European Stars and Stripes (Newspaper) - May 16, 1968, Darmstadt, Hesse Thursday May 196s a fish i the stars and stripes crime Pool Washington up sen ate investigators were told tuesday that organized crime i using loan shark operations 5takeover legitimate Busi it evilness said cities an states ignore it rather than fl8henry s. Ruth jr., Deputy director of the president s commission. On Law enforce ment testified that the Cosa no str a earned billions annually from lending Money at interest rates ranging from 100 to 1,000 per cent Ruth said the Cosa no Stra has 6000 members and said income from illegal Loans some exceed ing $100,000, was second Only tothe take from gambling operations. Ruth and Ralph f. Salerno of the National Council on crime told the Senate Small business committee that Many business men who borrowed from loan Sharks often wound up losing their establishments. Racket front the original owner unable to pay his debt finds himself operating a front for Racket operations at a nominal salary Ruth said. Loan Sharks have taken Over businesses ranging from optical stores to nightclubs to Brick companies. Sometimes the new owner Loots the business an files a bankruptcy petition. Organized crime uses loan sharking in tandem with Gam bling and other operations. The debtor victim becomes a Pawn in furthering other criminal activity and in broadening the legitimate business base of organized crime s Ruth who teaches Law at the University of Pennsylvania said most cities and states Are failing to attack lending rackets or other organized Crim activities. While most americans happily tolerate the rackets Ruth said mayors and governors want to avoid crackdowns against crime that although he contended they Are no directly connected with crime Ley just figure they Standmore to lose by fighting it than ignoring it. The chairman of the Small business committee Smathers a Fla. Disa greed. Most mayors i know 2u get rid of organized come he told Ruth. Peaking for the Justice Cut. Hem
