The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-29
SENATE VOTES
TO END LOAN
SHARK GOUGE
Bill to Slash AZ Per Cent
Rate to 18 Goes Over
by q to 20.
CALLED STATE SHAME
Measure to Reduce Share
of Highway Board Funds
Also Approved.

Loan sharks, target of bitter crit
isim in Indiana in recent years, to-
day were dealt lethal blow in the
senate, when legislators voted to
reduce the present AZ per cent an
nual interest rate to 18 per cent.
The vote of % to 20 which car
ried the interest rate cut, was in
the face of the efforts of senator's,
charged with being stockholders in
petty loan companies, to retain the
present excessive figure.
Disregarding the club of road
building patronage waved by the
state highway commission, and
pressure of material interests, the
senate, under suspenion Of rules
also passed the bills for diverting
auto license and gasoline tax funds
from the highway commission to
local governmental units. The funds
total $24,Ooo,o00
Loan Groupus Assailed
Attack on the loan sharks was
made by five senators, who labeled
the 40 per cent annual rate of 312
per cent monthly charge, "the most
ubiquitous on the statute books"
When the bill came up for con-
sideration it reduced the monthly
rate to 2 per cent. Senator Russell
Kehoe (Dem), Jacksonville, i'm
mediately moved death of it by in
definite postponement, on the
grounds that the special session
was called for tax relief and loan
shark legislation was not germane.
Relief of the poor is an impor-
tant matter for this chamber, and
can be considered at any and all
times" asserted Senator William B.
Hoadley (Rep), Bloomington,
co-author.
THE poor people of Indiana who
fall into the clutches of the loan
shark should be accorded relief at
all times" declared Senator John
Niolack (Rep), Indianapolis.
Senator Walter S. Chambers of
Newcastle, Democratic floor leader,
attacked activities : of the loan
sharks.
Usury Is Attacked
Indiana is one of the few states
that permits this type of business
to collect the usurious rate of 81
per cent a month. AS long as this
statute remains on the books We
can not join the ranks of the pro-
gressive states which have low; rea-
sonable rates." he said.
Three and one-half per cent
month is obbery-nothing less than
robbery. 1t would be fine thing
if they we're put out of business
altogether. Their method of con-
Quoting business is Ubiquitous. II
knew a stronger word to describe it
l would use it,
THE statute giving them such a
high rate is disgrace to the state"
agreed Senator William P. Denni-
gan Dem }, Vincennes, another CO.
author.
People who borrow from loan
sharks are in need of protection
and it is up to us to give it to
them"
Highway Board Jared
When the vote on indefinite post
ponement was called, Hoadley
moved to excuse those members
from voting who own stock in petty
loan companies"
To the amazement of highway
department officials and material
interest lobbyists the license fee
diversion bill passed by 80 to 6
vote and the gas tax bill by SO
to vote. Both measures have
been passed by the house and await
executive action.
The senate met as a commit
tee of the whole, to consider the two
bills, and after Niblack failed in his
attempt to amend them by forbid
ding use of the money for construc-
ton, reported the bills for passage.
Proponents of the measure de-
clare if Leslie vetoes the bills, at
the request of the highway COM
mission, they have sufficient votes
to pass them over his opposition.
Fund Is Divided
Under the present law the COM
mission gets all the license money
and Of the 4 cents gas tax.
The McKeSson license fee bill
provides so per cent of this fund be
divided among cities, counties and
towns. Of this proportion, four
fifths goes to the counties and one
fifth to the cities and towns.
Seven-eighths of the money going
to the counties will be distributed
on the basis of road mileage ano
one-eighth on population.
Entire portion going to cities anc
towns will be distributed on the
basis of population. and in Marion
county special provision has beer
added to divide the county's share
equally between Indianapolis ane
the county.
The same means of division is
provided in the gas tax diversion
bill, which gives the highway de-
partment only cents instead of the
present cents.