Evening star., 1911-06-02
Committee to FavorabIy Re-
port "Shark" Measure.
AMENDED BY SENATORS
Rate Of Interest Cut to One and One
Half Per Cent Month.
MAXIMUM AMOUNT MADE 500
Stricter Regulation Of Insurance
Companies Doing Business In
District Il Approved.

After directing amendments to make 1t
more drastic, the Senate District COM
nittee today ordered a favorable report
on the Gallinger '1oan shark bill.
The amendments. which are to be draft
ed by O subcommittee composed Of Sem
atory GaIlinger and Curtis, reduce the
rate of interest from to III per cent
per month, reduce the amount of money
that can be loaned at that rate from
$500 to 500. and require that. In case
contract Is made for q higher rate OF
interest than is authorized. the one max
ing the loan shall forfeit the interest
and one-fourth of the principal.
The loan shark bin occupied much
of the attention of the committee today
Soon after 1t was taken up, 1t became
evident that there was strong objection to
such a high rate of interest as per
cent. provided In the bill as introduced.
To compromise the divided sentiment. 1t
was proposed that the rate be made 11s
per cent a month, and that rate received
the assent of a majority of the committee
members present. There is talk that an
amendment will be offered on the floor
fixing the interest at 2 per cent. but no
definite announcement to that effect has
been made.
The reduction in the amount that can
be loaned at such rates also figured In
the compromise. There was some feel
ing that no legislation should be passed
allowing a rate of interest greater than
6 Der cent, but majority OF the COM
mittee agreed that provision should be
made for small loans at greater rate.
Penalty Is Favored.
Senator Curtis urged the adoption Of
the amendment providing for the forfei-
ture OF interest and one-fourth of the
principal in case a greater rate of inter
est than the bill allows Is charged. He
maintained that such q penalty would
be an important factor In having the law
obeyed. The committee was in accord
with him.
Senator Pomerene opposed the measure.
He urged that there should be no leglsia-
ton to recognize loans at more than b
per cent.
The committee gave it's approval to the
bill aimed to hurry up the construction OF
the new buildings for the Central and M
Street High schools. After the sites for
the new schools were purchased the Com
missioners found they had some money
left. and they have recommended the pas
sage of legislation that will enable them
to use the balance in the employment OF
architects and craftsmen to prepare the
plans for the buildings. II Is the bill to
carry out that recommendation to which
the committee today gave its assent.
Two bills looking to the stricter reg
ulation Of Insurance companies that
do business in the District were au
thorized TO be reported. One Of them
provides new Legislative control over
health and accident companies. The
department Of insurance OF The Dis
trtct found that the present regulations
for such companies were not satisfac
tory. and the bill reported today will
give that department more control
over those companies by compelling re-
ports of their condition to be made to
the District officials and to allow those
officials to make inspection of the
books Of the companies.
The bill provides that no health, acci-
dent or life insurance company in the
District shall issue policies for a greater
death benefit than 500, or a greater
weekly indemnity than SO unless the
company has $4,000 assets; or a greater
death benefit than $1.OOO, or greater
weekly indemnity than SIS in case the as
sets are 100000.
Must Make Reports.
The other insurance bill to receive the
committees o. X. will have the effect of
compelling all insurance companies doing
business in the District to make annual
reports to the department Of insurance
Under the present law only foreign COM
panies are required to make such reports
bill for the extension of Grant street
northeast from its present terminus near
Ssth street east to its present terminus
near Castle place northeast and to ex-
tend Deane avenue from its present ter
minus west OF 4Sth street east to it's
present terminus east Of 46th street, also
was ordered reported to the Senate with
. recommendation that it pass
The COMMITTEES also approved a bill
to authorize new highway plan for
that portion of the District lying be-
tween Van Buren street, Georgia
avenue, Nicholson street and Rock
Creek Park. and bill to give a clear
title IN the nreSenf 0ccnnanf ne loA 70