The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-25
LOAN SHARKS FLOURISH ANEW
SOME "BUY SALARIES' AT a
RUTNOUS DISCOUNT.

Another IL q Banker" Out OF the state
With Agents Here and Works the
..substituted Lender" D0dge-Usury
Law OF This state Don't Bother
Them In the Present Amended Form.
That loan sharks are busy again In this
CITY is apparent from the advertising
columns OF some Of the Sunday news
papers. For a while after the conviction
Of Rothschild Of the Federal Bank and the
exposure Of the Globe Security Company
there was q lull In the business. Many OF
tho sharks moved their offices to Jersey
City and others did business under cover,
being especially careful not to lend money
on salaries to persons who they had any
reason to suspect would make trouble
But a tho memory Of Rothschilds swind-
ling operations faded in the public mind,
the sharks resumed their sharking and to-
day there are more OF them in business
hsro than ever before. IN one newspaper
last Sunday there appeared no less than
dfsssn Advertisements Offering to land
money on salaries on the most alluring
terms.
Inquiries among several Of these .loan'
agents yesterday established the fact that
few, II any Of them, have any fear Of being
prosecuted under the usury laws, which the
legislature has kindly amended for them
since Jerome began making trouble. They
all professed that they were doing legiti-
mate business. This is a sample OF the
way they loan money:
When the VICTIM generally q clerk on
small salary, enters the office q young
woman behind rallied desk questions him
as to his age, his employment, his liability
to sudden death, his associates and his
habits. Then he is ushered into the pres
ence OF the manager" who inquiries what
he wants.
A loan" says the victim.
You must have made a mistake re-
plies the manager blandly. "We make
no loans here. Sometimes, though, we
buy salaries. II you have one to cell
we will pay you cash for It, Not Its full
value Of course, but the discount Is small"
The victim then announces that he has
two weeks salary, face value $ss, to sell.
Well" says the shark, we will give
you $3.50 for IL. You can deliver the
salary in eight weekly installments OF A75.'
In this way the borrower pays so in
terest on $28. so for eight weeks. For the
loan of 500 about $25 is charged for two
months.
Another system is used by a shark who
poses as a private banker and whose
main place of business is out OF the State.
He has several branch offices in this city
all OF which are in charge Of young women,
and the game Ia carried on through the
mails The borrower first has to pay
fee OF 81, which, he il told, is the cost Of
making out an application; This apPlica-
In few days the borrower. receives a
check for the amount of the loan. with a
typewriter enclosure saying that il he
does not wish TO retain the check he may
send II back and the deal will be declared
Of. The following printed notice is also
enclosed:
All payments must be made at said ad.
dress on the date when notes are due, II
hands Of collection agency or attorney
for collection. and the maker will have to
pay protest and collection charges besides
the interest from maturity. Checks Of pri-
or orders sent by mail viii be sent at senders
due '"'"''' az ''''' WIG way 0e'''' "''e
If the borrower applied for loan OF $40,
the check he receives is for Sl6,25, he agree
stalments OF 81 each. Payments are made
to the young woman in charge Of the branch
office where the loan was negotiated, and
she gives the victim check to mail to
the banker" This check in reality is
merely her receipt for payment and is not
negotiable. II the borrower neglects to
mail the check on time or II any accident
occurs to delay its delivery, he receives
forthwith a notice from the private banker
which reads
note dated and payable aud signed by
yor, the payment thereof having been by
re demanded. ard having been noted by
N" this day for non payment. hereby notify
YOU that the holder looks to you for pay
Sent interest. cost and damages.
Done at the request Of the holder.
There is inserted the name Of the -pri-
vate banke err" and the document Is signed
by. woman in his employ and sworn TO
before notary public.
4. The charge for this protest" Is N.s7.
70 grace is allowed to the borrower, and
" he is tardy on all FIVE payments it will |
cost him 36S5 for protest fees, which, in |
Guiding 1915 interest. will make the cost |
OF loan Of Sl6.25 for Ave weeks SIC. 90, |
or at the rate OF Sll024 year.
the borrower doesn't come to time
With the payments Of interest and protest
lees he is harassed by mail and in person
nntil he gives up. IT, after an application
made. the private banker" concludes
ae won't make the loan. the applicant never
gets back his 81.