The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-22
2LITTLE BUILDING
TRUSTS MEND EVIL
WAYS IN BUSINESS
lIasons and ROoferS AssO-
Citations Surrender Quickly
to Lockwood Quiz.
PROMISE TO DISBANDI
SD Street Group Slowly
Disintegrating Under I'm
termyer's Hot Fire.
ONE COMBINE Is DEFIANT
Firepr0of Door Builders Not
Willing to Yield in Face of
Prosecution Danger.
PROMISE TO DISBAND
ONE COMBINE Is DEFIANT

Two combinations which have been
operating in the building industry TO
stife competition and regulate prices
pledged themselves yesterday either
10 disband or throw aside their agree
ments and practices. They are the
Stone Masons' Contractors Association
and the Association of Composition
Roofers and Water Proofers, whose
members put the coverings over the
heads of most people in this city.
Thomas Kennedy, president of the
Masons' Association, made the an
nouncement, after leaving the witness
stand where he had admitted the oper-
alton of his system, that he and his
associates had agreed to go out of
business and Ito take the field in open
competition" Edward ]. Lees, secre-
tary of the Roofers' Association. in
formed the committee that the con-
tractors he represents had arranged
for meetings and agreed to strike
from their rules all restrictions of
trade.
The house of cards built on the
foundations OF graft and collision is
crumbling fast. Perhaps a dozen COM
binations which had built up monopo-
lies during the last year, and which
had become so effective they prac-
tically killed the building business in
New York. have opened negotiations
with the Lockwood Committee and
promised to mend their ways. They
agree to surrender all their books and
minutes; to place themselves at the
mercy of the State if allowed to
disband.
Some Pleas TO he Accepted.
In many Of these cases, The pleas viii
he accepted. The State also will be in
position TO curb effectively the organi-
cations under the operation of the In
dustrial Commission TO be recommended
as the outcome of the inquiry. II will
not be possible for the manipulators In
the several lines TO go through a fake
procedure OF disintegration and then get
together as soon a. the storm blows
over.
II is estimated that from 5000 to
1000 persons or firms are involved
directly or indirectly in the combina-
lions and their qualifications. That
number possibly might be indicted IL
the committee We're out for n court
record, but to do 80 would take years,
Impose q tremendous cost and the re-
suits would be in doubt.
The committee has no intention OF ac-
cepting pleas from the worst of the
grafters and combinations. Many were
loose organizations for the exchange
OF information and price boosting. but
did not have codes of procedure and
penalties nor resort TO violent methods
in trying to break competitors That
brand of combination will escape easily.
The worst offenders. who broke men
In their lines for not abiding by the
code. and whose bylaws and regulations
are clearly a violation of the antitrust
laws OF State and nation VIII be prose-
cuted 10 the limit. So will be all indi-
viduals guilty of extortion. or other
forms Of grating.
Samuel Untcrmyer. chief counsel for
the committee, tackled three of the
twenty-nine remaining combinations
against which evidence has been found.
The Masons and Roofers collapsed
quickly when their officials took the
stand, but the representatives OF the
association which makes nreproof metal
doors and windows showed fight. and
Mr.. Untermyer did not finish with them
smoking out 33d street Group.
Many Of the organizations now COM
ing under investigation are members OF
the Building Trades Employers Associa-
ton. the all powerful band of big en-
a -
Street crowd" The little combinations
derived their power from the power the
Employers Association had over lato-.
Mr. Cnte-myer brought out yesterday.
The latter was affiliated with the BIin-
dell Council
one by one the little combinations are
declaring their intention OF dropping out
of the Employers Association, which will
be the last 20 be brought under the
states inqustion. The committees
policy appears to he to undermine the
Employers Association by dlsruptlng its
membership. and when the ground work
has been completed the leaders OF the
Thirty-third street group VIII be called
Through the examination OF Mr.. Ken
nedy. Mr.. Untermycr showed new
system of price fixing. The witness
testified that In 1908 the mason con-
tractors formed corporation and the
lttltf ORGANIZATION, IN WHICH cdcu NOM
Der held one share OF stock, regulated
prices. Kennedy testified that each
member paid into the corporation 2
tents on every cubic foot Of stone work
done In the city. Twice year the cor
poration declared q dividend when each
OF the forty eight members received an
equal share regardless OF the amount OF
work he had done.
II wac beneficiary corporation"
Mr.. Kennedy explained. adding that
aged men in the trade we're cared Tor
from the fund.
Members filed their contracts with
the controlling body. and Mr. Inter
myc- ascertained that f builder finds
fault with n mason contractor other
members are forbidden 10 do work on
that job
do you think II was legal 90 fix
prices that wav9' Mr.. Cntcrmyor asked
I'VE did Il 10 make living" the wit
ness said.
When the committee returned after
the luncheon Mr. Kennedy was waiting
for Mr. Untermycr and was prepared TO
surrender lie was put back on the
stand.
Have you been consulting with other
members during the recessg'' Mr.. Untcr-
rnyer asked. The witness said ho had.
I'm view OF the present situation have
you decided on some action"
we have decided 10 quit"
THAT Is. you have decided that your