Evening journal., 1905-12-12

NAuNlAnHtQ llnm EIIrl IdIN.l
bound agreement which he must sign
before a notary reilnqushine his right
20 his salary ia favor Of the loan COM
pany in case he defaults a payment
II ACKNOWLEDGES the receipt Of the pru-
cipal and interest ina fun. The promis-
sory note is made out for the fun
amount Of principal and interest and
no copy OF tho contract. note or agree
ment Is permitted to pass into possess
sion Of the borrower.
The loan is made on the understand
ing and It's stipulated in the bond that
il with interest must he paid. back in
monthly payments. No loan on salary
will be made unless the borrower has
been employed at least one year by
his present employer. No loan viii be
given If friends are given as references
No loan will be made ON salary already
loaned upon or upon furniture covered
by a fair amount OF loan.
Journal investigates.
A representative OF The Evening
journal accompanied by a representa-
tive from the Publishers Press visited
the loan Offices ia this city yesterday
and the following are some OF the rates
Of interest charged
At tho Wilmington Loan Company,
No. e25 Market street;
For the loan OF $1,000 for one year on
furniture the victim agrees to pay S665
per month for ~ months or $3.50 FOR
the loan of $1,000 for one year. That Is
S7.48 '1-3 interest on the loan Of Sale 2-S
a month, or S29.s0 interest on $50 FOR
5e.6 Per Cent. Interest.
one year. A rate OF 59.6 per cent per
year. in the meantime the loan COM
pany is protected by a chattel mortgage
on the furniture and judgment note
yvaiving all right OF exemption as pro-
vided BY the laws Of the State
For the loan of $50 for 3 months the
payments are SS05 per month, a total
Of &72.45. about S2.49 interest on s556
per month. about a per cent inteest
At the Peoples Trust Company ana
the Delaware Loan Company, Ford
Building. room sos a loan OF $500 on
salary would be required 10 be returned
an months in monthly payments Of
$500 per month, or at otal of $50 for
the loan Tor months. or a rate of "A
per cent for six months loan of S25.
This means that victim pays $i.Ss Ia
interest on SAIL 2-3 month or 81 in
terest on S25.
EUi a. iNHU OF go lot SIX UNnlNa on
furniture and household goods the pay
ments are S5.75 per month instead Of
$500.
The loan Of $50 on salary for 6 months
win be Sii.5O monthly payments for 6
months or S69o0 for the loan OF $50 for
6 months, rate OF sS per cent. per
month.
At the Delaware Loan Company Ss
Ford Building the rates were about the
same.
For household furniture loans Of $50
the borrower agrees to repay the loan In
monthly payments of SiLe5 each or
sa66 20 interest on sS3s i-S per month
rate Of % per cent per month
Loan One Sided.
10 Is 10 DE noted that IN none Of these
cases does the borrower have the use ct
The FUN sum charged upon for longer
than month. IL ne borrows SIS for sx
months ho must pay -nart OF ihe. s. back
at the ond Of each month along with the
interest on that parl-
This plan enables the loan company to
turn over us money each month aud adds
TO iis source OF revenue.
All Glasses Ttake Bait.
The journal representative aud his CONF
panion saw ill classos Of people ia these
places. Clerks bookktcpeis, people from
tho factories. street railway employees.
steam railway employees, even municipal
employees. An soiag TO these shylocSs TO
get loans on saiary or furniture to DO
their Christmas shopping.
The clerk n the office treats these ui.-
fortunaies who are getting into the ,oI.
OF the money sharks as though nc W i,
doing them "A great favor. and the victims
pocket the money With a sigh OF satisiac-
tion and gratitude TO the Official little
thinking that The loan will be j, constant
drain TO repay and mean sorrow ana wani
and misery long before il IS paid m ful
Sometimes the notes must be renewed
and in that case interest Is added and ths
former principal and interest becomes tn,
principal OF the new note with the result
that The burden Is compounded
Law Violated.
The many victims OF this system do mol
realize that there is "a modern porta b.
this State which they can cah 10 thei
aid to protect them asainst these Shy
locks.
Chapter %, Section T. of the Laws o
Delaware, sounds In no uncertain term
the doom OF these compdnics n saws.
The legal rate OF Interest Is s.x rc
cent per annup and " ANY person Shall
directly. or Indirectly take FOR the loan
or use Of money. more than six dollars a.
the loan. or use, Of one hundred dollars
ior one year, and in that proportions. d
shall forfeit ard pay. 20 ahy one Win
VIII sue for the same, q sum equal 10 IN
money lent-one-haif FOR the use OF th
person so suing. and the other half 10
the use Of tho state
Section g. chapter 49, Laws Of Delawar,
provides: If any person OF persons, nrn
company or corporation having take
out a certificate OF registration as afor,
said. shall exact, require or demand froi
any person or persons interest upon sun
OF 800 or under In excess Of the legal rat
OF interest as now provided by law
this State together with an additional sun
at the rate OF FIVE pcrcentum on n
amount Of loan per annum as herein an
before provided. whether additional su
be in the form Of interest Tor servici
rendered or expenses incurred shall
guilty Of a misdemeanor. aud on convt
tion thereof. shall be fined a sum not Del
than twenty nor more than one hundr,
dollars for each onense. or imrrisonmo
for a Term moi exceeding one month
both IN the discretion Of the court