Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-12
CUTS INTEREST RATE
House Passes the Dyer "Loan
Shark BiIp' With Amendment.
TWELVE PER CENT ALLOWED
Refuses to Adopt "a Per Cent by
178 to SO.
ARGUMENTS ON MEASURE
District Committees Recommends
ton of 2 Per Cent a Month
Rejected.
Twelve PER CENT ALLOWED


The House today passed the Dyer loan
shark: bill after amending it SO as to
make the maximum rate of interest which
1t is permitted to charge IL per cent a
year instead Of "a per cent a year, as
urged by the District committee. A mo-
ton by Mr.. Dyer to recommit the bill
to the committee with Instructions to fix
the maximum rate of interest at IS per
cent was defeated. so to 16S.
Peters Urges Committees Provision.
Representative Peters of Massachusetts
strongly urged the House to accept the
committees provision of a rate Of per
cent a month on small loans. He said
that in the state of New York, for in
stance, where the law fixes the rate at 6
per cent per annum, the borrow ac-
tuaily paid 100 to 500 per cent. In Penn
sylvania 1t had been found that as much
as 100 per cent was paid
Mr.. Peters declared that the pending
bill was in tho interest of the poor man
who faces dire necessity.
Representative Norris Of Nebraska
claimed that the difference Of opinion
over the bill was whether the rate should
be IL per cent or "a per cent per an
mum. He commended that L. per cent was
all that any man ought to demand and
all that most men could pay. He thought
a man would be better Off by not having
a loan if he had to pay - per cent for it.
Representative Lonsworth of Ohio said
he agreed that IL per cent was a high
enough rate. but he was convinced that
the pending amendment did not provide
for a per cent. and SO he favored 1t. He
said the interest on 800 for a year would
be l 3per cent and not "a per cent, be-
cause some Of the principal would be ex-
tinguished. He said the proposed bill
compared very favorably with the Ohio
law.
Representative Slayden of Texas asked
II it were not true that the people who
were trying to break up the loan shark
business favored the q per cent rate.
"All my communications are in favor OF
You have haven't heard from the borrow
ers," suggested. Representative Norris
Of Nebraska.
Thinks Proposed Rate Outrageous.
Representative Campbell Of Kansas de-
clared that he considered the p per cent
rate to be outrageous.
This BILL he said, creates a mo-
nopoly in the lending Of money to un-
fortunate people and legalizes the bust
ness"
Representative Fowler Of Illinois OBJ
jected to licensing money lending in the
District OF Columbia, and opposed the
"a per cent rate.
Representative Kahn Of California said
1t was true that "a per cent does seem
large rate Of interest, but 1t was also
true that the actual rate now runs as
high as Is per cent to 500 per cent and
the fixing of the "a per cent rate was to
protect the unfortunate from extortion.
Wage and Product Compared.
Representative Berger. Of Wisconsin
said that las long as We live in a swamp
we will have to expect mosquitoes and
bites"
The trouble, he said, was that as long
as the average wage Of labor was $476
and the average product of the laborer
was sos, 900, the people would have to go
to the loan shark and the pawnbroker
Mr.. Berger told the House of the mill
tant method he used in dealing with
loan sharks"
"A man came to me and said he had
paid $3.50 to loan sharks and still owed
them the original amount of SEQ that he
had borrowed" said Mr.. Berger. They
threatened to back a wagon up and take
away his household goods.
You go tell that loan shark that
Victor Berger told you to get a shot
gun and fill him full Of lead I said to
the man. He sent the message. and he
got his note back by return mail mark
ed: Paid in FULL