Newspaper Page Text
THE CITIZEN, FRIDAY, JANUARY 17, 1913.
TWO MONEY KINGS
George F. Baker Is Newly
THAT two men virtually dominate
the flnnnces of the United
States, practically creating what
has popularly become known as
a niouey trust, was the startling but
nevorthelcMM truthful conviction forced
upon the people by tho icstlmony of
George I Hiilter before tho Pujo con
gressional commltteo at Washington
recently. One of tho men who control
our money Is Mr. Hiker himself. The
other Is .1. I'lerpont Morgan. The name
of Mr. Morgan Is known to every child
in the country almost as soon as he can
speak. He has been made the subject
of popular verso nnd song
Hut not so with Mr. Baker, no has
managed to successfully keep out of
the llinollglit until now. lie can buy
nnd sell the ordinary millionaire who
bursts Into print every time he makes
a financial coup. As a rantter of fact
Mr. Baker Is now looked upon ns one
of the four richer men in tho United
Was Once Bank Clerk.
There are many men In Wall street
who remember George P. Baker when
he was a clerk In the bank that he now
virtually owns. Not the least amazing
thing about his Interesting career Is
that ho has been able to climb so high
'Without attracting any especial atten
tion or making any undue noise about
It. He Is a man of silence. And, as
the Pujo Investigation brought out.
next to Morgan he Is the greatest mnn
In Wall street. Few persons among
the general public rcnllze tho real pow
er of this Inconspicuous individual, but
It develops that he Is ono of tho biggest
figures in tho coal fields and In bank
ing. In tho fields of transportation,
1913, by American Press Association.
J. P. MonoiN.
Insurance, rubber and Innumerable oth
er great industries be is a commanding
Quietly, silently, unobtrusively, ho
lias gone nhead year after year with
never a backward step. He has tram
ipled on no one. He has made no enc
'inles, aroused no antagonisms. His
name has anpeared raroly In the news
papers. He has money onough to buy
lout nil the Lawsons, Gateses, Pattens
land the rest of tho crowd who shoot
off skyrockets every tlmo thoy buy or
sell a few bushels of grain or cotton on
a margin. Nobody has heard of Baker
Imylug any stock, but when ono
comes to look over the list of the big
Amerlcuu properties printed In connec
tion with this article ho finds the own
ers to be Mr. Morgan and Mr. Baker.
Most Silent Millionaire.
Thoso who know George F. Baker
and have a fair Idea of tho power ho
wields do not hesitate to say that be is
an "irreslstablo force" nnd tho most
Hilent among all the great million
aires. Now and then some one sees
him on the street "engaged in conver
sation" with somo one. That menns
that the other man is doing nil tho
talking and that Baker is listening. It
Is said that a visitor once spent six
weeks at Mr. Baker's summer homo at
Tuxedo nnd never heard him speak a
word in nil that time. A nod or ges
ture was his usual expression of greet
ing or gratification.
Mr.'Bnker worked up from a clerk
In the First National bank, which ho
now controls. It was when he was
cashier that the opportunity of his life
came. Ho grasped It instantly nnd
turned defeat into victory. His assist
ant had mado an error in Judgmont for
which Baker would also bo held re
sponsible. They stood shoulder to
shoulder nnd personally assumed tho
fi ospectlve loss. And Instead of being
IMmlssed they laid tho foundations of
Story of His Bise.
As the story goes, John Thompson,
tho originator of tho national banking
.system, was the president of the First
National bank in those days. Tho re
lations between the bank nd the gov
ernment woro close, and to tho bank
was Intrusted the buying of all foreign
rrhanee that the government needed
He Shares Reign Over Millions
With Morgan -Great
Power They Wield,
to pay the Interest on Its bonds abroad.
Henry Fnhnestock, now ono of the
First National's chief officers, was Bnk
er's assistant as cashier and had chargo
of buying tho exchange.
One day Fnhnestock, ns an act
of kindness to n friend, bought some
big drafts on London for tho govern-1
ment from Vie bnnking house of Jay I
Cooke & Co. Bilker npproved the pur-1
chase, for Cooke was considered abso- !
lutoly sound financially. A fow days 1
later Cooke fniled sensationally and '
disastrously. Cashier Baker and his
nssistant were much concerned, not
only on account of the money involved,
but because of the severe criticism nnd '
probable dismissal that, might follow
from Mr. Thompson.
