BULLETIN OF THE 
 
 DEPARTMENT OF PUBLIC WELFARE 
 
 CITY OF CHICAGO 
 
 LOUISE OSBORNE ROWE, Commissioner 
 
 Department Serial Number S 
 
 LOAN SHARK NUMBER 
 
 November, 1916 
 
 VOL. I 
 
 NO. 4
 
 BULLETIN OF THE 
 
 Department of Public Welfare 
 City of Chicago 
 
 LOUISE OSBORNE ROWE, Commissioner 
 
 Publi'shi-d monthly foi Circulation amon? the Municipal Officials Social Aeencies and Social Workers 
 
 of Chicago 
 
 K05 City Hall Square Bldg., Telephone Contra! 7707 
 Open 9 A. M. to o P. M.; Saturdays to 12M 
 
 VALERIA D. McDERMOTT, Editor 
 
 Vol. I NOVEMBER, 1916 No. 4 
 
 FOREWORD 
 
 The Commissioner regrets the delay in the publication of the 
 November Bulletin of the Department of Public Welfare. This 
 delay may be attributed to the enormous task of securing the 
 vast amount of material contained in the survey of loan sharks, 
 and compiling the loan shark catalogue. 
 
 The appreciation of the social agencies and the public, as evi- 
 denced by the increasing number of applications for all issues 
 of the Bulletin, is a source of gratification to the Commissioner, 
 and it is sincerely regretted that the present demand cannot be 
 met by the Department, the absence of funds being entirely re- 
 sponsible for the refusal of many requests. 
 
 The Commissioner desires to thank the readers of the Bul- 
 letin for their favorable comment and words of encouragement. 
 
 LOUISE OSBORNE ROWE, 
 Commissioner.
 
 ANNOUNCEMENTS. 
 
 (Social Agencies) 
 
 SOCIAL SERVICE CLUB. 
 
 The November meeting of the Social Service Club will be 
 held at the City Club, 315 Plymouth Court, Monday, December 
 18, 1916. All reservations must be made in writing and deliv- 
 ered to the City Club by noon of the day of the meeting. Can- 
 cellations may be made to the operator (Harrison 8278) until 
 noon of the same day. 
 
 Professor Scott Nearing, Dean, Toledo University, will be 
 the speaker of the Meeting. His subject will be: 
 
 The Social Worker and the Social Problem.
 
 ANNOUNCEMENTS 
 
 (Department of Public Welfare.) 
 
 The Department of Public Welfare is engaged in preparing for publication 
 the 1917 Social Service Directory. A directory of social workers of Chicago will 
 be a new feature of this edition. All agencies and social workers are urged to 
 co-operate in making the Directory a complete and useful handbook. Returning 
 promptly questionnaires and forms sent to the agencies; notifying the Bureau of 
 Information of new organizations and agencies in the field, or of changes in 
 existing organizations; suggesting from experience in using the directory how 
 it could be made more comprehensive and useful, are ways of co-operating. 
 
 The Commissioner kindly requests the Superintendents of social agencies 
 receiving the Monthly Bulletin to circulate it among their staff. A number 
 of social workers connected with agencies receiving the Bulletin have asked 
 for individual copies, but, owing to the fact that our mailing list covers the 
 entire monthly edition, it is impossible to supply any agency with more than 
 one copy until such time as the edition is increased. 
 
 The Study of Family Desertion, to which reference has been made in pre- 
 vious issues of the Bulletin, has been published and is ready for distribution. 
 As the edition is a limited one, it is not possible to supply all those on the 
 monthly mailing list with copies. A special mailing list has been prepared 
 from the requests for copies received by Dr. Eubank and the Department, and the 
 remaining copies will be sent, as long as the supply lasts, to those making spe- 
 cial application. 
 
 After the publication of the Otcober Bulletin, it was discovered that the 
 list of references on pages 35, 36 and 37 were accredited to the Journal of 
 Associations of Engineering Societies instead of the "Metal Worker, Plumber 
 and Steamfitter." We regret this error.
 
 The Loan Shark 
 
 in Chicago 
 
 A Survey made by the Bureau of Social Surveys 
 
 Department of Public Welfare 
 
 City of Chicago
 
 THE LOAN SHARK IN CHICAGO 
 
 By 
 
 Karle Kdwnrd Kuliaiik, I'h. I). 
 
 INTRODUCTION. 
 
 During July of 1915 the Bureau of Information was established as an activity 
 of the Department of Public Welfare in order to meet in a constructive way the 
 constantly increasing demand upon it for legal advice and general relief from 
 persons unfamiliar with the Department's real functions. In dealing with the 
 applicants for assistance, one of the most important as well as most perplexing 
 problems encountered was that ever-present one of the self-respecting, heretofore 
 independent, man or woman who, through illness, industrial depression, sea- 
 sonal occupation, or some other cause, had fallen into temporary unemploy- 
 ment and was feeling, through no personal fault, the cramp of actual need. 
 With any small savings consumed and no negotiable credit to fall back on, 
 many such persons had reached the poverty line and had come to the De- 
 partment pitifully appealing for a small loan to tide over the emergency and 
 to save them from the humiliation of asking charity. Many of these could 
 return to work at the beginning of the next season; others were capable 
 persons whose references and prospects of securing work were good. In no 
 sense could they be classified as paupers at the time of their appeal. 
 
 To all such requests the Department was compelled to turn a deaf ear, 
 for its purposes have not been, and are not intended to be, those of a remedial 
 loan association or bureau for general relief; but worse than being obliged to 
 make refusal to these petitioners, the Department was compelled to tell many 
 of them that there was no place in the City of Chicago to which they could 
 safely turn for this kind of assistance. Had they been able to furnish a wage 
 assignment, backed up by a good record of employment, there would have been 
 recourse to the First State Industrial Wage Loan Society. Had they been able 
 to furnish pawnable security, the First State Fawners' Society might have 
 afforded a solution. In the absence of both of these, two courses remained 
 to throw themselves on charity or to accept the friendly offices of the profes- 
 sional money lender, who would advance money provided they could offer satis- 
 factory chattels as security. 
 
 All too often the latter of these alternatives was chosen as the lesser 
 of the two evils. The professional usurer waxes prosperous not merely upon 
 tribute paid by the unthrifty, improvident and foolish; thousands who are 
 victims of misfortune only, add to his coffers. Sometimes seeing no other 
 way out, they put themselves into his power knowingly. More often they do 
 it ignorantly, led afield by auspicious promises, and the law of the State of 
 Illinois, as it stands at present, lends small comfort to any one who has been 
 thus victimized. 
 
 The repeated experiences of the Department of Public Welfare in dealing 
 with persons having this particular type of need have borne in upon it re- 
 peatedly the necessity for a changed condition in this city. Out of this con- 
 viction the following survey has come. Its purpose has been three-fold: 
 
 1. To present a concrete array of facts concerning the activities of the 
 professional money lender in Chicago which will serve to educate the public 
 to the necessity of eliminating him from the community; 
 
 2. To suggest ways and mean by which this elimination may be accom- 
 plished; and 
 
 3. To suggest measures for meeting in a constructive way the very real 
 need for legitimate substitutes for the loan shark. 
 
 The study has been undertaken after consultation with and with the advice 
 of Mr. Marvin B. Pool, President of the Industrial Club of Chicago, and Mr. 
 Daniel P. Trude, Attorney, who for two years was in charge of the Loan Shark 
 Campaign conducted by the Chicago Tribune. 
 
 To Mr. Trude and to Mr. Orville W. Lee, the Department desires espe-
 
 cially to express indebtedness for the manifold ways in which they have per- 
 sonally assisted the study as it has gone forward and for the materials which 
 they have made available for our examination. 
 
 Grateful acknowledgment must also be made for the generous way in which 
 the Legal Aid Society and the First State Industrial Wage Loan Society of 
 Chicago have responded to the somewhat exacting demands which have been 
 made upon their files and records, as well as upon the time of their office 
 forces. 
 
 Specific mention should be made of the personal assistance rendered by 
 Mrs. William E. Boyes, Superintendent, and Mr. Guy M. Blake, for a time the 
 loan shark attorney, for the Legal Aid Society; by Mr. Arthur E. Hill, General 
 Manager of the First State Industrial; and by Mr. Samuel Wolfort, Manager of 
 the First State Fawners' Society. Valuable materials as well as constructive 
 suggestions have been received from Mr. Arthur H. Ham, Director of the 
 Division of Remedial Loans of the Russell Sage Foundation. 
 
 For obvious reasons mention can not be made by name of the several 
 members and ex-members of the loan shark fraternity itself who have freely 
 given information from the inside as to the technique of the loan shark busi- 
 ness. Nevertheless, the Department of Public Welfare wishes publicly to in- 
 clude its acknowledgments to them, as well as to the others who have been 
 mentioned. 
 
 The field work of the survey has been performed by Mabel E. Gregg, In- 
 vestigator of the Department of Public Welfare. To her belongs credit for the 
 statistics and tabulations on the loan shark situation in Chicago which are pre- 
 sented from time to time; and especially for the materials which are presented 
 in the Loan Shark Directory. 
 
 I. WHAT IS A LOAN SHAEK? - 
 
 At one time or another there comes to most men the urgent necessity for 
 securing in some way a small sum of ready money to tide over an emergency. 
 At such times those are fortunate who have friends that can be pressed into 
 service, property which can afford security, personal credit which can be util- 
 ized, or salary which can be drawn in advance; but many persons are not so 
 fortunately placed, and in their extremity feel obliged to patronize some pro- 
 fessional money lender whenever it is necessary to obtain relief from the 
 financial pressure of the moment. 
 
 In practically every city and large town of the United States there exist 
 men who make a business of exploiting the financial needs real or fancied 
 of individuals who have no other recourse which they are able or willing to 
 utilize. Not content with the reasonable profit of a legitimate business, these 
 professional money lenders use the urgent necessity of their patrons to exact 
 from them in illegal ways usurious rates of interest, extortionate fees and 
 special charges, mounting up in some cases to hundreds of per cent, a year. 
 They have, in many instances as well organized companies, built up a systematic 
 technique of business, none the less effective because contrary to law. Elab- 
 orate devices for holding old trade and securing new, reprehensible ways of col- 
 lecting illegal charges, skillful processes for evading the law these are worked 
 out with consummate skill. 
 
 To this class of money lenders popular speech has applied the descriptive 
 term "loan shark," an unmistakable phrase which has found a place for itself 
 in our common language before it has in the dictionary. 
 
 The question of usury is not a new one. It is almost as old as the human 
 race itself; certainly as old as any financial system. In earlier periods of his- 
 tory, interest and usury were used as synonymous terms, and any one who 
 attempted to extract a fee for the use of a loan was looked upon as immoral. 
 An interesting statement of the ancient aspects of usury laws was presented 
 by Mr. A. D. Baldwin, before the third annual convention of the National 
 Federation of Remedial Loan Associations in 1912:
 
 "Aristotle and Plato condemned interest; Solon passed laws against 
 it As early as 547 B. C. the rate of interest was fixed at five per cent. 
 The result, however, of the Roman law was that it was found to be im- 
 practical, and it was raised in 89 B. C. to twelve per cent. The next de- 
 velopment in the interest of a debtor was the first bankruptcy law, which 
 was enacted by Julius Caesar; Justinian in A. D. 533, classified rates of in- 
 terest according to the rank or business engaged in by the borrower. Some 
 could receive twelve per cent., some eight, some six and some four. 
 
 "In the middle ages in England, the canonical law condemned interest 
 of any kind, and in the time of Henry III Parliament made the exaction of a 
 fixed charge unlawful. Of course there were many methods practiced of 
 evading so impractical a law, just as all usury laws have always been 
 evaded. 
 
 "In the sixteenth and seventeenth centuries in England the rate was 
 restricted to ten and eight per cent, at different times. In France, Turgot 
 in 1769 wrote his essay on 'The Price of Money,' in which he defended the 
 practise of leaving the borrower and lender to make their own bargains. 
 It was due largely to the influence of his work that at the time of the Revo- 
 lution France abolished all restriction on interest." 
 
 Varieties of Loan Shark. 
 
 In general, two classes of loan shark may be differentiated: First, the 
 chattel loan broker, who takes as security mortgages on furniture and house- 
 hold goods or on some personal property of the borrower; second, the salary 
 loan broker, who takes as security an assignment of the wages of the borrower. 
 Often the two will be combined in a single transaction. Where the salary 
 broker can do so he makes himself doubly secure by taking a chattel assignment 
 in addition to the salary assignment. 
 
 There are numerous varieties of these two classes. Many business houses, 
 especially jewelry and clothing establishments which advertise easy credit, do so 
 by making an enormous interest charge in one form or another for the favor. 
 Certain furniture houses are particular offenders in this respect. While adver- 
 tising to "sell" furniture on installments, the person who is so unfortunate as 
 to fail to meet a payment, discovers that the paper which he signed when 
 he secured the goods was in reality a chattel mortgage making over to the 
 furniture house all of the goods purchased, a mortgage including a generous 
 interest charge, which is in effect until the last cent is paid on the whole. If 
 the mortgage is foreclosed, not only does the furniture go back to the store, 
 but the firm frequently sues for the balance due on the furniture. To make 
 payment, more secure, wage assignments may be taken which may subsequently 
 be used to compel the purchaser to complete the transaction. Or, if not a 
 mortgage, the purchaser may discover that he has signed a lease for the furni- 
 ture, a mere agreement to pay certain rent periodically for the use of the goods, 
 the transaction not to constitute a purchase until the full amount is paid. 
 
 Some concerns are a little more open in their presentations. Instead of 
 extending credit, they offer to lend their customers (at illicit rates) money "to 
 purchase for cash" what they want. 
 
 Som loan brokers operate as savings banks. Some operate as pawn brokers 
 under the sign of the three balls, charging no interest whatsoever upon the 
 amount loaned, but substituting therefor a written agreement to re-sell to the 
 pledger within a specified time the article pawned. The re-selling price will be 
 a distinct advance over the amount loaned, ordinarily at least ten per cent a 
 month. In this way, if a redemption does not take place for six months, then 
 the price at which the lender agrees to re-sell has advanced sixty per cent. 
 In this way the laws against over-charge of interest may be avoided. The 
 transaction technically has been one of purchase and sale, with the purchaser 
 free to buy back or not, just as he chooses, with the statement of interest 
 appearing nowhere in the transaction at all. 
 
 From these few references it may be seen that loan shark methods and
 
 cruel extortion are not confined strictly to money lenders. A further study 
 should be made of the methods used by the Chicago installment and credit 
 houses and by the pawnbroker establishments. Because of the vastness of 
 the field, the present inquiry has not extended far outside of the two main 
 types first indicated, viz., the regular chattel and salary loan brokers, whose 
 transactions are out and out loans, and not confused by matters of purchase 
 and sale. 
 
 H. THE LOAN SHARK IN CHICAGO. 
 
 Extent of the Business. 
 
 Obviously a business which is so questionable in character avoids pub- 
 licity. For this reason accurate statistics as to its extent can not be given. 
 Mr. Arthur H. Ham, Director of the Division of Remedial Loans of the Russell 
 Sage Foundation, in his address before the National Conference of Charities 
 and Corrections in 1911 gave some conclusions on this point based upon some 
 investigations then recent. Boston, with a population of about 700,000, less than 
 a third that of Chicago, was estimated to have one hundred professional money 
 lenders and one hundred thousand borrowers. Portland (Maine), with a popu- 
 lation of 60,000, had twelve usurers; Syracuse, with a population of 140,000, has 
 twenty-four. Atlanta (Georgia), with a population of 155,000, had fifty-eight 
 In general, his investigations showed with fair conclusiveness that in every city 
 of more than 30,000 population, one usurer would be found to every five to ten 
 thousand, and approximately five borrowers to every one hundred of the popula- 
 tion, or about twenty per cent of the number who vote. 
 
 Mr. Arthur E. Hill, Manager of the First State Industrial Wage Loan 
 Society, in a statement before the 1914 convention of the National Federation 
 of Remedial Loan Association, stated: "Chicago has long been known by all 
 the money lenders as the safest and most liberal city in the United States in 
 which to operate. For that reason, the loan companies are probably more nu- 
 merous there than in any other city." 
 
 That Chicago is especially favored by usurers is due not merely to the fact 
 that business here is good, but owing to the additional fact that the state law 
 is such that the business can be operated practically free of risk. While the 
 highest contract rate of interest which may be charged is only seven per cent 
 (except by special companies organized under special enactment for remedial 
 loan purposes as will be described further on in this report), the law entirely 
 neglects to fix a penalty for charging a higher rate. The victim, if he employs 
 his full legal rights, can save nothing more than the interest. Aside from 
 that, no punishment can be meted out to the extortioner, as the law stands at 
 present, for any exaction in excess of seven per cent. This makes the busi- 
 ness safe, for the lender knows that an insignificant minority of his patrons 
 are aware of their rights under the law; and it has been held by the local 
 courts that he may not even recover interest after it has been paid, provided 
 it can be shown that he paid it voluntarily at the time, even though it has been 
 usurious. 
 
 One of the main purposes of the present study has been to discover the 
 extent of the business in Chicago. Weeks have been spent in investigation 
 and in running down clews of many varieties in an attempt to locate as many 
 individual operators in the city as possible. It is too much to suppose that 
 we have located them all, and ours does not claim to be an exhaustive list 
 Our efforts, however, have brought to light 229 separate concerns, 139 of which 
 were actively engaged in business November 1, 1916. Of this number, cases 
 of actual extortion are on file against 199 (some of which have ceased to 
 operate as such; some of which have been combined with other companies), 
 and against the others the circumstantial evidence is conclusive. This list, 
 with a statement concerning each, appears in this report as Appendix A, "A 
 Loan Shark Directory." No addresses are published for two reasons. First, the 
 Department of Public Welfare is not engaged in prosecuting specific cases, but 
 is attempting to lay the foundation for constructive measures against the loan 
 shark fraternity as a whole; second, to make public a list of addresses would
 
 oe to give extensive advertising to the firms which might be turned to their 
 advantage in a business way, and so militate against the very end which the 
 Department is seeking to reach. The Department, in its formal recommenda- 
 tions, makes them with reference to illicit money lending as a business, not 
 as an attack upon individual persons or companies. 
 
 The complete list, with full information, is, however, on file at the office 
 of the Department, where it is public property and at the disposal of any 
 person who may have a legitimate concern in seeing it. 
 
 While the extent of the list as compiled coincides closely with the state- 
 ment of Mr. Ham as to the ratio of loan sharks to the general population, we 
 have reason to believe that the actual list, if known, would be much more 
 extensive and possibly double. Most of the 139 maintain fixed offices and office- 
 forces and are organized as business concerns; but many companies have ceased 
 to do business under old and familiar names at well-known addresses and are 
 probably operating in new locations and with new names, whom we have been 
 unable to locate. How the list would be expanded by the addition of individuals 
 operating entirely sub-rosa, and from the concealment of private residences or 
 offices ostensibly devoted to other purposes, we have no way of knowing. We 
 have reliable information to the effect that there are many men (and some 
 women) who are operating profitable loan-shark businesses as side lines under 
 cover of more respectable occupations. 
 
 More difficult than the task of locating a loan shark in the first instance 
 is that of determining the extent of the business which he is doing. Even 
 when he is known there is at present no way of getting at his books to learn 
 the number of customers, number of loans, average amount loaned, and other 
 items which would be essential to determining the volume of his trade and the 
 size of his profits, except through a judicial order to bring him into court. 
 That his earnings are enormous goes without saying; otherwise the enter- 
 prise would not flourish as it does. A member of the Loan Shark "Clearing 
 House" some months ago stated that 150,000 would be a conservative estimate 
 of the number of live accounts on the books of the members of that organiza- 
 tion alone; and the members of this association are by no means all of the 
 known operators in the city. 
 
 Mr. Ham, in the address mentioned, stated that at that time (1911) the 
 amount of usury collected from victims in New York City was "twice as much 
 as that required to support the Charity Organization Society, the Association 
 for Improving the Condition of the Poor, the United Hebrew Charities and 
 the Bellevue and Allied hospitals." 
 
 The loan shark directory, which appears as Appendix A, contains, after a 
 number of the firms listed, a statement of the approximate extent of business 
 done by them annually. While this is only an approximation, and for reasons 
 given not verifiable in all cases, it is something considerably more than mere 
 guesswork; it is the estimate furnished, for the most part, by attorneys for- 
 merly connected with the Tribune Anti-Loan Shark Bureau, who have had inti- 
 mate contact with the concerns themselves in court or elsewhere. They are 
 therefore in a position to make a more nearly accurate statement than can be 
 obtained anywhere outside of the ranks of the loan sharks themselves. In some 
 of the cases the figures were made known when, upon prosecution, certain of the 
 firms were compelled to show their books and records in open court. 
 
 As a matter of fact these estimates have been verified for the Department 
 by an ex-manager of a money lending firm which was for over a decade con- 
 nected with the Chicago loan shark "clearing house" and in a position to 
 know the inside of the financial affairs of the leading firms operating in the 
 city. His own firm, which he said was not by any means the largest, loaned 
 an aggregate of only about $70,000 a year. The larger ones ran up into hun- 
 dreds of thousands of dollars loaned annually, and, in his own words, "it would 
 be very conservative to call $85,000 the average business done yearly by regu- 
 larly organized firms." 
 
 One hundred and thirty-nine firms, operating in Chicago with an average 
 business of $85,000 per year, would mean a loan shark business of at least 
 $11,000,000 a year in this one city. 
 
 10
 
 His own firm he regarded as "conservative," being content with an interest 
 of only twelve per cent a month as reasonably satisfactory. This enabled them 
 to double their money every year and left a generous margin against loss and 
 to cover overhead expense. While some firms make much less, he was free to 
 say that most of them make much more. The loan shark investigation made 
 by the Chamber of Commerce of Pittsburgh, in 1909, found the rate of interest 
 to range "from forty per cent in a very few cases to about one hundred and 
 twenty per cent in most, and in the case of the so-called 'renewal' loans, to as 
 high as several hundred per cent." 
 
 Mr. Ham mentions a single company operating five offices in one city which 
 made a total of forty-five thousand loans in a single year at an average interest 
 charge of two hundred and twenty-eight per cent. Mr. Isador Shapiro, State Rep- 
 resentative of Jefferson County, Alabama, in his crusade for loan shark legis- 
 lation in that state, gives specific instances of interest charges of forty per 
 cent a month. The following is an affidavit of one of these: 
 
 "State of Alabama, 
 Jefferson County. 
 
 Before me, Nell Freeman, a Notary Public in and for said state and 
 county, personally appeared Monroe Stewart, who being first duly sworn, 
 deposes and says, as follows: 
 
 'My name is Monroe Stewart, and I live in Birmingham, Ala. I have 
 lived here about fifteen years. For the last three years I have been bor- 
 rowing money from, and have been indebted to, Mr. Hal J. Copeland, ex- 
 cept for about six months, when I was off the road. I work for the 
 Alabama Great Southern Railroad, as brakeman. In March, 1912, I bor- 
 rowed money from Mr. Hal J. Copeland, and have been indebted to him 
 ever since, except about six months. On all the money I have borrowed 
 from Mr. Copeland I have paid him twenty per cent interest every month, 
 and if I did not pay the money when it was due, I had to pay him forty 
 per cent, or forty cents on the dollar. If I borrowed money the day before 
 pay day and paid it back the next day, I would have to pay twenty per 
 cent interest for that one day just the same. For the last six or seven 
 months, I have been paying him forty per cent interest every month, because 
 I got one month behind. Every month for the last two and a half or three 
 years Mr. Copeland has gotten my check from the paymaster, and I have 
 been forced to go and borrow money from him to buy groceries with, and 
 have paid him twenty per cent on all the money borrowed, and forty per 
 cent if it was not paid on the day it was due. I make between sixty 
 and seventy dollars a month. Every month Mr. Copeland gets my check 
 and I then go to him and give him another assignment, and he loans me 
 from thirty-five to fifty dollars of my money to live on during the month, 
 at twenty per cent, interest. . 
 
 MONROE STEWART.' 
 
 Subscribed and sworn to before me this 1st day of September, 1915. 
 
 NELL FREEMAN, 
 
 Notary Public." 
 
 In Chicago the situation is fully as deplorable as those uncovered anywhere. 
 Instances of exorbitant interest charges of loan sharks here, supported by docu- 
 mentary evidence, could be given almost without number. The case of Mr. S , 
 which came to the attention of Mr. Trude, is typical and will serve perhaps 
 as well as any other by way of illustration: 
 
 "Mr. S , who is a hard working German, was receiving a salary of 
 about twelve dollars a week with which to spuport his wife and family. 
 He borrowed $15.00 in March, 1912. As he could not read or write Eng- 
 lish, the papers were signed by his mark and witnessed by the loan shark. 
 After he had paid in about $15.00 on the note which he signed, his pay- 
 ments began to run behind and the loan shark tied up his salary. The 
 agent then called at the house of Mr. S and Mr. S not being at home, 
 
 11
 
 the loan shark representative told Mrs. S that if she would sign the 
 paper it would release her husband's salary. She was not able to read 
 English, but could write a little, and signed hers and her husband's name 
 on the paper. This paper afterwards proved to be a new note for $17.00. 
 The loan shark continued to collect on this last note until his annoyance 
 of the employer caused Mr. S to lose his position. He had just begun 
 to work with the new employer when a fake assignment was filed. Not- 
 withstanding the fact that the assignment was not legal, the bureau held up 
 Mr. S 's pay, and when the victim went to the bureau, the family was in 
 want and the man did not even have car-fare to go home. Although the 
 loan shark insisted that this was a new loan, and he had loaned $15.00 
 additional, he was glad to settle the claim for $3.00; and when the victim's 
 papers were turned over to the bureau, it was found that the loan shark 
 not only had the usual assignment, but was holding a $1,000 insurance 
 policy on the life of Mr. S , and a $260.00 policy on the life of Mrs. S , 
 and a $260.00 policy on the life of their child. The truth of the matter 
 was that the loan shark had loaned $15.00 and in six months had received 
 back $20.00, and was trying to take advantage of this man's unfamiliarity 
 with the English language to fleece him out of $17.00 additional." 
 
 A genuine dyed-in-the-wool loan shark apparently considers his business 
 to be losing out unless he is able at least to double the amount which he loans 
 every year. If a conservative estimate of the 139 and more organized loan busi- 
 nesses in the city indicates them to be loaning some eleven millions a year, the 
 conclusion is that at least another eleven millions is extracted from the pockets 
 of the loan shark victims in Chicago every year. Compare this with the statistics 
 as to relief issued by the Cook County Agent which show that approxi- 
 mately one person out of every ten in Cook County at one time or another in the 
 course of a year, receives charitable assistance. 
 
 Of the 139 firms discovered to be now in active business in Chicago 17 
 were engaged exclusively in the chattel loan business; 73 were engaged in 
 the salary loan business, although many of them make themselves doubly safe by 
 taking security on household goods in addition to the wage assignment. Forty- 
 nine of the number were regularly making both salary and chattel loans. 
 
 Of the agencies found 90 have loan shark records with both the Legal 
 Aid Society and First State Industrial Wage Loan Society, organizations which 
 have carried on a defense of loan shark victims from extortionate demands 
 as an active part of their regular work. In addition to these 90 the Legal Aid 
 Society has loan shark records against 61 firms which have no record with the 
 First Industrial, and the First Industrial has loan shark records against 48 
 which have no record with the Legal Aid. This makes a total of 199 concerns 
 which have operated in Chicago in recent years against whom the loan shark 
 evidence is complete. 
 
 There is something incongruous in the thought of women taking part in 
 so nefarious a business, but our investigations show that they are among the 
 most successful practitioners. In 20 cases the owners or proprietors were women; 
 in two additional cases women were active managers. Women are actively 
 employed in more or less responsible capacities in the office of many others. 
 
 Location of Business, 
 (according to the last known address). 
 
 Several of the concerns run two or more loan offices. The 229 separate 
 agencies previously mentioned were represented under 263 names, distributed 
 as follows: 
 
 In the loop 152 
 
 South Side 39 
 
 West Side 23 
 
 North Side 13 
 
 Addresses uncertain 36 
 
 263 
 12
 
 The "financial center" of the business may be located at Dearborn and 
 Madison streets. Fifty-two of the loop offices were on Dearborn within a block 
 north or south of Madison; 10 were in one building; 12 in another, and 15 in still 
 another. 
 
 The trade may be further localized: 25 companies located south of 39th 
 street, 5 in South Chicago, 8 "back of the yards," 9 at or near prominent trans- 
 fer points on 63rd street, especially the intersection of Halsted and 63rd; 5 in 
 or convenient to the "Black Belt." The fact that certain companies specialize 
 in loans to employes of transportation companies accounts for the large num- 
 ber of companies, 21 altogether, located at or near transportation terminals or 
 junctions. 
 
 m. TECHNIQUE OF THE LOAN SHARK BUSINESS. 
 
 A cardinal principle of the loan shark business is that it shall be carried 
 on with as little conspicuousness as possible. Numbers of designations are em- 
 ployed with the intent of concealing the true character of the concern. Pro- 
 fessional usurers are found in the Telephone Directory under all of the following 
 classifications: 
 
 Investments and securities. Tailors. 
 
 Real Estate. Banks. 
 
 Coal Dealers. Manufacturers' Agent. 
 
 Lawyers. Collections. 
 
