Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-27
Stephens Prepares to Begin
Prosecutions Against rs
Lending Concerns.
REFUND OFFERS MADE
TO ESCAPE CHARGES
Some Companies Announce Inten-
tion of Going Out of Business.
Realty Loans Investigated.

With more than 200 apparently
clear-cut cases of usury ready to be-
pressed against % money.lending
companies in Washington. Corpora
tion Counsel Francis II. Stephens ex.
poets to begin wholesale prosecution
under the loan shark law before the
end Of this week.
In addition. Mr. Stephens has been
visited by a number of persons who
borrowed money on real estate on
terms which he believes clearly vio-
lated the statutes governing this par.
ticular kind of a transaction. They
are now being investigated and ar.
rests may be ordered.
Attorneys from two companies
which had been making small loans
on automobiles and similar security
which banks would not accept called
on Mr.. Stephens late last week and
asked him If he would agree not u
prosecute upon their promise to go
out Of business Immediately.
Offers to Refund Excess.
The manager of one Of these com
panies even went so far as TO promise
his books and refund all charges i'm
excess Of the legal per cent. Upon
the completion of this, he said. he
would quit the loan business perma-
nently. He pleaded that he could not
stand the ignominy of being hailed
into Police Court as a common usurer.
Mr.. Stephens informed his callers
that such an attitude would naturally
reflect in the favor of the money
lender before any court. Although he
could not promise that prosecutions
would be dropped altogether. he indi-
Gated that in such cases he would
not press for jail sentence. The
prosecutor said he would probably be
content to accept a nominal fine.
The second money lender to seek i'm
munfty by promising TO go out OF
business made no offer to refund ex-
cess charges, The corporation coun-
sci is determined that above all other
things he will fight to have persons
who were feeced OF large sums REIN
bursed, either by order Of the court.
law" or voluntarily by the financing
company.
Several Offers to Settle.
Lawyers from several companies
under surveillance visited me during
the past few days to ask upon what
basis we would settle this matter" Mr..
Mr. Stephens said. II told them that
there would be no basis upon which
we could overlook completely such
gross and repeated violations of our
laws. Punishment must fall where
punishment is due.
''I think II would be only common
justice, however. il we were more
lenient with those who try to repair
the wrong they have done and give us
ample reason to know that there will
be no repetitions. But this Office must
be satisfied that the refunds have been
made in every case. not just in a. few
to camoufiage the larger wrongs.
This law offers no loopholes. They
have attempted to hide their usurious
practices behind screen of charges
that are illegal in themselves. At the
very best, they are plain eyasions of
the law. The courts have held in
this instance very plainly that evasion
Is to be tolerated even less than out
right violations"
Evidence in 200 Cases.
Mr.. Stephens took from his files sew
eraI large and bulky envelopes. He
withdrew from them pile after pile of
papers. They were the cases. num-
Der1ng more Inan zUU, upon WHICH ne
will seek to convict the latest influx
of alleged loan sharks into Washing
ton. Each case is supported by docu-
mentary evidence.
1--WE will not go into court with
questionable cases." Mr.. Stephens
said. Through the publicity afforded
us by The Star we have been able to
pick and choose. We only took those
that seemed to us TO be clear-cut vio-
lations-proof of usury in its most
fragrant forms.
Stephens Predicts Convictions.
IT have no fear what Judge will
do with these cases. IL the defendants
elect to let the court decide their
fate. And IL they plead jury trial.
then all I can say is Heaven help
them. When any IL honest men hear
the evidence we are ready to produce,
/ should certainly hate to be standing
in the shoes of the accused money
lender.
1--WE do not need any more cases
now / shall wait only until the con-
gestion In the Police Courts has been
relieved, then / will push these prose
cutions through in quick order. We
will be ready and have the warrants
served before the end of the week. =