Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-08-05
DISTRICT
PoMnbrokers Due Back
After 4O-Yeor Absence

brokers and finance companies out
Of the District. Now, the finance
companies cluster along the border
Of the District in Virginia and
Maryland. which permit higher in
terest rates on small loans.
Along with the pawnbroker bill.
an effort was made during the last
session Of Congress to bring them
back and give the city the benefit
Of their license fees. as well as of
all the taxes they and their en-
ployes would have to pay.
Such a combined bill was passed
by the House, but foundered in the
Senate on the opposition Of Mary
land and Virginia lawmakers pro-
tecting the business Of the finance
companies in their States.
Then, however. the pawnbroker
bill was cut loose from the small
loan proposal and managed to get
through both House and Senate to
the White House.
Passage Of the measure is a
tribute to the personal lobbying of
Jerry Livingston, who proclaims
himself as the only licensed pawn
broker in the District. He holds a
money lenders license under the
1918 act and says he operates his
pawn business with little or no
profit (under the Districts interest
rates. as a sideline to build busi-
ness in his, jewelry store at 1923
H street NV.
Mr.. Livingston has been working
hard to get a new law for the Dis
trict, contending 1t would attract
small loan businesses back into the
District, where they would pay taxes
and license fees. Also, he insisted,
they would provide a proper service
to needy borrowers who now have
to go to Maryland or Virginia to
get small loans.
The bill declares the District
Commissioners shall determine
and fix i. a maximum rate Of
interest which will induce
efficiently managed commercial
capital to be invested in such BUSH
ness in sufficient amounts to make
available adequate credit facilities
to individuals seeking such loans
at reasonable rates Of interest, and
which will afford thoSe engaged in
such business fair and reasonable
ratY1rT1 IIVOOp1 fha
Two Per Cent a Month
Until this is done, the bill would
allow pawnbrokers to charge 2 per
cent month on loans under 5000;
l per cent a month on loans be-
tween 5000 and $1,000, and 8 per
cent q year on loans over $1,000.
Or, instead of interest, they can
charge minimum fee of so cents.
Anyone who wants to go into the
business, though. will have to sub
NIT to considerable regulation by
the Commissioners, prove he has
cash capital of $4,000, put up a
$4,000 bond, persuade the Commits
sioners he is financially responsible
and get them to find that his lex
perience, character and general fit
ness" are such as to command the
confidence of the community and
to warrant the belief that the BUSH
ness Of the applicant will be oper-
ated honestly, fairly and efficiently"
and that permitting such applicant
to engage in such business will pro-
mote the convenience and advan-
tage Of the community"
Also, he must pay $500 license
fee the first year $3.50 for half a
year, and $3.50 year thereafter. In
addition, he must make daily re-
ports to the police on everything
he takes in. He cannot sell any
thing for a full year. Then, when
he sells. 1t must be through a
licensed auctioneer. Any extra
money-over the loan, interest and
costs-goes to the man who pawned
the property.
1t will be interesting to see how
high the Commissioners have to set
the interest rates to attract such
businessmen to the District.