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EVfeNINtf PtJBLIO t,fitiGfiRPHIIAIELPHIA; TUESDAY JUNE 0, 1922
' ft
"SILENT" R4KER,M0NEX MACHINE
OS WALL
TURNS LOOSE GOLDEN STREAM FOR
HUMANITY'
pHfpfl?FfiflfpF;
un,. warn
STREETm
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constitute an endowment fund, the
principal of which Is te be kept Intact,
the Income te be used for its corpora te
purposes.
"I beg te hand you herewith $1,
000,000 United States Victory Lean
3 per cent bends. Yours very truly.
"GEORGE F. BAKER."
This was the second donation of $1.
000,000 in cash value the museum has
se far received from living persons.
The first was from Mrs. Anna M.
Hnrkness last year. There have' been
donations te the museum that were
valued at mere than $1,000,000. but
these were In the form of bequests et
objects of art, notably the Altman and
Morgan collections.
Presented "Saleme? te
Metropolitan Museum
Anether of Mr. Baker's gifts te the
Metropolitan Museum of Art was the
famous painting "Saleme," by Henri
Regnault, which once sold at the sen
sational price of $105,000. In May of
this year, also, he presented te the
American Museum of Natural History
a .rare collection of gems and minerals
$ Eighty-two-Y r ear-Old Sphinx of 'Financial
World Has at Last Discovered That
It Is Mere Blessed te Give Than Re-
ceive; Happier, Today Than Ever
Before in His Life
WEARER OF MORGAN CROWN
DIVERTS MILLIONS FROM
OJVN COFFERS TO CHARITY
Business Career Started as Clerk in New
Yerk Bank: As Cashier He Made
Costly Errer 9 but Instead of Ruin It
JVas Stepping Stene te Success
i
KQILENT" BAKER has loosened up,
Fer nearly eighty-two years this man has lived, and new, In the
dusk of his career, he has found that "it is mero blessed te give than te
receive."
There arc these who say that Geerge F. Baker, of New Yerk, Is
happier today than he haB ever been before' in his long and eventful life.
Re has gathered together and he has kept mere than $300,000,000. Much
mere! Hew much mere probably no man but himself knows. He controls
billions.
He has new begun te give away his wealth by the million. In this
he was preceded by Andrew Carnegie and by Jehn D. Rockefeller. Each
turned loose a golden stream' for the benefit and advancement of humanity.
They began this years age. '
Baker is late. But it is never tee late te mend. Perhaps Baker, the
"Sphinx of Wall Street," cried out in the loneliness of his heart and in
despair at his very success at his chosen calling, even as old King Midas,
whose touch turned everything te gel
Old King Midas of Phrygia,
founder of the Heuse of Croesus,
washed away at last this "golden
touch" in the waters of the River
Pactolus. And the sands of that
rtream, legend tells up, became Im
pregnated with geld te the enrich
ment of the kingdom.
"Silent" Baker has undergone a
similar transformation, and he has
diverted a river of geld from his
own coffers in an effort te add te the
health, the comfort and the happi
ness of his fellow men.
The man who succeeded J. Pier
pent Morgan as "the king of Amer
ican finance," was known te have
made a miner gift or two, in years
gene by, but it is only within the
, last year or se that he has started
J giving in earnest.
He has contributed $700,000 te
Columbia University for the pur
chase of a stadium site. This was
last January. By this gift Colum
bia was enabled te acquire the Dyck
man tract of twenty-six acres for
athletic fields, a stadium, boathouse,
clubhouse and related purposes.
In making this gift Mr. Baker said
it was his desire te contribute in
this way, through Columbia Univer
sity, te the "distinction and satisfac
tion of the City of New Yerk,''
where for se many years his active
business career had been carried en.
Dr. Nicholas Murray Butler,
president of the university, voiced
the sentiments of the faculty and
student body and the people of New
Yerk when he said: "Mr. Baker's
munificence assures te the City of
New Yerk facilities for national in
tercollegiate contests and public
events en a scale rivaling the
, greater outdoor centers of the world.
"Coming at the eleventh hour,
when alumni and friends of the uni
versity were doubtful of the issue,
the gift heartened the university's
fl'Jmni and students as no event has
done in a long time. It is difficult
te exaggerate what possession of
this property would mean te the
health and enjoyment of generations
Of Columbia University's students
and alumni. When developed as we
plan te develop it, it will be a3
notable an addition te the resources
of New Yerk ns a metropolitan city
as has been made in many a day."
