Mercado e Hijos v. Puerto Rico Sugar Board

95 P.R. 831
Supreme Court of Puerto Rico·Decided March 27, 1968·No. Nos. JA-66-1, JA-66-2, JA-66-3·Published

Opinion

Mr. Justice Blanco Lugo

delivered the opinion of the Court.

The Sugar Producers’ Association of Puerto Rico, Mario Mercado e Hijos, and the Land Authority, operators of sugar mills, challenge the decision of the Puerto Rico Sugar Board of July 21, .1965, ordering them to pay to the colonos the compensation for transportation and hauling corresponding to the grinding seasons-of 1963 and 1964 without any limitation whatsoever by reason of the distance traveled, thereby eliminating the one-dollar maximum which had prevailed by law until then. According to the. estimate of the Board, it represents an additional payment ,of $836,031.58 by the centrals for the 1963 grinding season and approximately $809,565 for 1964.

iv.

In 1951 when the Sugar Act of Puerto. Rico, Act' No.' 426 of .May 13, 1951 • (Sess. ■ Laws, p. .1138), was approved, the Legislature specifically established in § -6'the conditions for the transportation and "hauling of the. colono’s sugarcane. In the event that the central did. not provide such means of transportation- from the colono’sÍBxm to the central it provided that: ■ \. •. • . -,

“(b) In those cases where the colono transports his cane, the central shall compensate him at the basic;rate of. fifteen (15) cents for each ton of cane transported, as hauling expenses, plus-the sum of . five (5) cents, for each ton per kilometer,- from the farm' to the -point of delivery,- provided the distance, to be eover.ed from the . farm to the. point delivery ■ is., one-half kilometer oi more ¡ ' Provided,. That the colono, shall be entitled [833] to receive the basic, compensation of fifteen. (15) cents even if the distance to-be covered from the farm to the -point of delivery is less than one-half kilometer. For the purpose of this compensation, the distance shall be determined from the normal or natural exit in the colono’s farm where the cane was cut, to the point of delivery designated by the central. If upon determining the weight and the distance in the transportation and hauling of the cane, there results a fraction of- a kilometer or of a ton, a proportional compensation shall in -both cases be paid for such fraction.”

As a limitation to the compensation which- the central was-bound to pay on this account, subdivision, (e) stated that:

' “(e)' •, . ' • ’;
In no case shall the central be under obligation to pay ,more: than one dollar for transportation and hauling.
ff

Eleven years-later subdivision (e) of .§. 6, 5 L.P.R.A.. § 375, .was amended.by Act No. 54 of June 19, 1962 (Sess. Laws, p. 120) eliminating the maximum amount of-one dob lar, and incorporating the provision copied below which transferred to the Sugar Board the power to establish the compensation for transportation and hauling:1

"Notwithstanding the provisions" of this section, the Board' may, after hearing the parties, increase the' compensation fixed for transportation and-hauling to be paid-by the centrals to. the colono, which compensation shall prevail, and the Board may likewise fix the maximum amount that in each case the central shall be under obligation to pay for transportation and hauling.” .

On March 25, 1964, the Sugar Board decided to hold public, hearings for the purpose of considering a petition of [834] the Farmers’ Association of Puerto Rico to increase the compensation for transportation and hauling paid to the colonos who personally perform the transportation of their cane from their farms to the place of delivery to the central, from 15 to 24 cents per ton of cane transported and from 5 to 8 cents for each ton of cane per kilometer covered.2

After several preliminary incidents which we need not recite here, the Sugar Producers’ Association filed on May 18, 1964, a petition to fix the maximum amount of one dolíal-as the compensation to be paid to colonos for transportation and hauling. Said petition was considered jointly with that presented by the Farmers’ Association. Several hearings were held during which the colonos as well as the centrals offered oral and documentary evidence.

On February 26, 1965, the Board entered an extensive decision denying the petition of the Farmers’ Association of Puerto Rico on the ground that it had not been established that the colonos, although they had to pay higher costs for transportation, had received an inadequate pay for their cane or suffered losses or had insufficient profits as cane producers.3

As to the petition of the Sugar Producers’ Association of Puerto Rico to fix a maximum compensation, the Board adopted Rule No. 11 fixing a maximum compensation of one dollar effective as of the grinding season of 1963.4

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Mercado e Hijos v. Puerto Rico Sugar Board, 95 P.R. 831 (prsupreme 1968).

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