Evening star., 1922-03-19
MONEY-LENDERB|LL
OF FOCHT OPPOSED
DR.. George NJ. Kober Points
Out Many Faults
in Measure.

DR.. George NJ. Kober. a member OF
the citizens committee on remedial
loan law, has made a statement con-
corning legislation now pending in
the House for regulation of pawn
brokers. DR.. Kober was member
of the Presidents homes commission
in 1908, and as such made a report
to President Roosevelt calling at
tention to the extortions of money
lenders in the District. and recon-
mending a law for their suppression
DR.. Kober's statement follows:
In his statement in The Star yes
terday. MIR. Focht adds nothing tc
what he said on the floor on Monday
still operating here. There are none
in the District. All the Offices were
closed six years ago under the pres
cnt law. Mr.. Focht need have nc
further concern about them unless
this law is repealed.
,. The District has a paWnbrokers
law. with similar provisions to those
in his bill for the regulation of pawn
brokers and other money lenders.
Won't Loan for Per Cent.
3. The only reason why loans have
not been and are not being made now
under this law Is because the rate
in 1t was reduced from the 2 per cent
per month asked for to l per cent.
4. That the District Commissioners
urge the passage of their bill, H. R
5015, making the rate . per cent in the
present law because it would fully
meet the urgent need for such loans in
the District.
5. That the District Commissioners
disapprove of Mr.. Focht's bill. H. r.
6309:
(a) Because they object to the enact
ment of a new law instead of one
which has been sustained as to the
legality of its provisions, and has
proved satisfactory except as to the
rate allowed:
(b) Because higher rate than 9
per cent is unnecessary in the District
not needed in city as large as Wash
ington, as is proved by the fact that
the pawnbroking business was being
done here at 2 per cent when stopped
by the l per cent rate, although the
former law allowed per cent.
When Mr.. Focht again says that the
Chamber' of Commerce favors this bill
he is in error. On March II, 1921. by
a unanimous vote it indorsed the Com
missioners' bill-not his bill.
AS to the provisions from Pennsyl-
vania:
OpvO9SB aye AIm1ts
az No borrower has ever lost any
thing in the District for want of in.
surance by the pawnbroker against
fire and theft The requirement Is not
a bad one. but it is not necessary tc
enact new law to get it.
(2) Mr.. Focht's bill forbids loans tc
minors under sixteen. This is like
the county prison" and constable OIL
sheriff" wording in the original draft
of the bill, in indicating that Mr.
Focht is not familiar with the District
situation; for the regulations of the
Commissioners under the present law
forbid loans to persons under twenty
one. Mr.. Focht's bill would, there.
fore. permit an open season of five
years as compared with the present
law. and this could not be changed
without an act of Congress.
The regulations also forbid loan.
to a person who is intoxicated, but
Mr.. Focht's bill omits this. 1t sadl,
weakens the penalties. Its enactment
would be regarded by Mr.. Marshall
who knows the present law by ex.
perience in enforcing it, as 'unnec
essary, unwise and unfortunate"
An injustice was done the District
when the law was passed fixing the
rate which has been sending people
to Virginia ever since. Why not
remedy this now in the only sensible
way, by passing the Commissioners
bill making the rate what 1T ought te
have been in the first place, instead Of
proposing a new law with a ratio
which is unnecessarily high?
GEO. NJ. KOBER.