The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-06-02
FORTUNES MADE BY FRAUD.
SCHEMES TO ROB THE COEORED
PEOPLE OF THEIR DOLLARS.

500 10 500 Per Cent. InteTest-iioYv
the scheme - workcd-BenevOlent
Associations That Gather in the
LuckIcss COIOred BROTHERS Earn
Ings on the PretenSe of Caring for
Him in sIckness-The InStailment
House scheme.
Few people have the remotest idea TO
what IN extent the colored people OF Sa-
vannah are being robbed OF their earn
ines. through Illegal means, by unscru-
pulous white meE.
Savannah and its suburbs have a popu-
Iatlon Of about 5000 colored people, offer
ing an exceptionally fruitful field to this
class OF men. assisted by smart negroes,
who understand the nature Of their race
50 well that they are able. under various
pretexts. to deprive them OF an enormous
amount annually. Of which the public
knows little. and evidently the authorities
know less. or these practices could not
exist and increase from year 10 year.
The loan and collecting agencies are
among the greatest Of these evils. There
are seven or eight Of these agencies or
money brokers FIRMS and the sections Of
the city occupied by colored people are
continually flooded by their circulars offer
ing money to loan on easy payments. Each
one Of these concerns has from $500 TO
5000 loaned to colored people at rates
ranging from 800 per cent. to 1900 per cent.
per annum. Imagine $4,000 drawing an av-
erage of so per cent. per annum or $780,
600 if all were collected. which, of course,
is not the case. But the amount collected
will, however, far exceed 100000.
The modus operandi Of these concerns
is as follows: An applicant wants
money: he leaves his address
at the loan office; an appraiser
is sent to look at the goods offered as Sc
curity, and takes an inventory. Each
office has it's own notary, who is also ap-
praiser. The value of the furniture is usu-
ally eight or ten times as much as
the loan. clean bill of sale is made. and
the former owner becomes custodian of the
property, allowing access to remove
it at the will of the new owner
which is often done, If the payments are
not promptly made. A charge is made
| for appraislng, for the notary's signature
and for making out the papers. AS nota-
| ries and clerks are paid a salary, these
| charges effectually cover the usury.
The consideration is generally 50, some-
/ times S. very rarely so. The amount paid,
| however, is 81 for 50 sale; $3.50 for a s.,
/ and 81 for a $40 sale. Man and wife must
both sign the bill of sale. The loan must
| be repaid in weekly instruments of % cents,
/ Sl.25 or $3.50. AS a rule, the loan is re-
newed every four weeks, and a new sale
I fe eir he
4 least pay the interest promptly, 20 cents
| a week on s. or 50 cents on s..
1t is often the case that the furniture
sold was purchased on the instalment
/ plan, and is only partly paid for. This is
/ considered the best security, as the seller
has made himself criminally liable and
/ win pay up. The same furniture is often
sold to two or more parties, which is also
/ looked upon as a gilt-edge security. One
/ dollar interest on 81 loaned seems to be 50
| per cent but II is in reality much more,
as the loan is repaid in rs cents per week
| instruments. The usurer is out of his
! money as follows: Two dollars for days
equal to 81 for IA days He then receives
IS cents, and has SIPS out for days equal
to 81 for S24 days.
The second instalment of Is cents is then
| paid, leaving 50 cents out for days equal
TO 81 for 3l6 days. The fourth instalment
is clear gain. To sum up, he has had 26l5
! DAYS, Tor winch ne receives 81 interest,
| equal to 1881 per cent per annum, without
| compromising. 1t is true that the loan and
| obligation TO recovery state that only s
| per cent. interest will be charged. AS a
| matter of fact, no interest whatever is
| charged, while the lender charges a fee
| of rs cents for appraising and the auto
| graph of the notary is legally worth q
cents. Every four weeks a new bill of
sale is made out, and the charges are re-
newed, as few loans are discontinued,
| dragging along for months and even years.
| There are seven of these concerns doing
an open business, and several operate sub
rosa The seven have each an average OF
800, possibly 400 loans out, of an average
| value of about 81. From 900 to $15. 900
at 1880 per cent. per annum, is enough to
bankrupt the Rothschilds, yet the deluded
negro bears the yoke patiently
| The town is often flooded with circulars
with large headings. "Who wants Money!
money to loan at per cent etc
| An instance is known where colored
woman borrowed 81. At the expiration OF
81 months she had paid $50 as interest
promptly renewing the loan every month
and she was still $40 in debt, and was
| threatened with dispossession. These col
Letting agencies pay the city fee of $40 OF
$25.
There are besides the loan agencies, sew.
eral so called benevolent societies. con
! Quoted by white men the members all being
negroes. One of these was chartered by
the superior court about five years ago
The incorporates are highly benevolent
and philanthropic men who came here
from New England All the county ever
got out of the association was the court
charges for the charter. No tax assessor OF
collector ever levied a cent of taxes; il
would be a sacrilege against an institution
| devoted to philanthrophy!
One of the officers of this company seems
to be a myth. At least nobody knows hin
or has ever seen him. His name appears
on the certificates only. The manager, how.
ever, is always in his office. There are nc
other officers. trustees or directors.
An applicant to this benevolent associa.
ton pays an initiation fee of So When he
has paid this amount he receives his GER
tlfcate with the bylaws printed
, on the back. The running mum
bers of certificates are above
5000 so that at one time or another $50. COX
have been paid for limitations alone The
present membership is said to be 1000
Each member pays 50 cents per month OIL
Sc per year. and 81 per year for a burial
fund. This entities the member to medical