The New York Times from New York, New York • Page 2

aaa.BBaBSnaB-"SS""" voldircs Chat turned rTW.lt with the First National Bank, the same retttrtleny ewnpetltlv bank. we did wUh th Bank of the RepubHc-. er industrial corporation. was another to that concern, a. shares.

1 l'T iwospered wen Itir. and tho statement road by Mr. Baker. Mr. Un- v.twnal Bank 500 stock became more valuable, and we tn- "arr rvvtew-d with a Ion taw fl" Irlhatn "nk wa in hn ft Director, mi of anil tfuirs was Irsr.

nun u- wen or nicn is lawyer tenttally competing Mm. Mr. th.t if waa ratner an advantage i a KnLI tr. tnmhlna. because OK- fereac IxtwMn tlie companle can thu be readily edjutd.

DUCO Htrisiivii, i oftn beneficial to-all parties concerned. Tb wllnea did not approve of in. "Buch altnation." Tottnit (rnl form of control of cor-," which the -lock noioer. turn over their voting rights to voting iraatees, but said that he would fiot unapprove of It tf stockholder dfalrod It- rI IfKM Per Cet. DitUeil.

lr. Baker ald that hecame Presl-eut of th First National Bank In Wl. and wa now Chairman of Its Board or Wrectont and of ita Eiccutlvo Committer Th capital was when beeaiae IU Prerid-nt. In 1873 tho sur-piiB wa 1350.000 and th surplus and tin-divided profit DunnBahJ tb panle the urplu and undivided pror-H continued to mcrea. reachm tanl did not, bother yoa murhr Inquired Mr.

I'ntennyer. "I tpi-ss If you had been thffj you would have thoueht eo, Tcwm Tj. I. 1. Jfc 1 Tilll ws ncrwid from to 1I OOO.UW.

Tid ivfr luker said, was br.iBht about hr th payirent of dlt-denl of on the r.fSM. That Is dividend of 1WW rr V' Inquired Mr. ITntrmyer. Affr payln dljldetid tb bank till had a surplus of ll.41.134 left In inoi There were deposit that That urplu was equivalent to 2100 per cent aauitiunai on Stair atikod Mr. rnt'-rmyr Tee, Hlr." r-pllc Mr.

Baker. Mr. Bsker nt gave a the profits of the bunk. He said that from the time the bsnk capital waaln-creaied In to the dll-dends paid were: 1WG. or 20 per cent, of the capital; 1W.

'M per JWT. 2P per with an extra 5 per lW6, 26. Pr 1907. 32 per the year of th formation of the First Becurity Company. 132 per cent; 1W9.

28 per 1B10. 2i per Ml. 38 per cent, and 1812, 33 per cent. The total dividends of the four year from to 1011. inclusive, were 126 per cent, were they not, equal to In dlvldendsr asked Mr.

Untermycr. Yes. Blr." replied Mr. ker. At the time of this declaration of the rtra dividend of 100 per cent in 1908, in addition to the 32 per cent, was ther a eourtty company formed! Ye.

8lr "That 100 per cent or 110.000.000 was declared, was not for the purpose of iMnnlttin It to-to used In the organisation of th First Security Company? "Yea. Blr." rnaatla StetHtr CaiaBy. Mr. Untermyr plunged at one into tb.a affaln of tb First Security Company. At hla request.

Mr. Baker handed over th paper connected with the organization of the company. The certificate of Incorporation, dated lfeb. 5, 1B08, wa taken out by Fisher A. Baker, Franct Hlne.

and George F. Baker, Jr. It limited the capital etock $1,000 at th start, ten Bharea of 100 each, four of which wer held by Hlne, three by George F. Baker, and thre by Baker. Th object wa stated to to acquire, hold, Improve, develop, nae, lease, ell.

exchange, and deal In real and personal property of any character, letters patent, patent rights and other property or rlgUts; to aoqulrft, sell, and den.1 lu stocks, bonus, notes, and evidence of Indebtedness; to Iiut bonds, notes and loans, secured by inortaaKf. Th urtlole providel thai no iKTMn who Is not a director or the First National Bank shall be eligible as director In the First Security Company." Tbe agreement with the stockholder for the formation ol tne nm recuriiy iltl Vb 14 1fMM. tMV -mn nf tha First National Bank and tho bank's atockholdera Tho Hlgnins: this agreement were Crmomv V. Baker. Harris C.

