The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1905-03-04

lured by this system. one outsider
bought so 900 shares, at from $3.50 to S..
In disposing of the stock, Munroe &
Munroe washed" about 10000 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 $3.50, 600 in all. The brokerage on
raising this 100000 is more than $780,
600, because they had to pay commits
sfons Oh 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 7, 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 heSd and front of the eombina-
~, Is
ior 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.. LOOMS was
| one Of these, and Leach another, and
both of these are names to conjure with
in financial circles. LOOMS became
chairman of the syndieate's executive
committee, and it was through his in
| fuenee that the loans were obtained
from the National City bank.
i Reputed a millionaire.
The friendship of men like these
brought other friends TO the brothers,
and before long George Munroe was
reputed to be millionaire. It is said
! he lived ct the rate of from $4,000 to
| 100000 a year, this young man who only
a little while before had been a haber-
dasher. He had a luxurious home on
East Fifty-seVenth street, and another
at Southampton, L, l., and often he oc-
| eupied a suite at the Waldorf-Astoria
His dress was always at the top Of
the fashion, and his dinners were a fea-
ture of hotel life here. He even went
into the game" to the extent of ex-
hibiting at the horse show. 1t must not
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
dunn business was 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, Munroe
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 Colum bia, on
the foothills of the Sellkirlzs, and it costs
money to take a party out there. He
never considered the expense A pri-
waite car was chartered, loaded with
everything of the best in the eommissary
/ line, and the junketers started away
George could not so, 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 8
Partisan set of men in the sixties who
needed Office furniture rented it by the
/ week from firm whose business it was
to outfit people who needed sumptuous
offices temporarily.
The firm Gaboriau pictured could, on
short notice, give any Office the appear
ance of glittering wealth. It rented gu,
| massive desks, cashiers grilIs, safes anG
pictures. It kept constantly on hand. a
supply Of curios for special purposes
| mineral specimens for mining com
panies, oriental curios for people in tbs
| 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.
TO OBTAIN GOLD FROM SEA
COMPANY Formed in England to Ex-