New-York tribune., 1920-12-15
Grace and Schwab Alleged
to Have Refused Direct
Shipments Except on
Open Shop Contracts
Cost of Building
Increased 25 p. C..
Starrett and HOrowitz Tes.
tify Corporations Have
a Nationwide System

Men Of national prominence in the
steel and building industry yesterday
told the Lockwood committee on hous-
ing that the giant steel corporations of
the country were obstructing and
boosting the cost of building opera
tions in New York and other cities
through their efforts to establish an
open shop policy for all steel erection
in the industry
The establishment of the system in
this city and in Philadelphia, it was
testified, was merely the opening wedge
in drive of the steel people to extend
1t throughout the country.
Heads Of the George A. Fuller Com
pany and the Thompson-Starrett Com
pany, probably the two largest con-
struction firms in the United States,
declared they were, unable to obtain
structural steel direct for erection un-
der union shop conditions from the
Bethlehem Steel Company, despite per-
sonal appeals to Eugene Grace, presi-
dent of the company, and Charles NJ
Schwab, chairman of the board of gov
ernors. Che United States Steel Cor
poration is said to have taken q similar
stand.
Building Costs Boosted
Paul Starrett, president of the George
A. Fuller Company, and Louis Horo-
witz, of the Thomp -Starrett firm, de
clared they had practically been driven
out of the business of steel construc-
ton because they employed union men
IN their operations and would not en-
danger their undertakings by comply
ing with the steel companies demands
AS a result they were frequently COM
PEELED to have their structural steel
work done by members of the iron
league or the National Erect6rs' Asso-
oiation at an increased cost. they said
Both Starrett and Horowitz said that
it cost from 25 per cent to 35 per cent
more to build with open-shop than
with union inbor
The names of Schwab and Grace
were brought to the fore by Starrett
and Horowitz in connection with a con-
ference they he'd with the steel kings
in Mr.. Schwab's Office about year ago
Harry s. Black, head Of the United
States Realty Company, the holding
company Of the Fuller firm, also was
said to have attended the conference.
The two companies were trying to
persuade the Bethlehem company to
sell them steel direct, to be erected by
he construction companies under
union conditions.
Don't you imagine for minute
Mr.. Grace is reported to have replied
eve are going to let you fellows build
up an organization Of union men who
can refuse to erect our steel and bring
about union conditions in our shops
"Mr Schwab told me- added Mr.
Starrett, that | was getting in bad
with the steel manufacturers because
it was reported | was the leader in
support Of union erection of steel build
ings as against the open shop"
$250,0GO Loss on One Job
Both Starrctt and Horowitz testified
that it was more economical to builC
with union labor than under open shoI
conditions, as demanded by the stee
mill owners. In support of this Mr.
Horowitz asserted that in one instance
on building operation at 800 parl
Avenue. built by his company, the oper
shop policy had cost him from $3.50,
600 to $500,OOO more than it woue
have cost under union conditions, anc
that this had to be passed along to the
tenants.
In addition to going into the oper
shop question forced to the front by
the steel people, the committee also
heard testimony of an alleged com
binaton of the Bridge Builders ane
Structural Society and the Natona
Steel Fabricators' ssociation. These
include in their membership the Ameri
can Bridge Company, a subsidiary Of
the United States Steel Corporation
and the Bethlehem Steel Bridge Com
pany.
society, admitted that its twenty
m, mbcrs had a system of exchanging
bids and that its book .of rules ane
regulations provided for revision O
estimates to meet "outside competi
ton" The society, he said was headed
| by NiceP Pres ident Earle of the Bethle
hem Bridge Steel Company
The National Association Of Stee
(ccntnuod paae ten)