 The loan shark "clearing house" has its headquarters in an office on 
 Dearborn street, but the glass door is devoid of any business insignia whatso- 
 ever. "Commercial paper" is a designation on the office door and the business 
 stationery of one concern. Among the ones most difficult to reach, and most 
 harmful, are those which pose as banks and use such descriptive terms as 
 "United States," "Peoples," "Illinois," "Federal," "State," in connection with 
 them, to give the impression that they are doing a regular banking business, 
 or are in some way connected with the government. 
 
 Comparatively few loan shark companies are incorporated, partly because 
 incorporation would necessitate keeping indefinitely the name which is written 
 into the charter. This would be exceedingly inconvenient for some of them 
 who make it a practice to change names from time to time as one grows 
 too unpopular. Even with incorporated concerns, permission is secured to change 
 the name from time to time. 
 
 The complete list of 229 names and addresses of money-lenders, including 
 those in Appendix A, was sent by the Department of Public Welfare to the 
 Secretary of State of Illinois with a request that his office should indicate which 
 of them had been incorporated together with the date and purpose for which 
 chartered. Of the entire 229 only 18 were found who had been chartered in Illi- 
 nois at any time, and of the 18 nine have already been canceled, in most cases 
 for failure to file an annual report as required by law. 
 
 The purpose of incorporation where specified is worthy of note. The exact 
 wording of a number of charters follows for several illustrative cases: 
 
 i. "To conduct a general lunch-counter, restaurant and hotel business and to 
 do and perform all the necessary business incident thereto." 
 
 ii. "For the examination of titles to real and personal estate, to furnish 
 information upon which to base credits, to transact a general collection busi- 
 ness." 
 
 iii. For the purpose of "manufacturing and sale of dry-goods." 
 
 iv. For the purpose of "carrying on the business of buying and selling 
 bonds and other securities." 
 
 v. "To manufacture and deal in furniture, stoves, rugs, and all kinds of 
 household properties." 
 
 13
 
 vi. "For the purpose of raising, harvesting and dealing in leaf tobacco; 
 to purchase and own real estate in connection with said business, and to transact 
 any legitimate business coming within the province of this corporation as regards 
 the purchase and sale of personal property." 
 
 vii. For the purpose of "purchasing and presenting plays in carrying on 
 the theatrical business." 
 
 Definitely chartered for such objectives as the foregoing, various loan 
 firms freely use the term "incorporated" upon their printed matter, con- 
 veying the impression that they have been incorporated for loan purposes 
 particularly. As a matter of fact not a single one of the charters which were 
 recorded by the Secretary of State carries within them any provision for doing 
 a money lending business. Such concerns should be prevented by law from 
 doing business in a way which makes them appear to be endorsed by the State. 
 
 Not one in 20, as the report of the Secretary of State shows, are incorporated. 
 The business is too shifty to desire permanence and fixity of name which in- 
 corporation would give. Change of name is resorted to frequently because of 
 the unpleasant connections which associate with it after it has been running 
 awhile. This gives it a mushroom-like character and complicates investigation. 
 Circulars appear every two or three weeks advising the public that a "new" 
 company has begun business at such and such an address. As a matter of fact 
 the only new thing about the company is the name. The management and 
 capital and outstanding claims of some company that has "gone out of business" 
 merely take up a new designation and continue the even tenor of their ways; 
 and verily, "a rose by any other name would smell as sweet." 
 
 Devices for Getting Business. 
 
 The success of the money lending business, as of any other, lies in its 
 ability to get its offerings effectively before the public. Numerous ways exist of 
 doing this: 
 
 Newspaper advertising. In times past the main reliance of the loan shark 
 has been upon the newspapers which were more concerned with the amount of 
 revenue to be derived than with the character of the source of revenue. The 
 unrestricted use of the advertising columns of the widely read metropolitan 
 daily is the greatest advertising privilege that a loan shark can have. Not only 
 does an advertisement which appears there reach tens of thousands of readers, 
 but its very presence there implies an endorsement of the advertiser to people 
 who assume that their newspaper would not permit fraudulent presentations. 
 
 The character of this class of advertisements in themselves is such that 
 the United States Government will not permit them to go through the mails. 
 One company which is positively known to charge not less than 120 per cent a 
 year advertises "organiEed to help poor, honest working people who cannot pay 
 the exorbitant charge made by the so-called loan companies. Will loan you 
 all the money you want at 5 per cent a year." Another, whose rates are from 
 10 per cent to 12 per cent a month declares "you cannot beat the rates we are 
 offering; they are positively the lowest in the city." 
 
 Sometimes "blind" advertisments are run, cleverly worded, as business 
 personals with no name attached. A person may negotiate a loan without even 
 suspecting that he is dealing with a professional loan company. The following 
 is an example: 
 
 "Retired business man with surplus cash, will make loans to deserving 
 people. Address: M21 Daily Paper." 
 
 14
 
 All of this is in violation of the State law, which reads (Kurd's Revised 
 Statutes, 1915-1916, p. 893): 
 
 "102C. FRAUDULENT ADVERTISEMENT PENALTY.] 1. BE IT ENACTED 
 BY THE PEOPLE OF THE STATE OF ILLINOIS. REPRESENTED IN THE GENERAL 
 ASSEMBLY: That whoever, being any person, firm, corporation or associa- 
 tion, in a newspaper, periodical, circular, form, letter, or other publication 
 published, distributed or circulated in this commonwealth, in any advertise- 
 ment in this commonwealth, knowingly makes or disseminates, or causes 
 to be made or disseminated, any statement or assertion concerning the 
 quantity, the quality, the value, the merit, the ability, the use, the present 
 or former price, the cost, the reason for the price, or the motive or purpose 
 of a sale, of any merchandise, securities or services or anything of value; or 
 concerning the method or cost of production or manufacture of such mer- 
 chandise; or the possession of rewards, prizes, or distinctions conferred on 
 account of such merchandise, securities, services, or thing of value; or the 
 manner or source of purchase of such merchandise or securities, or thing 
 of value with intent to sell, or in any wise dispose of such merchandise, 
 securities, services or thing of value; which is untrue or calculated to mis- 
 lead, and known to be so by said person at said time, shall be guilty of a 
 misdemeanor, and on conviction be sentenced to pay a fine of not more than 
 one thousand dollars, or by imprisonment in the County Jail not exceeding 
 sixty days, or by both such fines and imprisonment." 
 
 The advertising in the newspapers is skillfully adapted to the type of bor- 
 rower to be reached. One agent who recently died specialized in school-teachers 
 depending on the promise of the transactions being confidential to draw trade: 
 "Only two will know it, you and " 
 
 Another makes an especial appeal to the housewife under the caption 
 "Loans to house-keepers"; people who have been "victimized by the loan sharks" 
 are invited "to come to us; the fact of your having other loans will not interfere 
 with your getting one here." Others are entreated to "lump your obligations; 
 borrow enough from us to pay off your other creditors." Still others are appealed 
 to by the assurance of "no questions asked." "Loans in five minutes," "loans 
 while you wait," "no delay nor investigation; you take the money with you," 
 "write us and we will call with the money" and appeals which reach the im- 
 patient and extravagant. The man who is harassed by household necessities 
 and possibly by creditors for last year's bills is appealed to by "loans for coal," 
 "loans for rent," and loans for every other household obligation which can be 
 mentioned. One concern advertises* a loan of $150.00 to be available to any man 
 earning a salary of $12.00 per week. Another, pressing hard on the "phil- 
 anthropic" pedal, advertises not only money but "a friend" in time of need. 
 
 Loan shark advertising also reflects very clearly the season of the year. 
 As the summer vacation time approaches the public is entreated not to deny 
 itself the luxury of an outing for lack of funds, but to "travel at our expense." 
 As the holiday season approaches, the loan shark joins with the over-burdened 
 storekeeper in urging, "Do your Christmas shopping early and avoid the rush," 
 suggesting his particular agency as the one to furnish "loans for Christmas 
 if your funds are short"; and one company urges "don't spoil Christmas by 
 being short of a little cash." 
 
 Practically every paper published in Chicago prior to the Tribune's loan 
 shark campaign, begun in 1912, carried advertising of this character. The 
 last advertisement of this sort which appeared in the Tribune itself, was on 
 December 22nd, 1911, just before the crusade was begun. At that time, with 
 the exception of the Chicago Examiner, which a few years ago carried practically 
 no classified advertisements, all papers were carrying advertising of this de- 
 scription. The Chicago Evening Post had fewer than any except the Examiner, 
 but apparently its attitude was an open one, as there was usually at least one 
 advertisement running. 
 
 From this, fluctuating in number and amount of space according to the 
 seasons, the number rises to as high as 56 in a single issue of one paper, salary 
 and chattel included, occupying from a minimum of a fraction of a column to 
 
 15
 
 from 3% to 5 columns during the holidays. Not only do the number of advertise- 
 ments increase at certain seasons, but the number. of lines per advertisement is 
 greater. Thus 20 advertisements, counted at one time, occupying from one to 
 two-thirds of a column, counted at another and more favorable season, increased 
 to 3% columns. 
 
 Because this sort of advertisement comes to the newspapers voluntarily 
 and with practically no expense for solicitation, it is almost the cheapest and leas* 
 expensive advertising which they run, and because of the higher rate which is 
 charged, it is especially profitable. When advertising mounts up into the hundreds 
 of lines per issue, as it may very easily do, the revenue of the paper is enormous. 
 The loan shark committee of the Pittsburgh Chamber of Commerce reported a 
 total of 10,954 lines of advertising in all the Pittsburgh dailies combined in a 
 single week, and estimated an annual revenue to the local papers of over 
 $30,000.00 a year from that single source. The monthly income of one New York 
 paper alone, as reported by Mr. Ham during a three year period, did not fall 
 below $1,800.00 in any month, and rose, immediately preceding the Christmas 
 season one year, to $6,000.00, the average being well over $3,000.00 monthly. 
 
 It is therefore no small financial sacrifice which a newspaper makes when 
 it definitely renounces so lucrative a source of income. This sacrifice, however, 
 has been made, by most of the Chicago dailies. During the summer of 1916 only 
 the Daily News, The Journal and the Examiner continued to carry loan shark 
 advertising in Chicago. The Daily News has since discontinued them, but 
 the other two, finding an open field here, continue to receive them. The Sunday 
 edition of one of the Chicago newspapers on November 12th, 1916, contained over 
 two columns of loan advertising, in which were included some of the best known 
 loan shark firms in the city, and firms against which the records are most exten- 
 sive and incontrovertible. 
 
 Mr. Edward Lyell Fox, in an article which appeared in the August 1913 
 issue of Pearson's Magazine, strongly urged the suppression of all loan shark 
 advertising in newspapers, stating his conviction that the business would 
 perforce disappear through lack of publicity if this were done. The inaccuracy 
 of his conclusion is demonstrated by the flourishing condition of the business 
 in Chicago. In spite of the lack of access to the majority of newspapers, they 
 continue to thrive. That this is a great handicap is certainly true, and assuredly 
 the public has a right to demand that injurious and misleading advertisements 
 of whatever character shall be excluded from all publications; but the ingenuity 
 of the loan shark finds many other ways of getting business, as is made clear 
 by the fact that only a portion of the loan -sharks of the city even now take 
 advantage of the opportunity which is presented by the papers still open to 
 them. 
 
 Other published forms of advertising. The newspapers are not the only 
 media of loan shark advertising. There are probably few citizens of Chicago 
 who have not found their mail-boxes sometimes pretty well filled up with the 
 circulars of the loan companies. Denied access to the mails, they still use the 
 family mail-boxes, which are not a part of the United States mail system. Of 
 late certain loan companies have taken to placing their placards In the advertis- 
 ing racks of the street cars. Personal cards and circulars are distributed on the 
 street from time to time. 
 
 Personal solicitation. The up-to-date loan shark has his personal solicitors 
 out over the city drumming up business. Some of these, instead of dropping 
 their literature into the mail boxes, call at the door and deliver it in person. 
 In some of the buildings where loan offices are located, the elevator men act 
 as solicitors, distributing cards to the elevator passengers. These cards bear 
 their name written in the corner, and presumably they receive remuneration for 
 the "prospects" which they secure. Certain firms which specialize among street 
 railway employes make it a point to drop into the barns where the men are 
 assembling for the days work to present their business. 
 
 One of the most effective methods of obtaining new business is to secure, 
 among certain groups of workmen, one of the number to act as representative 
 for the loan shark. He will point out prospects for the loan shark to approach, 
 
 16
 
 or he may himself offer to secure the loan for his troubled fellow-employe or 
 to direct him to a source of supply. An interesting case is the one listed in the 
 Directory of the man who is a conductor on the Chicago & Northwestern Rail- 
 road, whose wife runs a money-lending business, specializing among North- 
 western employes. Doubtless her husband's business connections are worked 
 to their fullest advantage. 
 
 The attorneys who have been fighting the loan shark in Chicago have found 
 a very difficult proposition in the case of certain of them which have influence 
 over some of the minor officials of large corporations. Mr. Trucle gives one 
 case where an employe of a large railway made loans to his fellow-employes, 
 and when they were slow in paying placed his account for collection in the 
 hands of a presumably innocent third party in another state through which 
 the railroad ran. The man could not go there to defend the suit and judgment 
 was accordingly made against him by default. 
 
 One of the ways of getting new business is to turn present patrons into 
 solicitors for further trade. A person who owes money and is having difficulty 
 in paying is allowed to reduce the amount by a certain sum, usually a dollar, 
 for every new customer secured. 
 
 Exchange of Names. Frequently it occurs that a loan shark patron, having 
 redeemed himself from the clutches of a particular money-lender, refuses to 
 become inveigled further. After being convinced that there is nothing further 
 to hope for in business from him, the firm may turn him over as a prospect 
 to some other firm with which he has had no dealings. Through this exchange of 
 courtesies, a man once in the loan shark's hands may, in spite of every good in- 
 tention, be passed along from one to another, until he becomes finally hopelessly 
 entangled. 
 
 Devices for Making Collections. 
 
 The essence of the power of the loan shark over his victim, in Chicago as 
 everywhere, is in the victim's ignorance. Ignorance, first, due to carelessness in 
 many instances of the obligations which he signs when he receives his loan; 
 second, ignorance as to what his rights really are under the law; third, 
 ignorance as to the means of redress which are available after he has discovered 
 the plight in which he is. With reference to the first of these, the loan shark 
 system has worked out an elaborate set of forms, guarantees and asignments, 
 which the borrower is required to sign before he can get the money. Usually 
 he does not read the papers signed, and if he should he would not dare protest, 
 for he wants the money, and he is made to feel all the while that the lender 
 is doing him a personal favor by letting him have it, and therefore he must not 
 ask too many questions. He may or may not know it, but he has probably 
 signed all the following papers: first, notes for the money borrowed (separate 
 notes for the principal and interest, so that in case he should subsequently 
 discover his rights and protest against the interest, the note for the principal 
 will appear as a separate item ) ; second, an assignment of his wages to the 
 lender (in case of the salary loan shark) to be drawn on in case he fails 
 to pay up; third, usually a further security in the form of a mortgage on his 
 household effects; and fourth a power of attorney to be vested in the loan 
 shark himself. No copies of these are given to the borrower, so he has no way 
 thereafter of proving what he has or has not signed. Neither are receipts 
 given for amount paid in, nor are the documents returned which he originallj 
 signed. 
 
 In appendix C will be found in replica a full set of "loan shark papers" as 
 used by a money-lending concern in business in Chicago for years, with ex- 
 planatory notes accompanying each. The originals of these were furnished the 
 Department by an ex-manager of the concern. 
 
 But the loan shark knows that when taken into court even so formidable 
 an array of documents will have no. binding power to compel his client to pay 
 interest in excess of the 7 per cent, permitted by law. He therefore makes use 
 of his client's ignorance to the fullest and works upon it with a monumental 
 bluff. He knows that he must rely more upon threats than upon his legal 
 security. 
 
 17
 
 On the campaign against loan sharks in Cleveland about two years ago, 
 Mr. Poulson, the City Prosecutor, captured some of the confidential instructions 
 issued to loan shark managers, among others a 36 page book entitled, Blank's 
 "Book of Instructions." This man, who bears the title of "King of the Loan 
 Sharks," in his own advertisement some time ago claimed to be doing a 
 business in 66 cities of the country. Some quotations from these confidential 
 papers, were presented at the Baltimore convention of the National Federation 
 of Remedial Loan Associations in 1915 by Mr. John E. Taylor, Mgr. of the 
 Equitable Collateral Loan Company of Youngstown, Ohio. The following extracts 
 convey a graphic picture of loan shark methods: 
 
 "We have to get after collections harder and disregard the customer's 
 threats of paying only the legal interest rates. 
 
 "Do not kill the account by sending a bum collector after it. It is the 
 sharp, quick action that counts. 
 
 "Do not get timid on account of the kicks by customers. Do not show 
 too much sympathy, when they come around with hard-luck tales. 
 
 "Use 'soft-soap' talk on the borrower only after you have tried stones 
 and gravel. If a customer mentions the law, hunch your shoulders and say 
 you do not know much about it. 
 
 "Bluff the borrower by rattling papers in your desk. Pretend to phone 
 to an attorney, but hold the phone closed. Remember the whole proceeding 
 is more or less of a bluff. Give your customer good hard roasts. 
 
 "Try to bluff a customer concerning loans with other companies. Look 
 through a drawer or book, rattle the papers, etc., and then say, 'Oh, I see, 
 you want to make a loan to pay off the other company.' Hesitate a moment 
 and see if the bluff works. 
 
 "When a customer comes in for the money, try to bluff him; he will 
 think you have found out something about it. Say to him 'Will your other 
 loan interfere with your making these payments promptly?' He will 
 probably say 'No,' and then you have him. 
 
 "The phone is the quickest way of getting after collections. The next 
 best thing is to send a special notice. I. believe it is safe to say that 50 
 per cent, of the collectors who are sent out to see customers spoil them. 
 It does not take the customer long to see that they can bulldoze a collector. 
 
 "In the case of a dead-beat, you might bring up the point of a new law, 
 and do whatever bluffing you want to; but to talk to customers in general 
 about new laws I do not approve. There is no use putting the notion into 
 their heads, as they would probably go and see somebody to find out what 
 the new law is. The result would be more apt to harm us than to do us 
 any good. 
 
 "Do not loan to wives unless you are sure they get an allowance from 
 their husbands. Bluff the wife into thinking you must have the husband's 
 signature, then drop the demand. 
 
 "You can say anything you like to a customer in a sealed letter so long 
 as it is not criminal threats, immoral or indecent. 
 
 "We need managers with bull-dog determination. Get some attorney 
 who will sell you his legal letter-heads and then write your customers upon 
 them. 
 
 "When a customer served with a wage-assignment, comes poking in, 
 give him a good hard roast. At first suggest you are going to tie up his 
 salary. If you see you have to retreat, do so as slowly as possible. Do not 
 give people all they ask." 
 
 Mr. Taylor, in his interesting paper, speaks as follows on his experience 
 in loan shark methods: 
 
 "Sometimes legal looking notices are sent to the victims, such as 
 'garnishee demand,' and 'demand notice,' 'notice of judgment,' 'original 
 notice before suit,' and some loan sharks have gone so far as to have 
 letters printed purporting to come from a local collecting bureau. One of 
 these notices which recently came into my hands was entitled 'Ultimo 
 notitia' a very legal looking scrap of paper prepared and delivered in such 
 a way that the victim would think it came from the civil branch of the 
 
 18
 
 Municipal Court. All these notices have a certain legal look about them 
 in the eyes of the unsophisticated victim, and oftentimes bear fruit, at 
 which the loan shark chuckles to himself and says, 'Well, once again the 
 bluff worked beautifully.' " 
 
 Some employers, in a well-meaning attempt to discourage their employes 
 from getting under the control of loan sharks, have issued an order announcing 
 that any employe, guilty of borrowing from professional money-lenders, shall be 
 discharged. By such an order, the employer has unwittingly played right into 
 the loan shark's hands giving him a weapon to hold over his victim's head. 
 By advertising that "our loans are confidential," the loan shark learns who of 
 his patrons wish them to be kept confidential. If his payments are not forth- 
 coming, the loan shark threatens to notify the employer. With the vision of 
 discharge hanging over him, the victim makes redoubled efforts to escape from 
 the toils, often in so doing only becoming more deeply involved. A second loan 
 may be solicited to pay off the first, and others to pay off the second indeed 
 there are companies whose specialities of advertising are loans for the purpose 
 of paying off other loans until he is wound up beyond a point where he will 
 ever be able to extricate himself unaided. 
 
 During the administration of Mayor Carter H. Harrison, an order went 
 forth to the effect that any city employe would be discharged who obtained 
 money from any professional money-lender. By making judicious use of this 
 order, a certain class of loan sharks who specialize in business with firemen 
 and policemen and other city employes, obtained a far stronger grip on them 
 than they had had before. 
 
 The person who does not make his payments on time or who seems to be 
 slipping out of the lender's grasp is subjected to such communications as the 
 following (which are transcripts of actual letters sent by loan shark operators 
 in this city to certain of their delinquents) : 
 
 "Feb. 17, 1914. 
 Dear Sir & Madam: 
 
 You failed to pay your note due Feb. 15th. We wrote you when we 
 sent you this money 'THAT same MUST be IN THIS OFFICE on the 
 EXACT DAY' and we meant what we said RIGHT TO THE LETTER. 
 
 You are hereby notified that if this is not paid WITHIN 48 HOURS, 
 we shall take legal steps to get this money. 
 
 Yours truly, 
 
 BLANK LOAN CO." 
 
 "Dec. 28, 1914. 
 Dear Sir & Madam: 
 
 You failed to pay your note due Dec. 25th. If you think we are going 
 to be bothered THIS WAY you have another 'think' coming. 
 
 Not when there are other ways of getting it, and a deal is almost 
 paid out ANYHOW. 
 
 If you care to send this WITHIN 48 HOURS, we will accept the payment, 
 rather than appear 'ugly' right at the Christmas time; Otherwise your 
 money is N. G. in this office. 
 
 We are fully aware that it is considered a 'Nasty trick' to start legal 
 proceedings when a deal is almost paid out, but where parties 'Stall' just 
 as long as they DARE month after month, we feel that we are justified in 
 so doing, ESPECIALLY when we can make FAR MORE by so doing than 
 we could if they paid us the cash payment. 
 
 Should we fail to hear from you WITHIN the time limit set, we shall 
 feel FULLY JUSTIFIED in taking it for granted that you do not INTEND 
 to pay and in demanding our FULL LEGAL RIGHTS in this matter. 
 
 Yours truly, 
 
 BLANK FINANCE ASSN." 
 
 19
 
 "Aug. 2, 1915. 
 Dear Sir & Madam: 
 
 Yours at hand. As we wrote you Saturday, we are SICK of these 
 eternal delays and we are going to thrash the matter out RIGHT NOW, 
 one way or the OTHER. 
 
 What is it to US about 'your being out of work.' Why don't you 
 hustle around and GET WORK? WE are not running an employment 
 agency you know. 
 
 We feel that you should be able to BORROW a piking little $7.45 from 
 your friends IF YOU WANTED TO. Is your credit so poor with those 
 who KNOW YOU that they won't lend you that trifling sum. OR don't you 
 WANT to put yourself out to KEEP your AGREEMENT with us? IF your 
 friends don't trust you, we certainly had better close this up RIGHT NOW. 
 That is self evident. Same if you won't borrow this to pay your honest 
 debts. We want this money BY RETURN MAIL and we are not going to 
 waste any more good time and postage telling it to you either. GET THAT? 
 
 Its 'up to YOU to get it. Not to US. You were NOT out of work 
 LAST MONTH and you IGNORED your payment THEN. We are beginning 
 to think there is only one WAY to handle a deal LIKE THIS. 
 
 Yours truly, 
 
 BLANK FINANCE CO." 
 
 The following is a letter sent by one concern to a lawyer of the Legal Aid 
 Society staff who had interfered in behalf of a harassed borrower. The attempt 
 of the company to inject an ethical element into the settlement is no less in- 
 teresting than the virtual acknowledgement that the claim which is made is 
 an illegal one: 
 
 "April, 1916. 
 Dear Sir: 
 
 Yours of the 28th inst at hand. If you elect to answer one or two 
 questions, we are always glad to discuss any question. Otherwise its useless. 
 In the first place, your client AGREED to pay a certain sum, didn't he? 
 We are not asking a PENNY more than he AGREED to pay are we? Where 
 then has HE any just cause for complaint? 
 
 He sends on a power of attorney authorizing his agent HERE to borrow 
 a certain sum of him and after receiving it, confirms the act of his attorney 
 in fact. He is of age and supposedly of sound mind, capable of conducting 
 his affairs without a guardian, isn't he? If not why don't you and your 
 ilk have a guardian appointed for him by the courts? 
 
 Now do you believe that it is HONEST to beat a bill simply because 
 you legally can? Do YOU actually think that SQUARE for a grown man to 
 enter into a transaction with his EYES OPEN and then REFUSE to carry 
 out his contract on the grounds that some attorney tells him that it cannot 
 be enforced at law? Answer these questions IF YOU DARE Mr. - . 
 
 That we didn't overcharge your client is shown conclusively by the fact 
 that we were obliged to CLOSE our Rochester office and discharge our help 
 down there because the place DIDN'T PAY and surely where a place is 
 LOSING MONEY, its a pretty good argument to the effect that they were 
 not robbing the public, even tho' mismanagement was at the bottom of it, 
 as it was NOT in this particular case, for surely an investor has a right to 
 SOME profit, so you cannot use THAT as an argument for refusing to pay 
 in this instance. 
 
 We are AMERICANS Mr. - . NOT GERMANS. We think that a 
 contract should be KEPT even tho' MIGHT does happen to be on the other 
 side. We are laymen. NOT LAWYERS and we think that where a MAN 
 AGREES to do a certain thing, he should DO IT, regardless as to whether 
 the claim can be enforced at LAW or not. And as we HOPE that we are 
 fairly honest, WE would tell anyone asking US for advice 'Possibly you 
 
 could beat your bill at LAW but would be a to try it, as you 
 
 went into it with your eyes open and we imagine this would be the advice 
 of any HONEST man on earth.'
 
 As to the refunding what your client has paid, would say that we will 
 refund it WHEN the bar association begins to tell their clients to do 
 RIGHT, instead of advising them to do LEGALLY. Figure out for yourself 
 when THAT is going to happen. 
 
 We beg to call YOUR attention to the Federal laws regarding 'black- 
 mail.' Your threats may be put in force any time you see fit Mr. . 
 
 We THINK that the assignment of this man's wages is good AT LAW 
 and can at least test it out His employers being BUSINESS people and not 
 lawyers, will undoubtedly take the same view of it that we do, viz, that if a 
 party AGREED open eyed to PAY, that he SHOULD PAY, regardless of the 
 LAW in the matter, especially as the transaction took place in Ills., where 
 it is valid even at law. 
 
 Yours truly, 
 
 BLANK LOAN CORPORATION." 
 
 The Loan Shark Clearing House. 
 
 The average outsider does not know of the complex organization of the 
 money lending business. He thinks of each operator as more or less isolated 
 in his operation, bound to his fellow usurers by a "consciousness of kind," it is 
 true, but separated from them by barriers of competition. He is amazed when 
 he learns of the close inter-relation which exists among the leading ones and 
 of the high form of organization which the business manifests. 
 
 The larger operators do not confine themselves to a single city. A number 
 of the Chicago firms are branch houses of a larger concern which operates in 
 many states. One of these some time ago was doing business in over sixty 
 cities. Recently there appeared as witness in a loan shark case before Judge 
 Landis in the Federal Court a manager of a money lending firm who reluctantly 
 testified that the owner 6f his company was the owner of nearly seventy others 
 scattered about the country. Eastern capital is found financing certain of the 
 firms listed in Appendix A, and in one or two instances the firms are chartered 
 in another state. Not only this, but records show that in many instances the 
 real backers of loan shark concerns are persons of influence and prestige in 
 their communities, sometimes prominent in church, fraternal and social life. 
 
 Within the city the leading operators have banded themselves together into 
 an organization known as the clearing house, to which reference has been 
 made. This organization, founded in 1895, is a close corporation of the severest 
 type, admitting new members only after most rigid investigation. Its work is 
 carried on with the utmost secrecy. No designation of any kind appears on its 
 office doors. Its members are known not by name, but by number, and the 
 designating number is employed in all communications between member and 
 clearing house and between members themselves. In telephone conversations 
 no information is vouchsafed until the pass-word has been given. The expenses 
 are met by a monthly membership fee by an affiliated concern. 
 
 The main purpose of the organization is to supply its members quickly with 
 information as to applicants for loans, in this way saving time and expense 
 which would be necessitated by separate investigations. In the files of the 
 clearing house, ready indexed for quick access, are the records of all persons who 
 have borrowed in the past from any member of the association. Everything is 
 recorded which may serve to indicate whether or not the applicant is desirable: 
 his place of business, standing in the community, how often he has borrowed 
 previously, ready or slow pay, etc. When a new application is made to any 
 member of the clearing house, the applicant is immediately looked up to see 
 whether any record already exists concerning him, whether he is owing money to 
 some other concern and how much, and kindred matters. Persons who have dropped 
 out of sight of one firm without settling accounts in full may be located through 
 the clearing house in case they should later make application to another member, 
 ignorant of the existence of this information exchange. 
 
