The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-03-17

Notwithstanding a divergence of opin-
ion as to the proper rate Of interest to be
charged by money lenders in the District
| brought out at a hearing on the loan
shark bill before a subcommittee OF the
Senate District Committee yesterday. per-
sons interested In the measure last night
declared that the evident willingness Of
some Of the lenders to submit 70 regula-
ton was a desirable sign. and one that
will go far toward whipping the bill into
shape so that It can be passed soon.
Attorney o. p. NJ Brown represented
the loan agencies at the hearing. which
was held in Senator Dillingham's room.
He told the committee that the loan
agencies viii not oppose fair regulations,
specifying the relations between the len
der. the borrower. and the government.
He declared that the right the pawn
brokers have to charge per cent a
month ought to be granted to the loan
agencies.
The bill as Il is now framed allows the
money lenders to charge 2 per cent a
month, and much OF the testimony yes
terday was along the lines of establish
ing what is proper rate to charge.
Some Provisions Satisfactory.
Answering question BY Senator Dilling-
ham. Mr.. Brown declared:
IF all charges are to be eliminated ex-
cept those for notarial fees and recording
fees. 8 per cent per month is the least
rate at which the companies can operate"
Mr. Brown said the provisions OF the law
regulating the licensing and bonding OF
the companies were satisfactory. He op-
posed. however. registering transactions
in registers open 10 the inspection OF the
public and inspectors from the District
Building. on the ground that 10 give out
such information would damage the credit
of the customers Of the agencies. Opposl-
ton was also expressed to giving the
Commissioners power TO make regula-
tons. Mr. Brown said the companies
would like 20 have the law made whole
and complete. so that no orders or regula-
tons from the District Building need be
made
J. S. Leonard. of the Mercantile Loan
Company. suggested a compromise on the
item OF rates Of interest He was In Ia
vor Of a per cent rate on loans up to
500, ? per cent on loans from 500 TO $780,
and per cent on loans from $500 to $500.
Mr.. Leonard testified that il the law
should fix the rate at per cent he
would not, in any case, charge more than
2 l-2 per cent He always conducted a
profitable and growing business on that
rate. He has increased his capitalization
from s1.oo0 to 10000 since he started
money lending
Interested Citizens on Hand.
". II Baldwin. chairman OF the citi-
zens' committee formed by the Monday
Evening Club. advocated a ? per cent
month rate. ]. T. ExnieiOs. Of the
Society for Savings. says that his organi-
zation charges per cent. without fees,
and the losses Of the society have amount
ed to about / per cent OF the capital in
vested. They do a profitable business on
that basis
Mrs. Richard Wainwright and Mrs.
Archibald Hopkins also testified at the
hearing. They spoke of pltiful incidents
which have come to their knowledge as
a consequence Of the loan shark evil, and
advocated a provision in the law which
shall make it necessary for the companies
TO placard their Offices with information
as to what the legal rates Of interest are. !
S. J. Masters opposed any legislation.
He said he thought the money lenders /
ought to be allowed to charge as much as
they can get. just as q dealer who has
furniture to sell.