The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-10-03

| anu tio pTouIb OF Jne n0n-D0rrOWeTt
would be just so much the greater Well
the bids offered, incredible to say, were
irom 70 to 80 per cent, yet these shyloCkf
coolly accepted them. To illustrate: a
member having 10 shares, and having
paid his first monthly dues Of $40 ISL pei
share), bid 70 per cent for such advance
payment of his 10 shares. The amount
Of 10 shares being $4,000, from which de-
duct 20 per cent viz: $500, and the amt
actually received was only $500. But
from this should be deducted the first
months dues of $40 already paid, ma.
King net receipt only $500. For this ad.
vance payment he now, under the plan
OF these ShyloCks, had to pay monthly
during years his dues Of $40 per month
and interest, not as authorized by law,
on the $500, but on $1,000, the interest
amounting to $40 month, making to.
tai per month Of 500, and aggregating
during the eight years the sum of ST. ,920,
NOW $40 a month for two years and two
months would have paid back principal
and interest the $3.50, counting interest
at per cent, yet this victim was COM
PEELED to pay $40 month tor five years
and ten months longer, to enable him to
get homel
Let us suppose the eight years to have
elapsed. This borrower received $3.50
and has had eight years. use of it; eight
years interest at 6 per cent is $235, 20, to.
tai received $725,20. During the eight
years he has paid 1920 in monthly in.
stallments Of 500, interest $460,S0, total
S23SO,8O On the other hand a non. Dor.
rover owning ten shares has paid 1850
in monthly installments of $40, interest
S23O, 40, total $1l90,4 and at the end of
the eight years receives $4,000. The &C.
count stands thus:
BORROWER. NoN.BoRRowER.
Amount paid"mS1 $4,000 Amount paidn.S96) 100
AnIerebI''''""."", 46O,S lnterest,",.,"", $50 40
Total paid.",S28sOSO Total. ..Sll9O 90
Amount reed c'd.""",e49O0 Amt eC'd..nmS2O00 90
nterest'""'",.ms235,2 40
Total rec'd,.,"".,S72S,20
Loss.." ......"Sl6566O GSln.,.,,,.....,,,Ss09, 80
That is, one receives back his prinGi-
pal and interest, and In addition thereto
$SO9,6O, and pays no taxes in the eight
years; while the other, in addition to
paying back the amount received and six
per cent per annum interest, loses the
SUM of 81 ,655,60. Or, in another aspect,
the one received on his investment in.
terest at q per cent per annum, and was
exempt from taxes, while the other paid
48 per cent per aAnum interest on the
amount received to enable him to get a
home; or in other words, for every dol
lar invested, including 6 per cent inter-
est per annum on the amount paid as
principal, the one received $1.68 and
the other 303 cents to enable him to get
a homel Such was the scheme organized
by these Shylocks under the mask of
philanthrophy to rob the poor. Nor is
the instance given an extreme or exCep-
tional one; large numbers OF these poor,
deluded victims received advances or
loans on bids Of rs per cent nd--some as
high as 80 per cent.
If this master Of finance, Mckinley,
and the other ShyloCks who we'll knew
the workings of this scheme, had pos
sessed a shadow of feeling for their poor
er brethren, they would have guarded
against the improvidenCe, and the eager
ness ofthese poor men to get homes who
understood not what they were doing
by limiting the bids for such advance OF
loans to moderate per cent, and when
bids reached this limit have the bidders
draw lots for precedence in receiving
such advances. But instead of this they
encouraged them to bid high, as we have
said.
But this is not all. These poor men,
when receiving such advance or loan
had to give bond and mortgage to secure
the payment of monthly dues and inter
est. In the instsnca giyen, the man wbe
!. "a AocetSeu S45O on hls'ten shares was
compelled to give bond and mortgage
not for 500. but for $4,000. And never
did Shylock insist upon the full letter
of his bond with more persistence than
these spectators.
A bylaw provided that the recipient
of such advance or loan should pay the
cost of bond and mortgage, searching
the records, recording, stamp, &c, and
he was compelled to 60 to the assoCia-
tion's attorney, who charged three prices
for this work. Then these ShyloCks
provided a system Of fines wholly with
out and in defiance Of law. The law au-
thorized, and 80 the Supreme Court af-
terward decided, moderate fine for
nonpayment, not of the interest, but only
of monthly dues, and only Of one fine, no
matter how long the dues remained un-
paid. But according to their system, a
member who was in default had to pay
a fine of ten per cent on both dues and
interest, not only once, but for every
month he was in default, and further
fine of ten per cent on every unpaid fine
in other words, he was compelled to
pay, if in default, upon the amount in
default, interest at 10 per cent Compoun'
ded monthly until it was paid.
In the instance given, suppose the
man who had to pay monthly $40 as
dues and $40 as interest, failed, through
sickness or loss of employment to pay
one single monthly installment of $40,
and though meeting every monthly
payment promptly thereafter, but is una.
BILE to make up that one default Of 500
for period of seven years, the amount
Of his fine would now be the enormous
sum of $58, 1886, 80, while all the fine su-
thoriEed by law would be $ll Such was
the Internal scheme to rob the poor un-
der the mask of philanthropy.
Well, a few months after the inaugura-
ton of this vampire business, defaults
became numerous, owing to depression
in business, small wages and scarcity of
labor. The extortion mill continued
grinding and robbing the poor members
to such an extent, that those who sur.
vived the ordeal, and were not sold out
when the decision of the Supreme
Court came, found that they had over.
paid so much that they were exempt from
paying monthly dues and interest for
two and ahalf years, some for three years
and more. In less than year after or
ganizing they began foreclosing mortga-
ges--all to help the poor to get homes.
The court docket shows 80 suits! Eighty
heavy bills of court Costsl Eighty fat
attorneys fees for the associations at
torneys, all to enable the poor to get
homesl
As we have said, Mckinley was secre-