Warm Response of People
te Financier Is Immediate
Tlifre ou have It; the warm re re re
ponse of the people te the financier
Immediate. His friends new won wen
Mr If it rame tee Inte. They recnll
that back In 11)00 or 1010 Mr. linker
Te $.10,000 te a college. The sequel
a touching one. It was remarked
te Mr. Raker b a friend hew gratlfy
ln it mtin have been te him te sea
hew well the public responded te his
Wndly act.
JMth n had (-hake of the head, Mr.
Hw said: "It comes tee late." Ills
J had a far-away leek.
The frlpnd realized that something
i en his mind, se he bided his time.
Then Mr. Baker recalled nn Incident
wt had occurred several year before.
nich the friend had witnessed. It
JJk just after the panic of 1007. The
Pjnlc had been brought under control
at lam. and Mr. linker arrived slightly
e nt a largely nt tended meeting at
we Union League flub. In Inner ctr
JJ's u whs well known just hew much
nn: or nnf' DPn responsible for the
quelling e the storm, unil his appear
ance as greet oil with applause that
J'i,c'.' ,nt" resounding volume as he
'Jked te his neat.
'I could net net home quick enough
"at night m tel her about It," Mr.
ker wild, very sadly.
'!' wife had died In the Interval.
. . ft1'1 '" t'elumblii last January
J1" fallowed ill quirk succession b.v
SI .i'0,?' "',' luMltiitlens. One day this
month Rebert W. De Ferest, president
a! i- M.treimUtim Museum of Art.
l.l.rPW Wl" '1'ielved the following
Utter from Mr. liuim.. .
JMwdre.te deiiul
It Is- uenernlly understood that the
gift which united Cernell University nud
the New Yerk Hospital was at least
$2,000,000.
Very little Indeed Is known about the
early life of Mr. Baker, even by his
most Intimate friends, or members of
his own family. He hns always remained
a in nn et mystery. He never talks
for publication nt all, and his remarks
te bis friends linve usually been ton ten
finsil te monosyllables a "yes," or
"no," or just a shake of the bend.
One of the lending bankers In this
country once described Baker as "The
man with the hardest shell and the
softest heart in America." His shell Is
Indeed Impenetrable. He nfTects abso
lute Indifference te the opinions of his
fellow men. He once declared, "It Is
nene of the public's business what I
de," jet he and his nsseelntes, J, 1
Morgan and James StlHrenn, between
them controlled $22,000,000,000, most
of It the money of these very people
whose opinions he scorned concerning
his use of It.
Mr. unkt-r was born In Trey, rn. Y
identified since 187-1, when ns cashier
an error In judgment en the part of
his nsslstnnt and himself led te his
taking ever control of the entlre In
stl -Hen.
Baker Blade His Errer
Stepping Stene te Success
The same sort of n mlstnkc would
hare led downward Instead of upward
for the nvernge bank efHclnl, but Mr.
linker mnde It n stepplng-stone te suc
cess. The error consisted In the 'pur
chase of a large amount of foreign ex
change from .1,'iy Coeke &. Ce., at the
time supposed te be perfectly solvent.
Three days later the failure of the
Heuse of Coeke shocked the business
world.
Mr. Baker went te Jehn Thompson
the president of the bank, and offered
te buy control, taking a six months'
option en his stock, with Harry Fnhnc Fnhnc
steck, n friend. Mr. Baker had a llttle
money of his own, but he was able te
Interest ruencjed inch in the deal, nud
' ' f i s " "
things forbidden by the National Bank
net, by' means of a separate enterprise,
owned by holders of the bank's stock,
each share of the bank carrying with
It a share In the ether enterprise.
The bank has pnirt mere than 18.550
per cent In dividends en the original
I W 11 if Mmis
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lilHalHHBlilWWfliHHHBHlllH'BP MUmMWWWMi offices are located
BHiV HiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiBIBIBHHt BHiiimBiiiiiKSBiiiiiiiiiiiiiiiiiiiiKlBiHiiiiiiB "V O.f'-X BWTW t -.s,X.'r ZW v-'sW1BiiiiiB?n,eBiiiiiiiiiiB.7. vi A W3.'"w . A . '
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Mm'';' - l ": JCMmL. ,' W lKUSKBK iJM
SsS s 'Bl ff Bv ' " " -! i
;:;'1 ' " K I BBtB Te'vn house of Geer&e F Baker
tm'-Al':K Hrj 'iiB I wl&BsliSHGub tns "'rFt J'cnrs f business, the lesults
mtiS' ''"'' '' '-ftf':-"JH ' ' '"' ' vHHilHQH 'hlcli amply rewarded the mniing)'-
i3-w"' JKfBr ., , KBWMMfflkM . mpnt ter t'"'lr cenfidence in the credit
r .w -.' . SvBBikvVSF,':'" -umBBi e( tlle (jem.nment.
