The evening world., 1913-01-11


/ Before Congress Committee.
This 10 the same George r. Baker
Who became the ruling power Of the
First National Bank Of New York BY
approving . bad credit granted 10
Jay Cooke back in 1879. For this he
was In danger. A. cashier. Of dismis-
sal. In more vulgar terms. George
r. Baker. now the head OF the most
spectacularly profitable financial In.
stitution In the world-past or pre-
ent, not excepting $50 Per Cent"
Millcr's less fortunate Franklin syn.
dicate-was on the ragged edge Of
being canned by his boss for . bed
break.
what ala George r. Baker DO. know
Ing then. undoubtedly. ~ well a. he
does now that the fundamental prin-
cIpls Of banking u creditf' DID he
act his hat and coat and drop into the
Presidents once to say an Apologize
good.byf He did not Instead 10 con.
suited with Henry TAhnsstock. the olsrk
who Vas directly responsible for the
buying Of the bad drafts. and thea he
bought the bank. He bought Il With
eaiy . few hundred dollars to his name.
His purchasing ievsrsss was his per-
suasiva. suavs manner and his chilled
steel es self eonAdencA He still hes
both u ssventy-two year, Of ASs.
The ineiAsnt throws . brilliant sAakt
Of Asht On the fact that his task he's
In nfty-six ysasp made oso.ooaoeo on
0eaeoe capital. John Thompson was
then President Of the First National
Bank. He was ola. He was tired Of
baak1nG. Mr.. Baker knew Thompson's
state q mind.
NJ. yahnsstock had charge OF the
foreign exchange department OF the
hank. TO ob,iss . friend he bought .
lot Il London drafts Of Jay Cooke q
Co Three days later Jay Cooke failed.
Mr.. tAAnestock ran In dismay to NJ.
Hahr. who had approved the pur.
GhAsA
MGRGLv A MATTER OF DUviNo
A BANK.
IT jeeks - though We would have
. buy the bank to save ourselves" said
Mr.. Boiler with . placid smile. He left
NJ. yaAnsstock gasplng and went into
The eG2ss Of the elderly and weary NJ.
Theo0oea. whe did not ~ yet know
that ~ Cooke failure had affected the
Frs Nss1onAi
oyapathsticaiiy. gently ne dwsit ON
NJ. TAenpson's advanced aSs and his
Growing inslination to get out Of active
business. With calm ana CONVINCING
conAAbnos he assumed that Mr.. Thomp-
soa's saly reason for not getting out
was his inability TO md men who would
b k1nA masters 70 the good old bank
ana treat Il gently and honorably. Mr..
Baksr realised that II was very dim
cult to md men Of suflicient means 10
unAsrtaks % large . purchase who were
of the tyvs Mr.. Thompson wanted a
suecsssora Why not. then. sell Il 20
comparatively young men Of email
means who had the character and the
hacking 70 pay for II on long time. Mr.
Baker got what ne wanted. II was q
six months option. Before II had ex.
pired he had used fundamental credit
to such good advantage that there wers
any number Of very rich men who wers
willing TO finance his purchase Of thu
bask n they could be In the good book
OF the new young banker.
For twenty years the conduct Of the
bank was the marvel Of other Wal
street nnancIers who followed more con.
sentative ideals OF money making. I'm,
der the blAndest and most sanctimoutou,
appearances the bank devoted neari,
half its assets TO Wall stret specula
iioa- The Government did not Interfere
The other hanks did not complain. 4
wasn't oubby TO compain-aiso 4
might have been financially unheaith
fuI And so II was. as the head O
one OF the most important institution
IA Wall street said TO an Evening Worit
reporter. that the First National becam,
known ~ q house o.. mystery whsr
weird and strange things wee done.
~ NEVER TALKS ABOUT HIM
eglF EVEN TO FRIENDS.
10 AL tho years through which Ar
Baker has been toilins toward the rain
aaa could want" he has been slnzula RI
sf-snseinz. Even among his clof
ends he has never been Kiysn 20 tall
bout h!nseif-most bE hnAnclers Ns
10 tell Of their early struggles whsl
fissy sIsrt under lJss counter Ut . nul
essstsy hank In order 10 AID the q,
sssk saiayy OF . Waterman 20 thsx I
Wesb salary - . cssrh-ss dos DAss>
u. eSi1 Nut not Mr.. Baker.
'11sySs the Alma Of mss he H." sst