The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-26
SENATE VOTE
NEAR ON LOAN
RATE SLASH
Bill Cuts Interest From
az to "a Per Cent
Annually.
BITTER FIGHT is WAGED
VincenneS Speaker LaSheS
Present System as
'Legalized USury.'

senate Wednesday afternoon, the
bill cutting the interest rate on pet
ty loans from ~ to "a per cent a
year, is expected to be up for final
passage Friday.
Effort to kill the bill, or increase
the interest rate to 212 per cent
month, failed. AS originally intro
duced, the measure would reduce
the rate from S12 per cent, now
legal, to IL per cent monthly. This
was increased to 2 per cent by
amendment on second reading.
1t was at this point that the fight
took place.
Senator William P. Dennigan
(Dem., Vincennes), author of the
bill, led the charge against oppos-
ing forces. In the most lengthy
speech of the session, thus far, he
outlined the history of the small
loan business and termed ,he 31a
per cent monthly interest charge
"legalized usury."
Moves to Kill
Move to kill the bill came from
Senator Fred A. Egan Dem, Gary.
He declared that the small loan
business will be taken care of
through the administration banking
bill, now pending in the house.
This contention was asSailed by
Senator Jesse E. Wade Dem., Mt.
Vermont.
Il have read the entire 1872 pages
of the administration banking bill
and there isn't a thing in it that
toucvhes this matter of the big in
terest rates on petty loans," Wade
asserted.
ut is time for the sensible man to
put his foot down on these leecheS
and bloodsuckers. Our job here is
to prevent them from bleeding the
workingman and farmer, who now
must go to them when in dire dis
tress.
Hits at Pressure
Nothing that this session will do
is more significant than the action
taken on this bill. A similar meas
ure passed the senate two years ago,
but was defeated in the house. /
personally know something of the
| pressure from financial institutions
which brought about that defeat
Egan's move to postpone the bill
indefinitely was tabled, whereupon
Senator Walter E. Chambers Dem.,
NewcaStle) sought to increase the
rate to 21a per cent. He was Sec
onded by Senator Jacob Weiss
| Dem., IndianapoliS).
There are some fair and reason
able men in the petty loan business
and they declare that 212 per cent
can Junction. Chambers declared
mo regular bank loans are being
made now and the petty loan has
proved advantageous to many per-
sons"
Kept At 2 Per Cent
Senators opposing the increase
cited the Frazier bill in congress,
setting rates on loans to farmers at
IL per cent. The rate was kept at
2 per cent as amended by Senator
I. Floyd Carrot Rep, Battle
Ground.
County and township consolida-
ton bills sponsored by Senator L.
L. Shull rep, Sharpsville), will be
subjected to scrutiny today by Sena-
tors Leo x. Smith and John Bright
Webb, indianapolis Democrats.
Smith said the Marion county
senators were not opposed to con-
solidation of political units, but are
not satisfied with the Shull meas
ure.
I'VE lear there is more to the
Shull bill than meets the eye of the
casual reader" Smith said Its
provisions are arranged awkwardly
and too many existing laws are re-
pealed without making proper sub
stitutions. Marion county senators
will have important amendments to
offer today when the bill comes up"
Another attempt to modify the
teacher tenure repeal bill is eX-
pected today. b. hen Chambers pre-
sents a compromise amendment
exempting larger cities, or else max
ing retention of tenure optional
Senator Henry F. Schricker Dem,
Knox, author of the repeal bill, said
today he would oppose all attempts
to exempt any city, town, or town
ship, but that an amendment to
make tenure optional might be a
common sense solution
Il reserve the right to express
myself concerning Chambers
amendments after these amend
ments are offered" Schricker said.
But in general, an optional amend
ment might be acceptable"