Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-01-09

ing q pistol and bound over under $3.50
I bond. The man admits that ne is from
! north Georgia.
~ Company Of New York was formed ."
THAT is correct"
Tutermeyer then called for the pro-
ductiou of the articles Of Incorporation
for the First Security Company, the
circular addressed to the First Ma
tioua' bank relative 10 the incorpora-
tiou and all other papers relating to the
transaction.
Baker explained that in the organl-
zatigu Of the First Security Company
only the largest stockholders IF the
First National bans We're called in to
maintain control Prior to this organi-
cation he began purchasing stock in
the Chase National bank. Baker said
he began buying about ten years ago
and obtained control about five years
ago He did not remember how he had
purchased the stock. save that IT was
ia large blocks.
Does the t'irst National bank d.
recty or Indirectly hold the stock OF
any other bank?'
Yes. I bought the Chase bank stock
myself It was for the benefit OF the
stockholders Of our company"
Cutcrmeyer then demanded that Ba-
ker produce a list showing the banks
holdings Of the First Security Company.
Protested Publicity.
"That is our personal business" pro-
tested BAKER "And we would prefer
not to have the list made public The
only stock that can interest this com
mittee i'm it's inquiry is that Of the
Chase National bank and while ! do not
object to showing you this list per-
sonally, / must protest against making
public our private affairs"
Tntermeyer examined the list and
then stated that there were number
Of bank holdings which he desired to
make public Baker offered no further
objection. and the list was read in part
1t showed the First Security Company
to hold 500 shares OF stock of the Min
neapolis First National bank; 200
shares Of the Astor Trust Company; D.
500 shares Of the Bankers Trust Com
pany. $50 shares of the Brooklyn Trust
Company, 2S623 shares representing
CONTROL of the Chase National bank,
o, 400 shares OF the National Bank Of
Commerce, 92S shares Of the Liberty
National bank and 250 Of the New
York Trust Company. The stock OF the
Chase National bank, Baker said, was
purchased at less than one-half of it's
present quotation.
During the time the stock was being
acquired the capital Of the bank was
increased Ave times to total Of So
100000.
The First Security Company was
organized" continued Baker. because
Of the complaint of the treasury de-
partment against banks carrying rail
road stock We felt that the security
company would meet this objection. We
have been in business for so years and
we have never yet received a complaint
from the department which has not
been complied with"
do you not know" asked Inter
meyer, that the attorney general has
protested against the organization Of
the First Security Company"
Il only read that in the papers
Have YOU not employed counsel to
take up this matter?
Baker replied that he was not able
to say.
Your purpose in organizing the First
Security Company was to do things
which the bank could not lawfully dc? ."
- would say rather that it was what
the bank was not authorized to do. The
First National bank was organized to
deal in bonds, which it has done since
the civil war
when did YOU receive the complaint
against stock buying
About ten years ago
How long afterward did you con-
tinue to buy stock
For several years. We were finally
told that we must not do it, and then
the First Security Company was or
ganized.'
Us not the First Security Company
a mere evasion of the banking act?'
Il would not regard IL So"
ut is under the same management,
is it not?"
Yes"
1T did not sell or buy without the
aid of the bank?'
That is correct
And the bank lends the Security
company money
THAT is true"
Baker stated that the First Secur-
ity Company does not do much bust
ness He added it has a capital OF
about $4,000. 600 has declared dividends
of H. per cent and has accumulated a
40 per cent surplus since it has been
Ia business
81 should say that it must do a
small business" commented Inter
meyer, sarcasticauy
publicity Would Hurt Business"
"Cau you tell us Mr. Baker why
national banks should not state their
assets ."
business would come to stand
still If this were done
DO you mean that the exposing OF
assets would hurt the banks ."
There are some bonds, perhaps. that
banks would not want exposed"
'It seems TO me that would be q good
reason tor knowing"
"lf thu Gepositor Is not satisfied with
the way the bank is run he should draw
A. So . ) Fl