New-York tribune., 1920-12-30

indictments
The indictments charge that in 1914
the Goodwin Gallagher rm was organ
lied as merger, taking in the Cres-
cent Sand and Gravel Company and the
Phoenix company. The other concerns
were taken in later, and in June, f9f9,
it Is alleged, the Sand and Gravel
Dealers Board of Trade was orgadized.
including many retail firms.
1t is set forth that the Board OF
Trade WAS controlled entirely BY. the
Goodwin Gallagher concern, and that
as q result competition was stihed.
prices were fxed and the sand and
gravel business in the district com
pletely tied up.
In their plans for control Of the
product, it is alleged the Goodwin
Gallagher people obtained control Of
the J. T.. Heating Company and dis
r1antled its plant to eliminate compe-
| tition. The indictment alleges that
there was active competition before
the alleged conspiracy.
In referring to the operations Of the
Board Of Trade, the indictment asserts
that the body was organized. for the
purpose of agreeing On resale prices
obtained through the Goodwin GAL
lagher firm.
Untermyer Is Elated
Samuel Untermyer, counsel for the
Lockwood committee, was eated at the
action of the Federal authorities. There
are intimations in other circles that the
stats people have a good case against
the sand men and that it Is quite pos
sible that the state also will start pro
secution against them.
The debate on the legality OF scores
of associations Of manufacturers or
ganized under the so called open price
and reporting" system was one Of the
Iivelicst held before the committee
The legality of the plan, it deve loped,
was involved in the Hardwood Lumber
case now in the Supreme Court OF the
United States. Both Mr.. Untermyer and
Mr.. Matthews agreed that the Attorney
General had made q poor ana weak
case against the American Column
Company in this case.
ut is not fair test" commented
Mr.. Untermyer, "and, whatever Its out
come, 1t will have no effect on the work
of this cornmittee"
Despite Mr.. Matthews's contention
that the Eddy plan Of "combination and
cooperation" was proper, Mr.. Inter
myer declared emphatically it was IL
legal, and that he had SO advised tho
Lockwood committee. Mr. Matthews
soid he would like to see good test 81
the system in the highest court in the
land.
Among the societies OF manufactur-
ers with ramifications throughout the
nation which Mr.. Matthews named as
operating under the plan were tho
Bridge Builders and Structural Society.
fnishers of cotton fabrics. makers Of
explosives, such as the du Pont, Atlas,
Atna, King, Hercules and other gigan-
tic corporations; the Bolt, Nut ana
Rivet Society, manufacturers Of cold
rolled strip steel, manufacturers of hot
rolled strip steel, the Society. Of Bar
trrn, makers of wire fence, rolling
steel doors. the Electric Appliances So
cicty and numerous others.
Mr.. Matthews said he visited every
meeting and luncheon held by these
societies, and assured Mr.. Untermyer
future prices.
Expressing the belief that the Clay
ton oct added nothing to the Sherman
act, Mr.. Matthews said he had tried to
get fair test Of the Eddy plan, and
had even requested the Department Of
Justice to begin suit against nj } clients,
but the department did not do so. He
added that q former Department of
Justice man, Clarke McKarchen, was
counsel for several of the societies
operating under this open-price system
In asking if future prices were ever
discussed by members of these various
societies, Mr.. Unterulyer rtliculed the
theory that these big manufacturers
would travel thousands of miles across
the country TO attend luncheons for
the fun Of it or merely to discuss past
and present prices Of their competitors,
which all Of them already knew"
MIR. Matthews replied, however, that
no future prices were discussed. He
admitted that the operations Of the
Eddy plan contained a temptation TO
manufacturers to fix prices under the
guise Of Cooperation" He agreed
that there should be some sort of gov
ernmental regulation over the "co-
operation and combination" practiced
for the protection Of the public, but
would not admit that these terms were
utterly irreconcilable to competition.
In describing the system Of cards
whereby estimates, bids and other
data are exchanged by association
members, Mr. Matthews said that it
brought prices out into the open and
eliminated secret rebating IL agree
that this results in partial lmita-
ton to competition" add Matthews.
but don't believe it contraveues the
law"
Well, think 1t does,~ replied Mr..
Untermeyer, "and have so advised
the committee"
The men who have taken up the
PLAN" added MI. Matthews. "aro some
or our- most respected citizens and
have tender consciencea." And here
ne said: And they are very care
To which. Mr.. Untermycr .retored: 4:
Eyes, ! believe they are"
You are Of the opinion. are you,
that there can be cooperation. com
blnation and still compctition went
on Mr.. Untcrmycr.
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