The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1909-12-15
Seattle, Wash, 12-11-s


Dear Sir: l have followed with
interest your articles on the Loan
Shark Evil, and believing that !
am In possession of some informa-
ton on the subject. perhaps you
will accord me little space on the
matter.
Over two years ago one of my
boys, then holding good posi-
ton with a prominent firm In Ia
coma, saw what he considered a
chance for profit in land deal in
connection with one or two friends
and so invested his spare cash.
Unforeseen expenses. taxes, street
improvements, ETC., requiring
more money than originally fig
ured on. induced him to negotiate
loan with one of. the compan-
les now under fire.
The original contract, typical, !
believe, of all others, was for $4o'
and II carried out as signed for'
would have terminated in six
months at a total cost of $64.
Twenty-four dollars interest on
$40 for six months looks good, but
as SO had to be repaid monthly,
even $24 does not by any means
represent the loan company's per-
centage on the transaction. This
$64 represents the least amount
any unfortunate borrower would
have to pay to effect release, but
as matter of fact. few if any ever
get away so cheaply as this. Fail
ure to pay one months installme nt
opens the way for all sorts OF in
creased interest charges, ETC., In
which every kind of quirk is intro
duced to prevent the victim from
getting clear, such as substitution
loans, in which party gives note
for a larger amount than that ac-
tually furnished difference sup
posed to be interest) and various
other schemes too. numerous to
mention. My boy was not one OF
the few.
Here 1t is we'll to note that
these companies play into each
others hands. No sooner do you
subscribe to one than you are
promptly invited by some of the
others, through the mail, to pat
ronize them. their prospectus be-
ing generally drawn so as to APP
pear a little more favorable than
that of the one with which you
are already doing business, thus
paving the way for the following
benevolent arrangement:
Surprising you find 1t impossible
to meet payment No. 4, 8 or g.
Company No. makes all kinds OF
threats as to being bound by rules
etc, compelling it's management tc
take legal steps for collection, gen.
orally using the argument that
failure on their part to do sc
would invalidate the contract al
together. Purely in the interest
of the borrower, of course, 1t IL
then blandly suggested that while
1t is against their rules, to renew
an incomplete contract, they
would favor you with a letter OF
introduction to the rival CD firm
from whom a new loan could be
secured, thus enabling the victim
not only to settle the first claim
but to have money left.
Seeing no other way out of the
tangle, and DESTROYS at any cost
of keeping the matter from tn.
knowledge of his employers, the
victim generally gratefully jumps
at the chance and his finish as 9
free agent is thus assured for 9
further indefinite period. Above
describes my sons position when
] butted into the game.
Sometimes after being involved
In this chain a letter came to the
house addressed to me by mistake
after which things began to hap.
pen. I discovered that the boy
was involved with no less than
three of these offices and had
about as much chance of ever re-
leasing himself as a mouse has in
the clutches of cat. Aiming my.
self with all the documents / could
obtain, called upon each of the
firms interested, and in two of the
cases offered to pay the full
amount of the money actually re.
ceived, plus legal interest to date
informing them at the same time
that otherwise l would fight. In
the other case finding t.lat SIS
more than the legal interest had
already been paid, I simply noti
fled that office that they consider
the account closed. I was laughed
at, told to go to a very undesir.
able place--not the North Pole
and was notified of the fact that
they had things so fixed that 9
legal defeat was impossible.
/ did not see II quite that way
but put the case In the hans oil
one of our best lawyers, told the
boy to turn over all visitors and
correspondence to him and awaited
developments.
Fight oilened by the filing Of
garnishment papers with the boys
employers. who paid the money in
to court and discharged the boy
Case carried to Superior court, all
three companies being made par
ties, where Judge Clifford decided
contracts null and void account us
ury and boy being under ere.
Won u.nit1I xaaf,xroIIxx c..... =