New-York tribune. [volume], October 23, 1920, Page 2, Image 2

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165 Broadway, who received 1 per cent
of the contracts let.
He said that if the thing had worked
out as it had been represented to him
all the contractors would have had
their overhead charges reduced by 20
per cent. But it didn't work out that
way, he asserted, and he withdrew with
about seven other members.
l"p to that time, he said, he remained
in the circle under pressure, for fear
of having his shop closed and business
ruined. He said be was paying his
men properly and had conducted his
business on a union basis, but that
nevertheless the continuance of the
men at work was uncertain if one was
not a member of the group.
Mr. Schnaier told of the various
clumbers' associations, testifying there
?was a M?st?r Plumbers' Association
with about 4'J.i members and a Contract?
ing Plumbers' Association with about
forty-one members thai were affiliated,
Asked, in view of his connection with
these two bodies, why h<? joined the
Code of Practice, he said that Het
trick had represented it to him as a
means of "eliminating certain unfair
practices among contractors" and that
he could do it legally. He said he re?
mained in the organization against
his will.
Give Up Part of Business
"It involved your giving up 1 per
cent of your gross business"" asked
Mr. Untermyer.
"I gave it up very reluctantly."
"But you could "have resigned the
next month, couldn't you?"
"Well, under pressure."
"Weren't you a free agent?"
"To a certain extent."
"Well, to what extent were you not
a free agent?"
"You brought it out yourself here
t>:th Brindell."
"Oh, you mean that if you did not
belong to that association, even though
you had a union shop. Brindell would
pull out his men, is that it""
"Mr. Untermyer, you don't want me
to have my doors closed with a million
dollars worth of business by answering
you thesfe questions here""
"No, but we will close Mr. Brindell'?
doors."
Successor of Sam Parks
"Then then will Vie somebody else
step in Mr. Brindell's place, the same
as he is the successor of Sam Parks."
"Now, Mr. Schnaier. take your cour?
age :n your hand and let us try tc
-? ."
"I have courage, but I have all I hav??
in this worid at s'akr, Mr. Untermyer.'
"I appreciate your position perfectly
but we have got to break up this sor'
of thing and you have got to help."
"But you are not going t" sacrifie?
me in the breaking of it up'.'"
"Wei!, I am g?'ing to sacritice all th?.
people in it if necessary."
"I will answer you truthfully, si
far as the plaster falls from the roo
of my mouth, but I ask in al! fairness
as man to man, not to sacrifice me oi
the altar."
Mr. Schnaier here testified he owci
a lot of money on "insurance." as pay
ments to the Hettrick groiup wer
Known, but did not intend to pay it
as he did not benef't Mom the scheme
Ht said that the ,"".iro membershi;
of the Master Plumbers' Asssociatior
consisting of about 4Jo contractors, ha
resolved to enter Hettrick's Code o
Practice, hut he did not believe tha
they were abiding by the mies.
Lawyer's Share S 130,000
"Mr. Hettrick's clients were doing
business of about $1 1,000,000 a yeai
on which they were paying -t pe? com
and of which HettricK get 1 per cen
were they not?"
"I believe so," replied Schnaier.
"And Hettrick gets $130,000 a yea:
representing his share?"
"1 suppose so."
'Who gets the rest of the money
Does Mr. Brindell have anything t
do with that?"
T don't know. 1 can only suspect.
At this point Mr. Levy was calle
to the stand for a moment to answt
a question with regard to the passin
of the $25,000 bribe money which h
said he gave to his superintenden
Gforgo Backer, to be passed on t
Brindell, as ha understood, for callin
??ff a strike on a building operation r
his at Seventh Avenue and Thirtiet
Street.
Mr. Levy said yesterday that tl
bribe money item was entered on h
books under account of "expedition ar
overtime."
"Tins was just a cover, was it
asked Untermyer.
"I had to put some en'ry in the hoc
for it."
Maurice Jarcho, a plumbing contra
tor. of 60 West Eh vi ? th St reet, ne;
tool; the stand. He said he did a bus
..f between $300,000 and $400,000
year. He told of becoming one of He
trick's clients who followed the Co?
of Practice, covering methods of bi
ding, tiling notice of intention of bi
ding, disciplining of those who vi
lated the code and contributing 1 p
cent of his gr.i -s receipts to Hcttric
H?? said there were sevei ?',:
resignations beides his own s?:icr 0
tober 1, but denied that the authoriz
Con of the investigation by the Logt
lati.re ! ad anything to do with it.
Quit ( ode of Practice
"How do you know how to preve
bidding"" Jarcho was asked.
"We work (>n different classes
work."
"Under the Code of Practice y
knew, didn't you?"
"No, I didn't."
"Have you resigned from the group
"Yes."
"When?"
"October 1."
"You have been paying \n 4 per c?
of your gross business, amounting
?bout $16,000 a year. Is that not sc
"Yes."
"And 1 per cent went to Hettrick?'
"Yes."
