The Birmingham age-herald., 1923-08-07
LENDERS ID FIGHT ME EASURE LIMITING NTEREST CHARGES
Bills Would Fix Rate At 3 1-2 Per Cent Per Month And
 Regulate Assignments
STATE CAPITAL BUREAU l
 THE AGE-HERALD

ti'ACi iil(SlOIl reached NOntROmery today that money enders wi gather here in large numbers this week to oppose the bills which are intended to prohibit the collection of great CT monthly rate of interest than three and one-haf per centum and to regulate the assignment of wages of industrial employees
 The Dill regulating the interest rate was introduced in the house of representatives by Henry Howze of Birmingham, and in the senate by Senator John Craft of Mobile. The Dill regulating the assignment of wages was introduced in the senate by Senator E. F. Hildreth of Greene.
 Industrial companies and labor combined in an effort to obtain favorable consideration of the legis- !ation by the legislature. William c. Taslor of Mobile is here in the inter- est of the organized railroad em- ployes, while Col. George w. Jones, district attorney of the Louisville and Nashville railroad today stated that railroads will have representa- tives before the committee who will appeal for favorable action.
 State License Required.
 The bill limiting the rate of in- terest provides that every person en- gagged in the business of lending money, with the exception of banks, trust companies, building and loan
 
 brokers, shall obtain a license from the state and shall pay an annual license of $100 that he shall make bond in the sum of Sl,000, which will protect those who may have causes of action against him and that in addition to the interest herein pr vided for (three and one-half per cent monthly), no further or other charge or amount whatsoever Tor any examination, service, brokerage, +, hnr- wise, shall be directly or indirectly charged, contracted for or received, except the lawful fees, if any, ac- tlally and necessarily paid out by the licensee to any public officer for filing or recording in any public of flee, any instrument securing the loan, which fees may be collected when the loan is made or any time thereafter"
 Under the bill regulating the as signment of wages, no person would be permitted to make an assignment of wages earned or to be earned eX- cept for funds with which to pur- chase groceries, medicine, insurance, medical attendance and house rent. No assignment will be valid until 1t has been presented and approved by the assignor's employer.
 O O O.
 Other Assignments Invalid.
 Any assignment made for any pur- pose OLneE lndU lllOSt iilOAIAOitSA N~~ the bill and made without the ap- proval of the employer would be in- valid and unenforcible.
 The two bills are intended to pro- tect industrial workers against so- called loan sharks who are operat- ing ill the industrial centers. The charge has been made that many money lenders are now collecting interest as high as 20 per cent months on small loans which they nave made to industrial workers.
 "One who has not worked With railroad employees or persons h eHi5 ployed by other industries and who has not seen how working meg are now forced to part with thelG money in usurious interest knows what It means" said Mir. Taylor today in dis cussing the bills. Many men who have no means except their daily earnings are now paying out great part of their earnings as interest to persons from whom they nave op- tained small loans. The rates or ln- terest now range from ID to zo per cent a month, The legal rate in Ala bama now is per cent annually, yet thousands of railroad workers are paving more than twice that amount in monthly interest.
 ''The burden is being carried by persons who are least able to afford 1t. It may be all right for person
 
 greater than per cent. No one need complain against those who are able to do it, but it seems the public should take hand in a matter which is affecting so seriously the indus trial workers of the state.
 Favors Two Per Cent.
 1T believe the bill regulating inter est charges should be amended so as 10 make the maximum monthly rate ? per cent intsead of S1a per cent At 3@ per cent monthly, per sons who borrow S50 and are forced to carry the loan year will pay out in interest s21 during the year. At per cent, the interest for one year would be SIP, lacking only 50 cents of being one-quarter of the princi- pal"
 MT. Jones said the railroads of Ala bama also are urging the passage of the bill limiting the interest rate and regulating the assignment or wages.
 .Employes of railroads have been constantly harassed by money lend CTS, and each month assignments of wages are presented against the wages of railroad men," said Mir. Jones. There should be laws which would provide better protection for men who have not funds and who are forced to obtain money with which to obtain necessities Of life.
  the approval of assignments of wages by employers and would pro hibit the assignment of wages except for the necessary things of life, great protection would be afforded the la boring man and his family" Senator Hildreth's bill regulating the assignment of wages follows:
 O O O Assignment Regulation Bill.
 Section 1. That all assignments hV person Of salaries, or wages to be earned in the future, shall be absolutely -vold. The provisions of this act shall also ap- ply to orders given by employees cov- ering the whole or par of future wages. Sec 2. Nothing in this act shall affect the validity of assignment of wages to be earned within 30 days from the date of such assignment when given for a sum certain to se- cure payments for groceries, medi- cine, insurance, medical atSndance or house rent, the indebtedness for which arose contemporaneously with the execution of the assignment, and when the execution of such assign ment is attested and proven by two witnesses who are not of kin to the assignee, and who are not in any way interested in the transaction either directly or indirectly, and who are not at the time In the employ ment of, or associated with, the as- signee or those claiming under him.
 "Sec. 8. Any employer who pays money to any person upon an assign ment invalid under the provisions of this act shall be held responsible to the assignor for the amount of wages paid thereon, and no employer shall withhold any employees wages upon notice of any assignment until and unless the original of such assign | ment is presented by the assignee or his agents for inspection to the