Upon call of the Governor, a special meeting of the Federal Reserve
444d was held in the office of the Federal Reserve Board on Friday,Pebruar7
1 1924, at 3:30 p. m.
PBEUR2: Governor CrissingerMr. PlattMr. HamlinMr. MillerMr. JamesMr. CunninghamMr. Eddy, Secretary.
The minutes of the meeting of the Federal Reserve Board held on
, 44114arY 31st were read and approved.
Ur. Hamlin presented a telegram dated February 1st, from the Governor°t he Federal .aeserve Bank of Richmond stating that in the opinion of that
biLlIk the Board should grant the application of the Commercial Rational BankOf we.
shinCton for permission to exercise fiduciary powers.
Mr. Hamlin moved that the Board reconsider theaction taken on January 30th in voting to withholdapproval of the application until such time as thebank should show further progress in improving itscondition as borne out by a subsequent regular exam-ination.
Carried.
Mr. Hamlin then moved that the Board approve the ap-plication of the Commercial National Bank of Washingtonfor fiduciary powers.
Carried.
Letter dated January 31st from Mx. M. C. Elliott, Counsel for the
114111Z 0 f Italy with regard to the applications of the Bank of Italy for1)ezliii
8m On to acquire the State Exchange Bank of Torrence, California,
441 the Kingsburg Bank of Kingsburg, California.
Referred to Committee on Examinations.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24
The Law Committee reported on the natter r f erred to it at the
meeting on January 30th, namely, preparation of a letter to the Chairman
Of the Federal Reserve Bank of Richmond, in reply to his letter of January
24th with regard to the establishment of branches by the New Bern Banking
and Trust Company of Nim Bern, North Carolina; the Committee sgbmitting
a form of letter stating that under the circumstances it would seem that
the New Bern panking and Trust Company is under no obligation to secure
the consent of the Board to the acquisition of new branches further than
to satisfy the Board that the condition of the parent bank and such bran-
ches is sound.
After discussion, the proposed letter wasreferred back to the Law Committee for revision.
Letter dated January 31st, from the Chairman of the Federal Reserve
Ilank of Cleveland replying to the Board's letter of January 26th with
regard to the failure of the Federal Reserve Bank of Cleveland to advise
the Board of the action of the Union Trust Company in establidhing three
branches in the city of Cleveland without obtaining the consent of or
40tifying the Board.
Ordered circulated.
The Law Committee then presented a memorandum from Counsel dated
Pebraury 1st on the subject "Interlocking Directorates in New York City",
tererring particularly„to the application of Mr. Talliam Skinner for
13e1mission to serve at the same time on the directorates of the L-rierican
4ehange- National Bank and the Irving Bank - Columbia .rust Company; the
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24 -3-
Committee recommending that the Board refuse Mr. Skinner's applicc-tion
on the ground of substantial competition found to exist by the Federal
Reserve Agent at New York.
Upon motion by Mr. Hamlin, the recommendation
of the Law Committee was approved.
Memorandum dated February 1st from the Division of Examination with
l'earzd to letter dated January 29th from the Cashier of the Farmers Savings
Bank of Palmer, Iowa, advising that it is unable at the ',resent time arbi-
trarily to reduce certain excess loans, the reduction of which was aeon-
to the Board's approval of the bank's application for mombership in
the System; the memorandum recommending that the Farmers Savings Bank be
advised that the Board contemplted that the reductions should be made
it a reasonable time.
Upon motion, the above recommendation was approved.
2ologram dated January 3.Lst, from the Governor of the Federal lies-
erve Bank of Kansas City advising that he has made arran(rements to be in
8.1aington on Monday, February 4th, with plans for the buildings which that
batk proposes to erect to house its branches at Jenver and Omaha.
Noted,
2ele;ram dated January 31st, from the Federal Reserve Agent at
sat Francisco transmitting the application of the Pacific Jouthwest 2rust
Iltd Savings Bank of Los Angeles for permission to establish seven branches
it the city of Los Angeles at locations stated, and advising that the ap-
1)11-cations are being referred to the Membership Committee of the Federal
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24 -4-
Reserve Bank and recommendations will follow.
Upon motion, the Secretary was instructed to
refer the applications to the Committee on I'llxaminations
when complete information regarding them has been re-
ceived.
