Evening star., 1915-05-18
SUPPORTSF|GHT
ON LOAN SHARKS
Monday Evening Club Backs
Activities of Citizens
Committee.

Complete support for the citizens
committee which handled loan shark
matters before Congress was given by
the Monday Evening Club last night,
and a resolution of thanks for the
chairman, William H. Baldwin, was
adopted by the organization. The club
voted to stand by the committee in
everything it had done in the loan
shark matter. and went on record as
unanimous in it's approval of the course
pursued to rid the city of the evils of
usurious loans.
The action was taken following an
explanation of the present loan shark
situation. as has been outlined In The
Star by Mr.. Baldwin. The several cases
Of alleged violation Of the loan shark
law, as exposed by The Star. were re-
ferred to by him, together with the
specific mention Of several communica-
tions sent by him to the Commissioners
on the subject. He read one of these
letters, dated March "a, to which he
said no reply had been made from the
| District building.
Some Things Need Attention.
In referring to the District Commits
sioners and the loan shark law Chair
man Baldwin said:
There are some things which need
| attention badly. and the citizens com
mittee is unable to explain why they
have not been attended to-"
He also reminded the club that one of
the Commissioners had addressed the
Monday Evening Club several months ago,
and it's enforcement as one of the ex-
amples of the present District admin
! istration.
| AT that time said Mr.. Baldwin, "I
went to the Commissioner after the meet
| ing and showed him that the law was not
being enforced properly. and he replied
that he had one way Of thinking about
| 1t and that ! had another, and that was
| all there Is to 1t.
! Cites Evasion Of Law.
| He charged that by an evasion of the
law, which had never been dealt with
summarily by the Commissioners, loan
sharks had been able to do business for
year and take in s15S,O00 In interest.
He said that he believed the corporation
counsel could have collected large amounts
| of fines from these concerns if they had
been followed closely.
! The methods of which the chairman
of the citizens committee complains
are these:
| Several loan companies continued to
do business in the District without a
| license after the loan shark law had
been enacted. However. as they were
unlicensed. they could lend money at
| no greater interest than per cent:
the loan shark law forces a license fee
| az $500 and places the interest maxi
mum at II per cent year.
Companies Do No Business.
These unlicensed per cent loan
companies, however, are alleged to
have done no business at all except
with borrowers who had loans pre-
yiously with them. At the time the
loan shark law began to be admins
tered by the corporation counseTs Of
hce. a new deal was made all around.
much usury was refunded and many
loan accounts closed by these refunds.
| The unlicensed loan companies, there
rore sought out the borrowers who
had taken a refund and had loaned
them new money at per cent, mean
time taking notes to pay that old
usury once refunded.
| The question at issue is whether
these concerns are violating the law or
not The citizens committee says 1t Is;
the District building Ii undecided.