Full text of Records of the Federal Reserve System, Record Group 82 : Boundaries of FR Districts: Dr. A. C. Miller File (Pocket), Box 264, Folder 4

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area

PETITION
OF

Certain Ranks in Southern Oklahoma

TO TI1E

Federal Reserve Board
To Change the Lines of Federal Reserve District No. 10 and Federal
Reserve District No. 11 so That All of Oklahoma Fxcept the
Counties of Marshall. Bryan, Choctaw, Pushmataha and
McCurtain will be in

DISTRICT NO. 10
11111111111111

As this petition is being filed, the cotton fields in the section askately
ing to be transferred are white with a crop estimated at approxim
1,000,000 bales. The market is demoralized and the situation acute.
corn,
Kansas City banks are well supplied with money from wheat,
cattle and other northern crops to assist in financing this product.
Kansas City is Oklahoma's natural avenue of relief for the farmer,
merchant and banker, and such relief accords with the thoroughly
established lines of commerce and finance, as the facts herein set
forth prove.

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WESTERN BANK SUPPLY CO., OKLA. C.TY

TO THE FEDERAL RESERVE BOARD,
Washington, D. C.
GENTLEMEN:
The banking and commercial interests of the State of
Oklahoma, and particularly the bankers and business men
of that portion of Oklahoma which is included in District
No. 11 of the Federal Reserve System, respectfully petition
your Honorable Board to transfer from Federal Reserve
District No. 11 to Federal District No. 10 all Oklahoma
counties now included in District 11, except the counties of
Marshall, Bryan, Choctaw, Pushmataha and McCurtain.
Why Five Counties Are Omitted.

Our reasons for not asking the transfer of the five
counties named are:
First, these counties are closer to Dallas than any other
part of Oklahoma, and are connected with Texas by a line
of railroad not serving any other section of our state.
Second, because of this peculiarly close geographical
connection with Texas, many banks in these five counties
are either owned outright by Texas bankers or are closely
associated with Texas institutions, and prefer to be in the
Dallas district.
Third, Mr. B. A. McKinney of Durant, Bryan county,
has been elected a director in the Dallas bank and we have
no desire to interfere with his services in that position. His
neighboring bankers in the five counties named, many of
whom, like Mr. McKinney, are former Texans, were ardent
supporters of him for the position referred to and would
sincerely regret, as would also petitioners, any change in
the district which would deprive the Dallas bank of his
services.
We ask that this transfer be made:
FIRST:—Because the present districting is not in accordance with the spirit of the law which provides in Section 2, "the districts shall be apportioned with due regard
to the convenience and customary course of business."
(a) Course of Business
The course of Banking business in Oklahoma has always been to the north and east. The data which we submit to you shows this conclusively to have been the case in

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the past, and also that it is the desire of the bankers in
Southern Oklahoma to continue to let their business follow
the natural channels in which it has heretofore run. The
tabulation of figures contained in reports from a number of
banks in the Dallas District counties of Oklahoma, the originals of which we submit to you, shows that during the
month of April the banks in question cleared through Kansas City items amounting to $4,737,199.58; that the same
banks cleared through Dallas no items at all, but that they
cleared Texas business, through correspondents in Denison;
Sherman and Fort Worth, to the amount of $345,617.19.
Figuring percentages upon these items shows Kansas City
to have handled 93.2%, Dallas 0%, and other Texas cities
6.8%.
The same banks received in cash items from Kansas
City banks, during the same time, $808,392.94; from Dallas
only $642.68, and from Fort Worth $8,068.79. Figuring
percentages on these items shows Kansas City to have handled 98.8%, Dallas 0.08%, and other Texas cities 11/
4%.
We invite the attention of your Board especially to a
perusal of the leters from which these figures were tabulated, as many of them show the dissatisfaction existing
among the bankers in Southern Oklahoma and their evident
desire to be included in the Kansas City District.
Oklahoma-Dallas Relations.
As showing further the trend of business toward Kansas City, we also submit for your consideration a letter from
Mr. Thralls, Manager of the Kansas City Clearing House,
showing that 381 banks in Southern Oklahoma, on May 9,
1914, carried with Kansas City banks 414 accounts. We
are advised by Senator Owen that the Comptroller's office
in April furnished him with a list of five national banks
only, in the Southern District, which show Dallas correspondents. We submit herewith letters from four of these
banks showing in each case a special reason requiring the
carrying of the account in Dallas. Statistics for state banks
are not available, but there is no reason to believe they
would alter the proportion. Accounts secured by Dallas
banks from Oklahoma since the regional districts were established should not be construed as due to the natural trend
of business.
Dallas banks have evidently recognized that the trend
of business in Southern Oklahoma is to the north and east,
because we have never heard of banks in that city soliciting business in Oklahoma, nor have we seen representatives
of those banks at Oklahoma Bankers' Convention, until

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the last one held in May, 1914, just after the announcement
was made showing the boundaries of the reserve districts.
In proof of the fact that Dallas banks have not sought business in Southern Oklahoma, we submit a letter from the
City National Bank of Dallas, dated May 20, 1914, written
to a Southern Oklahoma banker, in which they say:
What Dallas Bankers Say.
"We have no adequate facilities for handling Oklahoma
points when the items bear previous Oklahoma indorsements as well."
We also submit a letter from the Commonwealth National Bank of Dallas, dated May 12, 1914, in which they
say:
"We clear Oklahoma items through our St. Louis and
Kansas City correspondents and consequently would hardly
be in a position to handle items on Oklahoma bearing prior
Oklahoma indorsements."
These letters show conclusively that Dallas banks are
without the facilities to handle, direct, Southern Oklahoma
points, which proves there has previously been no exchange
business between these sections of any importance. On the
contrary, the banking business of the whole of Oklahoma
has gone mgre largely to Kansas City on account of quick,
direct, overnight mail transmission, and because of the financial assistance furnished by Kansas City bankers in past
years before Dallas was a place of any financial importance.
It is further true that Dallas has never assisted in financing Southern Oklahoma's interests, with the exception of a
very few points near the Oklahoma line.
What Freight Shipments Show.

That the trend of commercial business, as determined
by existing freight rates, is northeast and southwest, and
not southeast toward Dallas, is also shown by a statement
made by W. V. Hardie, Secretary of the Oklahoma Traffic
Association, in a letter which we herewith submit to you.
Mr. Hardie says "the whole trend of commercial trade from
the Southwest,—Kansas, Oklahoma, Texas and New Mexico,—is from the north and northeast to the south and southwest, while the trend of financial relations as a result, is in
the reverse direction, to care for the commercial operations." Mr. Hardie also quotes freight rates from eastern
manufacturing points to different southwestern points, including Wichita, Oklahoma City and Dallas, showing an increasing scale as the city is located further south, and draws
the conclusion that so long as the present freight rate sys-

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tems are maintained, Southern Oklahoma will remain in
closer touch, in a commercial way, with cities to the north
and east. Mr. Hardie also calls attention to the fact that a
large percentage of the railway mileage of Oklahoma leads
into northeast gate-ways, such as Kansas City, St. Louis
and Chicago, Kansas City being the principal gate-way for
Oklahoma railroads.
Mr. Hardie's statement is substantiated by a statement
of Mr. J. W. Hutchins, Vice President and Mailager of the
Oklahoma Stockyards Company of Oklahoma City, in which
he says his company has not been able to divert business
from the north to Oklahoma City, but that its trend is from
Texas and Southern Oklahoma north and east. Mr. Hutchins' statement is also submitted for your examination.
Showing of Farm Loan Companies.
A large factor in the development of any new state,
such as Okiahoma, is the furnishing of farm loans to the
farmers, through local agents representing non-resident investors. In this connection we call attention to a letter
from Mr. Fred S. Gum, President of Gum Brothers Company, which company has praced a large number of farm
loans in Oklahoma for eastern investors. Mr. Gum's letter gives a list of all the farm loan organizations operating
in the state, and calls attention to the fact that only one of
these compauies has a head office in Dallas, Texas, and that
the volume of business handled by this company would not
exceed three or four per cent of the total investments made
in Oklahoma through these companies. In this, as in other
lines, the trend of business has been to the north and east.
(b) Convenience in Doing Business.
We contend that the phrase "Convenience in doing business" includes the idea as to the ease with which business
may be transacted, as well as the question of mail facilities.
The Federal Reserve act was framed with the primary -purpose of providing an easy means of re-discounting commercial paper held by the banks, and it is expected that through
these rediscounts the supply of currency will expand and
contract to meet seasonal requirements. It follows, therefore, that the banks of Southern Oklahoma should be
attached to that district in which long acquaintanceship has already placed the necessary credit information regarding these banks in the possession of the
probable managers of the bank, and to which the business
has always naturally flowed. The situation at present is
such, owing to this acquaintanceship, that any good bank

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in Southern Oklahoma will be granted a re-discount immediately upon application to its Kansas City correspondent;
whereas, an application to a new bank to the south of Oklahoma would result in delay, in many cases, until an investigation could be made, and as these applications for rediscounts in the future will doubtless be made at times when
prompt action is necessary, another reason is afforded why
these banks should be attached to the Kansas City District.
Mail Facilities.
••
The Brief presented to the Organized Committee by
Dallas showed that many Southern Oklahoma points were
closer to Dallas than to Kansas City in mileage. We submit herewith data showing comparisons of train schedules
from all county seats in the section you are asked to transfer
to Kansas City and Dallas, compiled by Mr. Fay Thompson,
Division Passenger Agent of the Rock Island lines in Oklahoma, from schedules in effect May 22, 1914. This data
covers twenty-seven points, and an examination of it shows
that from twenty-five of these points trains leaving at 1:40
P. M., and later, reach Kansas City before 8:30 A. M. the
next day; and from only three points is it necessary to leave
in the morning in order to reach Kansas City the next morning, two of these points being in the extreme southeastern
corner, and two in the far southwestern caner of the state.
Inasmuch as overnight mail service is all that is necessary
to meet the requirements, a shorter mileage in favor of Dallas to many of_these points is not material to the issue.
We also submit letters from three of the largest cotton
concerns located in Oklahoma, viz.; Harris-Irby Cotton
Co., Anderson & Clayton Co., and Dodson & Williams, showing that they finance no Oklahoma cotton in Dallas.
LOAN AND DISCOUNT FACILITIES.
SECOND:—In the second place, Southern Oklahoma
should be placed in the Kansas City District, because the
figures show the Kansas City District will be better able to
meet the re-discount requiremen0 of the Southern Oklahoma banks, than will the Dallas District.
The Report of the Comptroller of the Currency for
1913, giving the figures on reports of condition from November 26,, 1912, to August 9, 1913, shows these figures as
to re-discounts and bills payable of banks in the Kansas
City District:
Kansas, including all reserve cities, shows a decrease
from $519,000 to $392,000 in the time mentioned (Pages
399-01.)

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Nebraska, during the same time, decreased from $1,663,000 to $546,000. (Pages 415-417.)
Missouri, including Kansas City and St. Joseph, a slight
increase from $527,000 to $571,000. (Pages 411-13.)
Colorado shows an increase from $393,000 to $455,000.
(Pages 385-387.)
Wyoming shows an increase from $53,000 to $81,500.
(Page 447.)
A tabulation of these figures shows a net decrease of
$1,109,500.
Heavy Dallas Re-Discounts.
Turning now to the figures applying to the states in
the Dallas District during the period above mentioned, the
following increases are shown:
Louisiana, outside of New Orleans, $998,000 to $2,460,000. (Page 403.)
Texas, $3,330,700 to $17,509,600. (Pages 435-437-439.)
New Mexico, $113,000 to $223,700. (Page 419.)
Which figures tabulated show a net increase of $15,751,300.
The Comptrollers Report shows that in the same period
bills payable and re-discounts of Oklahoma banks, excluding Oklahoma City and Muskogee, increased from $998,000 to $1,690,000, a net increase of $692,000. (Page 427.)
Transfer Would Help Both Districts.
While we have been unable to secure information showing the division of these Oklahoma figures, as between the
Northern and Southern Oklahoma banks, the situation in
our state is such, that it is no doubt true that Southern
Oklahoma banks had the largest portion of these accommodations. It will be noted from these figures, that the increase in re-discounts in Oklahoma could have been taken
care of by the decrease in the Kansas City District, with
$407,500 left over, while at the same time the net increase
in the Dallas District was nearly twenty-three times the
'Oklahoma increase. This is a most cogent reason why the
transfer should be made, it being understood that it was
the primary purpose of the Organization Committee to
make the districts self-sufficient in so far as it were pos-

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Map of Oklahoma Showing Present Districting and Districting Requested by Banks
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This print is from a map of Oklahoma showing groups of the Oklahoma
Bankers Association. The blue line
shows present division of the state
between reserve districts Nos. 10 and 11,
(groups 1 and 5, and Hughes county,
being the portion assigned to district
No. 11). The red line shows the division asked in the petition. Reasons
that the five counties be not transferred
are fully set forth on page 1 of the petition. Five sixths of the national banks
in the section asking to be transferred
have signed the accompanying petition
filed with the federal reserve board.

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sible to do so, and one need not be a prophet in order to be
able to say truthfully in which district re-discounts could be
the easier made.
A4other fact in connection with this matter is that the
Louisiana and Texas demand for re-discounts comes earlier than the Oklahoma demand, and it is quite possible that
Southern Oklahoma may need re-discounts at times only to
find that Texas and Louisiana have already absorbed the
supply, which occasions inquiry as to the ability of the Dallas Bank to take care of re-discounts in its district without having to call upon other districts for help.
Comparative Loaning Resources.
The 1913 Report of the Comptroller of Currency shows
individual deposits in the Dallas district August 9, 1913,
against which the required reserves are to be held in the
Federal Reserve Bank, to have been as follows:
Country Banks City Banks
Texas
$98,872,800 $73,411,300
Louisiana, Outside of New Orleans 13,606,900
New Mexico
12,826,500
20,857,200
Southern Oklahoma
$146,163,400 $73,411,300
Total
required,
5%
country
banks...$ 7,308.170
Reserve deposits
4,404,678
Reserve deposits required, 6% city banks
Capital Stock Dallas Bank

$11,712,848
5,634,091

Less 35% Reserve Deposits

$17,346,939
4,099,496

Loan Resources
Re-discounts and bills payable

$13,247,443
20,193,300

—$ 6,945,857
With re-discounts in this district outstanding, on the
same date, of $20,193,300, it is apparent that it would require $6,915,857 to make up the deficiency.
Turning now to the figures applying to the Kansas City
District, the Comptroller's Report, of the same date, shows
individual deposits as follows:

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Country Banks City Banks
Nebraska
$47,925,100 $ 50,222,500
Wyoming
11,242,600
47,166,700
Colorado
31,237,200
14,050,800
Kansas
51,489,200
Missouri
83,811,600
(Kansas City and St. Joseph)
26,071,500
11,429,600
Northern Oklahoma
$167,965,600 $206,681,200
Reserve deposits required, country banks 5%. $ 8,398,280
Reserve deposits required, city banks 6%
12,400,872
Total reserve deposits
Capital Stock Kansas City Bank
Less 35% Reserve against deposits

$20,799,152
5,594,916
26,394,068
7,314,703

Loan Resources
$19,079,365
Only $2,027,000 rediscounts and bills payable were
outstanding in the Kansas City District on that date, leaving a balance available of $17,052,365, compared with a deficit of $6,945,857 in the Dallas Bank.
How Proposed Change Would Benefit.
These comparisons show conclusively that the re-discounts and bills payable of Oklahoma banks, which were
(in the entire state) $1,690,000 on August 9, 1913, can be
better taken care of in the Kansas City District than in the
Dallas District.
A compilation of re-discounts and bills payable on August 9, 1913, from the Comptroller's Report, shows that
District 11, with $20,193,300 outstanding, is exceeded only
by District 6, which includes Georgia, Alabama, Florida and
and parts of Mississippi, Tennessee and Louisiana, this district showing $21,459,000 outstanding.
On the other hand the Kansas City District, with only
$2,027,000 re-discounts outstanding, was one of the districts
showing the smallest amount of re-discount requirements
on that date.
It follows, also, that the transfer of Southern Oklahoma to the Kansas City District will help supply the investment needs of the Kansas City banks, as it is evident
from the figures quoted above that the Kansas City bank

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will need to look elsewhere than to re-discounts of its member banks to absorb its loan surplus.
It is true that the act confers authority upon your
Board to require one Federal Reserve Bank to re-discount
for another; to which reply may be made that if you will
transfer that part of Oklahoma asked to the Kansas City
District you will never need to make such an order, so far as
petitioners needs are concerned.
It has probably been represented to the Organization
Committee that Southern Oklahoma should be included in
the Dallas District, inasmuch as it was The cotton growing
section of the state. We call attention to this, inasmuch as
it was stated at the Dallas organization meeting,"Oklahoma
north of the Canadian River is a non-cotton growing section, while south of the river cotton is raised. They have
put the cotton growing section of Oklahoma in with the
Dallas district." If this be true, in our opinion, it affords
the best of reasons for transferring Southern Oklahoma
from the largest cotton growing reserve district in the system, to the district which includes cotton grown in Oklahoma only.
Protests of Banks Practically Unanimous.
Again, we believe the transfer should be made because
it is the well nigh unanimous desire of the banks in the section represented by your petitioners that they be attached
to the Kansas City District.
Bankers in Southern Oklahoma have expressed themselves on their preference between Kansas City and Dallas
most emphatically. Soon after the districting was announced and the general opposition to the lines as formed
became apparent, W. B. Harrison, Secretary of the Oklahoma Bankers Association, sent to every bank in Oklahoma
(State and National), located in District No. 11, a letter in
which was enclosed one of the accompanying forms of protest to your Board. Each bank was requested to notify the
Secretary if it was content with the districting, and if it
was not so content to sign the protest and return it to him.
A total of 325 replied, 309 protesting against the present arrangement, and asking that they be placed in the
Kansas City District, and only 16 reporting that they are
content with the present lines. The remaining forty
have not been heard from. Many of those that did not
reply are small banks that take no interest in any matter
of this kind, and others are owned by or associated with
Texas banks.

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But not only did 95% of the banks protest in writing on
the form prescribed, but scores of them accompanied the
form with letters expressing their great disappointment in
this matter, and declaring their business relations outraged.
The tenor of these letters, a number of which are attached
hereto, demonstrates again that Kansas City is the natural
financial center for our state, and that Dallas is practically
unknown to them in such relations.
Protest of Millers' Organization.
That other business interests are against the present
arrangement, is shown by resolution adopted by the Oklahoma Millers' Association, at its annual convention, May
20th, in which they say that the natural trend of trade in
the grain business is between Kansas City and all parts of
Oklahoma, and urge upon our Senators and Representatives
in Congress the deep obligation resting upon them to s,ee
that a re-adjustment be effected, so that all Oklahoma shall
be in the Kansas City District. This resolution is submitted for your inspection, as is also a resolution adopted by
the Oklahoma Press Association, at its annual meeting held
in Ardmore, a Southern Oklahoma city, asking that the
whole state be placed in the Kansas City district.
Transfer Would Not Injure Dallas Bank.
A transfer of the Southern Oklahoma Banks to the
Kansas City District, would still leave the Dallas Bank with
a capitalization of $5,261,190, according to the figures of
August 9, 1913, which show that the combined capital and
surplus of those Oklahoma banks asking to be transferred
to the Kansas City district, on the date mentioned was $6,217,413. Six per cent of this amount is $373,044, which
deducted from the Dallas Bank's capitalization, as reported
by the Organization Committee, would leave the capitalization above named, which is over a million dollars, or 30%
more than the minimum required capitalization specified
in the act.
Oklahoma Asks Only Fair Play.
It is the belief of the bankers of Oklahoma, that the
present division of the state will operate to hamper the upbuilding of the financial interests within the state, through
the diversion from Oklahoma financial centers of bank business to which they are legitimately entitled, by reason of the
fact that many bankers will feel compelled to open accounts
in Dallas, other than with the Federal Reserve Bank.
We Oklahoma bankers have asked nothing of the Organization Committee for the purpose of building up any

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financial center, realizing that our cities are not located so
as to entitle us to have an Oklahoma city designated as a
Federal Reserve City, but we do ask that we be left alone to
work out our own destiny, and placed in the district in
which, if the plain intent of the Act is to be regarded, we
should have been placed. Our people have gathered from
the four corners of the Union, they are young, active, full of
enthusiasm, and are not afraid of the outcome of commercial rivalry, if given an even start. For instance, Oklahoma
City alone has 330 bank accounts from banks in Southern
Oklahoma Muskogee also has many, and so have other
growing cities. The banks of one of these cities last year
paid for Oklahoma cotton the sum of $10,342,902.99, and
loaned to banks in Southern Oklahoma $875,304. Each
year will see these and other Oklahoma cities take a larger
share in financing Southern Oklahoma products, if by law
the reserves are not forced southward.

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Summary.
To sum up: We have shown that the flow of banking
business from the section represented by your petitioners
is to Kansas City and the present reserve cities of Oklahoma, which are north of the district line, and not to Dallas,
by figures tabulated from original letters.
That commercial business tends north and east, because of the freight situation (set forth in letter by Mr.
Hardie);
That Southern Oklahoma has overnight mail facilities
on most of the railroad trunk lines leading into Kansas City
gate-way;
That acquaintanceship, gained through years of banking in the past, renders it easy for your petitioners to do
business with Kansas City;
Most important of all, that the re-discount needs of
Southern Oklahoma can be met in District 10, without question, while there is grave doubt of their being met in District 11;
And, finally, that it is the desire of the bankers in
the section you are asked to change, by an overwhelming
majority, to be transferred to District 10, so they may continue to let their business run in its natural channels.
For which reasons we urge that your Honorable Board
issue an order transferring Southern Oklahoma, except
the counties of Marshall, Bryan, Choctaw, Pushmataha and
McCurtain from District 11 to District 10.
Respectfully submitted,
FRANK CRAIG,
President City National Bank,
McAlester, Oklahoma.
GUY C. ROBERTSON,
Cashier First National Bank,
Lawton, Oklahoma.
W. B. HARRISON,
Secretary Oklahoma Bankers' Association.
Oklahoma City, Oklahoma.
Committee.

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Federal Reserve Bank of St. Louis

PETITIONERS.
TO THE FEDERAL RESERVE BOARD, WASHINGTON, D. C.
GENTLEMEN: This bank, having been placed in District No. 11 of the Regional Reserve Banking System, declares its natural course of trade and financial communication violated, and urgently requests that the districts be so
re-adjusted that it will be in District No. 10, with headquarters at Kansas City.
(The original signature of each of the following banks to the above
petition, signed by a duly authorized officer of the bank, is on file with
the Federal Reserve Board. The same petition has been signed by 178
State Banks in the territory asking to be transferred, and the original
signatures of these banks are likewise on file with the Federal Reserve Board but none of the State Banks are included in the following list of petitioners.)
Town—
Ada
Addington
Alex
Allen
Altus
Anadarko
Anadarko
Apache
Arapaho
Ardmore
Ardmore
Ardmore
Atoka
Blair
Blanchard
Calvin
Chickasha

Bank
First National
First National
First National
First National
City National
First National
National Bank
First National
First National
First National
State National
Ardmore National
American National
First National
First National
Citizens National
Citizens National
Chickasha National
First National
et
Oklahoma National
Clinton....Oklahoma St. National
First National
Comanche
First National
Cordell
Cordell National
•
State National
Farmers National
Custer City
First National
....Peoples St. National
Davis
First National
Duncan
City National
Duncan National
Eldorado
First National
Elk City
First National
Gotebo
First National
Hartshorne
First National
Hastings
Nat. Bk. of Hastings
Heaygener
State National
First National
Hobart
First National
City National
F & M. National
Holdpville
State National
American National
First National
Hollis
National Bk of Corn.
State National
Hydro
Farmers National
First National
Keota
ational
awton
a onal
Y
Lawton
National
44
First National
Lindsay
First National
Lone Wolf
First National
Mangum
First National
Mangum National

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

Town—
Marietta

Bank
Marietta National
First National
Marlow
State National
" ..National Bank of Marlow
Maysville
Farmers National
First National
McAlester
American National
City National
First National
Mill Creek
First National
Minco
First National
Mountain View
First National
Olustee
First National
Pauls Valley....Nat. Bank of Corn.
" Pauls Valley National
Poteau
First National
Purcell
Union National
" ....1....Chickasaw National
Quinton
First National
Roff
F & M. National
Rush Springs
First National
Sayre
First National
" ...Beckham County National
Sentinel
First National
Snyder
First National
Spiro
First National
Stigler
First National
American National
Stratford
First National
Stuart
First National
Sulphur
Park National
Temple
Temple National
Thomas
First National
Tishomingo
Farmers National
First National
Verden
First National
National Bank
Wapanucka
First National
Washington
First National
Waurika
First National
Weatherford
German National
First National
Wetumka
First National
41
American National
Wilburton...Latimer Co. National
Walters
Walters National
First National
Total number of national banks
in territory
128
Number asking to be transferred ,
448 /Da/
Two-thirds majority required
by rules
frf
National banks in territory not
petitioning
-25 144

OFFICE OF MR. A. C. MILLER
/2 2.1
FILE NO.

