Evening star., 1915-05-14
.USURY ON LOANS
AGAIN DISCUSSED
Corporation Counsel Is Asked
What He Proposes to Do
in ''Annie'' Case.
Detective WILL PURSUE
DISCLOSURE BY THE STAR

The usury which the colored woman
Annie was obliged to pay in clear VIC.
lation of the loan shark law, as ex.
posed by The Star, may result in the
wiping out of the remainder of the
army of loan sharks now violating the
law in Washington.
Whether or not 1t will result in pun
ishment for all loan sharks who have
fattened on usury on old loans since
the loan shark law went into effect
| and who have made evasive usurious
agreements without license is a ques-
tion to be settled by the Commission
ers.
Following The Stars statement of the
| case. despite the evident disposition at
| the outset to ignore the usury, a de-
tective will be put to work again on
the case, it has been promised by the
corporate counsel; but so far no ar
rest has been made.
In the meantime, in an interview with
a Star reporter. William H. Baldwin.
chairman of the citizens committee
! which worked up the loan shark law
asks the corporation counsel what he
| proposes to dor' Particulars in other
cases of usury will be supplied to the
| authorities
Explains His Position.
/
| William H. Baldwin. loan shark ex-
pert, and responsible in large measure
for loan sharp legislation here, was
asked today to explain his position in
| regard to the statement of Corporation
Counsel Syme. MIR. Baldwin replied:
Perhaps The position of the corpora
tion ~counsers ONCE In regard to the
loan sharks can be made sufficiently
| clear from the case of Annie which
4 CIV
| tempting now to discuss the stipula tion
| to which reference was made in the
| corporation counsers statement; for the
facts in this case. as developed by De-
| tectfve Evans, are admitted.
| Annie borrowed $50 on June 12. 1913
| Inc loan shark law was passed on
| February 4, 1913. and took effect on
| March Z. SO this loan was made more
than three months later. She agreed
to pay back ten monthly payments OF
| $40. total of $77. This amounts to
lis per cent per annum.
| The report shows that she had made
seven of these monthly payments
amounting to $3.50, and that ali that
| she was reiea sed from when the agree
| ment between the District and the loan
companies was made. was $23.1O Now
the interest on $50 paid back in ten
| monthly payments at s per cent. which
was all the lender had the right 10
| charge as he had no license. is s275
a total of s52.75; SO that Annie had
already paid back not only principal
ana interest but sl15 usury. She evil
| IDENTIFY not only failed to get the $3.50
1 for the forfeiture of 25 per cent or the
| principal, which is part of the penalty
| provided by law in ases where usury
| Is shown. but the corporation counsers
] office did not get for her the s115 usurv
| paid in excess of the legal rate The
| settlement only released her from lie
| sZ5.lo additional usury to which the
loan shark never had any claim
Continues Offer of Low Rates.
He, however, continued to offer her
money at low rates. and July 81. 1914
| wanting to get a new horse for her
market wagon in place of the one
| which had died. she went to him for
the money; This was new transac-
ton, for II the settlements Of the cor
| poration counsefs office mean anv,hin,
they mean that the previous loan was
entirely closed.
| In the face Of her misfortune tall
ing advantage of her ignorance and =,
her necessity, the loan shark demand
the previous loan made in sdmi,ted
| violation of the law. He forced her 10
include this in the notes which he e,o
acted from her In payment of the s4s
loah. ana ooiisated her to waive her
| rights to recover in any way sny mart
Of the $23.10 or the 25 per cent To-
TEXTURE. The agreement definitely ad
Inits that with excess interest ann one
fourth or the principal she had paid
| back 1880 over and above what wa :
| legally necessary.
| IT is absurd 10 say that sbe n.id
this fearful usury on the old loan he
! cause she was willing She agreed ~
| pay IL because she was ohIiped ~ a.
so in order to get the new loan and as
| part Of the consideration for il
She gave seven monthly noteS q,
| $40 each with per cent interest mak
ing a total OF s71 40 for which sbn 20 -
ccived s4s This makes a rate ne ,ss
| per cent per annum
she had managed to make payment,
| amounting to $4,000 when. because ~
her inability to pay fast enough and
she came to the Associated Cha rites
| for assistance.
| Propounds Query.
In view Of these facts. what doe. the
| corporation counscls Office propose /,
do in this case?
"If tho loan shark extorted this none,
| on an old loan after the borrower had
paid all she was willing to pay under
the settlement made by the corporation
| counsels office. IT is a violation OF the
| stipulation which should subject the
| offender to thirty days In Jail
.If as is more properly the case. II
Is new loan. il should have a punish
ment not less severe.
| Does the settlement made by the
corporation counsels Office permit lend
ers to extort l66 per cent per annur,
from helpless people in this way? The
law secured by the citizens commits ee
after so much effort declares that the
man who charges or receives more
than the legal rate of interest shall
be punished Has the corporation coun.
| sells Office the right to permit lenders
TO take more than the legal rate il
borrowers can be Induced to pay it?
ut does not appear that this loar
shark has been arrested up to this
morning. 1t will he interesting to
know what Is to be done about thi,
u case before discussing any others,"