The New York herald., 1921-04-28
Director Of 13 Exchanges
Refuses to Waive Immu-
nifty at Inquiry and Is
Not Examined.
GETS s48, 900 A YEAR PAY
Existence Of System Govern
ing Bids Shown at Lockwood
Hearing--Fire Risk Com
bine Is Admitted.

That the country IS honeycombed
with so-called open price associations,
which, in reality. are nothing less than
combinations to maintain prices at
certain levels in violation Of the Sher-
man act, was asserted yesterday by
Samuel Untermyer, counsel for the
Lockwood legislative committee, at the
end Of the second day Of it's resumed
inquiry.
Mr.. Untermyer further declared that
SO far he was only skirting the fringe
Of an exposure Of conditions which. he
said, would make John 7. Hettrick.
author Of the famous code of prac-
on Blackwells Island. look like a
pileer" compared with other men in the
building trades.
While yesterdays session OF the In
auiry did not disclose an instance
where bids or quotations were raised
after comparison with the figures of
other bidders, it did reveal the exist
ence Of comprehensive system of ex-
changes whereby members are kept in
intimate touch not only with quota
tons and bids made by competitors,
but also with information concerning
the stock and supply OF practically
every commodity involved.
Inquiry ON Housing Lines.
Mr. Untermyer had intended to de-
veIop bis most important Testimony
along these new lines from Albert A.
Ainsworth who as A. A. Ainsworth.
Inc, 522 Fifth avenue. is secretary and
director Of thirteen exchanges, In nine
of which the members are manufacturers
or dealers in material that Is an impor-
tant factor in housing construction. The
ramihcations of the system, Mr.. Inter
myer sad, were many. but for the pres
ent he 10 concerning himself only with
those affecting housing.
Mr.. Ainsworth was present In re-
sponss to subpoena and took with him
many OF the records Of his Office and
files OF the various exchanges under
scrutiny. He refused. however. 10 waive
immunity from possible criminal prose-
cution as result Of what testimony he
might give. and in view OF this refusal
MI. utGlntu 10 examine MN
and pvt on the stand Ainsworth's as
sistant, Frederick II. Loehrs. who also
refused TO waive immunity.
Through Loehrs Mr.. Uutermyer
brought out that Ainsworth drew a sal
ary Of $4,000 a year as secretary Of
thirteen exchanges. which are conducted
st an annual cost of about 5000, 900 a
year. Nine Of these, It was shown. oper-
ate to disseminate information concern
Ing the market in housing materials.
They ar. the American Brass and Cop
per Exchange, the Meter Manufacturers.
Pipe Fittings and Valves. Range Boiler
Exchange. Abrasive Paper and Cloth
Manufacturers Exchange. Steel Sash
Manufacturers. Steel Locker and Shelv-
ing Exchange. Tube Plumbing Goods and
Tank Fittings Exchange and the Ma
tional Gas Appliance Manufacturers Ex-
change.
McKercher In Organization.
In addition to Mr.. Ainsworth. Mr..
Untermyer learned there IL connected
with the organization Clark McKercher,
who was Deputy Attorney General un-
der Attorney General wickersham. one
tempted to show was to edit the minutes
OF the meetings OF the exchanges before
they were sent out through the mails to
member concerns.
Loehrs said he had been associated
with Mr.. Ainsworth six or seven years
Ho maintained. however. that he did not
know what use the members made OF
eiaborately tabulated Information that
GENT n1anlhNra In
changes at the end OF every business
day, concerning the activities OF all
other members. Ho would not admit II
was for purposes of price fixing. even
when the committees counsel showed
that price reductions or advances were
communicated to Ainsworth by tele-
graph as soon as put into effect by any
member and Immediately thereafter
communicated In a bulletin to all other
members
In some respects the method OF tabu-
laung the Information was reminiscent
Of the Hettrick code OF practice" Va
rious colored charts were used for the
different exchanges Mr.. Untermyer at
one stage referred TO one Of the charts
rs canary colored." and was corrected
by the witness, who said that was the
golden rod chart
'Ah. see.' said Mr.. Untermyer. you
use the national flower for this particu-
lar line. Very appropriate r.
II was also developed that Secretary
Ainsworth had arranged a system OF
key numbers opposite the name OF MEM
bar firms of the various exchanges. BY
mrs means. Loehrs admitted. communi-
cations could pass that would be unin-
tellisible TO any save a member OF the
organization
Mr.. Untermyer went into the scope OF