 Three times a day young women "runners" make the rounds of the clearing 
 house membership to secure the names and addresses and other information 
 
 21
 
 concerning new applicants for loans. This information is checked up with the 
 records already filed in the central office and the result reported back to the 
 office to which the applicant has just come. 
 
 With such a system great expedition is possible, and the answer may be 
 given to the applicant within a few hours as to whether a loan may be granted. 
 Of course the clearing house can afford no information concerning transactions 
 with non-clearing house members, but it is remarkably efficient within its own 
 field. It also serves as a ready instrument of communication among those who 
 compose it. 
 
 IV. CONSTRUCTIVE OPPOSITION TO LOAN SHARKS. 
 
 In the palmy days of the past, before a public opinion had begun to crystal- 
 lize against the business, the loan sharks in many of our American cities were 
 able to conduct their trade more openly than now. Of late years the movement 
 against them has been gathering force. In a rough way we may classify the 
 growing opposition to them under the following heads: 
 
 1. Publicity campaigns. 
 
 2. Legislation. 
 
 3. Organized defense of loan shark victims. 
 
 4. Loan shark substitutes. 
 
 These can not be sharply marked off from one another; they are interwoven. 
 Legislation, organized defense and loan shark substitues have come about after 
 public opinion has been aroused by publicity campaigns. Likewise, certain of 
 the substitues which now exist required special legislation before they could 
 be formed. 
 
 Constructive opposition to extortionate money lending is generally recognized 
 to head up in the Division of Remedial Loans of the Russell Sage Foundation, 
 of which Mr. Arthur H. Ham is Director. Mr. Ham began his work as a "special 
 agent for the study of remedial loan problems" in October, 1909, as a result 
 of requests coming from leading persons in the National Federation of Remedial 
 Loan Associations. Since his appointment he has been particularly active in 
 assisting to organize new remedial loan agencies and in securing legislation in 
 the various states. 
 
 Publicity Campaigns Against the Loan Shark. 
 
 In the language of Mr. Ham, in a letter received from him during this 
 study: 
 
 "There are few cities of any size in this country that have not, at 
 one time or another, undertaken so-called loan shark campaigns. Sometimes 
 the campaign has consisted of a denunciatory outburst in a leading news- 
 paper; in other cases such efforts have been followed up by the formation 
 of committees of trade organizations or other bodies, activity on the part 
 of prosecuting officials, introduction of new legislation, and the forma- 
 tion of a remedial loan society. As a matter of fact, most of the small loan 
 laws now in effect in twenty or more states and most of the remedial loan 
 societies now operating in thirty-five or more cities, were the direct result 
 of loan shark campaigns of one sort or another. Perhaps the most notable 
 campaigns, because of the success which accompanied them, were those of 
 New York in 1910-1911, etc., San Francisco in 1911, Buffalo in 1912, Portland, 
 Oregon, in 1913, Dayton in 1915, Omaha in 1915-1916. Each of these resulted 
 in the passage of much needed legislation and the organization of a remedial 
 loan society." 
 
 In Chicago, as in other cities, practically every newspaper has at one time 
 or another, gone on record editorially as to its position with regard to the loan 
 shark business. These editorials have sometimes been published in the same 
 issue which carried the loan shark's notice in the advertising columns. The 
 
 22
 
 extreme of inconsistency seems to have been reached in the case of one local 
 paper which ran a large cartoon graphically picturing the ravages of the pro- 
 fessional money lender, and on the opposite side of the same sheet ran its 
 columns of loan shark business cards! 
 
 The most notable campaign of publicity in the city has been that of the 
 Tribune which, early in 1912, organized its "Anti-Loan Shark Bureau," headed 
 by Attorney Daniel P. Trude. Some 80 lawyers were secured who agreed to give 
 their services free on behalf of the loan shark victims, and a definite series 
 of loan shark exposures began to come from its press. For the first time the 
 citizens of Chicago began to have something like an adequate idea of the char- 
 acter of the business, and under the severe attacks, the loan sharks were put 
 upon a definite defensive. The materials piled up by this journal were in large 
 degree responsible for getting the measure through the Illinois legislature 
 which permitted the establishment of the First State Industrial Wage Loan 
 Society. The lead which was set by the Tribune in refusing longer to run 
 loan shark advertising in its columns was followed, as has been stated, by 
 most of the other papers. In addition to these two important results, scores of 
 victims were relieved from the difficulty in which they found themselves by 
 the assistance of the attorneys which enlisted with the Tribune. 
 
 A newspaper campaign is effective, however, only so long as what it presents 
 is news. When it grows old and the public grows weary of the reiterated story 
 (appetizingly sensational at first) the campaign begins to wane; and so it 
 happens that the crusade so actively waged for a period of nearly two years, 
 declined before the end desired was accomplished. Probably this cannot be 
 better expressed than in the words of the Tribune itself at the beginning of its 
 campaign : 
 
 "There is no doubt whatever that the business of the loan shark can be 
 abated if not destroyed for a time. But when the 'tumult and the shout- 
 ing dies,' as it always must in newspaper crusades after the impatient 
 readers have got 'thoroughly sick and tired of the whole business' as they 
 usually phrase it in their letters of protest, then the loan shark will creep 
 back into the city. With the front page full of Roosevelt, or the opening 
 of the base-ball season, they will feel safe in reopening at the old stand 
 under a new name; that is, unless something has taken its place * * * 
 for * * * most * * * people have to borrow at times. If they cannot 
 borrow at reasonable terms, they will borrow at unreasonable terms. When 
 the crisis comes, borrow they must somehow or other." 
 
 It is just this thing which the Tribune foresaw at the beginning of its 
 attack on the loan shark which has come to pass: The campaign came to an 
 end before full provision had been made against the loan shark and before the 
 State Legislature had made the business sufficiently unpopular. As a result 
 the sharks are among us now, a trifle more cautions than before, but flourishing 
 like a green bay tree. 
 
 Legislation Against the Loan Shark. 
 
 In another part of this report an article by Messrs. Trude and Marso 
 considers the legislative aspects of this question in Illinois. Two points neces- 
 sary to effective state legislation need to be emphasized: 
 
 First, that a sufficient penalty be attached to the business of usurious 
 money-lending and sharp practices in its connection to make it an extra- 
 hazardous occupation. This cannot possibly be enforced, however, without 
 suitable provision for licensing and inspecting the money-lending concern. 
 
 Second, there must be made complete provision for legitimate substitutes 
 to take the loan shark's place. Again using the words of Mr. Ham, "Many 
 unsuccessful attempts to legislate the usurious money lenders out of existence 
 have shown one thing clearly that a law that comes between the unscrupulous 
 man who has money to lend and the man who wants to borrow cannot be 
 enforced until an agency is established to suit his needs at lower cost." At 
 
 23
 
 present the ground is only partially covered in Chicago; it must be fully 
 covered. 
 
 Definite obstacles to prevent such legislation will arise in the future as 
 they have done in the past. Two or three may be mentioned: 
 
 1. The organized opposition of the loan sharks themselves. So remunera- 
 tive a business as this has been shown to be, and so highly organized can easily 
 arrange to maintain a lobby against any constructive efforts put forth against 
 them in the Legislature, and as is ordinarily the case the harmful powers are 
 apt to have more funds at their disposal for a lobby than the champions of 
 constructive legislation. 
 
 2. Various installment firms not primarily money lending will join their 
 forces to that of the loan shark to help prevent any regulation of wage assign- 
 ment or too close inspection of chattel mortgages. Such legislation would too 
 intimately affect their own questionable ways of doing business. 
 
 3. The down state legislators, not being confronted with the problem as 
 are those of a great city (although usurious money lending exists in practically 
 every community to some extent), cannot understand fully the need for legisla- 
 tion of this character. 
 
 Other states, however, have put adequate legislation on the books, and 
 Illinois will do so in time. 
 
 Organized Defense of Loan Shark Victims. 
 
 A lawyer can hardly find a more unremunerative case, in terms of dollars 
 and cents, than that of the loan shark victim whose pockets have already been 
 turned inside out by the professional usurer. To give services free is nothing 
 less than philanthropy and most of them feel, and naturally so, that they cannot 
 afford to do it. 
 
 In Chicago the Bureau of Justice (incorporated in 1888) and the Protective 
 Agency for Women and Children (incorporated in 1887) were consolidated in 
 1905 as the Legal Aid Society, having as one of its objects "legal protection of 
 those unable to protect themselves against injustice." From its beginning this 
 Society, just as its constituent branches had done before consolidation, has been 
 devoting itself at every opportunity, to the task of defense of loan shark victims. 
 
 During the 11 years of. the Society's existence, from June, 1905 to June, 1916, 
 there were received a total of 2,617 complaints against chattel brokers and 4,059 
 complaints against salary brokers, a total of 6,676 complaints altogether. No 
 exact record is available to show the exact number of cases settled; SQme were 
 dropped, some were compromised, some involved lengthy litigation. But there 
 is a definite record of 1,266 cases having been settled for clients during the 
 last three years of the period. The amount saved to the victims represented 
 in this number of cases was $16,884.88. 
 
 The First State Industrial Wage Loan Society, as Mr. Hill has indicated in 
 his paper found elsewhere in this issue of the Bulletin, has had from the first 
 as one of its objects, the defense of the borrower against the loan shark. From 
 its opening in November, 1913, down to June 1st, 1916, the Society had made 
 2,004 loan company settlements which have saved their clients approximately 
 $19,000 in excessive loan shark charges. 
 
 The following list, which comprises only a few of the many specific cases on 
 record, as settled by these two societies, indicates the practical service which 
 they have rendered: 
 
 24
 
 SPECIFIC CASES FOUND IN LEGAL AID SOCIETY RECORDS. 
 
 Key No. as 
 
 
 Appearing in 
 
 Amount 
 
 Appendix A. 
 
 Demanded. 
 
 14 
 
 $ 10.75 
 
 27 
 
 23.00 
 
 30 
 
 27.00 
 
 36 
 
 29.00 
 
 41 
 
 93.80 
 
 37 
 
 140.00 
 
 64-66 
 
 51.00 
 
 71 
 
 28.00 
 
 74 
 
 23.10 
 
 89 
 
 30.00 
 
 115 
 
 27.00 
 
 116-38 
 
 9.00 
 
 136 
 
 63.60 
 
 122 
 
 12.00 
 
 141 
 
 24.00 
 
 140 
 
 12.50 
 
 148 
 
 35.00 
 
 142 
 
 19.00 
 
 159-160 
 
 14.00 
 
 175 
 
 16.00 
 
 173 
 
 45.00 
 
 179 
 
 14.70 
 
 172 
 
 18.75 
 
 *181-SO-129-205 
 
 11.00 
 
 Amount 
 Settled for. 
 
 $ 2.00 
 
 12.73 
 
 5.40 
 
 11.56 
 
 27.80 
 
 100.68 
 
 00.00 
 
 14.60 
 
 4:70 
 
 3.25 
 
 9.10 
 
 3.00 
 
 34.00 
 
 1.00 
 
 2.75 
 
 1.75 
 
 11.75 
 
 1.00 
 
 1.00 
 
 2.00 
 
 6.00 
 
 1.28 
 
 8.45 
 
 1.00 
 
 Amount Saved 
 for Victims. 
 
 $ 8.75 
 10.27 
 21.60 
 17.44 
 66.00 
 39.32 
 51.00 
 13.40 
 18.40 
 26.75 
 17.90 
 6.00 
 29.60 
 11.00 
 21.25 
 10.75 
 23.25 
 18.00 
 13.00 
 14.00 
 39.00 
 13.42 
 10.30 
 10.00 
 
 SPECIFIC CASES FOUND IN THE RECORDS OF THE FIRST STATE 
 INDUSTRIAL WAGE LOAN SOCIETY. 
 
 Key No. as 
 
 
 Appearing in 
 
 Amount 
 
 Appendix A. 
 
 Demanded 
 
 "19-102-185-68-74-14 
 
 $391.40 
 
 26-58-113-64-66-46-47 
 
 209.50 
 
 24-1 
 
 65.00 
 
 68 
 
 48.00 
 
 *73-178-99 
 
 125.50 
 
 86 
 
 70.00 
 
 90. 
 
 70.8a 
 
 99 
 
 75.00 
 
 *103-171-52 
 
 238.00 
 
 105 
 
 45.00 
 
 115-R 
 
 138.00 
 
 120 
 
 60.00 
 
 148 
 
 60.00 
 
 172 
 
 200.40 
 
 191 
 
 144.00 
 
 Amount 
 Settled for. 
 
 $295.70 
 
 174.50 
 
 44.25 
 
 30.00 
 
 91.50 
 
 55.00 
 
 59.10 
 
 58.25 
 
 118.75 
 
 30.00 
 
 113.00 
 
 42.00 
 
 45.00 
 
 143.20 
 
 112.80 
 
 Amount Saved 
 for Victims. 
 
 $ 95.70 
 35.00 
 20.75 
 18.00 
 34.00 
 15.00 
 11.70 
 16.75 
 119.25 
 
 15.00 
 25.00 
 18.00 
 15.00 
 57.20 
 31.20 
 
 *Shows the borrower was complicated with a number of firms. 
 
 To the large number of settlements made by these two societies must be 
 added those handled at various times by members of the Tribune's Anti Loan 
 Shark Bureau. Fifteen months after it had been established Mr. Trude stated 
 "altogether approximately 5,000 accounts have been taken under consideration 
 
 25
 
 by the Bureau and the majority settled, for the Bureau has found that the loan 
 sharks have contested in court less than 3 per cent of the cases." 
 
 To these three agencies must be added the genuine services which have 
 been rendered by various other individuals in legal and advisory capacities. Of 
 late the cudgels against the loan shark have been most actively wielded by the 
 firm of Callahan and Callahan, Attorneys, who have undertaken the establish- 
 ment of a "war chest" a fund to carry on active opposition to the cult in 
 Chicago. Since April they have taken up nearly eleven hundred cases against 
 the loan shark and are now engaged in a canvass of the members of the Illinois 
 legislature with reference to loan shark legislation. A more extensive statement 
 of this firm's activities appears in another place. 
 
 While the amounts saved to the victims seem rather small, it must be 
 remembered that the loans are made to the poorer class of people and often 
 to those in extreme circumstances, and that a very few dollars saved may mean 
 a great deal. Frequently the initial loan is much larger than the figures in 
 the tables just presented would lead one to think and represent at times money 
 raised on household goods as well as advances on salary. For instance, in one 
 loan the amount borrowed was $125.00 to secure which the borrower signed 
 a note for $176.00. The Legal Aid effected a settlement without further payment, 
 saving the client $51.00. Another case was a loan of $25.00 where, after the 
 borrower had paid back $25.00, an additional $24.00 was still demanded, making 
 a total of $49.00. Settlement was made for $2.75, a saving of $21.25. Such 
 cases could be extended indefinitely. 
 
 Important as is the actual cash saving to the persons concerned, these 
 settlements mean far more than the money involved. In many instances they 
 represent the rescuing of people who have been for years in financial servitude, 
 people who have long since all but reconciled themselves to hopeless slavery. 
 
 Loan Shark Substitutes. 
 
 Mr. Raymond B. Fosdick, Commissioner of Accounts in New York City, in 
 discussing remedial loans before the Academy of Political Science November 
 llth, 1911, epitomized a truth which all students of the loan shark situation 
 sooner or later discover: 
 
 "Before any campaign to oust the loan shark can be effected, there must 
 be some agency equipped and prepared to take its place. Indeed no cam- 
 paign of extermination will ever succeed, no amount of condemnation will 
 ever be effective, no negative laws, however drastic, can permanently relieve 
 the present abuses; as long as we have citizens who want to borrow money 
 and we shall always have them so long will loan agencies of some kind 
 continue, and it is only the better kind that will succeed in driving out 
 the worse." 
 
 This desire to borrow money may be legitimately born of necessity growing 
 out of extremeties beyond the power of the individual to avoid. It may be 
 born of lack of thrift or extravagance, but there will always be persons needing 
 funds to tide over emergencies and willing to go to almost any length to secure 
 them. If legislation does no more than drive the loan shark under a more 
 careful cover, it will only accentuate the evil by forcing him to still more 
 exorbitant charges for the greater risk involved; and there will always be men 
 willing to take the risk if it can be made profitable. When legislation against 
 the loan shark goes on the statute books it is necessary that there be set up 
 substitutes for them, agencies of one sort or another that can minister to the very 
 real need which has for centuries been the fundamental reason for the existence 
 of the loan shark. 
 
 Already a number of substitues have appeared. We may briefly sketch them 
 as follows: 
 
 26
 
 Charitable Loan Agencies. The earliest of these were probably found in the 
 monts de Picte (literally mounts of pity) which originated in Italy about the 
 middle of the fifteenth century. They began largely as religious enterprises, 
 although they were later put on a somewhat secular basis by the supervision 
 given them by the State. They were designed to provide borrowing resources 
 for the very poor who, having nowhere else to turn, were preyed upon the loan 
 sharks of their day. Originally they were wholly philanthropic in character and 
 charged the borrower no interest. Wealthy philanthropists were depended upon 
 to supply the loan fund, expecting no return therefrom. On such a basis they 
 were not successful because no guarantee existed as to adequate resources for 
 carrying on the organization. In order to secure a dependable fund the man- 
 agement was finally compelled to offer a remuneration interest to those whom 
 they called upon to provide the working capital. After that change was made 
 the organization had better fortune and at one time or another its branches 
 have been found in most of the countries of Europe. They are now supplanted 
 by more up-to-date organizations. 
 
 A number of religious organizations have today established, as a part of 
 their system of benefactions, loan funds which are at the disposal of their own 
 communicants. Notable among these is that of St. Bartholomew's Parish of 
 New York City whose loans during 1915 aggregated close to $100,000.00. Among 
 Jewish congregations it is common to find loan funds established. During this 
 investigation the Department has obtained the addresses of no less than 25 
 of these in Chicago. The statement is made by Mr. J. M. Wolfsohn, Editor of 
 the "Jewish Voice" that scarcely a congregation of orthodox Jews can be 
 found in the city which does not have such a provision. Rabbi Saul Silber 
 states that the leading one is the "Rabbi Isaac Elchonah Loan Society." It 
 has some 15 smaller societies scattered about the city, and their total loans 
 all made without interest amount to over $150,000 a year. 
 
 Loan funds are established as features of certain charitable societies. The 
 Woman's Loan Association, affiliated with the Chicago United Jewish Charities, 
 makes free loans totaling more than $50,000 a year to poor Jews. The Jewish 
 Aid Society, and the United Charities of Chicago also make loans under excep- 
 tional circumstances but do not operate a regular loan department. 
 
 Employers' Loan Funds. With the idea of "welfare" work for their 
 employes gaining ground every day, many large employers of labor have 
 added to their benefit features a loan fund upon which their employes can 
 draw in emergency. Certain of these charge no interest at all, others require 
 the legal rate. Several of the largest concerns of Chicago are among these, 
 but prefer to operate the fund without publicity, fearing that if its existence 
 were too generally known their employes might seek to make too free use of it. 
 The methods of one of these concerns is contained in a letter from their welfare 
 secretary, who requests the Department to withhold the Company's name in 
 publishing the facts: 
 
 "1. Our superintendents frequently advance part of a man's wages 
 in order to help him through an emergency, the amount being deducted 
 from his check on pay day. While this seems a fair and sound method 
 of handling the problem, you will probably be surprised to find how care- 
 fully it has to be watched. There' is a type of individuals (of whom there 
 are many) who find this way of meeting their difficulties so much easier 
 than the wiser one of using thrift that there is a possibility of simply 
 breaking down the self-restraint which is so important. 
 
 "2. At this office, one of our officers, who was formerly a banker 
 himself, makes loans in exactly the same way that a banker would make 
 them. If the employe has security to give the loan is made at the usual 
 rate of interest, the security being held until payment is completed. 
 
 "3. I have charge of a loan fund which is used for extreme emergency 
 in the case of employes who are usually not able to give any security and 
 may be unable to pay interest. The employe gives a note promising to 
 pay in monthly installments of a small amount beginning on a certain date. 
 
 27
 
 These cases are Investigated very carefully in order that we may know just 
 how much the man can stand and how soon he can begin payments. 
 
 "The employe usually makes good on these loans, as we have lost almost 
 nothing in the three years in which I have handled the fund. If a loan is 
 given to a man who has been in the hands of loan sharks, we handle it in 
 the following manner: One of our attorneys visits the loan company and 
 makes an offer of cash payment with a reasonable rate of interest, such as 
 the law would require. The loan companies are usually very glad to settle 
 for cash." 
 
 Employes Co-operative Loan Associations. A number of important concerns, 
 recognizing the paternalistic character of the foregoing, instead of setting up a 
 fund of their own for the purpose, encourage the organization of co-operative 
 associations among their employes, who from their own savings, provide a fund 
 to be used by themselves. The element of thrift which is encouraged by this 
 plan is fully as important a result of the arrangement as that of furnishing 
 temporary financial assistance to borrowers. "The Celluliod Club Savings & 
 Loan Department" of the Celluloid Company of New Jersey, is made up entirely 
 of employes of the Company and is managed by them. "The Mutual Investment 
 Association of the Postal Telegraph Company" is one of the same character. 
 Such co-operative companies are vastly more popular with the employes than 
 are those operated by the Company itself. Mr. S. T. Simmonds, manager of the 
 Celluloid Club, explained why, in his paper before Academy of Political Science 
 in November 1911: "Employes would object to their employers knowing just 
 how much they were saving, and the best class of employes would suffer rather 
 than ask for assistance through the office. There is a vast difference between 
 telling ones troubles to a fellow-employe and telling that same story to an 
 official." 
 
 In such a co-operative association, whatever income is derived from fines, 
 charges for loans or any other source, after expenses are paid, goes back into 
 the general fund and belongs to the depositors themselves. No outside agency 
 is profiting by their necessity, and they are self-respecting in their personal 
 independence secured in this way. 
 
 Employes' loan associations are in existence among a few Chicago firms. 
 More should be organized. 
 
 The Credit Union. In 1909 Massachusetts enacted a law which has since 
 been widely copied in other states, permitting individuals "associated by reason 
 of residence, occupation, fraternal association or otherwise" to organize and 
 operate a credit union whose objects, as explained by Mr. Ham before the New 
 York State League of Savings & Loan Associations, in 1915, are: (1) To en- 
 courage thrift by providing a safe, convenient and attractive medium for the 
 investment of savings of the members; (2) To promote industry and eliminate 
 usury and extortion by enabling its members to borrow for productive and other 
 beneficial reasons at a reasonable cost; and (3) To train its members in business 
 methods and self-government and to educate them to the full realization of the 
 value of co-operation. 
 
 The idea, while new to this country, is one of long standing, having been 
 successfully known abroad for sixty-five years. "Membership is based upon 
 some common bond or community of interest" such as common occupation or 
 employment, church or lodge membership or neighborhood association. The 
 loan fund is one erected by savings of the members themselves, being kept up 
 by purchase of shares in the union. It can be drawn upon only by members 
 and by them only after a credit committee decides that the loan is desired for 
 a constructive and beneficial purpose. The character of the member is the 
 chief determinant in Question of whether or not he shall be admitted to mem- 
 bership and whether after being admitted the loan shall be granted to him. 
 
 Except in the details of the organization and the fact that it is subject to 
 state supervision, the employes co-operative loan associations already discussed, 
 might very well be classified as credit unions. It would take very little trouble 
 to turn them into bona fide unions. 
 
 28
 
 It has been estimated that there are over sixty-five thousand credit unions 
 in different parts of the world with a membership closely approaching 15,000,000, 
 whose annual business runs up to seven billions of dollars. To these figures 
 which he has compiled, Mr. Ham adds the following statement concerning its 
 growth : 
 
 "Russia which, in 1904, had 378 unions, now has 14,000. On January 
 1st, 1914, there were 18,000 unions in Germany making loans to members 
 in one year of over a billion and a half dollars. In 1909 Japan alone had 2,000 
 unions, and the little country of Roumania, where the movement started, 
 in 1902 had 2,500 unions with a membership of 350,000, or 35 per cent of 
 the entire population of the country." 
 
 In 1909 there was not a single credit union in the United States. After 
 Massachusetts led the way, New York and a number of other states followed, 
 a step which Illinois should be urged to take. In its adherence to self-help as 
 the best help, the union will fill a place which will enable the workman to save 
 himself from the crushing burden imposed by his loan shark relationship. 
 
 The Morris Plan. In 1910 there were organized in Norfolkj Virginia, the 
 first of a series of institutions known as the "Morris Plan Banks," which now 
 extend to two dozen or more cities of the United States. Originated by Mr. 
 Arthur J. Morris of Norfolk, the plans are advertised as "owned and developed 
 by the Industrial Finance Corporation," 52 William Street, New York, from 
 whom permission must be obtained before a bank may be established in new 
 territory. Usually a fee is charged by the corporation for the exclusive right 
 to the use of the plan in a given city. 
 
 While frankly operating as a commercial enterprise, one of the largest claims 
 which the company puts forward for recognition is its character as a substitute 
 for the loan shark. The plan of operation as explained by the company is, in 
 brief, the following: 
 
 A borrower desires a loan of $100.00. He first gives his note backed by two 
 endorsers for the $100.00 and pays the legal rate of interest say $6.00 in 
 advance. In addition a fee of $2.00 is charged to cover the cost of investigating 
 the applicant and his endorsers. He then agrees to purchase, at $2.00 a week 
 for fifty weeks, a "class C" Installment Investment Certificate. This certificate 
 is assigned as collateral for the. loan. At the end of fifty weeks the borrower 
 has paid $100 on this certificate. Two weeks later his note falls due. He can 
 then withdraw the $100 paid on the certificate and pay the note, thus closing the 
 transaction. 
 
 From the foregoing description of how loans are made it will be seen 
 that each week the Morris Plan companies receive from borrowers in payment 
 on "class C" Investment Certificates, purchased and pledged as collateral, an 
 amount equal to 2 per cent of the outstanding loans. Therefore in addition 
 to loaning the amount of its capital at 6 per cent the Company reloans 2 per 
 cent of each loan each week. In other words, a company having already charged 
 one borrower 6 per cent on each dollar that he has borrowed, immediately loans 
 that same money, as soon as an installment is paid, to someone else at another 
 6 per cent. It also reloans the aggregate amount of interest, the original 
 $6.00, which was deducted in advance. This process enables the Company to 
 earn a gross profit on each dollar of capital of 13 per cent and up, according to 
 the activity with which its funds are turned over. 
 
 The Morris Plan seems to have met with disapproval from the Division of 
 Remedial Loans of the Russell Sage Foundation and from the Cleveland Chamber 
 of Commerce. It has, however, received cordial comment from a number of the 
 New York papers the Times. Mail. Post, and World. The Financial Chronicle, 
 American Banker. Wall Street Journal, the Outlook. The Survey, The independ- 
 ent, and a number of others have also mentioned it favorably. The Morris Plan 
 does not at present provide for loans of less than $50.00, thereby leaving un- 
 touched one of the most important fields for service. Persons are legion who 
 
 29
 
 desire to borrow smaller amounts than $50.00 to tide over an acute, although 
 small, emergency. 
 
 Efforts have been made to promote the Morris Plan for Chicago, but it is 
 not possible to organize it under the existing State law. 
 
 The National Federation of Remedial Loan Associations. The most effective 
 agency which has yet come into existence to meet the loan shark evil by com- 
 petition is found in a group of organizations which are affiliated with the 
 National Federation of Remedial Loan Associations. The association was 
 formed at Buffalo in 1909, largely through the earnest endeavors of Mr. W. N. 
 Finley of Baltimore. It was composed originally of fourteen companies which 
 were at that time working single-handed in 13 cities of 10 states, to combat 
 the activities of the professional usurer by providing loans at a much lower rate 
 than that of the loan shark. The members declared themselves, "desirous of 
 promoting the work in which we are engaged to the end that similar associa- 
 tions may be organized throughout the country wherever needed," and effected 
 a permanent organization having as its object "the formation of local organiza- 
 tions to guide and direct persons interested in the work and to contemplate 
 organizing remedial societies by giving such information and advice concerning 
 legislation, finance, problems of legislation, and general information necessary 
 for organization and management." They declared as eligible for membership 
 "all representatives of remedial loan societies and such others as are known to 
 be in complete sympathy with the movement to compel recognition of the laws, 
 regulate chattel, salaries and pawning loans and protect borrowers from 
 extortion." 
 
 The Federation has grown until now it includes 39 societies operating 
 offices in 34 cities of 20 states and the province of Ontario. A roster of its 
 membership and its constitution are found in Appendix D of this report. 
 
 These 39 societies are divided into three classes, namely those that make 
 loans upon security of chattel mortgages; those that make loans upon security 
 of personal property pledged or pawned with them; and one which loans upon 
 security of wage assignments. It is in this latter field that some of the greatest 
 abuses of the loan shark have been perpetrated, owing to the fact that a loan 
 made upon a wage assignment gives the lender a power over the borrower 
 growing out of contact with his employer. 
 
