Evening star., 1952-03-18
Loan Companies
Face Jury Probe
In Montgomery
Judge Woodward
Coils for Study Of
High interest Rates

High interest Rates
The Montgomery County grand
jury is expected to investigate ac-
tivities of small loan companies
operating in the county after
Chief Judge Charles w. Wood,
ward bitterly attacked the firms
yesterday in his charge to the
Jurors.
Judge Woodward called for q
thorough investigation" of activ-
tiles Of the loan companies, some
of which he believes are violating
the law.
The Judge told the jurors he
meant the companies that lend
Iup to $500 at 8 per cent interest
Ia month which. he said. makes
SO per cent year"
Farm Worker Sued.
Judge Woodward's blast at the
loan companies stemmed from q
case heard last week in which q
Chevy Chase loan company had
sued a farmland for collection Of
a defaulted loan.
The defendant in the suit was
Robert j. Barnes. a worker on a
Brookeville (Md.) farm. One Of
the witnesses scheduled to appear
before the grand jury is Harold
Barnes, q brother Of Robert. ac-
lcording to court aides. i
In the suit, A Regional Finance
Co. Of $500 Wisconsin avenue, said
Mr.. Barnes borrowed $3.50 on De-
cember Is, 1850. and agreed to pay
Is monthly payments of $23.45.
which would amount to $351.75.
Judge Cites Interest.
When MIR. Barnes defaulted. the
suit said. he owed the company
l$253.49 plus interest at 3 per cent
q month from March 20. 1851.
During hearings on the suit.
Judge Woodward remarked from
1.-THE bench that the company ap-
|peared to be charging compound
Interest and he thought the mat
tier should be presented to the
grand jury. Soon after this re-
mark was made, the company
dismissed its suit with prejudice"
land a Judgment for the defendant
Iplus costs was rendered by the
court.
!; Judge Woodward yesterday told
the grand jury the interest
charged was an 'unconscionable
lamount."
}, when people get down on their
luck and get in the clutches Of
lthem-whom I consider nothing
, but blood-suckerS- have q
, hard time ever escaping them" !"
Banker Is Foreman.
Judge Woodward noted that
Fred L. Lutes, president of the
4 Suburban Trust Co.. was foreman
of the grand jury. He said it was
a mere coincidence" since the
case had come to his attention
after Mr.. Lutes already had been
e named.
The grand Jury. comprising 10
Y y|other men and three women, ID
: Expected to sit through Thursday.
: Other members Of the grand
!. Jury are George r. Candy, Forest
: N. Haney, Albert b. Easter, Alex
lander S. Burns, Alba Thompson,
JesSamine w. Dawson, William r,
Ward, William E. Thompson,
Carlton G. Hardy. Jess H. Cor
nor, Leroy B. Sherman, Martin
T. Mathwig, Charles w. Norris,
/, Martha Louise Chapman, John
]. Geary. Francis Snowden, Luz
] dele H. Andrews, Max r. Beck,
L. Jerome Offutt. Wilbur H.
Youngman, John r. Schwartz
beck, jr.. and William C. Appleby.
! Two Staying Cases.
In addition to q number of
? housebreaking. burglary and lar
1 ceny cases the grand jury is ex-
Y pecteQ 10 CONSIDER murder charges
brought by police against two
{ county residents.
i Mrs. Dorothy Gaskin Kornar.
) ems. "a. Of 401 Leighton avenue.
!, Silver Spring, is charged with
, murder in the death Of her hus-
band. John Henry (Mr. Jack)
|. Kornarens. He died at Garfield
Hospital March 3 as a result Of
{ q gunshot wound inflicted by Mrs.
t Kornarens. February II. police
lSaid.
Clarence Van Mort, SO, Of 6513
| Seven Locks road. Cabin John.
also is awaiting grand jury action
In the fatal shooting last Christ
mas eve Of his brother, william
. Van Mort, AZ, of the same address.