Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-14
HITS At LOAN SHARK
West Bill Proposes 2 Per Cent
/ Maximum Interest.
SIDE FEES PROHIBITED
500 License Required and Pub
licity Regarding Officials.
ALL BUSINESS ABOVE COVER
Can Be Closed Up and Fined for
Violations of Law-Further
Regulation Permitted.

| If Commissioner Vests ideas on tho
! loan business go through Congress
and become law. the people of this
District will be able to see the inner
workings of every loan company doing
| business here with as much facility as
| they would gaze npon the workings o.
| glass Incased French clock.
The draft of a bill proposed by Mr..
West has been approved by Commits
sioner Macfa rland. There is every in
| dication that no time will be lost in
asking the legislators to make it into
| law.
| The proposed bill is somewhat SINH
lar to one ORA wn up by the Commits
siOners last year.
1t would fix the highest rate of interest
on remedial loans at , per cent a month,
with absolutely no chance for the loan
company to gouge the borrower by means
Of extra charges and. fees.
The bin specifically exempts national
banks. savings banks. trust companies
and real estate brokers' pawn shops
building and loan associations, all regtf-
lated by other laws.
License to Cost 500.
To engage in the loan business where
a greater rate of interest than per cent
a year is charged. the person or firm
would have to take out a license. No
matter whether the loan is made on furni-
ture. salary or any other security. tangible
or intangible, the District would charge
the business 500 a year as a license fee
, Mr.. West thus reduces the original idea
from $1,000 to a moderate sum. because,
as he says, there is no intention to derive
revenue from these licenses. A higher
rate of license would probably in many
cases he assessed by the loan firm against
borrowers by various and devious meth
| DDS. all of which would result in the
| same thing as far as the borrowers pock-
etboOk is concerned.
The Commissioners would practically
regulate the business. All the officers and
directors of such loan companies and
their addresses would be recorded at the
District building.
Any person in the District would have
the right to protest against the grant of
license TO any person firm and the
matter would be disposed of at public
hearings. The Commissioners would have
the Fight to revoke licenses for any failure
to observe the law governing loan offices.
\ bond of 5000 to observe the law, is
to be required. The bill makes it plain
that there is an easy way in the courts
10 OBTAIN redress and recover money IL
legally obtained by any loan company
Register to Be Kept.
Inc Commissioners would require eyery
loan company to keep a register showing
in English the amount Of money loaned,
the person to whom it was loaned, where
! the security is, what it is, the amount Of
interest, ali fees and renewal charges. If
any, and every conceivable item of infor-
nation that would enable the authorities
to tell at glance what is going on in the
business. The register would have to be
kept up to date and open to inspection to
the Commissioners or their representa-
tives every business day.
Once year the companies would have
to send the Commissioners a trial bal
ance, or annual statement, showing the
different kinds of assets and liabilities on
the books. and any other information
that the Commissioners want. The pub
lie would be able to see the workings of
the company through the advertising eel
umns of the newspapers.
The companies would be limited to
loans of 500 and under In no event
would any one be forced to pay more
than per cent month for money Dor
rowed. That charge would cover all ex-
penses and demands and services of every
character except upon the foreclosure of
the security: However. the custom of
the loan when it is made could still be
followed.
Punishment for Violation.
Any aggrieved borrower could state his
complaint to the Commissioners. Both
sides could argue it out in the board
room of the District building The Com
missioners would have the power to re-
woke a license If they should see that a
company is lodging the law, and could
keep the company or person out of bust
ness for six months If they thought
proper.
The punishment for violating the law
would include also a fine of from S. to
500. The District could institute pro-
ceedings in any court of competent juris-
diction.
Furthermore, If the law has a loophole
anywhere. the Commissioners would be