Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1889-06-08
LArrER.pAY VAMPIRES.
Something About the Busine Methods
Chattel Mortgage Fiends.

The papers made out for chattei
mortgage to protect loan of $10O
have been sent to the Tribune as an
illustration of the way in which the
poorer class of borrowers are feeced
by the Shylocks in this city. The
loan was for six months, and the
principal paper is an innocent looking
document in which the borrower
acknowledges the receipt OF $lO4 indi-
eating the payment of interest at the
rate Of per cent per annum. But &C.
companying this is a series of six
notes for s. each, payable one pei
month during the life of the loan.
Allowing to the unfortunate the same
rate of interest as was nominally
charged him he was required to pay
nearly $34 80 at the end of six months
tor the use of 800 during that time,
which is at the rate of 90 per cent. pei
annum.
Were this case an exceptional one il
would justify the use of severe terms
in denpuncing the extOrtiou practiced
by the lender. Unfortunately, there il
reason to believe it is simply al
average sample of the usage to which
the poor borrowers are subjected Hher
they make the mistake of looking tc
the chattel mortgage sharks for assist
ance in time of need. The father of 3
family who drops out Of employment
after having neglected the wise pre-
caution OF Saving something for a
rainy day, the male victim of accident
or disease which eXhausts all his saw
ings while he is yet unable to resume
work. the widow left with several
small children TO provide fVr
and, perhaps. obliged even to
raise money for the funeral expenses
these are the peculiar prey Of the
bloodsuckers 1t is only those already
in the bitter depths of poverty who
are lleeced in this outrageous manner
The Businessman who has fallen be-
hind in the race and is making "A vain
attempt to stave off bankruptcy by
exiting may have to pay sharply fol-
the use of accommodation paper, but
the figures scarcely ever rise to any
thing like the altitude Of SO per cent.
per annum. One of the worst cases
exposed in several years past was that
Of firm III Canada which failed re-
Gently after having been bled for
month.
The operations of the vampires are
conducted in strict compliance with
the letter of the laws forbidding usury,
but they terribly outrage its spirit
The only document made a matter OF
record is the one in which the borrower
comedies the fact that he has received
so much money and agrees to pay the
legal rate of interest for the use of it,
giving mortgage on his household
furniture as security for the perform
ance OF his contract. The usury
notes are kept in the dark and made
out for value received without any
reference to the document placed on
record. But the latter can not be can.
called till all the notes are paid, a
some who have tried it found to their
cost. The usurers are prepared fOI
all possible attempts at such evasion,
ar one of the most pitiable features
of this mean business is the fact that
''rrputabie' lawyers can always be
found ready to place their legal lore al
the service of the men whose profits
s WI tho Ho11 a ,Nnr,
erty. There is no loophole of escape
except by paying 1.-The uttermost
farthing." If the borrower has the
good fortune to meet with friend who
is Filling to take up the papers long
before the date of maturity he will ask
in vain for n rebate of part of the in
terest Some cases have been reported
in which such offers to cancel the debt
were met by refusal to accept the
money till it was due. The man who
took the notes claims that he has
passed them over to another, who il
conveniently absent from the city, OF
finds some other EXCISE for insisting
on the letter of the bond. Only where
the friend is powerful enough to be
feared in case he exposes the nefariOus
transaction is there the least chance
of any concession from the full meas
ure of extortionate payment that has
been once agreed to by the unfortunate
borrower.
This systematic oppression OF those
who are already so poor as to deserve
sympathy if not to command assistance
in the hour OF need is one of the worst
evils that exist in large cities. 1t is
especially deplorable, as it tends tC
| break the hearts and destroy the self
respect of the sufferers from the ex.
tortion, while it furnishes the poorer
malcontents with the strongest pos
sible arguments they can think OF in
favor of anarchy. AS the only phase
OF capitalistio aid with which they are
familiar it Is easy for them IA regard
all capitalists as oppressors, having nc
right to the possession OF their veal b
and radical enemies TO the rest Of the
people, No better service could be
rendered in the rectifcation OF this er.
roneous belief than by an effort on the
part of the rich to abolish The crying
! shame that now characterizes the chat
| tel mortgage business in this and othel
cities Ii would immensely improve
the morals of the lower half OF the
community. besides affording individ
ual relief from extOrtiOn in thousands
Il i