"Were vou No. jo on the list?"
"Yes." ' *
"Did you make all the payments
quired by the Code of Practice?"
"No. I paid about $7,000 r
?topped."
$250 for Initiation Fee
Jarcho said lie paid $250 for his
Itiation fee, contradicting the sta
mer.t of Hettrick that the fee was o
$25. He added that Wednesday he ?
Hettrick, who said he was not bo
ered by the investigation and that
"was not in trouble."
The tilt between Untermyer i
O'Connor, Brindell's counsel, ca
shortly after Untermyer had inqui
if Brindell had appeared to take
stand in his defense in connection v.
the hribe testimony. (''Connor offe
a statement from Brindell, but the c(
mittee would not hear it.
He explained that Brindell had fov
it impossible to appear himself,
cause he had received the 1er r in'
ing him to appear too late last ni;
and further he would not appear
caus?e of the methods adopted by co
i?l for the committee.
Unte'myer asserted that O'Conn?
statement was "an unjustified insv
and asked him to submit to exami
tion on statements he made to ne
paper men that "this investigation
part of an organized conspiracy to
tack labor."
"In fact," remarked Untermyer,
is to protect organized labor agai
organized rapacity."
He also asked O'Connor to tell w
he meant by saying that "newspap
have iiad labor trouble before," wh
Untermyer took to mean that "ti
are likely to have more in connect
v.'ith what they may print about !
investigation." This, O'Connor si
was "false and malicious."
In connection with the decision
the Lockwood Committee to ask
Governor for the appointment of
special prosecutor to handle any cri
ina! proceedings that may arise. S?
ator Kaplan, a member of the co
mittee, took the position that Distr
Wide?????ke ?rmployiw?! I?o not overk
epportunttle? offered .through Hulp Want
columns of Th? Tribune.?Advt.
$6,000,000 New Courthouse
Bids Arc Rescinded l>v City
el
Resolution Presented to Estimate Board by Mayor
Hylan Affects Four Contracts on Superstructure
Work; Alleges Collusion to ?nflale Prices
I
Bids on the superstructure of the ?
I new courthouse, aggregating more ]
| than $6,000,000, were rescinded yester- j
day by a resolution of tho Board of.
, Estimate. The resolution was pre
. seated by Mayor Hylan and supported
' by every member of that body except
; Comptroller Craig.
The Mayor's resolution was offered
after the conclusion of the calendar
for the meeting. The four contracts j
I affected arc those with the Bethlehem j
j Steel Corporation, of Bethlehem, Pa.,
! for the completed steel structure: i
i Henry Hanlein <v Son, New York, for:
?the stone superstructure;" Wells &
j Newton, 2?VJ Eighth Avenue, for drain- i
: age and rough plumbing, and Burman I
; & Grace for the remaining super
I structural work.
The only contract not affected by the j
. resolution is that of Rodgcrs & Hag- ''
garty, for the excavation and founda?
tion, already near completion.
In presenting the resolution the j
Mayor, as chairman of the board, said
that a combination to restrain com-.
pctitive bidding and maintain build-'
1 ing prices at an artificial level had
been brought to his attention.
Craig Resolution Lost
The Comptroller based his opposi- ;
j tion to the board's action on the
ground that the members should be
? given time to consider the proposal to j
i rescind the contracts. He put a mo?
tion that the resolution be laid over
for one week.
Mr. Craig said that in the event the
I revocations were made it might be well
to look into numerous othei contracts
involving large sums of the city's
money. He said the resolution ha?l
beei sprung as a surprise or: the board
and that he was not able, at the time,
to vote on it intelligently. To this
the Mayor replied:
"I have instructed the Commissioner
of Accounts to investigate all of the
school contracts. If there is reason
to suspecl collusion to defraud the
city by the maintenance of artificial
prices and the elimination of competi?
tive bidding this r?solution, is de?
signed to Ftop every public work now
in progress. 1 want the people to
know that they are being protected
from men who seek by unfair prac?
tices and combinations to extort the
money received from the taxpayers."
The board's action in rescinding the
contracts bears a close relation, it was
said by members, to the hearing now
being conducted by Samuel Untermyer
before the joint legislative commit?
tee. Evidence of bribery and collusion
between builders and workmen to
bolster the cost of construction has al
icady been disclosed by Mr. Unter?
myer.
Wallstein Commends Board
Leonard M. Wallstein, associate of
Mr. Untermyer in the conduct of the
tearing and counsel for the Citizens1
Union, yesterday issued a statement
commending members of C. : Board ? f
Estimate for their action in rescinding
the contracts. He said, in part:
"It is a cause for public congratula?
tion that the Mayor has been convinced
that the contra?is for the construction
of the new courthouse should not. be
executed. The City of New York has
been the victim of Cue same combina?
tion to suppress bidding and raise
prices :,s every other builder.
