Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-12

Plantations appeared before members OF
the committee and urged the commit
tee not to consent that the pawnbrokers
should be included and asked if there
was any legislation i'm regard to the pawn
brokers that it should be applied to the
existing law. But after considerable dis
cussion and several meetings it was found
that no agreement could be reached upon
the loan shark bill unless the pawnbrok-
ers were included. Therefore the con-
ferees on the part of the Senate consent
ed to that and their action was Endorsed
bv vote Of the committee of the Dis
trict of Columbia
1T has been recognized within year
that in the District of Columbia a COM
pany is now loaning money at per
cent and the officers and managers of
that company informed members of the
committee that they are ready to con-
tinue the loans at per cent Many
members of the committee thought that
this increase charged by the pawnbro-
kers where they had a security, of 36
per cent was entirely too large and that
according to information the committee
had of companies in New York, Chicago,
Boston and other large cities this new
company and other companies could be
organized and could properly loan money
here at 6 and per cent-at any rate, at a
lower rate than is permitted in this bill.
which allows them to charge l. per cent
a year
Does the new company to which the
senator refers loan money on personal
property as security Senator TOWNSEND
asked
Il understand that it has made loans
on personal property or even upon the
notes of individual members of the fam
ily,'' replied Mr.. Curtis.
That practically ended the discussion
Mr. asked "A vote The
report was agreed to without roll call
and with practically no opposition
Instances of Extortion Cited.
The urgent necessity for this legislation
was shown in the course of the hearings
before the subcommittee of the Senate
District committee during the last and
preceding sessions of Congress Instances
were cited of victims of loan concerns in
Washington, who were compelled to pay
anywhere from Go per cent a year up to
$50, 20O 800 per cent, or even higher. A
number of instances were cited of en-
ployes in the various government depart
ments who loaned money to fellow-em-
ployes. charging 10 per cent a month for
the money.
One instance reported to the committee
was that of a colored woman. employed
in the nOuSenOl0 or the ldte
Everett Hale. This woman. it was stated,
borrowed SO from a loan company. She
paid $40 interest monthly on this
amount for four months. when the COM
pany notified her that she still owed $50
interest besides the original $40. This
case was reported to the Associat tied
Charities of Washington. whose attorney
took the matter up. and the woman
never again heard from the loan COM
pany.
Another case was that of a man in
business in a small way. who was
compelled to borrow $40 to tide over
a dull period On this fifty dollar loan
the committee was informed. the Dor
rover paid S27 interest in four months.
A married couple living 10Th
street, wishing to help friend who
was at the time in desperate need,
negotiated a loan from loan concern
in Washington. The amount of the
loan was S25, and the period was nine
months. Monthly payments of So were
required, making the amount TO be re-
paid S54 on a twenty five dollar loan.