Full text of Records of the Federal Reserve System, Record Group 82 : Adjustments Between FR Banks, Kansas City & Dallas Account Changes in Boundaries of FR Districts, Box 274, Folder 6

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Kansas
122.6-3 - Adjustments between FRBanks,
unt changes in
City & Dallas acco
Boundaries of FRDistricts

•

1.7-1

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Federal Reserve Bank of St. Louis

4110

Form 40

•

FEDERAL RESERVE BOARD
WASHINGTON

laimary ago 19190
Miller
Governor ?ederal Reserve Bank,
Kansas City, o.
Board has rIprove4 sottionent referrod to

OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE
FEDERAL RESERVE BOARD
2-7729

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Federal Reserve Bank of St. Louis

c
ee_ 11),310
tvo written you Wag.

BOAiiD f1L.•

441i
•

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Ilreaatrg pepartnieut
IVIECEIVID

19P0 MO 52 Govt
11V

KANSAS CITY MO

an 23 1917

JAN 2 3 1917
GOVERNOR'S OFFICE

Gov Ra,rding Federal Reserve Board
Washing ton

Has or will board approve the settlement with the Dallas bank
with reference to) dividends to Southern Oklahoma Banks copy of
which was sent you in our letter of January,. thirteenth (period)
We are waiting on your approval before making paymen* of said
dividends

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Federal Reserve Bank of St. Louis

Miller

Governor
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•

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Federal Reserve Bank of St. Louis

Jaai-aary 23, 1917.

J. Z. Miller, Jr.,
Governor federal T3sorve Bank,
Kansas Oity, Lo.
Dear Governor fillershave your letter of. Janary 15th and am very 2/ad Lc)
learn that the A)deral Reserve il.anks of insas City and INalas
hve finally reacheJ. an ii,- res:rs.nt in the tlattor of the ac.
:
cumulated dividends due the =umbor banks that were transferred
fron the Dallas to the :Kansas City district.
The agreeriont sicxed iz trirlicate which

ou enclosed in

your letter has bean approved by the 7edera1 'Reserve Board,
and will be 4cpt in the Board's files unless you wish it returned to you.
Very truly yours,

Governor.

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Federal Reserve Bank of St. Louis

/1.

Jalltlar.7

23, 1917.

2. R. L. Vat' Zar,dt,
Governor federal :Reserve i-Iank,
Deal as 'exas
L'esr ',;overr..or 'van ZandtsI :AV° yoar letter or January 16th from which I zam
very :_aat to loamn that the ?edere.1 iItatlerve 3lco of
Dallas and/xi:113as

ity have finally reached

:
ik-,rogatZer

In the :aa.ttor of the aeourn3.ated IIi1d.en1e (Ile the rembor
banks'

:;:aat were tran:Vorroa from the Dallas to the .K.ansas

CItutlj3trjCt.
Very trai,y yours,

aovernor.

FEDERAL RESERVE BANK OF KANSAS CITY
TENTH DISTRICT

January lfi 1917*
:

JAN1 81917
ccvottiows orr

Honorabio L.P. G. Harding,
Governor, Federal Reserve Board,
Washinc,ton, D. C.
Dear Governor Harding:

You will be pleased to learn that an aKreement has been reached
between the Dallas bank and ourselves with reference to the dividend
liability to the southern Oklahoma banks transferred from the Eleventh
to the Tenth District, as of Juno 30: 1915.

The terns were along the

lines set out inour letter to you of December 28th, and which we understand from Governor Van Zandt has your approval and that of the Board.
While we realize that under the terms of this settlement most, if
not all, of the burden of paying these dividends will fall upon the
Federal Reserve Bank of Kansas City we are of the opinion that the
:
principle adopted is equitable under all the circumstances, and we are
much pleased to settle the controversy.
We have requested the Dallas bank to prepare and forward to us a
certified statement of the dividends due to each of the banks, which
we will immediately pay when your Board has approved the agreement,
copy of which is enclosed herein.
Yours very truly,

Governor.
•

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ete re-tt,i,'

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Federal Reserve Bank of St. Louis

•

In ordJr to facilitate the .
,.):Lannt of ,zaocrue, ,
:
to ',Lcsr :012ber
,

mre, by order of the Federal

t—nsferred fro2a the Elavo-t11 to the 2cth Federal
1 t,

,",1.e 30, 1915, -Cie Federal Reserve Ilan': of ::ar.sLs C.
1

and the'Fede,
-al Reserve Bank of Dallas have, throuji their re::Lective rirovernors, entered into the following agree!:.ent:
First.

ho 17C.erL.1 7eserve 7 .-2;1: of Kans%s ;d•-ty will a-1-

su-:e ani will proceed forthwith to 9ay

Cue -2-1_1 :Lccrued

to the tr'tr-IThrred banks, from rove:aler 2, 1914, or wabsezent date
11,
of capital stook pv'npntf:, , to
Second.
Bank of D

1,
1

ncluing June 30, 1915.

r,he earnings and. e::penses of the Federal Reserve
.
)1-ior to July 1, 1915, sh.,11 be adjusted along the

-lines set out below, the cloulr,tions for which shall be made by an
accountant from the office of the Federal Reserve Board, and such
accountant shall render a statement of the result of his calculations
to each of the parties to this agreement.
nether' of ,diu-tment
(a) A st%t;_ent ohall h0 made
-hewint: the percentage which the average ag:regate paid in oaPital stock subscriptions of the transferred banks bears to the average
2.1id in caitL..1 stock of the Federal Reserve 3:_nk of Dallas
for the period november 16, 1914, to June 30, 1915, inclusive.
(b) A statement shall be made ul) sho,
7ing the percentage which the averaL, aggregate reserve deposits of the
transferred banks bears to the averaL:e aggregate reserve de-

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Federal Reserve Bank of St. Louis

IIP

posits of all member banks with the Foderl Reserve Bank of
Dallas for the perio,_ Yovember 16, 1914, to June 30, 1915, 'inclusive.
(c) The two percentaes obtained, as above shall be
added together anti divided by two, and the result shall be
the ex.
.2ense percentage to be used below.
(d) A statement shall be made u2 from the books of
the Federal Reserve Bank of Dz.-11as showing the ao-regate total
of its organization and current expenses up to and including
A
June 30, 191 5, which expense shall not include the cost of
unissued Federal Reserve Totes nor the unearned Premiums on
bonds and insurance policies or any descrirt ion.
(e) The oxpenso fercentace (see Paragraph (c)) of the
total shown on the last above mentioned statement shall be the
amount to be considered as "Proportionate Expense" in this adjustment.
(f) A statement shall be made up from the books of the
Federal 'Reserve Bank of Dallas showing a total of the gross
revenue received on account of rediscounts by the FederE-1 Reserve Bank of Dallas for the transferred banks, and from this
total shall be deducted the unearned discount turned over to
the Federal Reserve Bank Of Kansas City, and there shall also
be deducted any unearned discount which may have been rebated
to the transferred banks on rediscounts taken up before maturity, and, the rel:rainder shall be the amount to be consilered
as "Gross Revenue" in this adjustment.
(0) If the "Gross Revenue" shown on Statement (f) is
in excess of the "Proportionate Exrense" shown on Statement
(e) the amount of such excess shall be paid by the Federal
Reserve Bank of Dallas to the Federal Reserve Bank of Kansas
Z.OVIDI) that any e:.:ce S above r.n amount necessary to
pay the accrued dividends to the transferred banks, as set
forth in Section One of this agreement, shall be retained by
said Federal Reserve Bank of Dallas.
(h) If the "Gross Revenue" shown on Statement (f) does
not exceed the "Proportionate Exense" shown on Statement (e)
then no further adjustment shall be made and the matter shall
be considered as finally closed.
Third.

This agreement to be subject to the aTroval of the

Federal Reserve Boord.

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Federal Reserve Bank of St. Louis

•

.
S

—3—
Tied in tr ipl ic ate, this the

day of January,

1917
FEDEILIZ

:c:3-7.1avE 732,:a

OF KAIT1A3 C ITY,

igned in triplicate, this the

_ day of January,

1917

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Federal Reserve Bank of St. Louis

Tvri-ri7r

By _
(love rnor

FEDERAL RESERVE BANK
OF DALLAS

R. L. VAN ZANDT, GOVERNOR
J. W. HOOPES. VICE-GOVERNOR
LYNN P. TALLEY. CASHIER
SAM R. LAWDER. ASST. CASHIER

January 16, 1917.

IRECEIVED

JAN 19 1917
GOVERNOR'S OFFICS
Hon. W. P. G. Harding, Governor,
Federal Reserve Board,
Washington, D. C.
My dear Governor Harding:
Appreciating your anxiety to have some method worked
out whereby Federal Reserve exchange may be made immediately
available at any Federal Reserve Bank, I thought you might be
interested in the enclosed letter just received from one of
our member banks.
I also take pleasure in advising you that the Federal
Reserve Banks of Dallas and Kansas City have entered into an
agreement whereby the member banks transferred from this to
the Kansas City district will not be further delayed in receiving the accumulated dividend due them up to June 30, 1915. Our
Auditing Department is engaged in calculating the amount of
dividend due each one of the transferred banks, and Governor
Miller advises me that the dividend will be paid as soon as he
receives this data.
With personal regards, I am,
Yours very truly,

Enc.
VZ-RS

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Federal Reserve Bank of St. Louis

O. A.

ut
is
LE, CASHIER.
EAVER,AssT.CASHIER.

T. N. HICKMAN. PRES
•

BEN 0. SMITH, VICE PRES
C. M. BROWN, VICE PaEs
•

ECITIZ.E N SNATIONAL BANK

CAPITAL &SURPLUS

65,000.00

NO.7140

GA_LRLAN D,TEXAS ,
1/13/16.
Mr R.L.VanZandt,Governor,
Federal Reserve Bank,
Dallas, Tex.
ear

Sir :
Your

Annual Report Of Operations for the year just closed has

been received and read over with care. I want to congratulate you, the
other officials of

your bank,and especially acknowledge the material assist-

ance you have been to

. The feature alone of being permitted to carry

reserve requirements there,over and above actual daily needs based upon local
experienoe,largely,if not altogether,offsets the non—interest paying feature
of Federal Reserve

deposits,and leaves the enormous advantages otherwise

gained a clear profit.
Might I express a hope that
any Federal Reserve Banks may be

drafts on funds with

made immediately available when cleared

through any other Reserve Bank,even though it necessitated wire ccnfirmation
at expense of drawing member bank?

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Federal Reserve Bank of St. Louis

Very Truly Yours
President.

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Federal Reserve Bank of St. Louis

January 13, 1917.

Vim. H. )onahuo,
Vice President, Oklahoma National Bark,
Ghickatha, Okla.

dear sir:
Referring to your letter of December 5 relative
,

to the question of dividends on your Federal reserve bank
stock, I am instructed to advise you that the points at
issue betwetin

e Federal floserve 3an1o of Dallas

n1 Kan-

sas City respectively, have now been practically adjusted,
and that you will very shortly be informed of the outcome,
which I trust will be to your sati sfaction.
P.espeotfull

Secretary.

•

FE41061_ RESERVE BOARD 1.ILE

FEDERAL RESERVE BANK
OF DALLAS

W.F. RAMSEY,
FEDERAL RESERVE AGENT
W.B.NEWSOME,
DEPUTY FEDERAL RESERVE AGENT
CHAS.C. HALL,
.T
AS S TO FEDERAL RESERVE AGENT

January

, 1917.

Mr. H. Parker Willis, Secretary,
Federal ieserve Board,
Washington, D. C.
Dear Mr. Willis:I have received yours of the segagAjinclosing a letter from Lr. Wm. H. Donahue, Vice President of the Oklahoma
National Bank of Chickasha, Oklahoma, with respect to dividends due to banks transferred from the Dallas to the Kansas
City District.
I have delayed answering tnis letter until the pending negotiations for the settlement of 'this matter had been
absolutely concluded between ourselves and the .ansas City
bank. Several days ago we accepted a proposition of Governor
Miller in set lement of the matter and in furtherance of the
proposition have sent him an agreement duly signed by Governor Van Zandt of our bank.
We have not heard from him about the matter though
I assume the matter will be settled. Tne matter h-,s been very
annoying and it is certainly very embarrassing to us to feel
tnat the payent of these dividends, confessedly due, is neld
up by the action of tne two banks interested.
I am inclosing a copy of letter I am to-day writing
Mr. Donahue.
Very truly yours,
Yj
c
R/T.
,Encl.

Federal Reserve Agent.
(JP1P/C/i/
;
1)P‘

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Federal Reserve Bank of St. Louis

1•;
'1) / /1

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Federal Reserve Bank of St. Louis

•

Janunry1, 1917.
Mr. Wm. A. Donahue, Vice President,
Oklahoma Nntional Banz4
Chicggsha, Oklahoma.
:Doar Li..
Bonrd has sent me your lottur
Tho
hth In rospect to divi—
to them of dnto Documbor
donde duo the Oklahoma Bank, origiaally attachod to the Dal—
las District tInd ltor transforrod to the Inns.s City District.
:
You undoubtedly haVo a right to fuel that Ciis I. atter
be adlustod rind the dividends duo you paid. "Both the
rhoula
Knsas,'City lank. nnd the Dnllas Bank rocornize the justice of
your demands but unfortunately have not borotofore been able
to very definitely agree upon the source from which the divi—
donts duo should be paid.
/ am glad to ndviso, however, that we have come to a
conclusion IA the controversy with to Federal Rosorve Bank
of —ansas City, having witliin the ant Arm dnys accepted a
proposition made hy thom and there should be but sligit zlelny
in receiving tho dividonds duo you.
Very truli 7oors,
R/T
Foddcal Roservo vont.

•

I
:
FEDERAL RESERVE BANK OF KANSAS CITY
t
1.
Y'I1
Er

)
,
,
H r ST R I

3\Y0 vriLE

JANUARY
13th,
1 9 1 7

Hon. F. A. Delano,
FEDo]RAL I-2]Si;;RVE BOARD,
Washington, D. C.
Dear Mr. Delano: We have finally come to an understanding with the Federal
Reserve Bank of Dallas, with regard to the dividends due the Oklahoma
member banks transferred from the Dallas to the Kansas City District,
which agreement will be, of course, submitted formally to the Board
as soon as properly signed.
We are, of course, glad to get this
adjusted and trust that you will approve of the action taken.
Briefly, the basis of the agreement is, that the proportion of
the capital held by the Oklahoma banks in the Dallas District to the
capital of the Dallas Bank will be ascertained; the proportion aP the
reserve deposits of tte same banks to the total reserve deposits
ascertained; the two percentages added together and divided by two,
which will be used as a percentage to ascertain the part of the
organization and current expenses of the Dallas Bank up to the time of
transfer.
The gross revenue received by the Dallas Bank from the
transferred banks during the time they were members of that District
will be ascertained, and, if this revenue exceeds the proportion of
the expenses properly chargeable to the transferred banks, the Dallas
Bank will pay t:!'e dividends, retaining the excess of these earnings.
On the other hand, if these earnings do not equal the percentage of
expense, the Kansas City Bank will assume the difference.
Very truly yours,
CMS-U

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Federal Reserve Bank of St. Louis

Chairman, Board of Directors.

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Federal Reserve Bank of St. Louis

.
Ct
January 12, 2917.

'Jog; Sent to

Akaoral .7t:eservo Agents

Irt. J. ;;., illøz, Jr.,
Governor Alieral Reserve Bank,
1:aasas C;Ity,
Dear Governor Aller:I have your letter,of_the 8th instant ,enclosing caw of letter
addressed by yOut to the lovernor of the lederal

eservo Bank of Dallas

with reference to accrued dividends due to the 3outhern oklahoLla
banks Istich Imre transferred to your distriot.
The Boari is 11120 in receipt of a telei".wa dated the 9th instant
fron Governor Van narlit, outlining a plan of settlement, and lulderstands that a copy of tilo saue vas also sent you.
krter oansiderin

the 'dole natter

ain, thZ Board is Drepared

to ar,prove either the arrarzozient su,zested by you in your letter
above referred to, or that outlined by aoverner Van Zandt, in his
telegram of the 9th.
It is sillcorelty

opod that this ratter will now be pronptly ad-

justed between your bank and the Beira of -*Iles*
,
,
,
Very truly :, w4rff,

5overnor.

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Federal Reserve Bank of St. Louis

r•

;
•

,t.i„

•
-

,
ttr

tc .
.;opy sent to
?ederal Reserve

ent.

January 12, 1917.

liar. R. L. 'Ian 7,an1t,
overnor :;*oderal Rea:Jur/a Pmmk,
Dallas
exas.
Dear Governor Van :landt:have your

toio4ramo or

the 9th • anti 11th instants, klaid confirm
.•
.•
••

ny to1e;m1 to you of ;Testerdw, as follow
/I
"Dowd is Drapared to approve arrangement saci;ested
your teleram ninth or that s.17;eated. b7
his
letter of uichth.
9
This action ;7asta2 aS't,or the 5oard had oonsidered the *hole
matter
4ain, and it in txxnoway hoped that the quostion rou now he prompt
ly adjusted betveen your

kand the ;camas City Bank, as there ap-

nears to be no further difficulty in the ?my of a settle
rent.
Very truly yours,

,.1o7ern...
-1Drit•

Form VP
41)

•

FEDERAL RESERVE BOARD
WASH IN GTON

January 11, 1917.

Van zandt
Governor Pederal Reserve Bank
Dallas, Texas.
Board is prepared to approve arrangement suggested your telegram ninth or
that suggested by Miller his letter of eighth.
Harding.

OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE FEDERAL RESERVE BOARD

2-7729
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Federal Reserve Bank of St. Louis

l'reasuril
):n

Hg ill

Harding

collect govt

Gov

fed Res

pepartment

fr 4)allas 2ex Jan 9
Board
Washn DC

Your letter faurth\inst recd
we still insist Newyork Philadelphia
plan only equitable basis but in interest of harmoney will
agree to 1Liller plan with
following provisions First amount of
unearned interest on unmatured rediscounts transferred which we paid over
to ::snsascity shall be deducted
from gross revenue first mentioned
in last paragraph Liner communication
Second that accountant from Federal
Reserve Board shall make computation in order to avoid future
controversy Third that Federal reserve
Board shall approve settlement Fourth
that if a ;proved Eansascity shall
forthwith pay accrued dividends and
adjust on accountants figure's when obtained stop Please advise by
wire
Vanzandt Govr

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Federal Reserve Bank of St. Louis

230p

IfitittaIMED

JAN 9 1917

c:ovraidicies um=

•

•Treasnrg

epartment

13P011G

Harding

ovr Fed

collect govt
fr

Dallas, Tex

.an

es Board
Washn DC

Telegram recd sent Liner copy
my telegram ninth instant and
+
he accepts provisions subject approval his directors meeting today stop
Have prepared for signature agreement
along those lines stop this
office will make necessary calculations
which need only be verified
by Feederal Reserve accountant at
time of next examination stop
board a_rove answer
Will
Vanzandt Govr
136p
136p

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Federal Reserve Bank of St. Louis

7:aceiverb
.JAN 11 1917

GOVERNOR'S OM=

Form 40

•
•

•

FEDERAL RESERVE BOARD
WAS

4 11

zz.

-3

January 11, 1917.
Van gandt,
7
Governor , edera1 Reserve Bonk,
'
:alias, Taxa°.

Eeferrino to your tolegram of' 14211,is in view of small amount in question and
the deeirabilitg of en immediate settlement, would it not be well to accept
Governor Liller's suggestion of settlenent, on equal basis, your bank to p47
one half and his bank one htaf, as referred to in his letter to you dated
January eighth.

Governor.

OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE FEDERAL RESERVE BOARD

2-7729
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Federal Reserve Bank of St. Louis

AA's,
•

•

FEDERAL RESERVE BANK OF KANSAS CITY

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Federal Reserve Bank of St. Louis

-r EN TH DISTRICT
2
1
•

January 8, 1917.

/lace:Win)
JAN 1 I
191?
i4ovgk
ivoli's
Honorable W. P. G. Harding,
Governor, Federal Reserve Board,
Washington, D. C.
Dear Governor Harding:
I wish to acknowledge the receipt of your communication
of the 4th instant

regarding dividend liability to the

southern Oklahoma banks transferred to our district from the
Dallas district.
We, too, are very anxious to dispose of this question, and,
looking to that end, we are to-day addressing a letter to Mr.
R. L. Van Zandt, Governor of the Federal Reserve Bank of Dallas,
a copy of which is enclosed herein.
We hope to receive the personal approval of Governor Van
Zandt before the meeting of our board of directors on Thursday,
the 11th instant, in which case it will be my purpose to recommend a settlement on the basis set forth.
Yours very truly,

Governor.

•

FEDERAL RESERVE BANK OF KANSAS CITY

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Federal Reserve Bank of St. Louis

TENTH DISTRICT

January 8, 1917.

Lir. R. L. Van Zandt,
Governor, Federal Reserve Bank,
Dallas, Texas.
Dear Governor Van Zandt:
Referring to previous correspondence in regard to accrued
dividends due to the southern Oklahoma banks which were transferred to our district:
We are extremely anxious to have this matter cleared up,
and as it appears that our views, up to this time, have been
at such wide variance, and as the Federal Reserve Board does
not seem disposed to suggest or direct a settlement, I am
going to personally offer the following suggestion. You will
please understand that I have not been authorized to make this
suggestion, and it must not be considered in any way as binding upon this bank:
There is no precedent for us to follow, and the conditions
under which adjustments have been made between other Federal
reserve banks in cases of transfers see not essentially analasous to conditions in our case; and, without attempting any
further argument, my suggestion is that the Federal Reserve
Bank of Dallas and the Federal Reserve Bank of Kansas City
assume the payment of the accrued dividend in question on an
equal basis; that is, your bank to pay one-half and this bank
one-half.
If this suggestion meets with your personal approval, and
you will agree to recommend its adoption to your board of directors, and will wire me to this effect upon receipt of this
letter, I shall be glad to recommend this basis of settlement to
our board of directors at their meeting next Thursday.
Awaiting your advice, and with kind personal regards,
believe me,
Sincerely,

(lined) J. Z. MILLER,JR.

Governor.

LFEDL .,. RESERVE $0l)

:t.

Copy sent to
?ederal Deserve Agent.

alialry 4, 1917.

LI.. J. Z. laller, Jr*,
:eservo Bank,
lovernor
Ramses City, 5,
.(20.
Dear Sir:
Your likt_tfir.OLIAK)ember ::.3th on the subject of accrued dividends
due to transfored maw banks hos been received and duly considered*
"ha Board izas aloe received a letter rrmm lovornor Van ::andt on the sere
subjects 00fri of which is onolosed for yorx Ln:ormation.
The Loard reL7oto tha, your bank aril the --'oderal nezerve Bank of
,7
Dallas have been =ale an yet to determine upot a mutualk, satisfaotory
basis or adjustment.
he smount involved., eteprozeirateky ;4,530., is
relatively snail ana tho assumption of tho whole or a part of the accrual an1 unpaid divide:Ids i
stion ahould not oribarrass either ?edleral Reserve Tlank.
1a 3o3d has already outlined its pooition in tho
premises and has mazested that the two b1'.n4s enter into an ,11.3roott.. ent
,
to adjust this matter on au equitable basis, as has been done in other
inetancon.
The settlanenta 1:ade by other l'ederal Reser* 5anks have
apparently not been idential in caleh case, but ham varied to some extent
accordin, to the particular equities involved. In the proaant cape. as
s
will note Cram the enclosed letter, the C'eavernor of the '.7
.you
oleral Po
serve DaWac of allas feels that tho major portion or these dividends should
be assumed by your bamk1 because you will have the use or the funds of the
:Tamber bunks involvea at a tirJe when you are in a better position to earn
the accrued dividends*
The Board hopes Lliat you ulll take Into consideration all the points
involved, with a view to arriving at an crescent mhich will dispose of
the ratter upon an equitable basis.
It is earnestly hoped that this v111
be done in the intonate future, in order that the Interests of the transferred banks NKr be proper1y protected*
Very truly your3,

'3overner.
(=locum)

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Federal Reserve Bank of St. Louis

4-11

\FED

L ELL2VE BOARD FILE

tai;
Copy vent to
•-Pederal P.everve Acent,

January 4, 1S17.

Wr.
Governor 1:eilcral 1:ccervii Bank,
Deilr

Loulattera_o_4t2k...
spi 193th. on
duo14 traLcrorred :LsOber hamks have
- considered.
The BoAce..!iK a1ao rece.ved tro:tt
on tiia siUme 0400ti copy of 011161t 1a =clotted

tho sabject of accrued
bowl recolvqd
Goviirmx ',111e1.' a let:ter
1:or your 1n.Corgiat4ort.

Vas li,Jard revets that your bank and the :eederel Iteservo zienk %If
L:ATe 1406U CaJ,1110 us 2,41t
aetomiN4 upon a 1..vaLual1w
kaotor$ .
040i8
41,4jaetwente
T4e mount ihvolved, appro45. ebt1Y .: , 3
.
1
i 4 L Ose
1E; rointivoly Eauun ake, t.o .t,esuriptiot of the: 3holo or
pszt of the accrued and. =pad divide:4a i Abotion ahoulei not Cw.bkirriAS0 itir :)ekioral
•,
(.0erve
7711,i.) .04.11ria 1.74.t;
ou3. it pozitio).
ti:e
and iosa evkaAttitc..' tii4t your bt
Lite .c`.anoki.0 J1.4 4 bank elitel' lilt° Zak
4
,
ai- Tece_ent to actust .1f; ..:atLar or az. ec,:uitt.:61-a
kaa bon: done in
other instif.Lco4,
.11A AOLt101AUlts 1.414o h7.7 other 2orierA1
havou31.
r.tieita n44W. c4., cc, 1,41t 1417e vilrlol to ;vt oxtent, accordibc to the
ti1
ctUU
involvea.
in +a:A) Iv011f: zr.se it v.tanIc
that tia:+ ;:ixiverrior o t
er
F4ink of mv.tees 11,14 feel ttag.t
your bazA shoal txtru4so t1. %bolo O aorg part of triost:di iieia, beiutace
4
it (A,40,17*: It 3. tIt t Ls.part of itr• eizertince
vse 01 the nnuis of
ti*
Lar...i'va in question
y'7%ero trv...,nnferrr!d to t1,
01
City distrtc:t.
zaote ttO , rovertior
:
letter, he is 4Ppare:qtlyoplaacri t4 Vat tr.:a-a:fez-red tanlat oont.ri*tmteol to the *raninse of ‘c.,1.r LPt, not neraly 3eca'aso your bank had the use of the cash
paid tAZa0rirt!olls 4;1:1 :lepoolto of tile ner batko, hat btioi4JEo ttto
Lank rediacounted to a oo1,316.ers.b1e t3xtzt with yoar bulk berore the trans'
.
fer.
The 5oaro.. Eopet.,
rcy.,1 iNt11 ts into eousilloxyatiort t.I.1 the z/ointe
involved, wir.o. a view to arrivi. at an a.i..reement which will dispose of the
matter on an equitable betas.
it is earzleetly hTypod Oat this ',4i11 be done
Au te .14:mediate illture in order that the intereate of the transferred banks
.Tat 4 be properly protected.
-

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Federal Reserve Bank of St. Louis

Very truly youro,

levernor•
ncloeure,

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Federal Reserve Bank of St. Louis

(
1
/

t
Januar7 2, 191G,

Zr. Wm. H. Donahue, Vice President,
The Oklahoma ::ational Bank,
Chickasha, Okla.
Dear Jir:In reply to your letter of December 28th,
stating that you have not received any dividend fror
your stock in a Federal Reserve Ban) and that you
have never received a reply to your letter addressed
to the Board under date of December 5th, you are
advised that your letter of the 5th wan not received
at this office.
Your letter of the z8th has been fomarded
to the Pederal Reserve Bank of Dallas for investigation.
Very truly yours,

Jeoretary.

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Federal Reserve Bank of St. Louis

I FL

)?AL RESERVE BOAHD
FtLii
/1

January 2, 1917.

Yx. W. F. Ramsey,
Federal Reserve Agent,
Dallas, Texas.
Dear Jir:Thm.e is enclosed heravith a letter from
the Oklahoma National Bahk,of Ghiekasha, Oklahora,
stating that no dividend has been received by that
bank through holding stock in a Federal Reserve Bank.
pillIpou be good enough to rerly to the
letter, sondinp; a copy of the reply to the Board
for its files.
Very truly yours,

Jecrotary.

•

FEDERAL RESERVE BANK
OF DALLAS
R. L. VAN ZANDT. GOVERNOR
J. W. HOOPES. VICE-GOVERNOR
LYNN P. TALLEY. CASHIER
SAM R. LAWDER. ASST. CASHIER

0_1.6

=MAO S,i4ON0474 OisN

4161

December 30, 1916.

Hon. W. P. G. Harding,
Governor, Federal Reserve Board,
Washington, D. C.
My dear Governor Harding:
.
On the tweillz-sixth instaSaI addressed a communication/
to Governor Miller, of the Federal Reserve Bank of -77heriir.1.a—My,
and foraarded you a copy of same. This morning's mail brings
his reply (copy of which is enclosed), from which it is noted
that his ideas of equity do not coincide with those of the Federal Reserve Board nor of those of the Federal Reserve Banks of
New York, Philadelphia, Atlanta and Dallas.
He gives me no information as to the plan of adjustment which he has submitted to the Federal Reserve Board; therefore, our directors will not be able to consider same at their
January meeting, which is to be held on the fourth proximo. As
the Kansas City directors' meeting will not be held until the
eleventh of January, it is evident that their action can not be
considered by our board until some time in February, and final
adjustment might be thereby indefinitely delayed.
We are just as anxious to get this matter speedily,
amicably, and equitably adjusted, as is the Federal Reserve
Board, and will Appreciate its instructions as to what further
steps to take to bring about that adjustment.
Of course, to us, the most satisfactory arrangement
which could be made would be that of a re-transfer to the
Eleventh District of the one hundred and twenty-one affected
banks and the assumption by the Federal Reserve Bank of Dallas
of the accrued dividends due those banks, less their pro rata
part of the Kansas City net earnings while they were in that
district
With assurances of our desire to cooperate with the Federal Reserve Board in this and in all other
matters, I am,
Yours very truly,
Eno.
VZ2.3

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Federal Reserve Bank of St. Louis

e
Goveior.

r?,

•
COPY
Xansas City, December 26, 1916.

:Ir. R. L. Van Zandt,
Governor, Federal Reserve Bank of Dallas,
Dallas, Texas.
Dear Governor Van Zandt:
This will ac- nowledge the receipt of your connunication
A
of the 26th instant, referring to the dividend liability to the
southern Oklahoma banks, enclosing for our signature memorandum
of agreement prepared by you.
We feel obliged to return unsizned the memorandum,
since it does not conform to our idea of an equitable basis of
settlement. 'le have made copy of the memorandum as submitted
by you for the purpose of submitting same to our board of directors at its next meeting, January 11th.

Meanwhile, we have, in

response to the letter of the h?th instant, written by Governor
Harding, submitted to him a plan of adjustment which we bolieve
will be voreved by the Board and acceptable to you.

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Federal Reserve Bank of St. Louis

With kind regards, believe me,
Sincerely,
(Signed)

J. Z. LIILLTR, Jr.
Governor.

•

FEDERAL RESERVE BANK OF KANSAS CITY
TENTH

Dis-rFncy

December 28, 1915.

qacniver)
JAIN 2 i:31.7
Honorable W. P. G. Harding,
Governor, Federal Reserve Board,
Washington, D. C.
Dear Governor Harding:
This will acknowledge the receipt of your communication of the
j
.
39th instant iregarding the dividend liability to the-southern
Oklahoma banks transferred from the Eleventh District July 1, 1915,
to the Tenth District. From the information at hand, we estimate
the amount of these dividends at about v1,500.00.
We are of the opinion that, both legally and equitably, the transferred banks are entitled to receive the same dividends as other banks
remaining in their original districts; and we agree with you that the
question of liability for these dividends stiould be adjusted on a basis
equitable and fair to both the Dallas and the Kansas City banks. We do
not, however, agree that the basis outlined in your letter would be quite
fair to the Kansas City bank, as it would place the burden of these dividends almost entirely upon us.
It should be remembered that the capital and reserves of the transferred banks were paid in at a time, and remained with the Dallas bank
during the period (November 2, 1914, to June 30, 1915.) when they were
most beneficial and profitable, and we understand they were used by the
Dallas bank to the full extent of their value; whereas, since the time,
July 1, 1915, the capital and reserves were transferred to us, we have
had no opportunity to use them, as, by coincidence, the change in the
financial condition of the country occurred about the time of this transfer, and has so remained.
It occurs to us that the organization expenses of the Dallas bank
were not substantially increased, nor were ours materially less by reason of the southern Oklahoma banks being originally included in the
Eleventh District; while on the other hand, the Dallas bank must have
received considerable revenue on account of Bills Discounted for these
banks during the time they were members of its district,- doubtless an
amount in excess of the dividends to which they are entitled,for the
period in question, even after making due allowance for a relative
proportion of operating expenses.
With a view of arriving at a speedy and equitable adjustment of the
existing dividend liability along practical lines, we suggest the following basis of settlement:

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Federal Reserve Bank of St. Louis

-2

The Dallas bank to make up a statement showing the average
paid-in capital subscriptions of the banks affected for period
November 16, 1914, to June 30, 1915, using aggregate figures to
arrive at the proportion this amount boars to the average amount
of the aggregate paid-in capital stock of the Federal Reserv
e
Bank of Dallas for the period in question.
It will also take the average aggregate reserve deposits
of the banks affected and determine what proportion this amount
bears to the average aggregate reserve deposits of all member
banks for the period in question.
After having determined the
above percentages, they shall be added and divided by two,
to
get the basis upon which the proportionate relations of
banks
shall be determined.
figures shall then be compiled showing its organization
expenses, together with its operating expenses up to June 30,
1915. It will then be determined what proportion of these
expenses shall be chargeable to the banks transferred on the
basis of their proportionate relations as above determined.
It will then compile figures showing the gross revenue
received on rediscounts made for the banks transferred;
and
if such gross revenues are in excess of those banks'
proportion of expenses, then such excess shall apply
toward the
liquidation of the accrued dividends due those
member banks
for the period up to June 30, 1915, and the Federa
l Reserve
Bank of Kansas City shall assume liability for
the difference
between the excess and the total amount due.
If this excess
is found to be sufficient to liquidate the
dividends, or
should be in excess thereof, then the Federal
Reserve Bank of
Dallas will pay them and retain any excess.
If it should be
found that the proportion of revenue is less
than the gross
expenses referred to, then the Federal Reserv
e Bank of Kansas
City would assume the entire dividend
liability for the period.
Respectfully yours,

Governor.

