The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-12-20

Attention today in the fight on the
'Ioan sharks IN the District turned
from the poverty Of the victim to the
wealth Of the promo er-the man whose
money. the "crusaders' say, contributes
the greatest portion Of the borrowers s
distress.
The men and women In the fight
against the '1oan shark" evil say they
realize the power Of the capitalist back
OF the dummy proprietor Of many
Of the agencies, IL times past, they
assert, money las been used to defeat
needed legislation, and what is more
significant. they broadly hint at the ex-
istence this year OF a corruption fund"
Intended 70 grease the road Of the pro-
posed West bin to defeat.
Power Of "Man Behind"
That the enemies of the loan shark
do rot underes .hnate the power Of that
unscruplous gentry 10 impede their
plans for corrective legislation was
freely admitted today. To illustrate the
power OF the "rIan behind" the loan
shark and his reasons FOR desiring TO
Tested of law. a man in the forefront
OF the present loan shark fight told Of
one man who hss realized a big for
tune IN a few years oy wringing usuri-
Gus rates from helpless borrowers
'The head Of one Of Ile great loan
companies doing business in every large
city includinS this CITY," said this man.
started a few years ago with almost
no capital. He loaned a little money on
salaries. Today he is many times
millionaire. His Washington Office con
fines It's attention 10 salary loans.
THE head Of another syndicate, whose
name never appears I'm the business, has
posed for several years as a social lion
In New York, Washington. san Fran
cisco and London.
Is Great Traveller.
"suH another is achieving a reputa-
tion among mis- rends as traveller, a.ld
every year he brings back from Europe,
or Egypt, or the Far East, costly cUrios
and art treasures. about which he can
talk like "a gentleman. These are the
men who viii spend money lavishly to
defeat any legislation hurtful TO them
Referring 10 the great profits that
come TO the loan shark, this same man
continued.
TO get at the exact profits and ex-
pcndituTes Of conducting the business
in Washington uccessitates an eNaml-
nation OF books not accessible. Tt Is
interesting, however, 90 turn TO consult
certain estimates ma le by Clarence w.
Wassam, Pm D., il "a report 20 the
bureau of social research of the New
York School Of Philanthropy. In this
report Nr. Wassam assumes that the
average capital invested in a typical
salary loan office ls $1,000 with annual
operating. expenses Of 5000. lie tells Of
the proprietor OF a prominent loan office
iu New York who guaranteed Il man
$4,000 net profit annually on an invest
ment Of $1,000 This loan shark supple
mentCd this by saying that even larger
profits could be expected.
Profits Enormous.
a careful examination Of the books
% an office i'm New York city, accord
ing to Mr.. Wassam. showed that. i'm
one month, net gain Of S5u was real
!zod on loans aEErcgatinE $l,659- a clear
profit Of 1854 per cent ia ono month.
Based upon this rate Of profit. the NET
annual Income in an Office Wlth a $4,000
capital would be S3i36S-
Tho owner of two large 3f1 yes told
Mr. Wass8m that a. friend Of his began
business about three years ago with
$4,000 Recently hc WAS offered $4,000
for his business. and iu the meantime ne
has placed $1,000 10 his credit iu banks.
aking $1,000 clear profit In three
years on $1,000, in addition 90 his living
expense
Bill in Senate
Senator GalIinger introduced Iu the
Senate today the bill prepared by Com
missioner West for the regulation of the
money lending business iu the District
OF Columbia. The provisions OF this
bill which Is aimed at the operations Of
the "lOau sharks have already been
announced. If carried into effect, they
would In the opinion Of many. effective
ly remedy the present situation, or at
least greatly relieve n.
The amount OF interest coIIectibIe from
loans on collateral would be limited to
. per cent "a month.
The Senate District Committee will
take this matter up after the holidays
and give its adequate consideration
RAISE FOR PASTOR.