The New York herald., 1921-06-16
INDICT HEADS OF
BUFFALO BRICK ring
Untermyer Halts Hearing,
Feeling Enough Evidence
Is Revealed.
GIRL TELLS OF PLOTS
Shows How Prices Were
Fixed After Plants Were
Strapped.
NEW LEADS OBTAINED
Prominent Men Refuse to Sign
Immunity Waivers as Evi-
dence Piles Up.
NEW LEADS OBTAINED

BUFFALO, June 15.-The Lockwood
legislative committees investigation
into the local brick combination that
it Is alleged has operated to maintains
the price of brick at prohibitive fig
ure came to AN abrupt halt early this
afternoon when at the suggestion of
Samuel ,Untermyer the record OF the
investigation was transmitted to the
District Attorney of Erie county for
official action.
I'm the opinion of counsel" said Mr..
untermyer, 'the record discloses a
clear case of criminal conspiracy"
This move was made after confer
ence between Mr. untermyer and Guy
T.. Moore. District Attorney, after which
announcement was made that John Fl.
Black. head of one of the largest brick
concerns here, who was under subpoena
and who had refused to waive immunity,
had been relieved of duty as foreman
of the June Grand Jury.
Mr.. Untermcyer crowded one sensation
after another into long days record
sation was concerning what the next
move would be in situation in which a
couple of dozen OF this city's best known
business men are involved Not one OF
the eight men whom Mr.. Untermyer
called yesterday and instructed to obtain
legal advice on the wisdom of their
signing prosecution waivers came back
ready to do so. In addition, a half
dozen more refused. while the lawyer
was compellen to take the testimony of
two or three of the less prominent fig
ures to complete the record
FIX Prices In state.
During the course OF the inquiry Mr..
Untermyer brought out that the local
organization OF dealers in building ma
terials. acting through State asso-
citation, virtually fix and control the
prices of building materials for the
whole State of New York. except New
York city.
The price fixing activities were
brought out through the testimony of
seventeen-year-old Irene Collen, ste
nographer employed by Harry Brokus.
81 former secretary OF the organization
Haltingly and timidly the girl told how
her employer. another OF those who re-
fused to sign waiver. used the tele-
phone to summon other members TO
regular weekly meetings "to discuss and
fix prices
y brief summary OF the other out
standing developments of the day in
cludcs evidence showing that, while the
Buffalo manufacturers had plenty Of
brick. they never invaded the territory
of the Hudson Valley companies.
Sand and Gravel Combine.
Still another development was proof
OF the existence OF as rockribbed COM
bination controllins- the sand and
gravel market as anything the commits
sion has exposed in New York
This was brought out through the
testimony OF Reuben j. Eberle. general
superintendent of the Buffalo Gravel
Corporation. an institution t3at mines
no gravel or sand. but which takes the
entire output of the four principal pro-
ducing conccrns--the Empire Limestone
Company. the Niagara Sand and Gravel
Company. the Perry Victoria Sand Com
pany and the Sauaw Island Sand Com
pany. The Buffalo Gravel Corporation
is headed by David Hyman. who also
declined TO sign a waiver. 1t PAYS a
per cent dividend on $500. 600 pre-
fcrred stock. and the $4,000 common
FNcNh 10 diNIdtu dinOTS t1t TOUR COM
panics whose product il takes. Prices
In all cases were fixed by Mr. Hyman.
according to Mr. E,berle's testimony.
Mr.. Untermyer wanted the witness to
tell the commission what the idea was
OF organizing In the way shown. The
witness did not know.
Wasn't it to wipe out competition %
Mr. Untermyer asked.
The witness would not admit this to
be tho fact.
by way of relieving the monotony Mr..
Untermyer introduced witness whose
testimony may Indicate another line the
commission will follow here.
lie was Edward 5. FRANKIE. a pumber.
but his testimony. which was brief. III
not bear on the plumbing situation.
FRANKIE put a piece OF plate glass In his
store front i'm 1915 II cost him $40. and
foi' the first three years he paid 500
annual insurance premium. In 1919 the
rate had risen TO sli.66. but this year he
paid sf2.2T for the same protection