Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1912-12-05
LOAN SHARKS
MUST VACATE
Prosecutor Gives Orders to
that Effect Wants No Usury
In the County.
BORROW $40 RETURN $40
Chief Burke Notifies Local
Concern to Close Up--0f-
flee Open This Morning.

Initial steps to oust alleged loan
sharks from Middlesex county were
taken yesterday afternoon, when
Chief of Police Burke ordered the
American Loan & Brokerage Com
pany, of 95 Smith street, to stop
operations in this city. This action
was in accordance with orders from
the prosecutors office and will be
followed by the closing of the other
alleged loan shark Offices in the coun-
ty, numbering probably two.
Chief Burke says an instance has
been brought to his attention in
which one person had to pay about
$40 for the use of about $40. This
he brands as plain usury and de-
clares, despite any action of the
county authorities, he will not toler-
ate it in this city while he is chief Of
police. He gave orders to close up
the American loan Offices in the
Bloodgood building and was sur
prised when informed by a NEWS
representative this morning that the
offices were still open for business
He said he would give his immediate
attention to the matter.
At the Offices of the American Loan
& Brokerage Company it was stated
to NEWS representative that there
had been received no order to stoI
operations. A tall and stately mar
occupied position behind window
such as are seen in banks. He acted
very courteously and appeared tt
know nothing about a visit of Chic
Of Police Burke. Finally he though
moment and said the chief Nigh
| have met the manager of the office
He said that person would be in the
office about 10 o'clock this morning
Efforts to interview the manager
later proved futile. The same smooth
parsonage was later seen behind thu
bank-like window. He said the man
ager had not arrived yet. On on'
occasion he did admit the chief hat
beento see him yesterday afternoon
th.ea.~raeovered himself and said ''o1
the manager, l should say"
The man said the American con
cern was incorporated and licensed tt
do a loan business under the laws O
the state, SO far as he knew. He ap
peared surprised and smiled whe1
Informed the prosecutor was after al
loan Offices in the county. He sort 0
expressed sympathy for the Ney
Brunswick Loan Company, which h,
believed had been doing business TO
about eleven years. He said a patrof
of the New Brunswick concern hat
come to the American loan office
and he had thereby learned that thu
county seat concern charged abou
the same rates as his concern did
He said there was sliding scale o
Irates, whereby If s25 was borrowed
the borrower would pay little more
| than 81 a month for nine months l
the amount was used for that length
| of time. Payment before the eXpira
ton of that time would cause a de
,duction OF $1.15 month. He sale
the lawful rate of interest Of six pc
cent. was charged, but in addition
thereto there were fees for making
out papers, fees for covering the run
ming expenses of the office, for ap
praisements, etc. In conclusion h
said the total amount of cost to Dor
row would depend largely upon tn,
amount borrowed and the length o
time it was held.
| Assistant Prosecutor Stricken wa
loud In his denunciation of LOAF
fsharks when seen this morning. H,
said efforts were made to oust suci
concerns from the county. H,
| thought there were three of them
The official said the concerns profitet
by charging high fees for inspections
lappraisements, etc.
At the American Loan & Broker
age Offices it was stated the compan.
had been located here about twt
years. In the city directory the man
ayers name is given as Edward
Baldwin.
One of those in charge of the loca
office said they proposed to continue
business until the prosecutor hat
taken legal steps to close them, whe1
their attorney would meet an,
charges the prosecutor might make
It was stated they were doing a le
climate business and had no fear o
the Chesequake bridge and placing
orders Of the chief of police were t.
close before Monday or thep resocu
tor would act. The concern declare
they will continue to do business ant
invited any action the prosecutor
might make.