"It looks ns though we would have
to buy the bank to save ourselves,"
said Baker In talking tho matter over
Then with this determination they
went to President Thompson and made
n proposition to him that staggered him
nt first They knew that he wanted to
retire from active management, that
he felt that his work was done nnd
that he wanted to be relieved of some
of tho heavy load of responsibility that
he had borne for many years. They
were young, vigorous and ambitious.
They proposed that he sell them enough
1913, by American Press Association.
oEonan r. baker, walking.
of his stock to entitle them to exercise
control nnd that If he would retain the
presidency of the bank for six months
they would purchase it at a certain
figure. They did not have much mon
ey, but they had tho courage to believe
in themselves. What they practically
did was to get from President Thomp
son a six months' option on the shares
of the bank, for which they negotiated.
Buys Out President.
The old gentleman had a high, admi
ration for the two young men. He
knew them for their worth, for their
application, for their grasp of affairs,
their kuowledgo of men nnd of bank
ing. He was weary of his long years
of labor, and he accepted their pro
posal and gave tho young men a
chance. The next six months were
very busy ones Indeed. Baker and
Fnhnestock had to get out nnd scurry
around to get backing to buy the stock.
They succeeded, nnd whon the half
year was up they obtained control. To
day these two men are the same friends
that they were when they were bank
clerks together. They occupy tho same
box at the opera. All through life thoy
have gone along side by side. Baker
has climbed higher in financial power,
though Fahnestock Is many times n
millionaire, now vnst George F. Bak
er's fortune Is no one but himself
All these things considered It isn't
any wonder that Mr. Baker mado the
whole country sit up nnd take notice
when ho took the stand before the
Pujo committee. Ho virtually admit
ted that Ire and J. Plerpont Morgan
constituted power equivalent to a mon
ey trust and that tho country might
be wrecked If this vast power foil Into
the hands of "ambitious men."
He Discusses His Power,
Here is ono bit of Interesting testl
ony by Mr. Baker:
"Will you name a single transaction In
the Inst ten years of over $10,000,000 In
amount which has bn financed without
the participation of Messrs. Morgan & Co.
or the rirst National bank or the City
bank or Kuhn, Loeb & Co., or Bprr &
Co. or Lee, Illsslnson & Co. or Kidder,
Peabody & Co. of Bolton and the First
Hatlonal bank and the Illinois Trust and
Savlnrs bank of Chicago. All of these
houses are associated with Mr. Morgan
and Mr. Baker. Take the whole ranee
of transaeiloas and point to a single one
that has been financed without the eo-
MILLIONB CONTROLLED BY
MORGAN AND BAKER.
Hero Is a list of the direct Morgan
Baker flotations, which cany In each
case potentialities for domination:
Chemical company Ht.UO.000
American Telephone and
Armour & Co 30,000.000
Atchtaon, Topeka and San-
V I'e 119,000,000
Auntlc Coast line 7.EO0.000
Boston nnd Maine U.KO.000
Chesapeake and Ohio 7,320.000
Chicago, Burlington and
Chlcnco Telephone t.OOO.OOO
Cleveland, Cincinnati and
Florida East Coast 10.000,000
General Electric 10.000,000
Illinois Steel 10,000,000
Indiana Steel C.CO0.OO0
Interborough Rapid Transit 10,000.000
International Harvester ... 16,000,000
Kansas City Terminal (,17.000
Lake Shore 199,000,000
Maine Central 14,000,000 T
Mlchlcnn Central 63.100.000
National Tube 10,000,000
New York Central and Hud
son rtiver S7.000.000
New York, New Haven and
New lork, Ontario ana
Western 2,000.000 4
Pacific Telephone and Tele
Portland Hallway Light and
Power company 16,000,000
United Fruit 4,2X,000
United States Rubber 8,000,000
United States Steel 30,000.000
and Telephone IS.000,000
operation of some one of those Institu
tions." "I am not sufficiently familiar with It
to toll you, but I should Judge that White,
Weld & Co. and Rollins & Co. had done
so," was the reply.
