The sun., 1905-01-31
100 PER CENT. LAUNDRY LOAN.
WHILE IIS CREDIT GAS SO GOOD
At TIE CITY BiNh
It Was Raising Additional Money at High
Prices Outslde-practicnliy Certain
Now Tint Lo0mis Leach and Dave
Buckln VIII Testlfy-NO Settlement.

George II. Munroe. head Of the laundry
1 brokerage firm OF Mlnroe & Munroe. told
I on the witness stand in the bankruptcy
/ proceedings aguinst the firm yesterday OF
another source besides the National City
/ Bank from which the haberdasheiy outfit
[ obtained money with which 10 carry on its
| enormous transactions i'm Montreal and
Boston Consolidated on the Wall Street
curb.
He testified that he obtained from F. V.
Dare Bro, commission merchants,
2ll Produce Exchange. in the period covered
by the transactions two demand loan s
amounting TO $1,000 on one Of which he
paid tho modest interest ratio OF 100 per
cent. year. This was on a loan OF SO. coo.
Besides an original commission OF about
si5O-which Dare says ne didn't get
Munroe said that he paid the head Of the
firm. i. v Dare. $50 a day for twenty days
and TO an Intermediary s15 day, in all $50
a day, for the use of the money.
The intermediary was William s. Han
ford. a curb broker and younger brother
of Solomon Hnnford. member Of the law
firm of Choate Hanford & Larocque. Solo
mon Hanford is acting as counsel in the
present proceedings for Frank Brewer
the broker who traded on both sides OF the
market for the Munroes in NJ. Il B., and
who started up in business at the Munroes'
suggestion with Il partner he has never
seen. Hanford appeared Yesterday for
+. V. Dare also
Dare denied all knowledge Of the SIS
a day that went TO Hhnford. but he would
not say that Hanford did have an interest
In the money loaned to the Munroes, Nr.
Dare. on the second loan. which was for
5000, admitted that he got 90 per cent. over
and above regular interest or his money,
Samuel Untermyer examined Munroe.
@. Is f. not n fact that. for this loan Of
$4,000. continued from Nov. II for twenty
days. you paid. besides deduction OF S6s IS
from the original amount. $500 to Dare and
$500 to an Intermediary. making 1900 paid for
interest. and In all 1888 rs for the twenty day
loan; A. | think 30.
O. How did you expect TO do business
paying interest at the rate OF 100 per cent. a
Year, A. Ii was a daily loan.
O. Did anybody else ever charge you such
exorbitant rates? A. ] don't think 80.
o. You had no note. memorandum or REQ
ord in writing Of this transaction! A. No.
Mr. Munroe testified that he had had a
number of other transactions with Dare &
Bro. through Frank Brewer who, he said.
bought and sold options for him That ~,
he would sell Dare 4 Bro, q certain number
Of shares Of Montreal and Boston Consoi-
dated. usually a blocE of 10 COO shares. and
agree in advance to buy It back al the price
Dare 4 Bro. paid minus the commission
For instance on Sept. 49, he sold the Dares
10 600 shares ut so cents under contract to
buy il back Mt 81 cents in thirty days. Tho
Dares paid him on the deal $46s7.5O. He
was To take the stock back fiat at s. 600.
the Dares pocketing on the thirty day
transaction $3.50, Mr.. lntermyer told
Munroe that he Thought that was nothing
less than loan OF money, with time pur-
chase to cover it, There were six such
transactions between the Munroes and the
Dares from September to the day OF the
failure. Dec, S.N Z ~
within sixty days Of the failure" asked
Mr.. Cntermyer. To this Munroe's counsel
objected
Il should think ret2rted Mr.. Inter
myer, that the question would be moro
OF isctionable to Mr.. Dare than to Munroe.
q DO you know how much YOU urid to
Dare In the sixty days immedlltely pre-
cedinS the failure. over and above the per
cent. rate on these transactions' No;
q. When did Dare begin cSaCt.uG these
large. amounts Answer objected TO by
Dare'5 counsel
o Had gou ever had any previous demand
loHrS on such basis az thi7t 4. No.
Mr. Dare testified that his firm was a
member OF the Produce Exchange and that
he lived in Brooklyn The firm sometimes
lent money. There was, he said, no account
with the Munroes appearing in his books.
The transactions which he had had with
them We're entered under the heading Joint
account" Hanford was interested in this
account He didn't know why Munroe'-
name had been omitted from the book and
It didn't strike him exactly right that II
should be.
o. Don, you know that at the legal inter
est Il per cent the interes, which you re-
ceived on the 5000 demand note for nine
days would cover tho loan Tor six monthsY
A. | wouldn't bc surprised.
q. Would anything surprise Nou: \
ness under those conditions, 4 His husi-
ness wasnr sought by US. We turned down
q How did you think he would be able 10
live 4 Each man has TO look after him
self az far a. he can see
Mr. Dare admitted that he had bought
stock from the Munroes under contract TO
sell il back to them at a profit but he did
not think that this was TO cover loan.
O. Don't you understand that that il one
Of the usual forms OF covering usury? 4 |
wouldn't do.that 4 know It understand
want on a demand loan
. Yes. but don't YOU know you havo to
have Il in writing A. No.
per cent. on these kinds Of transactions?
A. Stock Exchange houses lend money at
100 per cent.
Dare said that II did seem funny that he
should be buying Montreal and Boston for
so cents a share when it was bringing 3l.75
on the curb.
WELL" said Mr., Unteru,yer, didn't II
seem still more funny that you should sell
Il to the Munroes at 80 cents under the
same conditions?"
Not at all replied the witness.
On tho day Of the failure, Dare testified,
he had 1900 shares OF Montreal and Boston.
including that which he had received from
the Munroes as collateral for the demand
note loans, and the shares bought from
them under contract to be taken back at
50 cents. He had he said, sold out all but
1900 shares. When Mr. Untermyer asked
him to turn over TO the receiver the differ
ence batween the amount which the stock
would have brought at so cents and what
he actually got for il he refused.
The next hearing will be on 1hursday.
II is practically certain now that there
will be no settlement of the Creditors' claims
out of court. and that Loomis, Leach and
Dave Bucklin will be put on the stand.
Bucklin was in Commissioner Alexander 4
Office yesterday but was not called.
MAYOR REVIEWS THE 18TH.