The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-21
MEN BEHIND STOCK WASHING.
THEIR NAMES TO CONE OFT IN
THE NENT VI NROE QUIZ.
said 10 Include some High Lights Or wall
street Finance Thcy1l re Asked TO
ENplalnJ underwriting Clerks Progress
CT the search for an Invisible Partner

said 10 Include Some High llBntS or wall
street Finance -Thcy1l re Asked ia
ENplalnJ underwriting clerks Progress
CT the search FOR an Invisible Partner
Interesting developments in the Munroe
& Munroe stock washing scandal are prom
ised in the bankruptcy proceedings against
the firm mex, week What Is practically
complete list Of the men back Of the un-
dcrwrting syndicate which subscribed
for zoo COO shares OF the Montreal and Bos-
ton Consolidated mining stock at dollar
a share and engaged the stock laundry
] concern 70 dispose Of it on the Wall Street
| curb has. it is said come into the hands Of
counsel for the creditors.
The list contains the names Of men, said
20 he prominent in finance who have not
vet been directly connected with the scandal.
The identity Of these men was closely
guarded Yesterday by those VINO have
charge Of tho creditors interests.
The original underwriting agreement
between the syndicate and the Munroes
containing the names of all the subscribers,
il a document which Samuel lntermyer
and others engaged with him in searching
for assets had not been able to find when
the last herring was held. although they
had what purported 10 be- copy OF this
agreement. None OF the witnesses exam
incd in the bankruptcy proceedings has
been able apparently. to give definite in
formation az the whereabouts OF the
original.
Counsel for the receiver and certain OF
the creditors has stated in the bankruptcy
proceedings that several men whose
names were on the underwriting syndicate
agreement were irresponsible clerks.
Some light may be let into the presence OF
their names on the paper when some Of
the -yndicators are put on the witness stand
next Monday.
The only witness examined yesterday
was Frank Brewer head Of the brokerage
firm Of Frank Brewer 4 Co. He IL the man
who testified two days ago that he bor-
rowed from the National City Bank 5000
daily from Nov TO Dec. I, turned II over
10 the Munroes each morning and received
a check from them covering the loan IN
the afternoon He also said that he had
been in partnership for two years with
a partner supplied 10y Munroe, Frank
McDearmid Of Montreal whom he had
never seen, and Also that Munroe had paid
his Office rent for several months in the
Broad-Exchange Building.
other points al which the firm Of Brewer
& Co and that of Munroe & Munroe appear
TO have conceded were brought out yes
terday For instance, Brewer testified
that as an accommodation to Muuroe. he
drew his check for 81 zoo on tho National
CITY Bank in favor of Archibald O.. LOOMS,
then second viCC-preSidcnt now resigned.
which check was given 10 Looms IL pay
ment Of 20 per cent. assessment on r !.
Ward N Co.'S under~ritlng suO~Crp tion.
The check was drawn against thede-
post Of t-aft %! equal amount on Ward
q Co. Brewer couli IJt explain why Ward
& Co hadn't PAID then subscription direct
to LOOMS nor did ne have any idea why
Munroe, instead Of deposltlng thc graft
on Ward 4 Co. in hi name had asked Brewer
TO do 1t, He didn't even know how tho trans
action had been explained to LOOMS. as
he gave his check 10 Munroe and Munroe
banded il 10 the second vice-presidcnt.
MIR Brewer could give little information
also regarding checks amounting to more
than 81 900 which he had drawn in period
Of six months in favor OF J.. Gero, a clerk
in Munroe'= office He said that Munroe
had asked him to make the checks in Gero's
favor.
4Did you get money from Munroo to
cover these checks?- Maurice Untermyer
asked
Il drew drafts on Munroe & Munroe in
Montreal. he replied
How long. asked Mr.. Untermyer.
did YOU have an account at the National
City Bank after the failure Of Munroe
& Monroe"
It'll Jan. H." the witness replied.
Did you receive at that time any noti-
fcation in regard 10 Withdrawing your
account
~Nes" Brewer replied.
He said he had balance Of i3.7OO in the
bank when he received this notification
TnE SvS printed the facts in regard to the
City Banks loans OF 100000 a day TO the
Munroes on unindorsed notes on Jan 10
Brewer said that on Dec. o, the day after
the failure. he had on hand %. 700 shnres Of
NJ 4 B stock Ofthis. 10. 700 belonged 10 the
Munroes. and this stock he still held Mr.
Untermver called on him to turn IL over
TO the receiver. but Brewer refused until
"A balance which he said was due him.
should be paid. He refused TO say how
much the balance was. As 10 the invisible
partner Mr.. Untermyer asked
Have you ever had the faintest physical
evidence that such a man ga McDearmid
existed"
Brewer replied that all he knew about
hi, partner was what the Munroes told
him and they had said he was in existence.
He admitted that he never had heard OF
anybody else who knew such man
1t was said Yesterday that the Munroes
had made a new offer TO settle with the
creditors. but that It wasn't good enough
The creditors want dollar for dollar