Los Angeles herald., 1909-10-09
Edited by George B. Harrison, Municipal
Expert

Edited by George b. Harrison, Municipal
Expert
A PHASE of civic betterment which
"A has called for serious attention
IA in many eastern cities because OF
the fact that it affects the general
standard of citizenship is the proper
regulation of salary or chattel leans.
The magazines and illustrated weeklles
break out at intervals with articles
against the loan sharks ana lheIi
methods but seldom offer any con
structive theories or anything petteI
than a showing of the worst side OF the
loan agents work. Men actively en-
gaged in municipal betterment work,
particularly the secretaries of munlclpaI
ieagl1es and other civic bodies, nave
! recognized that loans of this character
meet a need not filled by those aEaI3
able with good security and oDtalheu
through the banks.
on fbe other hand the loan shark
while seldom interviewed, might tell
story of interest from his NleWpolEs
He is often dealing with man IN
/ desperate need of money from pellectlg
legitimate causes, and when ms haIu
luck continues the loan agent mas hllil7
self with all his papers drawn up ana
the money loaned out, but with no pay
ments coming in and no payee 10 De
found. The situation has led to various
means for security which In themselves
are unsatisfactory to both parties put
/ which in their indirect effect do not
( raise the citizenship of the community
/ Repressive legislation, according 10
qualified testimony, instead OF dlSCoh-
tinuing the evil tends to make rates
much higher and methods more devious.
This has been proved in Massachusetts
that the class of loans attacked Is
needed. All efforts to make these loans
/ confirm to a low rate of interest nave
similarly failed in their purpose, as tne
high interest has been collected through
indirect methods.
Recognize Value
Authorities in several states nave
come 10 the conclusion that instead OF
deliberately attacking loans OF TINS
/ character their value should pc rec
/ ognfzed. but that regulation should be
hV comnetition rather than suppression.
/ This has been tried in New York with
success. although there is now but one
nlace In all New York city where an
! anplicant for a loan on his salary OF
for a chattel loan can go, knowing that
he is dealing with a society studying
the problem which confronts him..
This problem, if it can be solved IN
an equitable manner, offers an oppof-
+rnity for lettering municipal condl-
+ions The man or the family affected
stands frequently in severe need OF as
sistance. for the loan agents say that
most of the better class of clients are
sa1aried men or women who earn SIM
ply enough to keep themselves ana
those they are supporting adoat, ana
who must turn to them Tor assistance
in emergencies brought on by SICK
ness or. accident. If they are made des-
perate by harsh conditions they are
/ likely the less to be good citizens es-
pecially If it appears that the. WhoIe
CITY stands out against them The man
In this frame Of mind who falls into
the hands of a loan agent, VINO cheatS
| him and nurses his installment paying
limit. as some agents do, usually ends
by losing his job. He is not so apt to
consider the city's questions at the
polls in as public-spirited frame OF
mind as the man who Is in easier cir
cumstances.
Must Refuse Extensions
on the other hand, the loan agent
who recognizes his customers plight
and carries him over several weeks
as loan agents do more often than they
! +eI1-because of a sick baby or a fail
ure in earning power, gets little SYM
pathy and has no means OF raising gem
eral standards in his line OF work II
ANYTHING of this sort is to be done 1t
/
municipality.
If happens that Los Angeles pos
sesses a society especially organized for
such opportunities to raise standards
of citizenship, and with a considerable
fund available for the work. The good
government fund, recently instituted by
men interested in establishing a method
of raising money for advancing good
government, now has an income of
about $4,000 a year. The prospectus 1t
has issued would indicate that the es-
tablishment of salary loan office as
regulator in that field would be entirely
| within its province. Such a work would
not monopolize the salary and chattel
loan business of Los Angeles-it would
simply set through careful and thor
ough investigation of conditions and an
observance of the most approved meth
ods elsewhere an equitable standard
for arranging such loans. Loan agents
now in business who are endeavoring
tn conduct a fair business, as they see
it, ought to welcome such an innova-
tion, while those who are squeezing
every penny out of their victims would
find their schemes impossible. This has
been demonstrated after fashion in
the east, although it is only recently
that the plan has been taken up.
Would Be Self=Sustaining
Such a movement in the hands of the
great an effect in municipal betterment
as the Endorsement of any candidate for
a city office, and ought to be easily self
sustaining in time creating its own
fund independent of the aid of the or
ganization.
A feature of civic improvement which
would cost practically nothing to OBJ
tain. and which needs only a little Wig
orous effort to secure, is the establish
ment of a branch photographic office at
san Pedro, with a time ball at the har-
Dor and another in the heart of the bus
mess section of Los Angeles. The need
of this is seen by the photographic
Office which now has but three
, branches on the entire Pacific coast,
and the effort would no doubt have the
Endorsement of Lieut.. Burnett, who has
charge of the office at San Francisco.
Establishment of a branch office at
; the harbor would mean a great deal
in advancing local harbor interests
In addition to giving regular clear
l ing house of information for navigat-
ors, which is of great value in estab-