Norwich bulletin., 1920-11-30
INQUIRY INTO $ss. .0o0, 600 WORTH
 OF NEW YORK CITY CONTRACTS

New York, Nov 2s.-While a new ex- traordinary grand jury was being sworn in today to consider any crimes unearth- ed by the legislative committee investi- gating the alleged < building trust" the board of estimate. sitting as a commit tee, began it's inquiry into $62, ,000, ,000 worth of city contracts.
 The jury in the trial of George Backer, millionaire builder, charged with per- jury in his testimony before the legis- lative committee, was also completed to- day in the general sessions court and the decks cleared for the hearing of ev- idence tomorrow While the jurors were permitted to. 20 home tonight, they were told they should be prepared after to- morrow to be locked up during the night They were also asked not to read any newspaper articles dealing with any phase of the case.
 The new extraordinary grand jury, the second to hear evidence developed in the. building investigation. was. selected from panel of fifty prominent mer- chants. brokers bankers and other busi- ness men.
 Each prospective juror was question: ed by Samuel Unternyer, counsel for the legislative committee, and Deputy At torney General Berger, as to whether he believed in combinations to restrain trade and as to his. views on organized | labor.
 Judge McAvoy charged the jury that 1 its function would be to consider charg- es of extortion, price fixing and con spiracy in restraint of trade, and the other specifications which featured Gov ernor Smiths order instituting the pres | ent Investigation Suspicion, he said must have no weight in absence of proof l but he enjoined -mindedness anG fearless action in seeing that violators 1 of the law enjoyed no immunity from 1 proper punishment.
 The opening of the investigation of the 1 board of estimate was delayed today by /, a wrangle during which Henry Curran
 president of the borough of Manhattan l withdraw after explaining that in hi 1 opinion the, boards inquiry might in I terfere with the legislative commit tees Investigation. Comptroller Charle Craig also was absent
 l Frederick Tench. of the firm of Ter, land Tench, steel contractors and erector building the new city piers on Statel
 Island, was the first wit!Sess.. He testi lied that the Hudson Trust Company ha
 demanded S50,000 over and above the le gal interest charges for loan of $750,
 900 required by the firm to finance 1t
 contract work
 Do you know that was five per cen, | on $l,00O,000 asked Assistlnt Corpor
 ation Counsel Carswell. cHow would tn
 bank carry itr',
 T suppose as a bonus.' said the wit ness, T was told that the Hudson Trus Company would have to pay that sur for the additional accommodation.
 Mir. Tench said hes didn't accept tn
 Hudson Banks offer and said that h tfound other banks 4did not care to f
 ance any contractor on city work s
 he made arrangements with Buffal
 bank to finance the project
 . Before leaving the stand the witnes was asked whether it was true that h
 concern had made two payments to Rol
 ert Brindell, president of the buildin trades council, now under indictment fC extortion.
 Yes" replied Tench, explaining tn: there should be one payment of $5, ,OC and one of $2,500
 we thought it would be very r1uc ,, more expensive if we went into a labt fight just starting' said Tench "ths If we paid this money and prevented
 strike"
 c. B. J. Snyder, superintendent school buildings of the board of ed, cation. who was the next witness Q, plained the process of letting school col , tracts.
 The board went into executive sessic ! with the legislative committee, to discu 1 the form of contract and agreement best protect the city's interests in dea
 ing with contractors. No statement "; | issued at the close of the tnoferen, except that by MT. Untermyer, who sa We have made progress"