The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-16

i-ere were many abuses eating at the
very vitals OF all enterprise In the way
Of construction I'm New York, and prob
ably TO some extent in the other cities OF
the State II found that pirates and
buccaneers incorporating ia the garb OF
labor, having secured a strange hold
upon honest labor IN the city. were prac-
Using blackmail and eXtortion on people
engaged in the building business, and
slle committee came TO the conclusion
That until that stranele hold was re-
leased and the bald, reckless perpetra-
tors OF II punished there would be no
likelihood OF anybody who had capital
embarking in building enterprise
I'VE are not even a the threshold or
our inquiry--we have barely begun. Yet
we have found the whole community
not only the building trades but the
whole community. in the grip OF monopo'
Mstic combinations. Al tho moment our
greatest handicap Is the Department OF
Justice, through It's inaDtion,
Quite incidental to oar inquiry, and
LOT intended as the main subject OF the
inquiry, we found the city, n common
with others. in the throes or these com
bipations, these pirates OF LABOR ana
pirates OF industry, AID 1t was our duty'
when we Came across that 70 bare II 10
trades connected with the building m
dustry we have only scratched the sur
face so far of three or four. And as 70
those we find that the schools were m
volved in them We found the Court
House was involved In them. but we GO
not know enough to separate the wolves
rom the sheep as yet in ali lines Oh
business
pouIa.,t Iuiure Innocent Men.
Taking up the boards resolution offer
ias, TO turn all city contracts over 70 th'
comn1ittee for investigation, MT inter
,yyer said the suggestion was iInpoSsiple'
1fe pprpose OF the inquiry is not gallery
niav but 10 try to stop waste as Ear as
ne City contracts were Involved Withou'
i,,i,,rine honest contractors. throwing
~ Of men out of work or running any
one. sa
The committee. he said has found
,,,any school contracts made np oy the
Ttatt,,ek ring. There are contracts
within contracts, and graft WITHIN graft
and the committee cannot take We%Ns -
,7nravel the whole snari Ahat - vac
duty OF the city officials Inc boere %
F,dncation does not even require con-
Factors 20 submit names OF subcontrac-
a.. he said. This makes il easy IoF
fSa s,,bcontractor to hold up the con-
tractor by matched bidding Ae CON
tinued: ..os,, +raae
combinations we are go,n6 TO drag iot'h
many OF them who nave dealt Win the
city as they have dealt with prlNale an
dividuals. in a manner torpladeh oS tno
law. and as that develops the city "hi
get the information and the eeheht oi
that inquiry. In the docks and IN o'her
public works you are deaNnS Win one
contractor. He Is probably dealing VITA
!, ser;cs of rings. His estimate and his
contract has been based, in many cases
mon the most extrav agant eXorSitant
Ind OUTRAGEOUS imposition over toisted
upon any city in the world.
Comptrol.er Craig interrupted with TINS
statement you may not be aware that
contracts OF that kind amounting 10
twelve and a half million dollars were
made hy the board without pubic let
tins"
II am not Interested in that. Mr.
,,onntroller." replied Mr.. Jntermyer.
we are investigating tho housing prob
rem and the evils in which i Is Sripped,
al these combinations of outlaw labor
and outlaw capital and the absence OF
loan market We have enough data in
hand TO know that we have not scratched
The surface. We have a long and ardu-
GUS task ahead Of US.
Meantime, IL you DO not pay these
contracts they viii fail Their sub-con-
tractors may fail. Men VIII be out OF
employment. Masses Of innocent people
win suffer, and 1t does not seem prac-
ticab.e to take drastic anG brutal steP
such as that"
Mayor Interrupts Untermycr.
would you mind my inte.rupting you
right here, Mr.. Untermyer?" asked the
Mayor.
Il would. Mr. Mayor" Mr. Unternyer
said. II don't want 20 get into a con-
troversy. never dreamed that any
body would be so reckless as TO simply
throw out all the city contracts and
bring about general disaster, We are
engaged in constructive work We pro-
pose to build, but not upon the rotten
structure we intend to tear that down
we want to bring about peace with labor
based on Justice, TO restore the open and
free channels OF competition. and We
want to secure ample funds. SO that any
PEOPLE who want 20 build en- a sound
1asis will be able TO build IN this city
unchecked by these incorporates and com
binatlons that make It Impossible 20
build at this time and unchecked By these
nrigand people. masquerading under the
cloak OF honest labor who are holding
hem by the throat
My suggestions are these
That where you have your contracts
with single contractor you first require
him to give you a list of his sub-con-
tractors and copies of his estimates on
which HIS contracts we're based. 80 that
we shall know whether he has been vic
timized by ring or party 10 a ring.
Secondly. that you retain. hold back.
an additional 10 per cent. besides the u
per cent now held under contract so that
there will be n fund~available 10 protect
The city IL when the investigation dis
closes that the city has been victimized
sufficient to make good TO some extent
me amount that Il was yictimized Of
In addition, that the contractor be To-
CURED to enter into an obligation that
future contracts made to him under the
contract are entirely without prejudice 70
ne city maintaining and asserting the
anne rights with respect TO cCiiusive bids
ana contracts as though no payment ha
leen made. In other words. that the
lily must not be deemed 10 have waived
- rights to essail the legality OF this
contract by reason OF the fact that Il Is
Toing on making these payments
WouId Not stop Construction.
oFfrr ext. -. . .....-......s-..