FEDERAL RESERVE BANK
OF DALLAS

R. L. VAN ZANDT, GOVERNOR
J. W. HOOPES, VICE-GOVERNOR
LYNN P. TALLEY, CASHIER
SAM R LAWDER, ASST. CASHIER

tRaGeihildre
December 26, 1916.

DEC 2 91916
GOVERNOR'S OFirPM

Hon. 7. P. G. Harding,
Governor, Federal Reserve Board,
Vlashington, D. 0.
My dear Governor Hardin6;
I am just in receipt of your letter of the_15thn t.2*.
\
relative to the accrued dividends due theli=d-riansferred from
the Eleventh to the Tenth District.
I have prepared an a.eement along the lines recommended by you, and, after sio- ing same, have fon-tarded it to Govi
ernor Miller, requesting him to si6n and fcrward it to you.
A copy of my letter to Governor Miller and a copy of the
agreement are enclosed herewith for your information.
In the event Governor Miller forwards you the completed
agreement, will you kindly ask Mr. Broderick to furnish us with
the necessary data?
I think he has already me the calculation
and has the data in his files, but, if not, he can maize it at the
time of his next visit to Dallas, which in all probability will
be in the near future.
Trusting that the New Year will be both pleasant and
profitable to you, I am,
Yours very truly,

e,
VZ-RS

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Federal Reserve Bank of St. Louis

Gayer

Deoember 26, 1916.

. 3. Z. Hiller, Jr.,.Governor,
Federal Reserve Bic of Kansas City,
N4nsas City, Mo.
Dear Governor
I am just in receipt of a letter from Governor Harding,
of the Federal Reserve Board, under date of December 19th, a
copy of which is owlosed herewith and is self-explanatory. As
I told you, we are exceedingly anxious to get this matter closed
up at the earliest possible moment, particularly in view of the
fact that I was under the impression that it had been closed
long before z.ou became Governor of the Federal Re3erve Bank.
I have prepared a very brief agreement which conforms
to the reoommendations of the Federal Reserve Board and to the
verbal agreement 'thich I had with Governor sawyer and Cashier
Thralls, and am enclosing three copies of same, all signed by
me as Governor of this bank.
In the interest of harmony and the furtherance of
that spirit of cooperation which should always be present between Federal Reserve Banks in order to make the System A success, I will appreciate it if you will sign these oopies, return one to me, ana forward ono to the Federal Reserve Board
with a. request that ?Ir. I3roderick furnish us with the required
data at his earliest convenience.
Trusting that you will dive this your immediate attention, and with best wishes for a Happy and Prosperous New Year,
lam,
Very cordially yours,

Eno.
VZ-ES

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Federal Reserve Bank of St. Louis

Governor.

December 26, 1916.

In conformity with the recommendation of the Federal
Reserve Board as set forth in its letter of December 19, 1916,
IT IS HEREBY AGREED, That the Federal Reserve Bank of
mac City will assume the payment of accrued dividends to
hose banks which wens, by order of the Federal Reserve Board,
transferred from the Eleventh. District to the Tenth District
on June 30, 1915.
IT 13 FURTHER AGREED, That the Federal Reserve Bank
of Dallas uill pay to the Federal Reserve Bank of Kansas City
such portion of the net earnings of the Federal Reserve Bank
of Dallas as the Federal Reserve Bank of Kansas City may be
entitled to under the application of the so-called ”New YorkPhiladelphia Plant', which amount shall be ascertained by the
Division of Audit and Examination of the Federal Reserve Board,
'Mach payment shall be made immediately upon receipt of advice
of amount from the Chief of said Division.

FEDITEUIL RESERVE BANK OF KANSAS CITY,
By
Governor.

FEDERAL IESEICtrE BAIE OF DALLAS,
By
Governor.

Signed in triplicate: one copy for each of the banks
interested and one copy for the Federal Reserve Board.

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Federal Reserve Bank of St. Louis

•

FEDERAL RESERVE BANK OF KANIAS CITY
1-- Errrii

DISTRICT

DECEMBER 22nd,
1 9 1 6

;)
DEC 26 1916
Hon. F. A. Delano,
FEDERAL RESERVE BOARD,
Washington, D. C.

OFFICE OF
MR.DELANO

Dear Mr. Delano: In the correspondence with your Board and with this Bank
with regard to the liability for dividends upon the stock held by the
banks of Oklahoma which were transferred from the Dallas District to
this District July 1st, 1915, prior to the date of transfer, Governor
Van Zandt has taken the position that this matter was to be determined
along the same lines as agreed upon between the Philadelphia and t;ew
York Federal leserve Banks in the matter of the transfer of certain
member banks from one of those Districts to the other, while I have
contended that it was agreed between us at the time of the transfer
that the liability for this dividend should be determined at some
future date by the Federal Reserve Board.
I have no doubt that Governor Van Zandt has acted in good
. faith in making this contention but he is proved to have been wrong by
the communication sent to the transferred banks under date of June 23rd,
1915, which was simned by him and by myself as Governors of the two
Banks, in which the following paragraph occurs:

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Federal Reserve Bank of St. Louis

"The question as to whether the Federal Reserve
Bank of Kansas City or the Federal Reserve Bank of Dallas
should assume liability for accrued dividends to member ban'xs
from date of organization to July 1st, 1915, has not yet been

determined by the Federal Reserve Board.
The Board will
later decide which of the Federal Reserve Banks should
assume liability, and will then authorize such Federal
Reserve Bank to issue the accrued dividend certificates."
I am giving you this information so that I may be set right
with you and the other members of the Board upon this proposition and
that the records may show correctly.
Very truly yours,
CMS-U

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Federal Reserve Bank of St. Louis

Chairman, Board of Directors.

FEDERAL RESERVE BANK
F DALLAS

timscenim

W.F. RAMS EY,
FEDERAL

RESERVE AGENT

W. B.NEWSOME
DEPUTY FEDERAL RESERVE AGENT

CHAS. C. HALL ,
AS S'T TO FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

DEC 2 9 1916
opricepecember

26, 1916.

P. G. herding, Governor,
.iederal Reserve Board,
Washington, D. C.
My dear . r. Harding:
I received a copy of your letter of the 19th
instant to Governor Van 4andt, touching the -jettiement
between our Bank and i'ansas City, and am very much gratified
at the conclusion at which the Board has arrived. I think
there can be no doubt of its fairness, and my opinion has
been, since I looked into it, that it is authorized, if not
indeed compelled, by a fair construction of the Federal Reserve
Law.
Governor Van Zandt is today writing Governor Tiller
of the :ansas uity _Dank, enclosing him an agreement covering
the settlement as outlined in your letter, and I assume will
send you a copy of his communication to Governor liller.
:
I have been in no - rise connected with this matter except to
counsel with Governor van Zandt, and as far as it was proper
give him the support I tilought he was entitled to in the
settlement of the controversy.
i don't know from any correspondence or conversation
with Governor Idller what his feeling about the matter is, but
I rather suspect that he feels pretty strongly on the question.
It seems to me important for all of us that the controversy
should be settled as early as practicable. The banks in Oklahoma which were transferred from this district have, as I
understand, received the impression that we owed them these
dividends, and their failure to receive any satisfactory
response from us has no doubt left them in a frame of mind
toward us far from amiable. Just what ought to be done 1 am
not prepared to say, but it seems to me that it might be well
for the Federal lieserve Board to advise and urge upon Governor
Mier and Governor Van Zandt--who doesn't need any urging-that the matter be promptly settled upon the lines finally
determined.
Very truly your//
Federal Reserve' Agent.

•

--xlceeber 19, 1916.

Yr. J. 2. Filler, Jr.,
Governor 'edera1 Reserve :lank,
4
ieeineas
Dear 1.Ji.1°:Tho Board haa J.ven further consideration to the question of accrued dividends dee to the nember banks transferred from the Denies to
the :':aneas City district.
It seena that all parties are cereed that both lite:Ally and equitably
the transferred banks aro entitled to receive the same dividends as
other banks remaininz; in their original districts.
The .F.'ederal enerve
Act failed to specifically provide for this continc:encry ard it is natural
that there :should be a difference of opinion on the question of which
bank should asaame the payment of dividends aecrued up to the date of
transfer.
This ,electIml was considered by eounsel for the Board in an
opiniOn dated Deceeiber 20, 1915, and publiahed in the Bulletin for
atereary 1916.
es between the eaeiber bunk and the '.7ederal Reserve Bank it ceezne
clear :'rom a purely legal standpoint that the nether hank could not assort it claim egainzt the 7:4)derai Reuerve 1a
ce." Zensue City for dividends (i. G., interest at 0) on its cash-paid subscript ion except from
the date 14e:re which it beeeee
etockholdee in t'aut leeek, hut as the
traneferred banks are entitled to the sere dividends as other member
bens, the tvo i!'eacral Reserve 3an:es should eaaeo provizioe by voluntary
ammtlent for the assu!ption and paynent of these accrued dividends on
an equitable basis.
Viewires the rztter from ae equitable standpoint
it would seem to be proper to apportion these dividends between the two
be on a bards etlidh mull take into consideration the earnings derived from the cash eaid in subscription and deposits of the rember banks
before and after their trenefor, that is to wey, if the Tederal Reeervo
Bank of Kansas A.ty is to assune the payment of accrued dividends the
"..?ederal Reeerve Bank of 'Dallas should pay to the !loodieral reserve Bunk of
Kansas City any part of its earninue which r.143.t have been available as
dividends to the transferred banks before tha data of transfer. There
is force In the meeeestion rade that the Oh-peld sebaeriptions and
deposite of neriber banks were held by the Federal Reserve Bank of Dallas
durinG a period. fatten provision had to be made :or organization and
current expenses and rthon it did not have an opportunity to earn any
considerable profit by the investment of its available funds, and that
the :-?ederal Reserve Bank of Kansas City will have the use of these
cash-paid subscriptions and deposits during a period Ithen such funds

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Federal Reserve Bank of St. Louis

IIII21111

car.. more readily be utilized to enrn the accrued dividends. Under
those ciraanotanees it would sotx that the ':iederal Reserve Banks
involved my ana dhould reasonably entor into an a,700nixlt to protect the interest of the rionber bsnlal transferred, hrmin„: duo re
of course, to the ri7hte and equities of the other partial).
:,c3 those dlviden2s are cumulative the payment of those due
to the transferred batiks by either the ?edoral Reserve Bank of %ansas
city or the 1;'odora1 Reserve Bank of Dallas would not materially affect or prejudice the 1141ts of other stockholders =a cs the earn.
Ines over and above ezpensos and dividends are paid to the 'Jutted
:tatos as a franchise tax the interest of the Unitod Jtatos would
not be matorially affected if the payment is made by either bank.
As a claim against a ?sclera Reserve Bank as a corporation
would proN).b3z have V.) be asserted in a court of competent jurisdiction it is hardly within the power of the Board to require either
'Yedera Reserve Bank to pay the claim involved in this case.
In the
opinion of the Board, however, it should not be necessary for the
mardber hulks to have to recort to the eourtn mad the Board fully
understands that the directors o.7 the lietilwathRveett&Csatiar share
.
this view.
The Board therefore recorarands that the v'ederal Reserve Bans=
enter into an agreement to adjust this natter alone equitable lines
and in order that there way be uniformilu in the several districts
it sumiests that the plan follolied by the 710ders1 Reserve Banks of
Now York:end
(ald by ether banks Where this question has
arisen, be adontod.

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Federal Reserve Bank of St. Louis

Very truly yours,

Governor.

•

oecrabor 19, 1916.

4374

Lo Van rAndt,
Governor Pederal Reserve Dank,
Dallas, Texas•

Me Board has ,:31.vo21 further consideration to the question of accrued dividends due to the noraber 1=ks transferred from ti:o
to
11
the l','=sas
distriat•
It aeons that al pi
t both lel1r Essecjitabi
-ext.lor) txre :'..Loreed
,
the transferred banks are entitled to receive the sale dividemis as
other brake remaininr" th their cri;352.Ia1 dictricts•
,,*:essrve
7ho
,lot failed to sper:dt7ica11y provide for this ,:ontin.ardcv Ulla it is natural
that there should be
diffe7.-.z.ze of opir_lon on V-..e c2ie13tion of which
Inzlk should assume the rarnent of divideale &tamed Iv to ti-x3 dato of
tranoror• "h5,3 /11;o:sti,o ei wns consiacred 7,7ye ,!oir2z3o1 for the loard in Ern
.
opinion datati 'Awl-bar ZO, 1915„ and nublishad in the riulletir for
amuny
;3'110
between the I xrfber
:erierve
it eens
clear from a purely lef:al stamipoint tlr-t the raraber bank could not assort its clnin scr.instt
of X,:s.trEfftit for divllends (1. e0, intermt at 6) on its cash-paid subscription we.cept from
the date) upon which it beeano a etock,:islozr Th th-,t bank, but cwa the
tr.:I:Inferred banks are entitlel to the 13,94:10 dividenas as other raccber
banks, the two :?ederel Renorys
1thatad rorrovicion by voluntary
agreeront 'or the arum:I-Aim C21./.1 pliant. of Ifilet.lo accraed dividendas on
an oquitfible basis. 714-)winJ U,e matter froman ocuitable standpoint
It would neo::. to be proper to apportion these dividends between the two
bar;:z on a basis whioh would talc() into consideration to earni73 derivoci fron tir cash Tia10. in subscription and dolocits of tho racrber bonks
before and after ',heir transfer, that is to say, 12 ths Federal 2eserse
Beat% of :rzaasas :it is to avstvie the pa;yr:ent of acortu3d divideuls the
:caldera Emerge Ban% of Dallas should peg to the ..lod,era 3,eserve Bank of
7.anaae aty any
of its earnings which nijit hcz.ve bean available as
diviclezxls to the transOarred be.nkz before the date of transfer. 'Imre
Is force In the 5kzestion node that tbe
wasoriptions and
deposits of rember ban
were held by the 7ederal Reserve Bank of Dallas
ciurin; a period when provision bad to be :lade "3W7 orcanization and
current expenses cnd
n it aid not have an opportuni4f to earn any
.
cons'derablo profit b:7 the investment of its available fua2s, cind that
the .'eaorra Reserve
of :,:ans.4.9 it will have the use of those
ecloheNT:14id subscriptions and deposits durinc a period Ilhen oadh Dando

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Federal Reserve Bank of St. Louis

7A;•7
-56k
,A:,
`1

-2..

can nore roadily be utilized to earn the accrued dividends. Under
those circtostanceo it - ou1d semL that the ]lederal Reserve Banks
6
involved riliy an/ ahould roaoonably enter into an agreement to protect the interest of thc meMbor banks trmsferred, havinc due re.J.Ard, of couraul to the rijitc zaid exities of thu other parties.
Ai th:::se (1!;,72.1erz1s are clrlulativo the .
x.,tynont Of those ue
to the trataforred bank by either the ?odors,' Reserve Bnalk of r,unsaci
erthe Jeleral Reserve Buz* of Dallsm would not materially atfoot or prejudice the rk.Ats of other stockholders and as the earn14 over and above er:pances and dividends are paid to the Ur.ted
-7,s
3tates as a :rate:his° tax the interest of the United :Itatoooulti
not be materially affected If tae paymant is rade by either banea.

As re aa1.1 czjainst a Yearal Reserve Bank as a corDoratiot
%Iould probably have to be asserted in a court of competent jurisdiction it is bardZy within tha power or tho Board to require either
7
edoral Reserve Bank to ngy the clal!'_a involvod in thin case. In the
opinion of the Board., however, it rillould :act be necos=ry for the
mobor bmnks to balm to resort to the courts and the Board fully
mIderstands that the &tractors of the 7edersa 4 oserve Bz4;,:s eharo
7
this view.
The Board therefore recounerds that the :;'edoral Reserve Banks
,
otter into :2, n 43regzant to adSust this matter alozks oquitablo lines
,
.
and in Order that there ney be uniformity in the several districts
it sum'ests that the plan followed by the ?edoral Reservo Banks of
New York and Philadelphia, and by other banks where thiu question
has arisen, be aaaptedt

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Federal Reserve Bank of St. Louis

very truly yours,

lovernor.

EDERAL RES.L-WiE Er:s'r.'n L..-

4
1
1

FEDERAL RESERVE BANK
OF DALLAS

W. F. RAMS E Y,
FEDERAL RESERVE AGENT
MBMEWSOME.
DEPUTY FEDERAL RESERVE AGENT
CHAS.0 HALL
ASEYT TO FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

December 11, 1916.
Yr. H. Parker Mills, Secretary,
Federal Reserve Board,
Washington, D. C.
Dciar Dir:I beg to acknowledge receipt of yours of the
21,111.
4 2in2inclosing lettir from :1.:77777 7711 tr7
- -Prei="177 77e Park iTaqlBank of Sulphur, Oklahoma, as well as Iettorittrdm the Federal Reserve Bank
of Kansas Cit7an3 your own letter to r."7:iite of :ocomber sevonth,3al1 of which, as requested, I am here-

,
, T177777771177.
I am to-day writir4 Er. While, as per carbon
,
copy of letter enclosed.
Immediately upon the return of Governor Van
Zandt, this Latter, will receive prompt and satisfactory attention.
In this connection, I may further add that it
is contemplated that our, Board of Director r will meet
on the twentieth instant, at which time action'will be
taken in reference to the recent letter touching this
matter received from Governor Harding.
Very truly yours,
RZT.
zncl.
Chairman

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Federal Reserve Bank of St. Louis

De""ber 11, 1916.
Tr. C. G. White, President,
park National Bank,
Sulphur, OkThhe ma.
Dear Sir:—
I am to—dny in receipt of a letter fran the
Secretary Gf the Federal Poserve Berrd at '7ashington
inclooing your letter to the 7oard of lete :Tovenber
twenty—eighth With ether correspondence touching the
cublect of your letter.
I an writing to say that Governor Van Zandt
of this bank 16 at this tine absent and will not re—
turn for something like a week. Immediately upon his
return, the matter will be taken up with him end will
receive due attention and you will iier from us more
definitely.
Thre sh(r7ad be no .gltention about the payment
to eon of the tlividends deo you and our action will,
of couree, follow the counsel and direction of the Fed—
eral Reserve Board.
Very truly yours,

Federel Reserve Agent.

'••••••

PON•

_• _ _ • _ _
December 8, 1916.

F. Eamsey,
Federal Reserve agent,
Dalian, ?exas.

Dear
There is enclosed file of correspondenoe
with Mr. C. G. White, President, rillyht04itinal
Sulphur, Oklahoma, and the Federal Eeserve Bank of
Kansas City rel&,tive to dividends due to the Park
National Bank.
Wibl you please examine it and take the
matter up with Ur. "late, returning the file of
correspondence with a copy of your letter to him?
Very truly yours,

Secretary.

R,t1,

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Federal Reserve Bank of St. Louis

.6111.1...,•

December 7, 1916.

LT.r. C. G. 7hite, President,
The Park Uational Bank,
Sulphur, Oklahoma.
Dear 3ir:Your letter of rovember 28th

previously

acknowledged, relative to dividends from your iedarta Reserve bank, was referred to the Federal Eeserve Bank of Kansan City and re are today in receipt
of a reply, copy of which is atohod.
you for your information.
Very truly yours,

! ecretary.
-I

This is sent

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Federal Reserve Bank of St. Louis

•

No. 9938

,L\
h,\(f(),

3ANtii
(();yA, 141,

LA-Muli.Aturon
CAPITAL AND SURPLUS 5130,000Qo
W..1 H. DON AH U E. ACTIVE VICE PRES!
F. T. CHANDLER, 0Astitell.

FI.K .WOOTTEN,FRE

Dr Nu

,
EY, VICE-PRES
W. H.
,
GEO.W.,..AREFOOT,V,ec PFtEST

Chickasha Okla. December 5th 191E

Federal Reserve Board,
Washington, D. C.
Gentlemen This bank is located in that portion of Oklahoma
which was detached from the Dallas Federal Reserve District
Up to
No. 11 and added to Kansas City District No. 10.
paid by
the time of this transfer no dividends had been
Since that time both banks have made
either bank.
initial and secondary payments of cumulative dividends, the
Dallas Bank ignoring the banks transferred to the Kansas
City district, claiming that such transfer properly entitled
them to participate in the earnings of the Kansas City bank,
and the Kansas City bank in turn contending that these banks
should participate in the cumulative earnings of the Dallas
Meantime
Bank for the period up to the time of transfer.
the member banks in this district are debarred of profits
on their Federal Reserve Bank stock justly due them and the
We
use of money to which they are by law entitled.
to you, and
understand that this matter has been referred
being desirous of computing our Federal Reserve bank dividends
as a portion of our 1916 annual profits, we are addressing you,
asking the present status of the matter and soliciting determination
of the case in sufficient time that such disbursement may be made.
Will you please be kind enough to advise?
Very truly yours,

Vice-President.

NO. 9938

The Oklahoma National Bank
CHICKASHA, OKLA.
mimeesaro

Official Statement (Condensed) to the Comptroller of Currency at the close of business on

NOVEMBER 17, 1916
RESOURCES
Loans and Discounts
Overdrafts
U. S. Bonds
Federal Reserve Bank Stock
Furniture and Fixtures
Redemption Fund
State Bonds and Warrants _ _
Cash .and Sight Exchange
Total

$917,797.91
10,426.66
25,000.00
3,900.00
5,000.00
1,250.00
___$ 31,319.94
363,764.22

395,084.16
$1.358,458.73

LIABILITIES
$100,000.00
Capital Stock
30,000.00
Surplus
22,572.22
Undivided Profits, net
24,600.00
Circulation
1,181,286.51
Deposits
$1,358,458.73
Total
The above statement is correct.
Wm. H. DONAHUE, Vice President.
Attest—F. T. CHANDLER, Cashier
The Management of this Bank thanks its Customers for their Support which is evidenced in our con.
tinued growth in Deposits, and welcome; the account of Anyone desiring Satisfactory Bank Service
There is nothing in Safe, Courteous Banking that we cannot perform.

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Federal Reserve Bank of St. Louis

•

N o 9938

finfg6

TILE

DIRECTORS
WM. H. DONAHUE

R. K. WOOTTEN

011114 Allif D.:U.k'
N

NATIONAL BANK

.1,11.4.M.NTre/T

G. W.BAREFOOT
W.H. GILKEY

_9
CAPITAL & SURPLUS S130,0000
A. SCHUMER

W.S. CORBIN
C. SCHLOTTERBECK

OATLEY ANDERSON

J. C. AMBRISTER

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Federal Reserve Bank of St. Louis

R. K .WOOTTEN,PRE,DENT
WM. H. DONAHUE
T IV E VIC E •PR ES T

W H GILKEY, VCFPRCS
GLOW. BAREFOOT,Nhcc•PRada

(7,1111GICASCIA

F. T. CHANDLER
CA5H IE

EWELL M.SLAUGHTER.AsE:r CASH
C. B. TURNER, Ass'r CASH,FR

FEDERAL RESERVE BANK OF KANSAS CITY

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Federal Reserve Bank of St. Louis

MENTH

DIs1PICT

December 4, 1916.

Mr. H. Parker Willis,
Secretary, Federal Reserve Board,
Washingto.
a, D. C.
Peb.r

Willis:

We are in receipt of your commuhicatian of the
1st instant, enclosing letter from the Park National
Bank of Sulphur, Oklahoma, which is returned herewith,
complaining that it is still without dividends on its
investment in the stock of the Federal Reserve Bank.
You are advised that on November 23rd, in answer
to a letter from the Park National Bank of Sulphur, we
wrote it calling attentior to the fact that this bank
had paid two dividends covering the period from November 2, 1914 to June 30, 1915, during which it was a
member and stockholder of the Federal Reserve Bank of
Dallas. We also advised the L;ulphur bank that the
question of liability to the southern Oklahoma banks
for the above mentioned period had been submitted to
the Federal Reserve Board, and that as far as we were
advised the Dallas bank was liable for the dividend.
Since we wrote President White fully on the subject on the date mentioned above, we do not deem it
necessary to write him again, as in all probability
his letter to the Board was the result of our letter
to him.
Sincerely,

7L-c-----

_.----

Governor. 1 "
'1:.°)
z>.:?.-fl ...i ----- •'

\ --

•'
Nyi-titisq) ,/'

DEC

--67.--.--1.:;1''

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Federal Reserve Bank of St. Louis

December 1, 1916.

Mr. C. G. White, President,
Park National Bank,
Sulphur, Oklahoma.
Dear Sir:Your letter of November 28th, stating that you
have as yet received no dividend by reason of your holding
stock in a Federal Reserve bank and referring to your transfer from the Federal Reserve District of Dallas to that of
Kansas City, is received.
The Federal Reserve Bank of ;nsas City declared
in July, 1916, a dividend to June 30, 1915, and the Dallas
Federal Reserve Bank declared dividends in January, 1916,
to June 30, 1915, and in September, 1916, to December 31,
1915.
It is quite possible that your failure to receive
a dividend is due to complications in connection with your
transfer. Ye have, hmever, forwarded your letter to the
2edera1 Reserve Bank of Kansas City, vlith the request that
they look into the matter and advise you. If you should
not hear from them promptly, please call the matter izain
to the attention of the Board.
Very truly yours,

Secretary.

/1/
fat.

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Federal Reserve Bank of St. Louis

December 1, 1916.

adv—v-/,.)

The Federal Reserve Bank,
Xansas City, Mo.
Dear Sirs:?enclosed is a letter from the Park National
Bank, of Sulphur, Oklahoma, stating that they have
never received a dividend from the Federal Reserve
Bank.
Will you please investigate the matter and
advise them in conneotion therewith, forwarding a copy
of your letter to the Federal Reserve Board to complete
its file?
Very truly yours,

Secretary.

FEDERAL RESERVE BANK
OF DALLAS
R. L. VAN ZANDT, GOVERNOR
J. W. HOOPES, VICE-GOVERNOR
LYNN P. TALLEY, CASHIER
SAM R. LAWDER, ASST. CASHIER

rovember 29, 1916.

l)EC

Hon. 71. P. G. Harding, Governor,
Federal Reserve Board,
Washington, D. C.
Dear Governor Harding
:
I beg to acknowledge receipt of 7ourl_a_t_tax_o,i„the
23rd instantt
ti,whic:h was read with a great deal of interest.
Since writing you I have received the opinion of
our Jounsel on the subject of dividend liability, a copy of
which I am enclosing herewith for your information.
I have an idea that somewhere in Mr. Broderick's
filL:s he has the data showing the exact amount due by the
Federal Reserve Bank of Dallas to the Federal Reserve Bark
of Kansas City, according to the terms of the New YorkPhiladelphia agreement, as he advised me when last here that
he was going to make the calculation.
If, in the opinion of the Federal Reserve Board,
the adjustment should be mde according to that calculation,
I will appreciate it if you will have Mr. Broderick advise
me of the amount, in order that I may remit same to Kansas
City.
I am looXing forward with much pleasure and interest
to seeing you on the occasion of our Governors' Jonforence to
be held on the llth proximo.
Our Directors met yesterday, all present e=ept
Director Smith, from Shreveport, and, by unanimous resolution,
instructeu ue to apply to the Federal Reserve Board for its
approval of a dividend to our Shareholders up to and including April 30, 1916. A certified copy of this resolution and

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Federal Reserve Bank of St. Louis

4 1916

Hardin --2.
the required Luta relative thereto are being forwarded today
to Dr. Willis for submission to the Federal 1:eserve Board.

Enc.
VZ-RS

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Federal Reserve Bank of St. Louis

Governo

•
COPY

Dallas, Texas, Nov. 24, 1916.

Mr.

R. L. Van Zarit,
Governor, Federal Reserve Bank,
Dallas, Texas.
My dear Mr. Van

andt:

I have your letter of :Ciov. 10th, adcing for an opinion on the
question of whether the Federal Heserve Bank of Dallas should pay the accrued
dividend to date of transfer on stock held by Oklahoma Banks transferred from
the Ei eventh to the Tenth District by order of the Federal Reserve Board,
the
transfer beind effective July lot, 1915.
I note that nr. Elliott, Counsel of the Federal Reserve Balrd,
rendered an opinion on a similar question December 20th, 1915, but I understand from you that you have since that time talked to lir. Elliott about the
matter, and have given him some information with reference to the particular
question we have under consideration, and after your conversation with him,
he said he would ;robably want to reconsider his opinion, and it might be
that he would reach a different conclusion after further consideration of the
matter.
I understand further that it is the purpose of Judge Ramsey, Chairman of the Board of the Federal Reserve Bank of Dallas, to ask your Board of
Directors to d efer action on this matter unIil he has had the opportunity of
taking the matter up with the Federal Reserve Board ilar farther consideration
by it.
The questionraised is fraught with some difficulty because of the
fact that the Federal Reserve Act does not specially provide in a case of this
kind whether the Federal Reserve Bank fram which the member banks were transferred should pay the dividends accrued to the date of transfer, or whether
the Federal Reserve Bank to which the member banks were transferred should pay
the accrued dividends to the date of transfer when t.e earnings of such bank
were sufficient to enable it to pay the dividends on its stock, the accruea
dividends to date of transfer not having been earned by the Federal Reserve
Bank from which the member bankswere transferred.
It is clear that the Federal Reserve Board was authorized by the
Reserve Act to make the order transferring the 128 member banks in
Federal
Oklahoma from the Eleventh District to the Tenth District, but such a finding
and order by the Federal Reserve Board amounted practically to an adjudication
that such banks should originally have been placed in the Tenth District with
the Federal Reserve Bank of Kansas City, rather than the Eleventh District
with the Federal Reserve Bank of Dallas; and it occurs to me, that
being true,
these banks should be treated as though originally placed where
they should

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Federal Reserve Bank of St. Louis

4,
-2have been placed, to-wit: in the Tenth District, and so far as such member
banks were concerned, their rights should be dealt with as though theyw
ere
placed where the order of the Federal Reserve Board finally placed
them.
As I understand the situation, at the time these banks were
ransferred from the Federal Reserve Bank of Dallas to the Federal
Reserve
aale of Kansas City, the Federal Reserve Bank of Dallas had not
been able
0 earn the dividend which had accrued upon the stock of those
member banks,
and that the Kansas City Bank also had not been able to earn the
dividend
that had
orued upon the stock of its member batks.
lirticle 49, Section 7 of the Federal Reserve A.ct reads as follows:
"After all necessary expenses of a Federal Reserve Balk have
been paid or provided for, the stockholders shall be entided to
receive an annual dividend of 6,, on the paid-in capital stock, which
dividend shall be cumulative. ..fter the aforesaid dividend claims
have been fully met, all the net earnings shall be paid to the
United States as a franchise tax, except that one-half of such net
earnings shall be paid into a surplus fund until it shall anount to
40;,, of the paid-in capiLal stock of such bank."
Clearly, under the wording of this section of the Act, the member
banks transferred from the Eleventh to the Tenth District are entitled to receive a 6„; cumulative dividend upon the amount of stock which they had in the
Federal Reserve Balk of Dallas, and which they now have in the Federal Reserve
Bank of Kansas City.
The Federal Reserve Banks were opened for business on October 16th,
1914. At the time they opened for business, one-third of the capital stock
was paid in by the member banks. Three months later, or in February, 1915,
another one-third of the capital stock was paid in by the member banks, am.
in May, 1916, the remaining one-third of the capital stock was paid in by the
member banks.
At the date of the transfer of these Oklahoma banks from the
Eleventh to the Tenth District, the member banks had been requiree to carry
on deposit with the Federal Reserve Bunk of 2al1as only 2/12 of their reserve.
The amount of capital stock subscribed by these Oklahoma banks in
the Federal Reserve Bank of Dallas was approximately 0.90,000. One-third, or
approximately ,)65,000, of this amount was paid in about the time the bank
opened, on October 16, 1914. An additional one-third, or approximately 065,000, was Dale. in by these banks in February, 1915, about ninety days after
the opening of the bank, and the remaining one-third, or approximately Q65,000, was paid in May, 1915.
These Oklahoma banks, at the date of transfer, had reserve eeposits in the Federal Reserve Bank of Dallas equal to 2/22 of their reserve
required by law, amounting to about 0375,000. Since the date of transfer of
these banks to the Tenth District, they have been required to increase their
reserve deposits with the Federal Reserve Bank of Kansas City, 30 that for

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Federal Reserve Bank of St. Louis

