The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-21
Untermyer Shows ElabO-
rate ColOred Card System
Used by Contractors.
MASTER MIND IN NET
John L. Hettrick, Attorney
for Groups, Admits Huge
Personal Profits.
MAIL ROBBED, HE SAYS
Attorney for Joint Legislative
Committee Makes Unex-
pected Revelations.

The inquiry which the JOINT Legis-
lative Committee on Housing started
yesterday into the alleged building
materials trust brought revelations
which caused Samuel Untermyer,
counsel for the committee, TO declare
that, though the evidence given on
the first day was startling, 1t was only
beginning of what is to follow.
An attempt was made to show that
master plumbers, stonecutters and
steam heating and ventilating con-
tractors in this city have an unlaw-
full scheme to throttle competition.
Mr. Untermyer said he would develop
evidence to show that these con-
tractors had associations and operated
under a code of practice" by which
bids were put through a central clear
ing house.
The hearing was enlivened by fra
quent clashes between Mr. Untermyer
and the witnesses and by a great dea
of repartee. some Of it good natured
and some bitter. Mr.. Untermyer made
1t plain before the inquiry had gone
far that he intended to bring to light
abuses and illegal combinations of or
ganized labor as well as employers Of
labor and dealers in materials.
HettrfcL the Master Mind.
John T. Hettrick OF f65 Broadway,
attorney for group of plumbers known
as the Association of Master Plumbers
of Greater New York. a group OF cut
stone contractors and another group of
| steam heating and ventilatlng contrac-
tors. took the stand at the afternoon
! session. He was questioned about
codes of practice OF these three or
ganizations through which. he admitted,
he has realized from ! TO 2 per cent. on
the millions of dollars of business done
annually. He admitted that he was the
author OF the code for the plumbers and
that last year the thirty-two plumbing
concerns who retained him paid him
l per cent. on the $4,000, 900 worth OF
| business they did The fifteen cut stone
! contractors. he said. paid him per
cent
Mr. Untermyer called the code of
/ practice" a scheme" and Hettrick re-
torted that il was not They compro-
missed on the word plan" Mr.. Inter
myer exhibited a stock OF colored index
cards. The witness recognized them
and exclaimed:
MY mail has been robbed at my
downtown office. / hope nobody turned
anything over to you that has been
robbed from the United States mail"
IL don't know how they got here"
said Mr.. Untermyer. but l think YOU
will agree with me that they are inter-
esting and very significant"
They are interesting" said Mr.. Het-
trick. adding that he was rather proud
OF having evolved the card system The
witness. who was visibly surprised at
seeing the cards. asked IL they were
blank.
Not one" smiled Mr.. Untermyer.
What is the item marked fnsuranceT 2
Isn't that the way they pay their money!
These are membership cards. aren't
they?"
Fees Called "Insurnnce."
Hettricls said that the fund from which
he took his fees was made up Of 4 per
cent OF the gross business done by all
the members and was referred to as
! insurance"
That's n new term for fees-lnsur-
ance.' said Mr.. Untermyer What is
It insurance against
"Oh, thousand business evils" replied
the witness. Il saved several companies
from bankruptcy during the war
Mr.. Hettrick resented any references
20 the three groups OF contractors as
associations" He preferred that Mr..
Untermyer call them clients"
Mr.. Untermyer said that he would
show that the groups are associations.
He asked Mr. Hettrick IL several mem-
bers had not resigned during the last
few weeks. when things began to get
in the air" The witness replied that
there had been several designations
lately. but insisted that 10 was because
Of differences among themselves.
The system employed by Mr. fIettrick
and his clients was inquired into. espe-
cially the methods and the reason FOR thu
vari-colored cards and as 70 why he
numbered and tagged his clients instead
Of using their names
did you number them because YOU
knew it was an unlawful scheme 10
throttle competition and protect yourself
against dctcction?" asked Mr.. INTER-
mycr
~ resent the impuiation." said the
witness
Meaning of CoIored Cards.
Explain 20 u.s." said Mr. Untermyer.
tho reason Tor the different coored
cards are pink ad green the favorite
colors OF thy plumbers and black and blue
the favorlE colors Of the stonecutters2"
Mr.. Untermyer brought out from the
witness the admission that when SIX
plumbers. presumably competitors. knew
a lob was la prospect they would mail
TO his office a green card specifying tho
amount Of the bid.
Then YOU would mail the person who
would get the contract pink card in
tcrrupted Mr.. Untermyer.
II wouldn't say that" said Mr. Het-
trick. They all got pink cards."
.-LA.-..-a .l.--... H.. b