The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-01-05
TO INVESTIGATE
BANKERS NEXT
n. Y. Legislative Commit
tee Plans Searching In
quiry Into Loan Rates
HOPE TO STIMULATE
BUILDING OPERATIONS
Already Amazing Revelations of Labor
Union Graft and Builders "Rings"
to Be Followed by Probe Into States
Financial Institutions.

Financial Institutions.
NEW YORK, Jan. 5.-The great finan-
cial institutions of New York state
banking and insurance companies-are
about to be given searching inquiry by the
joint legislative committee investigating
the building trust which will soon be-
gin an extended probe Of the loan mar
ket. This committee, which has startled
the nation with it's amazing revelations
regarding labor union graft and building
materials rings Samuel Untermyers, its
counsel, has announced, will now seek to
prove that the banks and saving banks
have funds available to invest in mort
cages and thus aid building boom.
Mr.. Untermyer has stated that he is
prepared to show these money lending
institutions that they will be better off
by furnishing money for housing.
Through publicity. he adds, he hopes to
break down the present alleged bonus
system of loans and high interest rates.
! Without mortgage money building opera
tions cannot be resumed Oh a scale wide
enough to provide 125,000 homes now
needed in New York. the committees
counsel hesitated. Already, according to
MIR. Intermyer, the great industrial and
financial interests of New York are carry
ing on an ''lnsidiuous campaign through
. HitGu DIOpdHdiNliStS TO defeat the CoiI-
templated work of the committee III in
vestigating the loan market.
! Testimony purportmg to show that
combinations of building material men
and grating labor chiefs have robbed
z the public of millions of dollars has al
ready been heard by the committee. De
spite alleged political and financial Oppo-
sitIon, the committee continues to plunge
ahead with its work and is unraveing
facts that attracting nationwide at
| tentIon.
Three grand juries are diligently at
work grinding out indictments on evil
dence furnished by the committee. but
they are SO far behind i'll their work that
an additional panel Is to drawn. More
than 40 indictments have been returned
against builders material dealers and la
Dor leaders, charging eXtortlon, perjury,
violation of the state antitrust law, de
struction of records. grand larceny and
contempt of the legislature.
One of the first results of the inquiry
which began October 20. last, was the
disbanding of the Gut Stone Contractors,
association and the Masons' Supply Blu
reau-oTganizations OF employers admit
tedly operating IN restraint OF open com
petition. Twenty indicted stone con
tractors pleaded guilty to violation of the
antitrust act and were fined 5000 each.
when. they turned state evidence he
contractors "rngs in the limestone.
marble. plumbing. metal lathing. fire
pTuOun2 ana wrought biIer itdllilS dia
ventilatng and fire eXtinguisher industry,
which are alleged to have held I'M builders
for millions of dollars. have collapsed
John T. Hettric<, LAWYER. and alleged
promoter OF several of the rings. Is I'M
der Indictment for violation OF the state
antitrust acts and is held IN 100000
hail. He is alleged to have devised the
"code of practice under which bids
were matched and prices boosted by col
lective action.
Fiftv-two members Of the Master
Plumbers association are among the most
recent members of the alleged building
trust to be indicted for violating the
state antitrust act, and are held IN $1,000
bail each. Sixteen members OF the En-
plovino Metallic Furring and Lathing as
ISOLATION are held for destroying evidence,
which they admit they had desired to
keen out of the hands OF the committee.
! Three wealthy business men are under
Indictment for contempt. They are john
ph'lhricll millionaire head OF the
Builders Supply bureau. and Joseph
pernv. treasurer OF the bureau: and
Wright D. Goss. the "brick king who
was actively interested IN the ASSOCIATION
Of Dealers in Nasons' Rnildina Supnlios-
Coss Is also indicted for acting in re-
; straint of trade. Indictments are eT-
rocteI eoon in the cement. brick. sand
iath and plaster. and marble combinations
which are ALLEGED to have had a throt-
lie hold on New York since 1916 and to
have sent prices up from 100 to 300 per
ceot
Robert p RrindeIl. president of the
Building Trades Council held under $780,
600 bail on indictments charging eX.ortion
and attempted eXtortion from builders, IS
scheduled to 90 on trial early III JHnunrV
l,is prosecution to be conducted hv Mr.
T-ntermver Several of BrindeH's aids are
also hold for the allnpnd eNto~tion of
graft from contractors. George : Backer.
millionaire builder. held on a charge Of
reriurv. will 90 on trial soon for the
second time. the iurv in his first case
falling to agree Becker is altered to have
niven false testimony regarding a $4,000
brihe to agents of Rrindel
. Many of The alleged constructors IN the
building trust. many Of them multi
milHonaires. have fled to points outside
of the state. where they are safe from the
interference of the committee.