New-York tribune., 1920-12-30
Jury
| Indicts Fifteen
| AS Sand Ring
Eleven individuals and
! Four Firms Are Accused
| of Anti Trust Violations
+; 6n Lockwood Evidence
Price Fixing Is Alleged
Committee Probes National
! Reporting System Used
! in Many Building Trades

! Reporting System Used
! in Many Building Trades
The Federal authorities for Tho nrs'
iame Joined tho attacking forces OF the
lockwood committee against alleged IL.
lkgal combinations In the building In.
nstry yesterday. when the Federal
4rand Jury returned indictments
against fifteen firms and individuals
Did to have been in control Of the
And and gravel situation in this dis.
1fict.
s The accused include four firms and
s4even individuals who had been IN
7plved by numerous witnesses appear
itg before the committee. The indict-
;fcnts charge violations of the Sherman
sti-trust law by conspiracy in re,
! rsint of trade, the elimination OF
! noetition and conspiracy to monopo-
II me trade in a certain product.
4 Firms and Men Indicted
( a.a firms named are the Goodwin
gallagher Sand and Gravel Corpora
y j, Manhattan Sand Company, Inc. ::
If and and Gravel Company, Inc,
u the Colonial Sand and Stone Com
II ny. Inc. The individuals named are :;
sSohD J. Gallagher, vice president
y ths Goodwin Gallagher Sand and
3 fagei Corporation, and vice president
X the Manhattan Sand Company, Inc
! sietes c Gallagher, treasurer Of the
Eodwin- Gallagher Sand and Gravel
corporation, and treasurer Of the
4 fno~ Sand and Gravel Company. Inc
Frank Z. Gallagher, secretary Of the
Goodwin Gallagher Sand and Gravel
corporation and assistant treasurer of
be Manhattan Sand Company, Inc.
4 Joseph Gallagher, secretary and
sfeasurer of the Manhattan Sand Com
shny, Inc.
! William J. Mahoney. president Of the
4enos Sand and Gravel Company, Inc
! Richard A. Scanlon, secretary Of the
lenox Sand and Gravel Company, Inc.
Il Frank kowsey, manager of the Man
inttan Sand Company, Inc.
Lawrence Rukeyser, president Of the
0olorial Sand and Stone Company, Inc
Eugene p, Clark, executive secretary
y the Sand and Gravel Dealers Board
II Trade.
! Thomas and Martin Lanigan, CO.
9Artners trading as Lanigan Brothers.
At the same time the Lockwood com
iittee went to the root of the entiro
bmbination evil by putting on the
fand the alleged sponsor for the So
'1cl
tfms" said to have been spread in
tsed by hundreds of trades and in
dustries.
William j, Matthews. Chicago at
eprney, who said be specialized in "try-
ihg to keep within the anti-trus. laws"
the operations of nearly a score of
ttanu1scturing groups, vigorously de-
ffnded the system, contending there
GOULD be no cooperation and combina-
9on and at the same time competition
] Clearing House Conducted
I This system, whereby manufacturers
Ftnd association members exchanged
through clearing house information
% bids and other Business matters, ap-
4 fears to he based upon the economic
Ehenes proposed by the late Arthur
terome Eddy. who had been counsel for
Yghteen combines of manufacturers
Organized under his direction.
/ The hearing yesterday also uncov-
dred another combination among cleo
&ical contractors. It was testified that
Code Of Practice" and "Canon Of
Tthics" in the industry was used by
dealers and contractors associated with
peal, state and national organizations,
3nd that an effort to obtain uniform
in Il
,arice lists sent out to members regu-
,arly.
! The indictments against the sand
hen were brought about through the
fforts Of Joseph Kaufman, Special
assistant United States Attorney, VIII o
Eas recently appointed by Attorney
General Palmer to cooperate with the
lockwood committee In the fight
tgainst corrupt practices In the build
fng industry. Mr.. Kaufman was as
fisted by Assistant United States Dis
'trict Attorney Henry A. Cutler.
The evidence has been considered bv
the Federal Grand Jury for tho last
Pix weeks. 1t was testified before the
Lockwood committee that the owners
krd dealers in the sand dug st the Gov
Bay sand pits, on Long Island, invari.
fbly charged the same prices for the
kAoueSs, "uACil Was CO0SlQeIGQ an 0S-
tcntial by contractors Of this and
many neighboring states.
/ More Indictments Promised
! Mr. Kaufman intimated that this
vas merely the opening wedge OF the
governments action against alleged II.
legal ring. and that moro indictments
we're to follow shortly.
The indictments charge that tho de.
pendants knowingly and wilfully en-.
faged in conspiracy to restrain trade
pnd commerce; that they entered into
n agreement to eliminate competition
pnd enhance the price Of sand and
gravel; that they conspirel TO monop.
phze the trade in Cow Bay sand by
obtaining control Of firms and enforcinr .
ale prices, and conspired In other and
g!ysrse ways for call these purposes"
Inc Goodwin Gallagher company is In
enect accused as the controlling orran-
szation Of those said to have comb}nad
70 increase prices and eliminate com.
Pet'ion. The firm is accused of mcrg-