Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-25
House Group |ndorse,
Measure for Draftee
Debt Moratorium
Choirmon May Expects
Measure to Be
Called Up Tomorrow
By HAROLD b. ROGERS.

mittee and is pending on the Senate
calendar. Both versions are similar
to the Soldiers and Sailors Civil
Relief Act of the first World War,
but important developments have
made necessary several vital i'm
provements in the legislation to
cover the present situation of all
men called to arms in any branch of
the various services.
Includes Guardsmen.
Not only would the protection
apply to draftees under the Selec-
tive Service Act, but it would also
cover National Guardsmen re-
servists called to active duty; and
volunteers.
Men in service facing financial
trouble In payment Of rents, taxes,
inStallmentS on homes, automobiles,
washing machines and other prop
erty would have recourse to the
courts to prevent sheriffs sales, re-
possession OF property by creditors,
and eviction from homes.
In the case of insurance premiums,
the men would have help from the
Veterns' Administration to prevent
lapse Of insurance policies.
But all of these benefits would
only delay the obligations to a fu-
ture date, when the draftee would
face the necessity of paying not
only the original principal of the
debt, but in most cases also, in
terest on his obligations.
Some objections have been raised
by financial interests against the
terms of both the Senate and House
Committee versions of the bill.
Charges have been made that al
ready the pending legislation has
had the effect of freezing credit
and affecting installment pur-
chases," because of the loss which
credit companies would take under
the system protecting the service
man. Efforts already have been
made by financial interests to put
some restrictions into the bill to
protect them from losses which they
claim they will suffer.
Some Protection Available.
Already draftees are under kind
Of protection by virtue of a 're-
enactment" Of the old Soldiers and
Sailors Civil Relief Act of 1918,
but the new bill would replace this
old law.
Suppose a drafted man cannot
pay the rent for his family at home
out Of his low income in the Army.
If the rent does not exceed $50
month, his family could not be
evicted except by action Of the court,
which could stay the eviction for,
at most, three months. This would
give the wife time to move to
cheaper quarters, or the court could
make any other order that may be
just" An allotment OF pay Of the
man in service might be made in
reasonable proportion" to help pay
the rent for his family at home.
Suppose young man bought an
automobile for about $1,000 before
he was drafted and paid only part
Of the installments, under a con-
tract. The company from which he
bought the car could not repossess
it without going into court, under
the bill as it stood early today. The
court would be given discretion to
order repayment of prior INSTALL
ments or deposits, or a part OF
them, as a condition of ending the
contract and >repossession of the
car. The court might stay the pro-
ceedings for repossession, thus de-
laying installment payments to
future date. Or the court would be
authorized to make such other
disposition of the case as may be
equitable to conserve the interests
Of all parties"
50 Per Cent Minimum Requested.
Objection to the pending bill has
been registered by Victor Brown,
president of Motors Acceptance Co.,
in the automobile financing busi-
ness. He claims the financing COM
panies will have to take a very
substantial loss" He asked the COM
mittee to provide in the bill that
court could not grant stay in pro-
ceedings to repossess an automobile
unless the buyer had paid at least
so per cent Of the purchase price.
Under the re-enacted old World
War civil relief bill and provision
in the Selective Service Act, there
is a provision which would apply
to installment buying Of automo-
biles and other articles to provide
for adjustment Of the case by "mu-
tual consent" This provision, how
ever, says the mutual agreement
should have been executed "in writ
ing subsequent to the making Of
such contract and during the period
of military service Of the person
concerned"
Under the pending bill, If
service man finds he is unable
to pay the next premium on
his life insurance, he may go to
the Veterns' Administration, which
will help protect him on all policies
aggregating $4,000 in value. The
Veterans Administration will give
| to his insurance company or COM
panies a certificate which will bear
interest, in place Of the mans cash
payment of his premiums. The
companies will strike a balance every
month, and keep themselves in
formed as to the account.
Pay Within One Year.
When a man gets out Of the serv-
Ice he will have the opportunity
within one year to pay the premiums