services for which maximum prices are established thereby shall keep records showing, as precisely as possible, the basis upon which he determined maximum prices for those services supplied by him after May 11, 1942, the effective date of the said Regulation.
6. The defendant did not, on or before July 1, 1942, nor at any time prior to the institution of this suit, prepare the statement required by Section 1499.11 of the General Maximum Price Regulation.
7. The defendant did not, at any time prior to the insitution of this suit, keep any records showing the basis upon which it determined maximum prices, as required by Section 1499.12 of the General Maximum Price Regulation.
It is admitted by defendant that it did not prepare and keep a base period statement in accordance with Section 1499.11 (b) and records showing the basis upon which maximum prices for its services were determined. The substance of the defense is that there was substantial compliance in that defendant kept all invoices and orders, and all other records.I am of the opinion that this is not substantial compliance. Section 1499.11(a) of the Regulation requires that defendant preserve existing records relating to prices charged or prices at which its services were offered. Subsection (b) requires something additional, that is, that defendant "Prepare on or before July 1, 1942, on the basis of all available information and records, and thereafter keep * * * a statement" showing the highest prices or highest offering prices for its services during March, 1942. Section 1499.12 requires that current records be kept "and in addition, records showing, as precisely as possible the basis on which he determined maximum prices for those commodities or services." The defendant has satisfied only a part of the requirements of the Regulation. The fact that its failure to satisfy all the requirements was not in bad faith is immaterial: performance as well as good faith is necessary. A holding in favor of the defendant here would be tantamount to a holding that the Act and Regulation need not be complied with until action is brought, and that escape without consequence may be had by then submitting to the law. Sections 1499.11 and 1499.12 of the General Maximum Price Regulation are the foundation of the wartime price economy. That foundation may not be so easily undermined.
Accordingly, I state the following conclusions of law:
1. Defendant has violated the Emergency Price Control Act of 1942, as amended, by failing to prepare, on or before July 1, 1942, or at any time prior to the institution of this suit, a statement of March 1942 maximum prices, commonly known as a "base period statement", as required by Section 1499.11 of the General Maximum Price Regulation.
2. Defendant has violated the Emergency Price Control Act of 1942, as amended, by failing to keep records showing the basis upon which it determined maximum prices for such commission weaving services as it performed subsequent to May 11, 1942, as required by Section 1499.12 of the General Maximum Price Regulation.
An injunction may issue.
An order may be submitted in accordance with this opinion.
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