SAtvJBvJKil'TMvS&S'' "T1, bnnk from the start, took n
SB X ';- FTT " ' ,: vw rpn. v nb lending position nmeng dealer-. In
mH$4&'-'r ' ''f'J f ' Geerge I. Baker United s'tmes seeurlties. for itself and
'!'.&&'" ""' " is'iV- ,'"'"' as n ropresentntlxe of the sewuil te-
m&m&sM?'. " ' mi; , . xsasmmyt :??mMtmzam ,
. s. ' ii I 'li iiimi mm I'l'MW
w,rv-si-i" .
.unmwi
"Twenty five dlreetershltis In twelvd
public utility corporations having ft
'oral capitalization f .JS.leO.OOO.OOO,
"I" nil, nil directorships In 112 cor
porations hfivlng aggregate resources of
$22,21,000,000."
This was back in IM.'I, and is suffi
cient te give nn Idea of the vast power
wielde.l by tle ni0Si When J. P.
Morgan died Baker Inherited he crown.
This is the sort of man who Is new
beginning te give nwny foiiie of his
millions.
An Idea of just what control of $22,-
000,000.000 means can be gained if It
is possible te realize what $22,000,
000,000 represents. It is mere than
three times the assessed value of nil
property, re.il and personal, in nil New
England. It is nearly three times the
assessed value of nil the real estate In
the city of New Yerk. It la mere than
twlee the assessed value of all the
property In the thirteen Southern
Stntes. It i mere than the nsscssed
value of all the property in the twenty i
two States, North and Seuth, lylnjj
west of the Mississippi Itlvcr.
The operntlenn of these bankers wera
se vast and numerous that even n very
reasonable compensation for the serv
ice performed would, In the aggregate
produce for them Incomes se large ns te
result in huge accumulations of capital
Figures nre tiresome, but just tel
show hew much Morgan, Stlllman, Bakc
et nl, could make, Commissioner ej
Corporations Herbert Smith discovered
that "mere than $130,000,000 of thq
stock of the United States Steel Cor
poration was issued directly or indi
rectly (through exchange) for mere pre-i
motion or underwriting services. la
ether words, nearly one-seventh of the
total capital stock of the Steel Corpora
tion appears te hnve been Issued directly
or Indirectly te promoters' services."
And there you nre. Mr. Baker, one
of these promoters, hns, in consequence
of tills and ether deals, been character
ized by one bis business man ns "neth-
ling but a money. making machine."
Considered Meney-Making
j Machine en Wall Street
I A "money-making machine." Thnt
is what they considered him en "th
' Street." New just what sort of looking
I person Is this luimnn mint?
Te begin with, he hates cameras, and
I very few photographs have ever been
taken of nun. lie is n Mtie-sneuinerea,
deep-rhested man. with lets of spring
left in his step. He has a finelv shaped
head, and strong, prominent features.
His neve is lnrge nnd straleht and hl
eves are set wide apart. They have a
direct, fearless gaze. Tremendous re
sources of mind and body are behind
their stvaishtferward glance.
He Is one of the few of the bankers
of the elil choel who still stl"k te "slde
$200,000 capital, net counting the mil- chops." Ills nre the conventional whls-
' kers without wiitcii no eui-ttme num-
Baker's financial genius, according
te financiers, made his bank a geld
mine. One banker remarked: "The
profits of Baker's bank make the rest
of us leek like amnteuri."
Mr. Baker was the first New Yerk
banker te conceive the idea of doing
liens paid out by Its niter ego. the sc
curlty company. One dividend of 1000
ner cent was paid nt one clip.
was In 1001 that this special dividend
of $0,500,000 was declared for the pur
pose of raising the capital te $10,000,
000. Of the total 100,000 shares nt
thnt time Mr. Bnker owned 20,000. his
son .IO.'iO and Mergnn fc Ce. 4."00.
These 20.000 shares in the First Na
tional Bank are said te be weith nt
least $20,000,000.
when exercising his power te the ut
most
many of his directorates, Mr. Baker
was'n director or officer In fifty-eight
rorperations of the first magnitude. In
fact, it was found by the I'uie commit
tee thnt the members of J. P. Morgan
& Ce. anil the directors of their eon
trolled trust companies and of the First
National and National I ity Hanks to te
getlier held :
"One hundred nnd eighteen director
' ship in thirty-four banks nnd trust
' rnmnnmcs. having total resources of
1 S2.07H.000.000 and total deposits of
S1.J1S.1.000.IHH).
