Newspapers / The Cooleemee Journal (Cooleemee, … / Aug. 19, 1965, edition 1 / Page 6
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- Piilna to, Km— Am n. MM PAGE 6 2nd Mortgage Abuses Til Be Curbed By Law sjate Senator J. Worth Gen try of King, representing the Ira District was one of the k» men in the recent leg islative battle to curb the ■bitisu of second mortgage I laKs. Sen. Gentry introduced one of Mm original bills that was eventually combined with two others and passed by the General Assembly. Hie following is Senator Gd^t try's account of the leg- Ma tive activity leading up toJthe final approval of the bil, plus background infor mation showing why such Information was needed: ty SEN. WORTH GENTRY One of the major accom plishments in the 1965 sess iod of the General Assembly wak the enactment of legis lation to curb second mort gage lenders. During the 1961 session of the legislature it became very evident there were being es tablished in the State of North Carolina a great num ber of so-called small loan agencies that went into the practice of loaning money to unfortunate people at an ex cessive rate of interest and charge. Previously, there has been no law against such practice. 1 was a member of the Senate Banking Committee that was composed of eleven persons. We made an extensive in vestigation and found a great need for legislation to curb such vicious practices. We discovered that people in the low income bracket were borrowing money to re finance previous loans on merchandise and only giving as security their signatures household furniture and auto mobiles a large majority not being home owners. Their charges included interest and a base charge for closing the loan, plus insurance premi ums which would run from 50 per cent to 100 per cent The average loan that was made amountd to less than S6OO. After paying SIOO to S2OO on the account the borrower discovered they did not have sufficient funds to meet their monthly payments. At this time the small loan opera tors would renew the contract " " Or in their terms would make a roll-over contract whereby they would charge a flat amount of $75 to refinance and renew the previous con tract After a long session and many hearings the Senate Banking Committee compro mised and was responsible for enacting the present small loans act which is regulated and controlled by the State Banking Commission. A bill introduced by Sena tor Jennings King of Scot land County created the Small Loan Act that prohi bited renewal of the loan contract or the roll-over term. Also, no loan should exceed S6OO and the maximum rate of charge would be S2O per SIOO per annum for the first SIOO and $lB per SIOO per annum for the second SIOO, and sls per SIOO per annum for the third and $6 per SIOO per annum for the next S3OO. This amount was consid ered excessive by the Sen ate Banking Committee. How ever, there is a great risk in making such loans due to low income and their clients would move leaving no for warding address. The small loan operators contended when the bill was enacted that they would have to leave the state as they could not do business under the terms of this Act They felt the penalties prescribed for violators who failed to com ply with this provision were so severe that should they be found guilty of a misde meanor they could be fined not less than SSOO and not more than $2500 or imprison ment for four months to two years or both -- in the dis cretion of the Court However, most major towns in the State of North Carolina today have three to five times more small loans operators than in 1963. In the early part of the 1965 session. Senator Coggins in troduced Senate Bill 81, and I Introduced Senate Bill 95. Both bills were to regulate excessive charges made in connection with loans se cured by second or junior mortgages on improved resi dential property. Representa tive Bunn introduced a simi lar bill in the House. The three bills were known as the Second Mortgaged Bills. For the three of us who pushed and worked for this new regulatory legislation since early in the session it hts been a long hard and ophill fight The bill that damps firmer controls and eftat ceiling on second mort gage lending finally was en acted into the law last week. Like the small loan racket of 1961, there was no law on the statutes to control this type of leading. As a result the broken war* foot loose and fancy free to make such loans. The sky was the limit on the rate of charges and interest combined that were imposed on the bor rower. I became interested in this type of legislation when a person that had ob tained a loan gave ne an af fidavit itemizing the entire procedure and cost of such a loan he had obtained from a broker in Winston-Salem. Often such brokers repres ent money lending companies from Atlanta, Ga., Jackson ville, Fla. and Pittsburgh Pa. This person, or Mr. X ow ned a house worth $18,500. A Saving and Loan firm held a first mortgage in the amount of $12,000 with a monthly payment of $77.40. Two years later Mr. X made