The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1914-02-17
LOAN SHARKS TO
Be JOLTfD HARD
coNS|S1fNTHOW
S.. Million Dollar Concern VIII
lon Money on Just and
Fair Terms.
WILL BE CONDUCTED ON
STRICT BUSINESS BASIS
Plan is in Successful Operation IN
Numerous Cities Through
ont the Country.

evil throughout the country by mak-
iag it possible for deserving persons
OF small means to borrow money at
reasonable rates and without col,as-
eral. there was incorporated at
Richmond, Va, today a COMPANY
known as the Industrial Finance
Corporation. To accomplish its End
the new company, which is incorpo.
rated under authority Of the Viz
ginia State Corporation Commission
with : capital of S6.000.000, will
facilitate and assist financially the
organization throughout the ccur-
try OF local Institutions which viii
afford industrious and needy wage
carncrs ana all other small borrow
ers the opportunity for borrowing
small sums Of money on just and
fair terms, and at the same tuma
promote savings among its patrons.
As formally expressed in the char
ter, the object OF the company Is to
en- ourage and assist in the orgaNi-
cation of local institutions IN every
city OF sufficient size throughout
the country that Will
First: Provide for the worthy
wage Garner and other small Dor
rowers where the need OF the loan
is apparent, opportunity for borrow
ing small sums of money without
til necessity of submitting to The
ex.ortion OF money lenders. bu, a.
rates whiCh- are reasonable TO the
borrower and yet fairly rcmuncra-
tive to capital ITO enable The small
borrower to secure such moneys
LARGELY upon the faith OF endorse
ments and guarantees and without
requirement Of a pledge OF ch@ttols
lG collateral security for repayment,
81
Second: To provide opportupit?
iot the systematic investment of
small savings, bearings a higher
rate OF interest than is now feasible
ana aUording a basis for the secur-
ing OF credit ana thus TO encourage
thefft."
According to the formal All
louncomcnt made today. the corpo-
alton has acquired all the assets of
he Fidelity Corporation of Amcr'"a
which has heretofore had the sole
light to The Morris Plan" OF in
,Istgial savings and loans, every
Xpres:icn and every form of which
s covered by copyrights. The plan
vas originated by Arthur j. Nor
ris and his law firm, Messrs. Morris,
Iarnett & Cotton, of Norfolk, Va.
and tho first institution to operate
under the plan was launched about
four years ago at Norfolk.
The man who needs money blt
lacks such collateral as is requil ed
by existing financial institutions
has hitherto been forced to seek
loans from either the pawnbroker
or the chattcl mortgage man. These
lendcr3 are of two classes. the
bencticicnt and the rapacious, the
latter class being generally known
as loan sharks.
Organizations such as the Provi-
dent Lean society of New York and
the chattel mortgage societies, have
done considerable good to individ
uals Of this unfortunate sort, to-
days announcement sets forth, but
their operations requiring pledge
.or mortgage of chattcls does not
touch the still larger field where the
evil of usury continues to thrive.
The Morris Plan" means the ev-
tension of honorable borrowing IA
eilities and instructive savings ia
cilities to the masses; it means that
hereafter the wage Garner, or other
small borrower of sound character,
in time Of need will be able to OBJ
tain money on terms convenient and
fair; it means that hereafter the
honest individual will find prem
ium placed upon his habits of thrift
that will become for him basis 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 char
ity. The purpose is to conduct all
the operations on a strictly bust
ness basis so as to afford such fair
return on the capital employed as
would re expected from n financial
.nstitltiou operated under a coz
scrYatigc management. Dividends
OF each of the local institutions.
however, will De limited to six per
cent. on the book value of the capi-
tai stock, in order that they may