New-York tribune., 1921-06-17
Three Br1ildil,e
Rings Broken:
Six Url1nasked
Rejection of $1O,OOO,OOO
of Buffalo School Bids
Urged by Lockwood Prob
ers After Stormy Scene
u. S. Calls I'm Untermyer
More Price Fixing Barred
and Defiant Lawyer Is
Elected From Hearing
From a Sta6f Correspondent


BUFFALO, June 16.--The smashing
of three building material combines
the exposure of six others, the sending
of evidence of another to the grand
jury and the advised rejection OF
S1O,000,000 worth of school bids were
The high spots in the extremely lively
session of the Lockwood committee's
investigation of the housing situation
day.
There were indications that the rapid.
fire developments here were attracting
the attention Of the Federal authorities
Louis P. Carlin, United States Attorney
for this district, conferred with Sam
uel Untermyer, chief counsel to the
committee. at the close of to-day's
hearing, and it was also learned that
Mr. Untermyer had received com.
munication from Attorney General
Daugherty asking him to come to Wash
ington next week for a conference. AS
Mr. Untermyer leaves for Europe on
Saturday of next week it is q question
whether he will be able to see Mr.
l...s.sg:l.s lD..a.s.usgherty before he departs. It is
evident, however, that some government
action Is contemplated in connection
with the revelations.
Special Court Session Asked
That nothing may stand in the way
or an imm Mediate court attack against
the alleged criminal organizations. Dis.
trlct Attorney Guy B. Moore appealed
to Governor Miller to-day for the des-
lgnatlon OF an extraordinary term of
the Supreme Court to handle the great
mass of cases that have so rapidly de.
veloped from the inquiry. lMr. Inter
myer has promised to assign one of his
aids to assist in the prosecutions.
Evidence of the destruction of rec
ords with the alleged purpose of
thwarting the inquiry, the existence Of
a price-fixing organization masquerad-
ing in the guise of a "library." the
forcible election from the hearing
chamber of one Of Buffalos leading at,
torneys and the holding of anothe,
man in contempt made the session one
Of the most eventful in the history of
the committee.
1t was at the conclusion of the tax
ING. OF the days testimony that Mr.
Untermyer suggested the rejection Of
the city's school bids. The estimates
involved an original expenditure Of
S12,000,000 for eight schools. A seconc
call for bids brought about a reduction
O. $i,900,000 from this price. Mr.
Untermyer advised, in the light of thu
present exposures, that these bids be
rejected and estimates readvertised
expressing confidence that further
substantial reduction could be effected
The committees counsel advised
that. the testimony regarding the op.
erations Of the Buffalo Gravel Com.
pany be taken up by the District At.
tcrney and presented to the grand
Jury. The Buffalo firm, it was brought
out, practically had a monopoly of The
gravel business here, with the Hollo.
way Sand and Gravel Company, ap.
parently an independent firm here, do
ing about 10 per cent of the business
in this district. Evidence was pro.
duced by Mr.. Untermyer, with the aid
OF his assistants, Leonard M Wall.
stein and George r. Brennan, showing
that the Buffalo company sent its
price lists to the Holloway concern
and that the latter adopted these
prices, indicating collusion.
Gravel Chief Held in Contempt
William McCarroll, secretary Of the
Buffalo Gravel Company, was declared
in contempt when he appeared at the
hearing without the stock books and
other records Of the firm, which he had
been subpmnaed to produce. After
being held in contempt by Chairman
Lockwood for ignoring the subpoena
CONTINUED on page three)