 Application was made at Cebu, Citizens or native inhabitants of liberty, or property without due

G.R. No. 15574

the home port of the vessel, to the Philippine Islands; (b) citizens process of law, or deny to any
September 17, 1919 the Collector of Customs for a of the United States residing in person therein the equal
SMITH, BELL & COMPANY certificate of Philippine registry. the Philippine Islands; (c) any protection of the laws."
(LTD.), corporation or company
vs.  The Collector refused to issue composed wholly of citizens of  Counsel says that Act No. 2761
JOAQUIN NATIVIDAD the certificate, giving as his the Philippine Islands or of the denies to Smith, Bell & Co.,
reason that all the stockholders United States or of both, Ltd., the equal protection of the
of Smith, Bell & Co., Ltd., were created under the laws of the laws because it, in effect,
DOCTRINE: Equal Protection not citizens either of the United prohibits the corporation from
United States, or of any State
States or of the Philippine thereof, or of thereof, or the owning vessels, and because
Islands. managing agent or master of the classification of corporations
The first paragraph of the Philippine
Bill of Rights of the Philippine Bill, vessel resides in the Philippine based on the citizenship of one
 The instant action(A writ or more of their stockholders is
repeated again in the first of mandamus) is the result. Islands
paragraph of the Philippine Bill of capricious, and that Act No.
Rights as set forth in the Jones Law,  On February 23, 1918, the 2761 deprives the corporation
provides "That no law shall be Philippine Legislature enacted of its properly without due
enacted in said Islands which shall Any vessel of more than fifteen process of law because by the
Act No. 2761. The first section gross tons which on February 8,
deprive any person of life, liberty, or passage of the law company
property without due process of law, of this law amended section 1918, had a certificate of
1172 of the Administrative was automatically deprived of
or deny to any person therein the Philippine register under existing
equal protection of the laws." Code to read as follows: every beneficial attribute of
law, shall likewise be deemed a ownership in the Bato and left
vessel of domestic ownership so with the naked title to a boat it
long as there shall not be any could not use .
FACTS:
SEC. 1172. Certificate of change in the ownership thereof
 Smith, Bell & Co., (Ltd.), is a Philippine register. — Upon nor any transfer of stock of the
corporation organized and registration of a vessel of companies or corporations
existing under the laws of the domestic ownership, and of more owning such vessel to person not ISSUE:
Philippine Islands. than fifteen tons gross, a included under the last preceding
certificate of Philippine register paragraph.
A majority of its
shall be issued for it. If the vessel Whether or not the Government of
stockholders are British
is of domestic ownership and of the Philippine Islands, through its
subjects.
fifteen tons gross or less, the  The first paragraph of the Legislature, can deny the registry
 It is the owner of a motor taking of the certificate of Philippine Bill of Rights of the of vessel in its coastwise trade to
vessel known as the Bato built Philippine register shall be Philippine Bill, repeated again corporations having alien
for it in the Philippine Islands of optional with the owner. in the first paragraph of the stockholders.
more than 15 tons gross The Philippine Bill of Rights as set
Bato was brought to Cebu in forth in the Jones Law,
the present year for the "Domestic ownership," as used in provides "That no law shall be RULING:
purpose of transporting this section, means ownership enacted in said Islands which
plaintiff's merchandise between vested in some one or more of the shall deprive any person of life,
ports in the Islands. following classes of persons: (a)
The petition for a writ territorial jurisdiction, without good order of the people, and
of mandamus is denied, with costs regard to any differences of race, legislate so as to increase the
against the petitioner. So ordered. color, or nationality. The word industries of the State, develop its
"person" includes aliens. Private resources and add to its wealth
corporations, likewise, are and prosperity. From the very
"persons" within the scope of necessities of society, legislation
YES, this is a valid exercise of
the guaranties in so far as their of a special character, having
police power. Common carriers
property is concerned. these objects in view, must often
which in the Philippines as in
be had in certain districts." his is
the United States and other
the same police power which the
countries are, as Lord Hale said,
Classification with the end in view United States Supreme Court say
"affected with a public
of providing diversity of treatment "extends to so dealing with the
interest," can only be permitted
may be made among conditions which exist in the state
to use these public waters as a
corporations, but must be based as to bring out of them the
privilege and under such
upon some reasonable ground greatest welfare in of its people."
conditions as to the
and not be a mere arbitrary For quite similar reasons, none of
representatives of the people
selection. Examples of laws held the provision of the Philippine
may seem wise. Act No. 2761 of
unconstitutional because of Organic Law could could have
the Philippine Legislature, in
unlawful discrimination against had the effect of denying to the
denying to corporations such as
aliens could be cited. Generally, Government of the Philippine
Smith, Bell &. Co. Ltd., the right to
these decisions relate to statutes Islands, acting through its
register vessels in the Philippines
which had attempted arbitrarily to Legislature, the right to exercise
coastwise trade, does not belong
forbid aliens to engage in ordinary that most essential, insistent, and
to that vicious species of class
kinds of business to earn their illimitable of powers, the
legislation which must always be
living. sovereign police power, in the
condemned, but does fall within
promotion of the general welfare
authorized exceptions, notably,
and the public interest.
within the purview of the police
power, and so does not offend One of the exceptions to the
against the constitutional general rule, most persistent and
provision. far reaching in influence is, that Another notable exception
neither the Fourteenth permits of the regulation or
Amendment to the United States distribution of the public domain
Constitution, broad and or the common property or
RATIONALE:
comprehensive as it is, nor any resources of the people of the
other amendment, "was designed State, so that use may be limited
to interfere with the power of the to its citizens. Even as to
The guaranties of the Fourteenth classification, it is admitted that a
State, sometimes termed its
Amendment and so of the first State may classify with reference
`police power,' to prescribe
paragraph of the Philippine Bill of to the evil to be prevented; the
regulations to promote the health,
Rights, are universal in their question is a practical one,
peace, morals, education, and
application to all person within the dependent upon experience.