Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-12-23
Deputy City Attorney Garden
Says One Gang Has Been
Broken Up BY Convictions
Against John vivichaves in
Circuit Court
OTHER MEMBERS OF RING
FACE PROSECUTION NOW
Rates as High as 40 Per Cent
for Loans Of Is Days Dura-
ton Have Been Charged;
Fireman's Kick Barred Hold
ljp Game

when John vEyichayes entered a
plea Of guilty yesterday morning in
the first circuit court TO the charge OF
nsury for which he was being tried,
at least one strong gang Of usurers
was broken up, said Deputy City At
tory w. +. Garden today. "vivichaves
was the leading spirit Of the crowd,
and was involved in more transac-
tions than the others.
.sWe intend TO break up usury IN
the city" says the deputy city attor-
ney who carried the case through for
the prosecution, "and We shall wei
come word from anyone else who has
come under the clutches Of the usury
game"
viyiehaves was tried twice on
separate charges. On the third trial
the prosecution brought in William
Ayau as it's main witness, the defense
asking for continuance Of the trial
on the ground that they wished more
time 70 meet the testimony offered.
Accordingly the trial was continued
until yesterday morning, and when
court opened, Vivichaves withdrew
his former plea Of not guilty and adj
mitted his guilt. Date Of sentence
has been set FOR January 8. Vivi-.
chapes Is now out on bond. Garden
said today that the prosecution In.
tenle e ask the court for 2 substan.
Fireman Made Kick.
1--WE hrsf learned Of the game these
men were working on city employees
through one OF the members OF the
fire Department. says the attorney.
The fireman applied for his money
of the county auditor to find that or
ders had been made out to withhold
all Of Il.
sAs the man from whom the fire,
man borrowed the money had promis-
ed not to turn in the order to the au-
ditor, the fireman began to raise
kick. and Auditor Bicknell brought
him. into our office to get some settle
ment of the trouble.
what the fireman told us, together
with testimony from other employees
Of the city who were borrowing money
from the gang, finally led to our pre-
ferring charges against several of
them.
E. Markle pleaded guilty several
days ago. A charge has been preferr-
ed against w. L. Peterson already,
and another warrant viii be served
on him today. Peterson, w. E. Way.
man and L. Ayau are yet to be tried.
Peterson's case will probably come
up Monday.
According to Deputy Garden the in.
dividual loans are not SO vital with
the men as are the compound interest
debts that accrue when payments can
not be made at once.
Charged 10 Per Cent Month.
Interest has been charged at 10 per
cent month for large loans, and up
10 40 per cent for 15-day period on
small ones. There are several cases
of 20 per cent being charged for a
period of three days, but the common
rate has been Sc returned for IS Dor.
rowed. Other cases were $14 for $40
loans.
As an example of how fast the
loans gather compound interest, If a
man borrows $40 at 40 per cent for
Is days, at the end of his first pay
day after he receives the money, he
viii owe the lender the neat sum OF
SIS. Compound interest on this
amount will bring the interest in the
next Is days up to $11.20, making
s3s.20 that the borrower owes il he
lets the note run. On his third pay
day six weeks after he has borrowed
the money he viii owe $54.SS. Parallel
cases to this example have been found
in tracing down the usurers.