-3some time they have been required to carry with the Federal Reserve
Bank of
Kansas City 5/12 of their reserve requirea by law, being approximately
000 more than the reserve deposits carried in the Federal Reserve Bank of
Dallas. By reason of the transfer, the Federal Reserve Bank of Kc. - szez City
.
A
obtains as working assets al
oproximately :)100,000 of capital stock and
000 of reserve deposits, and approximately .!;600,000 additional reserve deposits which these banks were required to carry by virtue of the Federal
2e
serve Act.
This transfer of the Oklahoma banks from the Eleventh to the Tenth
District was brought about by no action upon the Dart of the Federal Reserve
Bank of Dallas, but resulted because the Federal Reserve Board concluded,
after a careful consideration of the promises, that the course of business
of these member banks was to Kansas City, rather than to Dallas, and that
these banks should originally have been placed with the Federal Reserve Bank
of Kansas City.
By reason of the transfer of these Oklahoma banks from the Eleventh
to the enth District, the working assets of the Dallas Bulk in the way of
capital stock and reserve deposits were decreased from : 565,000, and the worka
;
ing assets of the Kansas City Bank in the way of capital stock and reserve
deposits were immediately increased about 565,000, and have since that time
beal further increased by additional reserve deposits of approximately '4600,000; and the question for determination is whether the Kansas City Bank, which
profited by the transfer in the way of inc;eased capital stock and reserve deposits, should pay to the member banks so transferred the cumulative dividend
due them on their stock, or whether the Federal Reserve Bank of Dallas, which
had nothing whatever to do with the trrin9fer of these member banks, or the
placing of these banks originally in the Eleventh District, and whose capital
stock an. reserve deposits were decreased about ',1565,000 by reason of the
transfer of these banks, and which did not have the benefit of the auaitional
reserve deposits which these banks are now required to keep with the Feaeral
Reserve Bank in which they hold their membership, should, notwithstanding the
loss suffered in the way of decreased capital stock and reserve deposits,
still be liable to the member banks for the accrued dividends to the date of
transfer, which the Dallas Bank had not been able to earn at the date of transfer.
The Federal Reserve Act specifies what shall be done when a member
bank surrenders its stock in a. Federal Reserve Bank on account of liquidation,
or where a part of its stock is surrendered on account of a reduction in the
capital or surplus of such member bank, Section 5 of the Federal Reserve Aot
reading in part as follows:
"Jhen a member bank reduces its capital stock, it shall surrender a proportionate amount of its holdings in the capital stock
of said Federal Reserve Bank, and when a member bank voluntarily
liquidates it shall surrender all of its holdings of the capital
stock of said Federal Reserve Bank and be released from its stock
subscriptions not previously called. In either case the shares
surrendered shall be canceled and the member bank shall receive in
payment therefor, under regulations to be prescribed by the Federal
Reserve Board, a sum equal to its cash-paid subscriptions on the

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Federal Reserve Bank of St. Louis

410
shares surrendered and one-half of one per cent. a month from the
p riod of the last dividend, not to exceed the book value thereof,
less any liability of such member bank to the Federal Reserve
Bank.0
If the member banks in Oklahoma had been liquidated, then, of
ourse, the Act provides what amount the FecLeral Reserve Bank
of Dallas
-hould pay on the cancellation of the stock held by these
member banks,
but these banks remained a part of the Federal Reserv
e System, and their
status was changed only by their being transferred to the
district in which
they originally should have been placed; and the Federa
l Reserve Act does not
specify whether the bank from which the memberbanks were
transferred, or the
bank to which the member banks were transferred should pay to
the member
banks the dividend accrued at the time of transfer.
It occurs to me that if
it had been the intention of Congress to require the Federal
Reserve Bank
from which the member banks were transferred to pay the divide
nds accruecl
upon the stock of the member banks so transferred to the date
of transfer,
it would have covered such a case by a provision similar
to the provision
with reference to the amount to be paid on the stock when a member
bank was
liquidated or when the capital stock and surplus of the member
bank were decreased; and that it -;as the intention of Congress that the
Federal Reserve
Bank to which the member banks were transferred should take those
banks subject to the dividend liability, because such banks originally diould
have
been placed in the district to which they were finally transf
erred, and for
the further reason that the Federal Reserve Bank to vnich
such member banks
were transferred benefitted by the transfer in the way of
increased capital
stock and reserve deposits; mid the bank from which
said member banks were
transferreu suffered a correspondingly loss in the way of capita
l 3 tock and
reserve deposits.
Yer illustration, suppose that by the transfer of the 128 banks
in Oklahoma, the working assets of the Federal Reserve
Bank of Dallas, in
the wcAy of capital stock and reserve deposits, had been
decreased to such
an extent that the Federal Reserve Bank of Dallas, with the
most careful management, could not have earned any dividends upon the capital stock
helu by
its member banks, and the Federal Reserve Bank of Kansas City,
by reason of
the increase in its capital stock and reserve deposits, Was enable
d to earn
a dividend, not only upon the stock of the member banks it had before
such
transfer, but also upon the stock of the member banks which it aoquir
ea by
reason of such transfer. Could it then be said in justice to the member
banks so transferred that they should be requirel to look to the Federa
l
Reserve Bank of Dallas for the accrued dividend due at the time of the transfer and thereby lose the dividend justly due them and which the law provides
should be paid them, rather than to say that the Federal Reserve Bank of Kansas City, which profited by eason of the transfer and Illichwas the bank
with which these member banks should originally have been placed, should pay
to these member banks the dividend due upon their stock? Aamittealy, in a
case like that, it wauld be unfair to the member banks so transferred to require them to hold a claim against the Federal Reserve Bank of Dallas, with
the prospect of probably never collecting it, rather than to require the
Federal Reserve Bank of Kansas City, to which they were transferred, and with
which bank they should have been placed originally, to receive such member
banks subject to the accrued dividend due on the stock held by them at
the
date of the transfer.

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Federal Reserve Bank of St. Louis

•
-5The ,1565,000 of capital stock and reserve deposits which the I:ansas
City Bank obtained byreason of this transfer, and the additional amount of approximately :„:600,000 reserve deposits which these member banks have
since
been required by law to carry with the Federal Reserve Balk of Kansas City,
ought to earn the dividend on the stock owned by such member banks,
and the
working capital which passed to the Kansas City Bank should
be charged with the
dividend which accrued upon such capital stock; and the Kansas
City Bank, having obtained this 565,000 of capital stock and reserve deposit
s, and having
since that time obtained further reserve deposits to
the amount of f4pproximately
600,000, and having had this amount added to its wooing assets,
should be required, in my judgment, to take such stock subject to the
accrued dividends ,
because that bAIlk, by reason of the transfer, obtaine
d the working assets with
which to earn this cumulative diviuend, whereas, the
Dallas Bank, byreason of
such transfer, lost the working assets in the way of ca7pital
stock and reserve
deposits with which to earn the dividend upon such stock.
If the Federal
Reserve Bank of Dallas should be required to pay the dividend accrued
on this
sta:k to the uate of transfer, it would result in the Federal
Reserve Bank of
Dallas taking dividends which had been earned upon stock held by its remaini
ng
member banks and using such earnings to pay the accrued dividends upon
stock
which the Federal .deserve Bank of Kansas City had had the benefit
of.
By reason of the expense incident to the opening of the Federal
Reserve Banks, neither the Federal Reserve Bank of Dallas, nor the Federal
Reserve Bank of Kansas City, at the time of this transfer, had been able
to
earn the dividends au:trued upon stock held by their member banks, but with
the
additional working assets wi.duh the Kansas City Beak obtained by reason of the
transfer, it has been able to earn a dividend upon the stock held by the member
banks so transferred, as well as the stock held by its original member banks;
and it occurs to me that the equitable construction to be placed upon the
Federal Reserve Act in this instance would be to require the Federal Reserve
Bank
of Kansas City to pay all dividends upon stock held by its member bunks,
rather than to require the Federal Reserve Balk of Dallas to appropriate
a
part of the earnings upon stock held by its remaining member banks in payment
of accrued dividends to member banks now holding stock in the Kansas City Bank,
which banks were transferred from the Federal Reserve Bank of Dallas to the
Federal Reserve Bank of Kansas City, by reason of the conclusion reached by
the Federal Reserve Board that these banks should originally have been placed
in the Tenth District instead of the Eleventh District.

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Federal Reserve Bank of St. Louis

Yours very truly,
-Cued)
(33
COPY

CHAR1E3 C. HUFF

0.0

•

IF-10

2
FEDERAL RESERVE BANK OF KANSAS CITY

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Federal Reserve Bank of St. Louis

TENTH D I 9 1- 12 I CI"
-

November 28, 1916.

Ti.;V:7;147°.7*"71

DEC

11916

ciovERNows omit=
Honorable W. P. G. Harding,
Governor, Federal Reserve Board,
Washinton, D. C.

pill

Dear Governor Harding:

This will acknowledge the receipt of your commu:nication
the 23rd instant, enclosing carbon copy of letter which
of
you have written to Governor Van Zandt of Dallas, concerning
dividend liability to the southern Oklahoma uanks, for the
period ending July 1, 1915, the date when such clanks were
transferred from the Dallas to the Kansas uity district.
We do not believe there is any question but that Governor Van Zandt is mistaken when he suggests that an agreement
was reached between himself and Mr. 3awyer, then Governor of
this bank, to the effect that the transfer should be made along
the lines adopted by Philadelphia and New York.
The fact is that at the time the conference between Governors Van Zandt and Sawyer took place, the details of the
Philadelphia-Eew York transfer had not been worked out and
agreed upon,- at least so far as IL*. Sawyer was concerned.
Sawyer is quite positive, and I understand he has a letter from Mr. Thralls coroborating his position, that it was
understood and agreed that the dividend liability to the
transferred banks was to be left to the Board, and to that
effect a stipulation was signed and made a part of the notice
to the banks concerned.
This stipulation reads as follows:
"The question as to whether the Federal
Reserve Bank of Kansas City or the Federal
Reserve Bank of Dallas should assume liability for accrued dividends to J147 1, 1915,
has not yet been determined by the Federal
Reserve Board. The Board will later decide
which of the Federal Reserve Barkl should
assume liability, and will then authorize
svch Federal Reserve Bank to issue the accrued dividend certificates."
We are enclosing herein copy of letter written by me
to Governor Van Zandt, which has the approval and states the
position of our directors on the subject.
Sincerely,
Governor.

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Federal Reserve Bank of St. Louis

olo

FEDERAL RESERVE BANK OF KANSAS CITY
TENTH

DIrFnCT

November 16, 1916.

Mr. R. L. Van Zandt,
Governor, Federal Reserve Bank,
Dallas, Texas. (0
Dear Governor Van Zandt:

Since the subject of your communication of the 11th instant,
regarding dividend liability to the Southern Oklahoma banks to July
1, 1915,- the date on which such banks were transferred to this
district,- was a matter of negotiations between yourself and Mr.
Charles M. Sawyer I have delayed replying thereto until his return
to the city.
1 submitted to ill'. Sawyer the correspondence between your bank
and ours on this subject, and his reply thereto, referring to dividend liability, states:
**** "This matter was not covered by the agreement entered into between us at the time of the
transfer, for I have had no view of it other
than that it would be settled at some future
date by the Federal Reserve Board, and I do not
remember that it Was even discussed from any
other angle."
ij attention was never called to the details of settlement
between the Philadelphia and. New York banks concerning the members
transferred from District No. 3 to District No. 2, and I had no
knowledge of them until the correspondence between our respective
banks on this subject.
Uithout attempting to argue the question, which I think has
been fully settled by the Federal Reserve Board, it occurs to me
that the organization expenses of your bank were not substantially
increased, nor were ours materially less by reason of the 121 Southern Oklahoma banks being originally included in the Eleventh District;
while on the other hand, your bunk must have received considerable
revenue on account of Bills Discounted for them during the time they
wore members of your district,- doubtless an anount in excess of the
diviaends to which they are entitled, for the period in question.
With kindest regards, believe me,
Sincerely,
(
710nod) J. Z.
MILLER,14.

Governor.

FEDU

SERVE BOARD HLE

Novenber 23, 1916.

L. Van Zandt,
Governor ?edema Reserve Bank,
Dallas, Texas.
Dear Governor Van Zandt:I duly received your letter of upyopbr llthOrith enclosed
papers,
as to the aijustment of the matter of emulative divide
nds on stock of
the Oklahoma barin transferred from your district to
Kansas City on July
1, 1915.
Accordinc to the Board's understandinc o: the matter, the
principal
question between your bank and the Kansas City baak is as
to which bank
should assume liability for any accrued dividends betwee
n the date of orcanization to July 1, 1915, and also the liability for
cumulative dividends
upon the stock of the Oklahoma banks durinc this
period.
After a careful readinc of the correspondence, the Board
(lees not see
that there is any question of law involved.

This, of course, is upon the

assumption, as stated by you, that your bank agreed with the
Kansas city
bank to apply in this adjustment the principles of the ajreen
ent entered
into by the NOW York and Philadelphia banks in oomnection with
the transfer
of certain New Jersey banks from the latter to the fernier
district.
This latter acreement was based upon an effort on the part
of the
respective banks to reach a just and equitable result reLArdless
of any
technical lecal questions, and the Board saw no reason Why it should
not
permit the parties to work out the result in the nanmer
indicated.

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Federal Reserve Bank of St. Louis

If the principlee of this s4Teerent were
L
made applicable to the question
between your bank and the li:aneas City bank
, the result would necessarily be
that the Eassas Citv bank should beco
me, in equity, responsib
for the
liability for cumulative dividends
on this stock from the organization of
the bank up to said July 1, 1915, as
if these banks had been members of the
Kansas City bank from the time of
organisation of such bank. on tits other
hpd, the Dallae ban; would have
c
to account equitably to the Kansas Oity
bank for any excess of the book
value of the stock of the Oklahoma banks over
the par value up to the time of the
transfer.
Lookin43 threufjh lega/ technicalities
to the merits of the question, it
certainly seems just that the Oklahoma
benkm should not lose thoir ric;ht to
have cumulative dividends because of
their transfer to the Kansas city bank,
and, on the other hand, it seems equa
lly just that the :Kansas City bank dhou
ld
obtain any benefit received by your
bank while it enjoyed the use of the assets of the trarisferred banks, said
benefits beinc represented by the exce
ss
of book:value over par value.
It muld appear clear that any bala
nce due in
the way of curulative dividends
after the transfer should, in equity,
be net
out of the assets transferred to
the l':ansas City bank, and, in the opin
ion of
the Board, it would be most
inequitable to require the ?ederal Rese
rve Bank of
Dallas to be impressed with this
burden then the benefit, that is, the
assets
of the transferred banks, have
been taken away from it.
In any event, in the lone run the
question will assume no material
importance to either bank as these
cumulative dividends will be taken out
of

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Federal Reserve Bank of St. Louis

revenues Which otherwise would go to the Government in the shape of a
frandhise taL:*
/ am eendinc a copy of this letter to Govornor Lliller and I can say
it behalf of the Board that I trust the matter will bo speedily adjusted
along the lines indicated.

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Federal Reserve Bank of St. Louis

Very truly yours,

Governor.

NALL

•
.9046

—

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Federal Reserve Bank of St. Louis

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•
FEDERAL RESERVE BOARD
WAS

el.„bor

M.C.ELLIOTT

1916.

RECIINED

COUNSEL

NOV 20 1916
GOVERNOR'S OFFICE

dear Governor:-

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Federal Reserve Bank of St. Louis

I have real the ,,ttachad papers in reference to
payment of accrued dividends to member b.inks transferred
from the r.J.11a to the Kansas City Listrict.
I mzrat to note t'oa., 2overnor Van Zandt
misrmleretood my position as outlined in personal convere4tion had with hitt on Me.y fifth in D4.11as.
whor, I visited the 7odl-a1 naservo Ilank of Dta1a3,
,
Governor Van Z4ndt discussed with ite, alLon' other things,
rby opinion on the subject of dividends due to member banks
transferred from one ditriet tc another.

He outlined his

objections to this opinion claiming that it milht prove
3ross1y inequitable under certain circumstances for a Federal reserve bank to be called upon to pay dividends to member
banks transferred to other districts.
thought there W3 force in hi

I told him that I

;7sestion from an equitable

standpoint; that other banks h&d raised this luestion, 7.r41
that the noard had permitted such other tanks to make volunti.ry settlements and I felt satisfied that it wc,u1- perlidt
3
the 2l1az and Kansas City Danks to do like-Asa.
7
In vie' of the position
A

hch I understood had

been t:%ken by the Coverner of one of the other Federal reserve banks, either Atlanta or Ke.ns4e City, that the banks

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Federal Reserve Bank of St. Louis

were without authority to elake such zettlements, oven though
they might 1:.utual1y agree to

Jo, I thoue.ht it might be

neecesury to file a sul,plewental reemorandum tc the effect
that if the banks agreed to an equitable basis of settlement
they right of their own accord adjust this matter on other
lines than those indicated in the opinion which had been approved by the Board and published in the Bulletin.
I am at a loes to understand Covernor Van Zandt's
stateaeLt that I said to him that the opinion as rendered
wae not only not the law but that it had not been followed
and that I 1-ee -': not given that part of the opinion which related to tIle

ayment of dividends ueual care and considera-

tion.
As stated, I did tell him that other banks had not
followed the opinion and that there was force in hie suggestion from an equitable standpoint.

I did not, however, and

could not, have stated that I regarded the legal position
taken as unsound or that I had not given the matter due consideration.

On the contrary, I not only game verycareful

etudy and. consideration to the legal questions involved but
it the inetence of the rodere.1 'Reserve Banks of Nevi York and
Philadelrhia I endeavored tr.: find authority to oupl.crt the
position taken by the officers of theee t'io banks that the
New York Bank should equitably assume a part of the organization and current expenses of the ?hiladelphia rank.
Thile I appreciate the force of the arguments made
at that time by the officers of these WO institutions, ahd

•

—3
(4
10

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Federal Reserve Bank of St. Louis

noN made by Governor Van Zandt, I al, still of the opinion
that member banks which are transferred from one district
to another by order of the Federal Reserve Board should not
thereby lose their right to ckneulative dividends; that their
status differs from banks which voluntarily or involuntarily
withdraw from the System; that the Federal reserve bank from
which they have been transferred should

leally

assume the

payLent of dividends up to the date of transfer oince it ha
enjoyed the benefits of membership and had the use of cash
paid zubocrii;tiona and deposits up to that tine; that there
is no authority in the Federhl Reserve Board to require one
Federal reserve bank to

Efrs'SUM8

any kart of tha organization

or current expenses of another Federal reserve bank, or to
require a Federal reeerve bank to pay to another Federal reserve bank any part of its earnings.
all further of the opinion that fro= a practical
standpoint the effect on other stockholders is negligible
since dividends are cumulative and the payment of accrud
divionclo to a few banks transferred to another district
can have no more

SGriCU:

effect than to poetpone for

ehort

time a very sleall 1,reportion of dividends payable to other
member banks.
To answer Governor Vbn Zundtts arzulLent in kind,
Idle it might prove a hardship in an extreme case for the
D. -11as Bank to assume the payment of dividends to a large
,
number of banks transferred shortly after the inauguration
0f the -, stem and before the earnings of the Dallas Punk
i

•

-4-

exceeded expenses and dividends, if his position is followed out logically it would prove a much more serious hardship to make an adjustment on the basis suggested if banks
were transferred several years after the System had been
placed in successful operation.

In other v;ords, if a large

number of banks should be transferred from the ralla3 to the
Kansas City district Tveral years ..fter Lhe inauguration of
the System and settlement should be clillanded by the KG,n3as
City Bank on the

ba3ii;

outlined by aovo;-nor Van Zandt, the

llas Ihuik might 1)-. requimi to Live up a very large procrtion of its earnings in addition to surrendering the mealbership of the banks.
While I agree, therefore, that from a practical
standpoint the Board should not take any affirmative action
to prevent Dallas and Kansas City from adjuJinq, their differences cn the ba.3i5 followed by other Federal reserve banks,
if these two banks ar%.1 tAnabl

to a- roe on a settlement on

this basis I can find no outhority to ;Ixtify the Board in
requiring the Federal F,erve rank of Kansas City to a:sumo
ary lart of the expenses of the Dallas Bark or in requiring
the Dallas Bank to pay any part of its earnings to the Federal reserve 1-2ank of Kansas City.
Respectfully,

Hon. W. P. G. Harding,
,
Jrovernor.

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Federal Reserve Bank of St. Louis

P. S.

With your
roval, I dill send
a copy of this letter to Governor
Van Zexidt.

Counsel.

•

PenCtriviAll
FEDERAL RESERVE BANK
OF DALLAS

NUV 1 41916
otioVERNOR'S OFFICE

R. L. VAN ZANDT, GOVERNOR
J. W. HOOPES, VICE-GOVERNOR
LYNN P. TALLEY, CASHIER
SAM R. LAWDER. ASST CASHIER

November 11, 1916.

Hon. W. P. G. Haraing,
Governor, Federal Reserve Board,
Washington, D. C.
My dear Governor Harding:
For your information I beg to enclose herewith carbon copy
of a communication which I am today forwarding to Governor Miller at
Kansas City, on which I will appreciate your advice.
If it is in
any way possible, I woula like to hear from you by the 26th instant,
in order that I may embody your opinion in my report to our Board of
Directors at its next meeting.
In this connection a thought which occurs to me is that, as
a Federal Reserve Bank,after once being organized, is not subject to
the minimum capital requirement provided for by law, it is within
the realm of possibility that a Federal Reserve Bank which has not
yet absorbed all of its organization expenses might have fifty per
cent, or more of its member banks with their capital subscriptions
and reserve deposits transferred to another district, and if it were
required to continue liable for the unearned accrued dividends it
would be confronted with a practically impossible task, while the
bank which received the transfer would have its earning capacity
greatly augmented and yet be relieved of the burden of proviuing for
the accrued dividends and the organization expenses incidental to
the taking of these banks into the Federal Reserve 3ystem.
'Ath highest personal regards, I am,
Yours very truly,

Enc.
VZ—RS

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Federal Reserve Bank of St. Louis

•
7ovember 11, 1916.

Mr. J. Z. Hiller, Jr.,

Governor,
Federal Reserve Ban;: of Kansas City,
;rauss City, Lo.

Dear Cover.lor 7111er:
just J.), re, oipt of a letter from your Assistant to
onr Viioe Governor, under date of the 9th instr.nt, wIlich follows up
scle co:orospondeime carried on betveen these two Gentler:km during
my tibserce on vacation, relative to the dividend liability to the
Oklahoma banks which were tmnefcrred from the Eleventh to tho
1915.
Tonth District on June
112

returned to Dollan on redres:thy Let, at which time
Judge Ramsey showed mo a leter which he had received from the
Federal Reserve Board ;sivtn,g an opinion on this subject and directLuc: him to brim: the letter to the attention of cur Board of
Directors. Judge Ramsey VT13 not connected with this institution
at the time of the trlinselr, ;Ind asi:ed me to writo him a brief
history of the case, in order that he might be in a position to
put the matter intelligently before our Board. He left for
Arizen4 and rev/ :lexico at noon on that day, to be gone possibly
ten days, and the next fieetinc; of our Board will not tke place
until the 28th Anstant. Thin is u nv:tter on which I have no power
to act except under instructions from our Board of Directors, and
must, thorefore, necessarily viait until that time.
.
have prepared my communication to Juage Ramsey, Ltna
have referred it to our Counezel for En opinion and advice. A carbon copy of the communication is enclosed herewith for your information.
At the time of my visit to Kansas City, whicn yciu will
recall, r. Sawyer was your Governor and :T. Thralls ;your Cashier,
and we throe verbally agreed to follow the suvostion of the Federal Reserve Board in the matter of this transfer and conduct same
an nearly as possible along the lines of the I:ew York-Philadelphia
transfer. The greeter pert of this verbal agreement having been

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Federal Reserve Bank of St. Louis

•

!tr.

7
caxried. out, it b,pocars to r:r7: that 1.1to rea%incthr of thr.'; 8..,- f2snent
is Low as binding' upoli both the Federal Reserve Bzink of :,:ansas City
ann the Federal lie3e1-.te Bank of D3l1719 as if that aLweernent had
been in rritins and sigled, ro 3‘ardless of the fact that the execu!
l';ansas City who entereci
tive officers of tllo 72oLterb.71 Reserve 3ank
into this azA'eement have boon succeeded by others.
Pending the return of Judge Ramsey I will appreciL.te it if
you will gtveLle :iour personal vies on this mutter.
Trusting to llave the pleasure of seeinr; you in Washington
at the Dueecaber z..enference, I z.im, with "icin(1 personal resirt;is,
Very sincerely ;:ours,

Enc.
VZ-10

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Federal Reserve Bank of St. Louis

•

wt.

FEDERAL RESERVE BANK
OF DALLAS
R. L. VAN ZANDT. GOVERNOR
J. W. HOOPES. VICE-GOVERNOR
LYNN P. TALLEY. CASHIER
SAM R. LAWDER. ASST CASHIER

November 10, 1916.

Dear Judge Ramsey:
In considering the adjustment of dividends due to the
banks transferred on June 30, 1915, from District No. 11 to District iro. 10, we must bear in mind the fact that the Act itself is
silent on the subject and that the whole matter must be settled on
the most fair and equitable basis which it is possible to ascertain.
In view of the fact that you were not connected with this
institution at the time of the above transfer, I will give you an
outline of the history of same.
The Reserve Bank Organization Committee, acting under the
authority vested in it by Section 2 of the Federal Reserve Act,
divided the United States into twelve districts, designating the
city of Dallas as the Federal reserve city for the Eleventh District, and included in said Eleventh District practically the entire Southern half of the State of Oklahoma.
A majority of the banks in all except eight of the thirtythree counties of Oklahoma included in the Eleventh District petitioned the Federal Reserve Board for a transfer to the Tenth District, and on May 4, 1915, the Federal iteserve Board issued an
order granting the petition and readjusted the district lines by
placing twenty-five Eleventh District Oklahoma counties in the
Tenth District, the transfer to become effective on June 30, 1915.
The same order of the Board instructed the transfer of
certain banks from the Third to the Second District, and, as the
Federal Reserve Banks of Philadelphia and New York were located
conveniently to each other and to Washington, the Federal Reserve
Board suggested that these two banks work out a plan of transfer
to be aporoved by the Federal Reserve Board and that other banks
affected might follow that plan.
After considerable work the two banks mentioned submitted
a plan, all of which was approved by the Federal Reserve Board except that portion relative to the adjustment of earnings and expenses between the two banks. The transfer was made according to
this plan, leaving the adjustment of earnings and expenses to be

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Federal Reserve Bank of St. Louis

-2-

11-10-1916

decided upon later, and the transfer of the banks from the Eleventh
to the Tenth District was made in the same manner.
At the time of the receipt of advice as to the plan of
transfer I was in Kansas City to arrange details, and the Federal
Reserve Bank of Kansas City sent out notices to the affected banks
over the signatures of Governor Sawyer and myself, which notices
contained the following clause:
"The question as to whether the Federal Reserve Bank
of Kansas City or the Federal Reserve Bank of Dallas should
assume liability for accrued dividends to member banks from
date of organization to July 1, 1915, has not yet been determined by the Federal Reserve Board. The Board will
later decide which of the Federal Reserve Banks should assume liability, 11716 will then authorize such Federal Reserve
Bank to issue the accrued dividend certificates."
This was copied from the notices sent out by the New York
and Philadelphia banks, whose plan we had adopted, and Governor Sawyer and I agreed to follow their plan of adjustment of earnings and
expenses.
The agreement was verbal and not put in writing, neither
of us considering that necessary, as we were, at the suggestion of
the Federal Reserve Board, following the New York-Philadelphia plan.
The transfer of capital stock payments and reserve deposits
was proceeded with and completed, the certified resolution of the
member banks, which was prepared in the office of the Federal Reserve
Board, reading as follows:
"Now, therefore, be it resolved, That the President
or Vice President and Cashier of this Association be and
they are hereby authorized, empowered and directed to make
application to the said Federal ..eserve Bank of Dallas for
the cancellation of said
shares of stock heretofore
allotted to this bank and for the refund of all payments
made thereon."
On June 18, 1915, our Federal _:eserve Agent received the following telegram from the Federal Reserve Board:

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Federal Reserve Bank of St. Louis

"In further reference to telegram of yesterday relating to transfer of member banks the auestion has been
raised by other Federal Reserve Banks as to which bank
should assume liability for accrued dividends to member
banks from date of organization to July first nineteen
fifteen. Pending final determination of this question

11-10-1916

V. F. R.

by the Board you are authorized to modify joint letter
to be sent member banks by embodying provisions to the
effect that the Board will later determine which of the
Federal eserve Banks should assume liability for accrued
dividends and will then authorize Federal Reserve Bank
to issue the accrued dividend certificates."
On October 8, 1915, having heard nothing further on the
subject, and being anxious to get the matter closed, I wrote Mr.
J. 11.. Broderick, Federal eserve Examiner, as follows:
tx x x x Another matter I would like to have
some information on is an adjustiLent of the pro rata
part of our organization expenses which properly belongs to Kansas City on account of the transfer of
certain banks to that District. I am informed that
similar expenses were adjusted some weeks ago between
New York and Philadelphia, but the last thing which
we have had on the matter was a telegram from the Federal Reserve Board dated June 17th.xxxx
To this Mr. Broderick, under date of October 15, 1915,
made the following reply:
"x x x x as regards the adjustment of expenses which properly belong to Kansas jity on account of the transfer of certain banks, for your information I enclose a copy of the agreement entered
into between New York and Philadelphia for adjustment, which you will note also takes care of the
earnings."
This was the first time that we had an opportunity
to learn the nature of the New York-Philadelphia agreement,
which reads as follows:

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Federal Reserve Bank of St. Louis

TtiatiEUILITT
"Expenses of Organization.--The Federal ..eserve
Bank of New York agrees to assume such part of the expense of organization of the Federal Reserve Bank of
Philadelphia as the capital of the banks to be transferred bore to the total capital of the banks in District No. 3 at the time the assessment was levied by
the Federal Reserve Board in November, 1914. Expense
of organization is not to include cost of furniture
and fixtures or cost of printing am. shipping Federal
Reserve Notes.

-4-

11-10-1916

"Current Axpense.--The Federal Reserve Bank of New
York agrees to assume such proportion of the current expenses of the Federal Reserve Bank of Philadelphia as
the capital paid in by and ueposits to the credit of the
banks to be transferred bears to the total capital paid
in by and deposits to the credit of all of the member
banks in District No. 3 at the close of business June
30th, 1915.
"Gross Earnings.--The Federal .deserve Bank of
Philadelphia agrees to allow as a set-off to the expense
above named, such proportion of the gross earnings of
the Federal ..eserve Bank of Philadelphia as the capital
paid in by and ueposits to the credit of the banks to be
transferred bears to the total capital paid in by and
deposits to the credit of all of the member banks in
District No. 3 at the close of business June 30, 1915."
At the time of the next examination of this bank Mr.
Broderick asked me whether or not we had ever had an adjustment
with Kansas City, and I told him that we had not, for the reason
that a rough calculation in accordance with the New York-Philadelphia agreement showed that the amount of difference would be
negligible. He stated that he thought we owed Kansas City something and that he would make the calculation and advise both
this bank and the Kansas City bank of the amount.
I have never yet received any further advice from him
on the subject.
Under date of December 20, 1915, Judge Elliott rendered an opinion on the subject of "Dividends on Surrendered
Stock", which will be found in full on pages 17-20 of the Federal
Reserve Bulletin for January, 1916.

On May 5, 1916, I discussed this opinion with Judge
Elliott in my office, taking issue with him on that part which
related to accrued dividends on stock of transferred banks and
stating my reasons therefor. He advised me that his opinion, as
rendered, was not only not the law but that it had not been followed. He said further that he had not given that part of the
opinion his usual care, that he saw much force in my argument,
and asked me to prepare and forward him a memorandum on the subject, which I did on May 8, 1916.

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Federal Reserve Bank of St. Louis

That memorandum was as follows:

-5-

. F. R.

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Federal Reserve Bank of St. Louis

"11EZORANDUU i0A JUDGE M. C. ELLIOTT BY

11-10-1916
L. VAN ZA1D2

••1115.1...11.

"SUBJECT:

Adjustment of Earnings and Expenses

"The opinion of Counsel for the Federal Reserve Board,
nnfier date of December 20, 1915, is to the effect that inasmuch as banks, which are transferred from one district to
another by order of the Federal Reserve Board, "continue as
mehibers of the Feueral Reserve System and have subscribed
to the stock of a bank with the understanding that their dividends are to be cumulative, it would seam reasonable to assume that Congress intended that such banks should receive
the same dividends as other banks which remain members of
the System". It then states that "in this view a bank transferred should receive an accrued dividend certificate from
the Federal Reserve Bank whose stock is surrendered, and
such Federal Reserve Bank should pay this certificate when
its earnings are sufficient to pay other stockholders their
accrued dividends".
"The first part of the above excerpt is undisputed,
for it is an evident fact that a bank should suffer no
eventual loss by following the instructions of the Organization Committee and subscribing for stock in one Feueral
Reserve Bank when, in the opinion of the Federal Reserve
Board, it should have been attached to some other district
and should have subscribed for stock in another Federal
Reserve Bank to vhich it is transferred in the readjustment
of district lines by the Federal Reserve Board.
"However, we do not concur in the latter part of the
opinion, which states that the Feueral Reserve Bank whose
stock is surrendered should be required to use its depleted
assets to earn dividends for its oval shareholders and, in
addition, the dividends for the transferred banks which had
not been earned at the time of transfer.
"We do not consider such a method just and equitable,
and do not feel authorized to furnish said accrual certificates and dispose of a part of the earnings belonging to
our remaining shareholders without direct, explicit instructions to do so from the Federal Reserve .:,oard.

.
W F. R.