improvements on the house, purchased a new car and bought some new furniture with all these payments fac ing him. It became necessary to consolidate these pay ments to a let live figure. Mr. X answered an ad in the Winston-Salem Journal stat ing that SSOOO could be bor rowed without delay. He applied for a $5,000 loan and received five checks to pay off his creditors amount ing to $4,450. The payments on the first mortgage of $12,- 000 were $77.40 per month, and the payments on the a bove loan were $131.82 per month for 60 months or a total of $7,909.20 to be paid in return for the $4,450 loan received, or $3,859J0 in ex tra charges and interest.... As a result Mr. X was forced to sell his home. Mr. and Mrs. X have very little education. They signed a series of papers, and asked the broker what the interest rate was on the loan and why they were signing so many papers. His answer.... "don't worry about that just think of these checks you are getting to pay your creditors." The broker refused to give the borrower a copy of the contract When the Senate Banking Committee conducted a hear ing and investigation we re ceived proof of brokers and second mortgage companies charging from 55 per cent to 135 percent for a five year loan. Whether the sec ond mortgage companies call it "charges" "interests" or "fees it is "legal thievery. We also received informa tion that hundreds of people all over the state have re ceived such loans and will be penalized the rest of their working days to repay money that they did not receive. This legislation is too late for them, but it is hoped that it will eliminate such vicious charges on second mortgage loans in the future. After the three bills were introduced, a sub-committee was named to combine the bills and report in a "Com mittee Substitute Bill' that would incorporate the best parts of the bills and eli minate the loopholes. I served as a member of the subcommittee along with two other members of the senate. Under the new second Mort gage Bill that was ratified last week a lender could not charge more than 10 per cent for all charges, and fees plus 6 per cent interest on the amount of money actually loaned. It would allow fire insurance and term life in surance to be sold extra. The lender would have to fur nish the borrower an item ized statement listing the de tails of each loan. Violations of this law would be a misdemeanor and persons convicted of violati ons could be fined or impri soned or both at the discre tion of the court The second mortgage com panies violently objected to the penalty clause. This bill passed the senate without a dessenting vote but was stall ed in the House when several amendments were introduced to weaken the bill. These amendments failed and the bill in tact was rati fied last week. The second mortgage companies contend ed they will be forced to leave the state as they can not do business under the terms of the bill. I contend they will remain and be doing business when the next Legislature convenes in 1967. CRIME KATE UP The nation's crime rate for the first quarter of 1965 rose 2 percent above the same quarter in 1904. J. Edgar Ho over, FBI director, in making this report, noted that crime increased in the suburb* while it decreased is rural areas. Barfiagtoa Stock Car Raciag Darlington, S. C, Aug. 19 long-banished Curtis Turner's return to big-time stock car teeing in the coming Southern 900 at Darlington Raceway, has been as full of surprises as the near-midnight statement out of Daytona Beach stating, "Turner is now eligible to 'drive in NASCAR if he so de sires!" I The second came a week later when, at a Darlington Raceway press party in Char lotte, Turner calmly announc ed he would drive a Plymouth, ostensibly out of the Lee Pet ty stable! Turner was the original Ford factory driver and the ace of the Holman-Moody Ford stable until his banish ment four years ago. John | Holman, at the same party, had ' publkally expressed his wishes Ito have Turner back and was las noticeably surprised as | any in the room at the an nouncement I Then came the rumor, de- Inied in official circles, but not by Turner, that Ford did not offer him a factory "deal"' but a private one because Freddy Lorenzen, now the ace of the Ford camp, and threatened to quit the team if Turner re turned. The soft-spoken Turner stated, "That's the impression I got and if they want it that way we'll go along."" The reference was made to the 1961 Rebel 300 at Darling ton when Lorenzen won his first major race after a last lap bumping duel with Turn er that lasted through the extra fl*£ lap when Turner hit the victorious Lorenzen broadside. Lorenzen was quite critical of Turner's tactics in his press conference. Later, that year. Turner was suspended, but not for rough driving. The big Virginian, probably the greatest crowd pleaser of all time, has a long record of racetrack feuds, of which all but the Lorenzen affair ended in a handshake. His year-long feud with Speedy Thompson, also a Southern 500 winner, became so bitter officials