The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-24
ng contracts In this city were

cent building contracts In this city were
manipulated. ...... ~.
That is to say. certain contractors got
togetherk and entered into. agreements
BY. which the bids were forced up. and
the Government could not find any one
TO offer a low price for what It needed.
How far this was carried is not known,
and the committee is without definite
proof but the building and plumbing
profiteers throughout the country are
said to have reaped rich harvests through
This method
The committees letter to the Gov
ernor. which was along the lines sug-
gested on Friday in many respects. was
despatched both 10 Albany and 10 the
Hotel Biltmore. as the committee men,
pers were not quite sure where they
could reach the Executive. He is ex-
;pected to take quick action upon It, and
there was no doubt existing in official
Circles last night that he would accept
the committees suggestion. In such event
4 tits quite certain that Deputy Attorney
General Berger will be designated as
Special prosecutor to secure indictments
: OF the grafters and profiteers against
whom the committee is proceeding.
Letter Sent to Governor.
~ The letter follows:
+ "On Monday last the Attorney Gen.
-eral at the request OF the senior coun-
Gel Tor the committee. applied to you
10 enlarge the power of the Extraor-
binary Grand Jury that Is now In session
IN the city OF New York so as 10 In
Sclude within its jur1sdiction the DIVES
rgation of and nctioT upon< offences
that counsel had reaSon to bflieye
L would be developed during the ilrauiR
~ ha n -
Housing. You then stated to the Attor-
ney-General that you would take the
application under advlserneI.t and we
d are now writing In view OF develop,
!. p1ents since that application was made
4 10 urge immediate action on your part.
4 Although the committee has been only
two days in session and the presentation
rof the testimony In its possession mas
Y hardly begun. facts have already devel-
= oped indicating the urgency and~ neces-
sity of the step that was requested OF
Z YOU One Of the witnesses has confessed
I, to having sworn falsely before tI,e com
K znittee, another has been declared by the
\ committee in contempt of its authority.
Z charges of extortion have bean made
under oath and others have been brought
! TO the attention of the committee. and
what are apparently grave violations OF
the antitrust laws have developed and
many others will doubtless be established
(. by the inquiry now in progress. all of
which offences should be formally
3 brought to the attention of the proper
authorities for action.
Without intent in any way TO reflect
upon the integrity or capacity of the
prosecuting officer of the County OF New
York. who happens now to be a csndi-
date for an elective office at the pend
ing election. and while emphatically dis
claiming any such Intention, there are
!. IN our judgment reasons why 1t would
be embarrassing to him TO ask him TO
assume jurisdiction of this subject.
Apart from all this. we understand that
his office and staff and the regular
Grand Jury in session are so congested
with work that the important ma tiers
to which attention has been called could
T. not. with the best of intentions, receive
the prompt attention that they require
and would be able to secure from the
! Extraordinary Grand jury"
I Untermyer's Letter to Mayor.
In his letter to the Mayor asking can
collation. of school contracts, Mr.. INTER
myer took occasion to congratulate the
Mayor upon his action in cancelling the
contracts, for work on the new court
house.
i
! to look into the details of the central
organizations controlling the thirty-two
trades that go to make up the building
trade. to say nothing of the ipnumerable
related industries" Mr.. Unterrny err wrote,
81 have already gone far enough to sat
isfy myself that probably few of the
contracts and the bids for the court
house are the result Of competitive bid
ding such as the law contempiates. f
"The Same Is true Of the contracts for
schoolhouses and other public improve.
ments that are now In the course of ne
COLLATION. and Of those under construc.
ton. ! trust that wherever possible yoi
will secure the cancellation OF such con
tracts for these schools and other public
improvements, and that when by reason
of the occasion for great expedition that
Is not possible the city will contest the
payments and insist upon paying the
fair value of the work and materials
furnished under these contracts on the
ground that the law was violated by the
pretence of independent bidding when as
G matter of fact the action was the re-
suit of matched bids.
1T Is tragic commentary on our
present business morals that the ra-
pacity of these men will not halt even
when their city Ia concerned. 1t IL now
too late in the season to start work any
way to advantage. and II the city can
wait few months after cancelling these
contracts / believe we will see enough
of these rock-ribbed combines scamper-
ing TO cover to effect a saving OF millions
to the unfortunate trust ridden tax
payers of oui city who are already tot
terirg under an intolerahle'lo load Of fa&a.
ton.
1.-The same situation that applies u
the contracts will be found to exist ir
almost every department OF industry
with which the city deals In the. pur-
chase of supplies. This condition was
accentuated by the necessities OF war
which forced our Government into
bringing together competitors for Tho
purpose OF stimulating production and
of distributing business 90 as To secure
the most prompt and efficient results
and. presumably. In order to save
money. Experience has, think, demon
strated that IL was a mistaken policy
Its after results have been~to strengthen
these combinations. fl5!S.g
1--WE shall. I believe, be able in the
pending investigation TO uncover and
possibly disrupt some Of them connected
with the building trades. and perhaps e
punish the most rapaciotis Of them. bu'
that will be mere palliative rather
than a remedy. II would take, almost 9
lifetime OF an army Of Judges. lawyers