The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-10
UNTERMYER FINDS
ARCHITECTS FEES
BOOST HIGH COSTS
Designers Criticised for
Minimum 6 Per Cent. Fee
on Entire Cost of
Buildings.
BRICK TRUST RAMPANT
Its Profits Up to 155 p. c.:
Sand Man Who Operated
It's Clearing House Is
Judged in Contempt.
GOUGING IN SPRINKLERS
Secret Report Is Flashed BY
Counsel and Identified Af-
ter Witness Refuses to
Produce Original.
GOUGING IN SPRINKLERS

Enormous profits exacted through
combinations of various kinds in the
building trades were revealed yester-
day in evidence presented before the
Lockwood committee. Testimony was
given to show that manufacturers and
dealers in automatic sprinklers, used
in most big buildings for fire preven-
ton. were in agreement whereby
prices were lifted and that profits on
brick ranged from SO TO 155 per cent
in the last year and half.
The committee also learned that
leading architects Of the city and coun-
try are authorized by code of pro
fessional practice" TO levy a mininuin
charge of per cent. upon the toial
cost OF construction they handle. Burt
L. Fenner OF McKim, Mead & White
and president Of the New York Chap.
ter of the American Institute Of Archi-
tects. denied emphatically that this
was price fixing arrangement.
Samuel Untermyer. counsel for the
committee. insisted that the result O.
the practice was to exclude young
architects from getting start. as
they could not collect as big foes as
the old established firms. whereas u
they did not charge the regulation .
per cent. they we're crowned down
BY the profession.
Another witness. Emmanuel Engle.
expert accountant. was judged in con-
tempt OF the committee upon his re-
fusal TO produce the working sheets
disclosing results OF his weekly audits
~ Chs Accounts Of the Sand and Gravel
Board OF Trade. known as the clearing
committee for the so-called brick trust.
Existence OF a central clearing house
for handling bids and estimates In the
automatic sprinkler business by firms
and dealers covering the entire country
was shown by Louis Berman. secretary
OF the association. After n fashion. the
plan operates along the lines Of the
Hettrick code. although not as binding
The members OF .he association are
numbered and among the ten named are
the Globe Vogel. lockwood and Grinnel
concerns
Bids for each job were exchanged
with competitors. Each dealer was per-
nitted 20 resrbmit a bid after learning
what the other estimates were. The wit
ness said that as result Of this system
he believed open competition was pro-
noted and insisted that competition had
been more bitter and rlinous" since
the plan was devised than formerly.
Information regarding buildings where
sprinklers were TO be installed was com
piled by the Protective Survey Bureau
and furnished to members OF the asso-
citation as a basis for their bidding. Mr..
Berman said The rules OF the associa-
tion made it compulsory for members 20
file their estimates and gave the right
to all for inspection at any time OF the
bids OF members.
IF YOU think YOU can get as good
prices without being In the association.
why don't you get out7" Mr. Inter
myer asked Mr.. Berman. who is vice.
president OF the Raisler Sprinkler Com
pany. The witnesses said he thought
that was good advice.
Prices were not discussed az meetings.
Mr. Berman said. because members
had been advised not TO do So" The
sprinkler combination does about 5000.
600 a year business.
BiR Proht for Brick Trust.
The Empire Brick Company, one o, ths
big concerns In the business. made rs
brick IN 1879 for s11.e2 a thousand ard
sold 81 FOR s21.25. Marvyn Scuddor. tho
committees expert accountant. testified Z
The cost OF production for the first six
months OF this year was sli2O and tho,
price 70 the builders was s2s75. the Uit-i
ness said. He figured out for the COM
mIttec that tho average profit from this
trade was 50 per cent. In 1919 and Is
per cent this year
These figures were based upon. an
audit Of the Empire company's book
Wright p. Goss is president OF the com
pany and allowed the audit OF his ac-
counts, although on the witness stand
he refused to answer any questions con-
cernlng the so.called trust and has been
adjudged in contempt Of the committee
did you make full allowances for de-
probation and other items Of cost as
shown in the company's books?' Mr..
Jntermyer asked.
we accepted the companys complets
figures on everything" the witness said.
This company sold about .. $4,000 hrici-
last year. Mir Scudder said lie had not
tried to figure out the total net profit.
but was instructed 20 do SO and pre-
sent the figures to-day.
When Mr. Eenncr took the stand Alr.
Untermycr read tho professional prac-
ticc rule" issued bv the American Insu-
tute and adopted by local chapters the
over as the basic minimuir
charge for fees IN that profession. u
work.
Whit, no, ui.enoatoit pu COS mtrbcr-.
Air. 4t1 $50 iif