The Washington herald., 1918-05-27
GEORGE BAKER
GIVES MILLION
Red Cross Donation Early
from Bank President,
Holland Says.

fund was for q, 100000. that amount
having been subscribed by George +.
Baker, now chairman Of the board OF
the First National Bank, New York
City. 1t was characteristic OF Mr..
Baker that he should. the instant op-
portunity came to him. have taken
action of this kind. In his long and
successful career as a banker. and his
association with important railroads.
Mr.. Baker never procrastinated. Hav-
ing made up his mind. he acted upon
the instant. Presumably this con-
tribution of H,eOO,0O0 to the Red
Cross war fund, in the early hours
of the day when the subscriptions be-
gan, was made partly with the pur-
pose of setting an example to others.
who, having large means, might be
by reason of this example disposed to
make greater contributions than they
otherwise would have done.
Sometimes men Of wealth who have
been asked to aid in philanthropic or
other undertakings have stated that
they would come in at the end so to
speak, and make good whatever was
lacking in order to complete the need
ed sum. Mr.. Bakers method Is to
lead. In that way there may be as
sured the completion Of a fund so
that no oneF would find it necessary
to come forward and make up a
deficit.
Helped In Panic.
In other times when dangerous H.
nancial conditions were established
and panic was ruling in the money
markets 1t has seemed expedient, even
necessary, for banks to turn to the
Clearing House Association for the
purpose of taking out certificates,
which serve for liquidating balances
at the association.
Many times banks have hesitated
about doing this, their officers fear
ing that were their banks to ask for
clearing house certificates. the action
might. be regarded by the public as
indicating weakness on the part OF
the banks. The First National Bank
was never at a time of panic in such
desperate need of aid as to make
it necessary to go to the clearing
house for the purpose of getting GER
tifcates. Nevertheless, Mr.. Baker
was always one Of the first to make
application Of that kind. although it
was well known that his bank was
not in need of assistance. He felt that
IL the First National Bank were to
then no other bank OF New York City
need hesitate to make similar appn-
cation: In that view Mr.. Baker was
correct
Since the death of J. Pierpont Nor
gan it has been assumed that much
the greater part OF the leadership in
directing the affairs of the United
States Steel Corporation has been as
sumed by Mr.. Baker. There was al
ways the closest personal as well as
business intimacy between Mr.. Nor
gan and Mr.. Baker, but of course
while Mr. Morgan was alive he was
the predominating force in the United
StStes Steel Corporation. at least so
far as its financial policy and other
important policies were concerned.
But those who are well informed were
aware that MIR. Morgan and Mr..
Baker were always in perfect agree
ment. The remarkable financing and
dividend policy which has been char
acterIstic of the Steel Corporation
since the European war began, re-
fleets. It is believed. the counsel and
influence of MIR. Baker. although no
man is more careful in maintaining
cordial and sympathetic relations with
his business associated than Mr..
Baker has always been.
Foresight Characteristics.
\ few days ago report was made lin
this column OF an incident associated
with the management of the Lacka-
wanna Railroad Company That re-
port referred to the purchase by The
Lackawanna out of its surplus of a
large amount of steel rails of the
finest quality. This purchase was
ha
of steel rails was very low. The rails
were delivered and the management
of the road waited for an opportune
time to place them on the road bed.
This was recently done. The old rails
which became scrap were sold for old
iron for a price. the aggregate amount
of which was greatly in excess. of the
price which was paid some years ago
for the steel rails. The inference has
been strong that this wise and sue
cessful business transaction reflects
the judgment and that remarkable
gift for looking far into the future
and seeing conditions which will be
established in the future. which are
characteristic of Mr.. Baker He is one
of the seven men who actually con-
troll and direct the affairs OF the
United States Steel Corporation. lie
was AT lne lllile OF Ine purchase OF
the steel rails a director for the Lack
awanna RailTOad Company. He was
for this reason in a position to rec
ommend a transaction which would
be Of value both to the Steel Corpora
ton and to the Lackawanna Rail-
road
Mr.. Baker has always been one Ct
the most enthusiastic of those who
believed years ago in a future for he
Lackawanna Railroad Company The
fact that today the stock of this :'aIl-
road commands the highest price IN
the securities market reflects in no
small measure the judgment and
counsel OF Mr.. Baker. Undoubtedly
he has gained, as Z. H. Hartman
gained, personal advantage through
the appreciation OF the stock. Mr..
Hartman owed the greater part OF
his fortnue to his purchase of UaILn
Pacific stock when that was very low.
By his own efforts he brought ths
Union Pacific up 20 a position am ing
the leaders in t.Ie securities market
Mr.. Baker very likely has had the
same experience with the I.acka-
wanna
High Buainess PRINCIPLES,
There was a time some twenty-five