The times., 1898-08-09
UsURY Is CHARGED.
Members of the Fire Department
Victims of Unlawful Interest.


Members of the Fire Department
victims of UnfnySfuI Interest.
An official investigation conducted by
Commissioner Wight during five months
has disclosed a system of usury that has
long operated against the fire depart
ment.
The investigation has been carried on
in an transformations way. and until yes
terday few persons in official life knew
of it. The first inkling of an inquiry
came through the foremen of the engine
companies four or five weeks ago. Chief
Paris asked of the men what knowledge
they had of the workings of an alleged
10 per cent money-lending scheme.
Charges of serious nature had been
made in writing to the Commissioners,
stating that George D. Horning. a note
broker. was in the business of lending
money to about fifty members of the fire
department at various rates of interest
ranging from 10 per cent per month up
wards.
The letter was written in a very fine
hand by a person who signed the name
..John B. Long 1t called attention to
the conduct of George d. Horning. a
money lender. whom anyone might see
running from one engine house to another
on pay day" The letter writer said of
the alleged money lender: Finding that
fireman is in need of money the money
lender offers to let him have 1t for an
indefinite period at the rate OF ten per
cent per month. In nine cases out OF
| ten, after the borrower has had the
money three or four months. the lender
/ will come to him on pay day and say:
! You will have TO take up your note
in full now
If the victim is not prepared to dc
so the usurer will threaten to go to the
ctlief engineer about the matter The vic
! tim then agrees 10 pay twenty-five pei
| cent per month, instead of ten per cent
J for the Use of the money"
! The letter writer concludes as follows:
1.-The reason why ] tel you of this /:
1thait friend came TO me to ask the loar
Of $50 to take up his note He told ms
that after having paid over 5000 in an
terest he found IT impose ble 20 diminisf
the prlrisipal. There are probab fifty
men who are just as bad off as thi:
| ore"
The District Comm lsstoners took offic a
notice of Tsle cOrnnrunacat.cn and en- Apri
| II last, il was referred 10 Chief Paris. o
the fire de2ar-men., wi Il he fol ow ns
| endorsement:
THE accompanying letter is res 1ect
| fully submitted to tie sh ef engineer G
the fire departmerf with the reques.. tina
an investigation be made as 10 whe n
any OF the men ( ti the department. ar
! paving 10 per cert per rrr-lruth for borrow
a 50 .rt.spf t,,Ne n.
form them that such a rate Of interest
uTyiawifu and that II cannot be collected
They are under no o'yliga ions wh2te e
TO pay II and they are aritHcriz- d 70 de
cline to pay II. If they have already pad
as fDtereEt The amount OF her note
they need not pay anyth ing on the MT
itself as the law reeogniz 5 such pay
ment as the equivalent nf the none
borrowed"
The estisaten has d'sclosei the fac
that thiTtyfour men admit havirg n
deahnggs upon the 70 per c-nt basis. an
almost every one of thAse fi-eren men
toned the r1rne Of HornIrg as havin
been the man from whom Sh-y se-ri-e
their loans The rates Of interest charg
ed are said 10 have ranged all che wa
from 10 to 40 per cent per month.
IN two cases the firenen had 5eeu sue
before magistrate. and judgments wer
returned against them. The suit wa
brought in one case by Horning. and i
another by Catherine Banville. Tn on
Instance suit was brought by Marie
Horning. One of the fremen bOrrowe
$3.50 and paid s20.51 interest Judgmen
was returned against him for s24.75. /
another case s9S had been borrowed an
S19S had been paid in interest and judg
; nent was secured against the firema
for Sl05. These judgments were forward
ed by Davis e. Tucker. attorneys in tn
cases, TO the chief of the fire depart
ment, with the request that arrange
ments be made for their payment
Chief PARTS was desirous of having a
explanation from the men. One of ther
! answered In part as follows:
In reply to your letter stating tina
Davis & Tucker hold judgment agains
me in favor OF Marie j. Horning an
=. Catherine BanviEe have never had an
. dealings with either of them. The onl
one who is really connected in this ma
ter is George D. Horning. a money lend
er. from whom l borrowed sos in sma
amounts and have paid s19S in usuriou
interest, admitted by him before witness
es. If you so desire can render an item
lied account of this whole transaction a
soon as l get them from my attorney
| which will probably be in about two day
e I have paid George d. Horning man
more dollars than owed him
: In passing upon the matter Commission
y er Wight said:
From the evidence admitted in tn
T case 1T appears that these men have bee
a paying usurious interest. and that the
paid more than the amount borrowe'
They are, therefore, clearly exempt frol
further payment. and no further actio
yla
n | ing the bills submitted"