New-York tribune., 1921-05-12
ntractOr lin
ears PrOtests
He w ernt Broke
Winternitz Says He Lost
$4,000 ON Hospital
Before Giving Up Work,
Then He Tried to Recoup
Profits Agreement Made
Combine Exposed i'm Piping
and Heating Industry
Headed byHenryGombers

Following his second days grilling
at the hands of Samuel Untermyer,
counsel to the Lockwood Committee on
Housing, in connection with the scan-
dal surrounding the erection of the
Cumberland Street Hospital in Brook
lyn for the city, Albert Winternitz, the
contractor involved, broke down and
wept on the stand yesterday, pleading
that he be not "held up as a crook"
He insisted that the abandonment
Of the $557,000 contract for the hospi-
tai, resulting in the city's being forced
to pay $244,000 in excess Of the original
estimate of $557,o00, also caused him
a personal loss of $17s,0o0. If the city
had permitted him to complete the
work, he said, he could have finished
it at the additional expense Of only
$130,000. The work had been 65 per
cent completed and the cost of the re-
naming portion, for which the city is
now paying $663,000 to the 174th
Street Construction Company, was
originally estimated at $219,0oo.
City Contracts Defective
Mr.. untermyer pointed out to the
committee that the case illustrated his
contention that city contracts were
quite defective and do not protect the
city,
provision" he said, whereby in case
of default by the contractor, the city
might assume existing sub contracts,
million dollars on this particular
transaction without any loss to the
sub-contractors."
Mr.. Untermyer suggested that the
committee make recommendations to
the city authorities and to the State
Legislature for compulsory provisions
in contracts, whereby the city may
assume the benefit of all favorable con-
tracts, instead of being in the position
in which it finds itself in this case"
Yesterdays testimony revealed the
existence of another gigantic combi-
nation IN the heating and piping in
dpstry, headed by Henry Gombers,
who says he is secretary of three as
sociations, national, state and city, of
heating and piping contractors. Mr.
Gntermyer attempted to show that
these organizations worked in close
harmony with the National Radiator
and Boiler Association in killing legis-
lation all over the country detriment-
al to this particular trade. Gombers's
organizations were also shown TO have
agreements with certain labor bodies,
resulting in extraordinary boosts in
the price of union labor to building
contractors.
Forced to Give Up Contract
Charles H. Darmstadt, contractor,
Gombers's combine. all the labor was
withdrawn from an operation of his,
forcing him to give up his contract
to a member of Gombers's local as
sociation and causing him large loss
of money.
An organization of contracting house
movers and shorers affiliated with the
Building Trades Employers Associa-
tion, of which Waiter Stauffer is secre-
tary, also was exposed.
The climax to the examination Of
Winternitz on the Cum erland Street
Hospital matter was one of the most
dramatic in the history of the commit
tee. Mr.. Untermyer had been prodding
him with questions about the formation
Of the Bertwin Company following the
abrogation of his contract for the hos
pital in November, 1919, the circum-
stances under which Ignatz Roth, head
of the 174th Street Construction Com
pany got the contract to complete the
work, and Winternitz's agreement with
Roth whereby the former was to get
SO per cent Of the profits resulting from
the new arrangement, which was esti-
mated at 100000.
Winternitz suddenly grew extremely
nervous. He nodded his gray head
from side to side in hopeless man
ner. AS the tears began to trickle
down his cheeks, he pleaded.
81 don't think it is fair, Mr.. Inter
nlyer, to show the public that l am
crook. If / am an honest man and
lost lot of money--why, that is not
my fault. I want to make an explana-
tion to the public ard to the commit
tee"
Sobs as He Tells of Contract
Marked with intermittent sobs, he
went on in broken voice
I'm 1917 | got contract with the
city for $55T,000. My estimator made