-6-

11-10-1916

"As an exaggerated example of haw the method would
work out in accordance with the above opinion, we will suppose that the Organization Committee had arranged the districts so that eserve Bank 'X' and i-Leserve Bank 'Y' each
had a paid up capital of ten million dollars and reserve deposits of twenty million dollars. 41so that after the first
year's operations each bank had succeeded in paying all of
its organization and current expenses and the book value of
its stock was exactly par.
"Now suppose the Federal Reserve Board, in its review
readjustment of the work of the Organization Committee,
and
should decide that certain banks in District 'X' should have
been attached to District 'Y', and accordingly transfers banks
with stockholdings of five million dollars and reserve deposits
of ten million dollars from Reserve Bank 'X' to Reserve Bank
'Y', after which Reserve Bank 'X' would have five milli.on capital and ten million deposits, or a total working capital of
fifteen million dollars, and Reserve Bank 'Y' would have fifteen million capital and thirty million deposits, or a total
working capital of forty-five million dollars, or three times
as much as 'Y'. Question: Is it just and equitable that
Reserve Bank 'X', with its fifteen millions of working capital,
should be required to make up exactly the same deficiency in
earnings as Reserve Bank 'Y' with its forty-five millions of
working capital? The answer is evident.
"Now, in our opinion, an absolutely equitable manner in
which to adjust the transfer is as follows:
"Consider that the banks transferred should have been
originally, members of the district to which they have been
transferred. Also that in the hands of the Reserve Bank to
which they were originally assigned their capital stock payments had, up to the date of transfer, earned a certain amount.
Then on the date the transfer is effective the exact book
value of the stock should be computed and the par value of the
stock should be paid over by Reserve Bank 'X' to Reserve Bank
'Y', together with the amount of the net earnings on such date.
These net earnings should be added to the net earnings of
Reserve Book 'Y' and the transferred banks should be placed in
the same position as they would be if their original stock
subscriptions had been with ieserve Bank 'Y'.
"It naturally follows that if Reserve Bank 'X' had not
succeeded in earning enough to pay its organization ani current expenses up to the date of transfer, then Reserve Bank
should assume and pay to Reserve Bank 'IX' the pro rata
part of the deficiency.

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Federal Reserve Bank of St. Louis

•
W. F. R.

-7-

11-10-1916

"There being nothing in the Federal Reserve Act
bearing on this matter equity must govern, and the Federal Reserve Banks cannot as. ume the responsibility of
adopting any other than an absolutely equitable method
of procedure in adjusting the earnings and expenses between them in the case of transfers of banks from one
Federal Reserve District to another."
This was acknowledged by Judge Elliott under date of May
31st, in the following language:
"I am writing to say that I have not overlooked
your letter of May 8th but have been waiting for a
favprable opportunity to take this up informally with
the Governor so as to uetermine whether it will be
necessary to file a supplemental opinion or whether
the matter can be adjusted without that."
Nothing further has been received from Judge Elliott on
the subject. However, since that date we have adjusted the transfer of banks from the Dallas District to the Atlanta District
along lines identical with the New York-Philadelphia agreement,
i.e., by paying the Atlanta bank the actual book value of the
transferred stock on the date of transfer and the Atlanta bank
assuming the accrued dividends thereon.
Attention is called to the fact that, so far as the
Feueral Reserve Bank of Dallas is concerned, the stock is canceled (see resolution prepareu for withdrawing bank by Fe6.era1
Reserve Board), and that in every instance in the Federal Reserve
Act and in the regulations of the Federal Reserve Board where the
cancelation of stock is provided for the rule is that the member
bank shall receive "a sum equal to its cash-paid subscriptions
and one-half of one percentum a month from the period of the last
dividend, not to exceed the book value thereof."
In particular is this an almost parallel case where a
State bank withdraws its membership from a Feueral Reserve 31811k
but continues as a going institution. The Federal Reserve Bank
is deprived of the use of the capital and reserve deposit of the
withdrawing member and is justly under no obligation to employ
its remaining assets to earn dividends on the withdrawn stock
which had not been earned at the uate of withdrawal.
I feel that the Federal Reserve Banks of Kansas City
and Dallas are as firmly bound to follow the New York-Philadelphia
plan of adjustment as if a written and signed agreement had been
entered into and that the Federal Reserve Board should so rule.

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Federal Reserve Bank of St. Louis

•
11-10-1916
I further believe that any plan of adjustment of transfers which differs materially from the rew York-Philadelphia plan
to such an extent that a Federal Reserve Bank is required to earn
back dividends on surrendered stock is necessarily unjust, unfair
and inequitable, that it would not be upheld by our higher courts,
and that such procedure was not contemplated by the framers of the
Federal Reserve uot.
Very respectfully yours,

Governor.

Hon. WM. F. Ramsey,
Chairman, Board of Directors,
Federal Reserve Bank of Dallas,
Dallas, Texas.

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Federal Reserve Bank of St. Louis

•

BOAliD FILE

October 32. 1916.

mr. w. Rome4y,
maroon Oederal Reserve Baal:,
Dallas, 2amodi

Deer Nr. Ramsey:Serettle wp the 'ederal Reserve
Bank of ..mtaas aity brought
to the attention of the Board
the question of paynent of acorued
dividends to nenber banks transfer
red from the Dallas to the
nnas City district.
A eonewhat similar question arose
in connection with the
transfer of certain banks from the
Philadelphia to the :;ew York
district, but in this ease the
2Waral Peeerve 3ank8 concerned
voluntarily entered into an agre
erent under which the "ITew York
bank assured part of the a:Te
nses of or3anisation and currant ex•
penees of the Philadelphia bank,
and the Ailladelphla bank allowed
as a set-off to such expense:
3 a proportion or its arose earnikm.
Other i;tederal Reserve Banks have
been permitted to :1!,ko a stAlar
adjustment of accounts in oases there
rerber banks have been transferred fron one district to ano
ther.
In each oases however, this
sajustilont has boon a nutter of volu
ntary asreenent; and, after
carefully considering the matter, Lhe
'ederal Jieserve Board is not
of the opinion that it can require,
as a rlatter of law, the .:'ederal
Tmserve Bank of Eanses City to ass
ume any part of the eLpenses of
the ?Sclera Reserve Bank of Dallas;
nor does it believe that it
ean require the ?ederal Reserve Ban
k of Dallas to pay any part of
its gross earnings to the Fede
ral Reserve Bunk of ;:ansas
City.
The Board is, however, of tlx
opinion that the J'ederal Reserve
Bank of Dallas is liable to
the nember banks transferred for
unpaid
dividends up to the date of
transfer, furl that the banks so
transferred are entitled to pres
ent their claims for ouch unpaid
dividends
to the iiiederal :Reserve
Bank of Dallas, Willistalgebutb
arlirlibte
411000:10usasaseWawaly%
,
e7.4./ C4,44, „4-e--es,w
,.-e,
ory truly yours,
a C

ticaea) W.P. G.
-

Ac-46,-

Governor.

•

•
FEDERAL RESERVE BANK OF KANSAS CITY
-r

42-

rczvcr

Nrr

1101-4.40e4oNtrafko4

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Federal Reserve Bank of St. Louis

916t
November 2, 1916.

Hon. W. P. G. Harding,
Governor, Federal Reserve Board,
Washington, D. C.
Dear Mr. Harding:
This will acknowledge receipt of your communication
of the 31st ultimo, and it is with pleasure we note that
in the opinion of the Board no liability is attached to
this bank on account of dividends accrued and due to banks
transferred from No. 11 district up to date of transfer.
Respectfully,

Asst. to Governor.

.,.........._.
EDCRAL RESERVE BOARD FILE
.
I

October 31, 1916.

Ur. J. L. Cress,
Assistant to Governor,
ftderal Reserve Bank,
Kansas Aty, Mb.
:oar
Reff!rrin, to your letter of October 313r4iin resard to
,
_;
1ahomabaiii- up to the time of trLz_sfev
for accrued dividenda dto
to distrlit No. 10.
oomellhat similar question arose it connection with the transfer
of corain banks from the Philadelphia to the New York district, but in
this ease the ftderal Reserve Banks concerned voluntarily entered into
an agreement under *bleb. the Now York Bank assured part of the expenses
of organization and current eximnses of the ,thiladelphia Bank, and the
iftiladelphia Bank al1ow6d as a set-off to such expenses a proportion
Other ?ederal Reserve Banks have been Dernittod
of its cross earnincs.
to make a similar adjustmont of accounts in cases where member balks
In each case, howhave been transferred from one district to another.
adjustment has been a matter of voluntary agreement and the
ever, this
Alderal Reserve Board is not of the opinion that it owl require, as a
matter of law, the ftderal Reserve Bank of Kansas City to assume any
part of the expenses of the Aoderal Reserve Bank of Dallas; nor does it
,
believe that it can require the 'Gderal Reserve Bank ot Dallas to pay
any part of its cross earnincs to the -'ederal Reserve Bank of Kansas
Oity.

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Federal Reserve Bank of St. Louis

.The Board Is, however, of the opinion that the ?ederal Reserve Bank
of Dallas is liable to the member banks transferred for unpaid dividends
up to the date of transOer, amd that the banks so transferred are entitled to present their claims for e.dh unpaid dividends to the ?ederal
Reserve Bank of Dallas, qhich Institution is beinc advisod accordingly.
.7°17 truly yours,

(Bigued)

IiiiiRt01}14

Governor.

FEDERAL RESERVE BOARD
WASHINGTON

October 26, 1916.

M.C.ELLI OTT
COUNSEL

ftr.CEIVED
SUBJECT.

Payment of accrued dividends to member
banks transferred from the Dallas to
the Kansas City District.

My dear Governor:-

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Federal Reserve Bank of St. Louis

OCT281916
GovenNows oFFica
el

•

I have examined the attached file in reference
to adjustment of accounts as betv.een the Federal Reserve
Bnk of Kansas City and the Federal Reserve Bunk of
The question submitted for the Board's consideration is whether the Federal Reserve 3ank of E-11a- shall
ray accrued dividends to its member banks which were transferred to the Kansas City District, or whether this indebtedness shall be assumed by the Federal Reserve Bank of
Kansas City.
A similar question aroJe in connection vbith the
transfer of certain banks from the Philadelphia to the New
York District and at that time this office cave an opinion
to the effect that

"The Act contains no provision determining the
cash surrender value of the stock of a member bunk
transferred to another district. Inasmuch, however,
as such banks continue as members of the Federal Reserve System, and have subscribed to the stock of a
bank with the understanding that their dividends are
to be cumulative, it would seem to be reasonable to
assume that Congress intended that such banks should
receive the same dividends as other banks which remain members of the System. In this view, a bank
transferred should receive an accrued dividend certificate from the Federal Reserve Bank whose stock

•
2

010

is surrendered, and such Federal Reserve Bank should
pay this certificate when its earnings are sufficient
to pay their stockholders their accrued dividends".
When certain banks in rev; Jersey were transferred
to the 1:ew York ristrict the Federal Reserve Banio of rew
York and Phil-Idelphia voluntarily entered into an aEreement
under which the rev. York Bank assumed part of the expenses
of orL,Anization an: current exrenses of the Philadelphia
Bank and the Philadelphia Bank allowed as set-off to such
expenses a proportion of ite gross earnino.

Other Federal

reserve bunks have been perLitted to make a similar adjustLent of accounts in cases where member banks have been transferred froL one district to another.

In each

case, how-

ever, this adjustment has been a matter of voluntary acxeeLent and in the opinion of this office the Federal Reserve
:oard cannot require, as a Latter of law, the Federal Reserve Bank of Kansas City to assuree any part of the expenses
of the Federal Reserve Bank of Dallas, nor can it require
the Federal Reserve Bank of Dallas to pay any part of its
cross earnings to the Federal Reserve Bank of Kansas City.
Each corporation is u separate entity and unless the two
Banks involved voluntarily enter into this a;reement the
mereber banks transferred are, in the opinion of this office,
entitled to present their claims for unpaid dividends,up to
the date of transfer, to the Federal Reserve Bank of Dallas.

pespectfully,

Hon. T. P. G. Harding,
oovernor.

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Federal Reserve Bank of St. Louis

f
v•
t

Ootober 25, 1916.

L.
rir. J. Is. Cross,
4csintoat to Cenrornor,
"isiedertitl Reserve Bank,
Kansas City, 1010.
/
Dear Oirs...
:437..ogs2.edzo rocolpt of yOUr Utter of tbe 23rd
instanttrOlitilli to dtvidamas due mp to time of transfer
to bar:1z tn Oldahoma thrtt Awe transi'orred from district
o.

11 to dIstric:tO. 10,"
,
..The ;natter 4as t00n reIrrea te 41olinve1 aniI will

sulcis7cx
14G aa

o
.
z t th

Boarz: to rul, on it nt ths next neet-

t:ha 27th LIstant.
Vor, traly zrorm,

c7orturnor.

FiLF

FEDERAL RESERVE BANK OF KANSAS CITY

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Federal Reserve Bank of St. Louis

TENJTH 0 I SI PR I C'T
-

itgLCIENtr**
OCT 2 5 1916
October 23, 1916.

SOVUNOR'S 0171011

Hon. W. P. G. Harding,
Governor, Federal Reserve Board,
Washington, D. C.
Dear Mr. Harding:
Referring to our conversation during the A. B. A.
acConvention in regard to the disputed liability for
to
crued dividends due to Oklahoma banks transferred
this district from No. 11:
There is attached hereto copies of exchanges of
Governor
communications between Mr. J. W. Hoopes, Vice
from which it
of the Dallas bank, and the undersigned,
will be noted that no headway has been made.

Our files

between the
contain nothing to show that by agreement
bank this matter
Federal Reserve Bank of Dallas and this
transfer or
was definitely disposed of at the time of
subsequent thereto.
case further than
We shall not attempt to argue the
ctfully requesting that
to submit the attached file, respe
ion and determination of
it have the immediate considerat
the Federal Reserve Board.
Respectfully,

Asst. to Governor.

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK of KANSAS CITY

October 3, 1916.

Mr. J. W. Hoopes, Vice Governor,
Federal Reserve Bank .of Dallas,
Dallas, Texas.
My dear Mr. Hoopes:
Several of our mutual friends, representing the banks
which were transferred from No. 11 to No. 10 district on
July 2, 1915, in attendance at the convention, brought to
our attention the fact that they had not, up to that time,
received dividends on their subscriptions to the capital
stock of your bank.
It so happens that the dividend payments which have
been made by your bank and this bank cover identical periods,
up to June 30, 1915, which is approximately the date of transfer.
It seems proper that the dividend liability up to that time
belongs to your bank, inasnuch as their stock subscriptions,
together with their reserve balances, were held by you as
operating capital. It would not seem possible for us to pay
the dividends accruing on this stock, because when the stock
was transferred to us it carried no portion of the earnings
in which it should have participated. Furthermore, we are
advised that the precedent has already been established in
this matter in connection with the banks transferred from your
district to District No. 6.
We believe that this matter should have immediate attention, and write to inquire if it is your pleasure to make payment of this dividend direct to the banks affected, or furnish
tills bank with a list of these dividends, together with funds
to be distributed.
Awaiting your advices, and with kind personal regards,
believe me,
Sincerely,
(Signed) J. L. Cross,
Asst. to Governor.

FEDERAL RESERVE RANK of DALLAS
October 7th, 1916.

Mr. J. L. Cross, Asst. to Governor,
Federal Reserve Bank of Kansas City,
Kansas City, Mo.
Dear Mr. Cross:
I have before me your letter of the 3rd:
Everything in connection with the A.B.A. Meeting at
Kansas City was exceedingly pleasant to me up until the time of
the receipt of your letter, and I find that the visit from officers
of some of your member banks resulted in bringing up an unpleasant
subject. Certainly the entertainment they were afforded there
should satisfy them and make them forget a mere dividend.
We were not under the impression that we had retained
any liability as to accumulated dividends on the stock of the
transferred Oklahoma members. You will perhaps recall that this
transfer was made on the same general agreement that was reached
by New York and Philadelphia. This agreement, as we have it, is
as follows:
EXPENSE OF ORGANIZATION.
"The Federal Reserve Bank of New York agrees to assume
such part of the expense of organization of the Federal Reserve
Bank of Philadelphia as the capital of the banks to be transferred
bore to the total capital of the banks in District No. 3 at the time
the assessment was levied by the Federal Reserve Board in November,
1914. Expense of organization is not to include cost of furniture
and fixtures or cost of printing and shipping Federal Reserve Notes.
CURRENT EXPENSE.
The Federal Reserve Bank of New York agrees to assume
such proportion of the current expenses of the Federal Reserve
Bank of Philadelphia as the capital paid in by and deposits to
the credit of the banks to be transferred bears to the total
capital paid in by and deposits to the credit of all of the member
banks in District No. 3 at the close of business June 30th, 1915.
GROSS EARNINGS.
The Federal Reserve Bank of Philadelphia agrees to allow
as a set-off to the expenses above named, such proportion of the
(1,4R 1Federa1 Reserve Bank of Philadelphia as the
gross earnings of
Capital paid in brne deposits to the credit of the banks to be
transferred bears to the total capital paid in by and deposits to
the credit of all the member banks in District No. 3 at the close
of business June 30, 1915."

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Federal Reserve Bank of St. Louis

-2We have in our files the following copy of the adjustment of this Transfer:
ADJUSTMENT OF ACCOUNTS WITH FEDERAL RESERVE BANK
OF KANSAS CITY

ORGANIZATION EXPENSE $24,720.05 Trans. capital, 1st paymt. Nov., 1914
Dallas Capital

$63,500 $ 1,660.20
882,000
23,059.85

CURRENT EXPENSE 30th - $68,214.87 Trans. capital and deposits $615,300
"
Dallas
8,943,500

4,391.02
63,823.85

GROSS EARNINGS - $95,075.11 -

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Federal Reserve Bank of St. Louis

Trans. capital and deposits
Dallas Capital and deposits

615,300
8,943,500

6,119.98
88,955.13

Kansas City part of expense Organizaticn
Current

$1,660.20
4,391.02
6,051.22

Kansas City part earnings
Earnings

6,119.98
68.76 Amount due K. C.

When the Louisiana members were transferred to Atlanta
we had already paid them one dividend; we then paid Atlanta the
book value of the stock at the time of transfer.
We cannot agree with the light before us that we are liable
to you or to the transferred members for any accumulated dividends.
We were under the impression that the entire matter was
closed insofar as we are concerned. Have you any correspondence
from the Board that would indicate that our impression is incorrect?

-3-

you
I am sorry, indeed, that I did not get to be with
visit to Kansas City. We had an unsually large
more during my
time I got
representation from the Eleventh District, and by the
the meetings of the secthrough visiting with them and attending
country boy
tions and the Association, it was about time for a
course, I did early in the
like myself to go to bed, which, of
evening.

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Federal Reserve Bank of St. Louis

With every good wish,
Sincerely yours,

(Signed) J. W. Hoopes

Vice Governor.

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Federal Reserve Bank of St. Louis

•
FEDERAL RESERVE BANK of KANSAS CITY

October 13, 1916.
Mr. J. W. Hoopes, Vice Governor,
Federal Reserve Bank of Dallas,
Dallas, Texas.
My dear Mr. Hoopes:
Your letter of the 7th received, and
much that it is not possible to reconcile
regard to the matter of dividends due the
which were transferred from No. 11 to No.

I regret very
opinions in
Oklahoma banks
10 district.

We fail to find in our office the agreement whereby
the transfer was to have been made upon the basis of the
New York - Philadelphia agreement outlined by you. Neither
do we find in our files a statement displaying figures
mentioned in your letter which were computed to show the
net amount of $68.76 due Kansas City under the terns of
the New York - Philadelphia agreement.
We do find, however, that there was an agreement
entered into between Mr. Van Zandt, your Governor, and
gr. Sawyer, at that time Governor of this bank, which,
for your information, is quoted.
"The question as to whether the Federal Reserve Bank of Kansas City or the Federal Reserve
Bank of Dallas should assume liability for accrued dividends to member banks from date of
organization to July 1, 1915, has not yet been
determined by the Federal Reserve Board. The
Board will later decide which of the Federal Reserve Banks should assume liability, and will then
authorize such Federll Reserve Bank to issue the
accrued dividend certificates."
Mr. Sawyer contends that the matter has never been
taken up since this agreement was entered into.
If your files contain the original of any agreement
other than this, will ask that you please forward copies
to us, and unless it is found that this matter was definitely disposed of at the time, we must insist upon our
position, as we feel it is well grounded.
Awaiting your further advices, and with best wishes,
believe me,
Sincerely,
(Signed) J. L. Cross,
Asst. to Governor.

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK of DALLAS

October 16, 1916.

Mr. J. L. Cross, Assistant Governor,
Federal Reserve Bank,
Kansas City, Mo.
My dear Mr. Cross:
We have your letter of the 13th, again referring
to the matter of accumulated dividends due the transferred
Oklahoma banks.
We have in our files, of course, the information
which you quoted. I take it, however, that Mr. Sawyer has
overlooked the fact that the details of this matter were
settled afterwards when Mr. Broderick was there. The agreement
was made that it should be handled on the same basis as the
Philadelphia and New York transfer. The Federal Reserve Bank
of New York assumed the dividend liability of the banks formerly
in the Philadelphia district.
It has been our understanding that you assume the
dividend liability of the transferred Oklahoma members.
While we dislike very much to disagree with any
conclusions you may reach, we must deny liability for these
dividends.
With every good wish,
Cordially yours,

(Signed)

J. W. Hoopes,

Vice Governor.

FEDERAL RESERVE BANK of KANSAS CITY

October 18, 1916.

Mr. J. W. Hoopes, Vice Governor,
Federal Reserve Bank of Dallas,
Dallas, Texas.
My dear Mr. Hoopes:
Your letter of the 16th instant received, and it is somewhat disconcerting to note the emphatic impressions which you
appear to have gained to the effect that the matter of the dividend liability to the transferred banks was definitely determined and placed upon this bank. In my letter of the 13th instant, I requested that you forward to us copies of any agreements which may be contained in your files other than the one
quoted in my letter touching this subject. Purposely or otherwise you omitted to do this, and it is now noted that you claim
the details of this matter were settled when Mr. Broderick was
here. Mr. Sawyer does not remember to have discussed this matter
with Mr. Broderick, and it is quite impossible that it would
have been discussed with him to any final conclusion; but if
you have any memoranda in your files which would tend to support
your claim, may we not request that we be tarnished with copies
thereof, as certainly no headway can be made in the settlement
of this matter by continuing argument between ourselves. We
maintain just as firmly our position and deny just as emphatically
the responsibility as does your bank.
It seems to us that this matter has been definitely disposed
of by an opinion of Judge Eliot which was published in the January
Bulletin, an excerpt from which we quote you;

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Federal Reserve Bank of St. Louis

"Where stock is surrendered on account of a transfer
of membership of a member bank to another Peden.l reserve
bank by reason of a chan6e in the geographical limits of a
Federal reserve district, aslightly different situation
results. In this case the surrender of the stock results
from the action of the Federal Reserve Board in changing
the districts, rather than from the voluntary action of
the member in reducing its capital or surplus or in going
into liquidation. The act contains no provision determining the cash surrender value of the stock of a member bank
transferred to another district. Inasmuch, however, as
such banks continue as members of the Federal Reserve System, and have subscribed to the stock of a bank with the
understanding that their dividends are to be cumulative,
it would seem to be reasonable to assume that Congress intended that such banks should receive the same dividends

-2
-

as other banks which remain members of the System. In
this view, a bank transferred should receive an accrued
dividend certificate from the Federal Reserve Bank whose
stock is surrendered, and such Federal Reserve Bank should
pay this certificate when its earnings are sufficient to
pay their stockholders their accrued dividends."

To be perfectly frank with you, this bank had never given
a thought to this proposition until it was brought up, as previously stated, by some of the banks affected during the recent
convention. The matter was at that time mentioned to one of the
members of the Federal Reserve Board, who happened to be here,
and it was his suggestion that we took the matter up direct with
you; and the language in my first letter should be sufficient to
convince you that we had no other idea than it would be entirely
agreeable to you to make prompt settlement of these dividends.
We had hoped that this matter would be adjusted without an appeal
to the Board, but if it is your purpose to stand by your position,
please advise us to this effect and we will refer the matter.
Assuring you that we have only the very best feeling in the
matter and are actuated by the motive to best serve the interests
of our own stockholders, and with kindest personal regards,
believe me,

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Federal Reserve Bank of St. Louis

Sincerely,
(Signed) J. L. Cross,
Asst. to Governor.

FEDERAL RESERVE BANK of DALLAS

October 21, 1916.

Mr. J. L. Cross, Assistant to Governor,
Federal Eeserve Bank of Kansas City,
Kansas City. Mo.
My dear Mr. Cross:
If my letter of the 16th was of such a positive nature
as to disconcert you, I certainly owe you an apology, because I
:
did not intcnd to write any such letter. 74 is needless for me
to assure you that we all have only the very best wishes for the
officers of your bank and for the institution itself.
Like you good people, we had never given a thoughtto
our being responsible for accumulated dividends. It never once
entered our minds that this opinion was held by anyone. Under
date of May 8th, 1915, the Board wrote our Federal Reserve Agent,
in part, as follows:
"It was the thought of the Board that all other
Federal reserve banks which are affected by transfers from one district to another, might, if they
chose, follow the plan adopted by the New York and
Philadelphia reserve banks, and approved by the
Federal Reserve Board."
As I have indicated in my previous letter, the Federal
Reserve Bank of New York assumed liability for the accumulated
dividends due the banks transferred from Philadelphia. The same
plan was followed by Atlanta when the Southern Louisiana banks
were transferred from here to the Sixth District.
It would be perfectly satisfactory to us for you to
take this matter up with the loard, for, as I have indicated
before, we do not feel that we are liable for any dividends to
the banks transferred to Kansas City.
Again expressing my personal regret at our inability to
agree with your conclusions, and awaiting your further advice after
you have heard from the Board,
Respectfully,
(Signed)
JWH-JWF.

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Federal Reserve Bank of St. Louis

J. W. Hoopes,
Vice Governor.

•-

RE BOA '111111.2.
FEDERAL RESERVE BAN
OF DALLAS

7;191
1)1:1-44;r
- 0
SOVFRNOR'S 0: FrV

July 5, 1916.
Yr. C. S. Hamlin, Governor,
Federal ,eserve Board,
Washington, D. C.
My dear Sir:Receipt is acknowledged of yours of
28th
reference to the adjustment of earnings and expenseS"Seteen
the Federal Reserve Bank of Dallas and tie Federal Reserve Rank
of Atlanta in connection with the transfer of certain banks.
• I have noted the suggestion made by the Board as to the
payments to be made by this bank to the Atlanta Bank on the liquidating value of the stock and the matter will be handled in
accordance with this augL;estion.
Very truly yours,
WFR/RDT.

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Federal Reserve Bank of St. Louis

OMARAmm

Federal Reserve Agent.

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Federal Reserve Bank of St. Louis

.
13

VC:.SEtT.IE BerVt-t0

June 28, 1916.

1:r. W. F. Ramsey,
Federal Reserve 4gent,
Dallas, Texas.
Dear !Ir. ramsey:Your letter of :(lay 8th

forwarding a letter to you

from Governor Van Zandt on the adjustment of earnings and expenses
between the Federal Reserve Bank of Dalls and the Federal :lesorve
Bank of Atlanta in connection with the transfer of certain banks,
has had carefal consideration.
It has been suggested that the Federal Reserve Bank of
Dallas pay to the ,,tlanta bank the lit,!uidating value of the stock,
(it being understood, of course, that the par value h;.is alread:i
bean paid) plus one-half of the difference between the liquidating
vUlle and interest at the rate of six per cent from June 30, 1915,
to April 29, 1916, upon the reserve stock investment of the banks
transferred to the

tlanta District.

The adjustment of earnings and expenses should be
made as of April 29, 1916.
Very truly youre,

Governor.

In.
-,(0'8
(-OFFICIO MEMSERS

CHARLES S. HAM UN. GOVERNOR
FREDERIC A. DELANO, VICE GOVERNOR
PAUL II. WARBURG
W. P.O. HARDING
ADOLPH C. MILLER

_LIAM G. McADOO
SECRETARY OF THE TREASURY
CHAIRMAN
JOHN SKELTON WILLIAMS
COMPTROLLER OF THE CURRENCY

FEDERAL RESERVE BOARD

H. PARCEL
SECT,TAPY
SHERMAN ALLEN. ASST. SECRETARY
ADDRESS REPLY TO

WASHINGTON

FEDERAL RESERVE BOARD

June 23, 1916.
MEMORANDUM FOR MR. ULANO:

In re, adjustment of earnings and expenses in connection with
transfer of banks from the Dallas to the Atlanta District.

1, Date_ effective.

The Federal Reserve Board specified April 1st as the

date upon which the transfer

would be effective.

Owing to delay, ap-

proval on the transfer was not received from the Federal Reserve Board
until April 27th, at which time the Federal Reserve Bank of Dallas gave
credit on its books to the Federal Reserve Bank of Atlanta for the amount
of capital stock payments involved.

The advice of this credit was received

by the Federal Reserve Bank of Atlanta on April 29th, at which time the Atlanta bunk issued its stock certificates to the banks transferred.
In the opinion of the undersigned, the adjustment of earnings and
expanses should be made as of April 29th, which is believed to be fair, in
view of the further fact that actual payment, apparently, was not received
through the Gold Settlement Fund until May 4th.

2, M fqh0A-9)...Ati.APtiVittb
(
Atkanta.. Gov. McCord in his letter to Gov. VanZandt refers to
opinion of counsel which was printed in the January 1916 Bulletin.

Gov.

McCord states "It would seem from this that the necessary procedure is for you to
issue to each of the banks that have been transferred to this bank,
a certificate for deferred dividend, presuming that you would figure
the dividend at 6% per annum from the date you received the money
until the 29th day of April, 1916, the day that we received advice
from you that our account had been credited. Then you would deduct
from that dividend - cumulative - so much as you have paid them in
cash."

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Federal Reserve Bank of St. Louis

Page 20

Dallas" Gov* VanZandt is apparently reluctant to follow the proceduro outlined in counsel's opinion without explicit instructions from the
Federal Reserve Board.

In his opinion the fair and equitable method is for

the Dallas bank to pay to the Atlanta bank the liquidating or book value of
the stock surrendered, the Atlanta bank assuming liability for back dividends.

This is in line with the plan adopted by the New York and Philadel-

phia banks in connection with the transfer of the New Jersey banks to the
New York district*
The estimated amount due upon stock surrendered by the banks
transferred to the Atlanta bank, on the basis of 6% interest to the date of transfer is
.•

•••

The dividend paid to June 30, 1915 is

$4,600.
1 500.

Net amount due -

$3,1000

On the basis of the liquidating or book value, the amount of
interest or premium, is estimated at -

$2,500.

Less amount paid to June 30, 1915

1,500.

Net amount due - -

$1,0000

Therefore, the amount in question is about -

$2,100*

Under the plan suggested by Gov. McCord, the Dallas bank would
issue,to the bunks transferred, dividend certificates.

Under the plan

suggested by Gov. VanZandt, payment of $1,000 would be made to the Atlanta bunk, which bank would assume full responsibility for dividends
from June 30, 1915 instead of April 29, 1916.
The plans adopted with respect to other transfers may be of interest*
1. New York and P.N.lade3„21lia... The Nea York bunk assumed a portion of the
organization expenses and the accumulated deficit to June 30, 1915, in the
proportion which the capital stock surrendered by the banks transferred bore
to the total capital stock of the Federal Reserve Bunk of Philadelphia.

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Federal Reserve Bank of St. Louis

•

Page 3.

other words, the Philadelphia bunk paid to the New York bank the book value
of the stock surrendered, and the New York bank assumed liability for back
dividends,
2. Richmond and ClevelandA The Richmond bank has paid in full, dividends
.
at the rate of 61. upon stock surrendered by banks transferred to the Cleveland district.

In this case there were but few bunks transferred, and the

earnings of the Richmond bank, apparently, were sufficient to cover the
dividend requirements,
.1A_KpApps City-Dallas.

A transfer of bunks was made on June 30, 1915,

that time the liquidatim or book value of the stock of the Federal Reserve
,
Bank of Dallas was about par, the earnings having been sufficient to cover
the current and organization expenses.

No request has been made by the Kan-

sas City bunk for any adjustment, and the question as to whether or not the
Kansas City bank is liable for dividends prior to June 30, 1915 on the stock
of the banks transferred has not been settled between the two banks.
4. B.pAton 40 New Yolk._

There is no record of any adjustment between the

Boston and New York bunks with respect to the transfer made on or about
April 1st.

It is presumed, however, that the adjustment has been, or will

be, made alonz , the lines of the book value of the stock of the Federal Re7
serve Bank of Boston,
In all instances where the question has been raised, settlement has
been made to the mutual satisfaction of the reserve banks.

No definite rul-

ing has been made by the Board, nor has the opinion of counsel been acted
upon by the Board.
A fair compromise between the Dallas and Atlanta banks would be for
the Dallas bank to pay to the Atlanta bank the liquidating value of the
stock,(it being understood, of course, that the par value has already been

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Federal Reserve Bank of St. Louis

Page 4.

paid) plus one-half of the difference between the liquidating value
and interest at the rate of six per cent from June 30, 1915, to April
29, 1916, upon the reserve stock investment of the banks transferred
to the Atlanta District.

If, however, this is not satisfactory, and

the ruling of Counsel is not binding, the undersigned is of the opinion
that the plan suggested by Mr. Van Zandt is fair and equitable;

the

adjustments to be made as of April 29, 1916.
As long as the matter is under consideration, it is also respectfully suggested that an agreement be reached between the DLllas and Kansas
City banks as to tne liability for dividends prior to June 30, 1915, on the
stock of banks transferred on that date from the Dallas to the Kansas City
district.

