Business: More Cash or No Subs

General Dynamics protests costly Navy design changes

Price rights are hardly a novelty between the military and the companies that make the weapons. But a dispute pitting the Navy against the Electric Boat Division of General Dynamics Corp. reached an unusually high pitch last week. After months of haggling, the company told the Navy that it will halt work in April on a $1.4 billion contract to build 18 nuclear attack submarines unless Washington ponies up an additional $544 million to pay the company for cost overruns. A shutdown would throw 14,000 employees out of work at the company's shipyards in Groton,...

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