Fahnestoek, Krancia Hlne. Ilenry P. liavison. it Ti.v.r and Charles L. Hackis.

who became Trustee of the K-iMirtt' Company. The stockholder of ih haiik, feigning thl -agreement, were J. pleriont -Morgan, jamea J. uin. tm II Muora.

James A. Blair. John MitcliKll. Arthur C. James.

Fisher A. Baker and others merely designated as Thin agreement showed that th Re euriiv c.iimanv was formed because the bank was limited In Its power to acquire and hold real estate, securities, stocks and other property "wriicn limitation is embarrasshi to the conduct of the legltl mate business of the bank and operates to the pecuniary disadvantage of the stockholders of the bank." Mr. liaktr ulwo identified a circular, dated Feb. It, 1U12. which was issued by the First National Bank to its stockholders.

When Mr. Untermyer produced thla circular. Fisher A. Baker Interrupted by saying: You are mistaken aooui that" Mr. TJntermyer thereupon asked Mr.

Baker to look over the circular, and he said there wa no doubt that such a circular was Issued by the bank to It stockholder Inviting them to subscribe to the Security Company stock. Mr. TTntermver here began his Questions: (J. What was the purpose of organizing the security company? A. Exactly as stated in that circular, tor doing business not Bpecially authorized by the banking act.

We held some securities that in the early days wer considered perfectly proper. But under some later decisions of the courts tbe holding of bank stock or other Btock was prohibited. At any rate, the Controller prohibited It Q. Was this company formed to enable you and your associates to deal more freely in stocks? A. 1 any of the securl-tiea If you came and wanted a loan on your property of.

say $1,000, and put It up as collateral, under the National Banking act we have no right to do it Today, in the lectirlty Company, we can make this loan. Was It to enable your associates to deal In stocks, buy and eell Btock freely? A. We never did that, and never have sine. The Security Companv doe not buy and veil stocks? A. I did not say not any; but not freely.

I do not think, since ita organization, our purchase of stocks averuged 100 chares a day. Q. What were it dealings? What wa th character of It business? A. Simply a hold th Investment wa bad principally. Baagkt Chase Bank Catrl.

Mr. Baker testified that the' First Na tional Bank did not own part of th Chase National Bank stock at the time of th formation of the First Security1 Company, but -Individually In 1008 held a little more than half of th stock of th Chase National and had a clear control ot th bank." Mr. Baker said that whll acquired tht Chas Bank stock htmaelf he held It tn thr-lnterest of th Flrrt National Bank. He denied that acquired th Chase Bank stock out ot th assets of th first National Bank. It had never been carried as an asset tn th First National Bank.

There was no paper of any kind showing that it ever belonged to the First National Bank. It wa Just a matter ot your word? asked Mr. I'ntermyer. "Yes, Sir." said Mr. "I do not know that I even expressed a Word." He did not acqulr the Chase Bank Btock all at one time.

It was some-where around five, six. or seven year VI Can you tell whether th Flret Na tional ever acquired interest In other banks, for the bank? A. The First National Bank never did. These bank stock wer bought In the Interest ot th bank. ti.

In what sense do you mean tn the interest of the First National Bank? I boueht them tnvself. Q. You paid for them with the Idea that the stockholders of th First National Bank should get the benefit of them? Haw a ft Iroin them, and when thev omnium ih. security company they were turned over tna company. air.

ttaker asserted that the stocks -bjBka. which he acquired In the tntereat Stock, were turne.1 over to ih. til uiliuuuii inn furity Company, but when he waa asked to give list of these stock he balked, earing that to rather our own personal matter: there are no stocks of any bank of ours that pertain to this intjulrv. er-eept the Chase National Btock, In "which we nave a majority of th share. The rst were In small amounts.

I would uot like to publish the nanif MrakorJproduod the bank, railroad, and other stocks held bv the nd Mr. Unter- I mvr read. Into tbe record a partial list Truat uSfn Trait ''rr' Comi'anr DtciS ban aa i Bik w.imiiI ik N.OIWi B.nk of TM of th''. V'Kv thi Klrt National Bank, v-mi earrrlntf lailroao. ana Bask Wa Csaplalad Of.

complaint been made by the department at Washington about their car-n-ng stocks? A- Tea, and for that reason we organized the security company and turned them over to comply with th regulations. We had been In business half a centurv there. We never had any complaint from the department of anything that th-v thought ought to be run differently that we hav not rectified. Q. The security company Itself ha been the subject of complaint, na it noir Q.DId yon know that tb Attorney GenTaJ rendered an opinion as to the -cur-tr company legality in connection with the bank? A.

