The herald-advance. (Milbank, S.D.) 1890-1922, 1913-01-17
.|T'S CONCENTRATION
4 FAMOUS FINANclER ADMITS
GREAT MERGERS OF FiNAN->
CiAL ORGANIZATIONS.
HAS GONE A
Says Conditions Are Not Entirely
"Comfortsble for Country
No Present
Harm.

Washington, Jan. 1.-THE present
concentration of money and credit
has gone far enough" lin bad hands"
It would have a bad effect upon the
nation; the safety of the situation
lies in the personnel of the men in
control and present conditions are
not entirely comfortable for the coun-
try"
These were a few of the statements
made by George f. Baker, master
6nancier, as the climax of two days
examination before the house money
trust committee. But Mr.. Baker de-
clared that bad hands could O re-
tain the control.
Beyond Usual Hour.
The statements, coming at the end
Of a day of routine examination, dur
ing which Mr.. Baker reviewed in de-
tail the operations of himself, his
bank, the First National bank of New
York, and J. P. Morgan & Co., in the
issuance Of bonds, startled the COM
mittee and Mr.. Bakers counsel, Fisher
A. Baker and John c. Spooner. The
committee went beyond its usual hour
of adjournment in order to conclude
the examination of Mr.. Baker.
Samuel Untermyer. counsel for the
committee, was wading through a
mass of heavy statistics relating to
bond issues, handled by Mr.. Baker's
associates. Suddenly he paused, and
shot a question at the 73-year-old f.
no naior u-hn Iorp;tn Iso 1o,- n..,~.
nation, was cheerful and confident.
Mr.. Baker, | suppose you do not
think there is a money trust?" the
lawyer demanded.
All Sit Forward.
Committee, spectators and counsel
sat forward in their chairs as the
hearing room. but a moment since dull
and stolid, grew tense with expecta-
ton. The witness leaned back in his
chair, smiled quietly about him, and
replied:
Il do not think there is
What do you understand by a
money trust?" MI. Untermyer continu-
ed.
Il give it up: | don't know" Mr..
Baker said. with a chuckle
Suppose Mr.. Untermyer said, we
define a money trust as an established
identity and community of interest
between a few leaders Of finance.
which has been created and is held
together through stockholdings, inter-
locking directorates and other forms
OF domination over banks. trust COM
panies, railroads, public service and
industrial corporations and which has
resulted in vast and growing concen-
tratiOn and control of money and cred
it in the hands of a comparatively
few men. Taking that definition. is
there any doubt of the fact that there
has been of late years a vast and
growing concentration of credit in the
hands of a few men,
Money Concentrated.
well. there is a great mount OF
money that has come together here,
more or less concentrated Mr.. Baker
replied, after a pause.
There have been great mergers of
financial institutions, have there not >"
Mr.. Untermyer asked.
Yes, sir"
Here Mr.. Untermyer reviewed some
of the recent combinations of financial
institutions in New York.
And there la been a great nun
Der of these consultations in various
parts of the country " the LAWYER con.
tinued.
Yes Mr.. Baker responded.
Il suppose you would see no HARM
Mr.. U~ntermyer said, lin having the
control OF credit as represented bv the
control Of banks and trust companies
still further concentrated. DO YOU
think tina would be dangerous?"
MIR. Baker pondered the question for
a lime and then answered:
Il think it has gone about far
enough"
do you think it would be danger
Gus to 60 farther?"
ut might lot be dangerous. but
still it has gone about far enough
In good hands, | don't say that il
would do any harm. If it got into bad
hands, it would be very bad"