"Thirty directorships in ten Insur
ance companion, having total ns"-ets of
$2.20.1,000.000.
"One hundred nnd five directorships
In thirty-two transportation svstems,
bavins a total capitalisatien of $11,.
74.000.000 ami a total mileage (ex
cluding express companies nnd steam
ship lines) of ir.0.200.
When Morgan Died
Baker Inherited Crown
"Sixty-three directerchips in twenty
four producing and trndlng corpora
tions having it total capitalization of
$.1,3.10,000.000.
ness mnn would nnve Deen cempieie.
F1l .. .1.1.-1. J 1i1s a 4I1H t1al
1, nev nrn iuick mm uhiii. m- nmtn
IOI IMP I.irc, p rfini ,im hitii-ciMi
curves ever the upper lip. nnd termi
nating en a line even with the corners
of the mouth below the lower lip, leav
ing bare n square, forceful-looking
chin.
It is for silence, however, that he 11
eMnflv ne'ed. Nobody would ever call
HIM n gabby old peren. Beside Baker,
i fl.rt tf1l.l'tirtivti MnMnr 4 ffirrnlnim.
power te the ut- 1 "',. . ',v.' "," ,L .1' .. r i..i .
before he started reslgnlDg from. .; f ' "1' .."I T"' " ""S
and strives for money alone, and then,
when he 1ms mere thnn he can use. of
count, or comprehend, keens en, goaded
by the the nheer lust for the power
that overwhelming wealth can glve
And keeps en nnd en nnd en.
Once In a while they slew down,
howeer. and Bnker has put the brakes
en.
Te be fair. It mut be admitted thnt
the nker whom liU friends knew is
net the stony -hearted man of geld the
world leeks upon. They declare he Is
net con-cleus of the tremendous power
lie wields. Whether he is or net. It is
certain Inn habits and tnntes nre of the
simplest sort, nnd no cloud of scandal
eer darkened hi domestic life. He Is
averse te ostentntlen. nud dislikes
pun'.ilng te the front In any way what
soever. In a business sense, however, he
mnkes no bones about his beliefs. He
believes In interlocking directorates.
and can sec no harm in one hank con
trolling nnnthcr. lie even admitted te
the Pujo committee that such control
1 'is Morgan and Stlllmnn and himself
wield. If It iheuld fall Inte bad hands.
'would serieush imperil the country,
71
Painting 'Saleme" which Mr. Baker presented te the Metropolitan
Museum
as n memorial te his friend. J. Plerpent
Morgan. This collection was placed in
the Hall of Minerals.
Within yrpent memory lie gave Cor Cer
nell rniverslty 1,8.10.000 for iew;r iew;r
mlterleH nnd a new chemistry bulldlpsC;
During the wnr he donated $J,()0!l.00U
te the Amerlcuu Bed Cte.ss. Anether
recent iiiumunecment Is the gift or
500.000 In United Wales letery
Bends te the Society nf the .New erU
Hospital. The society, giiilelully ac
cepting, established the Ilea, go I
Baker F.ndewment F,und nf ': "
adding I" the present donation -W0O
given some tlme age. , Mr. Baker lm
been u governor of the twclety blnee
in 1810, and received a public school
education. He Is said te have displayed
a love for mathematics, and especially
problems in partial pujment nud com
pound Interest, from earliest boyhood.
His father was (leorge K. Baker, who
for j ears was Washington correspond cerrespond correspend
ent of the New Yerk Tribune.
leaving school, he found employment
us a two-dellnr-a-week grocer's boy,
and later worked at $f a week 11s 11
night watchman. He cherished con
tinually, however, the ambition te be
come u banker.
Ilia leal business career begun with
n clerkship in the Firt-National Bank
of New Yerk. It 1 vlth (het bank
that, he. ban been most 'prominently
before the option expired he bad raised
money enough te gnln control.
Through Baker's guidance the First
National developed In a marvelous
manner. Four ,enrs after he entered
the bank's employ he was Its presi
dent. It Is said that jeung Bnker
plunged en I'nltcd Stutes war bends,
leading tlie bank up te the limit with
them. Ills neive wen the admiration
of Secretarj Chese, then head of the
United States Treasury, nnd he saw
te it that the First National Bank
received eveiy possible (ie eminent
favor. It grew and grew and grew.
