be, and the power to
adopt rules and regulations, or to investigate and determine the facts, in order to
carry into effect a law already passed, is apparent. The true distinction is between
the delegation of power to make the law, which necessarily involves a discretion as
to what it shall be, and the conferring an authority or discretion to be exercised under
and in pursuance of the law.
The legislature enacts that all freights rates and passenger fares should be just and
reasonable. It had the undoubted power to fix these rates at whatever it deemed
equal and reasonable.
They have not delegated to the commission any authority or discretion as to what the
law shall be, which would not be allowable, but have merely conferred upon it
an authority and discretion, to be exercised in the execution of the law, and under
and in pursuance of it, which is entirely permissible. The legislature itself has passed
upon the expediency of the law, and what is shall be. The commission is intrusted
with no authority or discretion upon these questions. It can neither make nor unmake
a single provision of law. It is merely charged with the administration of the law, and
with no other power.
The delegation of legislative power was before the Supreme Court of Wisconsin in
Dowling vs. Lancoshire Ins. Co. (92 Wis., 63). The opinion says:
"The true distinction is between the delegation of power to make the law, which
necessarily involves a discretion as to what it shall be, and conferring authority or
discretion as to its execution, to be exercised under and in pursuance of the law. The
first cannot be done; to the latter no valid objection can be made."
The act, in our judgment, wholly fails to provide definitely and clearly what the standard
policy should contain, so that it could be put in use as a uniform policy required to take the
place of all others, without the determination of the insurance commissioner in respect to
maters involving the exercise of a legislative discretion that could not be delegated, and
without which the act could not possibly be put in use as an act in confirmity to which all fire
insurance policies were required to be issued.
The result of all the cases on this subject is that a law must be complete, in all its terms and
provisions, when it leaves the legislative branch of the government, and nothing must be left
to the judgement of the electors or other appointee or delegate of the legislature, so that, in
form and substance, it is a law in all its details in presenti, but which may be left to take
effect in futuro, if necessary, upon the ascertainment of any prescribed fact or event.
The delegation of legislative power was before the Supreme Court in United
States vs. Grimaud (220 U.S., 506; 55 L. ed., 563), where it was held that the rules and
regulations of the Secretary of Agriculture as to a trespass on government land in a forest
reserve were valid constitutional. The Act there provided that the Secretary of Agriculture ". .
. may make such rules and regulations and establish such service as will insure the object
of such reservations; namely, to regulate their occupancy and use, and to preserve the
forests thereon from destruction;and any violation of the provisions of this act or such rules
and regulations shall be punished, . . ."
The brief of the United States Solicitor-General says:
In refusing permits to use a forest reservation for stock grazing, except upon stated
terms or in stated ways, the Secretary of Agriculture merely assert and enforces the
proprietary right of the United States over land which it owns. The regulation of the
Secretary, therefore, is not an exercise of legislative, or even of administrative,
power; but is an ordinary and legitimate refusal of the landowner's authorized agent
to allow person having no right in the land to use it as they will. The right of
proprietary control is altogether different from governmental authority.
The opinion says:
From the beginning of the government, various acts have been passed conferring
upon executive officers power to make rules and regulations, not for the
government of their departments, but for administering the laws which did govern.
None of these statutes could confer legislative power. But when Congress had
legislated power. But when Congress had legislated and indicated its will, it could
give to those who were to act under such general provisions "power to fill up the
details" by the establishment of administrative rules and regulations, the violation of
which could be punished by fine or imprisonment fixed by Congress, or by penalties
fixed by Congress, or measured by the injury done.
That "Congress cannot delegate legislative power is a principle universally
recognized as vital to the integrity and maintenance of the system of government
ordained by the Constitution."
If, after the passage of the act and the promulgation of the rule, the defendants drove
and grazed their sheep upon the reserve, in violation of the regulations, they were
making an unlawful use of the government's property. In doing so they thereby made
themselves liable to the penalty imposed by Congress.
