In estimating the depreciation, the effect of the use of the equipment, its actualcondition, the age of the model, or other circumstances affecting its value inthe market shall be taken into consideration. The foregoing is likewise applicable to any extension or amendment of certificatesactually in force and to those which may hereafter be issued, to permits tomodify itineraries and time schedules of public services and to authorizationsto renew and increase equipment and properties. ●Sec. 16 (a), Commonwealth Act. 146 –The Commission is empowered toissue certificates of public convenience whenever it finds that the operationof the public service proposed and the authorization to do business willpromote the public interests in a proper and suitable manner. ●Sec. 6, Art. XII, 1935 Consti –the State may, in the interest of nationalwelfareanddefense,establishandoperateindustriesandmeansoftransportation and communication, and, upon payment of just compensation,transfer to public utilities and other private enterprises to be operated by theGovernment. ●Sec. 8, Art. XIII, 1935 Consti –no franchise, certificate, or any other form ofauthorization for the operation of a public utility shall be for a longer periodthan fifty (50) years. Facts: ●PangasinanTransCo.(PTC)hasbeenengagedinthebusinessoftransporting passengers for the past 20 years. This is done in the provincesof Pangasinan, Tarlac, Nueva Ecija, and Zambales, by means of motorvehicles commonly known as TPU buses, in accordance with the terms andconditions of the certificates of public convenience issued in its favor by theformer Public Utility Commission. ●On August 1939, PTC filed with the Public Service Commission (PSC) anapplication for authorization to operate ten additional new Brockway trucksonthegroundthattheywereneededto comply with the terms andconditions of its existing certificates and as a result of the application of theEight Hour Labor Law. ●PSC granted the application with two conditions that the certificate ofpublic convenience will only be valid in the duration of 25 yearsfromthepromulgationandthatthePTCmaybeacquiredbytheCommonwealth of the Philippines or by any instrumentality thereofuponpaymentofthecostpriceofitsusefulequipment,lessreasonable depreciationto be fixed by the Commission at the time of itsacquisition. oPTC did not agree to these conditions and filed a motion forreconsideration but was thereafter denied. ●The present petition for a writ of certiorari was instituted praying that thecourt, after hearing, render a decision declaring Sec. 1 of Commonwealth
Act No. 454 unconstitutional and void; that, if the court should be of theopinion that Sec. 1 is constitutional, a decision be rendered declaring thatthe provisions thereof are not applicable to valid and subsisting certificatesissued prior June 8, 1939 (effectivity of Sec. 1).
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