Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-05-27
FAV0RS AMENDING
LOAN SHARK LAW
Mr.. Gardner Framing Bill
Licensing Pawnbrokers Un-
der Strict Regulation.

Pawnbroking establishments which
were forced out Of business in the
District with the going into effect Of
the so-called loan shark law in 1913
will be enabled to resume operations
here. if a bill being prepared oy Com
missioner Gardiner for presentation
to Congress Is enacted into law.
The loan shark legislation Is re-
garded as having been eminently sue
cessful in Kidding Washington OF shy
locks, but its provision limiting IN
was a deathblow to pawnshops as
we'll as individuals and firms that
lent money at extortionate rates.
For some time there has been a
growing feeling among those charged
that strictly regulated pawnshops
here would be a benefit rather than
detriment to persons OF Moderate
means who, at times. are forced to
borrow money for emergency pur-
poses.
Commissioners Bill Outlined.
Commissioner Gardiner has sought
to interpret the needs of this class
of citizens in the bill which he has
drawn up to permit pawnbrokers to
again engage in business here on an
interest charge basis OF per cent,
as formerly. But the proposed law
makes this difference: That loans
above $50 shall be at the rate Of
not more than 2 per cent a month.
In other respects the legislation to
be recommended by Mr.. Gardiner dif-
fers radically from the law that was
in force prior to 1913. Its most drastic
feature 10 q Jail penalty for violation
Of any OF it's provisions.
Pawnbrokers who may elect to set
up Establishments here under the pro-
posed law not only will have to pay
a license fee of $500. as formerly. and
deposit $1,000 bond with the Com
missioners, but it is provided also that
individuals who may be awarded judg-
ments against pawnbrokers by courts
Of competent jurisdiction may enter
action upon the bond for recovery OF
the damages awarded.
Another important provision OF the
bill is that money shall not be loaned
upon furniture. chattels or household
effects of any kind.
Consults Laws of States.
Before drawing the bill Mr. Gardi-
ner consulted the latest laws of states
on this subject. He believes that the
interests of the public will be pro-
tected fully by the license tax. bond
and other provisions which practically
assure only pawnbrokers Of reliability
and reputable character engaging in
the business here.
1t is believed that the interests of
tho District also will be served
through the aid that pawnshops will
be to the police in recovering lost
and stolen property. Pawn shop re-
coveries reported by the police de-
partment, in 1912. before the loan
shark act went into effect, totaled
nearly $4,000.
His Views Undergo Change.
Before becoming Commissioner Mr..
Gardiner was opposed to the main
tenance in the District Of pawnshops
of any character, he stated today. His
experience as District official, how
ever, has convinced him that there
are still some persons here who loan
money at exorbitant rates. despite all
the police dan do to detect the pracs
tice, and that the operation OF well
regulated pawnshops would be a bless
ing to many people who are forced to
borrow money in times Of emergency
or distress, regardless Of the rate
The purposes of the Gardiner bill, it
is understood, have been approved by
by his colleagues on the board of Com
missioners, and also by the office OF
the corporation counsel and police de-
partment. The completed draft prob
ably will go before the Commissioners
at their next board session. and, II APP
proved, sent to Congress at an early
date.