The New York herald., 1922-01-21
UNTERMYER EXPOSES
RENT GOUGINGFRAUD
Continued from First Page.

cleaned the place up he disclaimed re-
sponsibility and said the matter was up
to Feinberg & Levy. Further identity
of that firm was not established.
Mr. Schiff, Shenk's lawyer. whose
firm also is counsel for Newnark &
Jacobs, the second firm of landlords
mentioned by Court Clerk Burns. told
of title transfers by that company but
denied there was any fraudulent intent.
IF there was you would not admit 1t,
would you?" asked Mr.. Untermyer.
IF there was man of your ability
ought to bring 1t out retorted the
witness.
THANK you. we will" observed Mr..
Untermyer.
Negro Renltor Grows Rich.
Watt Terry, negro operator. who
gave his address as Brockton, Mass,
said he held practically all of the $4,000
stock of the Terry Holding Company
which operates group OF fifteen
houses between 902 and 230 West. 10th
street. He also has controlling interest
in the Fifty Per Cent. Profit Sharing
Company, another of the firms named
by Mr.. Burns. Terry produced list
of the rentals he said he was asking
and they varied so far from the figures
named on summonses to tenants and in
the bills of particulars that when asked
TO explain he admitted with smile
that 1t was usual to ask more of a
tenant than it was expected the courts
would allow.
.'It seems to me-" said Mr.. Inter
myer, that we should direct the atten-
ton of the Justices of the Municipal
Court to the facts that have been dis
closed here. 1t seems that in their de-
termination of what is a fair rent they
frequently do not go below the surface
and examine the number of title trans
fers made as q basis for demanding
extortionate rent increases
The committee instructed Shenk to re-
turn next Thursday morning and in the
meantime subpoenaed the books OF MS
various corporations. Accountants VIII
prepare an analysis of the actual IN
creased cost of the properties. This
will be compared with Shenks sworn
statement in the bills OF particulars in
rent suits still pending.
More Electric Profits Shown.
The announcement as to the General
Electric was made after Mr.. Untermyer
had examined William r. Burrows,
manager of the Edison Lamp Works.
which with the National Lamp Works
handles the bulb manufacturing busi-
ness of the General Electric. Mr. Bur
rows told of the output of lamps which
he said amounted to about 2l5,OOO,cOO
in 1920, of which the Westinghouse Com
pany. another subsidiary. made 1l.25
per cent, with the remainder divided
equally between the Edison and Ma
tional works.
Franklin S. Terry, manager of tho
National Lamp Works. gave similar
testimony and confirmed other figures
of the companys output and revenue
introduced since the investigation be-
gan. He caused some amusement when
he said that the company maintained
a resort at Association Island, Lake
Ontario, where officials with their
wives and families meet on vacations
and Qualifications. He said Mr.. Inter
myers estimate of s25O.000 a year for
the maintenance of the island resort
was much too high. but admitted that
the cost was charged against the lamp
account of the company.
Mr.. Untermyer introduced state
ment covering the years from 1901 to
1920 showing the percentage OF plant
expenditure that had been written off
each year. 1t showed that in 1915 when
"a 4s5 ,O69 had been expended on plant,
$685. ,06S or 133 per cent. had been
written off this account. In this meth
cd Mr.. Untermyer contends huge parts
of the company's profits on Its lamp
business have been concealed