Evening star., 1935-09-21
INITIAL COMPLAINT
IN DRIVE ON SMALL
|LOAN MEN IS FILED
Charge of More Than 8 Per
Cent Yearly Without Per-
NIT Claimed.
CAMPAIGN IS BASED
ON LAW LONG ON BOOKS
Defendants Lawyer Says He Is
Anxious for Trial-Bond
of $500 Posted.

Corporation Counsel E. Barrett
Prettyman today launched his threat
ened drive against alleged violatOrs Of
the loan shark" act with the filing
Of formal charges against Jacob
Rubin, who operates the United
Finance Co, 943 New York avenue.
An information accusing Rubin of
charging more than per cent a
year interest on two loans without
first obtaining a license was issued
by Assistant Corporation Counsel Ed
ward M. Curran, who has been desig-
mated by Prettyman to conduct the
drive
Upon being notified Of the charge.
Rubin went to police headquarters
with his attorney, JEFF Lichtenberg,
and surrendered. He was released
after posting $500 bond for his ap-
pearance at a hearing in Police Court
Monday.
Lawyer Sees Case as Test.
Lichtenberg said his client regarded
this as a test case and was anxious
to have it tried.
If our business is not legal" he
said, I'VE will close our doors. II
legal we want to continue" He as
serted Rubin's business was that of
a broker-that he placed loans in
stead of making them himself. No
warrant was issued.
In the first case, Rubin allegedly
made a SIS loan September IA to Miss
Gladys Pantaze, 308 Second street
southeast, for which she agreed to
repay total of S1O3 in six months.
S216 for S15O Loan.
The complainant in the other case
was Raymond Wise, 127 Eleventh
street northeast, who said he was
loaned $3.50 by Rubin last April
after agreeing to repay s2l6 in a year.
Any person in the District, it was
explained, may make loans without
a license providing not more than 6
per cent a year interest is charged.
The small loans act Of 1918, however,
requires the lender to pay a license
fee Of $500 for charging more than 6
per cent, but not more than / per
cent month interest.
The law had not been enforced for
years and at the last session of Con-
gress Prettyman drafted and had in
troduced new legislation which would
have permitted the charging of 2 per
cent month on the balance of loans,
this charge to include all "procurers'
fees" 1t was explained some loan
houses had evaded the old law by
refusing to make loans at excessive
interest rates, sending clients to a
third party, known as procurer, who
then arranged" the loan between the
original parties and charged a fee for
the service. If the procurer was work.
ing for the loan house, officials said,
this procedure enabled the latter to
collect excessive interest without di-
rectly violating the law.
Old Law Enforced.
The new bill was not passed, how
ever, ana Prettyman then announced
the old law would be enforced rigidly
after September IS. From that date,
he asserted, any one charging more
than per cent without obtaining
license would be prosecuted by his
Office. Particular attention, he said,
would be paid firms which not only
failed to obtain license, but charged
more than / per cent a month.
The maximum penalty upon con-
viction of violating the law is a fine
of 5000 and Imprisonment for 80 days.
Detective Sergt. John A. Patton has
been designated to assist Curran in
preparing cases for prosecution.