Reed v. Rhodes

ORDER

BATTISTI, Chief Judge.

The acquisition of a transportation system has been a problem throughout this desegregation lawsuit. In the early going, the central and recurring theme presented to the Court was the local district’s inability to contract for buses because of its unstable financial posture. Bus companies have refused to enter its contracts with the school district without some form of assurance, either an escrow fund or an irrevocable letter of credit, that they would be timely paid.

On October 23, 1978 the United States sought an order requiring the local defendants to establish an…