Shiner gazette. [volume] (Shiner, Tex.) 1893-current, 1909-01-07
How Loan Sharks Bleed Poor Clerks on
Salary Loans.
BORROWED s2f NEW YORK COMPANY HAD
TO PAY OVER 5000 TO REDEEM
Interest Perc
Interest 800 Per Cent.

large transportation company who
had to secure cash because of sick
ness in his family, went to a loan
broker and agreed to pay $50 in
one month for S24 loaned him.
When the money was received he
found out that it came from loan
office In Providence, r. l., and that
the man to whom he had applied in
this city was merely an agent. This
was on November 1. His salary was
received fate in the afternoon on
December L. the date the amount
was due, which made 1t impossible
to get the money to the Providence
Office ON the same day.
The following morning man
from a collection company called at
the Office of the borrower and de-
manded $40 on the loan, S1.49 pro-
test fee, 30 collection fee and 81
brokerage. making a total of S3749
1t was impossible for him to pay
this amount from his $50 wages
and still meet his living expenses.
The loan company offered to make
him a new loan of $24 II he would
pay the S1449 difference. This he
did for which he agreed to pay $50
January 1.
The same treatment was accorded
him January that he received De
cember L. In order to pay the
$37.49 IN full on January l to in
sure himself against a repetition of
extortion the following month, he
secured a loan of $40 from an
other agent, for which he agreed to
pay 500 on February / and $40 on
March 1. On February the sec
ond agent was paid the first pay
ment of $40 The manager very
kindly offered to give him new
loan of $50 II he wished to pay
the 500, which was due March 1,
and in this way the old debt would
be cancelled. He accepted the loan
and again agreed to pay $50 a
month for two months because, as
he put it, II got 10 dollars and
needed it."
1905 for $3.50.
At the end of 10 months, the next
June, he had secured about $3.50
cash and paid out, as nearly as he
could calculate, about 1865. He had
secured loans from at least 10 diff
ferent companies. His position
was seriously endangered and his
family was in such destitute circum'
stances that an appeal was made
to the Charity Organization society
for assistance An investigation
made by this society showed thai
in addition to the large amount
y 'eid the loan companies still
claimed about $3.50, which. II was
necessary to pay in order to save
the mans position.
An unusual story? 1t may be
but 1t is true and only one of I
score used to Illustrate report or
A. Ion al hue In
city, made afterl careful investi
CATION covering several months ant
Including a complete record of thu
loans made to 1872 different men b.
the 80 or more loan companies OPP
Grating here. The report Is pub
lished by charities publication com
mittee of this city.
The investigation was made b,
Clarence W. Wassam, acting for thu
Russell Sage foundation which wa
endowed by Mrs. Sage with ten mil
lion dollars for Just such studies.
What it means to a poor man o
young married man on a small
salary, to be in debt, is shown owe
and over again by such cases a
that of the fellow who borrowe'
1925 and paid back on 1t 1854
in six weeks. The kingpin of tn
whole business lies in lacking Of
extra charges IL payments are over
due, even for a day. If the victim
rebels, he is brought to time b
threats of filing on his employer TO
his wages. What the employer
attitude will be is unknown to tn
company. 1t considers a man
good risk" il it knows his employe
will discharge him II he has boz
rowed ahead on his wages En-
ployes know this, too, SO the con
panies advertise that the loans wi
not be made known. One compan
which advertised in this way, caugf
a man overdue in his payments an
demanded an extra amount of So II
which was interest on the loan at
rate of more than 800 per cent
year He offered to pay at the raj
OF 60 per cent. but his employt
was notified and he almost lost Ii
Job Shylock's pound of files
sounds like simple interest con
pared with the answer of the owl
er of loan company to man WI
asked for more time, and said thi
II his employer was notified he woul
be discharged and the only cour'
open to him then would be suicid
The proprietor of the company
woman-is reported in the book
have said that 'tif he committed su
eide they would close the Office
day and attend the funeral, but Il
employer would be notified unless
paid the next day"