MAP
OF

CONNECTICUT
SHOWING

CONNECTICUT COMPANY
SYSTEM
AND

CONNECTIONS
a nottiiiRogrIelam#

ISSUED BY

TRAFFIC DEPARTMENT
NEW HAVEN, CONNECTICUT

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

HE Connecticut Company, The New York &
Stamford Railway Company lines and connections, as shown by the attached map, comprise
practically all the trolley lines in Connecticut west of
New Haven, and in New York State from the New
York-Connecticut State Line to New Rochelle. From
New Rochelle connections are made with other companies for through service into New York City.

Skirting the shore of beautiful Long Island Sound, all
the way from New Rochelle to New Haven,and paralleling the historic Boston Post Road, the lines of this
system offer to the tourist and recreation seeker a
wealth of enjoyment, not only in the charm of the
scenery but also in bringing to mind associations
made famous in history and romance.
In addition to the many miles of road "along the
shore," the lines of this Company serve the large cities,
and almost every town and village is "electrically connected." Through cars are operated as fast and as
frequently as safety will permit between the large
cities, and close connections are made at all points.
The equipment is modern and the best that engineering skill can produce, and the roadbed the
finest. The single track lines are protected by electric
automatic block-signals, and every effort is made to
assure the safety and comfort of our patrons.
If you will make your business or pleasure trips over
the lines of this trolley system, you travel swiftly,
safely and in comfort, and most economically.
MERIDEN
BRIDGEPORT
HARTFORD
NEW BRITAIN
MIDDLETOWN
SOUTH NORWALK
NEW HAVEN
TORRINGTON
STAMFORD
WATERBURY
all of these cities and many more are served by the
lines of this Company.
738 Miles of Trolley Lines Operated in
Southern New England.
The Traffic Department, Room 212,Second National
Bank Building, New Haven, Connecticut, will be very
glad to give you full information as to rates, chartered
cars, special trips and schedules.
On the back cover you will find some interesting
information regarding the Express and Freight Department.

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

IT et

MAP OF

THE CONNECTICUT COMPANY,/
SYSTEM
AND ALSO

Canaan
ORTII CANAAN.'.1
Canaan

',. Lakes
Chapinville 0
Lake's
ninnt
1
'
Chapinville
IPS
.
Sta. •
Twin
0
Lakes
,.,
SBURY
Salisbury

CEO
MillErton

NEW YORK & STAMFORD RAILWAY
COMPANY LINES

Lime Rock
•

Norfolk
N o
Norfolk
Summit

untsyill

°South Nqr olk
1374 I
----erNo C Ld
li
Highlah
ehes
en

t 4Y"
o Sh ran

Valley
0 Sharon

SYSTEM LINES•
malimosum-,,,a=ad
Other Electric Lines•
Steam Railroads•
Parks, Beaches and Resorts in red: EN

°Pleas tTB
VEaarl1Dek hyam

•

aydens

Bloomfield
WINDS

• Illorth

Iliirtford

I SIMSBURY
Simsbury
'CAN T 0 N
.SinisburV
Stratton
ce4t
Ber
rook
Canton
11111,
01. i Weatogue

West Willington Sta. WILLINGTON
0w.Winingto
TOLLAN•D
Willington o

Clar ville 1

c
83 •'

0
1'
cp\

ockville
,

Spz...i.n.g'S
, trot

Brick Yard
SOUTH WINDSOR

.cov°

South Willingto

ERNONI
Willimantic

Vernon

alcottville

Vintons

bake

Coventry
0
Belknap

-7

0 Mills

Scale of Miles
•

•-

.....

- ------T

North_Kent

Harwil tort

Milton

Last Litchfield.

Flanders
'KENT
Kent

Woodville
r.--::
-----O
\
\
I
War mau,g4
1,
1

iteville

Woodrow
------17

(M s:

Bantam,
Lake

:
L .0

RR's
0 East
Morris
Lakeside °
N

N v
4. °PrestonvWe°stitIS7tvw
Fs4 Ifle-nf
(\
I
r........-.
Marble Dale
t,.E T
u
Preston
'New
1\\ .w.A. iS
Gaylordsville
,
(Mcrwinsville
HINGTON
R
HLEIIEM
Washington Depot
Sta.)
Bethlehem
I
`• r
(Washington sta.)
••
0
WAhing-toSn o
, 4 Northvilje
r•
I

z'TITOMASTON

Thomasto

•

IJ. FORT) 1
0 Park Lane

IsIF W

Hopewell Jc.

•
Bi.lrlidgc,
e
• B (LI ttrdWarilenal:
ni7

,,,"------ i
1 River
and
esville

Fishkill

os),

.
e4
0

NEW

New Fairfiel

•eraug o
MAI:wry Falla

astonbury

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BANON

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opevale

ast
Berlin
0 Gildersleepvy
cotoraug

....,..-'-'...

A . '' (2)°,7
-•

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(Cheshire
sta.) P RK

Prospct,\ S14.t110,.=7.c,
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e
PROSPECT

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acoJ Falls

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/

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r b. _
,

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an yer p.0
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go
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t
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.--

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ord

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iez.M
1 witH
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10Rti
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Mahopac Falls

•

\it

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CHESTER
Chester S
Chester
II eeri River,S
1

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4 80hia,

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WES TCHEST
,•
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•
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oodmont

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,
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ratro

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EACH
t•
NuyveHPARLES
I..

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Pt.

MlItord pt.

Stratford PL

pine Creek Pt.

COMPO BEACH
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ORLONS POINT
0. •
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THE MATTHEws-NORTHRUP WORKS, BUFFALO, N.

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Peconic
Bay

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hington •'•

6
,
aehe

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wic

emPstead
Harbor

Jersey City

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

ns
arms

21ilt.FFIECO

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•

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•••

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o

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oventry
Sta.

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E. HARTFORD'.ti o M A N
Hillstown
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..........,......,.."-"*".""------I

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Sta.
VA R

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r
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.,.. East Windsor Hill

•

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ryille
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----------

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p(titkcztock

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------Woods
---- Woods
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Granby
North
orth Grnby

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Millbrook _

oR T

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,
/

AND
0

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Hartland o

°Colebrook

-------

AND CONNECTIONS

COL

elk

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River '()\

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East Canaan

ANAAN
s-o-So th Canaan
Falls Village

1,
NVononse pomus
Lake
VVononpahok
Lcike

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Great Pec.onic

Bridgehampton
Bay

Sta ord Springs
47,42,10

T H

If CONNECTICUT

\ COMPANY

Rockville
Manchester

Par1/2in
uifioilvitie
ete,
i A ct
•

•

."TROLLEY EXPRESS"

•S.Manchester
• Glastonbury

Thomaston

S.Glastonbury
New B
Plainville
Southingto
Milldale
Meriden,
Cheshire
Wallingford
Deep River
0 Esse,

WatertoT
"
Oakvin
Middlebure,
Woodbury. -•
Naugatuck
Beacon Falls
Seymour
Ansonia
Derby

‘\, Bridgeport

15;

New ilaven'ajthr°0I
• •
%44
,7p.

ilford
00
e 40,v 4
,e4P

orwalk
outh Norwalk
am ford

THE

4.
04

WORKS

OUR attention is invited to the ex-

cellent Express and Freight Service
maintained by this Company. Rapidity in transit, promptness in delivery and
reasonableness in rates, have popularized
this important branch of electric transportation in the State of Connecticut.
The above cut shows the territory served
by the "Trolley Express."
Cars are operated on regular schedules
from terminals at New Haven, Bridgeport,
Waterbury and Hanford,twice daily to all
Stations, picking up and delivering express
matter along the line, making direct connections at transfer points. Excellent wagon
service is furnished and immediate delivery
of express matter is assured.
For all information regarding rates,schedules, etc., communicate with the local Agent
in your city, or write direct to the Traffic
Department, Room 212, Second National
Bank Building, New Haven, Connecticut.
If you like our service, tell your friends;
if anything goes wrong, tell us—we will
appreciate it.

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

OFFICE OF MR,
FILE NO.

• MIL

•&31 Olp Nriirral grorrur*auk

asilington,
•

Brief of
THEFIRST NATIONAL BANK, SISTERSVILLE,
TYLER COUNTY, W. VA.
THE PEOPLES NATIONAL BANK,SISTERSVILLE,
TYLER COUNTY, W. VA.
THE FARMERS & PRODUCERS NATIONAL BANK,
SISTERSVILLE, TYLER COUNTY, W. VA.
THE FIRST NATIONAL BANK, MIDDLEBOURNE,
TYLER COUNTY, W., VA.

THE FIRST NATIONAL BANK, NEW MARTINSVLLE,
WETZEL COUNTY, W. VA.

for Transfer of Counties of Wetzel and Tyler
From the 5th federal Reserve District to the
4th federal Reserve District.

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

On TO iffrivral arsrrur Voarb,
astlington, B. T.
II
Is
II

BRIEF OF
THE FIRST NATIONAL BANK, SISTERSVILLE,
TYLER COUNTY, W. VA.
THE PEOPLES NATIONAL BANK, SISTERSVILLE,
TYLER COUNTY, W. VA.
THE FARMERS 8,6 PRODUCERS NATIONAL BANK,
SISTERSVI LLE, TYLER COUNTY, W. VA.
THE FIRST NATIONAL BANK, MIDDLEBOURNE,
TYLER COUNTY, W. VA.
THE FIRST NATIONAL BANK, NEW MARTINSVILLE,
WETZEL COUNTY, W. VA.
FOR TRANSY'ER OF COUNTIES OF WETZEL
FROM THE 5TH FEDERAL RESERVE

AND

TYLER

DISTRICT TO

THE 4TH FEDERAL RESERVE DISTRICT.

•

The above banks being all the National Banks in Wetzel and
Tyler Counties, West Virginia, having petitioned your honorable
board for transfer of the said counties of Wetzel and Tyler in West
Virginia, from the 5th Reserve District, Reserve Bank located at
Richmond, Virginia, to the 4th Reserve District, Reserve Bank, located at Cleveland, Ohio, beg leave to submit the following brief in
support of said petition:

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Federal Reserve Bank of St. Louis

STATEMENT OF FACTS.
THE RESERVE BANK ORGANIZATION COMMITTEE has
placed the Counties of Hancock, Brooke, Ohio and Marshall, West
Virginia, in the 4th Federal Reserve District Bank at Cleveland,.
Ohio. All the other counties in West Virginia are placed in the Reserve District No. 5 Bank at Richmond, Virginia.
The Counties of Wetzel and Tyler are adjacent to the Counties of Hancock, Brooke, Ohio and Marshall, and situated on the
Ohio River.
The City of Wheeling being the largest city in the state, is the
industrial center for the northern part of West Virginia, and especially for these two counties. The same industries that are carried on in the City of Wheeling are carried on in Wetzel and Tyler
Counties, such as the manufacturing of iron, Steel and glass, making
the business relations of the petitioners with the said City of Wheeling extremely close, and the County of Ohio, including the City of
Wheeling having been placed in Reserve District No. 4 at Cleveland, we respectfully submit that the said Counties of Wetzel and
Tyler should also be included in said Reserve District Number 4, for
the following reasons:
FIRST.
Because the industrial business carried on in these counties in
the northern part of West Virginia is closely allied with the same
industrial business that is carried on throughout the 4th Reserve
District, which includes the City of Pittsburgh.
The members of your honorable board are each and all familiar
with the fact, at least, that the northern part of
West Virginia is
one of the great oil and gas centers of the country; that the oil and
gas fields extend from the north-eastern part of Ohio, practically
from the City of Cleveland, down through the greater portion of
Ohio, and also from the north-western part of the State of New
York through Pennsylvania, down into the northern part of West

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Federal Reserve Bank of St. Louis

Virginia, and including these two counties , which are ,ths veatest
oil and gas producing counties in the State.,of West Virginia. These
oil and gas fields in Wetzel and Tyler Counties are owned principally
by Pittsburgh capitalists, and the main offices of these.94 *lid gas
producing companies are situated in the City of Pittsburgh which is
:
:ncluded in the 4th Reserve District.
Your petitioners' banks are maintained largely by these oil and
gas industries, bringing our banks in direct and close daily communication with the banks of Pittsburgh and Wheeling which are located
in the 4th Reserve District.
The Counties of Wetzel and Tyler furnish 'a great portion of the
natural gas consumed in the Cities of Wheeling, Cleveland and Pittsburgh, the producing gas field being situated in these counties. It is
transported to these great industrial centers by the' Hope Natural
Gas Company, which has one of the largest pump stations in the world
situated in Wetzel County, from which it transports through its 16
and 20 inch pipe lines, natural gas to the City of Cleveland, and other.
industrial cities in the northern part of Ohio, and the City of Pittsburgh, and other industrial cities in the liortli-western part of Pennvylvania.
The Carnegie Company furnishing gas fo'r Its industries in the
vicinity of Pittsburgh has pump stations in these two counties, from
which it transports its natural gas to its indtstrial plants in tb vicinity of Pittsburgh.
The Manufacturers Light and Heat Company has its pump stations in these counties, by *leans whereof it transports its natural
gas through pipe lines to consumers in Cleveland and other towns
in the northern part of Ohio, to Pittsburgh and other towns in the .
north-western part of Pennsylvania, and to Wheeling, and Ather
towns in the northern part of West Virginia.
The Philadelphia Gas Company, perhaps the second largest gas
company in West Virginia, has its pump stations in these counties,
by means whereof it transports its gas through its pipe lines to- its
consumers in Pittsburgh and vicinity.

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Federal Reserve Bank of St. Louis

The Eureka Pipe Line Company, a Standard Oil Subsidiary, buys
much of the crude oil produced in the two counties and that company
has offices in Pittsburgh. There are now several independent companies which are buying crude oil in this section. They are the Producers and Refiners Oil Company of Pittsburgh, the Valvoline Pipe
Lines of Pittsburgh, and the National Refining Company of Cleveland,
Ohio. These independent companies are now buying a goodly portion of the crude oil and the amount is being increased.
•
The Lubrie Oil Company, of Cleveland, Jas. B. Berry's Sons
Company of Oil City, Pa., and the Riverside Oil Company, of Pittsburgh,. buy practically all of the gasoline which is produced in the
two counties.
The Carter Iron Company has a plant at Paden City on the line
between Wetzel and Tyler Counties, with main office in Pittsburgh.
The Duquesne Glass Company has a plant at Paden City, in Wetzel County, with main office in Pittsburgh. The Paden City Pottery
Company in Paden City, Wetzel County, has its main office in Pittsburgh. The glass plants in Sistersville and New Martinsville sell and
dispoie of their products principally in Pennsylvania and Ohio towns.
From all of which it will be seen that the business relations of
these two counties are v,Ty closel y allied with the business relations
of Pittsburgh, Cleveland and Wheeling, all in the 4th District.
SECOND.
Because petitioners have for many years kept the greater portion
of their reserve funds in the Reserve Banks of Pittsburgh, owing to
The fact that Pittsburgh is the center of the oil and gas business of the
country, and because we are within 110 or 115 miles from Pittsburgh.
with direct railroad, telegraph and telephone communication, and
within three hours ride by rail and because we have four trains daily
carrying mail to and from Pittsburgh and Cleveland.
At the request, of the Comptr oller of Currency we furnished an
itemized statement of checks received on other member banks in

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Federal Reserve Bank of St. Louis

-5--District No. 5, The figures of all of the petitioning banks are not
available , as all of them did not keep copies of the reports. All of
them will show about the same proportion of business with the two
districts as the three national banks of Sistersville. These banks kept
a record of the items, as requested by the Comptroller of the Currency, and also a record of the items received during the same week
on the fourth ditrict which shows substantially as follows:
Checks on other members banks in District No. 5, outside of your
own city or town, deposited with this bank locally by depositors other
than member banks.
Number of items Amount
$2592.00
First National Bank, Sistersville
67
1646.00
45
Peoples National Bank, Sistersville
3798.00
Farmers & Producers Nat'l Bank. Sistersville
61
$8036.00
173
The bulk of these items were on Middlebourne, New Martinsville, and St. Marys, West Virginia, which towns are located in our
own and the adjoining county, and the balance were on banks in this
section of our own state. During the week none of these reporting
banks had an item on any member bank in Virginia, North Carolina,
or South Carolina, and but three items on the City of Baltimore.
During the same week these banks had items on banks in District
Number 4 as follows:
Number of Items. Amount.
$33,065.00
First National Bank, Sistersville
208
17,137.18
Peoples National Bank, Sistersville
90
35,693.34
Farmers & Producers Nat'l Bank, Sistersville 188
486

$85,895.52

THIRD.
Because Cleveland, Ohio, is so much more convenient to your petioners than Richmond, Virginia. Sistersville, Tyler County, and
New Martinsville, Wetzel County, are approximately 40 miles south

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Federal Reserve Bank of St. Louis

-6—
of Wheeling; and Wheeling 162;-miles'; by Tail -fronf Cldveland, making the distance from your petitioners' eountieg td the City of Clevei
• .
land about 200 miles.
There are two routes by rail from your petitioners' counties to
Richmond, Virginia. One via B. &.0. R. R. to Washington, a distance
of 392 miles, and from Washington/ to ;RiChmond).170, miles, making
562 miles from petitioners' banks to the City of Richmond; or by the
E. & 0. R. R. south to the City of Huntingtdni a. distance of 185 miles,
and from the City of Huntington to Richmond, by the C. & 0. Railroad, a distance of 499 miles, or 684 miles by the Huntington route,
which shows that the distance from your petitioners to Richmond
is three times the distance from your petitioners to Cleveland.
r, !i
•
•
FOURTH.
Your petitioners have made inquiries of the postoffice at Sistersville and have learned that the mail of the banks mailed at Sistersville
at the close of business in the afternoon shoUldi with proper connections, reach Richmond at 6:07 the follewing" evening. Letters for
Cleveland mailed at the same time would:be.in;that'city long before
business hours the next morning.
The need for direct arid speedy mail and rail connection appears
to us to be essential. If any of the petitioning banks should have need
to call upon the Federal Reserve Bank of Richmond, it is more than
likely that need would be over before the bank could, communicate
with the reserve bank and receive returns.
ARGUMENT.
In asking for this transfer your petitioners realize the Reserve
Bank Organization Committee in defining the districts could not
please or satisfy all of the member banks of said districts. We realize that your honorable board will not be able to make changes satisfying all of the member banks in the several districts. What we respectfully urge is that in making this particular change, these five
Nafional Banks situated in the Counties of Wetzel and Tyler, West
Virginia, and with a combined capital stock and surplus of

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Federal Reserve Bank of St. Louis

-7—
$527,000.00 and with their subscriptions stock to the Federal Reserve
Bank of $31,700.00, it is evident that the transfer could not materially
change the capital stock of either of said Reserve Banks, by placing
these two counties in the 4th Reserve District. So, we insist that no
person could urge any real reason against this change, while on the
other hand we insist that to leave its in the No. 5 Reserve District, is
to rob us of all of the benefits which we may expect to obtain from
this great constructive legislation.
Why should we be separated from Hancock, Brooke, Ohio and
Marshall Counties, West Virginia, which are placed in the 4th Reserve
District, and be divorced from all of our business interests in the 4th
Reserve District, which amounts to more than ten times the amount
of business that we have in the 5th Reserve District? We very respectfully submit that no good reason can be assigned for refusing our petition. It is evident that the transfer of your petitioners from the 5th
- to the 4th Reserve District would not affect either of said Reserve
Banks materially, and would be a small matter, indeed, for either
bank or district, but it means very much to your petitioners.
Your petitioners realize that in fixing the boundary of the District Reserve Banks, all of the National Banks could not be satisfied.
Your petitioners would not have favored Cleveland as their first
choice for the location of its Federal; Reserve Bank. They would undoubtedly have favored Pittsburgh, but Cleveland having been selected, we only hope now that we may be permitted to have our two
counties transferred to the Cleveland District. We. therefore, insist
that reason and justice demands this transfer.
- Upon the facts stated we very respectfully insist that petitioners
are entitled to a transfer from the 5th to the 4th Reserve District.
All of which is respectfully submitted.
THE FIRST NATIONAL BANK, SISTERSVILLE.
THE PEOPLES NATIO NAL BANK, SISTERSVILLE.
THE FARMERS & PRO DUCERS

NATIONAL BANK,
SISTERSVILLE.

THE FIRST NATIONAL BANK, MIDDLEBOURNE. THE FIRST NATIONAL BANK, NEW MARTINSVILLE.

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

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C. H. C. JAGELS, Vice-President

Unequalled Facilities for makind Collections.

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

Prompt attention to all Bank matters entrusted to us.

BOSTON

TN END

BOSTON

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

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BEFORE THE

FEDERAL RESERVE BOARD
AT WASHINGTON.

In the Matter of the PETITION TO TRANSFER A PORTION OF SOUTHERN OKLAHOMA FROM FEDERAL RESERVE DISTRICT NUMBER
ELEVEN TO FEDERAL RESERVE
DISTRICT NUMBER TEN.

ANSWER AND BRIEF
OF RESPONDENT
THE FEDERAL RESERVE BANK OF DALLAS.

C'HARLES C. HUFF,
Counsel.

W. M. Warlick, Law P., 810% Main St., Dallas. Phone M. 4091.

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Federal Reserve Bank of St. Louis

CONTENTS
Pages
2-4
Special Exceptions to Petition
Formal Answer of Respondent
4-7
Remarks
7-10
Counter Propositions (a), (b), (c), (d), and (e) 11-12
Statement under Counter Propositions (a), (b),
12-17
(c), (d) and (e)
Counter Propositions (a), (b), (c), (d), (e), (f),
17-19
and (g)
Statement under Counter Propositions (a), (b), (c),
19-28
(d), (e), (f) and (g)
Argument under Counter Propositions Submitted
by Respondent and in Reply to Contentions
made in Petitioners' Brief
28-56
Appendix
57-101
Exhibit A, 1 to 22, inclusive
59-73
73-74
Exhibit B, 1 to 2
74-81
Exhibit C, 1 to 14, inclusive
82
Exhibit D
82-83
Exhibit E
Exhibit F. 1 to 26, inclusive
84-97
Exhibit G
97-101

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Federal Reserve Bank of St. Louis

BEFORE THE

FEDERAL RESERVE BOARD
AT WASHINGTON.
In the Matter of the PETITION TO TRANSFER A PORTION OF SOUTHERN OKLAHOMA FROM FEDERAL RESERVE DISTRICT NUMBER
ELEVEN TO FEDERAL RESERVE
DISTRICT NUMBER TEN.

