The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-04-08

cr 60 a piece OF brilliant satire. It makes
interesting reading.
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Money Sharks and Their Clients
The '.curbstone" bankers Of Richmond
have often been exploited through the
newspapers and otherwise. Most people
call them money sharks" Their bust.
ness is to lend small sums OF money 10
poor people upon slender security nu'
at exorbtant rates Of interest, IheE
evads the law against usiry by charging
NIL sorts OF fees for the examination OF
goods pledged to secure the loan, ana
for other alleged services rendered me
amount Of the fees is added 70 tne
amount of money loaned and the Dor
1rower pledges himself to pay 50 much q
month until the, debt IS !iqutdated' we
believe that there are also fines for fall
ure to meet regular payments, and SO
again the principal Of the debt Is an
creased. we have heard OF cases where
the borrower paid instalments IN excess
in the aggregate OF the original sum
borrowed, yet was more heavily In DEBT
than ever.
A few years ago we investigated the
subject as thoroughly as we could, ana
became interested in these unfortunate
debtors, who, according to report, were
frequently prosecuted by the money
sharks" We even went so far as 10
assume a sort OF guardianship over one
80 them A compromise was effected
between him ard his creditor. The money
was advanced to pay off the debt ana
the debtor was admonished that he might
reimburse the guardian upon his own
terms, without interest. we regret 10
any however, that from that time until
now We have had no further communicca-
ton with that distressed debtor.
| But one swallow does not mako sum
| rer. and, beirg interested In the whole
! tribe OF distressed debtors. We adver-
| Used that We would supply the services
! of a lawyer to any such debtor VINO
| found himself entangled In the COILS OF
money shark" But strangely enough,
| the lawyer whose services were thus OF
| fered free was not sbesieged. as might
have been expected, by an army or
| would-be litgants. Indeed. but very few
| called upon him. and within the past
twelve months his services have not
! been in demand at all from that class
| OF borrowers.
I From this experience NC reached the
| conclusion that the prosecuted class was
no, so large as had been represented TO
| us, and that some OF them at least were
| NOT as much dissatisfied with the bar
gains which they had made with the
| ..curbstore" bankers as We had under
| stood. 1t Is easy enough to drive the
| '.curbstone" bankers out of business. but
il so, their customers would find It Diff
ficult to borrow money at all. No repu-
table bank would think OF lending money
10 them in small amounts upon the
slender security which they are able to
offer. Still. something ought to be dore
for their protection. and the best plll
OF the subject that we have seen was
introduced some tine ago In tho South
Carolina Legislature. 1t contained the
following provision:
Section !. That it shall be unlawful for
the lender OF money or a mortgage or
bill. of sale of chnttels as security Tor
loan his agents, employees or any per-
sons in his behalf. wnerc the sum loahen
is under twenty-five dollars. 10 charss
the borrower with any sum or sums or
money for the drawing OF the mortgage,
s,lll of sale. or any papers connected with
said loar unless the said papers be Drawn
up and prepared by q duly licensed ana
pructicing attorney at law. magistrate OF
notary public not connected III business
with tho lender. which said officer So
drawing said papers shall receive the
whole amount so paid by the borrower
| for the services so rendered. and no part
! OF said fee shall bs given by the said
| attorney At law, magistrate, or notary
| pueiic, TO the lender, his agents. en-
! pioSes or any persons in his behalf,
Section ., That II shall he unlawful for
any lender his agents or employees or
any persou IN his behalf as set forth in
section hereof. to charge any sum OF
| su,ns for the examination OF amy property
proposed 10 be given as security for SAN
loan. or FOR any services Whatsoever rem
teged In the negotiating, making or Ell
fecttgs OF said loan. under whatsoevsl
| name The same may be denoulinaIed
Section 3 That IL shall DO unlawful 70
the lender o. money, as aforesaid, Ill
agents employees or ANY persian In h!
| behalf 10 nave inserted IN ms morisas
/ or bill OF sale as representing the indeps
e.s..eSs % The mortGasor or Nencnr. al
amount in excess of The aciua! amount 0
money received by the borrower,
section / All mortgages or biIls or sal
hereafter given as security Tor loans 4
or ON which charges have been made. o
which on It's face shall show an irdeas
tdness greater than the amount sesn2l
received by the Borrower. IN violation o
tine preceding sections, shall be- and ar
. | hereby, declared npll, void and OF
effect.
Whether or not the bsll passed we az
rot informed. It was rot The desis
II The maker OF this bill! 10 drive IN
..curfxstone" bankers out OF business, 10
shey have Sheir asses but TO proven
: tae.n from charging sxoEbitant ices.
. mis- he ,..s law In South Carolina.
might t.a we'll tor the authorities !.
Virginia TO watch out and see how