Oh. 1 saw something about It In tb papers, but they never complained M. The First Security Company. Mr. Baker said, wa Identical tn It Directorate with the Flret National Bank.

The stockholders of th First Security Company do not vote, but put their stock In th hands of TruKtee. who are the officer of th bank and the officer of the company. Tha questlo of th legality of a bank holding stock." said Mr. Baker, "only came up for consideration In recent year. The National bank were authorised to deal tn bonds.

That' what the First National wa authorized for. to deal in bonds of the Government In time ot war. It was not considered out of tbe way then to bur stocka The purchase of bank and other stocks wa never questioned by th Controller until ten years ago, but after we were told that we must not do It we stopped It" Mr. Baker aid not regard the organw cation of the First Security ComDany and ita Identity of stock ownership and control with that or tne First national as any mere evasion of the law. Tha bank could lend money to the aecurity com-jpanjr, whloh In turn la a depositor In the When talked of thla thing first" Mr.

Baker explained. the natural Im pulse, If we wanted to do It for ourselves, would nave been to have it owned by a small coterie of eight or ten people, like the First National Bank Itself was. We thought first of starting the security company that way, and doing it business through it That has always been a fairly profitable part of our business." When Mr. Baker was asked what business the First Security Company did, replied: Not much of anything." and a ripple of laughter was caused, when he Admitted that Ita surplus was "about $4,000,000." and that It paid 12 per oenc dividend and er cent extra last year. It has paid 12 to 17 per cent, annually in the four years of Ita existence.

F.xp!aln why the First Security Company was to comprise all the stockholders of the First National Instead of only tho lamer ones? A. If were looking tn the personal advantage of tbosu more nearly connected with the bank, we would have organised a company like the First National Bank. As It was, we concluded that every share holder in tne nana enouia nave an in-erKt. If he chose. For that reason we organized it as it was.

Th man that held one tthare of Btock had -Jut as much Interest proportionately, as the largest stockholder. Q. You could not have turned over the assets of the bank to the security comDanv for the benent or seven or io-ht nf tha lara-e stockholders, without offering a participation to th others? A. Yes. We wouia simpiy nave eoiu ui at auction, and those people would have boiiarht them in.

You think that? You think you could have sold them at auction ana had the Insiders buy them tn? Is that 4.4Aa at mirrrinn. or even 011 the Stock' Exchange. I presume that would have been proper. Q.Thl was a means, men. or reauj a Am mmn business a VOU conrlng In contact with, the law A.

A vi a ir sae as.T iTin ntsLT nf now uwuu 20.000 hares of First National Btock, that his son owned omwninn vw ir. 'ami thut.Henrv P. Davt- son and Thomaa W. tjimont of the Mnmn firm were stockholders. Thus the Baker.

Mr. Morgan and hi asoeta tes own over 40.0H0 shares of the 100,001 shares of the First National Bank. Q. Is there a large part of the stock KonW nitiHi hv HtntM of former as soclates of yours? A. No; only on lot of about 10.000 shares.

Q. Is that the Fahnestock Interest? A. The Garland interest. Mr. Fahnesfock is sun living.

o-nn vou vote the stock of Mrs. Thompson and other people who were formerly tonnected with the bank? No. The law prohibits any officer of the bank from dome it. Mr Rfl if said this last stock was voted by proxy, the proxy this year being Albert H. Wlggin of the Chase Bank.

Mr. Helen, a partner of J. P. Morgan and William aunestoca. nefase Admit Control Q.

There is no question. Is there, that von yourself control th First National Bank, In Its management' and affairs? A. I not. Ilk to be conceited aa to say that' Would you like to be honest as to say It? A. Yes, I would like to be honest.

Q. Thero Is no doubt about It, Is there? A. Oh. I think bo. 4 Q.

You think there Is doubt about what? A. I could not control It II 1 wanted to do anything that others did tint uanl tn have done Q. As a matter of fact Mr. Baker, do you not, and have you not for many years past controlled the management ot that bank? A. There has never been any dispute about the control.

Q. There has never been any dispute cbout your control? A. No. Sir, and I have not disputed anybody else's con trot It controls itself. We are a very harmonious company.

Mr. TJntermyer, I am haooy to say. and we cannot get up any quarrels Well." rejoined Mr. TJntermyer, on the basis of 2-6 per cent In a few years. It ought to be." r.

