New-York tribune., 1920-12-11
Henry Hanlein, Who Had
Courthouse Contract.
One of Accused, Who
Give $4,000 Bail Each
COss Surrenders
In Contempt Case
Marble Ring Revealed as
OthersDisband; Move to
Block Inquiry Charged

Block Inquiry Charged
The cumulative effect Of the Lock
wood committees investigation Of
the building industry appeared IN
full force yesterday, when thirty I'm
dictments were handed. down; one
man surrendered on another charge
growing out of the inquiry; two big
combines were reported smashed ana
startling revelations Of others made
at a session of the committee In City
Hall.
Twenty-nine Of the indictments
were against that many members Of
the Cut Stone Contractors Associa-
tion who had subscribed to lawyer
John T. Hettrick's "Code Of Prac-
tice" scheme of collusive bidding.
They were charged with violation OF
the Donnelly antitrust law. One of
the men is Henry Hanlein, whose
So, ,372, 900 limestone contract for the
proposed new courthouse would have
mulcted the city Of close to $1,000,-
600, it has been said, had it not been
Cancelled as q result Of the COM
mittee's exposures.
The person named in the other In
dictment or the offense charged was
not made public.
Brick King Surrenders
In connection with an indictmers
handed down Thursday, Wright D.
Goss, reputed "brick king" and presi-
dent OF the Empire Brick and Supply
Company, surrendered to answer
charges handed down by the extraor-
dinary grand jury. He was accused
Of refusing to answer questions put
to him on the witness stand by Samuel
Untermyer, chief counsel for the CON-
mittee. Through his counsel, George
Medalie and Martin Conboy, he pleaded
not guilty and was released in $1,000
bail. The offense carries with it
penalty Of a years imprisonment.
The twenty-nine cut stone contract
ors were arraigned before Justice Nc
Avoy and bail placed at $4,000 each
The bonds were furnished Immediately
and the men were released.
Among those indicted with Hanlein
we're: Edwin Shuttleworth COMPANY,
Edwin Shuttleworth, Rudolph Sues.
James Gillies & Sons, Inc, John Gillies.
II. J. Horner g. Sons, Perry J. Horner,
B. Barr. Monahan Stone Company, John
f. Monahan, William Bradley G. Son, y.
]. Kelly, 3. A. g. G. n. Williams, Inc,
Herbert Q. Brown, George Brown
Co. Gilbert G. Brown, James McLarer
& Son, James McLaren, j. j. Spur u
Son. Edwin R. Spur, Durie & David
son, John Davidson jr., David Miller
Company, John Z. Miller, John
Smith Sons, Inc, Clarence F. Smltn,
Nelson Bros. Company and James Mel
son.
Two Organizations Dishand
Clarence J. Shearn, their attorney
and counsel for the association, issued
a statement IN connection with tce
proceedings in which he intinlated that
the members of the association might
have been misled by legal advice.
which they thought was sound and
He announced that the as
sociation would adjourn and that its
members would in the future work
with the Lockwood committee.
In this connection Mr.. Untermyer
reported the receipt of communica.
tion from the Masons Supply Bureau
Of Brooklyn, one Of the organizations
under fire Of the committee for al
legged colusive bidding operations, In
which that organization said that at
recent meeting OF eleven of it's four
teen members it was formally decidec
to disband
These developments are said to be
but the forerlnners of the early dig
ruption of all the com biuations in the
builders, contractors and Dealers or
CARNATIONS in the building industry,
and so the speedy restoration of open
The details of the charges against
dealers in cut stone, as set forth in the
Indictment, deal with the workings Of
the Hettrick system, already made pub
lie by testimony before the Lockwood
committed 1t is charged that on Oc-
tober l, 1919, the men entered into
that no enc should submit
bids or estimates for stone work unless
approved by John T. Hettrick, law
yer, of 165 Broadway.
1t is charged that whenever request
ed by Hettrick they raised the amounts
of their bids to the amounts fixed by
the lawyer and it was arranged that
the other bidders should be apparent
bidders only.
The men. it is claimed. closed no
contract unless approved by Hettrick.
and one-fourth of their annual gross
contract price was paid into the asso-
,iation, Of which one-foarth, il is said.
went to Hettrick for services and tbs
three-fourths was utilized TO
recoup the losses suffered by other
members who were not awarded con-
tracts under the Hettrick scheme.
The revelations at yesterdays hear
ing concerned ring in the marble in
iustry that, according to the testimony.
oaralyzed competition, fixed extc-tion-
ate rates FOR labor in the ;nduss~>r ard
through reciprocal agreements with the
Building Trades Council of Robert r.
Brindell. brought ruin to these who
wera not tied up with it.
Try to Block Inquiry
Another sensational DEVELOPMENT or
the hearing included charges by Mr..
= untermver that great financial end
industrial powers Of the country.