The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-14
HatExposes The City Bank TO
Criticism, He Says,
AND ONLY He is TO BLAME.
Outcome 10 Date OF the Munroe
Stock Washing Scandal.

Announcement That theLaundry Firms
Creditors VIII sue Him and the other
SyndIcators as Jndisciosed Principals
I'm the Firm-Bank Had Reel ect ed Him,
hut WIN Accept His ReNsnation-He
Is to GO on the stand Next Week
10 Combat the Assertion That He Was
CoEnizant OF the Use 10 Which Banks
Unsecured SEQ. 900 Loans Were Put.
As result Of the Montreal and Boston
Copper stock washing scandal Archibald
G LOOMS, vice-president OF the National
CITY Bank has rendered his resignation
Of that post and as n director of the bank
to his fellow directors, and it is understood
that the resignation will be accepted at
meeting OF the directors next Tuesday.
Mr. Ioomis's letter Of resignation which
IL dated on Thursday, was given out yes
terday BY John A. Sterling OF Sherman
4 Sterling. attorneys for the bank. Here
tits.
To me BOARD Of Directors OF hs National GUY
Bdnk Of Nep York.
GENTLEMEN: j beg 20 tender my resigna-
ton AS vice pres dent and director OF this
bank
After six years o: active work in the bank.
during which period its business has largely
increased and its honorable and commanding
position has been steadly maintained. II
IL with regret that I sever my relations with
you | am. however. led TO do this because
my continuance with the bank exposes II
to criticism and attack which should be
personal TO myself as no officer or Individual
connected with the bank. except myself.
had anything Whatever TO do with tho credit
which was extended TO Munroe h Munroe
The amounts that were advanced to them
we're loaned IN the ordinary course OF bust
ness and at all times had ample collateral
from them TO secure their loans. believed
al the time. and still believe. that the property
OF the Boston and Montreal Copper Company
is valuable one. and ! had no personal in
terest Of any kind In the loans made TO them,
have been engaged In the banking BUSH
ness for upward OF forty wears. during which
time I think | may say that my record viii
speak for itself and not 10 my disparaRement.
II there has been any lack OF Judgment in
these matters II Ia but proper that alone
should suffer the criticism.
My greatest satisfaction AZ tho present
moment Is the confidence which has been
shown me by my reelection as a director
and vlce-president OF the bank 1t would.
however be unRenerous on my part TO take
advantage OF this signal proof OF your ap-
probation of what ] may have been able to
do FOR the bank in the past
earnestly request that you will take i'm
mediate action upon my resignation. Yours
sincerely, A, @. LOOMS.
The testimony on Thursday Of W. Z.
Mitchell, a young broker and mining en-
gineer, that Mr.. LOOMS recommended the
Munroes as men Of financial standing, and
that he told inquirers that the Montreal
and Boston properties had been paid for,
when as n matter of fact according to
Samuel Untermyer they had not, may
have had something to do with Fastening
Mr.. Loomis's resignation.
Vice-President Vanderip OF the bank
vas in Washington on Thursday talking
With the Comptroller of the Currency,
hpt denied that his visit there had any
thing TO do with the Munroe & Munroe
scandal
Publication Of Mr. Loomis's letter Of
resignation followed close upon an an
nouncement that the creditors of Munroe
Munroe intend to hold Loomis. A. b.
Leach Of the bond house Of Farson. Leach
4 Co. Quincy Ward Boese and other mem
bers Of the underwriting syndicate which
engaged the Munroe laundry outfit to
dispose Of the stock responsible for the
firms debts Suits will be brought against
the members Of the syndicate in few days
10y some twenty brokers who were left with
about 1900 shares Of Montreal and Boston
on their hands when the Munroes refused
deliveries on Dec. 7. These brokers have
disposed Of some Of the stock but they are
t,i'iin the hole to the extent Of abouts $500 600,
at D. will uaal ~,
make Leach LOOMS and others pay up.
i'm The suits it will be alleged that the
members Of the syndicate were undis-
Closed principals in the stock washing trans
actions Of the Munroes Up 70 this time
the -yndicators have al denied that they
had any idea that the Munroes. in their
Effort 10 dispose Of the 100000 shares which
the syndicate had agreed to take from the
Montreal and Boston company at 81 a share,
w"r" seeking to create a fictitious value for
the stock by trading on both sides Of the
nl-set At least two members Of the
syndicate have admitted in the bankruptcy
rrorcedings that they assisted in these
ransactions. but have averred that they
really did not suspect that they were in
rolFei IN o stock washing job. Mr.. LOOMS
IN vi leach are stp 20 be put on the
stand
l'w!Il he alleged by the creditors that the
Mlnrnc' were engaged by the syndicate
& market stock for which the syndicate
had nor paid; that the syndicate members
were fully cognizant Of the nature Of the
raneac tions that the Munroes were merely
their agents, and that consequently the
syndicate members are responsible for
Mlnroe Munroe's acts and obligations.
no hearing in the bankruptcy proceed
ing- had 20 be postponed yesterday because
7. Ward head OF the firm Of F. P. Ward
Z Co. who promised several days ago to
produce the firms books showing Ward
Co., dealings with the Munroes in Mon
ireal and Boston, failed to appear.
Mr. Ward announced when last on the
stand that the books we're far away in Pitts
t!rg His counsel, Col, Abe Gruber, APP
Fearing for him at the hearing yesterday,
announced that he had received a tele-
phone message from his client saying that
no vas still in Pittsburs making arrange
fueQLg n ha va 10 brolu Brought IN n his