, 1900-01-25
PRACTICAL CHARITY.
.yHILANTHRoPiC MONEY LEND.
ERS.
A Society In Baltimore Makes Chattei
Loans at Six Per Cent, to People That
Have Heretofore Paid Many Times
That Rate.

one of the most practical charities is
The Chattel Loan Association of Balti-
more. which was organized n little
more than a year ago that the worthy
Door of that. city when compelled 10
borrow money might escape the pay
ment of usurious rates. Lawrence
Tnrnbull is the president and w. y.
Finley is the manager. Ii is not Il
charitable institution, but is conducted
upon purely business principles. II
does not loan money on sympathy or
sentiment, hut in every ease requires
good security and forecloses mortgages
in case of default. The advantages It
offers Ove 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 i'll ranging from SO
to $3.50. with interest at the ate of six
per cent. a year., the principal to be
paid in weekly or monthly install
mcnts and are renewed upon similar
terms if it is apparent hat the borrow
or is unable to pay interest or principal
because of misfortunes for which he
annOt be held responsible.
When a person desires IA loan he must
make application in writing to the
company hlih ihlt ma security ne Is
able TO give. This application must be
accompanied by n fee of 81 to pay the
expense of appraisement. If the APP
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 n mortgage upon the furni-
iure 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 h extOrtionate rates
paid to money lenders by the poor.
They discovered II family, which, be
ing out of employment, was compelled
TO borrow $50 to pay the expenses of n
funeral. The broker charged them a
fee of 81 for making the loan INT So
n month interest. After paying this in
terest for thirteen months-a total of
S39-the family was unable to pay on
the fourteenth month, ~whereupon its
furniture was seized and was about to
he sold at auction for the benefit of the
Shylock, when the mission worker in
terfered n 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. a non was considered a
reasonable rate for sums OF 500 and
I'VE and eight per cent. a month for
smaller amounts. 1t was discovered
also thai 2.3OO street-railway conduct
ora I'm tho ,ifr "hn rnrA rnnIttrlH 70
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 JSS similar
loans We're made. for a total mount of
$4,000. The net loss was only S163 in
interest defaulted. Two mortgages
Were foreclosed. in both instances be
of attempted fraud on the part
of the borrowers. The applications re-
fused on accoun of Misrepresentation
amounted to about 5000. Loans were
made TO all kinds of people-dentists,
doctors. lawyers. teachers, ministers,
clerks. nurses, d~ressmakerS, millinerS,
hucksterS. butchers, bakers. policemen,
car drivers-but the most of the appli-
cants We're mechanics, who We're either
ill or had illness or deaths in their fam
lilies. or We're thrown out Of employ
ment.
In several cases loans We're made to
people who needed a 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 to max their deposits
with their employers at the rate of So.
or six per cent. a year, instead of the
tw~enty-four per cent. which they had
been paying.