New-York tribune., 1922-07-25
U.S.AsksRetur
OF S2,3OO,OOO
I'm Aircraft Deal
Contention That Contract
With Standard Corpora
ton Was ''Improvidently
Made" Revealed i'm Suit
Echo of the Armistice
Japanese Bankers Who FL
nanced Concern Eliminat-
ed as Plaintiffs by Ruling

That the government Is seeking 20
recover s2300,00O declared to have
been paid Illegally 20 the Standard
Aircraft Corporation under contract
1or airplanes "improvidentally made
in 1919 is revealed in a suit fled yes
terday in the Supreme Court, 10 which,
however. the government is not a
party.
The action was brought by Mitzui 4
Co, Limited. bankers, merchants and
steamship owners. Of Japan, and the
trustees in liquidation Of the Standard
Air Craft Corporation, against the
corporation and Harry B. Mingle' who
was appointed one of the trustees in
liquidation.
The action is for an accounting.
Nitzui & Co. was eliminated as one
Of the plaintiffs BY Justice Wagner
who held that il was not party TO the
action. The Cour, also appointed viii
son NJ. Powell a. eonservator Of the
aircraft company's records pending
trial
Dir. Mingle, formerly was president
Of the Standard Air Craft Corpora
ton and the suit against him Is TO re-
cover 200 IN Liberty bonds and
$4,000.
Bankers Lent s6,827.so2
vi,,rt l. 20 acted as banker for
the corporation. Shigeji Taiima, New
York manager for the japanese con-
cern. tells Of their dealings in an affi-
davit filed in the case. He said that
between 1916 and 1919 the Mitzui con-
cern advanced 20 the aircraft corpora
tion sufficient capital to finance its
contracts with the government. These
transactions amounted 20 S6,327,sO2.
With the signing Of the armistice.
aircraft work calling for the expendi-
fure Of $50 900 was stopped. The
government settled with the aircraft
corporation for S4.S50.OO0. Mitzui g.
Co held the entire issue OF preferred
stock Of the aircraft corporation, for
which the latter out Of the money from
the government paid S2,000,00O, also
repaying loans amounting 20 S2'631,3l2.
when the aircraft corporation dis
eolved, u had. according 20 Mr.. Tajima
more than sufficient money TO pay all
claims known 20 exist.
In June. 1921, the government noti-
fed Mr. Mingle that the contract OF
June. 1919, "was entered into improvi-
IDENTIFY and said payments made there
under were excessive and illegal 70
the extent Of about S2300000." The
suggestion was made that Mitzui & Co.
return the money 10 the government,
and Mr. Mingle demanded that resti-
tuition be made.
Bonds Claimed on Debt
As 70 the $4,000 in Liberty bonds
and $4,000 for which the plaintiffs are
suing Mr.. Mingle, he says he was en-
titled 90 these as part Of a 100000
debt owed 20 Mitzui Co. by the air
craft corporation and which the
japanese concern assigned 10 him, the
assignment being denied by Mitzui &
Co. Mr.. Mingle also alleges that the
Standard Aircraft Corporation paid
Mitzui & Co. S4.649.945 In October,
1919 He added. 1T is my belief, and
charge that IL is the purpose Of
Mitzu & Co. 20 obtain control Of the
affairs Of the Standard Aircraft Cor
poration, II possible, for the purpose
Of hindering the claim Of the govern
ment that the amount alleged has been
improvidently and illegally paid