19340907_Minutes.pdf

2699

A meeting of the Executive Committee of the Federal Reserve Board

was held in Washington on Friday, September 7, 1934, at 4:00 P.

PRESENT: Mr. Thomas, Vice GovernorMr. HamlinMr. James

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant Secretary

The Committee considered and acted upon the following matters:

Letter dated September 5, 1934, from Mr. Sproul, Secretary of the

Federal Reserve Bank of New York, and telegrams dated September 5, 1934, from

Mr. Post, Assistant Federal Reserve ,%gent at the Federal Reserve Bank of

Philadelphia, September 6, 1934, from Mr. Wood, Chairman of the Federal Re-

serve Bank of St. Louis, Mr. McClure, Chairman of the Federal Reserve Bank of

4843as City, and Mr. Sargent, Secretary of the Federal Reserve Bank of San

Prancisoo, and September 7, 1934, from Mr. Strater, Secretary of the Federal

Reserve Bank of Cleveland, and Mr. Chairman of the Federal Reserve

Bank of Dallas, all advising that, at meeting of the boards of directors on

the dates stated, no changes were made in the banks, existing schedules of

rates of discount and purchase.

Without objection, noted with approval.

Telegram dated September 6, 1934, approved by three members of the

B°1"cl, to Mr. Curtiss, Chairman of the Federal Reserve Bank of Boston,

r"ding as follows:

"Your telegram September 5. Federal Reserve Board approvesfor your bank, effective immediately, maximum rate of per annumon industrial loan commitments, with authority to officers to fixrate on each such commitment within limits of maximum rate and theMinimum rates established by your directors on July 25, 1934."

Approved.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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Telegram dated September 6, 1934, approved by three members of the

Board, to Mr. R. E. Henry, President of the Dunean /Jills, Greenville, South

Carolina, reading as follows:

"Federal Reserve Board has appointed you director of CharlotteBranch of Federal Reserve Bank of Richmond for unexpired portion ofterm ending December :A., 1936. Please wire acceptance collect."

Approved.

Letter to Mr. Stevens, Federal Reserve Agent at the Federal Reserve

8114k of Chicago, reading as follows:

"Receipt is acknowledged of your letter of September 1, 1934,advising of the acceptance by the Executive Committee of your bank,as of the close of business August 31, 1934, of the resignation ofEr. W. A. Hopkins as Assistant Auditor of the Federal Reserve BankOf Chicago, and the appointment, as of September 1, 1934, of Er.Sohn I. Endres as Assistant Auditor of your bank.

"In accordance with the action of your Executive Committee, theBoard approves the salary at the rate of ,4,000 per annum fixed forMx,. Endres in his new position."

Approved.

Letter to kr. Curtiss, Federal Reserve Agent at the Federal Reserve

Bark of Boston, reading as follows:

"Reference is made to Mr. McRae's letter of Tuly 26, 1934 ad-dressed to the Division of Bank Operations, inclosing a copy of aletter from the 'Hadley Falls Trust Company', Holyoke, Massachu-setts, and the two reports of earnings and dividends, Form 107, ofthe trust company for the six months ending Tune 50, 1934. Reportnumbered 1 was said by the trust company to be an exact transcriptOf its undivided profits account for the period and the reportnumbered 2 was said to give effect to certain charges or needed re-serves which, according to the trust company, should have been madeor provided for as at December 30, 1933. The items eliminated fromreport numbered 2 consisted of the following:

A - Charge offs 473,536.78

B - Unusual expenses incurredbut not paid (net afterusing reserve) 6,288.09

C - Pending suits 13,707.59 $193,b32.46


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"The trust company stated that the above charges, which are morefully described below, were actually entered in its books during thesix months' period ending Tune 30, 1934.

"A -

11B

Charge offs - .173,536.78 The trust company indicated (1) that in connection with its ad-mission to the Federal Reserve System it was required to show a

surplus of not less than ,;399,000 as at the close of business

December 30, 1933; (2) that on December 30, 1933 in complianceWith condition numbered 23 it had charged off :1,436,613.50 whichleft the bank with a surplus account of W0,000; (3) that theReconstruction Finance Corporation, as a condition to the purchaseOf „;;1,000,000 Class 'At preferred stock, required total chargeoffs of '4,600,000; (4) that in order to meet its requirementsthe trust company signed an agreement with the ReconstructionFinance Corporation dated December 30, 1933 to the effect that,since it could not charge off or eliminate the total amounts ofsuch charge offs or eliminations as required by the ReconstructionFinance Corporation without reducing the surplus account below theamount required by the Federal Reserve Board, it would withinthirty days from that date charge off or eliminate all items re-

quired to be so charged off or eliminated by the conditions im-posed by the Reconstruction Finance Corporation, if such items hadnot been previously charged off or eliminated.

Unusual ex enses incurred but not said (net after using reserve)- :$6,288.09

This item was reported by the trust company as consisting of thelegal fees and the cost of examination by the Commissioner ofBanks in connection with the reorganizatiam of the trust coaTanyand its admission to the l'ederal Reserve System. .;,ccording tothe trust company, the bills for such charges were not rendereduntil in 1934, but such bills covered expenses incurred duringthe period previous to December 30, 1933.

ILLZ.222LEE_ElL.9.27°7•59This item was reported by the trust company as representing thecost of settling certain claims, and related legal expense, whichgrew out of the manner in which the trust company had handled cer-

tain matters as executor and trustee in 1927 and subsequent years.

The negotiations regarding this settlement had apparently been in

Progress for some time but were not actually brought to a conclu-

sion until in 1934.

"The conditions prescribed by the Board in connection with the ad-T1ssion to membership of the Hadley Falls Trust Company were based upon-uhe report of examination of the trust company made by your examiner asat November 10, 1933. The Board's requirement that the trust companyshould have a paid-up and unimpaired capital stock of not less than

4'400,000 and a surplus of not less than :399,000 at the time of ad-Illission to membership was based on the pro forma statement of the trust

eclqany which was submitted in connection with the application for


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"membership. If the Board had been informed regarding the plansOf the trust company for making further eliminations pursuantto the requirements of the Reconstruction Finance Corporation,the amount of surplus required of the trust company upon its ad-mission to the Federal Reserve System could have been reducedto such an amount as would have permitted the elimination of allthe proposed charge-offs. In view of the fact that the trustcompany agreed to make the additional charge-offs within thirtydays from December 30, 1933, and the fact that such proposedcharge-offs, representing items unacceptable to the Reconstruc-tion Finance Corporation, actually existed in the assets of thetrust company prior to its admission to membership, it would ap-pear that such charge-offs are appropriately chargeable to the sixmonths' period ending December 30, 1933.

"While a portion, if not all, of the amounts involved in'Unusual expenses incurred but not paid' and 'Pending suits'represented expenses and liabilities incurred prior to January 1,1934, the charges therefor were made in 1934 and were not thesubject of the agreement with the Reconstruction'Anance Corpora-tion. It is believed, therefore, that such charges should bereflected in the report of earnings and dividends for the sixmonths ending June 30, 1934.

"In the circumstances, the Board will accept an amendedreport of earnings and dividends for the six months ending Decem-ber 30, 1936, which will include in Item 6 - Losses and deprecia-tion - the additional charge offs made by the trust company subse-quent to December 30, 1933, which were specifically required inaccordance with its agreement of that date with the Reconstruc-tion Finance Corporation. The report of earnings and dividendsfor the six months ending June 30, 1934 should be adjustedaccordingly. The Amended reports should contain a notation ofthe adjustments made in accordance with this letter."

Approved.

Letter to Mr. Austin, Federal Reserve Agent at the Federal Reserve

8e4k of Philadelphia, reading as follows:

"Receipt is acknowledged of Mr. Fenner's letter of August 28,1934, transmitting a brief of the correspondence covering mattersOf criticism as a result of the examination of the 'Wilkes-BarreDeposit and Savings Bank', Wilkes-Barre, Pennsylvania, as of iarch311 1934.

"The report of examination indicates that the bank was stillholding the 300 shares of stock of the Chase National Bank whichhad been purchased in 1931 and 1932 in violation of condition ofmembership numbered 3. In a letter dated February 18, 1933, thebank stated that on March 18, 1931, 100 shares of the stock had


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"been purchased for :,;10,125 as an investment and that in June,1932 additional purchases of 200 shares had been made at acost of :A,400, to reduce the average price of the shares, andasked permission to hold the 300 shares of stock until suchtame as the market price would permit the sale at a priceconsidered reasonable as compared with the carrying value.In a letter dated Larch 3, 1933, you recommended that no ob-jection be inter.posed to the retention by the bank of theShares in question until they could be disposed of at a priceWhich bears a more reasonable relationship to the average cost.

