The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-05-04

NC 1Gu1C1Ul Oh QTO&IeSS.
George F. Baker,
Third Richest Man
In u. S., Succumbs
Continued from page one)
acquired n Of the oldest reputa-
tionS-that for Silence-ever asso-
ciated with one of the great captains
Of American finance and industry.
Because OF his aversion to being in
terviewed and talking for publica-
ton, Baker became known as 1.-THE
Sphinx Of Wall Street." Although one
Of the outstanding figures In the
financial and transportation develop
nnent of this country, it was not until
recent years, when associates on sew
eral occasions paid him tribute, that
the public generally began to learn
OF him. Up to that time less was
known personally Of the aged banker
than of many men whose standing in
the business world did not begin to
compare with his Importance.
Natural modeSty and inherent re-
ticence kept yelled the details of
Bakers early life and to all, except
his immediate associates in the Wall
Street district, his extensive financial
operations we're unknown. Biograph-
ers found it difficult to obtain infor-
nation concerning him with the re-
suit that American biographical works
contain only the most meager details
Of his life.
It remained for ]. p. Morgan and
Charles E. Mitchell, president of the
National City bank, to tell at the an
nual banquet of the New York State
Bankers association. Jan. II, 1925,
more details of the life of the aged
banker than had ever before been
given to the public. The event was
turned into a testimonial dinner with
Baker as the guest of honor.
Morgan disclosed for the first time
the importance of Bakers service. to
the country in the panic Of 1907,
without, however, giving the details,
by relating how his father, the late
]. Pierpont Morgan, told him the
story Of those anxious and agitated
days. Summing up what had been
accomplished, the elder Morgan said
to his son: "Of course. you see, 1t
could not have been done without
Mr.. Baker. He is always ready to do
his part-and more"
Began As Clerk
oo1-nx hA~4yn H{c 6n~0,io- A~.>>~ -
Albany, N. Y. He then became q
clerk in the state banking depart
ment for seven years. It was while
there in the early part Of 1863 that
Salmon P. Chase, then secretary of
the treasury, conceived the idea Of
selling bonds through the banks and
in addition forming banks which
could pledge bonds themselves for
the circulation Of currency up to 90
per cent of the value thereof. That
was the start Of the national bank
ing system.
This development greatly interest
ed Baker and he talked it over with
MI. Thompson, then one Of the finan-
cial leaders in New York. The latter
decided to open one of these new ma
tional banks and invited Baker to
become teller, the bank being formed
with a capital Of $4,000 Thompson
offered Baker all the stock he want
ed and agreed to carry it for him, but
Baker refused to accept more than
his accumulated savings would pur-
chase. His first investment was 80
shares Of the banks stock.
The principal business of the bank
at the outset was the sale of govern
ment bonds. but the bank haG hard
Shedding. It was denied admission to
the Clearing House. Everybody sus-
pected the kind Of currency that was
afloat, but gradually that wac over
come and In 1868 it was admitted.
Meanwhile the bank had got started
and increased its capital to $500, 900
and then in little more than q year.
to 100000. Baker had become CASH
Ter and active head of the institution
when only Is years old and frequent
" was called to Washington by the
secretary Of the treasury for advice.
Baker became president Of the First
National in 1877 and remained In that
position until 1909, when he resigned
and was made chairman Of the board.
For q long time after he had been In
control the bank remained inconspic-
uous. Then one day "the street" and
financial circles generally were elec-
trified by announcement that Bark
er's bank" was preparing to double its
capital and declare q dividend equiv
alent to SIC, 1000, 600. Nothing like this
had ever been heard Of In American
banking history. But not a word con-
corning the move was uttered by the
president Of the bank.
Became Powerful Figure
From that time on Baker became q
prominent figure and the First Ma
tional bank q powerful factor In
American financial affairs. The late
J. Pierpont Morgan began to seek his
counsel and James ]. Hill called up
on him to aid In the expansion OF the
Great Northern and Northern Pacific
railroads.
Baker bought into many IT the
companies OF which he was q director
when their properties were down ct
the heel. He foresaw the inherent
values In them II they were prudent
~ managed and he supplied q large
part Of the foresight and prudent
management which helped increase
their market value.
Baker alone survived the captains
of the march Of railroad and indus
trial wealth in the United States In
the last generation. He had wit
messed the passing Of J. P.erpont
Morgan, James Sullivan. James Hill.
e. H. Hartman, Jacob 9chiff. Henry
G. Prick, william Rockefeller. H. II.
Rogers and others. all Of whose
deaths preceded a period in which,
Mr.. Baker was to perform what many
have declared some Of his most Inn