New-York tribune., 1920-12-01
Wealthy Members of Latll-
ing Association Face
Fine and Imprisonment
Give ST, 200 Bail Each
Contractors Silent
On Bureaus Acts
Penny Held in Contempt
Ii Times by Committee;
New Combine Evidence

The indictment of sixteen en-
ployees in the building industry by
the additional grand jury yesterday
on charges growing out of the Lock-
wood committees investigation Of
the housing situation brought to q
climax the livelicst day in the his
tory of the committees inquiry.
The indicted men are members Of
the Employing Metallic Furring and
Lathing Association, doing an ag-
gregate business of several million
dollars a year. They are accused of
wilfully destroying evidence Of al
legged price-hxing, declared to have
been material to the committees in
vestigation. They pleaded not guilty
before Judge Mulqueen in General
Sessions, and were released under
$1,000 bail each.
New Writ Bars Books
Among the other features Of the
days developments was the persistent
battle waged by counsel for the
Builders Supply Bureau end the AS
sociation Of Dealers in Mssons' Build
ing Materials to keep the books of
these two organizations out of the
hands Of the committee during its ses-
sion yesterday.
After a running fight lasting all
morning and afternoon, Martin Con-
boy, counsel for the two organiza-
tions, finally produced an injunction
handed down by Justice Hotchkss, OF
the Supreme Court, compelling the
committees counsel to turn the books
and papers over to their owners.
1t was the fifth effort made by the
Builders Supply Bureau to keep its
books out of the inquiry. Argument
on the injunction will take place be-
fore Justice Hotchkiss tomorrow.
The committees counsel had little
auccess with the three officials and
members of the two organizations put
on the witness stand yesterday. They
steadfastly refused to answer any
questions bearing on the operations of
the two bodies. AS a result Joseph
Penny, big dealer in building ma
terial and chairman of the bureau, was
adJudged IN contempt thirteen times
and John A. Philbrick, another mem
Der of the bureau, six times.
When the two witnesses were warned
that they feced Jail sentence they
asserted that they would rather 20 TO
jail for contempt than disclose any
facts in connection with the two or
ganizations
Alleged Combine Revealed
Some headway, however, was made in
the examination of Sidney I. Treat,
secretary of the Assoclation of Dealers
In Masons' Building Materials. In d
booklet containing the assoc;ation's s
constitution and bylaws, dated June,
1919, it was revealed that dealers in
and manufacturers of building mate
rlals had combined and were operat-
ting under cast-iron agreement des-
: iPnated by the Lockwood committee's 's
counsel as an "A and B system"
Under this arrangement the dealers
were in Glass A and the manufacturers
were in Class B. The regulations pro-
vided that dealers of the association
must purchase their materials from
member manufacturers, and member
manufacturers must sell only to mem
Der dealers.
1t was testified, however, that these
regulations had been changed and an
other constitution was offered in eyi-
dence, dated June, 1920
The trial OF George S. Backer, the
millionaire builder indicted for al
legged perjury in connection with his
testimony before the committee, wa
begun before Jud1e Rosasky yester
day. The states case was presented
by Special Assistant District Attor-
neys Emory r. Hpckner and Stanley
Richter. Backer was defended by Ed
mund L. Mooney. 1t is expected the
New Grand Jury Meets
The extraordinary grand jury al
;horized by Governor Smith 10 receir.
evidence OF a criminal nature gro,yir.
out of the inquiry held It's first meet
ing III the Jaw library Of the Dis
trict Attorneys Office yesterday. Ahou
a dozen witnesses were examined. wiz
Deputy Attorney General Samuel A
Berger in charge of tn pres atlol
OF evidence.
In compliance with the reoues. g
Samuel Ontormyer, chle' counsel 70
the committee. the additional gran,
jury that has received the evidence =.
20 the impane!4ng q the extraord:nar
grand jury, viii De contirucl tor
other month because OF tls eres
amount Of evidence A9. has davelope
from the inquiry.
Martin W. Iittleton. coun~c. 80
Robert p. BrindeN. head Of the Bul.d
j ing Trades Council. and Peter J. Stad.
miller. under Indictment for ext rtior
failed 10 appear before Judge Nul
queen 70 make motions or pleas on tn
charges. lie had until Yesterday T
make such motions. Nr. Untermyo
probably viii move that the trial 0
these TWO men he begun within til
next two weeks.
The adjud,srsents in contempt foI
lowed in quick order soon after Penn1
the first witness yesterday. took tkj
stand. This, however. was preceded bj
the filing OF statement by Conboy
penny's attorney, protesting againa
the committees taking physical posss,
sion of the bureaus and association
hooks and pun -