Untermver next turned his attention to the aale within two weeks of part of the stock of the Chase National Bank by the First Security Company to Albert H. Wlggin. President of the Chase Bank. Mr. Baker denied that by virtue of hM control of the Chase Bank's stock be ever designated Its directors, five of whom were directors In the First National.

I bought the Chase Bank shares, he went on. with an Idea of consolidating The EGYPTIAN -CIGARETTE or QUALITY WHENtheyearsfind OUT friends faithful, we may safely recognize our own virtues. The MILCT was put in the market many years ago. It has never lost its friends. They rThave been held true by I If imifni mIMn.l.

i AeWmrv flavor anrl I IN Vv aroma. Hi a. 0 Fries tn theU. S. Jirfa Dtakrs.

At0 0 THE SURBRUQ CO. mm THE NEW YOKE ItsHC. and we f-lt that we would lik'v tw divwt ourselve of f.une ol the rMon- moilny of It. Mr. WigKln, an he expressed it.

was willing: to Inuke that hxnk "uuns ip muae tuat bank hla wra- I 1 1 w- iicin is me control or the hank now. ince last A. I do not think it has been changed any. You say the security company tlU holds it? A. No.

Sir. No one holds It, but It all works right together 9-fiti" the security company did bold It? A. That Is Q. Where the control now? A. Ther la not any, in that light.

Q- I there any one Interest that holds anything Lke an much as the security company still holds tn the Chase Bank? except Mr. Wiggin's Interest and I do not know how that is divided. Q--Do you not know that Mr. Wlrgtn distributed his interest and did not take it himself? A. Well.

If he did. the understanding was he wanted to keep 10.000 shares for the officers and employes In the bank, and the other 6,000 shares were to be distributed. Ion't you know that Mr. Wlggin did not retain the 10,000 shares? A. I do not know.

I aasumo he did not I did not expect be would keep more than halt of it Q. No: yon exnected ha wmild it distributed? A As I aay. 10.000 shares of It to keep right Inside the bank. What do you mean by keeping It Inside tbe bank? A. I mean by himself ana outer omcers ana employe of the institution.

was to give every employe In the bank an interest In the purchase! that wanted it to such proportion as hw thought he oould afford. Whether ha don that 1 have never asked htm, and a no uoi suppose it 1 consummated completely. Q. Yon thoug ht It better, did you. that the First National should not continue to nave control of another large bank? A.

I was very glad to get relieved of tho responsibility that attaches to It Mr. Baker said that the Board of Director of the Chase bank had not been changed since th recent sale of -stock. W.t nep tbe First National-baa still a majority of tb Directors of the Chase board? A. Yes. they have.

U. nat auiereno has neen accomplished so far as concerns the question of actual management and control? A. I did not aay that any had. Q. You do not think ther baa been.

A. No. Hr. Q- It was not Intended to bring about any difference, waa It? A. I should rather expect they wer trying to get some Influential Interests to come In there.

CJ. You think It doe contemplate a change In the control or management of tn Chase National, then, do you? A. No, Blr; I do not TV V. A lint A that neither he nor the board contemplated any action to divorce the First Secur ity Compaay from tbe irst National Bank. If there should be any question raised." he said, "as to the illegality or Irregularity of the security company, we would separate them In a minute.

There would be no difficulty In separating them Aalat Pnbllclty of Asset. The had asked Mr. Baker to furnish a list of the assets of the First National Bank, exclusive of all loans and names of borrowers. He objected to giv ing this Information, and when asked why a bank should not state Us assets. not only to a Congressional committee but to depositors and stockholders, he replied: Business woum come to ratner a standstill.

It would be exposing all the details of that business to the whole world. If you came to the First National and wanted to make a loan you would not want to see It posted upon the pillars." Q. are not sDeaKmc of the name of borrowers. We are talking about the exposure of assets or investments, other than names of borrowers. Where la the objection to disclosing that? A.

We might bold a lot of bonds that we wouia not care to expose to the public. Is that not a pretty good reason why poopl should know? A. No. Hlr. VI- riave you ever given a srocanoiaer who was not a Director access to your books to see what the assets are? A.

No. One reason la that they never require it -They select in our bank fifteen gentlemen to do that for them, called Directors. Q. How can the public be protected or tho depositors be protected It you Insist upon keeping secret what your assets are? A. Xhcy are protected In the confidence they have in the Board of Directors.

Q. Which do you think they should have, confidence or facts, or both? A I think they ought to hare confidence without the racts in oetaii. Mr. Untermyer then went Into the formation of the Guaranty Trust Company. Mr.