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Federal Reserve Bank of St. Louis

Respectfully submitte,i,

1.
22
FEDERAL RESERVE BOARD
WAS
June 22, 1916.

My dear Mr. Broderick:
The enclosed papers were handed to me by
Mr. Harding yesterday, and it has occurred to me that
you might be able to suggest some fair and proper
basis of settlement or of compromise between the
Dallas and the New Orleans Banks.
Yours very truly,

Mr. J. A. Broderick,

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Federal Reserve Bank of St. Louis

Chief, Division of Audit
and Examination.

(-0 L.I"- ss/s//

•
FEDERAL RESERVE BOARD
WAS

June 6, 1916.

:y •dear 0-overnor:After the Board entered orders readjusting some
of the Federal reserve districts this office prepared an
opinion in reference to the mode of procedure involved
in the transfer of membership of the banks affected by
the change in the lines of the districts. It was suggested in that opinion that banks surrendering stock in a Federal reserve bank in order to become members of another
Federal reserve bank should receive from the bank from
which they withdrew a certificate for dividends accrued
to date of transfer and these dividends should be paid
as and when other stockholders of such banks were paid
their dividends.
In adjusting accounts, however, between the
several Federal reserve banks this method was not followed, as I understand it, by the New York and Philadelphia
banks nor by the Richmond and Cleveland banks. The Dallas
and Atlanta banks have not finally adjusted their accounts
but a short time ago had tentatively agreed on a settlement. Mr. McCord, however, has notified Mr. Van Zandt
that in view of the opinion given by this office settlement should be made on that basis.
In conversation with :r. Van Zandt I told him
that I would call the matter to your attention and that
as the other banks had not been required to pursue this
course the Board would probably consider the question
of adjustment of accounts between the Dallas and Atlanta
banks along lines substantially similar to those approved
in the case of the other banks.

S/4104

I am handing you memorandumj prepared by Mr.
Van Zandt which sets forth his position.
Very sincerely,

Hon. Charles S. Hamlin,
Covernor.

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Federal Reserve Bank of St. Louis

tuat.
MEMORANDUM FOR JUDGE M. C. ELLIOTT

ID: R. L. VAN ZANDT

SUBJECT: Adjustment of Earnings and Expenses

The opinion of Counsel for the Federal Reserve Board,
under date of December 20, 1915, is to the effect that inasmuch
as banks, which are transferred from one district to another by
order of the Federal Reserve Board, "continue as members of the
Federal Reserve System and have subscribed to the stock of a
bank with the understanding that their dividends are to be cumulative, it would seem reasonable to assume that Congress intended
that such banks should receive the same dividends as other banks
which remain members of the System".

It then states that "In

this view a bank transferred should receive an accrued dividend
certificate from the Federal Reserve Bank whose stock is surrendered, and such Federal Reserve Bank should pay this certificate
when its earnings are sufficient to pay other stockholders their
accrued dividends".
The first part of the above excerpt is undisputed, for
it is an evident fact that a bank should suffer no eventual loss
by following the instructions of the Organization Committee and
subscribing for stock in one Federal Reserve Bank when, in the
opinion of the Federal Reserve Board, it should have been attached to some other district and should have subscribed for
stock in another Federal Reserve Bank to which it is transferred

80-

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Federal Reserve Bank of St. Louis

-2in the readjustment of district lines by the Federal Reserve
Board.
However, we do not concur in the latter oart of the
opinion, which states that the Federal Reserve Bank whose
stock is surrendered should be required to use its depleted
assets to earn dividends for its own shareholders and, in
addition, the dividends for the transferred banks which had
not been earned at the time of transfer.
We do not consider such a method just and equitable,
and do not feel authorized to furnish said accrual certificates
and dispose of a part of the earnings belonging to our remaining shareholders without direct, explicit instructions to do so
from the Federal Reserve Board.
As an exaggerated example of how the method would
work out in accordance with the above opinion, we will suppose
that the Organization Committee had arranged the districts so
that Reserve Bank "X" and Reserve Bank irlr" each had a paid up
capital of ton million dollars and reserve deposits of twenty
million dollars.

Also that after the first year's operations

each bank had succeded in paying all of its organization and
current expenses and the book value of its stock was exactly
par.

Now suppose the Federal Reserve Board, in its review
and readjustment of the work of the Organization Committee,
should decide that certain banks in district "X" should have

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Federal Reserve Bank of St. Louis

been attached to district "Y", and accordingly transfers banks
with stockholdings of five million dollars and reserve deposits
of ten million dollars from Reserve Bank "X" to Reserve Bank irY",
after which Reserve Bank "X" would have five million capital and
ten million deposits, or a total working capital of fifteen million dollars, and Reserve Bank "Y" would have fifteen million
capital and thirty million deposits, or a total working capital
of forty-five million dollars, or three times as much as "Y".
Question:

Is it just and equitable that Reserve Bank "XP, with

its fifteen millions of working capital, should be required to
make up exactly the sage deficiency in earnings as Reserve Bank
itY" with its forty-five millions of working capital?

The answer

is evident.
Now, in our opinion, an absolutely equitable manner in
which to adjust the transfer is as follows:
Consider that the banks transferred should have been
originally, members of the district to which they have been
transferred.

Also that in the hands of the Reserve Bank to

which they were originally assigned their capital stock payments
had, up to the date of transfer, earned a certain amount.

Then

on the date the transfer is effective, the exact book value of
the stock should be computed and the par value of the stock
should be paid over by Reserve Bank "X!' to Rr,serve Bank "Y", together with the amount of the net earnings On such date.

These

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Federal Reserve Bank of St. Louis

-4net earnings should be added to the net earnings of Reserve
Bank irY" and the transferred banks should be placed in the same
position as they would be if their original stock subscriptions
had been with Reserve Bank PrY".
It naturally follows that if Reserve Bank "X" had
not succeeded in earning enough to pay its organization and
current expenses up to the date of transfer, then Reserve Bank
"Y" should assume and pay to Reserve Bank "X" the pro rata part
of the deficiency.
There being nothing in the Federal Reserve Act bearing
on this matter equity must govern, and the Federal Reserve Banks
cannot assume the responsibility of adopting any other than an
absolutely equitable method of procedure in adjusting the earnings and expenses between them in the case of transfers of banks
from one Federal Reserve District to another.

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK
OF DALLAS

May 8, 1916.

Federn1 Reserve Board,
Washington, D. C.
Gentlemen:
Please note the attached letter from
R. L. Van Zandt, Governor of this Bank, as well as
the memorandum headed "Adjustment of Earnings and
Expenses" referred to in his communication.
We had some discussion of this matter with
Judge Elliott while he was here on last Friday. There
seems to ne to be some merit- certainly very great equity
in Governor Van Zandt's contention. It seems to be conceded
by Judge Elliott that there is no expressed provision in the
law supporting his decision or governing the question.
In view of this conceded fact, and out of
deference to Governor Van Zandt's strong insistence and
very definite views, I have supported him in the action
taken that he would be justified in withholdimg the
issuance of approved dividend certificates until a
definite direction to this effect was received from you.
In view of all ,the facts we respect:N.11y
suggest a careful re-consideration of the question, Rn0
that you give us as early and as reasonably practicable
definite instructions in the matter.
Respectfully,

Enolosures.

44
1
4. 4,
Federal Reserve Agent,.,
cA 113
. ,,0
try

471 1).?
4.
,
,

r IN%

•
FEDERAL RESERVE BANK
OF DALLAS

R. L. VAN ZANDT, GOVERNOR
J. W. HOOPES, VICE-GOVERNOR
LYNN P. TALLEY, CASHIER
SAM R. LAWDER, ASST. CASHIER

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Federal Reserve Bank of St. Louis

May 8, 1916.

My dear Judge Ramsey:
Referring to the conversation which I had with
Judge Elliott on Friday last, in your presence, relative
to the adjustment of earnings and expenses between this
bank and the Federal Reserve Bank of Atlanta in accordance
with Judge Elliott's opinion, as published in the January
issue of the Federal Reserve Bulletin, I have prepared a
memorandum relative thereto, which is being handed you
herewith, and will appreciate it if you will take the matter up with the Federal Reserve Board at your earliest convenience.
We are anxious to have this matter adjusted without delay, as is also the Federal Reserve Bank of Atlanta,
and we, therefore, desire explicit instructions from the
Federal Reserve Board as to how the earnings shall be adjusted and to what date shall they be adjusted.
In this connection, the order of the Federal
Reserve Board made this transfer effective on April 1,
1916. Owing to delay, brought about largely by reason of
the fact that the Federal Reserve Bank of Atlanta did not
promptly forward the applications for transfer of stock
to the Federal Reserve Board for their approval, we were
not advised of the Board's approval of these transfers
until April 27th, on which date we charged our suspended
capital account and credited the Federal Reserve Bank of
Atlanta with the amount of capital stock payments involved. The advice of this transfer of funds did not
reach the Federal Reserve Bank of Atlanta until April 29th.
Therefore, there are three dates involved, and the exact
date should be decided by the Federal Reserve Board.
Yours very truly,

-e
Govern
Hon. W. F. Ramsey,
Federal Reserve Agent,
Buildin g.

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Federal Reserve Bank of St. Louis

•
ADJUBTUENT OF EARNINGS AND EXPENSES

It then states that "In

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Federal Reserve Bank of St. Louis

•
-2opinion, which states that the Federal reserve bank whose
stock is surrendered should be required to use its depleted
assets to earn dividends for its own shareholders and, in
addition, the dividends for the transferred banks which had
not been earned at the time of transfer.
We do not consider such a method just and equitable,
and do not feel authorized to furnish said accrual certificates
and dispose of a part of the earnings belonging to our remaining shareholders without direct, explicit instructions to do so
from the Federal Reserve Board.
As an exaggerated example of how the method would
work out in accordance with the above opinion, we will suppose
that the Organization Committee had arranged the districts so
that Reserve Bank "X" and Reserve Bank "Y" each had a paid up
capital of ten million dollars and reserve deposits of twenty
million dollars.

Also that after the first year's operations

each bank had succeeded in paying all of its organization and
current expenses and the book value of its stock was exactly
par•
Now suppose the Federal Reserve Board, in its review
and readjustment of the work of the Organization Committee,
should decide that certain banks in district 'rX" should have
been attached to district "Y", and accordingly transfers banks
with stockholdings of five million dollars and reserve deposits
of ten million dollars from Reserve Bank "X" to Reserve Bank "Y",

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Federal Reserve Bank of St. Louis

•
after which Reserve Bank "X" would have five million capital
and ten million deposits, or a total working capital of fifteen
million dollars, and Reserve Bank "Y" would have fifteen
million capital and thirty million deposits, or a total working
capital of forty-five million dollars, or three times as much
as "X".

Question:

Is it just and equitable that Reserve Bank

"X", with its fifteen millions of working capital, should be
required to make up exactly the same deficiency in earnings as
Reserve Bank "Y" with its forty-five millions of working capital?

The answer is evident.
Now, in our opinion, an absolutely equitable manner in

which to adjust the transfer is as follows:
Consider that the banks transferred should have been
originally, members of the district to which they have been
transferred.

Also that in the hands of the Reserve Bank to

which they were originally assigned their capital stock payments
had, up to the date of transfer, earned a certain amount.

Then

on the date the transfer is effective, the exact book value of
the stock should be computed and the par value of the stock
should be paid over by Reserve Bank "X" to Reserve Bank "Y", together with the amount of the net earnings on such date.

These

net earnings should be added to the net earnings of Reserve Bank
"Y" and the transferred banks should be placed in the same position as they would be if their original stock subscriptions had
been with Reserve Bank "Y".

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Federal Reserve Bank of St. Louis

•

-4It naturally follows that if Reserve Bank "X" had
not succeeded in earning enough to pay its organization and
current expenses up to the date of transfer, then Reserve
Baia "Y" should assume and pay to Reserve Bank "X!' the pro
rata part of the deficiency.
There being nothing in the Federal Reserve Act
bearing on this matter equity must govern, and the Federal
reserve banks cannot assume the responsibility of adopting
any other than an absolutely equitable method of procedure
in adjusting the earnings and expenses between them in the
case of transfers of banks from one Federal Reserve District
to another.

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Federal Reserve Bank of St. Louis

Your letter of June 16, enclosinc. letters Zrom
1
W. 11. Aar/Pisan. ::::orotary of the Oklahoma Bankers' A3socizA3on, aad others, dtzlting tho 'wishes of the 1;anl:s
in .)ohnston Ooantj is,
:artliag the distrIctine question,
has been rooelved and road to the 7aaerc1 Eeserve 30ard.
The Joara

6iven very aaroi:al coustderatien to this

olo matter; and I waa directed to say that, in vier
of all thooonditiJna, it felt that it could net now reconsider tho decision alroady arrived at, althouLh api,
rociating very Allay tho facts ;3onNeyol in t . letters
;.c

nomerable Robert L. Owen,
United I:Autos Senate,
':,:anington, b. 04.

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Federal Reserve Bank of St. Louis

••ti

June 21, 1915.

Sir:
In answer to your letter of _q,Upgjiin res-iect to Lhe form of payment to be employed by the
Federal Leserve 3ank of Dallas in settling; with your
ic for the stock md reserves of lamber batiks
transferred to the Kansas City District, you are ad1414.1or

a..

vised that this nu"6ject has been dealt Ivith in
forms governing the methods of transfer, which have
already been transmitted to you under date of June 16.
7As1)ectf1'11y,

Secretary.

Mr. J. Z. Mier, Jr.,
Chairman, Board of Directors,
Federal Reserve Bank of 1:ansas City.

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD
OFFICE OF COUNSEL

DATE:

June 19th, 1915.

SUBJECT:

MEMORANDUM FOR THE SECRETARY:
The inquiry submitted by Mx.
Miller in the attached letter of June
gthlis answered in forms sent to the
---1
Federal raaerve banks.

I would sth;zest

merely referri% to this fact in acknowledzment of this latter.

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Federal Reserve Bank of St. Louis

IDIFED'.13AL F'..-- ,.P.VE BOARD MI
.r
FEDERAL RESERVE BANK
OF DALLAS

June 19,191L.

Federal aeserve Board,
7as
Gentlemen:
have your wire relatin: to liability
for accrued dividends to :'ember banl:s from dzte
of organization to July first.
We note that you will make your determination at a later date.
-le are

Very truly yours,

•

Deputy Federal Reserve 2,:s.ent.

71IcC/11SI:

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Federal Reserve Bank of St. Louis

"7FRVE BOARD FILE
FEDERAL RESERVE

BANK

OF DALLAS

June 19,1915.

Federal Reserve Board,
Washington,D .C.
Gentlemen:
acknowledge receipt of yours of
the sixteenth instant, enclosing copies of
-

forms and instructions relative to transfer
of member banks under the recent re-districting decisions.
shal I be guided thereby.

Yours very truly,

Deputy Federal Reserve Agent.

7;1
7McCir_SK

6t4,

k
OFFICERS:
C H01 SAWYER,GovERNoR
. M.

JEROMETHRALLS,SECRETARY —Ca

: tA;AL EI ft

..........._........................_

DIRECTORS:

J.Z. MIL1P MA rv
RESVANLD
AGENT.
FEDERAL

TWOS.E3YR NE a
CMAMA, NEBR.
ARFIGILIN JONE. ,DEI,EF
0
M.L 1,1 17t LURE, A5 CI
,
o.
R. H.MALONE, DENVER ,COLO.
L.A.WILSON, EL RENO,OKLA.

ASA E. RAMSAY,
DcpurrFEDERALlicsuwEAGENT.
W. J. BAILEY, Arch

FEDERAL 1 ESY:RVE BANKoFlaNsits CITY
/DISTRICT NO. 10.

KAS.

C. E.B URN HAM, NORFOLK, NEBR.

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Federal Reserve Bank of St. Louis

June 18th,

1 91 5

Er. H. Parker Willis, Secretary,
Federal Reserve Board,
Washington, D. C.
Dear Sir:6ici I
I have your telegrepu /
with regard to preparing—papers in
the transfer of the Oklahoma member
barks. from the Federal Reserve Bank,
of Dallas, to the Federal Reserve Bank,
of .Kansas City.
We expect Governor Van Zandt
of Dallas, and Er. Broderick to be
with us here next Tuesday, at which
time we will complete the papers
necessary to be sent out in the
transfer of these banks.
Very truly yours,
alS-11

Governor.

•

ROBERT L. OW!"N , OKLA., CHAIRMAN.
GILSFRT M. HITCHCOCK,NEBR. KNUTE NELSON,MINN .
JAMES A .0'0ORMAN , N.Y.
JOSEPH L BRISTOW,HANS.
JAMES A . RFED, MO.
COE I CRAWFORD,S.DAK
ATLEE POMERENE,OHIO
GEORGE P. MC LEAN,CONN .
JOHN F. SHAFROTH,COLO.
JOHN W. WEEKS, MASS .
HENRY F. HOLLIS, N. H .

UNITED STATES SENATE,

JAMES W.SE, LER,CLERK ,

COMMITTEE ON BANKING AND CURRENCY.

0-2
June 10, 1915.

The Federal Reserve Boai,
Treasury Department,
Thshinton, D.C.
Gentlemen:I have the honor to enclose letters fro 1. B. Harrison,
,r,
Secretary of the Oklahoma Bankers Association, and others, pointing
out that the over:helming majority of the banks in Johnston County
desire to be transferred to the Kansas City District.

I believe in

the principle laid down by the 7ederal Reserve Board that where
three-fourths of the bankers desire to be transfer-eJ to the Kansas
City district, and only one-fourth to the Dalas district, the
overwhelming majority should control.

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Federal Reserve Bank of St. Louis

Yours very truly,

•

/
TREASUOi DEPARTMENT TELEORAM.

WHERE WRITTEN:

Washington,

.;:-.wit
,
.
r
Cbarloe
Governor,
Vederal nonorTo
RAlleas City,

.!:01

Approved ?arms were !lent 711 7estnrioy for use in transfer of Eteultu.;? )124.11.
,
It It, Importa:It
or
nhnnid be La ths Irvada of opecibor 11-m1;a aa
o!3,rty As rosAna* vc thnt h'onlviry retAellitiou4 moy be pa600d 'oofore 441y first.
It i* anguestea, thorstr)ro, thlt tho ?ndoasal l'!9*erve ;Oink of
nsas Avy al:r:44ce
to havofl nmeasnry more printnA and thnt thq Padova i,
111nor7o bank
;411a3
sizn P.nd rorlArA tur? of joInt letter of instruoiaons to mwf,Dor Itanke 4.14d 4utliarize
tNe ?edoraI neacevl ?kink of ft1J15•13 A.ty to smtd out these forms - 101 joiwt lettr over tha
4
prInted siFnatlIre of both baakn. ze:penso* iaoLloat to transrt3r and ..i.d(t3taAnt of sooounta betwseu the toe Po4eral 144sorveL.r.ksoan
sllb;tevevtly trTsneedm

3aorstitazy.

OFFICIAL BUSINESS.
GOVERNMENT RATES.
CHARGE TREASURY DEPARTMENT, APPROPRIATION FOR
2-6S27
The appropriation from which payable must be stated on above line.

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Federal Reserve Bank of St. Louis

DEPARTMENTAL STOCK FORM 212EL

•

FF;

FEDERAL RESERVE BANK
OF DALLAS

R. L. VAN ZANDT, GOVERNOR
J. W. HOOPES, VICE GOVERNOR
LYNN P. TALLEY, CASHIER

"ne 17, 1915.

Mr. H. Parker Willis, Secretary,
Federal Reserve Board,
Washington, D. C.
Sir:
krt
We are today in receipt of your TEsaa&Oof the
17th, addressed to Oscar Wells, Governor of this bank.
It is our wish, and we have so advised the
Federal Reserve Bank of Kansas City, to co-operate with
them in every way possible, in order to make these transfers promptly and with as little trouble as possible.
Upon receipt of the forms to which you refer
the matter will receive our immediate attention.
Very truly

J71H-RS

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

surs,

Vice Governor.

L;JilliD FILE

rIn 40

TELEGRAM
FEDERAL

RESERVE

7-;\L tiESEIVE
•

SOittt)

BOARD

WAS H I N GTO N

Jeks_22._12115.-

—3

Crov,
,,inc)ra,
Octoir
.nk,
,Oetbral Boaor7t
ntllas t Te=a1*
yetnvdy for uso in transfer of !Ileber bffn'te.
Arfirovva eort1.1 nom sent
c
It is itTortaat ;;hat aprlicatioa foriTtst s;lou.idbo In tlia hauds 7)I7 menor bc1n1 3 as
befora jail; fiTsta
.
a'ouo-lv rozWiuivno raj ".:06 !gaud
po4:4141Q ao thfA Ae,
orly
It ia sum,mteit therefore, that tho Fedorol nclsorva Dan't!: of Kant5e.rt 01117 arrnmei
pors printed and that Vie Ytt33ra1 Roe4rvo eank of Dane:3
to !lave all n000gsury
sign and foreard copy t;17 Zola letter of iustmotions to ziAribor bank* an4
lAth lint letter
the 'eft4orz.ii .aasarvc 3an:4 of Kmnsas lit7 to senl olt thetso forms
inoident to transfer and ad":14. ;:brpeases
over t;io printed si6nat'aro of both 'onn,
tly
jastment of aqaourits betwoou trio two i'etioml 'ileaarve Banks oan oo sabseTlea
arranuede

3earotary.
OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE FEDERAL RESERVE BOARD

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

jano 169 191.

I ti.anemit herawita copion of forme ana insiirmi;ione promred by Counsel of ti e Federal Reserve Boara and apnrorod by T.:.o Board. relate to
the aetails of transfer of mombor ba71.1.=

result

or te reown4 rsaictriettng docisions ma3.0iLia
by flaw Boarj..
PlaxklA0

=ioa ii

xtoordanew with the

ow;tlosed matter.
Very rospoctfally,

Ssomary.

Br. 3. Z. Killer, Jr.,
Flodeml 7leservo ;leant,
ansas City, Mo.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

Juno 16, 1915.

tzt`znsait herewith copie3 c

forms and. in -

D'sraztlome Twenaretl by °amissl of the Zedleral. lIxi)VO 3oal.N1 alN1 ..inprove1 by the Board !..eln.tive, to
the aetalls
,,
of t"20,

ILJCint

trrlanfer of iscaber banks au remit
refii a tr.!,cting (Leci rioi male public

by tao Board.*
Ploase

action in zwoord,ralce with tho

enclosed motters
tfu:1 1 y,

Oecretary.

•

n. 0. TaniEon,
Faderta los3rve Agent,
Dallati, Texas.

E. R _

11111

OK, PRESIDENT.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

..11. W. MCNEAL, VICE PRESIDENT.

111
"'" %limr'

.1 L. MARTIN. CASHIER.

•

C ORS:
RT GALBREATH
ACK SO N
SJD. KIVLE H EN
V.

00K

........P.pepepOPPLOOfteftt AT H ,PRESIDENT
'''''''''ert,renernkreXTI1 I E N,

mrige. 404 122_
e
June 14,1915.

-tor Rabert L.Owen,
Sent
Washington,D.C.
Dear Sir:In the effort that is being int de to
keep the banks of Coal County in the Dallas District
of the Pederl Reserve 13ank will say that we wish
to protest against this action and express our earnest
desire for you to do every thing possible to have
the banks in this county placed in the Kt'nsas City
district.
Our banking connections are in the Kansas City
district ,nearly all of our stock is shipped into
the Kanst,s City district and we sincerely hope we
J11owed to enter this s'sme district and
will be .
again will reouest you to use every ef,ort to attain
this end.

Very truly yours,

President.

RECYlv--‘

DISTRICT NO. 10

DIRECTORS:

,OFFICERS:
'

W. J. BAILEY, ATCHISON. KANS.
C. E. BURNHAM,NORFOLK, NEB
T. C. BYRN E.OmatiA, NEB.
GORDON JONES.DENy
R.N. MALOV.E.-OrNVER,ir
,V,._AjoeS N
AAt
L
rIMCCal R

J. Z. MILLER,JR.,
FEDERAL RESERVE AGENT
ASA E. RAmSAY,‘
DEPUTY FEDERAL RESERVE AGT
CHAS. M. SAWYER
GOVERNOR
JEROME THRALLS
SEC•-CASHIER

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKIcANSAS CITY,MISSOURI
:111NL
i

rEly

, ANSAS
r2C;St .&., _
ik
11,..s41"1., WILSON, EL RENO.ONLA.

June 12, 1915.

Dear Ur. Harding:
I thank you for your esteemed favor of the 9th instant,
relative to final order of the Board transferring southern
Oklahoma counties to the Kansas City district.
With kindest regards, I remain,
Sincerely,

Federal Reserve Agent.

Honorable W. P. G. Harding,
Member, Federal Reserve Board,
Washington, D. C.

m40

TELEGRAM
FEDERAL

RESERVE

BOARD

WASHINGTON

am 12, 1,1E.

1)3putu rodornI .7W oIvo i%co ,
i:211036 Cit y.

PI= for tr-TnIov. of We.= incaulima stool: :.Ipplia3tIon r000lutione prvtioalky
oorrloted.

itrapOft t

alL1

iv
ucia, ocr Get t:ve3 15 213=te
d, 1

CarOtto.17.

OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE FEDERAL RESERVE BOARD

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

lir,L 13:SE1VE BOARD p! r
'Ireasurg

pepartnxeut

9P0 MO 32 Govt
TMLEGRAM

KANSAS CITY Wo June 11 1915
/
k,

Federal Reserve Board
Washington, D.C.
Please advise if banks transferred from district eleven should
make formal application for stock in Federal Reserve Bank of
Kansas City.Wire answer

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Asa E Ramsay, neputy Agent
;114-oem

OFFICERS:
J. Z. M

•

0 '
DISTRICT

,
ASA E. RAM SAY
DEPUTY FEDERAL RESERVE AdT

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H t;

DIRECTOR..

JR.,
FEDERAL RESERVE AGENT

CHAS. M.SAWYER
GOVERNOR
JEROME THRALLS
SEC.-CASHER
I

r11# 1,
")

NO. 10

FEDERAL RESERVE

_k-/tTNIC,

KANSAS CITY MISSOURI
,

W. J. BAILEY, ATC
ON, KANS.
C. E. BURNHAM,No FOLK, KEN.
BYR Pfe0mAN
a.
R Deffr
5,D
ON
DEN ER, COLO.
1101-1. M
,ItANSAS CITY, MO.
AJ. Z. MILLER,Jr.,. KANSAS CITY, MO.
AY, 151- SAS CITY, MO.
01ReNoN
E,se.,4,01.,VDN,AL,OKLA.
7

!
I
L

June 12, 1915.

Dear Doctor Willis:
This will ack.nowledge the receipt of your esteemed
irelative to transfer of southern
:.p2I1 2.1.2.1aLluatzIa
..
.
Oklahoma counties to the Kansas City district.
I thank you for the information you impart, and assure you it will be reserved in strict confidence.
With kindest regards, I remain,
Sincerely,

Chairman of the Board.

Honorable H. Parker Willis,
Socretary, Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

----_-___---..
fil5..
ESM NtAilD
RE
fEDEML

\
\

C S---' __-------''

i 1:243

,,..
0
1, ..,04....
„,,t•)

0
Jane 9, 1915:

Dear Ur: Miller:
Your letters about the transfer es. LI-Le Ttclahoma ow/Titles to thn Zansas City District have been
receive, an:3 I pro'.;aL.ly owe you amie e:t.planation•
That I told you 'Olen you 7/ere here as strictly true,
namely, that the 3oard had oricimIlly dezidod to
crant the petition with the lines as ori.;Inalt,y named
?here was
that is, ozolualnr: only fivo coxlLies.
at that time no reason rhntever to think that any
'3.2bse;ucat1y the claim as mac
chanr-o vc,uld r-lir:
that the banl:s in these counties haa, at the time of
the aearin,s, re-iursted a chne, Insi that, in effect,
the petition had been modified accordingly, The
Board decide1 to trze this ;natter up an to waive
technicalities, leaving in the Dallas District threi
more coal.ties in thich L71c apinion of the ban:ce
,
seeled to be pre!?ondcratinr ly in favor el: remaining:
As the final order had not been entered th the mbar.
utes, it was ‘)ossible to make this change.
Ploase consider this letter as merely a per.sonal cx70.1.1:ion and in no way official, or to be
cormnicatcyl to won°. It is intended simply to ox—
lain to you what must seem like a serious discrepancy
betwocin vhat I told you and what was actually done
in tqle last analysis.
With recard, I am
Yours very tru4,

Secretary:
Mr. J.
Miller, Jr.,
Chairman, Board of Directors,
Federal lienerve 3ant of Kam= City.

Jane Dth, 1015.

- T-rr dear LT:. Liller:
have your letter of the 5th instant\and note
;Jour surprise that in the final order of the Board,
transTerrin

some of the Oklahoma banks from Dallas to "Kansas
,

City, the banks in Atoka, Coal and Johnston counties were
loft in the Dallas. District.
A Rood many sarprisiir things happen now ada7a,
but I muld say that it was shown to the satisfacti
on of the
Board that, of the eleven banks in the three count
ies named
eiRht expressed a decided preference to remain in
the Dallas
District, two were non-comattal and only one desir
ed to go
to the Kansas City District.
Under the circumstances and
with the understanding that no 21rther protect
7roald be made,
the Board dee:led tt wise to let tho three count
ies remain with
Dallas.
Very truly yours,
($1,226d) W. P.0.

41,..41.01

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J. r .
11ederal Reserve Agent,
Kansas City, Lb.

ri.A713ING

.4.

OFFICERS:

111

DISTRICT NO.

410.-

J. Z.MILLER,JR.,
FEDERAL RESERVE

AGENT

ASA E. RAMSAY,
DEPUTY FEDERAL RESERVE AdT
CHAS. M. SAWYER
GOVERNOR
JEROME THRALLS
SEC.-CASHIER

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FEDERAL BESERVE BAISTW
ICANSAS CITY,MISSOFHI

DIRECTORS:
• W. J. BAILEY, ATCHISON, KANS.
C. E. BURNHAM,NORFOLK, NEB.
T. C. BYRN E,OmAHA, NEB.
GORDON JONES. DENVER,COLO.
R. H. MALONE, DENVER, COLO.
M. L. McC LURE,KANSAS CITY, MO.
J. Z. MILLER, JR., KANSAS CITY, MO.
A. E. RAMSAY, KANSAS CITY, MO.
L. A. WILSON, EL RENO. OKLA.

--WATED

June 9, 1915.

Federal Reserve Board,
Washington, D. C.
Gentlemen:
In re transfer of banks of southern Oklahoma from
District No. 11 to District No. 10:
'We assume that the Federal Reserve BmioCk of Dallas
will pay over in gold to the Federal Reserve Bank of NATIsas City the amount of capital and reserves paid in by
those banks, since the payment of these items was made in
gold to the Dallas bank,
Please advise on this subject, and oblige,
Respectfully,

Federal Reserve Agent.

Our Deposits Ouaranteed by the Depositor's Guaranty Fund of theete of Oklahoma

The Coleman State Bank
Officers
R. P. Brewer, President.
T. F. Owens, Vice President.
Geo. C. Houck, Cashier.
J. T. Owens, Ass't Cashier.

Capital and Surplus $15,000.00

Coleman, Oklahoma

Directors
R.P. Brewer
T. F. Owens
Geo. C. Houck
J. B. Moran
Green Thompson

June 8th. 1915.

Hon. Robert L. Owen,
Washington D. C.
Dear Senator:
In regard to the Federal Reserve District,
our hopes wereblasted When we received the intelligence
that we ( Johnston County) were still to remain in the
Dallas District.
All of our business transactions are with
Kansas City Banks, and Banks that are now in the Kansas
City District.
Our Banking relations with Kansas City have
been most pleasant and to sever these connections that
we have already established would seem not to be the
proper thing, So we earnestly ask your cooperation s that you
appeal to the Federal Reserve Board to have the line changed
so that we will be included in the Kansas City District.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I
1

—

•
,EWE

June 7, 1915.

Your lot,',,er of t;;:ine

ro1aLivo to

tho date of tramfer of the Olclahoma ban1rx
o tic:ansas City JAstrict, has been re-

coive

and notod.
Res:ectfully,

Secretary.

Mx. J. Z. LIillor, Jr.,
C13.&:irraDzi, .1',uard of 1:;irector80
reciers1 Reserve ,Berfic of 1,..:.nsaa; City.
P-

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Federal Reserve Bank of St. Louis

r• • 1

1 VLE
ZO MID :

71. 7,7

,4,411110.••

/7."

Jane 7, 1915.

Your 19tter_Icselative
Lo the Ute of transfer of the 037.1a1ioma
bmics to the 7
armas City District, has
rocolvod and noted.
Posoectfuliq

300retcati *

E. O. "2onisomp
Chthrman4 Doard of Directors,
reaerLa Reserve 3ari1Z of Dal/az.

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Federal Reserve Bank of St. Louis

•
4

,
FEDERAL RESERVE BANK
OF DALLAS
1

June 7, 1915.

Dr. H. Parker Willis, Secretary,
Federal Reserve Board,
Washington, D. C.
Sir:
Your letter of the 2nd, enclosing copy of the
order entered by the Federal Reserve Board in the matter
of the petition of the Oklahoma banks for transfer to
the Kansas City district, is received.

The matter of

the transfer is MDIN being arranged and you will be
advised when details are worked out.
spe

Federal Reserve Agent.

•
EXECUTIVE COMMITTEE

OFFICERS

OFFICE OF THE SECRETARY

T. H. DWYER.PRESIDENT, CHICKASHA
L. E. PHILLIPS. VICE-PRESIDENT. BARTLESVILLE
W. B. HARRISON, SECRETARY, OKLAHOMA CITY
.1. A. HOLT. TREASURER. GAGE

908 COLCORD

OKLAHOMA CITY. OKLA.

