Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-06-20
Representative NeeIey Would
Reform Methods of the
Stock Exchange.
MANY BANKS SMASHED
BY INTERESTS" HE SAYS
Wants Evils Uprooted Before Pas
sage of the Administrations
Currency Bill.

Representative Neeley of Kansas
| going after the money trust" de-
| livered speech in the House of Rep
| resentatives today in which he begged
! and pleaded with all his force that the
currency legislation now in the air
| should not overshadow the Importance
of uprooting what he termed were most
| vicious evils existing in the stock eN
! change and clearing house situation.
Mr.. Neeley voiced the sentiments of
| Representative Henry of Texas and
| other prominent democrats who have
! openly declared that unless the money
| trust is dissolved the currency legis-
| lation will play into the hands of a
very small and select company of New
Workers, who control pretty nearly all
| the money in the United States. ac-
cording to Mr. Neeley.
MIR. Neeley raped the rules of the
| New York Stock Exchange and de-
clared that the rules of the exchange
could be used at any time to squeeze
out minority stockholders in the inter-
ests Of a trustforming scheme. He
said that the rules of the exchange al
lowed a broker to take his clients
stock and hypothecate it at any time.
without his clients knowledge. greatly
to the risk Of his clients safety.
Scores Former Senator Bailey.
He pointed out that bills had been
introduced to uncover money trust evils
and that they had been held up by
various 'manikins,' acting in the in
teresr of the interests. One of the
obstacles in the way of the adoption
of the bill, he said. was Senator Bailey
of Texas. smeared with the smell of
c. o1c
Spea king of iniquitous proceedings
under the cloak of stock exchange
rules, Mr.. Neeley went into detail con-
cerning the floating of the stock of the
California Petroleum Company. He
said several big New Workers got to-
gether to boost the sale of this untried
stock
They Immediately secured the serv-
ices of number of stock brokers', -
said Representative Neeley, "and began
a system of bogus sales back and forth
to create an appearance OF activity and
attract the attention of purchasers.
having al one time nineteen different
brokerage firms thus engaged.
When the operations began they
listed 1O5.179 shares Of this stock and
so successful were their manpulations
that when the campaign closed on the
eth of October. 1912, 362.270 shares of
this unknown stock had been traded
in during the three weeks of manu-
factured activity. and the entire capital
stock of the concern had been bought
and sold nearly three and a half times
over. thereby permitting the promoters
to escape with between seven and
eight million dollars of profits
For Stock Exchange Reform.
To prevent evils of this kind Mr. Neeley
advocated instant reform, referring to a
bill already introduced by him:
If these recommendations are adopted, 4"
he said. 1.-The stock exchange will be-
come a market instead OF a shearing pen.
and the man who makes false representa-
tions will be prosecuted the same as in
any confidence game"
The clearing house came in for a Sc
we're tongue lashng from Mr.. Neeley, 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 it had closed up the Oriental He
spoke off three prominent New York
bankers who examined the affairs of the
Oriental, and said >that "11O banks and
trust companies have been bought out,
consolidated 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 country for their own
ACKNOWLEDGEMENT.
Mr.. Neeley spoke at length concerning
an alleged press agent bureau conducted
by J. +. Morgan & Co. and the Standard
Oil Company. He said these two con-
Germs pay enormous salaries to have dis
tributed broadcast all sorts of statements
concerning the money trust committee.