The Washington herald., 1913-01-10
SECRECY ABOUT
BANK BUSINESS
Continued from PAGE One.


fianked on either side by former Sena-
tor Spooner of Wisconsin and his uncle.
Fisher A. Baker. The latter occasioned
the investigators some trouble by his
Interruptions during the taking of testi-
mony, and was finally cautioned by
Chairman Pujo that the committee could
not hear the arguments Of counsel for a
witness.
Before the committee reconvened, Coun-
sci Untermyer announced that the divi-
dends of the First National Bank. since
Baker became its president in 1874
amouted to 1850 per cent on the original
capital Of s5oo.0oo.
When Baker again took the stand he
was questioned by Cntermyer as TO the
process of electing the voting trustees
of the Guaranty Trust Company. of New
York. He declared that the meetings
were purely perfunctory, that proxies
were sent in and the same trustees were
kept in year after year.
Question-The stockholders, then, have
nothing to say.
Ans~er-No, there has never been a
meeting of the board of trustees, and
there has never been proposed a change
in the plan.
Personal Holdings.
Untermyer asked Baker then to give a
list of his personal holdings in banks
other than the First National Bank.
Baker protested against this. saying
there was no more reason why he should
give list of his private holdings than
his tailor's bill. Untermyer asked
whether Baker did not think 1t was i'm
portant that the committee should know
whether one bank controlled another or
not.
81 see no reason" retorted Baker
why the committee should know, and
furthermore, do not see why one bank
should not control another"
Them said Untermyer. you would
be willing to let one bank control all
the other banks
Il wouldn't go that far"
Where would you draw the line?"
II cannot say as to that"
After consultation with his attor-
neys, Baker gave the following as his
personal list of holdings in New York
City banks:
Forty-six hundred shares in the Bank
Of Commerce, 50 shares in the Chase Ma
tionsl Bank, 800 shares in the Bankers
Trust Company, 1000 shares in the Guar
anty Trust Company, 80 shares in the
New York Trust Company. 100 shares in
the Farmers Loan and Trust Company.
and $50 shares in the Astor National
Bank. These are in addition to the hold
ings in the First Security Company,
which he dominates.
Only "SmalI" Interest.
Baker stated that he did not remember
the details of his election as a voting
| trustee of the Bankers Trust Company
in 1910 and did not recall in detail the
sale by the Mutual Life Insurance Com
pany of its stock TO the Bankers Trust
Company.
What interest have you in the Bankers
Trust Company
And they are worth between 500 and
$500 share. Do you call that smaIl?'
Baker laughed and made no reply.
Can you tell us, Mr.. Baker, why ma
tIonal banks should not states their as
sets?'
Business would come to a standstill II
this were done
DO you mean that the exposing Of as
sets would hurt the banks?"
There are some bonds, perhaps, that
banks would not want exposed
TT seems to me that would be a good
reason for knowing"
IF the depositor is not satisfied with
the way the bank is run he should draw
out his deposit and go somewhere else"
Baker added that the stockholders OF
the banks had a committee of fif-
teen to inform them of the assets of
the banks. Untermyer asked whether
this related to the minority stockholders
and Baker replied that II did not.
Don't you think minority stockhold-
er ought to know"
II had never considered that"
Baker stated this information was In
the possession of the boards of directors,
the clearing house examiners. and the
Comptroller of the Currency, but he ad-
mitted the information was considered
confidential.
why cannot the public and the de-
positors be given this information"
There wouldn't be much business II
these facts were made public. The peo-
pie don't want facts in some businesses.
Credit is the fundamental part of bank
ing, and confidence must go with it."
Bought Chase Bank Stock.
Baker explained that In the organiza-
tion of the First Security Company only
the large stockholders of the First Ma
tional Bank were called in to maintain
control. Prior to this organization he
began purchasing stock in the Chase
National Bank. Baker said he began
buying about ten years ago and OBJ
tanned control about five years ago. He
did not remkmber how he had purchased
the stock, save that 1t was in large
blocks
Does the First National Bank directly
or indirectly hold the stock Of any other
bank?"
Yes. bought the Chase Bank stock
myself 1t was for the benefit Of the
stockholders of our company"
Untermyer then demanded that Baker |
produce a list showing the bank hold |
ings of the First Security Company.
That is our personal business" pro-
tested Baker, "and we would prefer not
to have this list made public. The only |,
stock that can interest this committee In |
Its inquiry Is that OF the Chase National
Bank, and while I do not object to
showing you this list, personally I must
protest against making public our pri-
vate affairs"
Untermyer examined the list and then
stated that there were number of
bank holdings which he desired to make
public. Baker offered no further OBJ
lection, 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, 800
shares of the stock of the Min
neapolis Trust Company, 200 shares of
the Astor Trust Company, $500 shares
of the Bankers Trust Company, 40
2,623 shares representing controD OF the
National Bank of Commerce, 92s shares
of the Liberty National Bank. and go
shares of the New York Trust Company.
The stock of the Chase National Bank. |
Baker said, was purchased at less than
one-half Of its present quotation. During |
the time the stock was being acquired
H..