The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1907-05-09
LOAN COMPANIES
BOTHERING CITY
License Ordinance Does Not
Cover THOR Case
When IL Was Raised They Changed
Method of Doing Business and
Went Ahead. -,
NO SOLUTION TO SITUATION

City Treasurer Dorian, City Solic-
itor James Campbell, Jr., and LIZ
cense Inspector George Lehnhard
are triumvirate of city officials Wit
ally interested in the single evasion
of the license ordinance that is test
ing their ingenuity to overcome.
Treasurer Dorian is interested be-
cause the evasion affects the city
purse; City Solicitor Campbell is in
terested because the evasion presents
a shrewd legal problem. and Inspec-
tor Hehnhard is interested because
he has done his duty in collecting the
license with the single exception.
The cause of all this worry is the
failure of the loan companies in the
city to pay the license.
Along with the high license pro-
vided for bucket shops, the license
committee in drawing up the new or
dinance last year, placed license of
$500 against loan companies. This
just doubled the former license and
the loan companies promptly baked.
Their attitude now is something like
"if you don't like it you can lump
It," They said they wouldn't pay
1t and they haven't. There are some
five of these loan companies in the
city and they are fourishing. The
general council thought loan compan
les were in the class with bucket
shops and the license was made so
high for the purpose of discriminating
rather than for revenue.
The inability of the city to collect
the license resides in the ability OF
the loan companies to re-arrange
their business so that the ordinance
could not cover their cases.
which seems exhaustless. The
Ordinance says that compan-
les, persons or corporations
doing money lending business on
chattels, shall pay license of $500.
This covered the case at the time
the ordinance was passed. but the
loan companies have found way to
evade the provision. They simply
do not lend money on security at all.
The principle of the loan companies
is the same though the form Is
slightly different among them
How can they afford to lend money
without security? A reporter for The
Sun talking with three of the man
ayers of loan companies and found
them readily discussing their posi-
ton
1--WE lose money occasionally"
said one manager, "but we know
nearly everybody in the city who bor-
rows money and we know how far to
trust them. Most of our loans are
small and II is true that we get
large per cent interest, but where
else could they get the accommoda-
ton which we give them? The banks
won't lend money in those amounts.
Our patrons need the money and the
loan companies are the natural re-
lsult. We are willing to pay rea-
sonable license.
eve have our loans arranged so
that neither the borrowers could
fail to fulfil their contract. nor the
city legal department interfere. Au-
thorities have prosecuted loan COM
panies in other cities but they still
do business and we will be doing
business here in spite of the high
license Then the state comes along
and asks a license. We paid both
as long as they were reasonable, but
not now"
Meanwhile the city is losing a
possible $4,000 from the five compan
les under the ordinance. and the le-
gal department does not think that
the companies can be reached as the
Ordinance now reads. And the lack
of stability of form of the companies
would make It difficult to frame an
ordinance that would cover them.
Inspector Lehnhard is philosophical:
Treasurer Dorian is waiting, and So
licitor Campbell is thinking hard.
|
Paris. May g. Kurino, the Jap
/