The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-12-16
Investigators Ready to Give
Testimony on Bill to
Suppress Sharks"
CLERKS ALLEGED
TO BE VICTIMIZED
Besides ExoTbitant Rates, Unrea-
sonable Conditions Are Said
To Be Imposed.

should the House and Senate District
committees carry out the plans to have
public hearings on Commissioner West 8
Din to regulate the lending OF money in
the District. it is believed today that
astounding information as to the evils
OF the '1oan shark business IN the Dis
trict will be revealed
The bill itself. as drawn by Commits
sioner West, who has made two
years study OF the loan systems in
vogue in the District. furnishes some
slight idea as 20 the imposiuons heaped
upon the average small borrower-the
man or woman, who, temporarily en-
barrassed and without bank standing. Is
obliged to appeal to the usury concerns.
Inner Workings.
It does not, however. furnish the real
insight into the situation. which only
can be obtained through the testimony
before the committees having the legis-
lation in charge, of those who have had
occasion 20 investigate. IN some capas-
ity. the inner workings Of the objection
able money lending concerns.
The bin IS not destined, il should b,
understood in the beginning, to inter
fere with the operation Of regularly
organized banks. pawn brokerage con
Germs. and loan companies who are sat
isfied with a moderate rate of interest
Two per cent month. considering th'
nature of the security the small borrow.
or has to offer, Is not considered ex
orbitant
Those who will urge the passage c'
the laeielsition At this session OF Con.
gress, however, believe that public
hearings will show that frequently as
much as 10 and u per cent a month is
being obtained in the District Of Co.
lumbia.
Profits From Clerks.
The loan sharl0s'' Of the District, ac
cordinE 70 Information which Is avail
able. reap no inconsequendal part o.
their harvest from the employees Of IN,
Covernmenty-clerks who draw salarie.
that are none too large, at best. Christ
mas Is especially a golden opportunity
for the man or set Of men who have
little excess money which may be Ioanet
at such rates 20 financially unfortunate
ones as to soon double and treble itself
For instance, the demands Of the hol
iday season may be hard upon the av
erage wage-earner. There are gifts q
buy for there are countless friends 4
remember At the same time. the ren
and the grocery bill go along just tn
same. Perhaps there IS a Doctors bill
as a further weight.
Where can I borrow so for a few
months2' the embarrassed head Of the
family Will ask himself He has nC
bank account and the class Of the SO
curify which a bank must have thS
small borrower is often unable to fur
nish. The loan shark" through a Sc
ductive circular, offers hope and help
The salaried man applies Tor a loan
Risk Of Loss.
The risk Of loss 70 the shark mus
be minimized, or the applicant doesu'
get the money. If he does obtain 10, on,
or all Of these stiplatiOns on the par
Of the shark must be met.
Notes must be signed agreeing TO par
back within three TO six months the s.
borrowed and also interest ranging any
where from S. 10 so.
There must be an assignment Of sal
ary properly executed before the loan Fl
made.
or, there must be a chatteI mortgag,
on household furniture, the bOrrOWe
paying the notary fec.
or, again, there must be both O sal
airy assignment or from one 10 thre,
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