had to mend the • breech and his high-speed duels with Lee Petty did not end until both wrecked in an early-day Sou thern 500. TTie clock could turn back for this Southern 500. TB "Hams It Up" They did it in the old-time melodramas. They still do it today on TV. The villain is cornered and dealt his mor tal wound. Does he expire neatly and quietly? Not a bit he rants around, chews the scenery, knocks off a few ene mies en route, and delivers his own funeral oration be fore finally lying down to die. The same sort of lurid per formance is enacted in real life from time to time. Not by individuals but by out worn customs, fashions, trends. They rarely expire all at once: it happens gradually, with periods of waxing and waning until the moment of final surrender. It's been hap pening with other disease scourges such as VD; and it's happening right now with tu berculosis. About a dozen years ago this ancient enemy received what looked like a quick death blow. Potent, reliable drugs against it were devel oped for the first time—nota bly streptomycin, isoniazid, PAS (para-aminosalicylic ac id). Sickness and death ta bles began swooping down ward. Then the seemingly conquered enemy turned and fought back. Small local epi demics broke out; the tide seemed to be turning; in many cities the sad statistics were climbing again. Just the same, anti- TB workers remain convinced that the disease can and will continue to be reduced and eventually banished. Public health officials, Christmas Seal associations and private medical specialists are com bining to zero in on the pro blem. Witness the project re cently launched in Montgom ery County, Pa. where the National Tuberculosis Associ ation, its local affiliate, and the Montgomery Medical So ciety Foundation are jointly conducting a three-year study to determine exactly what is needed for the eradication of tuberculosis. The wounded villian, like a stage "ham" of old, still flails around. It will take years decades— to finish him off. But the day will come hastened by efforts like the Montgomery County pro ject The navy has in production the first U. S. antisubmarine weapon capable of coping with a high-performance nu clear submarine. Vice Admi ral C. B. Martel told the House Armed Services Committee the weapon, a deep-diving, self - guided torpedo* was outstanding la its importance. -« . -J - -. - . - > One-Man, One-Vote Rule By Court Concerns All By CHARLES CLAY A matter of great concern to local governments through out North Carolina is whether the Supreme Court's "one man, one-vote" ruling will be made applicable to boards of county commissioners and city councils as well as state legislatures. Chances are that it will. Institute of Government Di rector John Sanders writes in the current issue of "Popular Governmert", the institute's monthly magazine. , There have already been decisions "by a few state and lower federal courts, holding that the equal repre sentation rule applies to coun ty and city governing boards., and it is probable that in the 'next year or two, the United States Supreme Court will have occasion to rule on the question, the article says, add ing. "When it does it is likely to find that a board of coun ty commissioners or a city council is the same in kind as a state legislature; that all are general legislative bo dies levying taxes making ap propriations and deciding on other important governmental questions affecting the people of the entire governmental unit state, county or city, and that every resident of that unit is entitled to equal representation with every oth er resident . If and when the "one man, one-vote" principle is applied to local governments, it would pose no problem for 53 Tar Heel counties. "For those 53 counties that nominate and elect their commissioners from the cou nty at large and whose com missioners are not required to live in particular districts within the county, it would have no significance at all" Director Sanders writes. "There is nothing to to go to court about" In 36 of the counties, can didates for county commis sioner are required to live in legally defined districts but are nominated and elec ted by the voters at large. In 10 others, the candidates are required to live in a district and are nominated from their district but vot ters throughout the county cast ballots on all candidates Jn the general election. The ther county both nominates and elects its commissioners by districts. As to the lone county the article says this in event of application of the equal rep resentation principle to local governments: "Unless the dis tricts were so arranged that each commissioner represented substantially the same num ber of people, the county would be open to suit by a citizen who believed that he, as a resident of an un der-represented district, was being denied his federal con stitutional right to equal rep resentation. . ." The 10 counties Director Sanders writes, would like ly be in the same boat for You Drive Too Fast? Better Review This Returned To S. A. To Study WINSTON-SALEM, N. C.