"When the bids were submitted in
this matter they bore upon their face
unmistakable evidence that the whole
thing had been rigged. The Mayor hns
accordingly performed one of the best
acts of his administration in taking
action to save the city from the
ciutches of the forces that prey."
Attorney Swann should, be given an op- ?
portunity to offer his services before
the request to assign Attorney Genera!
Newton to the work is sent to the
Governor.
Arter calling upon Mr. Swann. Sen?
ator Kaplan informed the committee |
' and Deputy Attorney General Berger
that the appointment of Mr. Newton
would be perfectly satisfactory to the I
District Attorney. The details c( the
committee's letter could net be learned
?last nighi. It probably will be in the
i hands of the Governor to-day.
Brindell Denies Taking
$25MOO in Bribe Money
?Says He Welcomes Inquiry by
Court of Justice and Calls
Investigation Attack on Labor
"Robert P. Brindell, head of the
| Building Trades Council, who, in testi?
mony before the Lockwood joint legis
I lative committee investigating the
building material trust, is alleged to
j have received a bribe of $26,000 for
ci llinf off a strike last spring on a
building operation of Ephraim B. Levy,
.issued the following statement yes
! terday:
"Yesterday at 5:40 p. m. there was
delivered to me a letter from the coun?
sel of the Joint Legislative Committee
j on Housing, stating that there was go
? ing to be introduced at the hearing cer?
tain testimony which might affect me
1 personally and advising me of my op
', portunity to be present during the
j introdution of such testimony.
"I am informe?! that that letter was
i delivered to my office at A : 50 p. m., after
the introduction of the testimony re
! ferred to. And the delay in the deliv
? ery of the letter is typical of the meth?
ods pursued by counsel for that com
mittee.
Calls Evidence Hearsay
"I liave read the testimony of one
Ephraim B. Levy and Cleorge Backer
?riven at the hearing yesterday, all of
which is absolute hearsay and
illegally produced from improper mo?
tives, and 1 am advised that none of it
: would he admitted in a court of jus
tic?-.
"As typical of the methods employed
by counsel for the committee at page
310 of the record counsel for the com?
mittee asked Mr. Levy:
"'And to whom did he (Backer) say
he wanted to pay ?ho money?'
" 'Me said he wanted to pay it to Mr.
Brindell, and 1 think the committee.'
"I am informed that the committee
sat idly by and permitted the introduc
? of such grossly unfair and im?
proper testimony without making any
effort I?? defend labor and its repre?
se ntat ives.
"Again, at page 311 of the record,
counsel for the committee was permit
; till to ask the following question, which
is typical of the methods employed in
this in\ est ?gat ion :
"'And that is the money you handed
Mr. Backer to be handed to Mr. Briu
; dell, ;s it?'
i " 'I handed it to Mr, Backer.'
" 'To be handed to Mr. Brindell'."
" So I understood.'
"if it has come to such a puss that
in a public hearing before hundreds o?
people, including the representatives
of all the press, such an attack can be
made on purely hearsay evidence,
pas led from mouth to mouth and given
out of the mouth of self-confessed vio?
lators of the law, it is time that some
steps should be taken to prevent such
rank and outrageous inquisitions.
"At r.o place in Mr. Backer'.-, testi
tv.oi.y was anything s.-.i?! that could in
any way, even by implication, show
that I hail be?'!?, in the ?-lightest degree
; false to the cause of labor.
Welcomes Investigation
"It is the duty of this committee, if
they believe any crime has been com
\ mitted by me or anybody else, to pre?
sent such evidence as they nave at
once to the prosecuting attorney, and,
, speaking for myself. 1 welcome an in?
vestigation of anj act of my life before
the proper authorities, where justice
'and fairness would be accorded me,
"This committee was appointed for
the purpose of investigating alleg .i
combines, but immediately after choos?
ing their counsel, who I am informed
is vitally interested financially in such
dealers in supplies and mat?'rial as the
Otis Elevator Company and Bethlehem
Steel, they proceeded to start an attack
: on organized labor, hoping to switch
the inquiry from the material men to
! labor.
"Organized labor believes that such
a method has been instigated by the
real estate interests of the City of New
York and the builders. Not one ?ota
? of testimony has been produced or
sought along the line tor which the
committee was appointed.
"1 challenge any man, real estate
operator, builder, employer or err.p oyee,
to prove, before a court of justice,
thnt 1 ever took one dollar in my life
from an employer of labor.
"Since the days when 1. as a dock
builder, stood up to my neck in water
in the zero days of winter, until to-day,
i ot one man can peint his linger at
m? . ? .! hi nest ly ? Late that 1 ever did
anything against the cause of labor, or
that 1 ever accepted any money or
ether gratuity, directly or indirectly,
from an employer of labor.
"In my fight for the cause of labor
I have necessarily had arrayed against j
me the emplo; ers of labor, the build?
ers and the real estate interests, and
they are taking this method of dis
crediting organized labor by attacking.
me.