H A. McCAULEY. CHAIRMAN
GUY ROBERTSON,
F. M. COURTNEY,
GEORGE NICKEL
CHAS. MARTIN.
M. BONNER,
LYMON GRAY.
SID GARRETT.
JAKE EASTON.
M. R. CHILCUTT,

Senator Robert L. Owen,
Washington, D. C.
My dear Senator:The following banks in Johnston County have
wired the Federal Reserve Board asking that they be not
kept in the Dallas district as planned in the official
order of May 4th.
Tishomingo,
Mill Creek
Milturn
Bromide
2ontotoc
Mannsville

First National Bank v
First National Bank /
First State Bank
Bromide State Bank v.
Bank of Pontotoc
/
'
First 3tate Bank.

In addition to the above, the Farmers National
Bank of Tishomingo, by C. E. Burrows, president, has stated
that his bank prefers to be,in the Kansas City district, and
the First National Bank, Wapanucka, has made a similar
statement.
As far as we are aware, the r-nly two banks in
this county desiring to be in the Dallas district are the
Tishomingo National Bank and the First National Bank, Milburn,
both of which are owned by B. A. and J. R. McKinney, the
former being a director in the Dallas bank.
In Atoka County all the National banks signed our
petition for a change from the Dallas to the Kansas City
district. In Coal County the banks at Lehigh preferred before
the change was announced to be in the Dallas district, but
a majority of the banks in that county appear to prefer to
I think some of them have
be in the Kansas City district.
wired the Federal Reserve Board to that effect.

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Federal Reserve Bank of St. Louis

SAPULPA
LAWTON
CHICKASHA
ALVA
W000wArro
OKLAHOMA CITY
GUTHRIE
FcRTGlesoN
ANTLERS
ADA

•
EXECUTIVE COMMITTEE

OFFICERS
T. H. DWYER,PRESIDENT, CHICKASHA
L. E. PHILLIPS, VICE-PRESIDENT. BARTLESVILLE
W. B. HARRISON, SECRETARY. OKLAHOMA CITY

OFFICE OF THE SECRETARY
908 COLCORD

OKLAHOMA CITY. OKLA.

J. A. HOLT, TREASURER. GAGE

H. A. McCAULEY. CHAIRMAN
GUY ROBERTSON.
F. M. COURTNEY,
GEORGE NICKEL.
CHAS. MARTIN,
M. BONNER.
LYMON GRAY,
SID GARRETT.
JAKE EASTON.
M. R. CHILCUTT,

2-R.1.0.
If I thought that a majority of the banks in
these counties wished to be in the Dallas district I
would be very glad to see the official order of the
Federal Reserve Board stand as it is, but all the information which comes to me indicates that three-fourths
of the banks in these two counties want to be in the
Kansas City district. Some of them stated that they did
not know any petition was filed to have them placed in the
Dallas district. I vm sure that they would appreciate
your looking into the matter at Washington and investigating
on what facts the Federal Reserve Board based the change
from its original order leaving only five counties in
Oklahoma in the Dallas district.
Very truly yours,

WEH-C.

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Federal Reserve Bank of St. Louis

Secretary.

SAPULPA
LAWTON
CHICKASHA
ALVA
WOODWARD
OKLAHOMA CITY
GuTHP1E
FcRTGIElsorq
ANTLERS
ADA

•

C.B.BURROWS,PREsivwr.
C.B.THOMAS,VICE PRES

NT.

CITY

H.MATH EWSON,J R.ASST.CASHIER.

THE

FARMERS
NATIONAL
BANK
TISHD1V[1Nc[,UKLA., 6/5/15
Senator Robert L. Ge
.en,
Washington, D.C.
Dear Senator:
In regard to the matter of placiyee this
the Kansas City Federal Reserve District, we
county in
have .endeavored here-to-fore to remain somewhat neutral
on the question on account of
P.A.:0Kinney's interests in the county, he being interested in one of the
banks of our town, but we feel now that we should express
an oninion as to how we feel about it and what our desires are on the question.
7e were of the opinion that we had been placed in
the Kansas City District by the recent -.1ecision of the
,
Board but we find now that we were reistaken. We 11,eve
felt kindly toward:Kansas City all of the time and v!ould
prefer being affilliated with them for the reason that
:
the trend of businese from this country is and has ever
been, in that (.1irection and we find it very inconvienent
to handle an account in Dallas. We also have much better
train connections with Kemaas City than eith Dallas and
the relations that we already have established with Kansas
City, coverinr a perioa of several years, are not -easily
,
severed, and. it wo-e.ld take us years to establish the same
relations with Tallas.
There are many other reasons that .we might advance
zhowing why we revefer to be with Kansas City but as this
has all been thrashed out before the Board here-to-fore
7:3 will not tal:e up your tire° in enunlerating them. Stffice to say we favor Kansas City and would like to be
cone,ected with this district because we feel that, with
the connections that we alreacly have estblished with
this City we will be in a better position to conserve
our interests and the interests of our state at large.
In conclusion we wish to say that we favor the Kansas City Dictrict over Pallas and hone that we may still
be allowed to affillf.ate with them.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

R .T. LOONEY , CASHIER.

No. 043

A-edting yo-Ir re -ly, we are

O.00

•

ffr

iLE
ALM. 41/RVE BONN

1
0. 14'
1
1
.' 1
P

FEDERAL

RESERVE

BANK

OF DALLAS
R IC HAP D

L. VAN

Z A N DT
GOVERNOR

June 5, 1915.

My dear Mr. Harding:
I have your letter of the 1st instant,
relative to the re-transfer of some of the Oklahoma Counties into the Dallas District.
I appreciate your work for us and the
consideration of the Board in leaving with the
Dallas District the Counties of Johnston, Coal
and Atoka, believing that it will prove to be a
benefit to the banks affected, the Federal
Reserve Bank of Dallas, and the Federal Reserve
system to give due consideration to the wellfounded wishes of member banks when same can be
consistently done.
I am leaving next week to attend the
conference of Governors in Chicago, and, while
it is more convenient to me, it is a matter of
personal regret that we are not to meet in Washington, where we may have the benefit of advice
and suggestions from the Federal Reserve Board
during our deliberations.
I hope that you may find it convenient
to be with us at that time.
Again thanking you for the above OklaAolma Counties, and with highest personal regards,
am,
Yours very truly,

Mr. W. P. G. Harding,
i Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•
DISTRICT NO. 10
DIRECTORS:

OFFICERS:
6
J. Z. MILLER,J R
FLOERALRESEFWEAGENT
ASA E. RAM SAY,
DEPUTY FEDERAL RESERVE AdT
CHAS. M.SAWYER
GOVERNOR
JEROME THRALLS
SEC.- CASHiER

W. J. BAILEY, ATcHisoN. KANS.
C. E. BU RNHAM,NORFOLK, NEB.
T. C. BYRNE.OK.A, NEB.
GORDON JONES.Dertyca,COLA.
R. H. MALONE,DENC ER, COLP•\
,
C ITT.
,
- rrti17171TIILIRr17(74t.
A. E' 4I3.&VPANSAS CtTY, M
% I LSO N, EL RENO, OKLA.

EliVE RATNKI
MAN-SAS CITY,MISSOUR!

. _
June 5, 1915.

Honorable H. Parker Willis,
Secretary, Federal Reserve Board,
Washington, D. C.

dear Doctor:
We are very much surprised, and, I may say, grieved,

to learn that Coal, Johnston and Atoka Counties have been
re-transferred to the Dallas district.

Our surprise comes

from the fact that when I was in Washington last week, I
understood from you that the Board had settled the question,
and that it was not necessary to bring further evidence before the Board on the subject.
I am enclosing herein carbon copy of letter I am writing Mr. Harding today.
Yours truly,

Federal Reserve Agent- \
.

jU 71

!•*,:15

•

DISTRICT

NO 10

OFFICERS:
J. Z. MILLER,JR.,
FEDERAL PPESERvE AGENT
ASA E. RAM SAY,
DEPUTY FEDERAL RESERVE AdT
CHAS. M.SAWYER
GOVERNOR
JEROME THRALL*
SEC.-'OAS H ICR

v„".

FEDE AL RESERVE B
,
CITY,MISSOURI

.‘31BAILEY, ATCHISON, KARS
rl .
C. E. BURNHAM,NORFOLK, NEB.
T. C. BYRN E,OHANA, NE
GORDON JON
, DEN
COLO
. H. MALO
, ENVER
O.
mcCLuRE K NSAS rre. Mo •
. MILLER
KANSAS CITY, MO.
. RAMS , KANSAS CITY. MO
A WIL,SON. EL RENo, OKLA.

atne 5, 1915.

Honorable %. P. G. Harding,
Member, Federal Reserve Board,
Washington, D. C.
doar ;tr. Harding:
was greatly surprised when reading the order of tht. Board
transferring some of the southern Oklahoma banks from Dallas to
Kansas City, that those banks in Atoka, Goal and Johnston Counties
were left in the Dallas district.
In talking with you, and later
with Doctor Willis, my underotandinc; was, that those throe counties
were in the original ordor transferred to Kansas City; that within
a flaw days after such order was made, certain banks in Coal and
Johnston Counties asked to be re-transferred to Dallas, but that on
consideration of the Board, sitting Mg 27th6or 28th, the petition
of Coal and JohLeton Counties was denied.
On receiving this information from you, and later from Doctor
VAllis, I wired our people that Goal and Johnston Counties would remain with us; hence, my great surprise at seeing them included in
the Dallas district.
was the order of May 27th, or 28th, continuing Coal and Johnston Counties in the Kansas City district, subsequently modified?

I am enclosing herein a letter just received from Mt. W. B.
Harrison, Secretary of the Oklahoma Bankers' Association, which is
self-explanatory,and which you may return at your convenience.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Yours tru.iy,

Federal Reserve Agent.

DISTR ICT NO. 10
DIRECTORS:

OFFICERS: J Z. M I LLEri, J R..
FECJER,AL RES.44VE AGENT
ASA E. RAMSAY.
°CPU,' FEDERAL RESERVE AdT
CHAS. M. SAWYER
GOVERNOR
JEROME THRALLS
SE,,,AsHIER

W. J. BAILEY. ATCHISON, KANS.
C. E. BURNHAM,NoRFoLK, NEB.
T. C. BYRNE.OmAHA. NEB.
GORDON JONES. DENVER,COLO.
N. H. MALONE, DENVER, COLO.
M. L McCLURE, KANSAS CITY. MO
J. Z. MILLER, JR., KANSAS CITY, Mo.
A. E. RAMSAY, KANSAS Coy. MO
L. A.WILSON, EL REN0.01,1-A.

FEDERAL BESERVE BANK
KANSAS CITY,IISSOURI

R8E560
0„.

/./.1 6-c
Jane 5, 1915.

Honorable W. P. G. Harding,
Member, Federal Reserve Board,
Washington, D. C.
My dear Mr. Harding;
I was greatly surprised when reading the order of the Board
transferring some of the southern Oklahoma banks from Dallas to
Kansas City, that those banks in Atoka, Coal and Johnston Counties
In talking with you, and later
were left in the Dallas district.
with Doctor Willis, my understanding was, that those three counties
were in the original order transferred to Kansas City; that wIthir
a few days after such order was made, certain banks in Coal and
Johnston Counties asked to be re-transferred to Dallas, but that on
consideration of the Board, sitting May 27th,or 28th, the petition
of Coal and Johnston Counties was denied.
On receiving this information from you, and later from Doctor
I wired our people that Coal and Johnston Counties would remain with us; hence, my great surprise at seeing them included in
the Dallas district.

Was the order of May 27th, or 28th, continuing Coal and Johnston Counties in the Kansas City district, subsequently modified?
I am enclosing herein a letter just received from Mr. W. B.
Harrison, Secretary of the Oklahoma Bankers' Association, which is
self-explanatory,and which you may return at your convenience.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Yours truly,

r-444ertril., 11167.,M.715
' 1.

No.5809.

FIRST NATIONAL BANK
99
CAPITAL $ 25,000

A.B.DuNLAPPREsIDENT.
J.T.SAIDLER.Vicr-Nirsio*mr.
D. C. TETER. CAsnicn.
L. STALLINGS, AsSr. CRSMir.R.

TISHOMINGO,OKLA.

June 5th, 1915
Senator Robert L, Owen,
Washington, D.C.
Dear Senator:
county had
The news that this
the Da7 - as Federal Reserve District came
been left with
as a complete surnrise to us here from the fact that our
banksate almost unanious in their desires to be in the
It hac been our wish all along
Kansas City District.
Kansas City from the fact that the trend of
to be with
the business from this section is and. ever has been toward that center, and from the fact that w- have better
train con-lections with Kansas City.
I think that twelve of the fourteen banks in ;6his
county will favor Kansas City and I am asking them to
write you their desires which I trust aill have due consideration and that you will be able to do us .oLe Teed
at this late hour when the fight seems to have seen lost.
There are many rea ens why we favor the :ansas City
District but these matter have been gone over so thoroughly with the Federal Reserve :card that it will not be
necessary for us to dwell on them. We simply ask, hwever,
to be placed with the Kansas City District because we
feel that it is to our interests and to the interests of
our state, and since four out of our six ITattonal Banks
and Ira,ctically a17 of the state banks in the county favor
Kansas City we feel that our desires should have due consideratiln.
Awaiting ye r reply, and with kind personal regards,
I aril

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Federal Reserve Bank of St. Louis

Ve_y sincerely yours,

--Cushier

4\\

BOAiru V\Lt-11
RIsi'llti'tAL WESEIWE.
\---

Juno 4th, 1915.

aoar

r. McCr,lcb:
In some way your letter of ;lay 12t1kpas been

over1e, 7md.
o

fi21, it on my des:: this ziornin7 and wish
11

to say I decidedly 3.;ree with yoll in the plan you propose
fol. the transfer of the Oklahoma bon::s to the Federal 2,eservo 73.3.zik at I'r..arisac City.

The Boar.d lms already authorized

the transfer to be made at aziy time not later than July 1st,
and. it 1,:lay be arran,n;ed by the Federal :
:esorve Aixents of the
rel3pective
Very tra1- 7 yours,
,

(Signed) W.P. G.

la.S 4. P. lleCaleb,
Deputy rederfi. 20E30:C V0
Dana, Texas.

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Federal Reserve Bank of St. Louis

.•17:07.11; ,

rar.DING

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK
OF DALLAS

June 4, 1915.

Dr. H. Parker Willis, Secretary,
Federal Rcserve Board,
Washington, D. C.
Sir:
Receipt is acknowledged of your wire of the
instantA in connection with the transfer of saTEern
24d.
Oklahomalianks to district No. 10.
We note that formal orders in the re-districting
cases have been sent out, and that the counties of Marshall,
Bryan, Choctaw, Pushmataha, LeCurtain, Coal, Johnston and
Atoka will remain in the eleventh district. We are very
glad indeed to have this information.
Your letter of June 1st, enclosing copy of letter
of that date written to Federal Reserve Agent Miller
of Kansas City, is also received. We note it is the
wish of the Board that the matter of transfer of the
Oklahoma banks to the tenth district be arranged between
Mr. Miller and myself, and that any date, not later than
July 1st, will be satisfactory. We shall be governed by
your wishes in the premises.
In the connection, under date of May 6th you
enclosed us copy of letter written Governor Roads of
Philadelphia concerning plan to be worked out between
the Philadelphia and New York banks covering details of
the transfer of banks in those districts. It was suggested
that the other banks follow the plan adopted, if approved
by the Federal Reserve Board. If details of the transfer
have been worked out, we should be glad to receive same
as promptly as possible.
spoctfully,
Chairman.

• .r is 40

i
t.

Faeg-

FEDERA

8 R V E BOARD
(

1
-

Jaw 4, 1915.
fedora), Reserve
Masse City, 33.
:Itinhoema counties in 'Dallas District also 'tom, Baia. Choetaw.
Cosi. ..fiemistas LW:strtaino 7!,r
s

tf'

JUN 4 1915
vwe.z.19.,EL

OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE FEDERAL RESERVE BOARD

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Federal Reserve Bank of St. Louis

AiBITYltaia•

WO*

„Axr-.434-4.arjo

WL:SEITIE.110AVID 1.11.E •

•
„reasurg

ketinent

15PO VO 50 Govt

SI6t
KANSAS CITY Mo June 4 1915

H Parker Willis care Federal Reserve Board
Washington, D.C.
Copy of order of the board in matter of transfer Oklahoma banks
to Kansas-City district enclosed with your letter second shows
Johnsten and Coal counties still remain in Dallas district
Wire us if this is correct

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J Z Miller jr Agent

350pm

•

41
111

DISTRICT NO. 10

2.
/
1
4
-1
DIRECTORS:

OFFICERS:
J. Z. MILLER JR.,
FEDERALRESERVEAGENT
ASA E. RAMSAY,
DEPUTY FEDERAL RESERVE AdT
CHAS. M. SAWYER
GOVERNOR
JEROME THRALLS
SEC.- CA5NiER

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Federal Reserve Bank of St. Louis

FEI)ERkSiA 11ESE

BANW

KANSAS CITY,MISSOURI

W. J. BAILEY. ATCHISON, KANS.
C. E. BURNHAm,NORFOLK, NEB.
T. C. BYRNE.OmAHA, NEB.
GORDON JONES.DENVER,COLO.
R.N. MALONE, DENVER, COLO.
M. L. McC LURE., KANSAS CITY. MO.
J. Z. MILLER. JR.. KANSAS CITY. Mo.
A. E. RAMSAY, KANSAS City, HO.
L. A. WILSON, EL RENO, OKLA.

1--i6ABAN
./c„... ..
iffilf--.
,.;.7

...•••••11.....r./ _
.
,,........./1 !.

'F'b
RATEDIA

June 3, 1915.

Federal Reserve Board,
Washington, D. C.
Gentlemen:
This will acknowledge the receipt of your comnunication
of the 1st instant advising that it is the sense of the Board
___---4
4
that the date of transfer of Oklahoma banks to the Kansas City
district should be adjusted between Mr. Tenison and 'well*,
and that any date upon which we may agree, not later than July
1, 1915, will be satisfactory.
Should we agree on any date other than July 1, 1915, I
shall take pleasure in advising you.
Respectfully,

Chairman of the Board.

Wi3AL Pr:SERVE BOARD
FILEI

ikELEGRAM
FEDERAL

RESERVE

BOARD

WAS HI N GTO N

19L').
CW.vrom, Federal Reserve Bark,
.vallaa. Texas'
Tour viixe June CO

tt Board

ma3ting todv*

.yeCcsrs in v,xlictrict-

tat; calm bavo bow twnt out. Comtios in ;:lahoma rtrlatatty: 1m Pallas distriot

are ;41armall, Bryant OlLootaw, fuofliatha, 2:4Quetain, Cote „Tutanton ond
-00016,- WILLIS
Oemrota17.

4-;
OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE FEDERAL RESERVE BOARD

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Federal Reserve Bank of St. Louis

Atoka.

Form 1201
SS OF SERVICE SYMBOL
Day Message
Day Letter
Nilit Message

Nite

204A CP

wv,FE,F,
TEL rev - AM
NEWCOMB CARLTON.

GEORGE W. E. ATKINS, VICE-PRESIDENT

PRESIDENT

BELVIDERE BROOKS, VICE-PRESIDENT

Wyatt Building, Cor. 14th and F Sts., Washington, D. C. ALWAYS
116 NL

Day Message
Day Letter

Blue

Night Message

WESTERN UNION

N t.
Night Letter
If none of these three symbols
appears after the check (number of
words)this is a day message. Otherwise Its character Is indicated by the
symbol appearing after the check.

RECEIVED AT

UNION

WESTE

47_L

Blue

CLASS OF SERVICE SYMBOL

Nite

N L
Night Letter
If none of these three symbols
appears after the check (number of
words)this Is aday message. Otherwise its character is indicated by the
symbol appearing after the check.

.
29

COUNT QNS 1 WD

-.1

DALLAS TEXAS JUNE 1 1915
FEDERAL RESERVE

BOARD
WASHN DC

AT REGULAR MEETING OF THE BOARD OF DIRECTORS OF THIS BANK HELD TODAY THE
FOLLOWING RESOLUTION WAS UNANIMOUSLY ADOPTED. "THE DIRECTORS OF THE FEDERAL
RESERVE BANK OF DALLAS REGRET THE LOSS OF MUCH OF ITS VALUABLE TERRITORY
RESULTING FROM THE ORDER OF THE FEDERAL RESERVE BOARD TRANSFERRING THE
GREATER PART OF SOUTHERN OKLAHOMA TO THE KANSASCITY

DISTRICT THIS BOARD

HAS EVIDENCE THAT THE BANKING INTERESTS OF SEVERAL OF THE COUNTIES CONTIOUOUS TO THOSE LEFT IN THE DALLAS DISTRICT

DESIRE TO REMAIN WITH US

AND THEREFORE APPEALS TO THE FEDERAL RESERVE BOARD TO GIVE DUE CONSIDERDigitized forATION TO THE
FRASER
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PETITIONS ALREADY FILED OR WHICH MAY BE FILED BY SUCH

Form 1201
,s 0F SERVICE SYMBOL
Day M essago
Day Letter

UNIAN

Day Message
Day Letter

Nite

Night Letter
N L
If none of these three symbols
appears after the check (number of
words)this isaday message. Otherwise it character is indicated by the
symboI appearing after the check.

RECEIVED AT

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS,

Wyatt Building, Cor.14th and F Sts., Washington, D. C.

VICE-PRESIDENT

AeP
itZt8

FEDERAL RESERVE BOARD WASHN DC FM DALLAS TEXAS

CO NTIGUOUS COUNTIES BEFORE

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Federal Reserve Bank of St. Louis

Nite

N L
If none of these three symbols
appears after the check (number of
words)this is aday message. Otherwise its character is indicated by the
symbol appearing after the check.
Night Letter

TEL

SHEET 2

Blue

Night Message

Blue

Nigh Message

WESTE

CLASS OF SERVICE SYMBOL

THE TRANSFER BECOMES EFFECTIVE"
E 0 TENISON
CHA I RMAN
1224PM

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Federal Reserve Bank of St. Louis

FEDERAL P.ESZrirt5 ijOARD 1-;.1

i•
.,/
j1
'
7

e-sws

1915,

7or your iaTorAation I anclose a
cog of the order entered by tbe Federal
Reserve Board in the mtter of the ?estil;lon of the Oklahoma badLcs for tmasfer
to tap Kansas Ci4 district.
1'.espootf:1117,

cretarly.

11,r. E. 0. Tenison,
Chairman, Board of .,:Irectors,
:zderal liev;arvo 33nk of :2a11as..

It...,

•

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

jamo 1, 191L-*

31r:
In accordance tvith your recluest made to me per3,za117 a few days am, I this mornin:; presontod to the
7ederal :0Gerve Board the question of the date at which
the Oklahoma 1,721111:s which have been ordorod transferroa
to the "Kansas C:ity .istrict, should actually become -;aai:
burp of your bank.

There vas a ,enoral discussion of

e szfujoct, uid I vas directed to scv to you and
Tonisan that the

Board feels that it is a matter that

dbould be adjusted.betveen yourselves by common consent
anft ar;roomant,

that any date on which you jointly

oe, not later than Juliy 1, 1015, will be satisfactory
to the 3oard a3

ie time for raakin

the transfer*

1 have the honor to be,
Int°apectrallz,7 yours.

LAcretagy.
Mr, J.
Diller, Jr.,
Chairman, Board of 1)irectors,
Poderal Reserve Bank of Kansas

it‘
,k t
$ :os

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Federal Reserve Bank of St. Louis

June 1st, 1915.

My dear Lr. Van Zandt:
have your letter of May 29th 4 relative
to Va re -transfer of some of the Oklahoma counties
:
.
into the '
-)6.'l1as District.
The Board to aay decided to anend it
cree. lt Ich becomes final from t[lie date. so

dec to

include the counties of Johnston, Coal anC
wi fL the five oilier Oklahoma countie s that are left
Li thn Dail ns
Very truly yours,

(Signed) W. T. G.::DING

Mr. R. 11,.Van Sandt,
Governor, Federal Reserve Bank,
Dallas, Texae.

qaDUV,I, 11..1-E

June 1, 1915.

I enclose coy of a letter 'Allah
has touau 'Joon

3SO 2 1"

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Federal Reserve Bank of St. Louis

$=t

to 'lecleral.2eclerve

Ac;onI :Aller of 7a2as City, and which
will be self w.planatory.

Oocrotalv.

N.r. E. O. :o_ison,
Chairman, Board of Directors,
PeJeral Reserw.? "/1227 of Dallas.
lacioDure,

NOD ?ILE

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1-1LE

Yt.fiAL

041.•'

June ist, 101' .

My dear :Ir.
have your letter of May 2ath,lreiatin7
.„
••.........
SMO••••••••••••

to the proposed. re-tmazfer of oezitain cou.Aios of
Southern Oklahoma iata the Dallas District.
The Board voted today to adei to ne
Oklahoma counties rema1ni.43 in the Dallas District
tho countice of Johnston, Coal a2aci Atoka, but all
other co u.nt1e 8, vila lc 1: It (loci ed eo
transfer to tho !neac
-

time afro to

City District, will be so

trnzisferred onfd the final decree will be 1F.;surd thi
afternoon.
trust that the action takai

7, 111
7

171Ve

- E. I wish to sam7est that there he no
n

f3atisfactiona

agitation. ibr the ro-transfer of other, counties at
this time, as I foci cure that the Board woald not
take aiy itirthoractioi.
Very truly yours,

(Slimed) W.P. G.
2.7.r. B. A. 1:citinue.y,
Vie e-Pres , The Duralt Nati o
Durant, Okla.

Ban::,

1:111RDING

•

.4,0i
tr,

1015

t 6

Mr. R. L. Van Iandt,
Governor, reEeral Rescr7o
To::as.
Dear Sir;
hnvo yam- tol,tn7,:a:4_91" thiliAato
.
arid v:ish -',;o say /,22.at tie Board, at ^ recent meeting, doolaccl. that it In3z.16., not
consitior atthie 'duo any petition to
chalgo the boundaries 02 Tho Flevonth
_Axe.e.44q_

District, as submiNOMP announced.

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Federal Reserve Bank of St. Louis

Tourd v0.7.7 truly,
(Signed) W.P. G. ESED7r

lik

reasurg pepartment

•

(22

33WU MO Ll DAY LETTER
hi

DALLAS Texas 10'65

May 29

W P G lirding7 Federal Reserve Board
Aashinrton D C

w eferrinr to our conversation seventeenth rerardinr Oklahoma
counties desiring to remain with Dallas district, press dispatches
this morninr announce that the Federal Reserve Board will refuse
to consider any petition alonr those lines (stop). Please advise
whether any foundation for statement in order that our actions
may be roverned accordinrly

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Federal Reserve Bank of St. Louis

h L VanZand, Governor
1b8pm

•
/ 2_ 2,

FEDERAL RESERVE BANK
OF DALLAS

R. L. VAN ZANDT, GOVERNOR
J. W. HOOPES, VICE GOVERNOR
LYNN P. TALLEY, CASHIER

Lay 29, 1915.

hy dear Er. Harding:
.;,fter my conversation with you on the 17th
instant, relative to the desire of some of the Oklahoma
banks which had been included in the transfer to the
NArsas City District to remain in this district, I proceeded along the line sugested by you to try and find
out which banks preferred to remain with us.
I wrote a letter to the active head of every
bank affected by this transfer, and a copy of the Form
used by me is enclosed herewith for your information.
It vias my intention to tabulate the replies
received according to counties, and whenever I found
that all of the banks in one county wished to remain in
the Eleventh District I intended to have our Counsel
prepare a peti.don to the Federal Reserve Board for
them to sign and forward to you.
The Dallas News, of this morning, states that
"The Federal Reserve Board will not sustain any contention from the rebellious banks". As soon as I read the
above article, I wired you relative to same, because
if there is no possibility of these banks being ret-tined
in the Dallas District it is not proper that their hopes
;
should be raised and our work alonL those lines shoulu
discontinued.
be
I will appreciate it if you will write me fully
in connection with this matter.

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Federal Reserve Bank of St. Louis

Thanking you for your courtesy, and assuring
you of my highest personal reaards, I am,
Yours very truly,

Gover
Mr. W. P. G. Harding,
/Federal ',',4serve Board,

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF DALLAS

My dear Mr.
Since the decision of the Federal Reserve Board
has been announced, granting the petition of the Southern
Oklahoma banks to be transferred from the Dallas district
to the Kansas City district, it has come to my notice
that there are several banks included in that transfer which
prefer to remain in this district.
3.1y purpose in writing you is to find out how
many banks are of that opinion, and I will appreciate it
if you will write me fully and frankly and give me your
I will assure you that your reply will not be
views.
used except for the above purpose and as a basis for further
correspondence with you in the same connection, and to
enable us to assist such members as prefer to remain in
the Dallas district to properly present their petition
to the Federal Reserve Board.
It has occurred to me that the banks in a
cotton raising section can have their needs better and
more intelligently cared for by a Reserve Bank all of
whae officers have received their banking experience in
a cotton country, and I would like to have your opinion
as to that point.
We do not desire to use, or4have used, as
an argument the fact that the Federal ReserveoRank of
Dallas is one of the very few which is already7a dividend
paying basis, because we confidently believe that every
Federal Reserve Bank: will soon be in that class, and
will, in a reasonably short time, be able to take care
of its accumulated dividends.
It is the intention and desire of the
management of this Bank to serve all of its members
fairly and impartially in every way consistent with the
provisions of the Federal Reserve Act and with conservative
business methods, and having that purpose in view I will
appreciate a letter from you whether or not you prefer
to be a member of the Federal Reserve Bank of Dallas.

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF DALLAS

If it is your preference to leave us, I will
be glad to have you tell ma whether or not your decision
was brought about by any failure on the part of the
management of this Bank to courteously and properly
comply with any request of yours.
If your relations
with this Bank have not been pleasant, for any cause
whatsoever, I am anxious to know about it in order that
we may take proper steps to guard against a recurrence.
Please be assured of our sincere appreciation of
your co—operation and support during the organization
period of this institution, and of the fact that we
think none the less of your bank if you believe it to
be to your interest to become a member of the Federal
Reserve Bank of Kansas City.
Until the transfer has been effected this is
your Bank, and we will be glad to serve you just as if
you were to be with us permanently.
Thanking you for an early reply, and with
personal good wishes, I am,
Yours very truly,

Governor.

MUST STAY WITH KANSAS CITY.
Federal Reserve Board Will
Not Sustain Obleetions From Two
Oklahoma Counties.

•14

SDecial to The News.
Oklahoma City, Ok., May 2S.—John
ston
and Cole Counties wUl
he forced to remain in the Kansas City
Federal Reserve
District when the redistric
effective July 1, according ting becomes
to information received by the local
Friday. Following the clearing house
rearrangement
bankers in Cole and Johnston
Counties
announced that they
would
protest
against being transferred to
the Kansas
City district. A letter received
here Friday from Washington
Federal Reserve Board states that "the
any contention from will not sustain
the rebellious
banks."

1-1LE
11-...ZONE BOARD
W. E.CLARK,CAsmER

JAS. R. Mc0
NEY PRESIDENT
B. A. Mc KINNEY, VICE-PRESIDENT

HALL,ASST. CASHIER

NO.5590.

fil
r

E DURANT

NAtTI

CAPITAL $100,000.00
SURPLUS $100,000.00

DURANT,OKLAHOMA,

May-2e,

Ye. 7. P. G. Harding,
Federal Reserve Board,
Tasl!ington, D.(1
.
Dear Mr. Harino:Inpplementing my letter of yesterday I am enolosing herewith
clipping from this morning's paper under an Oklahoma City date lihe whioh
will give you further insight into the eotivities of that City in the Oklar.
I can not believe thala oonneotod with the Board
homa transfer•matter.
etatement as "the Federal Reserve Board will not 'TM*.
1114.2 aethorised suo
This statement, appartam n any oontention from the rebellious banks."
ently aethorined by the Oklahoma City Clearing House Assoliatiorip is not only
an affront to the bankers of Johnston and Coal ounties, but is 3. refleotion
on the intelligenne of the southern Oklahoma bankers generally, besides being
at variance with the'oft-expressed olaim that the banks should be permitted
to say for themselves whieh distrint they Should ho lonneeted with. Lnlidentally, it le presuming on the aotion of the Board in a matter in whioh
they are not eonoerned, or s!l.ould not be.
This eliping is a sample of the news mattor whioh has been coming
out regularly for the past year from Oklahoma. City, and whioh has been designed to merefooture sentiment among the Southern Oklahoma bankers a:nil to
show them the frtility of making any effort to rerdain in the Dallas qietriot.
I do not think it woeld be muoh of an exaggeration for me to say that a pub'Jolty bureau has been maintained in Oklehona City sinoe the dietriet lines
were first announeed, whereby "dope" of this oharactcr oould be distributed
for the benefit of the banks of the Southern part of our State.
I believe the Dallas bank has suffered in this oontest because
of the dignified stand it took in reforenee to the petition. None of the
offioials of the Federal Reserve Bank or the Dallas Clearing House Assoe±ation, so fn' RR I, know, endeavored to bring any pressure whatever to bear
upon tho banks of Oklahoma while the oontest was pending, exoept such proseure as nourteons treatment and satisfaotory service eould 1)roinse.
At
the telegraphic sugF7estion of an official of ,the Federal Reserve Bank of
Kansas City a delegation of Oklahoma City bankers swooped down 4n MneRogee the day OovIrnor Hamlin /as there, and at an informal meotihg of the bankers
held in the forenoon in honor of the Governor they oonswited most of the time
which should have been used in weleomine him and felicitating upon the muecessful ineugmantion of the new system, in urging Oklahoma City's claims to
heve the Southern banks placed in the Kansas City district.
I was called
upon by the C:,,tIoNrmen but ignored the transfer question in my remarks, be,
lieving it was,a proper 000asion for a .:liscussion of that character.
I am
Inclined to regret now, however, that I did not wade into the matter.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

JAS. R. Mc
NEV. PRESIDENT
B. A. Mc KitiNEY, VICE-PRESIDENT
NO.5590.

