The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1905-02-10

\ tract w dS cultftu into ny WhlNh inc p~A~
sons who were to underwrite il were
to get the stock at one dollar per share.
Various persons went into the syndi-
cate, with the provision that they were
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 ito the good"
Resort to Washing.
Brokers who were members of the ex-
change were readily found who were
willing TO dispose of certain number OF
shares month, and what they received
was to go 60 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 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 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 5000 shares, at from $3.50 to So.
In disposing of the stock, Munroe &
Munroe washed" about 5000 900 shares
or more in the process of getting rid of
about $780, 900 shares, for which they are
said to have paid the company not more
than $4,000 in all. The brokerage on
raising this $3.50 900 is more than $780,
900, 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
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 ht
is the head and front of the combina.
ton, even though his brother was sen
ior member of the firm When the!
came here they were aggressive and en-
r thusiastic young fellows, of the typ,
4 that is liked in Wall street, and they
# quickly made friends. Mr.. LOOMS wa!
y one of these, and Leach another, ant
ii both Of these are names to conjure will
q in financial circles LOOMS became
r chairman OF the syndicate's executive
committee, and it was through his in
bat he tai no,
o from the National City bank.
} Reputed a Millionaire.
If The friendship of men like thes
brought other friends to the brothers
and before long George Munroe Wa
reputed TO be millionaire. 1t is sal
he lived at the rate of from $4,000 t
100000 year, this young man who onl
a little while before had been a haber
dasher. He had a luxurious home Of
East Fifty-seventh street, and anothe
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 wa
at the height of its exploitation, Munro
thought ii would be a good plan to lie
those whom he was trying to interest i
it see the actual mine property. Now
ii lies away off in British Colum bia o
the foothills of the Selkirks, and it cost
money to take party out there. II
never considered the expense. pr
vate car was chartered, loaded wit
everything of the bestin the commissar
line, and the junketers started ava!
George could not go, but Alexander too
charge.
The party included senator's banker
politicians, and newsp paper men-every
body in fact, who might be of some al
in advertising the mine.
They stopped at various cities on tn
way out and had jolly time
Not Unlike Fiction.
The revelations in the Munroe ca!
make it not unlike the story told in or
Of Emile Gaboriaus novels in which
Partisan set Of men in the sixties WI
needed office furniture rented II by II