New-York tribune., 1920-12-09
Ring g
Stranggled All
Price Rivalry
Contractor Says He Under
bid Combine by Buying
Stone in Middle Wes,
OH Direct Order Method
81 a Cubic Foot Saved
Estimate Of New Courthouse
Graft on This Material
Alone Put at $l.OOO.OOO

An entirely new light was thrown
on the limestone contracts for the pro
posed new courthouse by Louis Uoro-
wiz, president Of the Iho,npso Star
-ett Construction Company, in testi-
mony before the Lockwood committee
on housing in City Hall yesterday.
Horowltz said that by circumventing
the limestone ring here he was able to
bring limestone from Indiana, have it
cut and set for .5.25 cubic foot.
This vas a surprise to members Of
the committee, who had been led to
believe BY previous testimony that the
~ a cubic foot asked by the Henry
Hanlcin Company for the s2.972.ooo
Job was due to thc large size of the
blocks Of the MATERIAL
This was directly controvertod ~.
Horowitz, ,Tho said that the smaller
SIZE blocks Of limestone cost more than
me bigger sizes because Of the adj
dltlonal cost in having them cut.
Graft Put at 81 ,0OG 900
>aniue! lntermyer, cnief counsel Tor
the committee, said that accordino 10
THIS testimony the $500 900 Which, h..
estimated the city would have lost on
the contract was entirely too low and
that the graft would have amounted 10
nearly $l,O00,000 if the contract had
not been Cancelled as the result of Tho
committee's exposure
Horowltz further testified that it was
impossible to obtain competitive bids
Tor construction work in more than q
dozen lines OF materials before the in
tot
Vanced for limestone, plumbing. marble.
Dflck, cement, lime or tireprcofng ma
terial had been invariably uniform.
Nlthln the last month or sixty dnvs
ne said, however, prices have dropped
rom 80 20 40 per cent and in the cas-
Of cement 90 per cent
He added that the large steel fabri
gators or the country and the Iron
League Of New York had combined +,
maintain the open shop" on al stoe'
erection Jobs here. He said there was
no such thing as an open shop that
the Jobs were either union OF. NON.
union. and that the open -shop term
was used by -he steel men TO dofes+
organized labor
No Real Competition
additional testimony was submitted
ny otner contractors tending 20 show
The utter absence OF real connection
IN the building supply industry. Sand
ma Gravel, 1t vas shown. were in The
hands Of three firms with one company
IN control Of about 20 per cent Of the
entire 'ltput.
The Sand and Gravel Dealers Board
Of Trade, to which is attributed the
fictitious Nriccs Of these materials.
was organized. Il was testified. "to stop
fighting among competitors and make
more 'nOneV'
The organization, within year and
FIVE months Of its formation in June
1918, it Was said had boosted the price
of sand from $3.50 q cubic yard to
s2.75.
When the books Of tie organization
were produced by Mrs. Helen McDon-
aid. in response 30 a subpoena. former
Senator Edgar T. Bracket, counsel for
the boaId, put up a lively fight to keep
them out Of The hands of the commit
tee, making protests similar TO those
oi counsel for the Builders Supply
Bureau and other organizations under
inve stigotion by the committee.
Counsel for the committee. however
insisted that the matter had been rulad
upon, and retained custody Of the doc
u7nents.
Brindell Indicted Again
thc indietmcnt OF robert T. BrindcN,
once again for c':tortion. This makes
The labor leader by The additional grand
ni.tcc probe, five of the indictments