The times. [volume] (Richmond, Va.) 1890-1903, 1896-12-31
MIR. YOUNG EXPELLED.
THECH1KGE REdLLYAGATNST TIL
FIRM or n. u. CCTHBERT& co.
Accused OF Employing Bucket shop'
Methods-Mr. Cuthbert says the "c'''"
WA. Unjust-wiiI vindicate Firm

NEW YORK. Dec. @.-William bucha
Young was expelled from the New YORK
Stock Exchange by formal vote OF inc
Governing Committee at the conclusion
of a session which lasted from $3.50 until
1880 o'clock tonight. Forty out of forty
two members OF the committee were pres
ent and the vote was said to have been
unanimous. Tie charge was fraud.
AGAINST CUTHBERT IL co.
The charge was in reality against the
firm of Il. b. Cuthbert & Co., stock brok-
ers. at no. 30 Broad street. The Stock
Exchange authorities dealt with the mem
Der Of the firm who was a member Of
the Exchange. Mr.. Young was the part
ner in the firm who belonged to the Tx
change. He withdrew from tho firm on
December 22d, but that did not relieve
him from the charge.
The original complaint against Cuth-
bert d Co. was maze three months ago.
y special committee from the Governing
Committee was appointed TO investigate
the business methods OF the firm. The
committee suspected Cuthbert ~ co. OF
employing bucket-shop methods, or in
other words, Of reporting TO customers
that they had purchased and sold stocks
according TO orders when i'm fact they
had made no transactions whatever The
committee discovered tho evidence that
an arrangement had been made with ia
cob Kirkner. "A broker of No. q New
street, and a member of the Exchange.
whereby Cuthbert * Co. I'm rendering
statements to customers were allowed to
use his name as a broker whom they had
sold To Or bought stocks from. To deter
mine whether such an arrangement eX-
listed between Cuthbcrt q Co, and Mr..
kirkncr. q demand was made upon Mr..
kirkner that he show the entries i'm his
books and vouchers covering a particu-
lar transaction alleged TO have been had
with Cuthbert q CO. He refused TO open
his books 10 the Investigating Commit
tee. For his refusal 10 do so. which was
declared TO be detrimental 10 the inter
ests and welfare OF the Exchange" the
Governing Committee suspended him
from the Exchange for one year.
THE CASE TRIED.
I'm meeting the allegations against
them. Cuthbert q Co engaged Joseph IL
Choate Edward Lauterbach and JCha
r. -. passos as counsel. The special
Investigating Committee made a case
against Cuthbort a Co. on a complaint
by one u. X. Stewart that they had
bucketed an order which he had giveg
Thorn on August 18th last The order was
TO sell short nifty shares of Chicago.
Burlington and quincy railroad stock on
margin. They reported 10 Mr. Stewart
that they had sold the stock TO Mr..
Kirkner The Investigating Committee
found that tho sale was never milde.
Mr. Stewart gave an order TO cover his
short sale. Cuthbert & Co. charged
commission Of one-eighth Of one per cent.
for selling and one-eighth for buying the
stock. and also interest on the stock which
was supposed 10 be- borrowed while Mr..
Stewart WAS short Of the stock.
Chicago Burlington and Quincy stock
at this time had a sharp rise and Mr..
Stewards transaction showed a loss The
loss. as well as the commission. was so
much gain TO Cuthbert & Co. according
10 the investigating committees findings.
Mr.. Young appeared before the Govern
ing Committee and explained that when
the stock was sold short for Mr. Stewart
II was loaned TO him. and when n was
bought IL was taken back. The expf,na-
ton WAS not considered satisfactory a
number Of witnesses against Cuthbert
plants against the firm. hut the expulsion
of Mr.. Young made II needless 10 pursue
the Investigation Of them.
Mr. Young was one OF the oldest uicm-
hers Of the exchange in length OF MEM
bcrship. lie Joined May :. 1869
MR. CUTHBERT'S STATEMENT.
Mr. f. b. Cuthbert this evening issued
a statement. in which he said
1.-THE action OF the Governing Commit
tee OF the Stock Exchange against Mr.
William Euclid Young, lately paitner
OF our firm. is. in our opinion. UNJUST 10
the utmost degree. Mr.. Young has been
tried by his accusers. For weeks come
OF the ablest men I'm Wall street have
been actively engaged in preparing
ease against him. Mr.. Young summoned
before the Governing Committee sitting
both as accl.scrs and Judges. has had
TO present his defence unaided.
1--WE beg to assure the public that OK
5orte trials shall not be permitted 10
cast n lasting dscredit upon any OF our
methods In due season and I'm proper
ways we shall establish a vindication that
no man can questlon-however bitter a
business rival he may be"