Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-05
Rinehart & Dennis Co., Inc,
of Charlottesville, Made
Defendant.
LARGEST OF SIX SIMILAR
SUITS BROUGHT BY U. S.
Brings Total Claimed by Uncle
Sam From War Contractors
to More Than S5O,OOO,OOO.

Alleging fraud, gross waste Of ma
ter!ais and funds and abuse of conf
dence and trust reposed hy the gov
crnment at - time of national emcrg-
ency. the United States OF Americ;,
yesterday filed suit in tho United
States District Court here against
Einehart ~ Dennis Company, Inc,
claiming s7.o00.OO0 damages. This is
the largest OF six similar actions
brought by the government as n re-
suit of alleged losses In the construc-
ton of certain national war canton
mcnts.
The bill alleges that the defendants.
contractors who built tho greater
part OF the work at Camp Lee, near
Petersburg, Va, not only failed to
comply with tho spirit and tenor OF
the contract. but also took advantage
OF the governments inability ito ex-
crcise the usual care and caution in
supervising it's contracts for canton
ment work. and were responsible for
the excessive cost OF the Camp Lee
cantonment to the government"
The bill was prepared under the
supervision of Attorney-General Har-
ry NJ DauGherty and fled here by
United states District Attorney Paul
w. kear. Among other things. 1t re-
cites that the defendants made va
secure the contract for the construc-
tion OF Camp Lee. 1t alleges that the
company did not mako tho contract
in good faith: that they did not have
the experience In such work as they
claimed to have, and that they caused
the letting of additional contracts TO
other parties at heavy expense to tho
government, causing much unneces-
sary work to DO done and permitting
unskillcd labor in the construction OF
the cantonnent the same scale OF
wages that skilled labor was to be
paid under the contract
The bill seeks To recover sT,000.o0o.
with interest from November l. 1917.
when the defendant ceased opera
tions. and exhibits a Photographic
cory of the contract.
The Rinchart & Dennis Company,
Inc. is a Charlottesville, Va, con-
ccrn.
Because OF the existing conditions
at the time the cantonment was built,
the bill sets forth, the government
was obliged to depend. TO an extra
ordinary degree. upon the loyalty OF
its citizens in rendering tho service
assigned to and undertaken by them
that the government was largely
compelled To rely upon the honesty
and good faith and patriotism OF
the performance OF emergency work
and that included among them so
intrustcd was the Rinehart 6 Dennis
Company. Inc"
The contract was entered into on
June II. 1917. with the understand
ing that there was urgent need OF
completing the work in tho shortest
time possible. the bill recites. and. as
an inducing fact to secure the con-
tract, the defendant assured the
plaintin that II had had experience
in such work and that It's organize
ton was suitable for the performances
required. In addition to the build
lngs originally planned for an infan-
try division. the defendant. the bill
relates, agreed to undertake 10 con-
struct one aero squadron building,
one for one balloon company. two
. brigade headquarters. two regimen
tai heavy artillery and two regiments
OF infantry.
what Declaration Sets Forth.
According to the declaration. ths
contractors agreed to make no de-
parture from the standard rate OF
wages paid In the locality OF Peters
burg without the consent and ap-
proval OF tho contracting officer. IT
also provided that the plaintiff pay,
as rental for tools. engines. cars, der
ricks and automobiles. II necessary.
sums specified in the contract and
no more. and that. H. after tho ap-
praisal OF several Items on the sched-
tContinucd on PAGE . Col sJ)