Upen the fortieth iiunlvcisury of the
founding of the hank the following
folder was sent te the bank'b stock
holders. It is illuminating:
"Frem the beginning, the First Nil Nil
tiennl Hank sought the business of
banks anil bankers nud became the re re
dciiipilen ngen( and depository for a
large number of out-of-town national
bunks, It took nn active part In the
negotiation of war leans, thus employ.
Inz a large part of its deposit during eyes.
l l
th fviiian ninuAiiH. i.m A i m evie nf i. i.enn
--viffu vf 4(t fj,,vuu,uuy, iu'aew, j
Jehn D. Rockefeller
funding syndicates, in financing the va
rious United States le.nu Issued by
successive administrations. During the
j ear 1S7D the bank handled $7N1.00il.
(Mil) I'nltcd States Cevernment Bends,
completing their receipt ami delivery
without error or less,"
Matter of Mere $800,000
Overlooked by Baker
The total original capital was $200,
000, Hew small 11 matter a few hun
dred thousand deilai'N became te Mr.
Baker may be gutlieied from the iact
that when asked bj the I'uje commit
tee, which In HUH inwstlgatul the
"money trust," If he held any interest
In the (Simiiinly Trust Cempnti, Mr.
Baker ,iid he did net think he had, or.
If he had any. It was se small that lie
did net leiuemlier all) thing about It.
His "sine""' bidding, it developed later,
was worth iibi. SSilO.llOO, Anether
Item In his feirune. S.MVl.OOO. he for
get entirely, se Mini,'! m it In hi
'Silent" Baker Is Following Lead
Taken by Rockefeller and Carnegie
"SILENT" BAKER
has started givinp away seme of
the vast fortune of $300,000,000
he hns accumulated during his
career as a New Yerk banker. He
is eighty-two years el3 and 13
chairman of the beard of the First
National Bank of New Yerk.
Columbia University, for
stadium site $700,000
Metropolitan Museum of
Art of New Yerk 1,000,000
Society of the New Yerk
Hospital 750,000
American Red Cress.... 2,000,000
Cernell University 3,850,000
American Museum
NatiennI
Hibtery, a rare collection of gems.
All these donations are taken te
indicate the entrance in earnest
into the field of philanthropy of
nnethcr of the world's richest men,
and Mr. Baker is expected te make
some startling announcements
from time te time concerning the
disposal of his surplus millions.
Just what form nny later gifts
may take is net yet clear, even te
his intimates. He may establish n
"foundation" like that of Mr.
Rockefeller, or he may give a huge
pum for the advancement of some
personal hobby, such ns Mr. Car
negie's fund "toward the advance
ment of universal peace."
JOHN D. ROCKEFELLER
the world's richest man, has given
away much mere than $250,000,000.
Rockefeller Foundation,
$100,000,000
General Education Beard,
$25,300,000
University of Chicago 2.1,300,000
Rush Medical College. (5,000,000
Churches, etc 5,100,000
Baptist Foreign Mis
sionary Fund 2,000,000
Rockefeller Institute
for Medical Re
search 4,300,000
Barnard College 1,375,000
Seuth c r n Education
Fund 1,125,000
Union Theological Sem
inary 1,100,000
Harvard University... 1,000,000
Yale University 1,800,000
Baptist Education So
ciety 1,000,000
Juvenile reformatories 1,000,000
Cleveland City Park... 1,000,001)
Ten Yeung M'n'n Chris
tian Associations... 1,145,000
i-
i
1 v
ANDREW CARNEGIE
who retired with about $500,000,
000, was credited with telal bene
factions of $175,000,000.
Fer establishment nnd
maintenance of chari
ties, income en $10,000,000
Toward advancement of
universal peace 10,000,000
Carnegie Institute.... 10,000,000
Scotch universities 10,000,000
Fund for benefit em em
peoyes, Carnegie Steel
Company 5,000,000
Catncgie Here Fund. . 5,000,000
Public library buildings 50,000,000
College Pension Fund,
United States, Canada
and Newfoundland... 15,000,000
Mr. Carnegie made a tremendous
number of donations in every di
rection, many of them never re
corded publicly. It was his li
braries, however, that attracted
widespread attention te his phi
lanthropies. He would buy land
nnd erect a mngnificent library
building, large or small an the size
of the community warranted. These
weie alwaya known ns "Carnegie
Libinrien." He never supplied any
of the bonks te go upon the shelves,
however, nnd always htipulated
that the upkeep-nf the building be
shouldeiei" .e town or city ac
cepting it
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