Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-03-09

mitted to the District committees of the
Senate and House six amendments to the
law. which, If adopted, will bring the law
more nearly to conformity with the pur-
poses of loan shark reformers. One OF
| the proposed amendments would increase
the rate of interest which may be
charged by ioaning companies from !
per cent a month to IL per cent The
original bill provided that a rate OF
per cent month might be charged. 1t
| was not the aim or intent of the anti
loan shark people to put an end to the
business of making lonns to persons who
were without collateral security or bank
standing. 1t was the aim to break down
| extortion, blackmafl and general repre-
| hensible and distressing practices asso-
ciated with the loan business. Under the
| law as it is now the business OF making
small loans without security, or on very
slender security. has been broken up. while
| in numerous instances the loan sharks
aimed at evade the law. The rate pro-
posed in the amendment. which splits
| the difference between the rate as pro-
posed in the original bill and as it is in
| the law. should be adopted The Com
| missioners in recommending this amend
| ment to the District committees in Con-
gress say that 1T is believed that the
business can be carried on in the District
of Columbia under conditions that Will
enable persons to borrow money when
needed upon terms that they can meet,
and which terms will not result in ao-
normal profits to lenders" In drafting.
transmitting and commencing this
amendment the Commissioners are ex-
pressing also the opinion of the citizens
loan committee which has been long
engaged in the serious consideration of
loan shark abuses.
An important amendment proposed is
directed against those loan sharks who
would evade the law by operating an
office outside of the District, but who
solicit business and accept applications
for loans in the District and then make"
the loans in Virginia.
The citizens loan committee finds that
the loan sharks keep open their old
places of business. though the loans are
technically made elsewhere; that the in
iquitous trade is maintained, and that this
is through no fault of the assistants to the
corporation counsel who are specializing in
loan shark matters. The citizens loan
committee and the law officers of the Dis
trct find that among the unfortunate peo-
pie who have resort to loan sharks there
is a sad lack of knowledge of the law,
and the authorities, with the aid Of the
press, seek at every turn to rescue VIC
Tins by pointing out that under the
fourth section of the law they, the vic
tins, need only pay back three-fourths
of the sum borrowed and need not pay
any interest at all. The energies of
great many people are bent on breaking
down the loan shark business, and their
voice as to the need of amending the
present law should be heard.
An amendment is also submitted which
would reduce from 500 to 800 the annual
license required of companies making I'M
secured loans. The ground is taken
that this license requirement Is not
revenue measure, that such license is
prohibitive and that these loan companies
operating on a reasonable basis have
public use.