Arizona republican., 1919-07-06
THE RETURN OF
 PAW WNBROKER
By Frederic J. Haskin

Washington, D VI He ShNS
 Washington has been trying the ex- pertinent of getting along without pawnshops. For half a decade there have been no community "uncles' in the nations capital. Thus has city of 400,O 900 people, city which Tn us local affairs is virtually unaffected by politics, been made the basis of an ex- pertinent to determine whether or not the pawn shop is necessary adJunct to it's life and well being.
 The answer seems to be that It IS, for Washington seems on the verge or again hanging out that sign or the three spheres which beckons peren- | niallv to the financially unfortunate and to the improvident.
 The last of the legitimate hook shops in the District of Columbia passed in 1914. At that time a loan shark law went into effect which cut down the interest rate that might be charged in the District from three per cent to one per cent month. Thls law killed the pawn business in the capital. With the reduced rate of in terest, the pawnbrokers could not make a profit Most of them went out of business entirely, while a lew located across the Potomac river in Virginia, within a ten minute trolley ride of Washington. One Of the pawn brokers who moved across the river has since been doing the bulk of the capitals pawn business. When one has wanted to make loan he has ln- terviewed a representative of the Nlr- ginia pawnbroker in Washington and, if conditions for completing the trans action seemed favorable, he has gone across the bridge.
 Now the authorities of the District favor the return of the "hock' shops. Especially is this true of the police | department. One reason for this IS the fact that regulated pawnshops are helpful in detecting thefts. When pawnbrokers did business in Wash ington more than 25 per cent. of stolen jewelry and other stolen goods was recovered from the pawnshops. Today less than per cent is recovered through the second hand stores, pool rooms. cheap jewelry stores and other kindred places, that have illegitimately come to serve as a means by which the thief can get quick cash for his loot.
 Under the old regulations which were in effect before the pawnshops were l forced out of business. each pawn broker in the District had to make a daily report to the police department, listing the goods pawned and also fur nishing a description of the pawneE In this way, the police were often able to trace stolen articles. In case a pawn broker made a loan on stolen goods which were later claimed he was bound to turn the goods back to the owner losing the sum he had ad- vanced.
 With the pawn shop gone the police l had a slim chance of checking ur
 stolen goods through the medium of the second hand stores and similar H places which have been substituted \ for the pawnshops. The police know that many of the second hand stores,
 particularly secondhand clothing stores, do business on the "hock" shop
 plan but they are unable to get the
 goods on these dealers, because of
 the shrewd manner in which the sec ond- hand men cover up their tracks. K These dealers buy second hand cloth-
 ing with the understanding that the
 owner can buy it back at a certain price, which is generally in excess Of the ordinary interest rate charged by
 pawnbrokers. They never give. a pawn ticket as evldence or the tranS- action. They simply have gentle
 mans agreement" with the customer. Ii Often they violate their end of the agreement and when the customer re-
 turns to redeem his clothing, the price is materially advanced. The customer | has no alternative but to pay the in- creased price. Here is a case in point:
 young man of the capital, ordin-
 arily prosperous. was suddenly thrown
 into a state of financial depression. He needed ten dollars and he needed it at once. He did not want his friends
 to know of his embarrassment so, in-
 stead of borrowing from them, he took
 an overcoat, for which he had paid s100, around the corner to one of the
 second hand shops He got sl0 for it.
 with the understanding that he could buy it lack again for SIP. He re-