New-York tribune., 1920-11-20
Contractor Alleges Com
bines Compel All Bid
ders to Use the Same
Prices in Estimates
Big Slump Since
investigation Began
Values Are Slashed From
Ten to Thirty Per Cent;
Policeman Brindell's Aid

The Lockwood committee entered
upon the second phase of its investi-
CATION of the housing situation yes
tarday with startling disclosures OF
alleged nationwide combines in con-
troll of building materials.
1t developed also that the inquiry
already has accomplished the dis
ruption of several of the alleged
contractors combines that operated
under John T. Hettrick's Code of
Practice" scheme, resulting in the
sudden slashing of prices on build
ing materials of from 10 to 80 per
cent. Free competition in many
items of the trade, it was testified.
has been restored for the first time
IN many years.
George Atwell, head Of the Demoli-
tion Company, who has testified to pay
ing over large sums of money to
Robert P. Brindell, the reputed labor
king, for protection against strikes,
said that the price of brick had dropped
from $50 thousand to SIS since the
legislative inquiry began.
Contract Cut $4,000
Hugh White, vice-president Of the
George A. Fuller Construction Com
pany, related how an estimate of s7Oo.-
oU0 Tor work on an annex to the Plaza
Hotel made two months ago had been
reduced $4,000 within the last two
weeks. He expected additional say
lngs. While the greatest saving has
come from materials, he said that his
superintendents report a greater pro-
ductivity on the part of labor.
Other facts developed at the hearing
were:
Stephen Birmingham, a policeman at
tsched to the Clinton Street station.
rad been granted six months leave
OF absence TO work in the Compensa-
tion Bureau of Brindeil's Building
Trades Council at an alleged salary OF
$4,000 year. Birmingham is said to
be a nephew of Charles j. Kelly, head
OF the Building Trades Employers AS
sociation. The circums stance was point
ed to as another indication of the close
relation that existed between Brindcll
and the builders organization.
After TIE courthouse site had been
dug up and had been excavated broom
clean, the Street Cleaning Department
reflled it with rubbish and ashes, ac-
cording to Atwell. The city paid Rog-
ers & Haggerty, a contracting firm,
about 100000 to clean the place I'D
again, he said.
City-owned piers available for the
landing of building supplies were prac-
tically controlled by four firms, who
got the piers year after year, it was
charged. They had full say over all
building material that came into the
city by this method and made their own
prices for services, according to testi-
mony.
Alleged Cement Combine
Mr.. White produced evidence tending
TO prove that the dealers and manufac~
turers in various lines of the building
material industry had got together. The
brick and cement people, he said, were
in one organization, the latter with
net work, ne asserted, that threaded
the whole country. The lime, sand and
gravel people were in another combine,
he said, the limestone people in another
and the marble and granite people in
another. Prices in all these lines, he
sa.4, eAcept cement, had taken sud
den slump, showing that the combines
were falling to pieces under the attack
OF the lockwood inquiry.
He detailed how two months ago the
Fuller cOmuanV received acf rnafa.
from sub-contractors for work on the
Plaza Hotel extension. The estimates
then aggregated 100000. Two weeks
ago, he aid, the contractors submitted
new estimates and the contracts were
let for $4,000 less. The estimate for
the lime stone alone on this operation
amounted to s52,450. 1t has been re-
duced to $3S,l60 within the last two
weeks.
In connection with work on the Ma
tional City Company Building, now be-
ing erected on the site of the Man
ia.tan Hotel, Mr.. White said that the
best bid he could get for marble early
in October was about $248,247. The
same firm that entered this bid chopped
1T down on October %, when the in.
.Gulry was in full swing, to $192, 900.
White was sure that the limestone
bids were entered in accordance with
tsiO i1CIIilSh SOQC Ol pIHCttces DUL
was not sure of the granite estimates.
Because of the alleged cement ring, hs
said, his firm, which uses annually
about 100000 barrels Of the prodact,
is unable to obtain any Of the COM
modify from any place but New York
Dealers in Newark or Philadelphia
absolutely refuse to deliver the product
to this city at any price. The country.
he asserted, had been apportioned
among dealers and none dared 60 out
OF his district. The prices obtaining
here were invariably uniform.
Estimates All Alike
In support of his statement that most
bids on building material were based
on collusicn, he cited the estimates re-
csived by the Arm on the operation of
the Combustion Engineering Building
in Broad Street. Eleven estimates or
brick for the work were identical in
price. and every proposed contract wa
worded similarly, he SAID. The sam Z