The Tupelo journal., 1905-02-24

lured by this system, n outsider
bought so, 900 shares, at from $3.50 to 80.
In disposing of the stock, Munroe &
Munroe washed" about 5000, 600 shares
or mor in the process of getting rid Of
about 10000 shares, for which they are
said to have paid the company not more
than $3.50, 600 in all. The brokerage on
raising this $780, 900 is more than $780,
600, 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
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
vent 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-
ior member of the firm. When they
came here they were aggressive and en-
thusiastic young fellows, of the type
hat is liked in Wall street, and they
quickly made friends. Mr.. LOOMS was
one of these, and Leach another, and
both of these are names to c%onjure with
in financial circles. Lo0mis became
chairman of the syndicate's executive
committee, and it was through his in
huence that the loans were obtained
from the National City bank.
Reputed a Millionaire.
The friendship of men like these
brought other friends to the brothers,
and before long George Munroe was
raputed to be a millionaire. 1t is said
he lived at the rate of from $4,000 to
SlOO,0 G0 a year, this young mar who only
a little while before had been a haber-
Casher. He had a luxurious home on
East Fifty-seventh street, and another
at Southampton, l.. l.. and often he Oc-
cupied a suite at the Waldorf-Astoria.
His dress was always at the top of
the fashion, and his dinners We're a fea-
ture of hotel life here. He even went
into the game" to the extent of eX-
hibiting at the horse show. 1t mustnot
be understood, however, that he meant
all this as bluff He has said that
washing" stock. or what is called on
the floor of the exchange the dummy
dum business" was a proper manner
in which to sell stock, and he was mere
ly enjoying the proceeds. His Office
contained furniture worth $4,000, mass
i've black oak, with red cushions, hand
some cabinets and pictures.
A Costly Junket.
He always did things in lavish fash
ion. When Montreal & Boston was
at the height of its exploitation, MU2roe
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
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. bat Alexander took
charge.
The party included senators, 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 a 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 it by the
week from a firm whose business it was
to outfit people who needed sumptuous
offices temporarily.
Inc Hrm GGpOrldu pictured cOulG, on
short notice, give any Office the appear
anoe of glittering wealth. 1t rented out
massive desks, cashiers g%rills, safes and
pictures. 1t kept constantly on hand a
supply of curios for special purposes
mineral specimens for mining COM
panies, oriental curios for people in the
China trade, and chunks of crude rubber
for rubber companies. Such objects.
scattered carelessly about the Office, gave
an air of busy industry and genuineness
to any old enterprise.
But it is not necessary to go as far as
this in these days, as it is shown in this
case that modern finance has brought
improved methods.