Government of Teh Philippine Islands vs Monde de Piedad

8/11/2019 Government of Teh Philippine Islands vs Monde de Piedad

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Republic of the PhilippinesSUPREME COURT

Manila

EN BANC

G.R. No. L-9959 December 13, 1916

THE GOVERNMENT OF THE PH L PP NE SL!NDS, re"re#e$%e& b' %(eTre)#*rer o+ %(e P( "" $e # )$&#, plainti -appellee,vs.EL MONTE DE P ED!D C!/! DE !HORR!S DE M!N L!, defendant-appellant.

William A. Kincaid and Thomas L. Hartigan for appellant. Attorney-General Avanceña for appellee.

TRENT, J.:

About $4 , , !e"e subsc"ibed and paid into the t"easu"# of the Philippineslands b# the inhabitants of the %panish &o'inions of the "elief of thoseda'a(ed b# the ea"th)ua*e !hich too* place in the Philippine slands on

+une , / . %ubse)uent the"eto and on 0ctobe" / of that #ea", a cent"al"elief boa"d !as appointed, b# autho"it# of the 1in( of %pain, to dist"ibute the'one#s thus volunta"il# cont"ibuted. Afte" a tho"ou(h investi(ation andconside"ation, the "elief boa"d allotted $ /2,3 .2 to the va"ious su e"e"sna'ed in its "esolution, dated %epte'be" , //, and, b# o"de" of the5ove"no"-5ene"al of the Philippine slands, a list of these allot'ents,to(ethe" !ith the na'es of those entitled the"eto, !as published in the06cial 5a7ette of Manila dated Ap"il 3, 3 . 8he"e !as late" dist"ibuted,inacco"dance !ith the above-'entioned allot'ents, the su' of $ , 99./2,leavin( a balance of % /2,4 . 2 fo" dist"ibution. :pon the petition of the

(ove"nin( bod# of the Monte de Piedad , dated ;eb"ua"# , , thePhilippine 5ove"n'ent, b# o"de" dated the st of that 'onth, di"ected itst"easu"e" to tu"n ove" to the Monte de Piedad the su' of $ , of the"elief fund in install'ents of $ , each. 8hese a'ounts !e"e "eceived onthe follo!in( dates< ;eb"ua"# 2, Ma"ch , Ap"il 4, and +une , , anda"e still in the possession of the Monte de Piedad . 0n account of va"iouspetitions of the pe"sons, and hei"s of othe"s to !ho' the above-'entioned



allot'ents !e"e 'ade b# the cent"al "elief boa"d fo" the pa#'ent of thosea'ounts, the Philippine slands to b"in( suit a(ainst the Monte de Piedad a"ecove", =th"ou(h the Atto"ne#-5ene"al and in "ep"esentation of the5ove"n'ent of the Philippine slands,= the $ . , to(ethe" !ith inte"est,fo" the bene>t of those pe"sons o" thei" hei"s appea"in( in the list of na'espublished in the 06cial 5a7ette instituted on Ma# , 9 , b# the5ove"n'ent of the Philippine slands, "ep"esented b# the nsula" 8"easu"e",and afte" due t"ial, ?ud('ent !as ente"ed in favo" of the plainti fo" the su'of $ , (old o" its e)uivalent in Philippine cu""enc#, to(ethe" !ith le(alinte"est f"o' ;eb"ua"# , 9 , and the costs of the cause. 8he defendantappealed and 'a*es the follo!in( assi(n'ent of e""o"s<

. 8he cou"t e""ed in not >ndin( that the ei(ht# thousand dolla"s@$ , , (ive to the Monte de Piedad y a!a de Ahorros , !e"e so

(iven as a donation sub?ect to one condition, to !it< the "etu"n of suchsu' of 'one# to the %panish 5ove"n'ent of these slands, !ithin ei(htda#s follo!in( the da# !hen clai'ed, in case the %up"e'e5ove"n'ent of %pain should not app"ove the action ta*en b# thefo"'e" (ove"n'ent.

. 8he cou"t e""ed in not havin( dec"eed that this donation had beenclea"ed said ei(ht# thousand dolla"s @$ , bein( at p"esent thee clusive p"ope"t# of the appellant the Monte de Piedad y a!a de

Ahorros .

. 8hat the cou"t e""ed in statin( that the 5ove"n'ent of the Philippineslands has sub"o(ated the %panish 5ove"n'ent in its "i(hts, as"e(a"ds an i'po"tant su' of 'one# "esultin( f"o' a nationalsubsc"iption opened b# "eason of the ea"th)ua*e of +une , / , inthese sland.

4. 8hat the cou"t e""ed in not decla"in( that Act Nu'be"ed 9,passed b# the Philippine De(islatu"e on +anua"# , 9 , isunconstitutional.

2. 8hat the cou"t e""ed in holdin( in its decision that the"e is no title fo"the p"esc"iption of this suit b"ou(ht b# the nsula" 5ove"n'ent a(ainstthe Monte de Piedad y a!a de Ahorros fo" the "ei'bu"se'ent of theei(ht# thousand dolla"s @$ , (iven to it b# the late %panish5ove"n'ent of these slands.



5ove"n'ent has sub'itted fo" the dete"'ination of F. M. 5ove"n'entthat the balance !hich, afte" st"ictl# appl#in( the p"oceeds obtainedf"o' the subsc"iption "efe""ed to, 'a# "e'ain as a su"plus should bedelive"ed to the Monte de Piedad , eithe" as a donation, o" as a loanupon the secu"it# of the c"edit of the institution, believin( that in sodoin( the !ishes of the dono"s !ould be faithfull# inte"p"etedinas'uch as those !ishes !e"e no othe" than to "elieve dist"ess, an actof cha"it# !hich is e e"cised in the hi(hest de("ee b# the Monte dePiedad , fo" it libe"ates need# pe"son f"o' the pe"nicious e ects ofusu"# and

Conside"in( that the loft# pu"poses that b"ou(ht about the c"eation ofthe pious institution "efe""ed to !ould be f"ust"ated, and that the ("eatand laudable !o"* of its establish'ent, and that the ("eat and

laudable and valuable if the aid it u"(entl# see*s is not ("anted, sincethe suspension of its ope"ations !ould se"iousl# and "e("ettabl#da'a(e the eve"-("o!in( c"edit of the Monte de Piedad and

Conside"in( that if such a thin( !ould at an# ti'e cause deep dist"essin the public 'ind, it 'i(ht be said that at the p"esent ?unctu"e it !ouldassu'e the natu"e of a distu"bance of public o"de" because of thee t"e'e pove"t# of the poo"e" classes "esultin( f"o' the latecala'ities, and because it is the onl# institution !hich can 'iti(ate thee ects of such pove"t# and

Conside"in( that no "easonable ob?ection can be 'ade to ("antin( the"e)uest he"ein contained, fo" the funds in )uestion a"e su6cientl#secu"ed in the unli*el# event that FI M. 5ove"n'ent does not app"ovethe "eco''endation 'entioned, this (ene"al 5ove"n'ent, in thee e"cise of the e t"ao"dina"# po!e"s confe""ed upon it and inconfo"'it# !ith the "epo"t of the ntendencia de Facienda, "esolves asfollo!s<

;i"st. Autho"it# is he"eb# (iven to delive" to the Monte de Piedad , out of the su' held in the public t"easu"# of these slands obtained f"o' thenational subsc"iption opened b# "eason of the ea"th)ua*es of / ,a'ounts up to the su' $ , , as its needs 'a# "e)ui"e, ininstall'ents of $ , .



