General Elevator Co. v. United States

Plaintiff, a subcontractor, sues under the Contract Settlement Act1 for materials and supplies furnished to the prime contractor in a Government defense contract. The prime contractor was the Frontier Machine & Tool Corporation, hereinafter called Frontier, which in April 1942 agreed to furnish and deliver to defendant certain materials including a large quantity of shot. According to the terms of the contract the defendant agreed to make advance payments pursuant to a prescribed formula. Funds thus advanced were deposited in a special account which was to be used in connection with the…