Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-04-10
OLD GAME NOW IN NEW FORM
Story of a Hard Working Swedish
TeamSter Who Borrowed
Eighteen Dollars.
In Four Months lie Claims He Pait
Back at Rate of 1Ii Per
Cent Interest.

A business which has revomtionizei
its methods within one years time,
and which is Now being piled In fun
force IN Salt Lake is that of the sail
ary loan sharks
The reason for the sudden revol'i-
| ton is that one year ago the Utah
state legislature. taking note of the
way poor people and People ignorant
"t financial matters. We're heeced of
| their hard-earncd money, and charged
interest rates often amounting to over
100 per cent passed stringent anti
usury law
The law was meant to put the usur-
er out of business and compel him to
close shop. 1t did It for a. time. but
now skillfm study of the law has
feen made, methods Of indrection
have been devised, and the old game
is going ahead again in full force. Not
the least interesting phase Of it is that
State senator George y. Lawrence,
who, with state Senator Benner X.
smith, drew up the law, was approach
cd by ono of the loan shark compan-
les to be its attorney. and had a
chance to listen to very elaborate
method by which it proposed to OPP
crate without violating the law.
In the d. F. Walker block and in the
Atlas block. these loan sharks have es-
tablished themselves. \ sign is on al
most every floor of the two buildings
directing the salary Garner where tn
go TO secure accommodations.
TYPICAL CASE.
Here is what happened to Carl Berg,
a teamster employed at the Geo. ID.
Romney Lumber company, when he
tried to play the salary loan game.
Berg is q foreigner who speaks but
little English. Some time ago sickness
in his family made it necessary for him
to borrow some money. and he secured
Ii from the firm. a little later another
necessity arose to borrow more. and not
wishing to approach the firm a second
time he went to the STANDARD Credh
Co. of Denver the name being sgnifi-
cant since one of the new ways OF
operating the loan shark game is to
make the Office a foreign corporation
with merely a local clerk in charge,
and to have all notes made out to the
maker thereof, and by him endorsed,
so that in the hands of an innocent
purchaser they become a perfectly reg
ular and legitimate negotiable paper.
BORROWED SIS.
Berg applied at the loan Office on
Dec. 3, and borrowed SIS for four
months, according to his statement.
His agreement was 10 pay Sl.65 per
week for that length of time, and no
says he was regular in his payments
until April 3, when there still remained
TO be paid n balance Of $3.50. On thar
date he received a letter from the COM
pany filed with dire threats about
proceeding to collect. and assuring him
that unless he came at once, and set
tied the sum owed them would be IL
good deal more. In four months and
three days he paid the company. no
claims, and offers TO produce the proofs
of il, S26. 40, which makes an interest
rate of Utmost la PEI cent year, or
just a shade less than IL per cent
month.
VISIT TO OFFICE.
A visit to the loan office this morning
Immediately brought out the trick OF
evasion. The Standard Credit Co. OF
Denver. successor TO Cherry" was one
OF a number Of similar signs hanging
on an upper floor OF the ID. r. Walker
block. Within the office slightly built
woman looked out through a pigeon
hole.
where is the manager?' was asked
If you want to get a loan, can
transact the business was the imme-
Glate answer.
And what will the rate of interest
be ?"
Tae answer was quick, and Nlustra-
tive OF the revised Methods I'VE do
not charge interest You simply mako
ont blank and sian it. giving us an
assignment OF your salary which we
Will not ure unless forced to. Then
you agree TO pay us back so much
week, twice per month. or monthly
according 10 The frequency with which
you are paid. My accounts go 10 Den
veg every week. and are checked up
there so I AIN coinpsilad 10 see that
payments come in 9airly promptly"
When told that inquiry vas being
made FOR publication 80 tc' the COM
pany's methods tho little lazy defended
the loan game vigorously, o1u.pSrod II
TO the building society methods where
men lose all they pat In Decar.Se a
failure 10 keep UP payments results In
the taking OF the house with al i;tl-
PROPONENTS ndded afterwards. and 10
furniture stores which haye one price
fur cash and one Tor credit 5ho de-
clared whom asked about tho Berg !oEn
that nc had paid 50 less than he
claimed.