The daily sentinel. [volume] (Grand Junction, Colo.) 1893-current, 1913-04-29
LOAN SHARK BILL CAUSES
WORRY AMONG STATE USURERF|ii
Sentinel Special Service.

Sentinel Special Service.
Denver, April Representative
McDonald's loan shark law. which
was passed by the 10Th general as
sembly. like several other laws that
were enacted. is causing any amount
of agitation and serious discussion.
Those who are affected most by the
new law have taken up the matter
with State Bank Commissioner Pfeif-
fer and in the past week several con-
ferences have been held. The law, If
not referred. will go into effect July
Is, 80 days after adjournment of the
Legislature.
This class of money lenders declare
that ii would be preferable for them
to engage directly in the banking
business than TO continue under the
provision of the Mcdonald bill. which
they declare if put into effect, will
practically put them out of business.
In their conference with Commits
sioner Pfeiffer they declared that
they have been Disseminated against
in favor of national and state banks,
who are exempted from the opera
lions of the law with reference to
the rate of interest that may legally
be charged.
The law provides that unless the
loan sharks take out 4 license the
limit of interest is one per cent a
month, but if they are issued Ii
cense and given a 81 GOO bond ap-
proved by the bank commissioner,
then they are permitted TO charge as
high a rate of interest as banks
which is per cent a month.
Four of the biggest money lenders
in Denver. who are to be Joined by
others of the larger towns in the
state. have the situation up for dis
cussion and solution. One of their
plans is to form fund by each con-
tributing $40 with which to secure
signatures to a petition for the pur-
pose of referring the measure to a
vote of the people at the next state
election. Even should the referred
measure not carry the loan sharks
maintain they would be in no worse
condition. In the meantime these
money lenders would continue their
business at least two years longer
without being affected by the new
law at mere nominal expense.
Several of the money lenders in
Denver seriously consider entering
the regular banking business, believ-
ing that this would be the better way
out of the dilemma, To do this they
would again bump up against the OPP
erations of the new banking code law
enacted by the last general assembly
1t requires that before a banking
business can be established there
must be secured from the bank COM
missioners a certificate and also that
one must be filed with the secretary
of state. Besides a certificate also
must be filed with the county record
er. These certificates of authority
must first be approved by the bank
commissioner. All this and more
must be compiled with before author
ity is granted to do banking bust
ness in this state.
There is to be a meeting of the
loan sharks" of Depyer early this
week for the purpose of definitely de-
termining Just what course will be
adopted. From what can now be
learned the plan TO refer the bill
seems to be favored as the most eco
nomical and at the same time Will
if signatures enough to refer the
measure are secured, permit the bust
ness to continue for two more years
with very little expense. 1t is said
to be questionable whether the
sharks would be able to secure
enough names to petitions to refer
the bill.