New-York tribune., 1908-11-14
Amount In

Mr.. Wassam quotes the managers Of big loan
Offices which he visited in the course of his investi
CATION as saying that 75 per of their customers
hard working men with families, who first
got Into the salary lean net when unusual
expense. caused by sickness in the family. neces-
sity of moving some other drain made it neces-
sary for them to borrow money The other % per
cent they said were largely those who had lost
money through gambling.
Before he gets loan a borrower must make an
assignment of his wages and sign the power
of attorney. In any of the weekly install
ments become overdue collection fee and pro-
test fee are added the charges for the loan and
in the case at least of one large o,t-of-town con-
Germ a brokers' fee must also be paid If the bor-
rover refuses TO pay any of these charges or the
principal the assignment Of his wages fled with
his employer and in many cases the latter dis
misses him for having anything to do with loan
sharks
At tais iuncture the loan company brings its
tracer into the arena Each ONCE employs one
such person hound the dismissed borrower from
job to job. always filing the assignment of the
latters wages with his new employer and causing
successive dismissals. The thoroughness with
which this spy follows his victim Mr. Wassam IL
Iustrates by citing the instance Of one man who
lost four Jobs in New York because OF an assign
ment of wages, and finally in despair went to
Cuba. only to be discovered and discharged Mr..
Wassam found that it impossible for many
employees to save more than enough money to nav
the interest and other chag and that they were
constantly in debt for the original loan He saws:
The prevalence of this condition Of affairs is
shown by careful examination of the books Of
one Of the prominent loan Offices IN the city In a
list of 400 borrowers le3 had been with the company
over two years ana an equal number from a year
a manager of a prominent Office in tho city when
asked the reason why the company did not advpr-
the majority OF the customers took out new loan
as soon as me 2id one Vas paid; that it was not
old one in order to avoid paying more than he
difference. nan TUG
MANY cf those borrowers re,e-i.,, .,..,-
over another company 10 pay tho o15 5et,
When the process of borrowing from one loan com
pony to pay another is begun It is not long heforo
the borrower becomes hopelessiy involved and re-
quires outside aid TO clear him Of his burden Mr.
Wassam cites an instance OF ernpIoye of the
New York Central Railroad COMPANY who bassp
with an Insignificant debt, and shortly il vas
necessary for charitable society to advance s2tn
10 him TO save his Job and obtain his release An
other instance IS cited of the case Of an en,nlove
J Of "A large transportation company who through
f broker In this city, agreed to pay Providence
concern $50 in one month for loan nj sci and
finally became involved to such an extent that I'm
nineteen months he had obtained about s150 IN
I cash AND had paid out the loan companies as
nearly as he could figure $s65. The Charity Or
ganfzation Society had 10 pay additional $50 10
obtain his release
Little legislative and police regulations govern
the salary loan business in this city With the
idea of enacting a general state law. Or Samuel
/ NJ LINDSAY Of Columbia University and Frank
Tucker. ice-president ol the Provident Loan So
ciety have drafted bill. which provides Tor the
regulation. by the State Superintendent Of Banks
Of all concerns which lend money, whether secured
by pledges OF personal property. chattei MORTGAGES
! on household furniture assignment of WAGES
The object of the bill obtain regular insrec-
tio1. establish maximum charge for different
loans prohibit extra charges IN Individual cases
require a license of every money lender Who deals
I'm small amounts. and on the whole establish ts-
! tice for both the borrower ana the lender
MI Wassam's thesis Is being published ny the
! Charities publication committee. acting for the
| Russell Sage foundation