G.R. No.

L-26979 April 1, 1927

THE GOVERNMENT OF THE PHILIPPINE ISLANDS, plaintiffs,

vs.

MILTON E. SPINGER, DALAMACIO COSTAS, and ANSELMO HILARIO, defendants.

FACTS:

On November 9, 1926, the Government-General promulgated Executive Order No. 37.

Reference was made therein to opinions of the Judge Advocate General of the United States Army and of
the Acting Attorney-General of the United States wherein it was held that the provisions of the statutes
passed by the Philippine Legislature creating a voting committee or board of control, and enumerating
the duties and powers thereof with respect to certain corporations in which the Philippine Government
is the owner of stock, are nullities. Announcement was made that on account of the invalidity of the
portions of the Acts creating the voting committee or board of control, the Governor-General would,
thereafter, exercise exclusivelythe duties and powers theretofore assumed by the voting committee or
board of control. Notice of the contents of this executive order was given to the President of the Senate
and the Speaker of the House of Representatives.

On December 6, 1926, at 3 o'clock in the afternoon, the special meeting of the stockholders
of the National Coal Company was held in accordance with the call. The Governor-General, through his
representative, asserted the sole power to vote the stock of the Government. The president of the
Senate and the Speaker of the House of Representatives attended the meeting and filed with the
secretary of the company a certified copy of the minutes of the meeting of the committee held at the
office of the company a half hour before.

However, in December 1926, NCC held its elections and the Senate President as well as the
House Speaker, notwithstanding EO No. 37 and the objection of the Governor-General, still elected
Milton Springer and four others as Board of Directors of NCC. Thereafter, a quo warranto proceeding in
behalf of the government was filed against Springer et al questioning the validity of their election into
the Board of NCC.

ISSUE:

Whether or not the Senate President as well as the House Speaker can elect the directors of
the National Coal Company.

HELD:

NO. The court deduce that the power of appointment in the Philippines appertains, with
minor exceptions, to the executive department; that membership in the voting committee in question is
an office or executive function; that the National Coal Company and similar corporations are
instrumentalities of the Government; that the duty to look after government agencies and government
property belongs to the executive department; that the placing of members of the Philippine Legislature
on the voting committee constitutes an invasion by the Legislative Department of the provileges of the
Executive Department. Under a system of government of delegated powers, under which delagation
legislative power vests in the Philippine Legislature and executive power vests in the Governor-General,
and under which Governor-General and a specified power of appointment resides in the Philippine
Legislature, the latter cannot directly or indirectly perform functions of an executive nature through the
designation of its presiding officers as majority membersof a body which has executive functions.