The Washington herald., 1913-11-04
RULING PLEASES
DISTRICT HEADS
Commissioners to Hit Hard
Blow at loan Shark"
Violations.
STATEMENT OF SIDDONS
Comments on Effectiveness of Decision
of Justice Shepard on Laws
Constitutionality.

The Commissioners expressed much
satisfaction last night at the defense Of
the ..loan-shark" law by Chief Justice
Shepard, of the Court of Appeals, in the
decision handed down by him in the case
uf William n. Prender. Commissioner
Siddons, under whose particular Jurls-
'diction the enforcement of this law
comes, last night commented "a follows
upon the decision!
Il heard this morning that the So
called loau-shark' law which Mr.. Justice
Clabaugh recently declared unconstitu-
rional had been upheld by the Court Of
Appeals of the District of Columbia, and
the news was very pleasing TO me- As
well as 10 the other Commissioners.
While l am not aware Of the scope
OF the opinion that was rendered thls
morning, | am hoping that 1t is iar-
reaching and broad. In the event that
II meets my expectations and hopes in
this respect and becomes the last word
in law in the matter, the Commissioners
have much To look forward TO IN the
suppression Of the evils arising as a
result of the iniquitous loan-shark
operations which this District has been
daIIying with for so many Years Need
less TO say. II the court holds, as we
hope, the Commissioners Will prOsccut"
each and every case of 'lOan-shark
wrongs quickly and with all possible
force and hrmHess.
Decision of Court.
In reversing Chief Justice CiaOaugh ;
decision in the case of William y.
Prender. Of Alexandria. who was denied
a license as a pawnhroker and then m
stitu,ed maudamus proceedings, CHIEF
a-R The Court oil -Al-
pels. said:
There had been much public COM
rlaint attending the lending Of money Ia
the District Of Columbia, in comRara-
riv,lv small sums upon pledges or other
security by persons engaged in the bust
resS VIII, thcr technically pawnbroh"FS
within jnc meaning Of former licensing
acts or not The act undertook to remedy
these nlischicfS in part at least. through
license and regulation
In return for the somewhat high Il
cense iax and the regulations imposed
this class of lenders il given the right to
exact a greater rate of interest than Is
pernittcl to bankers and others who
are excluded from its operation: ana II
docs no, include any who lend at rat"
not greater than PER cent per annufn.
Police Power of Congress.
- III - agreed mat tne luhSHlful ~ ~"
rested upon the ground that the act Of
1918 is unconstitutional and void because
Of the discrimination made in the nrst
section between residents uf the District
and uon-rcSiGonts. and between resi-
dents Of other States and Incorporated
associations OF other States.
o. That there j. such discrimination can
rot he denied. ans the UUrsti"u j.. con
Stfcrinc the nature OF the business rccu-
lated whether the classification and dis
,-rinliuativn are within the power Of Con-
-Tos>-
''Con=rc>s. in lr=i>latiug for the Dis
tl.i,t uf Columbia. is vested with tn" or
binary pOliry. power Of the states within
their several limits. and II IS not limited
Icy ihc provisions or ,T" fourteenth
amendment. However. as has been said
Il a former case. 'Iu. power is exclusive,
but it il not unlimited, nor is it arhi-
tiary.
chief JuStic" Shepard advances the
opinion that tho legislature is the judE"
Il tho means necessary to an md within
Is power and unless the regulations are
Jllpab.y arbitrary and oppressive. 1t is
not for thc courts I" say tnat they are
,cyuHd IN" exercise OF the legitimate pow
.r ot legislation.
H." adds that tn" power Of classification
Il pcrSons. making different provisions
n relation to residents and non-rcst-
tents, has frequently been upheld as
cling reasonable.