New-York tribune., 1921-05-11
lockwood Inquiry Shows
Contract Manipulation
Jumped the Price From
$4,000 to $685. 900
z More Combines
Smashed by Probe
Frank S. Hanley, Alleged
Hettrick Rival, AM
nounc Dissolution

Ths city government again was re-
,.aled as the victim of scheming con-
.,.etors in testimony before the Lock
vsod committee on housing yesterday.
Az the result of manipulation Incl
ssnt 10 an abandoned contract, the
department of Charities is paying
1858 1000 to complete the Cumberland
street Hospital in Brooklyn, for which
The full original contract price was
s557ooo and which was 6S per cent
suishad when the contract was aban-
dcned. The cost of the uncompletsd
ss per cent of the hospital, for which
the city has been forced to pay $685., 900,
ass originally estimated at S219,00o.
Three Combines Smashed
The Federal authorities Jared some
shat better, having been able to cir
camyent the eollusive bidding opera
toas Of the now famous John T. Het-
trick "code Of practice" plumbing ring
snd have its work done on naval bar
racks in Brooklyn during war time at
a reasonable figure. Efforts by the
naval authorities to have the PLUMBING
rng prosecuted in the United States
Court here, however, were fruitless,
according to the testimony of wit
nesses.
The committee added the smashing of
another group OF combines to its list
With the declaration of Frank S. Han
ley that the three big combines with
which ne had been affiliated would dis
solve at once. as far as he was con-
cerned. The operations of Hanley, who
had an office at 261 Broadway, were
declared by Samuel Untermyer, chief
counsel 70 the Lockwood committee, TO
make Hettrick look like a "piker.p
haRley yesterday said that he would
withdraw from the National Committee
Of Confederated Supply Associations
and the Greater New York Association
Of Jobbers in Plumbing and Steam
Heating Supplies and would urge the
immediate aband onment of both these
bodies 1t was stipulated that the
eastern Supply Association might con-
t!nae as credit bureau.
Il was suggested by Mr.. Untermyer
that a subcommittee of the Lockwood
committee go to Buffalo on Nav % to
,ass evidence on alleged illegal build
ing contractors organizations there.
sifh Leonard NJ. Wailstein as counsel.
Mr. untermyer said he wanted to be
ifee here TO go into the fire insurance
crowd, which he characterized as run
MHg "hopeless, impossible reign OF
monopoly and despotism," necessitat-
ing curbing legislation.
Further light on the hand -in-glove
operations of the Master Plumbers AS
s9c!ation and the Journeymen Plumb
efs Union in keeping cheaper products
cut OF the city was revealed in the
s'efy OF the efforts of a Cleveland
ilFnl 10 get a cheaper washbowl into
houses here.
Hospital Scandal
The testimony surrounding the Cum
farland Street Hospital scandal was not
Completed when halt was called on
me hearing in City Hall yesterday af-
ssraoon. 1t appears from the record
snet albert Winternitz, builder of 644
riverside Drive, was awarded q contract
On September 20, 1917. to build the
cumberland Street Hospital, in Brook
Hh, Tor the Department of Charities
and Correction. The contract price
vas S557000 Winternitz at the time
mrnished bond of $125, 900 to assure
performance of the agreement.
> Vn November 20, 1918, the Acting
commissioner of Charities, Stephen A.
n.,agent, served notice on Winternitz of
ae aorogation of the contract because
:, !. unnecessary and unreasonable de-
;ays. Winternitz, it developed, went
sas9 bankruptcy. He said that the
so5k was about SIS per cent completed
~ - the time, while John J. Kerrigan,
s,srx .,s from the Comptroiler's office, de-
Jared that the cost of the unfinished
paiI i OF the building had been estimated
u M sne original contract at $4,000.
1ne city readvertised for bids and re-
rEs'seo five estimates. The George Dose
VTl;glheerlng Company, S745,333; A. w.
asag q Co., S675,978; w. Weiner En-
ss.neeNng Company. $71T,e71; the
;i;sasrson ;ssta S Company, $713, 900, and the
i..,' ii.ssn street Construction Company, the
O@sst .ss bidder, s663 GOO.
), 10 YOU mean to sav.s asked Mr.
vs,s vvrssfmyer m Of Kerrigan, "that these
ina bs.s sae bids merely to put the finish
~ aS souehes to a job that was to cost in
~, W. s9oi,1Uo and Of which 65 per cent
Yes"
!. Aerrigan said the contract was let
ssa. q Ine me l74th Street company for
,,,s, 90 that, as | understand it.n re.
A'atAeo Mr. Untermyer, "the city ac-
tcontsued on pass four)