Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-03-03
PRETTYMAN LOAN
BILL WINS BACKING
Citizens Federation Urges
Passage of New Law
for District.

Enactment Of new small loan bill
for the District, substantially in the
form Of the proposal drafted by Cor
poration Counsel Prettyman. now be-
fore Congress, was urged last night by
the Federation of Citizens Associa-
lions.
The action was taken after a two
hour acrimonious debate in approving
q substitute motion by James G.
Yaden. federation president, who re-
tired from the chair to debate the
issue. The vote was 80 to "a. The
majority report of the Laws and Leg
iSlation Committee, submitted by w.
j. Neale, was rejected, the Yaden mo-
ton being a substitute for a minority
report by George E. Sullivan, which
substantially approved the Prettyman
bill.
Favors Interest Change.
The federation favored legislation
to change the present legal interest
rate on small loans from to 2 per
cent per month on the unpaid bal
ance and allow, In addition, certain
specified charges and fees for investi-
cation and other administration, the
total not to exceed So The fedora
ton urged that the Prettyman bill
be amended to strike out a clause
which would authorize the superin-
tendent of insurance of the District,
at mis- discretion, to lower the inter-
est rate to per cent per month on
the unpaid balance, or to raise it to
as much as per cent per month en-
the unpaid balance.
Both sides in the federation debate
declared that under the present law
loan sharks are reaping a harvest"
at the expense of the unfortunate
persons who are forced to seek small
loans, which they cannot afford to OBJ
tain from banks, which charge 6 per
cent per year. Sullivan, in opposing
the majority report, attacked the Rus
sell Sage Foundation as an organiza-
ton which is maintaining 1.-THE most
persistent lobby ever yet known" in
favor of a type of small loan legisla-
ton favored by the majority commit
tee report.
4VAAuotAOh OHPPoA
This matter, he said, has been be-
fore Congress for a number of years
and Congress hasn't yet been willing
to swallow the foundation"
Immediately Neale and other sup
porters of the Sage Foundation type
of bill came to the support of that
institution as one interested only In
tho yryaIfaro of the Dllblic
Neale favored a bill permitting small
loan operators to charge from 212 to
3ls per cent per month on the unpaid
balance and would require that COM
panies doing such business have liquid
assets of not less than $4,000 and
require annual inspection OF their
books.
Henry A. Donovan precipitated YER
bal fireworks by declaring 312 per cent
per month on the unpaid balance
really means a return to the company
Of AZ per cent per year. if the COM
pany can keep its loan funds loaned.
Neale argued the rate was justified be-
cause Of the great risk run by those
engaged in the small loan business.
He said they had to make or 9 per
cent per year to make small loan
business profitable.
Fees for "Procurors."
Supporters of the Prettyman bill,
amended as proposed by Yaden, en-
phasized that one of its important
features Is that the "procurorS" OF
loans would be brought into the pic
ture by allowing them specified but
restricted fees.
Will P. Kennedy, a newly elected
delegate from the North Capitol
Citizens Association, was presented to
the federation at the opening of the
session and President Yaden assigned
him to serve on the Committee on
National Representation.
The federation adopted q resolu-
tion expressing regret over the death
of Henry K. Bush-Brown, who fer
many years was a delegate from the
Arts Club.
Prayer to Open Meetings.
All meetings of the federation here
after will be opened with prayer. under
the terms of resolution adopted by
the body and presented by Jesse C.
Suter. The invocations will be by
clergymen Of different faiths, Jewish
and Gentle, Catholic and Protestant.
In the same resolution the federation
hope for success Of the
newly formed Committee on the Reli-
gious Life in the Nations Capital.
A special adjourned meeting of the
L. - C-L
night to take action on the proposed
bill to create commission on mental
health, to handle lunacy cases.