New-York tribune., 1905-01-14
A. G. LOOMS RESIGNS.
LEAVES THE CITY BANK.
Development of the Munroe {
Munroe Investigation.

Archibald G. Loomis, who has recently been
figuring so conspicuously in the revelations of
the methods by which the stock of the Montreal
and Boston Consolidated Mining and Smelling
Company washed" in the curb market. and
who a member of the underwriting syndi-
cate which was interested with the firm of Nun
roe & Munroe alleged to be bankrupt in
the advance of that stock. has resigned as
director and as president of the National
City Bank. 1t is understood that at the next
meeting of the banks board of directors. on
Tuesday. the resignation win be accepted. The
letter of resignation is as follows:
To the Board OF Directors. of the National City
Bank of New York.
Gentlemen: beg to tender my resignation as
vice-president and director of this bank.
After six years of active work in the bank
during which period its business has largely
increased and its honorable and commanding
position has been steadily maintained. it is with
regret that sever my relations with you. am
however, led to do this because my continuance
with the bank exposes il 10 criticism. and at
tack which should be personal to myself. as
no officer or individual connected with the bank
except myself had anything whatever to do with
the credit which was extended to Munroe q
Munroe. The amounts that were advanced to
them were loaned in the ordinary course of busi-
ness and at all times 1 had ample collateral
from them to secure their loans. l believed at
the time, and still believe. that the property of
the Boston and Montreal Copper Company is
any kind in the loans made to them
I have been engaged in the banking business
for upward of forty years. during which time
think may say that my record will speak for
itself and not to my disparagement. II there
has been any lack of judgment in these matters
it is but proper that alone should suffer the
criticism.
My greatest satisfaction at the present mo-
merit is the confidence wESeh has been shown
me by my reelection as director and vice
president of the bank. 1t would, however. be
ungenerous on my part TO take advantage of
this signal proof Of your appreciation of what
I may have been able to do for the bank in the
past.
I earnestly request that you will take inme-
diate action upon my resignation. Yours sim
cerely. A. G. LOOMS.
Of1cials of the bank decline TO make any COM
ment Mr.. Loomis's action. When the letter
of resignation was read to Samuel Untermyer,
counsel for the creditors of Munroe & Munroe,
Mr.. Untermyer said that he very much regretted
the outcome of the investigation so far as Mr.
Loomis was concerned. He added that the con-
nection of the City Bank with the transactions
of Munroe & Munroe had been misunderstood.
1t had never been charged in the proceedings or
in any testimony that the City Bank had been
guilty of violation of law The only claim
made against it arose from the fact that it's debt
of $50, 600 had been repaid to it on the eve of
the failure of Munroe & Munroe, and this would
be claimed to be a preferred payment within the
such.
The resignation of Mr.. Loomis from the Ma
tional City Bank is development from the in
vestigation which Mr.. Unterneyer has been
conducting before United States Commissioner
Alexander into the manipulation by Mum
roe & Munroe of the Montreal and Boston stock.
According to testimony brought out in the
course of the investigation. syndicate in which
Mr. Loomis and A. B. Leach were members
quired 100000 shares of the stock for which
they agreed to pay the company at least $780,
600 in money. The larger part Of this money
was required to pay for the properties of the
Montreal and Boston company. Part of these
properties. and the most valuable OF them, ac-
cording to the testimony. are not yet paid for.
The syndicate in order TO get the money with
which to pay for the properties and to supply
working capital had employed Munroe & Mum
roe to sell the stock for them under arrange
ment by which everything over 81 share real
ICED for the stock TO be divided between
the syndicate and the Munroes. In the so-called
wash" transactions more than three million
shares were dealt in on the curb but all the
money obtained from these dealings and turned
over TO the syndicate was S139.000. A man
familiar with the case said yesterday that IT
had cost about 100000 to get this $4,000 OF
money. of which about 800 000N had been ex-
pended for commissions and $4,000 for Office
expenses of the Murroes for three months.
Mr. Looms was elected a vice president Of
the National City Bank on March 2S. 1890
succeeding A B. Hepburn. who had few weeks
previously been elected vice-president of the
Chase National Bank. Mr.. Loonis resigned the
presidency of the lEtna National Bank of Hart
ford to take the National City Bank vice-prssi-
dency.