Evening journal., 1920-11-20
BUILDER SHOWS
MATERIALS PACT
Combine in Sand, Brick,
Lime and Cement Scared,
Says White
DECLARES PRICES
ALREADY TOPPLING'

NEW YORK, Nov. 20.--A network
Of prlce-hx.ng combinations. nation
wide and iron bound. existed In four
trades handing building material es-
senlials and controlled, absolutely. all
contracts in construction work. Hugh
White. vice-prtsident OF the George
A. Fuller Company. told tile Lock
wood committee yesterday The in
vesthgation enered its second phase.
turning from he labor explofeys and
grafBrs TO the larger questions of
the trusts which have controlled the
market
Backed by some kind OF alliance
with labor. the dealers were able 10
maintain THAR mOnOpO4sitc o0mbi-
nations in violation OF Federal and
State laws. The inquiry into this
operation covered only two hours
time, yet the witness, one OF the best
known buildrs In the country. fur
'nished proof in that time that brick
lime, sand and cement were held
tight In the grip Of the combinations.
Records We're offered in evid nee
TO show that the Plaza Hotel annex.
the Chelsea Bank Building. a Broad
street building, eleven bids for those
four materials were almost Identical
In every instance
Then it was shown that since the
Stale inquiry began there has been
sudden drop In he prizes OF brick
and the other materials. Since the
break up Of the Hettrtck code Of
procedure. Mr. White said. the price
Of the limestone bid Tor The Plaza
structure has come down from $1,000
TO $4,000, and the total drop in prices
on that job alone in three weeks is
$4,000 Brick has dropped from S30
10 $40 in two w eks for no apparent
reason, and Is going down fast. II
was reported yesterday as low as
Si5. the bottom price in recent years.
The dealers in the several com
binatiOns stopped every channel
which might lead TO competition.
Mr.. White said the entire country
was divldd into districts and the
dealers in one could not sell DO
builders In another. The bids were
offered evidently in cOllusion;
builder even with the resources OF
the Fuller Company could not go
after its own supplies. That meant
instant warfare all along the liIN
The docks were controlled for the
'Mntrresis." the iruckmen would
handle only such materials as were
certified. and 10 was out Of the
question 10 get wOrkmen on build
ings where the trusts did not not dom
mate.
Millions WIRE extorted through the
fictitious prices thus maintained-h0w
many millions in New York alone has
not as yet been estimatd. II Is fig
/ nunI IhnN tho nrinne NnFan
materials In The last year is as high
as 200 per cent. above cost.
There are some forty trades and
every one is in some kind OF com
lbnatlon, according TO the counsel for
the conmitlfe. Thesa aI'4 10 be
taken mp one after another.
The committee virtually completed
It's investigation OF Robert p. Brin.
dells activities yesterday before turn
ing TO the trust inquiry. Brindell will
now have his day in court More
evidence may come out before the
committee but Mr.. untermyer and
khis associates regard the labor ex-
lplOiter's case as virtually closed.
Proceedings Of the day also brought
f0rth evidence that a policeman,
stephen Birmlnsham, was granted six
months ieave from tfx police depart
/ dell in the "compelsation bureau" OF
| the Building Trades Council.
George Atwell, a demolition con-
tractor, also testified 10 nationwide
control OF the cement BUSINESS. He
told ~ an instance In which he was
not permitted to buy cement because
ne was not member OF the asso-
''Siro' Mr.. White testified that not only
lhayN prices come down. but therc0m-
pany's unit labor costs in the asl
two or three weeks show more
lprdductvity for the men than be-
fore the investigahnn started. and
I have had lhe same statement made
bo me IN reference 10 the suh-con-
Tractors by their representatives
Mr.. Atwell swOre 10 paving, NOR
than $1,000 tribute 10 Brindell, anC
/ declared ne had never gone 10 tho
, "throne" without being sent for. III
knew OF flve expensive and luxuriou.
automobiles owned by Brindcll In IN,
? city and understood he had Other
b machines In the country.