The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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Federal Reserve Bank of St. Louis
J
1222 - Ch/ _oes in Boundaries of FRDistrict,s
•
/
•
RECONST UCTI N FINANCE CORPORAMI
t
WASHINGTON
stanoN
FEB 5 1951
JAN 31 1951
Dear Mr. Carpenter:
I have by reference zatir_i_12Lter
.
..2 addressed to Mr. Leo Nielson, Secre21 111
....1
tary of this Corporation, attaching copies of
correspondenae with Senator. Virgil M. Chapman,
_
pertaining to a rumor that Eastern Kentucky is to
be removed from the Fourth Federal Reserve District.
I have written to the Senator on
the subject and for your ready reference copy of my
letter is enclosed.
Yours very truly
MEAR TT
Executive 4anager for the
Board • Directors
Mr. S. R. Carpenter
Secretary
Board of Governors of the
Federal Reserve System
Washington 25, D. C.
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Federal Reserve Bank of St. Louis
I
FOR 171.7.S
Patricia B. Ivie
che
RECONSTRUCTION FINANCE CORPO
WASHINGTON 25, D.C.
COPY
Dear Senator Chapman:
Mr. S. R. Carpenter, Secretary,
al Reserve System has referBoard of Governors of the Feder
of your letter of January 19
red to this Corporation copy
man McCabe.
with enclosure addressed to Chair
On January 17, 1951 W..E. Harber,
to Mr. E. D. Wilder
RFC Board Chairman wrote directly
Mr. Harberts letter is
about the matter and copy of
enclosed.
Subsequent to that letter, the
been revised
territory served by our Louisville Office has
cky and by reason of
to include the entire State of Kentu
Louisville territhe inclusion of Eastern Kentucky in the
in Eastern Kentucky
tory, applicants for RFC loans domiciled
than our Cleveland,
will deal with our Louisville Office rather
portion of the State
Ohio Office which formerly covered that
February 1, this
of Kentucky. This revision is effective
year.
Sincerely yours,
(SiLned) A. B. M=RITT
A. B. MERRITT
Executive Manager for the
Board of Directors
Honorable Virgil M. Chapman
United States Senate
Washington, D. C.
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Federal Reserve Bank of St. Louis
FOR FILES
Patricia B. Ivie
hILzs
stenobt
FEB 5
1951
0
RECONSTRUCTION FINANCE CORPORATION
Washington, D. C.
January 17, 1951
Mr. E. D. Wilder
Secretary
Lexington Chamber of Commerce
152 East High Street
Lexington, Kentucky
Dear Yr. Wilder:
I have for acknowledgment your letter of
January 11 referring to certain changes in RFC Branch
Offices and territorial supervision in the State of Kentucky.
The Directors of the Corporation have no plan
in mind to eliminate or transfer any of our thirty-one
Icz,n Agency Offices or Branches. Arrangements have been
made to consolidate the bookkeeping and other fiscal activities of the Loan Agencies and Branches in ten of the
existing Loan Agency Offices. This move has been taken
with the objective of reducing non-essential administrative
expenses and to improve the services available through the
Corporation.
Our Loan Agency Office at Louisville, Kentucky
presently serves the approximate western half of Kentucky
and our Loan Agency at Cleveland serves the approximate
eastern half of the State. The entire State of Ohio is
served by our Cleveland Office and we do not maintain a
Branch Office at Cincinnati. Some thought has been given
to including the entire State of Kentucky in the territory
covered by our Louisville Office, but no action has been
taken in this connection.
Your interest in the matters about which
you have written is appreciated.
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Federal Reserve Bank of St. Louis
Sincerely yours,
/s/
W. E. Harber
Chairman
FI7,73
Patricia B. Ivie
ici
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Federal Reserve Bank of St. Louis
251*
,
Mr. Leo Nielson, Secretary,
Reconstruction 7innnce Corporation,
11 Vermont Avenue, ii. W.,
Washington 25, D. C.
Dear Mr. Nielson:
There is referred herewith for your consideration
a copy of_4_10ter_dated January /9, 1951," with enclosure,
which Senator Chapman, 61-Kehtbety, addressed to Chairman
-McCabe regarlirff a rumorel change in the territory of the
Fourth Federal Reserve District, together with a cop7 of
the reply, we have male to Lenator Chaprlan.
I tnderstani that Mr. Kenyon discussed this
correspondence with you by elephone yesterday.
Very truly yours,
-44ED) & ReCARPEMTI
S. R. Carnenter,
Secretary.
Enclosures
rtiKu
1/2
MR.l'rr' •
—,..its'164:*
"
"
--4)9411VAit'7
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Federal Reserve Bank of St. Louis
I.
cti yded
JAN 2'11
Honorablo Virr,1.1 14 Chapman,
TinitrA States onste,
Vashington, 11. C.
Der ! enter Charemn:
This will 7.:Icknoi,41edge._..y•ou.r letter of Janwry 19,
.
1951, tilirescei to (4irman MOCabo, with uhich you enclo
sed
a 1ett,4.. a- frort T Tr. E1'%iiljer, 5Ceret•Er7 of the Chazrabar of
,
,
2
Cameron in Lexington, Kentucky, concerning moor
s !.;hat
erastxrn rientuelvi is to ho remowA fron the Fourth
Federal
:Zeserve District.,
3uch a change is not trailer consideraf:Aon by the
at the present time, and 14o ha,1 been unriware of au
macaws to that effect. No chenr7.7 in the bounlaries
of a
rederal :?,er:orve Distrif....r, can be effected exceo
t by action
of the Eloarl of Governors, aril I can assare you
thrit it
would not be mde vithout fall and complete delib
eration.
As the stateraen•,s in 14r. Iiilder':••• letter relate
also to tc-rritories liervn4 by mrticular loan egenc
,
,
ier,of
the •!-€..tecnv.. traction Finance Corporation, we are
:
taking the
liberty of referring a copy or his lett,er •;:;o
that CorT)ortation for further attentior•
Very truly ycnn.c,
S. R. Carpenter,
Secretary.
cc:
Mr. Leo Nielson,
ecretary, Reconstruction Finance Corp.
4 tan* • A
'10
41
; 11. J. DorietiertY—
fr;.4
I
CHAIRMAN
MILLARD E. TYDINGS, MD.,
STYLES BRIDGES, N. H.
CHAR GURNEY. S. OAK.
RICHARD B. RUSSELL. GA.
HARRY FLOOD BYRD, VA.
VIRGIL CHAPMAN, KY.
LYNDON B. JOHNSON, TEX.
ESTES KEFAUVER, TENN.
LEVERETT SALTONSTALL. MASS.
WAYNE MORSE, OREG.
WILLIAM F. KNOWLAND, CALIFJ
LESTER C. HUNT, WYO.
HARRY P. CAIN, WASH.
J. NELSON TRIBBY, CLERK
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Federal Reserve Bank of St. Louis
IN FILEs SECTION
11Cnifeb Zia:fez Zeivato
COMMITTEE ON ARMED SERVICES
4sai
JAN 2 1951
,
January 19, 1951
Honorable Thomas B. McCabe,
Chairman, Board of Governors,
Federal Reserve System,
Federal Reserve Building,
Washington 25, D. C.
Dear Mr. McCabe:
Enclosed is a copy of letter I have
received from my good friend, Ed Wilder, Secretary of
the Chamber of Commerce, Lexington, Kentucky, which
explains itself.
Mr. Wilder will be grateful, and I will
be most appreciative, if you will look into tais matter
and advise me.
With all good wishes,
Sincerely yours,
Enclosure
rou Mas
m.
j
D°Whert .
-A.M... -h.
LEXIrGTON OHAN.B72. OF CO1417PCE, Inc
152 East High Street,
Lexington, Kentucky.
January
Eleven
1951
The Honorable Virgil Chapman
Senate Office Building,
Washington, D. C.
Dear Virgil:
Our banking and business interests are very much disturbed
over the rumor that eastern Kentucky is to be removed from
the Fourth District of.the Federal Reserve and that the
Reconstruction Finance Corporation will require us to do
business with the Louisville or St. Louis branches.
We have very little business relationship with the St. Louis
area and far less with the Louisville area than we have to
the northward and eastward of Lexington. The coal, timber
and tobacco interest in the eastern half of Kentucky, as
well as our general business and industrial transactions
are more with the north and the east int he Fourth Federal
Reserve District. We have been admirably served by the R. F. C.
branch in Cincinnati and we urge you to help up remain in that
district.
Anything you can do will be greatly appreciated. With kind regards
and best wishes, we are
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Federal Reserve Bank of St. Louis
Sincerely,
LEXINGTON CHIA/DER. OF CDMERCE
ED WILDER, SECRI7ARY
lt
7,otigterti
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Federal Reserve Bank of St. Louis
• 1.
.11"rx7;157-2ZTIEERTE',GT
RIN
k.
t„
JAN • 3 195Q
r. law H. aidney, President,
Fedoral Reserve Bank of Cleveland,
'leveland 1, Ohio.
Dear •"/-. Cidney:
There is enclosed frr your information a copy of the
reply which the Board is today making to "bncressman Brent Spence
of Kentucky regarding e complaint which he received from
4.. Thomas Graha ' of Louisville, as to the division of the State
,
of Kentucky betreen the Fourth and Eighth Federal 1*.eserve districts, and suvestinr the estnblishment of a branch at Lexington.
A copy of !ir. Graham's letter is also enclosed.
The Board has sent a similar reply to an identical
letter which 'Tr. Graham addressed to Congressman Prank Chelf,
also of Kentucky.
Very truly yours,
(Signed) Merritt ffhetnitn
Merritt Sherman,
Assistant Secretary.
.entical letter to:
Yro Chester C. Davis, President,
Federal eserve Bank of St. Louis,
St. Lo
ouri
ETI
1
FOR FILES \
W. R. Corkhum
REC'D
If
JA1•1 1. 3 1953
JAN -
l'95t)
'ionorable 'raet
flouse of Representatives,
)11shineben, D. C.
;ear
r.f:Ipence:
letter datedfloOer 7 Which you
This refers to
Vr. ThomaeGraham of muisville regarding a rereceived from
ediusteent or '45dera1 Reserve district lines involvirx the z7.tate
of *i.ontecky, end the establishment of a "sub-bank" at T_Axineten.
atee that western Kentueley is served by the Cincinnati
The letter
A:* the Federal Reserve Bonk of aevelend and the eastern eert
Breech
of We ,,tete by the IJmuisville VraneL of the Federal !eserve '3ank
of et. IDUis. just the reverse, of course, is true es the •ineinnati
Branch servee the eastern part of the ftate and the I,ouieville 1141uneh
the wentern eert of the State.
ith respect to
'raham's ceeplaint as to the division
of the State between two Pederal Reserve districts, Section 2 of the
Foderel Ileserre Act, wietch charged the Orruniestion Coemittee with
the responsibility of establishing the Federal ieseree districts,
contains the provision th.ra: the districts "shall be 6p2ortio7led
with due regRrd t the convenience wad oustomary course ef Lusiness
and shall not necessarily be coterninous with any :Ante or ZAsites.'
The decision of the Orranitation Committee, which placed
the western part of Kentu4y in the St. Lmais district end the
eastern eertioe of the State in the Cleveland district, was announced
on AprIl 10, 1914 prior to the establisheent of the Federal 'eser, e
!
Pants. In determinin: the several districts the Coniittee stated,
among ether V-Ale7s, that it'
tendeReored to follow State lines ee
closely as practicable, and 'wherever it has been found necessary
to deviate the division has been along lines which are believed to
be most oonvenient end advantageous for the district efrected."
under the law the noard has etpority to readjust existing
Pederal Reserve districts, and ehanes in territories Neve been
naf!e from time to time in the past. No set proceure has been
established in eonnection with such chenilles in boundaries; generally,
member banks which have sot -ht trensfer tre,e one district te another
L140,,e1;
s At/14
('9(
/of
3d i. (Yi
3d1. 4?)
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Federal Reserve Bank of St. Louis
CT
iLECTOT\f1
JAN 13 1950
Honorable
rent epenee
-2e
petitioe to the eoard of Governore settAn forth
heve Isbedtted
the reasons wixe the seceested ohenge in district lines wan 0.eened
desirable. In entine upon any suoh petition the hoard would, of
course, consider all relevant factors and weule '-deve in mind the
e
previonsly mentioned provinion of the Federal - eserve test that OVA
distriets "ithell be eppertioned with etAe leeferd to the convenienoe
and oestoeary course of business and shall not neoesearily be
coterminous with any State nr States."
A review of the te)ardfc elles iedicetes Vett abeet ton
years ego Mr. Fsajme.,,Binetleete.er the ";uisville eelrier JoAreal" and
the "Louisville fteeeeiteeteeie Senator eeceel et -Tent:101y succestier,
the desirabili.ty of transferring to the Federal eserve district of
St. eeuis that portion of• Yentuoky steirned to the Cleveland Federal
Rome:0 Astrict. Then the bankers in the eftstern part of the .te..te
learned or this move prectically every benh in the none filed a
protest with the Federal eeserve Vetnk of lemeland. In sepport of
propesal, the benks pointed out that the
their objecttans to 'tech
territory covered was oririnally laid out le serve leusinoss and
bankinr to the best adveeteeel that no material chimee had taken
place in the flan of lesinese in the 'Watery since the establishthe nrieinel boundary lines and Abat they were satisfied
veet
with the dlstriet lines of their Federal leverve district as drawn.
eee matter WAS not purseed any further.
le_tter suerestinr the
As to that part of Pr.
establiehment o t "sub-bank" at Lexincbee„ it is mssured he Leans
.
a branch Federal ieserve Lank. It is not entirely clear ebether
to place the entire .State of i4ntualry in one Federal
his sucrestion
Reserve district end sot ep a brenoh at Lexintton oontemplates the
removal of the present trench from Louisville. As you knee, there
is also a branch ;oderal Reserve Hank at Cincinnati which is only
a little weer one hundred miles from ioulseille. cith Lexineten
beinEwithin such a short distance of these two cities the establishment of smother branch at Lexintton weuld hardly seen to he eustified.
