The Sunday globe., 1901-05-05
One Hundred and Twenty Per Cent
Interest Charged by Companies.
HOW THE LOANS ARE PLACED.
A Couple Of Interviews with Representatives Of
Different Branches Of the NefarouS Enter
prlSe,-Thelr Green Goods Circulars
and Deceptive Notes. Full
Expose, etc.


of doing business, and the interest
charged their clients, or rather victims
Nobody outside of Washington will be.
lleve that this city is honeycombed with
loan agencies which are permitted tC
charge one hundred and twenty per cent
per annum for loans of from ten up tc
five hundred dollars, yet su is the fact
and not only is this robbery condoned
but the ingenuity of the loan agencies
make it impossible for their victims tC
take advantage of the usorious interest
plea, and the law is successfully invoked
by the loan agents whenever default in
principal or interest occurs.
Specializing as to how the law of usori-
Gus interest could be evaded and the vic
tim compelled to legally pay one hundred
and twenty per cent. per annum to the
loan agencies, reporter of the Sunday
Globe visited the loan office of George d.
Horning, in the Central Building, Ninth
and Pennsylvania avenue. Ascending
to room ten, on the top floor, and ascer-
tanning from the colored elevator attend
ant that we were up against a Gentle,
and not Jew, as we enormously inferred,
Mr.. Horning, or his representative, sa-
luted us blandly from behind a wicket
dt ought to be spelled with I'D ~ win
dow in an elaborately polished semi.
circular counter, dividing the room in
two, the greater portion being on the IN
side next 10 the windows facing the
Avenue. Explaining our business, the
accommodating agent stood ready to loan
any sum from ten to five hundred dollars
on complying with the conditions"
"What are the conditions 20
" You will be required for a loan Of fifty
dollars to secure an indorser to this note
and pay ten per cent. a month interest
II your indorser is a single man, he won't
do. require two single men not en-
ployed in the government departments,
or one merchant or business man."
What interest do you charger"
Ten per cent. month. You will find
all the Information you want in these
blanks"
The clerk hand d the scribe the follow
ing blank note and a long laundry
looking slip, printed in rel ink governing
the qualifications of indorsers.
The note has a deceptive printed para
graph, thus:
"Value received, with interest at 10 per
cent per annum and an attorneys fee
of ten dollars i'm event payment of this
note shall not be made at maturity, and
suit shall be instituted thereon"
"Why, this note only calls for ten per
cent. per annum," innOcently observed
the scribe.
"Humphl we charge ten per cent.
month. The note is all right, and is our
stereotypod form OF contract-see
We didn't "see," but winking under
standingly we perused the laundry slip,
which read as follows;
Endorsed
Address .
Time of residence
Former address. ,....
Occupation ,...,.,
Employed by
How long '..........
salary per month....''..'.'.. ..,............
Are there any Judgments against you..'.'...,''
Are you the support of family y..................
Married or
Where employed .....
1t is expressly understood between said
George Il. Horning and myself that employ
him as my agent and broker 10 obtain said
loan for me, and promise TO pay him com
mission OF S.........."... of the amount thereof
for his services. am aware that the money
to be procured upon this application is not
the money Of said George d. Horning.
The commission" to Mr.. George d.
Horning is where the system is perfected
so that the law of usury is flanked and
surrounded successfully. Now, it would
be an injustice to this particular loan
agency to intimate that it is different or
any worse than the score or scores of like
establishments scattered throughout the
city and which are almost exclusively
patronized by clerks, departmental and
otherwise, with a sprinkling of poor peo-
pie like the widow referred to at the be-
ginning Of this article. Mr.. Horning
appears TO do a thriving business and to
be fairly prosperous on one hundred and
twenty per cent. per annum.
A different type of loan establishment,
conducted by the Potomac Guarantee
Loan Company, is located in suite74 At
lantic Building, on f street northwest.
This firm solicits business and i'm true
Louisiana Lottery style sends out fetch
ing" circulars to the impecuneous bor-
rover. Here is the latest gem of the
company to a confiding public, printed
i'm blue and red ink, with mandatory
footnote OF superlative importance:
WAsHINGroN, ID. O.
We respectfully call your attention to the
fact that we have n large sum of money on
hand which we wish to loan out in sums Of
$40 up 10 $500, on pianos, household goods, or
personal property Of any kind, the security to
remain in the undisturbed possession of the
borrower. We have taken the extreme liberty
Of copying your name from the city directory
need n little money, and in that case you
would know where you could get t on very
short notice. Our rates on this class Of loans
are the lowest in the city, and you can pay
back as your circumstances will permit. We
give you the privilege of making payments
every month on the amount borrowed, and
each payment so made reduces the interest
In proportion. We loan for the interest only,
and you need have no fear OF losing the
security. Should you take a loan for one year
and find later that you can pay II up sooner,
a an nnA Nfafa
Will only be charged for the actual time you
had the money The special advantages Of
borrowing money OF us are, that you can get
your money within afew hours from the time
you apply, and that you are dealing with a
responsible firm, that considers your welfare
as well as It's own II you should be tempo.
rary embarrassed, and sensitive about going
TO your friends, or letting them know you are
In need Of money, we shall be more than
pleased TO have you come TO us, as you belong
To the class OF people we especially desire to
serve, and we Will respect your confidence.
Our Offices have private interviewing rooms,
up on the fifth floor, away from the street,
and are so arranged that you can talk with us
conhdentially, and no one outside our offices
will know Of your visit or that you are bor-
rowing money. We also loan money on plain
note TO salaried employees without endorser
We would be very much pleased ifyou would
call on us II you wish any further Information.
II Will do no harm, and will enable you to
satisfy yourself as TO the truth OF these state
ments
Very truly yours,
POTOMAC GUARANTEE LOAN Co.
p. S.-Do not destroy this letter. 10 may be
ofservlce toyou some time IN the future Put
10 under lock and key,
Now, why this precious document
should be put under lock and key" is
a c0nundrum the unsophisticated Globe
reporter Is utterly unable TO solve. IL is
fairly composed andapparently an honest
proposition. Fearing however that, like
the green-goods circular" which i'm our
callow days caused u tears of anguish,
it might contain a hidden meaning, an
interview was sought with the Potomac
Guarantee and Loan Company, private
bankers, etc.
"Can / secure loan on a piano and
some household goods 20 yentured the