The consensus I received pointed that balustrade would not hold and
after modifying the design and putting it all together, I realize that
it could not be any truer!! The newels themselves are solid iron and
very strong, but they are thin and sub flooring just doesn't have
enough leverage to hold it. The fact that the sub flooring is a few
times older then I am doesn't help

http://bismarck.sdf1.org/balustrade_3.jpg

http://bismarck.sdf1.org/balustrade_4.jpg


In the end I made three changes:
1) I took end newel and placed it in the corner and screwed it to my
floor "extension". See picture 4.

2) Installed end post and reinforced from beneath with the solid block
of wood attached to the joists ( using register )

3) Attached the end of the rail to the wall.

Construction is solid

Thank you guys!
Oleg