Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-06
FRAUD CHARGED
BY j. g.; SUES
FOR 100000
Government TakesCase
Against Dayton Air
plane Firm to Court.
Federal Officers Paid
Money to Company IL
legally, Says Action.

Cincinnati, O., Oct. 5.-(By The AS
sociated Press 1.-THE United States
government Thursday afternoon filed
suit in the United States district court
in Dayton. Ohio, against the Dayton
Airplane company, formerly known as
the Dayton Wright Airplane company,
seeking to recover 81, ,4OS, ,267.41 at six
per cent interest from June IL, 1919,
alleged to have been fraudulently paid
to the company by government Off
GERS.
The government in the suit alleges
that certain provisions in the contracts
entered into with the Dayton Airplane
company by duly authorized officers
were wrongful unlawful, fraudulent
void. The government action states
that because of the national emergen-
cy at the time war was declared, the
government was not able, with the
facilities at it's disposal. TO furnish a
sufficient quantity of aeronautical
equipment necessary for Its purposes.
Contracts Involved
The governments claim reiterates
seven contracts and supplem ents,
which the government agreed to pro-
vide the defendants with $2,5O0,00O
to carry out the contract.
The bill continues that during the
progress of the work under these con-
tracts, the government paid to the
Dayton Airplane company the total
sum of S31 ,438, 1871 as payment un
der the terms and conditions of such
~optracts apd c1rnnfpnapfS
The complaint says that the govern
ment was not obliged to make such
payment The bill continued that of
ficers of the government, disregarding
their duty, fraudulently paid the Day
ton Wright Airplane coEpany SS49,-
S20.17, which payment was pretended
to have been made under the terms
Of contract as q bonus for the saving
in the cost of construction.
Amusement" Tax on u. S.
For the alleged operation of an
amusement park, the government
claims that S30,6S6.22 was unlawfully
paid the defendant under the pretend
ed claim of welfare expense. The
amusement park was known as the
Triangle park, Dayton. The COM
plant further alleges that ST.. 1921
was pal0 the UeIenuaHt luE IuOifOu pic-
ture expense, for which there was no
provision in the contracts.
Railroad transportation claims were
set at S137,71S.S4 by the the govern
ment bill, which alleged that the de-
fendant fraudulently received this
amount to cover transportation of
their employees.
Claims for 23,665.50 for coal which
the complaint alleges was used for
purposes other than those set forth In
the contract are rendered.
Payment of 7,944.34 was unlaw-
fully negotiated, it is charged. under
the pretense that such payments were
by the contracts. The com
plant said that this amount represent
ed the discounts offered the defendant
in the purchase of materials, equip
ment supplies, ETC., but that the de-
fendant negligently failed to take ad
vantage Of the offer.
Special depreciation claims were set
at $63S,S1722. The government al
legged no such depreciation existed
Claim also is made that property val
ued at $66S, ,144075 was sold b the
airplane company for $65, ,324.S and
that the defendant is still indebted to
the government to the extent of $6O2,
S1619