New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-05-05
pAWNBROKERS FLOURISH.
THIS ~ LITTLE TO Re WONDERED ~
WHEN THEIR METHODS ARE STUDIED

TOTAL or so Il'k 'l'''' ~ ~
TEL. MORTGAGES "sIIAREs' WHO A''b
eovrr,Mrs woEsE-THE rRENcII
SYSTEM ANp ITS ABUSES
Inouir.cs on the subject OF the overcha'ses o'
,,,.ne,,,rs and ,h. greater vanlcs Of the chat
,ci MORTGAGE .sharks' cannot fan TO sugs'S' '"e
Indignant question why a. this shame not w.
out? senator OGradys bill Amending III" III,
code relating to loan use or siie Oh p'' ' ,u
accommodating usury" has become Ia" ,.'
20 into c0cct on September next All au'n"' .'''S
agree that the Legislature dd not let any ''1 49,,
gorous to any OF it, friends get past u a,,,,,,
bin hocaue a law, All its teeth were hrst odieIu"'
drawn and I; may be safely lapehed now
ran:ed not dangerous" Between pa"hoo"o 49,
chatte-mortgage interests there II ai'ose'
much money invested in New-York city ana ''''e
to permit the passage or any ''''"
without strong struggle. =,
,rboro arc ,wo establishments doing business In
Til city which prove how right IT IS 'hat 'es'' w.,
be taken TO save the Industrious poor '''''po'
hard pressed by misfortune or Illness ron ,t
tionate charges by pawnbrokefs. Inc WV
lishmcnts are the Provident Loan SoO'e's anu Wv
ST bartholomew Rescue Mission Loan bureau anu
their experience shows that it Is prohao'e 10 enu
10 the deserving poor at moderate rates d. ~
Mcknight. OF the St Bartholomew Miss.o"' '"''
loans on chattel mortgage at per cent VIII 80
reasonable return on capital lhNeS'c'' ""N -
HcChf. the superintendent OF tH'
Society says that loans on personal p'cns'S At -
nor cent will furnish a dividend Of per cent 10
the society.
Inst why. in the face Of these facts. pawnorokers
ort allowed 10 charge legally so per cent year.
and Illegally no can tell just now niue" i''''''
while lenders on chatiel mortgage wrinS uhoe"e'"-
HE pcrcentagss from the unfortunate VINO must
h.,a money al anv price 1t would be diicult 10
WHY doesn't somebody stop It? Whose duty is II
70 stop il? These tho TWO questions one ""'"
rally asks himself on finding out the outrageous
STATE Of the things 10 which the poor IN Ne"-iorH
must submit In the first place. 1t is not easy 10
eradicate The evil The statutes not too clear
IN tho sibiec, and not at all severe. To revoke a
pawnbrokers license requires more U"'ole anu ~
pense and red tape than the average human p"ihs
is willing submit 70. There Is, 100 'hf ha'"'"'
pride o. the casual visitor to the pa~nsnop' VINO
,orfsiis his p.clge or pays the impos and tearing
himself away saws "Oh it's only for once III never
90 ,he,e any more" while another class OF victims
are too poor too ignorant. too broken phys'eaAY
,neni lly and morally. TO care or even thinK OF
Furnishing their opprcssors
TERMS or THE LAW.
The following Is copied from Section OF the ar'-
Gle entitled 'Pawnhrokers" in the Revised statutes
OF the State - Ncw-fork:
Rate u Inteiest-No pawnbrokcr shall ask de
mani receive any greater rae OF 'n.','.n nI
per cent per month for the nrst SIX noh'lS a ~
cent per month lNT 'd'H 7'N'
lnnn any loan not exceeding the sum Of 800 or thih
per cent FOR the first ak months ana per ,,rl.
for each succeeding month on any 'o"h 'N''''''"
Thirty per cent year for sums OF less than 500
Section says.
