On July 29th 1955, in an attempt to clear itself from default and save the contract, Harvey-Whipple shipped 10,000 intrenching tools to the Chicago Quartermaster Depot.

 The firm was hopelessly insolvent, lacking even sufficient capital to pay the shipping costs for the consignment. Employees had made personal contributions of approximately $2000 to pay these costs, with the expectation of being reimbursed when the government released funds for the delivery.

 But time had run out for Harvey-Whipple. The Defense Lending Division of the Treasury Department, which controlled Harvey-Whipple's financing package, had decided that the situation had become unsalvable. Consequently, DLD applied all of the funds from the July 29th delivery to Harvey-Whipple's outstanding government loans. Harvey-Whipple's contract performance was effectively ended.

 

 Total tools delivered over the life of the contract: 520,260.

 

 Source: Meriden Industries Company v. The United States

                Decided Nov. 9, 1967

                Findings of Fact

Interesting history,  to bad for those employees.