The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-06-06
GOVERNMENT IS TO
FIGHT LOAN SHARK
All u. S. Clerks Who Disobey
New Law Would Lose
Their Positions.

Washington, d. C., June 6.-"Loan
sharks" in the government depart
ments are to be driven out if the SEN
ate committee has it's way.
1t has recommended the adoption Of
an amendment to the Gallinger loan
shark" bill providing that employees OF
the government guilty OF violating any
OF the provisions of the bill shall be
dismissed.
The provision was recommended by
Senator Curtis, who has been giving
the features of loan shark" legisla-
ton much attention. and 1t found in
slant favor with the members OF the
committee. Senator Curtis pointed out
recent disclosures of practices OF en-
ployes Of the government who were
loaning money to fellow employees at
exorbitant rates. and he mentioned
particularly stories that had come out
of the bureau of engraving and print
ing and the government printing Of
fee.
A Steep Interest.
Members of the committee have
heard that federal employees have
loaned money to their companions in
ONCE at rates as high as 30 per cent.
and the recent investigations in the
bureau of engraving and printing, it
la pointed out, resulted in the dis
missal or demotion OF several en-
ployes who were found to be loaning
money at big rates OF interest.
When the measure is called up for
consideration 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 it
was introduced again this session, at
the instance of those who have been
interested in such legislation for
years. interest at the rate of per
cent. month is allowed. AS the bill
will come from the senate district
committee the maximum rate allowed
will be ~ per cent month. There
are some senators-at least five on
the district committee-that favor 2
per cent a month interest. because,
they say that is the rate recommend
ed by the remedial loan associations
and others who have studied the prob
lem and know the subject in all
phases. There is talk that one of
these senators will offer an amend
ment on the floor of the senate to Ak
the interest at 2 per cent.
Committee Evenly Divided.
The district committee was evenly
divided on that proposition. and
should the issue be raised in the SEN
ate both sides will be heard. and
wide divergence Of opinion will devel-
op. A roll call may be requiSed 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
recognized the loaning of money at a
greater rate Of interest than per
cent. and urged that all those who
charge more interest than per cent
should be classed as usurers and
treated accordingly.
Efforts were made to persuade him
OF the need for such legislation as is
provided 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
n SAvv>4 90 70 ho
tee. completed them yesterday after.
noon.
One Proposed Amendment.
! The most important addition to be
favored provides:
| THAT any person contracting. di-
rectly 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 ad-
dition thereto shall forfeit to the Dor
rover 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 govern
ment violating any of the provisions
of this act shall forfeit his Office or
position and be removed from the
same"
| The other amendments simple
change from 80 per cent" to "11s per
cent" the rate of interest to be allow
ed, and from three hundred dollars"
to lone hundred dollars" the maxi
mum amount which can be loaned at
that rate.