%econd. 8he boa"d of di"ecto"s of the Monte de Piedad is sole'nl#bound to "etu"n, !ithin ei(ht da#s afte" de'and, the su's it 'a# haveso "eceived, if F. M. 5ove"n'ent does not app"ove this "esolution.

8hi"d. 8he ntendencia 5ene"al de Facienda shall fo"th!ith, and inp"efe"ence to all othe" !o"*, p"oceed to p"epa"e the necessa"# pape"sso that !ith the least possible dela# the pa#'ent "efe""ed to 'a# be'ade and the dan(e" that 'enaces the Monte de Piedad of havin( tosuspend its ope"ations 'a# be ave"ted.

F. M. 5ove"n'ent shall be advised he"eof. la+phi'.net @%i(ned P. &E R HERA.

B# the "o#al o"de" of &ece'be" , 9 , the 5ove"no"-5ene"al of thePhilippine slands !as o"de"ed to =info"' this ministerio !hat is the total su'available at the p"esent ti'e, ta*in( into conside"ation the su's delive"ed tothe Monte de Piedad pu"suant to the dec"ee issued b# #ou" (ene"al5ove"n'ent on ;eb"ua"# , ,= and afte" the "i(hts of the clai'ants,!hose na'es !e"e published in the 06cial 5a7ette of Manila on Ap"il 3,3 , and thei" hei"s had been established, as the"ein p"ovided, as such

pe"sons =have an un)uestionable "i(ht to be paid the donations assi(ned tothe' the"ein, #ou" (ene"al 5ove"n'ent shall convo*e the' all !ithin a"easonable pe"iod and shall pa# thei" sha"es to such as shall identif#the'selves, !ithout "e(a"d to thei" >nancial status,= and >nall# =that !hen

all the p"oceedin(s and ope"ations he"ein 'entioned have been concludedand the 5ove"n'ent can conside" itself f"ee f"o' all *inds of clai's on thepa"t of those inte"ested in the dist"ibution of the funds deposited in thevaults of the 8"easu"#, such action 'a# be ta*en as the ci"cu'stances shall"e)ui"e, afte" >"st consultin( the "elief boa"d and #ou" (ene"al 5ove"n'entand ta*in( account of !hat su's have been delive"ed to the Monte dePiedad and those that !e"e e pended in to "elieve public cala'ities,=and =in o"de" that all the points in connection !ith the p"oceedin(s had as a"esult of the ea"th)ua*e be clea"l# unde"stood, it is indispensable that theo6ces he"einbefo"e 'entioned co'pl# !ith the p"ovisions contained inpa"a("aphs and of the "o#al o"de" of +une 2, 39.= 0n "eceipt of this;inance o"de" b# the 5ove"no"-5ene"al, the &epa"t'ent of ;inance !ascalled upon fo" a "epo"t in "efe"ence to the $ , tu"ned ove" to thedefendant, and that &epa"t'ent s "epo"t to the 5ove"no"-5ene"al dated +une, 9 , "eads<



,ntendencia General de Hacienda de $ilipinas @5ene"al 8"easu"# of thePhilippines G E cellenc#. G B# Ro#al 0"de" No. 44 of &ece'be" ,last, it is p"ovided that the pe"sons !ho sustained losses b# theea"th)ua*es that occu""ed in #ou" capital in the #ea" / shall bepaid the a'ounts allotted to the' out of the su's sent f"o' %pain fo"this pu"pose, !ith obse"vance of the "ules speci>ed in the said "o#alo"de", one of the' bein( that befo"e 'a*in( the pa#'ent to theinte"ested pa"ties the assets shall be "educed to 'one#. 8hese assets,du"in( the lon( pe"iod of ti'e that has elapsed since the# !e"e tu"nedove" to the 8"easu"# of the Philippine slands, !e"e used to cove" the(ene"al needs of the app"op"iation, a pa"t besides bein( invested inthe "elief of cha"itable institutions and anothe" pa"t to 'eet p"essin(needs occasioned b# public cala'ities. 0n +anua"# , last, #ou"E cellenc# !as please to o"de" the ful>ll'ent of that sove"ei(n

'andate and "efe""ed the sa'e to this ,ntendencia fo" its info"'ationand the pu"poses desi"ed @that is, fo" co'pliance !ith its di"ectionsand, as afo"esaid, one of these bein( the li)uidation, "ecove"#, anddeposit !ith the 8"easu"# of the su's paid out of that fund and !hich!e"e e pended in a di e"ent !a# f"o' that intended b# the dono"sand this ntendencia believed the 'o'ent had a""ived to clai' f"o'the boa"d of di"ecto"s of the Monte de Piedad y a!a de Ahorros thesu' of , pesos !hich, b# dec"ee of #ou" (ene"al 5ove"n'ent ofthe date of ;eb"ua"# , , !as loaned to it out of the said funds, the@Monte de Piedad obli(atin( itself to "etu"n the sa'e !ithin the pe"iodof ei(ht da#s if F. M. 5ove"n'ent did not app"ove the delive"#. 0n thisntendencia s de'andin( f"o' the Monte de Piedad the ei(ht#thousand pesos, thus co'pl#in( !ith the p"ovisions of the Ro#al 0"de",it !as to be supposed that no ob?ection to its "etu"n !ould be 'ade b#the Monte de Piedad fo", !hen it "eceived the loan, it fo"'all# en(a(editself to "etu"n it and, besides, it !as indisputable that the 'o'ent todo so had a""ived, inas'uch as F. M. 5ove"n'ent, in o"de"in( that theassets of the ea"th)ua*e "elief fund should he collected, 'a*es e p"ess'ention of the , pesos loaned to the Monte de Piedad , !ithout

doubt conside"in( as su6cient the pe"iod of ten #ea"s du"in( !hich ithas been usin( this la"(e su' !hich la!full# belon(s to thei" pe"sons.