"On Earch 3, 1933, you also advised the Board that at yoursuggestion, the bank had agreed to refrain in the future fromthe purchase of any stocks and to eliminate gradually the stocksthen held for investment. The report of examination as ofLiarch 31, 1934, however, shows that the bank still held a sub-stantial amount of stocks and would indicate that there hadbeen coiaparatively small reduction in such holdings during theprovious year.

"Since the bank apparently did not wilfully violate theconditions of membership, and in view of your favorable recom-mJndation in the matter, the Board will interpose no objectionto the bank's acquisition of the 300 shares of stock of theChase National Bank. As indicated by the condition of member-ship prescribed for some time, however, the Board does not feelthat stocks are suitable for the investment of funds of deposi-tary banking institutions, and it is suggested that you advisethe bank of the Board's views in these matters and request themanagement to consider the advisability of disposing of thevarious corporate stocks it now holds as soon as it is feasibleto do so."

Approved.

Letter dated September 6, 1934, approved by three members of the

Beard, to jr. 7alliams, Federal Reserve Agent at the Federal Reserve Bank

Of Cleveland, reading as follows:

"Receipt is acknowledged of Er. Yletcher's letters of/Lu;-ust 25 and August 27, 1934, regarding the examination of the'Apple Creek Banking Company', Apple Creek, 6hio, as of July10, 1934. The letters have particular reference to the possible

violation of Section 22(d) of the Federal Reserve Act throughthe granting of an option to the firm of ,ituder Brothers, ofWhich director C. E. Studer is a member, to purchase for:4,15,000 on or before December 30, 1934, and for 5,500 on orbefore December 30, 1935, certain real estate owned by the bank.In view of the difference between the appraised value of 'i;1,100


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"of these properties, which were carried on the books of thebank at T1,598.43, and the option price, the transaction wasreported as a possible violation of Section 22(d).

"The real estate under option consists of a grain storagewarehouse with equipment for grinding feed, carried at :,)7,148.43,and an adjoining vacant lot, carried at $450. In the precedingreport of examination of the bank made as of February 1, 1964,Your examiner stated that when in active operation the businesscarried on in this property was in direct competition with thebusiness of Director Studer, and that while final dispositionOf the property was expected to be extremely slow, the valueswere declared to be substantial enough to protect the invesLment.ahile it has been noted that on August 24, 1934, a majority ofthe board of diroctors approved the transaction as Provided inSection 22(d), it is assumed that in view of all of the circum-stances you will satisfy yourself that the transaction is alto-gether proper."

Approved.


Board, to Mr. Hoxton, Federal Resrve Agent at the Federal Reserve Bank of

Richmond, reading as follows:

"Reference is made to La.. Fry's letter of June 27, 1934, withits inclosure, and to 'Ir. Thllace's or July 17, 1934, in connec-tion with a possible violation of condition of membership numbered12 by 'The Viashington Loan and Trust CamDany,, .:lashington, D. C.

. "The Washington Loan and Trust Company was admitted to member-ship in the Federal Reserve System on May 5, 1933 and among theconditions of membership accepted by the bank was standard condi-tion numbered 12, reading as follows:

'Except with the permission of the Federal ReserveBoard such bank shall not, after the date of itsa(jmission to membership, engage in the business ofissuing or selling either directly or indirectly(through affiliated corporation or otherwise), notes,bonds, mortgages, certificates, or other evidencesor indebtedness representing real estate loans orparticipations therein, either with or without aguarantee, indorsement or other obligation of such

bank or an affiliated corporation.'

"The report of examination of the bank as of May 7, 1934,shows that since May 5, 1933, date of admission to the System, thebank had sold to its customers real estate notes amounting toi245,000 and taat during the same period it had purchased realestate notes aggregating :967,700. The national bank examiner


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"States that that in his opinion these transactions were in violationof condition of membership numbered 12 and states also that acorrection was promised in the future. The bank, however, hastaken the position that it has not violated the condition ofmembership referred to and has asked that the matter be referredto proper authorities for a determination of its position withrespect to such condition of membership. In its letter of Tune26, 1934, to Lir. Fry, the bank states that the sales were inci-dental to its regular business and at the request of the pur-chasers, and further that no fees were charged in connection withthe sales or repurchases.

"Mr. iallace calls attention to the practice of the bank ofCharging the borrower a brokera7,e fee or commission at the timesuch real estate loans are originally made, as bei114:, practicallythe sane system used by concerns engaged on a large scale in thebusiness of selling real estate loans and participations. la%.iallace also states in his letuer that the information at handindicates that the sales were made because of the profit derivedby the bank from the transaction or the desire to preserve theLood will of the customers to wham the notes were sold, eitherOf which motives would of necessity be characteristic of engag-ing in the business of sellin such notes.

"On the date of examination there were outstanding a totalOr :,3,390,850 of real estate notes wiAch had been sold by thebank to its customers. It appears, therefore, that the bank hasin the past engaged rather extensively in the business of the saleOf real estate notes and the examiner states that the bank hasfollowed the policy of repurchasing such notes when requested byits customers. The volume of sales of such loans by the bankwould indicate that the public regards the bank as an institutionwhere investments of this character may be obtained.

"In the circumstances described, the Board is of the opinionthat The ',iashington Loan and Trust Company has engaged in thebusiness of selling notes representing real estate loans sinceits admission to membership contrary to the requiremcnts of thestandard condition numbered 12 heretofore referred to.

"In the past, an obligation, actual or moral, to re:airchaseloans sold, with or without recourse, has proved harmful, if notdisastrous, to many banks and the Board feels that depositarybanks should not also engage in the business of selling notesrepresenting real estate loans. Accordinr-Jy, the Board wouldbe unwilling to grant its permission to The Viashington Loan andTrust Company to engage in business of that kind."

Approved.

Letter to the "Oil City National Bank", Oil City, Pennsylvania,

l'e4la in,SP as follows:


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"The Federal Reserve Board has given consideration toYour application for permission to exercise fiduciary powers,

and grants you authority, effective if and when the Comptrol-ler of the Currency authorizes you to commence business, toact, when not in contravention of atate or local law, as trustee,

executor, administrator, registrar of stocks and bonds, guar-dian of estates, assignee, receiver, committee or estates of

lunatics, or in any other fiduciary capacity in which :Dtate banks,

trust comi;anies or other corporations which come into competitionWith national banks are permitted to act under the laws of thedtate of Pennsylvania, only in the specific trusts in which The011 City National Bank, Oil City, Pennsylvania, has been appointedand is acting at the time the Oil City National Bank is author-ized by the Comptroller of the Currency to commence business.Action has been deferred upon your application for full fidu-

ciary powers until the institution has been in operation fora reasonable period and has been subject to an examination bya national bank examiner and a report of such examination is

available."The Board feels that, if you are tendered any of the

trusts now held by The Oil City National Bank, you should care-fully scrutinize their condition and should not accept any ofsuch trusts which, through their assumption, may be detrimentalto the interests of your institution.

"Inasmuch as the application of the Oil City National Bank,Oil City, Pennsylvania, was made prior to the date the Comptrol-ler of the 'Currency authorized it to commence business, theBoard will require that your board of directors adopt a resolu-tion ratifying your application for permission to exercise trust

Powers, and it is requested that a certified copy of the resolu-tion so adopted be forwarded as soon as possible through theFederal Reserve Agent at the Federal Reserve Bank of Cleveland,Who will forward it to the i,ederal Reserve Board."

Approved.

Letter to Mr. Austin, _ederal eserve Agent at the Federal Reserve

14"411k 01 l'hiladelnhia, reading as follows:

"Reference is made to your letter of August 14, 1934,

recammendin,- favorably the proposed reduction in common capi-tal stock of the 'llihtstovn Trust Company', Hijitstown, NewJersey, from .100,000 to ,50,000, pursuant to a plan which

provides that the bank's capital shall be increased by thesale of .;50,000 of class 'A' preferred stock to the Reconstruc-

tion Finance Corporation and ,45,000 of class 'B' preferred

stock to local interests, and provides also that the released

capital shall be used to establish a reserve for contingencies.

