Arizona weekly enterprise., 1890-11-01
REM1NIsCENcE OF A LOAN AGENT
Loaning Money in the West at High Rates.
Denver \. ". Financier.

A number of years ago gentleman of considerable dignity and self conceit, came out west and began to loan money at high rates, for his friends back in Connecticut This man was very wise and did not need any advice or assist ance. He openly stated that he would teach us Western people how to do busl- ness.
 He made one loan of S2,000 secured by mortgage on a farm which was not worth to exceed that sum. He took a bond and mortgage for five years at twelve per cent interest, payable semi annually. After two or three years the party in Connecticut who had furnished the money sent all the papers to the writer of this for collection, as he had re- ceived no interest. I sent for the farmer, who came in to see me. Like Micawber, he claimed to be honest, and would deed his farm to the mortgagee. 'There Is no use," he says, ito try to pay out at twelve per cent interest. This high interest has ruined me, and it will ruin any farm er."
 It was difficult to understand how he was ruined by interest which he never paid. 1 asked him how much he could afford to pay, and he replied, seven per cent was about right, and he was some what surprised when 1 offered to forgive him all the interest accumulated and charge him seven per cent, from that time on, provided he would pay up his taxes, then delinquent. I need not state that nothing was paid and that after two years l succeeded i'll selling the farm for $2,000 so instead of twelve per cent. per annum our Connecticut investor got no interest Gt ali for five years, and doubt not never ceases to abuse the West and condemn its securities.
 Let me here relate another circum- stance coming under my observation. A gentleman came out from Pennsylvania with $6,000 New York draft in his pocket He had been accustomed to receiving six 1 per cent interest on his loans but heard of the wonderful profits of loaning money in the west. He went first to a very re- sponsibe broker who offered to take his money and invest it for him in short time | paper and account to him, at the rate of twelve per cent per annum and guarantee the safety of all the loans. His guarantee was good. Surely this should have satis- fled a reasonable man. But no he sought for more, and found firm we'll known to be totally unreliable, who assured him of their willingness to take his money, and account to him at the rate of three per cent per month. This suited him and he forthwith closed the contract delivered his money and took a receipt, which I atterward saw, reading about as follows Received of--Six Thousand Dollars to loan for him at three per cent a month | Like our Connecticut investor. he wait ed two years in vain, for interest or prin- l cipal, and then came again to look for his securities. Realizing his mistake, he now secured what he could obtain of the wreck, and put into the hands of re liable man who informed me that he ex- pected, by careful and diligent effort in the course of another year, to save for his Pennsylvanian-three-pe cent-a-month-in- vestor, about fifty per cent of his prin- cipal.
 Now who was the blame for this loss This man has never ceased to abuse the West and prate of the dishonest people. How often has he told the story over and over again. His neighbors have all heard 1t, but he has never once told all the facts, but only that he invested S6O0C J in the West and after three or four years [ got DdCrA OIlIJ Sso,ooo t.iIgI IU IuISTSst
 These are only samples of investors who have made fools of themselves and howl against the West.