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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE T O T H E FEDERAL RESERVE BOARD X—9578 November 29, 1935. SUBJECT: Expense, Main Lines, Leased Wire System, October, 1935. Dear Sir: Inclosed herewith you will find two mimeographed statements, X-9578-a and X-9378-b, covering in detail operations of the main lines of the Leased Wire System, during the month of October, 1955. Please credit the amount payable by your bank for your share of the expense of the Leased Wire System to the Federal Reserve Bank of Richmond in your daily statement of credits through the Gold Settlement Fund for the account of the Board of Governors of the Federal Reserve System, and advise the Federal Reserve Bank of Richmond by wire the amount and purpose of the credit. It will be noted that on X-9378-b there has been added to the total expenses to be prorated among the twelve Federal reserve banks 1963.57. This represents the total amount of three vouchers rendered to the Treasury Department covering telegrams sent during the months of July, August and September against the Treasury appropriation for miscellaneous and contingent expenses. Since April, 1925, the Board has sought reimbursement from the Treasury Department for the cost of telegrams sent for the account of this appropriation, but the Treasury has advised that it has been unsuccessful in obtaining the necessary appropriation to permit of reimbursement. The matter was taken up again in November, 1954, and the Board advised the Treasury at that time that it felt that the arrangement which had been in effect whereby the cost of the telegrams chargeable to the appropriation was absorbed by the Federal reserve banks was not a satisfactory one and should be discontinued as promptly as possible, and that, if it was felt desirable to have the telegrams handled by the Leased Wire System after July 1, 1955, every effort should be made to bring to the attention of the proper persons the necessity for the inclusion in the Treasury Department appropriation of an amount sufficient to permit reimbursement for the cost of the telegrams. Nothing further was heard from the Department regarding the matter and, beginning with the fiscal year 1936, vouchers were rendered covering the cost of the messages sent during the first three months of the fiscal year. When advice was received from the 392 X-9378 — 2— Treasury Department that funds had not been provided to cover the cost of the telegrams, the matter was the subject of further negotiation with the Department which resulted in the Board advising the Treasury Department under date of November 21, 1935, as follows: "It is understood that there has been included in the Treasury estimates of expenses for the fiscal year 1937 an amount sufficient to permit of reimbursement for the telegrams of the kind in question transmitted during that year and that the Treasury Department will do all that it can to have the item included in its appropriations . In view of these assurances and the inability of the Treasury to pay for telegrams transmitted prior to July 1, 1936, the Board will continue to handle such telegrams without reimbursement during the remainder of the fiscal year 1936 with the further understanding that if the appropriation referred to be not obtained the Treasury Department will make some other arrangement under which the Federal reserve banks will be relieved of this expense." The amount of $15,535.05 shown on form X-9378-b includes $323.26, the cost of handling such telegrams for the Treasury Department for the month of October. Very truly yours, 0. E. Foulk, Fiscal Agent Inclosures TO GOVERNORS OF ALL F. R. BANKS. X-9573-s REPORT SHOWING CLASSIFICATION AND NUMBER OF WORDS TRANSMITTED OVER MAIN LINES OF THE FEDERAL RESERVE LEASED WIRE SYSTEM FOR THE MONTH OF OCTOBER, 1935. Business reported by banks From Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total Words sent by New York chargeable to other F. R. Banks (l) 31,789 133,663 28,634 43,571 47,947 51,029 76,437 62,526 33,056 62,632 53,592 81.979 706,855 1,527 1,577 1,577 1,574 1,512 2,213 2,028 1,486 1,557 2,771 2.419 20,241 Board business Net Federal reserve bank business 33,316 133,663 30,211 45,148 49,521 52,541 78,650 64,554 34,542 64,189 56,363 34.398 727,096 322,848 Reimbursable business Incoming & Outgoing Total words transmitted over main lines ... ......... . Per cent of total bank business ( 4.58 18.38 4.15 6.21 6.81 7.23 10.82 8.88 4.75 8.83 7.75 11.61 100.00 1,049,944 571,748 1,621,692 (*) These percentages used in calculating the pro rata share of leased wire expense as shown on the accompanying statement, (X -9578-b) < (l) Number of words sent by New York to other F. R. Banks for their sole benefit charged to banks indicated in accordance with action taken at Governors' Conference November 2-4, 1925. CO 8 I X-9378-b REPORT OF EXPENSE MAIN LINES FEDERAL RESERVE LEASED WIRE SYSTEM, OCTOBER, 1935. Name of bank Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Board Total Operators1 Salaries Retirement Contributions Operators' overtime $ 260.00 $ 24.65 1,358.29 122.79 225.00 20.25 306.66 27.60 190.00 17.35 262.50 21.52 4,195.14(f) 336.84 195.00 17.43 199.98 17.10 287.00 25.83 251.00 22.34 380.00 32.03 — $8,110.57 - #685.73 Less Reimbursable Charges (&) (#) (*) (a) (b) Main line rental, Richmond-Washington Includes salaries of Washington operators Credit Amount reimbursable to Chicago See attached letter Wire rental Total expenses Pro rata share of total expenses $ - — — - $ 284.65 $ 755.64 1,481.08 3,032.45 245.25 684.69 334.26 1,024.56 230.00(6) 437.35 1,123.56 284.02 1,192.85 4,531.98 1,785.15 212.43 1,465.08 783.68 217.08 312.83 1,456.83 273.34 1,278.64 412.03 1,915.49 14.968.55 14.968.35 $15,198.35 $23,994.65 $16,498.62 - — — — — - — - — — 8,459.60 $15,535.05 Credits Payable to Board $ 284.65 $ 470.99 1,481.08 1,551.37 245.25 439.44 334.26 690.30 437.35 686.21 284.02 908.83 4,531.98 2,746.83(*) 212.43 1,252.65 217.08 566.60 312.83 1,144.00 273.34 1,005.30 412.03 1,503.46 — $9,026.30 $10,219.15 2.746.85(a) $7,472.32 965.57(b) $16,498.62 $
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