.....                                         IV.

EXPERIENCES IN PHILADELPHIA.

This demoralizing system of extortion is by no means con¬
fined to New York City. Every large city of the country is
affected by it, and in a number crusades have been undertaken
to stamp out the evil. One of the first cities to engage in this
movement was Baltimore, and the excellent work of the Chattel
Loan Association of Baltimore in connection with it is described
later in this report; but the results of the crusade conducted by
the Police Department in Philadelphia are even more illustrative
of the situation. (").

The industrial depression following the panic of October,
1907, threw many men out of employment in Philadelphia. They
were consequently unable to meet payments due the loan com¬
panies, and the sheriff's office was flooded with executions. This
unusual activity on the part of the loan companies attracted the
attention of the sheriff and led to an inquiry on his part into the
situation. The startling disclosures resulting led to a more
extended investigation by detectives into the business practices
and methods of the money lenders. The offices of a number of
the larger concerns were raided and the books and papers seized.
At the same time widespread publicity was given to these activ¬
ities, and people who had borrowed money were invited to pre¬
sent their claims and grievances to designated officials. On the
basis of the mass of evidence thus secured a number of loan
office managers were arrested. As far as we know none of these
cases has yet come to trial, but the books seized are still in pos-

(^) The description of the Philadelphia situation which follows. Is sum-
murized from an unpublished report on the subject, prepared by Dr. Frank
.Tulian Warne.