Well I was curious, so I tested it. I had never used umask before.
here are my results, but not that I understand why:
chmod produced the rights that you thought it would be.
Code:
ster@FriedLiver:~$ chmod 731 temp.txt
ster@FriedLiver:~$ ls t* -a -l
-rwx-wx--x 1 ster ster 0 2010-03-25 07:36 temp.txt
However using umask in a test folder produced answer "c".
Code:
ster@FriedLiver:~$ mkdir test
ster@FriedLiver:~$ cd test
ster@FriedLiver:~/test$ umask 731
ster@FriedLiver:~/test$ touch temp.txt
ster@FriedLiver:~/test$ ls t* -a -l
----r--rw- 1 ster ster 0 2010-03-25 07:42 temp.txt
ster@FriedLiver:~/test$