The New York herald., 1920-12-29

sales. &c. which differed from the Het-
trick code somewhat IN that initials
We're used Instead of numbers 10 iden-
tify the members That system also
went a step further and classified the
different kinds OF jobs according TO
profit involved into the three classes OF
! "a" "B" and &C." Glass A being job
in which 100 per cent. or more OF profit
was possible, including the overhead,
which would reduce that profit accord
ing 10 the size of the overhead.
Terra Gotta Men Have Code.
! The foregoing arrangement was known
! as the code of ethics OF the National
! Terra Gotta Society, comprising vir-
tually all OF the big terra Gotta manu-
| featuring concerns in the country. The
! terra Gotta territory, as was the case
with cement, was shown also 70 be d.
vided into three regions-East, South
and West.
The Eastern Terra Gotta Association,
headquarters Of which are in New York.
it appeared. had all OF the conveniences
OF the national associations code Of
ethics" without the inconveniences Of a
constitution or bylaws or regularly
elected officers. and has managed to
worry along for the last two years with
out any minutes of its weekly meetings.
Mr. Untermyer opened his inquiry into
the so-called cement ring by calling TO
the stand Mr.. Hulsart. the vice-presi-
dent of the Cement Manufacturers Pro-
tective Association. to whom he an
nounced as the object of the investiga-
ton that OF finding out the reason for
the uniformity OF prices for cement, as
shown by the testimony of contractors
who have appeared previously before the
committee.
Mr.. Hulsart, whose association covers
the Eastern or Lehigh region and en-
braces eighteen manufacturers in east
ern Pennsylvania, western Maryland
and in the Hudson River district, with
an aggregate annual output OF 2S,0OO,-
900 barrels. or approximately thirty
threo per cent. of the 97,000,oOO barrels
manufactured annually in the United
States Among the members are the At
las Portland Cement Company. the Alta
Portland Cement Company. the Lehigh
Portland Cement Company and the Uni
versal Portland Cement Company.
Mr.. Hulsart conceded that his associa-
ton exchanges information with the Mid
West Cement Manufacturers Credit and
Statistical Bureau, the organization for
the Western region. but would not adj
nit similar arrangement with the
Southern Cement Manufacturers Sta
tistical Bureau. Several attempts to
show that there are concerns operating
independently of the cement associations
were met with citations from National
Association records showing them men,
bers. Those concerns included the Acme
Portland Cement Company and the
Alsen Portland Cement Company. Alsen,
n. Y.
Business Details Traded.
Testimony OF Hulsart and excerpts
from the constitution and by laws Of
the Cement Manufacturers Protective
Association showed that each member
was required to send in each month n
complete list OF ali his contracts, the
prices. the stage of delivery, the amount
OF cement contracted for, the purchaser;
statistical statement Of production and
shipment. stocks on hand, and virtually
every detail of his business. That in
formation was transmitted TO all mem-
bers in the form OF a volu1ninous quar-
terly report. Provision was made also
for the exchange of information with
other associations.
Mr.. Untermyer had difficulty in get
ting at the system used He waved a
small card before the witness.
''Is this the initial step in producing
uniformity of prices?" he asked Does
il begin with q card system"
I'VE do use cards" the witness ad-
mitted.
Regarding the associations practice OF
sending agents into the field to examine
each contract job to see that the amount
OF cement ordered is needed, Mr.. INTER
myer asked:
THE point is that if there is too
much cement in the market II would af-
feet the price. would 1t not?''
'I don't know" replied Mr. Hulsart.
ut might break the prices, mightn' I
it?" Mr.. Untermyer insisted.
I'm my opinion, II would, but do not
know anything about prices" the witness
conceded.
From another witness AR Untermyer
brought the admission that only a fifteen
days supply OF cement was sold to deal
ers at the time, which would insure that
the dealer did not speculate" with a
surplus stock OF cement. That rule. Mr..
Untermyer contended was meant also
to control the price
Mr.. Untermye- showed Mr.. Hulsart a
quarterly report containing reports on
$50 separate contracts and demanded to
know why the price in each instance
was uniform at $2.65 a barrel The
NANhSoH ShAu hS nluH hlOW.
Defends Restriction in Sales.
john II. Mo-rin, president of the Atlas
Cement Company. which produces TO-
100000 or 100000 barrels of cement
year. and which is a member of the
Cement Manufacturers Protective As
sociation, defended the restriction of the
sale OF cement to tho specific job for
WHICH IL Is sold on the ground that II
was Sound business policy"
DO you mean to say you assume the
right TO say what n man shall do with
what he buys from your" asked Mr..
Untermyer.
TITS sound business policy that's the
best reason. and Il Is good enough"
Mr.. Morrin admitted that cement was
the only product of man on the face of
the earth perhaps which occupied so
unique position.
Mr.. Unterinyer undertook with small
success to learn from Mr.. Morrln the
reason for cement companies exchanging
Information regarding their business.
Mr.. Untermyer wanted to know II the
exchange OF information did not prevent
overproduction and II that In turn did