While no Jefinite standards have been prescribed by the
neerd for the detereinetioe of the necessity for estaelisheent of
a new breech, certain factors have been riven eonsideratiou in
this connection in the past. Amon, these factors have been the
followine: the num'ter of banks in the territery affected; whether
the establishent of the branch would afford banks in the torvitor
,dy reoelytar
quicker and more efficient servico thnn they were alre,
from the Pederal Reserve Bank head article or brafia: with vmich the
,e
were affiliated, inclding such services as tee collection ee eLe01
and eleteirier of cerroney; end the estimated coot
clDration of
tbo nroposold brtnoh.
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Federal Reserve Bank of St. Louis
C
•
•
•••••••
P.EC'D IN FIT,FS SECTION
JAN 13 .1950
ruble Jrert Iponee
-'3
OW
Should you have any Purther questions
in oonnestion with
the ;ratters about rhAoh Lr. Craham
wrote you, we shall be'pleased
to attempt to ansrar them.
Vary truly yours,
J
117-;:- 2 S. H.
S. R. narpenter,
Secretary.
APPROVt
•••••••••I
MINUTES ON-7-4e,e'
'"C
,
' BEHALF OF THE BOARO.
3 1950
4(
..;pproved:
... •
(Initial)
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Federal Reserve Bank of St. Louis
4
.
C
ppy
„IAN
3 1950
Honorable Frank Chelf,
House of '3.epresentatives,
:.ashington, D. C.
Pear 1 -r. Chelft
This refers to the letter dated November. 7 Which you
received Pram Hr. Thomas (1-Eiamirii3X1e re:arding
a readjustment of Federal Reserve district lines invol
ving the State
of Kentucky, and the establishment of a "sub-bank”
at Lexington.
The letter states that western Kentucky is served
by the Cincinnati
Branch of :he federal Reserve Bank of Cleveland
and the eastern part
of the State by the Louisville Branch of the Federal
Reserve Bank
of St. Louis. Just the reverse, of course, is true
as the Cincinnati
Branch serves the eastern part of the State and the Louis
ville Branch
the western part of the State.
with respect to Yr. irisiham's complaint as to the
division
of the 'tate 1,etreen two Pederal Reserve distr
icts, Section 2 of the
Federal Tieservy Act, which charged the Organizati
on Caumittee with
the responsibility of establishinc the Feder
al Reserve districts,
contains the provision that the districts
"shall be apportioned
with due regard to the convenience and
customary course of business
and shall not necessarily be coterminou
s with any State or rAates."
The decision of the Orranization Committee)
, yelich placed
the western nart of Kentucky in the .t.
Louis district and the
eesteri oertion of the State in the -lov
e/and district, was announce(
.
1
on April 10, 191b prior to the estab
lishment of the Federal eserve
Danks. In Oeterminink: the several distr
icts the rbmmittee stated,
amonr other things, that it "endeavore
d to follow State lines as
closely as practicable, and wherever it
has been found necessary
to deviate the division has been
along lines rill& are believed to
be most convenient and advantageo
us for the district affected."
ilnder the law the Board has aAhority to readj
ust existing
Federal Reserve districts, and chan
ce in territories have been
made from time to time in the past.
Ho set procedure has been
established in connection with such Chang
es in boundaries; generally,
member banks vhich have sought transfer
fram one district to another
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Federal Reserve Bank of St. Louis
C
REVD LN FirtrsEcrioti
JAN 13 1953
Honorable Frank (belt
- 2-
have submitted a petition to the eoard of Governors setting forth
the reasons -why the sueeested change in district lines was deemed
desirable. In acting upon any such petition the Boord would, of
course, consider all relevant factors end would have in mind the
previously mentioned provision of the Federal Reserve Act that the
districts "shall be apportioned with duo regard to the convenience
and customary course of business and shall not necessarily be
coterminous with any State or States." L
/
A review of the Board's files indicates that about ton
years ago 114*. Barry..Bingham of the "Louisville Courier Journal" and
the "Louisville Times" wrote to Senator Loran of Fentucky sugeesting
the desirability of transferring to the Federal Reserve district of
St. Louis that portion of 3';entuoky assirned to the eleveland Federal
eeserve district. ehen the bankers in the eastern part of the State
learned of this move practically every bank in the zone filed a
protest with the Pederal eeserve Bank of eleveland. In support of
their objections to such a propesal, the banks pointed out that the
territory covered was originally laid out ee serve business and
bankine to the best advantage; that no material change had taken
place in the flow of business in the territory since the ertablishmerit of the original boundary lines and that they were satisfied
with the district lines of their Federal reserve district as drawn.
The matter was not pursued any further.
As to that part of Vr. Graham's letter sueestinv the
establishment of a "sub-bank" at Lexington, it is assumed he means
a branch Federal eeserve Benk. It is not entirely clear whether
his sep -estion to place teo entire State If kentucky in one Federal
eeseree district and set up a branch at Lexineton contemplates the
removal of the present branch from Louisville. An you know, there
is also a branch Federal Reserve Bank at Cincinnati which is only
a little over one hundred miles from Louisville. eith Lexineton
being within such a short distance of these two cities the establishment of another branch at Lexington would hardly seem to be justified
ehilo no definite standards have been prescribed by the
hoard for the determination of the neceseite fer establish:ment of
a new branch, certain factors have been :Aven consideration in
this connection in the past. Among these factors have been the
following: the number of banks in the territory affected; whether
the establishment of the branch would afford banks in the territory
quicker and more efficient service than they were already receiving
from the Federal Reserve Bank head office or branch with which they
were affiliated, including such services as the collection of checks
and oh -aiming of currency; and the estimeted cost of operation of
the eroposed branch.
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Federal Reserve Bank of St. Louis
1
C
y
'C'D IN PILES SECTION
JAN
llonorable Frank
j3 1950
3
Should you have any further questions in connection with
the matters about which 7'r. Graham wrote you, we shall be pleased
to attempt to answer them.
Very truly yours,
S. R. Carpenter,
Secrotary.
APPROVAV
CtAArVaft\'..-
A • U .
OF
BOARD
04 BEHALF OF THE
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:
.................... .........—,........4...---(InIttai)
4,1proved:
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
3 1950
JJC:ct
'
2-28449
\
.11M11
,
C
FOR FILES
W. 11. Corkhum
y
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Honornble Frank L. Chelf,
iTouse of Renresentvtives,
Iqashington, D. C.
This is to acknowledce receipt or your letter
(lf_NPriabler 30 enclosing s communication you have had
from W. Thomas Graham, of Louisville, Kentucky, regard—
inr the livision of the State of Kentucky between tl/o
Federal eserve districts.
The answer to this ouention entails some
investigation, anl we aro taking the liberty of making
an interim acknowlelgment. We assure you that the reply
to Ph. Graham's inquiry will be sent to you as soon as
study of his nroposal con bn completed.
FRANK L. CHELF
COMMITTEE ON THE JUDICIARY
4-1- --slisTRicr, KENTUCKY
,
.
SUBCOMMITTEES:
IMMIGRATION AND NATURALIZATION
.
HOME ADDRESS:
LEBANON, KENTUCKY
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Federal Reserve Bank of St. Louis
Congre55 of Mt Viniteb 5tatc.
REC'D
jbouoe of ileproentatibess
.
mitniu, A
JAN 13 1.,53
Q11a0bington, O.C.
30 November 1949
Mr. Samuel Carpenter, Secretary
Board of Governors
Federal Reserve System
Washington, D. C.
Dear Mr. Carpenter:
I am enclosing a self-explanatory letter which
I have received from Mr. Thomas Graham, of Louisville, Kentucky.
Any information which can be furnished me in this
regard will be appreciated.
Sincerely yours,
Frank L. Chelf. Y
•
_D
•N
JOHN W. CRIMMINS
CHAIRMAN OF ORGANIZATION
•
.,LEPHONE
•CKSON 5394
LENNIE W. McLAUGHLIN
SECRETARY
R,EC'D IN PIL
DEMOCRATIC COUNTY EXECUTIVE CO
III 4 13
:
305 TYLER BUILDING
LOUISVILLE, KENTUCKY
THOMAS GR AHAM
CHAIRMAN FINANCE COMM ITTEE
DEMOCRATIC Fl NANCE
1 949
COMMITTEE
November 7, 1949
WM. 0. ALDEN. JR.
O'NEAL, ALDEN a, CO.
M. M. BONNER
614 W. WALNU T.
ROBERT BURK E. JR.
KY. HOME LIE E BLDG.
A. E. CABBELL
LINCOLN BAN
LLOYD CLAR
BANK OF LOU ISVILLE
SID CLAY
U. S. TRUST CO.
CLIFFORD COOMES
874 FETTER
EDWARD DA VIS
PYTHIAN B LDG.
JOHN H. D AUGHERTY
KY. HOME LIFE BLDG.
JOHN DUG AN
1445 S. THIRD ST.
CHARLES DUNN
800 BAXTER
SAM ESKE
KY. HOM E LIFE BLDG.
ROBERT EVANS
CITIZEN S FIDELITY BANK
CHAS.0 EWING. III
.
OSCAR EWING DAIRY CO.
!SCHER
CARL F
1062 M ELLWOOD AVE.
GORDO N FORD
KY. H OME LIFE BLDG.
HENRY GERBER
LOUISVILLE WATER CO.
FERD GNAU
31 U. S. TRUST BLDG.
F. A. GULLEDGE
BAN K OF ST. HELENS•SHIVELY
ROBERT HATTON
M. E. TAYLOR BLDG.
WOO D HANNAH
BA NKERS BOND CO.
SCOTT HAMILTON
Y. HOME LIFE BLDG.
MATT HARGAN
STOCK YARDS BANK
ROBERT HENSLEY
KY. HOME LIFE BLDG.
. HOWARD HOPKIN
100 CHENOWETH LANE
RITZ HUTTMANN
741 S. THIRD ST.
DWIN KLEIN
ROYAL INDUSTRIAL BANK
SAM KIRBY. JR.
201 N. BIRCHWOOD
RAY KIRCHDORFER
KY. HOME LIFE BLDG.
DR. J. A. C. LATTIMORE
15TH & WALNUT
SEN. C. W. A. McCANN
712 W. JEFFERSON
STANLEY McGEE
HEYBURN BLDG.
RALPH NEBLETT
BANK OF JEFFERSONTOWN
ALBERT PHILLIPS
FIRST NATIONAL BANK
IRA PORTER
LOUISVILLE TRUST CO.
MERLE ROBERTSON
LIBERTY BANK & TRUST CO.
ALVIN ROSENBERG
1411 WILLOW
LEON SHAIKUN
116 W. BRANDEIS
ROBERT SLOSS
M. E. TAYLOR BLDG.
MAX WALDMAN
M. E. TAYLOR BLDG.
EDWARD WILLIS
KY. HOME LIFE BLDG.
HOLMAN WILSON
LOUISVILLE TRUST BLDG.
THOMAS YOUNG
KY. HOME LIFE BLDG.
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Federal Reserve Bank of St. Louis
Hon. Frank L. Chelf
Lebanon, Ky.
Dear Frank:
One of the worst things that has been
inflicted on Kentucky has been the division of the
State from an economic standpoint by the Federal
Reserve System - Western Kentucky being served by
Cleveland through Cincinnati, and the Eastern part
of the State by St. Louis through Louisville.
It seems to me the greatest service
u
could render Kentucky would be to see that the S ate
is put into one District and, additionally, these o gh
be a sub-bank in Lexington. Then the state wo d net
be in economic integration as it is at,the pres3nt im
which does more harm than anything I know of.
Yours
_rel
Thomas G aham
TG:CN
to
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BEC'D IN FILES SE0110.1
JAN 13 1950
4s*
ior&1k rcnt Spence,
'Touat,- of aeTiresentztivos„
:ashirzton, T. C.
!'..7 dear 1;),:x.. Conc!rm'aman:
Thio is to acknowlodce your :li_ettr
Nover* 17 enclozin a =lonrunicAtian you Tvav- hal
frQ y11r frieni Thcmas Grahnm, an Investment banker
In Loqiaville, Kentucky, uho writes recnrdins: the
livision of the aate of Kentucky betycen two Toleral
Reserve districts.. The answer to this qmstion entaila mze reference, an ve are tsiting the Inorty
of tekiir, an interim acknouletionont, with the anskrnce
that the reply to Mr. Graham's inquiry vi11 be sent to
you as soon so study of' it can be completel.
trust
tl)nt
lelsy uill not be inconvenient.
Very traly T-31zrs,
IR
- AV Nft5.;;Itt
Try
Assivtent neeretary.
FOR FILES
W. R. Corklaum
••••••
C
EIGHTY-FIRST CONGRESS
•
&
*4
A '''.1)
T
„J,I I 13 19O
BRENT SPENCE, KY., CHAIRMAN
PAUL BROWN, GA.
WRIGHT PATMAN, TEX.
A. S. MIKE MONRONEY, OKLA.
JESSE P. WOLCOTT, MICH,
RALPH A. GAMBLE, N. Y.
FREDERICK C. SMITH, OHIO
BROOKS HAYS, ARK.
ALBERT RAINS, ALA.
FRANK BUCHANAN, PA.
ABRAHAM J. MULTER, N. Y.
JOHN C. KUNKEL, PA.
HENRY 0. TALLE, IOWA
CHARLES B. DEANE, N. C.
GEORGE D. O'BRIEN, MICH.
CHASE GOING WOODHOUSE, CONN.
HOUSE OF REPRESENTATIVES
ALBERT M. COLE, KANS.
CLINTON D. MCKINNON, CALIF.
HUGH J. ADDONIZIO, N. J.
ISIDORE DOLLINGER, N. Y,
DONALD W. NICHOLSON, MASS.
ROLLA C. MC MILLEN, ILL.
