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The New York herald. [volume] (New York, N.Y.) 1920-1924, December 08, 1920, Image 6

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I pearls1
Precious i
I Sterling Silver i
i Jewelry i
I; Watches i
Stationery i
Silver Plate !
Reed s Barton i
Theodore B.Starrjnc
4Maiden Lane. f !
.NewYork> jj
i .J
!i Creators and Designers of
|l Smar- Gowns, Suits and Wraps,
49 WEST 46
Superb creations
I Gowns?Wraps
!i Tailleurs
j used as models for
j exhibition purposes
I I 1
The Holiday
Dated Dec. 15th
on sale now!
|> 68! Fifth Avenue it
Portraits that show his
aplomb, not his restlessness.
Finn AV ? COR. 47 ST
Vf J ? T
Amp frmnritcn Chtcaoo Hew York.
TJIK ONE QUESTION when intelll
gfetM people meet:
' Have YOU read?
/, By Odin QreRoryT'
$0/?verywhere. Boni St Llverl(?ht, N. Y
b, MERRICK hu.
House of Lynch
Uniform with "Conrad in Quest, of
His Youth" is on sale everywhere.
SI .90.
1. p. DUTTON & CO., 6"! 5th Ave., N. Y.
An advertisement in the Loot and
Found column* of THIS VKTV YORK
irr'TlAT.D offer* a real poorfblHtp oj
recovering your lo?t property.
? i
Revealed in Evidence Dis- ?
carded or Ignored by Estimate
Board's Inquiry,
Federal Authorities Balk at
Helping to Bound Up Vanished
Hylan Probe in Abeyance as
Foundation Is Laid to Pass
Drastic Housing Laws.
Samuel Untermyer demonstrated
yesterday to the Lockwood Committee
how the code of procedure originated
by John T. Hettrlck was operated
under tha pool system of bidding to
boost contract pricee for city work.
Taking the working sheets found
In Hettrick's office, Mr. Untermyer
showed that prices were raised arbitrarily
and apparently without reason.
These sheets werg supplied to the
Board of Estimate for Its investigation
Into city contracts, and were returned
to the State Investigators as being of
no value or assistance In the city's
Inquiry. By producing the evidence,
Mr. Untermyer endeavored to show
that the city Investigation Is euper,
flcial. 1
This was about the easiest thing Mr.
Untermyer did In his uphill all day light
to set forth facts and figures to prove
how combinations are operating In va- 1
rious trades to regulate and boost prices, '
thereby restricting building and lmpos- 1
lng tremendous burdens on rent payera
me counsel to trie state's investigation
made a lengthy statement setting ,
forth the purposes of the committee. He
announced that a dosen important wit- |
nesses are missing from this city and ]
declared he would get the evidence he j
wanted if he had to keep at it forever.
Ex-Senator llrackett Enters Case. <
Contractors are in a rush to Join "the
sands of the sea," Mr. Untermyer said. (
Such an exodus of building supply men
never was known before. Edgar T. '
Brackett of Saratoga appeared as coun- ,
ael for several contracting firms. 1
Responsibility for blocking the com- '
mittee must rest at the door of the t
Federal Government, Mr. Untermyer <
charged twice during the day. The Fed- '
eral officials started an inquiry, then J
backed off and not only did nothing but
will not even give the State the benefit
of the nationwide power of subpoena.
Although several prominent and i
wealthy contractors in brick and stone
did not answer to subpoenas said to have
been served on them, Mr. Untermyer
made some progress in his effort to
prove there are trade combinations in
both those Industries to regulate supplies
and prices. The witnesses who did
appear denied such monopolies, but important
facts were ascertained in spite
of the liandicap.
With the opening of the morning sesj
? ' ===
[T i i
4* V
Thirty-fourth Street
A R<?
Men's -SS
; commnnem
will present an oj
luxurious garmei
i I
(The Dressing Govt
of French si 8 Iks of
B. Altman & Co.
satin and have si
wide siik girdle.
1 i
sion Mr. Untermyer said he thought the
lime had come to make a plain statement
of the committee's purposes. This
was occasioned by the speculation heard)
on all sides for several' days regarding
legislative plans for investigating the
Hylan administration. Just how It will
be done has not been determined, but it
Is regarded as a certainty that whatsver
course is adopted Mr. Untermyer
will be the lawyer who will lead the
committee. His purpose was to emphasize
that the housing inquiry is far
more important than a municipal investigation,
and that the existing injuiry
should not be prejudiced or impaired
by political developments.