ANSWER AND BRIEF
OF RESPONDENT
THE FEDERAL RESERVE BANK OF DALLAS.

To the Honorable Federal Reserve Board:
The petition filed herein seems to be a joint petition
and brief, and does not appear to be in conformity with
the regulations of the Federal Reserve Board with
reference to petition and supporting brief. In replying thereto, this Bank, which will be referred to herein
as respondent, will, therefore, file its answer to the petition, and in support of its answer, follow with its brief
answering the petition of the Committee and supporting
the answer so made by it.
Now comes The Federal Reserve Bank, of Dallas,
Texas, respondent, and, answering the petition filed with
your Honorable Body, purporting to be on behalf of
"Certain Banks in Southern Oklahoma" and asking

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Federal Reserve Bank of St. Louis

2
the Board to change the lines of Federal Reserve District No. 10 and Federal Reserve District No. 11, so that
all of Oklahoma except the Counties of Marshall, Bryan,
Choctaw, Pushmataha and McCurtain will be in District
No. 10, says:
Respondent specially excepts to the petition so filed
by three parties, to-wit, Frank Craig, President of the
City National Bank, of McAlester, Oklahoma; Guy C.
Robertson, Cashier of the First National Bank, of Lawton, Oklahoma, and W. B. Harrison, Secretary of the
Oklahoma Bankers' Association, of Oklahoma City,
Oklahoma, purporting to act as a committee for certain
banks in Southern Oklahoma, for the following reasons,
viz.:
(a) The said petition is not executed in the manner
and form prescribed by said Federal Reserve Board,
governing the procedure in appeals from the decision
of the Reserve Bank Organization Committee, in that
the same is not signed by two-thirds of all the member
banks in the territory sought to be transferred, but is
in fact signed by three individuals, acting in their individual capacity as a committee.
(b) The memorandum appearing on the final page
of said petition, purporting to be a copy of a petition alleged to have been signed by certain banks in
Southern Oklahoma, is not a fair or true representation of what is in fact, on file with said Federal Reserve
Board, but same is an attempted consolidation by said
committee, of certain slips or memoranda of protest
claimed by said committee to have been executed by
certain banks immediately following the announcement

3
of the district lines by the Federal Reserve Organization
Committee, which action, if any, upon the part of said
banks, was long prior to the filing of the petition herein
by said committee, and it nowhere appears in said petition that said banks, for which this committee claims
to be acting, filed this petition for transfer or authorized
their names to be used in connection therewith, or authorized this committee to refer to any previous action
taken by them as a basis of seeking to show that they
were joining in this contest.
(c) At the time the petition signed by Frank
Craig, of McAlester, Oklahoma; Guy C. Robertson, of
Lawton, Oklahoma, and W. B. Harrison, of Oklahoma
City, Oklahoma, was filed by them, it does not appear
that a majority of the banks listed by them as petitioners had knowledge that their names were being used
as petitioning banks asking for a transfer, or that said
banks were informed or had knowledge that any prior
protest or action upon their part was being used, and
urged as a basis upon which to insist, that they were
petitioning a transfer from the Eleventh District to the
Tenth District.
(d) That the petition so filed, which this respondent is called upon to answer, is replete with references
to letters, statements and data, which said committee
filing said petition state are being filed with said petition, and called to the attention of the Federal Reserve
Board, and this respondent here says that so much of
said petition as refers to said letters, statements and
data mentioned in said petition, should be stricken out,
and that said letters, statements and data mentioned in
said petition should be stricken from the record herein,

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Federal Reserve Bank of St. Louis

4
for the reason that said petition and the additional testimony referred to therein, to-wit: the letters, statements and data, constitute new testimony introduced on
this hearing for the first time and not adduced before
the Organization Committee, and, therefore, cannot be
considered under the regulations of this Board governing
appeals from the decision of the Reserve Bank Organization Committee.
II
For further answer to said petition and in support
of the exceptions set out in paragraph one above, this
respondent says that the petition filed by said committee
did not, at the time of its filing, and does not now, correctly represent the real wishes and sentiments of the
officers of a large number of the member banks listed in
said petition on the final page thereof as petitioning
banks, many of whom, subsequent to the filing of said
memoranda of protest with the Reserve Board, immediately after the announcement of the district lines by
the Federal Reserve Organization Committee and previous to and subsequent to the filing of said committee's
petition, after they had taken time to thoroughly consider the Organization Committee's action and their own
best interests, have expressed themselves both in writing and verbally, to the effect that they are tatified with
the lines established, and that no action should be taken
at this time looking to a transfer of any portion of the
territory from the Eleventh District to the Tenth District, and this respondent believes, and upon such information and belief alleges, that resort was made by said
committee to said claimed memoranda of protest for
a compliance with the rules established by this Board,

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Federal Reserve Bank of St. Louis

5
requiring the signature of two-thirds of the member
banks in the territory sought to be transferred only,
because said committee feared that they could not, at
that time, have secured the necessary signatures of twothirds of the member banks in the territory sought to be
transferred, as required by the regulations of this Board
in this character of proceeding.
In support of the allegations in this paragraph contained, and as illustrative of our position on the exceptions contained in paragraph one above, reference is herA
made to copies of letters from officers of certain member banks listed in said purported petition as petitioning banks found in the appendix to this brief and
marked Exhibit A, numbered 1 to 22 inclusive, to which
letters the considerate attention of the Board is requested.
III
For further special answer herein, respondent states
that it is well known that, at the time the protest slips
were signed by some of the member banks, many of the
banks executing them were influenced in so doing by
an appeal to their State pride and were opposed to the
action of the Organization Committee in the establishment of the lines solely because the State of Oklahoma
Was being divided and the Northern portion of said
State placed in the Tenth District and the Southern portion of said State placed in the Eleventh District, and
that said committee filing the petition herein, has segregated certain counties with a view of leaving them in
the Eleventh District and that this Board cannot assume
that the lines fixed by the committee of three would
meet the wishes of the member banks, if said banks were

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Federal Reserve Bank of St. Louis

6
executing the petition themselves, as they would be
required to do under the rules of this board if they were
in fact asking for a change of Federal Reserve District
lines.
IV
For further special answer, respondent says that the
activity for a transfer of territory from the Eleventh
District, to the Tenth District, arose outside of the territory sought to be transferred, and that whatever action
in the way of protest that was made by member banks
within the territory sought by said petition to be transferred was taken upon the invitation and request of
parties residing outside of the territory sought by said
petition to be transferred, and this respondent here suggests that such outside action was inspired by a laudable
ambition upon the part of certain parties non-resident
of the territory sought to be transferred, to so arrange
the district lines as that the thriving, prosperous and
progressive city of Oklahoma City, Oklahoma, might
stand a chance to be considered favorably as a location
for a branch bank of the Kansas City Reserve Bank.
In support of the suggestion herein made, reference
is here made to copies of two letters sent out from Oklahoma City, Oklahoma, on April 7 and 13, respectively,
found in the appendix and marked Exhibit B, numbered
1 and 2.
V
For further answer, respondent says that there is no
widespread dissatisfaction among the banks of Southern
Oklahoma to the location of the present lines of the Tenth
and Eleventh Districts, as would appear from the statements in the petition filed herein, and as indicative of

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Federal Reserve Bank of St. Louis

this fact, reference is here made to copies of letters
from banks in Southern Oklahoma, addressed to the
Federal Reserve Board, and to officers and member banks
of the Federal Reserve Bank of Dallas, copies of which
letters are to be found in the Appendix, marked Exhibit
C, numbered 1 to 14, inclusive.
REMARKS.
Regulation 1, by the Federal Reserve Board, governing procedure in appeals from the decision of the Federal Reserve Organization Committee, provides, among
other things, as follows:
"Petition for review of the determination of
Federal Reserve Districts by the Organization Committee must be signed by duly authorized officers
of at least two-thirds of the member banks in the
territory which the petition asks to be taken out
of one district and annexed to another."
Is the petition herein in conformity with this regulation? The parties who filed this petition do not claim
that the member banks for whose benefit it was supposed
to be filed, ever saw it, signed it, or authorized any one
else to sign it for them, or even had an opportunity to
Sign same. In order to show a semblance of compliance
With the regulation of this Board, the committee so
filing the petition refers to protest slips claimed to have
been filed by certain banks in the territory sought to be
transferred. There is no claim made that the member
banks designated as petitioning banks authorized this
committee to include them as petitioning banks on account of some prior protest. These protests, if made,
Were made before the organization of this respondent,
and at a time when the protesting banks had no means of

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Federal Reserve Bank of St. Louis

determining whether they could obtain satisfactory service from the Dallas Bank or not, and such protests as
were made were made, not upon the initiative of member,
banks, but in response to the invitation of parties outside of the territory sought to be transferred. These protests, when made, were made largely in response to
State pride and were made largely because the State
of Oklahoma was being divided.
After the Eleventh District had elected as one of
its Directors a man from Southern Oklahoma, who
was familiar with the wants and needs of that territory,
and after this respondent was organized and began
business, it nowhere appears that any member bank in
Southern Oklahoma protested at being included in the
Eleventh District, or that any number of member banks
in this territory then availed themselves of the opportunity afforded them by this Board, of filing a petition
to be transferred to the Tenth District.
We submit to this Board that there is no petition
prepared, signed and filed by two-thirds of the member
banks in the territory sought by this purported petition
to be transferred from respondent's district to the
Tenth District, as required by your regulations, and
that this question is fundamentally jurisdictional, and
that, therefore, this Board should sustain respondent's
exceptions contained in paragraph one of its answer and
that this proceeding should here now be dismissed.
Regulation No. 1, promulgated by this Board for
guidance in proceedings of this character, among other
things, provides:
"The.Board will not hear testimony, but the
parties will be limited to the record before the Organization Committee."

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The purported petition filed herein nowhere refers
to the record made before the Organization Committee,
but said petition is based solely upon letters, statistics
and testimony which the petitioning committee says it
was filing with this Board at the same time it filed the petition. This respondent earnestly urges and insists
that it should not be called upon to answer new matter
and testimony filed with the Board in support of the
Purported petition, and which this respondent has never
seen and has no way of seeing, and which was not a
part of the record made by the Organization Committee,
and respectfully insists that its special exception (d),
found in paragraph one above, should be in all things
sustained, and that said letters, statistics and data so
referred to in said petition, constitute new testimony,
not adduced before the Organization Committee
and
Should not be heard or considered by this Board, and
that such new matter and additional testimony should
be purged from the record herein and that
its exceptions
Should be sustained to such portions of the petition as
are based upon or refer to such new and additi
onal
testimony.
In connection with the exceptions in paragraph one
above, the Board's consideration is also asked of the
Special answer of respondent, contained in paragraph two,
and particularly to the letters therein referr
ed to, copies
of which can be found in the Appen
dix. Respondent has
made no special effort to obtain an expression from
the
member banks listed in said petition as petitioning
banks, but believing that a great number of said
banks
have not authorized the use of their names
in connection
with this proceeding and believing that
a great number

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10
of said banks so mentioned in this petition as petition.
ing banks were in fact satisfied and content to remain
as member banks of this district, respondent asked an
expression from a few of the banks best known to it,
with the result that each bank so inquired of has answered that it was making no effort to have territory
taken from respondent's district and placed in the
Kansas City district, and that it was satisfied with the
district lines as established by the Organization Committee, and that they did not feel like any effort should be
made to change the lines of the district until a fair
test had been given the action of the Organization Committee, the letters made use of herein being irrefutable
proof of the contention of this respondent that the purported petition was not in fact the petition of the banks
listed in said petition as petitioning banks.
It is here respectfully suggested that the use of these
letters by respondent cannot be considered as the introduction of new testimony, but should necessarily be
considered in support of its jurisdictional objection and
as going to the good faith of the purported petition which
it is here required to answer.
REPLY TO THE CONTENTIONS MADE
IN

THE PETITION

AND

BRIEF

FILED BY THE COMMITTEE.
If this Board should fail to sustain our contentions
above, and should decide to consider the petition filed
by the committee, then this respondent requests that it
be permitted to further answer to the merits of said petition.

11
The petition states that the transfer of territory
should be made:
"First—Because the present districting is not
in accordance with the spirit of the law which provides, in Section 2, 'the districts shall be apportioned with due regard to the convenience and customary course of business.'"
In reply to the first contention of petitioners, the
following propositions are respectfully submitted:
(a) In establishing the present district lines, due
regard was given by the Organization Committee to the
same question here presented by petitioners, and the
Present lines were established, because it was evident
that the greatest volume of commerce from Southern
Oklahoma was southward and to the Gulf.
(b) The large volume of commerce from Southern
Oklahoma being to the southward and through Texas, no
violence was done in placing Southern Oklahoma in the
Eleventh District, with its Bank at Dallas, Texas.
(c) The principal crops and products of Southern
Oklahoma being identical with Texas products and
crops, the Dallas Bank can understand and care for
the wants and necessities of Southern Oklahoma much
better than the Kansas City Bank or any other Bank.
(d) The Organization Committee having taken
much time and painstaking care in the establishment
of the present district lines, and it being apparent that it
was an absolute impossibility for any committee to so
district the United States as that its action would meet
With the entire approval of all persons, both within and
Without each respective district, the action of said committee should be given full faith and credit, and no

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change should be made in the present district lines of
the Tenth and Eleventh Districts until a reasonable time
has passed and the action of the Committee has been
given a full and fair test, to the end that the Federal
Board could then determine whether or not any error
had been made by the inclusion of any territory within
a given district.
(e) All of Southern Oklahoma being nearer Dallas
than Kansas City, it was not only proper but necessary
that it be included in the Eleventh District, and the
fact that possibly a majority of its banks had heretofore done considerable business with Kansas City banks,
furnishes no reason why the action of the Organization
Committee should be overruled and that territory, situated almost at the door of the Dallas Reserve Bank,
should be transferred to a bank situated hundreds of
miles away.
STATEMENT UNDER THE ABOVE PROPOSITIONS.
The petition, under subdivision headed "Course of
Business," refers to data which petitioners state was
being filed with this Board, and inasmuch as such data
is not accessible to respondent, it will be impossible for
it to reply fully to the new matter and testimony which
it has never seen and which it has no opportunity of
seeing.
In addition to the record of the Organization Committee, respondent, solely for the purpose of answering
the new matter and testimony filed by petitioners, and
without waiving its objection to a consideration by the
Board of such new testimony, also will use and refer to
some additional letters and statements not found in the

13
record of the Organization Committee, copies of which
will be found in the Appendix to this brief.
Particular reference is here made to the maps found
on pages 108, 109, 110 and 111 of the copy of the record
filed by the Organization Committee with the Senate
of the United States, the date of the letter transmitting
such record being May 18, 1914.
On page 115 of said Senate Record will be found the
following:
"Signed statements from the Dallas jobbers show
that they sell to 28,280 merchants in Oklahoma, 3,151
merchants in New Mexico, 5,698 merchants in Arkansas
and 7,222 merchants in Louisiana."
On page 116 the following:
"The map attached will show that all of the territory claimed in Oklahoma, Arkansas and Louisiana,
is within 15 hours by rail from Dallas. That every
Portion of the territory can be reached from Dallas in
less time than from St. Louis. With the exception of a
small portion of northern Oklahoma, north of the Canadian River, it can be reached from Dallas by rail in
shorter time than from Kansas City. The only portion
of the territory that can be reached from Denver in a
shorter time than from Dallas is the northern half of
New Mexico, and a small portion of the Panhandle of
Texas. Less than 5 per cent of the population in the territory, exclusive of Texas, can be reached more quickly
from Kansas City or St. Louis, than from Dallas. Eight
hundred and ninety-three of the 943 National banks are
nearer Dallas than they are Kansas City, St. Louis,
Denver or New Orleans. One thousand, seven hundred
and sixty-one of the 1,816 State banks are nearer Dallas
than any other of the cities mentioned."

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On pages 117 and 118 the following:
"It is a region in every sense, express and implied,
in which that word is used under the law. Including the
relatively small territory outside of Texas, which has
for its convenience been put with Texas, and which can
with most advantage to it be best served from a Texas
bank, the region contains or produces approximately:
"One-sixth of the area of the United States (such
area is large enough for a district, while, if added to
the other territory claimed by St. Louis, the enlarged
district would embrace approximately one-third of the
total area of the United States).
"One-twelfth of the population of the United States
(the increase during the last decade being 39 per cent).
"One-eighth of the National banks of the United
States.
"One-tenth of the State banks of the United States
(the number of total banks increased in the last 14
years 454 per cent).
"One-seventh of the total farm production of the
United States ($1,000,128,597).
"Two-fifths of cotton production of the United
States ($381,132,400).
"Four-ninths of total cotton-seed production of the
United States ($54,785,550).
"One-tenth of live-stock production ($205,224,132).
"One-half of cotton exports ($253,020,000).
"One-eighth of the total exports of the United
States.
"With the exception of some territory in the extreme
western and southern portions of the district, and a small
area in southwestern Louisiana, every point in the district is within 12 hours' mail service of Dallas, and
those remote portions of the territory are within closer
mail service to Texas cities than any other city which
has been under consideration as a location for a regional
bank."

15
On page 118 the following:
"For eight months in every year a regional bank in
this district would have money to loan; for 12 months in
an ordinary year it could take care of its own member
banks and have money left. During the exceptional year
(1913) just passed, it could, at the peak of its advances
to member banks, have financed itself. If, however,
under extraordinary stress, it should need to re-discount
the receivables of member banks to a small extent with
other regional banks, or to issue emergency currency,
it would simply be making use of these features of elasticity which have been advertised as among the chief
excellencies of the new banking law.
"If the Texas regional bank should be a lender bank
8 months out of every year, and 12 months out of an
ordinary year, why 'should it not every 4 months, during
an occasional extraordinary year, be a borrower or.noteissuing bankl"
William Mee, President of the Oklahoma City Clearinghouse Association, testifying before the Organization
Committee at Kansas City, said that the Oklahoma banks
did business largely with Kansas City banks, and then
added:
"The cotton interests are divided to the East almost
altogether, New York and Boston, very largely" (p. 1919,
typewritten copy of Testimony taken by the Organization
Committee).
P. C. Bings, of the Guarantee State Bank of Ardmore, Oklahoma, testified before the Organization Committee at Kansas City, that he was there as a committee
representing the southern part of Oklahoma for the
Oklahoma Bankers' Association, and, while so testifying, he was interrogated by the Secretary of the Treasury, and answered as follows:

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"The Secretary of the Treasury: If you did not have
it at Kansas City, where would you then prefer it?
"Mr. Bings: As I say, it does not make any difference to me as long as we have a branch bank in our
own State.
"The Secretary of Agriculture: You are pretty near
Ft. Worth and Dallas. You do not want to be connected
with a bank at any place in Texas?
"Mr. Bings: I am afraid that neither Ft. Worth nor
Dallas will get a regional bank, hence we would have
to go further south, to New Orleans.
"The Secretary of Agriculture: Suppose one were
at Dallas?
"Mr. Bings: That would be our second choice.
"The Secretary of the Treasury: It would be?
"Mr. Bings: Yes, sir, from the fact that three months
in the year there is the cotton season and 60 per cent of
our business goes south of Ft. Worth, Dallas or Houston" (pp. 1998 and 1999, Transcript of Testimony taken
by the Organization Committee).
Sam I. Hynds & Company, cotton merchants, and
members of the New Orleans Cotton Exchange, in a letter to B. A. McKinney, a Director of respondent, made
the statement that practically all of the cotton produced
in Oklahoma, sold for export and to New England mills,
passes through Texas ports or New Orleans, and, further,
that farmers and merchants who ship cotton on consignment forward same to Houston, Galveston or New Orleans. In other words, almost the entire Oklahoma cotton crop is shipped by way of the Gulf. See letter in
Appendix, marked Exhibit D.
Frank Kell, the principal owner of the Wichita Mill
& Elevator Company, and the Oklahoma City Mill &
Elevator Company, the largest mill operator and grain

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17
dealer in the Southwest, in a letter to B. A. McKinney, a
Director of this respondent, shows that practically 90%
of the grain, such as wheat, oats and corn, raised
in
Southern Oklahoma, moves southward and is consumed in
Texas and Louisiana or moves out through Texas Gulf
ports. See letter marked Exhibit E in Appendix.
Particular attention is called to the trend of questions asked by the Secretary of the Treasury at the hearings in Kansas City and Austin, which indicates that
the matters made the basis of this first complaint in the
Petition were being duly considered by the Organization
Committee.
The second proposition advanced by petitioners,
headed "Loan and Discount Facilities," is as follows:
"Second—In the second place, Southern Oklahoma should be placed in the Kansas City District,
because the figures show the Kansas City District
will be better able to meet the re-discount requirements of the Southern Oklahoma banks, than will
the Dallas District."
In support of this proposition, petitioners use data
and new testimony not contained in the record of the
Organization Committee, a great part of which is not
fully shown in the petition.
In reply to the second contention so made by petitioners, respondent respectfully submits counter-propositions as follows:
(a) The reports of the Dallas Reserve Bank, made
to this Board, and of which
this Board is fully apprised,
Show conclusively that the petitioners' fears are unfound
ed and that the Dallas Reserve
Bank is able to furnish

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18
proper and adequate discount facilities to all of its
member banks, including the banks in Southern Oklahoma, and that the Southern Oklahoma banks have already begun to use the Dallas Reserve Bank as a medium
of discount, and that of the discounts made by the Dallas Reserve Bank, 25% of the amount was for
Southern Oklahoma banks.
(b) The showing of petitioners under their second
proposition proves only and conclusively that the banks
in the Eleventh District in Texas and Louisiana are
thoroughly cognizant of the needs of their territory, and
furnish readily and fully the necessary funds with
which to move the products and crops of their territory,
and that, when necessary, they will borrow sufficient
money for this purpose.
(c) The Federal Reserve Act was purposely designed
to take care of just the contingency suspected by the
petitioners to arise, but which has not been shown by
the petitioners to have arisen; and if such a contingency
should arise, adequate provision therefor is made in the
Act without the necessity of changes in district lines.
(d) The petitioners wholly fail to show any condition of inability upon the part of the Dallas Reserve Bank
to properly care for the needs and necessities of the
Southern Oklahoma banks, and until such a condition is
shown, there can certainly be no reason or cause justifying a reversal of the judgment of the Organization Committee in establishing the present district lines.
(e) Neither the present district lines nor the terms
of the Federal Reserve Act prevents any member bank
in Southern Oklahoma from carrying an account with
any other bank in Kansas City or elsewhere, and the in-

19
elusion of Southern Oklahoma in the Eleventh District
does not deprive any member bank of its right or privilege of carrying an account with Kansas City banks, if
it desires.
(f) According to the terms of the Federal Reserve
Act, it is impossible for the reserve banks to reach their
full measure of strength and usefulness for a period of
three years from the date of the opening of the banks,
and until such a length of time has elapsed in which
to permit the reserve banks to in a measure reach the
maximum of their strength and efficiency, certainly no
action should be taken by this Board changing the present lines of Districts Ten and Eleven, because at this time
the banks have not been in operation a sufficient length of
time to enable the Board to correctly determine whether
the judgment of the Organization Committee in establishing the present lines was erroneous.
(g) The very purpose of the Federal Reserve Act
was to furnish stability to our financial system and to
change some former methods in the banking world, and
to prevent a repetition of the disastrous conditions
Which have befallen this country in the past, and which
were believed by the framers of the Act to have been
occasioned in a large measure by customs and methods
heretofore pursued, and certainly no just criticism
can be made of the acts of the Organization Committee
in establishing the present district lines, when it is
said, as it is said in the petition, that such action in a
measure changed banking customs heretofore prevailing.
STATEMENT UNDER PROPOSITIONS (a) to (g), INCLUSIVE.
See former Statement hereinbefore set out.

