Imperial Valley press., 1913-01-11

supplied by Mr.. Baker. that since the
latter assumed the presidency Of ,ae
institution in 1873 the bank has paid
dividends of 1850 per cent on its or
iginal capitalization.
Mr.. Baker flatly opposed the sug-
gestion Of Mr.. Untermyer that national
banks be requested to make public
their assets, declaring that he saw no
possible good that could come OF such
a provision.
That there is no improperly in one
man holding directorships in one or
more potentially competing banks,
railroads or industrial corporations,
was another stand taken by Mr.. Baker.
Mr.. Untermyer reviewed a list OF rail
roads in which Mr.. Baker is director,
some OF which the lawyer said poten-
| italy were competing lines. Mr. Baker
declared that for these roads to have a
| common director was an advantage be-
cause differences between the COM
panies thus can be readily adjusted"
Mr.. Baker admitted that he and Mr..
Morgan and Mr.. Stillman consulted fire.
quently about large financial operations
and that he and Mr.. Morgan were in
terested in many vast financial enter
prises. He could not say how many.
The witness did not approve the
voting trust" form Of control of cor
porations by which stockholders turn
over tneir voting rights to trustees, bu.
said he would not oppose it if stock
holders desired it. He said he and w.
H. Porter and n. NJ. Davidson, the vot
ing trustees of The Guarantee Trust
company, never had held a meeting
and that the election of directors Of
the company was purely formal"
''If corporation is going along all
right and paying dividends there is no
question about the reelection OF d-
rectorS, ne SAID.
When asked if he objected to giving
| the committee list Of his holdings n
the various banks and trust companies
OF New York, Mr.. Baker said h
thought the committee had no NOR
concern with that than with his tailors
| IAN and that he saw no reason why one
bank should not control another AT
ter consulting with his counsel he
finally decided to give the list. He
said he owned 1900 shares in the
National Bank Of Commerce, 1900 in
Bankers Trust, 1000 in Guaranty
Trust, $50 in New York Trust. 100 in
Farmers Loan and Trust, and $50 in
Astor Trust company.
In discussing the purchase OF the
stock Of the Equitable Assurance 80
ciety by Mr.. Morgan with contingent
interest by himself and Mr.. Stillman
Mr.. Baker said
"Oh, Mr.. Stillman and l just backed
up Mr.. Morgan in one cs those chari
table things he is prompted to do
Mr.. Untermyer elected that an a.
tempt now was beng made to mutual
ize the company and have the policy
holders take over the stock interest at
the price Mr.. Morgan paid for it. Mr..
Baker said he did not think the mutu-
| alization of the company would change
| the management or control and said
| further that he never nad been asket
| to take over the one fourth interest he
had agreed to take.
Mr.. Untermyer asked about the con :
| duct Of coal roads in which Mr.. Baker
was interested, when the law forced
them to dispose of their control of the
coal mines in the anthracite region.
| "They formed sales company and
| sold the mines and the companies sold
the coal to the railroads at the mines"
said Mr.. Baker.
Just whipped the devil around The
stump?" commented Mr.. Untermyer.
| les, Indt is III.
Baker testified that in 1874 the cap
| ital Of the First National Trust com
pany, Of which he is chairman of the
Dof OF directors, was 100000, in
CT ssed in 1907 to s10,OO0,OOO by a
dividend Of s9,5OO,OOO. Surplus of
Is11,G4t, 900 was left after that divi-
dend.
In the last four years dividends Of
226 per cent have heen paid until ~
| 1905 beside a regular dividend of 80
per cent, an extra dividend Of 100 Do"
| cenl was declared for organizing a.
Est Security company to do business
nDs authorized by the national bank
act. He said the company did little
business in stocks.
Mr.. Baker testified that when the
securities company was organized bank
stock held by individuals ''in the inter
ests of the First NATIONAL were turned
over to the company
81 had rather not make those pub
lie " said Mr.. Baker.
Il am perfectly wiling, however. to
let the committee go over the list and
place in the record such stocks as it
believes pertinent to the inquiry"
Mr.. Untermyer, with Mr.. Baker and
his counsel, went over The list and Sc
lccted the foIloyinr.
Minneapolis FIRST National bank, 500
shares; Minneapolis Trust company.
200 shares; Bankers Trust company
1900 shares; Brooklyn Trust company,
45O; Astor Trust company, 200: Chase
National bank, 28,263; Liberty Nation
al bank. 92S; New York Trust com
pany, $50; National Bank Of Com
merce, 5400.
Mr.. Baker said that the railroad
stocks held by the First National banl,