The subjects as to which the Secretary can regulate are defined. The lands are set apart as
a forest reserve. He is required to make provisions to protect them from depredations and
from harmful uses. He is authorized 'to regulate the occupancy and use and to preserve the
forests from destruction.' A violation of reasonable rules regulating the use and occupancy
of the property is made a crime, not by the Secretary, but by Congress."
The above are leading cases in the United States on the question of delegating legislative
power. It will be noted that in the "Granger Cases," it was held that a railroad company was
a public corporation, and that a railroad was a public utility, and that, for such reasons, the
legislature had the power to fix and determine just and reasonable rates for freight and
passengers.
The Minnesota case held that, so long as the rates were just and reasonable, the legislature
could delegate the power to ascertain the facts and determine from the facts what were just
and reasonable rates,. and that in vesting the commission with such power was not a
delegation of legislative power.
The Wisconsin case was a civil action founded upon a "Wisconsin standard policy of fire
insurance," and the court held that "the act, . . . wholly fails to provide definitely and clearly
what the standard policy should contain, so that it could be put in use as a uniform policy
required to take the place of all others, without the determination of the insurance
commissioner in respect to matters involving the exercise of a legislative discretion that
could not be delegated."
The case of the United States Supreme Court, supra dealt with rules and regulations which
were promulgated by the Secretary of Agriculture for Government land in the forest reserve.
These decisions hold that the legislative only can enact a law, and that it cannot delegate it
legislative authority.
The line of cleavage between what is and what is not a delegation of legislative power is
pointed out and clearly defined. As the Supreme Court of Wisconsin says:
That no part of the legislative power can be delegated by the legislature to any other
department of the government, executive or judicial, is a fundamental principle in
constitutional law, essential to the integrity and maintenance of the system of
government established by the constitution.
Where an act is clothed with all the forms of law, and is complete in and of itself, it
may be provided that it shall become operative only upon some certain act or event,
or, in like manner, that its operation shall be suspended.
The legislature cannot delegate its power to make a law, but it can make a law to
delegate a power to determine some fact or state of things upon which the law
makes, or intends to make, its own action to depend.
The Village of Little Chute enacted an ordinance which provides:
All saloons in said village shall be closed at 11 o'clock P.M. each day and remain
closed until 5 o'clock on the following morning, unless by special permission of the
president.
Construing it in 136 Wis., 526; 128 A. S. R., 1100, 1 the Supreme Court of that State says:
We regard the ordinance as void for two reasons; First, because it attempts to confer
arbitrary power upon an executive officer, and allows him, in executing the
ordinance, to make unjust and groundless discriminations among persons similarly
situated; second, because the power to regulate saloons is a law-making power
vested in the village board, which cannot be delegated. A legislative body cannot
delegate to a mere administrative officer power to make a law, but it can make a law
with provisions that it shall go into effect or be suspended in its operations upon the
ascertainment of a fact or state of facts by an administrative officer or board. In the
present case the ordinance by its terms gives power to the president to decide
arbitrary, and in the exercise of his own discretion, when a saloon shall close. This is
an attempt to vest legislative discretion in him, and cannot be sustained.
The legal principle involved there is squarely in point here.
It must be conceded that, after the passage of act No. 2868, and before any rules and
regulations were promulgated by the Governor-General, a dealer in rice could sell it at any
price, even at a peso per "ganta," and that he would not commit a crime, because there
would be no law fixing the price of rice, and the sale of it at any price would not be a crime.
That is to say, in the absence of a proclamation, it was not a crime to sell rice at any price.
Hence, it must follow that, if the defendant committed a crime, it was because the GovernorGeneral issued the proclamation. There was no act of the Legislature making it a crime to
sell rice at any price, and without the proclamation, the sale of it at any price was to a crime.
The Executive order2 provides:
(5) The maximum selling price of palay, rice or corn is hereby fixed, for the time
being as follows:
In Manila
Palay at P6.75 per sack of 57 kilos, or 29 centavos per ganta.
Rice at P15 per sack of 57 kilos, or 63 centavos per ganta.
