Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-11-22

in one case where a borrower lost four
nositions in New York because or an
assignment of wages and nnally, III
despair, went to Cuba only TO De de-
tected and discharged. Ihe phllah-
throDic" spirit exhibited by office man
ayers (in this case, a woman) is shown
in one instance when a collector re-
ported to her a certain customer stated
that the loss of his position meant
suicide. The manager volunteered the
information if the customer did XIII
himself she would close the office and
everybody could go to the funeral, put
suicide or no, his employer would be
notified unless the customer paid the
next day.
Mr.. Wassam does not make wide
spread denunciation of all loan COM
panies. Some are very considerate and
several cases are known where com
panies have waited for several weeks
for regular payments and made no eX-
ira charge But the business is I'M
doubtedly an important contributory
cause of destitution crime and break
ing down of home ties. Many employees
who secure loans find it impossible
to save more than enough money to
paw the interest and are constantly IN
debt for the original loan,
Mr.. Wassam states that the pre-
valence of this condition of affairs is
books of one of the prominent loan
offices in the city. In list of 400 bor-
rowers, 1863 had been with the company
over two years and an equal number
from a year to a year and half. A
manager of prominent Office IN the
city, when asked the reason why the
company did not advertise, replied
there was no need to advertise, as the
majority of the customers took out a
new loan as soon as the old one was
paid: that it was not uncommon for
them to take a new loan to pay the old
one in order to avoid paying more than
the difference"
The effect of the business on the GUS
toner may be judged from few sample
letters printed in the report. One man
writes II cannot understand what mas
become of my wages. | know l am so
seriously involved if l do secure new
position 1 can never hope to pay the
different companies all they demand
and at the same time support my fam
lily. | have had no money and my Wlte
has had barely enough to pay our Nv
ing expenses. 1t has been one constant
round of paying the different COM
panies. When they threatened to file
upon my wages If 1 didn't pay them
more. l would go to new company,
and by signing a paper that had no
loan with any other company and
| agreeing to pay back about oouple
what L received. I would secure enough
ready cash to keep the other companies
! from notifying my wife and employer
| of my assignment. When was unable
to continue this they filed upon my en-
! ployer at once. What can l do? There
| is no use of getting another position.
as the tracer will find me and l VIII
be discharged"
An extract from another'letter shows
the mental condition of an employe OF
the New York Central railroad, who
holds a responsible POSITION "Condi-
lions made me almost a nervous wreck.
l wanted to be honest with these peo-
pie but they wouldn't give me chance.
/ kept going deeper and deeper, a fact
caused by the methods of the money
sharks. l am nearly crazy with sus-
pense as to which way to turn"
The nature of the salary loan bust
ness necessitates a higher rate of In
terest than that charged in ordinary
business transactions. In every state
which has attempted to regulate salary
loans the legal rate has ranged from
/ IL to per cent per month, depending
on the amounts of the loans. Seven
teen states have some legislation upof