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On page 118, Senate Record, will be found the following:
"The unassailable fact is—St. Louis and Kansas City
will not dispute it—that when Texas needs money to
move its crops, its banks can not borrow money in any
considerable quantities in either St. Louis or Kansas
City, and must go to Chicago or to the Atlantic seaboard. Balances are kept in St. Louis now, not in order
to secure loans there in time of need, nor because trade
sets that way, but in order to secure exchange facilities
and provide means for making collections at par.
"The re-discounts and bills payable in the district
Texas has defined, were $23,000,000 at the peak of the
heaviest demand of 1913. How much duplication or
pyramiding was in this sum it is not easy to say; but,
as shown in the Dallas Book of Facts, more than threefifths of the amount could have been absorbed by the
reduction in the percentages of reserve which are
provided for under the law. The National banks in
the territory would have had $15,000,000 more of loanable funds at that time, if the present law had then been
in force, leaving only $8,000,000 to be taken care of by the
regional bank. Its available funds for that purpose
would have been far in excess of these demands.
"If the new law is simply going to provide new
machinery (perhaps more complex than the old) for
doing what is already being well done under the existing banking system, its importance and efficiency has
been vastly exaggerated. We do not believe it is so
limited in function. We think it was intended to provide elasticity and a means for equalizing seasonal inequalities, to relieve strain where strain has been great
under the old system. It is, however, going to be a
handicap instead of an advantage, if its effect will be
normally to restrict Texas banks or banks in any other
single district, to their regional bank and affect their
open market connections. If it is going to be thought

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a crime, or even bad banking, for one regional bank
to use the surplus funds of another at one season, and
to render the same service to another bank at another
season, the law will prove to be absurdly inadequate.
"Moreover, why should it be thought inevitable
that the member banks will deal only with the regional
bank when wanting to borrow money? No one doubts
that banks which now have resources beyond their
local needs will continue to lend that money to other
banks to meet seasonable requirements. If the new law is
to create in the Government a monopoly of the business of loaning money to National banks to meet their
seasonable requirements, it has not been so advertised.
Member banks will, of course, maintain their legal reserve with the regional banks, but they will deposit as
in the past surplus funds with other banks, receiving
interest on daily balances and having constant transactions in the borrowing and loaning of money as heretofore."
On page 120, the following:
"Southern Oklahoma is identified with Texas in
every way. Texas people settled it up; Texas buys its
Cotton; her cattle graze its ranges; Texas buys its
stock, its gas, its oil and its lumber. Northern Oklahoma
is divided, a part preferring Kansas City, a part preferring St. Louis. Texas is closer to it, however, in
every way, and can serve it better than any other State.
"No doubt there are many people in Louisiana, Southwestern Arkansas and Oklahoma, who would prefer not
to be put in the District with Texas cities. There
are many, however, who favor the Texas district. Some
violence must be done, for manifestly this committee
can
. not please those holding such opposing views. The
nearest possible reconcilement—if the endeavor is to be
made to please everybody—would be, to put Southern
Oklahoma with the Texas district and Northern Okla-

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homa with the St. Louis district, assuming, of course,
that no bank is to be put at Kansas City."
On page 112, the following:
"Nine trunk-line railroads radiating in 27 different
directions, with 91 daily passenger trains: Chicago, Rock
Island & Gulf Railway; Gulf, Colorado & Santa Fe
Railway; St. Louis, San Francisco & Texas Railway;
Houston & Texas Central Railroad; Missouri, Kansas
& Texas Railway of Texas; St. Louis Southwestern Railway of Texas; Texas & New Orleans Railroad; Trinity
& Brazos Valley Railway; Texas & Pacific Railway.
"Five electric interurban railroads radiating in seven
different directions, with 156 daily trains, handling
4,000,000 passengers annually: Northern Texas Traction
Co., Southern Traction Co., Texas Traction Co., Eastern
Traction Co., Dallas-Corsicana Traction Co.
"Dallas has headquarters and general offices for the
Southwest, of the Western Union, Postal, and Mackay
Telegraph Cos., with 262 circuits, handling 18,497,300
telegrams per year. Dallas ranks sixth in the United
States in total volume of business.
"Dallas has headquarters and general offices for the
Southwest of the Southwestern Telephone (Bell) Co., with
159 toll circuits, originating 554,000 long-distance calls
per year, increasing at the rate of 50,000 calls per
year; 2,924 toll stations operated from Dallas as headquarters; 643 towns served from Dallas on 50-cent rate,
169 on 25-cent rate. Fifteen and nine-tenths per cent
of all the telephones in Texas are in Dallas.
"Dallas has the largest telephone development per
capita of any city in the United States.
"All express companies operating in the territory
have headquarters at Dallas.
"Only six cities in the United States have a larger
volume of express business than Dallas.
"Dallas has more express business per capita than
any city in the United States.

23
"Dallas has 176 mail receipts and 137 mail dis•
patches daily.
"Dallas has 111 daily exchanges of mail pouches
direct with towns in Texas. Dallas has 65 daily mail
dispatches to railway post offices. Dallas has 80 daily
receipts of pouches direct to Dallas from other Texas
cities. Dallas has 57 mail receipts daily from railway
postoffice lines, exclusive of the 80 direct receipts from
Texas. In reaching territory outside of Texas, Dallas
has 57 receipts of mail and 65 dispatches of mail daily.
"While Dallas is the fifty-fourth city in size, its
postal receipts are thirty-third in volume, and as much
as any two cities in the territory combined."
On page 123, the following:
"M. H. Wolfe has furnished the following cotton statistics:
"Cotton area of all the South, 892,072 square miles.
"Cotton area in 12 hours' ride of Dallas, 437,794
square miles, or 49 per cent.
"Total cotton produced in South last year, 14,101,000
bales.
"Cotton produced in 12 hours' ride of Dallas, 6,857,000 bales, or 481/2 per cent.
"Texas produced last year 4,902,000 bales.
"Oklahoma produced last year 1,057,000 bales.
"Arkansas produced south of the Arkansas River
505,000 bales.
"Louisiana produced 393,000 bales.
"Dallas cotton buyers bought last year 1,459,000
bales.
"Dallas cotton buyers have salaried men covering
all sections of Texas, Oklahoma, Arkansas and Louisiana,
and paid out for cotton last year approximately $92,000,000, and approximately $80,000,000 of this cotton was
financed directly or indirectly by the Dallas banks."
At the hearing before the Organization Committee in

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Austin, Texas, on February 9, 1914, Thomas H. Ball, of
Houston, testified before the Organization Committee, and
while he was testifying, the following interrogatories
and answers were given:
"The Secretary of the Treasury: Suppose New Orleans made exactly the same argument you are making,
that she did not want to be attached as a vassal to Texas,
what is this Committee to do? There are various sections
of the country that are arguing that they ought not to be
attached to anything, they must be kept off by themselves, they do not want a re-united country on the financial question; and so, if that argument is good here,
it is good in other sections of the country we have visited, so we are bound to consider this question from the
economic standpoint, having relation to all these parts
of the whole, and that is the only way we can consider

it.
"Mr. Ball. Yes, and I do not expect you to do it
any other way. And if New Orleans puts up that kind
of an argument, she is at perfect liberty to do so, and
I will not resent it; and I do not resent these people
coming in from St. Louis and trying to make representations, and do the best they could to get us in
with them.
"After all, the responsibility will come back to you
gentlemen who are charged with it, and you will give
such attention to our representations and views and
figures as you think they are worthy of. And though
you slay us, we will still serve this administration. We
gave up the tariff on our raw material, against the
judgment of a great many without a murmur, and we
are trying to do what is right, and we want to help
you in your great task; but we certainly think, with a
State of this magnitude, and this showing, which must
appeal to you as reflecting some degree of credit upon
our people and their resources, we do feel very deeply
in earnest about this matter, and we think that, with

25
the Pacific Coast, conceding it to San Francisco—I do
not want to be in the attitude of hostility towards St.
Louis, and I had her on the list of the eleven cities that
I thought ought to be given regional reserve banks,
but I do think that Texas, with her position, her great
geographical area, her tremendous resources, the manner
in which she is forging to the front in every line, and
the confidence of her own people, that she can take care
of the situation; that these points which have been suggested by our committee and by the Dallas committee,
will not be any more bitterly opposed certainly to being
attached to Texas, than Texas will be to being attached
to these other points, and I was just suggesting that because while we are amiable, we want to do all we can;
we want you to consider as far as you can consistently
With your enormous responsibility, the desires and
wishes of this great State of ours.
"The Secretary of the Treasury: That is what we
came here for, to get your views, and we are going to
give fair consideration to every argument that has been
Presented. But I should like to say just this in answer
to your remarks, that though we slay you, you will
still be loyal to the administration, Colonel—
"Mr. Ball: Well, I mean the Government.
"The Secretary of the Treasury: I want to say that
It' that connection, of course I assume you are speaking
facetiously, but somebody may not understand you, and
therefore I do wish to say, that it is impossible, of course,
in the laying out of these districts as required by law,
to slay any section of this country, or injure any section,
Whatever these districts may be. This new system is
bound to be more beneficial than what you have got
today, so that while the desire of every local community
Will be impossible to meet, and if we allowed every
community to lay out its own district, we would never
get the country divided into these districts; the purpose of the committee in having these hearings through-

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Federal Reserve Bank of St. Louis

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out the country has been solely to give the people of
this country the largest and amplest opportunity to present the views as they see them for our consideration;
and we are going to give those views fair and impartial consideration and our decision will be rendered from
that standpoint, and no other.
"Mr. Ball: We know that, Mr. Secretary."
Mr. W. W. Collier, Commissioner of Banking and Insurance of the State of Texas, testified before the Organization Committee at the hearing at Austin, Texas,
on February 9, 1914, and, while testifying, the following interrogatories and answers were given:
"The Secretary of the Treasury: We should like
some information as to that, and also whether State
banks, under your law, are entitled to become members
in this system.
"Mr. Collier: Yes, sir, there is nothing in our law
to prevent them becoming members.
"The Secretary of the Treasury: Is there anything
that authorizes them? Are they permitted to own
stock?
"Mr. Collier: Yes. Under the statutory provision
they can own not in excess of 10 per cent of the capital stock of the corporation in which they are investing.
"The Secretary of the Treasury: You mean 10 per
cent of their own capital?
"Mr. Collier: No. 10 per cent of the corporation in
which they are investing.
"The Secretary of the Treasury: That would seem to
give them ample power.
"Mr. Collier: There are 849 State banks in Texas,
with a total capital, surplus and profits of $44,645,000.
I will omit the odd figures. They have total deposits
of $96,000,000 and total resources of $149,000,000.

27
"The Secretary of Agriculture: What has been the
growth in the last five years?
"Mr. Collier: The growth of the banks during the
fiscal year 1912-1913, there were 111 new charters granted, with aggregate capital of $3,358,500. The growth
of the deposits from the time the State Bank Law went
into effect in 1906, was $8,000,000; 1907, $19,000,000;
1908, $22,000,000; 1909, $39,000,000; 1910, $48,000,000;
1911, $58,000,000; 1912, $71,000,000; 1913, $96,000,000.
"The Secretary of Agriculture: That is the growth
in the last seven years?
"Mr. Collier: That is the growth since the system
was established.
"The Secretary of the Treasury: How many are
eligible under the Federal Reserve Act?
"Mr. Collier: 377, with an aggregate capital and
surplus of $31,857,500.
"The Secretary of Agriculture: And deposits?
"Mr. Collier: I did not give the deposits, because
I was not called on until this morning for this data,
and did not have time to prepare that, but it is fair to
assume that the deposits of those would be about $60,000,000.
"The Secretary of the Treasury: Have you any indication from these banks as to their purpose with regard to the Federal Reserve Act?
"Mr. Collier: I will say this, Mr. Secretary, I
have had, I suppose, inquiries from almost every one,
and the attitude of the Department of Banking in Texas
is to encourage them to become members.
"The Secretary of the Treasury: Are they showing
a disposition to come into the Federal Reserve system?
"Mr. Collier: I believe it is fair to assume that
more of them would become members if a Federal Reserve Bank is located in Texas, than they would if it
was located otherwise.
"There is one point I want to touch on, if you will
pardon me. That is, it has been suggested that having

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Federal Reserve Bank of St. Louis

a Reserve Bank located in Texas; where it was entirely
a borrowing country, would not be advantageous or
wise. I want to say that if the banks used their reserves, they would always be able to take care of themselves. At the date of the last call, our State banks in
Texas only had four and one-half million dollars borrowed, and had in Eastern Exchange over $14,000,000."
ARGU MENT.

Petitioners state, on the first page of their petition, their reasons for omitting the Counties of Bryan,
Choctaw, Marshall, McCurtain and Pushmataha from
their application to transfer certain territory in Southern Oklahoma from the Eleventh District to the Tenth
District.
Their reasons, as stated, may be correct, but a very
sufficient and potent reason will also be found by reference to Exhibit F, 1 to 26, inclusive, in the Appendix, wherein will be found copies of letters from
twenty-six member banks situated within this territory,
stating most unequivocally that they are situated in
the District of their preference.
As shown in the Appendix, Exhibit "G," there are
one hundred and sixty-six member banks in Southern
Oklahoma within the Eleventh District. The Committee
filing this petition have excluded from the terms of the
petition the Counties of Bryan, Choctaw, Marshall, McCurtain and Pushmataha. In these five counties there
are thirty member banks, as shown by Exhibit G, in
the Appendix, the name of each member bank being
preceded by a star. Deducting these thirty banks from
the number of member banks in Southern Oklahoma,
there are left one hundred and thirty-six member banks.

29
In order for any territory to be transferred from
one District to another, it is absolutely necessary, under
the rules and regulations of this Board, for appeal from
the decision of the Federal Reserve Organization Committee, that two-thirds of the member banks in the territory sought to be transferred, join in the petition
asking to be transferred from one District to another.
Thus it will be seen that it requires a petition signed
by ninety member banks before this Board would have
Jurisdiction to hear any petition at all looking for a
transfer of territory from the Eleventh to the Tenth
District.
Attention is here called to the fact that certain banks
Which filed protest slips with the Federal Reserve
Board, some time before the opening of the Federal
Reserve Banks have been listed by the Committee filing
this petition as petitioning banks. The Board's attention is respectfully called to copies of letters from twenty-two of these banks so listed as petitioning banks,
found in the Appendix, marked Exhibit A, 1 to 22,
inclusive, which letters show not only that these banks
are not petitioning banks, but that the great majority
of them are perfectly satisfied and want to remain in
the Eleventh District, and that the remainder feel that
no change should be made now, and that no effort should
be made to change the lines until after the Federal
Reserve Banks have been in operation a sufficient length
of time to enable your Board to intelligently and properly determine whether or not the Federal Reserve Organization Committee made error when it established the
present lines.
On the last page of the petition will be found the

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statements: "Total number of national banks in the
territory sought to be transferred, 128. Total number of
banks asking to to be transferred, 104. Two-thirds majority required by rules, 85.". Each of these statements is erroneous and misleading, and none of them can
be accepted as correct. In the first place, there are
136 member banks in the territory sought to be transferred. In the next place, out of the 104 banks which
the petition lists as petitioning banks, the Board will
find, upon examination of Exhibit A, 1 to 22, inclusive, that twenty-two of these banks have, in effect,
expressly stated that they are not petitioning this Board
to make any transfer of this territory at this time.
In order for the Board to hear a petition from the
banks in Southern Oklahoma, that petition, in accordance with your regulations, must be signed by the duly
authorized officials of ninety member banks. Respondent has heretofore insisted, and now insists, that this
petition has never been authorized or signed by any
banks in the territory sought to be transferred, with
the exception of the City National Bank, of McAlester,
and the First National Bank, of Lawton. The third
man signing the petition does not even claim to reside
in the territory sought to be transferred.
If your Board overrules the exceptions heretofore
urged and overrules the contention here made, that no
proper. petition has ever been filed, in accordance with
your regulations, then most certainly, when you deduct
from the number of banks which this Committee states
( are petitioning banks, the twenty-two banks which have
I expressed a desire either to remain within the Eleventh
\ District, or a purpose not to urge any change or trans-

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31
fer at this time, you will then have left only eighty-two
banks, or eight less than the number required to file
a proper and legal petition under the Board's rules and
regulations.
Attention is here called to the fact that whatever
protest slips have been filed with your Board antedate
the letters from the banks in Southern Oklahoma shown
in the Appendix and referred to in this brief.
Attention is further called to the fact that there are
sixty-two letters from banks in Southern Oklahoma
showing that they are not in sympathy with the Committee filing this petition. Had not the five counties
above mentioned been excluded from the territory sought
to be transferred by this petition, it would have required one hundred and ten banks to file a proper
Petition under your rules. It is, therefore, apparent
that the Committee filing this petition were forced to
exclude from the territory in the Eleventh District situated in Oklahoma certain Southern Oklahoma counties or that it could not have claimed, even by referring
to prior protest slips, to have filed a petition which
Could be considered at all under your rules.
It will be noticed, from certain expressions found in
the letters in the Appendix, that the reason first assigned by certain parties outside of the District why
Southern Oklahoma should not be included within the
limits of the Eleventh District was, that the State of
Oklahoma was being divided. Appeals were made to the
patriotism of the bankers in Southern Oklahoma to
Protest against the inclusion of Southern Oklahoma
Within the limits of the Eleventh District because, and

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for the sole reason, as first claimed, that the State was
being divided.
Under the first proposition in petitioner's brief
page 1, is found subdivision entitled, "(a) Course of
Business," and the contention is there made that because
the Oklahoma banks have heretofore done some business
with Kansas City banks, therefore the course of business was to Kansas City, and that, for this reason, the
transfer of territory should be granted.
In order to properly analyze the contention made
by petitioners, it is necessary to view the circumstances
which forced the course of the banking business to take
the unnatural trend and not follow the course of
commerce.
Under the old law, St. Louis was a central reserve
city, and Kansas City was a reserve city. Chicago,
New York, and other Eastern cities were central reserve,
or reserve, cities. This condition prevailed for a great
number of years before the development of the great
Empire State of Texas. Kansas City, St. Louis, Chicago,
and other cities were reserve cities for a number of
years prior to the establishment of any reserve cities
in the State of Texas, and, under the then existing law,
it was incumbent upon the banks to carry balances in
the reserve cities.
Therefore, Oklahoma banks, Texas banks, Louisiana
banks, New Mexico banks, and Arizona banks, and a
great many other banks in the Southwest, were forced
to carry balances and do business through Kansas
City and St. Louis, because of the advantages those
cities had by reason of being reserve cities; and this
business, which the petitioners state is the natural course

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of business, was built up by virtue of this condition
just mentioned, which forced the trend of the banking business to be to Kansas City and St. Louis, rather
than to follow the commerce, which was to the South
and Southwest.
It may be conceded that a great many banks in
Southern Oklahoma heretofore, have done and now do,
business in Kansas City, but the conceding of that point
does not necessarily show an error in judgment on the
Part of the Organization Committee. The Federal Reserve Act does not force these banks to discontinue car'Ting balances in Kansas City, if they find it to their
advantage to do so, but simply requires them to also
carry part of their reserve in the Federal Reserve Bank
of their District.
Instead of working to the disadvantage of the banks
in Southern Oklahoma, this Act works to the distinct
advantage of these banks, in that it permits them to retain a banking connection in Kansas City and opens for
them a very valuable banking connection with the
Reserve Bank in Dallas, in the very locality where
their products are marketed and paid for.
On the first part of the second page of petitioners'
brief, is found certain figures claimed by the petitioners
to support their theory as to why the transfer of this
territory should be made. These figures are not new.
They were known to the Organization Committee, and
are readily explained in the light of what has heretofore
been said with reference to the forced banking connections heretofore existing at Kansas City and St.
Louis, and other Reserve cities.

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On the second page of the petition is found the
following:
"We invite the attention of your Board especially to a perusal of the letters from which these
figures were tabulated, as many of them show the
dissatisfaction existing among the bankers in Southern Oklahoma, and their evident desire to be included in the Kansas City District."
Such letters therein referred to are not accessible
to respondent and are not found in the record of the
Organization Committee, and constitute new testimony,
introduced on this hearing for the first time, in violation
of the regulations of the Board, and cannot be considered; but, if considered, and if, as stated by petitioners,
these letters show dissatisfaction among some bankers
with the establishment of the lines, then the question
arises, whether or not this is simply a bankers' law, or
if this law shall be permitted to perform the functions
which its authors and friends claim for it; that,
is, to be a benefit and relief to the business of the entire country.
It may well be here suggested, that it would be impossible, indeed, to frame any law with reference to
banking matters, which would please all bankers. In
fact, when this law was first proposed, a great many
bankers were against it in its entirety, and this same
dissatisfaction, which petitioners state these letters
show, may grow out of the dissatisfaction held by eqtain bankers to the law itself.
Because some banks in Southern Oklahoma haye?,heretofore done business with Kansas City, does not show
that that is the natural trend of business, Ira the pe-:

35
titioners themselves in the brief, show that the trend
of business, that is, the trend of commerce itself, is
not in the direction of Kansas City. Everybody else's
business except the bankers' business, goes to the
South and Southwest, and, therefore, the Dallas Bank
is in line with the trend of the commerce and business
from Southern Oklahoma.
The next subdivision of petitioners' brief, entitled
"Oklahoma-Dallas Relations," page 2, refers to a letter
from Mr. Thralls, manager of the Kansas City Clearinghouse, which letter we are unable to find in the
record of testimony taken by the Organization Committee
and we, therefore, naturally conclude that this letter
is also new testimony furnished by the petitioners for
the first time.
But what has been above said with reference to the
course of business, in our opinion, completely answers
this contention of the petitioners, and the contention
itself, we submit, is not worthy of any serious consideration.
• In this connection, we desire to call the Board's attention to a portion of the testimony set out under our
second statement above, which will also be found on
Page 118, Senate Record, and is as follows:
"If the new law is simply going to provide new
machinery _(perhaps more complex than the old) for
doing what is already being well done under the existing. banking system, its importance and effieiency has
been ••vastAy exaggerated."' We do not believe it is so
liya4ed in iimetion. We think it was intended to provAler.elaatieity,and, .a, means for equalizing seasonal inequal4ies,., to relieve strain where strain has been great
under the -old system. It is, however, going to be a

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handicap instead of an advantage, if its effect will be
normally to restrict Texas banks or banks in any other
single District to the Regional Bank and affect their
open market connections. * * *
"Moreover, why should it be thought inevitable
that the member banks will deal only with the Regional
Bank when wanting to borrow money? No one doubts
that banks which now have resources beyond their
local needs will continue to lend that money to other
banks to meet seasonable requirements. If the new law
is to create in the Government a monopoly of the business of loaning money to National banks to meet their
seasonable requirements, it has not been so advertised.
Member banks will, of course, maintain their legal reserve with the regional banks; but they will deposit
as in the past, surplus funds with other banks, receiving interest on daily balances and having constant
transactions in the borrowing and loaning of money, as
heretofore."
This quotation is from the record of the Organization
Committee, and, of course, it would be absurd to suggest
that the Organization Committee did not give due consideration to this statement, as well as the other facts
introduced, before it at its numerous hearings, and
it is apparent, from a careful reading of the Federal
Reserve Act, that its purpose was not to limit member
banks to Federal Reserve Banks, but was enacted for
the purpose of giving the member banks the benefit
of the new facilities in addition to the facilities they
had already enjoyed.
On page 3 of petitioners' brief is found subdivision
entitled as follows: "What Dallas Bankers Say."
Under this heading, reference is made to letters from
two banks in Dallas, which letters, from their dates,

