Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-05-24
CityHeads0K
Bill ATTRACT
Measure Submitted
To House Provides
Strict Regulations

Legislation designed to attract !
pawnbrokers back to Washing !
ton under strict regulation was I
handed to a House District Sub
committee today with the ap-
proval in principle by the Dis
trict Commissioners and their .
Citizens Advisory Council. |
The measure was offered by
Representative Kearns. Repub-
lican. of Pennsylvania. as an
amendment to a bill on small
loan business here.
Prepared by Assistant Corpo-
ration Counsel Chester H. Gray. !
the pawnbroker legislation was
incorporated as Section 2 in the
pending small loans bill.
Witnesses Back Bill
Several witnesses supported the
two-part measure during lengthy
hearings this morning before the
District subcommittee on public
utilities. insurance and banking.
Subcommittee Chairman Klein,
Democrat, of New York an
nounced that another public
hearing would be scheduled later
to hear from opponents of the
legislation.
Most small loan business on
the one hand and pawnbrokers
on the other had left Washing
ton under the strict provisions
of the District law of 1918, the
subcommittee was told by Mr..
Gray
The 1918 law, restricting in
terest rates to l per cent per
month for a loan not over 5000,
license fee of $500 and S.
900 bond. has resulted in the IL
censing here of only one pawn
broker, Mr.. Gray said.
This pawnbroker. Jerome Liv-
ingston, who said he advertises
as such, manages the loan de-
partment of his fathers jewelry
store, at 1923 H street NV. He
said he operates the pawnbrok-
erage and loan business under
the name of the Collateral Loan
Co. He told the subcommittee
he favored the pending bill for
both of it's titles for small loan
companies and pawnbrokers.
Police Official Testifies
Supporting the bill in general
were these witnesses: Deputy
Chief Edgar E. Scott of the
Washington Police Department.
Oliver Ellsworth Rue. a Wash
ington civic leader; J. A. Kam-
crow, president of the American
Business Association, and by let
ter, Soterios Nicholson, general
counsel of the Federation of
Businessmen Associations.
Hubert M. Rhodes of the Ma
tional Association of Credit
Unions, asked for the small loan
title of the bill to be amended
exempting credit unions from its
provisions.
The act of 1918, Mr.. Gray
told the subcommittee. has dis
couraged rather than attracted
to the District legitimate capital |
to be employed in this field. The
bill, he explained, provides for |
making loans of UP to $500 on |
security of written or printed |
evidence of Indebtedness but not |
as in the case of pawnbrokers.
on the pledge and surrender of |
personal property. such as dia-
moAds, watches and luggage.
Permits 80 Per Month
In contrast to the present re- !
striction by the 1913 law on in
terest, the new small loan title
of the bill would permit interest i
charges of 3 per cent per month /
on the first $3.50. 2 per cent on
the next $3.50 and l per cent on |
the next $500.
The pawnbroker section of the
bill stipulates that no pawn /
broker shall ask, demand or re-
ceive any greater rate of interest .
than 2 per cent per month or
fraction thereof. upon any loan /
not exceeding the sum Of 5000 /
or more than per cent per
month or fraction thereof upon
any loan exceeding 5000. and not /
exceeding $1,000; and 8 per cent !
per annum on any loan in excess
of $1,000"
The pawnbroker's title would |
establish a set of regulations and |
controls by city authorities.