The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-16
CHAIN OF BANKS TO
FIGHT LOAN SHARKS
$6, 900, 900 Company Formed to
Lend Money to the De-
serving Poor.
WILL USE "MORRIS PLAN"
Well Known Men Of Many Cities
on Dircc tOrate-TO Cover
Entire Country.
WILL USE "MORRIS PLAN"

A $S,000.000 corporation designed to end
forever the loan shark evil will be incor.
pornted Tomorrow at Richmond. Va.
The Industrial Finance Corporation. as
II will be known, will establish and back
banks In all parts of the United States.
These banks arc TO lend small sums to all
applicants OF good character. The bor-
rover may get from SO upward without
giving security on the endorsement Of q
fellow workman.
The banks are designed 90 help wage
earners and others Of humble means.
Their dividends will be limited to 8 per
cent. that the lending rate may be kept
low and a surplus quickly gained.
DR.. ElSin II. L. Gould will be the head
OF the new enterprise. II will be In no
sense q charity. although II will be proper
to call II a paying philanthropy.
Tho organization committee Of the In
dustrial Finance Corporation has received
the advice and assistance OF many OF tho
best known men In New York. DIR. Gould
is chairman. and other members are
Fergus Reid and Arthur j. Morris OF
Norfolk Va, W. r.. Craig. Samuel l..
Fuller and Charles H. Sahin Of New York
The corporations purpose, as expressed
In Its charter. IS:
"First-pr,ovidc for the worthy wage
ee rner and other small borrowers, where
the need OF the loan is apparent. oppor.
tunity for borrowing small sums OF
money without the necessity Of submitting
TO the extcrtion OF money lenders. but at
rates which are reasonable to the bor-
rover and yet fairly remuneratve to
capital; to enable the small borrower to
secure such moneys largely uron the
faith OF Endorsements and guarantees and
without the requirement OF pledge or
chatteis as collateral security for repay
ment. and
"Second--To provide opportunity FOR the
systemRtic investment OF small savings
bearing n higher rate Of interest than is
now feasible and affording Il basis for the
securing OF credit and thus to encourage
thrift"
Has Acquired "Morris Plaza"
The better to carry out its plans the
Industrial Finance Corporation has ac-
aurei all the assets OF the Fidelity
Corporation Of America, which has here
tofore had the sole right to the Morris
plan" Of Industrial savings and loans. every
expression and every form or "hich IS
covered by copyrights
The Morris plan was originated by
Arthur ]. Morris and his law firm. Morris.
,'arnett & Gotten, OF Norfolk. Va. The
frs, institution under this plan was
started then about four years ago.
Organizations such as the Provident
Loan Society OF New York and various
cnattel mortgage societies have done con-
siderable good TO individuals. but their
operations. requiring pledge or mort
gage Of chattels, does not touch the larger
Heid where usury continues To thrive"
explain the founders OF the new corpora
ton.
"The Morris plan means the extension
OF honorable borrowing facilities and in
etructlve savings facilities TO IN" masses :
Il means that hereafter the wage Garner
4 49, - r.
acter In time OF need will be able to OBJ
tain money on terms convenient and fair :,
/ Il means that hereafter the honest worker
| will ind n premium placed upon his habits
| Of thrift that will become for him a la sis
| Of credit lie has never before enjoyed.
"The plan Is in successful operation In
Norfolk. Va. (; Atlanta, Baltimore. wash
inston. u. c.; Memphis. kichmond.
| Charleston. S. G.. Columbia, :. G. Spring
| field. Mass. st Louis, Denver LynchburE.
Va. and Philadelphia. similar com
pany with a capital of $1,000. 900 IL ready
/ to begin operations in New York city
| under supervision of the New York state
Banking Department and similar COM
panies are already under way in Nash
willie. Knoxville. Jackson and Chattanooga
| in Tennessee. Durham. y. G., Chicago.
| Ptttsburg, New Orleans and other cities.
The directors of the Industrial Finance
u
within "A week in New York To elect off,
, GERS DR.. Gould will become chairman OF
| the board and Arthur J. Morris. 1t Is ex-
pected. will be made president Of the cor
poration. One OF the principal offices OF
the corporation will be IN New York
| There will be offices IN Chicago, "A South
ern ONCE In either Norfolk or Atlanta and
later an Office Oh the Pacific coast
Experience Of the Plaa.
How well the Morris plan works may be
Judged from the experience OF the bank ~
Atlanta, where the actual result Ia saw
inGs to the borrowers WAS 5000 In a
single year. The fundamental principles
Of the Morris plan have stood the test OF
! experience not only In this country but
abroad. II Is described as an adaptation
of the principles OF the Schul2e- DE iltzscf
industrial banks that revolutionized money
and social conditions ia Germany and
Austria over fifty years ago and OF til.
Luxzatti Modification of these plans that
has been In successful operation In Italy
for half a century.
i Julius Rosenwald. president OF Sears
Roebuck Il Co., Of Chicago, has approve,
4 the plan from the start and actively I,
help Il has become IA director OF the new
corporation.
\ These are the directors;
New York City--Dr. NICHOLAS Murra.
Butler, DR.. T.. Il. L. Gould, w. II. Craig