The New York herald., 1921-05-13

for a breach OF the rule governing such
= situation was given. This member ac-
eepted a separate contract for the iron
Shutters on the Mail Service Building at
Forty-fourth street and Lexington ave-
nue when another contractor had the
architectural iron work. and was prompt
III disciplined.
Mr.. Steckenreiter agreed with Mr..
tnteimyer that II was about time his
organization disbanded lie could see
shings in a different light, he said. since
the Lockwood committee had begun its
Investigations and he thought that al
ready the organization was pretty well
disintegrated. He said he thought the
Y comparison OF estimates OF the members
bad been something of joke on the
general contractors"
What do you think about it now?"
asked MIR. Untermyer
u II think the jokes been on me- re-
Piled the witness.
Il q Finishing mis- investigation OF the
Cumberland Street Hospital job Mr.
Intermyer reviewed the disclosures as
they have been described in THE NEW
York HERALD and recommended the sub
mission of the record to the proseeut-
ing authority or Kings County he
Said, in part:
In my opinion 1t is scandal OF the
reeks with fraud in which the city OF
New York has been and continues to
be the victim. In my opinion this trans
action contains tho germ of one of the
most brazen swindles exposed by this
Committee"
MIR. Untermyer referred TO the appeal
OF Albert Win.ernitZ. the original con-
tractor. on Wednesday that he had not
been treated fairly, and that the conf
- IL. h hsV4R
crook" as nothing more than n bid for
sympathy from al unusually clever
man.
sheet Metal Club Had RakeoH.
Herman Welnbcrger. secretary of the
Employers Association OF Roofers and
Sheet Metal Workers. and also of the
Sheet Metal Business Mems Club. re-
fused on advice OF counsel TO waive
Immunity. The last named organiza-
Con. he said was maintained by con-
tributions OF a per cent. rakeoff
from contracts obtained by members.
Mr.. Untermyer showed that It was, IN
effect. a central clearing house for the
exchange of information regarding bids,
operated on much the same line as
similar combinations the committee has
exposed. Mr.. Weinberger insisted that
a number of white cards introduced
bearing figures relative to certain jobs
were costs. Mr.. Unternyer was equally |
certain they were estimates submitted. |
Much OF Weinberger's examination |
centred about the clubs suspension 'for |
a temporary period only of a provision |
of it's bylaws that % per cent. should |
be added TO estimates. In reply to Mr.. |
Cntermyer the witness admitted that |
this rule had been suspended In April,
1879. by advice OF counsel. Weinberger
assumed that the advice was given be-
cause the practice was violation OF
the antitrust law.
n Mr.. Untermyer developed that the
usual agreements between this em-
ployers' association and labor unions ex-
listed whereby members of the assocla-
tion received the preference in cases OF
labor difficulties. There were the GUS
tomary penalties of fines or expulsion
if any member-employer violated the or
ganization's rules. ~
Weinberger was accustomed. he said.
10 keep the records of his committee
meetings on loose sheets and occasionally
references to attached" papers and cir
culars disclosed the fact that the papers
in question were not to be found There
was one. however, dated November IL,
1913 that instructed members preparing
bids and estimates to add so per cent. on
each item of labor and material and 10
per cant. on each item of insurance.
Mr.. Untermyer showed that in 1917 |
the percentage OF advance was As per |
cent then had the witness admit that
with the greatly increased cost Of labor |
and material between 1917 and 1919 the |
additional per cent advancement
meant actually much more substantial
increase in the contractors profits.
The witness said that members OF his
Organization issued uniform guarantee
good for two years for roofing jobs. but
admitted that the usual guarantee used
to be for ten years. lie was excused
until next Wednesday, when the commit
8fee meets again