The San Francisco call., 1897-03-24
'|NDORSEO BY
MAYOR PHELAN
He Favors the Pending
Municipal Pawn
shop" Bill.
Says 1t Would Be Great Boon
to the Poor of San Fran.
cisco.
Comments on the Outrageous Interest
Now Charged by Many Local
Pawnbrokers.

Mayor Phelan yesterday signed and
transmitted to Governor Budd an indorse-
ment OF the municipal pawnshop bill"
The bill contempla,es the establishing
of collateral loan bank at which the
INDECENT may obtain advances on prop
erty OF all kinds at a reasonable rate OF
interest The bill provides that the in
stitution must be incorporated with a
capital stock of not less than $l00, 900. and
in sections and says:
Every CORPORATION applying for license
under this act shall al the time of making the
application Fl e with the secretary of the Board
OF Bank Commissioners bond to the people
of the state. executed by the corporation ap-
plying for the license. with good and sufficient
sureties to be approved by said Comm sslon-
ers, in the penal sum of $4,000, conditioned
for the faithful performance OF the duties and
licensed and for a faithful compliance with
the provisions of this act Said bond shall be
renewed and relied annually, in January OF
each year, or the corporation shall within
thirty days thereafter cease doing business
and proceed to close up its affairs.
Such corporations, when they have dispos-
able funds, shall loan on oil goods and chat
within its rules and regulations, in the order
in which they are offered, with this excep-
tion. that they may always discriminate IN
favor of small loans to the INDECENT
Section 6. relating to interest, reads:
Such corpor ations shall in no case charge
interest at rate exceeding per cent per
month; provided, however, that all loans
shall be subject to one months interest and
no loan shall be settled at a less charge than
15 cents.
The sale of pledged property is provided
for as follows:
Property pledged to such corporations must
be held six months after the last date fixed by
contract for redemption, aud all sales shall be
at public auction; and notice of such sale
shall be published at least five days previous
county, or city and county, in which any
such corporation is located. If upon the
sale OF any such property at public auction
there De any surplus h ieit, after paying
thereon, and 5 per cent on the amount of the
loan for expenses OF sale, the same shall be
paid over 10 the party who would be entitled
to redeem the pledge in case no such sale had
taken place. In case savings bank deposit
book pledged to any such corporation shall
hot be redeemed as above, it sh all not sell the
same at public auction, but ii may convert the
same, or so much thereof as may be necessary
TO pay the debt, In such manner and at such
time as in the Judgment OF the directors of
such corporation will best serve the interests
of all parties holding the [balancel tor the
owner.
The institution is placed under the con.
troll of the Bank Com missioners.'
II am in favor of this bill because of the
shameful manner in which many pawn
brokers plunder their customers," said
Mayor Phelan yesterday. They charge
10 or 90 per cent interest, and the poor
person who must borrow is compelled to
pay. OF late the pawnbrokers buy the
goods offered and execute an agreement to
sell back the same at an immense ad-
vance.
Such institutions as are contemplated
by this bill have succeeded to s marked
degree in Europe and the Eastern States,
and have been great boon to the poor.
There is little or no chance of their being
robbed, and at the same time it will be
profitable to those who start it,