The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-27
USURY FROM ARMY OFFICERS.
MONEY LENDERS VINO FIND OP-
PORTUNITIES FOR LARGE PROFIT

rum ONAlAEo run i'AHuE EAOEAA
Capt. Lewis ByPOtheeated His Pay vOueh.
ere and, Owing TO Neglect, Is Now
Before . COuFt-Martial-FelIOw Of
neers say u Was Only "PhnlpDlnitis."
As an outcome Of his dealings with q
money lender who makes advances on
the salaries Of army officers, Capt. Edison
A. Lewis, Eighteenth Infantry il on trial
by oourt-martial before trial court Of the
Department Of the East. 1t is charged
that he destroyed or held In his possession
some pay vouchers which are the nghtful
property Of Louis SilveTman Of 40 Nassau
street
Silverman Il one OF several money
lenders who advance money on army
salaries at heavy rates Of interest.
He sends Giro las 10 army Officers
periodically, Abort q year ago Capt.
Lewis, who is married and has a family,
was ordered 10 the Philippines. Such an
order, involving as Il does moving a family
and a tropical OUTFIT Of clothes, Is always
embaTT assing TO any ofioer without private
means Capt Lewis had recourse 10
Silverman.
The money lender and the officer went
through the proceeding common in such
cases. Capt Lewis made over the vouchers
Of several months salary in advance 10
Snverman and received a certain cash price
for them. The difference between the faos
value Of the vouchers and the sum paid
over is said 10 have amounted to about
90 per cent. a year, and the total sum in
volved is about 500.
Before the vouchers fell due the War
Department issued an order changing the
form 10 be employed in signing over pay
vouchers. Silverman could not collect
until the vouchers were Reimbursed accord
ing to the new form.
He charges that he sent the vouchers TO
Capt. Lewis In the Philippines for proper
Endorsement and that the latter failed to
return them. He waited for time, and
finally complained TO the War Department.
An agent Of the PaymAster's Department
was sent to Texas, where Capt, Lewis was
stationed when be signed over his vouchers.
As a result Lewis was ordered hack from
the Philippines TO Fort Leavenworth to
await trial. A trial court under Col. Green
ough was convened here last Tuesday and
began taking, testimony. 1t will be re-
convened tomorrow
Capt. Lewis's defence Is that he was sick
from the time that he reached Manila until
he was ordered home and that there was
sickness and heavy expense in his family.
He simply neglected the matter he says.
"Phiippinitis, his brother officers call il the
indifference born Of the indolent tropics.
Army men say that this case Is only one
mild example Of a money lending system
which has caused all kinds Of trouble In
the past few years and which should be
stopped, they say, BY Department reElla-
tions. The War Department has already
taken one step In that direction. II has
forbidden the custom Of signing over salary
vouchers.
These men who lend money to Officers
have come to he fore since we began 10
send troops TO the Philippines said al
officer yesterday. Several suicides and
many designations and dismissals from tle
service can be traced to this cause.
"Suppose am ordered 10 the Philippines
Tomorrow. need money right away y
move my family and TO get an expensive
outfit OF tropical clothes. II I've beeo
living on my salary, it's odds son that !
haven't enough money. Usually a man q
500 from one, $50 from another, until h
has enough. Realizing the fix, officers are
very good TO one another in such cases.
Some men, though, dislike to ask such
favors, and 10 it happens that through
the highest motives they get tangled up
with money lenders.
This is the common proceeding In such
cases:
THE officer signs over his salary vouchers
for say. three months. The usurer charges
from TO o per cent a month-usually
per cent. II the three months salary
comes TO $500, say, the money lender give4
him t425 for the vouchers,
But II he Is a young officer and improvi
dent, he is probably in need Of money Of
the end OF the three months SO be writes
20 the money lender and asks II he cannot
draw down one months pay on those
vouchers. The money lender answers
that he may; in fact, he may collect fol
the full three months II he'll sign over
his vouchers for the next four months
when the four months are up. he signi
over for Ave, and 30 on until he has hil
salary pledged for six months ahead, mo-
a cent In his pockets and no way Of raising
more money. And there you are. Somei
times the end h quiet withdrawal from the 1
service. II has ended in suicide in certain
cases.
This happens most often to young and
foolish Leutenants. who haven't had
enough experience. But occasionally an
older man gets tangled up.
IF a civilian gets his Affairs twisted in
that way he can pay back the principal
and refuse to pay the interest, since II is
Illegal. At the worst, he runs only the risk
of having 20 hunt another job. But the
army code forces Officers 10 pay their debts
in full, no matter how foolishly they may
have acted in mourning them. This makes
army trade favorits with those who lend
on salaries. There lie no risk about it,