Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-01-10
F FINANCIAL BOSS
FEELS FOR THE
LITTLE MAN
But" He Says, Laws to
Safeguard Him Would Not
Be Practical.

LoI minority SLOChnOIQeFS WNeu q rail- :
road is sold was urged by George F. |
Baker, Wall streets leading fnancier, |
next to j. T. Morgan before the Pujo !
money trust investigating committee
today. He cited the instance when he |
purchased the Central railroad of New !
jersey a s evidence of his belief.
Minority stockholders should be safe |
guarded, he declared, but asserted that |
it hardly was practicable to enact a
law which would save the little man"
when a railroad changes hands.
The assistant boss of Wall street"
again protested against publicity Of
operations Of banks and declined TO |
give the committee the list OF pool |
syndcates for stock promotion which |
the First Security Company and the |
First National bank of New York have !
engineered. He would not say that |
publicity to prevent borrowing of bank |
funds by officers and directors was adj
visable
Baker could recall the details Of none !
of his railroad deals, especially in the
anthracite coal region, and did not re-
member the loan of millions on bonds |
issued by the Southern railroad. He
informed the committee that present |
day railroad presidents are practical
men ande are selected uniformly by the
financial interests in control of the
roads
In 80 Corporations.
How many corporations are you In
terested in as a voting trustee or d.
rector?" asked Untermyer.
"Too many" replied Baker He add
ed that there were so corporations on
which he, or members of the First Ma
tional bank, which he controls. served
as directors or trustees. In 81 corpO-
rations he or a member of his company
is Jointly interested with j. p. Morgan
or a member of his firm.
But you have made me out to be
such a director" concluded Baker, that
would like to explain that ] never
became voting trustee or a director
in any corporation by my own desire or
at my own solicitation"
In declining to give the committee
information as to the pool syndicate
formed in the First National bank or
the First Security Company. Baker
characterized the latter institution as
purely private" Untermyer showed
determination to get this information
and it's relation to the purchase and
sale of securities for purposes of the
stock promotion, and after delaying for
some time Baker agreed to determine
| later what he would do.
The average deposits of the First
National bank, said Baker are $780,
900. of which $29,6 10000 is con-
tributed by 149 depositors for corpora
tions. Baker again protested against
any publicity Of assets.
Don't you think" asked Untermyer,
that publicity Of accounts would pre-
vent officers and directors Of banks
from borrowing the banks money?
81 have no opinion on that" said the
witness.
Minority Sufficient For Control.
| Baker said that the stock of the
Chase National bank was turned over
to the First National bank at a price
ranging from between 5000 to $500 a
share. He said that this bank had sold
over $4,000 shares to an officer Of his
| company which represented the con-
! troll.
"a small share of stock" he contin
ued, is sufficient to control a corpora
ton when it is in the hands Of an ac-
tive officer" A majority of stock is not
necessary, he said.
! O. Did you ever hear of the stock
! holders of the company, where the
stock was scattered as it is in the Chase
National bank turning out the man
| agement?
A That is never done as long as the
management proceeds successfully.
! Q. Did you ever hear of a case, no
matter whether the management was
good or bad, where scattered stockhold-
ers, holding q majority of stock, were
able to GUST the management:
| a. I don't recollect any.
O. And until the management is !
turned out it is impossible to lind out
what they are doing:
| A. I don't think that is altogether
true. 1t might be so in some cases, and
again it might not
Baker declared that when the Chase
bank increased its capitalization from
one million to live million dollars its
! dividends increased from Il to 20 per
cent The present surplus of Che Chase
| National bank is five million dollars, lie
said.
! Both the Chase National and First
! National are represented at the loan
stand on the stock exchange and have a |
regular department devoted TO lending
money on different stocks. Baker de-
| clarel.
In 81 Anthracite Roads.
Cntermyer read figures showing that |
Baker and Morgan were directors in |
coal carrying railroads that handled 81 |
per cent of the total anthracite output
in Pennsylvania To this statement |
and number of questions Baker was
unable to add any Information He did |
not recall the circumstances which led |
TO the purchase by the Erie railroad of |
the New York Susquehanna and West !
ern. and he was unable to give details |
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