CLARENCE E. KILBURN, N. Y.,
COMMITTEE ON BANKING AND CURRENCY
WASHINGTON
MERLIN HULL, WIS.
HARDIE SCOTT, PA.
November 17, 1949
HUGH B. MITCHELL, WASH.
BARRATT O'HARA, ILL.
WILLIAM J. HALLAHAN, CLERK
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1 11,
0
Honorable Thomas B. McCabe
Chairman, Board of Governors
Federal Reserve System
Washington, D. C.
My dear Mr. Chairman:
I herewith enclose a letter,which I have received
from my friend, Thomas Graham, an investment banker
in Louisville, Kentucky. I would like to have your
reaction to his subject.
With all good wishes, I am
Sincerely,
r
•
McKAY REED
CHAIRMAN
JOHN W. CRIMMINS
CHAIRMAN OF ORGANIZATION
•
TELEPHONE
JACKSON
LENNIE W. McLAUGHLIN
SECRETARY
C'D LN 1117=276}1
5394
DEMOCRATIC COUNTY EXECUTIVE COM ITT% 131953
305 TYLER BUILDING
a,
LOUISVILLE, KENTUCKY
THOMAS GRAHAM
CHAIRMAN FINANCE COMMITTEE
DEMOCRATIC FINANCE COMMITTEE
1949
November 7, 1949
WM. 0. ALDEN. JR.
O'NEAL, ALDEN & CO.
M. M. BONNER
614 W. WALNUT.
ROBERT BURKE, JR.
KY. HOME LIFE BLDG.
A. E. CABBELL
LINCOLN BANK
LLOYD CLARK
BANK OF LOUISVILLE
SID CLAY
U. S. TRUST CO.
CLIFFORD COOMES
874 FETTER
EDWARD DAVIS
PYTHIAN BLDG.
JOHN H. DAUGHERTY
KY. HOME LIFE BLDG.
JOHN DUGAN
1445 S. THIRD ST.
CHARLES DUNN
800 BAXTER
Hon. Brent Spence
Ft. Thomas, Ky.
SAM ESKEW
KY. HOME LIFE BLDG.
ROBERT EVANS
CITIZENS FIDELITY BANK
My dear Mr. Chairman:
CHAS. 0. EWING. III
OSCAR EWING DAIRY CO.
CARL FISCHER
1862 MELLWOOD AVE.
GORDON FORD
KY. HOME LIFE BLDG.
HENRY GERBER
LOUISVILLE WATER CO.
FERD GNAU
31 U. S. TRUST BLDG.
F. A. GULLEDGE
BANK OF ST. HELENS-SHIVELY
One of the worst things that has been
inflicted on Kentucky has been the division of the
State from an economic standpoint by the Federal
Reserve System - Western Kentucky being served by
Cleveland through Cincinnati, and the Eastern part
of the State by St. Louis through Louisville.
ROBERT HATTON
M. E. TAYLOR BLDG.
WOOD HANNAH
BANKERS BOND CO.
SCOTT HAMILTON
KY. HOME LIFE BLDG.
MATT HARGAN
STOCK YARDS BANK
ROBERT HENSLEY
KY. HOME LIFE BLDG.
W. HOWARD HOPKIN
It seems to me the greatest service y
could render Kentucky would be to see that the St
is put into one District and, additionally, th
to be a sub-bank in Lexington. Then the Stat
be in economic integration as it is at the p
which does more harm than anything I know of
100 CHENOWETH LANE
FRITZ HUTTM ANN
741 S. THIRD ST.
EDWIN KLEIN
ROYAL INDUSTRIAL BANK
SAM KIRBY, JR.
201 N. BIRCHWOOD
RAY KIRCHDORFER
KY. HOME LIFE BLDG.
DR. J. A. C. LATTIMORE
15TH & WALNUT
SEN. C. W. A. McCANN
712 W. JEFFERSON
STANLEY McGEE
HEYBURN BLDG.
RALPH NEBLETT
BANK OF JEFFERSONTOWN
ALBERT PHILLIPS
FIRST NATIONAL BANK
IRA PORTER
LOUISVILLE TRUST CO.
MERLE ROBERTSON
LIBERTY BANK & TRUST CO.
ALVIN ROSENBERG
1411 WILLOW
LEON SHAIKUN
116 W. BRANDEIS
ROBERT SLOSS
M. E. TAYLOR BLDG.
MAX WALDMAN
M. E. TAYLOR BLDG.
EDWARD WILLIS
KY. HOME LIFE BLDG.
HOLMAN WILSON
LOUISVILLE TRUST BLDG.
THOMAS YOUNG
KY. HOME LIFE BLDG.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
TG:CN
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tLt Ik PILES
Ai V 1 in.!
i$12.'
.44rwav
NOV 10 14'
Mr. Ralph L. Thomas, Assistant Vice President,
Peoples First National Tiank & Trust Company,
Pittsburgh 30, Pennsylvania.
F.:ear Mr. Thomas:
Mr. Leonard 'vas referred to me your letter of October 71
pasp000AtiospiiidAwmakm,wirpme014Primqvimilispwregarding the possibility of
having one of your correspondent banks in thr? Fifth District transferred to the Fourth Dir,trict,
The Board is authorized by paragraph 1 of Section 2 of
the Federal Reserve Act to readjust district boundaries, laut no set
procedure has been established for consideration of requests for such
a(!justments. In the past, where there has been strong sentiment amon
the banks in a given region to be transferred from one district to
another, vtitions to that effect have been presented to the Board of
Lkwernors. Any such petition should, of course, set forth in detail
the reasons why the change is thought desirable.
Very truly yours,
Mietikof tiskr
„.
Pray Hammond,
Assistant Secretary.
•
rott Trtzus
A. TA. Yates
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BOARD
OF
GOVERNORS
OF THE u-Eog,,RAL
REsuev_4,..s.y,1pt_
:T.CTION
..
1
To:
November 71 1947.
Mr. Leonard
From:
V 1 2 1947
Mr. Hammond
h?
I must claim responsibility myself for
the blunder of fetching in Mr. Bailey and
can implicate no others except for failing
to catch my error.
The letter in its present form follows
previous correspondence in similar cases.
Mr. Daniels and I had much rather leave out
reference to the Federal Reserve Banks.
They would, of course, be informed of any
petition after it was received, but it
seems to us that we should do as little as
possible that might encourage the petition
by indicating more than the simplest step
to be taken in presenting it. For this
same reason it seems to us that the distinction between transfer of a bank and
transfer of the territory in which the bank
is situated is not one that there is any
call to make.
Do you go along with us?
yo ITLES
A. L. Yates
PILES SECTION
KA/12 194-''
PEOPLES FIRST NATIONAL BANK &TRUST COMPANYPITTSBURGH 30,PENNSYLVANIA
October 29, 1947
Mr. Robert lc Leonard, Director
Division of Examinations
Board of Governor of the
Federal Reserve Board
Washington, D. C.
Dear Mr. Leonard:
A mutual friend of ours, Bill Bailey, Chief Examiner
of the Fifth District,mentioned that you might be the individual
to give me an answer on tnis question.
One of our correspondent banks is in the Fifth District
now and is very anxious to be transferred to the Fourth District.
All trade in that area goes toward Pittsburgh rather than Baltimore
and Richmond.
What would you suggest as to the proper procedure to request consideration of this and to whom should it be addressed.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Cordially
ours,
cLpakt,
Rah L. Thomas
Assista t Vice President
(i
nuts
A. L. Yates
1/
//
Lr. Horbett:
SECTION
For the benefit of the records, the source of inform tion concern—
ing the number of banks affected by the transfer of territo
frcnrein 2 11957
'
Federal Reserve district to another is as follows:
Territory
Transferred
Fairfield County, Connecticut
/ transferred from 1st. to 2nd.
F.R.District
Date of
Transfer
Number of
ource
Vember hanks _01) of information
Comptroller's Abstract
No. 100 (May 1916) p.11
4/1/1916
15
_// Sixteen parishes in Louisiana
transferred from 11th to 6th
F.R.District
4/1/1916
16
Twelve counties
J/ transferred fromin New Jersey
3rd to 2nd
7/1/1915
v 131
7/1/1915
\, 5
do.
121
do.
2.R.District
/ Tyler and Wetzel counties,
J West Virginia, transferred
from 5th to 4th F.R.District
"Twenty—six counties in Oklahoma
transferred from 11th to 10th
F.R.District
7/1/1915
,
s;
/Twenty—five counties in Wiscon— 1 1
/ /1917
j sin transferred from 9th to 7th
F.R.District
Parts of Sharkey and Yazoo Coun— 12/12/1919
ties, Mississippi (made part of
new county Humphreys) trans—
ferred from 6th to 8th F.R.Dis—
trict
Bernalillo and Valencia Cos.,New
Mex. trans. from 11th to 10th Dist. )4/15/1926
* All National banks;
No state bank members in
territory at time of the
transfer
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
52
None
3
do.
Comptroller's Abstract
No. 96 (Sept.1915) p.11
Comptroller's Abstract
No. 105 (1,-ar.1917) p.11
Letter to Deputy Comptroller
Kane, 2/1 / 920. (File
11
124208, Transfer of Humph—
reys 'jo..riss. from 6th to "
8th District.)
Board letters toGov(rs.
K.C. & Dallas 3/30926
o
IN RECORDS SECTION
FEDERAL RESERVE BANK BRANCH ZOnS
Changes in Territory
October 1, 1938
f":9 2 1 1957
The following counties in Washirgton:
Asotin
Columbia
Garfield
Walla Wb..11a
The following counties in Idaho:
Benewah
Bonner
Boundary
Clearwater
Idaho
Kootenai
Latah
Lewis
:hoshone
Nez Perce
(
transferred frora Seattle Zone to Portland Zone
•
October 1, 1938
Spokane Branch discontinued
November 1, 1938
Calhoun and Refugio Counties, Texas, transferred from
San Antonio Zone to Houston Zone.
June 1, 19L0
Presiftio County, Texas, transferred from San Antonio
Zone to El Paso Zone
July 1, 19L0
Sixteen counties in North Carolina transferred from
Richmond Head Office territory to Charlotte Branch
territory:
411
^ Alanance
Anson
'Chatham
Davidson
Davie
Fors:-th
Guilford
.I.Re
Montgonery
koore
Randolph
Richmond
Rockingham
Stokes
Surry
Yadkin
Nov. 16, 191:2
City of Newport, Jackson County, Arkansas, transferred
from Head Office Zone to Little Rock Zone.
Jan. 2, 1943
Brewster County, Texas, transferred from San Antonio
Zone to El Paso Zone.
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Federal Reserve Bank of St. Louis
1
•
1 11'D IN FILES SECTION;
-
,./
MAY 4 - 1940
BOARD OF GOVERNORS
OF THE
4."•0
FEDERAL RESERVE SYSTEM
+4L.ti
° *
O
R-643
WAS
ADDRESS OFFICIAL CORRESPONDENCE
4.
tot,
TO THE BOARD
cal.%*
April 26, 1940
•Lt'{ , *
14 4t*
Dear Sir:
At the conference held in Washington on March 19, 1940,
the Conference of Presidents approved in principle the proposal
of the Standing Committee on Collections that the American Bankers Association bank numbering system be revised, and requested
the Chairman of the Conference to appoint a committee of three
members of the Conference to review, with power to approve in
behalf of the Conference, such plan for the revision of the numbering system as may be recommended by the Standing Committee on
Collections.
If a revision of the American Bankers Association bank
numbering system is adopted that involves the printing on checks
of numbers indicating the Federal Reserve Bank or branch territory in which a bank is located, subsequent changes in Federal
Reserve branch territorial lines will cause considerable confusion in sorting and routing checks.
It will be appreciated, therefore, if you will discuss
this matter with the Directors of your Bank at the first convenient opportunity and advise the Board whether the Bank feels that
any changes should be made in branch territorial lines in your
district before a change, if any, is made in the American Bankers
Association bank numbering system.
Very truly yours,
L. P. Bethea,
Assistant Secreta7y.
TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS
EXCEPT BOSTON, PHILADFTPHIA, AND RICHMOND
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Federal Reserve Bank of St. Louis
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4110••••••
•
, REC'D IN FILES SECTION
MAY 1 - 1940 ,
A
i_
„
apP. 2 1940
Hui Leach, President,
Federal Reserve Bank of Richnonds
Richmond, Virginia
Dear Mr. Leach:
>1,
There is enclosed a copy of a letter
dated April 26, 1940, which was seat to all Federal
Reserve banks except Boston, Philadelphia and
Richmond, regarding possible changes in Federal
Reserve branch territorial lines.
It will be appreciated if you will discuss
the subject of this letter with the directors of
your bank at the first convenient opportunity and
advise the Board vhether the bank feels that any
changes should be made in branch territorial lines
in your district, other than the proposed changes in
the territory of the Charlotte Branch which are now
under consideration.
Very truly yours,
Le
hs CLrnent,2,
Assistant Secretary.
Enclosure
FOit FRES
E. li.. Mcniew
I
LSM;jtrs
4 61° 1)11-2,,131
--LL (cL-
Requests for Shaft in Boundpries of Federal Reserve Districts
which have not been approved by the Federal Rees
acertN FILRS
SEGRE‘
DEC 1 2 1938'____-
February, 1915:
•f )2 1_
Formal hearing before Federal Reserve Board Feb. 2, 1,16, e“ r,A/Jest
for transfer of States of Nebraska and Wyoming from 10th to 7th Dietrict. (Files do not disclose record of Board action, but Minutes
of May 26, 1915 cover action of Board on May 4, 1915, disapproving
request.)
May, 1915:
Formal hearing on application of certain banks in Wisconsin for
transfer from 9th to 7th District. Petition dismissed May 24, 1915, without prejudice.
Aug. 1916
Rehearing on above matter, banks in Northern Peninsula of Michigan also
being allowed to intervene.
Oct. 1916
Board ruled that, effec4- ive January 1, 1917, Monroe, Jackson,
Clark,
Marnthon, Langlade, Oconto and Marinette Counties and all counties
(in Wisconsin) in Ninth District east and south thereof, be transferred from 9th to 7th District.
