The evening times., 1898-10-06
SCANDAL IN WALL Street
A Leading Broker Accused of
Undignified Methods.
COMMISSION TO A DRUMMER
Julius Newton. Formerly n Million
nirc Operator in the Street, MEI..
Charges Against Clarence House,
man, Nhe Is the Representative
of j. Pierpcnt Morgan.

New York, Oct. 6.-Irf the singular Wall
street scandal. of which the leading fig
ure is a one-time millionaire and partner
Oh lsidore Wormser. a loaded pistol is
associated with demand for 81, ,000
Ihat, however, is one of the hearsay
parts of the story. Clarence J. Houseman
who is J. Pierpont Morgan's broker said
yesterday that Julius Newton formerly a
millionaire operator, had presented during
the afternoon a loaded pistol at ths head
or Broker Wolf of Kuhn, Loeb & Co. and
asked for $1,000. Mr. Houseman further
said that all the street was talking about
1t.
But that. after ALL is a mere incident in
an involved affair in which charges and
countercharses of chicanery figure with
| polite eviction from the Waldorf cafe
julius Newton's name is intimately
bound up with the history of Wall Street
score Of years ago. From a clerkship
IN the office Of Seligm&n & Co. he grad
uated to a junior partnership with Kuhn
Loeb d CO. Later on he won his way to
! full partnership with /. & S Wormser
and there was not man on Change more
N-'N'. A'N Aoi 5dIItS anu luth
Wall Street paled on him in 1851 He
imagined that he was tired forever of
gambling, and made up his mind to lead
a life of leisure in Europe. So he with
drew from the Wormser business and
went abroad. The old fever came back
( The London Stock Exchange proved iust
as fascinating Wall Street had been
but IL lured Newton to financial ruin In
the summer of last year he returned TO
New York broke
But he had not lost faith in his financial
judgment. and he was not too proud 10
! begin hard work all over again. House
man Co, John Pierpont Morgans
! brokers, hired him to obtain business for
| them. He says that he received a salary
! OF $50 a week and commission, and so
/ successful was he in winning the conf
| dence OF the lambs" in favor of his
! employers that in the course of wear
| ne had made enough money TO set up in
! business for himself.
After settling up affairs with the
! Houseman firm, he signed a release of his
/ claims against il. This is the narrative
! ne gave yesterday of what happened
/ next:
Ihere was one item l had overlooked
! Ihey still owed me a commission of 81
/ VW L reminded them of it. but they
/ shook the release in my face and laugh
/ ed. 1 began suit against them. but
/ withdrew it in favor of bringing the case
before the arbitration committee of the
/ Exchange.
| mat was where the difficulty arose
/ 1t was necessary to deposit a fee of $50
before the committee would consider the
! case, and every dollar ! had was tied uD
| in Spanish bond deal | started out
among my old friends to borrow the "ff-
". and-will you believe it?-they re-
fused me Philip Seigman was one. NJ
! Wolf. of Kuhn. Loeb q: Co. was anoth-
er NJ. Wormser was another Not one
! of them would let me have a miserable
| $50 TO get justice with
Even Henry Bulge, of Hallgaren &
! Co, who made fully $40 600 in commits
slons out OF me in my speculating days,
refused me that wretched little loan. I'm
! a qufck-tempered man and l told them
what l thought of them. Then they talk
ed of calling in policeman. Think of 1t
"a policeman for me! Wouldn't it make
/ your blood boil? / told them TO go get
/ dozen!
Well. 1 got the cash in spite of them.
! and that bought me a hearing before the
! arbitration committee. OF course the re-
| lease / had foolishly signed was produced
! again. and that settled 1t. The committee
was satisfied to dispense technical law.
not justice.
AT the hearing a letter was read from
| Pliny Fisk, intimating that ! was a
blackmailer. l asked Secretary Ely for
! that letter but he said it had been sent
! back to Mr. Fisk, Notice how they stand
| by each other-all OF them? And that led
! up to the trouble at the Waldorf Last
night 1 stepped into the Waldorf cate at
my usual hour-that is, before going to
dinner. Mr. Fisk was there. l spoke to
/ him about the letter, and he denied that
/ he had written it.
While | was waiting for my brandy
! and soda a waiter called me out to see a
man in the lobby, and there the hotel
detective told me that my patronage was
no longer desired. At my request the
Waldorf people had this request repeated
| to me by policeman in uniform and
mean to see about that matter later
You see the connection, don't you?
| Fisk & Sons and Hosman & Co. are both
very close to J. P. Morgan The Fisks
do his bond business and the Housemans
represent him on the Exchange That's
why they hang together so tightly. espe-
! cially when help can be given at the ex-
/ pense of little letter writing.
And now today l hear that Secretary
| Ely has asked the police to keep an eye
on me, so in the future l will be accom-
| panied in my walks by trusty witness
in case anything should happen to me-
I've not done with Houseman yet
though He has laid himself open to
charge which may cost him his seat on
the Exchange. and that would be an awk-
ward thing for Pierpont Morgan's broker
wouldn't it?"
Mr.. Newton was probably referring to
the fact that in 1894 the governors of the
| Stock Exchange made it an offense for
broker to divide commissions with persons
drumming up business for him-and such
were his relations with Houseman, he
says, as recently as last July
But Clarence j. Houseman denies that
! he had any commission arrangement with
! Newton.
| Three Doctors in Consultation