Banker Baker

"None of the Public's Business!" George F. Baker, having returned from the South, the Hon. Chauncey M. Depew called a meeting to elect a President for the New York Central Railroad.* The new President is Patrick E. Crowley, age 60, who has been railroading for more than forty years.

"Who is George F. Baker?" is a question to which no good answer has ever been given. True, he is in the banking business at No. 2 Wall Street. True, he is twice as rich as the original J. P. Morgan, having a fortune estimated at 200 millions. True, at the age of 84 when he has retired from many directorates, he dominates half a dozen railroads, several banks, scores of industrial concerns. "At a word from him, the 20th Century would halt on its tracks."

Born in Troy, N. Y., March 27, 1840, George F. Baker got a job at $2 as grocer's boy, participated in 1863 in the formation of the first New York Bank under the National Bank Act, "plunged" successfully in U. S. war bonds, made the First National Bank the bank of banks--that is about all that is known of Mr. Baker/- in the last century. Friends say he has the hardest shell and softest heart in America.

The Baker bank kept close to the late J. P. Morgan during all of his masterful career. They were together on U. S. Steel, together in the 1907 panic, together on New York Central when Commodore Vanderbilt's son abdicated.

Mr. Baker is probably the biggest stockholder in the New York Central, although William K. and Harold S. Vanderbilt are still associated with it.

The Road. It is almost a century since a charter was granted on Feb. 28, 1826, to the Mohawk & Hudson Railway, to connect the Hudson River with Lake Erie. In 1831 the first train was sent between Albany and Schenectady. In the next few years, there was a huge demand by promoters for railroad charters. Gradually the Hudson-Lake Erie route was built, by seven independent companies. In 1853 these and three additional roads consolidated as "The New York Central Railroad."

At first the trip from New York City to Albany was made always on river steamboats. Presently, however, the Hudson River Railroad, running up the eastern bank, was constructed, as well as one on the western bank. These independent lines were purchased in 1863, after a historic struggle in the stockmarket by Commodore Cornelius Vanderbilt. A few years afterwards, he also acquired the New York Central, and thus consolidated the route to Lake Erie.

The Central continued to prosper under the Commodore's son, William H. Vanderbilt. In 1879, however, "W. H." tired of administration, competition with Jay Gould and legislative attack; he also had serious doubts as to the advisability of one man's having as much money and power as he had. Accordingly, he sold control of the system to a banking syndicate headed by the then rising and brilliant young banker, J. P. Morgan. Practically ever since, the road has been financed by the Morgan group.

Under this new director, the Central continued westward. By 1885 the competing West Shore road was leased, the Lake Shore and Michigan Southern were purchased, an alliance affected with the "Big Four." This gave the Central a through route to Chicago, as well as an entry into Detroit, Toronto, Cleveland, Cincinnati, St. Louis. The acquisition of the "Nickel Plate" removed dangerous competition. Subsequently the Central added more mileage by merger or construction. In the richness of territory it traverses and the number of large cities it touches, it is rivalled only by the Pennsylvania.

Its capitalization today consists of $300,000,000 common stock, which recently earned $15.74 and paid in dividends $7.00 per share; its funded debt amounts to $768,420,686. There is no preferred stock. The high credit of the road is illustrated by the fact that it is one of the few American railroads which have recently been able to finance themselves through the sale of new common stock instead of new bonds.

*The late Alfred Holland Smith had been President of the New York Central from 1914 until his death a month ago (TIME, March 17). /-Miscellaneous Bakerisms are recorded as follows:

P:Once, when investigated, he said that if he had any interest in the Guaranty Trust Co., it was so small he had forgotten it. His small holding was in excess of $700,000. P: Mr. Baker once bought control of Chase Bank with a view to amalgamating it with his own. But the Chase Bank prospered so mightily he never effected the merger. P:The First National is still most humbly furnished, but its dividends are scarcely ever less than 60 per cent on $10,000,000. P: Mr. Baker has gone in very little for public charity. Cornell has been his primary beneficiary. He is credited with athletic fields at Columbia and the Maria H. Hotchkiss School. P:"None of the public's business," says Mr Baker concerning himself or his affairs.