The Detroit times., 1912-03-12
Ne7c Plan Fonnd For
Curling Loan Sharks

Another club against the loan
sharks was taken up. Tuesday morn
ing. by the council committee on
ways and means when the members
discovered what they believe will be
an effective safeguard against tho
uuscrupulous agents In the rejection
of their bonds.
When the new law requiring the
loan agents TO file bond in the sum
OF $4,000 with the city and take out
licenses went in effect last August,
the agents did not comply, and blank
bonds were forwarded them by Sergt.
Alvin Hicks, of the mayors office.
The agents ignored them. but since
the prosecutor began his crusade there
has been diseosition on their part
10 comply with the requirements OF
the law.
The first bond filed under the Jaw
was that OF the Michigan Mortgage 4
Loan Co., and the bond which was
submitted about a week ago was be-
| fore the ways and means committee,
Tuesday morning for discussion. The
bond Is given in the name OF George
| Then, as principal, who was reported
to be now conducting the agency with
out a license, and John Bishop, as a
surety.
Right off the bat the aldermen 80 W
| the possibilities In the new system.
| The committee decided to hold UP
the bond and application for license
until the concern obtained clean bill
| of health from the police commits
sioner and the prosecutor. This step
| will be taken as matter OF pr!n-
| ciples in the case of each loan agent
when the bonds are fled.
/ We have the power right IN our
hands to stamp out the loan shark
evil, il seems" said Chairman Glin-
nan. 70 The Times. THE commltt0.
will not approve OF bonds until the
| agents receive the sanction OF the
prosecutor and police commissioner.
II the law compels the agents TO give
bonds and obtain licenses before do
ing business the police can see that
| they obey IL and it will then be up
TO the council TO get their records"
Speaking before the committee Aid
tSchultZ said: IL don't think We can
be compelled TO approve any app!lca
tions for licenses IL the loan agents
are doing business illegally. We
should hold up the bonds until We
hear from the prosecutor"
Prosecutor Shepherds practice OF
sending loan shark victims TO the
companies and demanding a receipt
in full has aroused the ire of the
State Lean Co, aHd, Tuesday morn.
ing, it threatened TO get even with
I one man who took the prosecutor $
I advice and asked for receipt, re
fusing TO pay any more.
This man borrowed $25, for which
he agreed TO pay six monthly Install
mcnts OF 1915, or total OF S51.50
which figures the interest at about
200 per cent. He has already repaid
1925, and on the prosecutors adj
vice has refused TO hand over any
more, and asked for receipt. II
was refused
Well get that money, you crook,
one OF the clerks stated to the vic
tin. Well fix you II every cent OF
that money isn't paid.
The man reported to the prosecutor
the result of his visit, and was toit
to pay no more attention TO the com
! pany's demands, and If suit Is staTtei
he was promised the assistance o.
the prosecutors staff in defending 1t.
The first complaint made agaias
the ProHdent Loan Co., an organiza
ton of Detroit business men, designed
TO assist persons in need, came Tues
day, from a woman. She said tina
she borrowed s75 from the company
giving a mortgage on her furniture
She had paid back $35, she said, an(
the company made new note ~
ss2. adding s25 which the woman says
she never received. She was sen
home for her books and receipts, ant
Prosecutor Shepherd will look int
the matter The woman also com
plains that A. II. Cone, manager o
the Provident Loan Co, will not per
nit her to remove her furniture to ;
house she wishes TO lease.