Citations
- 337 F. Supp. 1068
Full opinion text
MEMORANDUM OF DECISION AND ORDER
PORTER, District Judge.
This is a ease of first impression under the recently enacted Wage and Price Stabilization Act. It has mushroomed as a result of violent disagreement as to whether a service cutback and fare increase violated Phase I and II Price Freeze Regulations.
We conclude that the fare increase violated Phase II regulations. We conclude that the service cutback, if not a Phase I violation, violated the Phase II regulations, and a prospective injunction should issue against any further such fare increases and/or service cutbacks without the certification required from the Director of Public Utilities of Cincinnati required by the regulations.
We reserve for determination at final hearing whether an injunction should issue requiring restoration of service cuts or, in the alternative, whether fares should be rolled back to reflect the savings resulting from such cuts. We also reserve for determination on final hearing whether money collected in violation of the freeze must be ordered accounted for the next time there is a fare increase so that it will inure to the benefit of bus riders. We also reserve for determination at final hearing whether the service cutback violated Phase I regulations, and, if so, what is appropriate in the way of injunctive relief.
The action is one for preliminary injunction and was brought by the United States pursuant to the Economic Stabilization Act of 1970, 84 Stat. 799, and the rules and regulations issued thereunder, specifically, § 205 of the Act. Jurisdiction is conferred by the Stabilization Act and 28 U.S.C. § 1845 (United States as a plaintiff).
The defendant is Cincinnati Transit, Inc., a public utility engaged in providing mass transportation in the form of bus service to the City of Cincinnati (City). Defendant took pains to file an action in this Court seeking a declaratory judgment and appellate review of an earlier adverse determination before the government filed its action seeking injunctive relief. No purpose was served by this “race to the Courthouse” because the cases were ordered consolidated at the hearing of the government’s motion for injunctive relief, held December 29, 1971, and the company’s motion to dismiss the government’s suit was denied.
After consolidation we denied the company’s request for declaratory relief from the bench for reasons given at the time and others mentioned herein. From the bench we also granted the City’s motion to intervene.
The motion for a preliminary injunction is submitted on affidavits and from these and the professional statements of counsel we find the facts as follows:
Pursuant to an agreement between the defendant and the City which was entered into prior to the wage and price “freeze,” August 15, 1971, the defendant was authorized to increase its bus fares 5