New-York tribune., 1920-11-04
Building Graft
Inquiry Opened
By Grand Jury
Numerous Documents and
Testimony of Many Wit
nesses Relied Upon to
Obtain 20 Indictments
Strict Secrecy Observed
Action Expected Against Cor
rupt Labor Leaders and
Those Behind Combines

INC presentation OF evidence TO the
additional grand jury in connection
yith the alleged corrupt practices in
the building industry being investi-
gated by the Lockwood committee was
begun yesterday by SamueT>Untermyer
counsel for the committee, and his
associates
In addition to the numerous .docu-
nnents placed before the jurors, be-
tween twenty-five and tbirty witnesses
were on hand to offer testimony. On
the basis of the presentments to be
fnadc within the next few days, more
than seventy indictments. involving
contractors and labov leaders. are cX-
fected TO be handed down
The offenses charged probably Will
include cXtortion, perjury, combinations
in restraint Of trade and destruction
Of evidence interfering with the due
and orderly process Of law.
Precautions for Secrecy
Every precaution has been taken by
the committees counsel to keep the
Identity of the witnesses and the
nature of their testimony a secret. All
persons connected with the grand jury
have been warned to refrain from re.
ceedings, Mr.. Untermyer taking the
position that witnesses who are willing
to tell all they know Of the scandal
shall be afforded every protection.
he jury was in session in the Grim
inal Courts Building both morning and
afternoon, aud it was said would con-
tinue meeting daily FOR the rest of
the week. Indictments are expected no
later than tomorrow.
There were indications that the con-
nlttee'S counsel are going about the
matter with great caution. They desire
not only TO obtain indictments but to
have their cases hold IN Il court Of
law with view of obtaining convic-
tons. 1t was made plain, too, that
the action against corrupt labor lead
ers was merely an Incidental part of
the investigation and developed rather
unexpectedly.
Out to Smash Combines
The committee is really out to break
up the combinations OF contractors in
the thirtytwo trades of the building
industry. Four Of these alleged com
binations. including the metal steel
lathers and furrers, plumbers, cutstone
dealers and steam and ventilating con-
tractors. have practically been put out
Of business by the committee through
the seizure of their books and disrup-
ton of the organization through which
thev are said to have worked
More details of the operation of
some others Of these combinations are
expected to come out at this morning s
hearing Of the committee in City Hall.
The committee. it appears. is concen-
trating on a new group, the manufac-
turers and dealers in material used in
the building industry. This is the
group, in the opinion of the commit
tees counsel, which has been mainly
responsible for the high cost of every
thing. excluding labor, which goes into
building construction.
Mr.. Untermyer has appealed to the
Department Of Justice to trace certain
missing papers of various labor organi-
cations which have been taken to New
Jersey and Connecticut to remove them
from the jurisdiction of the New York
courts. When they are recovered they
will be placed in the keeping of Joseph
Kaufman, the special Assistant United
States Attorney appointed by Attorney
General Palmer to cooperate with coun-
sci for the Lockwood committee.