The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-08
CITY BANKS NAME CARRIED IT
rou HrrNROE d MUNR0E WE'RE
tpIE TO STICK THE CURB.

uoherdasher Refused to Take From
utsONnIaundry Threatens TO Sue Bank
7.bs deeper the facts in the Munroe L
,r,nroe stock washing JOB are probed
mo more apparent it becomes that the
uboe scheme Of creating fictitious value
~ Montreal and Boston Consolidated on
,tA Wall Street curb depended absolutely
MON the financial support afforded the
lt,nrcc. by the National City Rant.
N,t only was 1t understood among
brokers who we're engaged In buying
Montreal and Boeton for the laundry"
o,,tft that the City Bank through its second
vlcc.president and credit man, Archibald
LOOMS. leading spirit in the under
vritins syndicate which had engaged the
Nrnroes to dispose OF its Montreal and
Bo-tou stock. was supporting the -haber-
dasrery- concern in it's operations but
sso as told in THE Sun yesterday, the
name If the bank was used as reference
hv the Munroes in the purchase OF furniture
for tho FIRMS Office.
Al least one Of the creditors means to
hold the hank, with Mr.. LOOMS. responsible
Tor 10 loss. This firm. which dropped
,nc,o when the clothesline broke, 1t was
earned definitely yesterday has taken
steps To sue the bank and it's second vice
PRESIDENT as a preferred creditor.
The firm from which the Munroes got
furniture by giving the National City Bank
for reference was Joseph P. MoHugh 4 Co.
Of West Forty-second street. The ref
erence sounded good enough TO MoHugh
and without any investigation he sold the
firm tho furniture on credit. He got
81. 1,t.
which came back marked N. G.
or Inc use Of the banks name as reference
~ McHugh's this was said at the bank
yesterday 10y VicePresident G. S. Whitson:
The bank never authorized the use OF
T.. name by Munroe Il Munroe. and so far
~ know we never Received any inquiry
from McHugb or anybody else relative TO
the standing of the firm
II seemed to be the purpose of the officers
in the City Bank yesterday outwardly to
take the banks part in the stock washing
tcancal as Joke but the general appear
ance of the men who direct the banks
AFFAIRS hardly indicated that they really
regarded the disclosures concerning the
loans amounting TO $4,000 made by the
hank 10 the laundry" concern on unin-
oorsed and unsecured notes as mirth-
inspiring
Mr. LOOMS. for instance, the second vice
president Of the bank and the man who
James Stillman, the president. sal com
,nittrt an error in judgment in leaning
The hanks money 10 the Munroes. actually
looked unhappy. and most Of the others
appeared 70 be III at ease Mr.. Stillman
did not come to the bank Yesterday and
newspaper men were received by Vice
President Whitson About half a dozen
officials ~ the hank gathered around Mr..
Wilson's chair whenever reporters APP
peared and volunteered statements Of
which this s a sample
The newspapers are doing we'll Let
them keen II up lt's a fine advertise
n1ent for the City Bank. We've just with
drawn our ads from three banking papers.
What's the Use Of paying for them when
ve can get the results free.
One officer was asked whether Mr. Still
man would appear at tho bank during the
day. OF whether any official statement
would be issued. Said he:
+ can't saw Mr. Stillman is very err
ratio. you know. He's liable t. appear
here any minute. He's like the Irish
mans fea,'
Mr.. Whitson was asked whether Mr.
I.ooris's resignation had been received or
whether any action had been taken by the
officers If the bank in that direction
10. it has not he replied.
DO Won regard the banks loans Of 500 ooc
Is Gav without adequate security as species
Of overcertifcation?
80. not generalization This bank
never overcertifies for anybody
Isn't It fact that some banks in Wni
street do overcertify?T
n they do, know nothing OF 1t. Iknow
our bank does not
VIII You say positively whether the
hank had adequate security when it Loaned
Irnroe 4 Munroe $4,000 a day for eight
r7vs before their failure?'
= don't care to discuss the nature Of th'
seairitv. bat this bank did not lose anything
by The loans.
Do YOU know whether the Fedora
authorities are going to investigate th'
fransacions?'
r haven't heard that they we're goinf
m DO 50
Mr. Uhtson said that Mr. LOOMS wal
ready and willing to go on the stand inth'
bankruptcy proceedings whenever his testi
uonv Is desired If Mr.. LOOMS had tolc
nc Nl'lIr HtOlN Nl4th NV -
trs began. he said there would not be SC
much talk about it now Mr.. LOOMS, h
raid was able TO explain everything anc
would do 90 at the proper time
Mr. LOOMS was quoted yesterday al
having said
There was nothing irregular IN the trans
actions Of Munroe & Munroe with the bank
Their account was properly kept, andwhei
they suspended they had balance here t
their credit. The bank has not lost dolla
hv them and the matter is not Of sufhcien
Importance TO talk about
Nj LOOMS according to this interview
refused 70 say whether the bank had an,
security other than the FIRMS notes III
said that the Munroes had always kept thei
account regularly and had always beel
particular to make their cheo'ep good be
fore 3 o'clock each day.
Had they not done so said Mr LOOMS
''tey would have been called down YER
promptly. Once, ] remember they Were
couple Of minutes late In getting chec
certified for deposit here and they were
good deal put out about 1t
snea king Of the coincidence that NJ