Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-03-07

d
brokers engage in business in Virginia
but maintain Washington offices in con
nection with their operations.
Convinced Of Mistake.
The citizens loan committee. of which
Commissioner Siddons was a forme
member, endeavored at the time the '1oal
shark bill was under consideration t,
have per cent interest provision in
serted, but Congress decided that 1 pei
cent was enough. The committee is nov
more convinced than ever that this was 8
mistake. but takes the position that thu
|. loan companies may be able to do busi
ness on a 11s per cent basis.
The amendments submitted, with the
Commissioners statements embodying the
reasons for them. are as follows:
Il. Amend section l by adding aftel
the word Intangible in line six, the
words or without any security
The reason for proposing this amend
ment is that in recent prosecution 1t
was contended on behalf of the defend
ant that the law did not apply to those
cases of loans made without collateral
security and that the mere promissory
within the meaning Of the law. The
Court of Appeals of the District has
recently rejected this, contention, but i,
is nevertheless considered desirable tina!
all doubt be removed by the adoption OF
the proposed amendment.
Reduction of Tax.
So Amend section by striking out the
word five in line of said section, and
insert in lieu thereof the word 'one,' SO
that the license tax shall be reduced from
500 per annum to 500 per annum.
'The Commissioners believe. after an
observation Of the operations of the law
that the existing license tax is altogether
too high 1t was not the sum proposed
in the bill as originally submitted to Con-
gress, and only one license has been taken
out since the law was enacted. 1t 1s sub
mitted that the law was not designed
as a revenue producing measure, or one
that had for it's object either the de-
struction of the business If carried on
with a due observance of the law, or te
discourage fair competition in the busi-
ness, but it is believed that this high
license tax has both efrects.
Proposed Amendment.
81; Further amend section 1 by adding
at the end thereof the following:
"'When an application for loan is
made within the District of Columbia
and the money is advanced without said
District in consequence, directly or indi-
rectly, of such application. the transac-
tion shall be deemed a loan made within
such District, and all the parties within
said District aiding and making it shall
be subject to the provisions of this act
The buying or indorsing of note OF
notes, or the furnishing OF guarantee OF
security for compensation shall be con-
sidered to be engaging in the business
of loaning money within the provisions
of this act. Any person, firm, voluntary
association, joint stock company. IN
corporated society or corporation, di-
rectly or indirectly engaged, or seeking
to engage in the business of negotiat-
ing. arranging or aiding the borrower
or lender in procuring or making loans
whether such loans are actually made
by such person. firm, voluntary associ-
alton, Joint stock company, incorporated
society or corporation. or by other
parties, or are not made. shall be deemed
to be engaged in the business of max
ing loans, and shall be subject to the
provisions of this act.
Subject of Provision. 80.
THE object of this proposed amend
ment is to further strengthen the law
and to reach those persons who may at
tempt its evasion. as there is reason for
believing has already been undertaken
with more or less success This amend
ment has been framed with considerable
care, and proposes. it is believed, to intro
duce into the law correct principles.
~ Amend section by inserting after
the word with where it last occurs in
said section the words an income, or
profit and loss statement for the year
and.
.'The object Of this amendment is to Sc
cure such an addition to the annual state
ments required by said section to be
made by persons engaged in the business
aey,1lo rod light
upon the business conducted and thus en-
able the authorities to determine more ac-
curately whether the rate of interest per-
mitted to be charged by the law is fair
and just or not.
IS. Amend section by adding after
the word one, where it first occurs in
said section, the words and one-half
THE object Of this amendment is to in
crease the rate of interest that may be
charged by those engaged in the business
regulated by the law to 11a per cent inter.
est per month, instead of per cent. This
proposed increased rate is " of per cen
1 less per month than that proposed in the
law as originally submitted to the Con
gress, and the Commissioners realize tina,
in it's passage through the Congress thi:
question of the rate of interest was on,
that received the warmest discussion.
No Profit in Business.
But the Commissioners have observed
the operations of this law closely in tn,
case of the only concern that has takeI
out q license under the law and, it is be
| Iieyed, is observing its provisions.
This observation seems to demon
strate that the business cannot be con.
| Quoted at any profit at all to those
I whose capital is invested in it at the
| existing rate of l per cent. The theory
| Continued on Second Page.l