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Fred L . Dreher "~ N Ed M c C l e l l a n __ank J . McCarthy / DREHER, McCLlLLAN & MEARTHY Attorneys at n 485 C a l i f o r n i a S t r e e t , S u i t e 1005 San F r a n c i s c o , C a l i f o r n i a January 23, 1940 Hon. P r e s t o n Delano C o m p t r o l l e r o f t h e Currency T r e a s u r y Department Washington, D. C. Dear S i r : I" have t h e honor t o acknowledge r e c e i p t from you o f a communicat i o n dated January 11, 1940, which i s denominated "Order t o Show Cause and f o r H e a r i n g " t o determine c e r t a i n m a t t e r s w i t h r e s p e c t t o t h e Bank o f America N a t i o n a l T r u s t and Savings A s s o c i a t i o n o f San F r a n c i s c o , C a l i f o r n i a , o f which bank I am a d i r e c t o r . I t i s my purpose as a d i r e c t o r o f t h e bank f u l l y t o p e r f o r m e v e r y o b l i g a t i o n and t o d i s c h a r g e a l l r e s p o n s i b i l i t i e s which 3uch directorship entails. I n o r d e r t o be c e r t a i n t h a t no o p p o r t u n i t y i s n e g l e c t e d t o e s t a b l i s h and m a i n t a i n p r o p e r r e l a t i o n s w i t h t h e F e d e r a l a u t h o r i t y charged w i t h t h e a d m i n i s t r a t i o n o f t h e l a w under which t h e bank i s o p e r a t i n g , I s h o u l d , i n r e s p e c t t o t h e above mentioned communication, a p p r e c i a t e r e c e i v i n g from you i n f o r m a t i o n which m i g h t enable me b e t t e r t o cooperate w i t h your o f f i c e i n t h e d i s c h a r g e o f o u r separate r e s p o n s i b i l i t i e s . I m i g h t add t h a t t h e o t h e r d i r e c t o r s o f t h e bank w i t h whom I have discussed your commun i c a t i o n , approach t h e q u e s t i o n s p r e s e n t e d i n s i m i l a r s p i r i t . I f e e l t h a t any i n f o r m a t i o n you can g i v e me i n response t o t h e f o l l o w i n g i n q u i r i e s w i l l enable me t o d i s c h a r g e my r e s p o n s i b i l i t y w i t h g r e a t e r assurance: 1« Inasmuch as I have no knowledge o f any l a w o r r e g u l a t i o n s p e r t a i n i n g t o t h e o f f i c e o f t h e C o m p t r o l l e r o f t h e Currency which a u t h o r i s e h e a r i n g s t o be h e l d by t h e C o m p t r o l l e r o r b y h i s p e r s o n a l r e g r e s e n t a - , t i v e s t o u c h i n g t h e m a t t e r s r e f e r r e d t o i n y o u r communication, I s h o u l d l i k e t o i n q u i r e whether a t t h e h e a r i n g you have s e t f o r t h e 1 4 t h day o f F e b r u a r y , 1940, w i t n e s s e s w i l l be sworn and examined. What r u l e s o f evidence w i l l be i n f o r c e ? W i l l t h e C o m p t r o l l e r a t such h e a r i n g be r e p r e s e n t e d by counsel? W i l l t h e C o m p t r o l l e r p r o m p t l y a d v i s e me as t o t h e contemplated r u l e s o f procedure i n t e n d e d t o govern a t t h e proposed hearing? 2. What s p e c i f i c a l l y i s y o u r a u t h o r i t y f o r i s s u i n g such a communication? 3. I f you, as C o m p t r o l l e r o f t h e Currency, have determined t o p u b l i s h t h e r e p o r t o f e x a m i n a t i o n o f t h e bank, w i l l you s p e c i f y i n advance o f t h e h e a r i n g t h e l e g a l c o n d i t i o n s o r r e q u i r e m e n t s which have n o t been complied w i t h and which would c o n s t i t u t e l e g a l ground f o r such publication? 4. I n view o f t h e correspondence between your o f f i c e and t h e bank r e l a t i v e t o p r o c e e d i n g s f o r t h e removal o f d i r e c t o r s and o f f i c e r s p u r s u a n t t o S e c t i o n 30 o f t h e Banking A c t o f 1933, what f u r t h e r assurance would t h e C o m p t r o l l e r d e s i r e o f t h e w i l l i n g n e s s o f t h e d i r e c t o r s and o f f i c e r s o f t h e bank t o submit t o and p a r t i c i p a t e i n p r o c e e d i n g s under s a i d S e c t i o n 30 o f t h e Banking A c t o f 1933? 1 a311 n ° t aware t h a t any d i r e c t o r o r o f f i c e r o f t h e bank has any r e l u c t a n c e t o submit h i s conduct and h i s q u a l i f i c a t i o n s t o t h e s c r u t i n y o f t h e t r i b u n a l d e s i g n a t e d by l a w t o pass judgment on such m a t t e r s . 5. I am a t a l o s s t o Jmow how t o proceed i n r e s p e c t t o t h e q u e s t i o n o f whatever o t h e r o r f u r t h e r a c t i o n y o u might t a k e as p r o v i d e d by l a w u n l e s s I were a d v i s e d i n advance o f some o t h e r o r f u r t h e r a c t i o n w h i c h m i g h t be c o n t e m p l a t e d . Perhaps i f y o u would i n d i c a t e t h e c h a r a c t e r o f any o t h e r o r f u r t h e r a c t i o n w h i c h t h e c i r c u m s t a n c e s , as y o u may c o n c e i v e them, m i g h t l e g a l l y w a r r a n t , i t m i g h t be p o s s i b l e t o o f f e r f a c t s and s u g g e s t i o n s w h i c h w o u l d have a p r o p e r b e a r i n g upon t h e e x e r c i s e o f y o u r d i s c r e t i o n o r d u t y . But I must r e c o g n i z e t h a t y o u are' r e s p o n s i b l e f o r t h e a d m i n i s t r a t i o n o f t h e o f f i c e o f t h e C o m p t r o l l e r of t h e Currency under t h e d i r e c t i o n o f t h e S e c r e t a r y o f t h e T r e a s u r y and I am n o t i n a p o s i t i o n t o v o l u n t e e r a d v i c e as t o how t h e o f f i c e s h o u l d be conducted. 6. At t h e c o n c l u s i o n o f t h e h e a r i n g b e f o r e y o u r s p e c i a l r e p r e s e n t a t i v e , i s i t c o n t e m p l a t e d t h a t he s h a l l make f i n d i n g s o f l a w and f a c t , and recommendations t o g u i d e y o u i n t h e performance o f y o u r d u t i e s ? If s o , w o u l d y o u have any o b j e c t i o n t o t h e d i r e c t o r s o r t h e bank app o i n t i n g a s p e c i a l r e p r e s e n t a t i v e of e q u a l d i g n i t y ana e x p e r i e n c e who m i g h t l i k e w i s e be p r e s e n t t h r o u g h o u t t h e h e a r i n g and t o whom would be made a v a i l a b l e a l l t h e e v i d e n c e , r e c o r d s and f i l e s w h i c h i t i s c o n t e m p l a t e d v a i l be a v a i l a b l e t o jrour r e p r e s e n t a t i v e , and who m i g h t l i k e w i s e submit f i n d i n g s and recommendations deemed w a r r a n t e d and a p p r o p r i a t e ? Respectfully, (signed) FLD/M AIRMAIL F r e d L . Dreher
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