Evening star., 1922-01-17
j, s. PROBE BEGUN
INTO ALLEGED D. c.
BUILDING COMBINE
Action Taken by Maj. Gordon;
Following Conference With
Senator King.
CHARGE PRICE FIXING
HAS KEPT COSTS HIGH
Prosecutions Promised-Supposed
Profteering Barred Through Delay
in School Program

A thorough investigator into al
legged profiteering and 1'price-fixine
combines which. it is charged. have
resulted in maintaining the cost Of
building here at a high figure, will bs
instituted at once by Maj. Peytor
Gordon. United st,ltes attorney fol
the District of Columbia.
This was promised to Senator Kins
of Utah. member of the Joint con-
gressional coyhmittee Investigating
school conditions here. by Maj. Cor.
don at a conference last night. Mr.
Gordon informed Senator King thai
he would put the operatives attached
TO HIS Office at work Immediately tG
develop all the evidence possible
pointing 10 collusion among builders
and building material men. which, I,
the cost of erecting buildings In this
city at a highly inflated mark.
Senator Presents Evidence.
Senator King laid before Mai. Cor.
don certain evidence which he had
caused to be collected and which in.
dicated on the surface. the senator
recently announced. the prevalence e1
such combines here. but was not suf-
ficient to institute legal proceedings
until additional facts were obtained
The office Of the district attorney
Senator King asserted. with It's force
of investigators, Is in position &c
get the necessary evidence on which
It can take cases before the grand
jury and into the courts
Investigators of the district attor.
ney's office now are gathering evil
recent raise in the price Of bread
here, with a view to developing facts
II show the existence OF combine
Maj. Gordon informed Senator King
This investigation is being pushed
TO q rapid conclusion, but Maj. Cor
don. Senator King said. announced his
intention of not awaiting the com
pletion Of the food investigation to
begin the investigation into the build
ing and building material. situation
by Senator King Indicated the prev
alence of q combine here.
Eager to Get Facts.
The district attorney informed the
senator that ne was desirous of get
ting at the facts and to determine
the existence Of building combines in
this city, and TO that end he would
start Immediately to investigate and
inquire into the evidence already gath
cred in the preliminary Investigation
made for Senator King by a prom
inent local attorney,
Senator King said that he made 1t
plain to the District attorney that It
was his firm belief that there existed
here a combination among the build
fication of price-fixing groups that
had been shown to exist in other
parts of the country, such as New
York and Chicago. and that as long
cost of building would be high.
Facts that have come to his atten-
fion from various sources. the senator
said. indicated more and more that
practices of combinations. criminal in
character, were being carried on here.
facts to the district attorney with a
view to aiding him in mapping out
his Investigation.
The deeper any one goes into the
matter here. Senator King said. fur
ther, the more one Is impressed with
the existence of a well laid scheme
for maintaining the costs of building
and building materials here at ex-
orbitant and unwarrantably high
prices.
Barred BY School Program.
seems 10 point 10
profiteering methods in the building
field here came to the attention of
Senator King during the course Of
the recent Investigations into the de-
lay in carrying out the local school
building program. Since that time,
Senator King has been pursuing an
investigation of this subject. This
study brought out such facts as he
believes should be presented to the
local district attorney for further in.
vestigation and action, and the CON-
ference last night was a resuls.
Senator King predicted today i'm
mediate drop in the cost Of building
and building material. will follow the
institution of the proposed investiga-
tion.
An attack on building and building
material proflteers was delivered on
the floor Of the Senate this afternoon
by Senator Glass of Virginia, who
was defending the federal reserve
system. He digressed from his sub
ject remarks for a,moment to say
that he would not have spent money
for shipbuilding, as the federal re-
servo board did, because Of the prof
iteering among builders and building
material men. as shown by the Lock-
York. He charged that there was
profiteerins and that the jails could
be filled with those people who en-
gagged in 1t.
Maj. Gordon said tn1ay the bread
price inquiry Mas. not progressed SUI
3iciently to enable him to decide
whether or not 1t should be presented