New-York tribune., 1920-09-26
Building Trust
Probe to Begin
Here at Once
Senator Lockwood Asserts
He Has Evidence That
Pool Exists; Zone Price
System i'm. u. S. Fixed
Urges Congress to Act
Prosecution of Mem g.ou1ld
Guilsy Sought; Housing
Relief Also Is Predicted
From a stag Correspondent

ALBANY, Sept. 25.-The investiga-
tion by the Lockwood committee into
the alleged illegal combination of
manufacturers and dealers In building
materials will begin this weel: in New
York City.
Members of the committee charge
that this combination exists to main
tain exorbitant pr ces for building ma
terials, and that this is largely re-
sponsible for the !ack of housing facil-
tiles in New Yo. City and in other
congested cente,..
"The fact is" aid Senator Charles
bination exists. And l believe that we
will be able to obtain sufficient evi-
dence against the heads of this il
legal combination to compel US to SUBJ
nit the matter to the state and Fed
eral prosecutors throughout the coun-
try. Our committee, however, cannot
60 outside the state, and to be success
ful a similar investigation should he
conducted by the Congress of the
United States, which would have power
to sit IN any part Of the country, and to
compel the attendance of witnesses
and to force the production of books
and documents.
Inflated Prices Charged
at has been charged before our
committee by men of national repute
that the building material dealers and
manufacturers maintain eXorbitant
eri fictitious prices for brick, stone,
lumber and other building materials.
We have had Investigations made
"p'"d show that this is true. Many
at Tie a"'cayards along the Hudson
H"or are manufacturing 70 per cent
less h'ck than before the war and
their profits are as great, if not
practically little increase in wages of
brickyard employees, but the price of
brick has scared from $5 thousand
to $32 in New York and the price in
Chicago has been but half that in New
York, yet l understand the cost of
production in the West is greater than
here in the East.
This reduction IN output and in
crease In profits among building ma
terial men are not confined to the MAX
ers Of brick alone. 1t is pretty general.
1t does not matter. whether you buy
the materials from on agent or from
the manufacturer direct. The price is
the same. 1t does not matter wrhethe r
you buy million dollars worth Of ma
terial or five dollars worth. The
amount proportionatcly is the same. 1t
does not matter whether you ask
prices from one manufacturer or one
hundred. All give the same p ;ce.
, Country Divided Into Zones
"The fact is that the manufacturers
and dealers in building materials have
divided the country into zones and in
these zones there is a fixed and ar
bitrary price, and you cannot get any
other. The dealers Or agents are rec
ognized and if you buv from manu-
facturer direct you must pay the deal
er his commission. You don't pay it to
the dealer. The manufacturer pays it
to him. But you pay"
Senator Lockwood said that with the
breaking of this combination, which
could be accomplished by criminal
prosecution and by publicity, prices
of building materials would tumble tc
new dwellings would be one of the
most profitable undertakings and woule
result in lowering rentals.
"If we can end this price fixing
among manufacturers and dealers il
! building materials" said Senator Lock
wood, lit would mean, in view of the
fact that new dwellings will be exemp
from local taxation for period of ter
years and also exempt from the more
, drastic features Of the rent laws, tha
, there will be rush on the part O.
people with money to build. This will
not only solve the housing shortag,
but naturally will bring rentals bacl
to normal level"
In the closing houxs of the extraordi
nary session of the Legislature tn,
Lockwood Committee was charged will
the duty of the investigation. The sun
of $4,000 was appropriated for thi
purpose. Within the next few days tn,
committee expects to announce the re
tanning of jurist of national repute t,
conduct the investigation, and With,
twcnty-four hours thereafter the frs
session of the committee will be helt
in the Aldermanic Chamber IN the New
York City Hall