Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-02-16
Company With S6,000,000
Capital Is Incorporated to
Make Nationwide Fight on
Loan Sharks
LOCAL INSTITUTIONS
ARE TO BE ASSISTED
Purpose Is to Aid Wage Earn
ers and Other Worthy Per-
sons 10 Secure Small Sums
at Low Interest Rates,

lev MoH'uNa iouRNAl SPECIAL luAsrp wlsEi
New York. Feb. ll.-Wlth tho pur-
pose of correcting the loan shark evil
throughout the country by making it
possible for deserving persons Of small
means To borrow money at reasonable
rates ana without collateral, there will
Doe Incorporated at Richmond, Va. to-
day "a company known as the Indus
trial Finance corporation. To accom-
plish its end the new company. which
Is incorporated under authority Of the
Virginia state corporation commission
with capital of sG.0O0,0OO, will fac
Hate and assist financially the organ
lzation throughout the country of local
institutions which will afford indus
trious and needy wage carners and all
other small borrowers the opportunity
for borrowing small sums Of money on
Just ana fair terms, and at the same
time promote savings among It's pa
irons
AS formally expressed In the char
ter the object of the company Is to
encourage and assist IN the urRanizn-
tlon Of lccal institutions in every city
of sufficient size throughout the
country that wnl
"Firat Provide for the worthy
wage Garner ana other small borrow
er where the need OF the loan IS APP
parent. opportunity for borrowing
small sums of money without the ne
cessiiy ot submitting TO the exiortion
of money lendora, but AZ rates which
are reasonable TO the borrower and yet
fairly remunoratlve 90 capital. to en-
able the small borrower TO secure such
moneys largely upon the faith Of en-
dcrsomcnts and guarantees and With
out requirement of pledge of chat
tells os collateral security for repay
ment, 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 basis FOR the securing of credit
and thus 20 encourage thrift"
According TO formal announcement
made today. the corporation has ae-
qulred AN 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 10y copy
rights The plan was originated by
Arthur D. Morris and his law firm.
Messrs Morris Garnett a Cotton, Of
Norfolk, Va, and the first institu-
a.. al
launched about four years ago at
Norfolk.
The man who needs money but lacks
such collateral ass Is required by ex-
istng financial institutions has hith-
erto been forced % seek loans from
orto the pawnlrokor or the chqtlel
mortgage man. These lenders are of
two classes the benefolent ana the
rupacious. the latter class being gem
orally known az lonn sharks.
Organizations such as the provi
dent Loan Society Of New York, and
the chattel mortgage societies have
done considerable good 10 individuals
pf this unfortunate sort. todays an-
sets forth. but their opor-
atoms requiring a pledge or mort
gage of chattcls do not touch the
ltll larger field where the evil Of
lmry continues to thrive.
The Morris plan" means the eX-
enslon Of honorable borrowing ia
'ilties and instructive SAVINGS facil-
ties to the masses; Il means that
hereafter the wage Garner. OF other
mail borrower of sound character in
imc of need will be able to obtain
money on terms convenient and fair
I means that hereafter the honest in
Iiydual will find premium placed
lpon his habits of thrift that viii be-
ONE for him "a basis for credit he
ias never before enjoyed
The project is not a charity and the
Iatrons of the local institutions VII
n no sense be objects OF .h'rity,
The purpose is to conduit pll the op-
ratlons ON "a strictly business lasis
o as To- afford such fair RETURN on
he capital employed as would be eN-
.ected from % financial institution op-
rated under conservative manage
ncnt Dividends Of each Of the l0eal
however. will be limited
o per cent, ON the book value of
he stock. in order that they may
% satisfactory ana growing
urplus
The plan is IN successful operation
a Norfolk Vai Atlanta Ga, Balti-
lorc. MAJ, Washington, d, c. Mem
his. Tenn Richmond, va. Charles
on. $ C Columbia, $. c.. Spring
.sfd Mnue gt ouIa Mo Denver.
olo Lynchburg va, ana Philadel-
hia, Pa a similar company, with
apital of 100000 "a ready TO begin
perotions ~ New York city under
supervision of the New York state
ankng department and similar com
auioa aA auoads uidvl a..s Ia Sash-
HE, Knoxville, Jackson and Chatta-