W. E.CLARK,CAsHIER
J.M. HALL,Assr. CASHIER

THE DURANT NATIONAL BANK
CAPITAL $100,000.00
SURPLUS $100,000.00

DURANT,01i1_,AHOMA.,

At the Oklahoma Bankers Convention held in Tulsa a few days ago
the Exeoutive Committee, whioh was apparently dominated by Booretary Harrison
not alone booanse of his olevor personality but also by reason of the orodit
whioh is fl.sorihed to him for the viotory in the transfer mattor, direotod the
Chairm9n of the convention to rule any body out of order who might offer %ny
resol/Ationw or renarks in referenoe to Johnston County and presumably to any
other County a majority of whose banks desired to remain in the Dallas dietriot.
I onllt lite this as an evidenoe of the determination on the part
of Oklaboms. City to throttle any effort on the part of any body to ksqn any
oounties in the Dallas distriot. So far as t know no one oontenplated ro-ferring to Johnston oounty. As the person present most vitally intorestel
in that omInty remaining in the Eleventh distriot, probably, belause of the
oonneotion of the Johnston oounty banks with those of this county, t had no
thought of .alluding to it or to any other question out of harmony with the
spirit 7h1lh should have pervaded the oonvention.
My authority for this
notion of the nceoutive CoTmittee is Mr. R. P. Brewer, lashisr of the First
National Bank of MoAlester, himself a membsr of the Committes.
X realize that
run the risk of tiring you with a reoital of
these Plots, and
hope that you will attribute the length of my letters
to my zeal and my sinoerity in this matter, and not any desire to
unnonesoarily bore you.

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Federal Reserve Bank of St. Louis

7ith best wislios,
linoerely yours,

iTAY,WITH,KANSAS ffiTf-redeval Reserve
board Will Not Suslain Objections
From Two Okia•
hotna Counties.

r
rt
m
)1
:1',
1i

Ii-

special to The News.
Oklahoma City. Ok:, May
,
28.7—Johnston
and Cole Counties'
wiit be forced to remain in the
Kansas.City F7edera
l,Reserve
histrict When the
effective July '1; reditricting becomes
tion received by according to informathe
Friday. Followhig local clearing house
bankers in Cole andthe. •rearrangement
.'Johnston Counties
announced that ,they
• would
againk being
protest
transferred to the -Kansa
City district. Alatte
s
r received here
day. from Washin
Frigton states that ."t
Federal Reserve -Board
he
any contention from will not sustain
the rebellious
banks."
• .

W. E.CLARK,CAsKIER
J. M. HALL,Assr. CASHIER

JAS. R. M
NEY, PRESIDENT
B. A. Mc KINNEY, VICE-PRESIDENT
N0,5590.

r
li

7RAN T NATIONAL BANK
CAPITAL $100,000.00
SURPLUS $100,000.00

DURANT,OKLAHOMA, May

28,1915.

Mr. W.P.G. Harding,
Federal Reserve Board,
Washington, D.C.
Dear Yr. Harding:
I beg to confirm my tel.egraaLsiffa_diatti advising you that the American National Bank of Atoka, the only National Bank in Atoka County, desires to remain in the Dallas
District, and I enclose herewith a communication from that bank
addressed to the Board formally requesting that it be permitted
to stay in the Eleventh District. As stated in my telegram to
you this makes it more feasible from a geogrpahical standpoint
for you to give f'avorable consideration to the desire of a majority of the banks of Johnston and Coal Counties to continue with
the Dallas Bank.
AA you are aware letters and petitions are
now on file with the Board signed by the proper officers of a
majority of the two counties referred to. I forwarded a copy of
the telegram I sent you to Judge Huff at Dallas, Counsel fathe
Federal Reserve Bank, in order that he might file a formal petition if he thought it proper to do so; although it occurred to
me that such a petition, under the circumstances, would be unnecessary.
I appreciated the courtesy you showed me at Waco and
regretted that the circumstances were such that I could not have
a converstation with you more satisfactory to myself on the subt.j,ct of the transfer of the greater part of Southern Oklahoma to
the Kansas City District. I regret even more that I could not
be at Washington at the hearing in February, but the sickness of
my brother kept me at home. It was my intention to be there. I
believe the Federal Reserve Board, as much as any body or organization identified with the Government, is actuated by the most
lofty purposes. Putting yourselVesabome selfishness and politics
you are striving to develop the new banking system to the highest
point of efficiency. You are constantly- demonstrating that. Even
in this Oklahoma transfer matter I realize that the record on
which you were compelled to act--the apparent demand of so many
Oklahoma banks and the insistent urging of the Oklahoma delegation
in Congress-- was something difficult for you to get around.
Nevertheless, I do not believe that the decision of the Board
represents the real, present, wishes of a majority of the banks of
Southern Oklahoma. Neither do I think that it will work for the
eventual good of those banks as this section of the country develops nor for the best interest of the system generally as it comes
into full operation. As is said to be frequently the case in the
determination of appealed cases by our higher courts the decision went off on a record which did not properly reflect what
transpired below.

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Federal Reserve Bank of St. Louis

lilt

W. E.CLARK,CAsHIER
J. M. HALL,Assr. CASHIER

JAS. R. M
NE Y, PRESIDENT
B. A . Mc KINNEY, VICE-PRESIDENT

NO.5590.

E DURANT NATIONAL BANK
CAPITAL $100,000.00
SURPLUS $100,000.00

Du-RA-NT, OKLAHOMA,
Mr. WPG #2.
There is not now and never has been any clamor on the
part of Southern Oklahoma hankers to be transfelved to the Kansas
City district except such as was, in a large meAure, created by
Oklahoma City, and even the artificial enthusiasm which was fostered through the energy, ingenuity and means of that City was
being rapidly dissipated as the bankers began to study the propos
ition for themselves. No meeting of the bankers of Southern Oklahoma has bver been held to consider the subject. Every meeting
has been held in Oklahoma City. No meeting e'en of the Commit
tee
charged with the duty of presenting the petition was held in
the territory involved in the contest. They were likewise held
in Oklahoma City. Even the petition itself was printed in
Oklahoma City. Two group meetings were held in Southern Oklaho
ma
this last February and at neither was the question of being transferred to the Kansas City District so much as mentioned.
A s has been related to you perhaps, within an hour after
the announcement of the District lines came out a year ago
the
Oklahoma City Clearing House Association held a meeting and after
invoking the assistance of Secretary Harrison of the Oklaho
ma
Bankers Association, himself a resident of that City,
began a most
insiduour campaign for the manufacture of sentiment. Telegrams and
letters were sent to all of the Southern Oklahoma Banker
s appealing
to their state pride, and an incessant bombar
dment was kept up for
ddys. Wholesalers wrote their customers and nearly
all lines of
trade took it up with their Southern Oklahoma corres
pondents. At
a caucus held at Dallas by the Southern Oklaho
ma Bankers preliminary
to the election of Directors of the Federal
Reserve Bank, Secretary Harrison told a gentlemen whose name was being
considered
for a directorship that unless he consented
to a resolution passing
the caucus expressing a desire to be transferred
to Kansas City
he would see to it that he was defeated.
The resolution was not
adopted however.
As I stated to you at Waco and of course as you had
heard
said before, every bale of cotton raised in
Southern Oklahoma,
whether intended for New England or across the
water, goes out
through GaLveston or New Orleans, and if it is
true, as you said
had been suggested, that the documents go north,
it is due to artificial causes which must inevitnbly give way as the
development
of our section of the country proceeds. As you
know better that'
I do the Federal Reserve Act was expected , if
not intended to
,I
disturb the old ar-oitrary alignments, and create
new ones more in
harmony with the commerce and welfare of the countr
y. The truth is
that we all have been so much in the habit of taking
a north bound
train when we need anything, whether merchandise
or money, that we
have been deluded into the idea that nothing good
or successful can
lie to the south of us.
The trend of business may to a large extent
lie to the north and east at this time
but it eventually will not.

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Federal Reserve Bank of St. Louis

JAS. R. Ik r Y PRESIDENT
Mc l — „ D
B. A. Mc KINNEY, VICE-PRESIDENT

W. E.CLARK,CASHIER
J. M. HALL,Assr. CASHIER
NO.5590.

THE DURANT NATIONAL BANK
CAPITAL $100,000.00
SURPLUS $100,000.00

DURANT,OKLAHOMA,
Yr. W.P.G.#

With the great port of Galveston to the south of us (intensified
in importance as it is by the Panama Canal), with crops and climate
similar to those of Texas and an intermixture of business and
social connections, it occurs to me that there is less reason for
granting the petition of the Oklahoma banks than there would have
been to transfer the Nebraska banks who wanted to go to Chicago,
whose hold on these banks has beerM rittth surer and a more permanent footing than Kansas City could claim on us.
At Taco you called my attention to the fact that practically all of the Oklahoma delegation in Congress favored the
transfer. As a business man you know how pressure is brought to
bear on politicians, and I give it to you as my sincere judgment
that this case affords no exception. You may be assured that Oklahoma City looked after that feature of the campaign as well as
that of getting banks to protest. Even now, after the battle, one
of our senators, so fearful is he that the other senator would
get all the credit for the successf,11 work, caused, through one
of his friends, a copy of his written argument before the Board
to be printed in the"Oklahoman", and I enclose herewith a clipping
from that paper showing the introduction to the article, which I
believe you will read with interest.
It seems hard that the Dallas bank should lose so much
of its valuable territory in a contest waged because of Oklahoma
City's desire to have a branch bank. Oklahoma City does not deny
that such is her ambition and only thinly disguised that as being
her purpose in instigationg the filing of the petition. Hr. Hogan
of Oklahoma City made a talk before Governor Hamlin when the latter was at Muskogee recently and virtually admitted it. I believe
Governor Hamlin will recall this. A-few days ago at a meeting of
the Oklahoma City Clearing House Association the movement was
formerly launched, and I enclose a clipping herewith which deals
with the matter.
I am induced to make the foregoing statements- by the fac;t
that Judge Huff told me he had filed a motion for re-hearing on
the main case, and for that reason I felt these observations were
not out of order.
That many of the bankers who signed the protest slips
last spring before the directors were even elected did, upon
reflection, decide that it was for their best interest to remain in
the Dallas District, you have evidence in letters on file before
the Board. That many others were restrained from expressing themselves in a similar manner only by the fear that they would be

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Federal Reserve Bank of St. Louis

W. E.CLARK,CAsHiER
J. M. HALL,Assr CASHIER

J
0AS.
R. •Mc
NEY, PRESIDENT
B.A. Mc KINNEY, VICE-PRESIDENT

NO.5590.

TI E DURANT NATIONAL BANK
CAPITAL $100,000.00
SURPLUS $100,000.00

DURANT,OKLAIIONA,
Mr. W.P.G.# 4.
regarded as vacillating and charged with deserting their associates I can positively assure you, for many have so stated to me.
I am enclosing herewith letter from Mr. Lacy, President of the
First National Bank of Ardmore, which states that not only his bank
but also the State National of Ardmore desirea to remain in the
Dallas District. Both of the two banks were original protestants.
and Mr. Lacy told me some months ago that he signed the protest
only as a result of the importunities of his Oklahoma City friends
and before he had worked it out for himself. There are three National Banks in Ardmore and three other small banks in Carter County,
of which A 'rdmore is the county seat. Mr. Lacy's bank and the State
National, to which he refers, cpaorise two-thirrts of the banking
capital of the county, and it happens that no one of the small banks
outside of Ardmore protested against being attached to the Dallas
District. I assume that they were not very violently Opposed to
being in the Eleventh district.
Love County lies between Carter County and Red River, and
both are contiguous to that part of Oklahoma left in the Dallas
District. I am enclosing herewith a letter from Yr. Morris of the
Marietta National and also one from Mr. Sherwood of the Ft. Wodth
National Bank referring to a conversatiens,thich he had with Mr.
Morris and with Mr. Conrad, president of the First National Bank
of Marietta. There are only two national banks in Love County, the
institutions which Yr. Morris and Yr. Conrad represent. You will
see that both of these gentlemen, while originally protesting, now
desire to remain in the Dallas district, although restrained from
petitioning the Board for the reason stated in these letters.
While I wish the Board could find it possible to withhold
making the final order in this transfer until the district lines
as now established could be thoroughly tried out, yet I feel that
if this cannot be done we should at least be permitted to retain
Love and Carter Counties along with the three mentioned in the first
part of this letter, together with such additional contiguous counties
aiimgy petition before the order is entered. I think the showing
I make as to Love and Carter is sufficient. Of course the letters
I am enclosing are for your use only, though to be exhibited to
the Board if you deem the matter of sufficient importance, but naturally I would prefer that any reference to them be kept out of
the papers.
I hope the force of this letter, if it has any force,
will not be impaired by the thought in your mind that I am influeced
by an ambition to be re-elected as a Director in the Dallas institution. I have nearly two years to serve yet and am planning on
the expiration.or my term not to stand for re-election.

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Federal Reserve Bank of St. Louis

IIIP

JAS. R. Mc NNEY, PRESIDENT
B. A. Mc KINNEY, VICE-PRESIDENT

W. E.CLARK.CAsKIER
J. M. HALL,Assr. CASHIER
NO.5590.

THE

1)1

RANT NATIONAL BANK
CAPITAL $100,000.00
SURPLUS $100,000.00

D RANT,OKLAIIOMA,
T.p.G.#

If I have any selfishness at all about the matter it is in the .
fe eling that the few Oklahoma counties left in the Dallas district
eh ould have enough joined with them to give us a better standing
an d a stronger influence in the affairs of the Bank.
With best wishes,
Sincerely yours,
BAMc-D.

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Federal Reserve Bank of St. Louis

Intere,stni g Letter Fror- Gore— —
Touches on Finances in State
•
,
,
Document Submitted to Federal Reserve Board Prioi
to Recent Change From Dallas to Kansas City District Outlines Why Oklahoma Desired Alteration.

4,7

. mow an
Believing that the bankers of Oklahoma will be interested in knowing more
of the history of the fight for the transfer of southern Oklahoma towns from
the Dallas to the Kansas City territory
of the federal reserve district, Postmaster
Claude Weaver has written to Washington and obtained a verbatim copy ol
Senator T. P. Gore's direct appeal to the
federal reserve board—one of the strong .
documents presented in favor of tilt
changed district, and showing the lead-.
ing reasons why the recent change had
9
been so earnestly desired;
.
The appeal was delivered te the board
in writing, having been submitted on ittecess.
United States senate Stationery. Senator
Robert L. Owen made his plea. orally before the board. Secretary W. B. Hai—
risOn Of the Oklahoma Bankers' association, also, as is well known, joined the
two Oklahoma senators in seeking the
change.
The copy of Senator Gore's written ar?aliment has just been received by Postmaster Weaver, who has asked the Oklahoman to publish the document in order
•
that the bankers of the state may know
just in what degree they are indebted to
Senator Gore for his assistance in bringing about the recent change.

LIN

Address tc
Asserts

NCH HERE

d That First
paign Has
[ade

4>44444
4>4>4>44>4>4
4
•
Plans were made at a meeting •
•
• of the Oklahoma
City clearing 4
* house Thursday afternoon to
have 4
O a branch of the Kansas City
fed- *
• eral reserve bank established
In •
• Oklahoma City. It was
the in+, Itial step in a propaganda to *
0 have the institution brought
,
Into
4 the state, and follows the
4> redIstr'cting of Oklahoma recent 4'
from
4 the Dallas to the Kansas
City 4
<> district.
E. H. Cooke, president of the
•
4>
• State National bank, was
named •
• president of the
committee which
• will perfect th.e campaign
for
• such an institution here.
He will 4
• name his own committee.
•
It is the concenses of
opinion In •
4> banking circles, according
to R. •
• 0. Wunderlich,
manager of the 4>
9 clearing house, that
a branch of 4
• the federal bank will
be
• lished in this state, maybe estabtwo.

•
http://fraser.stlouisfed.org 0•000.0•040•00044Nt."

Federal Reserve Bank of St. Louis

'ABER REM.
BANKS COMMENDED
D. W. Hogan in Address tc
Credit Men, Asserts
Plan's Suceess.
WANT BRANCH HERE
Banqueters Told That First
Step in Campaign Has
Been Made.
04<<:>4>00000.0004‘,4)(0

04>0

Plans were made at a meeti
•
ng 4>
41• of the Oklahoma
City clearing 4)
0 house Thursday afternoon
to have
41 a branch of the Kansas City fed 41
reserve bank established
In 4>
41 Oklahoma City. It was the
in - •
4' itial step in a propaganda
to
have the institution broug
ht into •
• the state, and follows
the recent
41 redlsWcting of Oklahoma from
4 the Dallas to the
Kansas City
1
4 district.
4
E. H. Cooke, president
of the
-41 State National bank, was named
4 president of the comm
ittee which
4 will perfect
,
th.e campaign
for
4 such an institution
here. He will
4\ name his own committe
e.
It is the concensois of
opinion In
4 banking circles,
according to R.
4 0. Wunderlich,
manager of the
<i> clearing house
, that a branch of
4 the federal bank
will be estab.
• Ilshed In this state,
maybe two.
for FRASER
041

Digitized
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

'reasitru 'Department

127JU MO 73 5 ex

TEL...EIRANA

DAY LETTER
DURANi Okla Kt', am May 23
W P G Harding,Federal Peserve Board,
Washinrton,D.C.
American National Bank of Atoka only national bank in Atoka county,
is forwarding petition to emain in Dallas district as stated
at Waco. This will make it more feasible reorraphically to retain
Johnston and Coal counties, the majority of whose banks have
expressed desire to remain.Hope final action will be deferred
until Atoka petition received and also other continuous counties
have had opportunity to express their choice

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Federal Reserve Bank of St. Louis

B A McKinnej,Director
Federal Reserve Bank,Dallas
1131am

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Federal Reserve Bank of St. Louis

_______,_
___--- • -,c1-,\IE NP 1-)) i-11-,
.1_____.
•',

"
VOIY1M•
,

260,

F. YcCeleb,
Mr.
Peputy Flera) Pesorve Ayen
Federal Reserve BInk,
Mlles, Texas.
r
antlin
Your letter of the seventeenth inst
banks-th -Oklareference to the triiir cif Certain
referred
homa to the Kan. City Dietrict h-is been
to thie office for attention.
ct
Mile an opinion waz rsedered to the effe
trnnsfer redisthat it is not necezsary legally to
objection to
counts held by your bank, there is no
contrer7, inasOn the
this course beln- pursued.
City 7i11
the Federal Reserve Bank of Kensas
much As
k of it member
etoe
have the benefit of a lien on the
raid auban will have the rocerve and caoh
banks
seems deeireble from a
ecriptiono of member banks, It
held by you
bueineve eterdpoint that rediscounts
s in queetion should be
after the transfer of the bank
ink of Kensee
turned over to the Federal Deserve
City.
Jay that it
I AM authorized by the loard to
a
Peard to . eve you
teill be entirely ec:reeable to the
the Federal Reserve Bank of
eeke errenTemente eith
d items held by
Kensas City to rediscount any uneature
the member banks
you which were discounted for eny of
riet. Such distranflferred to the Kaneas City Diet
se, be. made after the order of
counts should, of cour
.
the 7oerd becorfes offectin -trerrferrinl the banks in
to the Keneae City rintrict.
question
Ree?ectfelly,

Counsel.

5,4

NO. S994-

American Nationa
B. C. MILLION,PnERmENT
A. U. THOMAS, VICE-PrIEsinEN-r
:JOHNSON, ACTIVE VICE-Prx.sinENT
E. T.
P. V. JOLLFIY, A SISIRTAN, CAMITIVIlt

Atoka, Oklahoma

May ,
26th.
1915.

Govenor Charles S. Hamlin,
Federal

Reserve

Board

•

Washington, District Of Columbia.
Honorable

Sir

Having re-considered our interest in deciding as to whether or not it will be to the advantage of this
Bank to be in the 10th

or in the llth.District

wish to say af-

ter a thorough review of the situation and environments we have
decided to ask that we be permitted to remain in the llth.Federal
Reserve District as we now feel that it will promote our interest.
Am constrained to say that when we joined with the other banks
in southern Oklahoma seeking to be transferred to the lOth.District
we were of the opinion that if any change was made in the boundary
of the original
of the 10th.

Districts that all of Oklahoma would be-come a part

Later developments disproved that theory. New as the

matter stands we feel impeled to say that while the trend of our business is toward the North and East, yet there are other features in
the case that may be

more worthy of consideration in deciding this

question, since this decision is in all probability a final determination of our locus.
Some of these features are as follows, to wit :

let. The Fed—

eral Reserve Bank at Dallas is on a paying basis while the Kansas
City District is not.

The Officers of the 10th. District we large-

ly men chosen from sections that do not handle cotton extensively,

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Federal Reserve Bank of St. Louis

•
'
(2)
they come from a region where the banks handle a diferent class of
security to what we handle

here, hence would not

be in a posi-

tion to pass upon our securities as well as those who are perfectly familiar with our mode of business, and just how much ceedence or
weight to give the

class of collateral we handle.

has a distinctive

feature in its mode of business as well as in

the class of security taken.

Each locality

Second, by remaining in the 11th Dis-

trict we are among those who have a similar method, similar security, and are composed of people who are conversant with our system,
as well as being people whom we probably understand better.

Third,

while it will discommode us in some measure to remain in the 11th.
District,yetweareconstrained to feel that those features will be overbalanced by the good that will redound to our welfare by remaining.
In view of these

conditions as we now see them we believe that
on the whole it will be to our interest to remain in the llth.District
and

therefore ask your honorable

body to reconsider that portion of

the order placing us in the 10th. District I, to include Atoka County,
Coal County, Johnson County and Choctaw County with the rest of
Counties in South Eastern Oklahoma, and leave

them in

these

the llth.Dis-

trict of the Yederal Reserve Bank at Dallas.

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Federal Reserve Bank of St. Louis

Very respectfully,
The American NatIl.Bank,
0 A/
By 0 a
cc President.

•
TFI1 MARIETTA NATIONAL BANK
CAPITALS, SURPLUS $100,000.00.

MARIErl"Lk,OKLA.

May 26th. 1915.

Mr. B. A. McKinney,
Durant, Okla.
Dear Mr. McKinney--;
Replying to your letter of the 22nd.
relative to our transfur from the Dallas Federal Reserve distritt
to the Kansas City district. I hav- delayed answering a few days
in order to give the matter full consideration and to have a
conference with Mr. Conrad of the First National Bank here.
I desire to state in the begining, Mr. McKinney, that
personally I regret to leave the Dallas district as much on y'ur
account as any thing else. If we had not intered in the contest
to have this part of Oklahoma transfured to the Kansas City
district, I would not do so now, but at the time we filed our
protest it looked as if we could be better served from Kansas City
than fro_ Dallas, having had no connection at all with Dallas.
I believe now, however, we could be just as well served,
and would be just as well taken care of at Dallas as at Kansas City.
But the transfur having been made because of our protest as well
as that of a majority of the banks in southern Oklahoma, I feel
that in justice to them we could not well afford to switch to the
other side now, having gone of record as favoring the transfur we
would be simply reversing ourselves in the matter.
Mr. Conrad is of the same openion, even more so than I,
and if would be of little use for me to favor the Dallas district
unless we both join in the same request. I believe that inasmuch as
the matter has already been thrashed out, and the transfur has
been ordered, it would be well to let the matter stand as it is.
We have been treated exceedingly nice by the Dallas bank
altho we have not asked for any accommodations, they have offered
to grant them in case we should need any. I hope if the transfur
Is made it will not affect your relation with the Dallas bank.
Assurin7 you of my very best wishes, I am,
Yours very truly,

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

c---a
President.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FEDEPAL

This will acknowledge the receipt of :Tour
letter of .May 21st_pgiag that Johnston County be
retained in the 7ansas City District.

CRVE BOARD FILE

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Your telegram of :lay 22nd, stating that
11

the roarr ancement of thirtieth lines is very satis,
factory to the bankers and people of Oklahoma, and
asking that no further change be made, is received
ard will be brolicht to the attention of the 2ederal

7r. J. Ds Lankford,
State Bank Commissioner,
Oklahoma City, Okla.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD
May 22nd, 1915.

My dear Governor:qi*
In reference to the attached
letter\from Mr. McCaleb of the Federal ReSi-Fie- Bank of Dallas, I respectfully suggest
that he be authorized to rediscount with the
Federal Reserve Bank of Kansas City any paper held for member banks transferred to the
Kansas City District maturing after the date
of such transfer.
You will recall that the opinion on this subject published in the bulletin,
was modified so as to include this recoritmendation.
Please let me know whether I
shall prepare the letter and for whose signature.
"ery sincerely,

Hon. Charles S. Hamlin,
Governor.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Your telegram of the twenty-first,', stating
that you desi -ce to remain attached to the '',fmsas City
?edeml Reserve BtAnk, is received and will be brought
to the attention of the Federal Reserve Board.
Very respectfully,

The Brollide State Ban's,
Bromide, Okla.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

that you deoiro to remain attached to tho '::crILlas City
Federal lieserve Bank., In received and will be brought
to tfte attention of the Federal ':;aserve 3oards,

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BOARD FILE

yoa desire to remain attached to the Kansas City
".ederal Reserve Banic, is received and will be brought
to tie attention of the Federal Reserve
Very respectfully,

pmt,

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

iiA
1915.
14V 22,

Dear SiriYour telegra_of :jlay 22nd, statinc: your
desire to remain attached to the Kansas City Federal
P,esorve Bar%, in recoived and will be brought to the
atteation of the '2oderzl Reserve Board.
Ver,: respectfully,

?he Arst iatini. Ban;
Creek, Okla.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DUARD FILE

(
7'
Lay 22, 1915.

4
"
,0
The Bank of eontotoc,
Pontotoc, Alehoma.
Dear Sire:
Your telegrnm of 1.ay 21st

relative to your

preference for Trederal ;Ieserve City in the event of your
affiliation i-ith the 'ederal :( s-orve System, is received
,

and 'gill be brought to the attention of the ?eder,a Reserve
,
'o rd,

V r-.7 rnectfully,

`'ecretary„

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Lay 22, 1915.

TheTirst
T:Lehomingo, Mahoma.

Your to1ecr

or Lay 21t

relvtivo to the anproval

by your 7
'oard of Directorl of tho change in the linne of thn
-Weral 7(Iserve 'astrictr, in

:.lahoLla, in r ?ceived; an?' will
,

be brolOit to the att, mtion of thl 7edera1
:

eserve Board.

'cry respectfully,

Fecretary.

,
reasurg . ,,e4Yartntent

•

38WU MO 10

MILL CRETa Okla

1230pm May

Federal Reserve Board

Washington D C
We desire not to be put back in Dallas district

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

First National Bank

231pm

•
1
4,reasurB pepartment
TELEGRAM

15WU

40 DAY LETTER
=BURN OKLA (10am) Lay 22 1915

Federal Reserve Board
Wash i n D C

Should we be permitted as a State Bank to affiliate with the
Federal "eserve Bank system

We would prefer relations with

Kansas City in preference to Dallas Texas
record to this effect

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

We wish to go on

Letter of confirmation follows

First State Bank
11,)oam

Form 1201
CLASS OF SERVICE

SYMBOL

CLASS OF SERVICE

Day Message

SYMBOL

Day Message

Day Letter

Blue

Night Message

Nite

Night Letter
N L
If none of these three symbols
appears after the check (number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

Day Letter

GEORGE W. E. ATKINS,

NEWCOMB CARLTON, PRESIDENT
VICE-PRESIDENT
BELVIDERE .BROOKS,

VICE-PRESIMENT

Blue

Night Message

Nite

Night Letter
N L
If none of these three symbols
appears eter the check (number of
vwords)this is a day message. Otherwk,i:3 character is indicated by the
, bol pearing after the check.
JL

RECEIVED AT
c4.1A OP

4"."

30 NL

"
,
•

3 X
OKLAHOMA

CITY OKLA MAY

22 1915

FEDERAL REHRVE BOARD
RESERVE
WASHN DC
THE REARRANGEMENT OF THIRTIETH LINES AS RECENTLY MADE IS VERY SATIEFACTOP
TO BANKERS AND THE PEOPLE

GENERALLY OF OKLAHOMA

I TRUST YOU WILL NOT

CONSIDER FURTHER CHANGE

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J D

LANKFORD STATE BANK COMP
554PM

•
FIRST STATE BANK
•4 1,LI

L. HUNNICUTT P REsiLEIN)-24)
'

,
' -.5,117,2,n •

:+ Vrveq
t
-

FED:RAL RESERVE 80,I1D FILE

E. G. PATE. VICE PRESIDENT

0. •

MI LEW R N,OKLAHOMA.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

May 22,

The Federal Reserve Board,.
Washington, D. C .
Dear Sirs:•

This will confirm out telegram of
today requesting you to let Johntton County
remain in the Eleventh Federal Reserve District instead of being transferred to the
Tenth District at Kansas City.
While we are a State Bank yet
should we decide to become a member of the
Reserve Bank, we would prefer being in the
Dallas District instead of the Kansas City
District for the following reasons:
1st. We are much closer to Dallas.
In going to and from Kansas City it requires
four days to make the trip while one can
leave here tonight and get into Dallas in
the morning. Returns can be had much quicker
by routing thru Dallas than Kansas City.
2nd. The Officers of the Dallas
Bank, being southern men, understand the
conditions of the Southern part of this State
much better than the Kansas City Officers.
We, being in the cotton belt, send all of
our cotton drafts soath. Also the wheat and
oat drafts.
There are other reasons why we
prefer to remain in the Dallas District.
would
Trusting that you may see fit to
at least let Johnston County remain in the
Eleventh District, I am,
Your

truly,
resident.

9ltxHIER

:I.

Form 1201
CLASS OF SERVICE SYMBOL
Day Message
Day Letter

Blue

Night Message

WESTE

UNI8N

Nite

Night Letter
N L
If none of these three symbols
appears after the check (number of
words)this Is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED

CLASS OF SERVICE SYMBOL
Day Message

AM
5

NEWCOMB CARLTON,
GEORGE W, E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

Blue

Night Message

TEL

Day Letter

Nite

Night Letter
NL
If none of these three symbols
appears after the check (number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

AT Wyatt Building, Car. 14th and F Sts., Washington, D.C. ACX:;4S
(

B57C AN 37 NL
?Th

M BROMIDE OKLA MAY 21 1915
FEDERAL RESERVE BOARD /67)

WASHINGTON DC
WE UNDERSTAND THERE IS AN EFFORT BEING MADE TO PLACE
US IN THE DALLAS DISTRICT AGAIN ALL OUR CONNECTIONS ARE
WITH KANSAS-CITY WE WERE WELL PLEASED 'A1EN CHANGED TO KANSAS-CITY
AND ASK YOU TO LEAVE US THERE

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BROMIDE STATE BANK
1115P

•

Form 1201
CLASS OF SERVICE SYMBOL
Day Message
Day Letter

Blue

Night Mepsage

WESTE

Nita

N L
Night Letter
If none of these three symbols
aprears after the check (number of
words)this is aday message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT
i 3(A

TEL
GEORGE W.

WESTERN UNION
111\i

UNION
AM

NEWCOMB CARLTON, PRESIDENT
E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS,

VICE-PRESIDENT

CLASS OF SERVICE SYMBOL
Day Message
Day Letter

Blue

Night Message

Nita

Night Letter
NL
If none of these three symbols
appears after the check (number of
words)this is aday message. Otherwise its character is indicated by the
symbol appearing after the check.

Wyatt Building, Cor.14th and F Sts., Washington,D.C. Arpigs P1 I I'
) •-!"
"

25 NL

MANNSVILLE OKLA MAY 21 1915
FEDERAL

RESERVE BOARD. /„.3

1
99

WASHN DC'
WE URGE JOHNSTON COUNTY
••••••••••....

CLEARINGS AND

REMAIN' INCLUDED KANSASCITY DISTRICT EXCHANGES

PRACTICALLY ALL FINANCIAL TRANSACTIONS OF JOHNSTON

COUNTY IN REGULAR TRADE PURSUIT SEEK NORTHWARD CHANNELS

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FIRST

STATE

BANK
11 1OPM

Pre.!dent

C
.V.WOLVEWTON, ashier

11,Z*4.11:171111.1cti9VIre-?resident
•

•

THE FIRST STATE BAINTIE
MANWPINIXALE,COMMA-

May 21,

1915

Hon. Federal Reserve Board,
Washington, D. C.
Gentlemen:
There is respectfully transmitted herewith confirmation
of our telegram this day sent you by Western Union telegraph.
We respectfully beg to inform your honorable Board that,
in our opinion resulting from a banking eiperience in this
-'advised to
locality extending over fourteen years, it is ill.
attach Johnston County to the Dallas, Texas district. The
transactions resulting from the channels of trade do not seek
Dallas. This latter city is unknown to Johnston County as a
clearing point. No railway serving Johnston County reaches
Dallas except through connecting lines. This county is served
by one trunk line penetrating centre direct to Kansas City with
two daily mails; another trunk line near our border serves
us direct to Kansas City with three daily mails. The iransmittal
of mails, therefore, is more satisfactory northward to Kansas
City than southward to Dallas.
We earnestly desire and hope Johnston County, after
these considerations, will remain intact wi
ties in the district it's avenues of t
Kansas City.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Respectfuk

ister couny trend. Viz:
L#Cashier

NFIRM AIM0N
WE SENT YOU A TELEGRAM THIS DATE PER

THE WESTERN UNION TELEGRAPH COMPANY
OF WHICH THE FOLLOWING IS A CORRECT COPY:

Mannsville, Johnston County, Okla.
May 21, 1915
Federal Reserve Board,
Washington, D. C.
We urge Johnston County remain included Kansas City
District. Exchanges, Clearings and practically all
financial transactions of Johnston County in regular
trade pursuit seek Northward channels.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

First .State Bank.

