New-York tribune., 1921-02-10
Testimony i'm
Hettrick Case
Begins To-day
Prosecution Charges s'Code
of Practice Created IA
Trust, Raised Prices and
Throttle d Competition
20 Firms Are Indicted
Donnelly Law Violations
Charged Against Build
ing Material Concerns

With the completion of the jury, the
prosecution yesterday opened IN its
case against John T. Hettrick. the law
yer-originator of the "code of practice"
scheme Of alleged collusive bidding
The case is being tried before Supreme
Court Justice McAvoy. Hettrick, with
three co-defendants representing union
plumbers and plumbing contractors, is
| charged with conspiring to force out
side contractors into his scheme.
Coincident with the opening Of the
states case, the January grand jury,
considering criminal evidence arising
from the Lockwood committees hous-
ing investigation, returned indictments
against twenty nine firms and corpora
tions, members OF the Association of
Dealers in Masons' Building Materials,
for alleged violation of the Donnelly
anti trust law.
Fifty-siX individual members of this
association had been indicted last week
and were released under $1,000 bail
Counsel for the firms indicted yeyter-
Cay we're ordered to appear before
Justice McAvoy to-day or tomorrow to
answer to the charges. The nameB of
the concerns accused were not dis
closed.
Code" Called a Trust
While Henry l.. Stimson, Secretary
of War in the Roosevelt Cabinet, is
the chief prosecutor. the states case
| II
Spence, his assistant. Mr.. Spence said
the people would prove that Hettrick
bad devised plan for q group of mas
ter plumbers to stif1e competition and
boost prices and, by an arrangement
with union of journeymen plumbers,
used the latter to "black-jack" outside
contractors into the scheme.
The system was conducted under
"code of practice" he said, and "began
working as an effective trust in April
1919. In accordance with the cade, each
Of the master plumbers subscribing to
the scheme was allotted a certain
amount of the gross business of the
year. 1t was agreed, it was charged
that all estimates on jobs should in
clude Is per cent for overhead charges
10 per cent for profit and per cent
for an insurance fund for the "elimina-
tion of unfair practices" Of this fund
hetCIlCh ODtdlued per cent. In tne
year and five months that the system
was in operation, Mr.. Spence said,
Hettrick got from the plumbers alone
$55 900
"Under the circumstances, of course"
| he said, Competition was completely
throttled.'
Mr.. Spence asserted that William j.
| Doran and William II. Chapman, dele
gates of the plumbers union, acted
! H. / ,,II.
draw labor from contractors who did
not join the "code Of practice"
Doran and Chapman are on trial with
Hettrick. The other defendant is Her
bert Smith, of the firm of Hemlin g.
Smith, member of the Master Plumb
ers' Association.
Testimony Begins To-day
"Doran and Chapman helped Het-
trick to collect" said Mr.. Spence. "and
Hettrick collected. Soon numerous
contractors from the Bronx focked to
Hettrick's Office and asked to be ad-
mitted into the scheme. This Hettrick,
who claims to be lawyer. had pic
ture of Chief Justice White of the
United States Supreme Court prom
lnently displayed in his office, and when
these men asked him if the system was
his friend Chief Justice White, had
declared this thing was legal.
These defendants" concluded Mr..
Spence, "were linked up in a conspiracy
to coerce. We don't have TO prove that
agreed to coerce"
The examination of witnesses will
begin this morning. The four jurors
| chosen yesterday to complete the panel
were John f. Hertel, tailor, of 131
Vest Ninetysixth Street; William A.
Perciyal, superintendent, 48 Post Ave
nue.; Henry w. Bolles, retired, 121 East
! Flfty-fourth Street, and William R.
Shropshire, manufacturer, 664 West
11Qth Strnn4