Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-02
TAFT STAYS ACTION
Will Not Act on Loan Shark
Bill at Present.
HEARING AT White HOUSE
Wants to Confer With Advocates of
Measure-Would Like Business
Legalized on Fair Basis.

PRESIDENT Taft announced late Yesterday
afternoon. at the conclusion of q. hearing
in the executive offices, that he will
withhold approval or disapproval of the
loan shark bill now before him until he
has had time to confer further about the
proposed law. He stated that he would
invite the members Of the Senate and
House subcommittees that handled the
measure and aided in its passage to tell
him their views of it.
The President indicated pretty strongly
that he fears the bill. on a l per cent in
terest basis. will deprive poor people of
getting money so long as the -pawnbro-
kers are included with the other money
lenders. He expressed the greatest SYM
pathy with the efforts of good citizens to
abate the money-lending evils and stop
the wrongs done under it. He would
like nothing better than to see the busi-
ness legalized on a basis fair to lender
and borrower alike. so that those in real
need of money may get it at a rate that
will not rob them. His views. which are
subject to change. seemed to be that the
pawnbrokerS might not he able to continue
in business at per cent rate of interest.
He asked that those faVOring the bill
furnish him with arguments on this point.
He stated that nobody need worry about
the money lender on the paWnbroker.
They would take care of themselves.
Fair Law Absolutely Necessary.
II law could not be enacted that
would be fair to all alike it would
simply mean the worst sort of viola
tion of law and worse distress among
those wishing small loans than at
present 1t was the poor man and
roor woman that he was considering.
the President declared If he could
,e sure that they would not get the
worst of the thing in the, workings
Of the bill. he would sign it.
The advocates OF the bill will send
the President arguments maintaining
that the pawnbroker is better pre-
parei to stand I per cent interest
rate than some of the moneylenders.
Inasmuch as he has ample security
and need not fear getting both prin-
cipal and interest I'm case of failure
TO pav He never loans over 40 per
cent OF the value of the security, il
was asserted. and at per cent inter-
est will he able to make money. The
hardship, IL any, ii is said, would fall
mon the lender who rad nothing but
the indorsed note of the borrower. but
even lie would be able to make money,
Henry T.. Davis. attorney for the
pawnbrollers. has suggested to the
President that if he will veto the bill
in a message explaining what lie ton-
siders it's defects. Congress will have
plenty OF time TO pass another bill
before adjourning that will be
satisfactory to all concerned.
Rebukes Man at Hearing
Those favoring the bill! told the Pres;-
dent that if he vetoes the measure there
will be little chance OF Congress doing
anything at this session and that it might
be years before anything could be done to
ameliorate present conditions.
The President gave stingng rebuff To
one man who was present at the hearing
and who admitted that lie was lending
money at ; per cent a month in viola ton
Of Law
IF | had known this before" the Presi-
dent said Il would not have given YOU a
herring No Violatoi of the law is en-
titled To standing in court do not SYM
pathiZe with any man who admits he is
violating the law.
The contention of the man in question
was that unless the present laws are vio
| la ted money could not he loaned in small
amounts without dYlinite security.