New-York tribune., 1921-06-18
w WadsWorth
In 2O% Bonus
Mortgage Co.
tcoatlnued from page cns)

mortgages was from 2 per cent up,
meaning in addition to the 6 per cent
interest.
"All legal and business matters of
the Smoot Corporation said one of
the prospectuses, "have been investi-
gated and approved by General Counsel
Charles d. Newton, Attorney General of
the State of New York"
:, Don't you consider asked Mr..
Untermyer, 40 per cent and upward
on mortgage loans a great burden on
construction ?"
"lt would be, sir" replied Hunt. "but
our rates are not 20 per cent. They
are from 10 to 20 per cent, depending
on the ter..1 VI the mortgage"
"R y0nf FeoMDcctuses show your
prc.tf ale I'm 20 per cent up" re-
piled Mr.. Untermyer.
IT was figured out that the per cent
interest and the 20 per cent bonus for n
tnree-year mortgage averaged a return
OIL about 16 per cent wear.
1t is known that Attorney Genera,
Newton had been in conference with
Mr.. Untermyer here yesterday. and II
is believed that the mortgage loan oom-
pany was the subject of the conyer-
sation.
Inc plaster monopoly was shown to
be one Jof the strangest and strongest
IN the entire range of combinations
uncovered by the committee. Accord
ing to the testimony of William n
Hoffman, Office manager of the Niagara
Gypsum Company, the national control
of gypsum, which is the chief in
gredient of wall plaster, was in the
grip of two companies, the United
States Gypsum Company, of Chicago,
and the Niagara Gypsum Company.
The Chicago concern, he said, supplies
the bulk of the country's plaster needs,
with the Niagara company taking care
of the Eastern district. From HSff
mans testimony it was shown that
Memo "A. Reeb, a Buffalo building sup
ply dealer, owned with his family the
controlling share of stock in the
Niagara concern.
Gypsum Combine Uncovered
The Niagara company, which mined
the product, sold the bulk Of it to the
Peerless Purchasing Sales Company, a
theoretical concern which had neither
books nor clerks, but which Mr.. Inter
myer insisted served merely to conceal
the profits of the Niagara company.
The controlling factor in this concern
was also Reeb.
hS CciicSS HEHl merely DiIieQ the
material to the M. A. Reeb Corporation,
a wholesale concern of which Reeb was
also the moving power, which in turn
turned the product over to the Niagara
Falls Builders Supply Company, a re-
tail firm. Reeb, according to the testi-
mony, is also the biggest power in the
last named company. The officers of
all these occupied three floors of one
building and one set of employees
kept all the records.
From Hoffman, Mr.. Untermyer
learned that there was boost in price
every time the goods were passed from
one of these firms to the other. Reeb's
profits, on the basis OF the cost of
mining the product, is said to have
been about 700 per cent.
Without rendering the slightest serv-
ice, according to the testimony, the
Peerless Company in 1919 divided s9o,-
121 in profits, and in 1920 divided
$139,846 in profits. Figures introduced
showed that the price of $3.40 ton
for gypsum at the mine became $18
when it finally reached Reeb's retailing
firm. 1t was declared that there were
practically no other sources in the
east from which to obtain the product.
When Reeb was placed on the stand
some days ago and asked if he would
waive immunity from criminal prose-
cution, he shouted out at the top of his
vaiee, II should say not"
termyer declared the evidence did not
show all the work that had to be done;
that the city was honeycombed with
combinations affiliated with nation
wide organizations which could be
reached only through Federal action.