The Washington times., 1922-10-06
.U,S,DEFRAUDED
IN PLANE DEAL,
IS ALLEGATION
Suit for Recovery Of $2,4o8,'
267 Brought Against Day.
ton, Ohio, Company.
BY Universal Service.

A war fraud suit, for the recovery
OF $2.4OS. .2G7.51. plus interest at 6 per
cent from June II. 1919. approxi-
mating a half million dollars, was
filed by the Government yesterday
in United States District Court at
Dayton. Ohio, against the Dayton
Airplane Company. formerly the
Dayton Wright Airplane Company,
the Department of Justice announces.
The Government alleges that this
sum was unlawfully paid the defend
ant company on seven airplane con
tracts during the world war. the total
payments under these contracts lie.
ing $3l,4S6,175.1l. The illegal pay
ments as specified include $50, 1870 G2
for alleged public accounting serv-
ice: $S49, ,S20.l7 as a pretended bonus
for saving in construction cost: $780,
6S522 under a pretended claim of
welfare expense: $l7,l69.21 for mo-
ton picture expense; $137,71S.S4 for
railroad transportation of defendant
employees; $23,665.50 for coal used
for other than contract purposes;
SAT ,944.34 discounts on materials and
equipment which the company failed
to take advantage Of; $63S, ,317.22 for
special depreciation that did not
exist, and $602,S16.19 for property
sold fraududently to the company at
less than 10 per cent Of its real
value.
Under the original contracts the
Government agreed to advance the
company $2,500,000. From time 10
time additional payments were made
| hn nxraadnH E11 nm Onn
Concerning the accounting item
the Government claims the defend
ant did not at any time make. keep
or maintain accounting records OF
the kind and character required Ey
the contract, and that the representa-
ton md pretense made by the dc.
| fendant that it did make. keep and
maintain such records was false and
untrue"
Concerning the bonus payment,
! the Government asserts the GOV
ernment was under no obligation to
make such a payment or any part
! thereof, and that the defendant
rendered no service for which that
amount was intended to be paid"
In regard to the welfare claim,
the Government claims "suCh
money was expended for the main
| tenanCe and operation of an amuSe-
ment park known as Triangle Park.
! at Dayton, Ohio. not accessible 10
| the employees OF the defendant and
from eight to fifteen miles distant
from the defendants manufacturing
plants"
AS to the motion picture item.
the Government asserts there was
no provision in the contracts for
the payment and cost of any such
propaganda.
On the railroad transportation
claim. under the pretense that
such payment was authorized by
the terms OF the contract" the Gov
ernment declares there We're no
such provisions in any of the con-
tracts"
As to discounts. the Government
declares under the terms OF the
contracts it was the duty OF the
defendant to take advantage Of
such discounts offered and avail
able, which It wrOngfully and neg
lgently failed to do, so that this
payment by the officers OF the Gov
ernment was unwarranted. unlaw-
full and fraudulent"
The Government claims that
property to the value of S66S .lI0.75
was sold to the defendant for the
sum of s85 .324.56. and that such
sale was fraudulent and unlawful