The New York herald., 1921-05-15
lyman PAID GRAFT
TOLABOR IN CHICAGO
Contractor Tells of Sl47,3
ShakedOWn to Permit Work
on Buildings.
FORCED TO GIVE NAME
Reveals Information Only
After Being Threatened
With Imprisonment.
POWERFUL RING AT WORK
Commission Informed Condi-
tions in Windy City Are 100
Times Worse Than Here.

Special Despatch to THE NEW YORK HERALD
CHICAGO. May l4.-Threatened with
Immediate imprisonment unless he
told all he knew, George II. Thomas,
general manager of the Longacre En-
gineering and Construction Company
of New York, this afternoon reluctantly
revealed to the Daley Legislative
Commission the name of a business
agent for the plum pers union to whom
he said he paid SAT- in graft to per-
init the erection of the State-Lake
Building, and sum said to be nearly
100000 to settle labor difficulties"
during the construction of the Woods
Theatre builds Ia.
How thoroughly the tactics of the
labor graft dictatorship have terrorized
many employers was brought out by
the struggle the witness made to con-
ceal the name of the man who had
manipulated the S147,000 shakedown.
When he finally revealed it he stipu-
lated that it should be withheld from
the public and the newspapers. Charles
z. Erbstein, his attorney, stated that
the agent had died since the transac-
!Son.
oAe State-Lake building tribute, Mr..
Shomas told the committee, was put up
by Mort Singer, general manager of the
Orpheum Circuit, and was paid over by
Thomas personally in ten separate pay
ments to the business agent.
Feared Power of Graft Ring.
The 100000 was the approximate
sum which Thomas said he had paid In
behalf of the builders of the Woods The
atre building to the same agent. The
first payment, he said, was one of $500
made In his room In the Hotel La Sale.
Before he named the agent the contrac-
tor made it plain that he almost pre-
ferred risking the power Of the commit
tee to put him In jail to the power OF
the union graft dictatorship to wreck
the construction company with which he
is connected. In fact, he at first re-
fused fatty to divulge the name.
MIR. Thonas's refusal came after he
had testified to the manner in which a
strike was called on the Woods Theatre
wrecking Job, and a demand for $4,000
made OF him by the union agent
Conditions said the witness. ARE
Just 100 times worse in Chicago than
they ever have been in New York. !
have erected a lot of buildings in New
York. but never had to pay a. nickel
of graft to any one except sidewalk
inspectors That was 50 we could put
building material In the street But
when I came here 1 found there was
only one way to erect building and
that was to get to the right union
agent and pay him"
Mr.. Thomas refused repeatedly under
questioning by both Senator DALEY and
Attorney Fleming. representing the COM
mission, TO reveal the name OF the man
who engineered the shakedown. IL was
only when Senator DALEY reminded
him that the investigating body had
reached the point where 1t must demand
identification OF the individual that the
New York contractor agreed to give the
information in private.
.'yVhat Is the name of the man 10
whom you paid all this money de-
manded Mr.. Fleming.
1T don't see why / should tell. III l
should tell / might be subjected 10 PEI :
sonel violence This Is being heralded
ALI over the country. A few days ago
on Broadway, In New York, ] was
stopped by half dozen Of my friends
who asked me about my jam In Chi
cago.'
Tell Names In an Anteroom.
The contractor then said: Senator
Daley, / can cite the case of an iror
concern In New York-the only one thai
hollcred in an investigation eight years
ago. 1t hasn't had a job since.
"You have placed me In terrible
position," he continued. You don
realize what II means to me to oe
brought before the commission and
forced to tell such things"
Charles +. Erbstein his attorney, thsn
suggested the witness be allowed to give
the name in confidence to Mr.. Fleming
Senator DALEY and James II. Wilker-
son. Special Assistant Attorney-Gen-
eral.
MY client tells me the man Is dead
but that he fears the consequences tnni
may be dealt out to him II he tells the
name," said Attorney Erbstein. After
many minutes OF wrangling. Mr.
Thomas. Attorney Erbstein and Senator
Daley withdrew with Attorneys F'lem.
ing and Wilkerson to an anteroon
where the business agent, whose terror
livss after him, was named by the
victim