The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-05-03
AN EASTSIDE LOAN BUREAU
SUCCESS ora MODEST ENTERPRIsE
IN EAST BROADHAT.
Started by Poor Men 20 EnabIs Their
Poorer NeiehborS 60 TIDE Over 11nnes
OF Need Success OF the Methods By
which It H. Opernted-1ts Losses Small.

witch It ~ Operated-Its Losses 5mni
Several attempts have been made at dlreren
times In tho last few years to establish In thi
city n loan bureau where the poor OF all religion
and races might borrow, without the paymento
Interest," small sums of money to tide them owe
times Of need. Almost invariably the attempt
have failed. and different reasons have beef
given for each failure. The principal cause o
failure seems TO have been a lack OF proper sra
TEN in handling the business. They invariabl,
started with small capital and lent money OF
worthless household effects. In only one cas-,
out of fifty the goods we're redeemed. and wher,
they were forfeited and were put up ~forsale a.
auction they brought about n tenth o.
tho amount which had been lent on them
Even loan bureaus backed by influential
churches and charitably inclined mon OF
wealth could not stand this gait, and one by one
they dropped out OF existence. until the only
one Of which anything Is generally known In
the city to-day Ia that conducted by Sc. Bar
tholomew's Church Mt Twenty-second street
and Fourth avenue. This church pawn shop
has been managed on ~stricter lines than those
which rose and fell before 1t. hence It's partial
success. Recently, however, crowds had to be
turned away from it, because there was not q
cent left in the Golfers to lend. Every dollar of
the capital had been lent, and no one had re-
$3.50 - h'S taeNkNoh W " VI ~ ssN'
Consequently the work Of the st. Bartholo-
news loan bureau was brought to n sudden
stnndstill. and IL remained in that condition for
several days.
There is In this city, however. one loan bu-
reau which has prospered for four years, and 10
getting into better shape every day. II is man
aged by poor men. who contribute 80 much a
year toward filling the gaps caused by the failure
to repay loans. Its official name is the Hebrew
GamiIeth Chasodim Association. which means
the Hebrew Free Loan Association, and though
II is a Hebrew charity and does the larger part
of its work among the Jews OF the east side,
men and women Of all nationalities and creeds
may apply to 1t and receive assistance. Irish.
Germans, Italians, negroes. and people Of many
other races have been assisted by the associa-
tion. and, TO the credit of the poor people who
have to go to IL for help. II may be said that the
exact amount lost since Jan. /, 1902. when IL
started in business. has been S7S5. while the
loans during the same period have been S8l 900
Each year the deficiency has grown less. until
now the yearly loss promises to lie trifing In
the future.
1t was early in December, 1901. that q num-
Der OF East Broadway merchants held q meeting
In the EldridGe street synagogue for the purpose
of aiding the poor of their race on the east side.
Not n man at the meeting was even what might
" eiiS Z W W., u MA SteH lu6 misery
of the people about them and concluded that
something must be done for their relief. You
see another kind of misery on East broadway
and the nearby streets than in other poor quar-
tiers OF the city. Here you see the misery OF
eviction, old and young, and sick. turned ont
for non-payment Of rent. the debt usually
to five or six or possibly ten dol
lars, It wa. to stop this sort Of thing
citation was started. Tho organizers knew ex-
actly what they wore about. and more than
anything else knew the character Of the people
they would have to deal with. They organized
the bureau after the plan OF similar charities in
France. Germany and Russia. The original
plan was to loan money on pledges, charging no
interest. but Insisting on the redemption OF
pledge within a certain time. Several hundred
the bureau. but the original plan had to BIO
abandoned because it was found that 1t would
for which a fee of $500 would be charged. a
STRONG, effort to obtain a charter was made.
three Justices dnn. Of the :, Supreme Court making
Secretary OF State sent tho petition back with
word that there was no law to At the case, and
Then there was another meeting of the mer-
chants, and 200 people attended 1t and pledged
to their means. to keen the bureau
going II it could be once established. To keep
within the law It was decided 70 loan small sums
ever. being obliged to give a note for the amount,
note must be endorsed by some person
-" iio't W. p'ooVoSioiiS 9 c"OTth hI lckbL
as much as the amount borrowed. Further
more the borrower had to pledge himself to re-
zach SIS he borrowed. unless he could show that
he was absolutely unable to do so.
ON these lines the Hebrew Loan Bureau
n private residence at l9i Madison street. and
on these lines it has been conducted ever since.
The projectors OF the scheme made a practice
during the first few months OF its existence Of
the heads Of all evicted families to the
md they were able to secure nav Duartera
Immediately, Naturally it. didn't take
long for the newsof the existence Of the bureau
to spread. and in the first rush or applicants for |
were many underscrving persons who
came to effect loans, which they had no idea OF
ever. aud few Of the imposters secured loans.
During the first year Of the bureaus existence
SsS'S Ss 9i wa rn if" 1T Il the '' ssar 1 sa%: s4S Soa r FL 'S %a.
considered n very fair showing. and when at
r. ,SSd, Of xI Is' 3 I@s s .; IS, 's ssSS, IL, fs.a, m iSsns ..
The year 1894 was even better, the loss being
100, and tho loans $4,000; while 1895 passed
with loans to the same amount, and n loss Of
exactly Ss5.
During 1894 tho bureau moved to lO2 Eas.
and in 1895 quartors were secured
l Canal street. The bureau has been there
sver since. The ~capital now y $4,000, but It is
10 DO increased IN a few months. and the bust
ness is to he conducted on q larger scale. The
avs OF 1905 allow the .chartering of a corpora
So 80 Henry IL i19D street meeto y H large gte store has peseens s soeare cd.
and in o. few months the bureau will move
notes. and the good of the bureau. according to
Philip III. Sanielson. will be increased
M interest will be charged. and Mr..
Sanielson and his fellows will defray all the ex-
pcnso of conducting the bureau, rs well rs meet
al losses incurred through dishonest borrowers.
The good work done by the bureau up to date
3 surprising. Hundreds of families have been
.Rved from eviction by their ability to borrow
5 or $40 from it Mt critical times, and dozens
" men have been started in business. peddling
md doing other things. on the small capital OBJ
aimed from It.
I'VE will 20 right on now" said President
'anielson to a Sun reporter. and do about
vice as much good work In 1896 and 1897 a.
We have done before. The people not Of our
were a little afraid to approach us at first.
tut they realize now that we are AS willing to
lelp them as TO help our own people. and We
oan ms much money to the Irish and Germans
IS we do to tho Jews OF the east side. We hopo
II reputable people who are ia need will come
. us. We will be only to glad too help them"