New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-02-19
NOT WASH SALES THEY SAY
SETTLEMENT BY MUNROE.S
Bought TO Offset The Lascsom Scare.
They Declare.

The stock brokerage firm OF Munroe & Munroe
who came into Wall Street prominence about two
months ago. when the speculative movement in
Montreal and Boston stock collapsed and whose
connection with that speculation was extensively
inquired into in the bankruptcy proceedings. which
we're discontinued a few DAYS ago the petition in
bankruptcy against the firm being dismissed yes
terday. issued = long statement giving their side
OF he case. The statement in part follows:
In the settlement JUST made with our creditors
We voluntarily surrendered our interest in and to
oreoitors Claims and % the balance due the
i this Settlement have e bea s haIe peen incudeI
friendly TO Us and ny ourselves. and not by new
This Settlement in al essential particulars is
the same that verbally proposed by us TO our
,Teoite , on me evening OF December save and
tiou we held ourselves liable for the payment of
Montreal and Boston STOCK as eollaters s efns
The Montreal and Boston soct aofted 70 sGoeP n
full payment. releasing us absolutely from further
a syndicsite- for six months TO accept cash in
A statement has recently been made in which it
WIS said that .apparently' we had no assets,
s6d spoed 81 6Sse he eats IF 9 III aS ed
our SUSPENSION at a meeting OF the creditors We
made statement. in which said: In the mean
the purchase Of large block Of the STOCK by cer
an FJrons infereSts ana u Goes not seem i'm
next few days, in which event brokers and others
The real object Of subsequent proceedings was
scknov lodged 20 he in possession but by extra
judicial and ex parte proceedings TO compel the
,hnre6y enforce immediate payment of all claims IN
purpose Is evidenced by the settlement subsequent
" made.
The statement goes on 10 tell the history OF the
financing OF the Montreal and Boston enterprise
and the attempts TO put its stocks the market
The statement denies that il was represented that
the properties were fully paid FOR. The plan of
providing capital 10 complete the purchase by the
sale Of underwriters stock. the statement says is
IN exact accord with modern financial methods
The mon who have taken charge Of the prop
erues II Is stated have acted not from motives of
philanthropy. but because they the value
hind what the firm was trying sell TO The public
Speaking of the methods of selling the stock. the
statement says:
These methods have been severely criticised and
We have been charged with stock Washing and
various other offences. The majority of brokers who
shares solicited the privilege. Many others sought
70 anticipate The successful fruiton Of our plans
~ ne Speculators who had bought the shares at
nroflLs by sales At the higher figures, and when
Inent ~ November said that there were "coppers
"1'eh II would be Ike finding money 10 sell short
they CRASHED the opportunity. and there was an
5yaIaJ1ehe Of selling orders all copper stocks.
II became necessary for US IN order TO support the
Of the stocks previously sold low figures the
o1deavor TO stem the tide Of this selling, gave
orders IN purchase at increasing prices The hope
was vain. and when the 9Th OF December da wned
With another broadside from Lawson. the market
FOR general securities fell to twenty points, and
the public practically Invested Itself of copper
stocks We still optimistic. and supported the
market the fu limit Of resources We found.
however, that We had overestimated our strength.
We have been charged with washing stocks:
v1ic In the language Of the Street is intended TO
describe bogus sale Of stock in order TO create
market price Of which the public cannot avail itself
a wash sale means transaction wherein the
orders 10 sell and the orders TO buy emanste from
.
the brokers who execute the orders All the trans
actions OF Munroe & MuEToe, as was proven in
.nalrt vere bona fde transactions in the open mar
ket upon which commissions were paid. and the
stock actually delivered Therefore the term wash
sSlcs- does apply