New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-10-16
TO LOOK INTO ITS DEALINGS.
AN INVESTIGATION OF f. r. CUTHBERT
CO.
ACCUSATIONS AGAINST THE METHODS OF THE
wEII-KNOwN STOCK BROKERAGE FIRM.


wEII-KNOwN STOCK BROKERAGE FIRM.
The Governing Committee OF the Ncw-Hork
Stock Exchange. at a meeting on Wednesday after
noon. appointed a specal committee. consisting OF
Rudolph Keppler. william II. Granbery and James
McGovern. to investigate the business methods Of
=. b. Cuthbert & CO.. stock brokers. at No. IS
Broadway.
Francis l.. Eames president Of the Stock Ex-
change asked yesterday If the committee was
appointed to investigate rumors that the firm had
split commissions or. in other words had exc
cu,cd orders for commissions less than those pre-
scrbed by the constitution of the Exchange. and
also that IT had 'bucketed' much OF its business
by which meant that IT had not executed orders
but had itself taken the risk in transactions ap
posite of its customers. Mr.. Eames said the En-
change never investigated rumors, leaving the in
ference that specific charges had been preferred
against Cuthbert a. Co.
+. b. Cuthbert, the head OF the firm. said the
accusations against the firm came surprise
1t was engsndered by the fact that the firm had
some more business than most of Its neighbors
1t had really more business than IL could attend to-
The firm had conducted business in regular form
and willing to he investigated. 1t would open
its books to the inspection of the Stock Exchange
committee
The firm OF T.. r. Cuthber. e. Co. consists of T.
b. Cuthbert. William Euclid Young. William Eu-
cd Young. Jr.. and J. W. Fox. The Board mem
ber" is William Euclid Young. sr. who has be-
longed to the Stock Exchange since May S. 1869
There is no other Stock Exchange member in the
firm. but Mr.. Cuthberts younger brother W. G.
Cuthbert, belongs TO the Exchange. He Joined Oc-
tober l.. 1885 He makes his headquarters in the
Offices Of the firm, and executes orders on the
Exchange for II.
The firm formed years ago. Mr.. Cuth-
bert had for some time previously been
tensiVe operator In the stock market. Before
taking a hand in speculation he cotton
planter on IL large scale i'll Tennessee. He s "A
grandson of +. K Lassack, now dead. who was
Newly ork fur dealer. and who time In
partnership with the first John Jacob Astor. Mr..
Lassack. who lived at Dobbs Ferry. left fortune
OF S.VcVV or A,CN"". good portion of which was
devised TO Mr.. Cuhberts mother. When the firm
began business it consisted of Mr. Cuthbert and
Mr.. Young, sr. who has long been known for his
interest In religious work. Subsequently MIR.
Youngs son was taken Into the firm. and later Mr..
Fox. who was in charge OF the firms Washington
office was admitted.
The capital rating of the firm of Cuthber, & co.
when 1t started was sl5Cvoo The trm ,@ deals no not
1t has had wonderful prosperity Al first II had a
second floor Office at Exchange Place and Exchange
Broadway and the basencn, doors at Nos. 81 and
56 Broadway. These large quarters not proving
Of the new sixtecn-story Johnston Building, In
in 5he wal Srne d,rct rg he rental Is
stood TO be sll.oco year. These quarters are now
nile the mature OF the allegations against Cuth-
bert & Co. canno, he stated, it may be said that
offence by the. stock Exchange. II may he pun
tshcd by expulsion. In the past the nrst orcnc-
has generally been punished by suspension for hvc
years "BucketnC'' business is regarded as an
equally fragrant offence and the punishment may
be equally severe. .
The Stock Exchange deal only with Mt
Young sr he il the only member of the nrm
who Is a member OF the Exchange. 1t could ho"
ever. direct its other members not 10 enter into >
business partnership with Mr.. Cuihbert or any o.
his present partners
The old brokerage concerns with large resource.
and facilities have not been able 10 understand
why Cuthbert x co. 50 far surpassed them In Sc
curing business. Cuthbert co. have sixteen
branch Offices taking In the chief cities east OF the
Mississippi River. and special telegraph wires fui
10 all Of these.
A short time ago Mr. Cuthbert caused the man
apcr of n financial news agency in Boston to be
arrested for circulating report that his nrm cod
no, repay some OF the loans which II nad secured
on call and that the collateral h"id against 'hese
loans had been sold out