37
show to have been written after the hearing of the Organization Committee, and which letters are not found
in the record before the Organization Committee. The
letters, however, when read and considered, form no
basis upon which to predicate the argument that the
Federal Reserve District lines should be changed. If
Dallas banks have not sought business from Oklahoma
banks, it may be to the disadvantage of the Dallas
banks, but it certainly does not show a reason for transferring territory situated at the door of the Dallas Reserve Bank, to a bank situated several hundred miles
away.
On page 3 of petitioners' brief is found subdivision
entitled: "What Freight Shipments Show." The statements made by the petitioners under this heading refute the contention that the trend of business is to
Kansas City, but show that it is to the Southwest, or
towards the Gulf.
In this connection, reference is here made to a letter
from Sam I. llynds & Company, cotton merchants and
members of the New Orleans Cotton Exchange, to B. A.
McKinney, which letter, marked Exhibit D and found
in the Appendix, shows that practically all of the cotton
produced in Oklahoma, sold for export and to New
England mills, passes through Texas ports or New Orleans, and further shows that the farmers and merchants who ship cotton on consignment, forward same
to Houston, Galveston and New Orleans.
Reference is also made to letter from Frank Kell,
reputed to be the largest grain operator of the SouthWest, to B. A. McKinney, designated as Exhibit E,

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88
which shows that practically ninety per cent of the
grain, such as wheat, oats and corn, raised in Southern
Oklahoma, moves southward, and is consumed in Texas
and Louisiana, or moves out through the Gulf ports.
We submit that these two letters are new testimony,
but they are only used to refute the new testimony adduced on this hearing, and which was not adduced on
the hearing before the Organization Committee.
It is absurd to say that the freight rates to Gulf
ports in Texas and Louisiana are not lower than they are
to the Northern and Northeastern markets from Southern Oklahoma, because it is a self-evident fact that commerce follows the trend of lower rates. If there were
equally as good markets for cotton and grain in Kansas City, St. Louis and Eastern points, and the rates
to those markets were lower than to Gulf ports, it would
then be natural that the commerce flow in those directions, instead of through Texas, and to the Gulf.
We have not felt that it was necessary to set out the
different freight rates on these commodities, because,
whenever it is shown to this Board, that the commodities
themselves move to the Gulf. and Gulf ports, it then becomes evident that the freight rates in that direction
must be the favorable rates.
On page 4 of petitioners' brief is found subdivision
entitled: "Showing of Farm Loan Companies." Under this subdivision, reference is made to letters showing that Eastern money had been used for farm loans
in Oklahoma.
We have no doubt but what that statement is true,
although this fact is not shown in the only record to
which we have reference; that is, the testimony before

the Organization Committee; but, granting that Eastern money is loaned on Oklahoma farms, does that
show any good reason why the portion of Oklahoma
South of the Canadian River should not be included
Within the Eleventh Reserve District, with its bank located at Dallas? Will the inclusion of this territory
Within the Eleventh District in the least manner prevent a continuation of loaning of money on Oklahoma
farms by Eastern capital if it so desires?
It is not contended that these farm loans are made
from Kansas City, but they are made in Oklahoma as
Well as in the entire Southwest, by parties all over the
Eastern States, and certainly the fact that part of Oklahoma is in the Eleventh District, with its bank at.Dallas, cannot, in the remotest degree, affect this character
of business.
On the fourth page of petitioners' brief is found
subdivision entitled: "(b) Convenience in Doing Busineas." Under this subdivision, petitioners contend that,
because Southern Oklahoma banks have heretofore done
s°flie business with Kansas City banks, therefore the officers of the Kansas City Bank would be in better position to find out about the Southern Oklahoma banks, and
Would render quicker service than the Dallas Bank.
Of course, this contention, followed to its logical
conclusion, is an indictment of the entire theory of the
Pederal Reserve Act.
Under this heading is found the following:
"The situation at present is such, owing to this
acquaintanceship, that any good bank in Southern
Oklahoma will be granted a re-discount immediately
upon application to its Kansas City correspondent;

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whereas, an application to a new bank to the south
of Oklahoma would result in delay, in many cases,
until an investigation could be made, and as these
applications for re-discounts in the future will
doubtless be made at times when prompt action is
necessary, another reason is afforded why these
banks should be attached to the Kansas City District."
If the applications for loans that petitioners refer
to are to be granted by the correspondent banks in
Kansas City, then certainly the inclusion of Southern
Oklahoma in the Eleventh District would not affect the
Kansas City correspondent's knowledge of the Oklahoma
banks so applying for loans, and this contention, when
analyzed, falls of its own weight.
If the point sought to be made by petitioners is
that, by reason of the fact that the Kansas City banks
are acquainted with the Southern Oklahoma banks and
that, by reason of that acquaintance, they would furnish the Federal Reserve Bank at Kansas City with
information regarding the Southern Oklahoma banks,
then a complete answer to that proposition is that the
Kansas City banks do not possess an absolute monopoly
of knowledge regarding Southern Oklahoma banks, and
that the same information which they have has been
and is readily obtainable by the Dallas Reserve Bank,
when making investigation of the solvency and condition of Southern Oklahoma banks.
An analysis of the re-discounts made by the Dallas
Reserve Bank will explode this proposition in an instant. There are 757 member banks in the Eleventh
Reserve District. Out of this number there are 166
banks in Southern Oklahoma. Reference is here made

41
to reports filed with this Board by the Federal Reserve
Bank of Dallas, which show that the Federal Reserve
Bank, of Dallas, out of the total amount re-discounted
by it, has furnished re-discount facilities to Southern
Oklahoma banks of more than twenty-five per cent of
the total.
Thus it will be seen that this apparent hardship
Which petitioners dreamed would develop, has not developed, but has faded in reality, when put to the test
suggested by petitioners.
On the fifth page of petitioners' brief is found subdivision entitled: "Mail Facilities." Petitioners there
contend that Southern Oklahoma should have been included in the Kansas City District, because of the mail
facilities.
In support of this contention, reference is made to
testimony not accessible to respondent, because not
found in the record of testimony taken by the Organization Committee; but an analysis of the position so taken
by petitioners shows that the contention is absolutely
unfounded and that the weight of the testimony accessible to your Board and to respondent establishes the fact
that, instead of the mail facilities from Southern Oklahoma points to Kansas City being better than to Dallas, the reverse in fact is true.
Reference is here made to a letter from W. S. Cross,
1)resident of the State National Bank of Hollis, Oklahoma, to the Federal Reserve Board, dated January 15,
1915, designated and shown as Exhibit A-14, found in
the Appendix, reading as follows:
"In regard to the proposed change in this Reserve District, we prefer to stay in the Dallas Dis-

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connections
trict, on account of the distance and
hours
twelve
which the mails make. We are only
Kansas
from
from Dallas, and about forty-eight
City."
has
This letter is from the President of a bank which
for
been listed as one of the petitioning banks asking
this transfer.
statement
We refer further to a portion of the first
page
set out above, wherein there is a quotation from
116 of the Senate Record, reading as follows:
territory
"The map attached will show that all of the
within
claimed in Oklahoma, Arkansas and Louisiana, is
15 hours by rail from Dallas. That every portion of the
than
territory can be reached from Dallas in less time
portion
from St. Louis. With the exception of a small
it
of northern Oklahoma, north of the Canadian River,
than
time
shorter
in
rail
by
can be reached from Dallas
from Kansas City."
NorthAttention is called to the fact that no part of
inern Oklahoma, north of the Canadian River, is
therecluded in the Eleventh Reserve District, and that,
hi'
fore, by the testimony here shown and considered
shed,
establi
the Organization Committee, it is absolutely
beyond any controversy, that all of the territory in
Oklahoma included within the Eleventh District, is
from
shorter distance by rail from Dallas than it is
Kansas City.
first
Attention is further called to a portion of the
from
statement found in respondent's brief, quoting
folpages 117 and 118 of the Senate Record, reading as
lows:
"With the exception of some territory in the 0treme western and southern portions of the District,

43
and a small area in southwestern Louisiana, every point
in the District is within twelve hours' mail service of
Dallas."
If further argument is necessary to refute this contention of petitioners, the Board will only have to turn
to the maps on file with them, and look at the territory in Southern Oklahoma sought to be transferred,
When it will be seen at a glance that this territory is
almost at the door of the Dallas Reserve Bank, and is
several hundred miles from Kansas City.
On page 5 of petitioners' brief is found subdivision
entitled, "Loan and Discount Facilities," from which
We quote:
"Second. In the second place, Southern Oklahoma should be placed in the Kansas City District,
because the figures show the Kansas City District
Will be better able to meet the re-discount requirements of the Southern Oklahoma banks, than
Will the Dallas District."
Reference is here made to the testimony set out in
the second statement above of respondent, being a quotation from page 118 of the Senate Record, as follows:
"The unassailable fact is—St. Louis and Kansas
"ty
t
will not dispute it—that when Texas needs money
L° move its crops, its banks can not borrow money in
anY considerable quantities in either St. Louis or Kan"City, and must go to Chicago or to the Atlantic seaBalances are kept in St. Louis now, not in order
secure loans there in time of need, nor because trade
Tta that way, but in order to secure exchange facililes,and provide means for making collections at par.
yr The re-discounts and bills payable in the District
"as has defined were $23,000,000 at the peak of the

t
i

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or
heaviest demand of 1913. How much duplication
but,
pyramiding was in this sum it is not easy to say;
three
as shown in the Dallas Book of Facts, more than
the
fifths of the amount could have been absorbed by
proreduction in the percentages of reserve which are
tervided for under the law. The National banks in the
loanable
ritory would have had $15,000,000 more of
funds at that time if the present law had then been in
by
force, leaving only $8,000,000 to be taken care of
purthat
for
funds
the Regional Bank. Its available
pose would have been far in excess of these demands."
It will thus be seen that the only testimony introducthe
ed before the Organization Committee, and which is
Board,
only testimony that can be considered by this
refutes in toto the contention made by petitioners.
As further bearing on this point, reference is nov7
respondent,
made to a portion of the first statement of
quoting from page 118 of the Senate Record, as follows:
"For eight months in every year a Regional Bank
District would have money to loan; for twelve
this
in
its
months in an ordinary year it could take care of
own member banks and have money left. During the
peak
exceptional year (1913) just passed, it could at the
itself.
of its advances to member banks, have financed
need
If, however, under extraordinary stress it should
to re-discount the receivables of member banks to a
issue
small extent with other Regional Banks, or to
of
emergency currency, it would simply be making use
d
advertise
these features of elasticity which have been
as among the chief excellencies of the new banking law"If the Texas Regional Bank should be a lender
bank eight months out of every year and twelve months
four
out of an ordinary year, why should it not every
months during an occasional extraordinary year, be a
borrower or note-issuing bank ?"

45
Under the terms of the Federal Reserve Act, the Regional Banks cannot reach the height of their efficiency
for a period of three years. At present they are operating only with a portion of the capital provided by the
terms of the Act. Before tearing up these Districts and
crippling the Bank of the Eleventh District in its operation, would it not be the part of wisdom to wait a
sufficient length of time until the Dallas Bank could, in
a measure, reach the height of efficiency made possible
for it by the terms of the Act?
At this time there is nothing to indicate that the
grounds of fear entertained by the petitioners will ever
materialize. To act now would be a step in the dark,
and Would be to anticipate a condition when there is
nothing to justify an expectation of its realization. Although the Dallas Bank has not, in the smallest degree,
reached the height of its efficiency, yet, at this time,
all of the legitimate wants and
needs of the Southern
Oklahoma banks are being taken care of as
fast as they
are suggested.
Suppose, in an exceptional year, it should become
necessary for the Dallas Bank, in order to move the
great cotton crop of its District, to re-discount the receivables of its member banks to a small degree with
Other Regional Banks, would this constitute a crime, or
would the Bank then be simply putting into operation
the very terms of the law under which it was created?
The testimony which this Board must consider does not
allow that even it will be necessary to do this;
but, if
an extraordinary period should come and
this became
necessary, would not this course be much better than
he tearing up of the present District lines
and the in-

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Diselusion of Southern Oklahoma in the Kansas City
additional
trict, where admittedly there is no need for
territory?
t's
What we have just said above, in responden
opinion, completely disposes of what has been said by
Dallas
petitioners under subdivisions headed: "Heavy
,"
Re-discounts," "Transfer Would Help Both Districts
pages
and "Comparative Loaning Resources," found on
6, 7 and 8 of the petition.
enOn page 8 of the petition is found subdivision
titled: "How Proposed Change Would Benefit."
this
Petitioners have already attempted to show to
care
Board that the Dallas Bank lacks the resources to
for its member banks in Southern Oklahoma, and Yet
they have the temerity to propose to further reduce the
the
resources of the Dallas Bank, and, by so doing,
both
claim is put forward that this action would help
banks.
If the Dallas Bank, with the inclusion of the 166 memsufficient
ber banks in Southern Oklahoma, does not have
s
petitioner
resources to meet the dire conditions which
profess to see in the future, then, in respondent's opinion,
it is a strange course of reasoning to say that, if you
weaken this already claimed weak bank by taking from
,
it almost one-fourth of its means of available resources
weak
you will, in that manner, help the already claimed

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Federal Reserve Bank of St. Louis

bank.
Respondent does not, for an instant, concede that
the Dallas Bank will not have resources to care for all
of its member banks in Southern Oklahoma and elsewhere, but simply points out the fallacy of the reasoning

47
Of petitioners under the heading: "How Proposed
Change Would Benefit."
The proposition is here laid down that, under the
testimony taken by the Organization Committee, the
Dallas Bank, with the inclusion of the Southern Oklahoma banks, will have adequate resources to care for
the legitimate needs and necessities of each of its
member banks. It has just been shown that this Bank
could have cared for all of the needs of its member
banks for the year 1913, which was one of the heaviest
bo
rrowing years in the history of the Southwest.
If the petition is denied and the Bank of Dallas is
Permitted to work out its problems in the manner prescribed by the Federal Reserve Act, in respondent's
°Pinion, time will show that not only have the petitioners
been in error as to their-claimed foresight of calamity,
but that the Dallas Bank will become one of the strongest in
created by this Act.
The next subdivision of the petition is headed: "Protests of Banks Practically Unanimous."
Under this subdivision, the contention is made that
banks in Southern Oklahoma were practically unanila°118 in protesting against the present District lines. It
is there shown that W. B. Harrison, Secretary of the
b°1ilahoma Bankers' Association, and a resident of Okla°Ina City, sent out a letter to the banks in Oklahoma,
.a*lug them to sign protest slips and return to him. It
.18 Claimed that 309 banks signed protest slips, indicatlng huesteir displeasure at the establishment of the present
If 309 banks in Southern Oklahoma signed such proeat slips, then there was either some duplication or

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48
error has been made in the count. There are only 166
member banks in Southern Oklahoma. Petitioners themselves, for reasons which they found sufficient to themselves, excluded the banks in five counties, leaving
only 136 member banks in the territory which petitioners ask to be transferred. Out of this number, 32
admittedly, according to the petition, never filed any
protest. Of the remaining 104, twenty-two have since
that time indicated either a preference to remain in the
Dallas District, or a desire to see no change made at
this time.
Thus, it will be seen that, upon careful scrutiny,
this contention cannot stand.
The next two subdivisions found in petitioners'
brief, are headed: "Protest of Millers' Organization"
and "Transfer Would Not Injure Dallas Bank."
What has already been said, in respondent's opinion,
completely disposes of the contentions made under these
two headings.
The next and last subdivision in petitioners' brief,
is headed: "Oklahoma Asks Only Fair Play."
Under this heading it is said:
"It is the belief of the bankers of Oklahoma,
that the present division of the State will operate
to hamper the upbuilding of the financial interests
within the State, through the diversion from Okla• homa financial centers of bank business to which
they are legitimately entitled, by reason of the
fact that many bankers will feel compelled to open
accounts in Dallas, other than with the Federal
Reserve Bank."
It is here suggested that when the Committee filing

49
this petition prepared the petition, it saw fit, for reasons of its own, to divide the State and to leave five counties of Oklahoma in the Eleventh District. If the division which the Organization Committee made of the
State of Oklahoma when it established the present lines
was hurtful to the State of Oklahoma, why does it not
follow that, by the same course of reasoning, the divisions which the Committee filing this petition makes of the
State of Oklahoma would be equally as hurtful?
The above quotation shows that probably some financial center feels that its territory has been encroached
Upon by reason of the establishment of the present District lines. It may be possible that there is more under
the surface than the above statement would show.
In a letter from the First National Bank of Colbert, Oklahoma, to the Federal Reserve Board, dated
June 15, 1914, the following is found:
"I understand that bankers of Oklahoma City
are making an effort to transfer us to Kansas City.
I wish to protest against any change being made,
as I feel that it is to our interest to remain as we
are" (See Exhibit F-11).
Reference is here made to a letter from the First
National Bank of Frederick, addressed to the Federal
Reserve Board, under date of January 8, 1915, found
in the Appendix, designated Exhibit C-4, from which the
following is quoted:
"It is my opinion that this movement was instigated by Oklahoma City bankers, and is being
Pushed on account of Oklahoma City parties, and
not for the welfare of the majority of the bankers
in the District. We are highly pleased with the

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Federal Reserve Bank of St. Louis

50
selection of Dallas as the reserve center of this District, and hope that no change will be made in the
present District lines."
Reference is further made to a letter written by the
First National Bank of Kiowa, addressed to the Federal Reserve Board, dated August 14, 1914, found in the
Appendix, and designated as Exhibit C-7, reading as follows:
"Referring to the efforts of Oklahoma City to_
change that part of Oklahoma that is in Federal
Reserve District No. 11 from the Dallas to the Kansas City District, we are pleased with the District
as made, and feel that the business of Southern Oklahoma can be best handled through the Dallas District, and desire to protest against this change being
made."
Reference is further made to a letter from the Tishomingo National Bank, directed to the Federal Reserve
Board, dated June 15, 1914, found in the Appendix, and
designated C-13, from which letter we quote as follows:
"I notice from the press that there will be a committee of bankers from Oklahoma to appear before
you in an effort to get all of the State of Oklahoma
placed in the Kansas City Federal Reserve District.
This committee will doubtless represent that 95%
of the banks of Southern Oklahoma of the Dallas
Reserve District are protesting against being left in
the Dallas District, and probably . there are a majority of banks South of the Canadian River on
record as protesting against the division, but I
wish to submit that the majority of these protests
have been made as a direct result of a persistent
campaign waged by Oklahoma City bankers. These
Oklahoma City bankers have emphasized the fact

51
that our State has been divided and put into two
different Districts, while, under the present condition,
our State is divided into a dozen or more different
Districts. Some of us borrow our money from and
keep our reserves with New York, while others are
with St. Louis, Chicago, Kansas City, Fort Smith,
Little Rock or various other centers. * * * The
Oklahoma City banks sent out the protests all ready
to be signed up by the different banks, and urged
that every bank join in the protest."
Quotation is now made from a letter from the Durant National Bank, directed to the Federal Reserve
Board, dated June 13, 1914, the letter being found in
the Appendix, designated Exhibit F-12:
"We believe that a large part of the sentiment
manifested by some of the banks in Southern Oklahoma in desiring to be transferred to the Kansas
City District is due, in a great measure, to the agitation brought on by Oklahoma City. They are in the
Kansas City District themselves, and, believing that
benefit would accrue to their own city by having
Southern Oklahoma transferred to Kansas City,
have conducted a vigorous campaign to bring about
that result."
We quote further from a letter written by W. T.
Clark, President of the First National Bank of Apache,
dated August 31, 1914, to Oscar Wells, Houston, Texas,
the letter being found in the Appendix, and designated

as follows:
"Naturally we are in close touch with Oklahoma
City bankers, and they are very desirous to get the
lines changed. I have not heard lately of any action
being taken in the matter. In our dealings with a
regional or reserve bank, I do not see that it makes
very much difference whether the bank is located

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52
in Dallas or Kansas City; however, as stated above,
our business relations with Texas points have been
very limited."
On page 2 of the petition is a statement to the effect
that the parties filing the petition had never seen representatives of Dallas banks at the Oklahoma Bankers'
Convention until the last one in May, 1914, just after
the announcement was made of the present District lines.
The committee filing the petition have seen fit to
testify to this fact, and we, therefore, presume that it
will be legitimate if we do a little testifying also with
reference to the presence of Oklahoma City bankers
at Dallas; and, as a matter of information, and as throwing light on the immediate question under discussion, it is
here stated that, upon the occasion of the meeting of
the representatives of all of the banks in the Eleventh
District at Dallas, on May 30, 1914, for the purpose of
nominating candidates for the several directorships in
the Eleventh District, a delegation of Oklahoma City
bankers was in attendance, and was present at a caucus
held by Southern Oklahoma bankers the day previous
to the general convention. These gentlemen from Oklahoma City had prepared and brought with them a resolution which they asked the Oklahoma bankers to adopt,
to the effect that it was the sense of the caucus that
Southern Oklahoma should be transferred to the Kansas City District. Great pressure was brought to bear in
their efforts to get this resolution adopted, but the caucus
of Southern Oklahoma bankers voted down the resolution.

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It is, therefore, apparent from the statement 811(1

53
letter quotations above, that Oklahoma City has more
than a passing interest in this contest. If it has an interest in the contest, of course, the Board hearing the contest is entitled to know that Oklahoma City has manifested some concern over the change of lines, and if
the contest was instigated through the efforts of Oklahoma City bankers, and was not a voluntary move upon
the part of Southern Oklahoma banks, this fact will, of
course, be duly weighed and considered by the Board.
It is more than evident that the bankers of Oklahoma
City are not neutral onlookers in this contest, but that
they have, from the beginning, violated the laws of
neutrality, and at times have taken an open and vigorous position for a change in the present District lines.
That fact being established, it, of course, becomes pertinent to find a reason for this violation of neutrality upon
the part of Oklahoma City bankers.
This activity upon the part of the Oklahoma City
bankers may have been brought about by reason of a
Well defined idea that these bankers may entertain that
Oklahoma City would be an excellent place for the designation of a branch bank of the Kansas City Bank in
the event the Oklahoma City bankers should be successful in bringing about a change of the present District
lines, as prayed for in the petition. Respondent does
not imagine that it would be hard to convince Oklahoma
City bankers that their city would be an excellent point
for the designation of a branch bank. Indeed, that
ambition on the part of Oklahoma City is a worthy and
commendable one, but should not, in our opinion, outWeigh the facts hereinabove presented.
It has already been abundantly shown that the grain

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Federal Reserve Bank of St. Louis

54
products of Southern Oklahoma pass into Texas and
Louisiana and that the surplus not consumed therein
passes out through the Gulf ports in these States, and
that the cotton from Southern Oklahoma all passes
through Texas and out through the Gulf ports of Texas
or Louisiana.
The wisdom of the Organization Committee, therefore,
becomes more manifest when it is considered that the
financing of the cotton crop during the progress of production and while being marketed, is a problem and a
burden to the banker, not understood or appreciated
by those living in sections outside of the cotton district.
Generally speaking, the business of a cotton community
ebbs and flows once in a year, necessitating periods of
expansion which might not appeal favorably to persons
not conversant with conditions which produce them.
It is therefore apparent that the Federal Reserve
Bank of Dallas, managed as it is and as it necessarily
will continue to be, by a Board of Directors who have
an intimate knowledge of the cotton industry, can better
serve the banks of Southern Oklahoma than the Kansas
City Reserve Bank, which is operated by directors and
officers who, though thoroughly qualified in a general
way and properly disposed toward their member banks,
cannot, of course, understand the needs of a bank in a
cotton growing region.
If weight and credit is given to the argument of the
petitioners that, because the Southern Oklahoma banks
have, in a large masure, done business with banks in
Kansas City, therefore, Southern Oklahoma should be
transferred to the Kansas City District, then, by the
same course of reasoning, Texas and Louisiana should

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Federal Reserve Bank of St. Louis

55
have been attached to the New York District, because
the financing of the Texas and Louisiana banks heretofore has been largely through New York. The petitioning committee's argument continued to its logical
conclusion, would necessarily lead to the result that there
Should be only one Federal Reserve Bank, and that a
central institution located in New York City.
The Federal Reserve Act, in the opinion of the majority of thinking men, is the greatest piece of constructive legislation placed upon the statute books within
a period of fifty years. If properly worked out, panics
such as this country has suffered in the past will disappear as a mist before the rising sun. The Act was
intended as a benefit and a stay for the business of
the United States. The success of the Act now depends
Upon the patriotic co-operation of the bankers throughout
the country. If the bankers of the United States will
hold up the hands of the Federal Reserve Board and the
officers and directors of the Federal Reserve Banks, the
success of this legislation is already assured and the
blessings and benefits flowing therefrom will be widespread and substantial. If, however, the time of the
Pederal Reserve Board is to be taken up by contests
between jealous communities, the success of this legislation will be jeopardized and the benefits arising therefrom will be materially diminished.
Respondent, therefore, submits this matter to the
careful consideration of the Board, upon the record made
by the Organization Committee, firmly believing that
the action of the Organization Committee in establishing the present lines was correct and proper, and will
result beneficially to both Districts.

