Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-11
D, c, SMALL LOAN
BILL SENT BACK
TO COMMITTEE
House Action Follows At
tack by Representa-
!. tive Jenckes.
REPORT THIS SESSION
NOW SEEN UNLIKELY
Prettyman, Answering Charges,
Says He Left Measure Until
Report Could Be Made.

A bill to regulate the small loans
business was referred back to the Ju-
dietary Subcommittee of the House
District Committee today as a result
of the attack on the measure by Rep
resentative Virginia Jenckes, Demo-
crat, of Indiana, who also charged
CORPORATION Counsel E. Barrett Pref
lyman with nonfeasance in Office for
his alleged failure to enforce the loan
shark law.
Indications are the bill will not be
reported out of the subcommittee
again at the present session of Con-
gress. If it is, Representative Hull,
Progressive, of Wisconsin has served
notice he would file a minority re-
port.
A companion bill has been on the
Senate calendar for some time, but 1t
has met opposition every time it was
called I'D under unanimous consent.
Mrs. Jenckes has filed copy of her
charges with the District Commits
sioners and at the same time called
attention to Commissioner Hazen's
connection with the Columbia Per-
rlanent Building Association.
THE Columbia Permanent Building
Association is considered one of
Washington's substantial institutions"
she said. However, it places this in
stitution and the Office of the Com
missioner of the District of Columbia
in an embarrassing position to spon-
sor legislation and permit the corpor-
alton counsel, Mr.. Prettyman, to lob
by for its passage"
Left Pending Report.
Prettyman, in Ocean City, Md, said:
II am the one who raised the ques-
ton as to the propriety of the present
practices, but took the responsibility
of leaving it, as it was for short
period, until report could be made
to Congress as to the effect Of the
present law and Congress could speak
on the subject"
Commissioner Hazen denied he had
any connection with the small loan
business.
81 fail to see the connection" he
said. 1.-THE building and loan asso-
citation makes loans only on first mort
cages, and, further, it is mutual
organization, and it is in no way af-
fected by the small loan bill"
Hazen said he offered to resign his
position with the association when he
was appointed Commissioner, but his
counselors all advised there was no
reason why he should do so.
Prettyman dictated the following
statement by telephone to his Office:
1.-THE present small loans law in
the District was enacted in February,
1913. In the % years since then only
one license for four months was ever
issued. None have been outstanding
for many years. The companies used
methods which the law does not
reach, according to an administrative
construction established over that
period. Last year when came into
Office, disagreed with that view and
disagree with it now.
Would Rout Companies.
my view Of the law, if sustained
by the courts, would drive all of the
companies out of the District of Co.
lumbia. I faced two difficulties, one,
to persuade the courts to upset con-
struction which had stood so long
snd, two, deliberately to drive our
unfortunate people, who must have
these loans, to patronize the 31s per
cent per month lenders just across
our lines in both Maryland and Vir-
ginia. My frank statement to that
effect is the statement to which Mrs.
Jenckes refers.
Gas to non reinforcement, the situa-
ton is as it has been for years, but
it Is unsatisfactory to me. I sought
counsel of Congress in a difficult
and, if I had it to do over,
would do SO again.
$50 far as I know there is no SINH
larity or connection whatever between
the building and loan associations and
small loan companies. They are to-
tally different businesses.