The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-04-10


the management OF the company, and
the Prosecutor asks that the approval
OF the bond be withheld unless a
change in management may be effect
ed The Prosecutors letter In rela-
tier to Tire pro&t4ent- bonn lArsuctTttun.
IL as Follows.
OF your letter under date OF March 20,
regarding the application for approval
OF bonds filed by the Proyident Loan
Association and Equitable Loan Assoc
AS YOU and the members OF the
Ways and Means Committee are doubt
citizens OF Detroit are directors and
stockholders In the Provident Loan
Association. and there is no, question
but that those public spirited ana De-
nevolent citizens would not knowingly
countenance anything about which
there could be raised any question
days. In which time have been In
vestigating the loan business In De-
troit. some things have come 10 my
ment OF this association. but which can
in no way be laid at the doors OF these
public spirited directors and stockhold-
orable committee which you represent
10 refuse the approval OF the bond OF
this association unless the services OF
can be dispensed with. / have reached
this conclusion In all honesty and
without any personal feeling whateSS We,
slightly. maintain that an organ
ization like this Is at least semi-phii-
anthropic in its nature. and that any
such Institution should be conducted
in such manner that there could be no
possibility of anyone questioning me
methods employed in carrying on It's
clusion that Mr.. Cone has failed in this
regard for the following reasons:
In the first place Mr.. Cone admitted
to me in the presence of witness a
w
practice since he has been operating
this company TO charge commission
OF one dollar In all cases where ne
effects a settlement for a victim OF a
loan shark. and that lie has paid into
the treasury OF this company Inc
money received from this course under
the statement. which Is signed by the
directors OF the company, and which
was printed In the press OF Detroit 2
few days ago, II Is set out tnat l.Soo
his fncumbency That would mean
under his admission that he has taken
$500 from those loan victims. which.
IL seems to me, according TO any code
Of ethics, is quite the wrong thing TO
do. But further in this connection, one
of the victims OF another loan COM
pany has told me that some time ago
she went TO Mr.. Cone and was told that
he would settle her claim with this
loan company for 1920; She gave him
company show that he paid that com
pany twenty cents. retaining the $500.
am sure the Provident Loan Assoei-
alton directors would not want two
dollars thus obtained, IL they ever re-
ceived IL. Another victim reports that
she went TO the Provident Loan Asso-
citation on a similar errand. and he
] told her he would settle her claim for
s2.s6. Mr.; Cone went to the other loan
and S hcS b 70 psy him 10 thirty taE
Cone did not return the 1886 TO this
sdy Assro a fup sn 'ns
would not want this s2.35.
Further Mr. Cone states In his re-
port, signed by the directors, and pub
! lished in the press recently, that he has
! foreclesed only thirty accounts during
| the last six years. MhiIe the number
knos y fo BY Nave Sas
one OF my assistants examine the
records in the justice courts and find
tnted ' nj sr fGorI nearly All OF which
were replevin suits in the Justice
courts OF Detroit. 1 dare say there Is
not a loan shark in Detroit who has a
! very creditabiy informed at the Police
Court that he has had more victims arr
than any loan shark In the city OF De-
| troit.
Finally. Mr. Cone claims to have
No. 1o5 OF the Public Acts as Of 1911 sii'
which became a law on August 7th
4 1911. One would think that under such
was the desire OF the directors OF this
concern, that Mr.. Coue would have i'm
mediately arranged to comply with this
/ law. ON the contrary. u appears that
he has not complied with the present
! law, so that every loan he has made
since the 7th day OF last August which
calls for more than seven per cent In
terest. and i am crediabIy informed
that all do, Is a violation OF the law.
| Further, i have on my desk one of
Mr.. Cones cards issued by the Provi-
cd DtIIn nd lat f....
Paragraph four states "a charge OF
one dollar Will be made when you
move without our knowledge. provided
We are obliged to look you up" There
~ no provision in the law allowing
this. and such charge would be abso-
imtely illegal Paragraph seven states
changed TO more convenient time
for you by personally calling at the
ONCE nn and and paving twenty five cents for
/ in the law for such charge as this. and
anyone making either of the above
charges Is directly the law.
My stand in this matter is simply
this, that the manager OF semi phil
anthropic society such az Is intended
by the hackers OF the Provident. should
conduct the business In such a manner
that there could be no occasion for
even a rumor or an insinuation.
!. therefore. am Obliged TO ask the
Honorable Committee which YOU repre.
sent TO refuse the approval OF the bond
1 OF the Provident Loan Association un-
less change In management may be
As to the Equitable Loan association
! VIII say that 1 have 70 knowledge
or this comF"ny, ami no CoInp,nTn,s
nave be"n E,ade against them will
therefore, ask you to withnoIl the mr.
prevail cf 'he to'.d until / can ma xo
an investigation.
| Deg TO remain, very truly ours
| tSigned) HUGH SHEPHERD
49,, Prosecuting Attorney
rms matter was taken up for a hea r.
in tasas
held this morning and the directors %
said association submitted the following
! communication
Gentlemen-In regard to approving
! the bond OF the Provident Loan Society
| We are informed that the only reason
that the bond has not been approved Is
mat the Prosecuting Attorney has ad.
| Nlseu you not 10 approve same unless Nc
discharge Mr.. II. a. Cone our man.
| ager
! M. Cone has been In the employ ot
! the company for five years During thai
timc nothing has been brought 10 oul
attention that would Justify his dis
J charge and we are not willing 10 dis.
charge him in order TO obtain q license
| This society was founded for - worth,
purpose and was organized and has beer
conducted along the lines Of similar In
stitutions In other cities In the east
which were carefully investigated befor,
the ProVident Loan Society was estab
In this society are willing and desirou.
to cooperate further In this work ",
larc not willing. az condition OF dul
right To do 50. tn commit what We he
lieve would be an injustice. viz: TO dis
charge employe upon charges thai
have not been proven.
We believe that the question for yoi
dgfi u whether Mr. Coma IL nj