New-York tribune., 1921-02-11
Hettrick Code
Barred ait rial
BY Contributor
Gibson Tessifies He Paid
S25O as Limitation Fee"
to Join Circle of Plumb
ers ss'Protected' 'by Scheme
Bookkeeper Depicts Plan
Says Tab Was Kept ON All
Earnings and Work APP
porsioned ON That Basis

Revelations as TO the origin and
operation of the group of plumbing
contractors in John r. Hettrick's "code
of practice" scheme of alleged collu-
sive bidding, were made yesterday by
two witnesses for the prosecution in
the trial before Supreme Court Justice
McAvoy. So.
Hettrjck, q, lawyer, and originator of
the "eode OF practice" with three CO.
defendants, who represent union plumb
ers and plumbing contractors, are
charged with conspiring to force out
side contractors to participate in their
scheme. y
George E. Gibson, president of the
George f. Gibson Company, testified
how, few days before October 2,
1919, Herbert Smith, a plumbing con-
tractor on trial with Hettrick, told
him lit would be to his interests to
go down and see Hettrick"
He said he visited Hettrick in his
office at los Broadway, and during
half-hour's conversation, Hettrick, he
testified, laid to him, ~ represent the
plumbers and it will oe a good thing
for you to join the circle of plumbers
working under the code of practice >"
System to StiHle Building
Gibson further testifiei that Het-
trick explained to him that it was
an association to eliminate competition
and cut t-throat bidding.
Its time" he said Hettrick told him,
that this hawking and peddling of
bids by contractors was stopped" He
added that Hettrick asked him to sub
NIT report of his business for the
last seven years so that he could ar
rive at yearly average for each con-
tractor in the group.
Letters and q check were introduced
as evidence. supporting to show that
Gibson paid Hettrick $3.50 upon being
admitted into the group. The prosecu
ton cal ed this an limitation fee,'
while the defendants counsel called it
retaining fee" The check was dated
October 3, 1919
Detailed testimony on the operator
OF the Hettrick scheme was given BY
Edward F. Dean, of Brooklyn, who was
a bookke per in Hettrick's office. Dear
id ,ntified record and distribution sheets
on which tee contractors subscribing
TO the system were indicated by num-
bers. only. The introduction of these
Sheets by Kenneth M Spence who with
Henry l., Stimson, former Secretary OF
Var, is conducting the prosecution, was
tn cause OF a great DIAL of legal wran.
Cling between The lawyers.
1t was claimed that the documents
were secret matters between client anc
unSel |na th & one H.- aa.aisSt-
Justice McAvoy overruled these obiec
ti5ns on the ground that the matter
was offered IN proof of crime.
Kept Line on Thirty Plumbers
So
from Hettrick he compiled statistics
on the business done by all the mem.
bers for the last seven years, prior to
April, 1919, and calculated the percent.
age Of the gross business done by each
He said he kept the accounts of about
thirty plumbers. The percentage ar
rived at, he said, was used by Hettrick
in apportioning new business under the
"code Of practice"
He added that monthly blanks were
sent, from Hettrick's Office to each OF
tractors filed in the amount of the
work done by them for the month amd
returned them for recording in Het.
tricks books.
Dean said Hettrick made charge OF
per cent on the total amount Of work
cone by each contractor; that 1 pei
cent he retained for himself and the
other 3 per cent went into an 'insur.
ance fund" which was distributed al
the end of the year among those con
tractors who did not get their average
amount of business.
Some firms. the records show, were
permitted for some reason to go fan
beyond their allotted business. The
Alexander Bryant Company, for in
stance the sheets show, did $271 ,64e
worth of business. This was $201, ,76(
over the firms allotment.
The trial vii be continued to-day.