April, 1918:
Transfer of 17estern half of Iowa" from 7th to 10th District.
No request received by Board, but Sioux City, Iowa, Clearing House
Association registered protest against such change.
April, 1922s
Application by six banks for transfer of Knox, Laurel and Whitley
Counties, Kentucky, from 4th to 8th District. Matter not formally
,
submitted to Board by eithlr Federal Reserve Bank in interest. No
Board action
July, 1923:
Correspondence with Mr. J. L. Milligan, with reference to transfer
of
certain counties in western Missouri from District No. 10 to
No. 8.
No action by Board.
Sept. 1932:
Application of certain banks in Oklahoma for transfer of eight
counties
in Oklahoma from 11th to 10th District, as follows:
Atoka
Johnson
Bryan
Nb Curtain
Coal
Mardhall
Choctaw
Pushmataha
No fornal request submitted to Board by either Federal Reserve
bank in
interest, hence no action by Board.
•
,-/
1i- f
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
_
JL
9
•
1
/,----
June, 1933:
- Petition and letters from certain banks in Benton County, Arkansas,
for transfer from 9th to 10th District. No apt)lication received from
Federal Reserve banks concerned and no action by Board indicated.
March, 1935:
Letter from Chairman Peyton, of Federal Reserve Bank of Minneapolis,
concerning efforts of Hon. Prentiss M. Brown, President of First National Bank of St.Ignace, Michigan, to obtain transfer of a portion of the
Northern Peninsula of Michigan from the 9th to 7th District. No application made to Board, but files disclose several letters from other banks
opposing the proposal.
(In Nay, 1937, the Board had correspondence with Mr. 7eyton concerning
the possibility of air mail service which would bring St. Ignace into
better communication with the Federal Reserve hank of Minneapolis. No.
action 17 Post Office Department is indicated.)
Note:
There are a nuMber of letters in the files with reference to individual
banks, member and nonmember, requesting permission to be transferred to
other Districts. These matters usually have been adjusted through the
Federal Reserve bank and no Board action is indicated.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
F4ERAL 41IkRVE DISTRICT LINES
Record of Changes Authorized
by Board
District No. 1:
• April 1,1916
Fairfield County, Connecticut, transferred to
District No. 2.
District No, 2:
' July 1, 1915
Twelve northern New Jersey counties transferred from
District No. 3, as follows:
Bergen
Essex.
Hudson
. April 1, 1916
•
Hunterdon
V.iddlesex
Monmouth
Morris
Passaic
Somerset
Sussex
Union
Warren
Fairfield County, Connecticut transferred from
District No, 1.
District No. q:
July 1, 1915
Twelve northern counties of New Jersey transferred to
District No. 2
District No. 4:
July 1, 1915
Tyler and Wetzel Counties, West Virginia transferred
from District No. 5.
District No. 5:
41Ik
July 1, 1915
District No,
'
6:
Two counties of West Virginia transferred to
District No, 4.
Sixteen parishes in Louisiana transferred from
District No. 11, as follows:
April 1, 1916
Acadia
Allen
Avoyelles
Beauregard
December 12, 1919
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Calcasieu
Cameron
Evangeline
Iberia
Jefferson Davis
Lafayette
Rapides
St. Landry
St. Martin
St. Mary
VermiliOn
Vernon
Parts of Sharkey and Yazoo Counties, Mississippi,
which had been made a part of the new county of
Humphreys, transferred to District No. 8
-2-
-Td'strict No. 7:
January 1, 1917
-
Twenty-five counties in Wisconsin transferred from
District No. 9, as follows
Fond du Lac
Adams
Green Lake
Brown
Calumet Jackson
Juneau
Clark
Kewaunee
Door
Langlade
Manitowoc
Marathon
Marinette
Marquette
Monroe
Oconto
Outagar4e
Portage
Shawano
Sheboygan
Waupaca
Waushara
Winnebago
Wood
District No, 8:
• December 12, 1919
Parts of Sharkey and Yazoo Counties, Mississippi,(made
part of the new county of Humphreys) transferred from
District No. 6
:
4111District No. 9
' January 1, 1917
Twenty-five counties in Wisconsin transferred to
District No. 7.
District No, 10:
July 1, 1915
Twenty-six counties in Oklahoma transferred from
District No. 11, as follows:
Beckham
Caddo
Carter
Comanche
Cotton
•
April 15, 1926
Custer
Garvin
Grady
Greer
Harmon
Haskell
Hughes
Jackson
Jefferson
Kiowa
Latimer • Pittsburg
Le Fiore Pontotoc
Love
Roger Mills
Mc Clain Stephens
Murray
Tillman
Washita
Bernalillo and Valencia Counties, New Mexico, transferred
from District No. U.
District No. 11:
• July 1, 1915
Twenty-six counties in Oklahoma transferred to
District No, 10.
• April 1, 1916
Sixteen parishes in Louisiana transferred to
District No. 6.
April 15, 1926
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Bernalillo and Valencia Counties, New Mexico, transferred
to District No. 10.
September 6, 1921.
'R. EDDY
CONNECTICUT NATIONAL BANKS IN
' . LIAY
DISTRICT NO. 2.
Referring to telephone conversation, all of Taine, 1:err Hampshire,
Vermont, ,o.scachusette, Rhee Island and Connecticut are in District No. 1,
Nith the exception of Fairfield county,
Federal Reserve Bank of Boston, ,
Connecticut, which in in District No, 2, Federal Reser7o Bank of New York.
The following national banks are located in this county and are therefore
attached to the Federal Reserve 3an17 of New York:
Bethel, Conn,
V• Bo thel National 3ank
Bridgeport, Conn.
V'City National Bank
do
y'First National ilank
Bank --... Danbury, Conn.
'Danbury National
--.12
do
-,
National Bank
..,,
''''';.• - ---Greenwich, Conn,
National Bank
.Greenwich
i',....-•.,.._-, 1,t ,..•_ 1. .First National Bank
New Canaan, Conn.
Norwalk, Conn.
.Fairfield County NB
,---'g
Norwalk - Norwalk, Conn.
-National Bonk of
%
Ridgefield, Conn.
\ 'First NB &. Trust Co.
South Norwalk, Conn.
Bank
'City National
Stamford, Conn.
First-Stamford NB
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OS
411111
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'801‘n
FEDERAL RESERVE BANK
OF NEW '(C)R K
April 7, 1916.
Sirs:
Receipt is acknowledged of your letter of
the 6th instant )informing me that the Federal Reserve
Board has approved the applications of the Fairfield
County, Connecti3ut, banks, for the surrender of stock
in the Federal Reserve Bank of Boston, and for stock
in the Federal Reserve Bank of New York.
Respectfully,
Federal Reserve Board,
:/ashington, D. C.
AJL/LES.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
,
)
,
FED,71
1,I7L4--RVE 1301D
,- ./.....**
-1
FILE
i
f
i
__..........,....1
iprii 6, 1916.
Mr. Pierr6 Jay,
Federal Reserve Agent,
New Yor- 11. Y.
,
Dear Sir:
hv
3(mra b
tho horor to
xiforn you thnt the eecioral
tmitty anprovind t)lo aripliwAtons of
tho fo141NT 't)ankt, for th.) vuirretanr cf 060: in the
ie4ezfj30r;orve
3ank of 3ostcn ttni for stook in tho
Fodoral loicarve SanR of t!.kat Yorks
art1143.,
ConalootioUt Nfttioisl 3ank
`14T.eiT7 ITalu1a1 Bunk
` City Tintional 'lank
firati-1,414
-uport :ZatIonal
N City flatittnnl
7shbvitry VsAlonal Unk
Greonwloh ntiotal Bank,
annk of
eirot Itttionnl 34ak
Pirrit National Unk
‘' Oity Nationa Bank
, 141rst HatAtnal iimnk
->
BAIlk
\fairflolti Count
oentrta NtAional Bauk
trforii Y4ationa1 San%
3ridvport, 001111*
a
Arldgeriort.
ort
:A:mina-ye
:A.W .17,711
011
:Anbrir:71
,
rwolk.
•
17enti Cantv, no
,
ft
le
300
960
160
160
180
7E.
a
3o,Nommit,
o?NI
Ntrulttn
ft
Litnarord,
14tpoutfully,
.'
,ssistant L.,eorotri,ry,
33
1Z0
160
150
72
;560
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BANKS IN
COUNTY,
NC. 1, TO DI3TRI:T NO.2.
Bethel National Bank
Bethel, Conn.
First 3ridr;eport National Bank
Bridgeport, Conn.
ft
City National Bank
Connecticut National Bank
Danbury National Bank
City National Bank
I,
Danbury,
11
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ft
(Ireenwi,:h National Bank
Greenwich
ft
First National Bank
row Canaan,
11
Central National Bank
Norwalk,
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ft
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First NP.tional Bank
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First National Bank
Stamford,
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Federal Reserve Bank of St. Louis
1
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transferred froM the 1st to the
2rd T. P. District effective An il 1, 1916.
Tl-is transfer af°ectcd 15 membe banks —
all :lational.
SCALE -STATUTE MILES
0
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7330.
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Federal Reserve Bank of St. Louis
20
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http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 10, 1917.
Federal Hesurye
Chicnzo, Ii1inois.
Dear 3irs:
One set of the appllentions of the 'Asconsin banks for
transfer of ntock from tho 1:Anneapo1l5 bank to :,rour bank is
transPlitted to you herowith*
In forwarding thosa applications
in duplicmte to the
3, ard tho Federal Reserve Bank of Ainnespolls roque9te1 thr.t
ono sot be forwarded to you and the other to their bik.
inasrluch as all applications affectIn7 stcc;:holfln'i
However,
I"led
/7
here, it is desired to keep one set In order that our records rlay
be conplotes
It is nGte
that in several inrtvliccis thoHe br.:nks h7ve
mde changes in their surrlus .411C11 will affect their stockhcldina,
and it is presumed that you desirc the dulliote applIcation:i in
order to stmir,hten out the natter.
Very truly :curs,
Jecrotary.
(ono.)
.1c.L.;'141
0
January 10, 1917.
Federal '4'eserve 3tnk,
ixtflJ1)O1 IS, Jinnonota.
jear
Referrim. to :ion?' letter of_Januag_21_1917 forwarding
:
in duplicate applio:Aions for surrender of stock in your bank
anJ for allotnent of stock in the Podoml Reserve 3ank of Chicano,
notice of the ap9rovv.1 of which vms sent to you yaterda7 7, you are
,
1
wivied that the Eloard desires to keep one not in order that its
mloras may be conplote.
All a:lplications affecting stookholdincs
aro filel in this offL;e•
it ie noted in the applications thRt sovemi of the barks
h' ye male changes in their suraus since their lnet allotment of
took„ and shuld file applications to correct their holdincs.
One skA cf the applications is th)rifore beim: sent ho the Federal
7:eaerve 3an;: of Chicago in order that they ma,7 tAke thti mittor up
with the bana in quf3sti0ni.
Very truly yours,
cretury.
61,
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mallt to Nu*
•_.•1
/7/7
MIL41
,L:it
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
e eq--)Or
J5;tiliRrY 9, 1911.
..1r4 C
L. lioath„
Aatsml itoborvo ,tpat„
Chiougo, illincio•
Danr Ars
ttlo honor tc, infrm you thAt thn god9ra1
•irvt!3t,,rd„
lanaor Ltt
f JAnuary 6, 117, approltA
tho s;;;)piiimticalfi or WTI followIng banlAs in A.soonzin for
currwIlar or stock ln
Zederal Roaorve Bank of Unp-
Wapolio at tho talotczt of &dock in tho .:.'odern1 "olzor7o
o!! !Jlio:mos
Fimt NntLonal 3ank
LioVatlowa aank
Citl.no
34nk
V,Ational Bank
litionnl Bank
Yirzt Nctional Unic
First 2Aln:11 3ank
Firot National 3ank
Chilton N;Aional 3unk
nr3t. Nrtional Bqnk
First N44tIma1 3ank
,
NationAl Sarli of
CorrPxlroial National Bank
Flrat NW:onnl :lank
2onsi du Lno NntioAal 3ank
CltiRoh4 V;Aionta 3anic
nrst 2:atiowA1 !tank
AuAree
77
4i)
150
Borlin
31aot Ivor
!Palls
3r I
Chilton
Clintonville
A Pore
i
7ond (Iu Lho
tIP
OrsnA l'tnoide
60
38
36
44
16
,r
31,0
10
67
90
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-.2-
Wood Coluity National Bank
Citizen° National Bank
1ol1of;f7., National Bank
Z.cCartney National Bank
eirat National Bank
First Nat! nal Bank
rational Bank of
First rationva Bank
tephenson National 3ank
,lorican rational Bank
First National Bank
First National
it
first national Bank
rational Etanufcturfr.o Batik
First National Bank
First National Bank
!.;itiens National Bank
Oconto National Bank
City National Bank
Con.'lercial National Sank
Old Nationz4.1 Bank
Penhtigo National Bank
First National Bank
Firs, National Bank
German Nati nal Bank
First National Bank
First National Bank
Ce-r'mn_n American Nati:
,nal Bank
Citizens ratPnal Bank
First Mtion%1 Bank
First National Bank
Old National Bank
First National Bank
National German American Bank
First National Bank
Grand .a:d.de
Green 3a:
ti
It
Kaukauna
Janawa
,
Llanitowoc
iiarinette
"
Wrshdield
'
ft
lnasha
Neenah
pl
Neilaville
New London
Wont()
"
Cshkosh
0
Pcshtigo
Princeton
idoon
,,
Seymour
Shawano
"
i:itivens ..oint
Tir,ert-n
..
.
:aupaca
walAsau
ti
Weyauwega
Vory truly yours,
Secretary.
120
210
ilk
180
36
18
66
84
120
54
72
60
113
77
36
39
47
44
144
180
;:40
21
19
75
75
24
45
7;,
76
18
39
300
270
18
.
