Evening star., 1920-02-18
L0AN-SHARK LAW
CHANGES FAVORED
BYCOMM|SS|ONERS
Tinkham Bill, Allowing 2 Per
Cent Monthly Interest,
Endorsed.

Will IuSbtSsuy ubSSs WY
Endorsed.
In a report sent to Congress today
the Commissioners indorse the Tink-
ham bill to amend the loan shark law
by permitting pawnbrokers to charge
? instead of l per cent monthly in
terest on small loans in the District.
In an accompanying report the Dis
trict heads disapprove and urge Con-
gress not to enact the Dyer bill. which
would make the rate 3 per cent on
loans up to $50 and per cent on loans
above that amount. The Commission
ers believe this measure would admit
the loan sharks, who have been driven
out.
The Commissioners tell Congress
they are satisfied money lenders will
find it possible to do business here at
> per cent. and ask for early passage
of the Tinkham measure.
1T is asserted in the report that the
District OF Columbia is the only city
of it's size in the world in which there
are no pawnbrokers. resulting in
hardship to good citizens who oc-
find themselves in need of
small loans.
The Tinkham measure also aims to
prevent the practice of pawnbrokers
seeking business in the District and
completing the transaction across the
District line, where the local rate of
interest and regulations of the Com
missioners to safeguard the borrower
cannot be applied. On this subject,
the Tinkham bill provides:
When an application for loan is
rla Ii, - =,
and the money is advanced without
said District in consequence, directly
or indirectly. of such application the
transaction shall be deemed a loan
made within such District. and all the
parties within said District aiding in
it shall be subject to the pro-
visions of this act
The Commissioners further suggest
in their report that the limit Of 5000
in the present law be removed as to
pawnbrokers' loans.
Objections to Bills.
In disapproving the Dyer bill, the
Commissioners objections read, in part,
as follows:
While a rate of per cent per
month on loans of $50 or less is not
the Commissioners be-
lieve- from ample evidence that it is
unnecessary for pawnbrokers' loans
in Washington. and that with a fat
rate of per cent per month on all
loans the business will be success
fully done.
Because it relates only to pawn
brokers and takes no account of
loans to borrowers on indorsed notes
or other security who may be just as
as those who have jewelry
to offer. this bill would permit the
return of all the loan sharks who
A.s, Ixvx se~ki
law. which it would repeal This
be calamity for the District
The Commissioners have been well
aware that certain loan sharks have
been anxious to return to Washington.
but they can hardly believe that any
one would in their interest inten-
infiict upon the community
the evils from which it was delivered
by the present law"
In summing up their views on the
Tinkham bill, which merely makes
certain changes in the existing law,
the Commissioners say:
The Commissioners earnestly urge
the prompt passage of this bill, for
which there has been long continued
and practically unanimous demand by
the citizens of the District as repre-
sented not only by the citizens COM
mittee on the loan shark law, but also
by the civic organizations which have
been and is badly needed for two rea-
sons.
Provision In Needed.
First, to enable persons of limited
means to borrow money in cases OF
emergency on personal notes or such
security as they can give, or on
pledges to pawnbrokers, at rates
rate charged for larger sums by
banks, but which are not unreasona-
BILE for such small loans. For such a
provision there is constant need, as
the laws enacted in all the most i'm
portant cities throughout the country
show.
"The existing law has driven out the
loan sharks who were exploiting the
poor people as gamblers or lotteries
would but it has not done away wltf
the many cases of need due to sick
ness, loss of employment or sudden
demands in other emergencies BY
which honest people who are ordinar'
ily independent are confronted from
time to time.
I'm multitudes of such cases the
payment for a short time of rate
greater than the legal rate saves the
borrower from pauperizing himself
by application for charity. In the
absence of law permitting such
loans, relief is constantly found by
a resort to secondhand dealers or
to clandestine lenders at exorbitant
rates.
Poor People Suffer.
"In spite of the efforts Of the police
to prevent such transactions. many
of them are made all the time. and
the poor people suffer accordingly
Washington is the only city of it's size
in the civilized world in which there
are no pawnbrokers, and the existing
law should be changed as requested
in order to permit the pawnbroking
business to be done here.
The absence of paw nbrokerS has
placed an undue burden on the police
department and greatly hampefed its
efforts to recover stolen goods. which
usually. finds it's way to the pawn
shops. The annual reports of the
chief of police bear repeated witness
to this fact. as we'll as to the impos
sibility of securing convictions in the
clandestine transactions referred to
above"
The Commissioners state in theil
andria and at South End, Va, while
not obliged to do so. have been ac.
commodating to the police by render.
ing assistance IN the recovery OF
stolen property. The work is done
at a great disadvantage as compared
with what would be involved if there
were pawnbrokers in Washington un.
der the supervision of the Commits
sioners, the report continues.
After reciting at length the history
of events since the passage of the Law
in 1918 fixing the monthly interes
rate for pawnbrokers at l per cent
they say:
"The commissioners have recitec
the facts in regard to the exisIins
law in order to make 1t clear that fht
law is not only good law. excep'
for the rate. but it has been so but.
tressed and strengthened by mas.
of Important litigation that there i!
no doubt about its meaning
Make Tinkham Bill Changes.
The Commissioners express the be
lief that it would be a decided mis-
take to repeal the existing ,aw, ex
cept to make the changes provided