Evening star., 1915-05-16
Chairman Baldwin of Citizens
Committee Tells of Little
Mothers" Predicament.
LOANS AT USURIOUS RATES;
THREATS MADE BY AGENT
Louis Gutenberg, Attorney in Colo
RADIO Building, Selected to Look
After Cases.

the case or annie, the loan snaTk
victim whose case has been described
in The Star. and no warrant has been
requested, according to reports from
District officials. In the face of this de-
lay, other loan shark cases have been
reported to the citizens committee.
No development in the matter appear
ed at the District building yesterday,
either in the corporation counsers office
or in the Commissioners offices. Con-
rad Syme, corporation counsel. was out
of the city. None Of his assistants knew
of any request for warrant for any
loan shark.
In connection with the loan shark sit
uation. William H. Baldwin. chairman
of the citizens committee, said that he
had received a card from a loan shark
victim who had been charged back
usury" on a new loan, wanting to tell
him about it.
The citizens committee has announced
that Louis Gutenberg, an attorney
in the Colorado building, will look
after individual loan shark cases. where
the law has been violated. It advises
victims to consult with him.
case Of Little Mother
In describing the case of little
mother" who had fallen victim to a
shark. Mr.. Baldwin said last night:
"One day in March last year, when
the loan shark victims were coming to
the corporation counsers office, Mr..
figures to a little woman who sat at
his desk as came in. She had a sweet
face, and with a troubled look told
him that the loan shark had threatened
to take her furniture away the next
day if she did not pay. AS she arose
to go, l noticed that besides being
slight and girlish. she was also quite
lame.
Her face interested me so that, some
time later. l got DR.. Van Schaick to 60
with me. April last year, to inquire
into her circumstances. We found that
her husband was painter. and because
ne had been out of work in the winter
season they had been obliged to borrow
$40 In December, 1913. agreeing to make
three monthly payments of 1915, a
rate of 1s6 per cent per annum.
Induced to Borrow More.
Although part of the loan was not
yet due. the loan shark had come to
them in March and induced them to
make a new loan in order to pay of
the old loan and get a little more
the usury on the old, was made at s
per cent.
Because 1t was to that extent legal.
the little woman on 1t, saying, This Is
legal We can handle you on this
meaning that he could take her furni-
ture. as he had proposed to.
a loan of $50 made in the previous Au-
gust. for which they were to make ten
payments of $S.95. a rate of 107 per
cent per annum.. on which they had
made four payments. amounting in all
to $3.50. As the law entitled them to
settle this for IS per cent Of the princi-
pal. $45. she, therefore. owed but 1920
on it.
I'VE found that she was still under
the doctors care because OF an opera
time before: that her father and moth
er. who lived in the rooms with them,
had also been obliged to borrow money
to keep from being put out for nom
payment Of rent; and that they. too.
had settled their loans through the
corporation counsels office.
Fearing that in spite Of the settle
ments this little woman might have
got into the hands Of the loan sharks
again. made several efforts to and
her, but was unsuccessful, because she
had moved from her former residence
and also from the residence given in
the directory recently issued. Having
located her by an inquiry through the
yesterday. I found her still lame. but
looking stronger than before. The
reason for her exceeding happiness was
explained when she limped of and
brought back fine boy. born October
IA last.
Ways Of the Loan Shark.
After congratulating her on her son
and expressing my admiration of her
courage asked about the loans, and
learned that after our visit last year
she had endeavored to get a position
herself, in order to contribute to the
family income; that in this she had
been unsuccessful.
The loan shark from whom the $50
had been borrowed. I discovered, still
continued to crowd them for his pay
He offered to loan her more money, of
which. because Of the circumstances,
they were in need: that when they
went to him for this August 13, 1914.
lease to him for what he had not
collected in the previous settlement;
that because of their necessities they
did this. and received $3.50 in cash.
for which they gave ten monthly notes
of SO each. with per cent interest.
"She had paid 81 on the 1920 which
she still owed on the old loan May S,
and 81 July 6. leaving but $720 due
the loan shark, which, with the 1880
received in cash, amounted to $56.70
The difference of $4e.05 between this
and the $102.75, for which she gave her
notes amounts to ia per cent per
annum!
I'm spite Of the extra expenses con-
meet, with the arrival Of her son the
little mother and her husband made
and interest in September. October
November and December last After
that. she said, 1t was impossible to keep
them up.
They are struggling along as best
they can to pay back the whole in
iquitous loan, having paid So in Feb
ruary. 81 in March. SO in April and 81
two weeks ago today. making $50.7O
in all. Yet the loan shark has been
bounding her. writing threatening let
ters. calling at the house, crowding in
at the door when she did not care to
admit him and abusing her in q dis
graceful way for not making payments
faster.
Suggestion to Corporation Counsel.
"As the settlement as to the old loan
was ofacialIy made through the corpo-
ration counsers ONCE. this was a VIOLA
tion of the stipulation, for which the
loan shark should be promptly put into
Jail for thirty days, or 1t 10 . new loan
at usurious rates. which the borrower
is entitled to settle for three-fourths
Of the principal. $37-12, whether the
loan shark is prosecuted and put into
tail under the law or not. Al she has