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Dece:.oer
Chaircan tfcCabe
k . 5. Bccles.

I dsn a t t a c h i n g h e r e t o a copy of a statement wnich I gave l a s t
evening i n response t o i n q u i r i e s cade by t h e preaa a f t e r Tranean.erica
had f i l e d a motion w i t n t n e board. 1 tnougjht you rnignt oe i n t e r e s t e d
i n readiug i t .

Copies albo seat t o
Draper
VardoLian
w>zyraczak
Clayton
Evans




1948.

The f o l l o w i n g i s a s t a t e m e n t g i v e n t o t h e p r e s s by Governor M. S . E c c l e s
on Wednesday, December 1 , 194#> a t 7 : 4 0 p . m . :

I was i n f o r m e d t h i s a f t e r n o o n t h a t a f o r m a l m o t i o n was f i l e d by
Transamerica, i n t h e p r o c e e d i n g w h i c h t h e F e d e r a l Reserve Board has
i n s t i t u t e d under t h e C l a y t o n A c t , t o d i s q u a l i f y me f r o m p a r t i c i p a t i n g
i n t h e Board 1 s d e l i b e r a t i o n s
I

thereon*

s h o u l d l i k e t o make i t c l e a r t h a t t h e Board has u n d e r s t o o d f o r

sometime t h a t I have d i s q u a l i f i e d m y s e l f f r o m t h e p r o c e e d i n g f o r t h e
reason t h a t I am g o i n g t o be a w i t n e s s i n t h e case.

Ever s i n c e

this

p r o c e e d i n g was i n s t i t u t e d , Transamerica has f r o m t i m e t o t i m e charged
i n t h e p r e s s t h a t t h e p r o c e e d i n g i t s e l f came about as a r e s u l t o f my
p e r s o n a l b i a s a g a i n s t A . P . G i a n n i n i and h i s a s s o c i a t e s i n T r a n s a m e r i c a .
One o f t h e reasons I agreed t o t h e r e q u e s t o f Counsel f o r t h e Board t o
appear as a w i t n e s s i n t h e case was i n o r d e r t o d i s p e l once and f o r
t h e i d e a t h a t t h e r e c o u l d be any t r u t h i n t h e s e c h a r g e s .

all

I am i n f o r m e d

t h a t upon t a k i n g t h e w i t n e s s s t a n d I s u b j e c t m y s e l f t o such e x a m i n a t i o n
as Counsel f o r Transamerica may see f i t t o c o n d u c t .

Therefore, i f

there

i s any t r u t h i n t h e s e c h a r g e s , Transamerica w i l l have e v e r y o p p o r t u n i t y
t o v e r i f y them.