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FEDERAL RESERVE BOARD X-8028 WASHINGTON address official correspondence t o t h e federal reserve board September 28, 1934. Dear S i r : For your information t h e r e a r e a t t a c h e d a copy of a l e t t e r r e c e i v e d "by t h e Board from the A s s i s t a n t Federal Reserve Agent a t San F r a n c i s c o , dated September 13, 1934, and a copy of the Board's r e p l y . t h e r e t o , dated September 27, 1934, concerning t h e Board's p o l i c y w i t h r e s p e c t t o t h e issuance of general v o t i n g p e r m i t s . Very t r u l y y o u r s , L. P . Bethea, Assistant Secretary. Inclosures TO ALL FEDERAL RESERVE AGENTS. 161 X-8028-a FEDERAL RESERVE BAM OF SAH FRAHCISCO Soptember 13, 1934. Federal Reserve Board, Washington, D. C. A t t e n t i o n : Mr. Leo. E. P a u l g e r , Chief. Division of Examinations. Dear S i r s : We a r e beginning to r e c e i v e i n q u i r i e s from holding company a f f i l i a t e s as to whether or not permanent v o t i n g p e r mits w i l l be issued b e f o r e t h e forthcoming annual stockholders meetings. May we be advised as to the procedure which w i l l be followed i n t h i s r e s p e c t ? Will i t bo t h e p o l i c y to i s s u e p e r manent p e r m i t s , or w i l l i t be necessary t o again i s s u e s p e c i a l or temporary permits? t Yours v e r y t r u l y , (Signed) S. G. SARGENT A s s i s t a n t Federal Reserve Agent %.8028-t) September 27, 1934. SARGENT - SAN I M C I SCO Relet September 13. The Board d e s i r e s to i s s u e general voting; permits i n a l l cases where c u r r e n t simultaneous examinations of h o l d i n g company a f f i l i a t e s and t h e i r s u b s i d i a r i e s a r e a v a i l a b l e and i n d i c a t e cond i t i o n , management and r e l a t i o n s h i p s to j u s t i f y . As a c o n d i t i o n p r e c e - dent to the g r a n t i n g of general voting permits the Board r e q u i r e s holding company a f f i l i a t e s and t h e i r s u b s i d i a r y banks i n general to comply w i t h t h e same conditions as to the elimination of c r i t i c i z e d a s s e t s , c o r r e c t i o n s i n management p o l i c i e s and r e l a t i o n s h i p s as i f they were applying f o r and being admitted to membership i n t h e Federal Reserve System. I t i s expected t h a t a l l holding company a f f i l i a t e s which have complied w i t h t h e s e conditions w i l l be granted general v o t i n g permits during t h i s y e a r . In a l l other cases c o n s i d e r a t i o n w i l l be given to t h e i s s u a n c e of the necessary l i m i t e d permits u n t i l n e c e s s a r y c o r r e c t i o n s have been made by holding company a f f i l i a t e s and t h e i r s u b s i d i a r y banks or t h e r e l a t i o n s h i p s have boon terminated. In a l l cases where i t i s necessary f o r the stock owned by holding company a f f i l i a t e s to bo voted f o r s p e c i f i c purposes p r i o r to t h e issuance of general p e r m i t s , your o f f i c e should a d v i s e the Board of the d e t a i l s t h e r e o f , together with your recommendation i n t h e m a t t e r . BETHEA
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