The New York herald., 1921-05-26
Lockwood Inquiry Exposes
Firm Grip Over Tile, Crate
and Mantel Industry in
the United States.
DROPS BUILDING PROBE
Committee Agrees to Swing
to New Course After Deal
ers Get Fines Instead
Of Jail Terms.
ATTACK MADE ON SWAMI
Stadtmuller, an Associate OF
Brindell, Convicted Of Ex-
tortion-Will Be Sem
fenced Tomorrow.

Developments yesterday in the
various phases OF the Lockwood com
mittee's investigation of the build,
ing trades situation in New York
City were:
Ten individuals and nine corpora.
tions, members Of the Association
OF Dealers in Masons' Building Ma
terials who pleaded guilty last week,
were fined by Justice Vernon NJ
Davis in the Supreme Court. The
fines we're from $500 to $3.50 each for
individuals and from $1,000 to $4,000
for corporations, a total Of more
than $4,000. At the same time Jus.
tice Davis made remarks Interpreted
as referring to Samuel Untermyer
when he said that certain persons
had tried to influence the decision
of the court. Mr.. Untermyer had
threatened to resign as special coun.
sci to the Committee unless guilty
material dealers were Jailed instead
Of fined.
BrIndeI Associate Convicted.
Peter Stadtmuller, principal asso-
ciate OF Robert B. Brindell, was con-
victed of extortion last night by jury
before Justice McAvoy Of the Supreme
Court, after deliberating for forty-flve
minutes. That is the same offence for
which Brindell is serving term In
Sing Sing. Stadtrnul,er will be SEN
fenced tomorrow.
After he had been informed Of the
action OF Justice Davis in inning the
individuals and corporations who
pleaded guilty, Mr.. Untermyer sug-
gested to the Lockwood committee that
there be no further investigation into
the various combines affecting the
building industry because Of the courte
imposing fines instead of tail SEN
tences. The recommendation was ac-
cepted and the inquiry will take a
new course to-day.
In whirlwind, driving finish, marked
by brief but positive summing up Of
the situation, coupled with a note o.
warning and suggestions for remedial
measures. Samuel Untsrmyer. volunteer
counsel TO tn. Lockwood Legislative
Committee. yesterday brought that part
or the investigation dealing with alleged
illegal combines to close. To-day tho
building investigate will proceed on
another tack.
Yesterdays session was replete with
senea tional testimony and statements.
Ii began with a vigorous attack upon
District Attorney Swami for failurs to
act, under the State antitrust laws.
against tho combinations that have been
under the committees fire. That attack
was In no way modified by the subse-
auent reputation by Joab Banton. Mr..
Swann's chief assistant, OF a suppos ID
newspaper interview, publication OF
which drew Mr. Untermyer's barrage Ct
criticism.
Revelation or Combines Methods.
Besides those features. the days rec
ord included exposure OF the operating
methods of the tile. CRATE and mantSl
combine. a revelation OF the scope and
firmness of its grip on the industry. and
OF the methods adopted to maintain that
grip secure. This combine, Mr.. Inter
myer believes, IS the most oppressive OF
all that have come under the commit
tees scrutiny because OF the thorough
ness or its organization and its intima e
relationship with the powerful brick
layers union and the various employers
associations.
~ a statement made at the conclusion
of yesterdays session Mr. tntermycr
suggested the suspension OF further Ia.
vestigation into ths various combines
affecting the building industry because
OF the action OF the courts in imposing <
only fines against the most persistent
ard defiant offenders"
Before he made his statement the com.
nittee's counsel had been informed Of
tho fines imposed on those defendant,
who pleaded guilty to violations OF tn,
Etate antitrust laws In the light Of the
recent action OF the courts. Mr.. Inter
myer said, further investigation SHOULD
be held up until such remedial Legislation
as might be required could be enacted
lie added that there were subjects and
phases Or the building situation OF euua
" not greater Importance to be taken up
and said that until the committee was III
a position to present comprehensive suR-
gestions for drastic Federal and Stat,
supervision of trade associations publ,
authorities should be warned to kee,
close watch on those whose activitie,
have been the subject OF inquiry.
Cancer Upon Building Trades.
II Is no longer question, he said, oi
which Industries are controlled through
combination but Of which are not.
- have been unable to discover" Mr.
Untermyer continued, "a single article
that enters into building construction
that is not the subject Of combination
and have every reason to believe tha
this is true or AT least one-half or all tn,
Continued or THIRD Page.