New-York tribune., 1921-04-28

bidding, each bidder thus knowing
what his competitor was quoting. XII
this was done before the contract waa
given out Luhrs declared there was
no rule prohibiting any bidder from
changing his bid after obtaining the
estimate of hts competitors. ~
But this doesn't tend to helm COM
petition much, does it?" asked Mr..
Untermyer
No, not much" replied Luhrs.
Dont you know you were conducting
BUSINESS that was constantly on the
law?" WV" '"e
II didn't know whether it was law
full or not"
MIR. untermyer here read from the
preamble of the constitutions of the
various exchanges which set forth that
10 avoid the use of. the exchange as
price fixing or trade controlling de-
vice no information will be received.
distributed or exchanged by the sec
retary relating to any actual selling
price any member intends to ask pre-
vious to effecting sale and no member
VIII enter into any arrangement with
any other member which has to do with
any of these prohibitive practices"
Contrasts Pledge and Practice
How do you reconcile, Mr.. Luhrs,"
asked Untermyer, "this distribution
and exchange of quotations among com.
petitors with this speech in the pre-
amble 7"
II don't reconcile them at ALL"
answered Luhrs.
Don't you know that all these H.
legal combinations start with virtuous
speeches and that the more obnoxious
they are to the law the more sweet
disavowals they contain?"
81 don't know about that"
Luhrs was here questioned about rec
ords of the minutes of the various or
ganizations, and it developed that the
minutes were not kept in regular min
ute books but on sheets of paper
which were sent out to the member
ship only after they had been approved
by Clark McKercher, the counsel. The
reports sent out by the association to
Its members, Luhrs admitted, were so
complete that each of the members
could run complete set of books of
the other members business. Some
of these reports, he added, did not
contain a record of the sales order
business, while others did.
Were not these forms used as
guide in price fixing by the members 2"
asked Mr.. Untermyer sharply.
II don't know what use they made
of them, just as matter of informa-
ton"
Doesn't Know Uses
"Were they used merely to satisfy
the curiosity of members 2"
~ don't know"
Luhrs denied that any information
about a rise or decrease in price of
products was disseminated from his
office, whereupon Mr.. Untermyer pro-
duced bulletin signed by Ainsworth,
OF the Brass and Copper Exchange, sent
to all the members, which set forth
that telegram had just been received
from the Rome Brass and Copper
Company that the firm had reduced the
price of copper one cent a pound.
Luhrs added that many members do
not report and that as a matter, of
fact the reports and dissemination of
information by Ainsworths s Office were
purely voluntary acts and not
duties"
To which Mr.. Untermyer replied:
go on paying or belong to the organiza-
tion if he did not expect to receive or
submit reports ?"
Information Refused Outsider
Mr.. Untermyer here read into the
Valve Company, not members of The
exchange, requesting of Ainsworth in
formation on prices being asked by a
member of the exchange. Ainsworths
reply read in part as follows:
81 am very glad to know that you are
interested in the Plumbing Fittings
and Valve Exchange, and it seems to
me you can demonstrate your interest
betterHy joining. When you become a
member of the exchange you will have
continuously before you the prices
which all manufacturers make on their
fittings and valves at all times. The
whole exchange proposition is based
upon the principle that information is
supplied only to those who supply like
inforI/aton."
The examination of these organiza-
tions, will be continued in City Hall
this morning. Mr.. Untermyer is as
sisted in the probe by George Bren-
nan, former Assemblyman in Brook
lyn; Leonard Wallstein and Nathaniel
Goldstein.