REPUBLIC OF THE PHILIPPINES
OFFICE OF THE PRESIDENT
MANILA

BY THE PRESIDENT OF THE REPUBLIC
OF THE PHILIPPINES

ORDINANCE NO. 1

ON THE CONTROL OF THE DISTRIBUTION
OF RICE AND CORN

There being an urgent necessity to adjust the distribution of rice and corn and their byproducts to stabilize the livelihood of the People, and pursuant to the authority conferred upon me by Article III, section 14, of the Constitution, I, Jose P. Laurel, President of the Republic of the Philippines, do hereby promulgate this Ordinance:

Chapter I.—REGULATIONS, OFFENSES AND
PENALTIES

SECTION 1. The purpose of this Ordinance shall be to effect the control of the supply and distribution of rice and corn in order to secure an equitable distribution of these commodities as required by the present emergency. Whenever the words “rice” and “corn” are used in this Ordinance, the same shall be intended to refer also to their by-products.

SEC. 2. For the purpose stated in the preceding section—

(a) The National Rice and Corn Corporation, under the supervision and control of the Minister of Agriculture and Commerce, is hereby designated as the organization to be in charge of controlling the supply and distribution of rice and corn and shall, for the purposes of this Ordinance, be called the control organization, until otherwise directed by the President of the Republic of the Philippines.

(b) The Director of Plant Industry is hereby authorized and directed to organize, supervise and control rice and corn growers’ cooperative associations and federations thereof, and rice threshers’ cooperative associations and federations thereof in all municipalities where rice and corn are produced.

(c) Provincial governors and city mayors are hereby authorized and directed to organize or complete the organization, within a reasonable time, of district and neighborhood associations in their respective provinces, cities and municipalities.

SEC. 3. Membership of landowners, operators, and their tenants, engaged in the production of rice or corn, in the rice and corn growers’ cooperative associations, and of all rice threshers in the various municipalities and cities in the threshers’ cooperative associations shall be compulsory, and refusal to become a member or to fulfill the obligations of membership therein shall be considered a violation of this Ordinance.

SEC. 4. The control organization shall fix the amount of palay or corn which each member of a rice and corn growers’ cooperative association may keep for his own consumption and for seed after each harvest: Provided, That, in case of palay, such amounts shall not be more than the following:

(a) For consumption: for farm operators, their tenants and dependents—eight cavans per capita per year; and

(b) For seed: one cavan per hectare for each sowing.

Any quantity of rice or corn harvested by f any member of an association in excess of t the amount he is allowed to keep, as above provided, shall be turned over and sold by him to the association, whose duty it shall be to transfer and resell the same to the control organization. The maximum selling and reselling prices for every province or municipality shall be fixed by the Minister of Agriculture and Commerce for each crop year at such rates as shall afford the producers a reasonable profit, taking into consideration the expenses incurred in the production and the cost of living of the producers.

SEC. 5. It shall be the duty of each member of a rice and corn growers’ cooperative association to submit to his association, at the end of each harvest, and at such other times that he is called upon to do so, data regarding the area planted and quantity produced by him for such harvest, number of his dependents (and in the case of farm operators, his tenants and dependents) and such other data as the control organization or the association may require. The association shall compile such data and submit the same promptly to the control organization.

SEC. 6. It shall be the duty of each member of a threshers’ cooperative association to report to his association all quantities of palay threshed by him. The association shall compile such reports and transmit the same to the control association. The control association shall prescribe the contents and form of the reports, and the dates of submitting them.

SEC. 7. It shall be unlawful for any person, natural or juridical, to operate a rice or corn mill without a license duly issued by the Minister of Agriculture and Commerce, upon recommendation of the control organization: Provided, however, That all existing permits to operate a rice or corn mill shall subsist and be considered valid unless revoked by the Minister of Agriculture and Commerce.

The control organization shall determine for what organizations or persons the licensed rice or corn mills may mill, and after such determination, which shall be stated in the license, it shall be unlawful for any mill owner to mill rice or corn for any other person or organization.

It shall be the duty of owners of all licensed rice or corn mills to report to the control organization all amounts of rice or corn milled by them or deposited in their warehouses. The form, contents, and dates of submitting these reports shall be prescribed by the control organization.

SEC. 8. Whenever public interest so requires, the Minister of Agriculture and Commerce, with the approval of the President of the Republic of the Philippines, may authorize the control organization or its representatives to suspend the operation or take over the possession, use or operation of any rice or corn mill, or machinery, or warehouse used operated in connection therewith, or the cultivation and operation of any rice or corn farm or land, or of any means of transportation by land or by water, and to operate the same upon payment of just compensation for such taking over, use, possession or operation as determined by the Minister of Agriculture and Commerce. If the amount of compensation so determined should be unsatisfactory to the person entitled to receive the same, such person shall be paid seventy-five per cent of the amount so determined and shall be entitled to sue the Republic of the Philippines to recover such further sums as added to the seventy-five per cent will make up such amount as will be just compensation, in the manner provided by the laws in force for the purpose of determining the compensation to be paid to the owner of property acquired through eminent domain.