"Do you not know that White, Weld &
Co. and Kissel, Klnnlcutt & Co. market
largely J. P. Morgam & Co.'s bonds?"
"I did not suppose so. I have not been
familiar with the business of the street
for a half dozen years."
"Are you able to point to a single trans
action In the last Ave years of (10,000,000
Photo by American Press Association.
AMOXmUt STUDY OF MB. BAKER.
and over that has been financed in the
United States without tho co-operation of
some one of tho houses I havo named?"
"No, sir," replied Mr. Baker.
Regarding the concentration of mon
ey power Mr. Baker sold:
"I suppose you would see no harm,
would you, In having the control of credit
as represented by the control of banks and
trust companies still further concentrat
ed T Do you think that would be danger
ous?" "I think It has gone about far enough."
"You think It would b dangerous to go
"It might not bo dangerous, but still It
has gone about far enough. In good hands
I do not see that It would do any harm.
If It got Into bad hands it would be very
"If It got Into bad hands It would wreck
"Yes, but I do not believe It would get
Into bad hands."
Mr. Baker was very frank in admit
ting that It wasn't an enviable situa
tion for n country to be in.
How "Wealth Is Dominated.
Here are seven painful but truthful
facts which stand out strongly In the
testimony of Mr. Baker before tho com
mittee: First That no great enterprise can
go forward successfully in this country
unless tho men at the helm havo the
confidence of J. P. Morgan and his as
sociates. Second. That the financial situation
in this country today Is subject entirely
to the power of a few men.
Third. That these men are tho arbi
ters of what Is right and good for the
remaining 00,000,000 nnd that their
Judgment must be accepted because not
even the government Is strong enough
to cope with them.
Fourth. That competition is a thing
that may exist among Urge enter
prises, subject again to the Judgment
of the money master.
Fifth. That the great system of in
terlocking directorates extends over all
tho major Industries and that competi
tion may be killed without Interference
from the law.
Sixth. That Morgan and his associ
ates have handled every bond lasue of
more than 110,000,000 in the last dec
ade and that those bond Issues carry
the right of control.
Seventh. That the ethics of banking
preclude a bank from financing a con
cern that would Interfere vrlth the con
eanu that k haa air .
REVISION AND APPEALS.
Notice is 'hereby given, pursuant
to the provisions of the Act of As
sembly, entitled "An Act to provide
for tho ordinary expenses of the
government, payment of the Interest
of tho (state debt, receiving propos
als for the sale of public works and
for other purposes," approved tho
27th day of July, 1842, that the as
sessors of the several townships nnd
boroughs of Wayne county have
made their returns of their assess
ments for tho year 1913, and that
tho following Is a statement of tho
aggregate values and assessments
mado by said assessors of the several
subjects of taxation enumerated in
the 11th section of said Act of July
27, 1842, and in tho several Acts
supplementary thereto, and of the
whole amount of county taxes ae as
sessed In said townships and boroughs.
Notice Is also given pursuant to
Act of Assembly aforesaid, that the
following days and dates appointed
for the appeals from the assessments
for the several boroughs and town
ships, have also been appointed by
tho Commissioners of eald county
for finally determining whether any
of the valuations of the assessors
have been made below a just rate ac
cording to the meaning and intention
of eald Act.
The Commissioners of Wayne
county eittlng as a Board of Revis
ion have appointed the following
days and dates respectively for hear
ing final appeals 'from the Triennial
assessment of 1913 at the Commis
sloneru' office, Honesdale, Pa., be
ginning at 8 a. m. Monday, Feb. 3,
1913, and closing at 2:30 p. m. Fri
day, Feb. 7, 1913:
Monday, Feb. 3 Honesdalo and
Tuesday, Feb. 4. Berlin, Damas
cus, Manchester, Buckingham, Leb
anon and Oregon.
Wednesday, Feb. 5 Scott, Star
rucca, Preston, Mt. Pleasant, Cherry
Ridge, Dyberry and Bethany.
Thursday, Feb. 6 Clinton, Can
aan, South Canaan, Prompton,
Waymart, Lehigh and Dreher.
Friday, Feb. 7. Salem, Sterling,
Lake, Hawley, Palmyra, Paupack.
