The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1913-01-10
Banker Withheld Names al
Money Trust Probe.
BAKER TAXES THE STAND
One of the Powers in the World of
Finance Tells of Dividends of From
20 to 226 Per Cent Declared by New
York Institution Since 1901.

Washington, Jan 10-Because he
refused to give to the house money
trust committee the names of twenty
four national bank officers who prof
tied in syndicate formed to market
stock of the California Petroleum com
pany, George G.. Henry, of Solomon e.
Co, New York bankers, was certified
to the speaker of the house for con
tempt. The full banking and cur
rency committee voted unanimously
for that action.
Mr.. Henry testified that national
banks and national bank officers par
ticipated in a syndicate to the exten
of $1,0S5,000 and, without putting up
any money or taking over any stock,
took profits of about s5O,O0O He main
tained that his confidential relations
with his customers would not allow
him to furnish the names of the par
Elephants and presented a statement
framed by former Senator John c.
Spoener, as counsel, iustifying his re.
fusal to answer.
Speaker Clark will review the case
to determine whether he will certify
the record to the district attorney OF
the District of Columbia for criminal
prosecution
The case threatens to involve the
ultimate question of the money trust
committees authority to inquire into
4bo oeeairs oe po+iopal hanLo r,biob
prbably would be taken to the su-
preme court. Opinions on the subject
among the governments legal experts
in the department of justice differ.
II th Henry case is fought out to
a conclp sion the committees inquiry
in the Q lestions to which 1T is related,
may be blocked pending a decision.
George r. Baker on Stand.
George F. Baker of the First Ma
tional bank of New York, who is one
of the powers in the world of finance,
was. called to the stand.
Mr.. Baker testified that in 1874 the
capital of the First National was $780,
600, increased in 1901 to $10,000,000 by
a dividend of $9,500,000 Surplus of
$11,641, 900 was left after that divi-
dend. He went over the yearly divi-
dends since then, showing they ranged
from 20 to 126 per cent.
In the last four years dividends of
226 per cent have been paid. In 1908
beside a regular dividend of 32 per
cent an extra dividend of 100 per cent
was declared for organizing the First
Security company to do business not
authorized by the national bank act
He said the company did little busi-
ness in stocks.
Mr.. Baker testified that in 1908 he
owned individually more than one-half
of the stock of the Chase National
bank. None, he said, was held by the
First National.
He could not say when that control
was acquired, but thought about FIVE
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 NATIONAL were
turned over to the company.
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 place in the record
such stocks as it believes pertinent