Evening star., 1914-04-10
C. H. Watts So Declares Be-
fore the House District
Committee.
SEES ECONOMIC NEED
OF MONEY LENDERS
Forty Eight Thousand Transactions
Here in 1912, He Declares-John-
son Opposes Increased Charges.

Hearings in relation to the bill to raise
the rate of interest on small loans in the
District of Columbia from 1 per cent to
IL per cent a month were resumed be-
fore the House District committee to-
day and will be taken up again tomor-
row at 10 O'Clock.
Edward R. Leibner. a public account
ant. brought to the hearing by c. c.
Tucker. attorney for George D. Hornins,
produced calculation based on the con-
tracts in use by the Society for Savings
and Loans His figures resulted in Y
per cent plus as the interest taken on
the combination loan and bond transac-
tion of the society.
c. H. Watts of Philadelphia, who rep
resented the Capital Loan Company.
Household Loan Company, Columbia
Loan Company and Washington Loan
Company appeared in connection with
the chattel mortgage feature of the bills.
He said a man named Fred Huettman OF
Chicago is the financial backer OF these
and many other loan companies through
out the country. He said IL laws would
protect loan men from dishonest bor-
rowers the rates would automatically
lower themselves.
Thousands of Loans
his contention that there is an economic
need for small loan institutions. He said
$4,000 loans were made in Washington
in 1872.
And there are about 66.0O0 homes,''
said Representative Caraway.
Yes"
How did you happen to let 1S,000 of
them get away?' asked the representa-
tive.
Ga
Foundation experts had agreed that }
per cent month is a proper rate, in
Guiding all charges. fees. etc The ex-
aJnples of the loans made by the COM
panies represented by Mr. Watts showed
interest in one case of S2's per cent.
Questioned on this point, Mr. Watts
said that IL people can be made to pay
their loans and to respect absolutely
these loan contracts the coiiections ~ouio
be easier and rates could be lower
Against Imprisonment.
DO you FAVOR tnprisonmens for deSt?''
ssskedx REPRESENTATIVE johnson.
No, indeed"
Mr.. Watts read a lengthy report of q
Massachusetts charity investigation. One
sentence was to the effect that compe-
tition would reduce rates.
You don't believe that, do you? asked
Representative Caraway.
"Oh. yes,
You had competition here, didn't you?'
And vet you charged 81 per cent here.
That does not look like competition re-
duced rates.
Aided Fight Against Bill.
Representative Johnson asked MIR.
Watts H. Fred Huettman of Chicago, the
man said to be the central chattel loan
man Of Chicago. had contributed to defeat
the loan shark bilI' which is now a
law George HorninS replied TWO
thousand dollars
Representative Johnson made it perfect
ly apparent that he is opposed to the
bill allowing rate of IL per cent
month. although it bears his name. He
says he had introduced II at the request
Of the Commissioners, but would oppose
IT, He also said he was not interested
in how much money loan men could
make-he was interested in how much
borrowers had to pay
Representative Igoe asked what Mr..
Tucker considered a fair rate.
Three per cent up to 500. was the
reply He also said that fair nvesti-
CATION of the business might result in
benefit to the community and the busi-
ness.
la a colloquy with Representative Cor
man Mr.. Tucker said that the average
installment furniture man is very much
more of an evil than loan shark
Masters Out of Business.
l.. i. Masters said he was interested in
finding out what would attract money in
the loan business.
Il am interested in stamping It out.
said Representative Thompson.
II am out OF the business" said Mr..
Masters. Il wouldn't go into it again.
would not stand the abuse Of people
who know absolutely nothing about the
situation He said it would require a
million dollars in capital to take care of
the small loans in the District Of Co
lurnbia. Mr.. Masters said he had never
loaned to but one attorney. and ! lost
that he said