The evening world., 1921-01-18
SAND AND GRAVEL
COMBINE IS FINED
S4O,OOOBYCOURT
Punishment Under Sherman
Law Outcome of Lockwood
Investigation.

Four sand and gravel companies
and eleven individuals, indicted as
a result OF the Lockwood Committee
housing investigation, pleaded guilty
before United States District Judge
Learned Hand TO violation OF the
Sherman antitrust law to-day and
were fined n total OF $40, 900. BY ar
ranEement between counsel the de-
PENDANTS also consented to a decree
diSOlving the Sand and Gravel
Board Of Trade. which, II was
charged. controlled an absolute
monopoly in these commodities in
New York.
Those fined and the amounts fol-
low; observation-disclosures Sand and
Gravel Corporation. 5000: Manhat-
tan Sand Company, Inc, 5000,
Lenox sand and Gravel Company,
Inc, 5000; Colonial Sand and Stone
Company Inc, 5000: John, ]. Gal
iasher, Vice President of the Man
haitian and tho Goodwin Gallagher
Companies, 5000: Peter c. Gala
CHER, Treasurer of the Goodwin Gal
lagher and the Lenox Companies,
81, 900; Frank Gallagher, Secretary Of
the Goodwin Gallagher Company and
Assistant Treasurer OF the Manhat-
tan Company, 5000; Joseph Gala
CHER. Secretary and Treasurer OF the
Manhattan Company. $1,000: William
Naboncy, President OF the LenoK
Company, $500; Richard A. ScaDlon.
Secretary OF the LenoK Company,
$1,000; Frank ROwSey, Manager Of
Manhattan Company, $500; Eugene
Clark, Executive Sccretaryiand Man
ager OF the Sand and Gravel Board
Of Trade, $1,000: Lawrence Ruck-
eyser, President OF the Colonial Com
pany, $500; Thomas Lanigan Of
Lanigan Brothers, R1,5OO; Martin
$1,000.
The men paid the fines in the
United States District Court imme-
daately after the imposition Of SEN
tence.
In explaining the imposition Of
fines instead OF jail sentences Judge
Hand said:
80 far as the United States Court
is concerned, this is largely in the ma
ture of a technical violation of the
law, since there were only a few in
terstate shipments which give this
court jurisdiction in the case. am
not disposed 20 treat the violations as
severely as would II they had inter-
fered substantially with interstate
commerce"
The indictments, returned Dec. 80,
charged that prior to 1914 there was
free competition in New York in sand
and gravel. but that by June, 1919,
when the Sand and Gravel Board OF
Trade was organized, competition had
been completely eliminated, the cost
OF sand having been boosted mean
while from $3.50 to S3.75 a cubic yard.
The prosecution OF the case was
prepared by, Special Assistant Attor-
ney General Joseph Kaufman, who
was appointed to handle the Federal
cases growing out OF the Lockwood
investigation. He and Assistant
United States Attorney Henry A.
Cutler were prepared to proceed with
trial of the case this morning when
the defendants entered their pleas OF
guilty. The defendants were repre-
scented in court by eX- Senator Edgar
Il. Bracket of Saratoga Springs, Al
fred d. Lind and William ]. Martin.
This was tho first punishment
meted out in the Federal Courts
growing out OF the Lockwood inves-
tigation. There was no precedent, II
was said at the Federal Building;
for in the thirty years the Sherman
Law has been on the tatute books
there has been only one criminal
conviction under it, this being in the
case OF John II. Patterson, head OF
the National Cash Register Company.
His conviction was upset by the
United States Supreme Court.
XNE TC QTTTED