The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-10
TRAIL TO CITY BANKS DOOR
OF LAST $50, 600 STOCK WASHING
CASH THE MUNROES USED.
Creditors Having Followed II bring the
Bank Into the Laundry bankruptcy
suit-A Previous Operation OF Loomis
and noese I'm Mining Promotion.

Inc NhuOnAl Nlty Bank mas Deen Innue
party to the bankruptcy proceedings
brought against Munroe & Munroe, the
collapsed brokerage firm which obtained
from the bank on its unindorsed and un-
secured notes SEQ, 900 daily for eight days.
| and which used the money in washing the
! price OF Montreal and Boston Consolidated
mining stock ON the Wall Street curb,
| from 80 cents up to $3.50 u share. An
amended petition was filed yesterday in
the United States Bankruptcy Court by
counsel for the receiver and certain of the
creditors, naming the alleged preference
given to the bank as a creditor as Il ground
for the bankruptcy proceeding.
From the moneys and property OF Munroe
& Munroe, il is alleged the sum Of SEQ 600
was paid to the bank on Dec, Z. the day
when the haberdashery outfit refused to
accept deliveries OF stock. This money was,
Of course, paid in TO take up the daily loan
which the bank had been making to the
firm. At the time OF the last payment 1t is
alleged, Munroe & Munroe were insolvent.
The creditors seek TO hold the bank re-
sponsble for this $4,000.
While the news of the step which had
been taken In the bankruptcy proceedings
was being conveyed by reporters to the
officers OF the City Bank generally, other
developments occurred OF special interest
to Archibald @. oomis the banks second
vice-president ard credit man. and the
leading spirit In d o underwriting syndicate
which agreed to take 1000 shares OF Mon
treal and Boston stock at 81 a share and
which engaged the Munroes to dispose Of it.
These developments we're contained in n
despatch from Hartford to an evening
newspaper telling OF Mr.. Loomis's conneo-
ton with an attempt, year or more ago.
to finance the Majestic Mining and Smelt-
ing Company. Ex-Alderman George F.
kellogg Of Hartford, director of the Ma
jestio company, was the authority quoted.
and the statements attributed to him were
substantiated last night by another IL
rector OF the company living in this city.
Associated with Mr.. LOOMS in the Ma
jestio deal was Quincy Ward Boese, late
the secretary treasurer OF the Montreal
and Boston underwriting syndicate, who
has testified in the present proceedings
that he helped the Munroes In their wash
sale transactions, although he didn't know
then that he was doing that. 1t has been
limited in the present bankruptcy proceed
lngs that Mr. LOOMS and Mr.. Boese we're
uOJ iIlubtrID VI llOIlObllB
mining properties before they came to-
gether in the Montreal and Boston enter
prise.
The Hartford director says that In 1908,
when c. j. Caughey. president Of the Ma
jestio company, and A. B. Lewis secretary,
failed Of reelection, Quincy Ward Boese
brought suit against the company and
its fiscal agents. Chapman, Mucklow 4
Bosom OF Hartford, upon complaint of
Caughey. II was alleged that there had
been irregular transactions and that Muck
low had como into possession Of stock for
which he had paid nothing. About the
81 me time the stockholders in the company
began to receive printed matter not CAL
culated 70 inspire confidence in its affairs.
On Aug. g, kellogg says. Boese sent letters
10 the stockholders announcing that voting
trust committee had been appointed, con-
posed OF A. G.. LOOMS, James II. Knight
Of the First National Bank o. Hartford
and Charles F, Street. 10 take charge Of the
affairs Of the Majestic company. The
recognized standing Of LOOMS aud Knight
restored confidence, and the shareholders
accepted this as an apparent way OF avoid
ing total wreck. In letter to the directors
Mr.. Boese ia quoted as saying:
We feel not only that our own pecuniary
interests, but tho interests Of every stock
holder OF the Majestic company-in fact the |
very value Of their stock. depends upon the |
acceptance Of the three gentlemen proposed
as the protective committee. and we think |
that there Is an opportunity here for you 10
secure the heartfelt thanks OF all OF the ? 900 |
stockholders OF the company by taking hold I
of this matter with that skin which the sue
cess you have severally achieved IN the finan-
cial world shows you possess
at an early meeting Of the voting trust,
the director says, LOOMS declared that !
he was going TO send Boese to Utah as his |
personal representative 10 inspect the COM
pany's properties. Boeee went, spent one |
day at the mines in Milford. Utah, and, !
according to the Hartford director, came
back with damaging reports of the con-
dition Of the mines.
Under pressure OF LOOMS and others |
behind him. the president, treasurer and !
several directors we're forced TO resign. !
A. @. Doomis and his son thereupon were |
made directors, and the son was put at the |
head of tho company. The same son
was secretary of the Montreal and Boston |
Company until Munroe Il Munroe re- |
signed.
Boese. Il Is asserted. with A. B. Lewis, |
the old president OF the Majestic company, |
then came forward with proposal for the |
Of the Majestic with sev-
eral other mining companies in which |
LOOMS and others were Interested, the |
sohspne being. it 10 averred, to bolster up |
the other mines with the Majestic prop |
critics, which possessed known merit. They !
proposed to capitalize the new company. |
the Monarch, at 100000, and to allow
the shareholders of the Majestic s., 600 900 |
par value OF the new stock for all their |
which were then capitalized |
at "a. OOo.O00.
Not a cent had been raised for the Ma
iestio company by the voting trust. and the |
stock Of the company fell from 81, at which
IL was selling in the open market when
LOOMS and his followers took It. until at
last Is cents was bid. with the stock offered
at IS cents. Then the rehabilitating proc
ess under the Loomis voting trust came
to an end. receiver being appointed for
the company.
When Mr.. Loonis was asked about these
matters yesterday he replied that he had
nothing 10 say.
The announcement by George II. Munroe,
head OF the oollap sed firm, that the firm
would resume DO secession OF its offlccs at