The Barre daily times. (Barre, Vt.) 1897-1959, 1914-02-16
PROPOSE TO CORRECT
LOAN SHARK EVIL
Industrial Finance Corporation Organ
lied to Be in Charge of Local Insti-
tutions for Loaning Money.


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 small
means to borrow money at reasonable
rates and without collateral, there was
incorporated at Richmond, Va, Satur-
day company known as the Industrial
Finance cornoration. TO accomplish its
end the new company, which is incor-
porated under authority of the Virginia
state corporation commission with a
capital of $6,000.000, will facilitate and
assist financially the organization
throughout the country OF local insti-
buttons which will afford industrious
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 patrons.
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 suffi-
Gent size throughout the country that
will.
First; Provide for the worthy wage
Garner and other small borrower where
the need OF the loan is apparent, oppor-
tunity for borrowing small sums of
money without the necessity of sub
hitting to the extortion of money lend
ers, but at rates which are reasonable
to the borrower and yet fairly remun-
eratiye TO capital; to enable the small
borrower to secure such moneys largely
upon the faith of endorsements and
guarantees and without requirement of
pledge of chattels as collateral secu-
rity for repayment, and
Second; To provide opportunity for
the systematic investment of small saw
ings, bearing "a higher rate of interest
than is now feasible and affording bas-
is for the securing of credit and thus to
encourage thrift"
According to the formal announcement
made to-day, the corporation has ac
quired all the assets of the Fidelity cor
poration of America which has hereto
fore had the soie 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 & Cotton. 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 existing
financial institutions has hitherto been
forced to seek loans from either the
pawn broker or the chattel mortgage
man. These lenders are of two classes,
the beneficicnt and the rapacious, the
latter class being generally known as
loan sharks.
Organizations such as the Proyident
Loan Society Of New York and the chat
tel mortgage societies have done con
siderable good to individuals of this UNI
fortunate sort, to-day's announcement
sets forth. but their operations requir-
ing 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 extern
sion of honorable borrowing facilities
and instructive savings facilities to the
masses: il means that hereafter the
wage Garner, OF other small borrower Of
sound character, in time of need will be
able to obtain money on terms con-
senient and fair; it means that here
after the honest individual will find
premium placed upon his habits of
thrift that viii 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 charity. The pur-
pose is to conduct all the operations on
/ strictly business basis so as to afford
such fair return on the capital en-
oloyed as would be expected from fl
nancia! institution operated under a
management, Dividends OF
zach of the local institutions. however,
will be limited to six per cent. on the
book value of the capital stock, in order
hat they may maintain a satisfactory
md growing surplus.
The plan is in successful operation in
Norfolk, Va, Atlanta, Ca, Baltimore,
Nd, Washington, ID. c., Memphis, Tenn,
Va, Charleston, S. C., Column
,ia, s. c., Springfield, Mass, st. Louis,
No., Denver. Colo, Lynchburg, Va, and
Pa. A similar company, /
With capital of Sl,000,000 is ready TO
,egin operations in New York City I'M
Ter supervision OF the New York state |
,anking department, and similar COM
,anes are already under way in Nash !
lille, Knoxville. jackson and Chatta- |
Iooga, Tenn, Durham, n. G.. Chicago,
H.. Pittsburg, Pa, New Orleans, La, |
nd in other important cities through |
nut the country