"It appears from the information submitted that the recapi-

talization of the bank will result in a material improvement in


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"its condition and, in accordance with your recommendation, theBoard approves the reduction in the bank's common capital asPart of the plan outlined in your letter, provided that noneof the released capital will be returned to the stockholdersbut will be used to establish a reserve for doubtful assetsand to eliminate the losses and depreciation in lower gradesecurities shown in the report of examination made by anexaminer for the ;Tederal Reserve Bank as of May 22, 1934; thatthe plan of reorganization has the approval of the State bank-ing authorities, and that your counsel is satisfied as to thelegal aspects of the case. Upon completion of the proposedplan, it is requested that you advise the Board as to the elimina-tions made and forward copies of any amendments to the bank'scharter for the Board's records.

"It is noted from the report of examination that the bankcarries in its investments various corporate stocks which theBoard does not feel are suitable investments for funds ofcommercial banking institutions. It is requested that you ad-vise the bank of the Board's attitude in regard to this matterand su(zest that such stocks be disposed of as soon as it isfeasible to do so."

Approved.


Board, to Mr. O'Connor, Comptroller of the Currency, reading as follows:

"In accordance with ..,.cting Comptroller Gough's recom-mendation, the Federal Reserve Board approves a reduction inthe common capital stock of 'The First National Bank of Bray-flier', Braymer, Missouri, from :,120,000 to ',;60,000, pursuantto a plan which provides that the released capital shall beused to eliminate a corresponding amount of substandard assets,all as set forth in Mr. Gough's memorandum of August 27, 1934."

Approved.


13°4rd, to Er. O'Connor, Comptroller of the Currency, reading as follows:

"Receipt is acknowledged of your memorandum of ugust 29,1934, with reference to the proposed reduction in common capi-tal stock of 'The First National Bank of Gape Girardeau', CapeGirardeau, Missouri, which was approved by the Board on Tune 23,1934, pursuant to a plan which provided among other thins, forthe sale of c100,000 of preferred stock to the ReconstructionFinance Corporation.

"You advise that the original plan of recapitalization hasbeen amended and that the bank now proposes to sell ../)0,000


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"of preferred stock to local interests, instead of the ,100,000or preferred stock to the iieconstruction Finance Corporation,and that the existinr, .;65,000 of subordinated deposits, to-gether with an additional ...;25,000 in cash, will be used to pur-chase such ,referred stock.

"In accordance with your recommendation, the Board amendsits previous approval to provide for the sale of „;90,000 of pre-ferred stock as set forth in your memorandum of August 29, 1934,With the understanding that the other provisions of the originalplan remain unchanged."

Approved.



. "In accordance withcting Comptroller Gough's recommenda-tion, the Federal Reserve Board approves a reduction in the com-mon capital stock of 'The First National Bank of Little Falls',Little Falls, Minnesota, from „0,000 to „:10,000, pursuant to aPlan which provides that the bank's capital shall be increasedby ,IZO,OCC of preferred stock to be sold to the ReconstructionIlnance Corporation and/or others, and that the released caii-WShall be used to eliminate or reduce a correspondin amount ofundesirable assets, all as set forth in Pr. Gough's memorandumor August 25, 1934.

"In considering the plan under which the proposed reductionin capital is to be effected, it has been noted that estimatedlosses and securities depreciation which will remain unprovidedIor, on the basis of the last report of examination, if con-sidered as a loss would impair the bank's common capital. Your

examiner's comments in regard to the bank's management, which heregards as incapable and dangerous, have been noted also. It isunderstood that the Tri?-lnagement problem is receiving the attentionOf your office, and it is assumed that; whenever it is feasibleto do so, you will require such further correction in the bank's

e?ndition as may be practicable."

Approved.

Letter dated ...)eptember 6, 1934, approved by three members of the

13c/ard, to Mr. O'Connor, comptroller of the Currency, reading as follows:

"In accordance with your recommendation, the Federalserve Board approves a reduction in the common capital stock

?I 'The Hancock lational Bank', Hancock, Minnesota, from

40,000 to 35,000, pursuant to a plan which provides that the


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"bank's capital shall be increased by 15,000 of preferred stockto be sold to the -Reconstruction Finance Corporation and thatthe released capital shall be used to eliminate a correspondingamount of unsatisfactory assets, or in setting up reserves there-for, all as set forth in your memorandum of Jaigust 28, 1934."

Approved.


to Li.. O'Connor, Comptroller of the Currency, reading as follows:

"In accordance with your recommendation, the Federal ReserveBoard approves a reduction in the common capital stock of 'TheUartin County National Bank of Fairmont', Fairmont, Minnesota,from 75,000 to :„;20,000, pursuant to a plan which provides thatthe bank's capital shall be increased by 400,000 of preferredstock to be sold to the Reconstruction Finance Corporation and/orOthers, and that the released capital shall be used to eliminatecorresponding amount Of unsatisfactory assets, all as set forth

La your memorandum of August 14, 1934."

Approved.


Board, to la.. O'Connor, Comptroller of the Currency, reading as follows:

"In accordance with your recommenation, the Federal Reserve8°ard approves a reduction in the common capital stock of 'TheJaerburn National Bank', Sherburn, Linnesota, fram25,000 tov10,000, pursuant to a plan which provides that the bank's capi-tal shall be increased by the sale of J35,000 of Class 'A' pre-ferred stock to the Reconstruction Finance Corporation and05,000 Class 'B' preferred stock to local interests, and thatthe released capital shall be used to eliminate a correspondingamount of undesirable assets, all as set forth in your memoran-dumof .,,ugust 14, 1934.

"In considering the plan under which the reduction in com-mon capital is to be effected, it was noted that, on the basis01 the examination of February 7, 1934, there will remain in the?Ink securities depreciation unprovided for in an amount which,11 considered as a loss, would materially impair the bank'scapital, and that there will also remain in the bank a large7°1ume of other undesirable assets. It is assumed, however,that You have these matters in mind and will require furthercorrections whenever it is feasible to do so."

Approved.


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Letter dated Septgmber 6, 1934, approved by three members of the


"In accordance with your recommendation, the FederalReserve Board approves a reduction in the common capitalstock of 'The Truman National Bank', Truman, Minnesota,l'ram ‘50,000 to c;10,000, pursuant to a plan which providesthat the bank's capital shall be increased by the sale of60,000 of preferred stock to the Reconstruction FinanceCorporation and/or others, and that the released capitalsnail be used to eliminate a corresponding amount of sub-standard assets, all as set forth in your memorandum ofAugust 14, 1934.

"In considering the plan under which the reduction incammon capital is to be effected, it was noted that securi-ties depreciation unprovided for, if considered as a loss,would cause an impairment of the bank's common capital stock.It was also noted that the management of the institution wasthe subject of criticism by your examiner. It is assumed,however, that you have these conditions in mind and thatwhenever it is feasible to do 30 you will require suchfurther corrections as may be practicable."

Approved.


Board -to r. Gardner B. Perry, Vice-President of the Northwest Bancor-

P°rati°n) ianneapolis, Minnesota, reading as follows:

"Receipt is acknowledged of your letters of algust 25and 29, 1934, in regard to the method proposed to be usedby the Northwest Bancorporation in qualifying directors incertain national banks.. "As the matter does not came within the Board's juris-diction and it is understood that the Comptroller of theCurrency, within whose jurisdiction the matter falls, hasapproved the use of such method, it would appear that thequestion has been determined by the proper supervisoryauthority and that no expression of opinion by the FederalReserve Board is necessary."

Approved.

Telegram dated September 6, 1934, approved by three members of

the Board, to nr. Clerk, Deputy Governor of the Federal Reserve Bank of


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San Francisco, reading as follows:

"Your wire August 50. Board has heretofore advisedFederal Reserve Bank of Cleveland that pending issuance byBoard of instructions on subject, any amount deposited withFederal reserve bank to credit of 'Deposit Insurance NationalBank of Pittsburgh', organized under provisions of paragraph5 subsection (y) of Section 12B of Federal Reserve Act shouldbe included in 'other deposits' on daily balance sheet form34. This is only phase of question presented in your tele-gram upon which Board has passed and it is understood fromFederal Deposit Insurance Corporation that there is nonational bank in twelfth district organized under Section1213. If, however, you feel it desirable that other aspectsOf matter be considered at this time, please state specificquestions which you have in mind and facts giving rise there-

Approved.

