New-York tribune., 1911-01-15
Hungry Loan Sharksll Get You
If You Don't Look Out
Poor Man Who Confides in
These Scamps Is Likely
to Regret Ii.

The recent steps that have been taken by
tire sage Foundation TO drive usurious
money lenders out of existence have brought
10 light the rather astonishing fact that
there are to-day I'm the city Of greater New
York from $50 to 40 salary and chattel loan
houses that are doing a gross annual busi-
ness Of about 10000 90 and realizing about
u per cent a month on their investment.
The greater part Of this business comes
from working classes and tho poor upon
whose acute needs the money sharks prey.
Sickness, death. drunkenness and improvi-
dence are all stepping stones TO the loan
sharks Office. Charges of 20 per cent a
month are sometimes made. the rate in
many cases depending upon the helpless
ness n the victims. Nevertheless not all
men I'M the loan business are disreputable
or dishonest
The move made by rne Russell Sage
Foundation. however. IS regarded by many
a. step i'm the right direction. The Foun-
dsfion is determined TO make an effective
gut in smashing this serious and
growing menace whose influence is felt
throughout the land. and as preliminary
for the battle that Is TO he waged the
Foundation has entered into negotiations
with boards of.trade in nearly all the large
cities Of the country looking toward con-
Certe5 effort in running the loan sharks out
Cf business Behind the Foundation are
large funds with which to carry on the
battle
Charitable organizations are continual
witnesses Of the misery wrought by these
leeches and IN order TO get some idea Of
The evil a Tribune reporter called on Leon
ard McGee. attorney for the Legal Aid
Society. Of this city. who said:
MANY persons who have been victimized
by these usurious money lenders have been
referred TO the attorney Of the Legal Aid
Society. which has been powerless to
prosecute these cases criminally since 1894,
when Section S7s Of the Penal Code was
amended Prior 10 1904 this section made
It a misdemeanor 10 charge more than .
Der cent interest upon a loan secured by
an assignment Of wages and vigorous
prosecutions carried on by the District At
toruey ~ that time resulted In the closing
o. nearly all the salary loan Offices in the
city But with the amendment OF this law.
50 as 10 exclude those who make loans
secured by salary from criminal prosecu-
ton, these harpies have hocked back TO
New York and are now tiourishing IN
create numbers than ever.
The law whereby a judgment can be
shio-ced against the salary Of the judgment
cettor where such salary is more than 81
a~~eek. Is a matter that rIluires rsdi-
cal change The only absolute protection
against this present abuse is law making
u crime TO charge more than per cent
interest upon a loan secured by an assign
meut OF wages The re-enactment OF such
law is much needed and II is hoped that
public opinion will be directed toward the
Passage Of such d law at the present session
OF the Legislature"
Asked for particular cases Of hardship
caused by the loan sharks. Mr. McGee con-
unued: A bookkeeper working for large
corporation, became hard un and made the
usual assignment Of salary required by the
so-ealled broker for much larger amount
laaD the ca~h actually received. The poor
fellow was not able 10 make good the debt
as soon - he expected. and 1t did not take
Ionz before he was being bounded by the
loan shark. and In desperation made his
case known 10 our society. one OF the
attorneys called on the money lender with
tne applicant and rendered the balance or
me amount Of cash actually received. plus
per cent interest The offer was a. first
refused. but when the shark was told that
suit was brought by him 10 recover the
society would defend the unfortunate bor-
rover different view was taken and the
tender was accepted
Wofkngman appealed 20 the society
some time ago. stating that he borrowed
- rom loan association. giving n1or'
gage on his household furniture, and that
the association demanded S26 interest and
~HaTses. We 1T cnce had or society's at