The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-28
INDICTMENTS
AND WARRANTS
FOR USURERS
States Attorney and County
Court Clerk Go After Loan
Sharks on Independent But
Effective Lines.

What looks like sure case for in
dictment against certain loan sharks
came to the attention of w. T. McLain,
assistant states attorney late Thursday
morning.
The prosecutor will be railroad man,
with a sick wife and baby. This mans
record with the loan sharks gives the
best example Of how this gentry oper-
ates according TO McLain, of any that
has come to his attention
The railroad man with a wife and
sick child, first borrowed SIS In Janu-
airy. His interest was $3.50 per month.
In February, this man, pressed Tor
debts, because Of the sick wife and child,
borrowed $50 more from another loan
company, His monthly interest for this
loan was $3.50.
Pressed again, he went to third loan
shark, and pOrroEed $40. lnteI est On ans
amounted to $3.50 a month.
Still behind, because of these extor-
tlnate rates OF interest. the man went
borrowed $40 more,
This brought. the loans ur to SlpO
| total
. On q ,1S the first loan, tc date the man has
on the second loan OF $50, the man
has paid $3.50 interest to date.
On the third loan, the man has paid
| $2l Interest to date.
His fourth loan was a compromise,
being made with the second company.
| It increased his monthly payments by
| 81 a month.
Thus 1t is that this man, on loans
varying in time from January, 1913,
| to March, 1913, on principal OF 500
| borrowed, already has paid back Sl03, SO
and still owes, according to the loan
| sharks way of reckoning--the original
| 500 which he borrowed.
In addition to the city license Of $3.50
| assessed against all loan companies re-
| alizing over so per cent interest, the
| county will assess them the same
amount for the county and the same
amount for the state, II they get more
| than rs per cent, making a total H.
cense they will have TO pay of $3.50 a
| year.
w. C. Rogers, attorney, who filed the
| big batch of suits against the loan
| companies in chancery court charging
| usury and asking that assignments Of
| salaries of railroad men be set aside as
a contract, Thursday gave the county
court clerk list of names OF loan
| companies or brokers who have not
paid, The list follows:
| DeSoto Finance company Ross Brok-
| erage company, Lee Brokerage com
pany, Smory & Co., Memphis Security
| company Memphis Finance company
| Shelby Brokerage company, r. d. Isor
| a. Co., City Brokerage company, Lega
Rate Trust company, Bonding company
T. H. Phillips and Il. A. Moore & Co
| The first four, according to Rogers
have never paid licenses, either city
county or state. The Bonding company
is located next to the Central Baptist
church, while one OF the concerns is
| located right at the railroad shops tC
get the assignments Of the mems
wages as they leave their work on pay
| day.
MIR. McLemore will get out distress
warrants against all OF them to col
| lect the state and county taxes.
1 Mr. Rogers told MIR. McIemore that
he knows Of one negro borrowing S2l
from Ison & Co., and being forced tc
pay interest at the rate of SO per month
and of a white man who borrowed Sill
from the Shelby Brokerage company
and is being forced to pay $3.50 4
month, of another person getting ST.
from the City Brokerage company, ant
paying 1870 a month.
Mr.. Rogers says that the companies
cannot get out OH the plea that the.
do not lend money, but buy mems
wages, because of the fact that the,
get interest. II they are brokers, HI
says, they are not paying brokers' II
cense.