Bakei said he now had 1,000 share of the stock of the company. He did not consider this a large Interest. His eon has 100 fhares of the stock. When asked to explain why a 'proa- perous concern like tne Bankers Trust Company was put under a voting trust, Mr. Baker said: The Bankers Trust Company was or ganized some years ago by some of the most alert and active financial men downtown.

They made a very prosperous concern, i hey were not Astor nor Van' derbilta, but they put this stock to gether, end thought that alter making a prosperous company they did not want somebody to step In and buy It They made a voting trust. They thought they would buy the Guaranty Trust and consolidate It the same as we contemplated with the Chase blank. Then you understand that th Guaranty Trust Company was bought in th interest of the Bankers Trust Company, do you? A. Yes, 8ir. Q.

From whom was the Guaranty Trust stock bought a. 1 think from the Hut ual Life part of It Q. Where was the rest of It bought? A. They must hava bought the Harriman estate, or else Mrs. Harriman kept an Interest In It I do not know which ie CIO.

See 71m Harm la Totlna; TVast. Mr. Baker said he did not know the voting trust of the Guaranty Trust Com pany had been kept secret, or that It was not known tn wail Street If that were a faot he said, he waa very much surprised. He saw nothing Improper jD having a voting trust for a treat finan cial Institution, remarking: "I should not do It In that way, but I think It waa all done for the purpose of putting these banks together and to facili tate it- Q. Do you not know the Banker Trust has been under a voting trust sine 1903, when it was organised? A.

I did not know it before. Q. That was not don for th specific furpose or putting it togetner witn any-hlng else, was it? A. They contemplated that always, I think, for combin ing with some other companies when thev gathered them in. Mr.

Baker 1 said he was not a lerg stockholder in the Banker Trust Company, but admitted he held 1.000 share of Its stock, besides 2,600 share which the First Security Company holds, mak tng altogether. 4,000 shares, selling at 60t a share, or about S2.4UO,ouo. Q. What good reason is there for a voting trust of any financial institution? A. I cannot see any good reason why there shoula be on ror tne First national Bank.

That is the only thing am In terested in. Mr. Baker explained to the committee the way tn which the voting Trustees of the Guaranty Trust Company elect the Directors. The same men were always re-elected unless there waa a vacancy. He did not think a voting trust as good a form of bank government a if th stock holder were allowed to voice their preference la selecting Directors.

The voting trust of the Guaranty Trust Company had worked very well, and. while he did not specially disapprove of It. It could not be done -in tne First National Bank." understood th purpose of th voting trust in th Guaranty Trust Company wa simply to hav matters in shape for prompt actio In eon- aouaatin- witn tne Hanker 'trust com pany, if thev -wanted. He thought th plan tor consolidation had now been abandoned. He was allowed to consult counsel, and after talking it over with Senator Spoon-er.

Fisher A. Baker, and George F. Baker. decided to give th lniorma- tlon. M'-r KnMlr" Mr.

Baker, 1 4.600 harea of National share ot Chase Bank stock tn addition to what I hold through the First Security Com pan v. i bold 1.B00 shares in th Banket Trust Company In addition to the holding through th First Security Company. .1 hold 1,000 shares In the Guaranty Trust Comrany, and 250 ah area In the Nw York Trust i Company. I have no holding in the Lib erty national Harut. ana am not a Director ther.

In th Farmers Loan Company I have 100 share. I own 900 shares of the Aetor Trust Companr." Mr. Untermyer nzt tuCced hi Mention to th relations ol tUs rtrst KaUoai TDIEg, FRIDAY, The pfe-pre cf pure, choice tobacco hao brought fame to 7cn -s LUI TUnxiSH BLEND CIGARETTES This mild, delightf ulTurkisIi-blend has the biggest sale of any cigarette in the U.S.! "Distinctively individual Ban Jd J. P. Morgan Co.

with the Bank of Commerce. When the Kaui table and Mntnst T.tfe companies each parted. In 1911. with half 01 meir nomings in the Bank of Commerce. Mr.

Baker bought the ICqultable stock and Air. Stillman of the National City Bank bought the Mutual Btock, practically wlthla a few days of each other. sir. aaer saia It was hard to guess who first suggested the nurchaHina- of the Rank of Commerce, but he was a party to the conierences, ana still man and tne Morgan people figured in them. Mr.

Baker said that Mr. Morgan had been Identified with the Bank of Commerce for manv vears. hilt iA nnt Vnnw whnlhor the Morgan- firm had any Interest In that oana. air. Maker said thai hl purchase from the Eaul table waa about l.VUnO bares of Bank of Commerce etock.