Much Work for Grand Juries.
Because or the obstacles thrown in
:he way of the committee, such as destroyed
and forged records and missing
witnesses, and the fact that the com
jimce n>is a trcmciiuuuo m?wo m cvilence
which cannot possibly be presented
in orderly manner in many
months, It is necessary, Mr. Untermyer
said, to present the case in a sketchy
way and then leave the rest for the
Urand Juries to fill in. He continued:
"If this work Is to be thoroughly
done lb will require the exclusive time
of half a dozen grand Juries and of
about thirty capable assistant district
attorneys and a large staff oof investigators
for many months to come. With
the convening of the new Legislature we
shall be prepared to submit a resolution
for the continuance of the inquiry in
which the defects in tho present resolu- '
tlon will be remedied and the scope of
the inquiry and the power of the committee
will be materially broadened.
"So far as I am concerned, and I believe
so far as the committee Is contented,
this committee will not accept
the duty, or powor to investigate the city
idministration or the city departments.
[ do not mean to imply that they are
tot sadly in need of investigation. Suf'iclent
has already been developed, and
till more is known to us, to satisfy me
hat si?:h an Inquiry is necessary in the
>est Interests of the city, providing it
:an be dono with thoroughness and in
i spirit of entire fairness and non-parisanshlp.
"Our committee has other and far
nore important work than investigating
he city departments. I do not question
hat there has been an orgy of inef'lcncy
and extravagance, if not worse,
ITI til fftW nntuhlft nv/mntlnna ?? ..
nlttee has, however, still barely scratched
;he surface. The Integrity of Its labors
ind the pullc confidence that It must
snjoy render It Imperative that there
shall be no suspicion of partisan or political
motives or leanings surrounding
Its activity.
Foundation for Drastic Law,
"All that we are doing Is merely to
erect a foundation on which to build
our comprehensive structure of proposed
constructive legislation. It will be drastic
and far reaching, I think, some may
say almost revolutionary. In the hope of
reversing a narrow economic policy that
has prevailed In the Federal and State
"In order to succeed this legislation
must have the support of the Legislature
and the public regardless of party
lines. If your committee were to become
Involved in a city Investigation that
would not be possible, and I regard It
is more Important that the integrity of
mr numnsA chnn VI Ko ?-1
Its freedom from partisanship, than a
iozen city investigations, however useful
they may bo.
"We are hopeful that by transferring
the unfinished branch of the present injuiry,
as abo\-e indicated, we shall be
?ble, possibly shortly before the beginning
of the new year, to take up the insurance
and banking end of the Inquiry"I
am sorry to say that we are continuing
to meet with anything but cooperation
from the Department of Justice
and the Federal authorities. Under
oover of proclamations and protestations
of cooperation we get nothing.
"Great hopes were raised in us some
time ngo by the appearance of Senator
Calder here before your committee. We
thought that with his aid we might be
able to get jurisdiction before his committee,
sitting with us. over witnesses
who find Philadelphia. Newark and other
places much more congenial at this time
of the year, but we have thus far been
disappointed in that hope.
u-~~*V. 1 ? - -
"C j*uuu-irM ? ueal OI
data, but to present that data under the
rules of legal evidence, which we are
endeavoring to adhere to as far as possible,
would take almost the rest of next
year, and so we shall go into such of
them as we can and turn over the cvl[fmatt
jmarkaMe Sai
Ik Dressing
zing to-day (Wed
?portonity for the acqi
rats, at a tremendous r
rns comprised in the assoi
the choicest qualities, in
They are lined throwgho
ilk or gatln-ffaced collar .
The new price is
^<Q)S ifTirTh
o4> cLf ovu/vy/
ar Revenue tax addStiona
apartment or Sfoth Flooi
h ?
dence we have collected for such action
as the committee may see fit to take."
Keveula Hettrlclc Method*.
By way of making good hia oft repeated
assertion that the Board of Estimate
investigation of city contracts is
a mere whitewashing expedition, Mr.
Untermyer called John Eisenberg, a
clerk from Hettrlck's office, to the witness
stand to explain the contract papers
covered with the lawyer's shorthand
Mr. Untermyer explained that the
papers were turned over recently to
John P. O'Brien, Corporation Counsel,
for the information of city officials and
were returned to the Lockwood committee.
