The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-12
SHARKS DRIVEN
INTO HOLES, HE SAYS
ssistant District Attorney
Heilborn Reports on Many
Prosecutions Here.
ADS. IN ONLY ONE PAPER

Deputy Assistant District Attorney
Hellborn. who was appointed by District
Attorney whitman last January to pros
ecute loan sharks, has reported that open
and notorious lending OF money in small
sums at Illegal rates" has nearly ceased
and that public advertising OF the money
lending business has been practically
stopped.
Mr. Hellborn has no, only tried 10 enforce
the criminal law against the loan sharks.
but has helped the defendants In many
cases which found their way into the
civil courts in an attempt TO collect money
loaned at usurious rates.
Charles Il. Ross. now waiting trial. 10
alleged to have charged his clients at the
annual rate OF ~ per cent on loans Of
$50. For such loans he charged per
cent. a month and an examination fee OF
$3.50. These loans were made for a
month at n time and then renewed. when
the examination fee was again charged.
The Star Finance Company, OF which
an employee has been convicted and the
manager of the office is now waiting trial.
had new scheme. which usually cost the
borrower at the rate of 40 per cent. a
year In these loans lawyer appeared
and charged at the rate OF 10 per cent a
month for services In looking into the
financial responsibility OF the applicant.
This company lent largely to city en-
ployees and took a confession OF judy
ment from each borrower On default
Judgment was taken In an upstate
county, where SIS costs were added. and
then execution was Issued against the
salary OF the borrower.
Mr.. Heilborn. after consultation with
Comptroller Prendergast. convinced the
Comptroller that he should not pay any
money on such confessions OF Judgment
At frst the Comptroller demurred. but
he Is now Withholding money from levy
ing officers. As a result OF this arrange
ment the lender OF the money must
bring suit against the city. A defence
that the money was loaned at usur!ous
rates can be made. The Assistant District
Attorney reports that the Star Finance
Company has ceased TO do business.
Another form. practised by Brenton 4
Co, New York corporation. caused all
borrowers to buy stock. This company is
alleged TO have operated with Zenith Cline,
who did business under the name OF
George Gardner. A borrower was advised
TO buy stock from Gardner and then the
loan was made Stripped OF all com
plcations the victim agreed TO pay $40
for every s24 borrowed With the
methods employed the interest charge
on the transaction figures in excess OF
ESQ per cent year.
Brenton & Co. complied in every par
tcular with she State law. and the only
method OF attack was to prosecute for
usury. Criminal proceedings were be-
gun and the officers, Arthur Conable and
Tobias Stapleton. pleaded guilty. agreed
TO retire from business and TO collect only
the actual sum given to a borrower.
II believe that open and notorious
money lending has ceased In this city"
said Mr.. Heilborn. 'I am confident the
money lenders do not crowd their VIC
tins, and l am OF the opinion that lend
ing Is covertly confined TO selected Dor
rowers. who can be relied upon not 10
'squeaL' There Is, however. a large
traffic IN Jewelry and other commodities
sold TO city employees on the instalment
plan. These goods are bought to be
pawned. This believe to be an in
direct way OF lending money. and am
searching for some law that will govern
IT, ! have checked IL TO some extent.
MANY money lenders send the victim
90 a neighboring State. where a loan Is
not so dangerous. Then. too have
found several Of these men doing business
by mail. have prepared Federal
statute making II Illegal to evnde the
usury laws Of any State in the Union.
This would give the necessary weapon"
Mr.. Heilborn said that the newspapers
OF New York have. with one exception,
refused to carry the advertisements OF
loan sharks