7
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•
FEDERAL R ESERVE BANK OF MINNEAPOLIS
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NINTH
DISTRICT
,1
/
1,c_<
OFFICERS
S.S.COOK. cAsHiER
THEODORE WOLID,Govr_RNou
DI RECTORS
W.H.LIGHTNER,DEPUTY
JOHN H.RICH,CHAIRmAn
)
CMAiRMAN
AND FEDERAL RESERVEAGENT
AND DEPUTY FEDERAL RESERVE AGENT
J C.BASSETT,ABERDEEN,s.oAK.
F. R.BIGELOW.sT.PAUL,MINNESOTA
E.W.DECKER.HiNnEARous.H.HH.
L. BRAN NA, CARGO, N. Da nor.
JOHN W. BLACK, HOUGHTON,MICH,
F. P. HIXON.LA
CROSSE,WISCONSIN
N. B.HOLTER,HELENA,HONT.
January 2, 1917.
Federal Reserve Board,
Washington, 1)„ C.
Gentlemen:We are sending you under separate cover
by registered mail duplicate copies of resolutions of
the Wiqconain mombew brulks
being tran3ferred from the
Ninth to the Seventh district, accompanied by a letter,
a copy of dhich is attached hereto.
Respectfully,
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
copy
ANK
JanU.Sity 2, 1917.
Federal Reserve Board,
C.
Gentlemen:enclose herewith by re;;.1-......r.;c1
in du.pli=te Di' resolutions adcr-ited b
he
il copios
oards of directors
have been transof the. fifty-tic V.13D011iiin member bnnks .Allah
ferred from the Ninth
the cortifinAtnn
istrict to the
Lromtli.„ together ;-,Tith
+his
Reserve Banks or Chica4;io alit itinaeapolis.
i;:ie certificates of apqroval have been El IE.:fled
by the 'z:ecretary
the Federal Reserve .3oard, -1111 you ple.ise
forward oaa set cf these resolutions to the ?oderal Reserve
DZ1 of ChicaGo, Lind the othof to us?
.1. ;tacined hereto is a lit showine the names and
;
locationsof the nember ban, the number of shares subscribed
4
icr and the amount of capital stoc- : paid in .by each.
Yespoctfulky,
33C: EC
•Sncl.
Cashier.
41444,4 A-4444t14,1(
6-er it,,,creitt4e
•
TRAri?.iRRD YRU
NATICNAL BANKS IN WISCCNSIN
DI....T2ICT NO, 9 TO DISTRICT NO. 7.
TO TAIC.E3FFCT JAIllatlY 1, 1917.
111,
0 L
0 -_
Name of Bank
First National lank
Langlado National Bank
Pt
Citizens National Bank
Appleton
Commercial National 3a:k
Ps
First rational 3ank
First National 3ank
Berlin
31aok River Falls First National Bank
First National Bank
Brillion
Chilton National 3ank
Chilton
First National Bank
Clintonville
First National Bank
Dale
National Bank of De Pere
De Pere
Conmorcial National Bank
Fond du
If
First National Bank
Fond du Lac National 3ank
Citizens National Bank
Grsnd Ranids
First ::ational 3ank
Wood bounty Nntional Bank
Citizens National Bank
Green Bay
Kellogg National Bank
McCartney National Bank
First National Bank
Kaukauna
First National 3ank
ilianawa
ntional Bank of ,lanitowoc
:Aanitowoc
First National Bank
21t1rinette
3tophonson National Bank
American National 3aAk
:Larshfield
It
First National Bank
First National Bank
Monnsha
First National Bank
'Aenah
ft
rat'l.:3anufacturers Bank
First National Bank
;oi1lovil le
First iltional Bank
London
:row
Citizens National 3ank
Oconto
Oconto rational Bank
City National Bank
Cshkosh
Comercial Natirnal Bank
ft
Old National 3ank
Peshtigo
Peshtigo Nntional Bark
Princeton
First National Bank
Ripon
First l!ational Bank
German National Bank
First Nati(nal Bank
Seymour
Ant Igo
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Ca-dtal
100,000
E0,000
150,000
150,000
300,000
75,000
50,000
25,000
50,000
60,000
25,000
50,000
125,000
125,000
200,000
100,000
100,000
100,000
250,000
200,000
200,000
50,000
25,000
100,000
100,000
100,000
50,000
6E,000
80,000
125,000
100,000
50,000
50,000
65,000
60,000
200,000
200,000
300,000
25,000
25,000
100,000
100,000
30,000
612rplus
20,000
25,000
50,000
100,000
100,000
25,000
12,500
7,500
10,000
12,000
3,400
25,000
75,000
25,000
50,000
10,500
50,100
100,000
100,000
50,000
100,000
10,000
5,000
10,000
40,000
100,000
40,000
55,000
20,000
62,500
27,500
10,000
13,500
13,000
12,000
40,000
100,000
100,000
10,000
6,000
25,000
25,000
8,500
City,
shawano
It
6tevons ?oint
$t
Tigertoll
Waupaca
Wausau
rt
V;oyauwer,;;:t
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Namla of Bank
Canital
6urn1us
25,000
50,000
First National Bank
40,000
,
Gorman—American Nat 11.3 ni k6,000
20,000
100,000
CitStens National Bank
30,000
10%000
First National Bank
5,000
25,000
First National !lank
15,000
E0,000
Om National 3ank
150,000
350,000
First National Bank
Nat'l.. Gorman Anerican
1,52;000
300,000
Br.nk
4,900
Firot rntional 3/1k
__5009.
_
•••
7cital....
,
1
c,570, as,a , '2-, / 2, 2/ 700
,
/<-11 /111
•
•
FEDERAL RESERVE BANK OF MINNEAPOLIS
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
NINTH
DISTRICT
OFFICERS
THEODORE WOLD,GovERNoR
S.S.000 K
CASHIER
DI RECTORS
W.M.L1GHTNER,DEPUTY CHAIRMAN
JOHN H. RICH,ClIAIRmAN
AND FEDERAL RESERVE AGENT
AND DEPUTY FEDERAL RESERVE AGENT
E.W.DECKER.m.NNEAPOLIS.M.NN.
J.C.BAS S ETT,AS ERO CON,S.IDA K.
L.B.HA N NA,FARGO, N. DAKOTA
F. R.BIGELOW,ST, PAU1_,NI N14 ESOTA
JOHN W. BLACK, HOU GHTON,MICH.
F. P. HIXON,LA CROSSE,VVISCONSIN
NB.HOLTER,He LENA,M0 NT.
January 2, 1917.
Federal Reserve Board,
Washington,D. C.
Gentlemen:We enclose herewith by registered mail copies
in duplicate of resolutions adopted by the boards of directors
of the fifty-two Wisconsin member banks which have been trsnsferred from the Ninth District to the Seventh, together with
the certificates of the Federal Reserve Agents of the Federal
Reserve Banks of Chicago and Minneapolis.
When the certificates of arproval have been signed
by the Secretary of the Federal Reserve Board, will you please
forward one set of these resolutions to the Federal Reserve
Bank of Chicago, and the other to us?
Attached hereto is a list showing the names and
location3of the member banks, the number of shares subscribed
for and the amount of capital stock paid in by each.
Respectfully,
SSC:IC
Encl.
•
WISCONSIN BANKS TRANSFERRED FROM THE NINTH
TO THE SEVENTH DISTRICT.
As of January
Name of Bank
Location
1,1917,
No. Shares
Capital Paid In
First National
Antigo
72
43600.
Laniglade National
Antigo
45
2250.
Citizens National
Appleton
120
6000.
Conmercial National
Appleton
150
7500.
First National
Appletcn
240
12000.
First National
Berlin
60
3000.
First National
Biadk River Falls
38
1900.
First National
Brillion
20
1000.
Chilton National
Chilton
36
1000.
First National
Clintonville
44
2200.
First National
Dale
18
900.
Nat. Banlc of De Pere
De Pere
45
2250,
Commercial National
Fond du Lac
120
6000.
21-l'at Nat ional
Fond du Lac
90
4500.
2ond da Lac National
Fond du Lac
150
7500,
Citizens
Grand Rapids
67
3350.
First National
Grand Rapids
90
4500,
Wood Count; National
Grand Rapids
120
6000.
Citizens National
Green Bay
210
10500.
Kellogg National
Green Bay
150
7500.
McCartney National
Green Bay
180
9000.
First National
Kaukauna
36
1000.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
National
Wisconsin Batiks Transferred from the Ninth to the
jeventh District.
As ofJan. 1,1917.
Fi-st National
Ma.na,Na
18
900.
Nat. Ban: of L:anito -loc
Manito3oc
66
3300.
First National
Marinette
84
4200.
Stephenson National
Marinette
120
6000.
American National
Marshfield
54
2700.
First National
Marshfield
72
3600.
First Nat ional
Menasha
60
3000.
First National
Neenah
113
5650.
Nat. Manufacturers
Neenah
77
3850.
First Nation, 1
Neilsville
36
1800.
First Hat i onal
New London
C itize ns
N at i°nal
Oconto National
1950.
39
Oconto
47
2350.
Oconto
44
2200.
C it y Nati onal
Oshkosh
144
7200.
Commercial National
Os:..koah
180
9000.
Nat ional
Oshkosh
240
12000.
Old
Peshtigo National
PeshtiE;o
21
1050.
First National
Princeton
19
950.
I'irst national
Ripon
75
3750.
Germ44 National
Ripon
75
3755.
First Nat iolaal
Seymour
24
1200.
First National
Shawano
45
2250.
Ger. Am. National
Shawano
39
1950.
Citizens National
Stevens Point
72
3600.
First National
Steve ns Po int
78
3900.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
•
-3from the Ninth to the
Wisconsin Banks Transferred
Seventh District.
As ofJau.1,1917.
Tigerton
18
900.
7aupaca
39
1950.
Wausau
300
15000.
First National
Wausau
270
13500.
Nat.Ger. Am. Bank
Weyauuega
18
4588
900.
First National
First National
Old
National
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
229400.
so•
3I"
'
87'
88'
47'
47
.
WISCONSIN
Douai°
SCALE •STATUTE MILES
ASHLAND
0
10
20
30
SO
4-0
73
0
,
/t4s
WASHBURN SAWYER
4
PRICE
FOREST
Zo
ONEIDA
POLK
BARRON
MARINETTE
RUSK
LINCOLN
ST CROIX
DUNN
CHIPPEWA
OCONTO
MARATHON
CLARK
4
PIERCE
EAU
LANGLADE
TAYLOR
I/
4
ISMWANO
I
/
CLAIRE
/ .
/
PEPIN
BUFFALO
WOOD , PORTAGE
WAUPACA
OUTA6AMIE
/
iii
I
Lu
JACKSON
Lk,
/
MONROE
LA CROSSE
JUNEAU ADAMS WAUSHARA
,0
WINNEBAGO
0
,V
AlAl?Ql/E77E
PO7DULj
1--
SHEBOY6A
VERNON
SAUK
COLUMBIA
DODGE
RICHLAND
CRAWFORD
DANE
JEFFERSON
WAUKESHA
43
LA FAYETTE GREEN
"*.
WAL WORTH RAC/NE
ROCK
—IKENOSHA
Note:
4.r
.
9/
.
JAN. 1. 1925
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The portion in red (25 c unties) transfe red from,
,
the 9th 14o the 7th F. H. District ef..'ective Jan. 1
1917, fljis transfer aff cted 52 rnericer \nks —
all Nati nal.
so'
es'
es'
2'
67
•
837
STATEMENT
OR THE ?RESS.
October 13, 1916)
The Federal Reserve Board today, acting upon the appeal of certain -Tisoonsin bankers, voted to transfer the territory included in the counties of Monroe, Jackson, Clark, Marathon,
Langlade, Oconto and Marinette, of 7Tisconsin, and all other counties
in the same State now in the Minneapolis District east and south
thereof, from the Minneapolis to the Chicago District.
No change
as to northern Michigan.
The transfer was made effective as of January 1, 1917.
Counties transferred. to District No. 7 from 9.
if:
2.
/
0
Adams 67 je Fond du Lac
Brown v ,Z Green Lake
Calumet / Jackson
Clark
so Juneau
Door
& Kewaunee
Ashland
Barron
Bayfield
Buffalo
Burnett
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Chippewa
Douglas
Dunn
Eau Claire
Florence
e' Sheboygan
c Monroe
Langlade
.er Waupaca
Oconto
/ Manitowoc
4 Outiagamie e Waushara ,
. Marathon
(Winnebaco
t
Portage
Marinette
..,--Wood.
o Marquette • Shawano
COTJNTI.$ renainir.Kin District No. '9.
St. Croix
Pepin
Forest
3awyer
Pierce
Iron
Taylor
Polk
La Crosse
Trempealeau
Price
Lincoln
Vilas
Rusk
Oneida
Washburn
4.-,
tto
\r"02
„4.-/
,
e
11.
€44_, T. ,
(./
1.•
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ot
76,4z,aric,„
Ai
--tt -6.
1 ,t2,1
;14b
aid
J
ryt„e( d,t
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
,et
14,‘.44-1/./
•
7/,
,-A-€4A44:‘-.
aue4.47,_
-p
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;(;104,
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es/Letzdrit,i_
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4
te
e -we
" . : ‘,4,,tot,ett," 1
he:77 : 4
6:
tt.C.1-44,
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EBSTER
CLA/BORNE UN/ON
MOREHOUSE
Q3
LMCOL
OUACHITA
LOUISIANA
MAD/SON
JACKSON
SCALE.STATUTE MILES
C.ALDWE1L
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TENSAS
32*
LA SALLE
SABINE
JGRANT
TJote:
RAPiots
The portion in red (16 parishes)
transferred from the 11th to the
6th
P. District effective
April 1, 1916. This trc„nsfer
affected 16 member banks — all
Ns ti
WASHINGTON
E. BATON
ROUG LIVINGSTON
%/Err
1/4110J0.
