Evening star. [volume] (Washington, D.C.) 1854-1972, 1944-04-08

MO., WIZ lCCcIlGly CClCUldOco
their 50th wedding anniver-
sary. Mr.. and Mrs. Barr have
8 children, 10 grandchildren
and 3 great-grandchildren.
thanksgiving Photo.
Henderson Is Held
Partly 10 Blame for
Small Loan Racket
BY the Associated Press
Criticizing what he termed Ma
tion-wide small loan racket" Rep
Preventative Sheppard, Democrat, of
California today named former
Price Administrator Leon Hender-
son and Rolf Nugent, former
director of the OPA credit policy
Office, among others he said were
solely responsible" for conditions
which led up to it.
The Californian charged in the
Congressional Record that Mr.. Hen
derson and Mr.. Nugent, both direc-
tors of the remedial loan division
of the Russell Sage Foundation, and
Frank Hubachek of the law firm
Hubachek & Kelly, we're 'purport-
edly" authors of the executive order
ivesting in the Federal Reserve Board
regulation of small loans.
He said he would reintroduce a
resolution for a congressional in
vestigation of the small loan bust
ness. A former similar resolution
was not acted on by the House Rules
Committee.
Wants Ceiling on Loans.
Mr.. Sheppard also asked why the
OPA had neglected to consider plac-
| ing ceiling prices on small loans and
charged that the Russell Sage Foun-
dalton and lenders operating under
the Small Loan Act it sponsored
were waging a sham battle" in the
fight to correct usurious practices
in the lending field.
When questioned by a reporter
as to what he meant by ceilings
on small loans, Mr.. Sheppard ex-
planned that he was referring to
interest on small loans.
In this sham battle and plan of
deception of the American people
and their notional State govern
ments," he continued, this crowd
have duped many members of Com
gress. Governors of many States,
State Legislatures, the American Bar
Association, the Better Business Bu-
reau, the Legal Aid Society, some of
the Nations outstanding colleges
and universities, national labor
groups and many other outstanding
people and organizations, including
large segment of the publications.
1 Lists Those Responsible"
THE only persons that can ex-
plain the condition and the facts
that have led up to it (small loan
lconditions) are those that are solely
responsible for them," Mr.. Sheppard
continued.
These persons are Leon Hender-
son, Rolf Nugent, Frank Hubachek,
OF the law firm of Hubachek & Kelly.
lattorneys for the Household Finance
Co.; Byrd Henderson, president of
the Household Finance Co.; Charles
Watts, president of the Beneficial
Industrial Loan Co. of Newark, N.
j.; Jackson r. Collins, attorney for
the beneficial, and Edmond Rufdn
Beckwith, former attorney for the
beneficial of New York =; P. B.
Leverich, Western director of the
Beneficial, located in Los Angeles
l.. ]. Styskal, attorney for the
Household Finance Co. x; Rufus
Dewitt King, Miami, Fla; John M.
Ogden, Miami; Jerry H. Taylor, At
lanta - Fred Snite and Thomas
Griffin of the Local Loan Co. of
Chicago; Mr.. Lichtenstein of the
Loan Co. of st. Louis ="
Hits Lack of Action.
Specifically Mr.. Sheppard main
tanned Mr.. Henderson, Mr.. Nugent
and the Federal Reserve Board had
knowledge of a Nation wide small
business conducted by Mr.. King
Mr.. Ogden and Mr.. Taylor partly on
a $40 per cent interest return basis,
but that mo action nor explanation
from either or any of them, nor
from the Russell Sage Foundation, -
had been forthcoming.
At a meeting in the Waldorf
Astoria Hotel in New York, Mr.
King and others associated with the
small loan business divided States
between them like pawns," Mr.
Sheppard stated, and agreed ito let
each other alone in certain given
territories and to manipulate bor-
roWers into certain individual loan
balance averages in certain local
tiles"
Furthermore, he continued, at an
other such meeting a 100000 kitty
was made up for use in influencing
passage of national tax legislation
which put the national chain loar
companies under the business man
Iagement tax exemption laws.
Cites Bribery Case.
Congress should find out and the
; people should know who received the
100000 and what was done with
it," Mr. Sheppard declared
He recalled that recently an EN-.
ploye Of the Beneficial industrial
Loan Co admitted to a judge il
Lansing, Mich, that he had "bribec
Legislators and had received none,
from the company to do SO.
Right under the nose of tn
Federal secret grand jury investi
cation in San Antonio, Beneficial
Household and King have their anti
uSury societies with their high
sounding names which are made VI
of representative lawyers of tn
State of Texas" said the Cali
lfornian.
Alleges "Fel0nious" Acts.
Mr., King, he added had "severa
million dollars out in small loans t
needy borrowers at 24O per cent in
tPreSt annually in TaYac