The Detroit times., 1912-02-29
SIX WARRANTS ISSUED IN
GIANT CAMPAIGN TO MAKE
LOAN SHARKS OBEY LAW
Usury and Other Violations of
New Statute Charged-Two
Arraigned in Court
HUNT WILL DEFEND THEM
Attorney Says Law Is Unconsti-
tutional-Victims Flock
To Prosecutor

Dig crusade against loan sharks
"hich was quietly inaugurated by a
number OF public-spirited citizens. last
december, and has been worked IN
ever since by Special Officer Thayer.
came TO climax, Thursday, when six
warrants were sworn out against mon.
ey loaners. FOR various violations OF
the state law, governing their bust
ness.
Two of the defendants were arraisn
ed before Justice Jeffries. charged
with usury. The cases were set for
hearing on March z, -
Philip HILBERT, OF No. s2O Nc
Dougaii-aye., swore out a warrant
charging the American Loan Co,
with offices in the Chamber OF Com.
merce, with charging him $S6 for a
loan of $25, for six monthss
Louis Bexley. No. 236 Macomb.st.
swore to two complaints against the
Detroit Mortgage Loan Co. represent.
ed by Carl +. Marsh, manager. One
complaint charges that an Illegal fee
or 20 cents was asked for an exten.
sion OF his loan, and the other alleges
that Zee OF 81 was charged for max.
ing the loan, while the law allows only
81 fee.
Both of these defendants were ar.
ralgned and pleaded not guilty.
william X. Fortune, Of No. 5I2 Hum.
Doldt-ave., swore to a complaint
against Jonathan L. Clutton. doing
business as the Salary Loan Co. and
the only local head of a Detroit loan
agency where illegal methods are
alleged. Fortune charges that a loan
$50. vs. nm
John b. Mcclure, No. SO Henry-st.,
swore out two warrants, charging A.
Jackson with operating loan agency
without a license in the Hodges build.
ing.
+ Regular pawnshop methods prevail.
ed in that Office, according to Nc.
Clure, who says that his watch and
chain were taken as security, which
Is another breach OF the loan Office
law He says Jackson stfff mas his
watch, though he has paid $50 on an
original $50 loan. and Is still I'm debt
to Jackson for $50.
Assistant Prosecuting Attorney Har.
ry B. Kiedan Is In charge of the vari.
GUS cases. and Detective Thayer is
working In cooperation with hmi
Prosecuting Attorney Shepherds 8
announcement that he would wage a
war against the loan sharks In the
city has brought into his Office food
of cases in which citizens complain
of having been fieeced.
Il am not going to rest until these
sharks are driven from the city. or
conduct their businesses honestly"
Mr.. Shepherd declared, Thursday,
after listening to a particularly dis
tressing case. People who are now
paying exorbitant rates of interest
for small loans, need not pay an.
other cent II they bring the matter
to my attention. Not only are they
relieved from paying any more in
terest. but IL IL can be shown they
have been charged above the legal
rate they are relieved from paying
any more of the principal
The loan men who are looking for
trouble have engaged Attorney Or
mund +. Hunt to defend them. MIR.
Hunt will base his defense on the
alleged unconstitutionality OF the law
under which the prosecutor is pro-
oeeding. This law, passed in the last
session of the legislature, provides
that in case loan agent goes into
tho civil courts to enforce a collec
! tlol of a loan, the Judge. i'm case II
! is shown that usurious interest has
been charged, can declare the entire
debt, principal and interest, cancell
ed. Mr.. Hunt declares this law is un
constitutional and absolutely void.