Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-11-08
Doubled Thelr Money

Doubled Their Money
Neither Eddie Adams nor his
son. Walter, an economics pro-
fesSor at Michigan State Uni
versity. can recall how Mr..
Baker happened to learn that
they had the stock nor the de-
tails Of its sale. Both said they
doubled their money.
Walter Adams said he had
acquired his stock in August,
1859, for $4,000 and sold it to
Mr.. Baker in February, 1860,
for $4,000. His father said he
paid $4,000 for his shares and
sold them for $4,000.
Walter Adams has a copy of
a receipt on stationery of Mr..
Bakers law firm showing the
sale and acknowledging receipt
Of the $4,000. No brokerage
firm was involved, according
to his records.
II didn't know there was
going to be a public issue. 1.-The
economics professor said. "if /
had known. I would have been
domented to have sold the
stock. Why should I want to
do Baker a favor?"
On February S-the day Mr..
Baker wrote Mr.. Karl that he
had bought the Adamses stock
- the final amendment to
MGIC's stock registration
statement was sent to SEC.
The registration became effec-
tive on February IS.
The tax question was still
unresolved but that was settled
in March.
On March 10, 1860, Mr..
Byrnes introduced a bill deal
ing legislatively with MGIC's
tax problem. On March IS.
he said. he received word from
the Undersecretary Of the
Treasury that the legislation
would not be necessary. since
the matter could be handled
enthusiastically after all. And
in May. 1860, IRIS notified
MGIC that the tax ruling it
sought had been granted.
The Washington attorney
who had failed to get the
ruling changed the first time
around and had dropped out
of the case. then was notified
of the fact that IRIS had
reversed itself so he assumed
no other attorney was involved
in seeking the reversal.
Mr.. Karl told The Star that
Mr.. Baker had played no part
in the reversal and had no
advance knowledge that would
attract him to the stock. He
said he never asked Mr.. Baker
for any help, but treated him
as a friend of Glen S. Troop,
staff vice president of the
United States Savings and Loan
League.
mo Personal Motive"
There was no personal mo-
tive" Mr.. Karl insisted. IT was
nice to people Troop said to be
nice to. When I found Mr..
Baker wanted to buy stock, 1
said fine. But it wasn't a
matter of Mr.. Baker getting
anything that anybody else
couldn't have gotten"
Mr.. Troop said that Mr.. Karl
was the one who talked to Mr..
Baker about investing in MGIC.
He added that he may have
introduced them land from
then on they carried their own
ball"
The bulk of MGIC business
is done with savings and loan
associations.
AS to when Mr.. Baker got
interested in MGIC, Mr.. Kari
volunteered that savings and
loan officials usually met in
Washington in January for
their legislative conference and
he attended these meetings.
Mr.. Karl refused to divulgt
! the extent of Mr.. Baker.
MGIC holdings, but he wa.
sure that Mr.. Baker did moi
have as much as 10000 share,
in his own name. He said hi
planned to spend several days
with a transfer agent tracing
Mr.. Bakers stock transactions
so I will be prepared in case
I am asked officially"
The chances are good that he
will be Saked for a timetable Of
Mr.. Bakers investments ir
MGIC-the wonder stock in the
: life of the Senate's former won.