El Paso herald. (El Paso, Tex.) 1901-1931, 1919-07-08
Papnbroker To
Be AH0wed In
Washington, DC.
Experiment of Doing With
out Him Proves To Be
Quite Unsatisfactory.
By FREDERIC J. HAsKIN.

BY FREDERIC j. HASkIN.
Washington. D. C., July s.-The city
of Washington has been trying the
experiment of getting along without
pawnsheps. For half a decade there
have been no community "uncles" in
the nations capital But Washington
seems on the verge of again hanging
out the sign of the three spheres.
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 to
one percent a month. This law killed
the pawn business in the capital. With
the reduced rate OF interest, the
pawnbrokers could not make profit.
Most OF them went out of business en-
tirely, while a few located across the
Fotomac river in Virginia. within a
ten minute trolley ride Of Washington
One Of the pawnbrokers who moved
across the river has since been doing
the bulk Of the capitals pawn bust
ness When one has wanted to make
a loan he has interviewed represen-
tative Of the Virginia pawnbroker in
Washington and. il conditions for
completing the transaction 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 fhefts. When
paWnbrokers did business in Wash
Jewelry and other stolen goods was
recovered from the pawnshops- Today
less than three percent is recovered
through the second hand stores. pool
rooms. cheap jewelry stores and other
kindred places that have ulegiti-
mately come to serve as q means by
which the thief can get quick cash
for his loot
Under the old regulations which
were in effect before the pawnshops
were forced put Of business, each
pzwnbroker IN the District had to
axe a daily report to the police de-
partment. listing the goods paWned
and also furnishing a description OF
the pawner- IN this way. the police
we're often able to trace stolen arti-
cies-
The police know that many OF the
second hand stores. particularly sec
ond hand clothing stores. do business
on the hook shop plan. but they. are
dealers, because OF the shrewd man
ner in which the second hand men
cover up their tracks These dealers
buy second hand clothing with the
understanding that the owner can buy
It hack at certain price which is
generally in excess of the ordinary
interest rate charged by pawnbrokers- /
They never give pawn ticket As EVIL I
dence of the transaction They simply
have 4 -gentleman's agreement" with /
the customer. Often they violate their
end OF the agreement. and when the
customer returns to redeem his cloth !
ing. the price is materially advanced /
The customer has no alternative but
to paw the increased price
Pool rooms and cheaD feWelry stores
in Washington are said to do a profit I
able business Of a similar nature. but /
the police have not been able TO get
sufficient evidence 10 bring them into /
court
Recovered DevTey-E Jewelry.
One pawnbroker in the District. be-
fore the enactment OF the loan shark 4
law. was instrumental in having seven !
valuable pieces Of jewelry restored TO /
the late admiral Dewey In relating
the incident. he said that an elderly I
man came into his office and asked /
for a loan. on an antique gold chain
The paWnbroker assumed from the
little the applicant knew about the !
value Of the chain that he must have .
stolen IL A nominal loan OF a few
dollars was made. for the value OF the I
chain would have warranted an ad-
vance OF more than 800 The police 4
were notified The man brought more /
jewelry- and under instructions from I
the police, other small sums were adj
ranced. Within a month he br6lght 4
seven pieces Of jewelry. worth thou
sands OF dollars He was advanced a .
total loan OF about s10G. The police i
finally took the man into custody and I
he confessed TO having stolen the jew
eiry from the hene OF admiral Dewey. 4
. { - -. Tran m rrf
the facts. as ne was not even aware 4
that the jewelry was missing The /
man was servant long in the employ /
OF the admiral 1
Rich Man PafronfEe< Pawnshops.
Not 50 very long ago. Virginia I
advanced $1,000 to a man
on three large diamond rings. After 4
the loan. the pawnbroker be-
came uneasy about the transaction /
and notified the Virginia police The /
the home Of a former senator of Vir-i
GINA. An examination of the stones 4
by the ex-senator proved this assump-
tion to be Incorrect The police in
CURED Of the pswner's standing in 4
his home town and received this (
Man is one of our leading attor-
news Worth half million"
It developed that he had come to
to enter the army and 1
so he pawned his diamonds.
OF the two measures introduced IN (
congress which will enable the pawn
shops TO return to the District. con
gresham Dyer's bill allows an inter
est rate OF three percent a month on
all loans up to $50 and two percent L
on all loans above that amount. The 4
other bill by senator Dillingham; fixes I,
a general rate of two percent on all I
loans
The original legislation which put
the pawnshoD out of business in
was aimed at loan sharks,
those socalled tent ercenters" who I
operate on a quite different basis Z
The new legislation will not allow
the ten-percenter to resume business
The District government is in favor Of
letting Uncle" open up again II he is
properly regulated