The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1914-02-20
A FINANCE
|NDuSTR|A|. !.
CORPORATION
INCORPORATED AZ RICHMOND,
va, II. C0RRECTTHEL0 LOAN n
SHARK EVIL.
TO ENABLE PERSONS OF SMALL
MEANS TO Y BORROW MONEY a
AT REASONABLE RATES.

-
purpose of correcting the loan shark
evil throughout the country by max
ing II possible for deserving persons
of small means to borrow money at
reasonable rates and without collat-
eral, there was incorporated at Rich
mond, Va, today a company known
as the Industrial Finance Corpora
tlon. To accomplish its end the new
company, which is incorporated I'M
der authority of the Virginia State
Corporation Commission with capt.
tai of s6,Ooo,OoO, will facilitate and
assist financially the organization
throughout the country Of local IN
situations, which will afford indus
trious and needy wage-earners, and
all other small borrowers the oppor-
tunity tor borrowing, small sums OF
money on Just and fair terms, and at
the 9. same u time promote savings among
Its patrons. ..,,.,,S ~ ,n
10
AS formally expressed in the char
ter, the object of the company is to
encourage and assist in the organiza-
tlon of local institutions in every city
Of sufficient size throughout the
country tliat1wil Il
First: Provide for the worthy
wage-carncr. and other small borrow
ers where the need of the loan is APP
parent, opportunity for borrowing
small sums of money without the ne
ceysity Of Submitting to the extortionj
| Of money lenders, but at rates which
are reasonable to- the borrower and
,yet fairly remuncrative to capital
to enable the small borrower to Sc
cure such moneys largely upon the
faith Of endorsements and guarantees
and without requirement of a pledge
Of chattcls as collateral security for
repayment, and
Second: To provide opportunity
for the systematic investment of small
savings, bearing higher rate of in
tEcst than is now feasible. and af-
fording basis for the securing of
credit and thus to encourage thrift.
According to the formal announce
mcnt made today. the corporation has
acquired all the assets of the Fidel-
lily Corporation Of America. which
has heretofore had the. sole right To
The morris Plan of Industrial saw.
ings and loans, every expression and
every form OF which is covered by
copyrights. The plan was orisinat-
! cd by Arthur j. Morris and his law
firm. Messrs. Morris, Garrett & Cot
er. of Norfolk, Va, and the first
institution to operate under the plan
was launched about four years ago
1T Norfolk.
The man who needs money but
lacks such collateral as is required
by existing financial institutions. has
hitherto ben forced to seek loans
from either the pawn-broker or the
cAattel mortgage man. These lend
c"s are two classes, the beneficient
'and the rapaciousl the latter class
being generally known DIS loan
sharks. ~ !4l} i nh Ass :
i :. O. . . . ~ 10
ls} Organizations such as the tProvi:
dent Loan Society of New York and
TIE chattcl mortgage societies have
done considerable good to individuals
Ct this unfortunate sort, today's an
nonncemcnt sets forth. but their ope-
rations requiring a pledge or mort
gage Of chattels does not touch the
still larger field where the evil OF
usury continues to thrive.
The Morris Plan" means the ex-
tension Of honorable borrowing facii-
tiles and instructive savings facilities
to the masses; 1t means that hereaft-
or the wage-carner. or. other small
borrower Of sound character, in time
of need will be able to obtain money
en- terms convenient and fair, IL \
means that hereafter tile honest in
.dividual will find premium placed
upon his habits Of thrift that will be-
come for him a basis for credit he
las never before enjoyed. 80
The project Is not charity and
the patrons OF the local institutions
will In no sense be objects OF charity
The purpose is to conduct all the ope-
ratfons on strictly business basis so
as to afford such a fair return on the
capital employed as would be expect
ed from a financial institution ope.
rated under conservative manage
ment. Dividends of each Of the local
institutions, however. will be limited |
TO six per. cent. on the book value Of |
the capital stock, in order that they
may maintain a satisfactory, and !
growing surplus.
The plan is,in successful. operation i
in Norfolk, Va. Atlanta. Ca, Balti-
more. Md. SWashfngtonl3Ds q Mem.