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June 18* 19A3* FILES Mr* Clayton I repeated the attached telegram to !ir* Ecelee over the longdistance telephone on Thxxr&d&y afternoon, June !?• He aaw no reason for any acknowledgment* but t&ll diacuss the matter upon hie return to Washington* Attachment LCl Jg C O P Y 1943 JUN 16 PM 11 56 SA 494 236 NL 1/163-LOS ANGELES CALIF 16 HON. MARRINER ECCLES, CHAIRMAN BD OF GOVERNORS FED RES BD WASH DCI HAVE INFORMATION THAT YOU RECENTLY STATED THAT I HAD BROKEN MY WORD WITH YOU, WHICH YOU SAY. WAS GIVEN EARLIER IN THE YEAR AT OUR MEETING IN WASHINGTON. THIS STATEMENT IS ABSOLUTELY UNTRUE AND I RESENT IT. YOU KNOW THAT IN OUR FEBRUARY CONFERENCE IN WASHINGTON I STATED NOT ONLY THE SITUATIONS IN' TiHICH DESIRABLE INTEGRATIONS IN OREGON, CALIFORNIA, AND NEVADA HAD BEEN ADVERSELY ACTED UPON, BUT ALSO STATED THAT THERE WERE TWO EXISTING COMMITMENTS, ONE INVOLVING FORTY PER CENT STOCK CONTROL OF A BANK WHICH WOULD REQUIRE SIMILAR TREATMENT IN ORDER TO MAKE THE BOARD1 S PROGRAMTORKABLE,AND THAT IT WAS UNDERSTOOD THAT IF THESE MATERIALIZED THEY WERE TO BE INCLUDED IN THE INTEGRATION PROGRAM. WHEN I WAS NOT ASKED TO IDENTIFY THE BANKS, I ASSUMED THE BOARD REALIZED THAT BUSINESS CONFIDENCES WERE INVOLVED. I DO NOT VIOLATE BUSINESS CONFIDENCES. YOU KNOW TOO THAT THE CONFERENCE UNDERSTANDINGS WERE WRECKED LARGELY BECAUSE OF A SUBSEQUENT ATTEMPT TO BIND TRANSAMERICA ALONE TO YOUR SO-CALLED FREEZING POLICIES INSTEAD OF YOUR OBTAINING SIMILAR COMMITMENTS FROM OTHER HOLDING COMPANIES, WHICH YOU VOLUNTARILY AGREED TO UNDERTAKE PERSONALLY. I AM NOT CONCERNED WITH THREATS, WHICH I HAVE BEEN INFORMED HAVE BEEN MADE BY YOU, BUT YOUR INTRUSIVE ACTIVITIES IN TRANSACTIONS AFFECTING BANK OF AMERICA ARE HIGHLY DETRIMENTAL AND WILL BE VIGOROUSLY CHALLENGED. YOU ARE ADVISED THAT YOU WILL BE HELD ACCOUNTABLE FOR YOUR ACTS OUTSIDE THE SCOPE OF YOUR OFFICIAL DUTIES A. P. GIANNINI
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