Corn at P8 per sack of 57 kilos, or 34 centavos per ganta.
In the provinces producing palay, rice and corn, the maximum price shall be the
Manila price less the cost of transportation from the source of supply and necessary
handling expenses to the place of sale, to be determined by the provincial treasurers
or their deputies.
In provinces, obtaining their supplies from Manila or other producing provinces, the
maximum price shall be the authorized price at the place of supply or the Manila
price as the case may be, plus the transportation cost, from the place of supply and
the necessary handling expenses, to the place of sale, to be determined by the
provincial treasurers or their deputies.
(6) Provincial treasurers and their deputies are hereby directed to communicate with,
and execute all instructions emanating from the Director of Commerce and Industry,
for the most effective and proper enforcement of the above regulations in their
respective localities.
The law says that the Governor-General may fix "the maximum sale price that the industrial
or merchant may demand." The law is a general law and not a local or special law.
The proclamation undertakes to fix one price for rice in Manila and other and different prices
in other and different provinces in the Philippine Islands, and delegates the power to
determine the other and different prices to provincial treasurers and their deputies. Here,
then, you would have a delegation of legislative power to the Governor-General, and a
delegation by him of that power to provincial treasurers and their deputies, who "are hereby
directed to communicate with, and execute all instructions emanating from the Director of
Commerce and Industry, for the most effective and proper enforcement of the above
regulations in their respective localities." The issuance of the proclamation by the Governor-
General was the exercise of the delegation of a delegated power, and was even a sub
delegation of that power.
Assuming that it is valid, Act No. 2868 is a general law and does not authorize the
Governor-General to fix one price of rice in Manila and another price in Iloilo. It only
purports to authorize him to fix the price of rice in the Philippine Islands under a law, which
is General and uniform, and not local or special. Under the terms of the law, the price of rice
fixed in the proclamation must be the same all over the Islands. There cannot be one price
at Manila and another at Iloilo. Again, it is a mater of common knowledge, and of which this
court will take judicial notice, that there are many kinds of rice with different and
corresponding market values, and that there is a wide range in the price, which varies with
the grade and quality. Act No. 2868 makes no distinction in price for the grade or quality of
the rice, and the proclamation, upon which the defendant was tried and convicted, fixes the
selling price of rice in Manila "at P15 per sack of 57 kilos, or 63 centavos per ganta," and
is uniform as to all grades of rice, and says nothing about grade or quality. Again, it will be
noted that the law is confined to palay, rice and corn. They are products of the Philippine
Islands. Hemp, tobacco, coconut, chickens, eggs, and many other things are also products.
Any law which single out palay, rice or corn from the numerous other products of the Islands
is not general or uniform, but is a local or special law. If such a law is valid, then by the
same principle, the Governor-General could be authorized by proclamation to fix the price of
meat, eggs, chickens, coconut, hemp, and tobacco, or any other product of the Islands. In
the very nature of things, all of that class of laws should be general and uniform. Otherwise,
there would be an unjust discrimination of property rights, which, under the law, must be
equal and inform. Act No. 2868 is nothing more than a floating law, which, in the discretion
and by a proclamation of the Governor-General, makes it a floating crime to sell rice at a
price in excess of the proclamation, without regard to grade or quality.
When Act No. 2868 is analyzed, it is the violation of the proclamation of the GovernorGeneral which constitutes the crime. Without that proclamation, it was no crime to sell rice
at any price. In other words, the Legislature left it to the sole discretion of the GovernorGeneral to say what was and what was not "any cause" for enforcing the act, and what was
and what was not "an extraordinary rise in the price of palay, rice or corn," and under certain
undefined conditions to fix the price at which rice should be sold, without regard to grade or
quality, also to say whether a proclamation should be issued, if so, when, and whether or
not the law should be enforced, how long it should be enforced, and when the law should be
suspended. The Legislature did not specify or define what was "any cause," or what was
"an extraordinary rise in the price of rice, palay or corn," Neither did it specify or define the
conditions upon which the proclamation should be issued. In the absence of the
proclamation no crime was committed. The alleged sale was made a crime, if at all,
because the Governor-General issued the proclamation. The act or proclamation does not
say anything about the different grades or qualities of rice, and the defendant is charged
with the sale "of one ganta of rice at the price of eighty centavos (P0.80) which is a price
greater than that fixed by Executive order No. 53."
