Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-02-19
Bla Ceneein Plans TO VIDE
oal Petty Loao Shark
Evils

New York. Feb. 1S.-With the purpose
of correcting the loan shark throughout
the country by making it possible for
deserving persons Of small means to bor-
row money at reasonable rates a4i, With.
ont eoliateraA there was Incorporated ut
Richmond, Va.sa company known s the
Industriai Finance Corportion. 70 ac.
complish its end the new company which
is Incorporated under authority Of the
Virginia State Corporation Commission
with a capital Of $4,000, 900 will facilitate
and assist financially the organization
throughout the country of 'oca! institu-
lions which will afford Industrious and
needy .wageearners and all other small
borrowers the opportunity for borrowing
small sums Of money on Just and fair
terms, and at the same time promote saw
ings among its patrons. 49,
As formally expressed in the charter,
the object of fthe5company is to ,encour
age and assist in the organization OF 10
cal institutions in every city OF suffi
cicnt size. throughout the country that
will @
First. Provide for the worthy wage
Garner and other small borrowers where
the need Q the loan is apparent, oppor
tunity for borrowing small sums of mony
without the necessity of submitting to
the extortion. of money lenders, but at
rates which are reasonable to the borrow
,er to secure such moneys largely upon
the faith OF endorsement and guarantees
n without requirement Of a pledge of
chattels, az collateral security. for repay.
ments and 1 & E
Second To provide o%portunity for the
systematic investment Of small savings.
bearing a higher rate Of interest than Is
now feasible and affording a basis for
the securing of credit and thus to en-
courage thrift" SaS5u .
I According to the formal announcement,
made today, the corporation has acquired
half the assets of the Fidelity Corporation
of America. which has heretofore had the
sole right to the morris Plan" of Indus
trial savings and loans every expression
and every form Of which is covered by
copyrights. Tho plan was originated by
A. J. Morris. and his Staw firm, Messrs.
Norris, Garnett 4 Cotton OF Norfolk, Va.
and the first institution to operate under
the plan was launched about four years
6 at Norfalk.
The man who needs money but lacks
such collaterar as is required by existing
financial institutions has hitherto been
forced to seek loans from either the, pawn
broker VI, tho chattel mortgage man.
These lenders are of two classes, the
inefficient ard tho repa cious, the latter
class being .generailfsknown sas loan
sharks. a8sE s.-s .a' 81.
Organizations such as the PrOvidcnt
Loan Society of New York and the chat
tel mortgage Societies have donc consid
cradle good to individuals of this unfor
tunate sort, today's announcement sets
forth. but their operations requiring 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 extension
Of honorable borrowing facilities and In
structive savings facilities to the masses
1t means that hereafter the wage Garner
or other small borrower Of sound char
acter. in time OF need will be able to
obtain money on terms convenient ana
air; it means that hereafter the honest
individual will find a premium placed
upon. his habits Of thrift that will become
for him a basis for credit he has never
beore enjoyed. 49,, .hjo,.
The project is not a charity md the
patrons of the local institutions will in
sense be objects Of charity. The p,r
pose is to- conduct all the operations on a
business basis so az to afford
such a fair return on The capital employ
ed as would be expected from Il financial
operated under q conservative
management. dividends of each of the
local institutions, however, will be limit
ed to six per cent on the bank value Of
the capital stock, in order that they may
maintain a; satisfactory and growing sur
plus. s , .as
The plan is in successful operation in
Norfolk. Va, Atlanta Ca, Baltimore,
Md, Washington, d. c., Memphis, Tenn.
Richmond, Va, Charleston, S. c. Column
bia, 8. c., Springfield, Mass, st. Louis
Mo-, Denver, Colo, L%ynchburg. Va. and
Pa. A similar company.
with a capital of 81. 900 900 is ready tn
begin operations in New York City I'M
der supervision of the New York State
Banking Department, and similar com
panies are already under way in Nash
vile, Knoxville. Jackson and Chattan.
nooga, Tenn, Durham, N. e. and in
important cities throughout the
country. @5-4.
In every instance where local compan.
les have been organized to operate tho
ment, men Of distinction in their several
walks of life in the RESPECTIVE. commun.
tiles have invariably become the direc.
and deeply interested in the work
of the company. f..-
For instance. in Philadelphia. the direc
tors are Louis J. Kolb,' Howard IT.. Tony
Thomas Newhall, w. !. Forbes /. T.
G.. Ashton. Franklin S. Edmonds,. SAM.
uel NJ. Curwen, John Gibbel. Thomts
F.. McAltster, Robert Mckeuty. Chas. j. F!
Rhodes. Joseph NJ. Steele and Charlton
Yarnall. : 'r
In Baltimore the directors are Henry
F. Baker. Bruce Gotten, Hooper Coyne,
A. DelHeld, Solomon Franz, C.. l. 4.
Gould, John Kelly, jr., William NJ. Mathai
:. Wilbur Miller, Stuart Oliver, Aubrey
Redmond c. Stewart, Jenkins
). Whedbee and John C.. Wroc.
In st. Louis the directors are Paul
Brown, James G.. Butler, . r. Carte.
Henry L. Current, r. B .T1isemar.. T. S
;%araett. jr., w. W. Hoxton. Oscar
" Il Kinsella [ Gaoren @.