Posts Tagged ‘Philadelphia’

The Rod Steiger of 10th and Sansom

Thursday, June 17th, 2010

From: Jewish Exponent Dot Com

The Rod Steiger of 10th and Sansom?
June 17, 2010 – Michael Elkin, Arts & Entertainment Editor

Check.

Unusual chess move, perhaps, but de rigeur and the right move for anyone familiar with the 150-year-history of Carver W. Reed, the company that may just be king of the pawn shops in Center City.

The check? That’s the payoff — payment to customers for those items loaned out to the pawnbroker.

Somewhere, Rod Steiger is smiling — if not adding up the goods to be pawned.

“Oooh, Rod Steiger,” and Tod Gordon twists an imaginary knife in his heart.

He has heard it before, customers and friends citing the star of the film “The Pawnbroker,” the powerful 1964 drama about a Holocaust survivor who buries his heart and his memories in a shop he owns in East Harlem, where the symbolic three balls of the business weigh less heavily than the chains of anger that forever link Sol Nazerman (Steiger) to his concentration-camp past. “People expect to see a Rod Steiger,” Gordon mockingly grouses.

But instead, what they find is an avuncular and avidly friendly 55-year-old Jewish businessman — not with a brutal backstory, but a history of a nice, fourth-generation, family-run company, situated as it has been at the corner of 10th and Sansom for most of its existence, just a diamond’s drop from Jeweler’s Row.

Appropriate since, as Gordon relates, people pawn their jewelry here, the only items he accepts.

It is all a gem of a Father’s Day story, with Tod tied to it by his own grandfather, Harry, who purchased the business from Reed himself in the ’40s.

Now, customers are as likely to get buzzed in by Tod’s daughter, Rebecca, a recent college graduate with whom the paternally pleasant pawnbroker works side by side.

Seeking a seedy experience like those showcased in Hollywood scenarios of old? Try Netflix; what you get here, avows Gordon, is a business that fits in with the neighborhood.

“We look like a jewelry boutique,” he says.

Shop ’til they drop? As loans go out on the jewelry, Gordon is fast to state, most items on loan revert to their owners. Going for broke is not necessarily a forever state of being.

“Some 95 percent of the items we accept are reclaimed,” says Gordon.

What’s the Jewish claim on the business’ heritage?

“I’ve never thought of it” as a Jewish business, he muses.

But others have. Money-lending as a disreputable calling goes back centuries, with Shylock portrayed as a greedy merchant of venom by Shakespeare.

Indeed, in last year’s In Hock: Pawning in America From Independence Through the Great Depression, Wendy Wolosin wrote: “Works of popular culture had largely succeeded in creating a coherent, seemingly logical stereotype: the pawnbroker had become implicitly the Jewish pawnbroker — the Jew broker — and as Jews and pawnbrokers became increasingly stigmatized, the stereotypes reinforced each other.”

But stereotypes they were, and families like the Gordons have served as living, breathing antidotes to such fallacies.

“It’s not like someone says, ‘I want to be a pawnbroker’ for my career,” contends Gordon. “You learn from generations before you.”

And the Gordons have learned to make prospective customers comfortable. “At first, people can seem ill at ease coming in,” he concedes.

But it’s pull up to the counter and share a glass — well, diamonds, that is — or two.

“Later, they come back, calling out, ‘Tod!’” he kibitzes, in irreverent reference to the shout-outs to Norm on the TV series “Cheers.”

He adds: “Almost all my business is repeat business.”

And he repeats a mantra that is meaningful, especially to a businessman with excellent street cred — whether it be Sansom Street or elsewhere: “Everything we do is regulated” by laws meant to protect the customer.

A Family Affair
Gordon protects his legacy by having brought his daughter into the business. Her dual background in psychology and business in college helps quite a bit, both claim.

Stories about pawnbrokers can break the heart: Tales of customers in need of quick cash, losing cherished heirlooms forever.

“Customers have nine months to renew their contract,” explains Gordon, and even in cases where they don’t, he stresses that he’s not eager to cash in on someone else’s heartache.

“I’ve had items here for five to 10 years,” he claims.