Letter dated January 31st, filed on the same date, from the Vice
President of the Union '2rust Company df Providence, Rhode Island, re-
questing permission to establish a branch in Centreville, Rhode Island,
and stating that the Company also desires to establiSh branches at
,oensocket, Thsterly and Newport; together with telegrams dated January
31st and 201ruar. 1st from the Chairman of the Federal Reserve Bank of
Boston and the Bank Commissioner of the State of Rhode Island, respective-
1Y, advising of approval of the application to establish a bL.anch at
Centreville.
Upon motion, it was voted that the application be
received and referred to the Committee on'Examinations.
Letter dated January 26th, from the Federal Reserve Agismt at
Francisco, transmitting original applications of the Bank of Italy
Or Permission to establish eighty-three branches in eighty towns and
cities located in thirty-One counties of California; the Board having on
january 26th voted to receive these applications, following receipt of
telegraphic advice of their filing. 2he Federal Reserve -Agent in his
letter stated that as the applications are approved or refused by the
q,'4Derintendent of Banks, the recommendations of himself and the Member-
hi P Committee of the Federal Reserve bank will be forwarded to ,,he Board.
Referred to the Committee on A.-;,:aminatians.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24 -5-
Letter dated January 30th, frym the Federal eserve Lgent at
Boston referring to the Board's letter of January 25, 1924, on the subject
er ''Currency in Transit to and from Federal Reserve Banks" and transmit-
tin.0 a form of letter on the subject which the bank desires to send to
its member banks.
Upon motion the vrorosed letter was apiroved.
;qaport of Committee on axamin tions on matter referred to it at
the 111(=eting on Jana: ry 30th, 21.me1y, telegram dated January 29th from the
eci.stral Reserve Agent at San Francisco transmitting the application of the
Bank of Italy for lormission to purchase the Kingsburg Bank, Kilvsburs,
California, and to establish a branch in its premises; the Committee recom-
mend1n3. that the application be filed pending receipt of complete informa-
tion.
Upon motion the report of the Committee on:laamin'ttions was a],proved.
aeport of Committee on ixamiitions on natter referred to it at
the msetin:: on Janu.,ry 30th, namely, letter d:ted January !3rd from the
?edn'ral Reserve Agent at San Francisco, transmitting and recommending ap-
1)1'°17a1 of the application of the Bank of Italy for permission to establish
4 branch at 5716 Geary Street, San Francisco;the Committee recommending that
i(ler .
nite action by the Board be deferred until the application has had the
4131)11)7a1 of the State Banking authorities.
Upon motion, the report of the Committee oni..:Ixaminatiens was approved.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24 -6-
Report of Committee on Examinations on the application of the
Industrial Trust Company of Providence, Rhode Island, to establish
four branches within the city limits of Providence, and one each at
Centredale and Central Falls, the Board on January 30th having voted
to defer action on the application pending receipt of report of approval
thereto having been given by the Board of Directors or Executive Committee
°f the Federal Reserve Bank and by the Superintendent of Banks of the
Star--e of Rhode Island; the Committee recommending approval as the appli-
cation has now had the approval of the State Superintendent and of the
isederal Reserve bank.
Upon motion, the report of the Committee on
Examinations was approved.
Letters dated January 25th and January 29th, from the Governor of
the Federal Reserve Bank of Minneapolis advising of the action of the
directors of that bank in appointing officers to serve during 1924 at
the head office and branch, including the appointment of Mr. 7. A. Cutler,
441 as Assistant Cashier of the Helena Branch, without change in salary
144 the appointment of Mr. Andreas Ueland as Counsel for the Bank and
81:0411 Ueland as Assistant Counsel, and in fixing the compensation of
C°1148°1 at $5,000 a year, with 04,000 allowance for office expense.
/Toted and the matter of compensation for Counsel
was referred to the Law Committee.
Mr.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24
Yhe Law Committee reported on the matter referred to it at the
meeting on January 28th, namely, letter dated Janury 23rd from the
Cashier of the Federal Reserve Bank of Cleveland, in-uirin :hether
th,--tre would be any objection to the Federal Reserve bank chang.inL; its
°017porate seal; the Committee submitting form of a r,1)ly to the Federal
Reserve Bank of Cleveland stating that in the opinion of the Board there
is no objection to the adoption of a new seal by the bank and suggesting
that it would seem desirable to retain in the new seal the letters "4-D"
11°v; found in the rresent seal.
