The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-10
George F. Baker Testifies
Before Money Trust
Investigators.
ENORMOUS PROFIT
MADE BY HIS BANK
Since 1873 First National of New
York Has Paid Dividends of
1850 Per Cent on It's Orig
inal Capitalization-Wit-
ness Is Cited for
Contempt.

Washington, January Enormous
profits by the First National Bank Of
New York were recountcd to-day BY
George F. Baker, chairman Of the
board of directors OF the bank. as
witness before the HOUSE money trusc
committee. Mr.. Baker furnished the
committee with records showing that
since its organization in 1863 with 4
capitalization of $500. 900 the bank has
made profits amounting To more than
$50. 900. 900.
In the four years since 1908. Mr..
Baker told the committee the bank
had paid dividends Of 22s per cent. or
more than twice the total capitalize
ton. which is now 10000. 900. When
the capital was increased TO that
amount in 1901 a special dividend OF
S9.50e,00o was declared Mr. Baker
said. to enable the stockholders to
take up the additional investment. In
1905 in order to provide SIC. 900. 900 Of
capital for the organization of the
First Securities Company to take over
the business. (which the bank could
not do under the law" Mr. Baker said.
"a special dividend of SIC, 100000 was
declared This was in addition to tha
regular yearly dividends
Has Paid 1850 Per Cent
Samuel Untermyer, counsel for the
committee. from the figures supplied
by Mr.. Baker. calculated that since he
assumed the presidency of the First
National in 1878 that institution has
Paid dividends of 1850 per cent on
its original capitalization
Mr.. Baker fatty opposed the sug-
cestion made by Mr.. Untermyer that
national banks be required to mako
public their assets, in order that de-
rositors and oekholders might know
the nature of securities held by the
banks. the witness declaring that he
saw no possible good that could come
of such provision. That there is no
improperly in one man holding di-
rectorships in two or more potentially
competitive banks. railroads or indus
trial interpretations was another stand
taken by Mr.. Baker. Mr. Untermyer
reviewed with him a long list of rail-
roads III which he was a director some
OF which the lawyers held were po-
tentially competing lines Mr. Baker
declared that IL was rather an adj
vantage to hold such directorships be-
cause differences between the com
panies can thus be readily adjusted
Such a situation he continued. lis
often beneficial 10 all parties con-
cerned.'
courts of the powerful committee in
investigating affairs Of national banks
developed to-day, when the COMMITTEES
and the House unanimously directed
the Speaker to certify to the district
attorney II the District of Columbia
the case of George G. Henry. the New
York banker who refused to GivulSe
the names of national bank officers
who profted by the hotation of Cali
f1rnia petroleum stock. The district
attorney will be asked to proceed
against Mr.. Henry for contempt.
Mr. Baker did not approve of the
voting trust form of control of c7rpo-
rations. but said ne would not disap-
prove of il if stockholders desired it.
He further said that the voting trus-
tees II the Guaranty Trust Company
himself W II. Porter and r. p Davi-
sOn-had never held a meeting.
Elections Purely FormsI-
Mr.. Baker said the election OF direc-
tors by the voting trust of the Guar
anty Company was purely formal"
Then the directors are seIf-per-
petuating body?" asked Mr.. Un;ermyer.
YES" replied the witness Things
are done in New York that way with
out much consideration. II a corpora
tion = going along all right and Is
about the reelection OF the directors"
Mr. Baker stated that his bank and
J. p Morgan & Co had three directors
in IN. National Bank of Commerce
Would YOU object 70 giving the
committee the list of y1ur ind vidoal
holdings in the various banks and
trust companies in New York asked
Mr. Unte-nyer.
Yes" replied the witness with
some emphasis Z think the commits
tee has no more concern Win that
than with my tailors bill
Isn't IL the concern Of Congress
whether one national bank controls
another such bank
No. sec no reason why one bank
should not control another" decisred
tho f1ancicr.
NJ r-nr.rr,ver argued with ne wits
ness ~ some length. and after a con-
ference with his counsel II. Bake
finally consented 20 xve the Int. 10
saff that besides 20 40e shares ~ Fir<t
National stock he owned $500 shares
ir fhe National Rank Of C,mmcrce.
s0v shares IN the Chase National
Bank. f.-ao ir the Bankers Trust. ie'9
.r the Guaranty Trust. 30 IN ~ New
YORK Trusi. 100 IN the Farmers T-uss
and $50 iu the Astor Trust Company.
Purchase % the Equitable
VI Tnfermver took rp tnr 7-ll'si-
ffa- Of about a.. eHo shares - MAJ ouat
Rank Z Commerce stock b. Mr BaFer
and 90 ,rge ". SULLIVAN from the w.
srai ana Equitable rrsurs-ce Corne-
n!cS NJ Baker said re could not -
member the details - the TRAVIS cticns
but that hc and J. Morgan ano ~.
Stiff-san had conferred afoft f'f r'
,hs.~ ana that they aad tacit'N szr~rf
-, 49,, COZ ~.as 70 10 difia.f after
49,. ,,,..,...r 4 part vent te Nr Nor-
- a. Baker raiG- The purchase 2
,h~ ..-eE ~ ne Equifahle fef1rarr~
So~iss, b. ~ Nsf zaa eita rcntin-
-. Interest rs Nr Bake ar1 ~
Stiiirran. also Wa d-srus-ec-