The Cooperstown courier. (Cooperstown, Griggs Co., N.D.) 1902-1913, 1905-02-23
value of five dollars share. and 4 con-

SosG. Will Tue pIOVlOlOu IuAI luey were
to take or underwrite q 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 cer-
tain amount should the exigency arise. ii
it did not arise they would be so much
more Ito the good.'
Resort to Washing.
Brokers who were members of the ex"
change were readily found who were
willing to dispose of a certain number of
shares a month, and what they received
was to go 60 per cent to them and 40
per cent. to those who had underwater
the stock in the beginning. 1t was then
decided that in order to sell the stock
at a price above one dollar per share,
it 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 IS, 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 We're 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 So
In disposipg 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 100000 is more than $780,
600. because they had to pay commits
sions ON thesYhols,asloeq, sa.e.9ashares.
How Sales Were Made.
The Munrces would give orders to GER
tain brokers to sell and to other brokers
to buy. When they sold they would
get 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
checks 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 Z, they had not the money
the endless chain" broke, the Munroes
went into 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 sen.
Tor member of the firm. When they
came here they were aggressive and en-,
thusiastic young fellows, of the type
that is liked in Wall street, and they
quickly made friends. Mr.. Loomis was
one of these, and Leach another anG
beth of these are names to conjure with
in financial circles. Loomis became
chairman of the syndicate's executive
committee, aud it was through his in.
fiuence 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. It is said
he lived at the rate of from $4,000 to
500, 900 a 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 &C.
cupied suite at the Waldorf-Astoria.
A Costly Junket.
| He always cid things in lavish fash
ion. When Montreal & Boston was
at the height of it's exploitation, Munroe
thought it would be 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
the foothills of the Selkirks, and it costs
money to take a party out there. He
never considered the expense A pri-
vate car was chartered, loaded with
everything of the best in the commissary
! line, and the junketers started away.
George could not go, but Alexander took
charge.
The party included senator's, bankers,
politicians, and newspaper men-every-
body, in fact, who might be of some aid
in advertising the mine.
They stopped at various cities on the
way out and had jolly time.
Not Unlike Fiction.
The revelations in. the Munroe case
make it not unlike the story told in one
Of Emile Gaboriau's novels in which a
Partisan set Of men in the sixties who
needed office furniture; rented 1t by the
week from firm whose business it was
| to outfit people who needed sumptuous
offices femnOra rily 4,