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• • 133 < BOARD OF GOVERNORS OF" THE FEDERAL RESERVE SYSTEM WASHINGTON ADDRESS Df"f"ICIAL CORRESPONDENCE TD THE BDARD February 6, 1942 Dear Sir: Enclosed for your information and files are copies of a letter and a telegram which were addressed to two Federal Reserve Banks regarding the qnestion wiwther certain ttems were included in Group E in the Supplement to Regulation W. Very tru1y yow· s, Chester Morrill, Secretary. Enclosures ?. TO PRESIDENTS OF' ALL F:CD:E.'RAL RESE11VE 3iU!KS S-Jd7-a 134 February 6, 1942 Mr. , Vice President and Secreta:F~J, Federal Reserve Bank of - - - - - - - - - --------' Dear Mr. Reference is made to your letters of December 31 aP..i January 12 asking certain questions regarding GroupE in Regulation W. Your first question relates to screens, awnings and storm win·~ dows. You state that you believe that these articles should be jncluded in GroupE, and the Board agrees, because, although thoy are readily removable without damage to the building, they are made to fit a particular bullding and, as a general proposition, would not be suitable for use elsewhere without alteration. Th~ are, in effect, part of the building • . Your second question relates to electric signs, shelving, coun..... ters, and special lighting equipment used for business purposes. You state that you believe these items should not be included, and the Board agrees,· because they may be :removed without substantial damage and are usable elsewhere without material alteration. Needless to say, er:.y such items which require structural chnng0s for their installation, or which c;an not be removed without materially weakening or damaging the structure, would have to be classed as materials usod in connection with "alterations or i:nprovements" under Group E. In addition, you inquire as to prefabricated marquees, and express the opinion that they should be included under Group E. This, as you state, is a rather difficult question.. Normally, of course, a marquee is a part of the building to the same extent as the cornice or gutter, but if the marquees in question are designed and intended, like signs, to be installed and removed by the tenant, it would seem to be proper to classify them in the same manner as signs for the purpose o;f Regu.lation W. It is probably not possible to lay down mry general rule regarding prefabricated marquees, since there are probabJ:y some which are no less subst·antial or permanent than those in front of large hotels. Very truly yours, (Signed) Chester Morrill , Chester Morrill, Secretary. 135 S-437-b January 30, 1942 (Addressed to a Federal Reserve Bank) Re your telegram January 23, it is not necessal"J under G1·oup E that the contract relate to both materials and services. The contract muy be for materials alone or for services alone or for both combined. Regardinr; the second paragraph of your wire, the status of equipment as an ''alteration or improvement" under Group E wot.:.ld not be affected by aey agreement betweer.. the :andlo:cd and the tenant as to the right of the tenant t,o remove i t at the expir&tion of the lease but would depend upon the :·lature of the equipment. 'C'. ~u~gna ct\1 ChestfJr Morrill Morrill
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