Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1905-02-17

tract was entered into by which the per-
sons who were to underwrite 1t we're
to get the stock at one dollar per share.
Various persons went into the syndi-
cate, with the provision that they were
to take or underwrite certain number
of shares, paying one dollar per share,
20 per cent. of the purchase price, at
the outset and the balance within GER
tain specified times.
The understanding was, however,
that those who had underwrltten the
stock would not pay the one-dollar price
unless the money became necessary for
the development of the mining property,
the promotion of stock sales, and so on.
That is, while they agreed to pay GER
tain amount should the exigency arise, if
it did not arise they would be so much
more Ito the good"
Resort to Washing.
Brokers who were members of the ex-
change were readily found who were
willing to dispose of a certain number of
shares month, and what they received
was to go 60 per cent. to them and 40
| per cent. to those who had underwritten
the stock in the beginning. 1t was then
| decided that in order to sell the stock
at a price above one dollar per share,
it would be necessary to resort to the
process known as washing"
In other words, they agreed to them
selves purchase the stock at high fig
ure, in order to set that as the market
rate. Par being five dollars, and they
having obtained it at one dollar, they
arranged for street sales at $3.50
and SO, themselves buying at that
rate, in order to show that the stock
was active and to induce the public to
buy at the same price.
In point of fact, so as to make a show
ing of large sales, those who were sell
ing the stock were themselves bidding
on it, all the transactions being credited
on the books. 1t has been shown that
lured by this system, one outsider
bought $4,000 shares, at from 81. 90 to So
In disposing of the stock, Munroe
Munroe washed" about 5000 900 shares
or more in the process of getting rid ol
about 100000 shares, for which they are
said to have paid the company not more
than $13O,0OO in all. The brokerage OIL
raising this s130,O0O is more than $1O0,
900. because they had to pay commits,
sions on the whole 100000 shares.
How Sales We're Made.
The Munroes would give orders to Ger.
tain brokers to sell and to other broker:
to buy. When they sold they would
get check the following morning, anC
then they would use that check, turning
it over to the brokers they had employed
to buy. The result was that Decembel
Z, the day of the failure, they received
checks in payment for the stock solC
the day before, and they used thes
checks to pay for stock they had bough
the day before, but when it came t.
their paying for the stock they bough
on December Z, they had not the money
the endless chain" broke, the Munroe
went into bankruptcy, and all these per
sons are creditors for the stock.
Before this situation was reached
however, the Munroes had their day Q
prosperity, or, rather, George did, for
is the head and front of the combina
tion, even though his brother was sen
ior member of the firm. When the
came here they were aggressive and en-
thusiastic young fellows, of the typ
. that is liked in Wall street, and the
quickly made friends. Mr.. Loomis wa
one of these, and Leach another, an
both of these are names to conjure wit
in financial circles. Loomis becam
, chairman of the syndicate's executiv
: committee, and it was through his In
tluence that the loans were obtaine
from the National City bank.
Reputed Millionaire.
: The friendship of men like thes
( brought other friends to the brother
and before long George Munroe wa
reputed to be millionaire. 1t Is sal
he lived at the rate of from $50 900 I
100000 year, this young man who onl
little while before had been a habel
dasher. He had luxurious home O
East Fifty-seventh street, and anothe
at Southampton, l.. l., and often he o.
cupied a suite at the Waldorf-Astoria.
A Costly Junket.
He always did things in lavish fasl
ion. When Montreal &c Boston We
at the height of it's exploitation, Munro
thought it would be good plan to Il
those whom he was trying to interest
it see the actual mine property. NOV
1t lies away off in British Columbia, c
the foothills of the Selkirks, and it COS
money to take a party out there. L
never considered the expense. A pr
vate car was chartered, loaded wit
everything Of the best in the commissal
line, and the junketers started ava
George could not go, but Alexander toe
charge.
The party included senators, banker
politicians, and newspaper men-ever
body, in fact, who might be of some a
in advertising the mine.
They stopped at various cities on Il
| WaV ont and had in1lv time