New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-12
PAWNBROKERS' EXTORT1ONS
THEIR EXCESSIVE RATES OF INTEREST.
HOW THE POOR SUFFER FROM TIIEM-fohEi"N
PUBLIC EXCHANGES.


PUBLIC EXCHANGES.
Rates Of rntcrcst-On Of 100 Dollars or under .
Der cent Der month"; fraction thereof 'f hr'' sN
months and . per cent per month thereafter
On sums OF over 100 Dollars per cent per month LOT
first six months and per cent per month thereafter
The foregoing Is familiar 10 many. som" people
have an opportunity TO read II 80 often that they hho"
II by heart. 1t Is on every pawnbrokcrs ticket wch
is given 10 people when articles are pledged at the
loan Office. The ticket Is generally made OF brow"
paper and Investigation shows that 1t Is as iamiiar
IN the snpposedly wealthy the Spectator and the
welldrcssed man as II is TO the poor artisan anu
laborer who so often meets rcvcrscs
During the cold DAYS OF this winter thousands o'
New Yor's poor have been forced 10 resort 10 ''e
pawnshop 10 keep from freezing. ana for money 'iS
obtained the needy have paid interest OF more than 30
per cent year. Thirty per cent Ncar' S"'h -
the exorlItant rate that has been fixed bv law ana
tbe tbousands OF victims who are daily forced TO
pa,roryc the American pawnbrOkcr are svstema'icnV
robbed in many OF these licensed INSTITUTIONS. III
some OF the larger places legitimate puS'h'SN ~,
cordng TO law. Is carried on. ana inc excessive "o
per cent rate IS all that Is required OF hem n '"l'
fnl investigation however shows that In MANY OF the
pownshops dIshOnorablc methods are r"sort"d TO- anu
instead q, thr rate granted by law being rec0g
n,ycd the brokers so manipulate the figures on the
pawn ticket furnished 10 every patron That In realty
many OF the needy frequently pay interest NJ vi" rate
OF about 100 per cent per annum. FOR cN'hhP'' !"
poor woman whose complaint was made to IN" super
Intendcn Of mission tells the following story OF now
she was swndlcd She pawncd a SO clock for So ana
that amount she received. Two months Ia''r. WIZ"
tbo woman went TO redeem her property she learned
that the figures on the ticket read 90 so Instead OF
81 ,, and She was forced TO pay 81 GS before her
property returned 10 her. In ms case nv
amount on the pawn check increased without the
knowledge Of the person In need OF money Men WHO
are under the influence OF liquor poor old women an"
children who are sent to the monev-lcndcrS are IN
this way imposed upon but In many Of h" cases inc
figures are fixed on the ticket with I'll" knowl"dGa' II
M, bv thc consent OF the patron. For example. II
any one goes into u certain pawnshop in Third ave. IN
Yorkvfle the pawnbrokcr will say. II the article 10
be pawncd Is clothing:
ave have to take good care OF this ana therefore
Won must pay so cents extra"
The victim wants money and he mcckly submits
II thc article Is piece Of furniture the same reason
l. given and storage charges are demanded IL
diamonds an extra Is imposed for Saf"k'cpns'
A LAW ALWAYS EvApED.
Tbcre f. n law on the statute hooks Of NcwYork
state which requires n pawnlrok"r TO return I" MS
notrons all money In excess Of the amount pledged
less IN. Interest ~ the article pawn"d Is ever S"n
This requirement by law l. ALWAYS "Nad"d' Ih'S y
how II Is done. person pawnS ri'o wa'ch i"'
s15 and the article has not been redeemed NJ 'h' 'N
pIratfon OF wear and the Interest Is unpaid Inc
pawnbrokcr sells the watch TO some Of his friends Tor
tho exact amour, the owner would hav" Y" paw i"r
It's RETURN At any rate the records OF the pawn
broker show that scl sale has been made. nnu VI"
owner OF the $50 watch. when II Is subsequently
sold for S13 or 900. does not realize doHr on III"
sale
Even more dsrcpu'anle methods than tho'" shown
In the foregoing are rcsor'"d 10 hV I'd" ny" '"'N
pownhrok.r The propric,orS o: certain loan ONO"
Lilo mot I'm
station whose tickets ALWAYS inform patrons that
they are "not accountable I'm cas-" 81 fire. DAMAGE.
moth or robbery" have pract-"d methods that should
give them terms In tho pcnicniiary. A. TAR hh'k
~ september 10. lS77. md August II" 1H"l 'h'' hp
rarcnilv entered into conspiracy With number "'
acrooks" 10 dishonesty obtain money. NJ different
fines between Iss7 and 1901. and probably later
they issucd large number OF pawn tickets properly
numbered and properly recorded In their books. Ac-
cordlnr the records still In their possession diamond
rings valued NJ several hundred dollars each. valuable
watches etc. pawncd In their place. ana III 'a'h
case amounts ranging from $40 10 $40 were. 10 all
Appearances advanced on the property. Pawn checks
showing that valuable articles were at ia" pawnNh"p
az security with the name Of the Hebrew proprc'ors
ON the top Of the little brown paper checks In som"
mysterious manner got Into the possession OF Iot Of
"crooks and the result was that about thirty people
Who frequent the rncctracks and poolr"oms were
svindcd bv being induced 10 buv pawn checks which
5000 or = 800 diamond ring had been pledged. TIL"
amount that had been advanced on the jewel accord
Ing to the ticket was 80. and the man al The race
track or poolroom who Lad /, told pitlfu tale about
| losing nil his money on the last race" and he
wanted $40 "to play n dead straight Tip"
COMPLETING THE swINDLE.
The men with these tickets found victims and
when the pawn checks were presented nj III" loan
Office the tickeholdcr Informed that the real
owner had said n month before that h" had lost his
ticket and having proved his property 1t had been
returned TO him. The records I'm the books w'r"
shown IN snhsantaic what the broker said. and the
man who had paid 80 si5 on bogus check Sc
cured no satisfaction In most cases The victim mad"
no further complaint Int several Of the dnpcN Fough
the matter 10 the attention Of IN" Mayors Marshal.
and when the proprlcors Of The loan office asked
under oath to explain. they did to the entire salts
faction Of the presiding official and the victims found
no redress II Is said that Tammany regularly taxes
the paw nhrOkers for political purposes. ard the
financial assistance received from this source l. so
substantial that complaints against the money lenders
are not always pressed with Nigor
IL IS the prediction among many that II the pawn
broker continues with his usurious and di,honornbc
practices many years longer an open revolt certainly
must follow IN Russia the man who practiS"d nsury
similar 10 the methods adopted by some Of the Amcri-
can brokers was mObbcd and driven out OF certain
parts Of the country The claim was that he was not
producer in any way and that he lived by the labor
OF others.
TIE MONT DE PETE OF PARIS.
An Institution that Is sadly needed In the larg"
cities OF the United states Is similar TO the Mont
de Picte OF Paris. This institution was started In
the interest Of the needy soon after there was n
vigorous uprising against the mon"ylendrrs who
charged such extortonate rates Of interest We're 1t
not for the generally prosperous condition Of affairs In
America there probably would have been n popular
uni Ing against the pawnbrokers on this sid" OF the
Atlantic long ago. The revolt Will come. thinking
men say, II the present system Of cxtorlon continues
much longer and their places will BE- filled by mops
d. picte.
MOnts dc pictc are not only public lns'tnohS I'D
Paris but in many parts OF continental Europe. The
Mont de Icte Of Paris Is the most famous place OF IT,
.Io= lcrc limit