The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-07
MERE ERROR, SAYS STILLMAN,
CITY BANKS LOANS FOR STOCK
FLASHING A JUNIORS ACT.
Bank President Didn't know About 'Em
1'lll Three Days Before the Clotheslins
Broke-Then the Bank Lent some More


| City Bank, describes the transactions by
which Munroe 4 Munroe. laundry brokers.
obtained from the bank a daily loan OF
10000 for eight days on unindorsed and
unsecured demand notes for the purpose
OF washing hundreds OF thousands OF shares
OF Montreal and Boston Consolidated mining
stock In the curb market, as the act Of a
Junior officer OF that institution. Tho
junior officer is Archibald @ looms. second
vice president OF the bank and leading
member OF the Montreal and Boston Under
writing syndicate Mr.. StilnGn says OF
his act I'VE are oil liable to mako mistakes
The city Banks president after this first
pubic utterance from him regarding the
scandal in which the bank finds itself as 4
result OF its connection, through Mr. I.oomis.
with the stock washing transaction, OF
! Munroe a MUnroe had Weep esdant
l.oomis in private conference With him at
the bank. and rumofs few IN Wall Stree, al
to what is likely to happen 20 Mr. LOOMS
Nearly all the reports had it that Mr..
! locmis would be asked 10 resign, that this
National City Bank finding that full details
concerning the banks unsecured loans Ia
the laundry brokerswere bound to be made
public. would surely select some person
on whom II could pnblicly place the re-
sponsibility- the Streets great curiosity
seemed TO be as TO who was Ia be the goat
Whether or not Mr. LOOMS does not have
altogether too accurate knowledge Of tho
City Bank E transactions to serve unwillingly
in this humble capacity was question
widely discussed
Mr.. Stllman began the day with the in,or-
view in which he designated the loaning Of
the money to the former haberdashery out
fit as the act Of a junior officer He said
further that he knew nothing OF the trans
actions between the bank and Munros T.
Munroe or Of Mr.. Loomis's interest In Mon
treal and Boston until three days before the
failure OF Munroe Il Siunroe. He did not
explain how il was that the National City
Bank, after Mr.. Stllman got his Information
of the transactions lent the Munroes $4,000
$685. 900 daily for three days-on the same
sort Of notes on which they had been OBJ
tanning the money prior TO that time.
Il know .pSactically nothing regarding
the operations Of Munroe & Munvoe and
others rs developed in the bankruptcy pro-
ceedBgs | have not read the papers to-
daw% said Mr.. Stlman when asked about
tE loans.
/"Are you aware OF the charges that haya
been made against the National City Bank
as a result of the testimony taken before
Commissioner Alexander he was asked
Il have heard something about it, wAs
the reply.
How long have you been aware tifat3.r
Loomis was one OF the leading members
OF the syndicate concerned in Munroe Il
Munroe's disposal OF tho Montreal and
Boston stook?'
Il knew nothing of thess transactions
until three days before the failure
sYou we're entirely in the dark until
them
Yes
1t is charged that MuSroe Il Munros
obtained from the National City Bank,
through Mr.. LOOMS, 900 a day for
eight days without putting up any collateral.
Is that true?'
Perhaps that was an error Of judg-
ment We are all liable TO make mis-
takes
But you say you knew nothing Of this?'
1t was the act Of junior officer
"You did not know Mr. LOOMS was
doing this2-
Il did not. We are all liable to make
mistakes sometimes
Mr. Sdllman it is said that the Ma
tional City Bank makes practice of over
certifying checks Is this tr,Ie>'
81 want TO tell you said Mr. Stllman.
that the National City Bank is conducted
strictly on business principles and that it
oes not overoertify checks. That is all
have TO ray in the matter
Reporters sought Mr.. LOOMS after HIS
conference with Mr.. Stllman. There were
several reporters in the party who wanted
10 see him Trey we're told to wait Mr.
LOOMS was visible, seated at his desk.
A clerk carried the message to him.
Mr.. LOOMS quickly reached for his hat and
coat and disappeared behind the heavy
glass partition separating the office from
The reception room Then the reporters
we're invited In.
Mr. LOOMS Mr. LOOMS murmured tho
bank official. who received them. -Oh,
YOU wanted 10 see Mr. LOOMS. am sorry,
put he is not in, He has gone for the day
But Mr. LOOMS was sitting at his desk
only few seconds ago"
Mr. LOOMS? At his desk No, thins
lot glanoing at the second ce-president's
leak. which was fully two feet away. Nd
am sure | would have seen him
One Of the clerks said that it was true
hat Mr.. LOOMS had just gone out. Further
violence as to the accuracy Of the reporters
'ision was supplied later by an employee
n the building who saw him going through
ne back door into William street
The Official who hadn't seen Mr.. Loomis
iadn't heard anything about the report
hat he might be asked TO resign. and said
rankly he did not believe the report From
i'm came the information that the bank
ghen il advanced 10000 daily TO Munroe
Munroe took practically no rink. this
otwit hstanding the fact that George H.
iunroe the leading spirit in the finn, has
efused to testify in the bankruptcy pro-
eedings that the firm had cash capital
more than s., 900 when 1t started 10 trade
! Montreal and Boston six months ago.
The bank. said it's official mouthplece.
new that Il would lose nothing on the
was, in fact, certain OF this.
When asked whether from his statement
was 10 be implied that Second Vice.
resident LOOMS was behind the Mum
pes notes although he had not Endorsed
hem the official refused TO answer. This
iii be one OF the points which counsel
,r the receiver will try TO ascertain when