SiebenbuÌˆrgisch-Amerikanisches Volksblatt. [volume] (Cleveland, Ohio) 1917-1971, 1950-07-20
AN OPEN LETTER
John Balthes, President
F. -. Of the CENTRAL VERBAND
of the CENTRAL VERBAND
(A>paid ADVERTISEMENT J

all plCdSSu W IICdu III yOul
article in the Nolksblatt that YOU
too do not cherish the controversy
which has arisen between us l
frankly admit that I am not gett-
ing any kick, out of it either and
that l feel that l could use the
few moments of my leisure for a
more pleasant pastime. But you
admit in print black on white,
Zines II and 10 in the second CO.
lum OF page 4, Nolksblatt of July
IS, 1850 that YOU suggested to
the convention that they do not
believe what l was saying. If /
had made a remark like that
about you. you would have put
up a howl so loud that it could
have been heard in your home
town. And rightfully so. because
both in your and my station of
life it is an Insult to suggest that
the other man is not telling the
truth. Alter your admission that
YOU made this remark it is clear
that l had reason for my griev-
ance and that it was not only a
crazy notion of mine. In any con-
troversy, if it it to make any sense.
somebody will have to start talk
ing sense sometime. So / shall
try to do just that.
l am glad that you have made
specific charges against me. That
way may be we shall get some
where. | shall make an effort to
forget your invectives and shall
try to analyze your charges, one
insinuations in a calm way. one
after another. think | can show
you in many cases that you are
misinformed.
|. You say that YOU never had
mortgages on your books at go.
All your mortgages drawn in our
Office call for $50 interest, and on.
ly if payments are made within
the first 10 days of the month,
will the borrower have the ad-
vantage Of the actual interest rate
OF 4h% or so or whatever the
case may be. The prevailing GUS
tom is to extend this period of
grace to 80 days and under miti.
eating circumstances (sickness)
even longer. l know that the
Central Nerband has collected
many a dollar OF deliquent inter
est at SC, because we have done
the collecting. All new mortgages
have been drawn with the same
penalty clause. That's. how care
fully we have been taking care OF
your interest.
2. You say that during the year
lo4o. the Nerband has paid our
Company for procuring and serv.
icing loans the sum of S2527.5O.
While the facts are correct, l
still must say that the implication
is misleading. You did not tell
the readers that Sl54O.57 of this
amount was actually earned by us
for services rendered in 1913, but
only paid in l94o. On any new
loan you do not Immediately re.
ceive the full benefit of the higher
interest rate, because you only
have it for a fraction of a year
and you have to absorb the | %
loan fee. For our Company le4S
had been a exceptionally good
year and we were already in a
high income tax bracket, while it
was to the BENEFIT of the Verbanc
to have. this, expense deferred un-
til the following year. So our Miss
Zednik made an arrangement
with Mr.. Martini under which
part of l948 fees were deferred
until l94o. and that made our fees
for l949 look so much larger. But
since You had at least an equal
benefit out of this arrangement
let me ask you, is it really fail
to make statement like you did
3. You say that the borrower:
pay us for drawing up the mort
gege. note etc. / do not know
where you have received this in
formation. but it is at least parti
ally incorrect. We do not max,
any charges on any straight re
finance loan. whatsoever to tn
borrower. This custom has beer
long discontinued by all loca
lenders. We do charge the custo
| mary eserom fee Of S1S 90 whe,