The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-11
80 CONTRACTORS
| INDICTED UNDER
| ANTITRUST LAW
Cut Stone Organization Dis
bands and Offers Help in
Barring Deals.
$4,000 BAIL FOR 20
John T. Hettrick Named as
Behind Agreement to Re-
strict Competition.
- -
HE VISED EACH CONTRACT
Counsel Explains Combination
Sought Only to Save Their
Business.
$4,000 BAIL FOR 20
HE VISED EACH CONTRACT

Two new indictments handed up
yesterday by the Extraordinary Grand
Jury investigating conditions in the
building trades named twenty-nine
members Of the Cut Stone Contractors
Association, which John T.. Hettrick
directed from his office at 165 Broad
way. They are all charged with vio-
lating the Donelly antitrust law, and
according to their attorney, Clarence
j. Shearn, and Samuel Untermyer.
counsel for the Lockwood committee,
all Of the defendants will turn States
evidence and aid the investigators.
1.-THE contractors organization has
disbanded." said Mr.. Shearn, land its
members are already helping the
prosecution"
A thirtieth defendant was also named
in one of the indictments, but his name
was not made public and 1t Is not known
whether he Is a member of the contrac-
tors association. Those Of the defend
ants who appeared In court for arraign-
ment before Justice McAvoy Of the Su-
preme Court issued a statement through
Mr.. Shearn declaring that In agreeing
among themselves to cooperate In the
submission of bids for stone construc-
ton they had been doing only what they
had been advised was legally proper and
correct. Their advisor. 1t developed, was
HettriclS.
Just before these defendants appeared
In court the identity OF the man VIA"
was indicted by the same Grand Jury
on Thursday and whose identity had
been kept secret became known when
he presented himself in court and entered
| a plea of not guilty before Justice Nc
Avoy He is Wright d. Goss, president
of the Empire Brick Supply Company Of
1903 Park avenue and member of the
Builders Supply Bureau.
The charges against him are similar
to those made by the same Grand Jury
against John A. Philbrick and Joseph
Penny of the Builders Supply Bureau;
that he refused to answer pertinent
questions relating to the bureaus bust
ness when called as a witness before the
Lockwood committee.
Fifteen of the indicted members OF the
Cut Stone Contractors Association ap-
peared in court In person. The other fif-
teen are corporations and they appeared
either through officers or through coun-
sci. Although they entered pleas of not
tanned one weeks time In which to
change these pleas or make motions.
The specific charge against these de-
PENDANTS is violation OF section 341 Of
the general business laws OF this State,
known as the Donnelly Antitrust Law.
which makes 1t a misdemeanor for two
or more persons to enter into con-
spiracy in restrain OF trade or for the
fixing OF prices.
List of Defendants.
The defendants are Edwin Shuttle
worth Company, Edwin Shutteworth.
Rudolph Sues, James Gilles & Son, Inc. !:
John Gillies. II. J. Horner & Son. Pierre
J. Horner. Barr, Thaw e. Fraser Com
pany, George @. Barr. Monahan Stone
Company, John f. Monahsn. William
Bradley & Son. z. J. Kelly. d, A. and G.
N. Williams. Inc. Herbert d. Brown.
George Brown q Co. Gilbert c. Brown.
James McLaren Sons. James McLaren.
J. J. Spur & Sons. Edwin r. Spur.
Henry Hanlein. Durie Davidson. John
Davidson. Jr.: David Miller Company.
John L. Miller, John r.. Smiths Son.
Inc. Clarence p. Smith. Nelson Bros.
Company. and James Nelson.
/. The text Of the indictment against
these individuals and corporations was
not made public because of the failure
OF one OF the defendants to appear, but
its general substance was made known
through official channels.
It alleges that prior to October /, 1919,
the defendants, whose names were made
public. were engaged In competition with
one another in the business OF finishing.
cutting and setting marble and free
stone, but that on the date mentioned
they organized to restrain competition in
price and supplies.
IL is charged that they entered into
an agreement to the effect that no one
should submit a bid or estimate for stone
work unless such bid was first approved
, by John T. Hettrlck, and that whenever
requested to do so by Hettrick they
would raise the amounts Of their bids to
amounts suggested by Hettrick.
BY this process, 1t is alleged, Hcttrick
selected the concern that was to make
the lowest bid for a big Job, and the
submission of bids by the others was
} merely a. sort OF theatrical performance
arranged for the purpose of deceiving the
| public into thinking that the concerns
} were still In competition with one an
other.
Consolation Fund Assessed.
Also. II is charged. tho defendants.
whose names were made public, agreed
: to close no contract uness Il was ap-
proved by Hettrick. who was to receive
1 per cent. on the price of all contracts
let by members OF the association.
: Three per cent. on each contract was
! to be paid into the association for con-
ISOLATION OF those members who were not
parties to the contract.
: Mr.. Untermyer appeared In court to-
: gether with Samuel A. Berger. Special
: Deputy Attorney-Generai. and other
counsel when the defendants we're ar
: raigned and said 10 Justice McAvoy:
, ''In view Of the fact that the defend
ants organization has already dis
! banded and that these people have ex-
pressed a willingness TO aid the prose-
cution ! viii only ask for $4,000 bail
In each case" This bail was furnished
by each OF the individuals who ape
peared.
When the court formslities were con-
, cluded Mr.. Shearn issued public state
ment on behalf OF his clients. II was
as follows:
"In Justice TO these indicted men I
wish to emphasize that none Of the cut
stone contractors has been involved OF
| n qnu ehona rs, forrr,