Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-25
EXPLAINS ATTACK
ON LOAN STATUTE
ConstitutionaIity of New Law
Contested by James S.
Easby-Smith.
SIMILAR GROUNDS BASIS
OF MANDAMUS ACTION
One of Chief Points in Defense of
Reagan Is Meaning of Word
Security

Practically the same grounds for at.
lacking the legality of the loan shark
law. enacted during the last session OF
Congress. are cited by Attorney James
s. Easily Smith as were set forth i'm a
mandamus suit now pending before
Chief Justice Clabaugh i'm the Supreme
Court of the District of Columbia Mr.
Easily Smith filed demurrer to an in
formation in the Police Court charging
Bernard Reagan with violating the pro-
visions of the ne% law Judge Null
lowry overruled the contentious of the
lawyer for the defense after arguments
were heard in court Friday.
The principal point of attack contained
in the mandamus suit, which was brought
to compel the Commissioners to grant a
license to a pawnbroker under the old
law, is that the law approved February
T. 1919 is unconstitutional. on the
ground that it operates to deprive citi-
zens of their property without due process
of law. and also denies them the equal
protection of the laws of the United
States
May Not Press Feature.
While this contention is contained i'm
Attorney Easby-Smith's demurrer he
already has made plain that he does not
intend to press this part of the demurrer
if it is possible. to protect the interests
no wish to try to invalidate the recent
law.
Mr.. Easby-Smith said last night that
the consideration of this suit by the
Supreme Court may precede an. appeal
from Judge Mullownys ruling Friday. In
case the court grants the writ of man.
damus compelling the Commissioners to
grant a license to the pawnbroker under
the old law. il will be unnecessary for
the appeal on the demurrer to be carried
further. as the case in which Mr.. Easily
Smith appears as attorney would be drop
ped by the government in the absence OF
law under which to prosecute.
When questioned on the matter by a
reporter for The Star last night. Mr..
Easily Smith said. in regard to the cases
against Bernard Reagan, to the fnforma-
lions in which his demurrer was filed,
that there have been some misstate-
ments of the facts.
Reagan Not Convicted.
fined. it was explained. as this could not
have been done by the court until the
case had been titled Upon the facts. The
demurrer merely grants the guilt of the
defendant for the sake of argument,
but a conviction is not entered against
him il the court overrules demurrer.
In response to request from the re-
porter of The Star for a statement Of the
case from the standpoint Of the defense
Mr. Easby-Smith said last night tina
one of the main points of the case II
which he was interested was the meaning
of the word security as used In the
so-called loan shark law.
The attorney pointed out that the case
will have to be tried upon the facts and
his client convicted before an appeal may
of the demurrer. This trial on the facts
will probably occur this week.
Explains the Case.
Recently" said Mr. Easily Smith. IAN
Information was filed in the Police Court
against Mr.. Reagan. charging him with
loaning money on security in that on
March ne made three loans one OF $3.50
on joint and several promissory' note,
Of SO on an unindorsed note. and that on
Of $o5 nan unendorsed ote. and that on
each loan 2 per cent interest was charg
ed for one month. 1t was charged in the
information that the defendant lender re-
promissory notes mentioned.
Il filed a demurrer to the Information
based on the ground, among others, that
the language of the law-namely, loan
ing money on security of any kind ap-
Plies only to the loaning Of money on
some security over and beyond the mere
promise of the borrower to repay-that
is. that 1t applies only to loans secured
by pledges, chattel mortgages, salary as
signments. collateral security and SO
forth. Leaving out of consideration deci-
sions of the courts on similar statutes,
this law itself several times refers to
the security: for example: The property
or thing named as security and fore
closure Of the security and so forth.
Possible Future Course.
Judge Mullowny overruled the demur-
rer and the case will be tried on the
facts as soon as reached in regular
course. Should the trial result in convic-
ton l shall apply to the Court Of APP
peals to review the case and interpret the
law.
1T is also a mistake to refer to the
loaning OF money on prOmissory notes
without security as a device to evade
the law Practically all the so-called
remedial loan companies for a Ions
time have been loaning money on promis.
sorry notes. without security at 2 per cent
MONTH and Il will be recalled that the
Monday Evening Club and practically all
persons who were interested and active
in securing the enactment of this law
urged Congress to fix the rate at pei
cent.
my client has simply continued in the
same line of business in the honest belief
that the terms of the law do not cover
and were not intended by Congress te
cover. this form of loantng money"