New-York tribune., 1896-12-31
w. EUCLID YOUNG EXPELLED
GOVERNORS OF THE STOCK EXCHANGE
TAKE ACTION

TAKE ACTION
HE WAS THE EXCHANGE MEMBER OF f. b. cUTH-
FRAUD HAD BEEN BROUGHT AND
FOUND TO BE TRUE AFTER
AN INV EsTIGATIoN.
William Euclid Young was expelled from the
New-York Stock Exchange by formal vote OF the
Governing Committee at the close of a session
which lasted from 330 yesterday afternoon until
1:30 o'clccl: last night. Forty out of forty
two members Of the committee were present and
the vote said TO have been unanimous The
charge fraud and the committees acton
was based on Section OF Article IL OF the Con-
situton of the Exchange, which reads: should
any member be guilty Of fraud. OF when the
Governing Committee shall be the judge. he
shall. upon conviction thereof by vote or two
thirds Of the members OF said committee present
be declared by the president to be expelled. ana
his membership shall be disposed Of by the Com
mittee on Admissions
The charge was in reality against the firm OF
e. b. Cuthbert & Co. stock brokers. at No 30
Broad-st The Stock Exchange authorities could
not deal with the firm. but only with the member
OF the firm who member of the Exchange
Mr. Young was the partner who belonged to the
Exchange. He withdrew from the firm on De-
cember ~. but that did not relieve him from the
charge 1t was said the purpose OF his with
drawal was to help his case before the Govern
ing Committee.
THE INVESTIGATING COMMITTEE.
The original complaint against Cuthbert & Co.
was made three months ago. The following specia
commit 81 was appointed 10 investigate the bual-
ness methods Of the firm: Rudolph Keppler. chair
man; William II. Granbery and James McGov-
ern The committee suspected Cuthbert Il CO.
OF employing buckct-shop methods, or, In other
words Of reporting 10 customers that they had
nurchased and sold stocks according to orders
when. in fact they had made no TRANSACTIONS
whatever. The committee discovered evidence
that an arrangement had been made with jacob
Kirkner n broker. Mt No. - New-st.. and
member of the Exchange. whereby Cuthper' q
Co in 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 existed be-
tween Cuthbert e. Co. and Mr. Krkner. de-
mand was made upon Mr.. Kirkner that he show
the entries in his books and vouchers covering
particular transaction alleged 10 have been had
with Cuthbert & Co. Acting. as he SAID. upon
the advice OF counsel. he refused to oper MS
refusal TO do so. which was declared 10 De
detrimental to The interest and welfare of tns
Exchange" the Governing Committee. by a
unanimous vote at meeting on Decemper ~
suspended him from ne Exchange for one year
Mr. Kirkner who j. ned the Exchange August
81. 1876. was formerly prominent speculator. .
but for the last few years had not been very
conspicuous He was a. one time mempeT OF
the Ncw-Jersey State Senate. He lives ut
PlainfieId " J. He began life as a schoolmaster
THE STEWART TRANSACTION.
In meeting the allegations against them Cuth-
bert Co. engaged counsel in the persons or
Joseph II. Choate. Edward Lauterbach and John
r. Dos Pass9s. The special Investigating Com
mittee finally made a case agains; Cuthbert Il
Co on complaint by one u. y. Stewart that they
had bucireted order which he had given them
or August 2S last. The order was to sell snort
fifty shares Of Chicago. Burlington ana Cu,hcy
Railroad stock on margin Ihey reported ~
Mr. Stewart that they had sold the STOCK 10 VI
Kirkner. The Investigating Committee found
that the sale never made. ana. or COURSE
there was no purchase, when Mr. Stewart gave
an order to cover his short sale. Cutnpc'l
Co charged n commission Of one-eghth OF per
cent for selling and one-eighth for buylng the
stock and also interes. on the stock when was
supposed to be borrowed while Mr. stewart vas
short OF the stock. Chicago Burlington ana
Quincy stock at this time had sharp rlSS' an anu
MIR Stewart's transaction showed loss. The
loss as well the commission. was so muc"
gain to Cuthbert & CO., according 10 'he III
vestigating Committees finding.
Mr. Young appeared before the Governing
Committee and explained that when the s'och
was sold short for Mr. Stewart 1t was ioaheu ~
him. and W hen 1t was bought " was taken paCh
The exclamation was not considered Satisfactory
A number Of witnesses against Cuthpert 90
wera heard. The Stewart transaction vas ~,
ported TO the quotation reporter on the moor oi
the Stock Exchange having been regularly
made There were other complaints against III.
firm but the expulsion of Mr.. Young ,i' I,aue II
needless 20 PURSUE the investigation OF tne"'
Mr. Young was one Of the oldest members OF
the Exchange in length of membership. lie
ioined Nav s. 1860 Expulsons from the stock
Exchange have been few In number TWO years
ago John r. Manning was expelled for remov-
ing Endorsements from the backs of BONDS with
chemicals 40 that the bonds could not be traced
The prec ding expulsion and the most famous
one in the histor- OF the Exchange was that Oh
William J. Hutchinson hfteen years ago; VIII re
was found guilty OF cheating a customer, VIII,
lam Duf, of Boston who effected the celebrated
corner in Hannibal and ST Joseph Rahroao
stock - c..,.
bert g. Co are Edward B. Cuthbert and William
Euclid Young. jr. Since the senior NJ. fouhs >
withdrawal from the firm II mas nau no o. 81" IT,
Exchange member. and no member OF tie FIX
change will be permitted by the GoTernne
Committe. to Join the firm The hrn which
was organized on October - i%'4 OCCUPIES ,,,e
entire fourth floor Of the new Johnston Building
lis Offices are among the handsomest In the
wall Street district. The finn has twenty
branch Offices in New-Yorl and throughout the
country. Mr. Cuthbert was formerly cotton
ulanter in Tennessee Then he became specu-
lator in Wall Street and on inheriting fortune
formed his brokerage firm. Previous to be-
coming a partner of Mr.. CuthbeTt Mr. Young
sr was a partner In the firm or seymour
Brothers & Young. Mr.. Cuthbert was a GUS
toner of this firm w. c. Cuthbert a younger
brothe- Of +. Il Cuthbert joined the Stock FIX
change ON October Il. 1S9j. and until December
I when he opened an Office Of his own at No.
Exchange Court. made his headquarters with f.
b. Cuthbert g. Co.
f.. Il. Cuthbert said last night ne sct,on OF
tho coverning Committee OF the Stock Exchange
against William Euclid Young Is IN our opinion
unjust to the utmost degree. Mr.. Young has
been tried by his accusers Practically his trial