Evening star., 1914-04-14
Advocate | 1-2 Per Cent In
terest a Month to House
District Committee.
HOLD Up. c. YEARLY TOO
LOW TO ATTRACT CAPITAL
Only Way to Protect Provident Bor.
rowers From Vest Pocket Usurers,
Speakers Claim.

Arguments from the standpoint of m
dividuals and committees which have
gone thoroughly into the economic ana
scientific side of the remedial loan situa-
ton were presented to the House District
committee today by William H. Baldwin.
Walter S. Ufford, secretary of the Asso-
ciated Charities; Rev. John Van Schaick,
jr.. and Mrs. Archibald Hopkins.
The speakers all favored the passage
of the pending bill permitting an interest
rate on remedial loans of 11s per cent a
month in place of l per cent as at pres
ent The reasons given were to the ef-
feet that with the rate so low as II per
cent year capital is not attracted to the
legalized business and that loans being
necessity the vest pocket loan shark in
his most usurious form is preying upon
poor people who have to have money.
Says Law Works Hardship.
Rev. John R. Van Schaick opened the
hearing by reminding the committee that
Treasurer EXnicios of the Society of
Savings, is doing business under Dis
trict Of Columbia license; that the cor
poration counsel had complete knowledge
of the methods of the society and that
the office looked on Mr.. Exnicios as hon
orable and straight. Mr.. Van Schaick
said that the new loan law had worked
a hardship as it had resulted in making
1t hard for many poor people to obtain
money in crises.
Many men borrow money for drink,
or improvident reasons. but there is an
other class of men. where $50 or s1o0
will help a family through an illness or
help boy get a job. l favor ~ per
cent month interest. l per cent
month is too low to attract capital
He said the more drastic the usury
illicit loans, and that the vest pocket
| loan shark would be driven out by a
proper rate of interest.
| Representative Caraway asked him If
it is possible to stop selling liquor by
licensing every one to sell it.
The sale of liquor and the lending of
money are not in the same class"
Well, would it prevent Illegal loans?"
by legalizing every act now considered
criminal" answered Rev. Van Schaick.
Community Better Off Now.
The community as a whole is better of
! for the 1-per-cent-a-month loan shark
| law, Rev. Mr. Van Schaick said. but he
| wished to see it bettered by revising the
| law.
'Tt is a community need to supply
money to poor borrowers: it is necessary
| that a higher rate of interest be charged
than the banks charged; and that if re-
medal loans are not legalized the uSuri-
Gus vest-pocket loan shark will prey on
the poor said the witness. Also, In COM
menting on one or two specific instances
of improvidence on the part of borrowers.
Rev. Mr.. Van Schaick said that. regard
less of the foolish borrowers who show
up now and then, there is a large class
which borrow, and that the borrowing is
; for proper and not improvident needs
| Mrs. Archibald Hopkins told of several
| instances of usurious rates that had
partially strangled people she had known
| and explained that she knew of no i'm
provident borrowing.
do not charitable organizations de-
stroy more than they help?" asked Rep
resentative Caraway.
No, they don't: they help in q proper
way, and raise the self-respect of the
community" she replied.
Speaking of the Society for Savings, Mr.
Johnson asked if it should be figured alb
usury, would Mrs. Hopkins still retain
her high opinion of Mr. Exnicios
Il would be very careful as to who
had done the figuring
Suppose you did the figuring
Il not good at figures, having moth
ing to figure on myself
johnson Indicates Attitude.
Representative johnson indicated his
attitude on the subject of the Society for
Savings and Loans by asking whether the
fact that Mr. Exnicios is drawing
salary of $1,000 is the reason for charg-
ing a high rate of interest. He also
said the record shows that Mr.. Exnicios
charged usurious rates in the War De-
partment at one time.
Il know only of the cases l have men
tiOued.' reDlied Mrs HOnkipS
Il only know that my experience has
shown him to be honest and straightfor-
ward"
Representative Johnson said that he
believed Mr.. Exnicios had admitted
charging Is per cent a year.
II did not know that. was Mrs Hop
kins' reply, "as l had reau only garbled
accounts of these hearings in news
papers"
Walter S Ufford, secretary of the AS
sociated Charities. presented a set of
resolutions from the association favor
| ing a rate of interest on remedial loans
| legally allowed. The reasons given were
! that capital is not to be found at II per
cent. and that remedial loans are abso-
lutely necessary at times for even the
most provident poor.
Baldwin Outlines Situation.
Representing the citizens committee,
of several years ago. William H. Bald
win gave an outline of loan shark
legislation, and the general small loan
situation for the past several years.
He said that in 1910 the House District
committee had unanimously reported a
bill establishing 2 per cent a month as
the rate in the District of Columbia
Il was Il member OF the committee and
voted against it, said Chairman johnson.
He said the bill was in a fair way to
pass the House, but that the program
for presenting 1t in the House failed
Perhaps the loan men could tell why
the man who was to present the bill was
absent at the time he was expected to
present it, said Mr.. Baldwin. The bill
excepted pawnbrokers from the . per cent
monthly rule.
Just before The Stars report closed
Mr. Baldwin presented list of instances
showing evils of extortion. etc, in the
absence of law legalizing a remedial
loan business at rate which would
permit a general loaning business to
exist.
Charged With 16 Car Robberies.