"Through the efforts of myself and
my associates 1 have organized the in?
dustrio and building trades so that
to-day, with the exception of one trade,
every man employed in build'ng con?
struction in greater New York is a
member of organized labor."
Brindell Long at Odds
With Organized Labor
Building Trades Head Accused
of Trying to Build Independ?
ent Machine of Unions in City
Robert P. Brindell. president of the
Building Trades Council, has been at
odds for months with local building
trades unions affiliated with the Ameri?
can Federation of Labor, whose mem?
bers accuse him of trying to build up
an independent labor machine-in the
city.
A few years ago Mr. Brindell is said
to have been a clerk in a drugstore in
Providence. R. I. He first became
known in labor circles here as business
agent of the Dock Builders' Union dur?
ing the war. The union is the strong?
est numerically in the Building Trader
Council, and as its business agent Mr.
, Brindell had the power to make and
i break contracts.
From that position Mr. Brindell went
to the presidency of the Building
Trades Council and at once became ac
tive in formulating the policy it wa?
to follow. He empowered the buidnesp
: agents of the. affiliated unions to carrj
on their affairs in the council instead
I of having it done by elected representa'
tives, had the minutes of proceeding:
kept secret, it is said, and exerciser
pressure to obtain increases in salan
for the business agents.
Unions whose members proteste?:
?against the policy of the president o
the Building Trades Council began t<
? have trouble with their contracts, an<
I some of them which persisted in th
! light have been expelled from th?- coun
ci!. These include District Counci
Ne. 0 of the Brotherhood of Painters
Decorators a.id Paperhangers, am
! unions of plasl .?'',?...' ai .1 ; ri iklayers
; helpers.
Independent unions have hcei org?r
' ?zed by Mr. Brindell among thi nem
bers of the expelled unions, giving h
j new unions char! ? rrs from i. e Bi . ;
; ing Trades C ncil. Their member
I were accorded working carda b? irin
I the seal of the American Pederatio
lof Labor. Officer? of the America
| Federation of I.ah o declare this prai
tice to be illegal, as the independer
. in ions have no charter fro n t:;
? federation.
Builders Make Plea for
Tax Exemption Measur
i Tell Aldernumie (ionimittf
! Housing Shortage Would Be
Relieved I nder the 1'lan
Members of the Aldermanic Con
mittee on General Welfare, of whic
Alderman W. T. Collins is chainna
yesterday conducted a public hearir
in the Aldermanic Chamber on tl
proposal to exempt from taxation fi
ten year.' all houses built solely f?
residential purposes in the city. Buil
ers and their representatives argu?
in favor of the proposed exemptio
contending it would stimulate buil
i ing and relieve the present housii
shortage.
Fears were expressed for the co
stitutionality of an ordinance draw
by Chairman Collins, to apply und
the provisions of the rent laws pass?
at the emergency session ci the Leg.
lature. President La Guardia, of tl
Board of Aldermen, un ex officio mer
ber uf all committees, said it was ii
portant that some ordinance be passi
to stimulate building. If the act?.
proved invalid, he said, remedy mig
be devised before the Legislature a
journs its regular*session, which ope
in January.
Plans were discussed for the e
I mption of all non-elevator apartme
houses, ?.11 two-family 'nouses and ?
private residences costing not in e
ces-, of $10,000. Such an arrangemei
Chairman Collins said, should stim
late the type of building most noce
; sary in the present crisis.
! Dr. Royal S. Copeland, Comm
! sioner of Health, who attended t
, hearing, said the housing crisis w
' rapidly developing into a menace a
I should be relieved by whatever mea
j are necessary.
I . S. to Name Aland Envoy
WASHINGTON, Oct. 22. - T
United States has accepted the in
tation of the League of Nations to s
point a member to the commission ci
siuering the Aland Island dispute \
tween Sweden and Finland, The nni
of the commissioner probably will
announced to-morrow if he accepts !
:?!?! ointment.
Swedish Cabinet Resigns
STOCKHOLM, Sweden, Oct. 2". T
Cabinet, headed by Premier Hjaln
Braining, the Socialist leader, resign
to-day. The Branting Cabinet v
formed on March 10 last and was
organized July 1. It succeeded the m
istry headed by Premier Eden.
Bankers Hiss
?lliams a
Assail Policy
With One Dissenting Vote
American Association Kc-?
bukcH Comptroller for
Attack on New Yorkers
R
eserve
Hoard Praised
Imm?diate Revision of lax
System Urged and Credit
for Farmers Advocated
Fronx n Staff < nrrespondent
WASHINGTON, Oct. 22. John Skel
ton Williams, Comptroller of th" Cur ?
Kiicy of the United States, although'
neither physically present nor men?
tioned by name, was the entrai figure
to-day at the final session of the forty-,
sixth annual convention of the Amer-'
?can Bankers' Association, The na?
tional body of bankers, with only one
dissenting voice, rebuked the Comp?
troller foi-hi.i attacks on the call l'?ai?
I?. I icy of Nc.v York banks.
nl of
Francis II.
th? Guaranty
chairman of i!
