SPRINGER ET AL. vs. GOVERNMENT OF THE PHILIPPINE ISLANDS AGONCILLO vs.

GOVERNMENT OF THE PHILIPPINE ISLANDS Certiorari to the Philippine Supreme Court [May 14, 1928] FACTS:

National Coal Company (NCC): created by Act 2706 approved March 10, 1917 w/subsequent amendments. Voting power of all stocks owned by PI govt shall be vested exclusively in a committee composed

of the Gov Gen, Senate Pres, and House Speaker. National Bank (NB): created by Act 2612 approved Feb. 4, 1916 w/subsequent amendments. Phil. govt owns 97,332 out of the 100,000 shares. Remainder

held by private persons. Originally, voting power was vested exclusively on Gov Gen. However, by amendment, such power was transferred to the Board of Control composed of Gov Gen, Senate Pres, and House Speaker. Power to

appoint bank Pres & VP, removed from Gov Gen too. Directors to decide such among themselves. Directors will also vote for a gen mgr subject to advice & consent of Board of Control. The Boards of Control

of both the NCC & NB appointed one director each without Gov Gens participation. Philippine government instituted proceedings quo warranto against the petitioners claiming that formulation of these bodies invaded the Governor-

Generals appointing power. Philippine SC ordered the ouster of the two as directors of the aforementioned institutions. Thus, petitioners brought this appeal to the US SC. Petitioners contend: 1.Voting power of

the NCCs government - owned stock is not an office. Alleged invasion of Gov Gens general power of appointing persons to public office are beside the point. (Sheboyan County vs. Parker) 2.Phil Legislature shares general

legislative powers exercised by States & Territories. Congress can create corporations to attain objects w/in its powers & provide for organization & mgt of such corp., including conferring voting power of corporate stock.

Granting this voting power to parties other than the executive officers of the govt has been done in the cases of the Smithsonian Institution & National Home for Disabled Soldiers. 3.Congress likewise uses privately owned stock companies to

attain its objectives using an extra-governmental means (California vs. Pacific R.R. Co.). Such corporations exercise some executive functions if allowed to do so by Congress. However even if they are used as instruments

of Congress, they often retain the stock-voting power. (Meaning: Congress doesnt transfer such powers to the executive and instead confides such to the private stockowners.) Government ownership is

insufficient to blur corporate lines that separate corporations from the govt that created them (Bank of the United States vs. Planters Bank). Corporate lines are blurred simply because these corporations are granted governmental

privileges & protection. But in terms of management, these corp. are still considered as separate entities (Russel Motor Car Co. vs. US) 4.Even if voting power should remain with the government, it should still be within the powers of

the legislative officers to do so. Sec. 3, Art. 4 of the Consti provides that the Pres or heads of exec depts only enjoy powers to use or dispose public property if allowed by Congress. Powers of Congress in caring for govt

properties are plenary w/c includes power of direction. Exec depts. are mere agents or instrumentalities of Congress limited to performing detail of such care. 5.NCC officers are not govt officers. Thus, this does not belong to

Governor Generals asserted power of appointing persons to public office. 6.Philippine statutes involved have received implied sanction of Congress & should not be disturbed (Clinton vs.

Englebrecht) Meaning: since US Congress did not nullify these statutes, we can imply that they are valid & upheld by US Congress. During this time, laws enacted by Phil Legislature were subj to review of US Congress.

Respondents contend:

1.
Statutes stripped Gov Gen all supervision/control over the NCC & NB and vested direction of mgt & operation of such in Congress thru the majority.

Stripping gov gen of his powers violates Sec. 22 of the Organic Act w/c provides that all exec functions must be under the Gov Gen or w/in one of the exec. Depts. under his supervision & control.

2.Selection & removal of managing directors & officers, and direction of operation are not legislative functions. No making/repealing of laws or anything incidental to such is involved. 3.Relation of PI govt to these corp.

(proprietary/sovereign ) and functions performed by these corp. (governmental or private business) are immaterial. Gov Gen, and not legislative body, has power to perform administrative or executive functions in

all instances mentioned. 4.If Board of Control post is different from Gov Gen, Senate Pres. Or House Speaker positions, then selection of representative is an exec act. And if functions to be performed are exec or

administrative in charac, selection is likewise not legislative. 5.Congress cannot make appointments to exec/administrative positions & it may not confer executive or administrative functions on legislative officials.

6.Inaction of US Congress is of no consequence. It is invalid because it is in conflict w/ the Organic Act. Its invalidity does not depend on Congress reiteration. ISSUE: WON voting power in the government-owned

stock belongs to Congress. HELD: NO. Its an executive rather than a legislative function. Phil SC affirmed. Since Congress has not yet decided as to whether such power should be exercised by the Gov Gen or by

any of the exec depts., power will be vested on Gov Gen. RATIO: 1.Take note that legislature similarly devolved voting power in at least 4 other corps: Natl Petroleum Co., Natl Devt Co., Natl Cement Co.,

Natl Iron Co. proof that Congress has been taking direct control over nationally organized/controlled stock corp. accdg to Sol Gen. 2.Organic Act follows established rule of American Consti dividing govt into 3

separate departments: a.Executive power on executive officer/Gov Gen (Sec. 21). Among executive functions mentioned: gen supervision of govt depts. and bureaus (Sec. 22), faithful execution of laws, etc. b.Legislative power

on Phil Legislature (Sec. 8). Among its duties are: to increase no. or abolish exec depts. or make changes in names & duties as it may seem fit, provide for appointment & removal of heads of exec depts. by Gov Gen. (Sec. 22)

c.Sec. 26 recognizes SC & CFIs.