Omaha daily bee., 1899-12-17

the trusts and other public questions, while
here at home we have something OF vastly
loan agencies doing business here Two
1 of these have written the writer offering
| loans at reasonable rates" and upon being
asked for their terms refused to give the
information unless / would make a per-
sonal call at their Office. This have never
done.
of Villainy almost unprecedented. A member
! of the Typographical union temporarily
| embarrassed, called for loan of s35. He
was charged 81 for the contract, and after
an advance payment of $3.50 for the first
months interest, walked out of the loan
| office with $305O He paid the money back
in weekly installments of $780, and finally
| got receipt in full when he had paid $42,
| an investment for the shark representing
"a cents on the dollar.
| Some salaried men borrow as low as $40,
although the sharks prefer to loan a larger
amount. 1t costs SO to borrow $40 provided
| the debt is paid within three months. And
so on through, the story of usury runs,
! showing how enormous profit is made from
class lily able to pay the penalty, the
larger the principal the greater the inter-
est, of course.
Sharks Hound Their Victims.
In the event that the salaried borrower
loses his position and is therefore unable
to keep up his payments the money shark
makes life burden to him. He is threat
ened with all sorts of dire consequences, and
his every footstep is bounded. Or If he
does not lose his position and for any other
reason is unable to pay-perhaps sickness
and death in the family may intervene-he
is harassed by the shark until he makes
some arrangement to square the bill.
1t is q common thing for these "salaried
men to borrow from one shark to pay
another. Let us take up your loans at
other places and give you relief is
catchy advertisement that sometimes ap-
pears
Annoyed by one shark, the sensitive bor-
rover turns to another of the same ilk
for relief" and gets what appears to be
balm for his troubled mind and depleted
exchequer, but in his improvident pace he
doesn't stop to think that he is binding
upon himself an obligation for more inter-
est which will eventually become just such
a milestone about his neck as the one he
cast off by receiving the loan from shark
number two
The defensive theory set forth by the
men who make loans at such illegal rates
of interest is that the borrower enters
into the contract with his eyes wide opsn,
that he knows in the beginning how much
interest he has to pay, and that he ought to
be the judge as to whether the accommoda-
ton is worth to him the price asked,
A plan by which the borrower may pay
more interest than the amount OF the loan
is where the renewal system is permitted.
For example, a man borrows $40, for which
he agrees to pay 81 per month. He is
rather more improyident than the average
borrower and finds 1t inconvenent to meet
his payments. The shark knows he holds
a permanent position and allows him to let
the loan stand provided he keeps up the
interest. This he does and the debt con-
tinues for a year. He has then paid SO
annual interest for the use OF $40, and still
owes the principal. Such instances as the
one cited in the foregoing are rare, but
they have happened and are clearly within
the range of possibilities, provided the
shark has enough faith in the borrower to
grant him the privilege of renewal.
In this respect Omaha Is said to be no
worse than many other cities, and not SO
bad as some, As a rule. Omaha salared
people are inclined to be thrifty and are
so prosperous that they do not need to bor-
row, But the mproyident class is also
represented, and there is demand enough to
support nearly dozen OF these loan in
stitutlons.