8his ,ntendencia also supposed that the Monte de Piedad no lon(e"needed the a'ount of that loan, inas'uch as, fa" f"o' investin( it inbene>cient t"ansactions, it had tu"ned the !hole a'ount into thevolunta"# deposit funds bea"in( 2 pe" cent inte"ests, the "esult of thisope"ation bein( that the debto" loaned to the c"edito" on inte"est !hat



the fo"'e" had ("atuitousl# "eceived. But the Monte de Piedad , insteadof ful>llin( the p"o'ise it 'ade on "eceivin( the su', afte" "epeatedde'ands "efused to "etu"n the 'one# on the ("ound that onl# #ou"E cellenc#, and not the ,ntendencia @8"easu"# , is entitled to o"de" the"ei'bu"se'ent, ta*in( no account of the fact that this ntendencia !asactin( in the discha"(e of a sove"ei(n co''and, the ful>ll'ent of!hich #ou" E cellenc# !as pleased to o"de" and on the fu"the" ("oundthat the su' of , pesos !hich it "eceived f"o' the fund intendedfo" the ea"th)ua*e victi's !as not "eceived as a loan, but as adonation, this in the opinion of this ,ntendencia , e""oneousl#inte"p"etin( both the last "o#al o"de" !hich di"ected the appo"tion'entof the a'ount of the subsc"iption "aised in the #ea" / and thesupe"io" dec"ee !hich ("anted the loan, inas'uch as in this lette" nodonation is 'ade to the Monte de Piedad of the , pesos, but

si'pl# a loan besides, no donation !hateve" could be 'ade of fundsde"ived f"o' a p"ivate subsc"iption "aised fo" a speci>c pu"pose, !hichfunds a"e al"ead# dist"ibuted and the na'es of the bene>cia"ies havebeen published in the Gaceta , the"e bein( lac*in( onl# the 'e"e'ate"ial act of the delive"#, !hich has been undul# dela#ed. n vie! ofthe une pected "epl# 'ade b# the Monte de Piedad , and believin( ituseless to insist fu"the" in the 'atte" of the clai' fo" theafo"e'entioned loan, o" to a"(ue in suppo"t the"eof,this ,ntendencia believes the inte"vention of #ou" E cellenc# necessa"#in this 'atte", if the "o#al 0"de" No. 44 of &ece'be" , last, is to beco'plied !ith, and fo" this pu"pose be( #ou" E cellenc# *indl# too"de" the Monte de Piedad to "ei'bu"se !ithin the pe"iod of ei(ht da#sthe , !hich it o!es, and that #ou (ive this ntendencia po!e" toca""# out the p"ovisions of the said "o#al o"de". 'ust call to theattention of #ou" E cellenc# that the said pious establish'ent, du"in(the last fe! da#s and afte" de'and !as 'ade upon it, has endo"sed tothe %panish-;ilipino Ban* nea"l# the !hole of the su' !hich it had ondeposit in the (ene"al deposit funds.

8he "eco"d in the case unde" conside"ation fails to disclose an# fu"the"de>nite action ta*en b# eithe" the Philippine 5ove"n'ent o" the %panish5ove"n'ent in "e(a"d to the $ , tu"ned ove" to the Monte de Piedad .

n the defendant s (ene"al led(e" the follo!in( ent"ies appea"< =Public 8"easu"#< ;eb"ua"# 2, , $ , Ma"ch , , $ , Ap"il 4,

, $ , +une , , $ , , total $ , .= 8he boo* ent"# fo" this



total is as follo!s< =8o the public 8"easu"# de"ived f"o' the subsc"iption fo"the ea"th)ua*e of / , $ , "eceived f"o' (ene"al 8"easu"# as a"etu"nable loan, and !ithout inte"est.= 8he account !as ca""ied in this'anne" until +anua"# , 99, !hen it !as closed b# t"ansfe""in( the a'ountto an account called =%a("ada Mit"a,= !hich latte" account !as a loan of$ 2, 'ade to the defendant b# the A"chbishop of Manila, !ithoutinte"est, the"eb# placin( the =%a("ada Mit"a= account at $92, instead of$ 2, . 8he above-'entioned ?ou"nal ent"# fo" +anua"# , 99, "eads<=%a("ada Mit"a and subsc"iption, balance of these t!o account !hich on thisdate a"e united in acco"dance !ith an o"de" of the mo. /r. Presidente ofthe Council t"ans'itted ve"ball# to the Presidente Gerente of theseinstitutions, $92, .=

0n Ma"ch /, 9 , the Philippine (ove"n'ent called upon the defendant fo"

info"'ation conce"nin( the status of the $ , and "eceived the follo!in("epl#<

MAN DA, Ma"ch , 9 .

To the Attorney-General of the 0epartment of 1&stice of thePhilippine ,slands.

% R< n "epl# to #ou" cou"teous lette" of the /th inst., in !hich #ou"e)uest info"'ation f"o' this o6ce as to !hen and fo" !hat pu"pose

the %panish 5ove"n'ent delive"ed to the Monte de Piedad ei(ht#thousand pesos obtained f"o' the subsc"iption opened in connection!ith the ea"th)ua*e of / , as !ell as an# othe" info"'ation that'i(ht be useful fo" the "epo"t !hich #ou" o6ce is called upon tofu"nish, 'ust state to #ou" depa"t'ent that the boo*s *ept in thesePious nstitutions, and !hich have been consulted fo" the pu"pose,sho! that on the 2th of ;eb"ua"#, , the# "eceived as a"ei'bu"sable loan and !ithout inte"est, t!ent# thousand pesos, !hichthe# deposited !ith thei" o!n funds. 0n the sa'e account and on eachof the dates of Ma"ch , Ap"il 4 and +une of the said #ea", ,the# also "eceived and tu"ned into thei" funds a li*e su' of t!ent#thousand pesos, 'a*in( a total of ei(ht# thousand pesos. G @%i(nedE'ilio Mo"eta.

he"eb# ce"tif# that the fo"e(oin( is a lite"al cop# of that found in thelette" boo* No. of those Pious nstitutions.



