New-York tribune., 1920-11-24
Makes Admission in a
Clash With Untermyer
on 100000 Contract
for Removal of Ashes
$4,000 Levies by
Brinden Charged
II Firms Dealing in Fire
proofng Materials Are
Accused of Combination

Verbal clashes between Grover A.
Whalen, Commissioner of Plant and
Structures, and Samuel Untermyer,
counsel for the Lockwood committee;
further disclosures Of alleged extor-
ton by labor leaders and alleged
combines in building materials were
the outstanding features in yester-
days hearing of the committees in
vestigation of the housing situation.
The wrangle with Commissioner
Whalen grew out Of his being ques-
toned by Mr.. Untermyer in connec-
ton with the dumping of ashes into
the excavation for the new court
house, for the removal of which Mr..
Untermyer said the city is now pay
ing nearly 100000. Commissioner
Whalen admitted having at one time
been member of the firm which be-
gan dumping ashes into the excavs-
ton in February, 1918.
Commissioner of Accounts Hirsh-
field and Judge Frank Z. O'Reilly,
of the Even Street police court, of
Brooklyn, were also examined in con-
nection with the Mayors statements
on the length of his acquaintance
with Hirshfield and John T. Het-
trick, the lawyer head of the code
Of practice ring of contractors.
More Alleged Graft
Joseph Paterno, of Palermo & Pater-
no, one Of the largest building firms in
the city. and Max Aronson, another
contractor. testified to paying more
than $4,000 and $4,000 each to Robert
P. Brindell, the indicted head of the
Building Trades Council or his agents,
to have strikes called off or to continue
operations unmolested. Palermo said
his settlement was made as a compro-
mise on demand for $4,000.
Evidence OF an alleged combination
OF twelve tireproofing contractors, term
ed by Mr.. Untermyer "combina-
ton in restraint Of open competition
was given by Roswell F. Easton, head
Of the Concrete Fireproofing Associa-
ton. Easton described the alleged
methods Of operation Of an estimating
bureau, controlled by the twelve mem
bers OF the association, which Mr. I'm
termyer maintained was merely new
device to circumvent the antitrust
laws. and through which he asserted
the price of the product was unduly
boosted.
Following the committees court Vie
tory over the Builders Supply Bureau
in the meter of compelling an en-
ployee of TIE bureau TO appear in coura
with the organizations books. Miss
Elizabeth ODea, a bookkeeper for the
bureau, was put OF the stand and quee-
toned on the bureaus functions. Lit
tie progress was made in her examine
ton because of the protests of her
counsel, Martin Conboy, who objected
TO the committees counsel examining
the books produced by the witness. A
controversy followed and her examina-
ton was put over until this morning.
Before leaving the stand, however,
Miss O'Dea testified that John A. Nc
Carthy, an intimate friend and former
business associate Of Tammany Leader
Charles F. Murphy, was a member Of
the bureau
Whalen Takes the Stand
In the course of Mr.. Whalen's exam
ination the Commissioner admitted be
formerly owned a half interest in Hol-
land G. Co., which for twenty five years
has held the city ash-dumping contract
for the territory below Canal Street.
The company began dumping ashes in
the New York County Courthouse ex-
cavation in February. 1918, and con-
tinued doing so until recently. 1t is
for the removal of these ashes that
Mr.. Untermyer Gays the city is paying
almost 100000
When it was held that the question
ing along these lines had no bearing on
the housing inquiry, Mr.. Untermyer re-
piled that "if 1t could be shown that
hlllng up of the excavation had been
HNiic HiAUri CoNeI III tNe interests or
city official it would certainly be ger
mane."
All through the examination, Com
missioner Whalen insisted that inter
myer stick to the facts" that he "stop
his insinuations." that 'he must not
besmirch his character" and wound up
by warning Untermyer he would sue
him for libel land take some of your
money away from you
We'll that is ali right" came back
untermyer. my money has not been
made out of the city"
i would not want mine made where
yours was.' replied Whalen.
Whalen Follows Up Threat
The Commissioner Of Plant and
Structures followed up his threat to
Mr. Unteunyer in the following com
munication sent to The Tribune last
night
This notice is served on you in order
that you may avoid being parties to .
libel such as slresdy committed to-day
in some of the afternoon papers With
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