Evening star., 1951-06-21
Army Probes Charges
OF Firm S Failure on
S3MiIIion in Contracts

A House watchdog" commit
tees complaints against reported
non-performance of more than So
million in military contracts by
the Elvair Corp. in Natchez,
Miss, led to an Army investiga-
tion and a denial by company
officials today.
Reporting the fantastic" situa-
tion of a company with little cash
on hand and few facilities, the
Armed Services subcommittee dis
closed that a member of the
firms first Board of Directors and
its sales manager became ac-
quainted when both served SEN
tences in a Federal penitentiary
in Oklahoma.
The subcommittee, headed by
Representative Hebert, Democrat,
of Louisiana, urged that the con-
tracts be Cancelled. 1t also recon-
mended the discharge of two Bir-
iningham tAla) ordnance dis
trict inspectors. 1t said they
checked a contract awarded to the
company for $2,960,000 for can
vas tent cover. The company had
only $179.68 in cash on hand when
1t got that contract. the subcom-
mittee added.
Cities Lack of Sufficient Cash.
The report found that none of
these contracts have been per-
formed except for a limited por-
ton of one of them" 1t also de-
clared that the company never
had sufficient money in cash on
hand to perform its commitments
to the Government"
Grover Cleveland of jackson,
Miss, a company director. chal-
lenged the subcommittee's con-
illusions.
1.-The Elvair Corp. does have pro-
duction facilities to produce all
contracts granted thern,p he de-
clared, "and is currently produc-
ing cushioned seat backs for half
track ordnance vehicles at the
rate of 1000 a week. This is to
be increased to 10000 in the next
week. Six thousand tow targets
are being produced for the Air
Force and are being delivered on
contract schedule"
Mr.. Cleveland explained that all
the firms contracts with the Gov
ernment were obtained on COM
petitive bids. His company's total
bids, he said, were at least $50. 900
lower than the next lowest ones.
Gen. Craig Investigating.
The Army announced that Maj.
Gen. Louis A. Craig, the In
spector general, is investigating.
1t refused further comment.
The subcommittee report stated
the acquaintance between one
member of the first board of di-
,rectors of the company, B. A. Tot
ten, and the firms sales manager.
B. T. Jayne, lowered" when
both were in a Federal prison in
Oklahoma.
The company, according to the
report. was organized last Septem-
ber IS at Jackson, Miss. at a $780,
600 capitalization. The concern
sent out pictures of its plant,
but did not occupy the place at
the time the photograph was
taken and did not have a lease
until two days before getting a
tow-target contract, the report
said.
Didn't Know of Jail Records.
Investigation by Birmingham
ordnance inspectors. the report
declared, was "the most haphaz-
ard, naive and negligent. almost
to the point of culpability, that
could be imagined"
The report identified the two
inspectors as John S. Mitchell and |
Frank Legare. In Birmingham
Legare said he had no way OF
knowing that Totten and Jayne
had prison records"
The report also brought out
that the plant picture and o. +
page brochure was prepared for
Elvair by the George S. May Co.
of Chicago. The report added
that George S. May recently ap-
peared before the Kefauver SEN
ate Crime Investigating Commit
tee as a witness and also before
the Chicago courts in a contempt
proceeding where he was fined
for failing to produce records be-
fore a grand jury investigating