Evening star., 1911-06-04
MAY LOSE Jobs
Government Clerks Who Dis
obey Loan Shark Law.
GALLINGER BILL AMENDED
Senate District Committee Proposes
Drastic Provision.
FRAMED BY SENATOR CURTIS
Information Received That Interest
at Rate Of 800 Per Cent Has
Been Exacted.

loan sharks" in the government de-
partments are to be driven out IL the
Senate District committee has its way.
1t has recommended the adoption Of an
amendment to the Gallinger loan shark
bill providing that employees of the govern
ment guilty Of violating any OF the pro-
visions OF the bill shall be dismissed.
The provision was recommended by
Senator Curtis. who has been giving the
features Of loan shark legislation much
attention, and It found instant favor
with the members of the committee. Sen
ator Curtis pointed out recent disclosures
of practices of employees of the govern
ment who were loaning money to fel-
low-employes at exorbitant rates, and he
mentioned particularly stories that had
come out Of the bureau of engraving and
printing and the government printing
office.
Members OF the committee have heard
that federal employees have loaned money
to their companions in Office at rates as
vestigations in the bureau of engraving
and printing. it is pointed out. resulted
in the dismissal or demotion of several
employees who were found to be loaning
money at big rates OF interest.
When the measure Is called up for con-
aderation in the Senate there is sure to
be much discussion, but its passage by a
substantial majority is predicted by its
friends.
One of the fights over the bill on the
floor will come in connection with the
rate Of interest to be allowed. AS the
| bill passed last session, and as 1t was
| introduced again this session, at the in
stance of those who have been interested
| In such legislation for years. interest at
| the rate of per cent a month is allowed.
| AS the bill will come from the Senate
| District committee the maximum rate
allowed will be 1h per cent a month.
| There are some senators-at least five on
| the District commitee-that favor the
| per cent a month interest. because. they
| say. that is the rate recommended by the
| remedial loan associations and others
who have studied the problem and know
| the subject in all phases. There is talk
that one of these senators will offer an
amendment on the floor Of the Senate to
| fix the interest at per cent.
Committee Evenly Divided.
The District committee was evenly d.
vided on that proposition, and should the
issue be raised in the Senate both sides
will be heard from, and a wide divergence
Of opinion will develope. A roll call ma.
be required to settle the question.
Senator Pomerene, a member of the
District committee. may fight the bill on
the floor of the Senate. He voiced his
disapproval of any measure that rec
ognized the loaning of money at a great
| er rate of interest than per cent, ana
urged that all those who charge more
interest than per cent should be classeo
as usurers and treated accordingly.
Efforts were made to persuade him OF
the need for such legislation as Is pro-
| vided in the loan shark bill. but he
went away from the committee meeting
obdurate.
| Senator Curtis, who was instructed by
the District committee to draft the
amendments favored by the committee,
completed them yesterday afternoon.
One Proposed Amendment.
The most important addition to be ia
vored provides:
THAT any person contracting, directly
or Indirectly. for or receiving a greater
rate Of interest than that fixed in this
act shall forfeit all interest SO contracted
for or received: and in addition thereto
i shall forfeit to the borrower a sum of
/ money, to be deducted from the amount
/ due for principal, equal to one-fourth OF
the principal sum; and provided further,
that any person In the employ Of the
government violating any of the pro-
i visions OF this act shall forfeit his office
or position and be removed from the
d same.
/ The other amendments simple change
from .2 per cent" to ~ per cent the
rate of interest to be allowed. and from
| three hundred dollars" to lone hundred
dollars the maximum amount. which
can be loaned at that rate