Mr. Untermyer proceeded to
show what the figures contained which
Mr. O'Brien had not found. The sheets
dealt with limestone, heating and ventilating
contracts, mostly In the schools.
The offers on limestone for P. S. 144,
Brooklyn, for example, showed that five
bids were sent to Hettrlck's office to be
fixed. One for |10,403 was raised to
*18 4ns ODDoslte the first bid was writ
ten "600 for us." The several bids were
all revised upward. Hettrick set an "accommodation
bid" as the standard for
the Job and placed all the others above
his figure. The result was that the lowest
estimate put to by Hettrick to the
city was $11,345. After the juggling
had been finished the contract was
awarded at that figure.
A similar method was employed by
Hettrick on the bidding on a contract
for P. S. 43, In Manhattan. There were
<lve bidders besides Hettrlck's accom-.
modatlon bid. These bids ranged from
)2,583 to $4,980. The Hettrick accommodation
bid was put at $5,260, and the
contract was awarded for $1,700 more
than the average of the original bids.
Hettrick Boosted Figures.
In handling heating and ventilating
contracts the witness said Hettrick kept
the figures In three classifications.
These were the cost estimate from the
contractor, the contractor's bid and the
Hettrick figure, which was called "the
amount authorized". The first of these
was $73,734, the second was $92,770 and
the third was $101,500. ' This was for
work on P. S. 100 for heating and ventilating.
There were six bidders. Mr.
Untermyer went over the several bids
and got from the witness admission that
all the flguros were boosted by Hettrick.
"The city had appropriated $105,000
and so the bids were raised nearly to
the limit, but kept within the city's
figure, was that It?" Mr. Untermyer
asked. The witness thought so.
On a contract to supply sandstone for
Ward's Island Mr. Untermyer showed
from the Hettrick sheets that the work
was awarded to James u. L,encnan ror
$20,250, which was $7,000 above the lowest
bid put In to Hettrlck. For a limestone
Job on Public School 83, 109th
street and Third avenue ,the same system
was used and bids Jumped $1,700 on
a $7,000 contract.
Elsenberg said Hettrlck had not been
In his office for weeks, but that the office
still was being run by the clerical
Thomas F. McLaughlin, secretary of
the Contractors' Protective Association,
verified the minutes of that organization
which contained a protest from a contractor
against the conduct of the Yankee
Contracting Company In marketing
sand In competition with members of the
Contractors' Association.
McLaughlin was asked concerning an
alleged agreement between this association
and the Brlndell Trades Council.
The witness said some sort of an understanding
was reached last spring under
terms of which the council agreed that
none of Its members should work on
trucking other than that done by members
of the protective association. It
was further agreed, the witness said,
that the Brlndell council would not permit
Its teamsters to work under conditions
where they could obtain better
hours and wages than given by the protective
George A. Gilfeather. excavating contractor,
stated that he took part In a
meeting held by the protective association
at wheh a minimum price was fixed
for excavating work and an agreement
made to penalize members who did not
live up to the rule. The penalties to be
Imposed were $500 for the first offence,
$1,000 for the second and expulsion for
the third.
The wages charged under this scale
were a sharp advance over the prevailing
rates paid to workers. The union
scale for common labor was $5 to $6
a day and this was raised to $9. The
A book for which the world lias waited for
twenty years. See The New York Herald
next Sunday.?Adv. ^
Th5nty-ff5ft!h Street
He of
f Qowmis
misition of these
eduction in price j
rtment are made j
uported direct by I
>ut with Hwstrous :j|
and cuffs and a
blasters' union was charging' $45 a week 1
and the contractors agreed tp make it
$72. Other raises were proportionate.
"We all kicked in and agreed to it."
Gllfeather said.
"Who told you you had a right to fix
a minimum price?" Mr. Untermyer
"We all did it, our minds- all went
the same way."
"Did you consult a lawyer?"
"I guess that is where we made our
"We can get some idea from this why
building prices are so high in New
York," Mr. Untermyer said.
When the committee resumed after
recess Mr. Untermyer called for Peter J
Gallagher. There w*b no response. He
called for Eugene Clurk. No answer.
Hr. Gallagher's partner and brother was -i
not present J
"We shall submit proofs of service of
subpoena on both the Messrs. Gallagher
and ask that thev be Judged in contempt,"
Mr. Untermyer said. "Mr.
