The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-25
Big BLIND POOL
IN BUILDING TRUST
Continued from First Page.

Building Trades Council. of which Rob-
ert =. Brindell Is president, for his adj
ministration 1t Is understood that the
offer was to carry through the next city
campaign IL the Mayor sought renom-
ination.
1t is not stated whether the Mayor
brought the facts to the attention of the
Lockwood committee. 1t is known that
he made short work of rejecting the con-
tracts which were before him bearing
the Endorsement of the Board of r,sti-
mate. Estimates are that under the
bids, said to have been worked out I'M
der the Hettrick code of procedure. a
profit of at least 100000 was counted
on.
Such an offer as this is said to have
been is clear violation of the public
officers act. inasmuch as II was an at
tempt to influence the action of an Off
clal where the finances of the city were
at stake by promise of political sup
port. The name of the man making the
proposal is known to the committee and
he will be summoned as a witness at the
hearing Thursday.
Insurance" money paid by contrac-
tors doing business under the HettricS
code of procedure went into a pool used
terror by which building operation and
prices were controlled. counsel for the
committee was informed yesterday.
The money was used among other
things for expenses" it developed, and
under that heading was included, ac-
cording to the Investigators. the cost of
forcing and ending strikes. The strike
is the weapon employed to bring con-
tractors and builders to terms and the
price OF the strike was regulated by the
size of the job at stake. Several men
prominent in labor ranks have been in
volved In the extortion scheme by the
new evidence turned up and will be
called TO explain.
Development Of this evidence is one
of the reasons which compelled the Lock-
wood committee to go ahead with its in
qury Thursday instead of waiting until
week from Thursday. as was the In
tention when the committee adjourned
last week. The evidence Is piling up 50
fast and is getting so hot the counsel de-
cided they could not delay action another
week.
John IT, Hettrick, the lawyer who
worked out the pink and green card
scheme for ending abuses" in the
plumbing and other trades, told the
committee last week about the lnsui
his combination. That insurance was
from three to four per cent. of the total
amount of n contract. and was tackled
on to the amount of the bid. Hettrick
said he received one-quarter and he
and other witnesses could not or would
not tell what became of the rest. uett-
rick promised the committee he would
produce his books, then refused to do
so. and his office was raided.
The committee started out TO learn
who got the three per cent, and the In
formation II has obtained even in the
brief search so far made promises a new
sensation when brought out through the
regular channels on the witness stand.
Hettrick said he beiic~es. the business
on which the insurance was paid
amounted to between S3.000,00O Aand
81. 900. 900. The per cent. fee on that
would be approximately S150.00O of
which sum. according 10 his own ex-
PLANTATION, Hettrick would receive some
thing like $4,000 to $4,000. Samuel
Untermyer chief counsel for the COM
mlttee, said the total business covered
was nearer $4,000, 900 and the insur-
ance collected nearer 100000.
Running down that fund. the inveyti-
gators have hit upon the mysterious
expense account which will reveal who
got the money for making good the ter
ror system. 1t win reveal to whom It
was necessary to pay large sums sud-
denly to call a strike on big building
project.
Much Of the money Is said TO have
been used TO concilia.e men who had
the power to call the strikes. fndes
pendent contractors who refused TO sub.
NIT TO the System" were the victims
on whom the power was brought TO
bear. The whole superstructure OF ex-
tortlonate prices rested upon that power
Counsel for Mr. He.trick may try e
restrain the co nmittee from making use
OF papers taken from his office in the
raid last week. The mass of documents
are under guard and the counsel has
refused to make known any information
obtained therefrom.
Attention VIII be conferred for some
time on the plumbing industry as rep
In the Hettrick code. stone
and heating contractors who used the
code may come next. As soon as they
can find time the counsel will go after
the contractors believed 70 have been
In conspiracy TO boost prices on pub
&c school building. stone. brick, plumb
Ing and heating contractors were in the
system and paid insurance Tor protec-
ton against strikes on school buildings.
according to the Information the conn
mittee has In It's possession.
Wholesale cancellation OF cantracts
on school buildings and other public
buildings viii result II II Is shown thar
the Insurance fee was added 10 tho TO-
lnls OF the contracts.