The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1907-08-08


financial flytraps, and many salar.
led people in other lines are in.
volved in their meshes. The loan
shark comes to case of financial
cramp as a friend and reliable re.
course for aid. After he signs over
his salary on an exhorbitant inter.
est rate for small loan and has
his nose to the grindstone for
awhile the victim learns the diff
ference. The loan shark resorts
to usury, plain and simple, but
does 1t so smoothly that he or she
as the case may be, escapes prose
cution.
That a usurious rate of interest
is being charged city employees, sal
aried people and married women by
local loan brokers was admitted
this morning In letter received by
Comptroller Robert Farley from
the City Loan Co., room % Elk
change Bank building.
The letter resulted from investi
cation of the case Of George Link
city inspector, against whom sal
airy assignment was turned in by
the Crescent Loan Co., now console
dated with the City Loan Co.
The letter stated that hereafter
only legal" rate of interest would
be charged Link. This Of itself
was admission of guilt. 1t also lets
off other city employees from paying
large interest on money loaned
them, as well as other salaried peo
pie, and many married women
Concluding, the letter says that
from now on Link will be held only
upon personal honor" to pay the
usurOus interest.
Link was charged interest at the
rate of 10 per cent month on a
loan of $45. He borrowed this
money Jan. %, 1906. Soon after
assigning his salary to the loan
sharks he had sickness in his fam
lily and was unable to meet the
monthly payments, which amount
ed to $10.65. He borrowed the
money for only 6 months, but was
unable to pay. After missing some
payments, he was told he could not
be forced to pay other than lega
rate of interest, per cent year
and refused further payment.
Threatened with exposure to his
employer, he made a payment, but
couldn't keep up and the other day
his salary assignment was turned
In to the comptroller.
rhf~ rng,.IfnA In he ia
of the bunco loan game worked
through coercion. The victim sub
mits under threat of exposure tt
his employer. Link has beaten tn,
sharks" finally, and nothing fur
Their will come Of it. Yesterday hi
settled for $40, balance of his loan
When he first borrowed the money
he signed a note for $74.16, beint
10 per cent a month on his loan Of
$45 and per cent on the note
This note stated that he was t
pay in monthly instruments o
$10.65 until the amount of the note
was fully paid up.
A blank space for attorneys ex
penses was left open, which coult
be filled in for any amount the
debtor is gullible enough to pay.
The usual procedure in negotiat
ing l of these loans Is as follows
The applicant states the amount
tells where employed. and in turf
is told the amount Of brokerage
he must pay. This brokerage
is nothing more nor less thar
monthly interest. 1t amounts tc
10 or Is per cent. 1t is computed
and added to the amount Of his
loan and a note is signed for the
total On this total the legal
rate Of interest, per cent. is
charged. thus grating the applicant
out of double interest-the interes,
on his loan and the interest on the
brokerage" The next step is the
telephone. SHARK" calls up the
place of employment given by the
applicant.
AS soon as the applicant has lief
the Office, and before he gets the
money, detective, called IRE
porter" by the sharks, usually {
woman. visits the place of EN-
ployment and ascertains the value
of the employees note. character
and the chances of his paying with
in the time tipulated. If all is salts
factory. when the victim calls
again he signs the note and salary
assignment and gets the money.
Sometimes the applicant has only
been working extra and leaves
town. In such cases, the sharks
who are banded together like 8
credit association, communicate
with the others and describe Their
risk" SO that IL 'it" shows up in
some other town the note may be
negotiated.
Miss Powers, an elderly lady in
charge of the City Loan Co., was
confronted with these facts by a
representative of The Press this
morning and admitted their truth.
She admitted she charges 10 per
cent per month brokerage
Isn't brokerage interest" she
was asked.
Yes" it Is interest" she replied
but loan agencies cali 1t broker.
age"
is 10 per cent month the rate
charged by all loan agencies ?"
No. some of them charge as
high as Is per cent. ! want to say