The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-12-15
'SCHWAB REFUSES
EXPLANATION
Won't Answer Charge That
His Corporation Fought
for Open Shop.
PROBERS HEAR BUILDERS
Allege Manufacturers Refused
Them Construction Steel
Because of Union Help,

New York, Dee. sd N. ST.
Charles NJ, Schwah. chairman OF the
board of directors OF the bethlehem
Steel corporation. refused TO answer
hrouuht out before the Lockwood leg
islativo housing committee that his
corporation fought for the open shop
by the methods OF not accepting or
ders from builders employing union
mon The same practice also is AL
lered against the United states Steel
corporation
These allegations were made by the
heads OF two OF the largest con.
struction companies In the United
states, Paul Starrett, president OF tho
George A, Fuller Construction com
pany, and by Louis HorwItz, president
of the Thompson Starrett company,
They said they were not able to vet
construction steel In large quantities
from the steel Mills direct, the policy
Of the mills being to sell only TO tho
Iron League lNrectors' association.
which maintained open shop condl-
tlons,
Serapped Equipment.
Starrett said his company was forced
to scrap $2S0000 worth OF equipment
because II could not got steel Horwitz
said his firm was forced to pay more
tnan $3.50 600 above his own figures on
n $4,000, 900 Job which had to be done
by the Iron league" builders, because
he could not get steel
Starrett testified Schwab had told
him when he sought TO get 10000 tons
OF steel that he was getting In bad
with steel manufacturers because l was
the leader IN the movement TO support
the union erection OF steel buildings
against the steel manufacturers policy
of AN open shop
Union Shop a Saving.
Stnrrett held that from ab 70 81 per
la In Nf NJ VIIA nj
be saved by employing efficient union
labor as against non union help
Harry s. Black, chairman Of the
United States Realty company, who was
present Mt conference between Grace,
Schwab and Starrett. said Sehwah had
declared che made ag reat fight for the
open shop and that they did not tn
tend 10 have the. fruits of their labor
taken from them"
,,,.y What d'd yog understand by th"'F"
'Tt was that tho stool companies
would not sell 10 any one who would
employ union labor" Blnck testified
Black said this conference occurred
year ago when Schwah and Grace,
who protested their order books were
full, would take under advisement'
Starrott's pleas for steel but that
nothtrr Ind been he,rh from them.
GRACE ADMITS POLICY.
Euqsne 2, Grace. president OF
WV cNiHiNHUHN oANuI sN'pt'"bS'f
took the stand this afternoon TO
reply 10 charges that his concern
was sponsoring the "open shop" by
Withholding stoel from builders en-.
loylnu union labor.
Mr. Grace told tho Joint Legislative
CO mmittec conducting the Investigation
that It wns tho policy OF the nethle-
hem steel company not TO aell any fab
ilcatcd steel unless It was 20 hc
erected under "opon shon" conditions,
Mr.. Grace asserted, however, that al
thodgh his cooperation was a member
OF the National Steel Fahrlcntora' an.
Hociaton II had acted Independently ot
the association's open shop program
Says Witness "Fenolnp,"
Declaring that the witness wnA
fencing with him, Samuel untermyer,
for tho committee inHlsted that
the corporations policy was due to
concerted action with the nsaocintion'
"The Bethlehem Steel corporation. or
itH subsidiaries, he replied, "nev
hnve entered into any agreement with
the other fabricated steel mhnufnctur-
crs not to sell steel to buldorA unlesa
II was erected under open shop oondi-
tionN"