  The spectrum of the infinite dimensional Neumann matrices M^{11}, M^{12} and
M^{21} in the oscillator construction of the three-string vertex determines key
properties of the star product and of wedge and sliver states. We study the
spectrum of eigenvalues and eigenvectors of these matrices using the derivation
K_1 = L_1 + L_{-1} of the star algebra, which defines a simple infinite matrix
commuting with the Neumann matrices. By an exact calculation of the spectrum of
K_1, and by consideration of an operator generating wedge states, we are able
to find analytic expressions for the eigenvalues and eigenvectors of the
Neumann matrices and for the spectral density. The spectrum of M^{11} is
continuous in the range [-1/3, 0) with degenerate twist even and twist odd
eigenvectors for every eigenvalue except for -1/3.
