Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-04-03
Certification Is Necessary.

Under the terms of the compromise
agreement by which Ahe loan shark
prosecutions were disposed of in the Po-
lice Court borrowers entitled to refunds
are required to get the amounts due
them certified to by the corporation
counsel's office. The agreement provides
that nothing shall prevent a borrower
from paying off a note at Illegal interest
rates if he chooses to do so.
In defense of this provision, which
has been the subject of some criti-
oism, officials of the corporation coun-
sci Office today stated that if any
patron of a loan company regard the
payment of a note in accordance with
terms upon which 1t was made a moral
duty, regardless of the fact that the
law may not require il. the corpora
ton counsel's Office has no authority
to prevent its payment on that basis.
w. II. Baldwin, chairman of the citi-
zens' committee backing the strict en-
forcement of the loan shark law, said
this afternoon:
THE citizens committee has heard of
many cases in which the money lenders
who are covered by the recent settle
ment have been sending out the usual
peremptory notices demanding the usuri-
Gus and unlawful payments agreed on,
and by the usual pressure. sometimes by
| threats, trying to get all they can from
the borrowers.
This seemed contrary to the argu-
ment. but the citizens committee learns
that it is not and that the loan COM
panies are free to receive all they can
make people pay, which is all they have
ever asked. Only through the office of
the corporation counsel can settlement
for three-fourths of the amount borrowed
be enforced
"The letters which were to be sent out
to borrowers notifying them Of their
rights have not yet been mailed, so only
the information given in the papers has
prevented any of them from paying all
that the loan companies demand.
Consult Corporation Counsel.
1.-The citizens committee, in view OF
these facts, desires to broaden its notice
to all those who have made any high
interest loans within the last two years
not to pay anything whatever on them
until they have been passed on by the
corporation counselS office.
Only in this way can their rights be
protected. and in almost all cases it
will be found that borrowers are en-
titled to get back usury on previous
loans, in accordance with the agreement.
In many cases where the companies are
demanding payment from customers it Is
found that they are bound to pay back
money to the borrowers, if it is de-
manded.
"The point is that unless the demand
is made the borrower can get nothing
back, no matter how much he or she
has suffered, and unless he or she OBJ
jects the loan company can receive.
without any hindrance or danger of
punishment all that the borrower pays.
no matter whether 1t is 200 per cent
per annum, or more Therefore. the
borrowers can only protect their
interests by making the demand.
through the corporation counseIs Of
fee.
THE agreement entities the borrower to
get back all he paid over what he bor-
rowed on all high-interest loans made
since March 6. 1918, whether paid up or
not, and one-quarter Of the principal in
addition on all those not yet paid up.
1t will be well to take to the corporation
counsel's Office all receipts and papers
relating to payments made since March
6, 1913. on any loans, whether the loans
are all paid up or not"