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Federal Reserve Bank of St. Louis

56
The original letters referred to in this brief are being filed with the Secretary of the Federal Reserve Board
for the use and benefit of the Board.
Respectfully submitted,
CHARLES C. HUFF,
Counsel for The Federal Reserve
Bank of Dallas, Texas.

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Federal Reserve Bank of St. Louis

APPENDIX

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Federal Reserve Bank of St. Louis

EXHIBIT

THE FIRST NATIONAL BANK OF ADA.
Ada, Okla., Sept. 1, 1914.

(1)
MR. OSCAR WELLS,
First National Bank,
Houston, Texas.
MY dear Mr. Wells:
I am in receipt of your letter of August 29th, relative
to a movement on the part of certain Oklahoma bankers to
have the Southern portion of Oklahoma removed from Dallas
Reserve District and placed in the Kansas City District.
I think tkat I got into disfavor with the Oklahoma bankers immediately after the designation of this District, by
reason of my publishing my opinion of the District, which
was: "That it was very pleasing to me as it was arranged."
Afterward, considerable pressure was brought to bear on Mr.
Norris and myself, in which an appeal was made to our patriotISM to the State of Oklahoma, and after it had gotten down
to the point where we were told that every other bank in
Oklahoma besides the First National of Ada and one other,
had signed the request that all of Oklahoma be placed in the
Kansas City District, I was prevailed upon to sign such a
request.
You may feel assured that I will do nothing whatever
to have the boundaries of this District changed.
I am enclosing you with this a circular letter that I have
just received from W. B. Harrison, Secretary of the Oklahoma Bankers Association, wherein you will note that Comptroller Williams has decided, after a full consideration of the
'flatter, that no currency association will be formed in Oklahoma, and has advised all banks to join the currency association in their District. It rather strikes me that this is al/host equal to a decision against changing the Reserve District
as already established.
t I appreciate hearing from you, and when I can be of
lirther assistance to you in this country, it will be a pleasure
to me.
With kinde3t regards, I am,
Yours truly,
Enc.
AGARIIG

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Federal Reserve Bank of St. Louis

A. G. ADAMS
President.

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Federal Reserve Bank of St. Louis

60
THE OKLAHOMA BANKERS ASSOCIATION.
Office of the Secretary.
Oklahoma City, Okla., Aug. 31, 1914.
(1-X)
TO 0. B. A. MEMBERS:
After thoroughly discussing the matter, the Executive Committee has decided there is little the Association as a bodY
can do to help out the cotton situation. It is a problem for
each individual banker to work out. No one knows yet what
the price of cotton will be when the Oklahoma product comes
on the market; it may be lower or higher than the price in
Texas, which now ranges from 7% to 9 cents. Most of the
propositions put forward for holding the cotton crop INDEFINITELY are believed to be impractical, but it is important
to market the crop slowly, and where the farmer is in a
position to hold some of the crop over, he should be encouraged to do so. Oklahoma has a very liberal warehouse law,
and cotton warehouses, bonded, should be arranged for in
every important cotton shipping town. This will help the
farmer and the banker alike. Warehouses will make it Pos"
sible for the banker to obtain accommodations he could not
otherwise secure from his correspondents, and especially
from the regional reserve banks.
Bankers should seize the present opportunity to induce the
cotton farmer to get away from that crop into diversified farfl
and live stock.
Comptroller Williams has advised all National Banks to
join the nearest currency association, and many Oklahoma
banks are inquiring whether such an association will be
formed in Oklahoma. Full consideration of the matter has
almost
resulted in a decision in the negative. It would require
portion
the entire number of eligible banks in the Oklahoma
of the Kansas City District to obtain the necessary capital
for such an association, and it is doubtful whether the Comptroller would approve of its organization. It is already known
he does not approve of crossing District lines. Hence, banks
In the Kansas City District should join the Kansas City Association, and those in the Dallas District, the Texas Association, if they desire emergency currency. There is danger er
getting too much of this currency on the market, because it
cannot be used as reserve, but requires additional reserve
to handle it, so the emergency currency should not be Put
Into circulation unless actually needed. Remember that the
notes and collateral to be offered for re-discount must be in
tip-top shape and prepare your securities accordingly.

61
0. B. A.,
Press reports that the Executive Committee of the
or any of its officers, favors rushing the cotton crop onto
the market or oppose cotton warehouse plans, are false. They
to
favor co-operation between the bankers and the farmers
work out this big problem. We will be glad to receive suggestions from you.
Yours truly,
W. B. HARRISON,
Secretary.
CITY

NATIONAL BANK.
Altus, Okla., Dec. 24, 1914.

(2)
MR. FRANK KELL,
Wichita Falls, Texas.
Dear Mr. Kell:
a banks
Regarding proposed change of Southern Oklahom
District:
into Kansas City
in
I deem it unwise at this time to make any change,
majority
a
Should
Dallas.
with
pleased
fact, we are very well
of Southern Oklahoma bankers favor Kansas City, the change
could be effected at some future time.
time.
I trust that there will be no change made at this
Yours very truly,
J. T. WOOD,
President.
THE FIRST NATIONAL BANK.
Apache, Okla., Aug. 31, 1914.

(3)
MR. OSCAR WELLS,
Houston, Texas.
Dear Sir:
I have your letter of the 29th instant, relative to the mat!.er of making any changes in the present boundary lines of the
Dallas Regional Bank.
I would be very glad indeed to favor you personally in
any way that I could, but we feel in Oklahoma that our State
Should not be divided, and since we have, most of us, dealt
for
Principally with Kansas City, we naturally look that way
Our banking connections. I like Texas and her people, but
I would have to get acquainted down there. Naturally, we are
in close touch with Oklahoma City bankers, and they are
very anxious to get the lines changed. I have not heard
lately of any action being taken in the matter.

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62
In our dealings with a Regional or Reserve Bank, I do
not see that it can make very much difference whether the
Bank is located in Dallas or Kansas City; however, as stated
above, our business relations with Texas points have been
very limited.
Our business outlook would be very good only from the
fact that the cotton market is unsettled.
Very truly,
W. T. CLARK,
President.
THE FIRST NATIONAL BANK.
Ardmore, Okla., Dec. 24. 1914.

(4)
TO THE FEDERAL RESERVE BOARD,
District No. Eleven,
Dallas, Texas.
Dear Sirs:
There has something been said about, and some protest been
made against, the Southern part of Oklahoma being placed
in Federal District No. Eleven, and, in connection with this
matter, we desire to say, so far as we are concerned, we are
absolutely satisfied as it is now. It is true that when the Districts were first designated by the Department at Washington
we signed a printed request that was circulated for that purpose, to have Southern Oklahoma changed, and placed in the
Kansas City District. But, so far as we now can see, we
think we would be better served, and have so far been better
served, by the Dallas District, than we could have been bY
the Kansas City District.
Very truly,
C. L. ANDERSON
Cashier.
STATE NATIONAL BANK.
Ardmore, Okla., Sept. 4, 191 1.

(5)
MR. OSCAR WELLS,
Houston, Texas.
Dear Mr. Wells:
In reply to your favor of the 28th ult.,
that there is still some work being done to
transferred to Kansas City. Of course, the
boys in the Southern part of the State were

we understand
try to have us
majority of the
against dividing

68
Oklahoma, and preferred to have it all in the Kansas City District. We, however, have decided to remain neutral, as we
have very friendly relations both with Kansas City and Texas.
In our case, most of our officers are Texans and have a large
acquaintance in that State, and, naturally, we feel that we
Will be well taken care of.
With best personal wishes, I remain,
Yours very truly,
HAROLD WALLACE,
Cashier.

THE CHICKASHA NATIONAL BANK.
Chickasha, Okla., Aug. 31, 1914.

(6)
MR. OSCAR WELLS,
Vice-Pres. First Nat. Bank,
Houston, Texas.
Dear Mr. Wells:
I am just in receipt of yours of 29th, relative to the
to connect
Southern portion of Oklahoma making an effort
itself with the Federal Reserve Bank at Kansas City, instead
Of the Dallas District, and in reply I will say that I attended
s a Meeting of the State Executive Committee of the Oklahoma
Saturday,
Bankers Association, of which I am a member, on
before the
August 29th, and this matter came up for discussion
over now and
meeting. I suggested that we pass the matter
it
make no effort at all to do anything along this line, as
had already been ordered and decreed that we were to be
hopes
Placed in the Dallas District, and that I for one saw no
to go
us
for
best
far
was
it
that
of making any changes and
On and make the best of the situation and later on, if we
found that it was not convenient for us to handle our business
the
through Dallas, that we could then take the matter up with
some
at
change
the
ederal Reserve Board and ask for
future date, but that at the present time I saw no hopes for
any change being made in the District. I am glad to say that
illy views were considered in the matter, and it was passed
over without any action being taken. In justice to Mr.
this
8ing5, of Ardmore, I will say that he agreed with me on
proPosition, and we two were the main ones who advocated no
anything
change being made at this time, and I don't think
more will come of the proposition. Being a Texan myself,
I feel very much at home with a great many of the Texas

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Federal Reserve Bank of St. Louis

64
bankers, but there is a strong feeling here for a change.
With kind personal regards and best wishes, I am,
Yours very truly,
T. H. DWYER,
President.

THE FIRST NATIONAL BANK.
Chickasha, Okla., Aug. 31, 1914.

(7)
MR. OSCAR WELLS,
Care First National Bank,
Houston, Texas.
Dear Mr. Wells:
I have your favor of the 29th, advising that owing to the
division made in locating Federal Reserve Banks at Dallas
and Kansas City, you have been very much interested in the
affairs of the Southern portion of the State, and in reply beg
would
to state that we naturally thought all the time that we
bank
a
be put in a District whereby we would patronize
located at Kansas City or St. Louis, and we preferred Kansas
City, our mail tacilities being very good, and of course having
after
done a large per cent of our business at Kansas City, but
learning we hal been placed in the 11th District, with a Bank
disto be located at Dallas, we did not allow ourselves to be
to
importance
couraged, as we felt this matter was of much
the whole country, and had been well looked into by the gentlemen making such division, and if it developed that it was
be
a disadvantage to the State to be divided, it could later
worked out.
We have contented ourselves on being able to transact
Bank
our business satisfactorily with the Federal Reserve
business
our
to
able
be
maintain
still
should
we
at Dallas, and
Points
relations with Kansas City, St. Louis and other Eastern
inail
the
to
as
make
We have no special objection to
facilities at Dallas, and if our securities which we have 1.11
Oklahoma can be recognized at the Federal Reserve Bank
busi
..
plea
no reason why our
we know of sant
at Dallas by the Board,
ness should not be
the
I appreciate very much the interest you are taking in
affairs, and hope to see you often on the Board.
Yours very truly,
BEN F. JOHNSON,
Vice-Pree•
BFJ-

65
THE OKLAHOMA NATIONAL BANK.
Chickasha, Okla., Aug. 31, 1914.

(8)
MR. OSCAR WELLS,
First National Bank,
Houston, Texas.
Dear Mr. Wells:
Replying to yours of August 29th, while to begin with, it
was the opinion of our bank, considering the trend of business
in this section, that it would be best for us to be in the
Regional Bank District with Kansas City or St Louis, however,
Since the boundaries were fixed different and not knowing
just what would be best for us, we have never joined in any
Move looking to a change, and don't think we shall until after
We have tried out the proposition and realize what is best
for us.
Some of our Oklahoma banker friends have criticised us
severely for the stand we have taken. Anyway, their views
have not changed our plans.
Thanking you for your letter, and hoping it may be
proven it is best for us to be coupled up with the Dallas
Reserve Bank and that all of us may see lots of benefits under
the new scheme, I am, with personal regards,
Yours very truly,
R. K. WOOTTEN,
President.
R.KW-BH

THE OKLAHOMA STATE NATIONAL BANK.
Clinton, Okla., Jan. 16, 1915.

(9)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
In the matter of change in the boundary line between 10th
and 11th Federal Reserve Districts, the hearing of which is
130011 to come up before your Board, it might be wise to postpone Your decision until the different Regional Banks get into
full working order in all its functions, and then it could be
readily ascertained to which District the questioned territory
b
elongs.
If the discount rates are kept somewhere near equal, it
'natters but little to which District any of us belong, until

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66
the functions of the Clearing House are put into operation, and
then some re-adjusting will most likely be in order.
Yours truly,
C. W. BREWER,
President.

THE FIRST NATIONAL BANK.
Comanche, Okla., Dec. 26, 1914.

(10)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
Some time ago we expressed our preference to be in
the Kansas City District, but since they have begun operations
and we have thcught the matter over, will say that it would be
agreeable to us to remain in the Dallas Federal Reserve
District.
Very truly,
R. M. RALLS,
President.

THE FIRST NATIONAL BANK.
Elk City, Okla., Dec. 24, 1914-

(11)
MR. FRANK KELL, Director,
Federal Reserve Bank,
Dallas, Texas.
Dear Mr. Kell:
In regard to making any changes of the boundary lines
be
of the Federal Reserve Banks: In my opinion it would
runbest to wait until the Federal Reserve Banks are in good
ning order.
We would prefer being in the Kansas City District, but we
Fedare willing to wait until the Board of Directors of the
es
order,
running
good
in
banks
their
have
Bank
eral Reserve
to make any changes now might cause some complications and
we would want to reserve our right of trying to get changed
as soon as the Reserve Banks got in good running order and
where it would not cause any complication.
Very truly yours,
A. L. THURMOND,
Cashier.
ALT-A H

67
AMERICAN NATIONAL BANK.
Holdenville, Okla., Aug. 31, 1914.

(12)
MR. OSCAR WELLS,
Vice President, First National Bank,
Houston, Texas.
Dear Sir:
In reply to your letter of August 29th, will say that, as
far as I am concerned now, I had just as soon be in the
Dallas District as in the Kansas City District, for the reason
that I think the Dallas District will understand this cotton
Condition better than any other. I think the Dallas District
Will fully realize what we are up against in this cotton section, and will understand how to handle the situation better
than if we were in a grain or any other territory. Therefore,
I am perfectly content to remain in the Dallas District.
Yours very truly,
L. T. SAMMONS,
President.
NATIONAL BANK OF COMMERCE.
Hollis, Okla., Jan. 5, 1915.

(13)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
Having had a conversation with Mr. Frank Kell, of Wichita
Falls, Texas, who is a member of the Board of the 11th District, regarding the contemplated change from the 11th to the
10th Federal District of the Southern part of Oklahoma, I
wish to say that it seems to me that the first thing we should
do is to lend all of our energies toward the perfection of the
Federal Bank plan.
We are in the 11th District, and as yet I have been unable
to decide as to which District it would be most to our interest
to be permanently placed in. We have a direct railroad connection with Dallas and, from the standpoint of convenience it seems
that Dallas would be our preference.
Of course, there is a possibility that the financial interest
of the State of Oklahoma might be injured should the boundary lines remain as they now are, but as it has not been tried
out, and the entire plan is an experiment, I hardly believe
that the matter could be intelligently settled at this time.
Respectfully,
C. W. GILLILAND,
President.
GWG.m

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THE STATE NATIONAL BANK OF HOLLIS.
Hollis, Okla., Jan. 15, 1915'

(14)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
In regard to the proposed change in this Reserve District,
we prefer to stay in the Dallas District, on account of the
distance and connections which the mails make. We are onlY
twelve hours from Dallas and about forty-eight hours fr°111
Kansas City.
Yours respectfully,
W. S. CROSS,
President.
THE FIRST NATIONAL BANK.
Mangum, Okla., Aug. 31, 1914'

(15)
MR. OSCAR WELLS,
Houston, Texas.
Dear Mr. Wells:
I am very glad to have your letter regarding the Innve
on part of the Oklahoma bankers to be transferred to Kansa°
City District.
Personally, we would prefer to remain as we are, in your
District. However, this is on second judgment, as we preferred
Kansas City at first, and when the remonstrance was first
made, we joined in this, but since then we will stand Pat
on Dallas.
Board,
I want to congratulate you on being selected on the
having
by
benefited
will
be
entire
that
District
the
feel
we
and
you as a Director.
With kindest personal regards,
Yours very truly,
H. MATHEWSON,
President.
THE FIRST NATIONAL BANK.
Marietta, Okla., Aug, 27, 1914*

(16)
MR. BEN 0. SMITH, President,
F. & M. National Bank,
Fort Worth, Texas.
Dear Smith:
and
I am duly 111 receipt of your favor of the 24th inst.,

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69
40te what you say about it having been brought to your
attention that there might still exist some opposition to the
Southern part of Oklahoma being included in the Eleventh
Regional Bank District, and desiring to know from me, in my
°Pinion, what this opposition, if any, will amount to or exert
With the Washington Department.
In reply will say, as far as my personal views are concerned, when I first learned that the Southern part of Oklahoma was to be included in the Dallas District, instead of
Kansas City, I thought it was a mistake and that it would
have been better if we had been placed in the Kansas City
District. However, since then, and after thinking the matter
over more carefully, I am frank to say, that while from one
standpoint it looks like it would be better for the State of
Oklahoma to all be in one District, from a financial standpoint
and the further fact of Dallas being very centrally located
as a cotton point and in a sense having a great deal more
tr
ansactions and business with banks in the cotton section
than Kansas City, it appears to me, as you say, that the
Dallas Regional Bank should be more competent and possibly
have more experience in the handling of cotton than the Kansas
• City Bank would. On this account, I am very much in favor
of the District being left alone and the Southern part of
Oklahoma remaining in the Dallas District.
* * * *
Hoping, however, that this opposition may not amount to
Pi'itch and that there will nothing come of it, and the District
1.613:lain unchanged, and further, that I have made myself
elear, as to how I stand personally, with regard to same, with
,
Mildest regards and best wishes, I remain,
Yours very truly,
F. B. CONRAD,
President.
THE FIRST NATIONAL BANK OF MARLOW.
Marlow, Okla., Aug. 29, 1914.

(17)
13EN

0. SMITH, President,
& M. National Bank,
Fort Worth, Texas.
Dear Mr. Smith:
In my opinion, there is not much opposition to being in
With Texas among the small banks, or at least nothing like
there was at first. Anyway, there is no agitation of it. Most
cif Us have come to the conclusion that it makes no difference

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70
where we are. So many much greater and more grave matters
are coming up that I doubt if anything is tried that will change
the District lines.
Today's papers say that a meeting of bankers is on in
Oklahoma City, but I had heard nothing of it, although I aroreported to be there. A few people would like to have the
change made, but they are not getting up much enthusiasm.
With the best of regards, and hoping to have more bus1.
ness some of these days for you,
Yours very truly,
T. L. WADE,
Cashier.
THE STATE NATIONAL BANK.
Marlow, Okla., Jan. 9, 1915.

(18)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
Some months ago, when we were advised that we were to be
placed in the Dallas District (No. 11), we, along with others
from this country, entered our protest, as most of our business
had been in Kansas City and St. Louis.
After further consideration of the matter, we desire to saY
that we will, for the present, withdraw our protest and will
be satisfied to remain in the Dallas District until the system
has been given a thorough trial, and until such time as we
ascertain from experience whether or not, in our judgment, it
would be better for us to be in the Kansas City District.
Respectfully,
0. R. McKINNEY,
Cashier.
THE FIRST NATIONAL BANK.
1915.
Poteau, Okla., Jan. 12,

(19)
MR. B. A. McKINNEY,
Federal Reserve Bank,
Dallas, Texas.
Dear Buck:
In these days of agitation, financial and otherwise, I am
becoming convinced that to "Let well enough alone" is 3
good axiom.
The strenuous effort to effect a change in Federal Reserve
District No. 11, adding Oklahoma to the Kansas City Dis-

71
trict, seemed to me to be a proper procedure and for the
best interest of all of we Oklahoma bankers who petitioned;
and, not to be contrary, I signed the petition for this bank,
like a majority. Since the matter will soon be heard by the
Federal Reserve Board, I have given the question of changing,
More thought than heretofore—at least more intelligent thought
—for the reason that I now know more about the Federal
Reserve Banks and their functions than heretofore, and I imagine this is true of the most of the bankers.
Take the individual case of this bank. After summing
it all up, I find our mail service to Dallas is a few hours shorter
than into Kansas City. The SERVICE of one Federal Reserve
Bank appears to be about the same as the other. So far as
I know, the discount rates are the same. Items for credit
and balances to check against seemingly are just as convenient
for us as they would be in Kansas City or St. Louis. A few
weeks' operation of the banks has changed my ideas concerning them.
I do not want to be put in the position of going back
On the petition I signed along with the other Oklahoma
bankers, but thought would drop you a line to say that
since finding out more about the modus operandi of Federal
Reserve Banks, that it makes do difference to me if the District remains like it is. In fact, I believe I prefer it now,
•
as it is.
I have felt that the strong effort being put forth to
Change the boundary lines would naturally cause you to take
a keen interest in the matter from a personal standpoint, and
wanted, in this letter, to express my "honest convictions"
that perhaps a lot of us had rushed into something that we
really didn't know whether we wanted it or not.
With the kindest of regards, I remain,
Cordially and sincerely yours,
TOM WALL,
Cashier.
THE FARMERS AND MERCHANTS NATIONAL BANK.
Roff, Okla., Aug. 25. 1914.

(20)
RESERVE BANK ORGANIZATION COMMITTEE,
ashington, D. C.
W
Sirs:
We understand that there is a move on foot to place the
entire State of Oklahoma in the Kansas City Reserve District.
If the Dallas District will be as able to take care of

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72
our needs for funds as the Kansas City District, we prefer
that the Districts be left as they are, for the reason that we
are a cotton growing section and our needs are identical with
most of the banks of the Dallas District.
We are not in favor of any move that will delay the conk
pletion of the organization of the Reserve Banks.
Yours very truly,
FARMERS & MERCHANTS NATIONAL BANK,
By J. A. GILBERT, Cashier.
1914.
Tishomingo, Okla., Dec. 19,

(21)
TO THE HONORABLE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
The undersigned banks of Johnston County, Oklahona,
hereby petition your Honorable Board to make no change in
the lines of the Federal Reserve District as established by the
Organization Committee, and we express ourselves as satisfied
with the lines as they now exist.
If in the event the lines should be disturbed in any 113afl.
ner, we ask that at least Johnston County be permitted to
remain in the Dallas District.
Respectfully yours,
THE TISHOMINGO NATIONAL BANK,
L. L. CALDWELL, Cashier.
FIRST NATIONAL BANK, Wapanucka, Okla.
R. E. WADE, President.
FIRST NATIONAL BANK, Milburn, Okla.
J. W. WALKER, Cashier.
*FARMERS NATIONAL BANK, Tishomingo, Okla.
C. B. BURROWS, President.

