New Britain herald., 1926-10-29
ALLING CHAMPIONS
 HIGH INTEREST LAW
Declares AZ Per Cent Annually
 Is Not EXOrbitant
The statement by Attorney S.

Ine statement Dy Attorney S. Gerard Casale, democrat, at a noon day rally yesterday at Landers, Frary & Clark's factory gate. that the republican party sponsored the enactment of the law which per- mits so-called 'loan sharks" to ex- act AZ per cent interest on small loans. drew reply today from Judge Benjamin w. filling, repub- lican nominee for attorney general, who contends that there is ample justification for the law and its eff feet has been to protect that portion of the public which finds it neces- sary to borrow money from com- panies whose operations are regulat- ed by the law, from being victims of interest charges of considerably higher rates.
 T was surprised to read Attorney Casales reference to this law, and l believe that if he was familiar with the history of the legislation and the conditions existing in Con- necticut, and right here in New Britain prior to it's enactment, he would not have touched on it." Judge filling said in an interview.
 The late Senator George w., Klett, law partner for many years of Judge filling, was one of the prime movers for enactment of the law in 1919. It had come to MT. Klett's attention that companies were operating about the state un- der direction of man in Washing ton, and were eXacting exorbitant interest charges from persons who were at their mercy. Senator Klett went to Washington and Philadel- phia at his own expense and ob- tained proof of the need for legis- lative action to curb these con- panies. Judge filling said, and after 3. hard fought battle in the legisla- lure, the law was passed. During the debate it was claimed that the monthly charge Of 312 per cent, which amounts to 42 per cent per wear. vas not exorbitant, in view of the heavy operating expenses oi the loan companies and the risks they were required to take because the bulk of the security they were able to obtain on loans consisted of household furniture, jewelry and the like. and assignments of working mems wages. It was proven, Judge Alling states, that many loans were never collected because men Wno as' signed their wages frequently Jeff their employment and had no wager to be assigned after making te" uaynents, and where furniture ahc similar security was called in, the loan companies were unable to dls' pose of it to advantage.
 It developed, also, Judge Alling said, that some companies Woulc cease operations in Connecticut Il the legal interest charges were low, cred and the condition that woulc nrobably follow would be closely akin 10 bootegging in liquor. Fly bv-nieht companies might come into city and exact whatever interes rates they could collect, he said. Al such phases of the matter were gone into very thoroughly before the law was passed, he claimed.
 In the 1923 session of the legisla' fure. a law was enacted placing al loan companies in the state undel direct supervision of the state banf commissioner, who has power lc revoke their licenses, dictate the methods of accounting to be uset and in every other way keep then under surveillance. In the interim between the 1923 and 1925 sessions of the legislature, Judge Alllng m ouircd from Commissioner Byrnt whetrer or not the 3lh per cen monthly charge was eXorbltant ant the reply was that the period or hl' supervision was not then sufficient Iy long to permit of fair appraisal o' the charge. Mir. Byrne said, however that when the 1927 legislature con yenes. he will be q position to stat' the results of his supervision, ana according to Judge Alling, it is very probable that the law will be re- yised, Whether the legal interes charge will be lowered or increas' ed cannot be foreseen at this time
 T believe that the law is goot one" Judge filling said, "because Il affords protection to those who arc obliged to borrow money from loan ing companies. Naturally, If per son has good security or IS in position to obtain responsible en- dorsers, 1t is not necessary for nm to deal with loaning companies, but for those who must mortgage then furniture and personal belongings supervised companies are @ neces'