'i(ht ad'it of the inte"p"etation that the Mad"id 5ove"n'ent did not intendthat the 5ove"no"-5ene"al of the Philippine slands should include the$ , in the total available su', but !hen conside"ed in connection !iththe "epo"t of the &epa"t'ent of ;inance the"e can be no doubt that it !as sointended. 8hat "epo"t "efe"s e p"essl# to the "o#al o"de" of &ece'be" d, andsets fo"th in detail the action ta*en in o"de" to secu"e the "etu"n of the$ , . 8he &epa"t'ent of ;inance, actin( unde" the o"de"s of the5ove"no"-5ene"al, unde"stood that the $ , !as t"ansfe""ed to the Montede Piedad !ell *ne! that it "eceived this su' as a loan inte"est.= 8he a'ount!as thus ca""ied in its boo*s until +anua"#, 99, !hen it !as t"ansfe""ed tothe account of the =%a("ada Mit"a= and !as the"eafte" *no!n as the=%a("ada Mit"a and subsc"iption account.= ;u"the"'o"e, the Monte dePiedad "eco(ni7ed and conside"ed as late as Ma"ch , 9 , that it "eceivedthe $ , =as a "etu"nable loan, and !ithout inte"est.= 8he"efo"e, the"e

cannot be the sli(htest doubt the fact that the Monte de Piedad "eceived the$ , as a 'e"e loan o" deposit and not as a donation. Conse)uentl#, the>"st alle(ed e""o" is enti"el# !ithout foundation.

Counsel fo" the defendant, in suppo"t of thei" thi"d assi(n'ent of e""o", sa#in thei" p"incipal b"ief that<

8he %panish nation !as p"ofessedl# Ro'an Catholic and its 1in(en?o#ed the distinction of bein( deput# e o2cio of the Fol# %ee andApostolic Hica"-5ene"al of the ndies, and as such it !as his dut# top"otect all pious !o"*s and cha"itable institutions in his *in(do's,especiall# those of the ndies a'on( the latte" !as the Monte dePiedad of the Philippines, of !hich said 1in( and his deput# the5ove"no"-5ene"al of the Philippines, as "o#al vice-pat"on, !e"e, in aspecial and peculia" 'anne", the p"otecto"s the latte", as a "esult ofthe cession of the Philippine slands, 'plicitl# "enounced this hi(ho6ce and tacitl# "etu"ned it to the Fol# %ee, no! "ep"esented b# theA"chbishop of Manila the national subsc"iption in )uestion !as a *indof foundation o" pious !o"*, fo" a cha"itable pu"pose in these slands

and the enti"e subsc"iption not bein( needed fo" its o"i(inal pu"pose,the "o#al vice-pat"on, !ith the consent of the 1in(, (ave the su"plusthe"eof to an analo(ous pu"pose the ful>ll'ent of all these thin(sinvolved, in the 'a?o"it#, if not in all cases, faithful co'pliance !ith thedut# i'posed upon hi' b# the Fol# %ee, !hen it confe""ed upon hi'the "o#al pat"ona(e of the ndies, a thin( that touched hi' ve"# closel#in his conscience and "eli(ion the cessiona"# 5ove"n'ent thou(h



Ch"istian, !as not Ro'an Catholic and p"ided itself on its polic# of non-inte"fe"ence in "eli(ious 'atte"s, and invete"atel# 'aintained aco'plete sepa"ation bet!een the ecclesiastical and civil po!e"s.

n vie! of these ci"cu'stances it 'ust be )uite clea" that, even!ithout the e p"ess p"ovisions of the 8"eat# of Pa"is, !hich appa"entl#e p"essl# e clude such an idea, it did not be>t the hono" of eithe" ofthe cont"actin( pa"ties to sub"o(ate to the A'e"ican 5ove"n'ent inlieu of the %panish 5ove"n'ent an#thin( "espectin( the disposition ofthe funds delive"ed b# the latte" to the Monte de Piedad . 8he sa'e"easons that induced the %panish 5ove"n'ent to ta*e ove" such thin(s!ould "esult in ("eat inconvenience to the A'e"ican 5ove"n'ent inatte'ptin( to do so. 8he )uestion !as such a delicate one, fo" the"eason that it a ected the conscience, deepl# "eli(ious, of the 1in( of

%pain, that it cannot be believed that it !as eve" his intention tocon>de the e e"cise the"eof to a 5ove"n'ent li*e the A'e"ican. @:.%. vs. A""edondo, / Pet. K:. %.L, 3 .

t is thus seen that the A'e"ican 5ove"n'ent did not sub"o(ate the%panish 5ove"n'ent o" "athe", the 1in( of %pain, in this "e(a"d and asthe condition anne ed to the donation !as la!ful and possible offul>ll'ent at the ti'e the cont"act !as 'ade, but beca'e i'possibleof ful>ll'ent b# the cession 'ade b# the %panish 5ove"n'ent in theseslands, co'pliance the"e!ith is e cused and the cont"act has beenclea"ed the"eof.

8he contention of counsel, as thus stated, in untenable fo" t!o "eason, @because such contention is based upon the e""oneous theo"# that the su' in)uestion !as a donation to the Monte de Piedad and not a loan, and @because the cha"it# founded b# the donations fo" the ea"th)ua*e su e"e"s isnot and neve" !as intended to be an ecclesiastical pious !o"*. 8he >"stp"oposition has al"ead# been decided adve"sel# to the defendant scontention. As to the second, the "eco"d sho!s clea"l# that the fund !as(iven b# the dono"s fo" a speci>c and de>nite pu"pose G the "elief of theea"th)ua*e su e"e"s G and fo" no othe" pu"pose. 8he 'one# !as tu"nedove" to the %panish 5ove"n'ent to be devoted to that pu"pose. 8he %panish5ove"n'ent "e'itted the 'one# to the Philippine 5ove"n'ent to bedist"ibuted a'on( the su e"s. All o6cials, includin( the 1in( of %pain andthe 5ove"no"-5ene"al of the Philippine slands, !ho too* pa"t in the disposalof the fund, acted in thei" pu"el# civil, o6cial capacit#, and the fact that the#



'i(ht have belon(ed to a ce"tain chu"ch had nothin( to do !ith thei" acts inthis 'atte". 8he chu"ch, as such, had nothin( to do !ith the fund in an# !a#!hateve" until the $ , "eached the co e"s of the Monte de Piedad @aninstitution unde" the cont"ol of the chu"ch as a loan o" deposit. f the cha"it#in )uestion had been founded as an ecclesiastical pious !o"*, the 1in( of%pain and the 5ove"no"-5ene"al, in thei" capacities as vica"-(ene"al of thendies and as "o#al vice-pat"on, "espectivel#, !ould have disposed of thefund as such and not in thei" civil capacities, and such functions could nothave been t"ansfe""ed to the p"esent Philippine 5ove"n'ent, because the"i(ht to so act !ould have a"isen out of the special a("ee'ent bet!een the5ove"n'ent of %pain and the Fol# %ee, based on the union of the chu"ch andstate !hich !as co'pletel# sepa"ated !ith the chan(e of sove"ei(nt#.

