New-York tribune., 1920-11-16
Board of Estimate Tries
in Vain to Saddle Bur-
den of Investigation ON
Lockwood Committee
untermyer Maps
Plan of Inquiry
Government Scored for
Failure to Aid i'm Hunt: :
Backer Fights Charges

The Board Of Estimate and Aps
portionment, at the end of confer
ence with the Lockwood committee
on housing yesterday, decided to be
gin an independent investigation OF
allaged fraud in connection with
S62,00O,O0O worth Of outstanding
city contracts.
A resolution to this effect, intro
duced by the Mayor, was adopted
after an unsuccessful attempt by the
board to saddle the committee with
the responsibility Of the undertake
ing. The proposal, as presented in
an earlier resolution of the board,
was fatty rejected by Samuel Un-
termyer, The committees counsel, or
the ground that the committee had
neither the power to investigate city
departments nor desired to be side-
tracked from its primary purpose to
look into the housing situation.
Mr.. Untermyer, however, offered
a plan Of procedure for all city con-
tracts, pending the inquiry, so that
the city may be amply protected,
while at the same time no injustice
will be done to honest contractors or
workers be thrown out of jobs.
Backer Seeks Dismissal
Another development of the day was
the argumeno before Judge Mulqueen
on the motion made by counsel for
George S. Backer, the millionaire
builder, charged with perjury, that the
case be dismissed on the ground that
the Lockwo ID comm ttee's powers ex-
pired when the Legislature adjourned.
Judge Mulqueen said an important
legal question was involved and re.
served decision on the argument.
Mr.. Untermyer's suggestions to the
Board of Estimate were.
1. That the board have general con.
tractors turn over to it a list of all
sub-contractors and estimates and other
information, so that it may be in 4
position to ascertain whether there has
been anything irregular or dishonest.
,. That the board withhold from the
contractor, pending the completion Of
job, 10 per cent more than the usual
10 per cent, pending the completion OF
the boards Investigation. The addi-
tlonal 10 per cent would he ample pro-
lection to the city IN he event that
fraud or collision was discovered in
connection wIlh contracts.
.. nat the contractors agree that
all future payments ma !e to them be
made without prejudicc to the l,.S cjtv:
that is. the city does not waive It's
legal right to the money provided. r
subsequent events prove the contract
is uot honest.
Mr.. Untcrmyer declared that honest
coAtractors would not ctject to these
provisions and that those declining to
agree 10 tn arrangeme't should not
De PAID single dollar lntil their con-
tracts had benn thoroughly scrutanized.
Inquiry To Be Public
The Board OF Estimates inquiry II
vas decided. viii be open to The nub-
&c and VIII be conducted under tre
s"pervislon OF Corpora ion Counsel
JOIN +. O'Bricr. Nr O'Brien 20 vas
instructed to get together win conn-
sci Tor the Lockwood committee in the
matter OF p.acin~ in more workable
form the suggestions outlined br Mr.
OntermEer, so that they might be used
IS basis upon which the cit could
proceed on the outstanding contracts.
ne conference ran true 10 form in
the matter of heated verbal bsttles
and lively tits that nave marked nrc.
'. Is sessl - Of the lockwood COM
mlttee. In the course Of one Of these
encounters Mr.. Untermver informed
the Mayor he was rot THROUGH with
him yet 10 which the Mayor replied
ne was ready 10 go On tae stand any
lime Mr. Unterln.er vas ready"
suggestion from 4 member Of the
board that the Lockwood committee
exchange evidence win the CITY body
brongnt forth the remark b Inter
nTer: Your exchange Of ev vdence. [
tear, VIII be somewhat Ike .hat Of the
DEPARTMENT Of Justice Thoy sne-
gested EXCHANGING evidence ana ,i-v
dence."
Mr. untermyer asserted mat the
committee mad merely scratched he
surface IN the course of the INQUIRY.
that only a few Of the smaller con1,
bines had been uncovered and tina, they
were Handicapped II getting 20 the big
ger fellows by the inaaition Of the
Department of Justice. H vas srre
tnat - per cent of the sub-contracts
fer school work were based on col
lusion and that the contracts were $50
per cen. too n
Try to Saddle Inquiry
There was a marked tendency on the
part Of members OF the Board Of Es-
innate - pass he buck TIE Nrvor
insisted he could not be he'd respon-
siole for the letting OF the school
ouse contracts or the rescinded con-
tracts for the proposed new court
house. Comptroller Craig said there
were other live persons on the court
house committee besides himself. whlo
Aiming S. Prall. president of ths
Board Of Education, didn't think his
wn bui ding department WAS TT
body to investigate the schoo'house
contracts. and insisted on some indie
pendent investigating body. When ne
suggested Commissioner of Accounts
Nirshheld Mr.. untermycr remarked;
"Oh, don't start row here"