1 gave shares of my purchase, he went on, to the First Security Company. I kept about 4,600 shares for ray, self, and gave tny daughter 60 share. I think Mr. Hlne and some others albo bought a little of the tock." Mr. Maker said the purchase the Bank of commerce stock was the result of an understanding between himself.

StiUmsn, and some of tho peouie at Mr. Morgan's." I cannot remember." he testified. whether it was Morgan himself or Jack I mean J. P. Morgan.

Jr. or some oth er The purchase amounted to about 42,200 shares from the two Ufa Insurance I think Mr. Morgan. took shares from Mr. HtiUman." Mr.

Baker said his Impression was that there was an understanding that the atoc.v waa bought for division betwecji tbe three interests of Baker, Morgan, and rJtUlman. but not for Joint account the method or divisfon being another matter. Mr. Ryan had a largo Interest in the Bank of Commerce," he continued. I always heard that his interest went to Mr Harriman.

I have seen it stated that Mr. Harriman Insisted on Ryan giving mm nan or tils liquttable stock, but I do not know that I never mentioned it to Mr. Ryan or Mr. Harriman. Q.

I understood vou had made this ar rangement with Messrs. Mornn. Mr. StlH- lnan. and yourself to take one-half the noiamgs 01 these two companies In the Bank of Commerce.

Will you tell why you took the Equitable stock and Mr. Stillman took the other stock? A. I took the Equltab'e becaufe I was prohibited practically from buying the Mutual Ufe stock, did not want trade with myself. I was on th. Finance Committee and would have been selling to mvself.

J. That Is why you had Mr. Stillman buy that and you bought the A. I did not have Mr. Stillman do it.

He is quire capable of doing thing himself. Q. But it was done pursuant to a Joint arrangement? A. Yes. Q.

What wa the different moral aspect between you three gentlemen getting together and arranging to buy the stocks of both of these companies and having him bny the Mutual stock and you buy the Kquitable stock, and between your buying the Mutual stock? A. I do not know. We never dlsc-usaed that. You do not see any difference, you; was in form. A.

une was perfectly proper and th other might be criticised. One waa proper In form, the other mignt do tne subject ot comment Is thaUiight? Did It occur to you at the lime you were buying from the Equitable that you had a contingent Interest In the Equitable. A. No, Sir. Mr.

Untermyer hern tnnk im ac quisition of control of the Equitable Life assurance eociety xrom Messrs. Ryan mm TJ w4 Mr. Baker testified that he was mn. suited by Mr. Morgan when the latter acquireo.

tne interest tn th Equitable and also consulted Mr. Stillman. But no agreement was reached at that time con cernlng the division of Intereata. It waa one of those generous things that Mr. Morgan "thought he wanted to do," said Mr.

Baker, "and Mr. Stillman and I felt that we should back him up in it. That's about th sum and substance of it 'We knew there was no money or Profit In It. orobahly a larva loss. Mr.

Morgan consulted with us at tne time, we used to consult with each other a great deal about thing at that time, and after the panic for several years." Was that In 1910, three years after ine panic a. xe. Q. And you kept on consulting with one another after the nanic? A We aA until Mr. Stillman went to Europe to live, and Mr.

Morgan la there most of the time, more than bait the time, bo nat we Go not get the opportunity. When Mr. Morgan la here, we consult frequently about matters In which we are interested. Mr. Baker Insisted that he and the nrm or Morgan were not "jointly interested In manv corporation In th sense of Joint account, but that they had mad many financial issues probably to th extent of fifty-ix transaction ot large maa-nituo in twenty-six corporation within the past few year.

I acknowladr right off." aald Mr. Br.ker, that I hav an Interest in the same thing with Mr. Morgan, but we do not have them Jointly. We are abso lutely Independent free and clear. can tell mine and be can sell hla Mr.

Baker testified that he waa a t)i rector in the Burlington and Northern Paclflo Roads, which reach competing points, also a Director or voting Trustee of th Chicago Great Western, which competes with the Burlington at Chicago, Kansas City, and Omaha. He Is also a Director In th New York Central, Flrle, Lehigh Valley and -Lackawanna Railroads, which, he thought try to be competitor between New York and Chicago, He admitted that he was a Director of Reading, central of New Jersey, Delaware St Hudson, and New York, usque darna A Western Railroads, all of which operate between the anthracite FLORIDA Winter Tours February 6, tO. March 8 ROUND 50 TRIP "Trom Naff TORS eraCXAX. PTJIXMAlf TRAHtS aad frm Jacksoavflle en February Toots 1 1 jaeksonni only en Vlarch Tsur. Independent Travel Florida Tlokete far February Twors ged tvr two waaks, laelndtas data ot teuri tlekta for atareh Tour good until May 81.

