People v. Roig

63 P.R. 17
Supreme Court of Puerto Rico·Decided February 1, 1944·No. No. 8803·Published

Opinion

Mr. Justice Todd, Jr.,

delivered the opinion of the court.

The legal problem brought before us for decision is whether or not Act No. 221, approved May 12, 1942, by means of which all sugar companies in Puerto Eico were declared by our Legislature to he public service enterprises1, violates the due process clause contained in § 2 of our Organic Act, by requiring the respondent partnership, which alleges that it is not serving, nor wishes to serve the public at large, to obtain a franchise from the Public Service Commission, and thereby submit to the provisions of said law. The facts, briefly stated, are the following:

Antonio Roig, Sucrs., S. en C., is the owner of two sugar-mills in the district of Humacao — “ Central Eoig” and “Central “El Ejemplo.” At “Central Eoig,” in addition to its own sugar cane, appellant grinds cane belonging to other colonos, and in so far as this mill is concerned it complied with the terms of Act No. 221, having petitioned for and obtained the franchise which said Act requires.2 In regard [19] to “Central El Ejemplo” the appellant refused to petition for a franchise alleging that due to the fact that it does not grind, nor has the intention or desire to grind other sugar cane than its own, the Legislature lacks power to require it to obtain said franchise and to impose upon it the regulations contained in Act No. 221; that its business is of [20] a private nature, and one in which, the public cannot be interested, and that, therefore, it cannot be converted into a public enterprise by mere legislative fiat.

The Attorney General of Puerto Rico, acting in accordance with § 55 of Act 2213, filed in the lower court a petition for an injunction in the name, of The People of Puerto Rico, wherein he prayed that Antonio Roig, Sucrs., S. en C., be enjoined from grinding its sugar cane unless it previously obtained said franchise, thereby submitting to the jurisdiction of the Commission. The lower court granted the injunction and it is from that judgment that this appeal has been taken.

Appellant assigns four errors, and later consolidates the first three into one which reads as follows:

“Act No. 221 of May 12, 1942, is tinconstitational and void in so far as it tries to convert a private business into a public service enterprise, under the guise of the power to regulate within the police power. ’;

Before delving further into the legal problem before us it is well to note that appellant admits it does not challenge “the authority of the Legislature of Puerto Rico, within the police power, to regulate a private business affected witfi a public interest, such as is. and has always been the case with the sugar industry of Puerto Rico.” It argues, further, that the lower court’s error 1 consists “in having mistaken the Legislature’s authority, within the police power, to regulate a business affected with a public interest — authority which it undoubtedly has — with the authority to force private property to be dedicated to a public use, without the consent of [21] its owner — authority which it does not have, according to all the decisions of1 the U. S. Supreme Court. The lower court was so impressed by the great public interest with which the sugar industry in Puerto Pico is affected that it completely forgot to consider the second indispensable condition to the requiring of a franchise, to wit: that the owner of the business dedicate Ms property to serving the public or that he actually serve the publicTherefore, the appellant’s contention is “that the Legislature of Puerto Pico lacks authority to convert a private business into a public service enterprise, so long as its ovtner refrains from serving the piiblic or dedicating it to the public service, even though (said business) is affected with a public interest.” So that appellant admits, at least by implication, that all sugar mills in Puerto Pico, such as its own “Central Roig,” wherein cane belonging to colonos is ground, may validly be declared .public service companies, but not so in the case of those mills, such as “Central El Ejemplo,” wherein cane belonging to colonos is not ground. Also, and this is of great importance in deciding this case, appellant expressly concedes the authority of the Legislature, within its police.power, to.reasonably and justly regulate prices, contracts, wages and hours, even in the case of “Central El Ejemplo.” To sum up, therefore, appellant only challenges,. according to paragraph 5 of its answer, the power of the Legislature' to require it to obtain a franchise “in order to grind its own sugar cane at its own sugar mill.”

We see, therefore, that no controversy whatsoever exists in regard to the fact that the sugar industry in Puerto Pico is affected with a great public interest.

A large portion of the statement of motives contained in Act No. 221, does nothing more than transcribe paragraphs from the opinions of the Insular and Federal courts wherein judicial notice is taken of the importance of the sugar industry to the economy of the Island. In order not to unduly [22] extend this opinion we limit ourselves to noting the origin of said paragraphs.4

However, the Legislature’s declaration that a business is affected with a public interest, ratified by the courts, and the acceptance of this fact by the parties in a particular case, is not conclusive as to whether or not the regulation contained in the law is justified. Not only the regulation, but’ even the circumstances which may be invoked as furnishing grounds for declaring that a private business is affected with a public interest, when this fact is not admitted, are always subject to judicial inquiry, not. in order that we may have our point of view on the question prevail, but in order for us to pass upon the reasonableness of the legislative determination thereon.

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