The Birmingham age-herald., 1914-02-15
EAGAN TO MAKE WAR
ON THE LOAN SHARKS
One Arrest Yesterday-In-
vestigating Another
PAID $500 FOR $4
Negro Claims to Have Paid That
Amount to II. e. Osborne-Will
Be Tried Tuesday-City
Law Covering Case
PAID $500 FOR 81

with the aid of the victims. Chief
of Police Martin Eagan is going TO
attempt to put the loan sharks of Bir-
mingham out of business. One arrest
was made yesterday and another case
was being worked on last night in
which an arrest is expected at any
hour.
The man arrested yesterday was II.
f. Osborne, who was arrested on COM
plant of I'D Henry n negro. Henry
claims to the police that several months
age he secured a loan of 81 from Os-
borne and $ nee that time has paid him
$3.50 IN interest paying So month.
osborne's bond was set at 800.
The other case is one in which a
negro woman says she borrowed IS
last June and claims that since that
time she has paid the man si.a5
month, or s14 in interest in all. Both
Of the complainants alleges that the
loan man has never given them re-
ceipl for their interest and has always
refused to allow them to pay anything
ON the principal
Both men Will be tried in recorders
court Tuesday morning
I'VE are going to break this thing
ur. said Chief Eagan yesterday. eif
we possibly can do it. We can't do II,
though, unless the victims OF these mon
come to us and give us the informa =
tion We can't arrest a man on suspl-
oion and convict him. but If we can
get these negroes to come here and
tel! us the particulars of their cases
Wen soon have those fellows put out
of business because we'll make their
fines so heavy that the business will
prove Improbable
1T does no good to arrest them just
occasionally as they viii pay the fine
and soon make enough out of their
next victim to belance up
The maximum fine under the pres
ent laws is said to be 500 and six
months in jail
There is no city statute covering the
practice of usury. but the local ordi-
nance convicts the loan shark for not
giving the victim receipt for his in
tcrest and keeping Il full account OF
the transaction. The usury part of the
offense is covered in the state CODE 1t
is said. The city ordinance is as fol-
lows;
ordnance NO. Sl-i--An TO
regulate the method of. giving evil
dcnces of credits by money lenders for
payments made by borrowers in the
city of Birmingham and to provide
punishments for violation of such regi
ulations.
Section /. BE it ordained by the
board of commissioners OF the city of
birmingham that whenever any per-
son, firm or corporation engaged In the
business of a money lender in the city
Of Birmingham or any other person
who lends money in the said city above
the legal rates of interest shall loan
money to any person and such per-
sor shall make a payment thereon.
either upon the principal or on the
interest upon such principal, IL shall
be the duty OF the party lending the
money. at the time OF receiving such
payment to enter upon the note or 9TH
er paper evidencing the debt the date
and true amount of such payment: and
shall also at the same time give to
the borrow a receipt, showing amount
Of payment. date and debt on which
said payment is made and how the
same Is to be applied
Sec. 2. ANY person, firm or corpor-
alton violating any provision or this
ordinance, shall. upon conviction, De
punished as provided in section 1918
OF the Npde Of Alabama.