The Birmingham age-herald., 1911-11-08
SOLUTION OF
 MONEY SHARK Problem Depends Upon Suf- ficient Capital to Lend INTEREST CUT DOWN Solution Has Been Proven by the Atlanta Loan and Savings Com
 pany-Company Placed
 472 Small Loans
INTEREST CUT DOWN

Atlanta, November 7.-(Special. )-At- lantas solution of the money shark problem now depends solely upon suf- ficient capital to lend the legitimate small. borrower enough to satisfy his needs.
 That the solution is feasible has al ready been proven by the Atlanta Loan and Saving company, which within the four months of it's existence has placed 472 small loans, averaging less than s125, and aggregating about $5s,00O. Every loan has two good indorsers, the borrower pays interest and principal in small weekly installments, and the percentage of delinquents is as small or smaller than in state or national banks.
 The concern started out with capital of S50,000 and has loaned out every dollar of it and more, too. The com- pany is preparing nov to double it's capital stock, but even, that will not prove sufficient to take care of the legitimate business that comes to it. It could easily lend s2O0,000 to small borrowers in Atlanta at legal rates or interest, whereas these borrowers are now paying the money sharks any
 where from to 30 D.. cent a. month.
 The company lends a man, say $50 at per cent He must have two good indorses and must show that he Is, able to pay from his salary the sum of S1 per week for 50 weeks for the extinguishment of the loan. He must also show for what purpose he wants the money, and unless the purpose IS legitimate, he doesn't get it. .4=-44
 In 400 instances of the loans so far. made part or all of the money loaned was used to pay off the indebtedness of the borrower to the money sharks, as result of which these 400 men have been saved $10,000 a year in interest charges alone.
 Thus has the Atlanta Loan and Saw ings company taken much of the cream of the business away from the money lenders. The borrower now. pays back both interest and principal for a smaller sum each month than he formerly paid to the money sharks as interest alone.
 The result is the money lenders have. in many instances. cut down their interest. charges and have stopped issuing court processes and sending men to jail for failure to pay their regular interest in- stallments. They have become suddenly good, and one of them even went so far as to approach the OIlcerS ol tHlS cOii- pany and to ask if they would let him alone if he would oontine himself within the state law, which permits charge of 3 per cent per month as interest and makes 1t misdemeanor where higher. rate is charged.
 The company's purpose is to get cap ital enough ultimately to suppant every money shark loan that is legitimate. It is not regarded as charitable institu- tion in any sense. but a concern that proposes to make money and at the same time supply a long needed want of the small borrower who cannot get money at the regular banks even on good in dorsement, because they can only pay in small weekly instalments, and the reg ular banks will not accept payment in that way.
 In addition to solving a big sociological problem and doing great humanltarlan work the company has demonstrated that it can earn per cent on its stock and at the same time gradually accumulate a surplus which will add to the stocks value. A number of cities in various sections of the United States have writ ten here for details regarding the plan with a view of putting 1t into operation.