-Pl?
ot the resolution
inn, and the report
icci pled b) the
' ?? . :
exception of the
Tru! t Company and
if i he resoiut ion ?? comm ittce,
imdii .'n the stage of Keith's Then
li .-. -1 that the rcpoi t be adopted >
as : Dnnii 1 1'. Gui?an, ? rea - iirer
cf th '!'::::-. Tru t i lompany :
of Malm:."\ i ity, Pa., arose. He urged
i ho a- ciat ?on to n mti in neutral in the
quarrel between Mr. Williams and Wall
Street institutions ami characterized!
the official as the "mosl efficient Comp
t roller who ?.?ver hi ' office."
This tribute was fol owed by one or
two handclaps and then y (-"pouted
hisses from various parts of the thea?
ter, which war crowded with delegates
from all pari s of the cor.:!' ry.
Defender Is Veiled 1 ><>??. n
Cont ?nu ing, Mr Gui na n i ha rg? ' '!. !
the official ?nade "no distinction b -
tween those in high places and low
places." "I oo r,"t want to be a party
tu this quarrel " he aid fui ther, V. Ils
of "Question1 Question!" followed, nnd
Air. Gui?an ai down. Th is deli ate's
1 a ak ?opera! < - und ? i ate . h a rt r
:ii:?i has no ?i rei : re| it.ion 11 r . :- h
the Com; trollcr or the Pi di ral Re?
serve Board.
Two propon":.!;
replied to Mr. Gui
of the committei
favorable vote "r
! resent, with the
Pennsylvania bankei
"In this hour, -.. n the r! lent of
confidence is so vital i tal
sustaining hanking and C; ? con
dit ions," it sn id, "we de| loi ? ull --ranees ?
which, without warrant of l'ai chai
lenge the integrity of Am: i ?.' bank
s rs as a whole and call ?ni i ???:"
their motives an.l practices in i ?? ci n
duct of their bu lincss. Grit ?ci m based
on harmful gcncraliz ng is most un?
just and misleading. The im vitable i :
feet of such broad and unfounded state- i
ments is to create false inferences in
the mind of the public.
Reflections Most Untimely
"We prote I again ;1 , '-;, reflect ?on?
as not only unfair, hut in the pr
emergency most until ely, as calcu?
lated to create an unfounded hostil
ity in the relations between bankers
;? ' d the puol ic, and, ; n ex I reme i n
stances, to breed violence of action and
dangerous disturbances in the public ,
mind. If such misleading inferences
i should be mad.? for personal profit or]
gratification, they cannot 'ne too? se?
verely denounced as outrages againstr!
the public interest. The delicacj of
; the credit structure cannot safely stand
such violent handling, and inte. rate
and unfounded attacks must seriousl>
threaten its : ecurity."
Less than two hours after the action
had been taken by the convention Mr.
Williams gave out a statement reply?
ing to the resolution.
"Criticisms on t In stal emenl giv? n
out. by this office for the new 0:4- rs of
Monday last," Mr. Williams retorted,
"seem to me to be rather vague and
feeble as well as an mymous. I hoped
they would be strung, illuminating a I
const ruct ive, 1 am constrained to be?
lieve thai they do not exprc ? tl \
thought of the bankers of the country
or of New York, who certainly oro men
of ability, with intelligence and co 1
age to speak clearly und frankly when
; they w i- h to speak."
The Comptroller's latest thrust did
not mention the A m? r can B ml ?? -'
Association or its resolution.
The delegati s to the cot
frankly critical of th < mptroll? r's
action, but many n',' his chief i- : were
anxious that his attacks be ?gnor d on
the ground that taking official cogni?
zance would give Mr. Williams an ex?
cuse for anot her bla ? '.
Criticism Against System
"One of the net f thi of?
fice," Mr. William.-'s statement con?
tinued, "is to do all possible to main
? tain and increase the good will and
I confidence of the public in th?' banks
of the country. To that end cont ?:111a!
labor, frequently troublesome to all
jconcerned, has been appl cd to make
sure that, the managemenl and
duel of a !1 banks sho 1 Id be - .
? 0 de serve good will and con di
Tl ere is no purpose in this of! ice I -
stir or cater to any prejudice agail
that great and useful palt of ou; F
nancial syst? pop larlj kno'
'Wad Street.' There wa "ai I
p.? i pose ? o hold up the Ni w V? 1 '.
bankers or anj otl er ba 1 1 p
ondem nat ion It is in; tint;
d cover and oppose wl tl i bel: to
be evils and dangers thronte . oi
?rr ped ? ng t he busi ness of the ? intr;
There has been no at tack on ii
or indi vidua I interest. Th.cisni
from this o fice lias bei .- . ta
system and a method. The first '?-'?;?,
toward correction of any wrong 1 . I
be discovery and , xposure."
