New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-09
MANY FIRMS MAY SUFFER.
MWproe & Munroe Unable to Pay
for Montreal and Boston Stock.

The curb market was hard hit yesterday by
the virtual suspension of the brokerage firm OF
Munroe & Munroe. This firm, which has its
offices in the Broad-Exchange Building, came
into public notice as manager of the Marconi
wireless telegraph underwriting syndicate. It's
obligations to this company. it is understood
were some time ago fully discharged Recently
the members of the firm have been actively en-
gagged In the promotion of the Montreal and
Boston Consolidated Mining and Smelling Com
pany. OF which they are the fiscal agents. and
concerning the alleged brilliant prospects OF
which many advertisements from many sources
have in the last few weeks been published.
Munroe & Munroe yesterday were unable 70
receive and pay for stocks of the Montreal and
Boston concern which number of curb and
Stock Exchange houses had been trading in for
them. and It reported last evening that
this failure TO carry out contracts had prac-
ticalIy ruined a number of curb brokers and
had caused severe losses to several Stock Ex-
change houses.
The Munroes. In their efforts to 'bulr Mon
treal and Boston. had purchased through these
brokers something over 100000 shares OF the
stock at market prices as high s-16. The
par value of the shares is So. Yesterday on
the curb this stock broke all to pieces. selling
down to u, or so cents share. at the time OF
the slump In the big copper stocks About this
time the news was received the curb that
Munroe & Munroe would not receive and pay
for the stock which they had purchased at the
high prices In consequence a number OF curb
houses and some Stock Exchange houses also
refused to accept the stock and brokers who
had sold 1t to them sold the stock out under
the rule for their account
The news OF the difficulties of the Munroe con-
Germ became public in this way: After the
Az ffrc~ ~ III
resentatves OF the various houses that were
losers by the Munroe concerns failure to car
ny out contracts was held at the Munroe Offices
They conferred with the members of the Munroe
firm, and the interview is said to have been
stormy one. Later a second conference was
held and committee was appointed to look af-
ter the interests OF the creditors.
At the office of Munroe & Munroe last night
the following statement was issued:
At meeting Of various brokers and others who
Mining and Smelling stock yesterday. and who
failed 70 receive thei pay ior sTon @ d
II seems that the firm was interested in me Old
block of the new or Consolidated stock Ihis stock
p9h sTin WeI sueient amount OF this Stock they
could make It active, and knowing that the prop
critics themselves were reaching stage that would
market and bought stock. which in turn. induced
the public TO buy so that It was made to increase
In price from 81 a share TO IS 56k.
Everything went wei until last Monday. when
order to maintain the price Of the stock so that
the loans secured by Montreal and Boston Con-
PURCHASE great many more shares than they an
ticipated. This same condition continued until
Tuesday, when, owing 10 the collapse in the price
OF Amalgamated. they had great blocks of Montreal
or than they could borrow money to pay for, owing
TO the general market conditions The result was
that when the stock was offered for delivery loans
called and the firm practically had to sus-
doPpea en e e Of Gt se en
who could not deliver the stock. and. a result.
The brokers and others present at the meeting
seemed to have run faith IN the ultimate value OF
for rise A committee was appointed to examine
the books of the concern and. awaiting its report.
In the mean time. negotiations are well under
way looking toward the purchase of large block
OF the stock by ee In sr9ng Interests and I
seems not improbable that this deal will be closed
brokers' and all others interested will probably
make profit out of what seemed a loss.
A stakeholder of the Montreal and Boston
Company who was present at the office of
Munroe 81 Munroe. and who said that he was
also attorney for the company. declared that
the reported difficulties OF Munroe & Munroe
would in no way affect the Montreal and Bos
ton company This stakeholder explained that
the Montreal and Boston Consolidated Company
was Canadian corporation. OF an authorized
issue of stock of 100000 shares only $500 600
had been issued He further said that outside
of the block OF stock handled by Munroe e
Munroe tnere were only about 100000 shares
held by the outside public, the rest OF the stock
being controlled by the officers Of the corpora
ton.
The directors of the Montreal and Boston
Consolidated Mining and Smelling Company
are: President A. H. Loomis Colonel George
Pope, of the Pope Manufacturing Company
New-York; c. A. Fish, with George w. Nissan
& Co.. NewYork; A. Davidson, with John M
Shaw & Co.. New-York Stock Exchange; John
f. Plummer. e. J. Morrison Ekhorn Valley
Coal and Land Company
Some of the curb brokers lost their earnings
for several years in this copper slump. Some
are practically ruined, unless large Stock Ex-
change houses shall come TO their rescue.