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FEDERAL RESERVE BOARD 393 WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO T H E FEDERAL'RESERVE BOARD March 2 0 , 1 9 2 6 . S t . 4891 My d e a r C o n g r e s s m a n : D u r i n g t h e c o u r s e of t h e h e a r i n g on March 17 b e f o r e t h e Committee on Banking and C u r r e n c y on t h e b i l l t o a u t h o r i z e t h e c o n s t r u c t i o n of a b a n k i n g h o u s e f o r t h e B a l t i m o r e B r a n c h , t h e Committee a s k e d f o r c e r t a i n i n f o r m a t i o n r e g a r d i n g t h e c o s t of b u i l d i n g s a l r e a d y c o n s t r u c t e d , t h e p o l i c y of t h e F e d e r a l R e s e r v e Board w i t h r e f e r e n c e t o c h a r g e - o f f s and d e p r e c i a t i o n a l l o w a n c e s on b a n k p r e m i s e s , t h e c o s t of t h e F i s c a l Agency work h a n d l e d b y t h e F e d e r a l r e s e r v e b a n k s s e g r e g a t e d s o a s t o show t h e c o s t of t h e v a r i o u s o p e r a t i o n s , and t h e c o s t of o p e r a t i n g t h e T r a n s i t and T r a n s f e r of Funds d e p a r t m e n t s . I n c o m p l i a n c e w i t h t h i s r e q u e s t I am e n c l o s i n g h e r e w i t h a p a m p h l e t s h o w i n g t h e " D i r e c t o r s , P e r s o n n e l , Bank P r o m i s e s , e t c . " of e a c h F e d e r a l r e s e r v e b a n k , b r a n c h , and a g e n c y , w h i c h was p r e p a r e d i n J a n u a r y of t h i s y e a r . T h i s p a m p h l e t shows t h e c o s t of t h e l a n d , b u i l d i n g s , v a u l t s , and v a u l t e q u i p m e n t , f i x e d m a c h i n e r y and e q u i p m e n t , and f u r n i t u r e and e q u i p m e n t s e p a r a t e l y f o r e a c h F e d e r a l r e s e r v e b a n k a n d b r a n c h , t o g e t h e r w i t h c h a r g e - o f f s and d e p r e c i a t i o n a l l o w a n c e s t h e r o o n , and I t r u s t g i v e s t h e i n f o r m a t i o n d e s i r e d r e g a r d i n g t h e c o s t of b a n k p r e m i s e s and of f u r n i t u r e and e q u i p m e n t a t t h e F e d e r a l r e s e r v e banks. I should l i k e t o c a l l your a t t e n t i o n t o t h e f a c t t h a t t h e s e p a r a t e f i g u r e s shown a s t h e c o s t of t h e b u i l d i n g s and of f i x e d machi n e r y and e q u i p m e n t r e p r e s e n t t h e d i v i s i o n b e t w e e n t h e t w o i t e m s s e t up b y t h e Board f o r d e p r e c i a t i o n a l l o w a n c e p u r p o s e s , t h e d e p r e c i a t i o n o b v i o u s l y b e i n g much l e s s on a b u i l d i n g t h a n on f i x e d m a c h i n e r y and e q u i p m e n t s u c h a s b o i l e r s , e n g i n e s , dynamos, e l e v a t o r s , h e a t i n g , p l u m b i n g and l i g h t i n g s y s t e m s , r e f r i g e r a t i o n p l a n t s , e t c . , w h i c h w e a r o u t i n a r e l a t i v e l y b r i e f p e r i o d a s compared w i t h t h e l i f e of t h e b u i l d i n g . The B o a r d ' s p o l i c y i n a u t h o r i z i n g d e p r e c i a t i o n a l l o w a n c e s and c h a r g e - o f f s on b a n k p r e m i s e s i s shown i n t h e e n c l o s e d e x t r a c t f r o m i t s 1922 a n n u a l r e p o r t , f r o m w h i c h you w i l l n o t e t h a t t h e d e p r e c i a t i o n a l l o w a n c e on b u i l d i n g s d o e s n o t e x c e e d 2 p e r c e n t , u n l e s s t h e r e p l a c e m e n t c o s t of t h e b u i l d i n g i s b e l o w i t s book v a l u e , w h i l e on f i x e d m a c h i n e r y and equipment t h e maximum a l l o w a n c e i s 10 p e r c e n t . 394 2 *• Thar 3 have boon only f o u r F e d e r a l r e s e r v e b r a n c h b u i l d i n g s e r e c t o d s i n c e t h o p a s s a g e of t h e Act of Juno 3, 1922, a s amended by t h e Act of F e b r u a r y 6, 1923, l i m i t i n g t h e c o s t of b u i l d i n g s e r e c t e d f o r F e d e r a l r e s e r v e b r a n c h e s , e x c l u s i v e of t h e c o s t of v a u l t s , permanent equipment* f u r n i s h i n g s and f i x t u r e s • Of t h e s e b u i l d i n g s , t h e c o n t r a c t p r i c e s of t h e b u i l d i n g s p r o p e r of t h e Denver, Omaha, and L i t t l e Rock b r a n c h e s were a? f o l l o w s : Denver $ 2 5 0 , 8 6 3 , Omaha # 2 3 0 , 2 2 7 , and L i t t l e Rock $ 2 2 0 , 6 5 9 . The t o t a l c o s t of t h e b u i l d i n g a t J a c k s o n v i l l e i n c l u d i n g v a u l t and permanent equipment was only $ 2 3 6 , 4 9 9 , or l e s s t h a n t h e §250,000' maximum s e t up by C o n g r e s s f o r t h e b u i l d i n g p r o p e r . I am a l s o s e n d i n g you a s t a t e m e n t r e g a r d i n g t h e F i s c a l Agency work h a n d l e d by t h e F e d e r a l r e s e r v e b a n k s , whicn shows r e i m b u r s a b l e and n o n - r e i m b u r s a b l e e x p e n s e s f r o m 1917 t o t h o end of 1925, and a s t a t e m e n t showing t h e c o s t of o p e r a t i n g t h e T r a n s i t and C o l l e c t i o n d e p a r t m e n t s and t h e c o s t of e f f e c t i n g T r a n s f e r s of F u n d s . This l e t t e r t o g e t h e r w i t h t h e e n c l o s u r e s r e f e r r e d t o h e r e i n i s b e i n g s e n t t o e a c h member of t h e Committee on Banking and C u r r e n c y . I n c a s e t h e d a t a e n c l o s e d a r e n o t s u f f i c i e n t l y c o m p l e t e f o r t h e Comm i t t e e *s p u r p o s e s , I s h a l l be g l a d t o have such a d d i t i o n a l d a t a p r e p a r e d a s may b e d e s i r e d . Very t r u l y y o u r s , Geo• R. James, Member, F e d e r a l R e s e r v e B o a r d . Enclosures. (TO ALL MEMBERS OF HOUSE COMMITTED ON BANKING AND CURRENCY)
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