Arizona republican., 1914-02-16
Concern With $6,000, 1000 Capital Will Establish Local Concerns Through out Country as the First Broad Step
SMALL LOANS
 NO COLLATERAL
Will Provide Relief for the Small Wage Farmer Where Need of Loan is Appar- ent, Giving Opportunity to Borrow
ASSOCIATED PRESS DIsPArcHl

ASSOCIATED PRESS DIsPATCH1
 NEW YORK, Feb 15.-With the pur- pose of correcting the loan shark evil throughout the country by making il possible for deserving persons of smai. means to borrow money at reasonable rates and without collateral, there has been incorporated at Richmond, Va, a ccmpany known as the Industrial Fi nance Corporation. To accomplish it's end the new company, which is incor- pcrated under au -llority of the Nir- ginia state corporation commission with capital of $6O0OOOO will facili- tate and assist financially the organi zation throughout the country of local
 institutions Whish will afford indus trious and needy wage earners and all other small borrowers, the opportunity for borrowing small sums of money on just and fair terms, and at the same time promote savings among its pat rons.
 As formally expressed in the charter, the object of the company is to encour- age and assist in the organization of local institutions in every city of sui ficient size throughout the country that will
 First: Provide for the worthy wage earner and other small borrower where the need of the loan is apparent, op- portunity for borrowing small sums of money without the necessity of sub hitting to the extortion of money len ders, but at rates which are reasonable to the borrower and vet fairly remu- nerative to capital: to enable the small borrower to secure such moneys large ly upon the faith of endorsements and guarantees and without requirement. of a pledge of chattels as collateral secu- rity for repayment, and
 Second: To provide opportunity for the systematic investment of small savings. bearing a higher rate of in terest than is now feasible and afford ing a basis for the securing of credit and thus to encourage thrift
 According to the formal announce ment made today, the corporation has acquired all the assets of the Fidelity Corporation of America, which has heretofore had the sole right to the Morris Plan" of industrial savings and loans. every expression and every form of which is covered by copyrights The plan was originated by Arthur J. Nor ris and his law firm, Messrs. Morris, Garnett X Gotten, of Norfolk, Va, and the first institution to operate under the plan was launched about four years ago at Norfolk
 The man who needs money but lacks such collateral as is required by exist ing financial institutions has hitherto been forced to seek loans from either the pawn broker or the chattel mort gage man. These lenders are of two classes, the beneficent and the rapa- cious, the latter class being generally known as loan sharks
 Organizations such as the Prevalent Loan Society of New York and the
 chattel mortgage societies have done | considerable good to individuals of this unfortunate sort, todays announcement sets forth, but their operations requir- | ing a pledge or mortgage of chattels does not touch the still larger field where the evil of usury continues to | thrive.
 | The Morris Plan" means the exten- sion of honorable borrowing facilities and instructive savings facilities to the ! masses: it means that hereafter the | wage earner, or other small borrower | of sound character, in time of need will ! be able to obtain money on terms con- venient and fair: it means that here after the honest individual will find
 premium placed upon his habits of thrift that will become for him a basis l for credit he has never before enjoyed | 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 operations
 on a strictly business basis so as to
 afford such a fair return on the capita
 employed as would be expected from 2 | financial institution operated under q
 conservative management. Dividends (Continued on Page Five)