After asserting again tha a billion
dollars of New York loans are con?
stantly affect?-.! by rates arti
fixed and setting forth additional ???
hibits purporting to reveal loai
which 20 per cent and 25 per cent
were charged, the Comptroller add :
Sees Need for New Policy
"The plainly, ?.??:? ,, ??
Cours?- is change ? 1. lie trie]
mation of the abus? w :h ha\ ?? c
almost impere iptibly, not I? ise ind
wholesale critic;-:., of the man trying
to heave th?' lead line and
?ng of shoals. The point not
qualities or inter:':'. - of the ial,
but whether the shoals are there. M .
work is to report them and pr ?..
where they are. Mj strong :
that the bankers of the country will
rind and apply the cur" for the evil
that has been shown. '.'? ??-. ... on
them now some of the heaviest and 1
most difficult responsil ?1 ti< - tl at ??.-? 1
rested on a financial body. The wel?
fare not only of their own c ui ':?
but of the world, depends in a
(^Advertising Illustrations
FLATIRON f~pk AS H LAND
BUILDING 'R?V 7649
great measure on their wisdom and
character."
The debate on the floor of the con?
vention as to the wisdom of condemn?
ing Mr. Williams'g policy led to the
making publicly of remark---, of the
same tenor as have been said privately
all week in lobbies of the hotels.
After Mr. Gui?an had vainly deliv?
ered his plea for inaction Nelson B.
Eldred, an Albany bnnker, rose to
speak. "1, too, believe m the American
spirit of fair play," he began. He re?
ferred to the Comptroller as a "man
in tho present Administration who is
?I st ?nguished only I y th" office which
h.? holds" in an Administration which
In- hoped was "in the throes of ?bath"
I!?- promptly explained that "I am no!
saying this in a political sense. I om
a Democrat myself, out not this year."
He later referred to the cri"?'; of the
bankers as "this dintingulshi I ?nd. 1
hope, extinguished Comptroller."
Reserve System Approved
The convention put itself on record
as not h? in" out of accord v. il h I' d ral
banking officials generally, bill
with Iho Comptroller. '1 he latt r i by
virtue of office a member of the Fed?
eral Reserve Hoard, whose policy was
warmly approved in the first resolution !
adopted this morning.
"We desire," the resolution read, "to
express our approval of the operation
of the Federal Reserve system through
the periods-of inflation and ensuing!
great strain, to commend the ? fforl oi
its officers to conservo th." credit re?
sources of the country and direct them .
to the most, advantageous use. A
proper restraint upon speculation in j
credits and commodities has been effec?
tive in protecting banking credit and1
maintaining sound financial conditions.,
Wc believe that, ?very possible pressure
should be brought to bear by the banks
t" liquidate government obligations
which they are carrying, in order that
there may be a proportionate release
o'' credit for commercial purposes. Wo
are confident that the Federal Reserve |
tern ha: ?I- monstrated its abilit; to
meet any possible financial pressure,
"Neither commercial hanks nor Fed?
eral Re: erve banks can create or manu
: a. ' urc en dit. Credit is the pr. 1 ici
or i -<?---1111 of productive enterprise end
operations in trade, commerce, trans
portation an?! dstribution and is limited
and defined by the nature and extent
oi' .-i:ch op? rat ions.
Credit for Country's Welfare
"It is the function of hanks to vitalize
such credit as ?s created by productive
es and by trade Mid commerce
and make i:. of use t.i Co.- community.
The first ami highest duty of bankers
is ' <? nut such cred ' in u able form
and distribute and apport ?on ' for ;he
o," and goo i of the c mi mui ' :'? In
rgiifg this duty bank irs mu it -, se
their be t jud ment and always give
heed to the c< ndition ol the re erve.
"If there ?s a disposit ion on the part
of ? he bu lines - world to produce a
gr?a ter volume of business ; ban the
condition of the bank reserves per?
mits, there must be a s lowing up of
bu -. until the ? ; ? ->:-.'! be
? ? -. ained, \*? cessary adjust ment s
iiii;,-! be made \\ ?t ) precision, it is
because of a tit m belii f in these
pi ciples that the American Bankers'
A sociation looks with disapproval on
?? ; -.":'? Lions, plans and effort i t ?
int erfi re wi i h tho ope ra ' inn of eco?
nomic forces. It disappr /c all sug
: - - ins, plans and effort ? t i utilize
in.- resources of the Federal Reserve
banks or the gov< rnn nt
to 1 d up or for.-" dov n prices which
m :-. ? - falling or rising in resp insc
to Lin op ?- ' m of the law of supply
and den and. It disapproves of all
I Ian -' or efforts to u-?? ? he reso irci ?
of the Fi de ral Reserve banl or the
:.- ivernm nt to exert any influence
whatc :? ?; rough the utiliza! ion of
:? uch re sei ves ex i ept fi r th <? p reven
Lion of ; ncral disaster or for public
safety."
