New-York tribune., 1922-01-06
FL Indicted
AS Building z
Pipe Combine
len Corporations and Elcv.
en- Individuals Accused
OF Holding Up Costs
10y ''Opcn Price Plan"
Fourth Prosecution Of Ma
terial Dealers Since He
Became Federal Attorney

sealed Indictment charg,nr tom
corporations ard eleven individuals on.
sagec IN the manufacture of soil pipe
with conspiracy to fix prices and climi.
nate competition in violation of the
Sherman antitrust law, was returned
by the Federal grand jury on ncccm-
Der IS, and released yesterday. This
IS the fourth alleged building trades
combination against which criminal
prosecution has been begun here since
~. npo tne't of Colcnel W;''iae,
Hayward IS United States Attorney
for this district.
All inc defcndants We're members Of
the Eastern Soil Pipe Manufacturers
Association, whose activities were in
vestlgatcd by the Lockwood committee
in December, 1920. Faced with the
threat Of prosecution in the state
courts. they Informed Samuel Inter
niyer they would dissolve the orrani-
zation and give up the practices which
he had revealed, but Federal officers
said yesterday that. despite this prom
ise, uniformity Of prices had continued
throughout 1921
Monopoly Not Charged
No monopoly clause is included IN
the indictment, but according to Ray
mond L. Wise, special Assistant United
States District Attorney, every impor-
tant soil pipe manufactures in the New
England and middle Atlantic states is
made defendant. He began ana con
Quoted The Lockwood committee invcs-
ticatiom in this trade aud presented
whcl, resulted in the Indictment re
vcaled yesterday. Colonel Hayward aud
his chief assistant for tho building
trades prosecution, David L. podcl,
worked with him on the case.
For the last ten years, Mr.. Wise cx-
planned, there has been no change in
the list price for any OF the 5000 styles
Of pipes and fittings sold by the dc
PENDANTS, but actual prices were con-
stantly raised or lowered by manipu-
lation Of the basic discount. While in
1914 this amounted to 70 per cent of
the list price. in 1920, the peak year,
it stood at minus Is per cent, MAX
ing prices at the later date almost
four times what they were at the out
break OF the war.
The indictment charges the main
tenance of arbitrary and excessive
price schedules by means of the open
price plan. All changes in the basic
discount were Immediately reported to
the secretary of the association, who,
in turn, passed on the information to
the other members Of the alleged COM
bine. So simple and effective was this
system, according to evidence which
the government claims to have dis
covered, that within twenty four hours
were regularly able to alter their
prices to meet any change which one
member might decide upon.
First of Its Kind
This is the first prosecution nvoiV-
ing the open price plan to be started
bv Federal prosecutors since the Su-
preme Court declared this method of
combination illegal in the hardwood
lumber case. Similar indictments in
the soil pipe industry are expected in
other districts. Colonel Hayward con
siders this an important building line,
as it's product, which is made Of cast
iron. is used for all heavy piping in
dwellings and Office buildings
The Corporations and their officers
indicted are: Central Foundry Com
pany, and Robert f. Rust, vice-presi-
dent; Somervlle Iron Works. and Will
liam J. Kirby. secretary and treasurer;
Krupp Foundry Company, and ". A.
Brecht; Salem Brass and Iron Works,
and H. G.. Hart, treasurer; J. D. john
son Company, Inc, and j: d. Johnson
ir. vice presidents; A. Weiskittel G.
Sons Company, and Harry c. Weis-
kittel, vice president and treasurer;
National Foundry Company of New
York, Inc. and Max c. Niman. presi-
dent; Sanitary Company of America,
anad Z. M. Rhodes president; Haines,
Jones g. Cadbury, Inc, and T. H.
Livesey manager, and Essex Foundry
Company.
Abendroth Brothers, partnership,
and Charles F. Tuttle, secretary Of the
association, also are indicted.
Pinchurst. n. {. Holly Inn opens Jan. 10;
Berkshire, Jan. t5. Great sport events
o.nE l.,ilu