And in thei" supple'ental b"ief counsel sa#<

B# the conceded facts the 'one# in )uestion is pa"t of a charita%les&%scription . 8he dono"s !e"e pe"sons in %pain, the t"ustee !as the%panish 5ove"n'ent, the donees, the cest&is 3&e tr&stent , !e"ece"tain pe"sons in the Philippine slands. 8he !hole 'atte" is one oft"usteeship. 8his is undisputed and indisputable. t follo!s that the%panish 5ove"n'ent at no ti'e !as the o!ne" of the fund. Not bein(the o!ne" of the fund it co&ld not t"ansfe" the o!ne"ship. hethe" o"not it could t"ansfe" its t"usteeship it ce"tainl# neve"has e pressly done so and the (ene"al te"'s of p"ope"t# t"ansfe" in the

8"eat# of Pa"is a"e !holl# insu6cient fo" such a pu"pose even could%pain have t"ansfe""ed its t"usteeship !ithout the consent of thedono"s and even could the :nited %tates, as a 5ove"n'ent, haveaccepted such a t"ust unde" an# po!e" ("anted to it b# the thi"teeno"i(inal %tates in the Constitution, !hich is 'o"e than doubtful. tfollo!s fu"the" that this 5ove"n'ent is not a p"ope" pa"t# to the action.

8he onl# pe"sons !ho could clai' to be da'a(ed b# this pa#'ent tothe Monte, if it !as unla!ful, a"e the dono"s o" the cest&is 3&etr&stent , and this 5ove"n'ent is neithe".

f =the !hole 'atte" is one of t"usteeship,= and it bein( t"ue that the %panish5ove"n'ent could not, as counsel sa#, t"ansfe" the o!ne"ship of the fund tothe Monte de Piedad , the )uestion a"ises, !ho 'a# sue to "ecove" this loant needs no a"(u'ent to sho! that the %panish o" Philippine 5ove"n'ent, ast"ustee, could 'aintain an action fo" this pu"pose had the"e been no chan(eof sove"ei(nt# and if the "i(ht of action has not p"esc"ibed. But those



(ove"n'ents !e"e so'ethin( 'o"e than 'e"e co''on la! t"ustees of thefund. n o"de" to dete"'ine thei" e act status !ith "efe"ence to this fund, it isnecessa"# to e a'ine the la! in fo"ce at the ti'e the"e t"ansactions too*place, !hich a"e the la! of +une , 94, the "o#al dec"ee of Ap"il 3. 32,and the inst"uctions p"o'ul(ated on the latte" date. 8hese le(al p"ovisions!e"e applicable to the Philippine slands @Benedicto vs. &e la Ra'a, Phil.Rep., 4

8he funds collected as a "esult of the national subsc"iption opened in %painb# "o#al o"de" of the %panish 5ove"n'ent and !hich !e"e "e'itted to thePhilippine 5ove"n'ent to be dist"ibuted a'on( the ea"th)ua*e su e"e"s b#the Cent"al Relief Boa"d constituted, unde" a"ticle of the la! of +une ,94, and a"ticle of the inst"uctions of Ap"il 3, 32, a special cha"it# of a

te'po"a"# natu"e as distin(uished f"o' a pe"'anent public cha"itable

institution. As the %panish 5ove"n'ent initiated the c"eation of the fund andas the dono"s tu"ned thei" cont"ibutions ove" to that 5ove"n'ent, it beca'ethe dut# of the latte", unde" a"ticle 3 of the inst"uctions, to e e"cisesupe"vision and cont"ol ove" the 'one#s thus collected to the end that the!ill of the dono"s should be ca""ied out. 8he "elief boa"d had no po!e"!hateve" to dispose of the funds con>ded to its cha"(e fo" othe" pu"posesthan to dist"ibute the' a'on( the su e"e"s, because pa"a("aph of a"ticle of the inst"uctions confe""ed the po!e" upon the sec"eta"# of the inte"io"

of %pain, and no othe", to dispose of the su"plus funds, should the"e be an#,b# assi(nin( the' to so'e othe" cha"itable pu"pose o" institution. 8hesec"eta"# could not dispose of an# of the funds in this 'anne" so lon( asthe# !e"e necessa"# fo" the speci>c pu"pose fo" !hich the# !e"econt"ibuted. 8he sec"eta"# had the po!e", unde" the la! above 'entioned toappoint and totall# o" pa"tiall# chan(e the pe"sonnel of the "elief boa"d andto autho"i7e the boa"d to defend the "i(hts of the cha"it# in the cou"ts. 8heautho"it# of the boa"d consisted onl# in ca""#in( out the !ill of the dono"s asdi"ected b# the 5ove"n'ent !hose dut# it !as to !atch ove" the acts of theboa"d and to see that the funds !e"e applied to the pu"poses fo" !hich the#!e"e cont"ibuted .8he sec"eta"# of the inte"io", as the "ep"esentative of Fis

Ma?est# s 5ove"n'ent, e e"cised these po!e"s and duties th"ou(h the5ove"no"-5ene"al of the Philippine slands. 8he 5ove"n'ents of %pain and ofthe Philippine slands in co'pl#in( !ith thei" duties confe""ed upon the' b#la!, acted in thei" (ove"n'ental capacities in atte'ptin( to ca""# out theintention of the cont"ibuto"s. t !ill this be seen that those (ove"n'ents !e"eso'ethin( 'o"e, as !e have said, than 'e"e t"ustees of the fund.



t is fu"the" contended that the obli(ation on the pa"t of the Monte dePiedad to "etu"n the $ , to the 5ove"n'ent, even conside"in( it a loan,!as !iped out on the chan(e of sove"ei(nt#, o" inn othe" !o"ds, the p"esentPhilippine 5ove"n'ent cannot 'aintain this action fo" that "eason. 8hiscontention, if t"ue, ='ust "esult f"o' settled p"inciples of "i(id la!,= as itcannot "est upon an# title to the fund in the Monte de Piedad ac)ui"ed p"io"to such chan(e. hile the obli(ation to "etu"n the $ , to the %panish5ove"n'ent !as still pendin(, !a" bet!een the :nited %tates and %painensued. :nde" the 8"eat# of Pa"is of &ece'be" , 9 , the A"chipela(o,*no!n as the Philippine slands, !as ceded to the :nited %tates, the latte"a("eein( to pa# %pain the su' of $ , , . :nde" the >"st pa"a("aph ofthe ei(hth a"ticle, %pain "elin)uished to the :nited %tates =all buildin(s,!ha"ves, ba""ac*s, fo"ts, st"uctu"es, public hi(h!a#s, and othe" i''ovablep"ope"t# !hich, in confo"'it# !ith la!, belon(ed to the public do'ain, and

as such belon(ed to the c"o!n of %pain.= As the $ , !e"e not includedthe"ein, it is said that the "i(ht to "ecove" this a'ount did not, the"efo"e,pass to the p"esent sove"ei(n. 8his, in ou" opinion, does not follo! as anecessa"# conse)uence, as the "i(ht to "ecove" does not "est upon thep"oposition that the $ , 'ust be =othe" i''ovable p"ope"t#= 'entionedin a"ticle of the t"eat#, but upon cont"actual obli(ations incu""ed befo"e thePhilippine slands !e"e ceded to the :nited %tates. e !ill not in)ui"e !hate ect his cession had upon the la! of +une , 49, the "o#al dec"ee of Ap"il3, 32, and the inst"uctions p"o'ul(ated on the latte" date. nHilas vs. Manila @ :. %., 42 , the cou"t said<