Clark is secretary of the Gallagher
Company and we have been trying to get
him for two weeks. Is Mrs. McDonald
here?" No answer. "She was called to j
produce the books. We dislike to pro- t
ceed against a woman, but we cannot
stand to have this committee flouted In c
this way. r
Sand Men Prove Trifling. ^
"We have been trying to get in the c
sand business: Herbert Dupey of Goodwin
Gallagher, Mr. Mahoney, I under- *
stand, la 111. Mr. Thomas Lanlgan Is t
non est. Mr. Rouse Is inaccessible and t
Mr. Scanlan still more so. Mr. Chairman,
the committee cannot permit Itself
to be trifled with. If we had the co- *
operation of the Federal authorities c
these gentlemen would have to go either t
to Canada, Mexico or across some ocean. ,
They might go to Cuba. The exodus has
been at a great rate. We cannot get c
Frank Weiss. Mr. Wood, Mr. Kllcullen,
John A. McCarthy, Cornelius McGuIre, j.
Audley Clark, who was very anxious to ?
go on until we wanted him. We coulc j
go on ad Infinitum, but with the aid of ^
a Congress committee or with cooperation
from the Federal authoritica we
would bo able to get these gentlemen."
"Atlantic City has become suddenly
the haven of the sandmen," Mr. Untermycr
said. "There are more phantom
witnesses In this investigation than I
ever heard about before."
Joseph Tlno, dealer in sand, gravel
and broken stone, said he had been in
business for fifteen years, but he pleaded
ignorance of conditions In the trade.
He said If he had the money he might
go out and try to fight the men who
were monopolizing the sund business, but
admitted he felt he "was not big enough
to do It."
Henry Steers, contractor, of 17 Battery
place and who resides at 4 0 West
Fifty-first street, dented there Is a
monopoly In which he Is a controlling
factor In the sand business. His company
digs sand In the pits In Huntington
Harbor and does about $800,0*00 a year
Because he stood in fear of the Donnelly
anti-trust act, Mortimer D. Wandell,
vice-president of the New York
Trap Rock Corporation, manufacturers
of crushed stone, testified that Ite was
careful in his dealings with members oi
the Sand and Gravel Dealers Board of
Trade to negotiate with them as individuals
and not as a board. He was questioned
at length regarding his contract
to supply dealers.
vv Nile J. am tiding uu iki ir* una
that the fact is that through the Instrumentality
of this contract, negotiated
through Clark of the Sand and Gravel
Board of Trade, on behalf of the memberg
of that board of trade, the great
bulk of the trap rock for building purposes
that goes to dealers Is within the
control of that board of trade. Is there
any doubt about It? Don't fence about
it," Mr. Unterinyer said.
The hearing will be continued to-day.
I A Flc
i There are the
|j and the Expr
y ..in 111_
| Storrn
l ABOUT now o
Jj /A and should
lr A V. flecked witl
i 3 The passer-by's
i est, because one tl
. In The Man's I
' own size, every i
f one would encour
* lobbies, in the rail
and in the motor cs
[' The fleecy storn
i II
38th Street
< The Man's Shop
I' Tenth Floor
<\ ?
8, . 1920.
Mayor Fights for Former Secretary
an Hoar, Then Yields
to Untermyer's Demand,
Effort Will Be Made to Force =
Repayment of $400,000 on
Ash Dump Contract.
Mayor Hylan reluctantly designated
ifeler Stelnbrlnk, associate counsel of
he Board of Estimate's inquiry into city
ontracts, yesterday to investigate the
esponslblllty of Holland * Co., ash renoval
contractors, and Grover A.
Vhalen, Commissioner of Plant and
Structures, formerly affiliated with the
lolland concern, for alleged losses to
he city due to the dumping of ashes In
he court house site. Mr. Steinbrlnk
iras instructed to report to the Board of
Estimate within two weeks whether the
lty should start court action to recover
he $100,000 which Mr. Untermyer says
he city lost as a result of the Holland
oncern dumping ashes on the site.
The action of the Mayor and the
loard came as a direct result of a
econd and peremptory demand from
ifr. Untermyer that the board have
lone with Its "dreary rarce" lnvcstlgalon
and do something about the money
vhlch the Lock wood counsel said the
:lty has lost The Mayor fenced for an
tour In an effort to give his former secetary,
the Commissioner of Plant and
structures, th? benefit of an Inquiry
:onducted by the Hylan appointed Corsoratlon
Counsel before the Tammany
najorlty Board of Estimate before anyhing
tending toward court action should
>e taken. Through Insistence of Mr.