Telegram dated September 5, 1934, approved by two members of the

to Ur. Stevens, Federal Reserve Agent at the Federal Reserve Bank

°f Chicago, stating that the Board has given consideration to the applica-

tion Of the "Chicago 3-obit Board, Amalgamated Clothing Workers of

44"ica", Chicago, Illinois, for a voting permit under the authority of

section 5144 of the Revised Statutes of the United States, as amended,

entitling such organization to vote the stock Which it owns or controls

in the "Amalgamated Trust 8: Savings Bank", Chicago, Illinois, and has

authorized the issuance of a limited permit to the applicant subjectto the following condition:

"That before issuing permit authorized hereunder youshall receive satisfactory assurances that prior to Septem-ber 30, 1934, there will be furnished to you agreements on11,* R. B. Forms P-3 and P-4 duly executed by Amalgamated,3eouritie3 Company, Chicago, Illinois, and Amalgamated SafeDeposit Company, Chicago, Illinois."

alad for the following purpose:


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"To vote the shares of stock of such bank in deciding allquestions at meetings of shareholders of such bank at any timeprior to September 50, 1934."

The telegram authorized the agent to have prepared by counsel for the

Federal reserve bank, and to issue to the Chicago Joint Board, Amalga-

mated Clothing Workers of America, a limited voting permit in accord-

ance with the telegram, and stated that the Board will issue a general

permit upon receipt of the exhibits referred to above.

Approved.

Letter to the Federal reserve agents at all Federal reserve banks,

Prepared in accordance with the action taken at the meeting of the Execu-

tive Committee on September 5, 1954, and reading as follows:

"The Federal Reserve Board has given careful considerationto the replies received from the Federal reserve agents inresponse to its telegram of July 5, 1934, Trans. 2025, with re-gard to interest rates on time and savings deposits.

"On the basis of the information received and its own studyOf the question, the Board has decided that no change should bemade at the present time in the maximum rate of interest of 3%on time and savings deposits prescribed in Regulation Q."

Approved.


Board, to Mr. Calkins, Governor of the Federal Reserve Bank of San Fran-

cisco, reading as follows:

"There is inclosed a copy of a letter dated May 7, 1954from Mr. William H. McReynolds, Administrative Assistant tothe Secretary of the Treasury, and of the Board's reply theretodated May 31, 1954 in connection with the inclusion of theBoard in the insurance policy covering governmental shipmentsof currency and securities during the fiscal year 1935.

"You will note from the last paragraph of the Board'sletter that the Treasury was advised the Board is of the opinionthat the question of the Federal Reserve System's participationln the Treasury contract and the extent thereof should be given


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"careful consideration during the forthcoming year and that theInsurance Cammittee of the Governors' Conference would be askedto review this question and to submit a report thereon in ad-vance of the time when bids covering the fiscal year 1936 willbe asked for by the Treasury Department.

"The Board feels that a careful investigation should bemade with a view to determining whether the rates received underthe Treasury insurance contract are as advantageous to theFederal Reserve* System as the Federal Reserve banks could getfrom the insurance companies if shipments of Federal Reservecurrency from ,.iashington to the Federal Reserve banks andbranches were covered in the banks' own policies. In thisconnection it may be noted that National bank notes shipped bythe Treasury to banks of issue are covered under the Treasurycontract, whereas currency shipped by one Federal Reserve bankto another, or by a Federal Reserve bank to one of its branchesor to one of its member bar_ks, is xot included in the contracton the ground that the shipments are not made by or.to agovernmental agency and, therefore, may not be included in theGovernment insurance contract.

"It will be appreciated if you will refer this question tothe Insurance Committee and ask it to submit a report thereonby December 31, 1934 if practicable.

"If the Insurance Committee should find that the FederalReserve banks can insure the Federal Reserve currency shippedfrom ',iashington under their own policies at a lower rate thanunder the Treasury policy, the Board will take the matter up withthe Treasury with the view of making such arrangements as arenecessary to enable the Federal Reserve banks to obtain the lowestPracticable insurance rates on such currency shipments."

Approved.

Letter to Honorable Royal S. Copeland, United States Senate,

Illashington, D. C., reading as follows:

"With your letter of ugust 16,1934, you inclosed a letterdated August 14 from Ur. Conv9rse Cleveland, of New York City;With regard to alleged unsatisfactory working conditions in theCash Department of the Federal Reserve Bank of New York.

"For your information there are attached two copies of areport regarding this matter made to the Board by the FederalReserve Bank of New York. Yr. Cleveland's letter is returnedherewith."

Approved.

Letter to Mr. W. J. Roberts, Vice President of the Mahoning

Nati°11a1 Bank, Youngstown, Ohio, reading as follows:


2714

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"This refers to your letter of July 27, 1934, to Mr. A. P.Leyburn, Chief National Bank Examiner, which has been referredto the Federal Reserve Board for reply. You indicate in yourletter that it was your impression that if the Mahoning Savingsand Trust Company were to discontinue naking loans on stock andbond collateral section 33 of the Banking Act of 1933 would notapply to interlocking directorates between the savings bank andthe Eahoning National Bank and that the discontinuance of rAkingsuch loans would also effect a compliance with section 5139 ofthe Revised Statutes, as amended.

"Section 33 of the Banking Act of 1933 amends the ClaytonAntitrust Act by adding a new section as follows:

'That from and after the 1st day of Xanuary1934, no director, officer, or employee of anybank, banking association, or trust company,organized or operating under the laws of theUnited States shall be at the same time a direc-tor, officer, or employee of a corporation (otherthan a mutual savings bank) or a member of a part-nership organized for any purpose whatsoever whichshall make loans secured by stock or bond collateralto any individual, association, partnership, orcorporation other than its own subsidiaries.'"Section 5139 of the Revised Statutes, as amended, provides

in part as follows:* * * * * * - *

'After one year from the date of the enactmentOf the Banking Act of 1933, no certificate represent-ing the stock of any such association shall representthe stock of any other corporation, except a memberbank or a corporation existing on the date this para-graph takes effect engaged solely in holding the bankpremises of such association, nor shall the ownership,sale, or transfer of any certificate representing thestock of any such association be conditioned in anymanner whatsoever upon the ownership, sale, or trans-fer of a certificate representing the stock of anyOther corporation, except a member bank.'"You will observe that the above quoted provisions of law

have no relation to each other and the fact that the MahoningSavings and Trust Company has ceased to make loans on stock orbond collateral has no bearing whatever upon the applicabilityOf section 5139 of the Revised Statutes, as amended. The latterProvon of law relates solely to national banks and questions11:r1sing thereunder, therefore, are matters which fall within the

Jurisdiction of the Comptroller of the Currency. It is suggested,therefore, that you communicate further with the Chief NationalBeak Examiner of your district with reference to the provisionsor section 5139 of the Revised Statutes.


271 5

9/7/34-17-

"The Federal Reserve Board, however, has jurisdiction overthe administration of sections 8 and SA of the Clayton Act. Ifthere are interlocking directorates between your bank and theLahoning Savings and Trust Company and the trust company makesno loans secured by stock or bond collateral within the meaningOf section 82‘ after January 1, 1934, it would appear that theprovisions of that section were not applicable to such relation-ship. Furthermore, it is noted from the Bankers Directory thatneither the national bank nor trust company has resources inexcess of ,A,000,000 and that the population of Youngstown isless than 200,000. If this is a fact the provisions of section8 are not applicable to such relationships.

"It will be appreciated if you will advise the Eederal Re-serve Agent at the Federal Reserve Bank of Cleveland further intnis matter and specifically whether the 1.-ahoning Savings andTrust Company has made loans secured by stock or bond collateralsince January 1, 1934."

Approved.

Letter dated September 6$ 1934, approved by three members of the

Board, to Er. Case, Federal Reserve :.gent at the lederal Reserve Bank of

New York, reading as follows:

"Receipt is ackhowledged of lir. Dillistin's letter ofAugust 28, 1964, inclosin:-,; correspondence between him and Er.Edward J. '::ood, regarding the latter's application under theProvisions of section 32 of the Banking Act of 1933 for a per-mit to serve at the same time as director of The Owego NationalBank, Owego, New York, and as director of P. W. Brooks 8: Co.,Inc., New York, New York.

. "Although the application covered 1:1r. Y;ood's service asdirector' of P. W. Brooks Co., Inc., it appears from the cor-

rr,espondence that he is not serving as a director of that company.ihe correspondence raised the question whether he was a 'manager'of that company, but he has explained that he is merely a bondsalesman and nothing else, having no voice in the management orcontrol or the business of the company. It also appears that theccxalpenY does not make loans secured by stock or bond collateral,either in connection with the carrying of margin accounts orOtherwise. Therefore, it appears, on the basis of the informa-tion submitted, that Mr. Dillistin's conclusion is correct andthat neither section 32 of the Banking Act of 1933 nor section SAOf the Clayton Let are applicable to the relationships in ques-tion.

