North Park union., 1900-02-02

One of the most practical charities Is
the Chattel Loan Association of Balti-
more, which was organized little
more than year ago that the worthy
poor of that city when compelled u
borrow money might escape the pay
ment of uSurious rates. Lawrence
Turnbull is the president and w. y.
Finley is the manager. 1t is not Il
charitable institution, but is conducted
upon purely business principles. II
does not loan money on sympathy or
sentiment, but In every case requires
good security and forecloses mortgages
ia case of default. The advantages il
offers over the regular money loaners
are the low rate of interest charged
and the application of justice in ihe
settlement of its accounts. Loans are
made on household furniture TO worthy
persons in amounts ranging from So
to $3.50, with interest at the rate of six
per cent. a year, the principal to b.
paid in weekly or monthly install
ments, and are renewed upon similar
terms II 1t is apparent that the borrow
er is unable to pay interest or principal
because Of misfortunes for which he
cannot be held responsible.
When Il person desires II loan he must
make application in writing to the
company and state what security he is
able to give. This application must be
accompanied by fee of 81 to pny the
expense of appraisement. If the ap-
prniser reports that the applicant is of
good character and industrious habits
and that the property Is worth three
times the amount asked for. the loan is
made and mortgage upon the furni-
ture or other property Is taken.
The association was organized by the
Rev. DR.. Babcock of the Brown Me
mortal church. President Gilman of
John Hopkins University and other
men of practical benevolence in Balti-
more. whose sympathy was stirred by
reports brought them by mission work
ers concerning the cxtortionate rates
paid to money lenders by the poor
They discovered one family, which, be-
ing out of employment. was compelled
to borrow $50 TO pay the expenses of a
funeral. The broker charged them a
fee of So for making the loan and S3
Il month interest. After paying this in
terest for thirteen months-a total Of
S:D-the family was unable to pay on
the fourteenth month"; whereupon its
furniture was seized and was about to
be sold mt auction for the benefit of the
ShylOck, when the mission worker in
terfered and threatened to bring the
case before the grand jury. A general
inquiry followed which disclosed that
the mechanics and other wageearners
of Baltimore We're in the habit of pay
ing all the way from ten to 1000 per
cent. for borrowed money. and that
five per cent Il month was considered n
reasonable rate for sums OF 500 and
over. and eight per GENT. Il month for
smaller amounts. 1t was discovered
tI,,.f net
ors in the city, who were required to
make security deposits of $50 each be
fore they received their appointment.
We're in the habit of borrowing their
money from loan brokers who charged
them Mt the rate of four per cent. per
month interest.
During the last year 5SS similar
loans Were made. for a total amount of
$4,000. The net loss was only S163 in
interest defnulted. Two mortgages
We're foreclosed. in both instances be-
cause OF attempted fraud on the pnrt
of the borrowers. The applications re-
fused on account of misrepresentation
amounted 10 about 5000. Loans Were
made to all kinds of people-dentists.
doctors, lawyers. teachers, ministers,
clerks. nurses. dressmakers. milliners,
hucksters. butchers, bakers. policemen.
ear drivers-but the most of the appli-
cants We're mechanics. who We're either
i'll or hnd illness or deaths in their fam
lilies, or We're thrown out of employ
mcnt.
In several cases loans were made TO
people who needed Il small amount of
capital to start in business. and 1t is
said that In every case both interest
and principal We're promptly paid. 1t
was arranged TO loan the street-car
conductors $50 10 make their deposits
with their employers ut the rate OF So.
or six per cent. IL year. instead OF the
twenty-four per cent. which they had
been paying.