New-York tribune., 1920-12-29
Cement Output Ruled
by Five Big Firms
That Keep Prices
Uniform, Is Charge
Terra Gotta Said
To Be in ''Trust''
Hosting Assn. to Restore
Competition; Plumb.
ers Plead Not Guilty

The Lockwood committee opened it's
hnal series of attacks against corrupt
practices in the building industry un-
der Its present lease of life yesterday
with the exposure of alleged combina-
tlons in cement and terra Gotta and
the dissolution Of the fifth organization
OF contractors in the building trades.
The cement situation in this district.
II developed at yesterdays hearing in
City Hall, was almost wholly in control
OF nineteen members of the Cement
Manufacturers Protective Association,
with an aggregate production of about
2S,OOO0O0 barrels year, compared
with 97,000,0OO barrels for the entire
country.
AS the result of an alleged system
whereby members of the association
exchanged data on contracts. work
prices, deliveries and other informa-
tl0n, Samuel Untermyer, counsel for
the committee, claimed that the price
OF cement was invariably uniform and
was increased from $3.50 d barrel at tho
mill on January 1 of this year to s4 90
on October l.
Terra Gotta Prices Fixed
All terra Gotta sold in the East, it
was testified, was entirely controlled bv
the Eastern T ..ra Gotta Association.
me nlne members of which nave CEN
'fal Office IN the St. James Building.
William ii. Powell, president of the
association, admitted members of the
organization got information on bids.
estimates and other activities by q
series of cards which he described as
an open price, system. A still firmer
grip on the terra Gotta situation was
oDtAlned by the local manufacture rs
through their afiiiation with Ma
tlonal Terra Gotta Society, it was testi-
fed.
The organization that decided to dis
band is the Hosting Association, COM
posed OF eight members who are said
to control more than 90 per cent of all
the steam and electrical hosting work
done here. j. Z. Eustis, a lawyer. of
zoo broadway, who is secretary and
treasurer Of the association, made the
announcement from the witness stand
Nr. Eustis said that his organization
would also withdraw from the Build
ing Trades Employers Association,
with which it was affiliated.
His statement followed the reading
into the records by Mr. .Untermyer Of
minutes of the ass ociatlon telling of
consideration of uniform prices" and
forbidding members to Interfere tn
any work begun by another. a meet
.ng of the members was called Mon
day and the action to dissolve was
then tallen. Mr.. Eustis said he under
stood that the step did not grant i'm
munity to his associates He added
that he was satisfied that the members
of the association would from now on
have unrestricted and open compet-
ton"
Plumbers Plead Not Guilty
Another development of the day was
the pleaiing Of the ffty-two indicted
corporations and individuals who con-
stituted the plumbing ring associated
with the John I. Hettricll Code Of
Practice" scheme of colus We bidding.
They appeared before Justice McAvoy
in the Supreme Court and pleaded not
= VI ~ ~ tiIfAi 80 " iOidNiOii VI tiiI
Donnelly antitrust laws. They were
given until January s to make other
motions or pleas, and bail of So 800 for
each firm ard s. 900 each for indi-
v'duals was continued.
Robert j. Foster, chief invest gator
for the National t.rectors Association,
who was indicted on two counts for re
fusal to testify and produce certain
documents before the Lockwood com
mittec, also appeared in court and
pleaded not guilty to the charges. He
was represented by Walter Gordon Mer-
rift and Willard Ellison and was given
until January 3 to make motions.
John 7. He-triclI, the indicted lawyer
head of the code of practice" system,
also appeared in court with his attor-
rey. Robert H. Elder, along with the
accused plumbers, and pleaded not
guilty with them.
The witnesses yesterday were the
most unwilling that haze thus far ap-
peared before the committee. In the
case of c. Raymond Hu sart. vice
president OF the Cement Manufacture
ers' Protective Association, Mr. Inter
myer was plainly veXed with the wit
nesss continual evasions and refusals
to answer questions diroctlv, and at the
Continued OH page nye,