THE FIRST NATIONAL BANK.
'
Wapanucka, Okla., Dec. 22, 1914

(22)
MR. B. A. McKINNEY,
Durant, Okla.
Dear Sir:
Your letter bearing date of the 19th inst. received, and
'
in reply will say that we are perfectly satisfied in the pis
trict No. 11, and will be glad to sign the petition to stay in

73
the Dallas District, and be glad to do all we can for you.
I remain,
Yours very truly,
R. E. WADE,
President.

EXHIBIT B.
THE OKLAHOMA BANKERS ASSOCIATION.
Office of the Secretary.
Oklahoma City, April 7, 1914.

(1)

TO a B. A. MEMBERS IN DALLAS DISTRICT.
Gentlemen:
Without presuming in the least to dictate in the matter
of the regional reserve bank Districts, we feel that another
letter at this time will be welcomed by you, in view of the
Many urgent letters and telegrams we have received.
The writer has much information which it is impossible
to convey in a letter, but the main point is: After communicating with Senators Owen and Gore, all Oklahoma's CongressMen, and after consulting with bankers in Kansas City personally and canvassing the situation as thoroughly as time has
Permitted, we are convinced that there is a reasonable chance,
by proper activity, to get Oklahoma placed in one regional
district.
As for a branch bank, the administration forces are inclined to adopt the policy of placing branches only where
there are not overnight facilities for handling business. Under
that policy, and the Districts as now framed, every city in
Oklahoma is barred from obtaining a branch.
Our information is, that 95% of the Oklahoma banks
that have been placed in the Dallas District are very much
oDposed to this arrangement. We ask that any bank that is
Contented to remain in that District, please write us at once.
All others should fill out the enclosed form AND RETURN TO
THE WRITER (Do not mail it to Washington). This is VERY
IMPORTANT AND SHOULD HAVE YOUR IMMEDIATE AT:rENTION.
Further suggestions will follow developments.
Very truly yours,
W. B. HARRISON,
Secretary 0. B. A.

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74
THE OKLAHOMA BANKERS ASSOCIATION.
Office of the Secretary.
Oklahoma City, Okla., April 13, 1914

(2)
TO THE BANK ADDRESSED:
We have not as yet received from you one of the signed
slips like the enclosed which we mailed you a week ago and
asked to be returned immediately. This is exceedingly MI'
portant, and we cannot put too much stress on the necessity
District
of hearing from every Oklahoma bank in the Dallas
at once definitely. If you want to be in the Dallas District,
please state that plainly. If you do not, sign this slip today,
and mail to us, unless you already have one in the mail.
the
We admit that there is only a fighting chance to get
District changed, but we have good reason to believe it can be
done. Today we have received from Washington a signed
statement by a high government official, whose support means
as much to us as that of any other man, saying he thinks
this change can be made if the banks will all sign the protest.
It is very important to not only send this in, but to wire
your Congressman and Senators, unless you have already done
so. Let them hear from you direct in protest against the lines
as at present formed, if you feel that way about it. We have
received 220 replies to date, of which 215 have been pre.
test.
Remember we are working day and night on this propn'
until
sition in your interest and intend to keep up that work
we get a decision. So please do your part by forwarding the
slip to us by next mail.
Yours truly,
W. B. HARRISON,
Secretary 0. B. A.

EXHIBIT

THE FIRST NATIONAL BANK.
Altus, Okla., Dec. 24, 1914.

MR.

(1)

FRANK KELL,
Director of the Federal
Reserve Bank, 11th District,
Dallas, Texas.
Dear Sir:
In my opinion it would be unwise to make any change
of the line of Southern Oklahoma from this District, especiallY

75
Just now. Trust your Board will consider the matter carefully
and decide not to make any change.
Yours very truly,
J. A. HENRY,
President.
THE FIRST NATIONAL BANK.
Broken Bow, Okla., Aug. 14, 1914.

(2)
HON. B. A. McKINNEY,
Durant, Okla.
Dear Sir:
We desire to congratulate you upon your election as a
Director of the Federal Reserve Bank of this District, and to
congratulate the District upon its wise selection, which is
entirely in accord with our own personal wishes.
We are now ready to give our heartiest support towards
retaining the Southern part of Oklahoma in the Dallas District, as it is now divided. We will oppose any plans which
May be presented to include us in the Kansas City District,
and if there is any way in which we may be of assistance in
,this matter, kindly let us know.
We are satisfied with our Directors, and with the District as it stands.
Yours very truly,
F. L. MALLORY,
Cashier.
(Seal)
THE FIRST NATIONAL BANK.
Coalgate, Okla., 8-24-14.

(3)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
We have been informed recently that there is a moveMent on foot to transfer the banks in Southern Oklahoma now
hl the Eleventh District, headquarters at Dallas, Texas.
Speaking for ourselves, as well as for many other bankers
lil this section of the State, we much prefer being in the
Dallas District than that of Kansas City, and would regret
Very much to be transferred.
Hoping that you may see matters as we do in regard
to this matter, we remain,
Very respectfully,
R. P. CARSON,
Vice-Pres.
RPG-mKH

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76
THE FIRST NATIONAL BANK.
Frederick, Okla., Jan. 8, 1915.

(4)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
It appears that an effort is being made by certain Oklahoma
bankers to change the boundaries of this District, and that
they have presented a petition to your Board, asking that
all of Oklahoma except a few Southern Counties be trans'
ferred to the Kansas City District.
It is my opinion that this movement was instigated bY
Oklahoma City bankers, and is being pushed on account of lb'
terests of Oklahoma City parties, and not for the welfare of a
majority of bankers in the District.
We are highly pleased with the selection of Dallas as the
reserve center of this District, and hope that no change will
be made in the present District lines.
Yours very truly,
J. B. BEARD, Jr.
Cashier.
THE NATIONAL BANK OF COMMERCE.
Frederick, Okla., Sept. 1, 1914.

(5)
MR. OSCAR WELLS,
V. P. First National Bank,
Houston, Texas.
Dear Mr. Wells:
Your letter of the 29th ult. is just received, and I wish
to say, in reply, that I have been one of the few in Southern
Oklahoma who have been entirely content with the arrange"
ment of the District.
It appears to me that the arrangement was perfected after
a comprehensive and a thorough examination into the clailns
of all parties concerned, and by a committee which had a
much better opportunity to weigh matters with justice.
I feel altogether inclined to remain in the Dallas Ns'
trict, and in fact am glad that we are placed there. I ara
glad you wrote me about the matter, and with kind personal regards, I am,
Yours truly,
C. W. HOWARD,
pres.
CWH-M M C

77
THE FIRST NATIONAL BANK.
Grandfield, Okla. Apr. 4, 1914.

(6)
CITY NATIONAL BANK,
Dallas, Texas.
Gentlemen:
the
We wish to congratulate you and your city upon
Regional Reserve
securing of the location for one of the
Banks.
with
And we are indeed glad to be located in a District
the central city so close to our doors.
with
We thank you for the services tendered in connection
the
when
and
Bank,
handling business through the Reserve
we
Dallas,
in
account
an
opening
for
oPPortune time arrives
Shall remember your good bank.
Yours respectfully,
0. E. MAPEL,
Cashier.
THE FIRST NATIONAL BANK.
Kiowa, Okla., Aug. 14, 1914.

(7)
PEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
change that
Referring to the effort of Oklahoma City to
Eleven,
District
Reserve
Federal
Dart of Oklahoma that is in
pleased
are
we
District,
City
Kansas
the
to
Dallas
from the
With the District as made, and feel that the business of
Dallas
Southern Oklahoma can be best handled through the
made.
bistrict, and desire to protest against this change being
Yours Respect.,
C. W. CRUM,
Cashier.
(Seal)
THE LEHIGH NATIONAL BANK.
Lehigh, Okla., June 11, 1914.

(8 and 9)
TO THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
We, the undersigned banks, of Lehigh, Oklahoma, hereby
Protest against any change being made toward re-districting
the Southern part of Oklahoma, which is located in the 11th
lleserve District.

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the
The undersigned banks are satisfied with Dallas for
whereby
reason that we have daily connections with this city,
associated
we believe that it will be to our best interest to be
with this bank.
Further, we do not believe that the Reserve Board Will
the
allow any discrimination in the interest rates, owing to
our
of
strong demand for assistance during the marketing
cotton crop, which the entire 11th District is called upon to
finance at the same time.
Assuring you of any assistance or information that we
have, at any time called upon, we are,
Very truly yours,
THE LEHIGH NATIONAL BANK, Lehigh, Okla'
Cashier.
TOM MITCHAM,
THE MERCHANTS NATIONAL BANK, Lehigh, Okla.
Cashier.
OLLIE L. BEARD,

THE FIRST NATIONAL BANK.
Milburn, Okla., June 6, 1914.
(10)
TO THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
the
We feel it our duty to say a few words in behalf of
Reserve Board in locating the District line as they did through
the State of Oklahoma. Inasmuch as the Southern Part c't
the State is devoted to cotton growing, as well as the balance
of the Eleventh District.
We believe it would also be to the best interest of all
concerned should we have a Board of Directors coming fr0111
Texas, the Southern part of New Mexico, and the Western Part
of Louisiana, rather than one coming from Colorado, Wyoming'
Nebraska, and those other States that know nothing about
the problems of a bank charged with the duty of financing a
cotton crop.
It appears to us that the Federal Board has acted wleelY
in placing us in the Eleventh District, with Dallas as a reserve
center. We therefore commend them.
Yours very truly,
C. B. CARTEL
Asst. Cashier.
(Seal)

79
THE FIRST NATIONAL BANK OF ROFF.
Roff, Okla., Aug. 21, 1914.

(11)
FEDERAL RESERVE BOARD,
Washington, D. C.
Sirs:
There is a movement on foot among some of the bankers
of Oklahoma to try to have all of Oklahoma placed in the
that
Kansas City Federal Reserve District. We understand
a delegation is already on the way to Washington for that
Purpose.
We feel that there are a great many of the bankers of
Southern Oklahoma who feel as we do about the matter: We
Would much prefer that the arrangement be left just as it is.
The interests of Southern Oklahoma are identical with
those of Texas and the other cotton States. We are strictly a
cotton country, and what would serve Texas the best would also
be best for us. On the other hand, were we to be placed with
Kansas City, we would only be a very small cotton producing
community, placed with a large country, where practically
nothing is known about cotton, or the handling of it. Dallas
Is much easier to reach from this section by mail or telephone,
and we feel that practically everything is in favor of Dallas,
over Kansas City, as far as Southern Oklahoma is concerned.
both
We are sure that in considering this proposed change,
Bides of the question will be fully considered, and we feel
that you will decide to let the Districts remain as they are.
No doubt, there will be more agitation for a change than
there is against a change, as there are a great many more
banks in Oklahoma who are in the Kansas City District, than
are in the Dallas District, but we have discussed the matter
With a great many of the bankers of Southern Oklahoma, and
We believe a great majority favor remaining in the Dallas
Very respectfully,
District.
H. HUGHES,
Cashier.
THE FIRST NATIONAL BANK.
Ryan, Okla., Jan. 7, 1915.

(12)
MR. OSCAR WELLS, Governor,
Federal Reserve Bank, of Dallas.

bear Sir:
While there is being made strong efforts to re-district
Our section of Oklahoma by a few of our members, we feel

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80
that it will revert to a great inconvenience to us in the waY
of collecting items, proceeds of our products, nearly all of
which are shipped towards the Gulf ports, thereby Placing
the credits of all country banks like ours in Texas cities. It
Is always desirous to get as prompt collection or returns for
products shipped. If the clearance arrangements are solved, as
desired, we will then of necessity have to clear such items in
opposite direction to the point drawn on and delaying payment. Southern Oklahoma products are similar to those of
North Texas, cotton being our most valuable product, all of
which is shipped to Galveston port. For these reasons, we
think it to our best interest to remain as originally platted,
and trust your good officers will urge upon the Reserve Board
to leave the District remain with our section, at least, in Dls"
trict 11, for which we will greatly appreciate and think it to
our best interest that you do so.
Thanking you for whatever assistance you can lend to
this end, and with continued best wishes, beg to remain,
Yours very truly,
J. H. WHITESIDE,
Cashier.
THE TISHOMINGO NATIONAL BANK.
1914.
Tishomingo, Okla., June 15,

(13)
FEDERAL RESERVE BOARD,
Washington, D. C.
Sir:
I notice from the press that there will be a committee
from Oklahoma appear before you in an effort to get« all
of the State of Oklahoma placed in the Kansas City Federal
Reserve District.
This committee will doubtless represent that 95% °f
the banks of Southern Oklahoma of the Dallas Reserve District are protesting against being left in the Dallas pis'
trict, and doubtless there are a majority of the banks south
of the Canadian River on record as protesting against the divis"
Ion, but I wish to submit that the majority of these protests
have been made as a direct result of a persistent camPaign
waged by Oklahoma City bankers.
These Oklahoma City bankers have emphasized the fact
that our State has been divided and put in two different
Districts, while under present conditions, our State is divided
into a dozen or more different Districts. Some of us borrow'
our money from, and keep our reserves with, New York, while

81
others are with St. Louis, Chicago, Kansas City, Fort Smith,
Little Rock or various other centers.
You will find on investigation that the reasons given by
these banks protesting against Southern Oklahoma being
Placed with Dallas for wanting the District changed, will
vanish as soon as the Federal Reserve system is put in actual
operation.
The Oklahoma City banks sent out the protests all ready
to be signed up by the different banks and urged that every
bank join in the protest.
I thoroughly believe that it is unwise to make any change
in our District at this time, and that time will prove the wisdom of the Organization Committee in dividing Oklahoma along
the line of its natural line of division.
Respectfully submitted,
L. L. CALDWELL,
Cashier.

WAURIKA NATIONAL BANK.
Waurika, Okla., Sept. 1, 1914.

(14)
OSCAR WELLS,
Houston, Texas.
Dear Sir:
Replying to yours of 29th ult.:
Our judgment has been all the while to keep every interest
together as much so as possible. We think the Southern part
Of Oklahoma should be kept in the 11th District, that being
the cotton producing part of the State. Those of us who hale
of
from the South seem, and the cotton country seem, to be
that opinion; but, when you find a banker from the North, who
is not acquainted with the cotton business, as we are, and they
Want out and go to Kansas City or St. Louis. We think it
a grave mistake to transfer us to one of those Districts. We
WWI we would be lost sight of in the mixup of the commercial
and cattle interest. Of course, there is argument pro and con,

bUT

LET US STAY WHERE WE ARE.
Yours very truly,
WADE ATKINS,
President.

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Federal Reserve Bank of St. Louis

t-4-)

EXHIBIT

SAM I. HYNDS & CO.
Cotton Merchants.
Durant, Okla., Dec. 19, 1914.
MR. B. A. McKINNEY, Cashier,
Durant National Bank,
Durant, Okla.
Dear Sir:
We beg to advise that all cotton produced in Oklahonla
and sold for export to foreign countries, is shipped front
Oklahoma via Galveston or New Orleans, and in our opinion
fully seventy-five per cent of Oklahoma cotton sold to Now
England or Canadian mills, is also shipped via Galveston or
New Orleans, and practically all cotton produced south of the
Canadian River or Rock Island Railroad, is shipped via Gal'
veston, thence by water to New England or Canadian Points,
as the combination of rail and water rates via the Gulf is less
than the all rail rates from Southern Oklahoma.
We also beg to point out that farmers and merchants
who ship cotton on consignment, forward same to Houston,
Galveston or New Orleans; in other words, almost the entire
Oklahoma cotton crop is shipped via the Gulf.
Yours very truly,
SIH-M
SAM I. HYNDS & CO'

EXHIBIT

KEMP & KELL.
Wichita Falls, Tex., Dec. 21, 1914.
MR. B. A. McKINNEY,
Durant, Okla.
My dear Mr. McKinney:
I have your favor of 19th inst. The movement of the
wheat crop from that part of Oklahoma included in the 11th
Regional District, is nearly exclusively to the south, either
through Galveston and New Orleans for export or to Texas
for local consumption. In the territory above named, there ls
probably a larger per cent of the grain moved to Texas for
local consumption by reason of the fact that the adjustment
of rates from this territory is more favorable to a Texas destination on a domestic basis than to any other point for consumption, either for domestic or export use.
Most of the wheat grown in this territory above outlined is
grown in the Southwestern part of the State of Oklahoma?
where the commercial affiliation is largely with Texas con-

83
nections, and I might say, almost exclusively with Texas
connections, so far as the grain business is concerned.
The surplus oats grown in the State of Oklahoma embraced
in the 11th District, is very largely consumed in the Southeast, either in Arkansas and Louisiana, or beyond the river,
through the Memphis gateway. Some of this comes to Texas,
and is consumed in a local way, when the Texas crop is short;
but most of the crop in the territory above named goes to the
Southeast.
The surplus corn of this part of Oklahoma is nearly all
Moved to Texas or to Galveston and New Orleans for export. Seldom does the surplus corn of that section move in
any other direction. Now and then you will find seasons when,
for a short while, it will move through the Memphis gateway.
This lasting only until such time as the Kansas corn may cornMence to move freely.
I feel quite sure that so far as the surplus grain grown
In the territory above named is concerned, that 80 or 90 per
cent of it moves to the South and Southeast, either for local
consumption in that territory, or for export through Galveston and New Orleans.
I do not think that the opening of the Panama Canal will
Increase or in any wise affect the movement of grain from
this territory for export, as the Pacific coast is well supplied
With grain grown west of the mountains. Now and then we
May have a shipment of oats to go to the Pacific coast, during
Years when the crop of this cereal is short in that country.
Later, we may be able to increase our volume of flour moving
out through the Gulf ports for export by extending our trade
to the west coast of South America, and probably the Phil11131:line Islands and Japan. This, however, is quite remote
and in a measure quite doubtful.
There is no doubt that the imports through Galveston and
New Orleans, induced by the opening of the Panama Canal,
Will largely increase the volume of tonnage destined to Southern
Oklahoma, as the rate from the Pacific coast, through the
canal to the entry ports of New Orleans and Galveston, plus
the rail rate from New Orleans and Galveston to final destination will be lower than the all rail rate across the continent. Indeed, the canned goods shipments have already commenced to
Move in this direction.
I shall be pleased to have your further inquiries at any
time that you think I can be of service to you.
With kindest regards, I am,
Yours truly,
FRANK KELL.
PKG.

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84
EXHIBIT F.
THE FIRST NATIONAL BANK.
Achille, Okla., June 12, 1914.

(1)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
Inasmuch as the banks in the Northern part of Oklahoma are making a strong fight to have all of the State of
Oklahoma placed in Reserve District Ten, I wish to state how
the Directors of this Bank feel about the situation.
We realize that the Southern part of Oklahoma is a cotton growing country and that we have practically the same
crops and conditions that the people of Texas have to contend with.
The business trend of this part of Oklahoma is towards
faciliDallas, and we feel that we ought to have our banking
is
business
ties in the same part of the country that our other
centered.
We are of the opinion that the Directors of the Federal
Reserve Bank that is to be located at Dallas, in Reserve District Eleven, will better understand the conditions that we
have to contend with and therefore will be in a better post
the
tion to take care of the needs of the banks located in
Southern part of Oklahoma.
We want to file a protest against any change that maY
would
be made in the lines of the Reserve Districts that
place this part of the State in Reserve District Ten.
We feel that we properly belong to District Eleven, and
we hope that no change will be made.
Respectfully,
W. G. COTNER,
Cashier.
(Seal)
THE FARMERS AND MERCHANTS NATIONAL BANK.
Achille, Oklahoma, June 10, 1914'

(2)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
The proposition to revise the findings of
Committee in locating Southern Oklahoma
serve District No. 11, Dallas, Texas, is very
this section of the country, and, on behalf

the Organization
Rein Federal
objectionable to
of this bank, I

85
made from the
earnestly protest against any change being
n.
original decisio
merged, and
Our interests and those of Texas are closely
practically
is
soil
the
of
er
charact
The
l.
identica
I might say,
princithe
and
er,
charact
the same, our crops are of the same
Dallas,
on
ge
exchan
us
give
crop,
cotton
our
pal markets for
thereof, and
Houston, Galveston and New Orleans in payment
e of the
becaus
price,
better
a
us
afford
at the same time
small grain
shorter haul to destination. Our corn and other
where
crops find a ready market in those sections of Texas
profitable,
the agricultural conditions make other crops more
In consequence of which, very little corn and oats are raised.
ns with
Since this town was established, our trade relatio
it is
that
feel
I
and
ed,
increas
Texas points have steadily
to our best interests that we remain a member of Federal
the majority
Reserve District No. 11. It is probably true that
City,
of Oklahoma banks maintain their reserves in Kansas
fact
the
to
due
doubt
no
is
St. Louis and New York, but this
reserve cities
before
shed
establi
were
ions
connect
that these
ent to draw Eastern
were designated in Texas, and it is conveni
our merchants from
of
es
purchas
the
of
t
paymen
exchange in
I believe that the
her,
Altoget
Eastern and Northern cities.
embracing Southin
wisely
very
acted
tee
Organization Commit
and I sincerely
,
District
e
Reserv
ern Oklahoma in the Dallas
original desigthe
from
made
be
will
change
trust that no
our interests
to
cial
prejudi
nation, because I believe it will be
to make any change.
Very truly yours,
W. E. HOLLAND,
Cashier.
(Seal)
THE ANTLERS NATIONAL BANK.
Antlers, Okla., June 17, 1914.

(3)

THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
satisfaction with
This bank desires to express its complete
Eleven, to be
Number
t
Distric
e
Reserv
Federal
being placed in
is the logical
Dallas
,
served from Dallas, Texas. In our opinion
we should
and
ma,
Oklaho
of
section
rn
Point for the Southe
Louis or
be sorry, indeed, to be attached to either the St.
ion
opposit
er
whatev
that
d
satisfie
are
We
Kansas City District.
the
in
ma
Oklaho
rn
there has been to the placing of Southe

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Federal Reserve Bank of St. Louis

86
Dallas District, is due to the agitation of persons whose personal
interests would be better served by some other arrangement.
Respectfully,
ANTLERS NATIONAL BANK,
By M. D. JORDAN, Cashier.
THE FIRST NATIONAL BANK.
Aylesworth, Okla., June 4, 1914.

(4)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
Realizing that there is an attempt being made by some
of the banks in Oklahoma, located in District No. 11, and others
in the Northern part of the State, to bring pressure to bear
as
upon you to change the boundary lines of District No. 11, so
to place the entire State of Oklahoma in District No. 10, we,
as a member bank of District No. 11, wish to say that we
heartily endorse the division of Oklahoma made by you /11
outlining this District, and wish to enter our protest against any
chango whatsoever in the territory included therein.
The natural trend of the business of the banks of Southern
us
Oklahoma is not toward Kansas City and the placing of
in District No. 10, would necessitate our forming new relatione
altogether.
fact
The State of Oklahoma should be divided, from the
idenare
that the seasons are the same, and the crops grown
tical with those of the State of Texas, while the Northern portion of Oklahoma is the same as the State of Kansas.
At the Bankers' Convention, held in Dallas for the Purpose
of recommending Directors for the Regional Bank, Southern
Oklahoma was shown due consideration, both in giving us a
.
Director, and in selecting B Class Directors who were thorough'
ly identified with Southern Oklahoma interests.
Yours for District No. 11 to stand,
Respectfully,
JAS. N. KING,
Cashier.
(Seal)
THE BENNINGTON NATIONAL BANK.
1914.
Bennington, Okla., Aug. 25,

(5)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
convinced it
After studying the situation carefully, I am

87
is

to the best interest of our institution for us to remain in the
Eleventh Reserve District. The matter of having our entire
State placed in the District with Kansas City as the center,
has been agitated, but owing to the fact that our interests
are largely dependent upon the cotton crop, I feel that
we can be served much better from Dallas than from Kansas
City, and therefore write this letter in behalf of our section
remaining as it is.
Respectfully,
L. E. BATCHELOR,
President.
FIRST NATIONAL BANK OF BENNINGTON.
Bennington, Okla., Aug. 25, 1914.

