The Washington times., 1913-01-25

Confronted with legislation which lin
its their interest rate to l per cent a
month, the pawnbrokers and loan asso-
Citations Of washington. with but few
exceptions, are in undecided and pes
simistic frame of mind today concern
ing their future business operations.
All are agreed that there is little or
no profit in the business at per cent
a month-that the broker who makes
loans on chattel mortgages, salaries
and indosements cannot pay his running
expenses and losses under the pre-
scri5ed rate.
Several of the brokers talk of discon-
tinuing their establishments; others say
the brokers have yet to decide whether
to attempt to live under the new law.
Hardship For Poor Man.
The brokers say the new legislation
works a greater hardship upon the
poor man, the emergency borrower,
than the lender.
r The final legislative step in the pro-
gram to regulate the practice OF lend-
ing money in the District was taken
when the House adopted the confer
ence report on the Dyer bill. The meas
ure now awaits the signature of the
President 1t applies to every money
lending institution in the city, with the
exception of banks and trust companies.
The contentious of the loan brokers
and their counsel are printed below:
Their Action Undecided.
I'VE are not at the moment in posi-
tfon to declare our intentions as to
whether we will try to live under this
law, or discontinue business"
This is the statement made by Henry
z. Davis. as counsel and spokesman
for all of the pawnbrokers of Wash
ington. 1t was subscribed to by George
d. Horning, z. Heidenheimer and A.
Burnstine. all of whom were present
and authorized Mr.. Davis to speak for
them.
such thing as going on the out
skirts of Washington to transact busi-
ness was never contemplated by the
pawnbrokers.' continued Mr.. Davis
while these men are not determined
as to what they viii do, OF my own
knowledge, 1 don't see how they can
continue in business. II this Pill Is
signed and the law enforced, its effect
will be to close all opportunity to the
small DOrTOWeTS tne DlslEiSi.
Ten per cent of the entire popu-
lation of the District, counting all
white and colored men. women, and
children, are emergency borrow ers
of small Suns who will be denied
the opportunity to borrow and their
needs win be thrown on charity. In
der an attempt to enforce pro-
hihitive law in New York, the de-
n.ands for charitable assistance in.
| creased six fold; The Associated
from FIVE to ten times as many CO ses
to care for as heretofore.
Calls It4"vicious" Law.
Senators Curtis. Dillingham; and
Paynter, were opposed to this bill and
declared their opposition. but ac-
cepted II. when Chairman johnson, OF
the District Committee. declared thai
1t was this bill or nothing. Chair
man Johnson has said that he did not
favor including the pawnbrokers In
it. "It is clearly a case OF vicious
law meeting an unlntelligent clam
mer."
Mr.. Davis cited legislation in vari-
Gus States calling attention to the
new liberal law in Rhode Island. and
to the Maryland law.
Bars chattel Loans.
Samuel ]. Masters. who is interested
in a number of loan offices in this
city, Baltimore. and in Virginia, said
that under the new law II would be
impossible for the chattel loan people
TO do business.
THE / per cent MONTH" said Mr..
Masters, would not pay the actual
losses. In addition to that, 1t costs
from 3 to per cent month to dc
business. Obviously. it would be out
of question to operate under such a
| law and we will not attempt IT,"
| Mr. Masters said he was not opposed