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191 A edifice designed and centre of the greatest business and stropping district in The account of and indiySduals are invited. ii tiKrrmaa Richard nmtnt.i.i. Chair AXDRFW lUNMfk w.a.Mt Uraill tv A. HAt KKTT ltIKRK SAKS TIAKI.E P. TAFT JtMKS THOMSON JOHN C.

VAN C1JKAT VANUtTRBlLT OTTO M. KIDIJTZ A. P. W. KIN C.

W. LtrihTKK McAI.l'IN i COKNELIL'g oinctRj CHAKIES A. 8ACKETT rrwlMat JOHN C. VAN CLCAP Vlea-rrJat VlM CUSCNK Aml 4951 WEST Safw Dtposit liadts The Provident OF NEW YORK MANHATTAN Fourth Avenue, cor. 2Slh Street.

Eldridge St, cor. Riving-tori St. Seventh bet 48th Sts. Lexington cor. 124th St Grand cor.

Clinton St' East 72i St, bet Lexington 3d Aves. I East Houston St, cor. Essex St Lwi fresa SI a sea pldg Bwrsoaal property. mites and tidewater. Sir.

Baker said In this connection that he saw 1 no Impro priety of acting on the boards of competing railroads, but did aeo great inconvenience in .1 "Jay Gould used to say, aad told me once, that the greatest success he had was on being on two board where he could adjust differences that might have created a great deal of disturbance. I consider him a good authority on that business. Is what he stated was his success," and I believed him. I never had to be placed In a position where I had to adjust dlfferencea I Mr. Baker will resume the' stand tomorrow and will then be asked about the Interlocking relation of th firms of J.

P. Morgan Co. and the First National Brink and others In varlou public, utilities, transporting and steamship companies, FOR PROSECUTION OF HENRY. House Authorizes Speaker to Have Proceedings Begun for Contempt. Special to The yew York Times.

WASHINGTON. Jan. 0. Without a dissenting vote the House of Representative to-day authorized Speaker Clark to ask the United States Attorney for the District of Columbia to begin a criminal prosecution of George Henry of New York for contempt of the House Com mittee, whloh 1 investigating the so-1 called Money Trust. 1 The action of the House took only a few minutes.

Speaker Clark presented his certificate of the testimony of Mr. Henry. showing the tatter's refusal to answer questions, and the House voted unanimously that it -should be laid before the prosecuting official. i Mr. Henry is a member of the firm ot Salomon A Co.

of New York, which handled the California Petroleum Company syndicate. Samuel Untermyer, counsel of the Investigating Committee, tried to get Mr. -Henry to give the name of twenfy-four. National bank officer who, without putting up any 1 money or taking over any stock, shared In the profits of the syndicate. Acting on the legal advice of ex-Senator John C.

Spconer. Mr. Henry declined to furnish the Information, on the ground of hi confidential relation with nl customer. The case threatens ultimately to Involve the question of the Money Trust Committee's authority to Inquire lato the affair of National bank which will probr ly be taken to the Supreme Court. Opinions on tbe subject differ among the Government's legal experts In the Department of Justice.

If the Henry case Is fought out to a conclusion, the committers Inquiry. Into the questions to which It la related may be blocked pending a decision.) JANE-ADDAMS BEST AMERICAN 8h Heads the List of the Twilight Club's MostUgefuI. After bearing more than 1 a do en peechron th merit of candidates for a place among the twelve most socially useful Americana," the members of tbe Twtlght Club took a vote last night at the Hotel Marseilles on the subject. It wi announced that the ballots would not be counted to-day. but Secretary Tucker said that) though he could not forecast the voteVotals of each he had every reason to believe that the twelve would be these: Jane Addam.

Theodore Roosevelt, Thomas A. Edison, Judge Ben' B. Und- An Amazing, Imaginative Story By H. Besrbohm Tree )' 1 The famous English actor has written for Times an unusual piece of fiction which will arouse wide interest ana comment. He says: "Soon the microbe will be recognized'as of the universe.

