The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-12-22
LOAN BROKERS' LAW.
NEW ORDINANCE OF LABOR uN.
IONS PROVIDES HEAVY
PENALTY
New Legislation Intended to Prevent
Money Lenders from Realizing
More Than Eight Per Cent
on All Loans Made.

II is expected that the ordinance
committee of council will on Tuesday
night, December 26, present to couu.
cli some report on the ordinance gov
crning loan brokers which was recent
ly introduced by Councilman Joliat
on behalf of the Central Labor union.
The ordinance Is intended to re.
strict money lenders to the eight pei
cent allowed under tie state statutes
as interest on all loans made. 1t pro.
vides that all lenders must secure a
license from the mayor at cost of
$50 before they can do business in
Canton.
One section of the ordinance pro.
vides that the money lender must give
to each pledger, mortgagor or assign
or card containing the name of the
person making the loan, the name of
the pledger or mortgagor, together
with the articles pledged, the amount
of the loan, the rate of interest and
when the loan is due in full and wher
each installment is payable.
The ordinance further requires the
money lender to furnish a receipt for
each payment and to detail the ex
penses connected with the making of
the loan so it can be determined at
any time If excessive interest Is be
ing exacted of the loaner. Blank
contracts are also prohibited by the
ordinance which requires that all
spaces be filled in with ink either in
words or figures as required.
The ordinance further requires all
money lenders to file with the auditor
of the city before 10 O'Clock every
Tuesday moring record of each
and every loan made during the wee
Immediately preceding on blanks or
cards furnished by the auditor. This
must contain the name of the person
or corporation making the loan, the
name OF the pledger, mortgagor
or assignor, the amount loaned, the
rate of interest and when payable,
the amount of loan charges and ex
penscs. the date when the loan is
made and when payable in full.
The ordinance provides that these
records shall remain permanently In
charge of the city auditor and open to
inspection and examination at all rea-
sonable hours. In conclusion the Or
dinance reads:
When any person, or persons, eth.
er for themselves or as the officer or
employe of any person, firm or cor.
poration, violates any of the provi-
sions of this ordinance such person
shall, for the first offense, be fined IN
any sum not less than IS, nor more
than 5000, and the cost of prosecution,
or be imprisoned for a term not ex-
ceeding six months, or both within the
discretion of the court and for sec
ond offense in addition to the penal.
ties enumerated above, the license of
the person. firm or corporation so of.
Tending may be ordered revoked. and
upon the order of the court SO to
do it shall be the duty of the mayor
of the city of Canton to revoke said
license"
j. A. Robinson, who drew up the
ordinance for the Central Labor union,
says similar ordinance is in effect
in Toledo. He has written there to
learn the effect under It's enforce.
ment An ordinance covering the
same points will soon be introduced
in the council at Cleveland, he says.