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56 X-678 To be released for the Morning papers., January 27 1 1918. STATEMENT FOR THE PRESS. It was learned today that the Capital Issues Conmi ttee of the Federal Reserve Board has ~ompleted the ~raft of its gen~ral plans of. organization. In Washinb~on, in addition t~ the three rrembers of the Federal Reserve Board whose nan.es have heretofore been announced 1 there will be an Advisory C~~ttee, consisting of Mr. Allen B. Forbes, senior partner of the finr. of Harris, Forbes 8- Company 1 New York City; Mr. F. H. Goff~ I President of the Cleveland Trust Company 1 Cleve1f•nd.., Ohio; and Mr. Henry Mo. C. Flower .. President of the Fidelity Trust Corr.pany 1 Knnsas City, ;,,~~ ':<."'. Mr. Forbes will act as Cha.inr.an of the Advisory Corr.rr.ittee. The C~sel of the Corrmittee will be Mr. Bradley W. Palmer,of the finm of Storey., Thcrndike, Palu:er & Dodge, Boston. Mr. Stephen L. Selden, at present identified with the Aircraft Board, will be the Executive Secretary of the Comnittee,, in which capacity he will be assisted by Mr. James Q. Newton, of Denver., Colorado. services without compensation. All these have offered their The Advisory Com:nittee will have an office with the Federal Reserve Board in the Treasury Building and the staff of the comm:i.tt.ee will be located in the Metropolitan Bank Bulldj.ng~ opposite tbe Treasury Building. The Capital Issues Coillllj.ttee will organize at each of the twelve 4 Federal Reserve Banke 1 local comnittees fof the purpose of furnishing to the Committee such additional information and recorr.mendations as the Beard may require in dealing with cases originating in the respective X-678 57 .., 2- districts. These local coii.Uiittees will consist of tho Chairman of the Board and the Governor of the respective Federal Reserve Ea.nks and three &clditiODal members, particularly equipped by banking or business experience, to se·rve with these ex-officio officers of the bank; in .addition the Board will approve a list of na.n:es of experts and pr~ent c·itizens in those localities who may be called in as substitutes or additional advisers for sueb local c~ttees, whenever required. The Committee does not expect to deal with cases t~ching railroad financing, but it will give advice with respect to the sale of securities involving rmnici.pal, public utility and :'mdu.strial The Comnittee will act in a n::a.nner similar to tha·~ Unanc~ng. of the capital Issues " COll'lr;j.ttee in London, which exercises its influenc/3 roly.:'.:lg upon voluntary cooperation on the part of tha banks, bankers, and business rr.en of the cO\Ul.try. For the ti~ being, the Committee does not contemplate pass- ing upon individUal issues of securities aggregating less than $500,000, in the case of industrial and public utility corporations, and $250,000, in the case of m1nicipali ties; nor upon securitie.s havtng a naturity of iess than one year. This does not rr.ean that for se:aller amounts the Ccmnittee does not desire the cooperation of all concerned. Indeed 1 it :i.s considered imperative that a policy of avoiding appropriations for unessent!al expenditures be adopted by all witli the most scrupulous care.. ,,.... fhe Comndttee bOJ!s, in due course 1 it will ·be able to devise ways and me~a to deal. also With transactions of smaller scope. 58 ·X~'78 - 3- It is distinctly 11nderstood that~:the ComrJ.ttee will not pa.ss ·• ' upon the. intrinsic u:erits of of < ' whe~her cases, but only upon the question indi~Jidunl or not the objects for which money is to be raised and spent ' are '6sssntial to and COILpatible with ths national welfare at this tirr.e. It is the Committee's desire that applications be addressed ) to ~t'at << Washington. From there, if.necessary, they will be transmitted \ for further local :i,nvestigation to the respective districts. • There is no dcnlabt that pending < ~· possible action by Congress the /J Committee can count upon the heartiest cooperation of all of the country askJ.ng for its advice .. l/26/lS concern~a. As
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