The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-12
DIGGING into BANK SCANDAL.
WARNER MILLER cor 10000 W.
dB.4T s2.5OON THE $3.50 DAY.
Next Day II Dropped as Low as so Cents
impression Growing That nunroe e.
Munroe's BackerS WIZ Settle-NOth-
Ing Illegal. says Deputy Comptroller.


that the National City Bank, Archibald G.
LOOMS its' second vice-president and
Others whose connection with the stock
washing transactions OF Nunroe Il Munroe
in Montreal and Boston Consolidated has
excited much notice are going to step in
behind the collapsed laundry brokerage
firm and settle with the creditors
Officers Of the National City Bank while
they have shown by the reelection of Mr..
LOOMS as vice president that they are
willing TO stand by him are. il IL known.
thoroughly tired OF the notorieiy which has
been brought on the bank hv he disclosures
regarding it's loans of sou 900 daily for eight
days 10 the haberda sherry concern on IN
Endorsed and unsecured demand notes.
That some orer looking toward a settle
ment Of the creditors claims has recently
been made bv the Munroes s known. but
that il was refused is equally certain The
exnct basis on which the Munroes we're
willing TO settle could not be learned. but
the creditors want dollar FOR dollar
Many reports were circulated IN The
Street Yesterday az TO what had happened
in the bank since Cameron Spear testified
on the stand that he had heard George II
Munroe. head Of the cola psed firm say
that he had arranged with the bank for
Decentralization 10 the extent of 10000.
All these reports agreed that the officers
generally. and Mr. Stillman in particular,
were much wrought mp and, that although
they stood for Mr. Ioomis's reelection
they had been talking TO him. II wos said
that Mr. loomis had actually offered 10
resign before The Meeting of The banks
hoard nf ,lirpCtnra Tuaaday
Disapproval among some Of the stock
holders of the hars was reflected in the
market One specialist in bank and
trust company stocs said that he had had
more National Ctr-Bank stock TO dispose
OF lately than he had had before in several
years The stock last week was quoted
at 3o2 asked and 2s7 bid Shortly before
the closing on ruesdav !, sold at 200.
George H Munroe II ". Besuclerc.
his clerk. and " +. Mitchell q broker all
due Yesterday ds Witnesses had the g1p-
and couldn't come
+. " Curtis. general manager of the
Munroe firm, testified that ex-senator
Warner Miller on Dec, :, the day OF the
failure got from the Munroes 10 900 shares
OF VI. \ b. at s. 20 a share. the price offered
on the curb al that time being $3.50. How
II was that the eN Senator got the stock
az this price Mr. Curtis could not explain.
MIR Miller himself did not care 10 be quoted.
II was said by friend OF his that the Sena-
tor had contracted some time before the
date OF delivery TO take this stock at 8? 90.
This friend did not know what the stock
was bringing on the curb when Senator
Miller made his purchase agreement or
how much Mr. Miller won or lost on the
The stock dropped 10 30
cents on Dec. \
Mr. Miller. il viii be recalled was one Of
the ten prominent New Workers. who
went on George II. Munroes excursion in
a private car to British Columbia Last fall
10 inspect the properties 81 the Montreal
and Boston company and vas known on
the eNcursion a. the godfather Of tho
party
According 10 Curtis. Munroe \ Munroe.
OH the morning Of the day when they re-
fused 10 accept deliveries Dec :. had
$50. 900 shares Of VI 4 r. stock On the
morning Of the Sth there was only ono
share left, and that is all the receiver has
nov. OF the go 900 shares 100 $40 shares,
Curtis says. went 10 brokers on the It'll.
Mr.. Miller's 10000 shares were included
in thls lot a. also were several thousand
shares which we're put up M margin.
OF The remaining l5i s63 shares 1900
shares Curtis testified were turned over
on the night ri the ,th by him 10 Beau
clerc apd the remaining l36.S63 shares,
less the une share which the receiver has
were turned over 10 Secretary Treasurer
Bcese of the underwriting syndicate Oh
an order from Munroe.
OF the 49, 900 shares which Boese took,
he has himsali testified that he j. able 10
identity only So 900 shares as belonging 10
the syndicate and also that he dated re-
ceipts for this stock several days earlier
than the actual transfer
The 500, ON realized by the Munroes
on the day OF Their failure from the sale OF
stock TO brokers Curtis could not account
for except TO saw that il had been used
the same day. The cash assets which
came into the bands Of the receiver 1t was
said amounted 10 only about 5000 and
this. With about 5000 worth Of furniture.
the one share Of NJ. 4 y worth about I
81. an equity in certain amount of stock
put NJ as collateral for loans and an un-
Observation-Disclosures OF shares OF the Marconi I
stock constitute. il was said .
the assets of tine firm against liabilities /
mounting to more than $500 900
MIR Iuiermyer asked the witness whet her I
he didn't know that Frank Brewer head
~ tho brokerage firm OF Frank Brewer 4
70, had put capital into the NuDroe firm
Curtis said he didn't and counsel for the
receiver read an entry ~ $3.50 from the
Munroe books orediting Brewer with such
an interest Curtis then testified that he
had delivered to Brewer on he day of the /
failure $4,000 shares of Montreal and Boston
and received In payment only sl2. 900 The
debit entry on the Muproes' books Of 30 600
shares had been stricken ont and 5000"
lad been substituted.
The books are wrong said Curtis
who authorized the bookkeeper 10 make
he alterations
= don't know replied Curtis
Don't you know that Brewer owes for
he stock
No.
From the Investigation that has been
made Of the Munroes' books 1t is known
row that they actually washed 1900 900
,hares OF Montreal and Boston IL Tho two
months covered by their transa ctions
They actuallv got rid Of about i3p 600
.hares In This time they paid out $1,000
n commissions $4,000 for office expenses
md 1000 for living expenses total Of
Il 40 900.
Speakin Of the testimony that was given
lefore Commissioner Alexander by Cam
IRON Spear that Nunroe had told him he
,ad arranged with the City Bank for over
ratification United States District Attorney
Burnett said yesterday that he would not
lotice II officially. Any action by his Office
le said, would come only on tho complaint
n az the request % the Comptroller Of the
'urrency IN Washington. The annual er-
animation Of the bank by the national
,ank examiners n was said yesterday
would he made in few days President
'tillman has issued orders against the
.Nicara "a Hing ftrrtber for r,t,i1i~e tio,