The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-10
Coal Railroads, He Says, Sell
Product at Mouth of
Nine 10 | wade Law
QUOTES JAY GOULD
AS AN AUTHORITY
George F. Baker Endorses His
luea That Ii Is God
Plan to Serve on 2
Bo .rds at Once
BY JAMES J. MONTAGUE,


WASHINGTON. Jan. George F.
Baker, the dominant force In the
First National bank OF New York, and
In many financial and industrial en-
terprises and regarded by many au
thorities as a man of more power in
the money world than j. p. Morgan.
this afternoon quoted Jay Gould In
support of his belief that II was an
excellent thing for a tlnancier to be
on two railroad boards at the time.
Mr.. Baker was testifying before the
Pujo committee.
Incidentally he admitted that ne
was on The directorates OF many po-
tentiaily competing banks, and ac-
tualiy competing railroads including
the coal roads. He said that while
part OF his institutions were conduct
ed through voting trusts, he would
dissolve such trusts IL he had the
power
Among other things. he said:
10 operate mines. sold the coal at the
mouth OF the mine ito comply with
the law"
second. that the public should have
confidence in bank without the
facts In detail.
Third, that securities companies
owned by rational banks were organ
ixed TO do things that the banks were
not eushorizr d 80 -.
Consulted With Morgan
Fourth, that ne consulted with J.
p Morgan and James St'ilrnn about
many things. and that they owned
stocks in MANY Of the same corpora
TORS. hrt that they were earh abso-
iutely independent Of each other, 50
far as the control of their stock was
cor~erued.
Fifth, that while he may be called
upon at ary tire to take un an Inter-
est in she F-cutfn he. according TO his
agreement with Morgan, he has
as vet nrt dome so.
Sfxtn, tina. hr arranged the sale IT
she Chase National bark with Pre.i-
dent wirgir, but go far as he knew
No change in the management had
resulted.
While Mr.. Baker was tcstifving the
house nas~ed resolution decIa ring
In eon'erept O. q Henry. who Tres-
aav refused TO answer our sttons con-
corning the bankers participating In
tie California petroleum deal, The
housa directed that the courts Of the
District Of Columbia be directed to
take 10 Henry's case with view to
indicting him.
Baker is Seventy Two.
Mr. Baker is a fhick-necked. red
faced man side whiskered. built like
Il prosperous English iandholder and
with a vigcr and rudy health that
makes him look far less than his sev-
eutv-two years. IN manner he was
afysNle ana even humorous at times
hut he frequently baked al. or evaded
Questions and once or twice fatty re-
fused TO answer
In earh OF these instances. however
his refrisats were withdrawn after talk
Ing with his LAWYERS. John c. Snooner
N~4, ~ m sNntA "a
his son, a tall. specialized young man.
with - retreating chin. who sat beside
him. FISHER paker the uncle, look
Inc Mt least ninety, was keen and alert,
and on several occasions seemed about
TO rite Samuel Untermyer. when the
iatter's questions struck him as par
ticu'ariv Objectionable.
The citing of jay Could az a finan-
ciai authority came In the afternoon
when Mr. Untermyer. asking how
MANY railroads Mr. Baker helped to
control through directcrates. inquired
II ne thought that such a system did
not tend to DESTROY competition.
Jay Gouid's Opinion.
"Mr Jay Gould told me once" said
Baker. reverertIy. that the greatest
success he had was In being on two
boa rtas at once. where he could adjust
differences that ni~bt have created a
good deal ~ distprbance," s.,.se.... IS
n In had sssiofAd TSrfaf m .Ktst,i me
could hardly have surprised the com
mite. more.
"ycu consider him a good authority.
do youes ASKED Untermyer. gulping
down his astonishment.
"On that business, veE, said Baker.
''vou agree with him on that, do
you7'
..That is what he stated to me was
his success. and believed him"
"And that fs YOUR viewg'
..Tt m.ght become So" said Baker,
.sr rever happened to be placed In the
position where I had to adjust a diff
ference"
identity Of Interest.
..po you not think the identity of
interest represented On the hoard Re
tween COR retitors rather interferes
with competition, and leads to agree
ments and understandings. that might
not otherwise exist?
II have never seen any trouble come
from IT," said Baker.
This line OF questioning was led up
to by the bankers admission. under
questions. that he was director In
three groups Of railroads. First the
ton ana Quincy. and the Chicago. Great
Western, ali Of which compete in the
second. the Lchish Valley. the d,
L. and W., the Erie, all competitors
between New York and Chicago.
Third, the Reading, the Jersey Can.
trial. the Lehigh Valley. the New
York Husquehanna and Western. all
competing coal roads.
Mr.. Baker admitted that these
roads were all competitors. but he
said he could eco no possible harm
n ONE man being a director Of all
OF them.
Asked Abnut Control.
Asked II he thought II would do
any harm to havc the roads con-
f~s.ylnN ~ cha - me board OF direc.