~ Dr. Charles C. Middletor., as sistant professor of labora tory animal medicine at the Boman Gray School of Medi cine, has returned to South America to continue his stu dies on the cardiovascular problems of monkeys. He will spend eight weeks in Leticia, Columbia, where he will conduct his research in the field laboratory. He will also purchase monkeys for the medical school's re cently established primate co lonies. Last summer, Dr. Middle ton and scientists from Lou isiana State University School of Medicine found, through their research in the jungle laboratory, that squirrell mon keys develop atherosclerosis (hardening of the arteries) naturally. This animal, there fore, became the most suit able model for research on the disease. Work this sum mer will involve principally woolly monkeys, cebus monk eys and spider monkeys. NINETEEN CENTS The lumber and other wood products used in home build ing cost only 19c of every dol lar paid for a house, accord ing to the U.S. Labor Depart ment. this reason: "It is well es tablished that, in the eyes of the law primaries are part of the election process and a citizen can no more be de nied his constitutional light to full participation in a pri mary than he can be denied such a right to take part in the general election." As for the 36 counties San ders writes that "the answer is not so clear" but the safer course would be to assume that these governing bodies would be open to court at tack: "It (the high court) may hold that the very reason for having residence districts is to make sure that all parts of the county are represented on the board of county com missioners that each com missioner is expected to take a special interest in the wel fare of the people of his resi dence district and that sub sequently such districts must be so lsid out that each commissioner 'represents' sub stantially the same number of people. "And the court might even go on to hold that while no one has a constitutional right to be a county commissioner,! every voter has an equal right with every other qualified voter of his county to seek election to that office, and therefore the resident of the large district is unfairly dis criminated against because he has potentially a great deal more competition for the of fice than does the aspirant who lives in a small district in the same county.' What course is the high court expected to take to im plement the "one-man one vote" principle on the local level? "Perhaps the likeliest course would be for the court simply to ignore the districts and order that the nomination and election, of commissioners be held at large, without respect to the place of the candidates' resi dence. Such action might be taken even after the nomi nation and election cycle has gotten underway." Director Sanders also dis cusses possible courses open to counties which anticipate * lawsuit and might want to "minimize its effects." Point ing out that only the General Assembly "has the power to change the commissioner el ection system in a county.* Sanders writes: "First the General Assem bly could abolish all districts and provide for nomination and election from the county at large without reference to the candidates' place of re sidence. This would eliminate any ground for suit on the basis of unequal representa tion resulting from districts of widely varying popula tions," "Second it .could revise the districts or the allocation of commissioners among dis tricts or both so as to a chieve substantial equality in the number of residents per commissioner." "Too Fast For Conditions," a pamphlet prepared by the American Insurance Associ ation, points out the dangers of fast driving. . . At speeds above 80 miles per hour, the publication says, the chances of living through an accident are almost non existent At 25 mph. the chance of death in an accident is one in 167. At 45 mph it is one in 87 at 75 mph it is one in eight and at 80 mph death ia a near certainty. "AS SPEED increases, you just don't see as much as you should see in order to drive safely," the pamphlet says. "The eyes can no longer re ceive, transmit, analyze and translate to provide any re quired reaction soon enough or at a safe speed rate." The pamphlet further points sut that important side vision becomes narrower and narro wer as speed increases, mak ing drivers more vulnerable to dangers on either side of the car. Finally, it states that over confidence, misuse of power ing equipment and failure to take into consideration bad driving conditions account for the alarming frequency of fa tal crashes. No two people think exactly alike, and ft takes some mar ried couples a lifetime to find that out There are those who deny the greatness of the Bible but they have yet to produce a greater book. SII Is Fn (Not Too Well Doie) "What a lovely sleep I had on the beach!" said Snoosy Su san shortly befot* the chills and fever set in. It happens every summer a new crop of victims to the innocent idea that you can't have too much of a good thing. * Susan felt