The New York herald., 1921-05-19
Need OF Special Session.

In his recommendations to the com
mittee concerning a special session Mr.
Untermyer called specific attention TO
the building material cases which came
up before Justice DAVIS on Monday and
declared that the building material
cases were among the most aggravatiug
that had been developed by the COM
mittee.
"They were open. fragrant, persistent,
long continued violations OF the law"
he said
He then urged the committee TO take
up with the Governor the matter of 2
special session to amend the laws, and
referred also to other legislation which
he thought would be necessary to aid
the committees work and enforce its
findings. This includes provision that
will permit the city, IN cases where
original contractors on city work de-
fault, to take over the subcontracts and
thus avoid being victimized by pyra-
miding of prices as was shown last week
In the case of the Cumberland Street
Hospital. which Is TO cost the city $780,
900 more than was intended
The examination os President Nc
Laury, of the Mosaic Employers Asso-
citation and the disclosures relating to
that organization in many respects were
the HlOSl SeHSdlloldl sllCt Tue cOHlillit-
tee resumed its activities. McLaury put
in a most uncomfortable two hours and
a half
The most startling bit of testimony
adduced through McLaury concerned the
working plan" and price reporting"
scheme of the organization. This pro-
vided scale Of $11 day for tile set
ter and 50 for helper, with an addi-
tional 10 per cent to be charged the
builder for overhead. II also provided
that each member should file all bids,
tentative offerings terms, &c, sub
mitted TO prospective customers, with
the secretary and that this information
should be interchangeable among men,
bers. 1t also provided that no member
of the association would accept a con-
tract from a builder who was in dispute
with another member or who had a con-
tract with another member without the
written consent of the latter.
Mr.. McLaury at first refused to
Identify the documept shown him as
what Mr. Untermyer said it purported to
be. Finally. on being pressed to ex-
anime 1t, he admitted 1T for what it was,
but was not sure that 1t ever had been
adopted. Mr. Brennan handed Mr..
Untermyer the minutes Of the meeting
at which it was adopted. but the witness
tOuiu not recall tIldI ne ndu DGeH present
at that particular meeting.
We'll let's see." said Mr.. Untermyer
That was the meeting at which you
were elected president of the association.
Does that refresh your reconection?"
The witness admitted that II did and
\ that he voted for the adoption of the
! plan. Then Mr.. Untermyer confronted
1 him with the letter OF the attorneys in
which the organization was advised
against such procedure and cautioned
that no subterfuge or artifice adopted
would relieve the members of completely
il they actually engaged In price fixing
In reply to question the witness
McLaury told Mr.. Untermyer that no
committee OF the mosaic employers had
ever been appointed to fix or revise
prices.
Mr., Untermyer produced a copy of a
report of the adjustment committee" Of
the organization, dated December, 1919.
showing a comprehensive schedule OF
prices on a cost plus SO 1-3 per cent.
basis for such material as wire mesh
and tar paper. together with copies of
the minutes showing the adoption of the
report
How dare you sit there and tell this
committee that your organization had
no price fixing committee?' thundered
the lawyer. The witness excused himself
on the ground Of his poor memory"
You know that that's a damaging
document. don't your asked Mr.. Inter
myer. waving the report In front of the
witness.
i would say So" McLaury replied
half inaudibly.