Sir Alfred Newton, 1st Baronet
Sir Alfred James Newton, 1st Baronet was a British businessman. He was involved with the stock market flotation of several large privately owned retail stores, including Harrods in 1889 and D H Evans in 1894. He became Lord Mayor of London in 1900 and helped establish the City of London Imperial Volunteers who fought in the Second Boer War in South Africa. Mystery surrounds his death in 1921 from strychnine poisoning.
Early life
Newton was born at Hull in 1845 to George Beeforth Newton of Kottington and Helen Rowe. His father was connected with shipping and the holder of a Masters Certificate; his grandfather had been involved with the whale fisheries industry. His parents were married in Liverpool in 1834 and had four daughters and three sons. Alfred Newton was their sixth child and youngest son.In 1865, Newton was a grain and seed broker in High Street, Hull. In the 1870s he was a yeast merchant in Burton-on-Trent with his father. Later he was in partnership with his brothers, William and George Beeforth Newton Jr., in a chandlery and shipping business called Newton Brothers of Burton on Trent and Hull. In 1874, they purchased a diving cutter and specialised in salvage, raising or breaking-up sunken ships that were a danger to navigation. This sometimes involved the use of explosives, and there was at least one fatality when a diver working for them drowned in 1875. They expanded their fleet of ships, commissioning the 310 ft steamer Principia in 1881 for the India trade. In 1882 the British Government leased this ship, with others that they owned, to transport troops and materiel to the conflict in Egypt. This same year the partners opened a head office in the City of London at 19 Billiter Street.
New business interests
When his brother William died in 1886 aged 48, Newton parted with the shipping business. The partnership continued between his surviving brother George Beeforth Jr., his father, and the manager William Holiday. When the father died in 1889 the firm was renamed Newton Brothers and Holiday.Following his withdrawal from the family business Newton became involved with the stock market flotation of several private companies. In 1886, he was a director of the Norfolk and Suffolk Brewing Company, in 1887 director of the New Zealand Gold Extraction Company Ltd., and in 1888 the chairman of the Gaiety Theatre. He was chairman of The President Land and Exploration Company in 1889 and the same year appointed chairman of the board of Harrods Store, raising capital to buy the store from Charles Digby Harrod for £100,000. In the next decade several other departmental stores followed suit with his involvement including D. H. Evans, J. R. Roberts’ Stores, Crisp and Company of Holloway and Paquin of Paris. Whilst chairman of Harrods he also oversaw the purchase of the departmental stores Dickins & Jones and Swan and Edgar.
Civic duty and controversy
During the 1890s he held posts as the master of three City of London Livery Companies. These were the Worshipful Company of Framework Knitters, the Worshipful Company of Girdlers and Worshipful Company of Fan Makers in 1899. In 1889 he was nominated and appointed the Sheriff of London and Middlesex; in the following year he became Alderman of the Ward of Bassishaw, a Lieutenant of the City of London and in 1899 he became the Lord Mayor of London. However, at the same time he came under scrutiny for a share flotation that he had been involved with concerning another store called Grice and Son of Clapham. This business had been purchased by Industrial Contract Corporation for the sum of £16,000 in about 1897, and sold to another company with the same directors called the Auxiliary Stores for £48,000. The directors for both these companies were Newton, Richard Burbidge, who was the general manager of Harrods, James Bailey, who was a director of Harrods and James Jackson, a director of J. R. Roberts' Stores. A merchant and banker named William Mendel was also a key player, holding the founders' shares that gave him a controlling interest.Attempts were made by these directors to wind-up the first company, but the shareholders were unhappy with the terms they were offered. After threats of court action an agreement was reached between the parties. This was not the end of the story; the Lord Chief Justice, on being officially introduced to the newly appointed Lord Mayor Newton, publicly expressed his concern about his involvement with the Industrial Contract Corporation. In order to allow a public examination of the matter, Newton instigated formal winding up proceedings to be heard before a Chancery judge. In his summary at the end of the investigation, the judge said that the memorandum of the articles of association of the company were nothing short of a scandal. Shareholders had not been made aware of the profit being taken by the directors and the holder of founders' shares had the same rights of voting as the total number of shareholders.