UNITED STATES v. MUSCHANY

Nos. 12561, 12562.

139 F.2d 661 (1943)

UNITED STATES v. MUSCHANY et al. SAME v. ANDREWS et al.

Circuit Court of Appeals, Eighth Circuit.

Rehearing Denied January 14, 1944.


Attorney(s) appearing for the Case

Harry C. Blanton, U. S. Atty., of Sikeston, Mo., and Norman MacDonald, Atty., Department of Justice, of Washington, D. C. (Norman M. Littell, Asst. Atty. Gen., and Russell Vandivort and Drake Watson, Asst. U. S. Attys., both of St. Louis, Mo., on the brief), for appellant.

William R. Gentry, of St. Louis, Mo., for appellees James Karl Muschany and Vera Muschany.

Samuel M. Watson, of St. Louis, Mo. (Webster Karrenbrock, of St. Charles, Mo., and Redick O'Bryan, of St. Louis, Mo., on the brief), for appellees William M. Andrews and Bertha L. Andrews.

Before WOODROUGH, THOMAS, and JOHNSEN, Circuit Judges.


JOHNSEN, Circuit Judge.

The critical question is whether the contracting system used by the War Department in purchasing land for a munitionsplant site at Weldon Springs, St. Charles County, Missouri, which allowed the landowners to fix their selling price and to add five per cent thereto as compensation to the Government's optioning agent, was a "cost-plus-a-percentage-of-cost system of contracting", within the prohibition of section 1 of the National Defense Act...

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