Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-11-14
PAID OUT sG6s FOR s24.

s because, as ne Pul ~ by
/ needed it,"
PAID OUT sG65 FOR s24.
At the end of 10 months, the next
June, he had secured about sl5o IN
cash and paid out, as nearly as ne
secured loans from at least 10 different
companies. His position was seriously
endangered and his family was IN such
destitute circumstances that an appear
was made to the Charity Organlzatioii
society for assistance. An investigation
made by this society showed that ~
addition to the large amount pala, tna
loan companies still claimed about sioV,
which 1t was necessary to pay In order
to save the mans position ;.
An unusual story? 1t may be, but !.
Is true and only one of a score useu
to illustrate report on the salary loan
business in this city. made atter
careful investigation covering several
months and including complete re-
cord of the loans made to ~ diiterent
men by the 80 or more loan COMPANIES
operating here. The report IS TO pe
nnblished Saturday in book form by
charities publication committee OF TINS
city. The investigation was made py
Clarence w. Wassam, acting tor the
Russell Sage Foundation which Was
endowed by Mrs. Sage with SloOoo,ooo
for Just such studies
SHYLOCK# PUT TO SHAME.
What it means to a poor man, or
young married man on a small salary'
to be in debt, Is shown over ana over
again by such cases as that OF Wy
fellow who borrowed $13.25 and PAID
back on it SEAS in six weeks. The
kingpn OF the whole business lies ~
lacking on extra charges II payments
are overdue. even for day. If tne
victim rebels, he is brought to time mt.
by threats Of filing on his employor lot
his wages. What tho employers sattl-
tude will be Is known to the COMPANY.
It considers man a good risk" II II
knows his employer VIII discharge MIN
IL he has borrowed ahead on isswases.
Employees know this too, SO the com.
panies advertise that the loans VIII nv Nv
be made known to employers. olie
conpany which advertised in this way,
caught a man overdue in his payments
and demanded an extra amount Oh so.iu
which was interest on the loan at
rate Of more than 300 per cent year;
He offered to pay at the rate OF oy
per cent but his employer was hotil,eu
and he almost lost his job. Shylock 8
Mound of flesh sounds like simple IN
tcrcst compared with the answer OF ltie
owner Of loan company TO a man no
asked for more time, ana sa!a .iiae ~, ~
his employer was notified ne Would y.
discharged and the only course open 70
him then would be suicide. Inc pro-
prietor Of the colnpany--a Wonlan,ls
reported in the book to have SAID tiih,
..if he committed suicide they woulu
close the office a day and attend the
rmner,I hut the employer would be
notified unless he paid the next DAY.
Women are largely employed by the
loan companies. They work for lower
wages and then too, there would DC
constant danger Of physical yiolence
"lf the borrowers were treated py
nff nv the women
managers
HUGE RETURNS ON CAPITAL.
A long series of interviews with men
in tic loan business, some OF Wiioin
talked frankly, led Mr.. Wassam to coti-
clude that the 30 loan offices of Which
he knows personally have an average
OF $4,000 which brings IN yearly an
average return of not less than S4p,oo vS'
In all, the Investment Is about S5Vo,oo',
with WHICH Is done an annual business
Of about 81 200, 900. There is compare
tiye!y little legislation on the sub1ect,
hut those states which have attempted
TO regulate it have fixed the maximum
interest at from IA to per cent d
month. Tho legal rate OF interest N
New York state Is per CENT q Feat.
In the few cases which have been taket
before a court the loan companies nave
contended that this rate did not apply
TO them; that they We're not ioanine
n man money, but We're buying MS sal
airy IN advance just as they might puy
a farmers growing crop But very fe"
cases are ever taken Into court. Ii tins
company suspects that u man has ever
consulted q lawyer, 1t demands luline
date payment with Il threat OF notitS
Ing his employer Then, too, the mel
who borrow on salaries are not often th'
Kind given to litigation. That the.
are wage earncrs is clearly shown by
the fact that 80 per cent of the pay
ments are made weekly and the mos
frequent amounts are under $50, 1t J
the workman with the Saturday pa,
envelope. and most often the employ
of a large transportation company Q
manufacturing establishment, who !
the usual customer. In some cases
is even led into the trouble by nj
superiors Mr.. Wassam has records 9
forepen timekeepers and even of
private secretary, who We're in the en-
plov nf q loan firm and were paid con-
missions on al loans made to the en-
ployes of their house.
SALARY LOANS A NECESSITY.
The salary loan, Mr. Wassam poin
out, is a necessity in large city
the man on small salary. II n
wages just about equal the cost OF ny
ing for himself and his family, he mu
borrow somewhere in case of sickne
and chiibirth, to meet insurance pr
miums. and in many family emergel
cies. Salary loans are not intrinsical
bad, but at present the business nett
DDS in vogue are frequently open y
severe criticism. This Is especial
true where the loan is made from gu
side the state MS in the story whit