An Unexpected Fall From Grace

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This is far from the first time the company has been forced to defend itself publicly. General Dynamics had previously been accused of corruption and of overcharging millions of dollars on Government deals. It was only last August that the Navy lifted a three-month ban on awarding defense contracts to two General Dynamics divisions, imposed after allegations that the company made improper charges.

At NASA, the No. 2 man, William Graham, who had been working at the agency for only nine days, became acting chief. He will share responsibilities with Philip Culbertson, a 20-year agency veteran named last week to the new post of general manager. Observers say Beggs has done a good job since he took over NASA in 1981. An engineer by training, given to quoting Shakespeare as well as arcane feasibility studies, he is credited with getting the space-shuttle program flying after years of delays. Said one congressional aide: "He was considered a pro." Beggs also enjoyed strong staff loyalty. Insisted one of his associates: "He was a loner, but, by God, he's an honest guy." Beggs will have a chance to affirm that faith in court.