Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-07
HEARING ON LOAN
MEASURE IS HELD
w. H. Baldwin Witness-Mr.
Dyer Explains Bill to Es-
tabIiSh PaWnbr0kerS.

William H. Baldwin, chairman of
the citizens committee on loan shark
legislation. which has been actively
Urging passage of certain laws to pre-
vent extortion in the District of CO.
lumbia since 1909. was the principal
witness today at hearing before a
subcommittee of the House District
committee. of which Representative
Focht Of Pennsylvania is chairman.
Representative l.. c. Dyer of Mis-
souri,. father of loan shark law
Congress. explained his bill, which
would raise the rate of interest so as
to permit pawnbrokers to resume
business in the District.
Others waiting to testify were
George 8. Wilson. secretary of the
c cna,, committee: Percival Mar
shali, assistant corporation counsel
for the District; Evan II. Tucker, a
member Of the citizens committee
ana president of the East Washing
ton Citizens Association; DIR. George
N. Kober, dean of the Georgetown
Medical School, and Mrs. Archiba Id
Hopkins. member of the citizens
committee.
Think 2 Per Cent Enouxh.
Mr.. Baldwin said he was glad that
Representative Dyer admitted that 2
per cent q month interest was about
right.
II we raise the rate in existing law
to per cent, think We will have all
the advantages that Representative
Dyer claims for his BILL" said Mr.
Baldwin.
He told the committee that he knew
OF particular case in which a man
had paid OF q small loan at a 400
per cent rate of interest. Mr.. Baldwin
laid before the committee a chrono-
logical history of loan shark legisla-
ton in the District with lists Of pawn
at the time the present law was
passed.
Explains Present Law.
In explaining the present law Rep
resentative Dyer said that it was
made necessary because the District
was infested with money sharks who
were "robbing' the government en-
ployes and charging as high as 700
per cent interest a year. He said his
of those crooks and thieves who were
then rampant"
Representative Dyer explained that
the pawnbrokers are not now doing
business because it is impossible to
do so at the rate of interest of only
/ per cent a month. His bill, he said.
would revive the old law but would
cut down on the high rate of interest
The police department. he said, is
anxious to have the pawnbrokers re-
sumo business under strict regula-
lions as an aid in locating and re-
covering stolen property. While the
pawnbrokers were in business he said,
the police reported 80 per cent recovery
Of stolen property. but now only about
~ &c
covered.
Provisions OF Measure.
1.-THE people of Washington do not
want the money sharks ever again
to have chnce to rob the people,"
said Representative Dyer. He pointed
out that his bill only makes such
changes as are urged by the police de-
partment. He would provide license
fee of $500 and two sufficient sureties
that the licensee will comply with the
law. His bill requires the keeping of
books with q complete record of every
transaction. which must be reported
daily to the police department 1t
forbids the sale of any pawned
article; within a year. except by writ
ten authority from the person to
whom the loan is made.
Representative Dyer told the COM
mittee that per cent a month is as
low as any state authorizes. He sug-
gested that not less than 2 per cent
should be allowed on small loans but
thought that 21a per cent would be
fairer allowance on loans up to $25.
On the suggestion of Representa- tive
Ben johnson. Representative Dyer
said the maximum amount for loans
by pawnbrokers should be set at $3.50
or $500.
Representative johnson picked out
three or four jokers in the wording
OF the bill which Representative
Dyer agreed should be corrected
Representative Focht.. who was in
charge Of the hearing. agreed that
there was necessity for pawn
hE4.kAxS 70 DO h2s.Sess Lara Aad thus
give tho people an opportunity to OBJ
tain small loans.