"There is inclosed, for your confidential information, amemorandum addressed to the Federal Reserve Board by Ls.. Gough,DeputY Comptroller of the Currency, regarding the relaticnships


2716

9/7/34

"in question."

-le-

Approved.


Board, to La'. Case, Federal Reserve Agent at the Federal Reserve Bank of

liew York, reading as follows:

"Reference is made to your letter of August 13, 1934, re-garding the applicability of the Clayton Act to the service of111', H. Douglas Davis as an officer of The Plainfield TrustCompany and as consultant trust officer of The ilainfieldlational Bank, both of Plainfield, New Jersey. You state thatit is your conclusion, and that of counsel for your bank, thathis service should not be regarded as subject to the provisionsof the Act, and you ask that the Board advise you of its conclu-sions.

"The letter from. Mr. Davis, dated August 9, 1934, a copyor which you inclosed, states that, as consultant trust officerOf The Plainfield National Bank, Mr. Davis has no authority topass upon loans or to act as an executive officer, his onlyduties being advisory; and that he never occupies a desk in thebank or appears there as an active official. In his letter ofMAY 26, 1934, a copy of which was also forwarded to the Board,Mr. Davis states that he has never received any salary fromThe Plainfield National Bank and that the only reason for hisappointment as consultant trust officer is that the trust depart-ment of the bank is so all as not to warrant the employment ofa trust officer, but that The Plainfield Trust Company, beinginterested as a stockholder in the national bank, wishes thenational bank to have a consultant and that his duties as con-sUltant require possibly one conference a month.

"Under the circumstances, it appears that your conclusionis correct and that the provisions of the Clayton Act are notapplicable to the relationship in question, since Mr. Davis isnot a 'director, officer, or employee' of the national bankwithin the meaning of that Act."

Approved.


13°e'rd, to Mr. Wood, Federal Reserve .,:gent at the Federal Reserve Bank of

Louis, reading as follows:

"There are inclosed the originals and copies of the Clayton


2717

9/7/34 -19-

"Act permits granted to Messrs. Robert Bodes, T. Murray Hilland Emory G. Dent to serve as directors and/or officers ofthe Citizens National Bank of Bowling Green and the BowlingGreen Trust Company, both of Bowling Green, Kentucky.

"In considering these applications it tas noted that inanswer to ,uestion 8, 2orm 94a, the Bowling Green Trust Com-pany states that it makes loans on local first mortgages andresells them to customers for investments. chile it wouldappear that the mortgage loans themselves are negotiatedrather than collateral trust obligations or participationcertificates of any kind, it is possible that this activitymay be within the provisions of Section 32 of the Banking ActOf 1933. Please refer to the Board's letter of April 16,1934 (x-7866), and if the information available to you orWhich you may obtain indicates clearly that the sale of mort-gage obligations by the trust company does not constitute'negotiating securities' within the meaning of Section 32,You are authorized to deliver the permits to the respectiveapplicants and copies thereof to the banks concerned.. "If you find that the services of these applicants comewithin. the provisions of section 32, you are requested toadvise them of the requirements of that section and as to theProcedure in making formal application for a Section 32 permit.If, upon consideration of all of the facts involved, with theadvice of your counsel, you are unable to determine to your

satisfaction the applicability of Section 32 in this case, theBoard, upon receipt of full information, will be glad to ruleon the natter. In any event, the delivery of the Clayton ActPermits should not be made until it has been determined thatthe provisions of Section 32 do not apply or the service ofthe applicants has been brought into conformity with the re-quirements of that section. Please advise the Board of theaction taken in this matter.

"It was also noted that the Bowling Green Trust Companyappeared to be in poor condition when examined by the FederalDeposit Insurance Corporation as of May 2, 1934. For yourconfidential information, the report indicated estimated losses

(04,700, including securities depreciation'i7,500) anddoubtful assets ($10,400) aggregating c,)45,100, as comparedWith capital 400,000 and surplus, undivided profits and re-serves of $16,600. Loans and other real estate classifiedas slow amounted to 4108,400. The examiners' comments re-ferred to the excessive amount loaned to officers and direc-tors and the fact that the managamemt is left largely in theht9ds of the vice president, who is described as sincere inhis efforts to improve the condition of the bank but severelyhandicapped because of his owm involved financial conditionWhich resulted from speculation.

"Because of the close affiliation of the two institutions

through the directorate and substantially identical stockholders,


27t 8

9/7/34

"the problems of one will tend to involve the other. In all thecircumstances, the Board felt that it would be Preferable togrant the permits to the applicants in order to avoid any un-necessary misunderstanding in the community which miht provedetrimental to the best interests of the banks involved, but itsuggests that you endeavor, in cooperation with the appropriatesupervisin;„; authorities, to bring about a closer supervision ofthe activities of the trust company by its directors and an im-provement in its condition. In this connection, it was notedthat Er. Max B. Nahm, who is a director of the Zederal deserveBank of LA. Louis and was granted a Clayton Act permit in Janu-ary 1934, is one of the interlocking directors between the twobanks and it may be that a conference with him concerning thecondition of the trust company would be advisable.

"If you deliver the permits after ascertaining the statusof the applicants with respect to the provisions of :;ection 32 ofthe Banking Act of 1933, the Board requests that, in connectionwith your annual review of these pemmits, you report fully withrespect to the improvement effected in the condition of thetrust company."

he permits inclosed in the above letter were as follows:

'--°rY G. Dent, for permission to serve at the same time asa director of The Citizens National Bank of Bowling Green,Bowling Green, Kentucky, and as a director of the Bowling GreenIrust Company, Bowling Green, Kentucky.

1.1urray Hill, for permission to serve at the same time asa director of The Citizens National Bank of Bowling Green,

31,,°771in7, Green, Kentucky, and as a director of the Bowling GreenIrust Company, Bowling Green, Kentucky.

la"- Robert Rodes, for permission to serve at the same time as

director and officer of The Citizens National Bank of BowlingLTIlean, Bowling Green, 1,:entuc,c.y, and as a director and officer°T the Bowling Grecn Trust Company, 13owlim reen, il.entucky.

Approved.

Letter to NT. Walsh, Federal Reserve r,ent at the Federal Reserve

ank of Dallas, reading as follows:

"There are inclm,ed the original and copies of a Clayton

perait granted to Kr. J. A. Wilkins, 410 Main Street, Houston,12,,e7zas, to serve at the same time as a director of the Houston

°Ilanch, I!'ederal Reserve Bank of Dallas, and as director andofficer of The State National Bank of Houston, Houston, Texas.

"Although 11,r. WilKins included in his application his

3ervice as director and officer of the State National _ecurities


2719

9/7/34 -21-

"Company, Houston, Texas, it appears that this concern is primarilya holding company holding title to the banking house of The StateNational Bank of Houston, and that it does not engage in commercialbanking transactions. Inasmuch as it apparently is not a bankinginstitution within the meaning of the Clayton Act, the Board isunable to issue a permit for the applicant's service to that companyand, accordingly, its permit covers only his services with theHouston Branch, Federal Reserve Bank of Dallas, and with The StateNational Bank of Houston, Houston, Texas.

"It has been noted, however, from the report of examination ofThe State National Bank of Houston as at Tanuary 10, 1934, thatsame of the bills receivable of the State National SecuritiesCompany were secured by stock of The State National Bank of Houston.In the circumstances, you are requested to withhold delivery of theClayton Act permit to Mr. Wilkins until you are satisfied that theState National securities Company no longer makes loans secured bystock or bond collateral or that Mr. Wilkins is complying with theProvisions of section 8A of the Clayton Act. However, if you findthat the State National Securities Company makes loans secured bystock or bond collateral, it is suggested that you inform Mr. Val-kins Of the provisions of section 8A. As you know, if the StateNational Securities Company makes sach loans, it would be neces-c"rY for him to sever his relation either with the State Nationaloecurities Company or with both the national bank and the Houston

Blee'lleh, Federal Reserve Bank of Dallas, in order to comply withthe provisions of section 8A.

"The statement of condition of the State National SecuritiesCompany as of October 25, 1933, submitted with the application,showed that there were included among the company's assets billsreceivable of 4105,844.95 and stocks of z;68,877.00. The company'stotal assets were ;613,519.27, of which A00,000.00 was representedbY the company's equity in the building of The State National BankOf Houston, While it appears that the provisions of section 32 ofthe Banking ct of 1933 are not applicable in this case, the Boardrequests that you make such investigation as is necessary todetermine definitely the status of Y.s. -dilkins with respect to theprovisions of section 32.

