The San Francisco call., 1897-02-18
Senator Holloway Intro
duces a Bill to Regulate
PaWnbrokers.
It Will Place Establishments on
a Higher Plane and Benefit
the Poor.
An Incorporated Company to Bt
Formed SINH ar 10 the One In
NV York.

SACRAMENTO CAL, Feb. 17.-All who
find it necessary to regularly or occasional
ly visit their uncle will be interested IN
Senate bill II, introduced by Senator
Holloway and passed by the Senate to-
day.
The measure is designed in the in terest
of the poor people who are compelled to
resort to pawnbrokers at times to keep the
wolf from the door. AS soon as it passes
the Assembly and receives the approval
OF the Governor, company will be
organized under it in San Francisco with
capital stock of 100000. with S. P.
Young as the principal stockholder. He
will subscribe SOC, 600.
Among other things the bill is intended
to place pawn broking, when conducted
by corporations, under the supervision of
the Bank Commissioners.
1t is the outgrowth of the success that
has attended the corporation known as
the Provident and Savings Loan Society
of New York, incorporated by the Van
derbilts largely as philan thropic meas
ure. That corporation has 5000, 600 in
vested and has paid its shareholders 6 per
cent per annum besides saving the poor
people or that city large amount of
money in the shape of interest and other
charges.
The principal features OF the bill follow ::
Any corporation which has or shall be in
corporated under the general incorporation
laws Of THIS State authorized by Its articles of
! incorporation to loan money a interest upon
the pledge or mortgage of goods, chattels. Sc
curities, and other personal property, and
upon mortgages of real estate, and 10 make in
vestments III stocks, bonds and other securi-
ties, shall be granted all the power and privi-
reyes necessary 1or the execution OF these pur-
poses; provided that nothing herein contained
shall authorize any such corporation to en-
gage in the business of banking. No business
shall be transacted by any such corporation
until all the capital stock OF such corporation
has been actually and in good faith subscribed
and at least 90 per centum thereof shall have
! been actually paid in, in cash.
Such corporations, when they have dispos-
able funds, shall loan on sill goods and cnat-
tells or on all safe securi ties offered embraced
within its rules and regulatio ii the order
| i'll which they are offered wi tn this exception
that they may always discriminate in favor of
small loans 10 the INDECENT.
II at any time any such corporation has dis
posable funds. which cannot be loaned readily
upon goods and chattels or upon safe securi-
ties, such corporation may ID axe loans of such
funds upon mortgages of real estate and may
make investments OF such funds in any stocks
bonds or other securities as the directors
thereof may deem advisable.
Such corporations shall in no case charge in
terest at rate exceeding per cent per
month provided, however, that all loans shall
shall be subject 10 months interest and
no loans shall be settled a a less charge than
10 cents.
All loans by such corporations shall be for q
time fixed, and not more than for one year.
and the mortgagor or pledgor shall have a
right to redeem his property mortgaged or
pledged, at any time before il is sold, on pay
ment OF the loan and rate of compensation to
the time OF the offer to redeem.
Property pledged to such corporations must
be held six months after the last date fixed by
contract for redemption.
The Board of Bank Comm missioners shall
have access TO the vaults, books and papers of
any such corporation, and it shall be their
duty TO inspect examine and inquire into its
affairs, and take proceedings i'll regard to it,
IN the same manner and TO the same extent as
il said corporation were savings bank or a
banking corporation.
Ally corporation which shall violate the
provisions OF the second section of this act
shall be liable to a penalty of 800 for each
and every day of the continuance of such vio-
lation; and any corporation which shall know
ingy violate any OF the provisions of any 9TH
er section of this act shall be liable to a PEN
atty OF notices. than $50 nor more than 500
for every such violation.
Such corporations shall pay annually in ad-
vance license fees as follows: To the Treasurer
OF State, who shall pay the same in to the
Bank Commissioners fund.-" the sum OF S25:
to the Treasurer of the city, or city and county
in which any such corporation is located the
of