New-York tribune., 1920-12-10
Inquiry Bares
l55 Per Gent
Brick Profit
Combination Among Makers
and Dealers in Automatic
Sprinklers Is Revealed
at the Lockwood Hearing
Architects Pact Hinted
Another Indictment Found
in Criminal Phase; New
Grand Jury To Be Called

After weeks Of effort to detcrmin
how much profit brick manufacturer
realized from inflated prices Of tn
product. said to have been brough
about by alleged price fixing opera
tions, the Lockwood Committee ol
Housing at yesterdays session in Cit!
Hall made public some startling fig
ures on the matter.
1t had been pointed out that be
cause of the activities of associations
Of brick manufacturers and dealers
bricks had risen to $50 thousand, the
price from manufacturers to dealers
and that rom dealers to builders being
invariably uniform.
Expert accounts told the committee
Yesterday that the Empire Brick ano
Supply Company. one of the biggest
brick manufacturers in the state, made
net profit the first SIX months Of this
year of 155h per cent. In 1919 the
profits OF this irm amounted to nearly
90 per cent, it was said. The company
600 600 bricks in this period
During 1919 the cost Of manufacture
was SLIPS per thousand These we're
sold to dealers for s21 25, according to
witnesses. For the first six months of
this year the cost Of production was
SLIPS a thousand, only three cents
more. The selling price, however, had
risen to s2S.75, it was charged.
Combination in Sprnklers
A new combine among dealers and
manufacturers of automatic sprinklers
also was revealed at yesterdays hear
ing. Testimony was given showing that
"code of practice" existed among ma
tiona. manufacturers and their licensed
dealers in this product tending to reg
ulate competition and bring about uni
form prices.
From another witness it was learned
that the American Institute of Archi-
tects promulg gates the idea that "the
basic minimum charge for the serv-
ices of architects is per cent of the
total cost Of the structure complete"
This professional practice" rule, it
was said. has been existent in its pres
ent form since 1908. While not manda-
tory on the thousands of architects in
the national organization, it was testi-
fled that the rule was generally OBJ
served.
Samuel Untermyer, chief counsel for
the committee, charged that it hampers
the climbing of the young men in the
profess on, n that those who work for
less are drowned down upon" by the
more prominent architects. TIL was
denied by Burt L. Fenner, of McKim
Meade & White, who is president Of
the local chapter OF the inst tute. He
insisted that there was nothing NOR
ally or ethically binding in this rule of
professional practice; and sa it was
not abrogated because it was a good
guide for both the profession the
public as to what constitutes q proper
value of the services of arch tects"
Frequently, he said, his firm charged
less than 6 per cent, and never that
much on housing structures except big
apartment buildings.
Another Indictment Found
The extraordinary grand jury hand
ed down another indictment yesterday
in connection with the criminal phase
of the investigation. The identity of
the accused or the offense charged was
not made public, but it was said that
counsel had promised to produce the
person indicted at IL o'clock this
morning.
Joseph Moran, a delegate Of the
Building Trades Council, headed by
Robert P. Brindell who had been
sought since Monday, surrendered him
self yesterday at the District Attor-
ney's Office together with Peter j. Stadt-
miller, with whom he had been men
toned in an indictment growing out
of the Lockwood inquiry. Stadtmiller,
also member Of the council, had pre-
viously been indicted on the charge of
extortion and was out in $4,000 bail.
Mondays indictment. handed down by
the additional grand jury, also charged
both men with extortion.
Both were arraigned before Judge
Mulqueen in General Sessions. Stadt-
miller's bail of $4,000 was continued
and Moran's bail also pleased at $780,
600, despite the objections of his coun-
sci, ]. j. O'Connor
The Indictment against Moran and
last the two men extorted $500 from
Jacob L. Kamen, president Of the Front
Street Housewrecking and Lumber
Company, having agreed to call off
strike on an operation of his at 30o
West Fiftieth Street for this amount.
The sixteen members of the En-
ploying Metallic Furring and Lathinc
Association, indicted two weeks ago
charged with destroying records of al
asked for an inspection Of the gran,
jury minutes. The motion was mad
before Judge Mulqueen in General Ses-
slons: 1t was opposed by Deputy Attor
ney General Berger. Judge Muloueer
gave counsel for both sides until next
wednesday to file briefs on the subiec,
The third grand jury to be organize
especially TO consider the criminal evi.
dence growing out of the Lockwood in.
vestigatlon was ordered impanelcd bv
justice McAvoy yesterday. This grand
Jury WALL be for the January term of