A Little Too Up-Front

A Pentagon report nails those who prepaid McDonnell Douglas Corp.

A NIGHT IN A CHEAP HOTEL USUALLY REQUIRES payment in advance. But relations between major defense contractors and the Air Force are thought to be a cut above that. Not always, according to a report from the acting Pentagon inspector general, which recommends disciplinary measures against a cluster of Air Force generals and civilian procurement specialists. The report accuses several Pentagon officials of advancing McDonnell Douglas Corp. $500 million in 1990 to see the aerospace giant through troubles associated with the C-17 military transport plane. The report urges disciplinary action for three generals and two civilians alleged to be involved in...

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