Morning journal and courier., 1894-06-14
EROTHEEsLY LOVE.

Philadelphia is widely known as the City of Brotherly Love, and there appears to be good deal of brotherly love in the way some ''loan and trust" companies in that city have been making money out of the needs of the poor. A citizens relief com mittee has been looking into the matter, and it has made some startling discoveries. The committee found one company whose agents tell the poor that by paying S2 weekly, they will within one or, at least, two weeke, te entitled to a loan of $100. When the victims make application for loan they gre notified to offer a premium, and that the loan will be made to the high est bidder. The average premium, accord ing to the statement of the secretary and treasurer, amounts to 55 per cent {; in other words, person wanting to borrow S1OO has, (if the loan ia granted at alp $55 pre- mium deducted, and receives only $45, but must sign and pay judgment note of $100l In many cases, after the victims, who were in sore need of money, had paid in $50 or more, they secured loan of $45, or really legs than the amount they had paid in themselves. Thus borrowing $45 of their own money, and paying for the privilege of borrowing this the cum of $100.
 The committee found that the average rate charged by SC called loan companies was about 20 per cent. month, but some money lenders contented themselves with the easily computed rate of 10 per cent. 8 month, payable monthly. As the laws of Pennsylvania provide for the recovery of 1 interest iu excess of the legal rates, good deal of money was saved to the victims by the interference of the committee, not 60 much in the way of recovering interest already paid as in foIcing the sur, render Of the obligation. For instance, a woman who had borrowed $75 in Octo Der, 1891, had paid $750 8 month until the total amount paid by her was s142 50 During the hard times last winter it was impossible for her to continue, and when her children found employment again ir the early part of May she called on the money lender to get statement of wha' she owed him, and was informed that shs now owed seven months interest, amount ing to $52 50, and the original loan of $75 or a total of $l22 50 (this after paying $142. 50 interest on $75 in about two years.
 The money-l lender on being called upon
 not only for the surrender of the judgmen
 note, but also for the recovery of the usu
 rious interest, refused the latter, but ol
 ascertaining that the committee was deter
 mined to bring the matter to an issu
 agreed to return the judgment note of S7
 without any further payment.
 A summary of 359 cases in which ther
 were eighteen different lenders shows ths
 the sums lent aggregated $14, 393 50, th
 interest (for an average term of seve
 weeke) $s,3S6 63, being at the rate of 4S
 per cent. year. On the other hand th
 much abused pawn-broksrs~we were found
 be generally complying with the law
 They are allowed to charge a rate of 6 pc = cent month, and few of them were foun trying to obtain more.
 r These revelations are calculated D encourage pe..simism. That robbery ( n the poor should 80 flourish in the City (
 Brotherly Love is sickening and oynic
 illustration of the possibilities of huma
 nature.