Persons having a grievance should
try to adjust It with the assessor be
fore tho appeals, if this cannot be
done, and It is not convenient to at
tend the appeals, write the grievance
and mail it to the Commissioners'
offlco and it will receive attention.
County levy for 1913 Is 4 mills.
Attest: T. Y. Boyd, Clerk.
Honesdale, Pa. 3eoI3
GROWING WAYMART BIDS YOU
The hustling little horough of
Waymart, located on the Honesdale
branch of the Delaware and Hudson
railroad, at the base of the Mooslc
mountains, is growing rapidly,
There Is only one house vacant In
that village and It is one of the
best buliL nouses, there, too. It con
tains eight rooms and is a store and
dwelling combined. Can bo used for
two families. The property la lo
i cated in the center of the town and
I la directly opposite the postofllco. It
would make an Ideal place for al
most any kind of business. Tho lot
is C0xl60 feet and can be bought on
easy terms of the Buy-U-A-IIomo
Realty Company, Honesdale, Pa.,
Jadwin building. If you cannot
come to Honesdale use the telephone
or write and further description will
be cheerfully given. 99tf.
The Jeweler 1
t would like to see you If j
you are In the marketl
I for 4
i WARE, WATCHES,
!i AND NOVELTIES :,
I "Gnwunteed Articles only sold,1 ',
Designer and Man
Office and Works
1036 MAIN ST.
NOTICE OF ADMINISTRATION,
OAKLEY B. MEQARQEL,
Lato of Sterling, deceased.
All persons lndebtod to said estate
are notified to make immediate pay
ment to the undersigned; and those
having claims against said estate are
notified to present them, duly attest
ed, for settlement.
H. R. MEGARGEL, Admr.
Sterling, Pa., Jan. 14, 1913. Bw6
The Ideal Guardian
of the estates of your minor chil
TSagS dren. It has the very best facilities
for the profitable and wise invest
ment and re investment of the princi
pal and accrued income -The Scranton Trust Co.
BIO Spruce Street.
Our GOLD TABLETS if used promptly
make short work of a cold.
O. T. CHAMBERS
I JOHN H. WEAVER,
After an absence of two years
from Hotel AVnync, during which
tiino I leased tho building to other
parties, I now desire to announce to
tho public that I Imvo again assumed
control of Hotel Wayno where I will
be pleased to greet my former pa
trons. Tho hotel is being thoroughly
renovated and placed in first-class
condition for tho reception of guests.
Good table accommodations. Special
ntteation given to transients. Stable
in connection with hotel.
11. E. SIMONS, President. O. A. EMERY, Cashier.
CAPITAL STOCK - - $75,000.00
Main & 10th
BANK WITH THE
Reasons Why !
It represents more stockholders than any other bank
in Wayne county.
ITS DEPOSITS HAVE REACHED OVER THE
mark and is steadily growing with the people's confidence
and the bank's progressive yet conservative methods.
Its expense of management is limited to amount of
business; together with it's trust funds invested in bonds
and first mortgages on improved real estate assures its de
positors absolute security.
It treats its hundreds of small depositors with the
same courtesy as though their funds were deposited by one
or more persons
Thib bank comes under the strict requirements of the
State banking laws as all savings banks and is frequently
visited by the Pennsylvania State bank examiner, besides
having a board of directors consisting of sixteen of "Wayno
county's reliable business men and farmers.
M. B. Allen, W. . Fowler,
George O. Abraham, W. B. Gulnnlp,
J. Sam Drown, U. J. Hanlan,
Oscar E. Bunnell, John E. Krantz,
Wm. H. Dunn, Prod W. Kreltner,
J.. E. Tiffany.
A PPRAISEMENTS Notice is giv
en that appraisement of $300
to tho widows of the following nam
ed decedents havo been filed in tho
Orphans' Court of Wayne county, and
will bo presented for approval on
Monday, January 20, 1913 viz:
Geo. J. Bergmann, Texas: Per
sonal. Geo. W. Butterworth, Sterling:
W. J. BARNES, Clerk.
JOHN H. WEAVER
O. Wm. Sell,
II. B. Slmone,
George W. Tiadell,
jilt i mutt tttmtttttrn