 Most of these societies have been brought into existence under special laws 
 which permit a higher rate of interest to be charged than is permitted to 
 lenders not so organized. (See Appendix B for a digest of laws under which 
 the various states have organized remedial loan societies). This rate is from 
 1 to 3 per cent in the case of pawners and chattel companies and is 3 per cent 
 a month in the case of the one wage loan society. This rate seems exorbitant 
 and differing from that of the loan shark only in degree to one confronted with 
 the proposition for the first time. The necessity of charging a rate so much 
 higher than the usual contract rate is not obvious at once, but when one begins 
 to examine closely into the matter as experts have done, he discovers that the 
 smallness of the loan and the brief time for which it is made constitute a much 
 heavier overhead expense for handling than is the case with the ordinary loan. 
 Moreover the lenders are dealing in shakier securities than is the case with 
 hanks, and losses are correspondingly higher. Two of these 39 societies are 
 operating in Chicago. The First State Pawners Society, loaning only upon 
 pawnable security; and the First State Industrial Wage Loan Society, loaning 
 only upon wage assignments. Both of these are limited by law to a 6 per cent 
 return upon funds invested, and both are subject to close supervision. Each 
 has an appointee of the Governor of the State and of the Mayor of the City upon 
 its Board of Directors. Fuller statements concerning them both will be found 
 in another part of the Bulletin. 
 
 In looking over the various types of substitutes one may roughly group them 
 In four classes: 
 
 30
 
 The purely philanthropic which, whether under a religious organization 
 or as a non-sectarian charity or fraternal order, operates a loan fund, charging 
 no rate of interest to the borrower. In this respect it is a charity pure and 
 simple and should be considered just as much so as a gift of food or clothing or 
 rent 
 
 The semi-philanthropic organization is established primarily for the sake 
 of the borrower, but it is capitalized and is run upon business principles, not 
 only paying expenses, but giving a small profit to its backers. The members of 
 the National Federation of Remedial Loan Societies are almost entirely of this 
 character. These are business organizations with a social purpose, and should 
 be stated as such. They are not charitable in the sense of giving something 
 for nothing, and they are not commercial in the sense of being primarily a 
 money-making enterprise. Their dividends are usually limited by law. 
 
 The purely business type is organized primarily as a matter of investment. 
 While it may serve a definite social purpose, it is not organized for that purpose 
 and performs it only incidentally. These organizations keep within the law and 
 so are not to be confused with the loan shark whose characteristic is that of 
 usurious money-lending. 
 
 The self-help type probably the most constructive of all is the fourth which 
 is exemplified in the credit unions and employes co-operative associations already 
 described. They put a premium upon thrift and saving and the element of 
 mutual benefit, appraise character at its highest, and recognize it as a definite 
 form of security. An additional advantage resides in the fact that they are 
 independently organized and so their success or failure depends upon them- 
 selves. 
 
 V. CONCLUSIONS AND RECOMMENDATIONS. 
 
 The community must come to realize that in dealing with the usurer it is 
 dealing with a power of first magnitude, one that is backed by large capital, in 
 some cases by political and personal influence, and that it is based upon a 
 definitely correlated organization. Against such entrenched forces something 
 more is needed than an occasional outburst of righteous indignation. It is a 
 system which must be undermined, and this cannot be accomplished by the 
 elimination of an occasional operator or two. Loan shark organization must be 
 opposed by a more powerful organization; adequate legislation adequately en- 
 forced must be put on the statute books; adequate provision must be made to 
 serve the need which the loan shark has made his peculiar property in a 
 cheaper and better way; the loan shark must be met with his own weapons 
 and in his own field; competition must be afforded which he shall be compelled 
 to meet. 
 
 Unhappy as the situation is at the present time with reference to the 
 business of extortionate money-lending, as has been set forth in the preceding 
 pages, the situation is by no means hopeless. It is incumbent, however, upon 
 the public spirited citizens of Chicago to get behind an organized movement 
 against the business. In such a movement the Department of Public Welfare 
 is ready to assist. The materials which have been assembled during the pro- 
 gress of this investigation are freely at the service of the public if they can be 
 used to advantage against the business. 
 
 The importance of substitutes for the loan shark has been discussed. Re- 
 ligious and philanthropic societies, employers' loan funds, and co-operative loan 
 associations, fill a place with a certain limited part of the population. But for 
 the vast majority the only relief lies in the establishment of remedial loan 
 societies open to the general public. These should be closely supervised and 
 should have dividends returnable to investors limited to such a percentage that 
 there will be no inducement to enter the business because of large profits. 
 Interest charges should be made as low as is consistent with business security, 
 
 31
 
 frankly recognizing the fact that such a business must charge a higher rate 
 than banking interests, because of the greater risk, and the heavier overhead 
 expense. Borrowers should be safe-guarded by law in every possible way, that 
 extortion may not be practiced. 
 
 There should be remedial loan provision for every form of legitimate secur- 
 ity. We may distinguish four forms: First wage assignments; second, portable 
 chattels of a pawnable character; third non-portable chattels, such as household 
 goods, etc.; and fourth, personal character. 
 
 At the present time there are in Chicago remedial loan societies covering 
 the first two of these: The First State Industrial Wage Loan Society takes 
 wage assignments as security; the First State Fawners Society receives portable 
 chattels and pawnable security. The other two fields are still uncovered, and it 
 does not seem that the state law as it exists at present would permit their 
 erection. This is a matter which should be remedied by a change in legislation. 
 
 The Department of Public Welfare therefore recommends: 
 
 1. That steps be taken to provide remedial loan societies which will accept 
 non-portable chattels as security for small loans; and 
 
 2. That steps be taken to provide remedial loan societies which will make 
 it possible for personal character to be recognized as a form of security. This 
 does not mean that any person shall be able to borrow "upon his face," nor 
 that any stranger making application for a loan to the remedial society shall 
 be granted it right away just because he looks honest. It does mean that 
 machinery should be provided whereby a person of good character, who can 
 establish that fact by his ability to secure two reliable endorsers, shall be al- 
 lowed to borrow, within certain definite limits, without other security than these 
 endorsements. It is in this field that there resides at the present time probably 
 the greatest need not yet covered. The man who is out of work or who is in 
 temporary stringency on account of his income being temporarily cut off has 
 no recourse which he is willing to employ. Some provision should be made 
 whereby he can be tided over and still keep his self-respect. 
 
 In the establishment of such societies and in the regulation of the small 
 loan business in general, there are a number of important phases which should 
 be covered. It is the opinion of the Department of Public Welfare, after con- 
 ference with some of the leading authorities in the field, that any law to he 
 satisfactory must include the following items: 
 
 1. No person or corporation, unless they are licensed and supervised, shall 
 be allowed to make small (loans of $200 or $300, or less) whatever the 
 form of security. 
 
 2. The license should be issued by a department of the State of Illinois; 
 this might be in a department especially created for the purpose, but should 
 preferably be a branch of the state bank department or the state auditor's 
 office. The license should be granted to be renewed annually. 
 
 3. The person or corporation so licensed should be required to file a bond of 
 not less than one thousand dollars, this to constitute a fund from which any 
 damages could be drawn in case they should be awarded by the court to a 
 contestant against the money lender. 
 
 4. The supervising authority should be empowered and required to examine 
 the books and business methods of licensees, at least once a year, and they 
 should be required to provide him with a detailed annual report. The supervis- 
 ing authority should be empowered and authorized to refuse to issue a license 
 when, in his judgment, there is danger that the law will not be observed; he 
 should under no circumstances issue one without previous investigation to de- 
 termine the applicant's fitness to hold a license. The power to revoke licenses 
 upon sufficient grounds, should also reside in the supervising authority. He 
 should have power to make necessary rules and regulations. 
 
 5. The rate of interest should be not to exceed 3 per cent, a month, and no 
 additional fees of any sort should be allowed. Many times the money lender 
 exacts usury under other forms than those which are technically classifiable 
 
 32
 
 as interest. "Renewal fees," "cost of extension," "appraisal charges," "expenses 
 of investigation," etc., are often nothing else than usury in disguise, and they 
 should be carefully guarded against to the end that the spirit as well as the 
 letter of the law may be observed. Interest, moreover, should be charged 
 only on unpaid balances, and it should be paid only after it has been earned 
 never in advance. 
 
 6. A definite limit of earnings permitted to the money lender should be 
 made The First State Industrial Wage Loan Society and the First State 
 Fawners Society are limited to dividends of 6 per cent. 
 
 7. The borrower should be given copies or memoranda of all papers signed 
 by him in connection with the loan, a copy of the law regulating charges, and 
 a clear statement of the terms of the loan. He should be given receipts for all 
 payments made, and when his loan is liquidated the papers originally signed 
 should be returned. 
 
 8. Loans made at illegal rates should be made void and unenforcible. 
 
 9. Penalties of fine and imprisonment should be provided for persons 
 operating without license, and for licensed operators who violate the law. 
 
 The Department of Public Welfare hopes that it may be of assistance in 
 getting legislation of the foregoing character written into the statutes of 
 Illinois. 
 
 With the field covered as fully as it would be should such recommendations 
 as the above be put into effect, it is realized that there would still remain the 
 hopelessly improvident, the person who is willing to gratify tastes which are 
 beyond his means, the person who cannot save money, and who is willing for 
 the pleasure of the moment to pledge away his future earnings. It is not 
 desirable that any provision should be made to encourage persons in these 
 tendencies. No loan should be made which is not constructive; that is, unless it 
 contributes in some way to the actual well-being of the person who borrows. 
 This should be carefully determined by every society in every case, and will be 
 determined by all who operate conscientiously. 
 
 33
 
 SOME LEGISLATION IN ILLINOIS WITH REFERENCE TO USURIOUS 
 
 MONEY LENDING. 
 
 By 
 
 DANIEL P. TRUDE and M. MARSO. 
 
 The language of the State of Illinois with reference to the rate of interest 
 which may be charged is the following (Kurd's Revised Statutes, 1915-1916, 
 p. 1580, chap. 74, sections 4, 5 and 6) : 
 
 "SEVEN PER CENT MAT BE CONTRACTED FOR.] In all written contracts it 
 shall be lawful for the parties to stipulate or agree that seven (7) per cent 
 per annum, or any less sum of interest, shall be taken and paid upon every 
 one hundred ($100) dollars of money loaned or in any manner due, or 
 owing from any person or corporation to any other person or corporation 
 in this State, and after that rate for a greater or less sum, or for a longer 
 or shorter term, except as herein provided. 
 
 "No GREATER RATE SHALL BE CONTRACTED FOR.] No person or corpora- 
 tion shall directly or indirectly, accept or receive, in money, goods, discounts, 
 or thing in action, or in any other way, any greater sum or greater value, 
 for the loan, forbearance or discount of any money, goods or thing in action, 
 than as above prescribed. 
 
 "PENALTY FOR CONTRACTING FOR MORE THAN SEVEN PER CENT.] If any 
 person or corporation in this State shall contract to receive a greater rate 
 of interest or discount than seven (7) per cent upon any contract, verbal or 
 written, such person or corporation shall forfeit the whole of said interest so 
 contracted to be received, and shall be entitled only to recover the principal 
 sum due to such person or corporation. And all contracts executed after 
 this act shall take effect, which shall provide for interest or compensation 
 at a greater rate than herein specified, on account of non-payment at 
 maturity, shall be deemed usurious, and only the principal sum thereon 
 shall be recoverable." 
 
 This is the law as it stands on the statute books of Illinois at the present 
 time, in violation of which the loan shark is extensively operating. It is a 
 prohibition practically without penalty, inasmuch as the money lender is 
 guaranteed his principal in any event. And it has been held by the courts 
 that even usurious interest cannot be recovered once it has been voluntarily 
 paid by the borrower. 
 
 It is this law which makes the loan shark's business absolutely safe as well 
 as a most remunerative occupation. The usurious money lender may safely 
 count on the fact that at least 99 out of every 100 borrowers do not know that 
 this is the law. And he may safely expect that few of those who do know the 
 law will be in a financial position to invoke it. If the law is invoked nothing 
 comes of it which can in anyway interfere with his further operaton. 
 
 Wth reference to wage assignments as security in particular: 
 
 Prior to the amendment of Section 18 of the Practice Act, which amendment 
 was passed in 1915, the person who borrowed money from a loan shark was 
 assigned his wages to secure the payment of the debt was practically at his 
 mercy. 
 
 A person who borrows money has a right to assign his wages earned or 
 to be earned from his present employer to secure the payment of the money he 
 so borrowed, and the loan shark has a legal right to accept such an assignment, 
 and it is valid and binding on the parties interested (Massie v. Cessna. 239 111. 
 352), and prior to the passage of the amendment to Section 18 of the Practice 
 Act in an action brought by the loan shark against the employe on the assign- 
 ment of wages so given to secure payment of the debt, the loan shark was 
 entitled to recover from the employer, the amount due to the employe (the 
 borrower) from the date notice of such assignment was given to the employer 
 to the time of the commencement of the suit. This was irrespective of the 
 amount that might be due to the loan shark from the employe, or whether 
 
 34
 
 that amount exceeded or was less than the amount due from the employer to 
 the employe (the borrower). The courts were bound to enforce the assignment 
 of wages strictly. 
 
 If the amount of wages due the borrower, and recovered by the loan shark 
 from the employer, exceeded the amount due the loan shark from the borrower, 
 the borrower was relegated to an action against the loan shark to recover the 
 difference. (Independent Credit Company v. South Chicago City Railway Co., 
 121 111. App. 595.) 
 
 The act of 1915 above referred to provides inter alia: 
 
 "that in all cases in which the chose in action sued upon shall have been 
 assigned for the purpose of securing the payment of an indebtedness from 
 the assignor to the assignee thereof, and in which the chose in action so 
 assigned consists of wages due or to become due to the assignor thereof 
 from the defendant in such action, at least five days written notice of the 
 pendency of such suit shall be served upon the assignor of such chose in 
 action, before the trial of the same; and upon application of the assignor 
 of such chose in action the court shall allow said assignor to interplead and 
 be made a party to such action; and said assignor, or the defendant to said 
 suit in behalf of said assignor, shall be allowed to set up or affirmatively 
 maintain any just set off, discount or defense which said assignor may have 
 to said assignment of said chose in action, or to the indebtedness the payment 
 of which is secured by the assignment of said chose in action; and the 
 court by jury or otherwise, shall ascertain the amount of such indebtedness 
 remaining due and unpaid from the assignor to the assignee of such chose 
 in action and the judgment, if any, against the defendant in said suit 
 shall not exceed the amount so found to be due and unpaid from the 
 assignor to the assignee of said chose in action, and judgment for the 
 balance, if any, remaining due from the defendant, upon said assigned 
 chose in action, shall be rendered in favor of the assignor and against the 
 defendant in said suit or proceeding; and the court may make such order 
 as to the costs of said suit as may be equitable." 
 
 It will readily be seen that under this act, Courts of Law are virtually 
 vested with equitable jurisdiction in action brought in such courts on assign- 
 ments of wages given to secure the payment of a debt, and can in such actions 
 inquire fully into the dealings and transactions had between the parties and 
 equitably adjust the same and do complete justice between the loan shark and 
 his victim. 
 
 35
 
 THE FIBST STATE INDUSTRIAL WAGE LOAN SOCIETY. 
 
 By 
 ARTHUR B. HILL, General Manager. 
 
 The "loan shark" question, or rather the problem of handling employes 
 who are forced to borrow money for personal needs but who have no bankable 
 security has been a great source of worry to employers of large concerns for 
 many jfears. Many ideas and plans have been brought forward and tried out, 
 some proving successful for that particular concern trying them out, while 
 other ideas and plans that sounded plausible in theory have not worked out 
 when put into practice. The good work has not been as extensive as it should 
 have been. 
 
 Some years ago many of our most prominent establishments passed a rule 
 among their employes, i. e. to borrow money from a so-called "loan shark" 
 would mean immediate discharge from their service. They hoped that in 
 passing this drastic rule they would be able to eliminate the evil from their 
 ranks. The effect, unfortunately, was just the opposite from what they in- 
 tended it should be. They forgot that many of the loans made from the "loan 
 sharks" were for absolute necessities and that the only place open for them 
 to go for money was to the "loan shark" and take a chance of their employer 
 not knowing of the transaction. This rule assisted the "loan shark" in collect- 
 ing usurious interest, for should the borrower become delinquent the loan agent 
 would endeavor to collect his money by threatening to inform the employer of 
 the fact that his employe had become a borrower from him and the employe 
 knew that this would mean his position. Instead of lessening the evil, the 
 employers unconsciously assisted the "loan shark" in his illegal trade. Un- 
 fortunately, there are still some employers who think that they can eliminate 
 the "loan sharks" by threatening their employes with discharge, but most of 
 the larger concerns are convinced by experience that the rule has had the 
 opposite effect from that intended. Many concerns have established a loan 
 bank where any employe of the concern who needs money and has a good 
 reason for borrowing can secure a loan at rates of interest varying from nothing 
 up to 5 per cent, a month. This method of fighting the illegal money lender 
 has proven very successful and has created a very friendly feeling between 
 employer and employe, the latter feeling that his concern has a particular 
 interest in his welfare and is desirous of assisting him to progress. It would 
 be a blessing if more concerns would adopt this method of establishing banks, 
 the funds of which are to be loaned to their employes. 
 
 The trouble with a small loan bank established by a private concern is that 
 the benefit is confined only to the employes of that particular concern. An 
 employe who happens to be working for a concern that has not yet started a 
 bank must go to the "loan shark" for relief. 
 
 The Industrial Club of Chicago, composed of prominent men of this city, 
 undertook to give the loan question the careful study and thought that was 
 necessary, to see if there was not some way of improving conditions for wage 
 earners in general. As a result of their study, a law was passed allowing the 
 formation of the First State Industrial Wage Loan Society, a $50,000.00 cor- 
 poration, the stock of which was fully subscribed by its members. Within a 
 year it was found necessary to double the capitalization. The purpose of this 
 Society is to loan to wage earners regardless of where they are employed. The 
 illegal loan companies have found in this Society a real competitor that meets 
 them on their own grounds with their own weapons. If a person owes one or 
 more "loan sharks" he may go to this Society and they will figure up a reason- 
 able amount of interest due the money lender and make him a legal tender and 
 demand the signatures of the borrower on all papers that he may have signed at 
 the time he made the loan. For this service the Society charges nothing. In 
 the case that the "loan shark" victim does not have enough money to square 
 up with the illegal money lender, the Society will loan him enough money to 
 put him on his feet. Should the "loan shark" refuse the Society's legal tender, 
 the Society requests the employer to ignore the "loan shark's" assignment of 
 wages, in the case that he has filed a notice of the same with the employer, for 
 
 36
 
 which they guarantee the employer against loss, should he be sued for failure 
 to recognize the illegal assignment of wages. The Society furnishes without 
 cost to the employer a competent attorney to defend suits of this nature. 
 
 The First State Industrial Wage Loan Society opened its doors for busi- 
 ness on November 7th, 1913, at 25 North Dearborn street. The co-operation 
 that the Society has received at the hands of employers of the City of Chicago 
 has been wonderful. All lines of business have joined with them to make the 
 Society a success. The hopes of the originators of this movement have been 
 more than realized. The loss on bad accounts has been surprisingly low. The 
 success of this Society has been most gratifying to all concerned. This Society 
 is the only remedial salary loan society in the United States. There are several 
 pawn and chattel mortgage remedial loan societies, but only one strictly salary 
 loan society. This Society is a member of the National Federation of Remedial 
 Loan Associations, of which thirty-five other remedial loan companies extend- 
 ing from coast to coast, are members. The movement of this Federation was 
 started by the Russell Sage Foundation several years ago. 
 
 The First State Industrial Wage Loan Society, in its three years of opera- 
 tion, has made the following record: 
 
 Total number of loans made 7,046 
 
 Total amount of money loaned out $401,290.00 
 
 The outstanding loans on October 28th,-1916 95,503.29 
 
 Saved "loan shark" victims about 15.000.00 
 
 Over 2,500 settlements have been made with the "loan sharks." 
 
 The law under which the First State Industrial Wage Loan Society operates 
 permits that only a dividend of 6 per cent, a year be paid the stockholders. 
 
 The first year the Society's expenses were $3,120.08 more than its revenues. 
 In 1915 they not only recovered their loss but gained a surplus of $922.32. At 
 the end of this year they hope to have a substantial surplus, and in time, which 
 they hope will not be far away, reduce their rate of interest to the borrower. 
 
 The stockholders of this society decided to experiment with the salary loan 
 business for two reasons: first, because it was the most abused branch of the loan 
 business, and second, to demonstrate the falsity of the argument held by the loan 
 shark that it is impossible to make salary loans at a lower rate than 10 per cent, a 
 month, due to the great risk and actual loss incurred. 
 
 The main feaures of our work may be thus summarized: 
 
 1. We not only anticipate the need for a loan, but we also fight the loan 
 shark on behalf of his victim. 
 
 2. We enlist the employers on behalf of the distressed employes to such 
 a degree that many employers send their men to us for loans. 
 
 3. We make a study of the reasons given for obtaining loans, and try to 
 effect a change in conditions. 
 
 We have not striven to make a record for volume of business. We have 
 scrutinized very closely the reasons for borrowing, and the purpose for which 
 the money is to be used must be a legitimate one. This matter is investigated 
 as thoroughly as the borrower himself. When a man seeks a loan from us, in 
 effect we put a hand on his shoulder, call his employer and friends and go into 
 conference with them all to find out how best to tide over the period of distress 
 and stringency. We do not want the pound of flesh. We wish to lift every man 
 to his feet, so that he may again stand erect and look every man in the eye. 
 A loan with us is an honest loan, or we do not make it. 
 
 The good work of our Society has just begun. Backed by men of wealth, 
 influence and high standing in the community, recognized as a philanthropic 
 undertaking in many senses of the word, and doing a work that is undeniably 
 good, it undoubtedly will prove its basic principles to be sound, if it has not 
 done so already. 
 
 The day for an exorbitant rate of interest on salary or chattel mortgages is 
 swiftly passing. The Legislature is awakening to the fact that laws governing 
 small loans must be passed. 
 
 The City of Chicago should control the salary and chattel loan offices and 
 attach a substantial license fee in the same way that it now controls the 
 pawn shops. 
 
 37
 
 Summary of Five Months' Work by the First Industrial. 
 From January 1st, 1916 June 1st, 1916. 
 
 (1) We have had 4159 male callers and 112 female callers. 
 
 (2) We have made 1390 loans amounting to $85,810.00. 
 
 (3) Of the above 1390 loans (1288 were males 
 
 ( 102 were females 
 
 ( 994 were married 
 
 ( 396 were single 
 
 ( 58 were earning $12.00 or less per week. 
 
 ( 940 were earning from $12.00 $25.00 per week. 
 
 ( 392 were earning $25.00 or over per week. 
 
 (1088 were for home necessities. 
 
 ( 213 were to pay loan companies. 
 
 ( 399 were for sickness. 
 
 (4) We made 200 loans to real estate holders. 
 
 (6) Of the above 1390 loans made this year 534 were engaged in commercial 
 
 lines. 
 
 177 were engaged in manufactur- 
 ing lines. 
 
 345 were engaged in transporta- 
 tion business. 
 
 303 were engaged in government 
 service. 
 
 31 were engaged in miscellane- 
 ous lines. 
 
 (6) 401 settlements were made with loan companies. 
 
 (7) We paid $12,109.00 out to the loan companies for settlements and saved the 
 
 vistims $3,002.30. 
 
 Since the Start of Business in November, 1913, and Up To June 1st, 1916. 
 
 (1) We have made 5805 loans amounting to $322,070.00. 
 
 (2) We have had 23100 male and 1000 female callers. 
 
 (3) We have made 2004 loan company settlements. 
 
 (4) We have paid out to the loan companies for these settlements approxi- 
 
 mately $31,630.00. 
 
 (5) We saved the "loan shark" victims approximately $19,000.00. 
 
 The officers and directors of the society are as follows: 
 
 W. Rufus Abbott Chicago Telephone Company. 
 
 Gustave F. Fischer Rubens, Fischer & Mosser. 
 
 Louis Mohr John Mohr & Son. 
 
 Henry Beneke Hibbard, Spencer, Bartlett & Co. 
 
 D. F. Kelly Mandel Brothers. 
 
 Marvin B. Pool Butler Brothers. 
 
 William H. Rehm Hotz & Rehm. 
 
 Appointed by Governor. 
 Harry J. Powers Powers Theatre. 
 
 Appointed by Mayor. 
 
 Howard G. Hetzler Western Indiana R. R. 
 
 Arthur E. Hill General Manager. 
 
 38
 
 FIRST STATE FAWNERS SOCIETY. 
 
 By 
 SAMUEL WOLFORT, Manager. 
 
 For a number of years Chicago Pawnbrokers had no competition and were 
 reaping a harvest by charging a rate of interest from 5 per cent, a month to 10 
 per cent, a month, and even higher rates on small loans. The legal rate at all 
 times was only 3 per cent. Very little attention was paid to the law, as it cost 
 the borrower too much to invoke its aid. 
 
 The Merchants Club, an organization of Chicago's foremost citizens, some 
 years ago realized the injustice to the poor and needy in demanding such high 
 interest, and seeking a way to remedy this evil, had a bill drawn up and passed 
 by the Legislature at Springfield allowing the incorporation, under the control 
 of the State Bank Examiner, of corporations having a paid up capital of 
 $50,000.00, to organize and loan money at a rate not to exceed 1 per cent, for 
 interest and V. 2 per cent, for insurance and storage. This law provides that 
 pledges are redeemable at any time within thirteen months from the time loan 
 is made; and if not redeemed, must be sold at public auction, and any surplus 
 received from the sale of said ^pledge above the amount loaned (together with 
 the interest and cost of selling) is to be returned to the pledger upon his demand 
 at any time within two years from date of sale. 
 
 After the passage in 1899 of this act a number of members of the Merchants 
 Club subscribed for stock amounting to $50,000.00 and organized The First 
 State Fawners Society, which is now located at 27 West Washington street. 
 
 This Society was so successful that a few years later they reduced the in- 
 terest rate to 1 per cent, a month, covering all charges. 
 
 Demands for money have been so great that the capital has been increased 
 from time to time, until at present $800,000.00 has been paid in. Seeing an 
 apparently good demand in the locality, the directors of this Society, on Sep- 
 tember 1st, 1916, opened a second office at 39 South Halsted street. It was not 
 expected that success would be great the first year, but while not at present 
 on a paying basis, business is as good as was expected, and improving. 
 
 The annual report of the Society for the year ending September 30, 1916, 
 shows: 
 
 Number of loans made $ 68,435.00 
 
 Amount advanced 1,883,745.50 
 
 Since 1899 the Society has made 617,346 loans, amounting to $14,172,416.00. 
 The officers and directors of the Society are as follows: 
 
 John V. Farwell, President. Rollin A. Keyes, 
 
 John G. Shedd, Vice-President. Edward B. Butler, ^ Directors 
 
 David R. Forgan, Treasurer. Edward A. Bancroft ) 
 
 Thomas E. Donnelley, Secretary. John W. Scott, 
 
 Appointed by the Governor. 
 Samuel Wolfort, Manager. Frank H. Jones, 
 
 Appointed by the Mayor. 
 
 39
 
 A STATEMENT FEOM CALLAHAN AND CAT.T.A.HAN, ATTORNEYS. 
 
 Since April, 1916, the law firm of Callahan and Callahan has been engaged 
 in a campaign against "loan sharks." During the seven months they have 
 handled nearly eleven hundred cases for victims of the usurers. Some have 
 been settled on the basis of the actual principal due the loan concerns; others 
 on the chancery side of the Circuit and Superior Courts; for still others relief 
 has been sought and secured in bankruptcy proceedings in the United States 
 District Court. Time and money have been sacrificed in affording relief to the 
 victims. 
 
 A definite campaign of publicity against the loan sharks, with which the 
 public is familiar, has been conducted in the newspapers. 
 
 The firm is now engaged in making a poll of the members of the Legislature 
 of Illinois to ascertain their attitude toward a rational bill looking to the elimina- 
 tion of the loan shark evil. 
 
 The salient features of the bill, the firm believes, should provide: (1) for a 
 maximum rate of interest on salary and chattel loans of $300 and less, of 3 per 
 cent a month; (2) for supervision of loan concerns by the State, either by the 
 State banking department, or through a state supervisor of loan agencies; and 
 (3) for the wife's signature to an assignment of her husband's wages, and 
 other limitations on wage assignments, limitations such as acceptance by the 
 employer, recording with the City Clerk, reasonable limitation as to how long 
 an assignment shall be valid, etc. 
 
 Every letter which the firm has received in its poll of legislators has been 
 favorable, and there is every probability that a proper bill will be enacted into 
 law by the next General Assembly of this State. 
 
 JAMES E. CALLAHAN. 
 
 40
 
 Appendices 
 
 Prepared by Mabel E. Gregg and Earle E. Eubank.
 
 APPENDIX A-I. 
 
 MONEY LENDERS WHO ARE MEMBERS OF THE CLEARING HOUSE, 
 AGAINST WHOM THERE ARE DEFINITE LOAN SHARK RECORDS. 
 
 EXPLANATORY NOTE. 
 
 Appendix A comprises a list of persons, firms, companies or corporations 
 actively engaged in loaning money on salaries or chattels in the city at the 
 present time. 
 
 It would not be possible to list all those who are so engaged, as the number 
 operating sub rosa could not be determined and scarcely a firm of any import- 
 ance but has, or has had, some employe who filled that capacity among his 
 fellows to some extent. 
 
 At the outset of the study, two hundred and fifty-eight different names 
 were recorded by thorough search of every possible avenue of information. The 
 number was later augmented by a few more, but they form the basis of this 
 directory and the statistical deductions found elsewhere. 
 