8hat the"e is a total ab"o(ation of the fo"'e" political "elations of theinhabitants of the ceded "e(ion is obvious. 8hat all la!s the"etofo"e info"ce !hich a"e in conOict !ith the political cha"acte", constitution, o"institutions of the substituted sove"ei(n, lose thei" fo"ce, is also plain.@Alva"e7 # %anche7 vs. :nited %tates, / :. %., /3. But it is e)uall#settled in the sa'e public la! that the ("eat bod# of 'unicipal la!!hich "e(ulates p"ivate and do'estic "i(hts continues in fo"ce untilab"o(ated o" chan(ed b# the ne! "ule".

f the above-'entioned le(al p"ovisions a"e in conOict !ith the politicalcha"acte", constitution o" institutions of the ne! sove"ei(n, the# beca'einope"ative o" lost thei" fo"ce upon the cession of the Philippine slands to the:nited %tates, but if the# a"e a'on( =that ("eat bod# of 'unicipal la! !hich"e(ulates p"ivate and do'estic "i(hts,= the# continued in fo"ce and a"e still info"ce unless the# have been "epealed b# the p"esent 5ove"n'ent. 8hat the#



fall !ithin the latte" class is clea" f"o' thei" ve"# natu"e and cha"acte". 8he#a"e la!s !hich a"e not political in an# sense of the !o"d. 8he# confe""edupon the %panish 5ove"n'ent the "i(ht and dut# to supe"vise, "e(ulate, andto so'e e tent cont"ol cha"ities and cha"itable institutions. 8he p"esentsove"ei(n, in e e'ptin( =p"ovident institutions, savin(s ban*s, etc.,= all of!hich a"e in the natu"e of cha"itable institutions, f"o' ta ation, placed suchinstitutions, in so fa" as the invest'ent in secu"ities a"e conce"ned, unde"the (ene"al supe"vision of the nsula" 8"easu"e" @pa"a("aph 4 of section of Act No. 9 see also Act No. 3 .

;u"the"'o"e, upon the cession of the Philippine slands the p"e"o(atives ofhe c"o!n of %pain devolved upon he :nited %tates. n Ma(ill vs. B"o!n @ /;ed. Cas., 4 , )uoted !ith app"oval in Mo"'on Cha"ch vs. :nited %tates@ / :. %., , 23 , the cou"t said<

8he Revolution devolved on the %tate all the t"anscendent po!e" ofPa"lia'ent, and the p"e"o(ative of the c"o!n, and (ave thei" Acts thesa'e fo"ce and e ect.

n ;ontain vs. Ravenel @ 3 F!., /9, 4 , M". +ustice McDean, delive"in( theopinion of the cou"t in a cha"it# case, said<

hen this count"# achieved its independence, the p"e"o(atives of thec"o!n devolved upon the people of the %tates. And this po!e" still

"e'ains !ith the' e cept so fact as the# have dele(ated a po"tion of itto the ;ede"al 5ove"n'ent. 8he sove"ei(n !ill is 'ade *no!n to us b#le(islative enact'ent. 8he %tate as a sove"ei(n, is the parens patriae .

Chancelo" 1ent sa#s<

n this count"#, the le(islatu"e o" (ove"n'ent of the %tate, as parens patriae , has the "i(ht to enfo"ce all cha"ities of public natu"e, b# vi"tueof its (ene"al supe"intendin( autho"it# ove" the public inte"ests, !he"eno othe" pe"son is ent"usted !ith it. @4 1ent Co'., 2 , note.

8he %up"e'e Cou"t of the :nited %tates in Mo"'on Chu"ch vs. :nited%tates, s&pra , afte" app"ovin( also the last )uotations, said<

8his p"e"o(ative of parens patriae is inhe"ent in the sup"e'e po!e" ofeve"# %tate, !hethe" that po!e" is lod(ed in a "o#al pe"son o" in thele(islatu"e, and has no a6nit# to those a"bit"a"# po!e"s !hich a"e



so'eti'es e e"ted b# i""esponsible 'ona"chs to the ("eat det"i'ent of the people and the dest"uction of thei" libe"ties. 0n the cont"a"#, it is a'ost bene>cient functions, and often necessa"# to be e e"cised in theinte"est of hu'anit#, and fo" the p"evention of in?u"# to those !hocannot p"otect the'selves.

8he cou"t in the sa'e case, afte" )uotin( f"o' %ohie" vs. Mass. 5ene"alFospital @ Cush., 4 , 493 , !he"ein the latte" cou"t held that it is dee'edindispensible that the"e should be a po!e" in the le(islatu"e to autho"i7e thesa'e of the estates of in facts, idiots, insane pe"sons, and pe"sons not*no!n, o" not in bein(, !ho cannot act fo" the'selves, said<

8hese "e'a"*s in "efe"ence to in facts, insane pe"sons and pe"son not*no!n, o" not in bein(, appl# to the bene>cia"ies of cha"ities, !ho a"e

often in capable of vindicatin( thei" "i(hts, and ?ustl# loo* fo"p"otection to the sove"ei(n autho"it#, actin( as parens patriae . 8he#sho! that this bene>cient functions has not ceased t e ist unde" thechan(e of (ove"n'ent f"o' a 'ona"ch# to a "epublic but that it no!"esides in the le(islative depa"t'ent, "ead# to be called into e e"cise!heneve" "e)ui"ed fo" the pu"poses of ?ustice and "i(ht, and is a clea"l#capable of bein( e e"cised in cases of cha"ities as in an# othe" cases!hateve".