Jtelnbrlnk and the hesitancy of William
3. Carswell, Assistant Corporation
Counsel, toward such a course the
vlayor finally consented to subject Mr.
Ahalen and the contracting company to
he possibility of a suit for recovery.
Tho remainder of the session and
learly one hundred pages of testimony
vere consumed in establishing that the
Mayor's famous Hettrlck letter to the
E?oard of Education did not have the
sffoct of delivering thp school construc:lon
to the limestone ring, and It was
leveloped that the Board of Education
mid no attention to the Mayor's letter,
hus saving the city from the Mayor's
jrror. f
Mr. Untermyer's letter assuring the
board that his demand for action In
regard to Mr. Whalen, Holland & Co.
md the court house ash dump "will not
be allowed to go unanswered" was read
is soon as the board convened. Immediately
Mr. Whalen demanded to be
heard, and said:
"I do not intend to permit any notoriety
seeker of the type of Mr. Untermyer
to attempt to besmirch my character.
I, therefore, demand at your
hands that you Immediately instruct the
Corporation Counsel and Mr. Stelnbrink
10 cause Immediate investigation and to
report to you the result of that lnvestijation.
I have absolutely no fear "
The Mayor eventually agreed that Mr.
Stelnbrink should follow out the wishes
5f Mr. Untermyer.
>or of Comp
Twentieth Century I
ess Elevators to The
! Withoutj?
ne expects to see the lapels
ers of the caller's overcoat
h snow.
overcoat is of special interKinks
of a new coat himself.
Shop you will see, in your
vorldly, desirable overcoat
iter in the theatre and hotel
Iway stations, on the streets
trs of London and NewYork.
i coat, the tourist ulster, the
' New York home or the
TMItmore Homespun Overct
I TearU Tfreeuow cJEoiied ?
I and <JeweUt ?j jj
' _ i i
I, 1 =acs=fe
% r
2L Altmmt & (En. ;
ir ^
Navajo Rygs
made by Navajo Indians, and shipped to i
B. Altman & Co. direct from the
Indian Reservation^,
are shown at attractive prices
These interesting Rugs make most
acceptable holiday gifts.
Display of Navajo Rings
on the Fifth Floor.1
JHabtemt Atirmtr - 3Fiftlj Awtrar
34tfj anh 35Hj &tmtu 1 Km fork
\ ;'!!
K ?'
" ~~ l"i
An English Wife in Berlin
' By EVELYN, Princess BLtlCHER
The Boston Transcript calls it: "So far the most revealing and absorbing
personal record. These pages are filled with personal touches that flash
with a vivid and realistic impression of the experience ... a thrilling
and amazing record."
Price $6.00
This book should be on sale in your bookstore; if not, order direct from
E. P. DUTTON & COMPANY, 681; tilth Are., N. Y.
io Shnri I
lete Masculinity . j
limited, the Pennsylvania Special |
Man's Shop at Lord <Sl Taylor j]
-Cheer W ithin I
coat of dignity for the professional man, the ft
coat to wear over evening clothes, the leather t\
or leather-lined coat, and the fur-lined coat of j>
English cut.: E
And all the suits to wear under them, which t
speak the same worldly language when the I
coats are tossed aside?conservatively plain, . ?
whether of brightest tweeds, or darker materials. | [j
Just now, particularly with the approach of * 3
the Holidays, the special evening clothes room ^
nfrf ?rvf inn??tifi tf-c /htrlirtKf tr\ 'HI
AO CI III CIV. Lit I ? avvvuwivkl oth.ii no Via j U^iiv WW u
judge quality, and its evening shadows to g
observe effect. n
Dinner coats, full evening dress, dress boots, [)
dress waistcoats, dress overcoats, silk hats, and ?j
The Man's Shop's own One-Stud-to-show |j
evening shirts. Ej
There is no Similar evening dress room on f
the continent?as cheerful as a brilliant recep- r]
tion room.' *
The "Express Elevators will . <5"1 ]
land you in the midst of \\ [ '
many surptises^W^ thef^' .\v\ ;f|
least of which are., todays* V\ {ji
representative prices.* ^ ' n|
zylor M, |
E 39th Street - |fJf
Express Elevators * W j
J*tB Without Stop 'I ' i
V . <

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