"If you find that Mr. -;:ilkinst service with the national bsnkand the State National Securities Company comes within the pro-visions of section 32, you are requested to inform him of the re-quirements of that section and as to the procedure in making for-Mal application for a section 32 permit. If, upon a considerationO f all of the facts involved, with the advice of your counsel, youare unable to determine to your satisfaction the applicability of3?eti0n 32 in this case, the Board, upon receipt of full informa-tion, will be glad to rule on the matter. In any event, thedelivery of the Clayton Act permit should not be made until ithas been determined that Mr. Wilkins' service with the abovenamed company and bank does not came within the provisions of


2720

9/7/34 -22-

"section 32 or that his service with such institutions hasbeen brought into conformity with the requirements of thatsection.

"It has been noted also from the report of examinationOf The State National Bank of Houston as at Tanuary 10, 1934,that the entire capital stock of the State National Securi-ties Company was in the nane of trustees who were holding itfor the benefit of shareholders of the bank and that transferof stock in the bank also transferred ownership of stock inthe company. .iipparently the provisions of section 5139 of theRevised Statutes as amended by section 18 of the Banking _letOf 1933 were applicable in this case.

"If you find to your satisfaction that the provisions ofsection 8A of the Clayton Act and section 32 of the BankingAct of 1933 are not applicable to Mr. wilkins and that theprovisions of section 5139 of the Revised Statutes as amendedhave been complied with in connection with the stock of thenational bank, you are authorized to transmit the Clayton Actpermit to the applicant and copies thereof to the banks con-cerned.

"Please inform the Board of the action taken in thesematters."

Approved.

Letters dated September 6, 1934, approved by three members of

the Board, to the respective Federal reserve agents, stating that the

Board has given consideration to the following applications for permits

'der the Clayton Act, and that, upon the basis of the information

before it, feels that the issuance of the permits applied for would be

incompatible with the public interest. Each letter requested the

411 "eht to communicate to the applicant the Board's position in the

Matter ) and to advise the Board promptly as to whether the applicant

desires to submit any additional data, and, if not, as to what steps

he Proposes to take in order to comply with the provisions of the

ClaYton Aet.

Mr. Howard Ewart, for permission to serve at the same timeas a director of The First National Bank of Toms River,Tams River, New Jersey, and as a director of the OceanCounty Trust Company, Tams River, New Tersey.


27219/7/34 -23-

111". W. S. Clark, for permission to serve at the same timeas an officer of the First National Bank in Fairmont, rairmont,West Virginia, and as a director of The First Clark NationalBank of Northfork, Northfork, West Virginia.

A. R. Davis, for permission to serve at the same titleas a director and officer of The State National Bank ofGarland, Garland, Texas, and as a director of The CitizensNational Bank of Denison, Denison, Texas.

Approved.

Letters to the respective Federal reserve agents, stating that the

13(3azd has given consideration to the following applications for permits

ulader the Clayton Act, and that, upon the basis of the information before

it,eels that the issuance of the permits applied for would be incom-

Datible with the public interest. Each letter requested the agent to

C OTrrm,ca-be to the applicant the Board's position in the matter, and to

clvise the Board promptly as to whether the applicant desires to submit

44Y additional data, and, if not, as to what steps he proposes to take

44 Order to conply with the provisions of the Clayton Act.

Itr. Mark M. Holmes, for permission to serve at the same timeas a director and officer of The Exchange National Bank of

21aan, Olean, New York, and as a director of The Olean Trust'aumpany, Olean, New York.

11-re W. D. Womer, for permission to serve at the same time asa director and officer of The First National Bank of Manhattan,144A?.attan, Kansas, as a director and officer of The FirstNE.ttional Bank of Phillipsburg, Phillipsburg, Kansas, and as adIrector and officer of The First National Bank of Kensington,Xensington, Kansas.

T. P. Lee, for permission to serve at the same time as adirector and officer of The State National Bank of Houston,HoUston, Texas, and as a director of The Citizens National BankOf Sour Lake, Sour Lake, Texas.

I'll"Ford Seale, for permission to serve at the same time asa director of The State Nationsl Bank of Garland, Garland,


2722

9/7/34-24-

Texas, and as a director and officer of The Citizens NationalBank of Denison, Denison, Texas.

Approved.

Letters dated September 5, 1934, approved by three members of the

Board, to the respective Federal reserve agents, inclosing the following

Clarton. Act permits, and stating in each case that if the agent finds to

his satisfaction that the provisions of section 32 of the Banking 2',.ct ccr

19:33 do not apply to the applicant, he is authorized to transmit the

ClaYton Act permit to him:

Mr. Charles G. Woodward, for permission to serve at the same timeas a direc6or of the Hartford National Bank and Trust Company,Hartford, Connecticut, and as a director and officer of The MorrisPlan Bank of Hartford, Hartford, Connecticut.

Ur. Lafayette E. Hughes, for permission to serve at the same timeas a director of The First National Bank of Denver, Denver,Colorado, and as a director of The International Trust Company,Denver, Colorado.

Board

Approved.


$ to Mi. Curtiss, Federal Reserve Agent at the Federal Reserve Bank

of Bcft4.inclosing the following Clayton Act permits for transmission

to the applicants, suggesting that the agent advise Messrs. Washburn,

Converse and Smith that it is with the expectation that they will improve

their attendance at directors, meetings that the permits have been granted;

Wad requesting that, when the agent submits his recommendations as a result

°t his annUal review of the permits, he report fully as to the attendance

directors' meetings of the three directors named:

121. MY/10n F. Converse, for permission to serve at the same timeas a director of The Mechanics National Bank of Worcester, Wor-cester, Massachusetts, and as a director and officer of The"°reester Morris Plan Company, Worcester, Massachusetts.


2723

9/7/34 -25-

la' S. A. Ellsworth, for permission to serve at the same timeaS an officer of The Mechanics National Bank of Worcester,dorcester, Massachusetts, and as a director of The WorcesterMorris Plan Company, Worcester, Massachusetts.

U1'. Frank C. Smith, Tr., for pemission to serve at the sametime as a director of The Mechanics National Bank of Worces-ter, Worcester, Massachusetts, and as a director of The Wor-cester Morris Plan Company, Worcester, Massachusetts.

Mr. Frederic B. Washburn, for permission to serve at the sametime as a director and officer of The Mechanics National Bank01 Worcester, Worcester, Massachusetts, and as a director ofThe Worcester Morris Plan Company, Worcester, Massachusetts.

Approved.

Letter to Mr. Case, Federal Reserve Agent at the Federal Reserve

1144k " New York, inclosing the following Clayton Act permit, and stating

that if the agent finds to his satisfaction that the provisions of section

32 of the Banking Act of 1933 are not applicable to the applicant, the

ent is authorized to transmit the Clayton Act permit to him:

Mr' Wm. A. Dusenbury, for permission to serve at the same timeas a director and officer of The First National Bank of Olean,Olean, New York, and as a director of The Olean Trust CompanyOf Olean, Olean, New York.

Approved.


to Mr. Austin, Federal Reserve Agent at the Federal Reserve Bank

or Philadelphia, inclosing the following Clayton Act permit for trans-

11118810A to the applicant; suggesting that the agent advise the applicantthat it .3

i with the expectation that he will improve his attendance at

cill'ectorat meetings of the Barnesboro bank that the permit has been

'1'411tacl; and requesting that, when the agent subnits his recommendation

48 a l'esult of his annual review of the permit, he report fully as to the

64)13licalit'3 attendance at directors' meetings, and as to the progress


2724

9/7/34 -26-

Made in eliminating or adequately securing his criticized line of credit

with the Farmers & Merchants Bank of Cherry Tree:

1.1r. M. I. Leadbetter, for permission to serve at the same timeas a director of The First National Bank of Barnesboro, Barnes-b°1"01 Pennsylvania, and as a director of the Farmers & MerchantsBank of Cherry Tree, Cherry Tree, Pennsylvania.

Beard.,

Approved.


to Ur. Hoxton, Federal Reserve Agent at the Federal Reserve Bank

°t Richmond, inclosing the following Clayton Act permit, and stating that

It the agent finds to his satisfaction that the provisions of section 32

°I' the Banking Act of 1933 are not applicable to the applicant, he is

e'llthorized to transmit the Clayton Act permit to him. The letter also

that it is desired that the agent inform the aprlicant that it is

With the expectation that he will improve his attendance at directors'

ttleet14gs of the Holly Hill bank that the permit has been granted, and

requested that, if the permit is delivered, the agent report fully when

he slIbmits his recommendation as a result of his annual review of the

1)ellalit as to the applicant's attendance at directors' meetings during1934:

Robert Lide, for permission to serve at the same time asa director and officer of the Arst National Bank in Orangeburg,Oraageburg, South Carolina, and as a director of Ale FirstNational Bank of Holly Hill, Holly Hill, South Carolina.