Demand Revision of Taxes
Other resolutions adopted hold that
moni y cost 5 hav?, risen lei s than :?:...
other i;em . thai enter into the valu?'
of -..-? ods; that thrift h uld be further
. ig d ; r r,. ? the pre sent tax sy -
tem quires imm?diat;- r???. : >ion; that
tho ex< -s profil s tax is un le ?rabie
and the .- urta> militate - aga inst the
co int r> ' i pcoi >mic welfare; that the
Federal law be changed to permit
bankers and business men to serve on
the directoi at ? of rai ire ids, regar I -
of their dealings wit h ra i Ir ads : that
lab r should understand that limited
prod ne t ion and unsound shop pract ices
hurt woi '..; ngmi n and capital a ?': i :
t hat the value of the scient I c ex peri
mentation of the Department of Agri?
culture calls for increasing recogni?
tion, and thai appropriations should be
. made for incn ased jalaries and ad
dit ional equipment sufficii n! to main?
tain and ?ncrea c. their efficiency and
insure thei r co: tin lity; that a budg?. t
? ysteni i ; neces iary; hat : he widi ?
spread agitation for th o illed ?a?
ma - ing of industry i part ?cularly
' he PI imh plan | ?i a "pr ven ? .?,'?
' omi? fall icj "; that immigration
should be ca n ously n .??: . ,,, .... ?
that bankers should aid relief of the
housii n diort age.
Rogar lin?.: the busii ess outlook, the
a ? "? at ion put it.-, If on record as fol?
lows:
"We regard to. ?.< ,. ' ? ??,,. pressing
problems of tin day a
:: evitable a L'termath of v ar, and to be
' i' "ted ? ? r ? ng pha es ? [ a per o I
of reconst ru? tion - hrougl which we
n i. t pal ?i ni y pass in the full assur
l iat it is but temporary, although
m ??? ssar; Tl ; ?count ? iat - re
of assured prosperity which can he
; reatened only by internal strife or
l.-.ck of frii ndship and intelligent co?
operate
m
t_i 'i cv"\9 A ? ??' <r>I rv <S> jTii - !
fm&^? //m5?it :HJH(_i\ laii^ate
W?
?.______} ggP 'S \\\\ ,'V^'-H __!_____,
D r ? n k
iikers Cocon
Every
j
\ 11 is so delirious,
i so strengthening,
\ so healthful, con
! tai n s so much
! valuable fool
: material tl.
j it should
?j ?U be used
l W?-P& every day.
nooKi rT or ctioick
IUCIPES St ST FRtE
Walter Bakcr&CoLtd
tSTABLISIIED ?760 -DORCHESTtH MASS
Gary Declares
Prices Must Be
Cut Equitably;
"In Many Instances They
Slave Been Outrageously
Hi>li,"Steel Head Asserts;
CauseFound inMiddleman
lousiness Skies Clear
Says Trade Must Be Main?
tained Actively, Willi Fair
and Reasonable Profi?s
Judge Elberl II. Gary, in his pn
ciential address before the American
Iron and Steel Institute, at the Kote]
Ci mmodore, yesterday declared that
business conditions everywhere -.ver?
bright, and would continue so if busi
ress activities were maintained in
satisfactory volume with fair and rea?
sonable profit.
The speech wa i the first made by th?-?
president of t!u United States Steel
Corporation sim e his return from an
extended tour of the devastated re?
gions of Franc1 and Belgium. P marked
the opening of the eighteenth gi n ral
meeting of '.he institute. Judge Gary
exonerated labor from any part in the
"outrageously high prices" that have
? I ' ?ned,
II - speech took in three genera! sub
lects: His personal observation in
I ranee und Belgium, a review of the
accomplishments of American so I
? ur ng the wai and the business out?
look. In the latter phase of h?3 ad
ci - ?. ; he s a id :
Business Skies Cloudless
"Although this is a time for courage,
composure and caution, the businef ;
skies are practically without cloud
As always, ?.?he-vo. may be showers fi
time to time, but there is nothing in
the atmosphere to indicate the approach
of dangerou - : I urns, It is up to thi
business men and women to maintain
certain and continuous business ac
tivity in satisfact iry volume, with fair
and reasonable profits.
"If. there should b ? a ?eri? us reac?
tion and dep.-?? .? n, w hi .: now seems
improbable, it will be the fault of those
who are connected with business opera?
tions 01 others wiio, bv reason of ?>!'
ficial posit m. . impropi rly interfere,
: nd not bi cause of any fundam ?ni al
? ticiencies in our resources and op
pc mini ties.
"In c rtain lines of the iron and
steel industry there have of late beei
some decreases in the volume of new
business and a o voluntary re
:'. selling prices, I consider th i de
cidedly healthful. The average of tl
general sea!" ought to be reducei
? ?? : ?tably an i r< Iat ?v< ly. Witl ui :
ing to indivi lual cases or 1
general business, 1 believe in many in
stances prices hav - been outra
Scores See Suicide
At Niagara Falla
NIAGARA FALLS, N. Y., Oct.
