New-York tribune., 1912-02-19
TO MAKE CHATTEL LOANS'
New Society to Open Office in
Union Square To-day.
HAS CAPITAL OF 100000
Will Compete with Sharks, u
Charging 2 Per Cent a Month,
Against Their 10 Per Cent.

The Chattel Loan Society of New York, a
remedial institution incorporated under the
banking laws of the State of New York, for
the purpose of offering an opportunity to
small borrowers to obtain loans at reason
able rates Of interest upon the security OF
chattels, will open its office to-day on the
fourteenth floor of the Germania Life Build
ing, No. 50 Union Square.
It's capital is 100000 and has been. all paid
in. II has been organized chiefly on the IN
itiative OF the Russell Sage Foundation to
perform the same function as TO mortga &c
loans on furniture and other chattels which
the Provdent Loan Society performs in
pawnbrokins. It's organizers are largely
those already connected with the Provdent
Loan Society and it will be operated on the
same general lines. 1t Is not a charitable
Institution, but business organization, 10
be conducted on sound business principles.
The maximum loan will be 500. Interest
will be charged at the outset at the legal
rate OF per cent a month 1t is the hope
Of its organizers that it may be possible
tc reduce this rate later. Returns to its
contributors are limited TO per cent At
the outset only limited number Of appn-
cations can receive attention and the field
OF action will be limited to the Borough OF
Manhattan. Tile society will start out with
a small organization and will increase the
scope and field of its operations gradually.
To those who have personal property TO
pledge the Provldent Loan Society, organ
ized in 1894, offers an opportunity to obtain
loans at small cost. For the man who
has no security to offer except a mortgage
on his household furniture there Is. with
enc exception, no institution from which he
can obtain loan at reasonable rates. The
single exception is ST. Bartholomew's Loan
Association, which is doing all the business
IL can with capital Of about $4,000.
1t is not the purpose OF the new society
to encourage borrowing. Accepted appli-
cants will be obliged to demonstrate not
only their ability to repay the loan, but
their need for 1t. Loans will be made for
periods not exceeding ten months, and reg
ular instalment payments OF principal and
interest will be required. The customary
charge made by the professional chattel
loan Offices on loan of 500 for three
months is $50 payable in three equal
monthly instalments. or a charge of $50 per
cent per annum. On the same loan for the
same time the total charge through the new
society viii be Sc.
Years Of frultless struggle with the prob
lem have shown that the loan shark" has
arisen In response 10 q need that is real and
that publicity campaigns and legislative
activity cannot permanently improve the
situation. These methods may minimize
the evils Of the loan shark" system for a
time, but the reform is negative unless II
is accompanied by the establishments OF an
agency that will perform the ser'ice Of tho
professional money lender at lower rates OF
interest and under humane methods.
The officers OF the society are Robert W.
de Forest. president; Mortimer L. Schiff
vice-president; Pierre Jay, treasurer, and
Arthur II. Ham, secretary. The general
manager OF the society is r. r. Stevens,
who for several years has been an officer
OF the international Banking Corporation,
Of No. 60 Wall street.
The board Of directors includes George ID.
Pratt. Harold T. White, Paul d. Crayath.
John NJ. Glenn, Johnston de Forest. George
S. Brewster, John d. Crimmins, William
Sloane, Edwin c. Merrill, Henry Ruhlender
and Frank Tucker.