Joseph Louis Searles III: The First African American Member of the New York Stock Exchange

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“The New York Stock Exchange is not a cold, heartless organization. It isn’t eighths and quarters on decimal points—it’s people.” 
- Robert Lester Newburger

Born in Germany, Morris Newburger (1834-1917) immigrated to the United States in 1854. His father was a teacher and descended from a family of rabbis. In Germany, Morris worked in the dry goods business. In the United States, he lived in New York, in the South, in Cedar Rapids, Iowa, and Rock Island, Illinois, before settling in Philadelphia in 1963. In 1862, he married the former Betty Hochstadter, and he entered into a partnership with his brothers-in-law, Adolph, Albert, and David Hochstadter, creating the firm of Newburger & Hochstadter, wholesale clothing traders. Morris became the president of the Mechanics National Bank in Philadelphia and founded the clothing manufacturer, Morris Newburger & Sons with his sons. He and his wife had seven children: five sons, Samuel M. Newburger, Alfred H. Newburger, Frank. L. Newburger, Morton M. Newburger, and Lester M. Newburger, and two daughters, Ida Newburger Gutman and Carrie Newburger Loeb.

Before it went out of business, Newburger, Loeb & Co. (an affiliated firm) became known for Joseph Louis Searles III (b. 1940), who became a partner and the first African American member of the New York Stock Exchange when he was proposed as a member by the firm. (At the time, the NYSE only had one African American allied member, Clarence B. Jones, who was a member of Cogan, Berlind, Weill & Levitt, Inc.) A native of Ford Hood, TX, Searles III was a graduate of Kansas State University (1963) where he was a football star. He played for the New York Giants and then worked as an aide for New York Mayor John Lindsay in 1967. Robert L. Newburger said that “his firm wasn’t attempting to make a racial breakthrough on the 178-year-old exchange. ‘This is strictly an economic thing,’ he declared, praising Searles for intelligence and sincerity.” Searles said, “I have experienced no feeling of rejection since I applied for membership…I think the business community at large has realized that the time would come when these breakthroughs would be initiated and would be ready to accept it.” Searles told the press “he was proud of the opportunity to ‘penetrate a bastion of the white financial structure.’” He was asked if he was a supporter of the Black Panthers to which he said, “I’m doing my own thing.” “Black Man Seeks Seat on Stock Exchange,” The Central New Jersey Home News (New Brunswick, NJ), Jan. 31, 1970, 15; Chermelle D. Edwards, “How Joseph L. Searles III Impacted Urban Finance in America,” Atlanta Black Star, July 12, 2015; Vartanig G. Vartain, “Negro Proposed for a Seat on Exchange,” NYT, Jan. 31, 1970; “Big Board Membership is Sought by a Negro, First for the Exchange,” Wall Street Journal, Jan. 30, 1970, 7.

At the time, “Searles said of his proposed membership: ‘It’s a personal challenge to me as a black man to become part of the economic mainstream of this country… I don’t believe I’ll become a token black. I think there will be more black members at the exchange. Hopefully, my presence will increase the credibility of the financial community, as far as blacks are concerned.” Vartanig G. Vartan, “K-State grad to be first black in stock exchange,” The Salina Journal (Salina, KS), Feb. 1, 1970, 8; “Approval by Big Board,” NYT, Feb. 13, 1970.

Searles III was only a member of the NYSE for about eight months before he resigned when the firm ran into trouble and sold his seat. He then went into business for himself. According to The New York Times, “Searles said that at times he detected some ‘builtin (sic) prejudices against blacks, since 90 per cent of the members have no social contacts with black.’ But the big diving line, he came to feel, was not skin color but money.” Searles III went on to work with Manufacturers Hanover Trust Co. In 1971, Daniels & Bell, Inc. became the first black-owned member firm of the New York Stock Exchange. It was founded by Travers Bell and Willie E. Daniels. It closed in 1994. “Negro of NYSE for Year Chalks it Up: Experience,” The Fresno Bee The Republican (Fresno, CA), March 28, 1971, 19. See also “Playboy Bunny Gal Begins New Career,” The News-Palladium (Benton Harbor, MI), August 20, 1969, 29; Firm Announcement, The Los Angeles Times, March 2, 1971, 55; Chermelle D. Edwards, “How Joseph L. Searles III Impacted Urban Finance in America,” Atlanta Black Star, July 12, 2015.

Searles reflected on his experience with the Wall Street Journal:

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