Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-11-29
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! HOW FRANKLIN MACKAY MADE 100000
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To start life on borrowed money TO
pile over t2,0OO,oOO and have a regular
permanent income OF $4,000; to have
one or more branch Offices In every city
of the United states and yet practical
~ unknown in all Of them except IN
Minneapolis is the rather unusual
chain OF facts surrounding the career OF
Franklyn Mackay
In the past 30 years Mackay has built
up an immense fortune and business by
conducting series Of loan offices all
over the country. He started first on a
small scale In Minneapolis and found
the business so profitable that he ex-
tended his operations, until now, I'M
der one name or another, he has
u branch Office in nearly every city OF
Importance in the United States, says
the st. Paul Globe. He Is what Is COM
monty called a ten per-center,' and
his business has frequently been inter-
ruptcd BY state legislation against US
ury.
lMackay prefers TO live In England
where society confounds him with the
California family. Franklyn Mackey
always travels with his trunks marked
simply rMackay," and II is generally
believed over there that he Is a rich
railroad manipulation living in retire.
ment. He has q magnificent house on
Carleton House terrace, London,
shooting box IN Scotland, and a fine
country house al Harrington.
Once a year he comes to America
to look over his Minneapolis real es-
tate holdings and see his lawyers, and
consult with his chief OF stan. j. ii.
Hurlburt.
There are 60 Of the loan offices scat
tered over the United States. and Mao
kay has perfected system OF control
which is as finely organized as the
United States government system OF
national bank inspection. Mackay Is
not q pawnbroker. lis Is a temper
center. He lends money on goods and
chattels, taking III return u chattel
mortgage. lie does not hang out the
sign OF the three balls and lend money
On old gold, silver, watches, cameras,
boots and shoes, There Is not enough
profit In that. But will lend you
$50 on a plano, parlor furniture. a IL
brary, rugs, household goods OF any de-
scEiption, Office furniture, or in fact
anything OF value short Of jewelry. He
charges ~ per cent a month for the use
OF his money.
MACKAY A LITTLE OVER FIFTY.
Frankiyn Mackay Is now a triile over
30 years old; rather brusque In man
pers, rather large and heavy, slightly
ttnssd with gray. 1t Is related OF him
bore In Minneapolis that Mackay has
tined every form of gambling without
Success. He has played roulette. faro
and poker, and has always lost. Heshas
Eainbled In real estate and lost. The
only way In which he ever made a dol
lar was through his loan Offices. And
yet he had TO borrow money before he
made his first venture as q lender at
~ per cent.
Mackay comes from little town In
southern Minnesota named Mankato.
His father was employed In bank
there, while young Mackay worked on
farm. 30 years ago.
neighboring farmer wanted to bor-
row $500 and went to Mackay's faith
er. His farm was already mortgaged
and Mackay's father refused to lend
4. him the money The farmer met young
Mackay on the roadside and bitterly
bewailed his ill-luck.
See here" said Mackay, you have
lot OF farming implements and a
couple OF horses. You make me out q
chattel mortgage and pay me my price
and win let you have the money"
The farmer consented. Mackay went
to his father and borrowed 5000 This
he turned over to the farmer, who
agreed 10 pay him $40 a month interest
only per cent, but that was before
Mackay realized how easy 1t was to
earn money in this way. The farmer
delighted, went around telling everyone
what tine fellow young Mackay was.
In a short time other neighbors came TO
nm TO borrow money, and young Mac
kay soon found himself In receipt of an
ample income without working. The
funniest part Of It all Is that the entire
community commenced TO talk about
what fine fellow he was. The farm
ers who borrowed money at s per cent
u month found that they could easily
AFFORD TO pay the Interest. but they lost
sight OF the fact that the principal was
stu being carried against them.
FoRECLoSED HIS MORTGAGE.
Mackay soon found himself In DOS.
sefsion or quite a sum, and then he
ioreclosed most Of his chattel mort
Hages This lost him his popularity. so
no went 60 Minneapolis with about
Se,voV and opened loan office there.
IL was really nothing less than pawn
nhep, but as he would lend money on
anything from rag carpet TO a baby
cer1age. he soon built up a trade. His
late now was 10 per cent The only
thlng Mackay would not lend money on
was horses. He had lent money on
some OF the horses OF his friends down
near Mankato and when he announced
MS Intention of foreclosng, his friends
doctored the horses ill-treated and III
led them, so that on a forced sale they
brought almost nothing and the origin
al owners We're able 10 buy them back
Ter less than the amount OF the loan,
To this day Mackay VIII never lend a
dollar on horse.
During the next 10 years, Mackay
plugged away piling up money each
year. Then he conceived the idea of
establishing branch offices an over the
country. He had already opened an
Office In Chicago. under the name OF the
Illinois Loan association, and after a
couple OF years had invested about
N5,oOO in small loans. most Of them
less than SlOO But Try as he would. ne
could not force any more money upon
tie public IT was a waste Of money
for him to keep his cash idle. and he
wanted TO put out every dollar he had
al 10 per cent month, instead Of lei
ting II remain In banks at per cent
year. But he found that he simply
could not force the Chicago public TO
come and borrow and more money.
Then Mackay had an inspiration. lie
went three blocks below his Chicago
oi'ice and opened another loan Office.
calling II the Chicago Loan company.
Within a month he had loaned $4,000
from this rival Office and most of IL
went TO the very people with whom he
vas already doing business at his
other Office.
MAKES A DISCOVERY.
This showed me" said Mackay
afterwards. shat most people who bor-
Tow money viii go just so far with one
firm, and no farther. for fear Of getting
too deeply into debt. But they win
borrow about the same amount from a
rival firm. and take chances that the
rival firm viii not press them too hard