The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-03-22
The King of Usurers.

| Their fame extended far beyond the Dor
/ ders of the British empire, since not
alone foreign noblemen but even CONT
mental crowned heads and Princes Of the
blood were accustomed 10 invoke their
| services, which were in every sense OF
| the word interested, writes an ex-attache
! in the Chicago Tribune.
| Whereas. Saw Lewis has devoted him
self more particularly to the members or
! the English and foreign aristocracy. and
| is so suave and courtly in his dealing as
| to give color to the story that ne IS
| financially backed by two members or the
nobility, Isaac Gordon founr his victims
more among the upper and lower middle
| classes, not alone in London but also IN
the provinces. He had branch offices
under different names at Liverpool, Man
chester and all the big towns and cit
les of the United Kingdom. he was much
less agreeable in his dealings than sam
Lewis, was brutal and brusque, both in
his speech and manner, and made use OF
terrorism where Sam Lewis employed po-
lite persuasion.
The extent of Isaac Gordon's business
and the colossal character of the inter
est which he charged. was never realized
by the English public until he appeared
before the Parliamentary Committee on
Money Lending in the summer of 1897.
The committee had been constituted at
the suggestion of the Lord Chief JUS
tice of the realm and of other eminent
Judges, with Wed of devising some
means, additional to the existing laws
against usury, to prevent money lenders
from exacting an excessive degree OF
interest.
Isaac Gordon, who was Manufactured,
keen-eyed Hebrew, with a short cropped
black beard and an unlimited amount Of
assurance, declined utterly to permit him
self to be in any way intimidated by the
committee. the members of which he
treated in the most matter of fact and
independent manner. He, however, read
lily answered all their questions, admitted
that he had money lending establish
ments all over the United Kingdom, I'M
der different aliases, and that they ali
worked into one another's hands. He not
merely confessed, but even volunteered
the statement. that he was IN the habit
of charging as much as 5000 per cent for
money.
81 do not lend money" said he. 81
sell money" and he added that if any
legislation was enacted to prevent him
from exacting this extraordinary rate OF
interest, or any other rate that he saw
fit to charge, he would retire from bus
mess"
He put this to the august members Of
the Parliamentary committee In the
shape of threat, just as if the world OF
commerce would be unable to survive
the loss inflicted upon it by his going
out of business, and so dumfounded were
the committeeman by his phenomenal
cheek In making this statement that he
possibly interpreted their looks Of start
led dismay as a fear he might carry his
menac into effect.
Some of the arguments that he put for
ward in defense of his extravagant rates
of interest were logical. "A man." said
he to the committee, may sell hundred
pound bank note just as well as a Maza
rine Bible, or q. picture of Greuze. People
would ridicule the idea of there being any
legal limitation of the price for the Bible
or for the painting. Why, then, should
there be a legal restriction as regards
the price at which the bank note is sold%"
And a little later he inquired: How Is
trade to be carried on If the market is
not open, and why should a dealer be de-
prived Of the advantage which he gained
from his customers eagerness to buy?"
Finally Gordon pointed out that the
risks of his trade were colossal, that the
rate of interest was made proportionate
to the extent of the risks entaied and
that when man was in such extremf-
ties as to be willing to pay 5000 per cent
for loan the chances were 70 per cent
against the usurer ever seeing his money
again.
SO ingenious and convincing were his
arguments, and so great was the impress
sion which they made on the minds of
the hard-headed men of business COM
posing the Parliamentary committee, that
in spite of the profound antipthy excited
by his calling they reported in favor Of
his contention that the law had no right
% Igy9otk fla rot ~ infn nd
it was in no way more criminal for
usurer to lend money at hundreds and
even thousands per cent than for under
writer's to insure an overdue vessel for
and even 100 per cent. The committee
agreed to the plea put forward by Cor
don that in the one case, as in the other
the excessive rate of interest was due
to the risky character of the security.
There was one point, however, inwhich
the committee took exception to Gordon,
and that was his trading under a vari-
ETY. of different aliases, and they recon-
mended that every money lender should
take out a government license in his true
name, IN the same way as a pawnbro-
ker-a recommendation which Parliament
has not acted upon, since it holds tht
by licensing Insurers it would be giving
not merely legal sanction but even ap-
prevail to usury.
The object Of the Parliamentary com
mittee in this connection was to put q
stop to one of the most profitable re-
sources of Gordon's immense business.
When he had a victim in his tolls and
the term for which the loan had been
made had expired he would put on the
screw hard in order TO force his debtor
TO pay both principal and interest in full.
He would absolutely decline TO listen TO
any proposals for a renewal or prolOnga-
ton Of the loan, but would cause It to
be indirectly suggested 10 the victim that
the latter might possibly be able 70
obtain from some provincial money len
der at Brighton. Manchester, Leeds, or
elsewhere the funds needed 10 pay on
Gordon. and thus evade the threatened
legal proceedings.
As a general rule the victim would nib
bic at the bait. would obtain a larger loan
at a still higher rate OF interest from
the provincial money lender. and would
then use the funds 70 settle with Gordon
in happy ignorance Of the fact that the
Isaac Samuel OF York or the Mr.. Yer
burgh Of Leeds were one and the same
person-the ingenious Isaac Gordon OF
London.
In this way q small loan OF 500 or
50 within the space Of two CT three years
was IndE1lHel INTO iLt-St c@i-eas o. a9sf-
Iutely colossal proportions. the original
amount Of money invested and risked b.
Isaac Gordon having been ridiculously
small in comparison
Isaac Gordon showed no more conf
FUNCTION about revealing this particular
phase OF his business than IN confeszsng
that he was IN the habit Of charging %
Per cent for money loaned which he con-
sidered. under the circumstances. 10 be
a fair rate OF interest And i * an ex-
traordinsry fact that in spite C the pub
lefty given 20 the proceedings Of t5e
committee and to TIE statements OF Cor