Mr. Baker's Bank

The First National Bank of New York City was founded in 1863 with capital stock of a par value of $200,000. This capital has been gradually increased to 100,000 shares of $100 par value, or $10,000,000 altogether.

But those figures do not begin to tell the remarkable story of the bank's progress and growth under Mr. George F. Baker's long and skilful guidance. The First National is one of the largest financial institutions in the country, and also one of the most thoroughly undercapitalized. Its dividends have long climbed nearer and nearer to par value of its shares. Now, by declaring a 25% quarterly dividend, the First National has been put, temporarily at least, on a 100% dividend basis, where disbursements to stockholders are each year equal to the entire nominal capitalization of the institution. As a result, while par of First National shares is still only $100, the market price is now about $2,600 apiece.

Earnings of the First National in 1924 were estimated at $16,000,000, or 160% of its capitalization. With each share of First National stock goes a share of its subsidiary, the First Security Corporation--long one of the leading factors in the security underwriting business of New York City. What proportion of earnings comes from the bank proper, and what proportion from the subsidiary, is known only to Mr. Baker. And, on this subject at least, the veteran banker still deserves his cognomen: "The Sphinx of Wall St."