New-York tribune., 1921-12-08
Conspiracy to Extort Cash
and Larceny Revealed
by Probe of Building
Trades, Says Untermyer
Hint of Huge Sums
Involved i'm Charge
A. f. of L. Powerless to
End Abuse, Says Frayne;
Strike Threat Jan. /

@1i'ei oHly IWo SeSSlOnS OIL Lne LOCK
wood committee investigating the hous-
ing situation, Samuel Untcrmyer, chief
counsel, announced yesterday that suf-
ficient evidence Of criminality had been
established to warrant the attention of
a grand jury He asserted that the tes-
timony showed conspiracy to extort
money and grand larceny.
Mr.. Untermyer pointed particularly
to the financial operations of certain
officials of Local No. Of the Interna-
tional Brotherhood of Electrical Work
ers, saying he would ask the presiding
justice of the Appellate Division to ap-
point special grand jury to take ac-
tion on the case.
"It is little more complicated than
would appear on the surface said the
counsel. eve think there are two dis
tinct offenses. One is conspiracy to
extort money through this permit sys-
tenn. I do not think that organized la
Dor of this city will stand minute for
doing in keeping down their member
ship, sitting there and requiring men
to pay tribute to them for the privilege
of working.
Hint of Huge Theft
THE other offense which think is
disclosed by the evidence we have is
that OF grand larceny on very much
bigger scale than we had supposed. I
do not think it is advisable to go into
any further proof here, so we will sus-
pend that If it is agreeable to the COM
mrlttee and ask for a grand Jury to
investigate all those transactions"
1t had been brought out in the course
OF the testimony that while $3.50, 900 a
year rolled into the Golfers of the elec-
trlcal workers union from the sale of
permit cards to non-uniorf workers no
books worth the name were kept on the
subject and no accounting of what hap
pened to the money could be obtained
from the organizations officials. Will
liam A. Hogan, the financial secretary
and the reputed guiding spirit of the
union, had the receipt and disposal of
the funds under his care. Hogan has
been charged with having appropriated
death benefits of deceased members
that should have gone to members
relatives.
In. this connection Chairman Lock-
wood pointed out at yesterdays hear
ing. that in the case of Mrs. James E.
Smith, widow of a deceased member.
she s did not have shoes and other ar
ticles of clothing and had to borrow
these from neighbors to be able to at-
tend the hearings as witness. Mr..
Untermyer said he understood that
hogan had agreed to return $3.50 to
Mrs. Smith within twenty -four hours
hut that he had made no agreement as
to the other cases.
Other Sad Cases Cited
This is not the only sad case that
has been brought to our attention" re-
marked the chief counsel.
Hugh Frayne, the New York renre-
sentative of the American Federation
OF Labor, was called to the stand To
indicate if the American Federation of
Labor approved of the various abuses
of certain labor unions as testified to
by several witnesses, which it was
shown had much to do with keeping
up the price of building construction.
Mr.. Frayne said that with reference
to the activities of the electrical and
plasterers organizations, the Ame rican
Federation of Labor was practically
powerless to take any official action
with a view to eliminating the abuses.
He said the federation had power to
deal with the problem only where
unions involved had direct charters
from the federation, but where these
were affiliated with internationals moth
ing could be done by the federation
directly or indirectly.
suasion," remarked Mr.. Frayne. ''' a.
The labor leader then said that the
policy Of the federation was opposed
to the practice of limiting membership
and demanding large sums of money
icontfnIIsd nm mana faueA