New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-29
THEIR MORTGAGES BOGUS.
USURIOUS MONEY-LENDERS THREATEN
ING 5000 PERSONS


ING 5000 PERSONS
THEY DECLARE THAT THEY WILL FORECLOsE.
ALTHOUGH THEY HAVE NO LEGAL AUTHOR
ITY TO DO so. AND ARE THEMSELVES
VIOLATING TIE LAw-INsTANcEs
OF PEOPLE WHOSE HOMES
HAVE BEEN INVADED.
Scores of usurous money LENDERS have Neer
making an attempt TO force 1000 persons in the
city to pay back sums lent at extortionatc
rates Of ntcrest .>under threats of forocosing
chattel mortgages which are in themselves
violations of the law. Notices have been sent
out daily b. these money-lenders informing
their patrons who are in arrears that instant
payment must be made the household prop
erty giver as security will be seized. These
threats have driven many almost to dcspera-
ton: often without employment. and. in many
cases. prevented by illness from meeting the
demands of the usurers. men and women are
harassed beyond endurance ard are resorting
TO every sacrifice TO keep thei' homes free from
invasion.
They are not aware Of the law recently en-
acted which grants them immunity from the
of the OGrady bill. passed by the State Lssis-
laturc last year. II chattel mortgage obtained
as security for a loan at usuriouF rate Is IL
legal and the thousands in New-York to-day
who are in hourly dread Of losing their all are
laboring under a misapprekensio". while the
men who are prosecuting them are deliberate
lawbreakcrs.
FORTY OUTLAWS
from twoscore Offices throughout the city
largely from downtown places. The commuhi-
cations are not couched In the diplomatic Ian
guage tha. might be expected from writer's
who knowingly violate the law In demanding
money illegally lent but are worded IN I'M
perative terms. conveying threats OF instant
foreclosure OF mortgages Il money be not for'h-
coming a. once.
The forty concerns engaged IN this eX'oruo"
ora all that remains Of the once considerable
number OF usurious money-lenders VINO hou'-
isbed IN the city prior to the passage OF the
O,Gradv bill With tie enactment OF this law
which was aimed directly at the Shylocks or New
York many OF them took warning and closed
their offices at once But there were those VINO
had from, 1CO TO 2O1 customers each on their DOORS
in arrears for sums varying from SO Il sloo' ana
these concerns continued business pressing '"e'
demands for payments ir defiance OF the law
THE Law QUOTED.
Tho s.atute was framed TO close every place of
tho kind at once II was made retroactive 10
cover usurieus loans negotiated before the enac'-
mont of the law SO that all the claims OF 'h'
rooney-len lers in question were declared hVaIi' d,
one sweep. The OGrad.' bill, which became iaN
on September !. 1895. is contained in Chap'er -
Of the Statutes Of NewYork. issued IN 1872 ana
states that person who. directly or lhurec'''
receives any interest. discount or cohsioeia'o"
upon the loan Of money goods or things IN ac'oi''
m ,,non the loan ure o. sale Of his personal creoll
in anywise, where there IS taken ior sucH ioa'
use or sale OF personal credit, security upon a'''
household furniture. sewing machines pat ".
silverware in actual use. tools OF implements -.
trade wearing apparel or 1ewery, or as se,u''s
for the loan use sale OF personal c'ru!t Do
aforesaid. makes a pret"nded pulcn g.. th,,
nropertv from any person. ana PeIi"lS -"
nledgcr TO retain the possession thereof elta,''
thau per cent pc annum, Is guilty OF II mi.dt-
laeanor Upon proofs OF such Ia t"e uS"' -
discharged and the security Is VOID
AN ABSOLUTE PROHIBITIoN
When this bombsh ii fell into the camp o.
Lsurv there was const. nation ana ruSi "
LAWYER, to find possible l,ophoe in the Law.
Legal counsel scanned the stattte from 'oP -
botton looked al +. from ali sides. and turned IL
or one Blu. IL stood every test an iavincioie par
aaains, all the devices Of usury. with that phrase
"irdirect,y receiving ,nteres.' baking ex'oiuon
=, e,e,v turr The usurers in general, wlth
wholesome respect for The majesty o; tiic ID"
promptly quit; the bclder and NOR reVhi.ss, -
~. number OF forty decided to take chaHce5
and continue with their signs hung OUT !" an an
the, pristine presumption III f&rk ROW ond ~
Broadway. FultOr-st fouiteeitn- e, r., " amd
throughout the uptown district on the East anu
West sides. -, ,,.. ool,oc,irg
They were not satisfied with simply coiecuns ,hts
such accounts as were OutstaHdihs' II 'S''au' ~
o,erlv defed the Law Dy transacune DuSA,S
- 'caTtamhor with as much freedom as be-
f,re extorting outrage )us rates o. ihte'eS' , i"
ueopl. the charges often amounting 70 d. No.. '""
As S35 for loan Of 81, ah' aNti"e'''s '. ",s
90, On s5n ali secured by chatte mor'eaH's
which are absolutely worthless IN the eyes o' '"'
law .,,,., ., o,.odo
,h nen,l code were uiili Led with III" same reck-
las disregard for the consequences lh,' u,,h
Of having borrower Irst maKc a p,, psruu" r"a
has. of O. lot having no value aiiu ulsioS.,S r ~
{, then to the agent for cOnsllerau"h' VIM
in reality constituted the Loaf was IeSoI.eu ~
as well many otheis ior udS So,bods iIlcral.
declared all such "indiree: method7 nicfa',
,d novy these money lenders are threa'enh
the thousands who have borrowed irom, sehid tno,,
with foreclosure OF mortgase' Oh "ou'''''
goods II payments be not mad"'
HOMES INVADED.
=, rrr,rer Of instances they have invaded
homes with peremptOry dehla'iuS 'o' "i''"
nayment under threat of puVln8 the iui '"'"'
under the Sherins hammer TO such e"'ie"'''
have they carried their eXtoruoh 'ha' "''
and women have seeched 'heih !" 'e'to' 80
,,i,,o little longer time in which TO make the
payments. ., ,,o,. I.
The principal occupation OF 'he io''' Nv"
., collection of all outstanding loans by ter
,,,., ~, uninformcd They have suddenly
,.ased open.ng new accounts. ana are nahihs ,i
NO lnan9 whatever A notice was received pY
nach from the Fidelity Loan Associalloi, os cso so
20 Naes1r-st.. a regularly Incorporated asSo-
fo If ,,nn Informing the forty OF the requirements
cia,'pa ' rar, Ipw which provides that persons