No one has ever pawned the crown jewels, but there have been cases of extraordinary items. And while Rebecca affectionately kibitzes with her father, calling him the best of the best, he says that she is making the business even better, showing off her Internet and Web-design prowess and their new Facebook page.

Business face-offs with her father? No jewelers’ rows here; just understanding and communication with the man who gave her the best advice in life, she says: “He always told me, ‘Do what makes you happy.’ ”

And that, she says, is working with her dad: “It’s a blessing.”

“He’s always right — no matter how many times I try to prove him wrong,” she laughs.

If Tod’s ever had to wrestle with the direction his business has taken him, well, Gordon’s been trained for that as well: He founded and formerly owned and operated Extreme Championship Wrestling.

Appropriately, this man with a variety of interests was also a past president of the local Variety Club — giving back an important trait as he learned early on being raised in a Jewish home — as well as the State Pawnbrokers Association, dual facets of a fascinating career.

As another customer waits to be let in, Gordon concedes the special buzz he gets from life is from being dad to Rebecca and his two other children, noting that he was created for this role.

After all, he reveals of that special date in 1955, “I was born on Father’s Day.”

High-End Payday Loans

Monday, May 10th, 2010

From Philly Dot Com

High-end payday loans
By Harold Brubaker

Inquirer Staff Writer

From his pawnshop at 10th and Sansom Streets in Center City, Tod Gordon has an unusual window on credit and the economy.

Carver W. Reed & Co. Inc. is not the stereotypical pawnshop where the walls are lined with guitars and the glass cases are filled with cameras.

Instead, Carver W. Reed, which celebrates its 150th anniversary Tuesday, specializes in loans that use diamond and gold jewelry exclusively as collateral.

Gordon said his business had catered to wealthier clients for decades. Even so, he said, in 2008 and 2009 he saw a huge increase in the number of business owners pawning the gold watches and diamond jewelry they had bought in better days.

They needed the money to pay their employees, Gordon said, and could not borrow it from a bank.

“The number of people that have come in from walks of life that I never expected to see has been overwhelming,” Gordon said. His grandfather bought the business in 1949 from descendants of the founder and kept the name.

Most customers who started borrowing from him during the financial crisis are still playing catch-up, he said.

On the plus side for the economy, he noted, wholesale and retail demand have improved for the jewelry he ends up selling because loans are not repaid.

“I’ve noticed a dramatic swing in the last three months. People are starting to come back out again and spend money and buy again,” said Gordon, who zealously guards his clients’ privacy.

He also declined to disclose the value of his outstanding loans because each is backed by jewelry worth three or four times as much as the loan.

The Pennsylvania Department of Banking regulates pawnbrokers and limits the amount of interest that can be charged to 3 percent per month, Gordon said. That adds up to a high rate over a year, but for a month a $10,000 loan costs $300.

“You can’t go to a bank to get that,” Gordon said.

Building contractors take advantage of such financing to make payroll and buy supplies, he said.

“Their stuff is back out in 60 days max,” Gordon said. “I have many contractors; they are all big loan people.”

There are 57 licensed pawnshops in Pennsylvania, the same as three years ago, according to the state Banking Department. New Jersey has 35 licensed pawnbrokers.

The 2,600-member National Association of Pawnbrokers, based in Keller, Texas, says that most pawnshops are family businesses and that they are regulated by all the federal laws that apply to other financial institutions, such as the Truth in Lending Act and the Bank Secrecy Act.

“It’s an intriguing business,” Gordon said. He has worked full time at Carver W. Reed since graduating from college in 1977 and is thrilled to have a daughter in the business now.

He clearly enjoys people and the insights he gains on the economy. He talked about a new customer, a manufacturer of furniture for boats, who has been in business for 38 years and for the first time could not make payroll.

“That, to me, was a real sign of a trickle-down effect,” Gordon said.

“Everybody says, ‘The cruise lines are hurting,’ but nobody thinks about the guy making furniture for the cruise lines.”

 

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Copyright © 2009 - Stephen Krupnik - All Rights Reserved
Pawnonomics by Stephen Krupnik tells the infamous history of the pawn broking industry and shines a bright light into
its darkest corners, while also pointing out some pinnacles along the way.