The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-21
Representative Medley Would
Reform Methods of the
Stock Exchange
BANKS ARE SMASHED
BY THE INTEREST"
q hey Play Havoc He Declares
and He Wants Evils Up
rooted Before Pas
sage of Bill
WASHINGTON,

WASHINGTON, June 2o.-Repre-
tentative Medley. of Kansas. + ding at
ter the money trust" delivered a
iepeech In the house of representatives
to-day in which he begged ana plead
led with ,il his force that the s.urren-
Icy legislation now in the air should
mot overshadow the Importance OF
fuproot,ng what he termed were most
vicious evils existing in the stock ex-
|tnange and clearing house situation.
Mr. Neeiey voiced the sentiments Of
Representative Henry OF Texas, and
cther prominent Democrats who have
openly declared that unless the money
lrust Is dissolved the currency legis-
iation will play ioto the hands OF
very Amal and select company OF
New Workers who control pretty
nearly All the money in the United
States according to Mr.. Neeley.
Mr.. Medley raped the rules Of the
New York Stock exchange and de-
clared that the rules of the exchange
could he used at any time to squeeze
out minority stockholders In the In
terests az a trust forming scheme. he
ESaiG fnAL inc FAiPG Oh the N&tsldHES
allowed a broker TO take his clients
stock and hypothecate 1t at any time.
without his clients knowledge, great
Is to the risk Of his clients safety.
scores Former senator Bailey.
He pointed out that bills had been
introduced 10 uncover money trust
evils and thar they had been held up
by various "rnanikins." acting IN the
interest of "the interests" One Of
-. = . re - nj
ton OF the bin. he said. was ''Sena-
tor Bailey If Texas. synenred with the
smell cf standard Oil from head TO
heels"
SPEC King Of iniaui;ons proceedings
under the cloak OF stock exchange
rules. MI. Saeley went into detail con-
corning the floating Of the stock Of
the California Petroleum company.
He sad several big New Workers got
together tn boost the sale Of this un-
tried sto<is.
They Immediately secured the
services ~ a number Of stock hrnk-
ers." said Representative Medley, and
began n system IF bogus gales hack
and forth IN create an appearance If
activity and attract the attention If
purchasers. having NJ @1e sine nine
teen different brokerage firms thus
engaged
aWhen the operations began they
listed f0t.77s shares of this stock and
SO successful were their manipHlations
that when the campaign closed on
the eth OF October. 1912. 362 2To
shares Of this unknown stock had
been traded in during the three weeks
of manufactured activity. and the en-
tire capital stock of the concern had
been bought and sold nearly three
and a half times over. thereby per-
hitting the promoters to escape with
between sven and eight million dol
lars OF profits"
For stock Exchange Reform.
To prevent evils of this kind Mr..
Neeley advocated instant reform, re-
ferring to bill already introduced
by him
'.If these recommendation are
adopted" he said, the stock ex-
change will become E market instead
of a shearing pen, and the man who
makes false representations will he
prosecuted the same as in any conf
dence game"
The clearing house came in for a
severe tongue flashing from Mr.. Nee
ley, who declared that the institution
had cruelty and ruthlessly smashed
the Brooklyn bank and the Borough
bank, which cleared through the
Oriental bank. and that ii had closed
up the Oriental. He spoke of three
prominent New York bankers who
examined the affairs of the Oriental,
and said that no banks and trust
companies have been bought out. con-
soiidated or forced to the wall In New
York in the last ten years by this
gang Of financial pirates who have
sought the complete domination of
the commercial interests of the coun-
try for their own ACKNOWLEDGMENT"
Mr.. Medley spoke at length concern
ing an alleged press agent bureau
conducted by J. r Morgan & Co, and
the Standard Oil company. He said
these two concerns pay enormous sal
aries to have distributed broadcast all
sorts of statements concerning the
money trust committee. @a s&asee4