Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-01-09
! congress- PROBE !
RIGHTS TESTED IN !
CONTEMPT CASE
C. C. Henry Certi-
fed to Speaker
Of House.
BAKER, BIGGEST MAN IN
WALL STREET" ON STAND
Finanoier Tells Of Enormous
Dividends Paid by First
National

ton whether the House money trust
committee may investigate the affairs
of national banks was started on it's
way to the courts today, when the
banking and currency committee
unanimously voted to certify to
Speaker Clark for contempt George
C. Henry, of Salomon & Co., New
York bankers, who refused to tell the
money turts committee the names Of
twenty-four officers of nations banks
who had made $4,000 out of 9 syndi-
cate to market California petroleum
stock. The speaker is now to decide
If he shall send the case to the United
states attorney The case ultimately
involves the right OF Congress to
con,neI testimony in connection with
its Legislative affairs.
George f. Baker, president OF the
First National Bank of New YORK,
nopularly referred to as the bisgest
man in Wall Street since j. P1erpont
Morgan retired from active business,
was the principal witness before the
money trust committee the names OF
Of the organization of the FIRST
Securities Company. which holds the
s+ooxs of various banks throughout
tho country. The company was or
ganizsd. he said, to do business wnicn
sha government claimed the bank act
forbade the First National Bank
to do. - .,,a
retinue of attorneys accompaniSu
+ha New York flnancier to Washlns
an headed by Usher a.. Baker ms
brotber and chief counsel, ana lor-
n,sr senator John c. Spooner- Tney
Viii euard his interests while ne ls
,,sar tte examination OF Mr. Inter
ynyer, Mr.. Baker, despite ms .s. ouu
years. appeared cheerful ana nse.s
az he prepared 70 SUBMIT h'si's1i, ~
what promised to be a long oiuesa
in the witness chair
se,boo.ooO dividend.
NJ Raker testified that in 1874 the
eanital of the First National was
!. ssoo mn and was increased in 1901 10
so. .0o0. 900 by the payment OF a uivi-
dend of ss,500,00O Undivided pronts
and surplus Of s11.64l0o were leIt
after that dividend was declared. He
went over the yearly dividends since
then. showing they ranged from ~
to 126 per cent.
s. "In the last four years have alvi-
dends of 226 per cent. been PAID IS
asked Mr.. Untermyer.'
eyes" In 19o8 Mr.. Baker added,
q regular dividend of 80 per cent was
plid, and an extra dividend OF iVo
ner cent. was declared for organizing
the First Security Company to do
business not authorized by the ma
tional bank act. He said the com
pany did little buslness in stock.
Controlled Chase National.
Mr. Baker testified that in 1908 he
owned individually more than one
half Of the stock of the Chase Ma
tional Bank. None, he said, was held
by the First National. but he held a
clear control Of the Chase Bank In
the interest of the First National
: He could not say when that control
was acquired, but thought about hve
years ago. He said no assets OF the
First National had been used for the
purchase of the Chase stock.
Mr.. Baker testified that when the
securities company was organized the
Chase Bank stock and other bank
stock held by individuals In the in
terest of the First Nationar' were
turned over to the company.
Mr.. Untermyer wanted a list of the
stocks.
II had rather not make those pub
lic," said Mr.. Baker. "They are our
private business. am perfectly will
ing, however, to let the committee go
over the list and to place in the record
such stocks as it believes pertinent to
the inquiry"
Makes List Of Stocks.
Mr.. Untermyer, with Mr. Baker and
his counsel, went over the list and fin.
ally placed in the record the following
list of stocks held by the First Secur-
tiles Company =
Minneapolis First National Bank, 500
shares; Minneapolis Trust Company,
200; Bankers Trust Company, $500;
Brooklyn Trust Company. 450; Astor
Trust Company, 200; Chase National
Bank, 2S,632; Liberty National Bank,
928: New York Trust Company. $50;
National Bank of Commerce, 5,400,
Mr.. Baker said that the railroad
stock, held by the First National, has
been turned over to the Securities
Company
The department at Washington"
he said, Complained about our hold
ing railroad stock, and the company
was organized to enable us to satisfy
the government"
Don't you believe that this organi-
zation of the securities company is an
evasion of the banking act?" asked
Mr. Untermyer.
''Oh, no. said Mr., Baker. He added
that the securities company had since
its organization paid dividends of
from u to II per cent. a year and
had accumulated surplus of
81, ,0OO, 600
"T'he company doesn't do much
business in the buying and selling of
stocks he said
You control the management Of the
First National, don't you?"
Il would like to be so conceited as
to say that
Would you like to be so honest as
to S8y tllat?"
IA like to be honest: but | could
soontinued On Second Pane.,