United States v. Frank M. Chichester, Trustee in Bankruptcy of the Aircraftsmen Company, Bankrupt

Before us is an appeal by the United States from an order of the District Court affirming an order of the Referee in Bankruptcy disallowing the amended claim of the United States.

The jurisdiction of the United States District Court rests upon Title 28 U.S.C. § 1334 , and § 2 of the Bankruptcy Act, Title 11 U.S.C. § 11 . The jurisdiction of this Court has been properly invoked under Title 28 U.S.C. §§ 1291 and 1294, and § 24 of the Bankruptcy Act, Title 11 U.S.C. § 47 .

The basic question presented by this appeal is whether the United States properly terminated for default a contract between the Department of the Army of the United States and The Aircraftsmen Company for the manufacture and delivery of fire bombs.

The following facts are not in dispute and may be summarized as follows:

On June 28, 1954, The Aircraftsmen Company (hereinafter sometimes referred to as “the contractor” and “the bankrupt”) entered into a contract with the Department of the Army for the manufacture and delivery of 73,944 fire ■bombs at a fixed unit price and in accordance with a specific delivery schedule •commencing in December, 1954.

The contract per unit price was increased by modification on…