The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-02
Extent of Price Fixing.


The committee purposes to learn why
and how several important associations
of manufacturers were maintained.
There Is evidence showing that the price
liking dealt with practically all mate
rails used in construction.
Devel opment OF this line of evidence
IL expected to reveal one of the main
reasons for the high cost of building in
New York during the last few years. 1t
1t plain that the Lockwood Committee
does not intend TO corfine its activities
to running down dishonest labor leaders.
When IL resumes Thursday the COM
mittee is expected also to present testi-
mony sud documentary evidence show
ing what became of half million dollar
"surplus fund" said to have been ham
dled BY John Hettrick, author of the
code Of procedure for regulating bidding
on plumbing and other work.
1t will be shown that In the plumbing
trade, for example, all contracts were
allotted among the members of the code
associa ton. Prices were fixed. Then
the result OF the work were checked up.
Dividends were paid to members on the
basis OF the amount OF work they did.
After Expenses" had been paid the divi-
dends and surplus were divided among
the contractors and others of the inner
circle The expenses were made up from
fees. and how that sum was spent is
yet to be shown. 1t represents large
amount After everything else was set
tied there still remained the $500. 600
surplus which was allotted
Court House Contracts.
Another important phase OF the ir-
vestigation receiving constant attention
from the investigators and to be brought
out before the public at as early a date
-.
contracts rejected recently.
Most searching investigation is being
made OF the way those contracts were
manipulated. The committee proposes
to develop evidence which will show
why certain prominent city officials and
politicians were so interested in pushing
through these contracts.
II Is this feature of the investigation
which Is causing prominent Tammany
men some sleepless nights. The connec-
ton between building profteers and the
politicians Is nearly completed in the
evidence even before the case Is touched
In open session. The Court House scan
dial broke the investigation open: II
probably will develop into the most SEN
sational feature before the inquiry is
ended
William Zaranko, president of the
Housewreclcers Union, notified the COM
mittee that members Of his organization
who had gone into the Trades Building
Council under pressure Of the fight made
by Robert II. Brindell its president. had
been solicited for contributions to a de-
fence fund being raised to fight the
Lockwood committee. The amount So
licited from each was $40.
The committee began an inquiry and
learned that workers In other unions
connected with the Council had been
solicited similarly. The amounts de-
handed ranged from 81 90 $40 How
far this has gone Is not known. There
are $4,000 members OF the Council and
the investigators pointed out Il would
not be difficult to get fund OF several
hundred thousand dollars IL their de-
mands were met. All questioned yester-
day said they had refused to make pay
ment.
Judge Mulqueen called attention OF the
new jury. which viii handle the criminal
prosecution until the extraordinary Jury
~ called at the end OF this month 10 take
over the case. to sections OF the Criminal