 Against one hundred ninety-nine of these agencies there were found 
 definite records of complaints and adjustments in the Legal Aid Society, and 
 the First State Industrial Wage Loan Society. This number was materially 
 reduced as later investigation revealed that in many cases, one person or firm 
 was represented more than once due to the fact that said firm or person was 
 operating several different places or in one place under several different names. 
 Sometimes it developed that the technical defendant was merely an employe 
 or "dummy" acting for the real loan agent. In other cases, one person or firm 
 was found to have interest in or was a stockholder in more than one loan 
 agency in the city, and sometimes in one or more different cities and states. 
 This will explain both the later reduction in the apparent number of agencies, 
 and the key number before each entry. 
 
 This key number corresponds with the original number given each agent 
 at the beginning of the study, and is preserved throughout to retain the identity 
 of the agent. When a group of numbers appears, it indicates those firms or 
 agencies which are operated by the same owners, listed singly in the beginning 
 of the study, but which have been absorbed by the one described, or it indicates 
 that some connection exists between the individuals indicated by the numbers. 
 
 The piquant jargon of the fraternity is quoted at times. It is terse and 
 pithy expressive alike of the point in mind and the terminology which the 
 business has developed. The man who has changed his address to avoid his 
 obligation is a "skip," his account becomes a "skip account." The tracer is a 
 "skip-hunter." The loan shark's capital is his "turnover," and he speaks not 
 of his annual business, as a rule, but the "monthly turnover." 
 
 The letter "R" refers to the roster and indicates that further pertinent and 
 valuable information of a personal or general character bearing upon the agency 
 or the subject in hand, may be found in the roster on file in the Department 
 of Public Welfare. It contains the names of the owners, business associates; 
 "backers" and managers who have been found connected with the loan business 
 in Chicago during recent years. 
 
 All who were found loaning money, without regard to the extent to which 
 they engage in the practice are listed here. The importance of some is negligi- 
 ble, except as to principle. The fact, not the extent of the business, placed 
 them in the category. For the most part however, they carry on a business 
 of at least fair proportions as the -approximations indicate. Where none appears, 
 our informants did not feel qualified to make them. 
 
 42
 
 Among the 199 agencies against whom over 3,300 cases are recorded, some 
 were found to be installment houses and were retired from this group as 
 irrelevant to the present study though in themselves deserving of attention. 
 Others were "Collection," "Realization," or "Adjustment" companies, an ex- 
 planation of whose functions in relation to the loan business is described else- 
 where. These too, were retired from the list for the above reason although 
 obviously an instrument of the business. 
 
 As the list goes to press, it is fairly accurate, This is all we claim. 
 Revision has constantly been necessary since the study began as the number 
 as well as the locations, names and personnel are constantly shifting. 
 
 The balance of those removed was classed as "doubtful, absorbed by others, 
 defunct or in other lines." This is self-explanatory. 
 
 The original data upon which this study is based is on file in the Depart- 
 ment of Public Welfare, and is open to the inspection of properly authorized 
 persons. 
 
 [M. E. G.] 
 
 Key No. 
 
 2 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Specialty: Business among Fire and Police Department em- 
 
 ployes. 
 
 Incorporation: A firm of similar name was incorporated in 1914, 
 
 but identity of the two firms is not established. 
 
 Approximate Business: $50,000.00 a year. 
 
 Remarks: Not the actual name of the proprietor. 
 
 5 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society. 
 
 Approximate Business: $55,000.00 a year. 
 
 Remarks: Believed to be a relative of proprietor of No. 2 
 
 not real name, which was revealed in the course 
 of recent legal proceedings and not denied in 
 Judge Landis' court. 
 
 7 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society. 
 Approximate Business: $50,000.00 a year. 
 
 Remarks: Listed as a chattel loan agent, but has record of 
 
 salary loans also. 
 
 10 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society. 
 
 Advertising: Newspaper. 
 
 Specialty: "Five-minute loans." 
 
 Approximate Business: $75,000.00 a year. 
 
 Remarks: Claims to be a new company. 
 
 43
 
 Key No. 
 
 14 Chattel and Salary Loans, and 2nd Mortgage Real Estate Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 
 Advertising: Display in telephone directory; also newspaper. 
 
 Specialty: Quick loans $10.00 and up. 
 
 Approximate Business: $150,000.00 a year. 
 
 27 Salary and Chattel Loans. 
 
 In classified directory vider Salary Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Approximate Business: $90,000.00 a year. 
 
 Remarks: Near transportation terminal; convenient to rail- 
 
 way employes. 
 
 30 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Approximate Business: $60,000.00 a year. 
 
 35 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: Legal Aid Society: 
 
 Incorporation: Secretary of State of Illinois reports: "This com- 
 
 pany a West Virginia corporation; was licensed 
 to do business in this state January 10, 1903. 
 The certificate of authority was canceled April 
 15, 1908." 
 
 Approximate Business: $75,000.00 a year. 
 
 36 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Incorporation: Secretary of State of Illinois reports: 
 
 "This company was incorporated September 1, 
 1903, for the following purposes: for the ex- 
 amination of titles to real and personal estates; 
 to furnish information upon which to base 
 credit; to transact a general collecting business, 
 etc." 
 
 Approximate Business: $125,000.00 a year. 
 
 Remarks: Operates two offices. 
 
 37-154-193-11-1 
 
 Salary and Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Advertising: Newspaper. 
 
 Approximate Business: $250,000.00 a year. 
 
 Remarks: This concern is supposed to be under the same 
 
 management as 154 and 193; also has connec- 
 tions with a so-called adjustment company, which 
 conveniently acts as "innocent third party." 
 
 44
 
 Key No. 
 
 38-116-41-R 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society. 
 
 $20,000.00 a year. 
 
 Proprietor at one time manager of No. 41. His 
 
 brother is No. 74; comparatively new under this 
 
 name. 
 
 39 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Woman proprietor. 
 
 Loan Shark Record: First State Industrial 
 
 Legal Aid Society. 
 Advertising: 
 Specialty: 
 
 Wage Loan Society and 
 
 Newspaper. 
 
 Salary loans from $10.00 to $50.00. 
 Incorporation: Secretary of State of Illinois reports: "This com- 
 
 pany was incorporated March 9, 1886, for the 
 general investment business and the charter was 
 canceled July 1, 1902, for default in filling an- 
 nual report. 
 Approximate Business: $50,000.00 a year. 
 
 40-99-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Newspaper. 
 
 Salaried people and housekeepers. 
 
 $50,000.00 a year. 
 
 Owner No. 99 advertises in telephone directory 
 under "Investments and Securities"; company 
 is under "Salary Loans," but does chattel mort- 
 gage business also. Very long record. 
 
 41-36-74 . 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Advertising: Newspaper and handbills. 
 
 Specialty: Specializes in household furniture loans; also 
 
 offers inducements to "persons who are sick or 
 out of work, or those in debt for taxes, groceries, 
 doctor bills, etc., to allow them to put them on 
 their feet again." 
 
 Incorporation: Secretary of State of Illinois reports: "This com- 
 
 pany was incorporated May 16, 1887, for the fol- 
 lowing purpose: To lease a building or apart- 
 ment; to sub-let the same or a part thereof; to 
 solicit loans on real and personal estate for a 
 commission; to solicit purchases and sales of 
 real and personal estate for commission; to 
 transact a general collecting business, etc. 
 
 Approximate Business: $250,000.00 a year. 
 
 Remarks: Style themselves "The Old Reliable" and claim 
 
 to be the oldest loan concern in the state, doing 
 by far the largest business. Has a very exten- 
 
 45
 
 sive record with both the First State Industrial 
 Wage Loan Society and the Legal Aid Society. 
 Among the wealthiest. Operates two offices 
 here. Owners have long chain of offices here and 
 elsewhere, said to be seventy in all. An aged 
 woman is said to be technically the owner, but 
 her son, prominent in society, is the virtual op- 
 erator. The manager of this concern admits a 
 salary of $12,000 a year, and asserts that three 
 managers in various loan companies in this city 
 receive an aggregate of $24,000 a year, and that 
 his salary is no more than this company is pay- 
 ing its other managers in some of the other 
 cities. 
 
 (R) Nos 36 and 74 said to be owned by the same 
 capital. 
 
 Key No. 
 
 42 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: 
 
 Advertising: 
 Specialty : 
 
 Approximate Business : 
 Remarks: 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Newspaper (blind ads). 
 Loans on household furniture. 
 $200,000.00 a year. 
 Said to be owned by one of the wealthiest pioneers 
 
 in the business (R) ; reputed to be several times 
 
 a millionaire; operated several companies at one 
 
 time. 
 
 46-47 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Newspaper. 
 
 Loans "while you wait." 
 $200,000.00 a year. 
 Run on Boston capital. Manager said to be an 
 
 attorney. 
 
 47-46-154-194 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 48 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Newspaper. 
 $75,000.00 a year. 
 
 Apparently under the same ownership as No. 48, 
 but may be under the same direction as No. 154 
 and No. 194. 
 
 Chattel and Salary Loans. 
 In classified directory under Salary Loans. 
 
 Advertising: 
 Approximate Business 
 Remarks: 
 
 Loan Shark Record: 
 
 Advertising: 
 Specialty : 
 Approximate 
 Remarks : 
 
 Business: 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Newspaper. 
 
 $10.00 loans and upward on salary and furniture. 
 $150,000.00 a year. 
 In the same office with No. 160 reason to think 
 
 they have combinea. 
 
 46
 
 Key No. 
 
 57 Chattel Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: Legal Aid Society. 
 
 Approximate Business: $50,000.00 a year. 
 
 Remarks: Deals with Illinois Central Railway employes. 
 
 60 Salary Loans. 
 
 In classified directory under Salary Loans. . 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 $65,000.00 a year. 
 
 Is an ex-switchman of the St. Paul Railway; 
 specializes with C. & N. W. and St. Paul Rail- 
 way employes. 
 
 61-164 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Newspaper. 
 $70,000.00 a year. 
 Manager is an attorney by profession. 
 
 Advertising: 
 
 Approximate Business: 
 
 Remarks: 
 64-66-20-77 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 $150,000.00 a year. 
 
 Has very long record with the above secieties. 
 Styled the livest salary loan agent in the city. 
 When No. 20 a woman (R) retired on her 
 marriage to a prominent business man, No. 64 
 purchased all the "live accounts." The so-called 
 "skip accounts" were sold to No. 3, who has a 
 reputation for making collections. 
 
 68 
 
 Approximate Business: 
 Remarks: 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 $65,000.00 a year. 
 
 Operated by the son of the so-called "King of Loan 
 Sharks," who claimed to do business in sixty- 
 six different cities. 
 
 69 Chattel and Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 $70,000.00 a year. 
 
 While classified as a chattel agent, has record of 
 salary loans. Evidence indicates that this com- 
 pany is persistent and relentless in effecting 
 settlements. 
 
 70 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 Loan Shark Record: First State Industrial 
 Legal Aid Society. 
 
 Wage Loan Society and 
 
 47
 
 Key No. 
 
 Advertising: 
 Approximate Business: 
 Remarks: 
 
 Newspaper. 
 
 $75,000.00 a year. 
 
 Classed as chattel loan agent, but does salary 
 loaning. Reputed to be the cheapest loan agent 
 in the city. Rather a small operator; fair repu- 
 tation. Brother of No. 71, who recently died. 
 
 72 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 Loan Shark Record: Legal Aid Society. 
 Approximate Business: $60,000.00 a year. 
 
 81 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 Loan Shark Record: First State Industrial 
 
 Legal Aid Society. 
 Approximate Business: $75,000 a year. 
 
 Wage Loan Society and 
 
 82-R Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Recordj First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Approximate Business: $50,000 a year. 
 
 Remarks: 
 
 Proprietor is a woman; supposed to be No. 199. 
 
 73 Salary Loans. 
 
 In classified directory 
 Loan Shark Record: 
 
 Advertising: 
 Specialty: 
 
 Approximate Business: 
 Remarks: 
 
 under Salary Loans. 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Newspaper. 
 
 "Five-minute loans." 
 
 $100,000 a year. 
 
 Assistant manager is credited with saying they 
 have $20,000 out at 5 and 10 per cent a month 
 and above. Proprietor is interested in loan com- 
 panies in various other cities; also proprietor of 
 No. 175 and No. 124. Operated extensively in 
 New York City. A very long record in the First 
 State Industrial Wage Loan Society and Legal 
 Aid Society. 
 
 Chattel Loans. 
 
 In classified directory 
 
 Loan Shark Record: 
 
 Advertising: 
 Incorporation: 
 
 Approximate Business: 
 Remarks: 
 
 under Chattel Loans. 
 
 First^ State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Newspaper. 
 
 Secretary of State of Illinois reports: "This com- 
 pany was incorporated July 5, 1890, for the fol- 
 lowing purpose: For the examination of titles 
 to real and personal estate; to furnish informa- 
 tion upon which to base credit; to transact a 
 general collecting business, etc. The name was 
 changed August 20, 1903, to the present title. 
 
 $100,000 a year. 
 
 Said to be one of a chain of offices operating all 
 over the country. Manager said to be brother of 
 the owner of No. 116. 
 
 48
 
 Key No. 
 87 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Woman proprietor First State fndustrial Wage Loan Society and 
 
 Legal Aid Society. 
 
 $50,000 a year. 
 
 Intimates intention of retiring. 
 
 Loan Shark Record: 
 Approximate Business: 
 Remarks : 
 
 S-22-114-65-R. 
 
 Salary Loans. 
 In classified directory 
 Woman proprietor. 
 Loan Shark Record: 
 
 Incorporation: 
 
 Approximate Business: 
 Remarks : 
 
 under Salary Loans. 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Secretary of State of Illinois reports: "This com- 
 pany was incorporated Sept. 20, 1882, for the 
 purpose of the manufacture and sale of dry- 
 goods. The charter was canceled July 1, 1902, 
 for default in filing annual report." 
 
 $100,000 a year. 
 
 Founded by an attorney, who died a few years 
 ago. Had extensive interests. All were sold 
 or combined with the above after his demise. 
 Widow retains interest, although she is in an- 
 other class of business. Roster of associates 
 and owners show that stockholders from sev- 
 eral cities in three states were interested in 
 these various companies. 
 
 89 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 $100,000 a year. 
 
 Ownership the same as No. 160; formerly also 
 of No. 140. Operates two offices; deals with 
 street car employes. Advertises as chattel loan 
 company, but does salary loaning also. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 90-111-173. 
 
 Chattel Loans. 
 
 In classified directory 
 an Individual and 
 Loan Shark Record: 
 
 Incorporation : 
 
 Approximate Business: 
 Remarks: 
 
 under Chattel Loans (two entries in directory as 
 
 a company). 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 
 Secretary of State of Illinois reports: "This com- 
 pany was incorporated March 1, 1910, for the 
 following purpose: For the examination of 
 titles to real estate; to furnish information upon 
 which to base credits; to transact a general col- 
 lecting business and maintain an office or offices 
 where notes or other evidences of indebtedness 
 may be made payable." 
 
 $125,000 a year. 
 
 A particularly obnoxious concern; same ownership 
 as No. 173. Long records. Classed as a chattel 
 loan agency, but has also salary loan record. 
 
 49
 
 Key No. 
 
 91-113 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Advertising: 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 Newspaper. 
 $80,000 a year. 
 Owned by Boston capital. Said to be conducted by 
 
 same management as No. 113. 
 
 94-78-28 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Advertising: 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Newspaper. 
 $80,000 a year. 
 Said to be owned by No. 28. Very long record with 
 
 above societies. 
 
 95-160 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 Loan Shark Record : Legal Aid Society. 
 Approximate Business: $50,000 a year. 
 Remarks: Same ownership as No. 160. 
 
 tired with several millions. 
 
 Original owner re- 
 (R.) 
 
 96-158 
 
 Salary Loans: 
 Loan Shark Record : 
 Approximate Business: 
 Remarks : 
 
 Unclassified. 
 
 Legal Aid Society. 
 
 $75,000 a year. 
 
 Said to have been proprietor of No. 158; originally 
 owned by two old women, who are said to have 
 been "skinned" out of their interest. Was for- 
 mer head of a loan shark association. 
 
 101 Salary Loans. 
 
 In classified directory under Merchant Tailors. 
 
 Loan Shark Record : 
 Incorporation: 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 
 Incorporated as a tailoring company. 
 
 $60,000 a year. 
 
 Operates under the guise of a merchant tailoring 
 company; owner credited with being the treas- 
 urer of the "Loan Shark Clearing House." 
 
 102-185-135-31-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans (two entries). 
 
 Loan Shark Record : 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 $250,000 a year. 
 
 Advertises in telephone directory as an individual 
 under Salary Loans and as a company under 
 Chattel Loans. Described by those who know 
 him as "square," but has exceedingly long record 
 with above societies. Inquirers for No. 31 are 
 referred to this company.
 
 Key No. 
 103-197-171-52-R 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 $50,000 a year. 
 Proprietor has long record with above societies; 
 
 a brother of No. 115, though business is not so 
 
 extensive. 
 
 105 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Woman manager. 
 
 Loan Shark Record : 
 
 Approximate Business 
 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 
 $60,000 a year. 
 
 This woman (styled and Company) is 
 
 "backed" by a firm of well-known printers who 
 do not wish their connection to be known. 
 
 110-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 Woman proprietor. 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and Legal 
 Aid Society. 
 
 $75,000 a year. 
 
 This concern is owned by a woman whose hus- 
 band assists in the business, which she inherited 
 on her father's death. 
 
 112-R-169 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 Loan Shark Record : Legal Aid Society. 
 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks : 
 
 Newspaper. 
 
 "Five-minute loans." 
 
 $60,000 a year. 
 
 Same proprietorship as No. 169. One of the "while 
 you wait" firms, which assures you that a record 
 elsewhere will not prevent your getting loans 
 with them. 
 
 113-91-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 Newspaper. 
 
 "While you wait" five-minute loans. 
 
 $80,000 a year. 
 
 Very extensive record with above societies; owned 
 by Boston capital; classed as salary loan com- 
 pany, but has record of chattel loans. 
 
 51
 
 Key No. 
 115-197-R 
 
 Chattel and Salary Loans. 
 
 In classified directory under Chattel Loans (two entries). 
 
 Loan Shark Record : 
 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Newspaper. 
 Salary loans of $5 in five minutes, and chattel 
 
 loans up to $200 in one hour. 
 $300,000 a year. 
 
 Claims to be the most liberal in the business. 
 Offers seductive inducements to parties who Have 
 been refused elsewhere. "$150.00 to a man mak- 
 ing $12 a week." "If you have been refused, 
 don't think you cannot get it." Operates two of- 
 fices; has one of the longest records of complaints 
 with above societies. Well informed persons 
 state that proprietor (R) the largest operator in 
 the city. 
 
 117-R 
 
 Salary Loans. 
 
 In classified directory 
 
 Loan Shark Record : 
 
 Advertising: 
 
 Specialty: 
 
 Incorporation: 
 
 Approximate Business: 
 Remarks : 
 
 under Salary Loans. 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 Newspaper. 
 
 "While you wait" loans. 
 
 Secretary of the State of Illinois reports: "This 
 company was incorporated July 6, 1899, for the 
 following purposes: For the purpose of rais- 
 ing, collecting, harvesting and dealing in leaf 
 tobacco; to purchase and own real estate in 
 connection with said business, and to transact 
 any legitimate business coming within the prov- 
 ince of this corporation as regards the purchase 
 and sale of personal property." 
 
 $80,000 a year. 
 
 This company is run on Boston capital (R). 
 
 120 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record : 
 Advertising: 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 Prominent display in telephone directory. 
 $100,000 a year. 
 An extensive operator; classified under 
 
 chattel 
 
 loans, but does considerable salary business. 
 
 123-76 
 
 Salary Loans. 
 Loan Shark Record : 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 
 $60,000 a year. 
 
 An old telegraph operator, once in company with 
 No. 76, operating a collection agency; dealing 
 mostly with telegraphers; recently said to have 
 purchased the business interests of No. 33, but 
 late indications are that the latter is still in busi- 
 ness. 
 
 52
 
 Key No. 
 
 124-73-175 
 
 Salary Loans. 
 In classified directory 
 Woman manager. 
 Loan Shark Record: 
 
 Advertising: 
 Approximate Business: 
 Remarks : 
 
 under Salary Loans. 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Newspaper. 
 
 $75,000 a year. 
 
 Owned by one of the largest operators; proprietors 
 also of No. 73 and No. 75. Advertises that he 
 refuses no one and does not notify your friends 
 or employer. Uses the same address as No. 73, 
 but has another telephone number. 
 
 128-21-67 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Woman proprietor. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 $50,000 a year. 
 
 So-called real estate dealer controlled this com- 
 pany. He recently died and his widow is con- 
 tinuing the business at the old stand. Same own- 
 ership as No. 67. 
 
 129-80-181-205 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Approximate Business: $40,000 a year. 
 
 Remarks: 
 
 Owner is proprietor also of No. 80 and No. 181, 
 which were found at the same address but with 
 different telephone numbers. A former associate 
 of No. 205. Both of them belonged to the well 
 known so-called "Logansport bunch." Nos. 129, 
 80 and 81 seem to be practically one firm under 
 several names, with indications that No. 205 will 
 soon join, if it has not already done so. 
 
 36-143-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 Incorporation : 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 This is a West Virginia Company, with a license 
 
 to do business in Illinois in 1905. 
 $75,000 a year. 
 Operated by a well-known party, who also runs a 
 
 phonograph shop. Has a woman manager. 
 
 140 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record : Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 53
 
 Incorporation: 
 
 Approximate Business: 
 Remarks: 
 
 Company was chartered in 1904. A certificate of 
 dissolution issued in 1912. 
 
 $125,000 a year. 
 
 Former millionaire owner withdrawing from Chi- 
 cago business, sold out to present owner, who is 
 said to have worked with him for fifteen years. 
 
 Key No. 
 142-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 Incorporation: 
 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Secretary of State of Illinois reports: "This com- 
 pany was incorporated April 30, 1903, for the fol- 
 lowing purpose, To conduct a general collection 
 and commercial reporting business; to buy, sell 
 and manufacture merchandise of every descrip- 
 tion, and to establish branch offices, factories 
 and places of business for the purpose of con- 
 ducting the business aforesaid." 
 
 $100,000 a year. 
 
 Said to be withdrawing from business slowly, has 
 an extensive record, exceedingly active at times, 
 using large display advertisements. At one time 
 offered a premium of "a solid leather bill fold" 
 to every person making a loan before Christmas. 
 
 148-R 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: 
 Advertising: 
 
 Approximate Business : 
 Remarks : 
 
 First State Industrial Loan Society and Legal Aid 
 Society. 
 
 Newspapers and handbills, the latter a close imita- 
 tion of a bank note in appearance, the back of 
 which carries a short table of rates. 
 
 $100,000 a year. 
 
 The manager is supposed to be "backed" by his 
 wife's parents. 
 
 149-50-160-R 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 $70,000 a year. 
 Original owner had extensive business in the city, 
 
 but is withdrawing from Chicago affairs. 
 
 151-167 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record : 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society. 
 
 $75,000 a year. 
 
 The two men who run this place advertise in the 
 
 telephone directory under two names as a firm 
 
 and as a company. 
 
 54
 
 Key No. 
 152-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 Advertising: 
 Approximate Business: 
 Remarks: 
 
 Wage Loan Society. 
 
 Newspaper. 
 
 $80,000 a year. 
 
 Another one of the "five-minute loan" class, who 
 advertise that they will loan any man or woman 
 steadily employed on their simple promise to 
 pay. The manager, recently cited before Judge 
 
 . Landis, maintains a fine country residence in 
 another state. 
 
 154-194 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Advertising: 
 
 Approximate Business: 
 Remarks : 
 
 Newspaper, also distributes business cards offering 
 $1.00 commission on each customer, with the 
 added inducement that "you do not have to wait 
 for the dollar until the loan is paid out." 
 
 $80,000 a year. 
 
 Same ownership as No. 194. 
 
 157 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 Loan Shark Record: Legal Aid Society. 
 Approximate Business: $80,000 a year. 
 
 Remarks: Convenient to street car terminal, apparently for 
 
 business purposes. 
 
 158-96-R 
 
 Salary Loans. 
 Loan Shark Record : 
 Incorporation : 
 
 Remarks: 
 
 Legal Aid Society. 
 
 The Secretary of State of Illinois reports: This 
 company was incorporated Aug. 26, 1909, for the 
 following purpose: To investigate and report 
 on the financial condition and credit of individ- 
 uals, firms and corporations; to appraise, store, 
 buy, sell and deal in general merchandise, house- 
 hold goods and effects, and any and all other 
 kinds of personal property not prohibited by law, 
 and also to conduct a general collection business 
 for profit. The charter was canceled March 31, 
 1913." 
 
 While this company is supposed to be out of busi- 
 ness, proprietor is still actively operating. No. 96 
 is supposed to have the papers of the concern. 
 Two old women formerly owned the company; 
 are supposed to have been "skinned" out of their 
 interests by a former head of "Loan Shark As- 
 sociation." 
 
 Approximate Business: $60,000 a year. 
 
 55
 
 Key No. 
 159-89-172-160-R 
 
 Chattel Loans. 
 Loan Shark Record: 
 Advertising: 
 Incorporation: 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society. 
 
 Newspaper. 
 
 The Secretary of State of Illinois reports: This 
 company was incorporated June 14, 1899, for the 
 following purpose: Examination of titles to real 
 and personal estate, to furnish information on 
 which to base credits; to transact a general col- 
 lection business, etc. The charter was canceled 
 April 15, 1914." 
 
 Note: Before charter was canceled company had 
 changed its name but continued to operate under 
 old one. 
 
 $80,000 a year. 
 
 Took up the accounts of. a former very large oper- 
 ator, who withdrew from business to further his 
 wife's social ambitions. Same concern as No. 
 160. Name has been changed once or twice. 
 
 165 
 
 Chattel and Salary Loans. 
 
 In classified directory under Chattel and Salary Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 $110,000.00 a year. 
 Claims "a clean record of twenty-six years." Uses 
 
 display advertisement in telephone directory. 
 
 169 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 
 Advertising: 
 Specialty: 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Newspaper. 
 
 Advertises "Cash in your pocket in ten minutes." 
 $80,000.00 a year. 
 Owner also of No. 112. 
 
 172 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 $150,000 a year. 
 Sold to his manager by former proprietor of No. 
 
 160 and No. 189, for same reasons as indicated. 
 
 174 
 
 Chattel and Salary Loans. 
 
 In classified directory under Chattel Loans; also under Salary Loans. 
 
 Loan Shark Record : Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 
 Approximate Business: $80,000 a year. 
 Remarks: Fair reputation. Man and sons sometimes style 
 
 themselves as a company. 
 
 56
 
 Key No. 
 
 175 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society and Legal 
 
 Aid Society. 
 $50,000 a year. 
 Long record in above agencies. 'Some confusion 
 
 with No. 176. Proprietor is also connected with 
 
 several companies (No. 73 and No. 124); also 
 
 does business in New York City. 
 
 176-153-R 
 
 Loan Shark Record: 
 
 Approximate Business 
 Remarks : 
 
 Chattel Loans. 
 
 In telephone directory as a company under Chattel Loans and as an in- 
 dividual under Salary Loans. 
 Woman proprietor. 
 
 First State Industrial Loan Society and Legal Aid 
 
 Society. 
 
 $60,000 a year. 
 
 Two companies of the same name operate in differ- 
 ent parts of the city; proprietor of this is a well- 
 known woman, whose brother-in-law is also in- 
 terested in the business. Owing to the similarity 
 of names, it was impossible to get entirely ac- 
 curate information as to number of cases against 
 this company. A long list is positively connected 
 with it, allowing for the above. Operates as a 
 company and as an individual. 
 
 178 
 
 Salary Loans. 
 
 In clasified directory under Salary Loans. 
 
 Loan Shark Record : Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 Advertising: Newspaper. 
 
 Approximate Business : $100,000 a year. 
 
 Remarks : 
 
 Proprietor is a lawyer, who was said to have re- 
 tired from practice. Petition for disbarment was 
 filed against him at one time (1912), but he is 
 still listed in the classified directory as "lawyer." 
 
 179 
 
 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Loan Shark Record : First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 Advertising: Newspaper and handbills or cards adroitly worded 
 
 and well calculated to mislead. 
 
 Approximate Business: 
 Remarks : 
 
 $80,000.00 a year. 
 
 Styled the worst firm in the city; much trouble 
 and confusion have been caused by the similarity 
 of its name with that of a legitimate and well 
 .conducted business enterprise. Proprietor said 
 to have places in Pittsburgh and Philadelphia 
 also. 
 
 57
 
 Key No. 
 
 181-80 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society and Legal 
 
 Aid Society. 
 $50,000 a year. 
 Owner of No. 80 owns both this and No. 129. 
 
 Said to be interested in No. 205 A. 
 
 183 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and 
 Legal Aid Society. 
 
 $70,000 a year. 
 
 Proprietors are man and wife; latter formerly did 
 business under her maiden name. They some- 
 times now call themselves by a firm name which, 
 is a combination of the two names. 
 
 188 
 
 Salary and Chattel Loans. 
 
 In clasified directory under Salary Loans. 
 
