The New York herald., 1922-04-11
CEMENT CONTRACTS
UPHELD BY WOMAN
Were Signed Before Associa-
tion Got Them, Says Miss
Phalen, It's Secretary.

restifying that no reports on contracts
made by members OF the alleged cement
trust were sent to the Cement Manu-
facturers Protective Association until
such contracts had been closed. and that
shipments of large quantities of cement
were made by manufacturers for their
competitors. Miss Mary Phalen, secre-
tary of the association, continued yes
terday to explain some of the workings
OF the association III the Sherman law
case started by the Government against
the indicted cement men. The trial was
before Judge Knox in United States Dis
trict Court.
James A. Fowler, special assistant to
the Attorney General. questioned Miss
Phalen regarding the shipment In 1919
of large quantities of cement made by
seven of the nineteen companies in the
association. These shipments, according
to the testimony, were on the account of
other competitors. Henry l.. Stimson of
counsel for the defense objected that
these shipments were small in compari
son with the total volume Of business
and that much of 1t was for the account
of factory shut down by the Govern
ment.
Particular emphasis was laid on the
fact that the Federal Trade Commits
sion was on the regular mailing list of
the association and received copies of
reports. statistics and data on business
conditions. stock on hand. and the min
utes Of the meetings of the association,
as did member companies Of that organ
ization.
Miss Phalens testimony was in four
parts-credit information, issuance Of
freight rate books. data on cement
stocks on hand and information on spe-
cific job contracts. Several cement conf
panies not members of the association,
got the credit information, said Miss
Phalen, and the freight rate books had
a most extensive circulation among out
side manufacturers. Among those who
received the books were the New York
State Highways Commission and other
large consumers Of cement, asserted the
witness.
The witness insisted that as no re-
ports concerning contracts for cement
on specific jobs was made to the asso-
citation until the contract was closed
and signed. the association could not
distribute this information until the con-
tracts were signed. Archibald Cox. Oh
counsel for the defense, contended that
the acceptance of orders without inves-
tigation or inspection would result in
the cement mills attempting to produce
millions of barrels Of cement in excess
Of the possible consumption.
Miss Phalen testified that this condi-
ton was brought about first by the du-
plication of inquiries from dealers bid
ding on the same construction work and
secondly by the placing of orders much
larger than the proposed construction
required. The first practice the associa
ton sought to stop by the exchange OF
information on the specific work con-
tracts and the second by having it's own
inspectors estimate the quantity OF
cement required for given piece OF
work.
Miss Phalen said that in one year it
was found that orders for 200, 900 bar
res of cement had been duplicated and
that 100000 barrels had been ordered
from the mills In excess of the require
ments.
Mr. Cox sought TO show that the Fed
eral Trade Commission had made no
objection to the practices OF the asso-
citation, although it had complete state
ments of the activities in letters fur
nished it in December. 1917.
The trial will be continued this morn
ing.