SUMMARY (for quick recall ) : Fisher was a stockholder of Yangco Steamship Company.

The Board of
Directors of the latter passed a resolution declaring that it will not carry dynamite, powder, and other
explosives. However, respondent Acting Collector of Customs compelled the company to accept such
explosives for carriage. Otherwise, said official will not issue the documents of Yancgo for clearance. This
prompted Fisher to file a case against Yangco (TO COMPEL IT TO FOLLOW THE BOARD’S RESOLUTION AND
TO NOT ACCEPT FOR CARRIAGE SUCH EXPLOSIVES) and against the respondent officials (TO STOP
ATTEMPTS TO PREVENT COMPANY FROM REFUSING TO CARRY EXPLOSIVES). SC dismissed the complaint.
It said that Yangco, as a common carrier, cannot unreasonably refuse to accept the carriage of goods as
required by our laws on common carrier (particularly Act 98). (see ratio for full discussion).
TRANSPO Rule on the refusal of common carriers to carry goods
Title GR No. 8095
F.C Fisher v. Yangco Steamship Date: November 5, 1914 and March 31, 1915
Ponente: Carson, J.
F. C. FISHER, plaintiff YANGCO STEAMSHIP COMPANY,
J. S. STANLEY, as Acting Collector of Custom of the
Philippine Islands,
IGNACIO VILLAMOR, as Attorney-General of the Philippine
Islands,
and W. H. BISHOP, as prosecuting attorney of the city of
Manila, respondents.
Nature of the case: This case a demurrer to evidence filed by respondents to dismiss the case for lack of cause of action.

FACTS
- plaintiff is a stockholder in the Yangco Steamship Company, the owner of a large number of steam vessels, duly
licensed to engage in the coastwise trade of the Philippine Islands
- the directors of the company adopted a "expressly declaring and providing that the classes of merchandise to be
carried by the company in its business as a common carrier do not include dynamite, powder or other explosives,
and expressly prohibiting the officers, agents and servants of the company from offering to carry, accepting for
carriage or carrying said dynamite, powder or other explosives;"
- respondent Acting Collector of Customs demanded and required of the company the acceptance and carriage of
such explosives; also, he has refused and suspended the issuance of the necessary clearance documents of the
vessels of the company unless and until the company consents to accept such explosives for carriage;
- plaintiff is advised and believes that should the company decline to accept such explosives for carriage, the
respondent Attorney-General of the Philippine Islands and the respondent prosecuting attorney of the city of
Manila intend to institute proceedings against the company, its managers, agents and servants, to enforce the
requirements of the Acting-Collector of Customs as to the acceptance of such explosives for carriage
- As a consequence, the manager, agents and servants of the company decline and refuse to cease the carriage of
such explosives
- This case was filed by plaintiff to enjoin the steamship company from accepting for carriage on any of its vessels,
dynamite, powder or other explosives, under any conditions whatsoever; to prohibit the Collector of Customs
and the prosecuting officers of the government from all attempts to compel the company to accept such
explosives for carriage on any of its vessels under any conditions whatsoever; and to prohibit these officials from
any attempt to invoke the penal provisions of Act No. 98, in any case of a refusal by the company or its officers so
to do
- Main of argument of petitioner: a common carrier in the Philippine Islands may decline to accept for carriage any
shipment of merchandise of a class which it expressly or impliedly declines to accept from all shippers alike,
because, as he contends "the duty of a common carrier to carry for all who offer arises from the public profession
he has made, and is limited by it." As such, petitioner argued, the prohibition imposed on Yangco is a prohibition
on its liberty by requiring it to engage in business against its will.
ISSUE/S
I. whether the refusal of the owners and officers of a steam vessel, duly licensed to engage in the coastwise
 trade of the Philippine Islands and engaged in that trade as a common carrier, to accept for carriage
"dynamite, powder or other explosives" from any and all shippers who may offer such explosives for carriage
can be held to be a lawful act - NO
RATIO
- Common carriers in this jurisdiction cannot lawfully decline to accept a particular class of goods for carriage to the
prejudice of the traffic in those goods unless it appears that for some sufficient reason the discrimination against the
traffic in such goods is reasonable and necessary. Mere prejudice or whim will not suffice. The grounds of the
discrimination must be substantial ones, such as will justify the courts in holding the discrimination to have been
reasonable and necessary under all the circumstances of the case.

- The nature of the business of a common carrier as a public employment is such that it is clearly within the power of the
state to impose such just and reasonable regulations thereon in the interest of the public as the legislator may deem
proper. Of course such regulations must not have the effect of depriving an owner of his property without due course of
law, nor of confiscating or appropriating private property without just compensation, nor of limiting or prescribing
irrevocably vested rights or privileges lawfully acquired under a charter or franchise. But aside from such constitutional
limitations, the determination of the nature and extent of the regulations which should be prescribed rests in the hands of
the legislator.

- Correctly construed, the provisions of the Philippine statute (Act No. 98) do not force a common carrier to engage in
any business against his will or to make use of his facilities in a manner or for a purpose for which they are not
reasonably adapted. It is only when he offers his facilities as a common carrier to the public for hire, that the statute
steps in and prescribes that he must treat all alike, that he may not pick and choose which customer he will serve, and,
specifically, that he shall not make any undue or unreasonable preferences or discriminations whatsoever to the
prejudice not only of any person or locality, but also of any particular kind of traffic.

- The refusal of a "steamship company, the owner of a large number of vessels" engaged in the coastwise trade of the
Philippine Islands as a common carrier of merchandise, to accept explosives for carriage on any of its vessels subjects the
traffic in such explosives to a manifest prejudice and discrimination.

-This of course is, in each case, a question of fact, and we are of opinion that the facts alleged in the complaint are not
sufficient to sustain a finding in favor of the contentions of the petitioner. It is not alleged in the complaint that
"dynamite, gunpowder and other explosives" can in no event be transported with reasonable safety on board steam
vessels engaged in the business of common carriers. It is not alleged that all, or indeed any of the defendant steamship
company's vessels are unsuited for the carriage of such explosives. It is not alleged that the nature of the business in
which the steamship company is engaged is such. as to preclude a finding that a refusal to accept such explosives on any
of its vessels would subject the traffic in such explosives to an undue and unreasonable prejudice and discrimination.

- The mere fact that violent and destructive explosions can be obtained by the use of dynamite under certain conditions is
not sufficient in itself to justify the refusal of a vessel, duly licensed as a common carrier of merchandise, to accept it for
carriage, if it can be proven that in the condition in which it is offered for carriage there is no real danger to the carrier nor
reasonable ground to fear that his vessel or those on board his vessel will be exposed to unnecessary or unreasonable
risks in transporting it, having in mind the nature of his business as a common carrier engaged in the coastwise trade in
the Philippine Islands, and his duty as a servant of the public engaged in a public employment.

- If by the exercise of due diligence, taking all reasonable precautions, the danger of explosions can be eliminated, the
carrier would not be justified in subjecting the traffic in this commodity to prejudice or discrimination by proof that there
would be a possibility of danger from explosion when no such precautions are taken.
RULING

- Demurer to evidence sustained. Petition DISMISSED.

GUINTO