The Montgomery advertiser., 1908-11-15

WE'VE IT ut0nt pay tutfh H1ofvs would go to a new company and agree ing to pay back about double what received. .-I. would secure enough ready cash to keep the other companies from notifying my wife and employer of my assignment. When I was unable to continue this they filed upon my employer at once, What can | dor Thers Is no. use of getting another pu- sftion. as the tracer. will find me and I wtli be dischargsd."
 An extract from another letter shows the mental condition of on employe of the New York Central Railroad. who holds a responsible position: "condi- tions made me almost a nervous wreck. n wanted to be honest with these people. but they wouldn't give mo . chance. I kept going deeper and deeper. fact caused by the methods ot the money sharks. am nearly crazy with suspense as to which way so turn"
 The nature of the salary loan busi- ness. necessftates 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 one and one-half to three per cent per month, depending on the amounts Of the loans. Seventeen States have some legislation upon the subject Indiana and Georgia definitely prohibit the as- signment of unearned wages. Five States definitely limit the time for which the assignment may be made. The time varies from thirty days In Colorado to two years In Massachu- setts. While Connecticut does not place a definite limit on the assign ment. 1t requires that the time of the assignment be delniteiy stated in the contract. New Hampshire, Louisiana, Rhode Island and Tennessee go further in this respect than any of the other States and demand that the employer accept the assignment in writing before 1t becomes valid. Four States. Colorado, Connecticut. Massa- chusetts and Michigan. require that the assignment contain definite infor- nation. Five States, Maryland, Mas sachusetts Iowa. Connecticut and Michigan. require license. in order to conduct the business of salary loans.
 Few cities have police regulations which supplement the State laws. In New York there are no local police regulations and the only State law with reference to the business, except the general usury law, is the law of 1904, which provides that a loan com pany taking an assignment of wages of an employe must Ale a copy with the employer within three days from the time when the assignment was made The courts have consistently held that wages are a commodity and as such are assignable: also that they are capable of purchase and sale.
 With the idea of enacting a general law which will, regulate the entire business of loanlnks money In New York State, Dr. Samuel M. Lindsay of Columbia University. ana Frank Tuck CT. vice president of the Prevalent Loan Society of New York. have draft ed a bill which provides for the regu- lation, by the State Superintendent of Banks, of all concerns which loan mon ey whether secured by peldges. of per sonal property. chattel mortgage on household fufnitura or an assignment of wages. The object of the bill Is to secure regular inspection. establish q maximum charge for different loans. prohibit extra charges in individual cases. require a license of every mon. ey lender who deals in small amounts and on the whole establish justice for both ths borrower and the lender.
 Other meth ods, aside from legisla- ton. which will aid in curbing the loan sharks" are more publicity re- garding the real. sifuation and prohib~ ting companies from sending deceptive Circulars and letters to employees. That out by newspaper publicity Is shown when . recent campaign of publicity was begun by The New York Herald against the salary money lenders, The manager of one of the largest offlces In the city stated that If the campaign had continued 1t would be necessary for fifem to close their two. large of fees, Mir. Wassarn's report ought to go a. good way in helpipg, along such canpal gns. It has been drought out in book form by Charities Publication Company of New York City. ss