The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-29
M'LAIN PUSHES
PLANS AGAINST
LOAN USURERS
One Man Paid $105 Interest
on $40 Loan and Still Owes
Principal E. A. Moore
C0mDanieS,

Plans to swat the loan shark, and
to swat him hard, continued Friday with
unabated vigor in the office Of W, T.
McLain, acting states attorney. Cases
citing instances Of extortionate rates
of interest continued 20 come to the
attention of the states attorney, thus
appear before the grand jury next
Tuesday in an effort to obtain the in
dictment of the usurers,
The tricks, schemes and devices by
which the loan shark attempted to
evade the law were the subjects Of con-
siderable study Friday by MIR, McLain,
One instapce came to his attention
which particularly he termed a subter
fuge, This was a printed form head
ed Application TO sell account for
wages or salary"
The clause by which the company
whose name appeared on the printed
form relies in protecting it from prose.
in blackface letters. 1t reads This
is an absolute sale of said account,
and | am not q debtor to the ---------
company. This is an original transac-
tion and is not a renewal or extension
of any kind and has no connection with
any other transaction that ! may have
had prior to this date with the said
-- company
Mr.. McLain then read Shannon's code,
1917, section S493, subsection 20, which
states:
Camouflage No Good.
''Usury cannot be covered or con-
cealed by shifts, devices, etc. II the
contract is in truth and fact a loan Of
money at usurious rates, 1t matters
not what devices may be- resorted to
for the purpose Of covering or conceal.
ing it's true character, the law viii
strip from it these devices and adjudge
it by what 1t is in fact, rather than by
what it may In its terms appear to
be. Usury cannot be covered
up and concealed by shifts, art, cum
ming invention, contrivances and sub
terfuges, so as to evade the statute
against usury." ~, -
Subsection 81 also has something to
say about the accommodation feature
of the loan. by a usurer:
.'The semblance of accommodation
does not remove the stain Of usury,
although it may be made under cir
cumstances calculated to soften its
character, and remove the impression
of any design purposely to overreach
or oppress."
Can You Figure Rate?
Among the cases called to Mr.. Nc
Lain's attention Friday was that Of
a railroad man who in November, 1917,
borrowed SIS from a certain local loan
company After one month he borrowed
S. more, making. his principal $50,
Mind, that was in December, 1871,
Every month since that time this rail-
road man has paid IS interest on that
loan. With his late August payment
this year, he will have paid into the
NAV of the unscrupulous usurers who
conduct this company, total of $l05,
And the usurer claims that the rail-
road man still owes his firm the orig
inal $40.
This is only one OF a number OF
cases brought to Mr.. McLains attention
Friday. 1t came in a batch delivered
by W. G. Rodgers, attorney, who Is
fighting the loan sharks Mr.. Rodgers
stated Friday that he had made, no
charges for his services to 'unfortunates
who were in the grip of the loan sharks,
except enough to cover actual expenses.
Distress warrants, which II was an
nounced Tuesday would be issued by
the county clerk, to force the loan com
panies to pay the 5000 state and county
tax for charging interest over 25 per
cent, will not be collected, in all prob
ability. No proof of excessive interest
l'charges by loan brokers has been
brought to the attention Of the county
court clerk, and John C. McLemore, who
holds that office. stated Friday that his
office would proceed TO collect when
proof of excessive interest had beer
presented by the office OF the states
attorney.
Two <Firms-One Name.
Attorney Rodgers filed several name:
| with the county court clerk Thursday
| for which he suggested distress war
rants be issued Among the firm names
was that of Il. A. Moore G. Co. II sc
| happens that there is in Memphis 9
| firm styled l.. A. Moore g. Co., whole
sale flour brokers, located at 3l0 s
Main street. They sold flour exclusively
| to the wholesale grocery trade of this
city and Mr.. Moore, of this firm, Yer,
NATURALLY wanted it known that he nevel
| had been engaged in the loan broker
age business.
There is, or was on June 10, 1919, an
other firm doing business here as Il
| A. Moore & c., also on South Main
| but close to Beale avenue, according
| to Mr.. Rodgers. This was not flou
brokerake firm, but money lending
| firm. whose name is set out In thu
bankruptcy petition Of Floyd Marks
| filed by Mr.. Rodgers.
| Mr.. Rodgers said Friday that the Mr.
Moore in the flour brokerage business
had no connection with the Moor
company which was in the money lend
| ing business.
| In speaking of the loans made 4
| railroad men, via the assignment o
salary route, Mr.. Rodgers said that tn
| federal statute forbade any government
employe from assigning his salary
Railroad men, working under the Unite'
| States railroad administration are class
ed as government employees. he said