Evening star., 1922-01-06
Investigator for Senator Un-
covers Apparent Criminal
Conspiracy.
COMBINE OF MATERIAL
MEN AND BUILDERS SEEN
Unions Throttle Labor Market
Probe Indicates, King Tells
U. S. Attorney.

Existence OF criminal conspiracy
among the labor element and build
ers and building material men in the
District of Columbia, which tends TO
keep up high costs prevailing in the
building industry here has become
apparent in the course of prelimi-
nary investigation made of this situa-
tion here by a prominent local at
torney for Senator King Of Utah. the
latter made it known today for the
first time.
Senator King declined to make
known for publication the name or
the man who had made the inVesti-
CATION, but he said that the informa-
ton obtained indicated to him that
grand jury Investigation of conditions
here might bring out facts and con-
ditions as startling as those exposed
by the Lockwood investigating com.
,nittee in New York and the grand
jury nvestie4tion of the building in
dustry in Chicago.
Senator King today in letter sug-
Eested to United States District Al
torney Peyton Gordon that grand
jury investigation be instituted. He
said his information was that the
prices of brick and lumber and prac-
tically all articles employed in the
construction of buildings. including
interior fixtures, are SO high as TO
indicate to him combinations criminal
in character.
Price Up 200 Per Cent.
Many people. among them govern
ment officials, have besieged Senator
King to aid them in getting some re-
ief hot he hnl To q
warrantable prices for construction
and materials used in building. He
made 1t known that the prices being
exacted today for building was keep
ing many homes from being erected
in Washington at this time.
He cited the case of one high Of
fetal in the government whose name
was withheld from pubiicatfon, who
wanted to erect a house which at pre-
war prices should cost but $4,000
The price asked by the builders to
put up this building was $4,000. an
increase Of 200 per cent. Thi S case in
particular was cited as one of those
which indicated criminal conspiracy.
The investigation by the local at
said. information that the labor
unions here were to some extent
throttling the labor market by ex-
cluding from it certain people. par
ticularly boys. The investigation
also showed. according to Senator
King. the existence to some extent of
a conspiracy between the builders
in the District and those in nearby
Maryland to maintain prices. The
investigator for Senator King re-
ported that while the conspiracies
were apparent, it was difficult for
1, IN, hi NAy yn Nv tn nh in
the specific evidence on which to
base a case.
Senator King. therefore. decided to
suggest to Maj. Gordon the impera-
tive need of an investigation of the
building industry.
His letter sent today follows:
You are doubtless familiar with
the investigation being conducted by
the Lockwood committee in New York
in regard to the combination on the
part of material men, contractors and
builders and certain labor leaders.
existence of criminal conspiracy.
which have resulted in robbing the
people and interfering with the con-
struction of imperatively needed
building. The investigation in Chi
cago. made by the grand jury, reveal
Believes Probe Warranted.
Not only have there been con-
spiracies and combinations by many
builders, contractors and material
men, but trusts and combinations
have been perniciously active in con-
trolling commodities. particularly such
as enter into the lives of the
people. Complaints have been made
concerning agreements upon the part
of retailers to fix prices and prevent
competition.
II beliave that conditions in the
District are such as to warrant an
investigation by the proper officials of
the government, or by grand jury,
to determine whether or not COM
bin.tions exist for the purpose of
controlling prices, and prevent legiti-
mate and fair competition. There
certainly is no reason why the prices
of many commodities should reach
the high level which now prevail,
and. in my opinion. there is no justi-
fication for the great advance over
pre-war prices in building materials.
According to the information which
I have, the prices of brick and lumber
and substantially all articles en-
ployed in the construction of build
ings, including interior fixtures, ETC.,
are entirely too high. 1t would seem
that only through combinations,
criminal in character, could the in
crdinately high price levels be main
tanned.
..The District is greatly in need of
additional school buildings. and it
will require millions of dollars to
provide an adequate number. Owing
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