Evening star., 1914-02-21
BORROWERS ARE TOLD
TO DEFY THE "SHARKS"
Loan Companies Said to Be Making
Threats to Enforce
Collections.
"Let Them Seize Furniture Is Ad-
vice Of the Corporation
Counsel's Office.

Although there were no develop
ments of Importance in the loan
shark" situation today, the District
corporation counsers office continued
Its investigation of some of the prac-
tees which the loan companies are
alleged to be using in an effort to save
as much as possible of the three-quar
tors of a million dollars interest esti-
mated to be illegally called for by out
standing notes.
Information is being collected almost
hourly which. it is stated, will be used
in prosecutions to be instituted later
in Police Court
One of the most frequent complaints
which is coming in for careful investi-
cation is that a number of companies
have threatened to seize furniture and
household goods upon which they CLAIM
to have chattel mortgages.
i ct them take the furniture away" is
the advice that has been given in every
case OF this character reported to the
corporation counsel's Office
Criminal Action Threatened.
Complainants have been told that, if
the companies should go to this extreme.
which is considered entirely unlikely, the
office not only will bring criminal pro-
ceed1ngs with the view OF landing the
officers of the companies in TAIL, but will
assist those whose property has been
removed in obtaining counsel for the
purpose Of bringing civil actions.
The corporation counsers office has dis
covered that many of those who have
appealed to it for assistance have been
under the impression that the loan COM
pan1eS held chattel mortgages on their
household goods and furniture.
Ihe loan shark law provides that II
shall be unlawful and illegal to engage
In the District of Columbia in the busi-
ness OF loaning money upon which rate
OF interest greater than per cent per
annum is charged on any security. direct
or collateral tangible or intangible, with
out procuring license
The cost of license is $500 a year.
ana, so far. but one loan company In
the District has obtained such a license,
according to a statement today by AS
sistant Corporation Counsel Stephens
Mr.. Stephens stated that Immediately
following the passage Of the act the COM
panies informed the District government
legal department that they were no long
er lending money on household goods.
Whether the companies do or do not
hold chattel mortgages on furniture and
other household property. they are liable
to be prosecuted II they have made loans
calling for interest payments in excess
Of the amount allowed by law.
MAKE SeLLlemeuC OueTS.
Without exception persons who have
called at the Office of the corporation
counsel have been told to offer the
companies three-fourths OF the prin-
cipal Of the notes without interest, the
law requiring a settlement on this
basis in all cases where the companies
have sought to charge illegal interest.
In many cases the settlement prof.
fered has been accepted. In others the
companies. it is stated. have refused 1t.
When instances of the latter character
have been brought to the attention of the
corporation counsel's office the makers
of the notes have been advised to make
no further move. thus putting up to the
loan concerns the question of what steps
they shall take in an effort to collect the
notes.
Assistant Corporation Counsel White
ford will be at the Municipal building
from 7:30 to $50 o'clock tonight to re-
ceive complainants. The office will be
open tomorrow from 1880 to 1890 O'Clock
and will be in charge of Assistant Cor
poration Counsel Stephens. 1t Is expect
ed that the number of persons making
complaints against the loan companies
will have reached a thousand by tomor-
row.