The Cebu Ice & Cold Stores Corp. and Constancia Velez

During the American occupation, Constancia Velez was granted by the Public Service Commission for the operation, installation, and maintenance of an ice and cold storage plant and a refrigerating system in the then municipality of Cebu (now Cebu City), province of Cebu.

The decision of the Public Service Commission was challenged by Cebu Ice & Cold Stores Corporation which was the only ice plant in Cebu since 1921. Cebu was an important port in the Visayan Islands which at that time had about 65,000 inhabitants. There were hospitals, hotels, refreshment parlors, restaurants, pansiterias, carinderias, and Japanese fishermen who used ice daily in large quantities.

It was found that during the trial for the application of the license the Public Service Commission that the existing ice plant (Cebu Ice & Cold Stores) present output was insufficient and inadequate for the consumption and demand of the general public. The commission then convinced of the necessity of having another ice manufacturer granted Constancia Velez public convenience to manufacturer ice.

The Public Service Commission in justifying its issuance of public convenience to Constancia Velez said:

That the ice Cebu Ice & Cold Stores was selling was insufficient and defective inasmuch as it could hardly supply inferior ice that had not been frozen for the required length of time, on some occasions disposing of ice that instead of the 50 hours needed, had been frozen for only 15 hours.

That it had been unable to sell ice to many, because ice first sold to regular customers and then to ticket holders, rejecting small purchasers, especially those buying in small quantities.

Constancia Velez (the new applicant) was ready to invest all the necessary money in the ice plant with large refrigerators to preserve fish and other products. That she will sell ice from 6:00 in the morning until 6:00 in the evening. The ice plant shall be established on F. Ramos St. while the Cold Stores on Comercio Street.

Cebu Ice & Cold Stores at that time had the capacity to produce 20 to 25 tons of ice per day. However, it was less than the demand of ice at that time. At that time in Manila there were already three ice plants, the San Miguel Brewery and the government plant. Cebu Ice & Cold Stores that opposed the granting of the public convenience went to the Supreme Court to say that the new ice plant would bring ruinous competition which in the long run would injure the public.

The annual report submitted by the Cebu Ice shows that with P150,200 in paid up capital, the gross income of the business during the year 1930 was P131,371.83, the expenses P72,256.79 and the resulting net income of P59,115.04, or 39 percent of the capital invested. Notwithstanding the profits, the reduction in the Cebu Ice rates had gone so slowly that to-day it still charges P0.0275 per kilo of ice made with undistilled water, whereas as compared to the price in Manila which is only P0.015 per kilo of ice although the manufactured ice with distilled water is more expensive. Constancia Velez promised to sell ice less than what Cebu Ice is selling.

The Supreme Court through the American Justice, Ostrand, in a decision dated October 17, 1932 was then convinced that the entry of another ice manufacturer would benefit the public in Cebu of a more efficient service. During the trial of the case one of the witnesses was Julian Santiago who owns an ice cream parlor that needed two to four blocks of ice per day. Constancia Velez was assisted by Jose Leyson in her case before the Public Service Commission all the way to the Supreme Court. Leyson was admitted to the Bar on November 5, 1923. Leyson became governor of Cebu and was executed by the Japanese Imperial Army occupying Cebu. Progreso St. in the Carbon area had been renamed after him since August 11, 1971 yet up to now the street name has not been changed and still bears the old name, with a patriot deprived of a street named in his honor for dying in the name of God and country.