Form 1201
CLASS OF SERVICE

SYMBOL

CLASS OF SERVICE

Day Message

SYMBOL

Day Message

Day Letter

Blue

Night Message

Nita

Night Letter
N L
If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

Day Letter

TEL
GEORGE W. E. ATKINS,

tr
i

e,
1

NEWCOMB CARLTON, PRESIDENT
VICE-PRESIDENT
BELVIDERE BROOKS.

VICE-PRESIDENT

RECEIVED AT

Blue

Night Message

WESTERN UNION

Nite

Night Letter
N L
If none of these three symbols
appears after the check (number of
words) this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

MAY1915

1(248 0H:27 'BLUE :VIAI'TISHOMINGO
PONTOTOC :0111. 21

• ,f)

FEDERAL 'RESERVE :BOARD
WASIIINGTON

IN CASE 1WE :SHOULD.'BE .pERMITTED TO AFFILIATE::WITH. THE :FEDERAL 1
RESERVE : BANK SYSTEM .IN. THE FUEURE :WE::WOULD :PREFER ,aRELLTIONS.WITH
KANSAS°ITT-.IN :plkEFER3NCE TO .DALLAS .

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BANK OF t PONTOTOC 10 KLA;
.

Form 1201

Day Letter

Blue

WB&TELM

Night Message

Nite

WISTERN, UNION

GLASS OF SERVICE

SYMBOL

Day Message

Night Letter
N L
If none of these three symbols
appears after the check number of
words) this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

CLASS OF SERVICE

UNICIN

•,i)14

TEL,'iiW" AM
GEORGE W. E. ATKINS,

N EWCOM B CARLTON, PRESIDENT '
VICE-PRESIDENT
BELVIDERE BROOKS.

VICE-PRESIDENT

SYMBOL

Day Message
Day Letter

Blue

Night Message

Nite

Night Letter
N L
If none of these three symbols
appears a`ter the check ( number of
Words this is a day message. Otherwise its charc.cter is indicated by the
symbol appearing atter 0
,tigck.

RECEIVED AT

MAYO)

V247 CH :26 BLUE
T ISHOMIN GO :OKLA:

2 P. 21

FEDERAL 'RESERVE :BOARD.
WASHINGTON DC
. THE :CHANGE . FROM DA LLKS TO KANSASC IT Y :DISTR IGT1 MEETS . WITH. THE:
A PPROVAL OF.THE I BOARD OF D/RECTORS OF THIS BANK AND:,WE IIREFER ;
TO .RE MIN WITH : KANSAS°LT'I

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FIRST '; NAT L BANK.

DO.SCY

•
No.5809.

FIRST NATIONAL BANK
CAPITAL $ 25,000

A.B.DuNLARNcsioemT.
hoer.,
J.TSADLEF,,
D.C. TETER, CAsille,
LSTALuNGs, Ass1R.

TISHOMINGO,OKLA,;-

L:ay
'beve PoarC,,
Vi&shington, D.C.
Gentleen:—
This will confirm cur telegram c)f today_,
relative to Federal fleserve District as follows
"The change from Tiaras to Kansas City District
mects with the approval of the Foard of Directors
of this bank and we prefer to renain with Kansas City".

Federal

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Very truly,

OALLAs

LORAL REIERVi
••

1.7ay 21st., 1915,

Memorandum for lir. Harding.

)
„'

"-eqiie

question of including Coal, Johnston

Atoka

nd Tillman Counties, Oklahoma, in the district transferred
to Kansas City from Dallas has been brought before the
Board very actively durinc the oast week or ten days and
,yery dethe attached papers have grown out of it . It ise
sirable to reach a decision on the status of these counties at an early date.
At a meeting of the Board on /Jay 20, these papers
were referred to you for use in connection with such repOrt
as you might make regarding the status of these counties.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secretary.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

R . L . E LI— O0N ,VicE-PREsr.
F. H.SH ERWOOD,vicE-PRE.sr.
ELMO SLEDD,V,cE-PREsT
R. E. HAR DING,VicE-PREsT.
E. B.VAN ZAN DT,Vicc-PREsr.

K. M.VAN ZAN DT, PRE'Si

W. M MASSIE ,CAsHIER
GEO.MASSI E,AssT.CAsHtER
R.W. FE NDER,AssT.CAsmiER
R.C.GEE,Assr CASHIER
H.R. SANDIDGE,ASST CASHIER

. TIIE Fowl'wownI NATIONAL HANK
CA1.1'1'11,• t;0()
()0()
' ti

SilltPLUSRi

l'11()FITS

FOI{T WO1CTII.1'EXA5

May 21-1915

Mr. 2. A. McKinney,
Durant, Oklahoma.
Dear Mr. McKinney:I had a talk with both Lir. Morrie and Mr. Conrad yesterday, and find that idr. I:.orris seems to wEnt to remain in the Dallas Distridt,
also Mr. Conrad expressed an inclinstion that way,
but vas not as emphatic as Mr. Morris.
The fact that they have already been changed, and I think made application some time ago, leads
idr. Conrad to believe that the Federal Reserve Dank
might think they did not know their own mind. I
would suggest that you write to them and urge upon them
the importance of the Counties along the border remaining in the Dallas District, for there is no doubt but
that the Dallas bank can serve them better, in my opinion, than the Kansas City bank.
If I can be of service to you, do not hesitate
to call upon me.
I am,

rith kindest personal regards, and best wishes,

•

DISTRICT

NO. 10

•6Vt•

ECTOR
Ca

OFFICER:
J. Z. M ILLER,

DEPUTY FEDERAL RESERVE AdT
CHAS. M. SAWYER

EY.

AATC

.SON. KANS.

,,,....,tbstrrerlYWNii AA:NORFOLK, HER.

F EIDERALRESERVEAGENT
.

ASA E. RAMSAY.

F14 DEBAT. RESERVE
:

GOVERNOR
JEROME THRALLS

T. C. BYRN E.ONIANA, HER.
GORDON JONES.DENvER.CoLo
R. H. MpWONE, DENVER, COLO.
ON. L.
CLURE,KANSAS CITY. Mo.
W L—..,
KANSAS CCTV, MO.
J.

KANSAS CITY,MISSOURI

-CASHIER
SEC.

L. AI
41tSQt

L. REND, GALA.

Eay 20, 1915.
Honorable W. P. G. Harding,
Member, Federal Reserve Board,
Washington, D. O.
My dear Er. Harding:

In re application of banks in Coal
and Johnston Counties, Oklahoma, to
be transferred to the Dallas district4

In line with our cOnversation of yesterday, I am now writing you
concerning the banks in these counties.
In Coal County there are four national banks and five State banks
The national banks are as follows:

Tupelo,
Coalgate,
Lehigh,

capital & surplus
Farmers National Bank,
,;
(
328,000
First National Bank,
36,000
Merchants National Bank,
25,000
Lehigh National Bank,
25,000

In Johnston County there are six national banks and eight State
banks. The national banks aro as follows:
Mill Creek,
Milburn,
Tishomingo,

Wapanuaka,

First National Bank,
First National Bank,
Farmers National Bank,
First National Bank,
Tishomingo National Bank,
First National Bank,

00,000
27,500
33,000
30,000
30,000
30,000

' The First National Bank of Milburn and the Tishomingo National Bank
of Tishomingo belong; in whole or in part, to Mr. B. A. ("Buck") McKinney,
who is, as you know, a director of the Federal Reserve Bank of Dallas.
This bears out the suggestion of an important banker in Oklahoma to the
effect that this new movement on the part of the banks in CDal and Johnston Counties, more than likely, was inspired by McKinney, who, doubtless,
is anxious to have as many as possible of his Oklahoma banking friends
members of the Federal Reserve Bank with which he is associated. We understand McKinney has nine banks, all of which are in the Dallas district, except the two above mentioned.
It seems to us but reasonable that inasmuch as these banks were parties to the petition praying to be transferred from the Dallas district
to the Kansas City district and that their prayer was granted, it is too
soon for these counties to file an application for transfer to the very
district from which they were so anxious to be transferred.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-2
-

It further seems to us that it would Drove a dangerous preccident for the Federal Reserve Board to seriously consider the application of as small a section of country as two counties, favorable action upon which would stimulate a flood of applications
from time to time of banks located in border counties of the various districts asking, for trivial reasons, to be transferred to
other districts,

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Yours truly,

Federal Reserve Agent.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

t‘t BESVtE BOAAD FILE

FEDERAL RESERVE BOARD
Yay 19th, 1915.
14 dear Governor:In further reference to
suggested
form of decrees to be entere
d in the matter
of review of the decision of
the Organization Committee, the forms
submitted have
been handed me by Yr. ":arbu
rg with the suggestion that the twu decree
s be consolidated
and that consideration of
the question of
designation of Federal res
erve cities be
continued generally withou
t any expression
of opinion on the part of
the Board as to
the present necessity for
change.
I am holding these until adv
ised
by the Board of its conclu
sion in the matter of .1ohnse.a. Coal, Atoka and
Illaz
...g2kpaiga,
As soon as advised as to
this
I will redraw and submit the
se decrees with
the changes suggested.
Very sincerely,

Hon. Charles S. Hamlin
Governor.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

140

FEDERAL RESERVE BOARD /
; 4 )49
'
11 7

May 19th, 1915.
SUBJECT:

Petition of member banks in
Tillman
County, Oklahoma, to be retain
od in
Dallas District.

de-tr qovernor:-

431
4!,

I have xad the attach
ed file
and the reasons assigned
by petitioners
undoubtedly deserve consid
eration. I
an. not entirely sure, how
ever, just
how this matter stands wit
h the 'Board.
Is it the purpose of the Boa
rd
to reopen consideration
of this petition
and do you desire report
made on this
and other adjoinina cou
nties located
on the border line betwee
n the two districts?
Very sincerely,

Hon. Charles S. Haulli
n,
Governor.

SP10 - )
'
,
WO 2
4on's

4
•

FILE
V.-.11AL REElIVE BOAED

DISTRICT NO. 10

OFFICERS:

DIRECTORS

J. Z. M ILLER,JR.,
rEOERAL RESERVE AGENT
ASA E. RAMSAY.
DEPUTY FEDERAL RESERVE AdT
CHAS. M. SAWYER
GOVERNOR
JEROME THRALLS
SEC.-CASHIER

W. J. BAILEY, ATCHIS
C. E. B u RNHAM,NORF
T. C. BYRNE,OMAHA,
t0 60
.
)
F TO E5. Dc N
4
C
NN

FED} AL RESERVE

LURE,KANSAS CITY, MO.
J. Z. MILLER,JR., KANSAS CITY, MO.
A. E.RA
AY, KANSAS CITY, MO.
L. A. w
ON, EL. RENO, OKLA.

KANSAS CITY;MISSOURI

May 17, 1915.

(
11°

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

N, KANS.
LK, NEB.
B.
,6Cfo
R o LD.

Federal Reserve Board,
mshinuton, D. C.
Gentlemen:
This will acknowledge the receipt of your_a7i-____
tion of the 14th instant tjenclosing co- 7- of opinion of
.
Camel of the Board relative to the rediscount status
of banks included in territory which has been ordered
,

transferred from one Federal reserve district to another.
We thank you for this information, and are passing
same to the Governor of the Bank.
Respectfully,

Chairman of the Board.
,
"v
<9
.

4t.T
r,

;

C.)

9'a

,.44%

•

FEDERAL RESERVE BANK
OF DALLAS

May 17,1J15.

Federal Reserve Board,
lashington,D.C.
Gentlemen:
1 11 the tr.
elfth instant, a letter was
addressed to :r.lIarding, dealing with one phase
of the problem involved in the transfer of the
Oklahoma banks to Kansas City.
We hold the view
that when the ca'Atal and reserves of the 0- :lahoma
.
banks are transferred to Kansas City, the redisa)unts held by this institution from the transferred banks should also be taken over by Kansas
City.
Today we have the o-dnion of y ur Counsel
to the effect that it is not necessary legally that
the transfer of the re-discounts should be coincident with the transfers of capital and reserves.
In a word, then, it should be left optional with
this bank whether the re -discounts shall befbrwarded
to Kansas City at the time of the other transfers.

It is possible that our necessities may
coml9e1 a general liquidation;
otherwise we
have no objection to carrying this paper to aturity.
shal0

c
\
I

We shall very much appreciate an early

,
'

3
..

ruling.

•;':
0'
Yours very truly,

.....,...........0.11.
...................„

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Federal Reserve Bank of St. Louis

-t€4:

Deputy Federal Reserve .A.gent.
WFMcC/T.ISK

I-

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Federal Reserve Bank of St. Louis

S
syfis

May 17, 1915.

Dear Mr. Huff:
I have your note of May 14th,
enclosing copy of letter from Mr. Howard,
dated May 5th, and of th,- First National
Bank of Grandfield, Oklahoma, dated May
12th, enclosing petition of memb(x banks
in Tillman County, Oklahoma, to be permitted to remain in the Dallas District.
This matter will receive the careful
attention of the Federal Reserve Board.
Very sincerely yours,

(Signed) C. S Hamlin Charles C. Huff, Esq.,
Counsel, Federal Reserve Bank of
Dallas, Texas.

FEDERAL RESERVE BANK
RECEIVED

OF DALLAS

ft,

MAY 1 7115
GovaRtNows OFFICE

CHARLES C. HUFF
COUNSEL.

May14, 1915.
.

RESCAVE BC;,Viti.) f
Mr. C. S. Hamlin,
Governor, Federal Reserve Board,
Washington, D. C.
Dear Mr. Hamlin:
herewith hand you copy of a letter written by 1:r.
C. W. Howard, President of the National Bank of Commerce,
Frederick, Oklahoma, to Mr. R. L. Van Zandt, Governor of the
Federal Reserve Bank of Dallas, under date of May 5th, and
letter from the First National Bank of Grandfield, Oklahoma,
under date of May 12th, requesting that the enclosed petition
of the member banks in Tillman County, Oklahoma, to amend the
order of transfer so as to permit this County to remain in the
Eleventh District, be filed with your Board.
Tillman County is on the extreme edge of Oklahoma,
and just across the Red River from Texas, with direct mail
connections with Dallas.
These papers are respectfully referred to you for
your consideration.
Yours truly,

Enc.
CCH-RS

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Federal Reserve Bank of St. Louis

COPY

Frederick, Okla., 5/5/15.

Hon. R. L. Van Zandt,
Governor, Federal Reserve Bank,
Dallas, Texas.
Dear Sir:
I wish to request, in behalf of the national banks
of Tillman County, Oklahoma, that you take such action as you
think wise to prevent these banks from being forced to become members of the Regional Reserve Bank of Kansas City.
This County is so situated that the natural course
of trade and railroad communications throw all its products,
cotton, cattle, hogs and grain, on the markets of Texas.
Our mail reaches Dallas within twelve hours after
being mailed, and in case of a trip to Dallas, we lose only
one day from business.
We would be forced to lose four days from business
in case of a trip to Kansas City, and we get returns from
mail to Kansas City in three days.
We lie in the extreme Southwestern portion of Oklahoma, adjoining the Texas line, and our interests are knit
together with those of Texas.
Such a connection as ours cannot be severed without
material loss, which loss would continue to grow as our business grows, and our interests can never be reconciled with a
connection that leads us away from our lines of trade, our
established mail routes and our financial interests as long as
we remain an agricultural and stock raising country, as we are.
We therefore most heartily protest against the unnatural connections that woulc cost us so much, and request
you to use every legitimate effort in your power to protect
our interests.
We are getting the signatures of the national banks
of the County and will forward them to you.
Yours truly,
(Signed) C. W. HOURD,
Pres.

CWHATUP

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Federal Reserve Bank of St. Louis

COPY

Form 40

TELEGRAM
FEDERAL_

.
7,D ;1'j

RESERVE BOARD'
WAS HI N GTO N

Naar 14, 1915.

W. P. G. Harding
New St. Charles Hotel
New Orleans, La.
as ti
Board mould like to have you if possible ascertain the facts4
.
of inc1uding.Goal-s44,4oston Counties, Oklahoma, in terridesirability
to Kansas City district from Dallas. Some bankers protory transferred
test against inclusion. Board at meeting this morning suggested that you
might be able at Dallas and Kansas City to ascertain real facts in the aamb

H. P, Tillis

OFFICIAL BUSINESS
GOVERNMENT RATES
CHARGE
FEDERAL RESERVE BOARD

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Federal Reserve Bank of St. Louis

OFFICIAL

I-LOL1AL OEStIVE MAU FILE

AI,L;1411

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Federal Reserve Bank of St. Louis

May 14, 1915.

By ,
Aroction of the :otlaral 7csorve
Bcr.ird I trans:nit for your information a copy
Of an opinion prepared b7 Coansci of the
2oard relative to tho rediscount statas of
larao included ia torritoryw:ilich has boaa
ordored trausforrod from ono Federal roserve
district to 41nothor.
lespectfuillt,

,ocrotary.

nr. 3. 0. Tonison,
,21:41raa, Board of Aractors,
::edoral -cserve 131.:11c,
Dallas, .2ox3s.
Inclosure.

.••••

FEDERAL RESERVE

Fdl

7:7=

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Federal Reserve Bank of St. Louis

:Ia7 14, 1915.

direction of the FoOor*1 P,esorvo
Doarei ttranamit for your information a

Copy__---

of an opinion preplrod by Coansol of tho
Board relative to the rodiscount status of
ban1:3 incluCn: tn terriaiory which haa bo-an
orderod tr.Insforred fro - ono 1 oderu1 roaorvo
,
district to •Anothor.
Tospoctfully,

ocretary.

ar. 3. Z. 1111r, Jr.,
Chsirlan, BoIrd of Directors,
2o1era1 Reeorvo
Transan
7Lo.

Inclosure.

BOARDJILl

1
;

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Federal Reserve Bank of St. Louis

•

.Le,y 13, 1915.

B. A. 1.1oKiu2eys rag.,
Vico 2reol1ent, riurant 1:at1ma1 Back,
Durtnatt Oklahcca.
Dear

LclUnney:
1 havo jour .iiote of

10th.) I received

,
2,eunty,
yollr toleGram as to the bas41s in Johnston ,
Okla/lona, and sent it to tho ',:eeretary to be placed
upon the docket for consideratin by the
Reserve board.

,
I had oupposod that the 'ecretary

had acknowledged it aad asked him two days 26.0 and
found that it haa not been aclz.owledaed.
asked him to formally acknoi'iledcp it.

I thereupon

It is unnecessary

to say that tho matter will receive the caroful attention of the Fedora/ Henervo Board.
Believe re,
Very truly yolxo,

EZIgnedl 0. s. Hamlin;

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Federal Reserve Bank of St. Louis

•
FEDERAL RESERVE BANK
OF DALLAS

Ur. W. P. G. Harding, Member,
Federal Reserve Board,
Washingto , D. C.
Dear Ur.Harding:
On my arrival here today, among other
things which have been called to my attention, is
the proposed transfer of the Oklahoma banks
with their lalances and capital to the Kansas City
Bank.
•
77e are decidedly of tile. opinion that the
only eouitable way in which this transfer can be
made is for the Kansas City bank to assume, or
rather take over, the re-discounts which we are
how carrying for the banks which have been cut from
this district.
In other words, we think that we
are right in insisting on this being done. It will
help re-establish our depleted balances.
Kindly ad110_212 ALIzgar_garliest convenience
.
whether or no weare correct_in_tging this view.
le are taking the liberty of forwarding a
copy of this letter to 'a% J.
Miller of the Kansas
City Bank.
With kind regards, I am

Sincerely yours,

Depaty Federal Reserve Lent.
WFLIcCI_M

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Federal Reserve Bank of St. Louis

My 12,1915.

Mr. J. Z. Miller, Chairman,
Federal Reserve Bank,
Kansa

CIA-, Mo.

Dear Mr.Lliller:
Herewith is cony of letter addressed
to Mr. W. P. G. Harding.

be to
s
e
Kin
venience,
touched u

ha
es us-ttpc way
re
11 of the ad
ou
se.\
ed
n
at
/
hein b °fly(
e ma ers

Sincerely yours,

Deputy Federal Reserve
71"11cOPISK
Encaosure.

01'0

-____..,-__
______........................,
,
FEDERAL flEsEnve
U0,:it3i) FILE I

I
1

.,•

t?4
Agy 12, 1915.

S I R

Yr tele,7ram of :a1.7 Eth4o the 'Federal
7esorve Board with reard to the retention of
Johnstos„Quanty,„9,1aga, in the LO.ias Federl

3er;District has been received.
---;
/ shall be - is,d to send 7oll a cogr of the

fornal ordor

issued.
Res2ectfu11y,

Secretar7.

Hon. Tilliam Murray, D. C.,
2ishom1nco, 31ahona4

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Federal Reserve Bank of St. Louis

P/eGe/

'1
I

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Federal Reserve Bank of St. Louis

....
Yolr t_71ze.eclnof i._".a.LL31:111,o the
Pedoral 'eserve Board with resard to the
retention of Johnston coant79 Oklahoma,
Ii the Dallas -ederal Yeservc District
br:en receivad.
shall 1A9 cla

to send you a cox

Of the forral order when Issre(3,

(AD

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Federal Reserve Bank of St. Louis

FEDERAL IIESERVE 6'0ARD FILE

"Lay 12, 1915.

Your telegram of Lai Ahito the
7ederal "lencrvo Board witA re-Ard to tho
reteron of Johnzto.:1 a9
.
,
217:10111.2n2za, in
the "'alias '
.cderal
,

ocorvo District has been

receivca.
nhall he glaet to send ycu a copy
of the formal ordor when innued.

3ccrotary.

The First Nat1on41 Lank,
:11burn, Mtlahoma.

V-14/

F.V-.=E-NR7a51-1 PRESIDENT.

•

0.E.M AP E L , CASHIER.

C.M.HUNTER,AssT. CASHIER

110

NO.10006

i 2_ ?

(21W231137-'.

tiam.....1..N2MEM5MaltreaMlw.
MTDIVEIN`Al. RESPONSIBILITY 0 500,000??

00.S,

%vaa..491lay 12,1915.

CALL!.

Mr. Chas C. Huff,
Dallas, Texas.
Dear Sir;Enclosed find petition of all National Banks
in Tillman Co asking that we be allowed to remain in the
Dallas district, and I certainly hope that you will be
able to hold us, With kind personal regards, lam,

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Federal Reserve Bank of St. Louis

Yours very truly,

To The Federal Reserve Board,
Washington, D. C.
Sirs:
We the undersigned

being all the members in

Tillman County, Oklahoma, of the Federal Reserve Bank, of
Dallas, Texas, hereby respectfully petition your Honorable
Body to be excepted from your order of transfer of that
part of Oklahoma, now in District Eleven to District Ten,
believing our interest can be best served through Dallas
for the following reasons.
First:

Ninety per cent of our Cotton, Live

Stock, Wheat and other grains are marketed in Texas and
Southern markets, consequently a corresponding proportion
of our exchange is on Texas points, which can not be handled advantageously through Kansas City, on Grain and Produce shipped to Southern markets, drafts with bill of
lading could not be handled through Kansas City, and we
would be put to great expense in transferring funds.
Second:
service

The accessability of Dallas. Our mail

is such that letters or Express leaving here reache,

Dallas, within twelve hours and is cared for in the following days business and we have returns within thirty-six (36)
hours after items mailed by us, while if sent to Kansas
City, the same items would not reach Kansas City until the
second days business and we would not have returns until
fourth day after mailed by us.
The Express rate on Currency per thousand to Dallas is fifty (50) cents, and to Kansas City Seventy five (75) cents.
Passenger fare to Dallas'is Five and
90/100 (5.90) Dollars, and to Kansas City Eleven and 40/100
(11.40) Dollars.
Third:

The directors of the Dallas Bank,

being personally acquainted with the crop, climate and trade
conditions in this Section, which are identical with conditions across the River in Texas, we feel are in better

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Federal Reserve Bank of St. Louis

•

position to handle the business in this
County than can the bank at Kansas City.
Therefore, we respectfully petition you to
leave Tillman uounty, in District Eleven, if possible,
thereby facilitating a more prompt handling of the majority of our business at a less expense than can possibly

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Federal Reserve Bank of St. Louis

be done through Kansas City.
That by a transfer we will be put to unnecessary and increasing expense as our county and business
developes and increases as it is sure to do and the delay
in transit can never be overcome.
Respectfully submitted this 10th. day of
May, A. D. 1915.
The National Bank of Commerce.
Frede iok, Oklahoma.
by
President.
The First National Bank,
Frederick, Oklahoma.
by
President.
The First National Bank,
Grandfield, Oklahoma.
by

•
Cashier.

DISTRICT NO.10
OFFICERS:

•
DIRECTORS:

J. Z. M I LLER,JR.,
FEDERAL RCSERVE AGENT
ASA E. RAMSAY,
DEPUTY FEDERAL RESERVE A&
CHAS. M. SAWYER
GOVERNOR
JEROME THRALLS
-CASHIER
SEC.

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Federal Reserve Bank of St. Louis

FEDE

RESERVE BANTIC
ICANSAS CITY,
MISSOURI

FED:11AL il:ZERVE

W. J. BAILEY, ATCHISON, KANS.
C. E. BU RNHAM,NORFOLK, NEB.
T. C. BYRNE,OmAHA, NEB.
GORDON JONES.DENYER,COLO.
ER, COLO.
L
AS CITY, MO.
ANSAS CITY, MO.
SAS CI,, MO.
L. A. WILSON, EL
no, OKLA.

Ilay 10, 1915.

Federal Reserve Board,
Washington, D. C.
Gentlemen:
This will acknowledge the receipt of your communication of the 8th.instant,Aenclosing cony of letter sent to
Governor Rhoads of Philadelphia relative to details of
transfer of banks shifted from the Philadelphia to the
New York district, and suggesting that this plan might be
followed by other banks.
Respectfully,

Chairman of the Board.

JAS. R. MSIEY.PRESIDENT
B.A. Mc KINNEY, VICE-PRESIDENT

W.
NO.5590.

—

FEC—FAL

rIESErgim6A1‘-itsTitit

Tim DuRAtivir XSZtIONAL BANK
CAPITAL $100,0 0.00
SURPLUS $100, 00.00

•

D uRANT,OKLAii0NA, May

10,1915

)
htECEIVEL
Chas. S. Hamlin, Governor,

mAY 1 31915
GOVERNOFt'S OFFICE

Federal Reserve Board,
Washington, D.C.
Dear Governor Hamlin:
Last
calling your attention to
banks located in Johnston
the Federal Reserve Board
that in any event they be

Wednesday I sent you a telegram
the fact that two thirds of the
County, Oklahoma, had on file with
a letter or petition requesting
left in the Dallas district.

As I understandLit Secretary Harrison,
who represented the petitioners at the hearing in Washington,
conceeded that Johnston County should remain in the Dallas
district. My telegram also directed your attention to the
fact that all the banks in Coal County desired to remain in
the Dallas district, as shown by letters on file with the
Board. The territory embraced in these two counties is
contiguous to that part of Oklahoma which the Board's order
has left in the Dallas district.
Up to this time, I have had no reply either
by wire or mail to my message. I thought that I would at
least have the courtesy of an acknowledgment from you with
some indication as to whether the Board would consider the
matter at this time.
Yours very truly,
BAMc-OS.

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Federal Reserve Bank of St. Louis

RECERVf EJARD FIL:1

Sir:
For your information I enclose copy of
a letter of ilay t6pent to Govorlo!. ahoads of
the ?edema ReEerve Emir of Philadelphia*
It was the tilought of the Board that all
other ?cderal reserve banks TuhVh are affected
by transfers from one district to another.,
miht, if th,,Dy chose, fcllow the

adonted

by the New Torz: nrd Philadelenla recerve banks,
,
1
and aDproved by the -. c-Jer_1 -leserve 7!osrd.
.
,
Very respectfully

Seorctary.

Mr. Z. 0. Tenison,
Chairman, Board of Dircctors,
Federal Reserve Bank of Dallas.
E=losare.

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Federal Reserve Bank of St. Louis

Otig

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Federal Reserve Bank of St. Louis

Oft*

R A 7.,

r Y.

Mai OMP

itrtirEvr

13 0 P.

7AMINGTON

My 7, 191.

B I R :Your letter, uddresse6 to Ur. - rbur
g under date
cf tkie pixth inntant 'ale read
,

t the Board

eot4riç this

r4orning.
I waa inetructva to my to you that
the Boc.rd would
bo Cisued if you 4voult no

roesed to work cut, in con-

junction with the Fodoral Leo
-or-ye Earth of New Yerk, a plan
covorint; the details of the tr4rzte3 or
tho Lars In the
territory

hits been aLifted from the PhiladelFhtft

District to the Nov York District, and
when ouch plan has
baon arranged to your Jautual t-tizfuction,
transmit it
for tho conoldoration L.21

apirovAl of the Bord itself.

have the honor to be,
Ycry maipt;ctfully,

(nimed) E. PARKER WILLIS.
r.iocrt:tary.

gr. chi..rles J. ELoade,
Governor, Federal Tleoorve Bank,
Miladelihia, Pa.

N.
4393

FiRsT NAnowm.BANK
D. LACY, PRESIDENT
J.A.BIVEN 5, VICE PRES.
C.L.ANDERSON, CASHIER
ED. SAN DUN,Ass,CASHIER
0.H.WOLVERTON,ASST.C.A51-11ER
D.R.RUSSELL,AssT.CAsHocR

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Federal Reserve Bank of St. Louis

/2 L

cAvivrAL
$100,000.
sumn.us $ io,000.
TcyrAL
$2,0,4300.

ARDMOItE,OKLA.
May
Sixth

1915.

Mr. B. A. McKinney,
Durant, Oklahoma.
Dear Yr. McKinney:
Have talked with the other banks here
relative to making application to remain in
Dallas Reserve Bank district.
The State National people are like we
are, that is, would like to remain in Dallas
district, out they say that they think it not
worth while to agitate making the change.
Stuart, President of the Ardmore National,
says he would rather be in Kansas City district;
for that reason would oppose any effort made
to put him back in Dallas district.
Personally. would much prefer being in Dallns district.
Believe we would get better treatment there as
they know us and the conditions better than
the Kansns City fellows.
But, PS all the banks
here are not united in this think it best not
to agitate the matter.
Regret can't remain
with you.
With kindest personal regards, I am.
Yours truly,

esi en

reasurg

epartment

TELEG R A M

5 ex

EISHOa,1 01:LA Lay 6 l;
LI0

////

11
)
/

fp -)
ce/

Federal Raserve Board
Wash'

.
0/
v.;

am disanoointed that Johnston my home county was not left with
Dallas district

Lr Harrison in his address to your 3oard agreed.

that Johnston County should remain with Dallas

This county should

remain with -Dallas but all the rest in my district should go to
I:ansas city

I resi,ect:7ully urge that you make an i=ediate order

transferring Johnston County to the Dallas district
VIM H Eurray, Li C Fourth ,
Dis rict Oklahoma
4C9pm

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Federal Reserve Bank of St. Louis

DURA172 OLL

ban::s in Thal County and two thirds in Johnston Calnty have lotte
or

.OtitiOi13

on file asking that they remain in Dallas District

Can

Board revise its findings as to these and other counties contiguous
to territory left in Dallas district

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Federal Reserve Bank of St. Louis

here a majority banks so desire

Form 1201
—
CLASS OF SERVICE SYMBOL
Day Message
Day Letter

Blue

Night Message

Nite

N L
Night Letter
If none of these three symbols
appears after the check (number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT
1_48A

CLASS OF SERVICE SYMBOL
Day Message

WEStEL 2
—
WESTERN UNION

Blue

'NW

t .
TELe Ilv WA
GEORGE W. E. ATKINS,

NEWCOMB CARLTON, PRESIDENT
BELVIDERE BROOKS. VICE-PREsiDERY

VICE-PRESIDENT

Wyatt Building, Car. 14th and F Sts., Washington, D.C. AC;VPittY47'
'

N L
Night 'lefts,: r
If none of thes4 three symbols
number of
appears after thefcheck
,
words)Ibis(sada) message. Otherwise its character is indicated by the
8)9)6°1 appeaOng after the check.

115
GO

BLUE

Nile

Mee;

ttoi7F1;94

MI LBURN OKLA 333PM MAY 5 1915

1 -5 7174

THE FEDEPAL RESERVE BOARD
WASHINGTON DC
JOHNSON COUNTY CONTIGUOUS TO TERRITORY
IS ON FILE WITH YOU

SIGNED BY TWO THIRDS OF

COUNTY URGING THAT THEY BE

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Federal Reserve Bank of St. Louis

THE BANKS OF JOHNSON

LEFT IN DALLAS DISTRICT CAN

YOU NOT REVISE YOUR FINDINGS
COUNTY IN DISTRICT NO

LEFT IN DALLAS DISTRICT PETITION

SO AS TO LEAVE JOHNSON

11 WHERE WE PROPERLY BELONG
THE FIRST NATIONAL BANK
456PM

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Federal Reserve Bank of St. Louis