Letter to Mr. McClure, Federal Reserve Agent at the Federal Re-

Bank of Kansas City, inclosing the following Clayton Act permit

transmission to the applicant; suggesting that the agent advise the

1313licant of the Board's views as expressed in the letter with regard to


2725

9/7/34-27-

attendance at directors' meetings; and requesting that, when he submits

his recomendation as a result of his annual reviewo-z the permit, he

ePort fully as to the applicant's attendance at directors' meetings and

he rnanner in which he has discharged his duties as director.

,ranA: h. Connor, for permission to serve at the same timeaS a director of The Stock 'C-rowers National Bank of Cheyenne,Cheyenne, yaming, as a director of The Farmers National Dankof Central City, central City, lebraska, and as a director ofthe Butte county dank, Belle lourche, South Dakota.

Approved.

Letkr to r. LeClure, Federal Reserve _Lgent at the 2ederal

serve

ie-

Ja2L co' Kansas City, irlelosing the following Clayton .1ct permit for

transission to the apolicant, and suggesting that the agent endeavor, in

c°ePeration with the appropriate supervisory authorities to brim; about an

iilli vement in the condition and management of the Central National Bank.

The letter also requested that when the agent submits his recommendationas n

result Of his annual review of the permit, he report fully as to the

13z‘()el'ess Itade in bringing about an improvement in the condition and manage-

lent of the national bank:

C. Jellison, for permission to serve at the same tine as.d1/"ector and officer of The Central National Bank of Junction

Junction City, Kansas, as a director and officer of the'2:1,son State Bank, 7Alson, Kansas, and as a director and officer

Ile Bank of Holyrood, :olyrood, Kansas.

thel

4proved.

Letters dated September 5, l93, appoved by three members of the

t 0 applicants for permits under the Clayton .ct, advising of approval

r applications as follows:

;r-„ vlgeo E. Bird, for permission to serve at the same time as

director of The National Bank of Commerce of ilew London, New11c1°n, (jonnecticut, and as a director of The Morris hlcn Bank

I ilartford, Hartford, Connecticut.


27269/7/34

-28-

la" G. F. Lloyd, for permission to serve at the same time as adirector and officer of the Monongahela Trust Company, Homestead,PsnasYlvania, as a director and officer of The First National BankOf Homestead, Homestead, Pennsylvania, and as a director andofficer of The Hays National Bank, Hays, Pennsylvania.

14.1". W. C. McClure, for permission to serve at the same time asan officer of the Monongahela Trust Company, Homestead, Pennsyl-vania, and as a director and officer of The Hays National Bank,nays, Pennsylvania.

Harvey Perin, for permission to serve at the same time asa director and officer of The Amelia State Bank, Amelia, Ohio,and as a director of The New Richmond National Bank, New Rich-mond, Ohio.

14'2"' 11. E. Sheets, for permission to serve at the same time asa director and officer of The Shelby County Bank, Botkins, Ohio,aad as a director of The First National Bank of Wapakoneta, Wa-Pakoneta, Ohio.

14-11. Arthur V. Brown, for permission to serve at the same time asa director and officer of The Indiana National Bank of Indiana-,),°1.-1s, Indianapolis, Indiana, as a director and officer of Theuttlon Trust Company of Indianapolis, Indianapolis, Indiana,alld as a director and officer of The Union Trust Ioint Stock LandBank, Indianapolis, Indiana.

1!" W. N. W.Blayney, for permission to serve at the same time.7".8 a director of The First National Bank of Denver, Denver,Colorado, and as a director of The International Trust Company,Denver, Colorado.

1,11. Sohn Evans, for permission to serve at the same time as adirec0!irector and officer of The First National Bank of Denver, Denver,tor and

and as a director and officer of The InternationalCampany, Denver, Colorado.

S. Campbell, for permission to serve at the same time as!director of the First National Bank in Mitchell, Mitchell,illiebraakas

and as a director of the First National Bank in Morrill,'°rrill, Nebraska.

Mr. ITC. Karpf, for permission to serve at the same time as an

c'''ticar of the First National Bank in Mitchell, Mitchell, Nebraska,1!, C1 as a director and officer of the First National Bank in Morrill,

Nebraska.

Mr. Vidire: W. Newell, for permission to serve at the same time as aalga

t0 Newell,of the First National Bank in Mitchell, Mitchell, Nebraska,

as a director of the First National Bank in Morrill, Morrill,Nebraska.


9/7/34-29.-

2727

11" M. B. quivey, for permission to serve at the same time as adirector and officer of the First National Bank in Mitchell,

Nebraska, and as a director of the First National Bankin Morrill, Morrill, Nebraska.

Mr. X. L. Sandford, for permission to serve at the same time asa director and officer of the First National Bank in Mitchell,Mitchell, Nebraska, and as a director of the First National Bank1.13. Morriij., Morrill, Nebraska.

112'.H. M. Springer, for permission to serve at the sane time asa director of the First National Bank in Mitchell, Mitchell,Uabraska, and as a director and officer of the First NationniBank in Morrill, Morrill, Nebraska.

Mr.-- E. A. Duff, for permission to serve at the same time as adirector and officer of The First National Bank of Syracuse,Syracuse, Nebraska, as a director and officer of The FirstNational Bank of Unadilla, Unadilla, Nebraska, and as a directorOf The United States National Bank of Omaha naha, Nebraska.

R. A. Duff, for permission to serve at the same time as adirector of The First National Bank of Syracuse, Syracuse,N.e-raska, and as a director and officer of The First NationalBank of Unadilla, Unadilla, Nebraska.

T. H. Wake, for permission to serve at the same time as adirector and officer of The Tones,National Bank of Seward,Seward, Nebraska, and as a director and officer of the GoehnerState Bank, Goehner, Nebraska.

101* nM. Kasling, for permission to serve at the same time as

director and officer of The First National Bank of Hughes, nri,-'"gss Hughes Springs, Texas, and as a director and officerThe First National Bank of Linden, Linden, Texas.

Mr 1,,M. M. Roberts, for permission to serve at the same time asa director111t1d and officer of The First National Bank of .Arkland,

i[ashington, as a director and officer of The First,,;--aaJ- Bank of Redmond, Redmond, Washington, and as a directorl

d.officer of the attonville State Bank, Eatonville, ;lashington.

Clayton A. Shinstram,as a director and officerXirkland, Ashington andNationa-4 Bank of Redmond,

Helen Shinstram, for permission to serve at the same timea director of The First National Bank of Kirkland, Kirkland,

Renillgton, and as a director of The First National Bank of Redmond,e 'w(Ind, Washington.

for permission to serve at the same timeof The First National Bank of Kirkland,as a director and officer of The FirstRedmond, Jashington.


27289/7/34

-30-

Mr. Tames P. Water, for permission to serve at the same time asa.director and officer of The First National Bank of Kirkland,4irkland, Washington, and as a director of The First NationalBank of Redmond, Redmond, Washington.

Ihre W. H. Tucker, for permission to serve at the same time as1!.,,n officer of The National Bank of Commerce of Seattle, Seattle,Wasaington, and as a director and officer of The First NationalBank of Coamopolis, Coamopolis, Washington.

Approved.

Letters dated September 6, 1934, approved by three members of the

c)4rds to applicants for permits under the Clayton Act, advising of

13'13131loral of their applications as follows:

Mr° Irving H. Chase, for permission to serve at the same time asdirector and officer of the Norris Plan Bank of Waterbury,

;laterbury, Connecticut, as a director of The New Haven Bank,National Banking Association, New Haven, Connecticut, and as adirector and officer of The Waterbury National Bank, Waterbury,Connecticut.

la% Chase Kimball, for permission to serve at the same time as adirector of The Morris i'lan Bank of Waterbury, Waterbury, Connecti-cut, and as an officer of The Waterbury National Bank, aterbury,Connecticut.

141'. Alexander J. Thomson, for permission to serve at the same timeas a director and officer of The Waterbury National Bank, daterbury,cinnecticut, and as a director of The Norris Flan Bank of daterbury,Waterbury, Connecticut.

