The Birmingham age-herald., 1923-08-27
LAWMAKERS ID BE TOLD HOWC0N STATUTE OPERATES
Results Under Interest Limi- tation Law In Seven States
 Are Enumerated
STATE CAPITAL BUREAU l
 THE AGE-HERALD !
Montgomery, Ala, Aug. %


 banking and insurance meets Iate Tuesday to give further consideration to the bill of Senator John Craft of Mobile, prohibiting the charging of a greater rate of interest than 8 E per cent monthly on loans of $500 and less, 1t will have before it telegrams q from large number of states show ing that the law has been successful and that the loan shark evil" has been practically eliminated through the enactment of the legislation,
 Senator Leon G. Brooks already has received telegrams from seven states where the interest limitation law has been enacted. He made them public today and stated that they will . be submitted to the committee oil banking and insurance for Its con- sideration. w
 Persons engaged in the business of lending money in small amounts are opposing the bill, contendinE that they will be unable to operate on an interest rate limited to 21s per cent month. They have retained attor- neys and other representatives, who have been at the capitol since the bin was introduced in tho senate by Senator Craft and in the house by Representative Henry HoWze of Jef- A fersQn. However, they have not ap- peared before the committees. When Athe bill was taken up by the senate
 
 it's enactment made arguments, but those opposing 1t did not present any 1 information. g &t
 Prononsnts of the bin contend that some money lenders ara now charg- P iTig~ a much as 240 per cent interest a year. The Craft bill would limit the rate to 42 per cent a year.
 How Law Works Elsewhere.
 The telegrams received by Senator Brooks stating that the Interest linn itation law had been successful fol- tow: -
 eIlinois-- Uniform small loan law operatiue4in Illinois and has proven it's effectiveness in epracti2ally eltm- mating loan shark evils In this state. So far as we know, demand for small loaHs has been met by licensed lend CTS under the act and the experience of the department in dealing with them has been eeminently satisfactory. BeIieve such enactment oi great ad- vantage to small borrow ford Ireland, ptrector Trade and z Commerce."
 Indiana-"Uniform small loan law appears to be operating effectively with the. approval of both the loan companies and borrowers. There Is : practically no complaint.-E. Il. Vol colt. Bank Commissioners"
 Massa tts-'Rate here is per E cent per month Massachusetts law has fulfilled purpose intended and has practically eliminated loan shark evil.-FranS H. Pope, superintendent of loan agencies.
 Mainev-"We think small loan law % effective, also rate fair to DOT rower@ZGeorge c: AFernald, Deputy .s Bank Coinmissiener.
 Mich fasa44 Small loan law opera tive and effective in this state < Glare Retan, Deputy Attorney Gen Y leral.'
 F. New Jersey-''Uniform small loan < law operative in New Jersey. It has @ helped to curb loan shark evil.-Ed- ~ Ward MAN son c6Itffli issfoner of bank H ing and insurance" ~f
 #h PennsylVania-"Un small loan s{ law found very satisfactory in Penn- se syIvania for the borrower and lender. We consider the interest rate fair Proper supeFyison easily maintained under uniform law.-John w. Morrl- son and c. H. Orthl' e "A
 George w. Duncan, chairman of the committee on banking and insurance has indicated that he believes the ln- terest rate provided by the bill, 3h per cent a month, is too high and probably will offer an amendment reducing the ate to or per cent.
 ADJOURNMENT DELAYED
 With the majority of the house of representatives apparently deter mined not to hold more than three Z sessions each week, the beliet has become general in Montgomery that < the regular session of the legislature & Will not. be aconelHded shntll 9the week ' Of September 25eg ... s-.!s,t tf M A week ago there appeared to De a desire on the. part of the leaders { to conclude the session about Septem- z ber 15. This thought was given em- x Dhasis in the senate where major ity insisted on holding four sessions next week but the house declined 10 concur in the proposal of the sen- t ate and refused to meet again until T Tuesday afternoon. This means that 4 sessions will be held Tuesday, Wed ( nesday and Friday with another week end adjournment until Monday G or Tuesday.
 If only three sessions are held ! each week in the future the final A session will be about Thursday, Sep < tember 27. Two sessions probably will be held the last week, one be- ing Monday or Tuesday and the E other Thursday. It will be necessary I to have a recess of at least one day z between the Forty ninth and Fiftieth X Sessions so the clerical departments < may keep up with the activities Of [ inc two houses. A mass of detail work must be done by the clerical z workers before the gavels fan mark ] ing the end of the quadriennial ses- < sion. 1sH,t < Last Weeks Activities.
 < The session last week was fea- tured by the passage in the house og the port enabling act which will permit the seate to construct facili- ees at the seaport at Mobile with funds derived from a state bond is sue. Willie large number of other 6 measures received the approval of either the house or senate, the port 8bill attracted the greatest attention.
 The bill went to the senate com A mittee on seaports at once and hearing will be held during the early days Of this week. Proponents of the bill, which include Governor Brandons are hopeful that the meas ure will go on the senate calendar es passed and delivered to the execu- tive department early next week.
 Reports were started after the bill passed Hhes house that the senate commi ttse; was unfaHoTasble to the Y Sill asspassed and would propose radical amendments. Friends of the measure, however declared that little dissension is anticipated and that IL will be acceptable to the senate. Tax Bin Becomes Law,
 The most important bill which be- came q law last week provides ma chinery for the assessment and col- lection of taxes during the four years beginning october 1. This law will discontinue the system of tax adjueters and sall persons holding fices September 30 The tax asses sors will make the original assess ment of propertY for taxa ton. under the new system. Their findings will