The Washington times., 1910-05-26
New York Brokerage Con
Germ Charged With Split
ting Commissions.
DENIED EXCHANGE
PRIVILEGES A YEAR
Firm Has Branch In Washington.
To Continue Business De-
nieS Allegation.

NEW YORK, May 26.-The firm Of e.
T. Hutton * Co, one Of the largest
brokerage concerns in New York city,
was suspended today by the New York
Stock Exchange for one year.
The hrm was suspended on the charge
Of splitting commissions.
! The members Of the Hutton firm are
Edward +. Hutton. Franklin L. Hut
ton. George A. Ellis, jr.. and Edward
T. B. Adams.
w. d. Hutton, formerly the board
member, withdrew from the firm last
July and formed partnership with his
father. He continued to make his head
quarters with the old firm at IS New
street The firm has three branches
outside Of its main office, and is also a
member Of the Cotton Exchange. and OF
the Chicago Board Of Trade.
Office in Capital.
The firm also maintains out-of-to
branches in Washington. Los Angeles,
San Francisco, Coronado, and Pasa-
dena. Cal.
Hutton & Co. have been as well, II
not better. known on the cotton and
grain markets than they have on the
stock exchange.
1t was through this house that Jesse
L. Livermore, the young piunger. con-
Quoted MS sensational 19O7-l9OS cam
paigns, in which he is said 10 have
run an original stake of $4,000 up 70
SZ,UOO.OOO in cotton. grain anC stocks,
and nndlly to have dropped the bulk
of it on the short side of the markets.
Firm Issues Statement.
Z. F. Hutton * Co. this morning
issued the following statement:
This hrn, as a result Of the follow
ing charge, by the committee on COM
mission. has been suspended from the
privileges Of the New York Stock EX-
change for one year, charge thae tie
said Franklyn l.. Hutton. a general
partner in the firm Of Z. F. Hutton &
Co, represented upon the exchange, has
been through the said firm of L. +.
Hutton & Co., guilty Of violating sec
ton l, article XXXIV Of the cOnstitU-
ton relating 10 commissions, in this
that the said firm Of L. +. Hutton &
Co.. did enter into an agreement or ar
rangement during the early part Of the
year 1903. with one Hosmer j. Barrett
who was IN the employ OF said firm, TO
pay TO said HOSmer J Barrett a salary
or Sl,5oJ per month because Of the fact
that said firm had proftted by the bust
.
] HoSmer J. Barrett during the preced-
| ing three years in the sum amounting
( 10 $4,000 per year and said firm paid
I said Barrett said salary IN accordance
] with said agreement or arrangement
| from May !, 1903, to April %, 1910 and
said Franklin /. Hutton, through the
| said firm Of Hutton a. CO., thereby vio-
/ lating the provisions Of the constitution
of the exchange.
'rhese charges are the result OF a
case which was before one of the com
mittee some weeks ago in which IL de-
VelODed that said Barrett was employed
at salary Of $3.50 Der month in full
for his services.
Charges Were Denied.
The matter was brought before the
governing committee and our reply to
this committee was a general denial Of
the above charges. The governing COM
mtttee have seen Mt 10 apply the rule
| governing commissions to this connec-
ton and have construed 1t as a viola
ton Of the mmission law.
1T Is the intention of the above firm
! 10 continue their business and TO give
( the same service and DISPATCH and con
slderatlon 70 their clients as heretofore
and this suspension will in no way oper-
| ate against the interests Of their friends
and customers who have favored them
with their accounts
ANY evasion OF the commission law
was OF technical nature and not in
tenuonal and there has been no splft-
! ting OF commissions as has been ru-