Lir 41„"4-"Llam F. Birch, for permission to serve at the same time as

director and officer of The National Union Bank of Dover, Dover,New Jersey, and as a director and officer of the American Trust'4"PanY, L:orristown, New Jersey.

, Leon Budd, for permission to serve at the same time as ar,lrector of The Farmers and /jechanics National Bank of Woodbury,.(,)30dbury, New Jersey, and as a director of the V;oodbury Trust441anY, Woodbury, New Yersey.

L:r.a,- '14und H. Carpenter, for permission to serve at the same time

4 director of The cirmers and Lechanics National Bank of ,,00dbury,00,°d111.1rY, New Jersey, and as a director of the Woodbury Trust'111PanY, ;loodbury, New Jersey.


2729

9/7/34

Mr. Ellison H.a director andWestville, NewTrust Company,of The FarmersNew Jersey.

-31-

avis, for permission to serve at the same time asofficer of The First National Bank of Westville,Jersey, as a director and officer of the WoodburyWoodbury, New Jersey, and as a director and officerand Llechanics National Bank of f;oodbury, 'Aodbury,

Mr. 'William H. Hartman, for permission to serve at the same timeas a director of The Peoples National Bank and Trust Company ofPemberton, Pemberton, New jersey, and as a director of the Wood-bury Trust Company, Woodbury, New jersey.

11F. James C. Henry, for permission to serve at the same time as adirector or The Farmers and lechanics National Bank of '.00dbury,„oodbury, New Jersey, and as a director of the Woodbury TrustCampany, Woodbury, New Jersey.

,LdGar Hurff, for permission to serve at the same time as adirector and officer or The Swedesboro National Bank, 3wedesboro,.71.s17 jersey, and as a director of the Aodbury Trust Company,.00dbury, New jersey.

lir. George B. LArshall, for permission to serveas a director and officer of The First NationalGlassboro, New Jersey, and as a director of theCompany, Woodbury, New Jersey.

Mx'. David 0. .atkins, for permission to serve at the same time as! director and officer of the Woodbury Trust Company, Woodbury,

1,,e17 Jersey, and as a director and officer of The Farmers andMechanics National Bank of Woodbury, Woodbury, New jersey.

at the same timeBank of Glassboro,Woodbury Trust

14"Geo. W. Himes, for permission to serve at the samedirector and officer of The Peoples National Bank of

burg, Shippensburg, Pennsylvania, and as a director ofTrust company,

Carlisle, Pennsylvania.

hl" R. C. S. Davis, for permission to serve at the same time asdirector of the First National Bank in Henderson, Henderson,

North Carolina, and as a director and d'ficer of the IndustrialBaak of Henderson, Henderson, North Carolina.

11" S. R. Watson, for permission to serve at the same time as! director and officer of The Industrial Bank of Henderson,tienderson, North Carolina, and as a director of the First National11/"Lak in Henderson, Henderson, North Carolina.

Mr.

time asLAiippens-the Carlisle

i• W. Bull, for permission to serve at the same time as a'!irector of The First National Bank of Holly Hill, Holly Bill,"uth Carolina, and as a director of The Southern National Bank


9/7/34

of Oranceburg, Granceburg,

• S. S. McCoy, for permission to serve at the same time asa director of The First National Bank of Holly H111, HollyRill, South Carolina, and as a director and officer of theFarmers & Merchants Bank, Holly Hill, South Carolina.

-32-

South Carolina.

2730

Approved.

Letters to applicants for permits under the Clayton Act, advis-

or approval of their applications as follows:

Ur. Cyrus H. Sears, for permission to serve at the same timeas an officer of the Harpster Bank Unincorporated, Narpster,Ohio, and as a director of The First National Bank of UpperSandusky, Upper Sandusky, Ohio.

Llr• E. C. (:right, for permission to serve at the same time asa director and officer of The First 1:ational Bank of Newark,Newark, Ohio, and as a director of The First National Bank ofUtica, Utica, Ohio.

1411. W. B. Reed, for permission to serve at the same time as ad!,rector and officer of The Farmers National Bank of CentralCity, Central City, Nebraska, and as a director and officer ofthe Palmerk State Bank, Palmer, Nebraska.

111"*.E. i. Rolfs, for permission to serve at the same time asa director and officer of The Central National Bank of JunctionCitY, Junction City, Kansas, and as a director of The Bank ofRolyrood, Holyrood, Kansas.

L. Stuart, for permission to serve at the same tine asa director and officer of The Shattuck National Bank, Shattuck,°klahama, and as a director and officer of The First NationalBank of Laverne, Laverne, Oklahoma.

111'• I. Stuart, for permission to serve at the same time asa director of The Shattuck national Bank, Shattuck, Oklahoma,eIld as a director and officer of The First National Bank ofLaverne, Laverne, Oklahoma.

"s E. Stuart, for permission to serve at the same time asa director and officer of The Shattuck National Bank, Shattuck,?Iclahoma, as a director and officer of The First National Bank

Laverne, Laverne, Oklahoma, and as a director and officer ofThe Follett National Bank, Follett, Texas.

PA4 '4* H. Warner, for permission to serve at the same time as a"-Lrector and officer of The First National Bank of Kensington,


27319/7/34

-33-

Kensington, Kansas, and as a director of The First NationalBank of Phillipsburg, Phillipsburg, Kansas.

11r' I. B. Harrell, for permission to serve at the same timeas a director and officer of The First National Bank of Celeste,Celeste, Texas, and as a director of the Citizens State Bank ofGreenville, Greenville, Texas.

141's I. H. Phelan, for permission to serve at the same time as adirector of The First National Bank of Beaumont, Beaumont, Texas,Tad as a director of The Citizens National Bank of Sour Lake,0our Lake, Texas.

T. F. Rothwell, for permission to serve at the same time asa director of The First National Bank of Beaumont, Beaumont,Texas, and as a director and officer of The Citizens NationalBank of Sour Lake, Sour Lake, Texas.

Approved.

There were then presented the following applications for changes14 stock of Federal reserve banks:

,,laication for ORIGINAL Stock:ulstrict No. 11SilYcler National Bank,

S4Ydsr, Texas

lications for ADDITIONAL Stock:

Sallrord Trust Campany,, Sanford, Maine

LiaotIcester Safe Deposit and Trust• ecimPanY, Gloucester, Nassachusettshrst

National Bank of Webster,Webster, MassachusettsT40 Indian Head National Bank of Nashua,Nashua, New HampshireThe Wilton national Bank,Wilton., New Hampshire

District No. 5'l'eop„,les Savings Bank and Trust Company,111,

411nlingtOns North Carolina"e Ballk of Halifax,mjialirax, Virginia

wha Banking and Trust Company,,,,, Charleston, West VirginiaBank of

Romney,RQM4sY, lest Virginia

Shares

75

78

15

45

60

15

2

1

60

30

75

213

93


2732

9/7/34

A lications for ADDITIO=No.

Stock: (Continued) 6:The

CommeT6Thrliational Bank and TrustC°1aPanY of Laurel, Laurel, Mississippi

District No. ?..Z7riairIiiiiiriria-Trust Company,

Zmaston, IllinoisThe First National Bank of Batesville,Batesville, IndianaThe First National Bank of Bloomington,Blooming, Indiana

hi:Ile/lean National Bank at Indianapolis,Indianapolis, IndianaThe Manufacturers National Bank ofDetroit, Michigan

Detroit,

The Bank of Bagley,„ 13agleY, Minnesotasuae

First National Bank of Keewatin,ICeewatin, Minnesota-Lae Farmers and Merchants National Bankm, of

Minneota, Linneota, Iinnesotaate Cotmercial Bank,

d

Menominee, Michigan

District No. 10.The First National Bank of Overbrook,Overbrook, KansasThe First National Bank of Parsons,

Parsons, 'KansasThe Fidelity National Bank of Oklahoma City,Oklahoma City, Oklahoma

for SURRMTDER ofrbmi,striot Stock:

-Peolp les 1:ationa1 Bank of Warrenton,:larrenton, Virginia

bistrict . 71.4u "- •Caledonia National Bank,

C4led°111a, IllinoiseStat r".„m ,,culic of Croswell,

‘iroswell, Michigan

-34-

Shares

30

150

6

6

96

300

9

12

9

12

a

24

30

558

42

90 122Total 1,058

43

20

31

43

51


27339/7/34

Z.p.Lieations for SURRENDER of Stock:

140. 10. -The ilirst VatioiDial Bank of Lyndon,LYndon, Kansas

Approved:

-3;3 - •

(Continued) Shares

4proved.

Thereupon the meetim: adjourned.

21 Total


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