The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-15
ROBBERYWITH THE LAWS AID.
THE FAKE INSTALLMENT BCSI-
NESS on THE EAST SIDE.

Facts Learned In the University Settle
ments In,estigation-Cheap Jewelry
sold ct High Prices TO Poor People
Debtors Collected by Carloads
ut Midnight and Thrust Into Ludlow
street Jaii--Legal Processes Abused.
A receipt disappeared the other day from
rnder the nose of New York Judge. The
amount involved was small. but the impu-
dence Of the thing was big. and 1t looked as
n the dealer, who is known all over the East
Side as the father of the fake installment
business, had been pinched in his own trap.
The whsking out Of sight Of a document
which was likely to void his claim was
daring piece of legal procedure. but It was
quite in keeping with the history Of class
Of cases which gut the Second, Fourth and
Fifth district courts and often land the
defendants in Ludlow street jail.
The abuses which have cropped out in
connection with one phase Of the installment
plan business have aroused more then one
organization to activity against certain
Of the dealers. In the first half OF last year
a large part OF the time OF the Legal Aid
Society was taken up in handling cases OF
this sort. Early in the spring committee
appointed by the University Settlement.
and consisting OF Samuel Thorne, Jr.,
Henry W. Taft and w. Kirkpatrick Brice.
started 10 look into the matter, and Henry
r. Mussey was engaged to carry on an in
vestigaton which extended throughout the
summer.
Installment dealers. their customers, city
marshals, court officials, attorneys repre-
sentativee Of legal organizations and charity
workers were seen and Jail and court records
were overhauled. A report will be issued
shortly. and while individual cases have
been written up from time 10 time there is
q completeness to the report which shows
up the iniquity OF the whole business.
Bills are now pending in the Legislature.
introduced by Senator Elsberg and Assem-
blyman Agnew. which would do away with
the body execution and the order OF arrest
IN installment cases involving less than
500. These measures are in part the result
OF the investigation and aim to lop on the
worst features OF the present system.
Legitimate installment business in New
York dates back to 1907, but it was only
about seven years ago that the fake bust
meas is said to have been begun in Man.
haitian by the so-called prince of the fakirs.
who figured in the case referred to. Nearly
all the other dealers OF his class have been
his pupils at one time or another.
Correspondence reaching to a dozen
States and covering the principal cities
Of the country failed to disclose any parallel
TO the conditions existing in New York
during the past half dozen years In the
words Of the forthcoming report, Nowhere
elss. 70 far as can be learned, has there
been the systematic sale of worthless goods
at high prices, the systematic use Of legal
process as q means OF unbfu shing extor-
ton. the Systematic imprisonment for debt
and no debt. the systematic corruption
Of public officials and courts, that have
made the installment business a kissing
and q by-word all over the East Side OF
New York. The fake business In
economically. socially. legally and morally
vicious. II has no more claim than has
highway robbery to be considered legiti-
mate business"
The number Of fake dealers In compare
lively small. The worst OF them are not
more than a dozen in number. and there
are parhaps not more than fifty men in all
10 whom the name can be fairly applied.
Rut fake methods are employed by other
than fake dealers.
The fake business. properly speaking.
has for it's purpose the obtaining OF cash
payment on an instalment contract. Nine
tenths OF the cases OF unfarne-s have 10
% with Jewelry, The significance OF tins
~ In the fact that the purpose OF large
part OF all these sales In absolutely fraudu-
lent. and jewelry lends itself with especial
readiness to such business.
Almost all the jewelry handled. the report
says, Is eight and ten carats fine. though
II Is all marked II. contrary to the laws 81
New York. A watch movement costing
D'S and q case costing SIS sell for 80 or
S mig was sold on the instailment
pan Tor w. the investigator FOUND that It's
duplicate cost ~ cents
Ia several kinds OF )eweiry he failed To
hnd case IN which IN" agreed pr1os MAS
"" from three to hve times III" value 81
the sTticl.. Ths pedler n instructed 20
'" Nc hrsl payment as hish N lac can.
wv obliged To come down TO nothing he
70 get the business anyway -and hs does
sAes are made largely 20 ~on"n while
's" husbands are A' Sork' Tie agent