n People vs. Co(s!ell @ Cal. 9, , it !as u"(ed that the plainti !as

not the "eal pa"t# in inte"est that the Atto"ne#-5ene"al had no po!e" toinstitute the action and that the"e 'ust be an alle(ation and p"oof of adistinct "i(ht of the people as a !hole, as distin(uished f"o' the "i(hts ofindividuals, befo"e an action could be b"ou(ht b# the Atto"ne#-5ene"al in thena'e of the people. 8he cou"t, in ove""ulin( these contentions, held that it!as not onl# the "i(ht but the dut# of the Atto"ne#-5ene"al to p"osecute theaction, !hich "elated to cha"ities, and app"oved the follo!in( )uotation f"o'Atto"ne#-5ene"al vs. Co'pton @ oun(e Q C. C., 4 3 <

he"e p"ope"t# a ected b# a t"ust fo" public pu"poses is in the handsof those !ho hold it devoted to that t"ust, it is the p"ivile(e of thepublic that the c"o!n should be entitled to inte"vene b# its o6ce"s fo"the pu"pose of asse"tin(, on behalf on the public (ene"all#, the publicinte"est and the public "i(ht, !hich, p"obabl#, no individual could befound e ectuall# to asse"t, even if the inte"est !e"e such as to allo! it.@ 1net s Co''enta"ies, th ed., 29 De!in on 8"usts, sec. 3 .



t is fu"the" u"(ed, as above indicated, that =the onl# pe"sons !ho couldclai' to be da'a(ed b# this pa#'ent to the Monte, if it !as unla!ful, a"ethe dono"s o" the cest&is 3&e tr&stent , and this 5ove"n'ent is neithe".Conse)uentl#, the plainti is not the p"ope" pa"t# to b"in( the action.= 8heea"th)ua*e fund !as the "esult o" the accu'ulation of a ("eat nu'be" ofs'all cont"ibutions. 8he na'es of the cont"ibuto"s do not appea" in the"eco"d. 8hei" !he"eabouts a"e un*no!n. 8he# pa"ted !ith the title to thei""espective cont"ibutions. 8he bene>cia"ies, consistin( of the o"i(inalsu e"e"s and thei" hei"s, could have been asce"tained. 8he# a"e )uitenu'e"ous also. And no doubt a la"(e nu'be" of the o"i(inal su e"e"s havedied, leavin( va"ious hei"s. t !ould be i'p"acticable fo" the' to institute anaction o" actions eithe" individuall# o" collectivel# to "ecove" the $ , .

8he onl# cou"se that can be satisfacto"il# pu"sued is fo" the 5ove"n'ent toa(ain assu'e cont"ol of the fund and devote it to the ob?ect fo" !hich it !as

o"i(inall# destined.

8he i'p"acticabilit# of pu"suin( a di e"ent cou"se, ho!eve", is not the t"ue("ound upon !hich the "i(ht of the 5ove"n'ent to 'aintain the action "ests.

8he t"ue ("ound is that the 'one# bein( (iven to a cha"it# beca'e, in a'easu"e, public p"ope"t#, onl# applicable, it is t"ue, to the speci>c pu"posesto !hich it !as intended to be devoted, but !ithin those li'its consec"atedto the public use, and beca'e pa"t of the public "esou"ces fo" p"o'otin( thehappiness and !elfa"e of the Philippine 5ove"n'ent. @Mo"'on Chu"ch vs. :.%., s&pra . 8o den# the 5ove"n'ent s "i(ht to 'aintain this action !ould becont"a"# to sound public polic#, as tendin( to discou"a(e the p"o'pt e e"ciseof si'ila" acts of hu'anit# and Ch"istian benevolence in li*e instances in thefutu"e.

As to the )uestion "aised in the fou"th assi(n'ent of e""o" "elatin( to theconstitutionalit# of Act No. 9, little need be said fo" the "eason that !ehave ?ust held that the p"esent Philippine 5ove"n'ent is the p"ope" pa"t# tothe action. 8he Act is onl# a 'anifestation on the pa"t of the Philippine5ove"n'ent to e e"cise the po!e" o" "i(ht !hich it undoubtedl# had. 8he Act

is not, as contended b# counsel, in conOict !ith the >fth section of the Act ofCon("ess of +ul# , 9 , because it does not ta*e p"ope"t# !ithout duep"ocess of la!. n fact, the defendant is not the o!ne" of the $ , , butholds it as a loan sub?ect to the disposal of the cent"al "elief boa"d. 8he"efo",the"e can be nothin( in the Act !hich t"anscends the po!e" of the PhilippineDe(islatu"e.



n 4ilas vs. Manila( s&pra , the plainti !as a c"edito" of the cit# of Manila as ite isted befo"e the cession of the Philippine slands to the :nited %tates b#the 8"eat# of Pa"is of &ece'be" , 9 . 8he action !as b"ou(ht upon thetheo"# that the cit#, unde" its p"esent cha"te" f"o' the 5ove"n'ent of thePhilippine slands, !as the sa'e ?u"istic pe"son, and liable upon theobli(ations of the old cit#. 8his cou"t held that the p"esent 'unicipalit# is atotall# di e"ent co"po"ate entit# and in no !a# liable fo" the debts of the%panish 'unicipalit#. 8he %up"e'e Cou"t of the :nited %tates, in "eve"sin(this ?ud('ent and in holdin( the cit# liable fo" the old debt, said<

8he ?u"istic identit# of the co"po"ation has been in no !ise a ected,and, in la!, the p"esent cit# is, in eve"# le(al sense, the successo" ofthe old. As such it is entitled to the p"ope"t# and p"ope"t# "i(hts of thep"edecesso" co"po"ation, and is, in la!, sub?ect to all of its liabilities.

n suppo"t of the >fth assi(n'ent of e""o" counsel fo" the defendant a"(uethat as the Monte de Piedad declined to "etu"n the $ , !hen o"de"ed todo so b# the &epa"t'ent of ;inance in +une, 9 , the plainti s "i(ht ofaction had p"esc"ibed at the ti'e this suit !as instituted on Ma# , 9 ,citin( and "el#in( upon a"ticle 9/ , 9/4 and 9/9 of the Civil Code. hileon the othe" hand, the Atto"ne#-5ene"al contends that the "i(ht of action hadnot p"esc"ibed @a because the defense of p"esc"iption cannot be set upa(ainst the Philippine 5ove"n'ent, @b because the "i(ht of action to "ecove"a deposit o" t"ust funds does not p"esc"ibe, and @c even if the defense ofp"esc"iption could be inte"posed a(ainst the 5ove"n'ent and if the actionhad, in fact, p"esc"ibed, the sa'e !as "evived b# Act No. 9.

8he 'ate"ial facts "elatin( to this )uestion a"e these< 8he Monte dePiedad "eceived the $ , in =to be held unde" the sa'e conditionsas at p"esent in the t"easu"#, to !it, at the disposal of the "elief boa"d.= nco'pliance !ith the p"ovisions of the "o#al o"de" of &ece'be" , 9 , the&epa"t'ent of ;inance called upon the Monte de Piedad in +une, 9 , to"etu"n the $ , . 8he Monte declined to co'pl# !ith this o"de" upon the("ound that onl# the 5ove"no"-5ene"al of the Philippine slands and not the&epa"t'ent of ;inance had the "i(ht to o"de" the "ei'bu"se'ent. 8hea'ount !as ca""ied on the boo*s of the Monte as a "etu"nable loan until

+anua"# , 99, !hen it !as t"ansfe""ed to the account of the =%a("adaMit"a.= 0n Ma"ch , 9 , the Monte, th"ou(h its le(al "ep"esentative,stated in !"itin( that the a'ount in )uestion !as "eceived as a "ei'bu"sable



loan, !ithout inte"est. Act No. 9 beca'e e ective +anua"# , 9 , andthe action !as instituted on Ma# "d of that #ea".

