Full text of Mimeograph Letters and Statements of the Board : Letter From Asst. Secretary Bethea re Clayton Act - "Lawfully Serving" on Date of Enactment of Banking Act of 1935, Number X-9318, Volume 43, Page 208

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308
BOARD OF G O V E R N O R S
OF THE

FEDERAL RESERVE SYSTEM
W A S H I N G T O N

X-9318

September 16, 1935

A D D R E S S OFFICIAL C O R R E S P O N D E N C E
TO T H E BOARD

Sub j ec t: Clayton Act - "lawfully serving" on
date of enactment of Banking Act of
1935.

Dear Sir:
As you know, section 8 of the Clayton Antitrust Act as •
amended by section 329 of the Banking Act of 1955 contains the
following provision:
"Until February 1, 1939, nothing in this section
shall prohibit any director, officer, or employee of
any member bank, of the Federal Reserve System, or any
branch thereof, who is lawfully serving at the same time
as a private banker or as a director, officer, or employee of any other bank, banking association, savings
bank, or trust company, or any branch thereof, on the
date of enactment of the Banking Act of 1935, from continuing such service."
The Board's attention has bdeti called to a case where on
August 23, 1935, the date of the enactment of the -Banking Act of
1955, a person was serving, under a permit issued by the Board,
two banks coming within the provisions of the Clayton Act and also
was serving a third bank which at that time came within the prohibitions of the Clayton Act.

At the time of the granting of the

permit, the service of the third bank was not prohibited by the




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Clayton Act and the service of such bank was not covered by the
permit issued by the Board.

After careful consideration of

these circumstances it was the view of the Board that the person
was "lawfully serving" the two banks covered by the Board's permit in the capacities named in that permit on the date of the
enactment of the Banking Act of 1935, and, therefore, under the
provision of the Clayton Act, as amended by the Banking Act of
1935 quoted above, could continue such service until February 1, .
1939.

The Board's decision in this matter is called to your at-

tention for your information in the event that cases involving similar circumstances come to your attention. It will be understood,
of course, that in any case where the service of a bank which is
not covered by the permit issued by the Board is prohibited under
the Clayton Act, as amended by the Banking Act of 1935, the service
of such bank must be terminated.
Very truly yours,

Assistant Secretary

TO ALL FEDERAL RESERVE AGENTS