We are clearly of the opinion and hold that Act No. 2868, in so far as it undertakes to
authorized the Governor-General in his discretion to issue a proclamation, fixing the price of
rice, and to make the sale of rice in violation of the price of rice, and to make the sale of rice
in violation of the proclamation a crime, is unconstitutional and void.
It may be urged that there was an extraordinary rise in the price of rice and profiteering,
which worked a severe hardship on the poorer classes, and that an emergency existed, but
the question here presented is the constitutionality of a particular portion of a statute, and
none of such matters is an argument for, or against, its constitutionality.
The Constitution is something solid, permanent an substantial. Its stability protects the life,
liberty and property rights of the rich and the poor alike, and that protection ought not to
change with the wind or any emergency condition. The fundamental question involved in
this case is the right of the people of the Philippine Islands to be and live under a republican
form of government. We make the broad statement that no state or nation, living under
republican form of government, under the terms and conditions specified in Act No. 2868,
has ever enacted a law delegating the power to any one, to fix the price at which rice should
be sold. That power can never be delegated under a republican form of government.
In the fixing of the price at which the defendant should sell his rice, the law was not dealing
with government property. It was dealing with private property and private rights, which are
sacred under the Constitution. If this law should be sustained, upon the same principle and
for the same reason, the Legislature could authorize the Governor-General to fix the price of
every product or commodity in the Philippine Islands, and empower him to make it a crime
to sell any product at any other or different price.
It may be said that this was a war measure, and that for such reason the provision of the
Constitution should be suspended. But the Stubborn fact remains that at all times the
judicial power was in full force and effect, and that while that power was in force and effect,
such a provision of the Constitution could not be, and was not, suspended even in times of
war. It may be claimed that during the war, the United States Government undertook to, and
did, fix the price at which wheat and flour should be bought and sold, and that is true. There,
the United States had declared war, and at the time was at war with other nations, and it
was a war measure, but it is also true that in doing so, and as a part of the same act, the
United States commandeered all the wheat and flour, and took possession of it, either
actual or constructive, and the government itself became the owner of the wheat and flour,
and fixed the price to be paid for it. That is not this case. Here the rice sold was the
personal and private property of the defendant, who sold it to one of his customers. The
government had not bought and did not claim to own the rice, or have any interest in it, and
at the time of the alleged sale, it was the personal, private property of the defendant. It may
be that the law was passed in the interest of the public, but the members of this court have
taken on solemn oath to uphold and defend the Constitution, and it ought not to be
construed to meet the changing winds or emergency conditions. Again, we say that no state
or nation under a republican form of government ever enacted a law authorizing any
executive, under the conditions states, to fix the price at which a price person would sell his
own rice, and make the broad statement that no decision of any court, on principle or by
analogy, will ever be found which sustains the constitutionality of the particular portion of Act
No. 2868 here in question. By the terms of the Organic Act, subject only to constitutional
limitations, the power to legislate and enact laws is vested exclusively in the Legislative,
which is elected by a direct vote of the people of the Philippine Islands. As to the question
here involved, the authority of the Governor-General to fix the maximum price at which
palay, rice and corn may be sold in the manner power in violation of the organic law.
This opinion is confined to the particular question here involved, which is the right of the
Governor-General, upon the terms and conditions stated in the Act, to fix the price of rice
and make it a crime to sell it at a higher price, and which holds that portions of the Act
unconstitutional. It does not decide or undertake to construe the constitutionality of any of
the remaining portions of the Act.
The judgment of the lower court is reversed, and the defendant discharged. So ordered.
Araullo, C.J., Johnson, Street and Ostrand, JJ., concur.
Romualdez, J., concurs in the result.