New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-07
DIAMONDS NOW USED TO
FOIL LOAN SHARK LAW
District Attorneys Inquiry
BareS Plan Of Money Lenders
to Fleece the UnWary.
USURY PRACTISED BY MAIL
Letter of Debt Collecting Attor-
ney in Latest Scheme Turned
Over to Federal Author
tiles for Action.

4 new inquiry into the salary loan bust
ness. recently begun by the District At
torney as the result of complaints which
have come into his Office, shows that
many loan sharks" driven from their
money lending business by the District
Attorneys campaign against them year
ago. are now selling diamonds on the in
stalment plan.
Walter r. Deuel.. Assistant District At
torney. recently had in his Office a fire
man who bought S400 worth of diamonds
from d former money lender, agreeing 10
ray at the rate Of so a month. He missed
one payment and the dealer began 10
press him for the entire amount. AS he
had a chattel mortgage on the freman's
furniture and garnisheed the firemans
salary. the fireman decided to pawn the
Jewels to catch up on his payments. lie
found. il was said. that one diamond for
which he was TO pay Sl9O was worth So
Others came in with similar complaints.
and Mi deuel. called the attention OF the
ledera. authorities 10 the new projects or
tine money lenders.
other loan sharks" it was learned.
went 10 Chicago and other cities and car
rled on their business through the mails.
some OF these firms were represented by
= -
character Of certain letters written by
mis- attorney TO borrowers Mr.. deuel.
probably will ASK the Bar Association 10
take action.
The following letter. written by Chi
cago money lender 10 New York bor-
rover and turned over 10 the federal au-
thorlties yesterday. is typical:
we credit your account with s. 80. You
owe US 81 more that you are going 10
nav You may think you are not going
but u-a
had some experience with deadbeats in
the past and We think We know what we
are talking about
If We aid not think so We would most
assuredly not be loaning pups a your
caLsre Loo miles away. And we have
been doing that Tor fifteen years past
Any man with teaspoonful OF brains
could see that this loan was made IN Illi-
nos instead OF New York and 10 guess
why IL was done.
You can. no doubt. force US TO pay
our New York attorneys a percentage to
enforce or legal rights, but you will have
10 pay an attorney 10 night II for you and
the court costs as well. We fail TO see
where YOU are going to benefit any.
Now. II you think that you can skin
US there is no law against your trying.
We rejoice that man OF your prlnci-
pals Is not handling our Casn and that
you are not conductor for US.
The borrower who received the letter
IS fireman in an Office building. tie
81 30 a month for three months He paid
back &}3 30. end then stopped payments
having come 10 the conclusion that Il
was bad bargain. As result. he got
the letter.
Daniel II. Tolman. the money lender
who was arrested Saturday. after he had
been hued and paroled IN Trenton, y. j,
was DISCHARGED by Magistrate Barlow in
the TOmbs court YESTERDAY on the COM
plant brought against him here. There
vas nothing 10 show that Tolman him
self was concerned IN the loan mentioned
In the complaint. Assistant District At
tOrnev deuel. had another complaint
drawn up and TOlman was held for ex-
anlinatio in 500 bail.
After furnishing the bail. Tolman said
he would give up his business and retire.
His decision was made he said, irrespec-
tive OF the result OF the complaint against
him
Norris Zussman. also charged with ex-
acting more than the legal rate Of inter
est. was held in 5000 bail for Special
Sessions yesterday b. Magistrate Bar