Whenever the Minister of Agriculture and Commerce shall determine that further use or operation of any rice or corn mill, machinery, warehouse, farm land, or means of transportation is no longer justified by existing conditions, the same shall be restored to the person or persons entitled to the possession thereof.

Any income derived from or in connection with the use or operation contemplated in this section may, in the discretion of the Minister of Agriculture and Commerce, with the approval of the President of the Republic of the Philippines, be used as a revolving fund for the purpose of continuing such use or operation.

SEC. 9. It shall be unlawful for any thresher or mill owner to resell to any person not authorized by the control organization to operate under this Ordinance any fuel, lubricant, or mill parts or supplies purchased by him from the control organization.

SEC. 10. The Minister of Agriculture and Commerce or the control organization may, whenever necessary for the enforcement of this Ordinance, require any public official or private person, whether juridical or natural, to submit pertinent data and information, and may cause to be made at all reasonable hours searches and examinations of warehouses, establishments or shops of persons habitually engaged in the production, processing, or sale of rice and corn; make inquiries as to their methods of, or the conditions surrounding, the production, processing, sale and distribution of such commodities, and their quantity of stock thereof; or inspect their books of accounts and other papers and articles used in the business or trade. Such orders shall be executed by any public official or official of the control organization duly accredited, who shall exhibit certificates of identification and authority is sued by the control organization before making the inspection, search, examination or inquiry.

SEC. 11. No one except the control organization or the persons designated by said organization shall engage in the purchase, importation, sale or transfer of rice and corn, or act as agent, broker, or intermediary in the purchase, sale or transfer of such commodities or keep or store such commodities for the purpose of their sale or transfer unless authorized by the Minister of Agriculture and Commerce.

SEC. 12. No producer or processor of rice or corn shall sell or transfer such commodities except to the control organization or upon express authority of the latter.

No producer or processor of rice and corn shall keep or store such commodities for the purpose of selling or transferring them to persons other than the control organization nor refuse to sell such commodities to such control organization at the price fixed by the Minister of Agriculture and Commerce in accordance with the provisions of section 4 hereof.

No person shall buy or acquire directly or indirectly such commodities from persons other than the control organization or agents or persons authorized by it.

SEC. 13. Subject to the supervision and control of the Minister of Agriculture and Commerce, the control organization shall take exclusive charge of the distribution of rice and corn among the consumers of the Philippines, and shall arrange for the general plan of distribution and all the details thereof: Provided, That, whatever other intermediaries may be employed, the official district and neighborhood associations shall be utilized in the distribution of these cereals among the ultimate consumers.

SEC 14. Any person who is found guilty of directly or indirectly violating any provisions of this Ordinance or the rules and regulations issued by the Minister of Agriculture and Commerce, or of facilitating, aiding or abetting in any way such violation, or of interfering in the proper enforcement of this Ordinance, shall be punished with a fine of not exceeding ten thousand pesos or imprisonment of not exceeding ten years, or both, in the discretion of the Court.

Any commodity involved in the offense shall be subject to confiscation. In case confiscation cannot be made according to the provisions of the Revised Penal Code, because of the intervening rights of persons acting in good faith, the offender may be required to forfeit to the Government a sum equivalent to the value of the commodities involved.

SEC 15. Violations of this Ordinance by the managers, representatives, directors, agents or employees of any natural or judicial person in the interest of the latter shall render said natural or juridical person amenable to the Penalties corresponding to the offense, without prejudice to the imposition of the proper penalty, either personal or pecuniary, or both, upon the manager, representative, director, agent or employee: Provided, That principals or employers who are juridical persons shall only be amenable to the pecuniary penalty corresponding to the particular offense.

SEC. 16. Several successive acts in violation of the provisions of this Ordinance if committed in such close proximity to each other as to warrant the conclusion that they are impelled by a single criminal intent, shall be regarded as constituting only a single offense.

Chapter II.—PROCEDURE

SEC. 17. The municipal court of the city and the justice of the peace court of the capital of the province shall have concurrent jurisdiction with the corresponding Court of First Instance over offenses under the provisions of this Ordinance.

SEC. 18. Where the accused is a juridical person, it shall be represented by its manager, directors or any other person acting in a representative capacity. Even if, according to its organization or by-laws, the representation of such juridical person requires the joint action of two or more directors, managers or representatives, any one of them may represent the juridical person in the criminal proceedings.

SEC. 19. In the absence of any person representing an accused, which is a juridical person, a representative shall be provisionally appointed by the court on its own authority or on motion of the prosecuting officer, and the person so appointed shall attend the proceedings and discharge his duties until a regular representative is appointed or selected.

SEC. 20. In proceedings under this Ordinance, search warrants may be issued authorizing peace officers to search for and seize any articles or objects described in the warrant, including those which may be regarded as evidence of an offense under this Ordinance even if such articles or objects are not included among those described in section 2, Rule 122, of the Rules of Court.

SEC. 21. The accused or his representative may be examined by the court, and with the permission of the court, by the fiscal or other prosecuting officer as to any matters favorable or unfavorable to him or his principal; and either may apply to the judge for the examination of the co-accused or the representative of the latter in matters related to the defense of the accused.

