The Western enterprise., 1900-01-27
PRACTICAL CHARITY.
PHILANTHROPlC MONEY LEND
ERS.
A Society In Baltimore Makes Chattel
Loans at Six Per Cent. to People That
Have Heretofore Paid Many Time
That Rate.

One Of the most practical charities is
the Chattel Loan Association of Balti-
more, which was organized a little
more than a year ago that the worthy
poor of that city when compelled to
borrow money might escape the pay
ment of usurious rates. Lawrence
Turnbull is the president aud w. N
Finley is the manager 1t is not a
charitable institution, but is conducted
upon purely business principles. 1t
does not loan money on sympathy or
sentiment, but in every case requires
good security and fOrecloses moTtgag ges
in case of default. The advantages Ii
offers over the regular money loaners
are the low rate of interest charged
and the application Of justice in the
settlement Of its accounts. Loans are
made on household furniture to worthy
persons in amounts ranging from $25
to $3.50 with interest at the rate of six
per cent. year, the principal to be
paid in weekly or monthly install
ments, and are renewed upon similar
terms if it is apparent that the borrow
er is unable to pay interest or principal
because of misfortunes for which he
N0ANAOl DN hCAN
When person desires a 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 pay the
expense of appraisement If the ap-
praiser 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 a mortgage upon the furni-
ture or other property is taken.
The association was organized by the
Rev. DIR. 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 extOrtionate 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 So
n month interest. After paying this in
tereSt for thirteen mOnths-a total Of
$39-the family was unable to pay Oh
the fourteenth month, whereupon its
furniture was seized and was about to
be sold at 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 wage-earners
Of Baltimore were in the habit of pay
ing all the way from ten to 1000 per
cent. for borrowed money, and that
five per cent. month was considered a
reasonable rate for sums of 500 and
over, and eight per cent. a month for
smaller amounts. 1t was discovered
also that 2,300 street-railway conduct
OrS in the city, who were required to
make security deposits of $50 each be-
fore they received their appointment,
were in the habit of borrowing their
money from loan brokers who charged
them at the rate of four per cent. per
month interest.
During the last year 5SS similar
loans were made, for total amount of
$4,000. The net loss was only $163 in
interest defaulted. Two mortgages
were foreclosed, in both instances be-
cause of attempted fraud on the part
of the borrowers. The applications re-
fused on account of Misrepresentation
to about $1,000. Loans were
made TO all kinds of peOple-dentists,
doctors, lawyers, teachers, ministers,
clerks, nurses, dressmakers, milliners,
butchers, bakers, policemen,
car drivers-but the most of the appli-
cants were mechanics, who were either
i'll or had illness or deaths in their fam
e
ment
In several cases loans were made to
people who needed a small amount of
capital to start in business, and it is
said that in every case both interest
and principal were promptly paid. 1t
was arranged to loan the street-car
$50 to make their deposits
with their employers at the rate of So,
or six per cent. a year, instead of the
twenty-fcur per cent. which they had
been paying.