New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-05-19
BROADWAY, F AiSTH SITS.

lending money on chattel mortgage. and the rate
on these loans was fixed at per cent a year This
last named business In particular has been sue
cess In every way Not Only have thousands OF
poor people had chance to get on their Feet again.
but hundreds have been kept from falling victims
to the extortons OF the chattel mortgage sharks
and many have been rescued from the clutches OF
these INSCRIPTIONS money lenders. even wnen they
were already heavily In debt to them. Starting out
with a capital OF 5000, sum which has since been
Increased to $780, the st. Bartholomew Institution
has demonstrated not alone that II can make q
success OF a charitable undertaking. but that the
lending OF money at the rates II charges Is paying
business
The promoters OF an enterprise at bunalo OF
similar nature but conducted on purely business
grounds, undertook 10 secure the passage OF law
favorable to such Institutions by the Legislature
al Albany 4 law known the schoepnin act
waa passed In the early part Of April. but through
the opposition OF certain New.yofk members. tho
law was limited 10 counties having "a population OF
less than 0UVe This limitation was undoubtedly
brought about by the money sharks OF New-Nork
and brooklyn. MIR Mcknight was sent to Albany
to try 10 secure the passage OF AN amendment
which should extend the terms OF the act to New
York and Kings counties In this he met with
entire success largely through the efforts OF senator
Cantor and OF Assemblymen Wiids. O0rsdy. Percy
schoephn and futile. 1t Ii hard to overestimate
the Importance OF this legislation and the beneficial
effects II will have on a movement That u one or
the modern efforts at reaching out to help and save
a class that In all ages and all countries has SUI
fered through the extortoner The new law pro-
vides that any three persons In county OF the
State having population OF more than SooO
may organize a corporation for lending money on
personal property In sums not larger than *2oo IL
vests the direction OF such institutions In the state
Banking Department. and requires the ncorpora-
tors to give a bond OF least 5000 to be accepted
by the department for a faithful compliance with
the law.
The interest is fixed at per cent month for
the first two months and per cent thereafter 1t
also provides that the Banking Department shall be
empowered to examine the books OF such concerns.
and when their earnings exceed a maximum OF
10 per cent a year their capital. the department
shall the rate of interest TO be diminished to
a rate which will bring the profits down to this
Here is one of the strongest things to be found
clients who will furnish evidence convict lenders
who chars, higher rrrs than are Ss aGe orr
sanzsd under It's provisions to sd make loans se
manner as is now done by the pawnbrokers
Mr.. Mcknight says 49,.
establishment OF loan agencies in every large ely
in this State for the lending OF money on p.edges
Would be treated with the same fairness as are
who deal with banking or o' has
been no recognized law :or the regulation OF the
one under T which the pawnSrokers doing bust
ness the business Itself has attracted a c.ass
their e Customers and using many devices for the
tortion Of money. AS II 80 per cent year wene NY
Ing fees and putting on charges that the interest
they obtain on their investment is often more than
Under this new law 1t will be possible for
ana aSansrSp men to Their enter
prise to establish loan agencies In which may %
e sbaY oEi Win sna FAIR
capital, they can make their rates much lover than
est so high in the new law is to induce the es,ao-
Iishment OF reputable concerns to dspaee those IS.
brokers and money lenders -, a. 49,.
Lawful Charging OF interest at the rate OF IS per cent
a year. The victims OF the money-lendlng sharks
CURED to pay a higher rate than this The minimum
s q the snse % S%rr. men S Gases Is SaW:
come to my attention is over 200 per cent The law
in the right sn It viii De spnsS 10
men to enter this field OF business -, A..
present money lenders viii take advantage this
act and establish themselves on decent ana iegiti-
tain that all who practise extortion may be sue
II a s sc' IN S S 1ss
gains by due process OF law II Will certainly be
dr as inc II
+, York and Brooklyn to establish money-ending
SSrscod and WA vat be ~
even sn 'sf Min interest At
| per cent. would have to be conducted with care
economy and tact Iney snoulu embrace 10 n iarSc
| extent. the phlanthropic idea, and motive OF
| humanity might enter into almost every trans,
| action Without deriment. and even with distinct
| advantage TO the business point Of view. There
| NAV be some doubts In the minds OF those who are
Accustomed to looking down on the pursuits OF pawn
brokers' and money lenders on the shark principles.
| against entering into this business but with such
| men as Robert Treat Paine and Dr. Greer en-
| gagged In the chattel mortgage business. together
! with such prominent and influential members OF
society as responsible for the carrying Of the
Provdcnt Loan PLAN no one need really feel at all
much 70 aid the general prosperity OF the country"
! Loan Bureau has not the slightest idea OF takine
advantase OF the law to caargs The m4xmum rateS
Bureau will decide shortly On neU schedule Of ~,
torool rates and chasGoos