(6)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
We desire to express our satisfaction and desire to remain
in the Eleventh Reserve District, of which Dallas is the
center. We feel that, owing to the fact of our principal resources being derived from the cotton crop, our conditions
and circumstances will be better understood in Dallas than at
Kansas City, and for this reason it is our wish to remain in
this District.
Respectfully,
LEWIS T. MARTIN,
Cashier.
THE FIRST NATIONAL BANK.
Bokchito, Okla., June 4, 1914.

(7)
RoN. FEDERAL

RESERVE BOARD,
Washington, D. C.
Gentlemen:
We want to protest against any change that might be
Made in the lines of the Federal Reserve District that we are
in.
The crops grown in Southern Oklahoma are the same as
those grown in Texas and are not the same as those grown
in the Kansas City District.
the
We think the Committee acted wisely in dividing
State as they did.

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Federal Reserve Bank of St. Louis

Respectfully,
TOM KING,
Cashier.

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Federal Reserve Bank of St. Louis

88
THE FIRST NATIONAL BANK.
Boswell, Okla., June 15, 1914.

(8)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
The purpose of this letter is to protest against any change
whatever of that part of Oklahoma now in District No. 11,
to District No. 10.
At first we were of the opinion that it would have been
better if all of Oklahoma could have been in one District, even
if the Southern part would have been in District No. 10; but,
since studying the matter more closely, as to climate, soil,
and crops, and the cattle and stock business, we are more
fully convinced that we can be better served from the Dallas
District, and it is our honest opinion that the same rule will
apply to nearly all of the Southern part of Oklahoma.
As stated above, we are against any change whatever of
the North line of District No. 11, in Oklahoma, and our appeal to you is, that you make no change, as we believe that
the Organization Committee showed good judgment in dividing
the State as they did.
Yours very truly,
W. W. MORAN,
Cashier
(Seal)
THE STATE NATIONAL BANK.
Boswell, Okla., June 16, 1914.

(9)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
We desire to protest against any change in the Federal
Reserve Districts, so far as they relate to the Southern Part
of Oklahoma.
We believe that our interests will best be served by continuing in the Dallas District, because of the similarity of
the climate, soil and crops, and the further fact that the
Dallas Bank will be managed by a Board of Directors who are
acquainted with the needs of a bank in the cotton district.
We believe the Organization Committee showed good judgment in dividing the State as they did, and we trust that the
lines as established will remain as they are.
Yours very truly,
W. W. JETER,
Cashier.
(Seal)

89
THE CADDO NATIONAL BANK.
Caddo, Okla., June 17, 1914.
(10)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
There has been considerable discussion lately among the
banks of Southern Oklahoma with reference to being placed in
District No. 11 with Dallas, and I desire to say that we are
entirely satisfied with the condition as it is and certainly
hope that no change will be made placing us in some other
District. In the first place, I believe that we can get better
service from Dallas, because they are nearer to us, and are
more familiar with our wants. I believe it would be a mistake
to change this part of Oklahoma back to the Kansas City
District, as the Organization Committee would have to give
a great deal of time to the consideration of other changes.
I respectfully request that no change be made,
Yours very truly,
F. P. SEMPLE,
(Seal
Cashier.
PP-MT

THE FIRST NATIONAL BANK.
Colbert, Ind. Ter., June 15, 1914.
(11)
THE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
I understand that the bankers of Oklahoma City are making
an effort to transfer us to Kansas City. I wish to protest
against any change being made, as I feel that it is to our
Interest to remain as we are. I feel that the Dallas District
understands our needs and knows our condition better than
Kansas City, and would be in a better position to assist us.
I think the Federal Reserve Board acted wisely in placing this
Portion of Oklahoma in the Dallas District.

(Seal)

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Federal Reserve Bank of St. Louis

Yours very truly,
W. H. McCARLEY,
President.

90
THE DURANT NATIONAL BANK.
Durant, Okla., June 13, 1914.

(12)
THE HONORABLE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
The officers and directors of this bank are thoroughly satisfied with the arrangement of the Federal Reserve Districts, and
we protest against the Southern part of Oklahoma being transferred to the Kansas City District or any other District. We
believe that the Organization Committee used good judgment
in placing this part of our State in with Texas, because many
of our citizens are from that State, we have similar soil and
seasons, and similar crops. We know them and they know us.
We believe that a large part of the sentiment manifested
by some of the banks in Southern Oklahoma in desiring to
be transferred to the Kansas City District is due in a great
measure to the agitation brought on by Oklahoma City. They
are in the Kansas City District themselves and believing that
benefit would accrue to their own city by having Southern
Oklahoma transferred to Kansas City have conducted a vigorous
campaign to bring about that result. They lined up a great
many banks in this part of the State before those banks had
stopped to consider what was for their best interest. We think
the enterprise they have shown is worthy of commendation,
but then we feel the Board should also know to what extent
they have been active in the effort to get Southern Oklahoma
transferred to the Tenth District.
We believe that a bank managed by a Board of Directors
coming from Colorado, Wyoming, Nebraska and the other
States of the Tenth District, would not know and care for
our needs like the Texas bank would.
Yours very truly,
(Seal)
JAS. R. McKINNEY,
JRM-MES
Vice-President.
THE STATE NATIONAL BANK.
Durant, Okla., June 13, 1914.

(13)
HONORABLE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
This bank desires to express its satisfaction with the
Federal Reserve Districts as established by the Organization
Committee. We believe that our interests will best be served

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Federal Reserve Bank of St. Louis

91
by connection with the Dallas Reserve Bank, rather than any
other District to which we might be transferred. We think
our
that the Committee showed a thorough consideration of
of
needs when they separated the cotton growing region
it
placed
and
State
the
of
section
the
other
Oklahoma from
along with Texas and the other States which have cotton as
their chief product.
We respectfully protest against any change being made
in our Reserve Bank connections.
Respectfully yours,
GREEN THOMPSON,
Vice-President.
GT-MES
THE FIRST NATIONAL BANK.
Fort Towson, Okla., 6-23-14.

(14)
FEDERAL RESERVE BOARD,
• Washington, D. C.
Gentlemen:
Some time ago we made a protest against having been
placed in the Dallas (No. 11) District, but we now want to
withdraw our objection, and state that we are perfectly satisfied with said District, as we feel that our interests are more
closely allied with the other banks in this District than they
would be with those of any other to which we could be attached.
Yours truly,
CHARLIE SWITZER,
Cashier.
THE FIRST NATIONAL BANK OF HAWORTH,
Haworth, Okla., Aug. 14, 1914.

(15)
MR. B. A. McKINNEY,
Federal Reserve Bank Director,
District No. Eleven,
Durant, Oklahoma.
Dear Sir:
mutual
Having our attention called to the fact, by our
we had
that
Oklohoma,
Hugo,
of
D.
Wilbor,
R.
Mr.
friend,
being
failed to file our protest with you, protesting against
sugas
District,
Reserve
Federal
City
Kansas
attached to the
gested by the Kansas City and Oklahoma City bankers:
unconditionally
In this connection beg to state that we are
Reserve
Federal
City
Opposed to being attached to the Kansas

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Federal Reserve Bank of St. Louis

92
District. Kansas City is foreign to us in a financial way, and
they are not acquainted with the local conditions of Southeast Oklahoma.
And we further believe that the Federal Reserve Board
acted fairly and impartially in making the division of Oklahoma as they did and putting Southeast Oklahoma in the
Dallas District, thereby making it possible for the Directors
of the Federal Reserve Bank to know the conditions of each
locality in their district.
You can use the above letter for your authority to file
our protest against any change in the Federal Reserve District No. 11, and if we can serve you further, command us.
Yours very respectfully,
A. M. HOFFMAN,
(Seal)
Cashier.
THE FIRST NATIONAL BANK.
Hugo, Okla., June 16, 1914.

(16)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
We would like to express ourselves as being satisfied in
District No. 11. We believe that the lines as they are now
drawn, in reference to that part of Oklahoma being in District
No. 11, were well defined by the Organization Committee. This
from the fact that the greater part of this section mentioned
Is a cotton growing country, and naturally should be served
by a bank which will be supported largely by this factor.
We oppose being annexed to the Kansas City District, and
are entirely satisfied in District No. 11.
Yours very truly,
R. D. WILBOR,
(Seal)
President.
FIRST NATIONAL BANK.
Idabel, Okla., June 17, 1914.

(17)
HON. ORGANIZATION COMMITTEE,
Federal Reserve Board,
Washington, D. C.
Gentlemen:
It appears that considerable effort is being put forth
by bankers of this State in the 10th District to bring about
a change whereby all of Oklahoma would be in the 10th District.

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Federal Reserve Bank of St. Louis

93
At the beginning, we were disappointed, looking at it from
a patriotic view, in having our State divided in two Districts,
but further consideration makes it plain that our interest and
that of Texas are very much the same in industry, and we
feel that our interest will be best served in the 11th District.
Respectfully,
H. C. MORRIS,
Cashier.
THE FIRST NATIONAL BANK.
Kenefick, Okla., June 6, 1914.

(18)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
We desire to state that we think the Organization Committee used good judgment in placing Southern Oklahoma
In the Eleventh Federal Reserve Bank District, as that part of
Oklahoma placed in the Dallas District is essentially a cotton
producing region.
We feel that our interests will be served better by a
Board of Directors coming from Texas, Western Louisiana,
Southern New Mexico, than one coming from Nebraska,
Kansas, Colorado, Wyoming, or any other State that knows
nothing of the great problems• involved in financing the cotton crop.
Respectfully,
BRUCE MAY,
Vice-President.

'(Seal)

THE FIRST NATIONAL BANK.
Kingston, Okla., June 6, 1914.

(19)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
in cutting
We wish to commend the action of your Board
growing
cotton
a
is
which
Oklahoma
of
off that part of the State
section and attaching it to the Eleventh District.
served by a
We feel that our interests would be better
part of
Western
Board of Directors coming from Texas, the
one
than
Mexico,
New
of
Louisiana, and the Southern part
and those other
Nebraska,
Wyoming,
Colorado,
from
coming
problems of a bank
States that know nothing about the

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Federal Reserve Bank of St. Louis

94
charged with the duty of financing a cotton crop, and we
sincerely hope that no change will be made in this District.
Yours very respectfully,
JNO. LANDRAM,
Cashier.
(Seal)
THE FIRST NATIONAL BANK.
Madill, Okla., June 6, 1914.

(20) (21) (22)
RESERVE BANK ORGANIZATION COMMITTEE,
Washington, D. C.
Gentlemen:
We, the undersigned National Banks of Madill, Oklahoma,
believe that your Committee exercised a wise judgment in
locating Southern Oklahoma in the Dallas District.
Geographically, Dallas is convenient and easily accessible
to our section; a large percentage of the population of
Southern Oklahoma is composed of Texans, which tends to a
closer acquaintance of the two peoples, and thus obviates what
might be a serious problem in the selection of suitable men to
direct the affairs of the District Reserve Bank.
The agricultural conditions and products of Southern Oklahoma and Texas are almost identical, and the business relations between the two sections are close and of long standing.
We understand there is a movement towards locating our
section in another District.
In view of the conditions stated above, we think the
change would be very unwise, and we wish to enter our unqualified protest against any change whatever.
Respectfully,
MADILL NATIONAL BANK,
By J. W. DERRICK, Cashier.
CITY NATIONAL BANK,
By W. H. LAWRENCE, President.
FIRST NATIONAL BANK,
By F. B. HERRON, Cashier.
THE FIRST NATIONAL BANK.
Soper, Oklahoma, 6-17-14.

(23)
FEDERAL RESERVE BOARD,
Washington; D. C.
Gentlemen:
The Reserve Bank Organization Committee, in establishing
the Reserve Districts, saw fit to place Southern Oklahoma, in

95
which we are fortunate enough to be located, in District No.
11, with headquarters in Dallas, Texas. In view of the complaint which has been made in regard to the action of the
Board, in dividing the State of Oklahoma between Districts
Nos. 10 and 11, the officers and directors of The First National
Bank of Soper desire to go on record as being of the opinion
that the interest of Southern Oklahoma and the interest of
this bank can be better served from Dallas than it can be from
Kansas City, and to further express themselves as being perfectly satisfied with the action of the Committee of the formation of the Bank Reserve District of the Southwest.
Yours very truly,
A. J. STEEN,
Cashier.
(Seal)
THE FIRST NATIONAL BANK
OF STERRETT.
Calera, Okla., Aug. 22, 1914.

(24)
HONORABLE FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
The officers of this bank are satisfied with the action
of the Organization Committee in placing this part of Oklahoma
in the Dallas Reserve District, and protest against any change
In the lines that would transfer us to another District.
As we are in what is essentially a cotton-growing region,
we think we are fortunate in being included in a District
business;
whose Directors so thoroughly understand the cotton
will
and especially is this true in view of the difficulty that
account
on
business
cotton
the
handling
.confront us this fall in
of the European war.
Respectfully,
J. C. KENTON,
Cashier.
.
THE FIRST NATIONAL BANK OF VALLIANT, OKLAHOMA
August 21, 1914.

(25)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
as
Relative to the opposition of the State being divided
oppoall
and
any
that
request
to
beg
Districts,
Reserve
to the
sition voiced by this bank, be ignored.

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Federal Reserve Bank of St. Louis

96
We have gone into the proposition and feel that placing
the Southern part of this State in with Texas, was an act
of wisdom, owing to the community of interest between this
section of the State and Texas.
Thanking you to act in accordance with the above covering our wishes, we are,
Yours truly,
THE FIRST NATIONAL BANK,
VALLIANT, OKLAHOMA,
By JAS. M. CECIL,
(Seal)
President.
Attest:
W. E. WATKINS,
Cashier.
WEW-LCS
THE FIRST NATIONAL BANK.
Woodville, Okla., June 10, 1914.

(26)
FEDERAL RESERVE BOARD,
Washington, D. C.
Gentlemen:
In the matter of the protest which is being made on behalf
of the State of Oklahoma by certain of the banks located
therein against the action of the Federal Reserve Bank Organization Committee, I beg to advise you that it is the desire
of this bank that the District remain as laid out and designated
and, in support of my protest against any change, beg to submit that, in my opinion, the interests of the banks located
South of the Canadian River in Oklahoma will be best served
by remaining in District No. 11, Dallas, rather than by being
attached to the 10th Reserve District, Kansas City.
The principal crop of this section of the country is cotton, and all the exchange for that commodity goes south either
to Dallas, Houston, Galveston or New Orleans, and cattle
and hogs are shipped mainly to Fort Worth, Texas, while our
corn and small grain products find a market either at home,
or are distributed through those sections of Texas which
raise little feedstuffs.
The character of the soil is practically the same as that
of Texas; the majority of our people are Texas born or descendants from Texas people, and I cannot see any advantage
that can result from any change in the decision of the Organization Committee, while there are many advantages that will
accrue to us by being so closely in touch with the Federal
Reserve Bank located at Dallas, and I sincerely trust that the

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Federal Reserve Bank of St. Louis

97
lines, as originally fixed, attaching Southern Oklahoma to
the Dallas District No. 11, will be sustained.
Very truly yours,
M. U. AYRES,
Cashier.
(Seal)

EXHIBIT

OKLAHOMA NATIONAL BANKS IN ELEVENTH DISTRICT
County
Town
Bank
*Bryan
*Farmers & Merchants Nat'l. Bank Achille
*Bryan
Achille
*First National Bank
Pontotoc
Ada
First National Bank
Pontotoc
Merchants & Planters Nat'l. Bank Ada
Jefferson
Addington
First National Bank
Grady
Alex
First National Bank
Pontotoc
Allen
First National Bank
Jackson
Altus
City National Bank
Jackson
Altus
First National Bank
Caddo
Anadarko
First National Bank
Caddo
Anadarko
National Bank of Anadarko
*Puslimatalia
Antlers
*Antlers National Bank
*Pushmatalia
Antlers
*Citizens National Bank
Caddo
Apache
First National Bank
Custer
Arapaho
Bank
National
First
Carter
Ardmore
Ardmore National Bank
Carter
Ardmore
First National Bank
Carter
Ardmore
State National Bank
Atoka
Atoka
American National Bank
*Marshall
Aylesworth
*First National Bank
*Bryan
Bennington
*Bennington National Bank
*Bryan
Bennington
*First National Bank
Carter
Berwyn
First National Bank
Jackson
Blair
First National Bank
McClain
Blanchard
First National Bank
*Bryan
Bokchito
*First National Bank
*Choctaw
Boswell
*First National Bank
*Choctaw
Boswell
*State National Bank
Tulsa
Broken Bow
First National Bank
*Bryan
Caddo
*Caddo National Bank
*Bryan
Caddo
*Security National Bank
Hughes
Calvin
Calvin National Bank
Hughes
Calvin
First National Bank
Grady
Chickasha
Chickasha National Bank
Grady
Chickasha
Citizens National Bank
Grady
Chickasha
First National Bank

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Federal Reserve Bank of St. Louis

98
Bank
Oklahoma National Bank
First National Bank
Oklahoma State Nat'l. Bank
First National Bank
*First National Bank
First National Bank
Cordell National Bank
Farmers National Bank
State National Bank
First National Bank
Peoples State National Bank
First National Bank
City National Bank
Duncan National Bank
First National Bank
*Durant National Bank
*First National Bank
*State National Bank
American National Bank
First National Bank
First National Bank
*First National Bank
Francis National Bank
First National Bank
National Bank of Commerce
First National Bank
First National Bank
Farmers National Bank
First National Bank
National Bank of Hastings
*First National Bank
First National Bank
State National Bank
City National Bank
F. & M. National Bank
First National Bank
American National Bank
Farmers National Bank
First National Bank
State National Bank
City National Bank
National Bank of Commerce
State National Bank
*First National Bank

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Federal Reserve Bank of St. Louis

Town

County

Grady
Chickasha
Custer
Clinton
Custer
Clinton
Coal
Coalgate
*Bryan
Colbert
Stephens
Comanche
Washita
Cordell
Washita
Cordell
Washita
Cordell
Custer
Custer City
Custer City
Custer
Davis
Murray
Duncan
Stephens
Duncan
Stephens
Duncan
Stephens
Durant
*Bryan
Durant
*Bryan
Durant
*Bryan
Dustin
Hughes
Eldorado
Jackson
Elk City
Beckham
Fort Towson
*Choctaw
Francis
Pontotoc
Frederick
Tillman
Frederick
Tillman
Gotebo
Kiowa
Grandileld
Tillman
Hammon
Roger Mills
Hartshorne
Pittsburg
Hastings
Jefferson
Haworth
*McCurtain
Heavener
LeFiore
Heavener
LeFiore
Hobart
Kiowa
Hobart
Kiowa
Hobart
Kiowa
Holdenville
Hughes
Holdenville
Hughes
Holdenville
Hughes
Holdenville
Hughes
Hollis
Harmon
Hollis
Harmon
Hollis
Harmon
Hugo
*Choctaw

99
Bank
*Hugo National Bank
Farmers National Bank
First National Bank
*First National Bank
*First National Bank
Keota National Bank
*First National Bank
First National Bank
Peoples National Bank
City National Bank
First National Bank
Lawton National Bank
Lehigh National Bank
Merchants National Bank
First National Bank
First National Bank
*City National Bank
*First National Bank
*Madill National Bank
First National Bank
Mangum National Bank
First National Bank
Marietta National Bank
National Bank of Marlow
State National Bank
Farmers National Bank
First National Bank
American National Bank
City National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
First National Bank
National Bank of Commerce
PauIs Valley Nat'l. Bank
First National Bank
National Bank of Commerce
Chickasaw National Bank
Union National Bank
First National Bank

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Federal Reserve Bank of St. Louis

County
Town
*Choctaw
Hugo
Caddo
Hydro
Caddo
Hydro
*McCurtain
Idabel
*Bryan
Kenefick
Haskell
Keota
*Marshall
Kingston
Pittsburg
Kiowa
Pittsburg
Kiowa
Comanche
Lawton
Comanche
Lawton
Comanche
Lawton
Coal
Lehigh
Coal
Lehigh
Garvin
Lindsay
Kiowa
Lone Wolf
*Marshall
Madill
*Marshall
Madill
*Marshall
Madill
Greer
Mangum
Greer
Mangum
Love
Marietta
Love
Marietta
Stephens
Marlow
Stephens
Marlow
Garvin
Maysville
Garvin
Maysville
Pittsburg
McAlester
Pittsburg
McAlester
Pittsburg
McAlester
Johnston
Milburn
Johnston
Mill Creek
Grady
Minco
Kiowa
Mountain View
Carter
New Wilson
Jackson
Olustee
Garvin
PauIs Valley
Garvin
PauIs Valley
Garvin
PauIs Valley
Lenore
Poteau
LeFlore
Poteau
McClain
Purcell
McClain
Purcell
Pittsburg
Quinton

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Federal Reserve Bank of St. Louis

100
First National Bank
F. & M. National Bank
First National Bank
First National Bank
First National Bank
Beckham County National Bank
First National Bank
First National Bank
First National Bank
*First National Bank
First National Bank
*First National Bank
American National Bank
First National Bank
First National Bank
First National Bank
First National Bank
Park National Bank
First National Bank
Temple National Bank
First National Bank
Farmers National Bank
First National Bank
Tishomingo National Bank
Farmers National Bank
*First National Bank
First National Bank
National Bank of Verden
First National Bank
Walter National Bank
First National Bank
First National Bank
First National Bank
Waurika National Bank
First National Bank
German National Bank
American National Bank
First National Bank
Latimer County National Bank
*First National Bank
First National Bank
Southern National Bank

Carter
Ringling
Roff
Pontotoc
Roff
Pontotoc
Rush Springs
Grady
Ryan
Jefferson
Sayre
Beckham
Sayre
Beckham
Sentinel
Washita
Snyder
Kiowa
Soper
*Choctaw
Spiro
LeFiore
Sterrett
*Bryan
Stigler
Haskell
Stigler
Haskell
Stonewall
Pontotoc
Stratford
Garvin
Stuart
Hughes
Sulphur
Murray
Talihina
LeFiore
Temple
Cotton
Thomas
Custer
Tishomingo
Johnston
Tishomingo
Johnston
Tishomingo
Johnston
Tupelo
Coal
Valliant
*McCurtain
Verden
Grady
Verden
Grady
Walter
Cotton
Walter
Cotton
Wapanucka
Johnston
Washington
McClain
Waurika
Jefferson
Waurika
Jefferson
Weatherford
Custer
Weatherford
Custer
Wetumka
Hughes
Wetumka
Hughes
Wilburton
Latimer
Woodville
*Marshall
Wynnewood
Garvin
Wynnewood
Garvin

Total number of member banks in the Eleventh District in Southern Oklahoma-166.

101
Total number of member banks in the Counties of
Bryan, Choctaw, Marshall, McCurtain and Pushmataha,
which are excluded from the territory sought to be
transferred by the Committee filing the petition-30.
Total number of member banks situated outside of the
Counties of Bryan, Choctaw, Marshall, McCurtain and
Pushmataha-136.
Total inumber of member banks required to file petition in accordance with the regulations of the Federal
Reserve Board-90.

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Full text of Records of the Federal Reserve System, Record Group 82 : Boundaries of FR Districts: Dr. A. C. Miller File (Pocket), Box 264, Folder 4

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