Evening star., 1915-05-17
DETECTIVE To S|FT
LOAN SHARK DEALS
Inquiry Into All Transactions
Since Signing of Agree
ment to Be Made.
MIGHT FIND DIFFICULTY
IN PROSECUTING CASES
Experience of Jones'" Who Got
$52.s5 Cash for $123.3O in
Notes, Is Cited.


loan companies in the District of Co.
lunbia was the assignment OF Detec.
tive Evans to the task of investigating
every loan shark" loan since the
| agreement was signed between the nj
teen loan companies and the corpora
tion eounsefs Office by which hundreds
of loans. at usurious rates Of interest
were settled
No warrants have been asked for
none issued. and there will be nothing
done in this line until Corporation
Counsel Syme reads the detectives re-
port.
Officials of the District sovernme ent
intimated today that there might be
grave difficulty in bringing a successful
prosecution in the Police Court based
on transaction wherein no loan fig
ured, but merely notes to pay back
money still due on an old transa ction.
Typical Case Is Cited.
Detectives, In searching the loan
| shark situation probably will run upon
the trail of the case of man whose
| name must be withheld because Of the
possibility of trouble with his EMPLOY
er. For narrative purposes his name
may be called Jones'
In the little parlor of the little fiat
where Jones lives there Is a little fur
niture. loan shark manager has threat
eHed to back a wagon to the door and
take that furniture. together with all the
other furniture in the house, and all be
cause of note signed for S1233o. of
which amount Jones received s52.S5 in
cash.
This is the way the note happened to
bear Jones' signature:
Many months ago Jones had to bor-
row little money and went to a com
pany where brilliant promises were
| made of easy money on easy payments
He got his money, and a little later
added to the loan, and still later added
two more borrowings. The principal
seemed to multiply fast enough, but
the interest multiplied amazingly. 30
that when the loan shark law was en-
acted. and a method of stopping the
loan shark practices under the law was
reached at the District building, the
Jones case was settled so that the loan
shark dropped about $40 usurious in
terest and called off further collections.
But they did not drop the name of
Jones from their list knowing huma n
nature. the loan shark sent circulars
to the Jones family telling them that
their credit was always good The let
ters were most friendly: had they been
invitations to dinner they could not
contain more friendly solicitations.
Unfortunately, Jones has destroyed
these masterpieces of suggestion, but
his description of them is vivid.
Jones Receives a Call.
Later a man from the loan shark
came to call;
rs Mr.. Jones at homeo"
No. Mr.. Jones was not at home, but
would Mrs. Jones do? The loan man
thought SO. and Mrs. Jones stepped
into the parlor:
Mrs. Jones. I come from the loan
company. Don't YOU think you'd like
to borrow little money from US
| some time? You know we've always
| thought your credit very good"
Mrs. Jones, il so happened, was anx-
ious TO get some important things for
housekeeping. and the whole weight
of the aliuring loan shark letters
pressed upon her desire to make her
purchases right away She asked a
few questions about the matter. and
| just about decided to make a loan of
| about $50. but would have to consult
her husband. He was willing, assum-
| ing that the loan shark law protect ed
him from extortion of any sort, and
| began negotiations for a loan
| Well" began the loan shar rk, of
! course We can't lend YOU any new
money until We get back from You
/ the interest We had to give up in the
! corporation counsels Office
! By- that time the intended borrowers
| had been led by an alluring promise
right up to the point OF getting some
| money. and were about to feel the
crisp bills In their hands. when this
sudden obstacle intervened:
His Method Of Reasoning.
Now. of course, We have always
! presumed you to be perfectly honest,
| Mrs jones'
oh. certainly. and we want to pay
I our honest debts"
| so we have thought that YOU would
| not want us to suffer an injustice"
! NO. indeed
| We always stood by YOU when Won
| wanted money and were hard up; and
now think that If We lend Won
some more money you ought to be v III
. ing to pay us back that interest," which
/ the corporation counsel took from us >
! The little household affairs began to
take on great Importance The $50.
| so easily felt in the hand after the
I mere signing OF name, seemed SO
| close. The whole scheme was working
| out so well for the loan shark whose
| power of suggestion was remarkable
| II Mrs. Jones and her husband refused
{
| be no chance of refurnishing the little
| home.
! And SO they agreed to load their
| backs with the burden " 'iich the law
! had lifted from them a year previous.
| They agreed to pay their "honest
debts by allowing the loan shark to
write a dishonest credit
Numerous Papers for Signature.
| In his Office the loan shark produced
a mass of papers and operated them
! with skill one paper was to be signed
here, quickly blotted and showed out of
! sight; another was to be signed here.
| blotted and showed out of Sight; another
| was to be signed in a hurry
! However, Just at this point something
occurred in another room and the sha r X
| left his victims alone. Mrs Jones. COM
| pletely overwhelmed by the charity and
| benevolence OF the shark hastily and
! with confessed guilt dared to peep at
| one of the papers she had signed. She
\ cannot repeat II word for word, but IL
! started out with something like this:
| The borrower has read mis- agree
ment and promises to pay bacn ali the
| interest on his old loan and relin-
quishes all claims against the - Loan
| Company
I IN this case the borrower did read IL
/