Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-06-20
National Federation of Rene
dial Loan Associations Con-
venes in New York.
WASHINGTONIANS ENGAGE
IN INFORMAL DISCUSSION
A. H. Ham of Russell Sage Founda.
ton Shows Progress of Societies
During the Year.
Special Dispatch to The Star.

Special Dispatch to The Star.
| NEW YORK, June 2O-The fifth annual
| convention Of the National Federation Of
| Remedial Loan Associations, which began
| a three-day session In New York yes
terday, is devoting today to an informal
| discussion of the affairs Of the societies
The discussion Is being participated in by
j. L. Exntcios, treasurer. and E. st. Clair
thompson. secretary of the Society for
Savings and Loans of Washington
Representatives of similar organiza-
lions in twenty-nine cities Of the United
states are taking part in the conven-
ton, which is for the purpose Of fight
Ing the loan shark evil. The fedora
ton was organized in 1903 for the pur-
pose of encouraging the formation of
additional societies to cooperate with
the division of remedial loans of the Rus
sell sage foundation. 1t now has a men,
oership of thirty-three societies with a
combined capital of $11OOO,OOO
A Fl. Ham, director of the division
OF remedial loans. Russell Sage Foun-
dation. read paper before the conven-
ton giving a report on the progress
made in the work during the year He
said in part:
Progress During the Year.
The program Of the remedial loan
movement comprises an attempt to Sc
cure a universal appreciation Of the
important part played by usurious
money lenders in causing distress
among the poor, to the end that con-
structive legislation may be enacted In all
'.ates and remedial loan societies or
eanized In all large cities. In arous-
ing public Indignation against the
Lsurer, 1T has been our purpose to in
spire something more than a demand
or the punishment of offenders. A
-ertain amount of destructive work has
cen necessary in order that the enor-
niry Of the evil may be widely recog-
Lied, and the fact be understood that
large part of this inhuman business
Is arisen in response to emergency
eeds and a desire to borrow for pro-
!etlve and saving purposes.
Newspaper denunciation, demands
II drastic legislation. campaigns of
,'ublicfty and prosecution, the settle
ment OF loans upon a reasonable basis,
and similar activities, while of little
avail in themselves in correcting this
great evil, are ultimately Of value, for
sooner or later the intelligent men so
engaged are sure to recognize the
need for agencies that will provide
emergency loans at a low cost a need
not for benevolent associations, but for
remedial loan societies, which are So
cialiZed business organizations and pay
fair returns
I'm reviewing mentally the develop
ments Of the past year in an attempt
to estimate .the progress that has been
made, 1 find that ] naturally classify
developments under legislation. COM
petition and miscellaneous develop
ments, the latter. including investiga-
tions. prosecutions. publicity and other
activities which do not naturally fall
under the first two headings AS this
seems to be natural division of the
subject. I shall attempt, so far as this
brief report will permit, to inform you
of the progress made in these direc-
lions since We last met in June. 1912.
Activity in Legislation.
'"rhe past year has been marked by an
unusual amount of activity as regards
legislation. About sixty bills affecting
the business of small loans were intro
duced in twenty-four states. The prob
lem has been to secure the passage Of
laws under which remedial loan societies
may be organized. which permit honest
capital to embark in the business on a
fair profit-making basis under regulation
and control. and which provide adequate
penalties for all who attempt to operate
in defiance of law. To defeat the pass
age of seriously defective bills and bills
clearly drawn in the interests Of the
high-rate money lenders. and to prepare
new bills for Introduction has required
considerable time and effort.
'Of the bills introduced in tWenty-fOur
states. seventeen contained majority of
the provisions which we deemed essential
to adequate legislation. and in seven
states measurably satisfactory laws were
enacted. namely, in Oregon, Colorado,
Missouri. Minnesota, Indiana and Penn
sylvania.
'In Maine law was enacted Which
forbids persons in that state acting as
agents tor nonresident borrowers with
intent to evade the Nsury laws in force
in the state in which the borrower re-
sides, and loans made for foreign prin-
cipal in violation of the act are voidable
at the option Of the debtor such option
to be exercised by him in any state where
the contract made by him is attempted to
be enforced. This law is designed to pre-
vent the continuance of the interstate
loan business which has been conducted
for some time in New York and other
large cities by money-lenderS having
their offices in Portland. Me
Bill in the District.
THE bill to regulate the small loan
in no DiSfr Of