Evening star., 1911-08-19
LOAN BILL ENACTED
Senate Passes Measure With
One Amendment.
LICENSE is $500 A YEAR
Interest Rate Allowable Limited to
IA Per Cent Month.
SEVERE PENALTIES PROVIDED
Violators Subject to Both Fines and
Imprisonment-Gov EN-
ployes Barred.

the Senate today without further de-
bate. One amendment was adopted.
offered by Senator Curtis of Kansas.
which permits a person to loan his
own money at a rate of 10 per cent
a year without procuring a license to
make the loan.
Senator Hepburn OF Idaho, who has
opposed the bill on grounds that IL en-
acted into law it would curtail. per-
sonal liberty OF citizens of the United
States. objected to the consideration
of the measure when 1t came up on the
calendar today. Senator Curtis. who,
as acting chairman of the District
moved that the bill be taken up. His
motion was carried. Senator Hepburn
being the only senator who showed
tion of the bill.
After the adoption of tie Curtis amend
ment the bill was put Immediately upt n
it's passage. The Vice President called
for the ''ayes" and then, without stopping
to hear whether any had voted in the
affirmative, called ior the negative votes.
A vigorous mo- from Senator Heyburn
was the only response. The Vice Presi-
dent declared Il e ayes had II and tnat
the bill was passed.
Il failed to near any votes In the al
firmative," Senator Hepburn objected.
But the Vice President insisted that the
ayes had it and the bill was carried.
The bill passed by the Senate makes IT
unlawful to engage in the business Oh
ioaning money IN the District upon d
rate of interest greater than per cent
a year on any security OF amy klno, ta.igi-
BILE or intangible, without taking out a
license The license is to cost $5Uv year.
The rate of interest which may De
charged is limited to 11s per cent month";
or Is per cent a year. The rate was re,
duced in committee from Z per cent
month to lk per cent.
The amount of money which, may be
loaned in such business to any one person
| is restricted to $lOO.
Banks Are Exempted.
Nothing in this measure shall be held u
apply to the legitimate business OF na
tional banks. licensed bankers, trust com
panies. savings banks, building and loar
associations, or to the business OF pawn
brokers. or real estate brokers, as defined
in the act of Congress of July l. l9O2.
| The penalties attached to violations O
! the proposed law are severe. IL Is pro
vided that any person contracting, dlrect
| ly or indirectly, for or receiving greater
| rate of interest than that nxed IN tni'
| law shall Tor. cit all interest SO conlracte'
| for or received, and in addition tneret
| shall forfeit to the borrower q sum Q,
money to be deducted from the amour,
| due for principal equal 10 ohe-IouIln VI
| the principal sum.
ANY violation of this act shall be pun.
ished also by fine of not less tnan $@s
| and not greater than 500, or ny I'M
prisonment in the Jail or the worknouse
IF the District of Columbia for not less
than five nor more than thirty days
or by both such fine and imprisonment
in the discretion Of the court. Inc saIo
Commissioners shall cause the corpora
ton counsel to institute criminal pro.
ceedinys for the enforcement OF this ac'
before any court of competent jurisdic'
tion.
If any person in the government EN-
ploy is found to be violating the proposed
law. he shall forfeit his office and snal
he removed therefrom. This provision i
aimed particularly at the operations o
loan sharps in the government service;
The licenses are to be granted by tint
| District Commissioners. and each appii
1ation must be accompanied by bono
of 5000 with two or more suHlc-en
SuretieS.
Commissioners to Hear Complaints
Complaints of any licensee or applicant
shall be made to the Commissioners. whs
shall give hearings on such complaints
In case Of violations of the law. the Com
missioners shall suspend, revoke or re
iect the license of the licensee or appli
cant.
Whenever for any cause such license
is revoked, said Commissioners shall not
issue another license to said ncensee
until the expiration of at least one year
from the date of revocation OF such
license, and not at all If such licensee
shall have been convicted OF a vioiation
Of this act under the provisions OF the
following section thereof.
The enforcement of this act shall be IN
trusted to the Commissioners OF the Dis
trict of Columbia.