New-York tribune., 1920-12-04

Substitution of Records
to Hide Evidence of
Price-Fixing Said To
Be Hampering Inquiry
Two Indicted in
Contempt Cases
Prices of Brick, Stone,
Sand and Gravel Boost
ed by Towing Monopoly

vital records of the Builders S..
ply Bureau and the Association O.
Dealers in Masons Building Mat
rlals had been tampered with AK,
extensive substitutions made, III
Lockwood committee on hous;7.s
yesterday ordered the documents
and the circumstances surrounding
their alleged Justification be placed
at once before the extraordinary
grand jury for action.
This development followed close
on the indictment by the jury of
John A. Philbrick and Joseph Penny.
two wealthy members of the Build
ers Supply Bureau, for repeatedly
refusing to answer questions on the
witness stand pertaining to the bu-
reau's affairs. They had been cited
for contempt on numerous occa-
sions. Philbrick formerly was
chairman of the bureau and Penny
was secretary.
The men were released by Jus
tlce McAvoy III $1,000 bail each
and were given until next Friday to
make pleas and motions. The OF.
fense is misdemeanor and carries
a penalty Of years imprisonment.
Towing Monopoly Revealed
Sfor ~ iipr >
at yesterdays session Of the commit.
tee in connection with the brick IT.
dustry, the Contractors Protective A.
sociation and an alleged towing
monopoly" on the Hudson River.
1t was alleged that the Cornell
Towing Company had complete
monopoly on Hudson River towing and
had raised its rates more than 500
per cent within the last few years.
1t was testified that it costs about
$4,000 to have from twenty-five to
thirty barges brought to New York
from Havcrstraw. These excessive
towing charges, it was said, affect also
other articles, such as ice and sand.
and are "a great burden on all these
industries"
Several brick manufacturers heard.
while asserting that the brickmakers
were not guilty Of collusion in price
fixing, admitted that III entire output
of the manufacturers supplying the
New York market was handled hv thrlt
agents. 1t WAS testified that the Great
er New York Brick Company had boes
formed TO get uniform selling price.
and that the uniform prices had result
cd from Informal consultation among
manufacturers.
From the minutes Of the Contractors
Protective Association ll waS learned
that committee Of the organization
had been appointed TO TX prices on the
hiring Of motor trucks ard Tor dirt and
rock excavation. II also shown that
rates for labor and equipment TO he
charged builders By contractors also
were fxd. Analyzing the labor rate.
Samuel tntermyer. counsel for tno
Lockwood committee, showed that the
association members made pinHt ~
60 per cent on The wages of rock.neo
and 50 day on every laborer
Search for Witnesses
The search for witnesses in connection
with the inquiry disclosed ha process
servers have been cut several dBg. look.
ing for John A Mccarthy. intimate
Ir.end Of tummary Leader Charles t.
Murphy, with whom he was formerly Hs.
socatcd IN business.
Mccarthy Is Il member o. ile Build
ers' Supply Bureau. and was snown as
NO. ." in the bureaus card system,
according TO the testimony of wit
nesses.
Another man whom the committee Is
trying 70 reach is John T. Kane, who
was No. l. IN the bureau, ald Arthur
d. Hammond. the public accountant.
who periodically audited thc books 81
the bureau and Is memberst TO-
Daniel J. Murphy. an assistant TO
II almond, Yesterday produced eight
hies comprising tr, "ofh sitrts upon
which Hammond made n.s reports TO
the bureau. lie had obtained them. he
said. from Harmond's VIE at her
home in Montclair. \. J. He said h.
wired To Hammond ~ the Grand Hotel
at Cincinnati. who're NJ ~ said 10 be.
but had received no reply.
Grand Jury Asked TO Act
After battling TOR weeks 10 obtai-
possession of the books and papers O.
the Builders Supply Bureau and the
ASSOCIATION OF Dealers, lu an effort il
get at the methods - the a'loyea con,
binations, the committee was told BY
experts yesterday that large p8rt.oni
Of the minutes Of these two o~ganlza.
tons had been written at one time ani
substituted bat recently.
Thorough y aroused by the tests
mony. Mr.. Untermyer said:
We are sick and tired Of his. 1t il
most disgraceful. We have been Ell.
deavoring to investigate combinations
We have met with destroyed cards. dc
stroyed papers, files missing, all sorts
of irregularities clogging our inveStt
CATION so that we cannot keep on witt
the main purpose of it.
II suggest to the chairman that thi,
whole subject of destruction of the
papers OF the bureau and the subjeo
OF THESE minutes and everything cons
nected with that subject be sent to tn
extraordinary grand jury and let the.a
go on with the investig cation. We ca.
nor continue. We have not The time
MaMrtin Conboy, counsel for thl
bureau and association. protested
f,,t.