The New York herald., 1921-01-07
PALMER OPENS BIG
GOUGERS QUEST IN
BUILDING TRADES
Attorney-General Gives In
limited Powers to Rand
and Kresel.
STARTS IN NEW YORK
Special Federal Grand jury
to Hear Charges Against
Contractors.
BRINDELL STILL UNTRIED
Labor Union Not on Trial,
Says Justice Who Stops
Abusing of Law.
BRINDELL STILL UNTRIED

Full authority for nationwide in
vestigation OF the building trades
situation has been vested by Attorney
General A. Mitchell Palmer in William
Rand and Isidore J. Kresel, who were
appointed on Tuesday to undertake a
Federal inquiry along the lines that
have been followed by the Lockwood
legislative committee in its sensa-
tional public hearings here.
The Federal investigation it was
announced yesterday. will supersede
Immediately the building trades in
quiry which was started under the
supervision Of United States Attorney
Francis G.. Caffey. and which has re-
suited to date in fling of indictments
against ffteeh individuals and corpo-
rations.
The inquiry Is expected to open in
this city. but ultimately to stretch
across the continent.l and it was said
that in all probability it will continue
for Mt least a year, because of the
vastness of the proposition to be
! tackled. The first step will be to sum
mon a special Federal Grand Jury In
this district to hear evidence against
alleged unlawful combinations.
As means of laying foundation Tor
the fullest cooperation between the Fed
eral and State investigators OF the
building trades. Mr.. Kresel conferred
last night with Samuel Untermyer, chief
counsel to the Lockwood committee, who
is known to be heartily in favor Of the
Federal move.
Scope of Inquiry Is Broad.
At the Offices Of Jerome Rand a
KreseI. 81 Wall street, of which firm
both Mr. Rand and Mr.. Kresel are
members. they issued a formal state
ment which said:
I'VE have accepted designations from,
the Attorney General to represent him
! In the conduct of such Investigations
prosecutions and dissolution suits as
NAV be appropriate to violations of ths
sherman law by persons. and corpora
,ions connected with the building busi-
ness as manufacturers agents and deal
ers in material.
"He has placed at our disposal all OF
the facilities of the Department of Jus
tice and has promised such additional
assistance as In our Judgment the prog
ress of our work may require. The scope
of our authority is nationwide, and our
instructions are to get at the facts and
punish or remedy violations Of the law
wherever and by whomever committed.
"We have no reason to doubt that we
shall receive the cordial cooperation OF
the gentlemen conducting the building
trades inquiry before the Lockwood
committee and the criminal proceedings
in this state and county. We shall in
tNrn be glad to render them any as
sistance in our power"
Persons connected with the housing
inquiry expressed the opinion yesterday
that the passing of Attorney General
Palmer with the retiring Democratic
Administration would have no effect
upon the work to which Mr.. Rand ana
Mr.. Kresel have been assigned, because
Investigations begun prior to a change
of administration invariably are con-
tnued by the succeeding Attorney-Gen-
eraL
The investigation conducted by the
local United States Attorneys Office has
been limited to the Southern District OF
New York. and no pretence has been