Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-09
HENRY T0FACE TRIAL
House Votes for Prosecution
of Money Trust Witness.
CONTEMPT Is CHARGED
Witness Refused to Reveal Bankers
Profting in Syndicate.
BAKER TAKES THE STAND
Powerful New York Financier Star
Witness of Investigation Today.
Tells of Banking Profits.

Because he refused to give to the House
money trust committee the names of
twentyfour national bank officers who
protited in a syndicate formed to market
stock of the California Petroleum Com
pany. George G. Henry of Solomon & Co.
New York bankers. was certified to the
Speaker of the House today for contempt.
The full banking and currency committee
voted unanimously for that action.
Later the Speaker presented the certifi-
cation to the House and that body voted
to certify the facts to the United States
Attorney for the District of Columbia
with authority to proceed with a criminal
action involving fine or Imprisonment.
Mr.. Henry testified that national! banks
and national bank officers participated
In syndicate to the extent of s.. .OS5,OO
and, without putting up any money or
taking over any stock, took profits of
about $4,000.
He maintained that his confidential re-
lations with his customers would not al
low him to furnish the names of the
participants. and presented a statement
framed by former Senator John c..
Spooner, as counsel, justifying his re-
fuSal to answer
Question Involved.
The case threatens to involve the ulti-
mate question of the money trust COM
mittee's authority to inquire into the af-
fairs of national banks, which probably
would be taken to the Supreme Court.
Opinions on the subject, among the gov
ernment's legal experts in the Depart
ment of Justice, differ
If the Henry case is fought out to
conclusion, the committees inquiry into
the questions to which it is related may
be blocked pending a decision.
AS one of the star witnesses in the in
quiry. George F. Baker of the First Ma
tional Bank of New York today took the
stand. Mr.. Baker, who. with J. P. Nor
gan and James Stillman, makes up, ac
cOrding to Samuel Untermyer. counsel for
the committee. the most powerful group
of financiers in New York. was called to
testify as to the financial relations of
these three men, the institutions in which
they are factors and the funds they con-
troll.
Will Guard Interests.
retinue of attorneys accompanied the
New York financier to Washington, headed
by Fisher A. Baker, his brother, and chief
counsel. and former Senator John C.
Spooner. They will guard his interests
while he is under the examination Of Mr..
Untermyer.
Mr.. Baker despite his seventy odd
years, appeared cheerful and hearty as
he prepared to submit himself to what
promised to be long ordeal in the wit
ness chair. He is robust and ruddy.
Mr. Baker testified that in 1874 the cap
ital Of the First National was S5OO,OOO,
and was increased in 1901 to $1O.OO0,OOO
by the payment of a dividend of $780,.
O0O. Undivided profits and surplus of
11.641,O 600 were left after that dividend
was declared. He went over the yearly
dividends since then, showing they ranged
from 20 to 126 per cent.
Big Dividends Paid.
'In the last four years have dividends
of 226 per cent been paid?" asked Mr..
Untermyer
"fes." In 1908, Mr. Baker added,
regular dividend OF SO per cent was
paid, and an extra dividend of 100 per
cent was declared for organizing the
First Security Company, to do bust
ness not authorized by the national
bank act He said the company did
little business 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, but he held a clean con-
troll OF the Chase bank "in the interest
of 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 in the purchase of the Chase
stock.