22.?Before tho eyes of a score
of sightseers at Prospect Point
late this afternoon a man climbed
over the railing, waded out into
the river and was carriel over
tho American falls. Too astound?
ed to act, the spectators stood by
while the man drifte 1 to the
brink waving his hand and shout?
ing:
"Here's where I leave you.
Goodby !"
high. This observation applies
especially to middb n ??-., o c illed, an?
ill? r departmei ts of i? i ry.
include employi
trade . but it doe
present conditions to tho ma.
.vm kmen."
Judge Gary added that the present
tend . y is toward low< -
tei ?onable j ? r i - i.
"We natural y ask ourselvi j .? ? d ?-?? e
3 h n 11 personallj do.' 'h- t> ; ?-1 i - "1 an?
swer ; We must show the I
??on v.-h; ;h was di play - : ? ? re I he
Irdustrial Board m Mai
our steel committee coi
th?- goveinm .''s repn ent. in th<
i/oi' :.' secu -
. and i thod
.. " , ? ices of all comn
i?. :s. We should I . -
cc-pt for the .- 'dden chai ;?? in the atti?
tude of ' i; ? Adm ?..-?
suited in the abolit n of the 1 n
Hoard, and thu the lead
tin industry to I
"Xotw ,?'?.-?'?'? that ' ; ; -.i -
have done sirco th?
unri asonable advances pi ent
w, are ? ; ? ? s i I
steadying influen? - ra]
ltuation. Let '? ?? -? ? nal
just, red -"; .; ...ici f an I ???
other reducl I - ? ait. ?
then with 1? r mine
henest i nd d.id
,.;:?-? ir 1 ? ? " a the in?
dustrial situation. Our
We must i rt ??
rtabi ?ty thi lughout the bu i ? ?
.. ?. ? ?. i : r -. I j u more
ble to
:
"The pcopli >f the United S! tes have
reason for cor ler.ee :
.- .? .., ., ?;:.,, ... | not
pati nt."
.1 u Ige Ga y pre '
ery by both Frai ce and Belgium fr m
' i." elf cts of thi ravages o f wa ? . ?
their industries I i
great detail t he conditioi
?ry where the major batt!
fi ught, and dec'ared that
much astonish. I at the remarkable re
covery already m;
? ries. He dec?an d this r>?'?
had been made possible by the spirit
of the pe ip! of : i ? - \ intries,
?vhich he summed up i - "I
natured, grim, persistent and s]
etTort to sue :ced to re ?tore a : ! '
recover." He also deel tl -
ntrii ; . ? the present m
the stronge ??" governments that could ?
be ob?a
Prussia Refuses to I
Loosen GrijM)n Silesia
Rerlin Reaches Deadlod in
_r_ _ _ . ? r _r_ - _
It
Pj*r
? ? ?
Question of Detaching I
Territory as Separate <mT
'Copy
Prussian . . "" *M
? '
man Ri ;
It i=.
go -? rnrr - - ? -.-..'
- :?
ng the i - j mm
........
- '
?
to
between
' ' ' ' ;
at:
It is i that
-
of Upper
?
event that th?
pie
Di
?
'
I
ment
-
pite I
more t 1
-
:
U A LIT Y is ttttl
Knickerhocke:
Ice policy
Quality not ct - .|
of service. To i e ?,
mer, the alrc .;? filtered
water supplie?! N fork is fij.
tered four extra times. It ig
frozen in imm containers
?delivered in cle .45. t0
insure the latter there are nearly
a thousand horses andmorethan
50 auto tru.
Most oj ? ?' ? I
?in.i
C.omj. my 's policy You
-
in mes that run like ? .. -c
Knickerbocker
ICE
Company
If Present Telephone Rates.
Were Continued?
1920?A return of less than 2rc
1921?A deficit estimated _i $1,182,000
The following figures showing the New York
Telephone Company's estimated operating revenues
and expenses for 1920 and 1921 in New York City
under present rates were presented at the first hear?
ing before the Public Service Commission, Second
District, on the Telephone Company's petition for
increased rates:
1920* 1921
Revenues $49,011,000 $53,118,500
Expenses 46,607,800 44,300,800
Net telephone revenue $2,403,200 Deficit $1,182,300
*Eight months actual and
four months estimated.
To build the physical plant now in public use in
New York City cost approximately $123,000,000.
On this amount at present rates the Company would
earn this year less than 2%.
Without increased revenue from higher rates it is
estimated that in 1921 the Company will fail to meet
its bare operating expenses by over a million dollars.
The work of increasing the facilities and the organi?
zation sufficiently to meet New York City's abnor?
mal demand for service is far from finished. New
plant and equipment costing millions of dollars m.
be bought and installed. A large number of new
employees must be secured, trained and paid.
The Company cannot provide the service New York
City needs unless it has sufficient revenue to meet
the requirements of the business.
Adequate service depends upon adequate revenue
and adequate revenue upon adequate rates.
NEW YORK TELEPHONE COMPANY