robbed when the blisters began forming, be cause she thought aha'd acted with Just the right amount of caution. The sky was overcast so where wss the danger of sunburn? Unfortunately it doesn't work that way. You can get as cruel s bum on a hazy day as on a bright one. Skins differ in thatr sensitiv ity to sunlight Children burn , more quickly then adults. Babies under two, and delicate (children of any ags, need to be watched closely when sun baths are taken. But even for. grownups, more than 15 minutes of ex* posure for the first time in s season can be dangerous. After that first quarter-hour, the ex posure time can be increased by another 18 minutes each day. That way a jfradual sun* tan builds up the kind that furnishes real protection. The *>ther way can ptii you to bed for days. j Sunbathing if not overdone is beneficial to most people, but can be definitely harmful to others. People jMth TB, for j example, have bMh known to jsuffer from a jw&iaenlng of : their condition prolong ed exposure to qtf sun. Get ting overheated llftHe hot tun can put a strain ail ihe inter nal organs, particularly the heart and blood Vessels. An elderly person, ot one with heart trouble or ~ any other serious disease, should consult his doctor befortf km be thing. Severe sunburn can cause serious illnesses accompanied See Us For All Your ]\ 1 BACK-TO-SCHOOL | ] Or Farm And Home Needs { ' I SnF* 4 D ungarees j f cu.DTc ; SBUtS For Oil IK I v for men & boys Men and Boys | $1.79 up $4.95 up $1.98 up { ——————L__ i ■ | Complete Line Of School Supplies { | ELECTRIC Boys, Men Western j j FANS Hats—sl.9stos7.9s j Cold-Pack Canners Pressure Cookers ' S Stone Jars Aluminum Ware S Gold Seal Just Received jj . CONGOLEUM RUGS NEW SUPPLY OF j j9x 12 $11.25 DINNERWARE j | 12x12 $15.75 As Low As * | 12 xl 5 $19.75 $6.95 for a 32-Pc. s^t — j ALL TYPES OF HEATERS: Wood, Coal, Oil. ... Wood Ranges I Wire Of All Kinds «p j Barb Wire - Fox Wire - 2x4 Wire - Poultry Wire"" I Mortar Mix - Cement - Sakrete - Fertilizer - Lime S Four-inch Bell Tile - Four-inch Drain Tile - Road file" Concrete Blocks j M ART III' S Hardware & General Merchandise I FORMERLY MARTIN BROTHERS L Located At Depot Mocksville, N. C. ■■■■■aaaaaaa—■afaaf ■ajaaaa f e T n t|tll | fff^t| | f^fwlfi| | tWßtf M tw| by chills, lever and delirium. A doctor should always be called If blisters develop; blist ers bring danger of infection. In short have a nice day at the btach! You will if you take your sun in sensible j.: Social Security Newt By: Margaret Jervis fkU Representative It seems only like yes terday, but it's a fact that it hat been 10 years since the provision providing pro tection against the misfor tune of disability was made a part of the Social Securi ty Act I' recall this provision ra ther. vividly since I took part in the filing of the first ap plication tor disability bene fits in the history of Social Security. I will not name the applicant but he has since been converted to the So cial Security old-age bene fit rolls. My part in this appli cation was a result of a "scheme" to better acquaint yoi| folks with the provisions of the law. I figured hat publicity concerning a "fiirt" would get your attention. And it did but there are still some of you who are not acquainted with our present disability provisions. Booklet OASI - 29, «lf You Become Disabled," is an easy-to-read pamphlet-- it's fre^—which will put you hep to the current disability pro visipns of the Social Securi ty program. It includes time ly informatior about such things as: ...how disabled you must .be ...how long you must have worked . . how the determination is made ...types of benefits payable ...vocational rehabilitation features, ...what happens if you re cover or return to work I don't have any new "schemes" to get your at tention concering this pro vision of the law, but I do urge you to study this pro vision A healthy man today can become a disabled man tomorrow and you_abould. • know how this wilM tffapfc ■ you and your family'ld Sis should be your miaftytuag.- J If you are already jqgjalSi, and have not checked with your social security people, you owe it to yourself to get in touch with them in%- ' mediately. You may be en titled to benefits at - this , time. A call, letter, of visit J to your Social SeciOMß Off- 3 fice will get you £ PAIR RENEW FRIENDSHIP 7 DURING MINOR ACCIDENT 1 Two motorists from Oma ha, Nebr., Tenewed acquaintance as the a minor accident on*a bridge near Paul's Valley, wda. L. G. Druschel, 71, Texas bound, and Eugene. M Rat cliffe, 57, headed for" home, got together after the mishap with their families and had lunch, talking over old times. im mm ATHLETE'S FOOT Ggftt ! HOW TO KILL IBM i IN ONE HOUaaMI J 4-L must stop the Myiodl burning or your 48c wiiMt atf any drug store. In Infected skin sloughs oMBI watch HEALTHY akin syW£V- Now at all drug storey MHT
The Cooleemee Journal (Cooleemee, N.C.)
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Aug. 19, 1965, edition 1
6
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