Omaha daily bee., 1908-11-30
CURBPOWER OF LOAN SHARKS
Kew Bill to Be Presented in Lsgisls-
turs Against Body Snatchsrs.
FINE AND JAN ARE PExALrIEs
Joha o. Y~is=r snd w. p. rhswas
CoIiaborute 20 Draft Bin De-
signed - Protect PSsr
borrower.

s1.ive plans for proposed legislation
O. alnss the loan sharks have been outlined
10y John .. Yeiser and W. p. Thomas
from suggestions received from employers
Of labor end others and the experiences OF
attorneys In their practice The proposed
amendments to the present laws are still
in the formative stage and viii be studied
carefully before they are put in final form.
It IS the desire OF both that the law
when passed shall be constitutional and
not subject TO successful attack in the
court. II is also desired that the law.
while eliminating the worst abuses Of the
loan sharks who prey on poor and ~inexPer-
fenced people shall not interfere with legit-
innate business nor provide a way by which
the INSCRIPTIONS men might hold up CT
embarrass conscientious business men.
some Of the provisions Of the present draft
may - cut out after further considera-
ton and a new feature may be added. but
in the main IL Is believed the plan as out
lined now will form the principal part OF
the proposed legislation
In addition to the law directed at the loan
sharks one viii also be drawn to remedy
Abuses in the assigning Of salaries by men
II small incomes. Just how this psrtlcu-
lar evil will be reached has not been de-
termined yet
Il is not the intention 10 prohibit entirely
he loaning Of sm4H amounts OF money al
tatss Of interest higher than the present
rates. as Il is recognized that there are
Instances IN which chattel loans at high
rales or interest are desirable when the
applicant has no other way Of raising
Inc money he needs. The proposed law viii
effectively prevent the highway robbery
methods which have been pracriced by
some ehattel loan men in the past and
at the same time viii leave opportunity for
reasonable profits for the losn men,
Interest fixed by Law.
The proposed section relating to interest
charges Is as follows;
Any rate Of interest which may DC
agreed upon not exceeding ) per cent a
nsohtii FOR any sum Of money not exceed
inS s5 for a loan not exceeding ninety
1ays. includins extensions thereof ana
-. oeat per month for any sum not ex-
seedIng IS for the said time, and per cent
~ any sum not exceeding - for said
time. and 10 per cent per annum for ans
sum. IN excess thereof. or for any loan II
any amount longer than the said time lin
n-d above shan be valid upon any loan OF
rorbeasaace OF money. goods or things in
scfion which rate OF interest so agreed
upon may be taken yearly Or for any
A1AH VI -
uressly agreed. II Is further provided tina
any attempt 60 split up or divide a loan II
small sums and short time OF 20 take tn
same in the names OF different persons .
As 10 obtain the benefits Of said higne'
rate. or 10 avoid the provisions OF this &C
bv discount or any other device OF plan q
obtain any greater rate Of interest tnal
allowed by law. any such acts or suoter
frues shall be void and the person or per
sons attempting to avoid any of the pro
visions OF this act by any subterfuse WnaA
ever or in any Indirect manner shall b
subject 10 ali OF the penalties and provi
sfohs 81 tnfs art
No change is made in the provisions pro
vidlng the legal rate Of interest shah be
per cent and that interest on DEGREES an
shall be the same
The proposed draft Increases the penaie
against usury by providing IL more tina
the awful rate OF interest is charged o
loans not exceeding $50 both the prineips
and the interest shall be forfeited and tn
Ioaner shah not be entitled to recover !
any court. At present only the interest
forfeited II u~surious interest is charge
upon loans or forbearanees not included !
the foregoing provision only the intere'
shan be forfeited. but II any u~surious II
teress shah have been paid the plaintiff
may recover the principal less the amour
paid
Another proposed section strikes at u
practice ef taking usurioas notes and the
transferring and assigning them to $
seTed Innocent purchasers in order 20 co
iect them. This proposed section max
these provisioRs;
Evasion Made Hard
ANY person or persons who shan col
tract for or take or charge or receive al
greater rate Of interest than that provide
by law and who shall take a negotiab
note or other negotiable instrument as eV
dence Of sad debt shall in all cases
the sale. assignment or transfer out
this state Of such negotiable note or 9th
negotiable Instrument Iegfbly and durah
endorse with pen and ink upon such Nc
as a part OF the assignment the stat
ment 'this note is usurious" OF this no
Is cOntaminated with usury' or such 9th
w0rds of tho same purport and any pers
or persons who shall sell. assign or tran