Evening star., 1933-09-17
STOCK EXCHANGE
FORMED IN JERSEY
Brokers Move to Transfer
Trading to Avoid Heavy
New York Tax.
BY the Associated Press.

BY the Associated Press.
NEW YORK, September l6-F1rst
steps to transfer Wall Streets stock
trading to New Jersey to escape the
proposed emergency municipal taxes
were taken today by a group of bro
kers, who incorporated The National
Stock Exchange" to be established in
Newark.
Its a new Boston tea party" said
Col. William Freiday, Wall Street bro
ker and prominent in Democratic poll
tics in New Jersey. who is president OF
the newly incorporated organization.
This move on the part Of brokers
resentful of the Tammany plan to place
special levy upon them was taken
Exchange although the firm in which
Col Freiday Is a partner. J. Robinson
Duff & Co.. holds three New York Ex-
change memberships.
Considers New Exchange.
At the same time rumors few about
Wall Street that the prominent law
firm of Cadwa!ader. Wickersham &
Taft, has prepared a plan to submit
to the New York Exchanges member
ship for the establishment Of a SUBJ
sidiary exchange in Jersey City, on the
water front where it could be reached
by special ferry from Manhattan.
The law firm announced earlier in
the week it had been retained by Wall
Street interests, whom it refused to
name, to study the establishment of
an exchange in New Jersey. The firm
declined to comment further today. It
was recalled that CadWalader, Wicker
sham & Taft has represented the Stock
Exchange in legal matters in the past.
Col. Freiday, who is an aide on Gov
Moore's staff in New Jersey, said the
work Of organization OF the National
Stock Exchange would go ahead speedily
and that it was likely it would be open
for business by the first Of the year.
He said several members Of the New
York Exchange had expressed desire
to become members.
Intend to Cooperate.
1T is our intention. naturally" he
said, "to cooperate with the New York
Stock Exchange Its members will be
given prior rights to hold memberships
in the National Stock Exchange.
The primary purpose Of every broker
age firm is to give its clients efficient
service at the least possible cost. This
new exchange will result in substan-
tial saving to both clients and firms. We
have the assurance Of the New Jersey
authorities that no taxes will be levied
on transactions executed there"
The incorporation papers disclosed
that all officials of the new exchange
are partners in Col. Freidays firm
j. Robinson Duff is listed as vice presi-
dent George Brown, treasurer, and
Vincent La France, secretary. Duff
Brown and La France are all members
Of the New York Stock Exchange, and
Col. Freiday was member for several
years.
Will List All Stocks.
Col Freiday said the new market
would be housed temporarily in one Of
the large buildings in Newark. and it
probably would list all stocks being
traded in on the New York Stock Ex-
change and possibly some Of these trad
ed in the curb market.
What plans the New York Stock Ex-
change may have in the event the pro-
posed municipal tax Of 81 per 100 shares
on stock transfers is signed by Mayor
OBrien on September 2l, has been kept
a closely guarded secret.
While the exchange has taken no ac-
ton. in so far as could be learned, to-
ward transferring any of its activities
elsewhere, it was understood it raised
no objection to the incorporation Of the
National Stock Exchange by group OF
its members.
Wall Street brokers have been up in
arms against the city transfer tax, and
various proposals for moving trading
elsewhere have been made informally.
Col Freiday's group was understood to
be only one of a number that have con-
sidered taking definite steps.
Brokers assert it is now considerably
more expensive to trade in securities in
New York than in any other market
and express fears that their business
will be taken away from them by the
Chicago or some other market.
Should trading be started In New
jersey, some brokers thought 1t would
be restricted to more active issues.