II any person shall be aggricved by the miscon.
recover judgment against him therefor, su'h person
may after Inc return unsatisnei either IN wnol" Or
IN part OF any execution. !ssu"i up'n SAN JHlt-
he bond Of saI pawnhroker in any court having
court shall upon Application mad" ior 10" pn'P'''
Section 10 \ person who carries on the business
81 4 pa~nhroher without license - s'lP 81 "
i!islein"Atof.
Ie 81. also guilty %, mislerncnnor for refusing
70 show STOLEN goods or FOR selling any article IN
less than one year after its receipt but not for over
charging his clients
A prominent lawyer George ". Carr said that
IN order 20 punish pawnbr 'kcr for ovefrharslns
II would be necessary 10 take civil proceedings
against him then his license might be revoked hs
tho Mayor. nf'cr which. II D." resumed business
without a license he would be- guilty Of misie-
i,eanor and could be- punished.
'Piaiuiy then the remedy lies with the victims
themselves. It IS noholy's duty 70 protect them.
AMI under such legal projections as these Just
cited Ne~-YorN city pawnbroker fc"ls SAFE.
To punish him some one he has oHrrchafSci must
get a judgment against HIM for the amount IN *
cess Of the legal II the Judgment - not salts
fed either wholly or IN part" the victim may
alwavs Of course, that any court having JGrisdc-
ton Of the amount claimed shall. upon Application
made for the purpose. grant such leave TO prose
cute"
HARMLESS BILL.
Here IL tie O'Grady law. which may be pro
nounccd absolutely harmless 20 anybody not seek
ing to DO eooi 20 the unfortunate poor by lenalhs
their money at n low rate OF interest:
CHAPTER y An act to amend the Penal code re-
la'ng 10 loan. use or sale Of personal cr'dit Sc
Iccami~ a law March D. 1885. with the approval Of
the Governor Passed. threc.niths being present
in Senate and Assembly, do enact as f9ne .s,.
e,on 60 c 70, rSa s o, a. ' fod r9a o'e !
27S Taking lsnry-A person who dr"c''y or d IN,
sideratlon upon the loan or fofhearancs OF mon'y.
goods things in action. or upon the loan use OF
sale Of his personal credit in any"is' "here there
Is taker fOi such loan use or sale o! personal
credit security dpon any household furniture ~
Ing machines. plate or silVcrwhrr IN hr'na! Hsr.
tools implements Of trade. wearing arp"r1l or or
personal ere III aforesaid makes pretended pur-
chase Of such property from any prison "'n pr '
greater than per centum per a"hu" ~ su'''y ~ "
> This act shall take effect the lat day OF sep
;cmber. l''3.
This bill Is Ike the oll-fashioned bundcrbuss.
more dangerous lis friends than 10 It's foes II Is
likely to drive the money -endcr who would prefer
being honest out OF business. aud almost 10 compel
the dishonest man 70 charge cxorban, rates. And
the Legislature has Limited the penal provisions %
the usury avs to taking than the legal rates
only whore goods chattc!s are left in possession o.
;he lender. There l. nothing whatever In TINS "a"
that applies to pawnbrokers. Then. TOO. the chat-
tel mortgage business should have been legazed, In
stead the rae has been low a. TO compel every
one having a strictly giit-elgei security 10 re-
sort outlaw for loan AT necessarily eN-
orbitant rate.
The following is a copy OF act In this direction
drafted b. Hoffman Miller the lawyer;
Taking Tstrv-A person who directly. or Indirect
IT, receives any interest discount or cohsidrrall non
upon the loan forbearancc or money. goods or
things action upon the Loan use or sac 81 MS
personal credit anywisc whore ther" Is taken lot
such use loan or sac OF personal credit. security
, upon any household furniture sewing machines
plate clverware. IN actu1 use Tools or l"p'e-
men,s Of trade. wearing apparel or Jcwery. or as
security for the loan use or sale OF personal credit
as aforesaid. makes a pretended purchase OF surh
property from any person. and permits the picdS"r
to retain the possession thereof greater than per
cent per annum. is guilty u A misiemeanor. eN-