30•
IBERIA
33*
JAN. I. 1925
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Federal Reserve Bank of St. Louis
DAVIS
9•
91•
•
EX-OFFICIO MEMBERS
WILLIAM G. MCADOO
SECRETARY OF THE TREASURY
CHAIRMAN
JOHN SKELTON WILLIAMS
COMPTROLLER OF THE CURRENCY
CHARLES S. HAM LIN. GOVERNOR
FREDERIC A. DELANO. VICE GOVERNOR
PAUL M. WARBURG
W. P. G. HARDING
ADOLPH C. MILLER
H. PARKER WILLIS. SECRETARY
SHERMAN ALLEN, Ass's% SECRETARY
FEDERAL REEPNIVE BOARD
ADDRESS REPLY TO
WASHINGTON
kitmtifr
I it
'
..ivN441
FEDERAL RESERVE BOARD
558trA
A
i
My dear Sir:
On February 25 the Federal Reserve Board, acting upon
the petition of certain banks in Louisiana to be transferred fron
the eleventh Federal reserve diEltrict (Dallas) to the sixth Federal
reserve district (Atlanta), adopted the following resolution:
"RESOLVED, That ail of Louisiana north of the
parishes of Vernon, 11:7
!1_,nd Avoyelle_s_Xemain in
the Eleventh Federal Reserve District, tnd that the
remaining part of the State of Louiiana now in the
Eleventh District be transferred to the Sixth Federal
Reserve District, and the banks therein allotted to
the New Orleans Branch of the Federal Reserve Bank of
Atlanta."
I have the honor to inform you that your institution is
one of those thus transferred, and that the matter of effecting this
transfer has been taken up tith the two Federal reserve banks affected,
-which will advise
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Federal Reserve Bank of St. Louis
you fully concerning the steps to be taken.
Respectfully,
Secretary.
NI ORI2itS3
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v Jackson-Otate National 101k
• Paseacoula National Bank
Jaoimon
:Abaci ?ant
t- First Tat1onai Bank
Laurel
• Piret National Bank
LAredian
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Federal Reserve Bank of St. Louis
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Citizens Ilational 3ank
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ationa1 3ank
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3reokhaven,
;First Lational 3ank
Vicksbura
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,
Vicksburg
y
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Federal Reserve Bank of St. Louis
,Jcirciztnto Natierial .3ank
ViekablIrc
LIST OF BANKS IN LOUISIANA TRAN.;FERIT:D FROU DIliTRICT NO.11,
/
TO DISTRICT NO. 6. (NEW ORLANS BRANCH)
Ai
6
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Abbeville
First National Bank
First National Bank
Alexandria
First Natiorill Bank
Jeanerette
banks voting First National Bank
"Yes"
Calcasieu National Bank
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Lafayette
I
Lake Charles
First National Bank
Peoples National Bank
J
New Iberia
State National Bank
Opelousas National Bank
Planters National Bank
Opelousas
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First National Bank
Banks voting
"No"
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Federal Reserve Bank of St. Louis
ofer.
Ville Platte
First National Bank of Arcadia
Parish at
Crowley
First National Bank
De Ridder
First National Bank
infliCe
First National Bank
Lor-an City
Now Iberia National Bank
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"Yes"
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vOpelous.
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Planters National Bank
First National Bank
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Lake Charles
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Parish at
V First National Bank
d, Firt National Bank.
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
7JTTT
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A
TRAN5F1.R OF FIRST NAT:IONAL Rida OF NARA VISA, N.1€X.
Froiti
DISTRICT NO. 11 to DISTRICT NO. 10.
/
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Federal Reserve Bank of St. Louis
/2
741
f‘ei
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Federal Reserve Bank of St. Louis
TRANSFER OF COUNTIES IN WEST VIRGINIA
From
DISTRICT NO. 5 to DISTRICT NO.
4.
Name of bank
First National
First National
'armors 7: Producers national
First National
Peoples National
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Federal Reserve Bank of St. Louis
Location
:addleLol
,rae
:New Martinsville
Siatersville
Oistersville
Oistersville
*ital and Surplus
30,500
75,000
136,000
165,000
115,000
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Federal Reserve Bank of St. Louis
!ikv.1.611A‘10srif...
•
REC'D IN FILES SECTION
AUG I 2 1938
-0
BEFORE
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Federal Reserve Bank of St. Louis
THE
FEDERAL
RESERVE
BOARD.
IMO
IN TTTE MATTER CF TIT PETITION CF BANKERS IN NEBRASKA
AND wYmrlyn ASYINC T7AT T"E TERRITCRY CMPRISING
TITE SAID STATES BE TAT CUT CF FEDERAL RE—
SERVE DISTRICT NUVBEr TEN AND BE ANNEXED
TO FEDERAL RESERVE DISTRICT
NUMBER SEVEN.
Washington,
n. C.
February 3, 1915.
xxxxx
4
-
Reported by
Rexford L. Holmes
Shorthand Reporter,
322 Southern Building,
Washington, D. C.
-
:„IoLticmon, I 2up ,oce the
Tho Govornor of tho
potitionors, being the moving party., will HAT°
riTht to cifon
If them is no objection to ne.t course of - roce,lure,
and close.
we '6111 call on no counsel for the potitioner.
nr. j:runcis
and .yominc;:
,
Brogan, Ot- uncel for the
tates of ;ebracka
e have, I understand, an hour on each side?
`ho Govornor of the
I believe that is the limit
we usually fix.
Drogan:
;Aid we may divido that into opening end clos-
lug?
The 3-ovornor of the Board:
G. Millort
Yos.
should not object if you abbreviated
tho time limit.
iN(.2 BY 111., FR;IIIC IS A.,BROGAN, OF COUNSEL FOR NEBRASKA
AND WYOMING.
Iontlomon of the Board:
I appear for Judge Tellugh, who
proparod the briof for the petitioners.
nis is the petition.
of substantially 1- 1 the member ban . or Nebraska and ''yoming
1
s
to be transferred from the Kansas district to the Chicgo
district.
It . ;at! porhaps,a little unfortumte that practically
:
all tho information that was furnished with any dor7re° of earnest
:
nos
to the Organization Committee on the hearings
was on behalf
'of cities which wore cooldng the locution of the regional banhs,
afld it is especially unfortumto in this instance that at the
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Federal Reserve Bank of St. Louis
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
hearings in the '::est this part of the country that I now represent, had two candidates for re7iona1 bans, Omaha and
Lincoln, and naturally much of the effort that was put forth
to present facts and statements and opinions before the Committee was confined to a showing as to the claims of those
two cities.
I have no doubt the Committee itself sought and
obtained information as to the needs of this territory, independent of the ambition of one or two of those cities, but
on behalf of the banks themselves there was no earnest committee procuring and furnishing information and presenting
pressing reasons as to where this territory ought to go, after
the decision was made that there should be a bank at Xansas
City, lanneapolis and at Chicago.
2ose are the three banks
that might have been concerned in this territory.
I think it is perhaps appropriate to call your attention
to the difficulties which the Committee itself found with
this territory in the explanatory statement made by the Committee on April 10.
In a letter addressed to the
enate of
the United States, I find at page 369 their discussion of the
Zansas City district, and the reasons for locating the bank'
at j.ancas City, and I want to say that with that we have now
no dispute whatever.
After disposing of the claims of Omaha and Lincoln and
Denver, the Committee says:
V_
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Federal Reserve Bank of St. Louis
Now just what it was, what wore thee ircumstances, and
what were the grounds on which that vms deemed inadvisable, of
course the Committee did not have time in that brief statemant
to explain fully, nor have they been explained, anl we are
somewhat at a loss except as explanations may suggest themselve$
in the argument here.
It is suggested hero, -- I do not know
whether that was intended as the reason they include Nebraska
and "iyoming in the .12:ansas City district rather than in the
Chicago district, -- that after the district had been outlined
a
as it was formed it was found on'poll of all the banks located
in that district that the majority preferred :-ansas City over
any other location, that is, over Omaha or Denver,
Now, of
course it would be natural that a majority cyl the banks, if
we include all of Kansas, Oklahoma, and part of :issouri, when
put against the comparatively few banks in. Iowa and Nebraska,
would decide in favor of 17.ansas City as the location, and that
may be used as an argument for that location.
ralt on the
other han(*kit may well be contended that, although fewer in
number, still, as representing a large and importnt area
covering the two States in question, the interests of the
bans of Nebraska and '::yoming
be given most careful
consideration, although they do not aggregate a large percentage perhaps of the entire number of banks whose votes were
obtained for this large area; because,in the first place, the
banks of Kansas and Oklahoma and the other -portions have not
expressed themselves as to whether 1yoming and Nebraska should
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
be included in that district, and have had no opportunity of
doinr;' so, and moreover would have no right to determine that.
If that argumont should be given any force whatever, it would
be sufficient to justify any political gerrymmder where the
district is made up for the express purpose of securing votes, •
or favoring any action desired.
o I think we are justified
in not considering that as a real argument us to the que[tion
whether 4*eming and Nebraska should belong to this district,
leaving it rather to the banks of that district themselves to
decide the question.
Now i wish to invite your attention to that part of the
United 3tates which lies between the Mississippi and the
Great Lakes on the east and the 2.ocky Mountains on the west.
Of course, as you know, It is the great granary of the country,
and I am dealing now only with that part lying north of Texas,
between Texas and Canada.
It is cut up arbitrarily into state
linos, of course, but natural trade conditions have divided
it into three great zones, or trade routes.
:hey converge
at Chicago, hut west of Chicago they divide themselves naturally
and in the regular course of business into three groat trade
routes, -- one through the gaeway of Minneapolis westward,
and having as tributary territmr:linnesota, North and south
Dakota, and Montana, and to a large extent Washington on the
Pacific coast.
There is another one on the south, passing
through the gateway of Kansas City, and having as tributary
territograneas, Oklahoma, parts of Colorado, New Mexico,
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Federal Reserve Bank of St. Louis
and runninf: throuji to Ari4ona %11
tral route
incluaes Neb-
a E2.tcway,
,73ginf.) at Ozah'--.L.
Thee ara not oniy tr.z.de routc
and ryominz.
oontinental tr
Utah :114 the CoaSt. 7E den-
ic, iut theli are 2.10n
ur i4A)n,
in th t tcritory, Ja1,1
trade th •t ori!z;inAt
rouu coniuctin
for transfor
;lo hav
th,Ar bUsinacie and havin..,
three
iir
ditlnot, independent and ut4r-Lrate from
It iu r.robbly a little difficult for one not
each other.
vi3itin:: or livin
ly.:142k and forth in those
there or
States tt. r:11,7,0 the extent to -Thies
lines, without intrminaling.
excLtions to thi4; ther
crofine
thi-
mni quftritity
Awl run alon6 parallel
Th7e are vriationai there are
Are 4orrdie
,
of' traffic that
but the fact reminll that the isrcA bulk
eaut Alen we deml with the 1)roducts of that
1.1:ortu into that
region, and goel wet when wn deal A.th thc
region.
Tnor
io on: other fcn.turc of that region that I A.sh
briefly to refer to.
Probably there
re but few partz of the
there 1.6 an
world aa compared with Nebraska alone in which
ive to the
grev.t a volume of export and import trade relat
and I miL;ht
tr:_lotion'a :JAI in Nebr3ka, th t
becaue Nebraska
as weli incluJe Tyoming in thia Ittement,
more
and WyomiLL: aro exclusively ':,gricultur..l and pastoral,
1:art .of the United
alb in reference to Nebruka. th= any other
.croduot,; of the
States. Nebraska proluoo nothip except the
soil; the great
i.e.alth, arountin
in oxorts to hundredo of
501.
millions of dollars each year, comes from the
Nebrv.ska.
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Federal Reserve Bank of St. Louis
produces nothing else for its
consumption except from the
soil; everything of a manufactured
article that is consumed,
—
Substantially everything, -it Imports. r2he statistics wil
l
show very handsome manufactsrin
g products at Omaha, but out
side of one smelter which hap
pens to be located there—bec
ause
it seeks a lower level, I am
told,
there is no ore produced in ilebraska outside of
tht. The manuractured pro
ducts
are simply those which consis
t in a partial preparation
of
the agricultural product for
exportation elsewhere. For
instance, the packing 11011S02 in
South Omaha simrly turn
the
live stock and hogs into met,
but not for consumption
into
Nebraska, but for trans-shipmen
east; and that is true of
everything.
Now it is obvious that if con
ditions,
that is, if the
restrictions of the law upon
which these regions were
formed,
had permitted them, the logica
l and natural solution of
the
situation, would have been the
creation of three distri
cts
corresponding to those three
zones that I have des
cribed,
With Omaha as the center for one
, rinneapolis for ano
ther, and
:Kansas City ±or the third.
A little study of the cla
ims, how,
ever, of these three cities
will make it apparent at
once that
when it was -- that oven when
it was decided to make
twelve
districts insto d of eight,
it was impossible for
all three
to
Of them/have a bank, because
there is notiributary
to them.
the banJ7ing territory that wou
ld justify it, and
we concede
I live in Omaha, and I am
willinr7 to concede fre
ely -- that
because or the greater pre
ponderence or Kansas Cit
y and
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Federal Reserve Bank of St. Louis
Linneapolis, if there are to be but two banks in this region
that 1 have described, those two cities .:fc,re entitled to them,
and the controversy as to whether Omaha should Ilve a bank is
entirely out of this matter, and it must be, because there
is no room for a bank in Omaha, with the conditions prescribed
by law, when there is a bank in Minneapolis and 1::ansas City,
so we come simply to the question of what ought to be done with
Nebraska and Jyoming as territory tributary to some other bank.
Now I think I am stating a mere truism, thtA is assumed
throughout this entire discussion, that bank exchanges exist
only because of trade.
If . 1raska consumed ;11 it produced,
,
j
and produced all it consumed, I can imagine no reason for bank
exchanges anywhere outside of the 'tate.
trade between
They
It is because of
tates and countries that bank exchanges exist.
are concomitant; they follow the existence of trade
rolu,tions; and I think this is true as to bank exchanges tor
the greater volume, for it greatly predominates over others.
