New-York tribune., 1920-11-07

sets tk-eats, and want them to know
| disburscd every cent.
"Wallstein and Berger wanted me TO
say that / gave the money 70 Brlndell.
| couldn't say that. because il was not
true. SO they had mo indicted
Backer. among other properties, owns
the Chatham Hotel. at Vanderbilt Ave
rue and Forty eighth Street and is one
OF the three biggest builders in New
York City. He is a millionaire many
times.
On the back Of the indictment appear
the names of the witnesses whose testi-
mony before the grand jury resulted
IN the present action against him.
These names Sere Ephraim Levy.
Charles c. Lockwood, chairman Of the
Investigating committees: Samuel Bruck-
heimer, stenographer to the committee;
Thomas NJ. James. Reuben Castor.
Elenor f. Burns. Bacters secretary;
Morris Mendelson, his bookkeeper;
Maurice c. Kastenh2um. Harry NJ. Will
liams, Frank ]. Price and Mark Rafal-
sky. Backer said he knows only Rafal-
sky of the last five names mentioned.
Untermyer's Reply to Craig
The indictment Of Backer is regarded
as evidence Of the determination of the
committee to obtain the whole truth
OF the corrupt practices existing in the
building trades industry, both among
the labor leaders and contractors
Mr.. Cntermyer's letter to Comptrol-
Ter Craig was made public soon after
its delivery about p. IN. yesterday at
the Comptroller's house, at 100 River
side Drive. II was in the nature Of a
reply to the Comptroller's statement of
the day before in which he declared he
would have all contracts for the last
eighteen months carefully scrutinized
and if necessary cancelled where col
lusive bidding appeared evident. 1t is
charged that many contracts for school,
houses amounting to millions Of dol
lars were based on collusive bids.
The letter reads:
u note with interest and relief your
announcement in this mornings papers
that you intend closely to scrutinize
ali pending contracts for city construc-
ton made within the past eighteen
months and to send to the Joint Legis-
lativc Committee on Housing q list of
such Of them as come within our juris-
diction for investigation.
Permit me to suggest that YOU in
ciude also those contracts that have
been completed. but as to which the
city mas not yet made payment i'll full.
Upward of two weeks ago I wrote
the Mayor on this subject, and then
urged more particularly the immediate
cancellation OF contracts that had been
made OF we're then under way for the
construction Of school houses, on the
,round tnat there was sufficient justit-
cation for that course as to many OF
ready had in hand hut had no reply
then only heiated formal perfunctory
acknowl edgment which reached me
eleven days after my letter TO him.
Urges Action Oe Taken
NO action has yet been taken or
suggested in the direction indicated
y ne and understand that the work
is still proceeding upon contracts that
are based OH colluaive bids, some Of
"hich we're exposed at The hearings.
"'n my judgment it Is high time
hat steps we're taken to prevent the
urtner mulcting of the city, and If,
promptly list Of The contracts
v-ould be pleased, il you so desire, to
:onfer With you upon this important
subject
yesterday again warned Connie
s soner Hirshtield at the hearing room
II She committee that If the Mayor per
sists in delaying action shall feel
that my duty as counsel TO the COM
u.ittee will require re 20 call hlm 70
the witness stand to explain his Tea-
sons. This wholesale robbery of the
city through matched bids ard trade
combinations must end if the city is
70 escape bankruptcy. When the con-
.ractors have been made to understand
" d few o. these object lessons. and
ct until then. that they are likely to
come 20 grief at almost any stage Of
-hci. y-ork j. they attempt TO defraud
the ci-v by colusive bidding, we shall
There should DE permanent non
partisan vigilance committee that keeps
itself entirely removed from politics,
With staff OF accountants and experts,
o check the city officials on the vast
business that IS being transacted BY
ii city doubt whether for every
dollar We spend We get 80 ccnts in real
'slue OF city contracts.
Wonders About nettricsx Letter
'e~e OF the peculiar features which
'end about The solitary bid fox the
limestone work .on til. courthouse is
fouIpi in the fact that, although The
insulting letter OF John I. Hettricll to
.he Mayor. in which Hcttrick u1der-
.ook to pledge to the Mayor the polit-
zeal votes and support of labor unions
i'ir tually as a bribe if the Mayor would
approve the contract, was received By
he Mayor almost two months ago, it
vas not made public and no mention
or intimation was given Of it's leccipt
until after Hettrick's office had been
vaide0 under search warrant issued
Oh the complaint OF the Attorney Gen
-1al at the request OF the committee
The fact that the letter is undated is
also significant, as is the still further
circumst tance that 40 step was made
20 cancel the courthouse contracts until
after our investigation was well under
Way and the conspiracy to swindle the
city was publicly exposed
"If there are any reasons for still
further delay in acting Oh the other
outstanding contracts for city CON
struction, such as the schools, am
anxious to know what they are. Every
contract based on bids or estimates
That violate The laws as to competitive
bidding and that are not the result of
unrestricted competition is a fraud
upoH the Cit, and could and should be
cancelled and its legality contested in
the courts. That This is true Of many
such contracts is beyond question. 1t
administration assumed Office and for
L