The New York herald., 1920-12-30
BIG RISE IN CEMENT
AS EXPENSES BULGE
Makers Tack on IS Cents
When Production Costs Go
Up II Cents.

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Having found yesterday why cement
prices rose so fast here and having dis
closed an organization Of electrical con-
tractors covering the United States and
Canada which approves the percentages
Of profit it's members shall charge and
which, locally. charges q differential OF
so per cent. on labor it furnishes. the
Lockwood committee will enter to-day
upon the last sessions Of its life under
its present legislative resolution.
1t will end its present Investigations
with q score or more of trade combina-
tions untouched and left for inquiry by
grand juries and without having reached
the banking and insurance investigation.
for some parts of which 1t is clothed
with power. There is no doubt that the
Lockwood or new committee will re-
turn soon with enlarged powers to con-
tinue the work the present COMMITTEES
has not had the time to accomplish. The
enlarged powers to be asked for at Al
bany will include the authority to in-
vestigate the management of banking
and insurance concerns.
Process servers of the committee
served subpoenas yesterday on Otto Nj.
Eldlitz, n general contractor, of 80 East
Forty-second street. president OF the
Building Trades Employers Association.
and Samuel u. Donnolley. secretary Of
that association. for appearance before
the committee this morning.
Forced hack Into Line.
An echo of-that body's power and that
of Brindell was heard i'm testimony be-
fore the committee yesterday when it
was shown that electrical contractors
broke away from the employers organ
ization as n protest against the increase.
which. however. they were compelled 10
meet later. All contracting groups. il
appears. have been compelled 10 nego-
tate their contracts with Brindell's
Building Trade Council through the en-
ployers' association.
Mr. Untermyer also Will undertake to-
day to throw a Gordon around the activi-
ties OF eight or nine groups of plumbing
contractors, six or seven groups of heat
ing and ventilating contractors. and dig
further into the doings OF the electrical
contractors.
Yesterdays sessions opened with the
chair occupied by Assembyman Thomas
A. McWhinncy. who was acquitted of
gambling charges the night before In
Nassau county. He presided In the alb
sence of Chairman Lockwood, who is Ill.
Continuing his inquiry into the alleged
terra Gotta ring, Mr.. Untermyer OBJ
tained the admission from John J. Car
ney, assistant secretary Of the Eastern
Terra Gotta Association. that at times
he had held up contracts sent in for dis
tribution for information of competing
bidders because OF differences from
other contracts submitted. but denied
that such acts were In any way con-
nected with the price figures.
Contractors Price IL Highest.
From Gabriel g. Brown. cement
manufacturer Of Easton. Pa, who had
been on the stand also on Tuesday, Mr..
Untermyer gained the disclosure that
the National Association of Cement
Manufacturers. embracing virtually
every big cement manufactures in the
United states. has rule whereby con-
tractors are charged at least five cents
a barrel more for cement than dealers
are charged.
According to that asked Mr.. Inter
mycr. "the smallest dealer in the small
est town can buy cement more choaply
than the biggest contractor I'm the big
gest city. II that true?"
YES that Is So" replied Mr.. Brown.
BY that arrangement, he admitted,
Booth a Finn. New York subway con-
tractors. had 10 pay more for their ce-
ment than dealers in this city Mr.. Tn
tcrmyer charged the difference in that
case had been ten cents barrel
NJ. Brown presented figures from his
Office. for which Mr. Untermyer had
asked. showing that while the mill price
of cement was increased seventy-hve
cents between January and October of
this year. the cost Of production had in
creased only seventeen cents. Mr.. Un-
termyer was not satisfied with the data
presented, and threatened to send COM
mittee to Easton to examine the books
OF the Alfa Portland Cement Company,
of which Mr.. Brown Is president Mr..
Brown said the committee would be
welcome"
Mr.. Brown conceded that the difreren-
tial charged contractors made paying
considerably moro expensive 10 cities.
On the basis OF Mr.. Browns output Of
100000 barrels a year Mr. Untermyer
computed that tho company would make
"a profit OF S4.Ti4.O00.
The advent on the witness stand OF
william j. Matthews. an attorney OF
los South La Sale street. Chicago. sue
cessor to the p.e Arthur J. Eddy
originator Of the so-called open price
competition plan." by which bidders have
access TO ono another's bids in man
ner designed 10 escape the antitrust
laws. preclpitated a heated debate be-
tween him and Mr.. Untermyor on the
legality OF the plan, which now Is under
fire in the hardwood lumber case OF
Memphis. Mr.. Matthews defended the
legality and fairness of his plan. but
admitted that in the Memphis case the
Government had not prepared strong
attack.
~ Associations Use system.