The Washington times., 1908-05-06
PREVENT USURY,
GALLINGER PLEADS
Senator Argues Before Sub
committee for Bill Regu-
latlng Money Lending.
Commissioner West Cites
Case of EXtortion by
Loan Sharks"

The District of Columbia is unique
IN that 1t has small army Of Govern
ment clerks, and the conditions that pre-
vail in New York. Boston. or Phiiadel-
pn-a do not prevail i'm the District OF
Columbia. What might be appropriate
Tor those cities would not apply prop
erly TO the District Il IS largely these
people, the Government clerks. who are
being imposed on by. the money lenders.
Money is rarely loaned on mere prom
ise TO pay. Collateral of some sort is
required. It is idle TO say otherwise.
The argument made by Senator
Ihurston that those who borrow money
can recover when they are charged eX-
cessive interest is not applicable. In
many cases those who borrow money Of
the money lenders are ignorant Many
OF them are colo ID people. They do
not understand their remedies under
the law. That there Is need for legisls-
tlon or some sort goes without saying.
hope the subcommittee viii do some
thing 10 regulate this crying need
Gallinger Favors Bill.
IN this vigorous language Senator Gal
lihger, chairman of the Senate District
Committee. summed up his reasons why
Congress should enact some legislation
for the suppression OF usury in the Dis
trict, and the protection Of those per-
sons who borrow from the money
lenders He spoke before a subcommit-
Zee of the District Committee headed
by Senator Dillingham;. which conduct
ed a bearing this morning on the three
bills he 1OTe the committee intended TO
reform the present money-ioaning prac-
tees
Senator Paynter Of Kentucky. Of the
subcommittee, asked Senator Gailioger
whether in case there was legislation
tC prevent the borrowing Of money on
est rates most people would not make
such provision as would Obvlatc the
need of borrowing money.
There is no doubt about it, re-
piled Senator Gallinger, "the present
system tends 20 profligacy and leads
people 20 do what they ought not 10 do.
. Comparatively few would suffer II the
whole business was blotted out I think
from what has come to me that II
these gentlemen who loan money would
submit their blanks and forms TO this
committee there would be a revelation
Cites Cases of Extortion.
Commissioner West said the Commits
sioners had no desire 70 prevent the
loaninE OF money at a reasonable rate
Of interest. but they did desire to pro-
tect the poor people Of the District
from imposition He illustrated the
present practice by saying that when
a man borrows $50 and only got $50 or
$40, or 800 and only get so, Il was
time for Congress to take some steps
10 remedy things He said ne could
give case after case 10 show that the
conditions were such as TO demand leg
iSlation.
Three bills are before the subcommit-
tee. One OF these is the Commissioners
bill for the regulation of money lending
in the District and the other two bills
make usury a crime.
President MaCfarland. OF the Board
of Commissioners. was the first speaker
al the hearing. and made a strong plea
for the Commissioners bill. Senator
GaIlinEer addressed the subcommittee
and urged that there be legislation He
spoke briefly Of the serious condition
caused by the exaction OF usury in
Washington.
Woman Tells of Hardships.
Mrs. Charlotte E. Hopkins. Of 1898
Massachusetts avenue. a phnanthropist
OF this city. cited cases about the hard
ships caused by the exactions OF the
money lenders. and advocated legisla-
ton 20 make usury crime P J. Rapp.
Of the Government Printing Office, also
spoke for legislation. and likewise the
Rev. J. z. Irome, a minister of the
Methodist Church, OF this city.
c. c. Tucker, a lawyer. representing
@ D Hornung. objected to bills making
usury crime, but favored the Com
nissionerS' bill for regulation. He
thought the maximum rate OF interest
ought 10 be per cent a month.
Represents Money Lenders.
Former Senator Thurston represented
2 number nf money lenders and spoke
against the bill making usury a crime
and criticised tie bills for regulation
in q number Of PARTICULARS Senator
Thurston said il vas not wise to pro-
hihit the loaninE OF money or to make
the eXactiOn OF usETy q criminal Of
Tense He declared the Government
employees in Washington receive 40 per
cent more than the same class of people
in Chicago.
Il have no sympathy" declared AIr.
Thurston- FOR the average Government
employee who boTroWs money"