The New York herald., 1922-05-15
UNTERMYER ASKS
EMERGENCY TARIFF
Wants Congress to Let
Building Materials In to
Defeat PrOfiteers.
ACCUSES SHIP BOARD
Says 1t Is Party to COmbi-
nation to Keep Up Ex-
tortionate Prices.
DEMANDS ACTION AT ONCE
Expects Bills in Both Houses
Tomorrow: Says Delay
Would BE Fatal.
DEMANDS ACTION AT ONCE


manufacturers are deliberately keep
ing prices up TO an extortionate level
by limiting supplies. Samuel Inter
myer, acting for TIE Lockwood COM
mittee has sent a memorial to Con-
gress asking for emergency measures
readjusting the tariffs on brick, cement
and other materials. to permit the in
creased importation of foreign made
supplies.
Tn the memorial. duplicate copies of
which were sent yesterday to Senator
Calder. Mr.. Untermyer asserts that
the United States Shipping Board is a
party to combination such as that
against which the antitrust laws are
aiding in keeping up ocean freight
rates which affect the cost of importa-
tons.
The petition and memorial reviews
the Lockwood committees work showing
the housing shortage due to Illegal COM
binations and outlines the construction
plans.
The committee now finds that there
Is famine in the basic materials re-
quired In building construction such as
bricks. sand. lime, cement. nc.," he con-
tinues. THE supply OF these materials
has been restricted In many cases
through the operation of these unlawful
combinations and in other instances by
reason of the phenomenal demand due to
the increase of building activity that is
essential to meet the emergency.
The exactions of manufacturers and
dealers in building materials due to this
scarcity of supply have resulted In alb
normal price increases and in some ir:-
mand on any terms. Manufacturers and
dealers are either unable or unwilling to
satisfy these demands upon a basis of
reasonable prices over and above the ac-
tual cost. This situation prevails not
only in the city of New York but In
many OF the cities throughout the coun-
try and for the same reason. Unless
corrected it threatens to paralyze the
efforts to correct the present crisis.
Sand Dumped Into Sea.
"As illustrative of the extent to which
oppression has been practiced by these
combinations above referred to- il an
pears from the evidence that at a time
when the price of building sand was alb
normally high. largely as the result of q
monopoly in the transportation facilities,
a transatlantic steamer of the Munson
Line brought as ballast into the port Of
New York a cargo OF high-class sand
70 a.Ira a<
of the then existing combinations on the
building materials market. no dealer or
builder dared buy the sand although Il
was or high quality. was greatly needed
and could have been had for less than
one-quarter of the price that was then
being charged for similar product The
steamship company was finally COM
PEELED at considerable expense 10 take
the sand out to sea and there to dump IL
because OF the grip of this monopoly
''In this connection attention is also
called to the incongruous fact that the
Government OF the United States through,
the United States Shipping Board. is
said to be itself party to arrange
ments with foreign steamship lines to
maintain exorbitant freight and passen-
ger rates in the transatlantic trade and
as a result Of these combinations there
have been various increases in such
the detriment Of the building industry
throughout the country.
Only Remedy Abroad.
Unless this situation is corrected the
continuance OF these arrangements will
materially interfere With the importa-
ton into this country OF building mate
rials unless Congress will. in fixing the
tariffs. make such reductions as will take
into account tho added cost OF transpor-
3tion. due to the fact that our Govern
:nent is a party to combinations against
which its antitrust laws arc directed.
"The only immediate remedy in sight
Is TO permit the prompt importation into
this country OF building materials Of the
classes that are now excluded through
prohibitive tariffs, under cover Of which
tho present prohtecring demands are be-
ing cxacted The added cost OF freight
,ipon such importations due to combina-
tions between the steamship companies
increases the burdens 20 that extent
THE committee would not favor and
docs not ask that the tariffs he fixed at
= rate that win not yield the domestic
manufacturers and dealers a reasonable
profit over and above tho present costs
~ production. but II has been demon
sirated that the prices demanded have
tho direct result OF series of criminal
conspiracics between former competitors
end that the prices now cxacted under
stress Of tho present emergency are in
some Instances at least so per cent.
above such reasonable profit
Can't Await Slow Process.
nc relief that Is not immediate will
meet the situation. IL cannot await the
4 slow processes involved in the pending
tariff revision by Congress The com
nittcc asks that the subject he dealt
with ss an emergency measure and that
Il shall be confined TO the basic mate
rials entering into housing construction,
which will involve q comparatively sim
pie problem that can be readily dealt
with"
memorial. said he hoped and expected it
wouIu be introduced IN both Houses to-
day or Tomorrow. lie took occasion.
too. 20 say he had never made the
charges cited in the reply of the brick
manufacturers on Friday. He had mere
lv said. he contcnded, that there ap-
pcarcd TO be a shortage In materials. IN
Guiding brick. and the quickest and sur
cet relief could he had through tariff
that would permit a profit TO the manu-
facturcrs of from 10 TO 20 per cent.
This would enable builder TO get brick
delivered az not more than SIS thou-
sand. instead OF s,i and t25 a thousand.