 Loan Shark Record: 
 Incorporation: 
 
 Approximate Business : 
 Remarks : 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 Secretary of State of Illinois: "This company was 
 incorporated February 24, 1900, for the following 
 purpose: Carrying on the business of buying 
 and selling bonds and other securities." The 
 charter was canceled July 1, 1902, for default ia 
 filing annual report. 
 
 $80,000 a year. 
 
 Supposed connection with No. 179. 
 
 191 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 $175,000 a year. 
 
 Proprietor was once a Metropolitan employee, a 
 Jew, and said to be "the whitest fellow in the 
 business." Loan Shark Clearing House, of which 
 he is "silent" president, was at one time said 
 to have its offices in his parlor. One of the larg- 
 est operators. 
 
 193 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 
 Advertising: 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and" 
 Legal Aid Society. 
 
 Newspaper. 
 $100,000 a year. 
 
 It is said that No. 11 deals exclusively in their 
 paper. Apparently same owners as No. 37 and 
 No. 11. One is an attorney. Long and obnox- 
 ious records. 
 
 58
 
 NOTE: 
 
 No. 193, doing business in the Rector Building, is a concern loaning 
 money at usurious rates of interest (many of whose clients are school 
 teachers), in which (R), who is also known as a banker, has an interest. 
 
 When an installment of the principal and usurious note is not paid in 
 accordance with its terms, these notes are transferred to an "Adjustment" 
 company, No. 11, a corporation, whose name was changed on the 2nd day 
 of October, 1916. Suit is then begun on these notes by this "adjustment" 
 company through its attorney and agent, who is one of the proprietors 
 of No. 193, and judgment is taken, including attorney's fees, on both notes 
 and usurious interest. In other words, while this corporation exists as a 
 separate entity, it is in effect the collecting agent for No. 193, for which 
 purpose it seems apparently to have been incorporated, inasmuch as it 
 handles cases of no other firms. In so doing it is virtually violating the 
 Illinois statutes (Kurd's R. S., 1915-16, p. 636, Chap. 32, Sec. 1), which 
 says that a corporation may not be formed in the manner provided by 
 this act for the purpose of loaning money. 
 
 In the Statement of Claim this "adjustment" company alleges on oath 
 that it is an "innocent purchaser for value without notice" of these notes. 
 
 Key No. 
 
 194 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record: Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 
 Advertising: Newspaper. 
 
 Specialty: "Five-minute loans." Railroad employes. 
 
 Approximate Business: $100,000 a year. 
 Remarks: Under the same management as No. 154. Very long 
 
 and active record. 
 
 195 
 
 196 
 
 Chattel Loans 
 
 In classified directory under Chattel Loans. 
 Loan Shark Record : Legal Aid Society. 
 Approximate Business: $75,000 a year. 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Newspaper. 
 
 Small, quick loans, $5.00 to $25.00. 
 $80,000 a year. 
 Proprietor a former telephone employe, who started 
 
 in a small way. 
 
 199-132-133-82-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Woman proprietor. 
 
 Loan Shark Record : Legal Aid Society. 
 
 Remarks: Same ownership as No. 82. 
 
 205 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : Legal Aid Society. 
 
 Remarks: Known as one of the "Logansport bunch;" once 
 
 worked with No. 80; recently died but business 
 
 is still going on. 
 
 59
 
 APPENDIX A NO. H. 
 
 Money Lenders not in the Clearing House Against Whom There Are Definite Loan 
 
 Shark Records. 
 Key No. 
 24-1 
 
 Salary and Chattel Loans. 
 
 In classified directory under Investment and Securities. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 $100,000 a year. 
 
 In classified directory as an individual and as a 
 company. Conveniently located at street car ter- 
 minal; specializes with employes. Proprietor 
 a lawyer, artist and physician. 
 
 Salary Loans. 
 
 Loan Shark Record : First State Industrial Wage Loan Society. 
 
 Approximate Business: $20,000 a year. 
 
 8-9-137-R 
 
 Salary Loans. 
 
 Loan Shark Record : First State Industrial Wage Loan Society. 
 
 Approximate Business: $55,000 a year. 
 
 Remarks: Bought out the business of another. 
 
 13 
 
 Salary Loans. 
 Woman proprietor. 
 Loan Shark Record: 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 $30,000 a year. 
 
 Original proprietor committed suicide some time 
 ago. Widow states she intends to retire soon. 
 
 16 
 
 Salary Loans. 
 Loan Shark Record : 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 
 $70,000 a year. 
 
 Founder is dead; sons carry on business, mostly 
 
 with surface line employes; use insurance and 
 
 and real estate as cover. 
 
 19 
 
 Salary Loans. 
 
 In telephone directory as Manufacturer's Agent. (Unclassified.) 
 
 Loan Shark Record : Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Approximate Business: $30,000 a year. 
 
 23 
 
 Salary Loans. 
 
 In classified directory under Real Estate. 
 
 Loan Shark Record : First State Industrial Wage Loan Society. 
 Remarks: Reputed to deal with city employes, school teachers, 
 
 firemen and police. Poses as a real estate dealer, 
 
 60
 
 commercial paper dealer and Insurance agent. 
 Said to be church trustee with social aspirations. 
 Said to have had a "trapper" who received $2.00 
 apiece for each victim he "steered" in. 
 
 Key No. 
 25 
 
 Salary Loans. 
 Loan Shark Record : 
 Specialty: 
 
 Approximate Business : 
 Remarks: 
 
 Legal Aid Society. 
 
 Street car employes. 
 
 $25,000 a year. 
 
 For a long time put up the $25.00 deposit once 
 required by a street car company before employ- 
 ing men. A relative of a cashier of the Chicago 
 Surface Lines, it is alleged. Also in the coal 
 business. 
 
 Salary Loans. 
 
 Women proprietors sisters. 
 
 In unclassified telephone directory. 
 
 Loan Shark Record : 
 
 Approximate Business: 
 Remarks : 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 $75,000 a year. 
 Sisters inherited business; one since married but 
 
 still active: described as "high-class" woman. 
 
 33 Salary Loans. 
 
 In unclassified telephone directory. 
 
 Loan Shark Record : 
 Approximate Business: 
 Remarks: 
 
 Legal Aid Society. . 
 
 $50,000 a year. 
 
 Once described as one of the most respected citizens 
 of a prominent suburb; vast wealth; a physician, 
 retired from practice; head of a mail order 
 specialty house; most actively assisted by his 
 sister. Attracted considerable attention because 
 of a case which he carried to the Supreme Court, 
 causing a law regulating wage assignments to 
 be declared unconstitutional. Said to have re- 
 cently sold out to No. 123, but recent communica- 
 tion indicated some activity in this line still. 
 
 45-192 
 
 Salary Loans. 
 Loan Shark Record : 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society. 
 
 $70,000 a year. 
 
 Proprietor, a well-known department store mer- 
 chant; a brother, now dead, was founder. 
 Specialized with city employes. 
 
 53 Salary Loans. 
 
 Loan Shark Record : 
 
 Remarks : 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Once the superintendent of a factory; bears a good 
 
 reputation; business a side line, which he is 
 
 closing out at present. 
 
 61
 
 Key No. 
 
 54 Salary Loans. 
 
 In classified directory as Lawyer. 
 
 Loan Shark Record : 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 
 Newspaper. 
 
 Small, quick loans, $5 to $15. Styles himself a 
 
 "salary loan specialist." 
 $60,000 a year. 
 Outside assistance has frequently been sought in 
 
 settling accounts with him. 
 
 55 Salary Loans. 
 Woman Manager. 
 Loan Shark Record : 
 Specialty: 
 Approximate Business: 
 
 First State Industrial Wage Loan Society. 
 Street car employes. 
 $75,000 a year. 
 
 63 Salary Loans. 
 
 Woman Proprietor. 
 Loan Shark Record : 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society and 
 
 Legal Aid Society. 
 $60,000 a year. 
 Said to deal only with high-class, clerical; "very 
 
 fine woman," not her real name, wife of a 
 
 lawyer, whose name only appears on the office 
 
 door. 
 
 67 Salary Loans. 
 
 Woman Manager. 
 Loan Shark Record: 
 Remarks: 
 
 Legal Aid Society. 
 
 A man formerly in the business independently is 
 now operating in this office or connected with 
 it. Manager styled a sharp business woman of 
 fine character; widow of a former notorious 
 operator. 
 
 78-28-194 
 
 Salary Loans. 
 
 In classified directory under Salary Loans (listed twice, as a company 
 
 and an individual). 
 Loan Shark Record : Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Newspaper. 
 "Five-minute Ipans." 
 $150,000 a year. 
 
 Owner one of the most active in business; con- 
 spicuous in recent bankruptcy proceedings 
 brought by victim; cited before Judge Landis; 
 formerly manager of No. 194. Very long record 
 of complaints with above societies. 
 
 Advertising: 
 Specialty: 
 
 Approximate Business 
 Remarks : 
 
 83 Salary Loans. 
 
 Loan Shark Record : 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society. 
 $60,000 a year. 
 
 Is in real estate business primarily. Loans 
 Jewish people. A side line. 
 
 62 
 
 to
 
 Key No. 
 
 97 Salary Loans. 
 
 In classified directory under Investments and Securities. 
 
 Loan Shark Record: Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 
 Approximate Business: $80,000 a year. 
 Approximate Business : 
 
 98 Chattel Loans. 
 
 In unclassified directory "Loans" appearing after name. 
 Loan Shark Record : Legal Aid Society. 
 Approximate Business: $50,000 a year. 
 
 90-40 Salary and Chattel Loans. 
 
 In classified directory under Investments and Securities. 
 
 Loan Shark Record: 
 
 Approximate Business: 
 Remarks : 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 $75,000 a year. 
 
 Senior member is owner of another loan associa- 
 tion, No. 40; same address but different tele- 
 phone number. 
 
 104-R 
 
 Salary Loans. 
 
 In classified directory under Investments and Securities. 
 
 Loan Shark Record : 
 
 Advertising: 
 
 Specialty: 
 
 Approximate Business : 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 
 Newspaper. 
 
 Specializes according to advertisements with the 
 better element of employes, merchants and 
 manufacturers; loans less than $200 and $300 
 do not interest them. 
 
 $300,000 a year. 
 
 Proprietors style themselves "private bankers"; 
 two brothers, apparently partners, credited with 
 being the most suave and convincing in their 
 arguments and methods of any in the business. 
 
 Use the name of " Loan Credit and 
 
 Trust Company." 
 
 106 Salary Loans. 
 
 Woman proprietor. 
 Loan Shark Record : 
 
 Approximate Business : 
 Remarks : 
 
 First State Industrial Wage Loan Society and Legal 
 Aid Society. 
 
 $10,000 a year. 
 
 Has been connected with several well known 
 agents, acting as manager of the offices or a 
 "dummy." Investigation discloses her working 
 independently under the name of a company. 
 
 122 Salary and Chattel Loans. 
 
 In unclassified directory "loans" after name. 
 Woman Proprietor and Manager. 
 
 Loan Shark Record: 
 
 Advertising: 
 Approximate Business: 
 Specialty : 
 
 Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Newspaper. 
 $75,000 a year. 
 $5 and $10 loans. 
 
 63
 
 Key No. 
 
 131 Salary Loans. 
 
 Loan Shark Record: 
 Incorporation: 
 
 Approximate Business: 
 Remarks : 
 
 First State Industrial Wage Loan Society. 
 
 Firm of similar name was incorporated in 1904; 
 
 identity with this party not established. 
 $40,000 a year. 
 Formerly with No. 64, now operating independently. 
 
 135 Chattel Loans. 
 
 Loan Shark Record : Legal Aid Society. 
 
 Approximate Business: $50,000 a year. 
 
 Remarks: Claims to be a real estate dealer only. 
 
 144-R 
 
 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 
 Advertising: 
 Specialty : 
 
 Approximate Business: 
 Remarks : 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 Newspapers. 
 
 Small loans to salaries employes and women house- 
 keeping. 
 
 $75,000 a year. 
 
 Former manager was well known as a lobbyist in 
 loan, shark interests. Owned by Pittsburgh 
 capital; one of a string of offices in several 
 cities; may have a partner. Operates in Cleve- 
 land, Pittsburgh and Cincinnati. 
 
 145 Salary Loans. 
 
 Loan Shark Record : 
 Remarks : 
 
 First State Industrial Wage Loan Society. 
 Interested in another line of business on the south 
 side; an employe of the Michigan Central. 
 
 162-161 
 
 Salary Loans. 
 Woman Proprietor. 
 Loan Shark Record : 
 Specialty: 
 Remarks: 
 
 Legal Aid Society. 
 
 School teachers. 
 
 Original owner dead; public administrator has ac- 
 counts. Dealt with school teachers. Woman, 
 former associate, does business to a limited ex- 
 tent in real estate business. "Only two will 
 know it" was the slogan of this firm. Accom- 
 modation on old conditions and rates was re- 
 cently offered. Formerly did chattel loaning also. 
 
 163 Salary Loans. 
 
 Loan Shark Record : 
 Remarks: 
 
 First State Industrial Wage Loan Society. 
 
 Was No. 121 in old official list of Clearing House. 
 
 173-111-R 
 
 Chattel Loans. 
 
 In classified directory under Banks and also Chattel Loans. 
 
 Loan Shark Record : Legal Aid Society and First State Industrial Wage 
 
 Loan Society. 
 Advertising: Display in telephone directory. 
 
 64
 
 Specialty: 
 
 Approximate Business: 
 Remarks: 
 
 Loans on furniture. 
 
 $300,000 a year. 
 
 Operates several offices. Firm is made up of 
 three prominent, well-known, loan agents. Also 
 operates No. 90. This firm is considered one of 
 the most dangerous in the city because of its 
 title and the fact that many victims are In- 
 veigled into its hands under the impression that 
 it is a legitimate bank. Very long and conspicu- 
 ous record in the above societies. 
 
 Key No. 
 
 177-59-R 
 
 Chattel and Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Loan Shark Record : 
 Incorporation : 
 
 Approximate Business : 
 Remarks : 
 
 Legal Aid Society. 
 
 Secretary of State of Illinois reports: "This com- 
 pany was incorporated May 22, 1909, for the 
 following purpose: To examine and report on 
 the financial standing of persons and corpora- 
 tions and act as financial agent in the collection 
 and brokerage business." 
 
 $60,000 a year. 
 
 Proprietor is described as "very decent fellow." 
 Has record under own name and as company. 
 
 162-R 
 
 Salary Loans. 
 Loan Shark Record : 
 
 Specialty: 
 Remarks : 
 
 Legal Aid Society and First State Industrial Wage 
 Loan Society. 
 
 Specializes in business loans. . 
 
 Was business associate of well-known operator now 
 in penitentiary. Claims to be a broker; has a 
 license; claims usurious interest is merely 
 brokerage fee; was No. 63 on former official list 
 of Clearing House. 
 
 261 Salary and Chattel Loans. 
 
 Loan Shark Record : Legal Aid Society. 
 
 Remarks: This company was started in the spring of 1916, 
 
 but has already achieved a record. 
 
 237 
 
 Salary and Chattel Loans. 
 
 Loan Shark Record : Legal Aid Society. 
 
 Advertising: 
 Remarks: 
 
 Newspaper. 
 
 Uses seductive advertisement philanthropic in 
 tone: claims to run "no loan office." "If you 
 
 need a friend and money, mail ." 
 
 This person is said to have been "black-balled" 
 when he attempted to join the Clearing House, 
 principally because his advertisements were said 
 to reflect upon the profession. 
 
 262 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 Loan Shark Record : First State Industrial Wage Loan Society. 
 Remarks: The name is frequently confused with another very 
 
 similar. 
 
 65
 
 APPENDIX A NO. III. 
 
 Money Lenders Who Are Members of the Clearing House, But no Cases Have 
 Been Found on Record in the Legal Aid Society or First State Industrial Wage 
 Loan Society. 
 
 Key No. ' . 
 
 201 Salary and Chattel Loans. 
 
 In classified directory under Salary and Chattel Loans. 
 Advertising: Newspaper. 
 
 Approximate Business: $50,000 a year. 
 
 202 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Advertising: Newspaper. 
 
 Remarks: One of the "five-minute" companies. 
 
 Approximate Business: $75,000 a year. 
 
 203 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Remarks: Advertises as an individual under Salary Loans; in 
 
 unclassified as a Loan Bank. 
 
 215 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Advertising: Newspaper. 
 
 Remarks: A "ten-minute" concern. Proprietor said to be a 
 
 relative of No. 171. 
 Approximate Business: $90,000 a year. 
 
 206 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Remarks: Said to operate among railway employes. Pro- 
 
 prietor the same as No. 102. 
 
 79 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 
 Remarks: Similar name but not connected with No. 124, 
 
 No. 175 or No. 73. 
 
 Approximate Business: $100,000 a year. 
 232 Salary Loans. 
 
 In classified directory under Salary Loans. 
 
 Remarks: Located near a prominent southwest side "transfer 
 
 point. 
 Approximate Business: $100,000. 
 
 251 Chattel Loans. 
 
 In classified directory under Chattel Loans. 
 Advertising: Newspaper. 
 
 Remarks: Runs a general merchandise business in connec- 
 
 tion; apparently loans at legal rates on anything 
 of value. 
 
 Approximate Business: $75,000 a year. 
 
 66
 
 APPENDIX A NO. IV. 
 
 Money Lenders Not in Clearing House; in Active Business But no Records Found 
 Against Them in Legal Aid Society or First State Industrial Wage Loan 
 Society. 
 
 Key No. 
 
 270 Salary Loans. 
 
 In classified directory under Salary Loans. 
 Approximate Business : $50,000 a year. 
 
 204 Salary Loans. 
 
 Remarks: Connected with North-Western R. R.; deals with 
 
 employes. Takes his accounts to Wisconsin and 
 sells them to supposedly "innocent third par- 
 ties," one of whom showed remarkable knowl- 
 edge of loan shark methods and business ac- 
 counts in a recent trial. 
 
 218 Chattel Loans. 
 
 In classified directory under Bankers: 
 
 Remarks: Discounts machinery house notes. This firm said 
 
 to do large amount of "chattel sharking" where 
 large sums only are involved. 
 
 Approximate Business: $200,000 a year. 
 
 231 Salary Loans. 
 
 In unclassified directory. 
 
 Remarks: Supposed connection with founder of No. 60 de- 
 
 nied. Still in business but independently on 
 northwest side. 
 
 Approximate Business: $50,000 a year. 
 
 234 Chattel Loans. 
 
 Remarks: Answered "blind ad" in Daily Xews July 20, 1916. 
 
 Southwest side. 
 
 242 Chattel Loans. 
 
 In telephone directory unclassified. 
 
 Remarks: Answered "blind ad" in Daily News; offered to 
 
 loan $100 at $2.00 per week or 10 per cent, per 
 
 annum. 
 
 259 Salary Loans. 
 
 In classified telephone directory under Real Estate and Loans. 
 Remarks: Operates some on a small scale. 
 
 260 Chattel and Salary Loans. 
 
 In telephone directory next issue. 
 Advertising: Newspapers. 
 
 Remarks: Advertisement appeared lately in newspapers; a 
 
 new concern. 
 Approximate Business: $50,000 a year. 
 
 67
 
 Key No. 
 
 263 Salary and Chattel Loans. 
 Advertising: Newspaper. 
 
 Specialty: $10 loans on salaries, furniture, pianos, etc. 
 
 Remarks: Lately began advertising (within a few weeks). 
 
 264 Salary and Chattel Loans. 
 
 Not yet in telephone directory. 
 Advertising: Newspaper. 
 
 Remarks: A new firm which disclaims connection with a 
 
 former agency of similar name. Specializes in 
 $10.00 loans and upward at reasonable rates. 
 
 265-R 
 
 Salary Loans. 
 
 In unclassified directory. 
 
 Advertising: Formerly advertised loans to "high class salaried 
 
 men." 
 
 Remarks: Formerly in business with another man but now 
 
 alone. 
 
 Approximate Business: $75,000 a year. 
 
 266 Salary Loans. 
 
 Advertising: Newspaper. 
 
 Specialty: "Loans to high class salaried people." 
 
 267 Salary Loans. 
 
 In unclassified directory. 
 
 Remarks: Formerly. described as "loan shark, church member 
 
 and dealer in municipal bonds." Said not to be 
 very active owing to ill health. 
 
 268 Salary Loans. 
 
 Advertising: Newspaper. 
 
 Specialty: "$5.00 and $10.00 loans." 
 
 269 Chattel and Salary Loans. 
 Advertising: N 
 
 Approximate Business: $60,000 a year. 
 
 Advertising: Newspaper. "Salary and furniture loans at low 
 
 rates." 
 
 68
 
 APPENDIX B. 
 
 Regulation of Bates of Interest on Loans. 
 
 I. General Interest Regulations. 
 
 Legal Rate Contract Rate 
 
 State Per Cent. Per Cent 
 
 Alabama 8 8 
 
 Alaska 12 
 
 Arkansas 6 10 
 
 Arizona 6 12 
 
 California 7 any 
 
 Colorado 8 any 
 
 Connecticut 6 6 
 
 Delaware 6 6 
 
 District of Columbia 6 10 
 
 Florida 8 10 
 
 Georgia 7 8 
 
 Idaho 7 12 
 
 Illinois 5 7 
 
 Indiana 6 8 
 
 Iowa 6 8 
 
 Kansas 6 10 
 
 Kentucky 6 6 
 
 Louisiana 5 8 
 
 Maine 6 any 
 
 Maryland 6 6 
 
 Massachusetts 6 any 
 
 Michigan 5 7 
 
 Minnesota 7 10 
 
 Mississippi 6 8 
 
 Missouri 6 8 
 
 Montana any 
 
 Nebraska 7 10 
 
 Nevada 7 any 
 
 New Hampshire 6 6 
 
 New Jersey 6 6 
 
 New Mexico 6 12 
 
 New York 6 6 
 
 North Carolina 6 6 
 
 North Dakota 7 12 
 
 Ohio 6 8 
 
 Oklahoma 6 10 
 
 Oregon 6 10 
 
 Pennsylvania 6 6 
 
 Rhode Island 6 any 
 
 South Carolina 7 8 
 
 South Dakota 7 12 
 
 Tennessee 6 6 
 
 Texas 6 10 
 
 Utah 12 
 
 Vermont 6 6 
 
 Virginia 6 6 
 
 Washington 6 12 
 
 West Virginia 6 6 
 
 Wisconsin 6 10 
 
 Wyoming 8 12 
 
 69
 
 EC. Digest of Laws Relating to Organization of Societies for the Purpose of 
 Making Small Loans. 
 
 Prepared by Thurber M. Smith, Investigator for the Department 
 of Public Welfare. 
 
 (Societies organized under the following special laws are not circumscribed 
 by the general regulations as to legal and contract rates of interest laid down by 
 their respective states, as indicated in Part I of Appendix B. All other persons 
 and organizations loaning money are subject to them; loan sharks fall within 
 this latter group.) 
 
 CALIFORNIA: Page 969 of the Statutes of 1909, as amended by page 978, 
 
 Statutes of 1911. 
 Date of Act: 
 Interest Rate Allowed: 
 Other Fees and Charges Allowed: 
 Limitation on Amount of Loan : 
 Licensing Requirements: 
 Limitation on Dividend: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 1909-1911. 
 
 2 per cent, per month. 
 
 None. 
 
 None. 
 
 None. 
 
 None. 
 
 No contract shall be valid if interest at a 
 greater rate is charged and excess may 
 be recovered by the person advancing it. 
 
 Violation of act shall be punished by a 
 fine of from $50 to $500, or imprisonment 
 from 10 days to 6 months, or both. 
 
 COLORADO: Session Laws of 1914, 
 Date of Act : 
 Interest Rate Allowed : 
 Other Fees and Charges Allowed : 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 p. 400. 
 
 April 12, 1913. 
 
 2 per cent, per month. 
 
 None. 
 
 None. 
 
 All companies doing a loan business and 
 charging over 12 per cent, per annum 
 
 ' must be licensed and must keep register 
 of loans made. License fee $50; bond 
 $2,000. 
 
 None. 
 
 Person who has paid more than the legal 
 rate of interest may recover treble the 
 amount and costs. 
 
 A violation of act shall be deemed a mis- 
 demeanor, punishable by fine of $25 to 
 $300, or imprisonment from 5 to 30 days. 
 
 CONNECTICUT: Chapter 238, Acts of 1907, as amended by Chapter 244, Acts 
 
 of 1911. 
 Date of Act: 
 Interest Rate Allowed: 
 Other Fees and Charges Allowed 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 1907-11. 
 
 1 per cent, per month. 
 
 None. 
 
 None. 
 
 None. 
 
 None. 
 
 Actions by the lender on loans violating 
 
 the Act are prohibited. 
 Fine up to $1,000; imprisonment up to 6 
 
 months, or both. 
 
 70
 
 DISTRICT OF COLUMBIA: Chapter 359, of laws of 1913, or Chapter 26, page 
 657, Statutes at Large, 1911-1913. 
 
 Date of Act: 
 
 Interest Rate Allowed: 
 
 Other Fees and Charges Allowed : 
 
 Limitation on Amount of Loan: 
 
 Licensing Requirements : 
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 1913. 
 
 1 per cent, per month. 
 
 None except those incurred in foreclosure 
 proceedings. In foreclosure proceedings 
 no attorneys' fees amounting to more 
 than 10 per cent of the sum shall be 
 allowed. 
 
 No loan greater than $200 shall be made 
 to any one person. 
 
 A license must be procured to loan money 
 at a rate greater than 6 per cent. Li- 
 cense fee $500; bond $5,000. Must keep 
 register of loans. 
 
 None. 
 
 Upon violation of the interest rate the 
 lender shall forfeit to the borrower all 
 interest collected and in addition a sum 
 equal to one-fourth of the principal, to 
 be deducted from principal sum. 
 
 Violation of the Act shall be punished by 
 a fine of from $25 to $200 or imprison- 
 ment from 5 to 30 days, or both. 
 
 FLORIDA: Chapter 5960, Laws of 
 Date of Act: 
 Interest Rate Allowed : 
 Other Fees and Charges Allowed 
 Limitation on Amount of Loan : 
 Licensing Requirements: 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 1909. 
 
 June 12, 1909. 
 
 10 per cent, per annum. 
 : None. 
 
 None. 
 
 None. 
 
 None. 
 
 Anything higher than 10 per cent, per 
 annum is usury and upon violation of 
 the interest rate the entire interest is 
 forfeited, or if paid, the person paying 
 may recover double the amount. This 
 provision does not apply to a bona fide 
 transferee of negotiable paper. 
 
 None, unless the interest charged amounts 
 to 25 per cent, per annum, then lender 
 shall forfeit entire sum, principal and 
 interest, and shall be deemed guilty of a 
 misdemeanor, punishable by fine up to 
 $100 or imprisonment up to 90 days or 
 both. 
 
 GEORGIA: Code of Georgia, 1914, Chapter 12, Sections 3426 to 3466. 
 
 Date of Act: 
 
 Interest Rate Allowed : 
 
 Other Fees and Charges Allowed : 
 
 Limitation on Amount of Loan: 
 
 Licensing Requirements: 
 
 1904-1908, Apr. 15. 
 
 5 per cent, a month. 
 
 None. 
 
 None. 
 
 Every person must be licensed, either by 
 licensing officer of city or county, in 
 order to engage in business of wage 
 loans. Fee $1.50. Bond $500. Must keep 
 records open for inspection. 
 
 71
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 None. 
 
 Payment of excess interest by the bor- 
 rower shall be considered as payment on 
 the principal. 
 
 Violation of the interest rate allowed shall 
 be considered a misdemeanor. 
 
 ILLINOIS: Acts of 1913, Sections 2694-1 to 2694-13, or page 699, Section 218-230, 
 Kurd's Revised Statutes 1915-16. 
 
 Date of Act: 
 
 Interest Rate Allowed: 
 
 Other Fees and Charges Allowed : 
 
 Limitation on Amount of Loan: 
 
 Licensing Requirements : 
 
 Limitation on Dividend : 
 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 1913. 
 
 3 per cent, per month. 
 
 None. 
 
 Amount loaned to one person shall not 
 exceed $250. 
 
 Companies incorporated under this Act 
 must report annually to the auditor of 
 public accounts, who has the power of 
 examination and supervision over such 
 companies. 
 
 Capital stock shall not be less than 
 $25,000. Corporation must keep record 
 of loans and deliver copies of all papers 
 to borrower. Bond of $5,000 filed with 
 the County Clerk of the County in which 
 business is carried on. Governor of the 
 state and Mayor shall each appoint one 
 director. Number of directors shall not 
 exceed nine. 
 
 Dividend shall not exceed 6 per cent per 
 annum. 
 
 If illegal rate of interest is charged con- 
 tract is invalid and right of recovery to 
 the excess above the rate specified ac- 
 crues to the borrower who has paid such 
 excess rate. Notes secured by wage as- 
 signments must state this fact on their 
 face and are subject to original defenses 
 in the hands of an assignee. Any wage 
 association securing notes which do not 
 state this fact on their face are void. 
 
 Any director, officer or employe of a cor- 
 poration organized under this Act who 
 receives compensation in excess of the 
 legal rate herein fixed is guilty of a mis- 
 demeanor. On conviction shall be fined 
 up to $100.00 or imprisoned up to 6 
 months, or both. Attorney General shall 
 take the necessary legal steps to wind up 
 the business of the corporation violating 
 the Act. 
 
