Evening star., 1914-04-08
BORROWERS URGED
TO SEEK ADVICE
loan Shark" Victims Warned
Against Making Further
Payment on Loans.
MIGHT FORFEIT RIGHTS
UNLESS PROPERLY GUIDED
Already Corporation Counsel's Of.
flee Has Saved Nearly $4,000
to Public, Is Belief.

| Every borrower from a loan company
| ought to visit the Office of the cor
T, poraton counsel for advice before max
| ing any further payment on loans is
| the advice sent out today by those
| working to have that Law vigorously
f., enforced.
| They call attention to the fact that
The Star on March 81 announced that
the loan shark" cases had been settled
! by compact and that the loan COM
panies had agreed to two things:
| 1. To return to all it's borrowers max
| ing application therefor through the cor
poration counsers office all interest
| charged and paid by said borrower or
borrowers on all loans made and paid
| by the borrower or borrowers since the
6th of March, 1918.
.. To settle all loans made since the
9Th of March. 1918. which are not vet
| fully paid up by accepting from the bor-
| rowerS an amount equal to three-fourths
| of the amount loaned without any in
terest whatever, and upon payment to
give a receipt and not to again endeavor
| to collect on the loan.
AS in almost all cases borrowers have
had previous loans, the actual amount
| to be recovered under the first of these
provisions is larger than under the sec
ond.
Rights Under First Provision.
The Star of April printed a letter
which it said was to be sent out Mon
day Ito all patrons of loan sharks, in
forming them of their rights under the
terms of their agreement" This letter
stated very plainly the rights of the
borrower under the second of the pro-
visions of the agreement. but. as print
mention borrower
rights under the first of the provisions,
but this right exists and notification OF
it is. in the opinion of the corporation
counsel. implied in the notification OF
the forfeiture of one-quarter of the
principal
AS the borrower cannot secure what
is due him by the first provision under
the agreement unless he makes applica-
ton through the office of the corpora
tion counsel. the only safe way for
every one who has made any loans since
March e. 1913, is to take to the office of
the corporation counsel all papers re-
lating to them and all receipts for any
payments made since March 6. 1913.
and have his rights figured out by the
corporation counsefs Office ---
The only way IN which the rights of
borrowers can be protected is by hav-
ing each one take all his papers and
claims to the corporation counsers Of
fee. as suggested above.
Big Sum Saved Public.
That patrons of loan shark companies
who have had their accounts examined
by the office of the corporation counsel
of the District have been saved between
$4,000 and 10000 in usurious interest
and principal payments not required to
be made under the exemption clause of
the loan law, is the estimate of officials
of the office
While it is based on approximate figures,
1t is believed to represent fairly well the
service that has been rendered by the
Districts legal department in protecting
borrowers who were in the clutches of
the companies.
Officials of the office estimate that /. 800
persons have applied for assistance and
that the notes averaged $50 In value
This would make a total of $4,000 in
volved. 1t is believed that so per cent
of this amount. including interest and
one-fourth of the principal, or about
| $4,000. has been saved the borrowers
There were no indications TODAY of a
let-up In the demand made on the Office
to examine accounts calling for Illegal
interest payments. Attorneys Stephens,
Whiteford and Williams. assistants to the
corporation counsel, and several clerks
were kept busy interviewing applicants.
1t is expected that several hundred more
| borrowers will appeal to the Office for
aid before the loan shark" situation is
cleaned up.