New-York tribune., 1921-04-28
Untermyer Calls Albert
A. Ainsworth a Super
Hettrick; Says Latter by
Contrast Was SsPiker''
Deals of Hundreds
OF Millions a Year
Ordered OFF Stand on Re-
fusal to Waive Inamu-
nifty in Lockwood Probe

Samuel Untermyer, chief counsel for
the Lockwood Committee on housing,
yesterday exposed new group of thir-
teen price-fxing combinations in the
building industry, which, ne charged
have been operating under cover of the
so-called "open- price system"
This group, it was shown at yester-
days hearing of the committee in the
City Hall, is conducted by Albert A.
Ainsworth, the secretary and guiding
mind of the thirteen combinations Of
manufacturers, in his Open Price Asso-
citation. with Offices at 522 Fifth Ave-
nue.. Contrasted with Ainsworth. said
Mr.. Untermyer. John T. Hettrick, of
code of practice fame, was "piker."
the volume of Ainsworth's business
running up into the hundreds-~of mill
lions of dollars. Mr.. untermyer char
acterized Ainsworth and the directors
of hundreds of similar such orraniza-
tions scattered through the country as
super
Nine Concerned With Housing
Only nine of the organizations run
BY Alnsworth are concerned with hous-
lnS or housing materials, and these
alone were made the subject of inquiry.
Mr. tntermyer said he would show that
about sixty such combinations directly
eontroiied the cost of housing con-
struction.
Before the detailed workings of these
10 n
manager of the New York Fire Insur.
ance Exchange, was given an opportu-
nifty to defend the methods employed
ny this organization, which was shown
by his own admission to constitute
practically monopoly of the business
in this city. Mr.. Robb declared that
While 1T was true that its control had
attained greater state of perfection
tnan that of similar bodies in other
parts of the state, he pleaded that the
rates of insurance were lowest where
this control of ratemaking was most
complete.
Against this Mr.. Untermyer pointed
out that no other city spent so much
money for fire prevention. When Mr..
Robb tried to prove that the companies
lost money last year by citing that 1877
companies out of 213 took in premium
approximating $36,8S6,0OO and that the
losses were S16.609, 900 the chief coun-
sci became enraged, asserting, "This is
the most lmpudent piece of business J
ever heard of. He admits his figures
are not complete and are only based
on opinion and knows nothing of the
companies Investments or returns"
The figures were ordered by Chairman
Lockwood stricken from the records.
Can Discipline Any Member
When Mr.. untermyer suggested. that
sae state should step in and assume
supervision over this rate fixing, Robb
said that would be burdensome and
unnecessary" Mr.. Untermyer insisted
mat so far as the law was concerned
the companies could get together any
time and double the rates without fear
Of penalty. In addition, he pointed out
mat the monopoly was nationwide and
heid the power 70 put out Of business
a. any moment any insurance firm that
onehded influential leaders of these
exchanges
He He further characterized the local
exchange as a vicious computation
which filled the State House at Albany
wlla lobbyists and obtained the pas.
ssage OF laws seriously against the pub
nc good 1t is understood that the
sestimony would be made the basis bv
me me committee for legislation providing
.or the disruption and control of such
e"rTn,anges as have pernicious features.
Inc exchanges related to the hous-
ing industry conducted by Ainsworth
sIe tne American Brass and Copper
se.atlstlcal Exchange, the Meter Manu-
lac1urers' Exchange, the Pipe Fittings
ana n Valve Manufacturers, the Range
poiler po manufacturers, the Abrasive
rpr raper and Cloth Manufacturers, the
ssteel Sash Manufacturers, the Steel
Locker Locker and Shelving, the Tubular
!rliumbing Goods and Tank Fittings and
.ne National Gas Appliance Manufac-
.uIers Exchange. The articles they
make include sandpaper used in finish
::ag hardwood floors, doors and panel
s.s! s.g' water meters, brass and copper
Sssungs' gas stoves, heaters, door and
snces. Npp'''
os sAinsworth refused to sign waiver
VI immunity from prosecution which
hm'gnt result from his testimony, and
r ue was ordered off the witness stand
oata aluderick II. Luhrs, his assistant, was
calied. and, although he refused to sign
ser waiver of immunity he was grilled and
A''eeo 70 give up most of the facts in
Continued on page four)
$25,OOO Left to Ovstevss