 INDIANA: Acts of 1913, p. 457, or Revision of 1914, Sections 8277-A to 8277-H. 
 
 Date of Act : 
 
 Interest Rate Allowed : 
 
 Other Pees and Charges Allowed: 
 
 Limitation on Amount of Loan : 
 
 Licensing Requirements: 
 
 1913. 
 
 2 per cent, per month. 
 
 $3.00 for investigation of secured loans. 
 
 $250.00. 
 
 Companies making loans under $250.00 
 and charging interest at a rate more 
 than 8 per cent, per annum shall be li- 
 censed as petty money lenders by the 
 
 72
 
 Limitation on Dividend: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 Clerk of the Circuit Court of the county 
 
 in which they do business. License fee 
 
 $50. Bond $2,000. 
 None. 
 Upon violation of Act loan shall be null 
 
 and void as to amounts paid in excess of 
 
 the amount actually loaned. 
 Any violation of Act shall be deemed a 
 
 misdemeanor, punishable by a fine of 
 
 from $10 to $100 and imprisonment up 
 
 to 30 days. 
 
 IOWA: Supplemental Supplement 
 Date of Act: 
 Interest Rate Allowed: 
 Other Fees and Charges: 
 
 Limitation on Amount of Loan 
 Licensing Requirements : 
 Limitation on Dividend: 
 Rights of Borrower Under Act : 
 
 Penalty for Violation : 
 
 to the Code of Iowa, 1915, Section 3041-A. 
 
 1915. 
 
 2 per cent, per month. 
 
 Cost of drawing papers $ 1.00 
 
 Examination: 10 per cent, when 
 
 loan is under $50.00 
 
 No fee greater than $ 5.00 
 
 A recording fee if required. 
 : None. 
 
 None. 
 
 None. 
 
 If suit is brought on usurious contract, 
 plaintiff is entitled to recover principal 
 sum only, but must forfeit 8 per cent, of 
 principal remaining unpaid to State for 
 use of the school fund. 
 
 Violation of interest rate shall be deemed 
 a misdemeanor, punishable on conviction 
 by a fine of from $25 to $500 or im- 
 prisonment from 30 to 90 days. 
 
 MAINE: Section 2 of Chap. 46, Revised Statutes, as amended by Chap. 90 of 
 the Laws of 1905, as amended by Chap. 979 of the Laws of 1907. 
 
 Date of Act: 
 
 Interest Rate Allowed : 
 
 Other Fees and Charges Allowed: 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 Limitation on Dividend: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 1907. 
 
 3 per cent, per month for 3 months and 
 thereafter not to exceed 15 per cent, per 
 year. 
 
 $3.00 for the expense of making the loan. 
 
 $200.00. 
 
 None. 
 
 None. 
 
 All loans violating this Act shall bear 
 interest at the rate of 6 per cent only, 
 and all payments in excess of 6 per cent 
 shall be applied to the discharge of the 
 principal. 
 
 None. 
 
 MARYLAND: Laws of 1912, p. 1620, Chapter 835, amending Sections 6 and 7 
 of Article 49 of the Public General Laws of Maryland. 
 
 Date of Act: 
 
 Interest Rate Allowed : 
 
 Other Fees and Charges Allowed : 
 
 April 11, 1912. 
 6 per cent, per annum. 
 May charge following fees: 
 $5.00 for $50.00 or less. 
 $6.00 for $50.00 to $100.00. 
 5% of excess additional for $100 
 
 $1,000. 
 
 2%% of excess additional for over 
 $1,000. 
 
 73
 
 Limitation on Amount of Loan : 
 Licensing Requirements: 
 Limitation on Dividend: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 None. 
 
 None. 
 
 None. 
 
 A loan in connection with which violation 
 occurs is void and borrower is entitled 
 to recover all sums paid on account of it. 
 Assignment of wages to secure usurious 
 loan is void. Art. 8, Sec. 15. 
 
 Fine up to $100 for the first offense; fine 
 up to $100 and imprisonment up to 30 
 days for each subsequent offense. 
 
 MASSACHUSETTS: Acts of 1911, Chap. 727, as amended by Acts of 1912, 
 Chapter 675, as amended by Chap. 347, Laws of 1913, a* amended by 
 Chap. 224, Laws of 1916 (lacking). 
 
 Date of Act: 
 
 Interest Rate Allowed : 
 
 Other Fees and Charges Allowed : 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation : 
 
 1911-1912-1913. 
 
 May be fixed by Supervisor or Loan Agen- 
 cies, not to exceed 3 per cent, per month. 
 
 None. 
 
 $300.00. 
 
 All persons making loans of less than $300 
 and charging more than 12 per cent, per 
 annum must be licensed by the Super- 
 visor of Loan Agencies. License fee not 
 less than $100. Bond $5,000. If persons 
 engage in business without a license, 
 they may be fined up to $500 or impris- 
 oned up to 60 days, or both, and loans 
 made by such unlicensed persons are 
 void. 
 
 None. 
 
 Upon violation of interest rate the bor- 
 rower may file a complaint with the Su- 
 pervisor of Loan Agencies who, after a 
 hearing, may order excess amounts re- 
 funded, or may make such other order 
 as he deems necessary, or the loan may 
 be declared void by the court upon peti- 
 tion of the borrower, who shall receive 
 back the unlawful interest collected, with 
 twice the legal costs. 
 
 Violation of Act may be punished by finf 
 up to $500 or imprisonment up to 60 
 days, or both, and the license may be 
 revoked by the Supervisor of Loan 
 Agencies. 
 
 MICHIGAN: Chapter 228, Acts of 1915. 
 
 Date of Act : 
 
 Interest Rate Allowed: 
 
 Other Fees and Charges Allowed: 
 
 Limitation on Amount of Loan: 
 
 1915. 
 
 3 per cent, per month on loans of $100 or 
 
 less 
 2 per cent, per month on loans of $100 
 
 $300 
 
 $1 where amount is $50 or less 
 
 $2 where amount is over $50 
 
 Where loan is for less than 4 months 
 
 $1 for 50 or over 
 
 50c for $50 or less 
 
 $300.00 
 
 74
 
 Licensing Requirements: 
 
 Rights of Borrower Under Act: 
 
 Penalty for Violation: 
 
 All persons making loans of $3.00 or less 
 and charging over 7 per cent, per an- 
 num must be licensed by the City Clerk. 
 License fee $50. Bond $1,000. 
 
 If interest rate is in excess of amount 
 fixed by law, the loan is void and bor- 
 rower cannot be made to pay back the 
 money received or any part thereof. 
 
 Fine no to $100 for first offense. Fine up 
 to $100, revocation of license, and, in 
 discretion of court, imprisonment not 
 exceeding 60 days for the second of- 
 fense. 
 
 MINNESOTA: Chapter 439, Acts of 1913. Sections 5805 to 5811. 
 
 Date of Act: 
 
 Interest Rate: 
 
 Fees and Charges Allowed: 
 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 Penalty for Violation: 
 
 1913. 
 
 1 per cent, per month. 
 In case of chattel mortgages where pos- 
 session is not taken fees may be charged 
 in addition to the interest. 
 $1.75 on $20 or less 
 2.75 on 20 to $45. 
 3.75 on 45 to 75. 
 4.75 on 75 to 150. 
 5.75 on amounts over $150. 
 
 $200.00. 
 
 Each corporation must be licensed to en- 
 gage in salary loan or chattel mortgage 
 loan business. License to be issued by 
 the City Clerk or corresponding officer. 
 Fee $25.00. Application must be ac- 
 companied by affidavit, stating place of 
 business, names of officers and man- 
 ager; also that in the year preceding al- 
 plieation the company did not pay over 
 6 per cent, in dividends. 
 
 Six per cent. ( 6<7r ) . 
 
 No special rights given by Act. 
 
 None. 
 
 MISSOURI: Page 545, Acts of 1913. 
 Date of Act: 
 Interest Rate Allowed: 
 
 Other Fees and Charges Allowed: 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 1913. 
 
 2 per cent, per month, not collectible in 
 advance. 
 
 $1 50 for examination of chattels. 
 
 No loan greater than $300.00. 
 
 In cities of over 30.000 population per- 
 sons engaging in chattel loan business 
 and charging over 8 per cent per an- 
 num must be licensed. License may 
 be granted by the Mayor of the city and 
 fee may be fixed by ordinance. Until it 
 is fixed, however, it shall be $25.00 and 
 a bond of $2,000 shall be given. Every 
 City to which this Act now applies or 
 hereafter shall apply shall have the 
 right to provide by ordinance consist- 
 ently with this Act for the licensing, 
 supervision, regulation and control of 
 every person, firm, partnership, corpora- 
 
 75
 
 Rights of Borrower Under Act: 
 
 Penalty for Violation: 
 
 tion or association within its jurisdic- 
 tion that is engaged or desires to en- 
 gage in the transaction of the chattel 
 loan business in the said city under the 
 provisions of this Act. 
 
 Upon violation of the Act the loan shall 
 be void and the principal remaining un- 
 paid shall be forfeited to the borrower. 
 
 Violations of the Act shall be considered 
 misdemeanors punishable by fine of 
 from $100 to $500 or imprisonment 
 from 30 to 90 days. 
 
 NEBRASKA: Chapter 204, Laws of 1915. 
 
 1915. 
 
 10 per cent, per annum. 
 
 Brokerage fee of l/10th the amount 
 loaned. Examination fee 50c on loans 
 up to $50. 
 
 None. 
 
 Must be licensed to engage in business. 
 The records must be open to inspection 
 by the Secretary of State. License fee 
 $60. Bond $2,000. 
 
 None. 
 
 Upon action by the borrower for violation 
 of this Act the lender shall forfeit to 
 the borrower both the principal and in- 
 terest. 
 
 Punishable by fine from $25 to $100, or 
 imprisonment from 30 days to 3 months. 
 Remarks: Any person making a false statement to secure a loan shall be 
 fined up to $25 or imprisoned up to ten days. 
 
 Date of Act: 
 
 Interest Rate Allowed: 
 
 Other Fees and Charges Allowed: 
 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation: 
 
 NEW JERSEY: Chapter 49 of the 
 Date of Act: 
 Interest Rate Allowed: 
 Other Fees and Charges Allowed 
 Limitation on Amount of Loan: 
 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation: 
 
 Laws of 1914. 
 
 1914. 
 
 3 per cent, per month. 
 : None. 
 
 No greater loan than $300.00 to one in- 
 dividual. 
 
 Every firm in the business of loaning 
 money in amounts less than $300.00 
 must be licensed by the Commissioner 
 of Banking and Insurance. License fee 
 $50. Company must file bond of $5,000.00 
 with Commissioner and submit to annual 
 examination. 
 
 None. 
 
 Upon violation of Act loan is void and 
 borrower entitled to recover all sums 
 paid. 
 
 Violation of Act shall be deemed a misde- 
 meanor. License may be revoked for 
 violations. 
 
 NEW YORK: Chap. 588 of the Laws of 1915, amending Sec. 13 and Art. 9 of the 
 
 Banking Law and repealing Chapter 518 of the Laws of 1914. 
 Date of Act: 1895-1915. 
 
 Interest Rate Allowed: 2 per cent, per month not chargeable in 
 
 advance. 
 
 76
 
 Other Fees and Charges Allowed: 
 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 
 Rights of Borrower Under Act: 
 Penalty for Violation: 
 
 $2.00 for loans over $50.00 
 1.00 for loans under 50.00 
 
 No loan shall be for more than $200.00. 
 
 Every personal loan company must file a 
 bond with the Superintendent of Banks 
 in amount equal to l/10th of the capi- 
 tal stock of the company and not less 
 than $3,000, which must be renewed an- 
 nually. 
 
 No broker shall be allowed to draw profits 
 of more than 12 per cent, on the origi- 
 nal capital, after allowing for reason- 
 able expenses, under penalty of being 
 compelled to reduce interest charges. 
 
 On proof of violation of Act debt is dis- 
 charged and security void. 
 
 Violation shall be deemed a misdemeanor. 
 
 Remarks: Any person offending against any -provision of this Act is a com- 
 petent witness against any other person so offending and shall not be liable to 
 prosecution for such violation and the testimony shall not be used against the 
 person so testifying. (Section 370.) 
 
 No company or person shall publish or cause to be published any statement 
 as to rates, credit, etc., which is false or calculated to deceive, or he shall be 
 considered guilty of misdemeanor. 
 
 OHIO: Acts of 1915, Sections 6346-1 
 Date of Act: 
 Interest Rate Allowed: 
 Other Fees and Charges Allowed: 
 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower Under Act: 
 
 Penalty for Violation: . 
 
 to 6346-10. 
 
 May 11, 1915. 
 
 3 per cent, per month. 
 
 f 1 00 inspection fee on loans up to $50. 
 which run for not less than 4 months. 
 
 None. 
 
 All persons charging over 8 per cent, per 
 annum must be licensed by the Superin- 
 tendent of Banks. License fee $100. 
 Bond $2,000. Applicant shall give full 
 information to the Superintendent as to 
 personnel of company and shall submit 
 to inspection. 
 
 None. 
 
 On violation of the Act contract shall be 
 void. 
 
 Punishable by fine of from $50 to $200 for 
 first offense: $200 to $500 and imprison- 
 ment up to 6 months for second offense; 
 also revocation of license. 
 
 OREGON: Chap. 219 of the General Laws of 1915, repealing Chapter 278 of the 
 General Laws of 1913. 
 
 Date of Act: 
 
 Interest Rate Allowed: 
 
 Other Fees and Charges Allowed: 
 Limitation on Amount of Loan: 
 
 Licensing Requirements: 
 
 1915. 
 
 3 per cent, per month. Minimum charge 
 $1.00. 
 
 None. 
 
 No loan greater than $300 to any one 
 person. 
 
 Must secure license to loan money at a 
 greater rate than 10 per cent, per an- 
 num. License fee $100, granted only to 
 bona fide residents of the State of Ore- 
 gon. Bond $1,000. Company must keep 
 register showing amount loaned, date 
 loaned, date due, rate of interest, etc. 
 
 77
 
 Penalty for Violation. None. 
 
 Limitation on Dividends: - No special rights given under the Act. 
 
 Rights of Borrower Under Act: Violation of Act shall be considered a mis- 
 demeanor. 
 
 Remarks: Any assignment of salary bearing interest greater than 10 per 
 cent, shall have no leyal force or effect unless the assignment recite on its face 
 that it is executed to secure a loan made in conformity to this Act and re- 
 corded in the Loan Register of the lender. 
 
 PENNSYLVANIA: Chapter 432, 
 Date of Act: 
 Interest Rate Allowed: 
 
 Other Fees and Charges Allowed: 
 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower under Act: 
 
 Penalty for Violation: 
 
 of the Acts of 1915. 
 
 1915. 
 
 2 per cent, per month on loans up to $100. 
 
 2 per cent, per month on loans from $100- 
 to $300. 
 
 No charge up to $15.00. 
 
 $1 for loans from $15 to $50. 
 
 $2 for loans of $50 and over. 
 
 $300.00. 
 
 License issued by the Banking Commis- 
 sioner. Fee $50; bond $5,000. Must 
 make full statement of personnel of 
 company, etc., in application for li- 
 cense. 
 
 None. 
 
 Person paying excess interest may re- 
 cover sum paid, with interest at 6 per 
 cent, and a penalty of $50.00. 
 
 Fine of $500.00 for first offense; fine and 
 imprisonment up to 6 months for each 
 subsequent offense. 
 
 RHODE ISLAND: Chapter 838 of the Laws of 1912; amendment to Section 1, 
 Chap. 434 of the Public Laws of 1909. 
 
 Date of Act: 
 
 Interest Rate Allowed : 
 
 Other Fees and Charges Allowed: 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 Limitation on Dividends: 
 Rights of Borrower under Act: 
 
 Penalty for Violation: 
 
 1912. 
 
 3 per cent, a year on loans over $50.00; 
 
 5 per cent, per month for the first 6 
 months and thereafter 2% per cent, per 
 month on amounts less than $50. 
 
 None. 
 None. 
 None. 
 None. 
 
 Contract in violation of act is usurious 
 
 and void, except as to bona fide holders. 
 
 Fine up to $500.00 or imprisonment up to- 
 
 6 months. 
 
 TENNESSEE: Chapter 109 of the Laws of 1905. 
 
 Date of Act: 
 
 Interest Rate Allowed: 
 
 Other Fees and Charges: 
 
 1905. 
 
 6 per cent, per annum. 
 Lender may charge for investigating se- 
 curity as follows: 
 
 50c for loan of $5.00 or less. 
 70c for loan from $5.00 to $10.00. 
 $1.00 for loan from 11.00 to 20.00. 
 1.50 for loan from 21.00 to 35.00. 
 2.00 for loan from 36.00 to 60.00. 
 6 per cent, of amount of loan 
 on loans over $60.00. 
 
 78
 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 
 None. 
 
 Every firm in the business of making 
 loans on personal property, wages or 
 salaries must obtain a license. License 
 shall be issued by the licensing officer 
 of the City or the County Clerk if out- 
 side incorporated city. Bond of $1,500 
 must be filed. Record of loans, renew- 
 als, payment of interest, etc., must be 
 kept open to the inspection of all offi- 
 cers of the laws and the grand juries 
 on penalty of revocation of license. 
 
 None. 
 
 Rights of Borrower under Act: Paj-ments made in excess of the legal rate 
 
 shall be considered as payments on the 
 principal. 
 
 All who engage in business without li- 
 cense shall be guilty of misdemeanor 
 and "grand jury is hereby given inquis- 
 itorial powers over all violations of 
 Act." 
 
 Penalty for Violation: 
 
 VIRGINIA: Chapter 156 of the Acts 
 Date of Act: 
 Interest Rate Allowed: 
 Others Fees and Charges Allowed 
 
 Limitation on Amount of Loan: 
 Licensing Requirements: 
 
 Limitation on Dividends: 
 Rights of Borrower under Act: 
 
 Penalty for Violation: 
 
 of 1906. 
 
 March 12, 1906. 
 6 per cent. 
 
 : Lender may charge fee for investigat- 
 ing security: 
 
 50c on $ 5.00 or less. 
 75c on 5.00 to $10.00. 
 $1.00 on 10.00 to 20.00. 
 1.50 on 20.00 to 35.00. 
 2.00 on loans over 35.00. 
 Act does not apply to loans made at one 
 
 time in amounts over $150.00. 
 Must be licensed in order to conduct busi- 
 ness of making personal property and 
 wage loans. Fee $100. Must also file 
 bond, $1,000, with the Clerk of the Cir- 
 cuit Court. 
 None. 
 
 Any fee in addition to those prescribed 
 or interest in excess of legal rate shall 
 be considered as payment on the prin- 
 cipal, and the license of the person so 
 charging may be revoked. 
 None. License may be revoked in dis- 
 cretion of Circuit Court 
 
 Chapter 278 of the Laws of 1905, as amended by the Act of 
 July 23, 1915, or Chap. 79, Sections 1685 to 1692 of the Revised 
 Statutes of 1915. 
 
 1905-1915. 
 
 10 per cent, per annum. 
 
 In case of secured loans lender may 
 charge a fee of 7 per cent, per annum 
 for $100 or less, and 4 per cent per 
 annum over $100. 
 
 None. 
 
 WISCONSIN: 
 
 Date of Act: 
 
 Rate of Interest Allowed: 
 
 Other Fees and Charges Allowed 
 
 Limitation on Amount of Loan: 
 
 79
 
 Licensing Requirements: Must obtain permit from the Commis- 
 
 sioner of Banking to do business and 
 books are open to his inspection. 
 
 Limitation on Dividend: None. 
 
 Rights of Borrower under Act: All contracts reserving a greater rate 
 
 of interest than 10 per cent, per annum 
 shall be valid as to the principal sum 
 but not as to the interest, and every 
 person who has paid greater than the 
 legal interest may recover treble the 
 amount of money so paid. 
 
 Penalty for Violation : Any person receiving more than 10 per 
 
 cent, interest shall be deemed guilty of 
 a misdemeanor and subject to fine and 
 imprisonment. 
 
 80
 
 APPENDIX C. 
 Loan Shark Documents. 
 Form No. 1. 
 
 Chicago, 19 
 
 STATEMENT^ 
 
 For the purpose of obtaining credit from and with thiknowkdteof. and spec u 
 
 see to Paragraph is 
 hereby affirm as follows: 
 
 For ine purpose 01 Detaining credit irom and with th- knowkJte 04. and sperul 
 
 reference to Paragraph 199, Section 97, Chapter 33, Revised Statutes of Illinois i which law applies to obtaining credit by false representations). I d > 
 htrthv iritrm as follows: 
 
 My full name is Age Married or Sinjle 
 
 Employed by ; 
 
 For years. Position Salary f per payable. 
 
 Working under 
 
 Formally with for_ 
 
 I for years, where I. 
 
 formerly lived for years, where I . 
 
 I have accounts with 
 
 My total indebtedness does not exceed $ My personal property is orth f . 
 
 Never was in bankruptcy 
 
 I do not owe any money lenders? 
 
 Brothers . 
 Sisters 
 
 These statements are made for the wle purpose of securing credit from you. and with the full knowledge on my part that if they are not true 
 and 1 in granted a loan, it will be securing money under false pretenses. 
 
 -Ctt*U 
 
 The statement which is given to the applicant to fill out when he applies for 
 a loan. The reference to Chapter 38, Revised Statutes, is particularly impressed 
 upon him, and full name, no matter how long, is insisted upon. Applicant is never 
 considered if he has been through bankruptcy proceedings. 
 
 This information and that in form No. 5 is particularly valuable to the "skip- 
 hunter," as the tracer is called, in case the victim decamps. 
 
 81
 
 Form Nos. 2-A and 2-B. 
 
 \a 
 
 a 
 
 31 JL* S|l* 
 ! Sis S-!?! 
 
 ^: !{S ilfll, 
 
 o^ i^i HNf 
 v^ ill sjsi 
 15 m*s? 
 
 82
 
 Two notes are then made out, one for the principal and one for the "pre- 
 mium," as they call it. These are made payable to self and indorsed by the 
 applicant making loan, and are negotiable. If this indorsement is by accident 
 overlooked, the word "myself" is stricken out and the loan agent's name inserted. 
 In signing this note, the applicant signs an agreement binding him to greater 
 possible expense than the "premium," and also a power of attorney, also agreeing 
 to certain waivers of legal rights which are inalienable if he were aware of the 
 fact, which he generally is not. In case of protest by applicant or refusal to pay, 
 the second or "premium" note is filed or destroyed and the principal note is 
 taken as basis of action, which is unlikely, as it embodies a contract for more 
 than originally agreed. 
 
 Form No. 3. 
 
 Cswislderatlew. to me in hand paid by ...................... i ................... , the receipt f whkh I* hereby 
 
 ?k nowledgtd. 1 berebv sell, transfer and ict-ovtr to ................ ."" ................. hi* heirs legal representatives and at<igns. 
 
 all salarv, wge* (and claims for same). earned and to be earned, and all other claims and demand* due me or to become d-. mt from any 
 peracn. firm, company or corporation by whom I am now employed or may hereafter be employed, and who does or may owe me money for 
 any consideration whatsoever, until each and every of say said obligations to Mid asvicnce are paid; and 1 hereby authorize and dnct any 
 person, firm, company or corporation who i* indebted to me. and re^efvine notice of this assignment, tw pav any and all amrjunta cf money 
 held to mv credit, to the holder of this inslr umcru; and I hereby authorize and empower the holder hereof to receive said amount or amount* 
 and receipt for same in my name. 
 
 In consideration of his interest in the subject-matter. I hereby irrevocably appoint 
 
 my said assignee, his heirs leenl representatives and assigns, the indebtedness obligation and liability aforesaid and I do hereby covenant 
 and agree that I will not and that my heirs, legal representatives and assigns shall not. find no person, whether employer 01 otherwise, 
 ahall for me or to my bene'it or advantage deny the due and lawful execution of said assignment or assignments made in pursuance and by 
 virtue hereof, or in anv mannerqaestion, dispute, litigate or controvert the validityof same: acd 1 hereby ratify aod coniiim all acu that 
 y said attorney may do hereunder. 
 
 Witness my hand and seal t Chicago. 111., this day of A. D.. 191... 
 
 Form No. 3 is a wage assignment and power of attorney combined, of the most 
 iron-clad type, representing ' ' many years of experience and much thought to 
 cover every possible loophole for evasion" on the victim's part. Two instruments 
 are combined here, as in No. 1, principally to avoid exciting fear or suspicion by 
 the presence of too many documents. To the unintiated it appears concise and 
 businesslike rarely read, rarely understood.
 
 Form No. 4. 
 
 Folio 
 
 W 
 
 o 
 
 w 
 
 CO 
 
 HH 
 
 K 
 H 
 
 No extensions granted under any circumstances. 
 Each payment must be promptly made ON the day 
 it is due. 
 
 Bring or send this with each payment. 
 
 w 
 w 
 
 t- 1 
 
 O 
 
 < 
 
 2! 
 O 
 
 O 
 
 O 
 
 f 
 f 
 w 
 n 
 
 H 
 O 
 
 o 
 o 
 O 
 
 cj 
 
 w 
 r 
 w 
 
 > 
 
 H 
 O 
 
 O 
 
 w 
 
 The receipt form, the only receipt which is given. Date and amount is 
 entered at time of payment, and nothing else except the initials of the party 
 receiving payment, sometimes. Note that no name or address appears upon it, 
 and plain envelopes are always used. 
 
 84
 
 Form No. 6. 
 
 Name. 
 With_ 
 Street. 
 Res._ 
 
 Phone . 
 
 A concise record of the whole account is kept on this blank and filed. This 
 is in addition to regular books, in case of accident. 
 
 Form No. 5. 
 
 A pplicant 's Name_ 
 "Position 
 
 Date 
 
 Employer 
 Home Address 
 
 1st Reference 
 
 2nd Reference 
 
 3rd Reference 
 
 Date Wanted 
 
 Private memorandum blank for use of the loan agent only. On this he notes 
 all general information, also any peculiarity or particulars which might be of 
 advantage in the event of trouble. 
 
 85
 
 APPENDIX D. 
 
 The National Federation of Remedial Loan Associations. 
 
 I. Members of the Federation.** 
 
 Organized 
 
 1 Collateral Loan Co., Boston Mass. Thomas J. Reid, Gen. Mgr 1859 
 
 2 Workingmen's Loan Assn., Boston, Mass. T. A. Richardson, Mgr. .Apr. 1888 
 
 3 Economy Building & Loan Co., Cleveland, Ohio. D. H. Pond, Pres. Dec. 1892 
 
 4 St. Bartholomew's Loan Assn., New York, N. Y. J. R. Ferguson, 
 
 Mgr Feb. 1894 
 
 5 Provident Loan Society of New York, N. Y. Frank Tucker, 
 
 Vice-Pres May 1894 
 
 6 Worcester Collateral Loan Assn., Worcester, Mass. C. E. Burn- 
 
 ham, Treas Nov. 1896 
 
 7 Workingmen's Loan Association, Providence, R. I. Chas. F. Bige- 
 
 low, Mgr Jan. 1898 
 
 8 Chattel Loan Assn. of Baltimore City, Md. W. N. Finley, Mgr May 1898 
 
 9 First State Fawners' Society, Chicago, 111. Samuel Wolfort, Mgr. . .Nov. 1899 
 
 10 Citizens' Mortgage Loan Co., Cincinnati, Ohio. Hugh Cavanaugh, 
 
 Mgr June 1900 
 
 *11 Society for Savings and Loans of Washington, D. C. J. T. 
 
 Exnicios, Treas Jan. 1905 
 
 12 Provident Loan Society of Milwaukee, Wis. J. H. Rubin, Mgr Feb. 1905 
 
 13 Newark Provident Loan Assn., Newark, N. J. Wm. F. Davis, Mgr.. Apr. 1905 
 
 14 Workingman's Collateral Loan Co., Cleveland, Ohio. A. D. Bald- 
 
 win, Secy Apr. 1906 
 
 15 Provident Loan Society of Detroit, Mich. John E. Ryan, Mgr July 1906 
 
 16 Chattel Loan Co., Grand Rapids, Mich. F. E. Stroup, Treas Jan. 1910 
 
 17 Equitable Loan Assn., Minneapolis, Minn. R. C. Glidden, Mgr.... Apr. 1910 
 
 18 Provident Loan Society, St. Louis, Mo. C. M. Kelly, Mgr June 1910 
 
 19 People's Provident Association, Louisville, Ky. R. M. Rutherford, 
 
 Mgr Oct. 1910 
 
 20 Remedial Provident Loan Association, Paterson, N. J. F. X. 
 
 Meegan, Mgr Nov. 1910 
 
 21 Welfare Loan Agency, Kansas City, Mo. M. M. Powers, Supt Dec. 1910 
 
 22 Provident Loan Society, Seattle, Wash. H. C. Henry, Pres Jan. 1911 
 
 23 People's Loan Co., Portland, Me. C. A. McCarty, Treas Dec. 1911 
 
 24 Chattel Loan Society of New York, N. Y. L. D. Mapes, Mgr Feb. 1912 
 
 25 Provident Loan Society, St. Paul, Minn. D. S. Coffey, Mgr Feb. 1912 
 
 26 Utica Provident Loan Assn., Utica, N. Y. George E. Upson, Mgr.. .Mar. 1912 
 
 27 Provident Loan Assn., Sioux City, Iowa. A. L. Whitmer, Pres. ...Apr. 1912 
 
 28 Indianapolis Public Welfare Loan Assn., Indianapolis, Ind. C. R. 
 
 Jones, Mgr Nov. 1912 
 
 29 San Francisco Remedial Loan Assn., San Francisco, Cal. Albert 
 
 C. Auger, Mgr Dec. 1912 
 
 30 Provident Loan Society, Rochester, N. Y. F. A. Phillips, Mgr Dec. 1912 
 
 31 Remedial Loan Society, Buffalo, N. Y. Charles H. Brown, Jr., Mgr. Jan. 1913 
 
 32 Onondaga Provident Loan Assn., Syracuse, N. Y. Erasmus 
 
 Pellenz, Mgr Mar. 1913 
 
 86
 
 33 Duluth Remedial Loan Assn., Duluth, Minn. Harry E. Berg, Mgr. .May 1913 
 
 34 Equitable Collateral Loan Co., Youngstown, Ohio. John E. Taylor, 
 
 Mgr June 1913 
 
 35 First State Industrial Wage Loan Society, Chicago, 111. Arthur 
 
 E. Hill, Mgr Nov. 1913 
 
 36 Portland Remedial Loan Assn., Portland, Ore. C. Myers Herrman, 
 
 Mgr : Feb. 1914 
 
 37 Provident Loan Society, Dallas, Tex. M. J. Jacobus, Mgr June 1914 
 
 38 Remedial Loan Company of Philadelphia, Pa. Frank S. Benson, 
 
 Mgr Oct. 1914 
 
 39 Toronto Municipal Loan Assn., Toronto, Ontario. W. P. Morgan, 
 
 Secy Dec. 1914 
 
 40 Lynn Remedial Loan Society, West Lynn, Mass. Arthur J. 
 
 Northrup, Mgr Apr. 1915 
 
 *Resigned. 
 