Upon motion, the proposed form of letterwas approved.
Mr. Hamlin then presented the report of the special committee ap-
Dointed at the meet in' of the Board held on December 13th, to consider
the pension plan submitted to the Board by the -i'ension Committee ef the
Governors Conference and to re,ort thereon to the Board; the liajority
aePert, siL,med by Messrs. Hamlin and Miller, reading in part as follows:
!In conclusion your Committee would state that after carefulconsideration of the proposed plan it finds the follawin. objections:
1. The provision for general life insurance.
The authorized participation of officers and employees
receiving salaries up to and including ;:,;18,000 per
annum.
3. The authorization to all member banks of the Federal Re-
serve 3ystern to join the plan."
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24 _8-
"Your committee is in general sympathy with theprinciples underlying this plan but in the event of theadoption of this report it would recom.nend that the viewsof the Board be transmitted to the Committee of Governorswith the statement that the Board is opposed to thegeneral life insurance principle, to the inclusion of anyemployees having salaries over 45,000 per annum, and tothe participation of member banks in said plan."
"Your Committee further recommends approval of thecontributory principle of this plan but with thelimitation of the contribution of the Federal Reservebanks to 50% of the total cost of administering thefund."
In addition to the above Majority Report Ur. Hamlin submitted
the following Minority Report signed by Dr. Cunningham:
"The undersigned raises no objection to the reportof said Committee except that he cannot approve the prin-ciple of contribution by the Federal Reserve banks to anysuch plan."
Mr. Hamlin moved the acceptance of the Majority Report, and that
4 "PIT be sent to the Governors' Committee on Pensions.
Ur. Cunningham moved the adoption of tho Minority Report, as a
81alatitute for Mr. Hamlin's motion.
Mr. Cunningham's substitute motion being put by thechair was lost, the members voting as follows:
Ur. Platt "no"Mr. Hamlin "no"Mr. Miller "no"Mr. Cunningham "aye"Br. James "aye" •Governor Crissinger "not voting"
Ur. Hamlin's original motion being put by the chairwas carried, the members voting as follows:
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
2/1/24 -9-
Mr. Platt "aye"Mr. Hamlin "aye"Mx. Miller "aye"Mx. Cunningham "no"Mx. James "no"Governor Crissinger "not voting"
Report of Committee on Examinations on matter referred to it at
the meeting on January 30th, namely, letter dated January 29th from Mr.
14 C. Elliott, Counsel for the Bank of Italy, transmitting that bank's
4PPlication for permission to acquire and to establish branches in the
Prftises of the First National Bank of El Centro, the American National
klak of Santa Ana, the First rational Bank of Shafter, and the First
Ilational Bank of San Juan; the Committee recommending that the applica-
t befiled pending receipt of complete information.
Upon motion, the report of the Committee onExaminations was approved.
Mr. Cunningham then presented a letter dated January 29th, ad-
to him 'by Mr. Charles H. J. Mitchell of Sioux Falls, South Dakota,
‘lith regard to banking conditions in the Northwest.
Noted.
..-9.1•Z OF S2AEDIITG COMMTEES:
ZO,ted February 1,
tqtea February 1,
1924 Recommending action on application for fiduciarypowers as set forth in the Auxiliary Minute Bookof this date.
Approved.
1924 Recommending approval of the application of Ex.Charles Beinert to serve at the same time asdirector of the Richmond Borough National Bank,Stapleton, N. Y. of the Tottenville National Bank,Tottenville, N. Y., and of the Mariner HarborNational Bank of Mariner Harbor, N. Y.
Approved.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
0 vv.
2/1/24 -10-
Dated February 1, 1924 Recommending approval of the application of Ur.
Nelson P. Wheeler, Jr., to serve at the same time
as director and officer of the Warren National
Bank of Warren, Pa., and as director of the Forest
County National Bank of Tionesta, Pa. and of the
First National Bank of Olean, N. Y.Approved.
Dated February 1, 1924 Recommending approval of the application of Mr.John H. Fulton to serve at the same time as officer
and director of the Rational Park Bank, New York
City and as director of the Essex County National
Bank of Willsboro, N. Y. and as director of theCanal Commercial Trust and Savings Bank of New
Orleans, La.Approved,
The moeting adjourned a 0
Secretary.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis