The Bourbon news., 1905-02-14

TO take or underwrite certain number
of shares, paying one dollar per share,
20 per cent. of the purchase price, at
the outset and the balance within GER
tain specified times.
The understanding was, however,
that those who had underwritten the
stock would not pay the one-dollar price
unless the money became necessary for
the development of the mining property,
the promotion of stock sales; and so on.
That is, while they agreed to pay GER
tain amount should the exigency arise, if
it did not arise they would be so much
more to the good"
Resort to Washing.
Brokers who were members of the ex-
change were readily found who were
wiling to dispose of certain number of
shares month, and what they received
was to go so per cent. to them and 40
per cent. to those who had underwritten
the stock in the beginning. 1t was then
decided that in order to sell the stock
at price above one dollar per share,
1t would be necessary to resort to the
process known as washing"
In other words, they agreed to them
selves purchase the stock at high fig
ure, in order to set that as the market
rate: Par being five dollars, and they
having obtained it at one dollar, they
arranged for street sales at $3.50
and So, themselves buying at that
rate, in order to show that the stock
was active and to induce the public to
buy at the same price.
In point of fact, so as to make show
ing of large sales, those who were sell
ing the stock were themselves bidding
on it, all the transactions being credited
on the books 1t has been shown that
lured by this system, one outsider
bought $4,000 shares, at from $3.50 to $3.
In disposing of the stock, Munroe &
Munroe washed" about 5000, 900 shares
Or more in the process of getting rid of
about 10000 shares, for which they are
said to have paid the company not more
than $4,000 in ALL The brokerage on
raising this $130,OO0 is more than $780,
GOO, because they had to pay commits
sions on the whole 100000 shares.
+ How Sales Were Made.
The MunrOes would give orders to GER
tain brokers to sell and to other brokers
to buy. When they sold they would
get a check the following morning, and
then they would use that check, turning
it over to the brokers they had employed
TO buy. The result was that December
z, the day of the failure, they received
cheeks in payment for the stock sold
the day before, and they used these
checks to pay for stock they had bought
the day before, but when it came to
their paying for the stock they bought
on December T. they had not the money;
the endless chain" broke, the Munroes
wentinto bankruptcy, and all these per-
sons are creditors for the stock.
Before this situation was reached,
however, the Munroes had their day Of
prosperity or. rather, George did, for he
is the head and front of the combina-
ton, even though his brother was sem
ior member of the firm. When they
CdulS uSlC lACJ WCAC d56A SoolNC anu OAt-
thusiastic young fellows, o9 the type
| that is liked in Wall street, and they
| quickly made friends. Mr.. Loomis was
one of these, and Leach another and
both of these are names to conjure with
| in financial circles. Loomis became
chairman of the syndicate's executive
committee, and it was through his in
| fluence that the loans were obtained
| from the National City bank.
Reputed Millionaire.
The friendship of men like these
brought other friends to the brothers,
and before long George Munroe was
reputed to be a millionaire. 1t is said
he lived at the rate of from $4,000 to
100000 year, this young man who only
a little while before had been a haber-
dasher. He had luxurious home on
East Fifty-seventh street, and another
at Southampton, L. l., and often he oc-
| cupied suite at the WaldOrf-AstOria.
A Costly Junket.
He always did things in lavish fash
| ion. When Montreal & Boston was
at the height of its exploitation, Munroe
thought it would be a good plan to let
those whom he was trying to interest in
it see the actual mine property. Now,
it lies away off in British Columbia, on