Counsel fo" the defendant t"eat the )uestion of p"esc"iption as if the action!as one bet!een individuals o" co"po"ations !he"ein the plainti is see*in(to "ecove" an o"dina"# loan. :pon this theo"# +une, 9 , cannot be ta*en asthe date !hen the statute of li'itations be(an to "un, fo" the "eason that thedefendant ac*no!led(ed in !"itin( on Ma"ch , 9 , that the $ ,!e"e "eceived as a loan, the"eb# in e ect ad'ittin( that it still o!ed thea'ount. @%ection 2 , Code of Civil P"ocedu"e. But if counsels theo"# is theco""ect one the action 'a# have p"esc"ibed on Ma# , 9 , because 'o"ethan ten full #ea"s had elapsed afte" Ma"ch , 9 . @%ections and 4 ,Code of Civil P"ocedu"e.

s the Philippine 5ove"n'ent bound b# the statute of li'itations 8he%up"e'e Cou"t of the :nited %tates in :. %. vs. Nashville, Chattanoo(a Q %t.Douis Rail!a# Co. @ :. %., , 2 , said<

t is settled be#ond doubt o" cont"ove"s# G upon the foundation of the("eat p"inciple of public polic#, applicable to all (ove"n'ents ali*e,!hich fo"bids that the public inte"ests should be p"e?udiced b# thene(li(ence of the o6ce"s o" a(ents to !hose ca"e the# a"e con>ded Gthat the :nited %tates, asse"tin( "i(hts vested in it as a sove"ei(n(ove"n'ent, is not bound b# an# statute of li'itations, unless

Con("ess has clea"l# 'anifested its intention that it should be sobound. @Dindse# vs. Mille", / Pet. /// :. %. vs. 1ni(ht, 4 Pet., 5ibson vs. Chouteau, all., 9 :. %. vs. 8ho'pson, 9 :. %., 4 /;in* vs. 0 Neil, / :. %., 3 , .

n 5ibson vs. Choteau, s&pra , the cou"t said<

t is a 'atte" of co''on *no!led(e that statutes of li'itation do not"un a(ainst the %tate. 8hat no laches can be i'puted to the 1in(, andthat no ti'e can ba" his "i(hts, !as the 'a i' of the co''on la!s,and !as founded on the p"inciple of public polic#, that as he !asoccupied !ith the ca"es of (ove"n'ent he ou(ht not to su e" f"o' thene(li(ence of his o6ce" and se"vants. 8he p"inciple is applicable to all(ove"n'ents, !hich 'ust necessa"il# act th"ou(h nu'e"ous a(ents,and is essential to a p"ese"vation of the inte"ests and p"ope"t# of thepublic. t is upon this p"inciple that in this count"# the statutes of a%tate p"esc"ibin( pe"iods !ithin !hich "i(hts 'ust be p"osecuted a"e



not held to e'b"ace the %tate itself, unless it is e p"essl# desi(natedo" the 'ischiefs to be "e'edied a"e of such a natu"e that it 'ustnecessa"il# be included. As le(islation of a %tate can onl# appl# tope"sons and thin( ove" !hich the %tate has ?u"isdiction, the :nited%tates a"e also necessa"il# e cluded f"o' the ope"ation of suchstatutes.

n 2 C#c., /, the "ule, suppo"ted b# nu'e"ous autho"ities, is stated asfollo!s<

n the absence of e p"ess statuto"# p"ovision to the cont"a"#, statute of li'itations do not as a (ene"al "ule "un a(ainst the sove"ei(n o"(ove"n'ent, !hethe" state o" fede"al. But the "ule is othe"!ise !he"ethe 'ischiefs to be "e'edied a"e of such a natu"e that the state 'ust

necessa"il# be included, !he"e the state (oes into business in conce"to" in co'petition !ith he" citi7ens, o" !he"e a pa"t# see*s to enfo"ceshis p"ivate "i(hts b# suit in the na'e of the state o" (ove"n'ent, sothat the latte" is onl# a no'inal pa"t#.

n the instant case the Philippine 5ove"n'ent is not a 'e"e no'inal pa"t#because it, in b"in(in( and p"osecutin( this action, is e e"cisin( its sove"ei(nfunctions o" po!e"s and is see*in( to ca""# out a t"ust developed upon it!hen the Philippine slands !e"e ceded to the :nited %tates. 8he :nited%tates havin( in 2 , pu"chased as t"ustee fo" the Chic*asa! ndians unde"

t"eat# !ith that t"ibe, ce"tain bonds of the %tate of 8ennessee, the "i(ht ofaction of the 5ove"n'ent on the coupons of such bonds could not be ba""edb# the statute of li'itations of 8ennessee, eithe" !hile it held the' in t"ustfo" the ndians, o" since it beca'e the o!ne" of such coupons. @:.%.vs. Nashville, etc., R. Co., s&pra . %o !he"e lands a"e held in t"ust b# thestate and the bene>cia"ies have no "i(ht to sue, a statute does not "una(ainst the %tate s "i(ht of action fo" t"espass on the t"ust lands. @5"eene

8p. vs. Ca'pbell, / 0hio %t., see also Att#.-5en. vs. Midland R. Co., 0nt., 2 Kfollo!in( Re(. vs. illia's, 9 :. C. . B., 93L.

8hese p"inciples bein( based =upon the foundation of the ("eat p"inciple ofpublic polic#= a"e, in the ve"# natu"e of thin(s, applicable to the Philippine5ove"n'ent.

Counsel in thei" a"(u'ent in suppo"t of the si th and last assi(n'ents ofe""o" do not )uestion the a'ount of the ?ud('ent no" do the# )uestion the



co""ectness of the ?ud('ent in so fa" as it allo!s inte"est, and di"ects itspa#'ent in (old coin o" in the e)uivalent in Philippine cu""enc#.

;o" the fo"e(oin( "easons the ?ud('ent appealed f"o' is a6"'ed, !ith costsa(ainst the appellant. %o o"de"ed.

Torres( 1ohnson and Ara&llo( 11.( conc&r.Moreland( 1.( did not sign.

Government of Teh Philippine Islands vs Monde de Piedad

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