There are no ban
exchanges bet.7:een communities that have only
occasioinl Trade transactions.
For instance, there is some
traffic b6twoon southeastnrn Zansas and Omaha, 'because of pro_
ducts that are not produced in Nebraska, but there are no bank
exchanges bet7,een southeastern Kansas and Omaha business men
In that part of Kansas.
They may have transactions with mer-
chants in Omaha, but the baniTs located there would. not think
of keeping an account in Omaha'.
Par that reason they would
naturally observe the course of business whore tho volume of
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Federal Reserve Bank of St. Louis
s2p,
-- 1144a,A444144404
-
tmdc had mi:..turally led the -brit: (=h
ang°.
Uovir there is some minor dispute nerP ac
to thc extent to
Alich 3obraWrai ttrtIffic is east and ont
. It is point d. out
in the argumont that there is some chi
pmnt of cattle Trom the
southern parc o± ieb.rtolta into ansas
C14 and Into
6:7
Jooeph
iV1114Th lies botwoon these two cities
on the Amseuri Aver; it
10 t120 pointed. out somewIlere that there
is actually conci(lortne
tralalc In milk and eF713 from Nebras
ka and Zans to ;;e1rIver; and
somo other matTcre of that kind may
be pointed out; but the
Xct rominc that the great preponder
ating volume of the traff1
0
lie diroctly ut and'77est. - caue not
o
only is that country
cut up Into theKe zonce that I have
described, 7Tith all its
traftic runn1m7 east and w0ct, but Nebr
aska in likewise cut up into three parcliol linos by thrce p;rm
t trncrortation syctmc
th
handle practiccalY
its traffic). In the cantor in
the
'Union Pacitle • runran, Trent Omaha and
'
Cheyenne, nd connecting
with Ohicapm by moans of trarno arr
anrmmonts troua!.1. t- fe or
:
throe of the trunr lino bot,7oen Chp
ago and :matin g rIn0 nat
uraly
turniohlir traffic to all of 1; cm.
Uorth of thwl the country
In ocupied by the ellicago and Nor
twestern, vnieh ontrn atOmah, and Axe north or.Omaha at
a junction, and 7oos
through
Wyoming, and handlo products from
tilrourh northern
Noz;racka
21(i Chico ooath of that.
This furnishes the only
mdification or the brwA statement
I have made.
outh
thA;
in to TAIrlington 2ystom onterirr at
(Imaha, and also at a
junction couth of (4Tiah, taid.
cross the entire sti,te to
to*
V
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Federal Reserve Bank of St. Louis
—
Denver, with numerous branch lines,
‘10 a connection to St.
Joseph on tne river, and through St. Joseph to l'ansas City. Now
t vt ono line of tne Burlington
MP WM
it has two or throe lines
one line runs througb. zaon,1: the state line.
In fact it is only
a few miles from the :rAInsas line, ana serves the towns in the
southern tier of counties, and there is come traffic, I concede,
between that one part el_ 11oraska u1. Zansus City.
It divides
that traffic with Omaha, but the tact remains that a large part
even of that minor tr ffic goes through St. Joseph, and on east,
instead el' to 2 -anss City, -- probably divides in some respects.
7e11, then, the question is, how ettn the facilities which those
banks wore intended to furnish the local bLlakr..1 best be furnished tho bunr.s in tills tcrritory?
I want to cell attention here to the two maps that were
presented on behalf of :ansas City and 1!..Inneapolis in the hearing before the Com -ittec.
The if:ansn.s Citr banh map is found
on pa7c l7b of that report, and the L'Inneacolis map is found
on page 2315 (produces maps bcforc tno board).
significant on this question.
The:, are rather
The TAnneapolic claim, you will
.ce, recognizes :he existrJnco of this zone, -- et one of the
three zones -- that I have descritoa.
It ma'es its claim for
a district with Minneapolis as 'Cie reserve centr near the east,
running clear across to the Pacific.
Kansas City mW7es its
claim for a district somewhat simil:r to the one allotted to
it, hut it runs it along the Eime general theory, although it.
does not ..1a,To it as elongated as the other.
It must be re-
membered that both of t7lose maps -- both or these claims
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Federal Reserve Bank of St. Louis
-
.410•11..
,
were presented at a time when it was not known whether the Or• i ganization Committee would form eight districts oe twelve districts, or some intermediate number, and both or these claims
were on the theory that there might be only eight banks, and
,
that each might be entitled to o- le or the eight, and naturally
• they claimed a larger territory then they would have claimed
had they ',mown that teelve ban's would be established.
claims clear across to the iacific, including
77inneapclis
ashington.
think the Committee cut that down when they decided to form
twelve banks.
-ithough the district allotted to them ;lac some-
thing like five and one-half million dollars cepital of its
Us, yet it would have had over nine million dollers capital
if it had got what it claimed, -- IAA that is a minor concideration.
They TaPeparod this map, preseing their claim for one
of the eight banks, and also included this information evidently
from the benr accounts in the territory carried in Zansas City
banks.
They nave aide up tnis descri tioa of the relation of
the county to Xansas City, and have dotted the territory that
:they claim with the location of baeks that carried on business
with Kansas City banes.
You will soe while 'they absorb all the
banking business of Kansas City, and de considerable in western
Missouri, and practically dominate in Oklahoma, and roach into
Texas, New :fexico and Colorado, they =le claim to do business
with a small portion of southeastern liebraska, and make no claim
as to
yoming, and do not include
yoming in the circle of the
. ; proposed district when they were claiming to be one e -J7 the eight
clistricts, showing as to more than five-eighths ef Nebraska
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Federal Reserve Bank of St. Louis
_
there was absolutely no 1)ankiw7 business carried on with Kansas
City at the time this claim was prepared.
In the discussion also in the brief presented by Yansas
City, it was intimated, while they w re claiming to be one of
the eight banks, that if the Committee should think wioc to
locate Omaha in some other district, -- it could not bo assumed.
that Omaha would have the ban, but that Omaha should be located
either with hinnoapolis or Chicago.
Eansas
Then the applicants for
City conceded they would only claim the southern half'
of Nebraska, but even that would incluae a great deal of this
territory in which they had at thnt time no ban7
,71n
business
whatever.
Now there wau no similar map prepared for Chicago, but
from figures we submit here it is evident if you show the relation of Chicago to the territory west of it in the same
manner
that the atnsas City relation is shown by these dotted maps,
you will find Iowa and Nebraska Lind considerable of 7:/oming
dotted over with local banks that carry accolants in Chicag
o and
carry on regular business there, and did so all through.
Now I do not need, I think, to tae uj with counsel
here
a discussion of the min()r questions arling in controversy
as
to whether trade in Nebraska flows east and west; thai
is so
well known and so well establis7ted
at one could almost take
It for granted, -- as we say in court that the court
would take
judicial notice of it, -- but porhans we do not
need to do that,
because on page 370 of the report made by the
Organization Corn-
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Federal Reserve Bank of St. Louis
mitLee, in discussing this very situat
ion, and the reasons why
Yansas CM should have the ban and
Denver should not, they
say, the great preponderance in the mov
ement of trade in Distill
liumber on is to the east. Of course
, they are merely stating
a condition known to everyone famili
ur with trade conditions
in 'Wu) Uni'Ged States, and connected by the
se lines of railroads. •
Counsel presents here an extract of
the IcAimony given
in Iineoln, when Iineoln was -lying proof
in supliort of this
claim for the banx, that trade will flo
w north and south when
the canal is opened, that the preducto
of Nebraska will u o
7
south to go through th t canal. I do
not know where they would
go, nor what they would do with them. The
y ;:re shipped into
the eastern i,art of the United ?tatcs and
to Europe, and no
place else is there a demand for the pro
ducts of 2rebrc.ska except in tho gm:A centers, w".ere food stu
ffs ar: not produced
to the same extent to .111.ch they are
consumed. It has been a
dream of that part of the country for
some time that north and
south traffic could be developed in
some forced way. :veryo
familiar with conditions there wil
l recognize tbat attemp
ts
have boon made to organize north and
oouth railroads. 7Xfort
s
for developing barge traffic on the
A.speuri have been develo
ped, but as a matter o, fact any lun
y efforts of that kin,
' ays
alw
havu been and will be ineffectual,
because trade _loves
towards
causes that are greater and indepe
ndent of any artificial conditions, especially a trade of
thls kind where the produc
t is
almost wholly exported and the
consumption is almost wholly
imported.
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Federal Reserve Bank of St. Louis
,
flow wehave presented some figures hero; I ':1sh to refer
to them briefly, because couns-ol makes the point that they ought
not to be considered; but they merely illustThte the proposition
that I have been T)resenting, and which is established from so
many independent sources.
In the preparation cf this brief a compilation was made
from the cards carried, by the banks of Nebraska and Tyomin,7 in
the Bankers' Encyclopedia, a recognized authority published,
in Now York City, and the computation made up is as follows:
That of the 220 national banks of Nebraska 136 list a corrospendent at Cl.icego, 194 a correspondent at New York, 199 a
corrospondent at Omaha, 39 at TAncoln, 36 at 3Toux City, 17
at St. Joseph, niMIOUTi, 11 at St. Louis, and 10 at ransas City.
Now of the 32 national banks in 7Jyoming, 20 list a corrospendent
at Chicago, 01 at Omaha, 29 at New York, and 1 in
'.s.lnsa.s City.
It is conceded however, that there is some otho:r. lyusiness with
the banks.
They may carry accounts for the purposes of collect-
ion, but t7:iese are the listed advertived bankt:Ig relations as
pointed out here, and wo thin
it is significant as showing
that the banks throughout those two ,tf:',.tes understand and 'elie
and oxpeci they will be called upon to f-rLish exchange and
banking facilities directly east of them, because of the flaw
of trade, and will very seldom be called on; only a few of them
in one pert of the territory will be called on -- to fl,.rnish
facilities in Kansas City which is Tqtside entirely of the zone.
There is also a comilation of a laro numlr of the banks,
but not all of them in Nebraska, made
(lurinp7 the papt year,
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Federal Reserve Bank of St. Louis
showing the number of items TimIdled in the course of
the business.
The volume is very large east, and almost none
north
and south.
Counsel complains of them that it admits a smal
l pert of
Thshington.
Jud7e Goodrich:
Practic:tlly all.
Mr. Brogan (continuing):
Practicall7 '1.1 of that ti.r
of counties I have described ashavinf): a ra!lroad whic
h connects
with St. Joseph and through there with KanDs uity
.
Jud7a Goodrich:
Three :railroads.
!rogan (continuing
.):
railroads.
Oh, yes; there are two other
One is the Misouri Pacific, which has a few
linen
in southeastern 7ebracka in this territory that could be
considered. as common; it is about one-sixth of Nebraska
, and because it is seekin7 north and co-t t:L.ffic. It is
a well
known fact that the statements furnished by the
Missouri Pacific
to the Railroad ComA.ssio in 7ebraska show that
its revenue
from that part of its line does not pay operatin
7 expenses alone,
to say nothing of returns, and the same is true
of any line
that attempts to 7o countr to the natural flow
of this trade.
The north and south line, no entire trade of that
country
rest of the lassouri or west of a line half
way between Miss
ouri
and Mississippi, will 7et no traffic, or not enou
gh to pay
opereting expenses, but assuming that this
statement as to the
items handled in and out of the banks does
not include that
po. ?tion, tInt strip of counties alonn the
)
south of Nebraska,
yet it shows that as to all the rst
of this territory there
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Federal Reserve Bank of St. Louis
is practically no business whatever transacted with Zansas City,
and all the business comes east or goes west.
New there is one other proposition thnt I , ant to ure
'
here, and I think it is very important and very significant
that of the 218 banks in Nebraska that have joined this association, -- this bank, -- 203 have signed this petition, and have
asked to be transferred to Chicago.
Of the 30 banks in
member banks, 28 have signed this petition.
',, min7,
In other word,
out of the total of 248 in that territory 231 have asked to be
transferred.
I assume that these banks that are thee to 'serve
the trade, thc,re It,o serve the public with banking facilities,
and who have been trained all their lives to knew how the
public required to be served, and hew it must be served, in
banking business is to flourish, that they know where their
business must be done, and where they ought to be located, and
to what bank they ought to be related.
No ether reason can
be ougc7ested for their joinin,7 in this petition except the conditions as they find them, 'mil as they believe this is no longer now the Question of an ambition of the yfarticular city or
anything of that sort, -- nothing like that can eater i
here;
and it Seems to me the remarks of the Committee in dealinp: wj
one ether controversy were very pertinent here, and I want to
roe?... them.
In disposing of the claim of New Orleans for a
regional bank, the Committee says, at pae 368:
"New Orleans
rfew lexice to the
Texas, Louisiana,
Georgia, and that
selected a district-extending from
Atlantic Ocean, incliin.g all of
Mississippi, Alabavr, norida,
part of :ennessoe south of the Tennessee
.11111111sa.
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Federal Reserve Bank of St. Louis
7.iver."
Now the Committee proceeds to deal with the objections
that arose from that territory by New Orleans:
It was repreeented by ijexas that it would do
great violence to her tredo to connect her with New
Orleans. It was claimed, and evidence was submitted
In support of the claim, that her trade was with her
own cities or with Kansas City and St. Louis. In a poll
of the banks of Texas made by the Comptrollerof the
Currency, 212 banke expressed a first choice, 121 a
second choice, and 30 a third choice for ialias. ro
bank in Texas expressed e firot choice for New Orleans, only 4 a second choice, and 44 a third choice.
The whole tate rrotested against being related to New
Orleans.'
That was considered a proer element to take into account in deciding against the claims of New Orleans that the
territory they must include was protesting, and showed its
business currents flowed in another direction.
