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PORTER v. MEGOW

June 4, 1946

PORTER, Adm'r, OPA,
v.
MEGOW



The opinion of the court was delivered by: KALODNER

This action was brought by the Administrator of the Office of Price Administration pursuant to Section 205(a) and (e) of the Emergency Price Control Act of 1942, as amended, 50 U.S.C.A.Appendix, § 925(a) and (e). Alleging acts and practices of the defendant in violation of Section 4(a) of the Act, 50 U.S.C.A.Appendix, § 904(a), and of Maximum Price Regulation No. 188 as amended (7 F.R. 5872), the Administrator seeks treble damages in addition to equitable relief.

This Court is without jurisdiction to resolve issues relating to the validity of any order or regulation promulgated by the Administrator. Section 204(d), Emergency Price Control Act, 50 U.S.C.A.Appendix, § 924(d). Therefore, the questions for determination are narrowed to three: (1) whether violations occurred, (2) if so, were they wilful and the result of failure to take practicable precautions, and finally (3) is this a proper case for the issuance of a restraining order.

 The cause having come on to be heard by the Court without a jury, on the basis of the pleadings and the evidence, I make the following

 Findings of Fact

 1. Plaintiff is the Administrator of the Office of Price Administration.

 2. Defendant at all times mentioned in this suit was engaged in the manufacture and sale of hand tools, such as tube pullers, aligning tools and socket handles, at Howard and Oxford Streets, Philadelphia, Pennsylvania.

 3. Defendant was engaged in the business of manufacturing and selling socket handles, also known as socket wrenches, on and after September 1, 1943.

 4. Maximum Price Regulation No. 188 (7 F.R. 5872) was duly issued on July 29, 1942, pursuant to Section No. 2 of the Emergency Price Control Act of 1942, as amended and extended, 50 U.S.C.A.Appendix, § 902, and became effective on August 1, 1942, and has continued in effect as amended at all times herein mentioned.

 5. The First (Section 1499.155), Second (Section 1499.156), and Third (Section 1499.157) Pricing Method of Maximum Price Regulation No. 188 were not applicable to the price determination of the socket handles manufactured by the defendant on and after September 1, 1943, and sold by the defendant on and after September 1, 1943.

 6. Section 1499.158 of Maximum Price Regulation No. 188 required the filing of a report with the Office of Price Administration applying for and the receiving of specific authorization of a maximum price before selling or offering for sale the aforesaid socket handles.

 7. From, on and after September 1, 1943, until November 2, 1944, defendant violated Section 1499.158 of Maximum Price Regulation No. 188, in that he sold and delivered socket handles without first applying for and/or receiving specific authorization of a maximum price.

 8. All sales of socket handles were made to buyers who purchased the same in the course of trade or business.

 9. On August 9, 1944, defendant filed a report for specific authorization of a maximum price for the aforesaid socket handles and continued to sell the same until November 2, 1944.

 10. On November 21, 1944, pursuant to a report applying for specific authorization of a maximum price, filed by the defendant, the Administrator by Order No. 2963, under Section 1499.158 of Maximum Price Regulation No. 188, established a maximum price for the sale of the aforesaid socket handles by the defendant at thirty-nine cents each. Amendment No. 1 to Order No. 2963, under Section 1499.158 of Maximum Price Regulation ...


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