 "According to Convention Proceedings, 1915. The Proceedings for 1916 are not 
 yet published. 
 
 II. Constitution of the Federation: 
 
 NAME. This organization shall be known as The National Federation of 
 Remedial Loan Associations. 
 
 OBJECT. The object of the organization shall be to encourage the formation 
 of local organizations and to aid and direct persons interested in the work and 
 who contemplate organizing remedial societies, giving information and advice 
 concerning legislation, finance, problems of administration, and general informa- 
 tion necessary for organization and management. 
 
 MEMBERSHIP. Subject to the decision of the Executive Committee, all socie- 
 ties shall be admitted to -membership that have been organized to make small 
 loans at reasonable interest rates, and have given evidence of their social 
 purpose by limiting the returns that they shall pay to their shareholders to a 
 reasonable rate, in accordance with the investment standards of the communities 
 in which they operate. 
 
 The annual membership dues shall be $25.00; societies admitted during the 
 fiscal year of the Federation shall pay a proportionate amount for such part of 
 the year as they shall be members. 
 
 OFFICERS. The officers of the Federation shall be -a Chairman and a Secre- 
 tary-Treasurer. These with seven others appointed annually by the Chairman 
 shall constitute the Executive Committee. Any vacancies occurring between 
 conventions shall be filled by the Executive Committee. 
 
 This Federation shall be affiliated with the national Conference of Charities 
 and Correction and shall meet annually, wheresoever practicable, as a part of 
 the National Conference, endeavoring to bring its particular problems to the 
 attention of the Conference and benefiting by the work of the Conference in 
 general. 
 
 87
 
 BUREAU OF INFORMATION. 
 
 OUTLINE OF SOCIAL SURVEYS IN PROGRESS OR RECENTLY COM- 
 PLETED, REGISTERED WITH THE BUREAU OF INFORMATION. 
 
 The need of a central bureau of registration or clearance, where accurate 
 and definite classified information may be obtained of what is being done or 
 contemplated in the Chicago field of social research, has, no doubt, been experi- 
 enced by those who have undertaken a survey or investigation. Realizing the 
 importance of having such information centralized, as a means of avoiding 
 duplication, saving time and effort, and promoting efficiency in social research 
 work, as well as for its own use and purposes, the Department of Public Welfare 
 has complied a catalogue of all Chicago surveys, studies and investigations relat- 
 ing to the physical city, the people of the city and their activities. In the 
 catalogue are also listed books, reports and pamphlets bearing upon Chicago 
 issued by governmental agencies, civic and social organizations, and private 
 individuals. Articles appearing in magazines and other periodicals since 1910 
 are entered, and maps and charts illustrating social conditions are described. 
 
 The value of this Catalogue depends upon its completeness, and the success 
 of this undertaking will depend, in a large measure, upon the co-operation and 
 team work of the agencies in registering with the Bureau, surveys, studies or 
 investigations contemplated or entered upon. It is useful to all, all should 
 strive to make it useful. 
 
 It is hoped by repeated announcements in the Bulletin to arouse interest 
 and enthusiasm and awaken the social workers to a realization of the advant- 
 ages of such central registration. 
 
 An outline of the more important surveys recently completed or in pro- 
 gress in Chicago, recorded with the Bureau of Information, follows: A few of 
 these have been outlined by the person in charge of the work. 
 
 Intensive Tuberculosis Survey. By the Municipal Tuberculosis Sanitarium. 
 Sept., 1916, to 
 
 The Municipal Tuberculosis Sanitarium is making an intensive survey of 
 eight square miles of Chicago bounded by North avenue, Twenty-second street, 
 Ashland avenue and State street. This district embraces some of the worst 
 districts of Chicago, as far as the number of tuberculosis cases, congestion, 
 poverty and poor housing are concerned. 
 
 The purpose of this survey is essentially educational and with the hope 
 of arousing the community to the betterment of conditions existing in this 
 section. The method of making this survey is as follows: 
 
 The eight square miles are divided into two divisions, one north and one 
 south, the north division being under the supervision of Dr. Clarence L. Wheaton 
 and the south four miles under the supervision of Dr. John Ritter. The whole 
 survey is under the direction of Dr. Thomas A. Hogan. Each four miles is 
 divided into four districts a mile square, each under the direction of a super- 
 visor. Each supervisor in turn has four field men working under him. In 
 other words, each field man has a quarter of a square mile as his particular 
 territory. 
 
 A house to house canvass is made, including factories, and particularly 
 factories in which food is manufactured or handled, as well as restaurants, 
 hotels, etc. Each individual is examined and, if found to be tubercular, com- 
 plete report is made out and sent to this office, where the information is de- 
 tailed. This tally consists of social, natal, occupational, housing and clinical 
 details. 
 
 88
 
 The superintendents and supervisors are old dispensary men, trained in 
 tuberculosis work, of many years' experience. All of the field men are physicians 
 and the majority of them are taken from Civil Service list. 
 
 In addition to the statistical tally sheets, we have a map on a scale of 200 
 feet to the inch, upon which all deaths from tuberculosis during the year shall 
 be spotted, as well as each case of tuberculosis. This spot map shall be used 
 as an exhibit for educational purposes. 
 
 We estimate that this survey, which began September 1st, shall take from 
 six to eight months to be completed. 
 
 THOMAS A. HOG AN, Medical Director. 
 
 Oook County Survey of the National Committee of the Mental Hygiene Society. 
 
 Dr. Herman M. Adler, Assistant Professor of Psychiatry, Harvard University, 
 until recently Chief of Staff of the Boston Psychopathic Hospital, has com- 
 menced a study of the facilities for dealing with mental disease and mental 
 deficiency in Cook County, Illinois. This survey, from which most important 
 results are expected, is made at the request of the Committee on Local and 
 State Charities of the Chicago City Club and of the Illinois Society for Mental 
 Hygiene. It will be under the general direction of the National Committee for 
 Mental Hygiene and expenses will be met by a special appropriation made by 
 the Rockefeller Foundation. Dr. Adler will devote his whole time for a period 
 of at least six months to this survey and, with the co-operation of public officials 
 and private agencies and individuals interested, will be able to give to Cook 
 County a report of great value in setting up constructive and scientific methods 
 of attacking what is probably the County's greatest problem. 
 
 Miss Frances Porter is associated with Dr. Adler in this survey and the 
 services of other workers to cover special departments of this investigation will 
 be secured. 
 
 (Summary from outline by Dr. Adler.) 
 
 Industrial Survey of Chicago. 
 
 By the University of Chicago, School of Commerce and Administration, under 
 
 the direction of Prof. F. M. Simons. 
 The following industrial surveys are in progress: 
 
 1. The Incidence of Industrial Location. 
 
 2. Investigation of Stock Handling and Stock Handling Standards. 
 
 3. Investigation of Forms used in Connection with Various Methods of 
 Handling Orders in the Wholesale Grocery Business. 
 
 4. Field Work in connection with Advanced Work in Industrial Organiza- 
 tion. 
 
 1. The Incidence of Industrial Location. In this work an attempt is being 
 made to plot the actual locations of twenty-seven of the principal manu- 
 facturing industries of Chicago. This work is being done in co-operation 
 with the City Club and the Chicago Board of Underwriters. 
 
 Briefly, the work consists of plotting on a series of base maps and 
 with distinctive designations the locations of the various plants of the 
 industries involved. The work is by nature slow and painstaking, and 
 will occupy a considerable period of time. As a result of this survey 
 it is hoped to be able to work out the factors of industrial location in 
 the Chicago district, and to secure information which might be used for 
 districting purposes, or for the rational location of individual industrial 
 establshments. 
 
 2. Investigation of Stock Handling and Stock Handling Standards. This 
 
 work is being conducted in co-operation with the Western Efficiency 
 Society and with the Chicago Association of Commerce. Questionnaires 
 
 89
 
 on stock handling have been prepared by experts in the practical field 
 and approved by the auditors of two of the largest corporations in the 
 city. 
 
 These questionnaires are now in the hands of undergraduate stu- 
 dents, who are making the field investigations under the joint super- 
 vision of their instructor and several interested business men. The 
 actual field work has been under way for but a few weeks, but, in view 
 of the practical character of the questionnaires and the co-operation 
 which is being secured, all are optimistic as to the possibilities for 
 setting up useful standards. 
 
 3. Investigations of Forms Used in Connection with Various Methods of 
 
 Handling Orders in the Wholesale Grocery Business. This is again a 
 question of standard practice and an attempt to find out actual condi- 
 tions of operation. The usefulness of such a survey, from the stand- 
 point of accounting and administrative control, is apparent. 
 
 4. Field Work in Connection with Advanced Work in Industrial Organiza- 
 
 tion. This work is in the nature of a co-operative research. About 
 thirty advanced students are working on an average of five hours a 
 week in the co-operating plants, studying the processing and organiza- 
 tion problems of the plant, and making weekly reports which, while 
 available at all times to the plant executive concerned, are confidential 
 in character. 
 
 The degree of co-operation secured in this work constitutes a real 
 tribute to the open-mindedness of our Chicago business executives. The 
 matter was put up to them as an opportunity of giving a group of in- 
 terested young men an insight into actual manufacturing conditions, 
 and they were told frankly that there would be, in all probability, no 
 practical returns. The degree of co-operation secured has been very 
 full and satisfactory, and the students are undoubtedly securing an un- 
 usual opportunity. 
 
 NOTE IN RESEARCH No. 2: 
 
 In conclusion there should be mentioned a co-operative research 
 plan under which Research No. 2 is being conducted. The Stock 
 Handling questionnaire now in the field is one of a series of ques- 
 tionnaires involving: (a) purchasing methods; (b) stock handling; 
 (c) time and motion study; (d) organization. Questionnaires for all 
 four investigations are complete. 
 
 The Purchasing questionnaire has been tried out in the field, and 
 some forty replies have been secured, but the committee is as yet un- 
 willing to publish any results, inasmuch as they feel that the intensive 
 methods used should be checked by further extensive work before any 
 attempt at generalization is made. 
 
 The other questionnaires have been tried out in only a limited 
 way, but sufficiently to test out their practical usefulness. The plan 
 now is to push the Stock Handling research to completion before at- 
 tempting to put the other investigations in the field. 
 
 P. M. SIMONS. 
 
 Survey of the West Side Y. M. C. A. District. 
 
 For the purpose of obtaining information concerning its neighborhood on 
 which to base a constructive program of future activities, the West Side Branch 
 of the Chicago Y. M. C. A. is conducting a social survey of its field. The terri- 
 tory included is bounded by Kinzie street on the north, the River on the east, 
 Twenty-second street on the south and Rockwell street on the west. The sur- 
 vey is being conducted under the following heads: industrial, educational, relig- 
 ious, recreational, governmental agencies, social service institutions, hotels and 
 lodging houses, vacant lots, assembly halls, saloons and pool halls, formal or- 
 ganizations, etc. Maps are being prepared to show the location of the various 
 items sought, and schedules are being used to record information concerning 
 each of them. The field work is being done by graduate students of the Young 
 Men's Christian Association College, under the direction of Earle E. Eubank. 
 
 90
 
 Survey of the Thirty-second Ward. By the Educational and Civic Department 
 of the Ridge Park Woman's Club. October 1, 1915, to 
 
 A survey of the entire ward is being made under the direction of Mrs. Frank 
 Kapple. Questionnaires are being used and information secured on all con- 
 structive and destructive agencies in the community churches, schools, play- 
 grounds, parks, polling places, moving picture theatres, pool rooms and saloons. 
 
 This survey will appear in published form. A map of the ward embodying 
 this data has been made and may be consulted at the Ridge Park Field House, 
 Ninety-sixth street and Maiden parkway. 
 
 Moving Picture Theatre Investigation. By the Chicago Political Equality League. 
 November, 1915, to April, 1916. 
 
 This survey was made with the purpose of discovering the proportion of 
 plays having objectionable features; violations of the law as to pink permits, 
 bad ventilation, non-observance of fire ordinance, etc. The points covered by 
 the schedule included name of theatre, proprietor, maker of films, posting of 
 permits, admission of minors, name of play, character of plot, with special 
 reference to its moral effect. 
 
 The survey covered every ward in the City of Chicago. Mrs. Guy Blanch- 
 aril, Chairman of the Moving Picture Committee, conducted the survey, assisted 
 by forty-five sub-chairmen, one from each police precinct, and precinct workers, 
 comprising a working staff of over four hundred women. 
 
 This survey has not appeared in printed form, but the files and reports are 
 accessible by applying to Mrs. Florence B. Gray, Tel. Wellington 6166, Secretary 
 of the Chicago Political Equality League. 
 
 Citizenship Survey of Jewish Residents. By Chicago Hebrew Institute. October, 
 1915, to August, 1916. 
 
 A survey of the territory within the Nineteenth Ward. The objective of 
 this survey was to secure facts regarding citizenship of neighborhood Jewish 
 residents. Twenty-one hundred families were visited and the following data 
 secured by schedule: The number of immigrants who had become citizens; the 
 number of those not applying, and the reasons stated for such failure; the 
 attitude of the immigrant toward citizenship; literacy in relation to citizenship, 
 industry and citizenship. 
 
 This survey was made under the direction of Phillip L. Seaman. Miss Lucille 
 Windette, Investigator. It is now in process of publication. 
 
 A Survey of the First Ward. By The Social Service Commission of the Rock 
 River Conference of the Methodist Episcopal Church. 
 
 Wabash Ave. Methodist Episcopal Church is one of three churches in the 
 heart of this populous ward, the other two being Grace Protestant Episcopal 
 Church and St. Mary's Roman Catholic Church. The field ministered to by 
 these churches was once characteristically residential but now, while con- 
 taining as many people as formerly, is crowded with rooming houses, cheap 
 and vile lodging houses and low grade places of amusement. 
 
 In order that the church might put on a program of activities which would 
 meet the needs of the area, 'the commission conducted for them a survey. The 
 work was under the immediate direction of Rev. R. N. Miller of the Commis- 
 sion. A house to house canvass was made of the entire ward by thirty students 
 from Chicago University and the Methodist Chicago Training School. Special 
 expert canvassers were employed with responsibility over special phases of the 
 investigation. The points covered in the investigation were industrial, recrea- 
 tional, educational, political and religious conditions. The report revealed a 
 situation second to none in the city in amount of vice and crime, per cent of 
 illiteracy, amount of intemperance and general immoral conditions. 
 
 The comprehensive survey has not been published in full. Graphic and 
 telling charts have been made. This material has been presented by the pastors 
 of the church, Drs. Pierce and Beck, and the parish visitor. Miss Beal, to 
 groups of social and religious workers throughout the city. 
 
 The survey furnished the information which inspired the new program 
 of service the church has undertaken in the upper South Side of the city. 
 
 F. O. BECK. Ph.D. 
 91
 
 Bibliography 
 
 SOCIAL SURVEYS. 
 
 The Surveys listed in this Bibliography have been added to the surveys 
 collection of the Department of Public Welfare. This material is not for dis- 
 tribution, but may be consulted in the Department. 
 
 The classification under which this material is assembled is taken from 
 the Russell Sage Social Survey Bibliography. 
 
 PURPOSE AND METHOD. 
 
 City Surveys. 
 
 Byington, M. F. What social workers should know about their own committees. 
 
 1912. 
 Riley, T. J. Sociology and social surveys (in American Journal of Sociology, 
 
 v. 16, pp. 818-33, May, 1911). 
 
 Rural Surveys. 
 
 Galpin, C. J. Method of making a social survey of a rural community. 1912. 
 Galpin, C. J. and Davies, G. W. Social surveys of rural school districts. 1914. 
 
 Special Subject Surveys. 
 
 Ayres, L. P. Educational surveying. July, 1915. 
 
 Ayres, L. P. School surveys, April, 1915. 
 
 Buchner, E. F. School surveys, 1914. 
 
 Curtis, H. S. Playground survey, May, 1914. 
 
 Stone, J. T. Value of a church community survey, March, 1913. 
 
 GENERAL SOCIAL SURVEY REPORTS. 
 
 City Surveys. 
 
 Belleville (Kan.). Belleville social survey, by E. W. Burgess and J. J. Sippy. 
 
 Birmingham (Ala.). Smelting iron ore and civics, by P. U. Kellogg, S. M. 
 Harrison and others, 1913. 
 
 Coopersburg (Pa.). Coopersburg survey, by T. M. Morrison, 1915. 
 
 Fargo (N. D.). Social survey of, Fargo, by Social Science Department, Fargo 
 College under M. C. Elmer, 1915. 
 
 Fort William (Can.). Report of a preliminary and general social survey of 
 Fort William, by B. M. Stewart, 1913. 
 
 Hamilton (Can.). Report of a preliminary and general social survey of Hamil- 
 ton, by B. M. Stewart, 1913. 
 
 London (Can.). London survey, 1913. 
 
 Los Angeles (Cal.). Better city; a sociological study of a modern city, 1907. 
 
 New Haven (Conn.). Documents of the Civic Federation, 1909-15. 
 
 Pictou (Can.). Report of a preliminary and general social survey of Pictou, 
 1915. 
 
 SPECIAL SUBJECT REPORTS. 
 
 Charities. 
 
 Springfield (111.). Charities of Springfield, by F. H. McLean, 1915. 
 
 Delinquency and Corrections. 
 
 New Haven (Conn.). Study of the problem of girl delinquency in New Haven, 
 
 by M. A. Wiley, 1915. 
 
 Springfield (111.). Correctional system of Springfield, 111., by Z. L. Potter, 1915. 
 Topeka (Kan.). Delinquency and corrections, by Z. L. Potter, 1914. 
 
 92
 
 Health. 
 
 Atlanta (Ga.). Report of survey of the Department of Health, by S. G. Lind- 
 
 holm, 1912. 
 El Paso (Texas). Preliminary report of the health survey of El Paso, by 
 
 J. P. Rich and B. L. Arms, 1915. 
 
 Galveston (Texas). Report of a sanitary survey of Galveston. 
 Ithaca (N. Y.). Survey of the public health situation, by Franz Schneider, Jr., 
 
 1914. 
 
 Milwaukee (Wis.). Health department, Milwaukee, by S. M. Gunn, 1912. 
 Topeka (Kan.). Public health survey of Topeka, by Franz Schneider, Jr., 1914. 
 
 Housing. 
 
 Bridgeport (Conn.). Brief survey of housing conditions in Bridgeport, by U. D. 
 
 Brown, 1914. 
 East Orange (N. J.). Report on housing conditions in the Oranges, by E. R. 
 
 Hall, 1915. 
 Grand Rapids (Mich.). Housing conditions and tendencies in Grand Rapids, 
 
 by U. D. Brown, 1913. 
 Lawrence (Mass.). Report of the Lawrence survey, by R. E. Todd and F. B. 
 
 Sanborn, 1912. 
 
 Minneapolis (Minn.). Housing problems in Minneapolis, 1914. 
 Pennsylvania. Housing conditions in Maine line towns, by Marion Bosworth. 
 Philadelphia (Pa.). Study of housing and social conditions in selected districts 
 
 in Philadelphia, by F. A. Craig, 1915. 
 
 St. Louis (Mo.). Housing conditions in St. Louis, by Charlotte Rumbold, 1908. 
 Wisconsin. Housing problem in Wisconsin, 1905-6. 
 
 Industrial Conditions. 
 
 Springfield (111.). Industrial conditions in Springfield, by L. C. Odenscrantz and 
 
 Z. L. Potter, 1915. 
 Topeka (Kan.). Industrial conditions in Topeka, by Z. L. Potter, 1914. 
 
 Mental Hygiene. 
 
 Washington (D. C.). Mental defectives in the District of Columbia, by E. O. 
 Lundberg, 1915. 
 
 Municipal Administration. 
 
 Atlanta (Ga.). Organization and administration of the city government of 
 Atlanta (exclusive of health and educational departments), by H. R. Sands. 
 
 Denver (Col.). Report on a survey of certain departments of the city and 
 county of Denver, 1914. 
 
 Los Angeles (Cal.). Efficiency in Los Angeles city government. 
 
 Los Angeles (Cal.). Administrative methods of the city government of Los 
 Angeles, 1913. 
 
 Recreation. 
 
 Indianapolis (Ind.). Indianapolis recreation survey, by F. R. North, 1914. 
 
 Portland (Me.). Recreation survey, by F. R. North, 1913. 
 
 Providence (R. I.). Recreation survey of the City of Providence, by F. R. North, 
 
 1912. 
 
 San Francisco (Cal.). Public recreation, by F. R. North, 1913. 
 Springfield (111.). Recreation in Springfield, by L. F. Hanmer and C. A. Perry, 
 
 1914. 
 Schools. 
 Butte (Mont). Report of a survey of the school system of Butte, by G. D. 
 
 Strayer, E. P. Cubberley and F. P. Bachman, 1914. 
 Colorado. General survey of public high school education in Colorado, by W. A. 
 
 Cook, 1914. 
 
 Colorado. Rural and village schools of Colorado, by C. G. Sargent, 1914. 
 Georgia (Morgan County). Educational survey of Morgan County, by M. L. 
 
 Duggan, 1915. 
 
 93
 
 New York (City). Digest of the New York school inquiry, 1913. 
 
 Reading (Pa.). Report on Reading school district, 1913. 
 
 St. Paul (Minn.) and Waterbury (Conn.). Waterbury and St. Paul help-your- 
 School surveys, 1913. 
 
 Wisconsin. Preliminary report of the Committee appointed by the State Superin- 
 tendent of Schools to investigate educational needs and conditions in Wis- 
 consin, 1912. 
 
 Vice. 
 
 Denver (Col.). Report of Morals Commission, 1913. 
 
 New York (City). Commercialized prostitution in New York City, by G. j. 
 Kneeland, 1913. 
 
 94
 
 CONTRIBUTIONS. 
 
 COOK COUNTY SURVEY OF THE NATIONAL COMMITTEE OF THE 
 MENTAL HYGIENE SOCIETY. 
 
 (An outline of this Survey appears on page 83.) 
 
 Intelligent American cities are no longer attempting to deal with their 
 great problems of dependency and delinquency by measures applicable only to 
 groups of persons. It has come to be generally understood that these persons 
 who, for one reason or another, become a charge upon the community must 
 be dealt with as individuals and, as individuals, either helped to self-support 
 and right living or segregated from the community in institutions where they 
 may receive appropriate care and education or live out their lives under super- 
 vision. We recognize now that the success of efforts for the economic or social 
 reconstruction of an individual depends chiefly upon that individual's personal 
 resources, and that among these resources none compares in its importance with 
 his mentality. With a normal mind, severe physical and economic handicaps 
 may be overcome; with a mind that is defective from birth or that has been 
 damaged by disease, the best-planned efforts at reconstruction are doomed to 
 failure. Already there is abundant evidence that feeble-mindedness, mental 
 disease and other maladjustments underlie an enormous proportion of the 
 cases of dependency, criminality and inebriety which heavily tax the city's 
 resources. 
 
 Although the controlling importance of mental factors in such problems 
 have come to be widely recognized, the method by which a community can best 
 deal with these factors is the subject of the widest difference of opinion. Experi- 
 ments are being tried in one place which have failed in other places and will 
 fail wherever tried because they are not based upon scientific conceptions of 
 the nature of mental disease or mental defects. There being no mechanism in 
 the city government fitted to deal with all phases of these problems, there exists 
 great uncertainty as to what should be done. 
 
 Fortunately, these are not wholly matters for experiment. Modern studies 
 of psychiatry have provided us with extremely useful means of diagnosis and 
 classification, and enough work has been done already in different parts of the 
 country to show which methods are advantageous and economical and which 
 are disadvantageous and wasteful. Perhaps nowhere in the United States has 
 a more successful attempt been made to bring the resources of the study of the 
 mind to bear upon the solution of social problems than in Boston. Here the 
 Psychopathic Hospital stands ready to serve the community in whatever way 
 it can. The parent with a queer child, the magistrate with a problem concerning 
 delinquency, the teacher with a difficult pupil, all can bring their troubles to the 
 Psychopathic Hospital, and there secure the best advicec which men trained in 
 this work are able to give. 
 
 The need of an expert, impartial study of the methods of dealing with 
 mental diseases and mental deficiency has been recognized recently in a number 
 of different places. At the request of Governors of the States, State boards 
 of control, State boards of charities and social or civic organizations, the 
 National Committee for Mental Hygiene has conducted or is at present under- 
 taking such studies in Tennessee, Wisconsin, South Carolina, Louisiana, Cali- 
 fornia, Connecticut, Georgia and Texas. 
 
 The Mayor and the Board of Estimate of New York City have seen growing 
 up in their community a number of unorganized attempts to deal with what 
 are apparently different phases of the same problem, and within a few weeks 
 a special committee has been appointed by the Mayor consisting of the Com- 
 missioner of Accounts, the Commissioner of Public Charities, the Commissioner 
 of Corrections, the Chairman of the Parole Board and the Presiding Justice of 
 the Children's Court, to present a constructive plan for the examination, classi- 
 
 95
 
 fication and proper treatment of mental defectives who present perplexing diffi- 
 culties in nearly all remedial or correctional work which the city undertakes. 
 The Mayor's Committee has requested the National Committee for Mental 
 Hygiene to make for it just such a survey as the study about to be commenced 
 in Chicago and the services of a psychiatrist of wide experience has been secured. 
 Thus studies of the same subject will be carried on simultaneously under the 
 same general direction in the two largest cities of the country. The comparison 
 of conditions and remedies which will be possible will be added to the value and 
 interest of the two reports. 
 
 DR. HERMAN M. ABLER, Director. 
 
 THE VISITING TEACHEE IN CHICAGO SCHOOLS. 
 
 Through the co-operation and support of the Chicago Woman's Club a type of 
 work new to Chicago has been inaugurated in the Jones School. The Visiting 
 Teacher is no* novelty in New York and Boston where the work has proved of 
 great value for the past ten years, but the experiment has never before been 
 tried here. 
 
 The position was filled for the first time in March, 1916, and has been 
 slowly evolving ever since. Without duplicating in any way the work of other 
 departments, the Visiting Teacher seeks to bring into closer co-operation the 
 school and the family in the interests of the child, so that through an extended 
 knowledge of the home conditions the backward and difficult may be more 
 effectively dealt with in the class rooms. 
 
 Each Visiting Teacher must work out her own field of action in relation to 
 the needs of the community in which her school is situated. The school grows to 
 be more and more the center of public and social life in the poorer districts of 
 our big cities; so that by becoming identified through every possible means with 
 the life of the community the Visiting Teacher can further the co-operative 
 influence of the school. 
 
 In the treatment of cases coming to the attention of the Visiting Teacher 
 she will use all available resources, and whether the need is relief, or employ- 
 ment, or a doctor's care will refer the case at once to the proper source. 
 
 Following up the boys returned from the Parental School suggests a 
 possible line of work badly needing attention. In the case of four boys returned 
 to the Jones School this fall, visits have been made to the homes and a friendly 
 relationship established with the parents. The boys will be kept track of and 
 every effort made to interest them in some club so that they will not so easily 
 fall into old habits. 
 
 The Community Center at the Jones School which meets twice a week, will 
 be another line of contact between the parents and the Visiting Teacher, and 
 through her visits to the homes she will be able to stimulate interest in its 
 different activities. 
 
 In short the Visiting Teacher will take up any line of work which falls 
 without the province of other departments, and which bears on the social, 
 physical, or moral welfare of the children. 
 
 The Visiting Teacher now in charge of this new work in the schools is Miss 
 Letitia Fyffe. It is hoped that this work will later be taken over by the Board 
 of Education and such activities established in each congested district. 
 
 CLYDE A. BROWN, Principal Jones School. 
 
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