SEC. 22. Whenever the court finds that the evidence of guilt is strong and that the accused may become liable to a fine in accordance with the provisions of this Ordinance, the court may issue a writ for the preliminary attachment of so much of his properties as may be necessary, corresponding to the fine which, under the circumstances of the case, might be imposed upon the accused. The writ of attachment must require the proper officer to attach so much of the property of the accused not exempt from execution, as may be sufficient to pay the probable fine and to keep such property in custody unless the accused deposits or gives satisfactory bond in an amount sufficient to satisfy the said fine or in an amount equal to the value of the property which is attached.

Attachment shall be made in accordance with the provisions of Rule 59 of the Rules of Court insofar as applicable; but no appeal shall be allowed against the order of preliminary attachment.

A final judgment of acquittal, dismissal, or conviction with imprisonment only shall operate to discharge the preliminary attachment where the same has been granted. If the amount of the fine imposed by final judgment should be less than the value of the property attached, the order of attachment shall be amended to conform with the final judgment.

SEC. 23. Trial of cases for violations of this Ordinance shall be heard and determined within fifteen days after the action is filed unless special permission is obtained from the Minister of Justice, and shall be conducted according to the following rules:

(a) After arraignment and plea, the court shall immediately cause to be explained to the accused the facts constituting the offense with which he is charged, and the judge shall interrogate the accused and the witnesses as to the facts and circumstances of the case in order to clarify the points in dispute and those which are admitted.

(b) Refusal of the accused to answer any questions made or allowed by the court may be taken into account by the judge in the final disposition of the case.

(c) If from the facts admitted at the preliminary interrogation, it should appear that the accused is guilty of the crime charged in the information or in any amendment thereto, a sentence of conviction may be immediately rendered against the accused. Otherwise, the judge shall dictate an order distinctly specifying the facts admitted by .the accused and those which are in dispute, and the trial shall be limited to the latter, unless the judge, for special reasons, otherwise directs.

(d) Unjustified absence of an accused who has been released on bail, or of his representative, shall not be a ground for interrupting the proceedings or impugning the validity of the judgment.

The provisions of Rules 115 to 117 of the Rules of Court shall be suppletory to the foregoing insofar as they are in conflict therewith.

SEC. 24. The judge or clerk of a municipal or justice of the peace court in which the trial is held, must keep minutes of all the proceedings, including those of the preliminary interrogatory; he must note down the nature of each and every document or article offered in evidence at the trial, and unless a stenographer is employed, make an abstract of the testimony of the accused and of each and every witness examined. The abstract shall be presented to the declarant for inspection, correction or amendment, and signature. Each and every page of the abstract must be signed and if the declarant refuses to sign, this fact shall be noted on the abstract.

SEC. 25. No proceedings for special remedy in relation to an incident of the trial shall be allowed to interrupt the progress of the trial.

The orders, rulings and decisions of the municipal or justice of the peace courts may only be appealed to the Court of First Instance; and those of the Court of First Instance, acting as a trial court, may be appealed to the Court of Appeals. No petition other than an appeal shall suspend the proceedings under this Ordinance. Appeals shall be decided within ten clays after being submitted for decision.

The Court of First Instance, or the Court of Appeals, in hearing cases appealed thereto from any inferior courts, shall be limited to the examination and review of the records. However, if the records should be found wanting in any respect or if a motion for new trial filed by the accused in accordance with the Rules of Court should be deemed meritorious or whenever the appellate court shall deem it proper, it may issue the necessary orders to have the records clarified or supplemented and may call or recall the accused or any witness or may order a new trial to be held before the appellate court itself or before a referee appointed by said court, unless the circumstances justify a remand of the case to the court of origin for a new trial. The decisions of the appellate court on appealed cases shall be final, except that recourse may be had to the Supreme Court on questions of law.

SEC. 26. Final decisions imposing a fine or forfeiture shall be enforced by order of the competent judge in accordance with the Rules of Court on civil executions insofar as applicable, but it shall not be necessary to serve the accused with a copy of the decision before the same is executed.

SEC. 27. When a juridical person is fined and the said juridical person is dissolved or merged with another before or after the decision becomes final, execution of the decision may be made against the property of the dissolved entity or the juridical person arising from the merger.

Chapter III.—FINAL PROVISIONS

SEC. 28. The Minister of Agriculture and Commerce is hereby authorized to issue such rules and regulations as he may deem necessary to carry into effect the provisions of this Ordinance.

SEC. 29. The provisions of this Ordinance shall be enforced in such territory as the Minister of Agriculture and Commerce may from time to time determine.

SEC. 30. All laws, rules or orders, or parts thereof, inconsistent with the provisions of this Ordinance, are hereby repealed or modified accordingly.

SEC. 31. This Ordinance shall take effect immediately upon its promulgation.

Done in the City of Manila, this 20th day of November, in the year of Our Lord, nineteen hundred and forty-three, and of the Republic of the Philippines, the first.

(Sgd.) JOSE P. LAUREL
President of the Republic
of the Philippines

By the President:
(Sgd.) JOSE GIL
Acting Executive Secretary

Source: Office of the Solicitor General Library