The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-04
BUILDING PRICE MAY
BRING PROSECUTIONS
Swami Foreshadows Criminal
Case Against Members Of
"Close Corporation.'
SMALL BUYERS DENIED
One Contractor Forced to Set
Up His Own Factory to
Get Bricks.

District Attorney Swami Is to be asked
to present Immediately to the Grand
Jury, with a view to criminal prosecu-
lions, testimony adduced yesterday at
the Joint hearing Of the Aldermanic
Welfare Committee and the Mayor
Committee on Rent Profteering. to the
effect that the Association OF Dealers In
Masons' Building Materials, with OFFICES
at Is Broadway, is an illegal combina-
ton in restraint OF trade.
1t Is charged that the association Is
worse than a close corporation" that
II maintains prices of bricks and other
articles used in the construction Of
buildings at an artlficially high level !;
that two blackballs are SUFFICIENT to
prevent an applicant from Joining. and
that no member Of the association will
sell to him IL he Is an outsider. As a
result OF the alleged illegal combination
| II Is asserted that the cost OF building
here is kept at a higher figure than eco
! nomic conditions warrant and that this
increase is directly reflected In added
rentals.
The admissions upon which criminal
prosecution of members of the associa-
ton Is to be asked were drawn by Sam
uel Cntermyer. counsel for the Joint
| committees. from Wright D. Goss, presi-
dent of the Empire Brick and Supply
Company and a director OF the associa-
| ton. and s. J. Treat. Its secretary. They
were served with subpRnas yesterday
| half an hour before they were about to
leave the city. They Immediately ap-
peared in the committee room in the
| Municipal Building.
"Cost List" Was Price List.
Mr.. Goss, who was the organizer of
the association and at one time Its presi-
dent. admitted, so II Is charged, that Il
had been formed for the purpose of ex-
| Guiding dealers who were not desired. FOR
fixing prices and for keeping them up.
Mr.. Treat said the association sent out at
| intervals what he termed cost list"
The committee obtained possession OF
one of these lists, however. and discov-
cred. so 1t Is asserted. that 1t was not
cost but a price list. This will fur
nish one Of the main exhibits before the
Grand Jury.
Robert II. Matthews. a salesman for
| the Eden Brick and Supply Company. at
| 12eth street and the Harlem River. said
he had been unable to gain admission to
| the association and that small dealers
| who could not get In. couldn't buy build
| ing material from the members. Some
times. he said. they were unable to take
building contracts because Of the re-
sulting uncertainty.
Because Of his inability to buy mate
rial. Matthews testified. ne had beer
obliged to finance a brickyard up river
himself He said his experience in this
venture had proved to him that. although
the association demanded SIS a thousand
for bricks, plus cost OF handling and per.
| nf rha,
distance they were shipped. he could
make Handsome profit" by selling
them in New York city at S13 a thou
sand.
He pointed out that the reduced cos
Of erecting buildings through this saving
alone would not be uncomfortable. tn,
average apartment house. he told The
committee. required 100000 bricks, Will,
twice that number were used in schoo
houses.
The price charged by the association
for cement also added much unnecessary
cost to buildings here, Mr. Matthews as
serted It was admitted by Mr.. Treat
that Matthews's efforts to obtain mem.
bership in the association had beer
futile.
Unable to Get Put Up.
Another witness, Frederick Fox. q
dealer in building materials at 80 Ninth
avenue. Newark, testified ne had beer
unable even to have his name PROPOSED
for membership.
Mr.. Goss and Mr.. Treat explained tha
the association had forty-five member,
and that most Of them were retail deal
ers in building supplies. A few manu-
facturers and commission men also hole
membership, they testified.
Fra plr II wisa ~ MI Z yUIaa a
Son is president OF the association
Cornelius A MCGUIRE Is vice-president
Ernst Braun. treasurer. and Mr.. Treat
secretary. Beside the first three OF thes
and Mr.. Goss the board of directors 4
! made up Of Francis N. Rowland Of tn
| Candee, Smith & Rowland Company
William II. Barnes Of Barnes. McNa
mara & Morr,sey. Inc: John Wilson o
the Builders Brick and Supply Compan,
OF Brooklyn. Andrew ]. Brislin. Josepl
, Philbrick OF John A. Philbrick Il Bros
Stephen V. DUFFY OF the J. p. Duffy Com
pany. Brooklyn; Henry r. Brigham
Kingston w. T. Roberts OF Emmons 4
Roberts. William X. Hammond and Al
den J. Harcourt OF the Standard Build
ing Supply Company. Inc.
Most Of the brick manufacturers alon
/. the Hudson River, so Mr.. Goss explains
| when he first took the stand and hi
= examination was begun by Mr.. Inter
myer. were members OF commission
: selling corporation known as tn
Greater New York Brick Company. TIL
; Association OF Dealers in Masons Sup
plies. he explained, was organized bac
in 1898.
Mr.. Goss said the dealers price 70
good brick was SIS thousand. TIL
addition Of carriage and charge 10
. profit brought the price as him aa ar &
In some instances. he conceded. It wa
also said by the witness that he woul
not sell bricks to any one not membe
: OF the dealers association.
Mr.. Goss thought. he said. that tn
uniformity in price had come abou
largely through the fundamentally G
Government investigation"
Sidney J. Treat told Mr.. Untermye
: he would be glad to have the committe
go through his files. After admittin
Il that the cost sheets" sent out from hi
once might be termed price lists"
0 one so desired Mr.. Treat said they wer
: distributed every three or four month";
Mr.. Matthews OF the Eden Brick an
Supply Company testified that he ha
never been able TO find out why HI
application for membership in the a,
ISOLATION had been denied. He had fol-
} merry been a member. he explained, BIT
his membership had Japsed when h
failed In business. At that time h
0 went to work on a salary and the
! began all over again for himself II
b. denied that he had owed money to an
= member OF the association or that \
a had violated any OF Its rules viii
$ holding membership.
Q Up to seven or eight years ago, whe
i he left II, Mr. Matthews said, he kne