Roig v. Sugar Board

77 P.R. 324
CourtSupreme Court of Puerto Rico
DecidedNovember 5, 1954
DocketNo. 1
StatusPublished

This text of 77 P.R. 324 (Roig v. Sugar Board) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roig v. Sugar Board, 77 P.R. 324 (prsupreme 1954).

Opinion

Mr. Chief Justice Snyder

delivered the opinion of the Court.

The question presented by this case is the validity of §6(c) of Act No. 426, Laws of Puerto Rico, 1951, known as the “Sugar Act of Puerto Rico”, which provides that “In those cases where portable tracks have been used by the central for the transportation of a colono’s cane, the central shall be bound to furnish to the colono, without any cost whatsoever to the colono, the said portable tracks and the necessary rolling material; and it shall also be bound to pay to the colono, as hauling expenses, five (5) cents for each ton of cane.”

Sugar cane grown by a number of colonos is ground at Central Roig, owned by Antonio Roig Suers., S. en C., hereinafter referred to as Roig. These colonos transport and haul their cane to the sidings designated by the central in the manner described in § 6(c); i.e., on portable tracks and cane cars owned by Roig. However, the latter refused to pay these colonos five cents per ton of cane for such hauling expenses as required by § 6 (c). On the contrary, Roig charged them ten cents per ton for the use of its portable tracks.

The Sugar Board of Puerto Rico issued an order requiring Roig to show cause why it was not complying with § 6(c). After a hearing, at which Roig argued that § 6(c) was unconstitutional, on June 18, 1952 the Board entered an order requiring Roig (1) to reimburse its colonos for the money collected from them for the use of its portable tracks; (2) to supply portable tracks and the necessary rolling material to its colonos without cost; (3) to pay its colonos fivé cents per ton of cane hauled to date by means of portable tracks; and (4) to pay five cents per ton for cane which is thereafter hauled in the same manner.1 [327]*327Pursuant to § 33 of Act No. 426, Roig filed in this Court a petition for review of the order of the Board.

The petitioner argues that the division of its business known as Central Roig is engaged exclusively in the industrial, as distinguished from the agricultural, phase of the sugar industry; and that it is a violation of Federal and local due process of law to require it (a) to furnish its colonos, who are in the agricultural phase of the industry, portable tracks and cane cars free of charge, and (b) to pay the said colonos five cents per ton of cane for hauling expenses, as provided in § 6 (c) .2

Roig apparently believes that there are two airtight compartments of the sugar business — industrial and agricultural — which are completely separate from each other and which cannot be treated together by the Legislative Assembly as one industry for purposes of regulation. We can see no basis for .this position. As hereinafter noted, both Federal and State legislation regulating the sugar industry as a whole have been sustained. Act No. 426 similarly regulates the entire industry in Puerto Rico, including both the agricultural and the industrial phases. We find nothing improper or invalid in that approach.

Roig cites a number of cases for the proposition that the agricultural and industrial phases of the sugar industry must be treated separately. But. these cases do not support this theory.3 Most of them arose under statutes which by [328]*328definition created the two different categories of agricultural and industrial phases of the sugar industry for tax and wage purposes. Under these statutes different wages and taxes were paid, depending on whether an activity was agricultural or industrial as defined in the statutes. But the delineation between agricultural and industrial phases of the sugar business in these statutes is not sacrosanct and is not found in Act No. 426. The cases decided under statutes which distinguish between these two phases of the industry for wage and tax purposes are therefore not relevant here.4

The principal contention of the petitioner is that §6(c) violates Federal due process and the due process clause — § 7 of Article II — of the Constitution of the Commonwealth of Puerto Rico.5 Roig relies on cases holding [329]*329that it violates due process to require as public utilities (1) that electric companies furnish consumers with electric light bulbs; (2) that railroads install and maintain scales or spur tracks; and (8) that ráilroads furnish the use of their facilities to another company. Some of the cases it cites concern the question of whether public service commissions may regulate or prohibit such things as the sale of appliances and charges for repairs and wiring by public utilities.6

Here again the cases cited by Roig have no bearing on the problem before us. There are a number of ways in which those cases are distinguishable. But the most important difference between them and the situation here is that, Act No. 426 regulates the sugar industry in Puerto Rico. .Consequently, the question of whether its provisions violate due process of law must be determined in the light of the conditions and problems of that particular business. Nebbia v. New York, 291 U.S. 502, 525.7

[330]*330Roig asserts cryptically that it violates due process to require it (a) to permit colonos to use its railroad facilities free and (b) to pay colonos for hauling their own cane. But § 6(c), which contains these requirements, cannot be examined in isolation. It must be read together with the other provisions of Act No. 426 against the background of the sugar industry in Puerto Rico.

No industry has been more extensively regulated in the public interest than the sugar business in Puerto Rico. Act No. 112, Laws of Puerto Rico, 1937, established uniform standards and participations for the grinding of sugar cane by mills for colonos. The validity of this Act under the due process clause as applied to the operator of a particular mill was unsuccessfully challenged in Vidal v. Fernández, 104 F.2d 606 (C.A. 1, 1939) cert. denied, 308 U.S. 602.

Act No. 221, Laws of Puerto Rico, 1942, abandoned the approach used in Act No. 112 of providing uniform partici-pations for the grinding of colono cane.8 Instead, under Act No. 221 the mills were declared to be public utilities and the Public Service Commission was required to fix for each mill the individual rate for grinding colono cane which would yield to the particular mill a fair return on the fair value of its property devoted to such service. We sustained the validity of Act No. 221 insofar as it required a mill which ground only its own cane to obtain a “franchise” from the Public Service Commission. People v. A. Roig, Sucrs., 63 P.R.R. 17. In affirming this judgment, the Court of Appeals construed a “franchise” under those circumstances as a “license”. Roig v. People of Puerto Rico, 147 F.2d 87 (C.A. 1, 1946). Cf. Duke, Comment, 30 Cornell L. Q. 243.

After nine years of experience under Act No. 221, the Legislative Assembly once more made an important change [331]*331of policy in the regulation of the'sugar industry in Puerto Rico. It repealed Act No. 221.9 And it replaced it with Act No. 426 of 1951.

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77 P.R. 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roig-v-sugar-board-prsupreme-1954.