Full text of Mimeograph Letters and Statements of the Board : Interpretation of Banking Act of 1933: Permit to Serve as Director in Corporation Not Engaged in Business of Buying or Selling Securities, Number X-7739, Volume 40, Page 1

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

i

I
X-7739

I1TTEBPHBTAII01T OF BANKING ACT OF 1933
(Copies to "be sent to all Federal Reserve Banks)
December 22, 1933
Sr.

Dear Sir:
Consideration has "been given to your application for permission, pursuant to Section 32 of the Banking Act of 1933, to serve
as a trustee of the

Trust Company of

and as a director of the

,

Corporation,

It appears that the
by the late Mr,

,

^Corporation was organized
for the purpose of making gifts to or

trusts for certain of his nephews and nieces; that he transferred
various stocks and "bonds to the Corporation and received therefor the
notes and stocks issued by the Corporation; that you and
Trust Company of

. .

now hold all of the outstanding notes and

stock of the Corporation in trust for certain nephews and nieces of
Mr.

; that the Corporation is empowered to "buy, hold and sell

propertyi including stocks and "bonds; that most of the securities now
owned by it represent the same properties as were transferred to it
upon its organization, since it has never "been its custom to make nany
changes in its investments; that it has purchased no securities whatever since May, 1925, except, on three occasions, United States
Treasury short-term certificates or notes, and except for exercising
its right, as stockholder, to subscribe to stock; and that, since



X-7739

- 2

September, 1926, it has sold no securities except one comparatively
small "block of stock which it had owned for many years, and except
certain "rights'1 received by it as stockholder in other corporations.
In view of the facts disclosed in your application, it appears that

Corporation is not a corporation "engaged

primarily in the business of purchasing, selling, or negotiating
securities'', within the meaning of Section 22 of the Banking Act of
1933; and that, therefore, no permit is required under the provisions
of that section covering your service as director of that Corporation
and as trustee of the




Trust Company of
Very truly yours,

(Signed) Chester Morrill
Chester Morrill,
Secretary.

.