Through jme to-day it time allowed articulate utterance." What as he revealed to him is i To make sure of getting: it, order The Sunday Times to-day or your newsdealer. The Times is always sold out early. t. 7 ir In the devoted to bankin in INcw York business houses Pn. aa Caaklar CALVIN Ceaaiar STREET Nicer Broadway STREET Nicer Broadway Silver Siorngw JCoeeas Loan Society BRONX Courtlandt cor.

148th St BROOKLYN Graham cor. Debevolse St. Pitkin cor. Fockaway Ave. INTEREST RATES per cent (J) per month or fraction thereof.

One-half per cent. charfed upon loans repaid within two weeks from date of miking. sey. Dr. Harvey Wiley.

Kate Barnard of Oklahrma, Dr. Simon CTexnv, Booker T. Washington. Ktigene V. Debs.

Mrs. Russell Sage, the Rev. Anna Shaw, and William Jennings Bryan. The Twilight Club recently selected 3.000 people. Intended to be representative of all classes of Americans, and request, ed, them to send lists of their choice of the twelvo most useful.

More than 60 per cent, of the replica had Jane Addam beading the list. Theodore Roosevelt came next. After them' came the following in the order of the number of vote received: Thomaa A. Edison, -tfudg Ben B. Llnd-eey.

Dr. Harvey W. Wylie, J. p. Morgan.

Dr. Simon Flexner, Booker T. Helen M. Gould. Eugene Sr.

Debs. Mrs. Russell Sage, and th Rv Anna Shaw. Other named more than C00 time were William J. Bryan.

John D. Rocke- SanA-fi rhi7rSSr Axuta D- Brandeia, Charles inward Ruseell. Joseph 'iSf Wdvcrihemant JHN DAVID ONLY one President can ait in the "White House only one Commander-in-Chief can rule an amy there's only one best 7 in clothes. Explore before you buy and you won't deplore afterward. Whether you want to spend $18.75, $24.75 or $33.75, it's spent best and for the best on a Sleinr-Bloclu Make your money jo farthest and get most.

A Stein-Bloch is the first choice of cultivated taste that draws hairline Special Redaction Sale of Stein-Bloch Clothes 28 and $25 Suits aad two $18.75 188, 85, 32,180 Suits sd Overcoats row $24.75 145, 40 tune $33,75 The last anvp epant 100 of ovr finest Stein-Bloch (htrcoals tn stock. All th Overcoat are aili-lined, and IM aiaemUy engird Chesterfield, Belied Coat, Shaurl-Coilar Coats, UUlert and Weather alia in Chinchillas, Shetlands, Friezes and rrery olher mart einff, a vxU at Standard Blacks and Oxfords. Each Suit and Overcoat tailored cxpresalf for Ihi season and for this shop. Each one guaranteed and exchangeable, or your money four palm as snick as you can cvp it. No waiting, no jostling.

No charge for alterations during thii sals. JMN DAVID STOf-BlOCnSMAIGxjTrlES Broadwoyt 32 Street I ft Tlie VmdaicalLion of a i Misunderstood Microbe "JIM" familiarly calls this conversational microbe, told in Mesit Sunday's Ti tiwufr e' liL. If V. 4 wis metropolia Uaty tlri5 bull CUYLElt BUILDING ll-12flW 1 1 f-na Terminal. At.

Liberal Hut I 41 Quality and Long Life There is a difference ia record cards. There is one kind that is better thin a3 others. This istheLB. standard card. Ithj never been equalled forlonglife.

Itisinade under asecretprocess. Ten other qualities. Ten other prices. Write for Library Bureau Card. FtDs Si and Office teuipmeat 316 Broadway, New York 'Phone.

I4M Wartk Orvllle Wright, Dr. Charla Eliot. Senator 1 Follett. CoL OoaCala William K. Hearat.

Col. W. r. ct. Charlotte Perkins Gilman.

Lflllaa Wi Ida Tarbell. Kate Barnard. BUhop frii. li) UiL'UinuiilUiiii i rjy.m. 4 Win WiiHam H.

Taft. Alexander Unthaa and Jame Whitcomb lUley. Btu- 11. vwii'-tu nuinui, i.incoin It wo the actual ruler is for the first! lines. Mis CCI WJ HtSM who lerrM Dept Com nan -ayii pro ug York ape li I rus rdei 111 If li i.iorr Th fflO ia i 'ant ha I ime Th "ilea, I tan to-d urr ont -er herd thai iera mua i and HIT all: I.

tar fs --a ne aad IfMl 1(J met "ia ini ati -a ir -o r.i fr or CD on i ah-'h. 1 k. in a o-. to ft a 1 'I.