New-York tribune., 1905-01-13
: ALL RIGHT" SAID LOOMS
aided FIRM AND STOCK.
Munroe Pooling Agreement That
ITos Not Destroyed.

at the Munroe q Munroe bankruptcy hearing
before United States Commissioner Alexander.
Important testimony given by William Ellis
Mitchell. a mining expert and engineer, and a
broker IS well. who swore that A. @. Loomis.
viee-president OF the National City Bank. had
assured him and some of his friends that Nun
roe & Munroe were "all right" and who also
said that A. B. Leach, Of Farson, Leach & Co.
who was associated with Mr.. Loomis in the
Montreal and Boston underwriting syndicate
had endeavored to get the witness to destroy
a pooling agreement to which Leach's name was
signed. E. ". Curtis. Office manager of Mum
roe & Munroe, was again a witness and was
closely examined by Samuel Untermyer. attor-
uey for the creditors OF the alleged bankrupt
nrrn. whose line Of questions apparently
directed TO establishing proof of irregularities
sn the transactions between the National City
Bank and Munroe & AIunroe the day preced-
ing the failure OF the firm.
In the course of his examination of Mr.. Mitch
ell Mr.. Untermyer asked:
Odd you call on Mr.. Loouis personally before
eshg @ Wh ManToe & nj MunToe @ SAYING they had
had trouble with the firm. called on Mt. Loomis 90 mis-
firm Mr. LOOMS told Munroe & Munroe car
Zee e od 6G2 nae he was S in Montreal and
Boston, and asked what thought OF it. told
1Ir. LOOMS. at the waldorf. had been West and
Te ss SsTs sol ToPte Top M ~ Iomis at the Wal
dorf by appointment Mr.. Loomis told them
roe & Munroe were also all right
o.1Did MT Loomis tell your FRIENDS the mines
A-No; my recollection is that he told them they
Q.-As matter OF fact. they had not been paid
Tor? Al understand not.
The witness told Of the meeting OF Loomis and
Leach and the Nunroes at the Waldorf on the
might Of the failure. Il remained until 1 g. n.,"
he said. After the failure went 10 Mr.. Leach
al - 4F,a# haI hoSI SIrv rtr1rlr
through Mr. Shaw. and said expected him to
see that I lost nothing. Mr., Leach told me he
was very sorry, but he could do nothing for me
then, but would try and see that got some
kind Of a contract from the company later that
would keep me from loss"
o.-Did he ask you later for a paper in your
S8eo Shares Of MonTeaf PfpUld and Boston at g 70
share. He asked me to go home like EentleIpsn: man
destroy it refused TO do He told it
was bad business TO be in.
The witness produced the paper. which was
an agreement 10 buy 100000 shares at 81 40.
the profits and losses TO be divided pro rata
1r. Untermyer read from the paper. showing
that Leach had subscribed for 25.0o0 shares and
aIunroe & AIunroe 10000.
In beginning his testimony Mr.. Mitchell said
that he creditor Of Munroe g. Munroe to
she extent OF $4,000, having been one Of the
brokers whose purchases of Montreal and Bos-
ton had been refused by the alleged bankrupt
sirm on December Z. Mr.. Mitchell said that he
was q member Of the party that visited the
Montreal and Boston properties in British Co
Iurnbia last fall There were sixteen persons in
the party, among them George H. Munroe.
Senator Warner Miller. c. A. Fish, Charles Nc
Donald, DR.. McGoYus. of Binghamton; DR.. Glib
ney, the waldorf physician; W W. Russell.
George Armstrong, John F. Plummer. Quincy
Ward Boese. Arthur Shaw and Alexander Mum
roe Mr.. PIummer seemed TO be the toast
master The expense Of the trip which was
made IN a special car. borne by Munroe &
MunToe. Continuing. Mr.. Mitchell said Mr..
Shaw told him that he represented A B. Leach
and that Mr.. Boese represented Mr.. Loonlis, and
that Messrs. Leach and Looms practically con-
troiled the company.
Mr. Curtis. former manager OF Munroe & Nun
roe, recalled. testified to indOrsng check for
$3.50 after the firm had ceased TO do business
on the day Of the failure.
Odd you see Mr.. Loomis on the day after the
falureP Al did. at The National City Bank, in
relation 10 tie $500 check He thought It improper
told him counsel had advised it. got none OF It
sak sst Sd Ddf%e: as a and '9 he p M oh e c a
before The failure; received check from w 9.
Gallagher for $4,000 after o'clock that day, which
Was part Of The $4,000. ,,-..,.
the bank S5 006 shares OF Montreal and Boston. It.
remained there and became the daily collateral
was paid on the 7th? Ave did-that is. an order
4
Q.-And wasn't that stock that Boese got back
tho syndicate's stock? Al don't know.
the National CITY Bank? Alt is.
Q.-Anc the last entry In the passbook for De-
Q,-And thar means that the $4,000 credit was
not passed 10 the credit Of Munroe & Munroe until
5he S.ose Of business on that day? Al am not
Q.-Don't you know that book wasn't really bal
anced until December y and only back after
nc receiver came in2 Were not part OF these
tres made after December n Al do not know
Qc---NeFe not these three entries showing credits
y. her md
December 2, S9O0)0-were not they made after the
1ailureT Al do not know.
Washington Jan. 12.--Acting Controller Of the
Currency Kane said, in answer to an inquiry
whether or not the Controllers Office had taken
any action in regard to the charges made against
the National City Bank of New York OF unlaw-
fully certifying checks in connection with loans
lnaoe 10 Munroe & Munroe, that the office had
no Information on the subject except that
fained IN the newspapers. These published ac-
counts Of the banks transactions with this firm
had not disclosed any violation OF law upon the
part OF the National City Bank. According to
these published accounts the Controller contin-
ued. the National City Bank made a series of
loans Of 100000 each TO Munroe & Munroe, on
fheir unsecured notes. These loans are reported
10 have been paid each day, that the liability
az the firm to the bank at time exceeded
100000 This amount placed to the credit
Of the firm on the books Of the bank. and against
81 the firm Grew Iheir checks. and the bank certi-
fed the checks.
There was no violation OF law IN such a trans
action Mr.. Kane said. A national bank has the
right 10 make loan single double name
paper, with without security, within the limit
OF 10 per cent OF its capital; and when such
loan has been made and the amount placed 10
the credit Of the customer. the latter has a per-
feet right to check against ii, and the bank may
lawfully certify the check.
DIRECTORS FOR BANKERS TRUST