"Me banks of elabema generally desired to be
connected either with Birmingham or etianta, only
.3_exprooeing e first choice for New f:Tleans, Jhe
batehlt of Georgia desired to be connected with etlanta,
none expressin6 a first or second choice for ':'ew Orleans, and only 12 a third choice. They represented
that it would do violence to than to be connected
with a city to the west and claimed that their
relations were mainly with etlanta or cities to the
northeast."
end so :ith A.orida.
The benks of that state apperontly
felt that if related to New Orleans they would be doing violence
to the trade currents, and so would Tennessee.
'rGenerelly speaking, the only banks which jesired to
be connected with New Orleans and expressed a first
f,roreroneo for her were 25 of the 26 bani7s reporting
in Louisiana, and 19 of the 32 in ;Asoiseipei. 0n a
'Poll made from the comptroller's office of all banks
expretislAg their jro..Jeronee as to the location for a
:odoral reserve city, 124 expressed a first preference'
for etlanta, 272 for :eallae, and only 5e for New Or-
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Federal Reserve Bank of St. Louis
leans.
he views of the bunk'ors wore sup:orted by
chambers or commerce, other business org'nizations,
and by many busineSs men'.
"It will tnus be seen that li the committee was
to give weight to the views of business men and bankers
in the section or the country aff ctod, to consider the
opposition of the .:tatos or Texas, .labama, Georgia,
Florida, ana TenneoLc.e, and to be guided by economic
considerations, it could. not 'r,ve designated New Orleans as the loction or a reserve bank to cerve
either *Me western or the eastern part of the district
that city =zed icr. :ho course of VusineLs is not
1
rroll thP Atlantic seabourd torard New Orleans, nor
lar-ely from the state of _exas TO that city, .<.nd if '
Dallas and AtaarM) had been related to New Orleans
a bettor grounded cemplainT could and would have
boon lodged by them against the committee's decision
,Jdo by New Orleans.than that m,
Now I thin - that is an important consideration, that
whether you are dealing with the question of locating a bank
at a certain city, and the necosm.lry territory you would have
to give it in order tnat it might have a bunk, Or whether you
wore dealing with the question whether a particular territory
should remain in the bank to which i
was tlessigned, or should
be transferred to some other district, the *wishes of the bankers, based lion the subLtantia.1 ground ttat tr de currents
ilow in tile direction to which they wish to be relLted, is
the most important considerotion that could io 1:resented to this
Board.
Naw I do not know any reason why this should aot be done,
The representatives of tt.le Ban, in teir brief give no reasons,
except they dispute the comp1etenes2 of our statements; they
dispute our sttoments as to the totality of the flow of
trade east and west, and as I say,
70
show that in minor points
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Federal Reserve Bank of St. Louis
here are variations and_ concede that there is a litle territory
long the south line or Kansas that is disputed ground, you might
say, as TO the traffic from Omaha and east of Omaha and Xansas
City and
•t• Joseph, but it does not at all modify the main
idea that the great volume and bulk of the business roes that
wf-ty, that the great volume and bulk of the proper bafl
exchanges
out3ht to go with the trade.
There is onl:/ this one additional suggestion to make in
that respect, and that is as to what effect this will have in
the X'ansas City bank itself.
I apprehend that the nere selfish
desire of n bank, as a local entity, to have as large a holdin7; of stock and as large a business and he as prosperous as
poseible, should not weigh for a moment against the needs and
re
wolfare of a particular territory, because that wP not the
Urp000 of the organization of these banks. It was primarily
to 3erve the public through the est ,blishment of a new method
1
of banr exchango to the banns of tne country. 7!ut we only .
take out of the ;!;.annas City bank about a million six L_Indred
thousand dollars of banking cpital if tile entire
tates of
Nenraska and 'dyoming are transferred from 'ansas v'ity to
Chicago.
'2he Governor of the Board:
That would that leave the
capital at :Kansas City?
Yr. Brogan: Cloe to four million.
Judge Goodrich:
The basis of national banks would he
only about three AJlion, nine hundrod thousand.
ldr. Brogan:
Yes, but with the additional subscriptions,
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Federal Reserve Bank of St. Louis
t runs a trifle over four million, and I want in that connection to call your attention to a petition by certain banks
In southern Oklahoma to be taken out of the Dallas district
and added to Kansas City, because they say their business is
largely with Kansas City rather than in the direction of
Dallas:.
-hile it is not proper for me toefer any sugrest-
ions as to whether that matter will be decided in favor of
theHe petitioning banks or not, still this Board will necesarily
consider the two petitions togcther, and if found that upon
a shooing in this :qatter that a large part of Oklahoma,
that part which Kansas City showed was directly within its sphere
in t is map, -- you will see their claim:- for all kinds of
bank business runs down to Oklahoma.
:low the petition is to take not quit(, all; leave a little
corner hero at Dallas; and. they claim between that and the
present line which will add a banking capital of threc hundred
and sixty or eighty thousand tlollt,rs to the Kansas City bank.
I submit that that question of the sufficiency of banking
capital is a question to be determined independent of the (juesticn
when, Nebraska and 'yarning should go.
.;urely it is not to be
contended thnt an intermediate territory like Nebraska and
'yoming is to be sacrificed in its banking and business interests
In order simply to secure the success of a system.
If the
problem arising in connection with Kansas City and Dallas and
St. Louis cannot be otherA.se worked out than by sacrificing
Nebraska and. 'yoming, then ther
thal should be adjusted.
is ;IornethiJg wrong down there
"hat it is is not for ts to say, but
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Federal Reserve Bank of St. Louis
the difficulty ought not to be addled onto Nebraska and 'yoming
It Is right.and proper that Omaha should be denied a bank in
view of that situation, because a claim of a particular city
to a bank is not a claim entitled to any consideration on
account of its interests in it, but a claim of a territory to
bank service is entitled to the first consideration.
Now just a word about the powers of this Board.
I aseume
you will take counsel with your legal a6visers on that questior;
but we note the rather extraordinary claims made hero in the
brief that this Board is without power to take this notion
unleee it is chergod in our petition and proved by our evidence
that the action of the Organization Committee was due to some
fraud or grose abuse of power.
Jude Goodrich:
contains.
Hardly n fair statement of whet our brief
If you will read it, I will have no objections.
r. lirogan:
I will read it; it comes very close to that,
if we do not :A
.nte just that.
However, if you wish to dis-
claim it -Judge Goodrich:
I do wish to disclaim it in the language
you used.
irogan:
All right, lot us see.
(Reads:)
"Me rule ordinarily applying to the review of
the action of 3oards sinner to the Organization
Committee should be applied in this matter, and the
notion remain undisturbed Anless it clearly appears
that its decision was so arbitrary as to be palpably
In disregard of the evidence, or was not made in Food
faith, or was the result of fraud."
Now that is the claim.
Judge Goodrich:
"Yes, sir.
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Federal Reserve Bank of St. Louis
Mr. Brogan•(continsing):
proposition.
That is
of this statute.
and I take issue with that
: stal misunderstanding of the language
.
-
ection 2, providing thal; the Organization
Comslitte.e shall organize these districts, states:
"The determination of said Qrganization Committee
shall not be subject to review except by the Federal
Reserve Board when organized:"
Now the district thus created might be re-adjusted by the
Federal Reserve Board.
"Provided, That the districts shall be apportioned.
with due regard to the convenienceand customary course
of business and shall not necessarily be coterminous
with any State or States. The districts thus oreted
may be readjusted and new districts may from time to
time be created by the Federal Reserve_Board, not to
exceed twelve in all."
Why I think it is fair, and I have no doubt the legal
adviser of this Board will so advisk ,you that this is an
original grant of power, that so far as legal powers arc concerned you have precisely the same power in readjusting these
lineethat the Committee had in making them.
You are given
you get direct from the act of Congrrss power not just simply
to sit as a reviewing court with narrow technical powers, but
to do exactly what the Committe- ought to have done, and to
do it on your independent judgment and on the situation as
presented here.
I do not 'think there is any room for dispute
about that.
Now there is one other point I want to call your attention
to, -- the language of this act.
It would not se advisable
for me to at empt any broad statement as to the purpose of the
statute, but so far as concerns this case itself, perhaps it
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Federal Reserve Bank of St. Louis
is absolutely concluded by the language of the statutel
"The determination of. said Oreanization Com/Atte°
shall not be subject to review eecept by the Federal
- eserve Board when organized: Provided, That the disricts shall be arecrtIoned with due reTard to the
co)evenience and customary course of business
That ie a mandatory provision of the statute; it
on the Comnittee,
VMS
mandatory
It Is randatory on this Board, that these
districts, -- loth the location of the cities and the fixinp:
of the boundary lines of the districts,— the assiRnment of
territory Cloull be with due ree-erd to the convenience and customary course of business.
In other cords, it was not in-
tended, as Kansas City is bound to arFue, that a new relation
can nprinF up, that a new course of business may be artificially
created by the location cir the bank at Kansas City.
That wes
not intended; Congress has forbidden thnt, and has expressly
fieclarod
it and has declared it emphatically.
It is put in
here as a proviso, -- provided that the district shall be
apportioned "with due reeard to the convenience and custorrary
course of business."
Now if it
iMpossible to do that in
cases of small particular pieces of territory, why of course
that is one of those things that must be disrerearded as minor
matters always arc, but here is a territory corTriciee te'c hundred
and eighteen banks, with, as I have pointed out, an innense
traffic in proportion to its wealth and population, an tmmense
t
raffic duo to the fact that it exports practically all of its
imports end exports, practically all it coneumes, and that all
1 •
lie export traffic is gathered to the 1:issouri Tilver by these
bree
t
great systems Or railroads, and carried along east from
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Federal Reserve Bank of St. Louis
there, fenerally converging in Chicago.
That is the condition
of things, and that's the customary course of business etIch
the Organization Committee and this board is commanded to have
due reesrd for in the fixing of these lines.
ADDESSY JUi)G1 GOODRICH, OF RtelIASCff AND GIXDRICH,
1,0Un1 FOR THE FEDERAL RESERVE BAMT OF
CentleMen of the Board:
KArsAs
CITY, VISSOURI.
Mr. Brogan apparently miscon-
ceives the point made by couneel for the Federal Bank of
Kensas City in the brief, with reference to the manner in
which this natter is to be considered by this 'Board.
..s wo
interpret the provisions of the ect creating the federal reserve system, Congress did delegate to the Organization Committee the duty of dividing the entire country into twelve
or less districts.
It enjoined unon then the limitation that
they should aprortion the country with due regard to convenience and the customary course of. businose.
It did not
enjoin. aeon then the solo duty of apportioning the country
with reference to convenience, nor the sole duty of epDortioning the country with reference to the customary course of
businese, but instructed them to take into consideration both
of le oso factors.
Nov; the terns "duo reenrd" are terms that
have well defined
significance, and, as I find them to
legaii
be defined, they mean that it was the duty of this Organization
Committee to have a just and felr regard ror ell of the facts
that appeared before them at the time of their respective hear-
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Federal Reserve Bank of St. Louis
ings, of all facts of which they could take judicira knowled7e,
and of all facts which they themselves knew.
ITco this promkeding is in the nature of an appeal fror. the
decision and TThding of the Orgaizatio. ComAttee.
These gentle-
core before you as the final arbiters, and they say to you
that you ought to disarrange this district as created, that you.
ought to segregate a part of the territory from it and rut it
elseAlere, bcause the lower or subordinate body, whose fction
you are reviewing, was guilty of a violation of the duty enjoined upon them.
Therefore, I say to you that the rule promulp7.atod
by this Board on. the 28th of August, in which you outlined the
system of procodure in a case of this kind, was a fair one, and
it contemplates that you gentlemen, in considering this matter,
simlAy review the record as made before this Committee, as an
aprelatc court would review the testimony of an inferior body.
And T say that when you examine the record, you are boutid to
roach the culclusio: that the Or7an1nation Com.rlttee discharRed
its
ut les well and wisely.
Th4 ,qrganization Committe
has told you the formula. or the
plan whereby it attempted to perform its difficult task of
dividinr this entire country into twelve separat
districts.
-
and distinct
That appears in the letter of April 10, and I need
just to call to your attention, for fear that you nay have forgotten, the sum-ary that I have nude on page 14 of this brief,
as to the factors that they say they took into consideration in
arriving at this apportionm:Int.
They say that they first took
into consideration the ability of the member banks within the
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Federal Reserve Bank of St. Louis
7f^
,
:
i
d
district to provide the ninlmum capital.
They took into con-
sideration, second,
"The mercantile, industrial, and financial cornecbetions exiting in each district, and the relations
ns of the district and the city
tween the various portio
selected for the location of the Federal Reserve Bank.
- Third. The probable ability o the Federal :eserve Bonk after ortmnieatior to meet the leeltimate
demands of business.
"Fourth. The fair and equitable divisioe of the
he 'oeral Reserve Darks among
available capital o
districts created.
"Afth. The general geoFrarhical situation of
the district, transportation linos, and the facilities
for speedy- connection between the 2ederal 'Lieserve 1an3:
the district.
and all portions
"Sixth. The population, area, and prevalent business
activities of the district, whether agricultuxal, menufacturin, mining, or coe-ercial, its record of growth.
and development in the :past, and, its prospects for the
future.
- Seventh, The Committee endeavored, as Tar as
practicable, to follow State lines."
I want to cell attention also to the fact that the Conptroller
of the Currency for the raet eighteen years has classified
rebraska alow7 with Yensas, Oklahoma, Colorado, Wyoming and
Montana as the "western states."
It's a natural claseifioation.
It's one that's based unoi the ^revalling industrial activities
of those states.
Now we find that this Board was beset with aPrlications
from tl- Irty-seven different commercial centers in the Upite0
Niates, each one clamorier' for its place as the arrropriate
location of a federal reserve bank,
e find that in this
ietical territory the bans o' Colorado came forward with
Denver as a candidate.
The banks G
ebraska were divided in
their allegiance between the city of Lincoln and the city cYlf
LV
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Federal Reserve Bank of St. Louis
Omaha, and. Kansas City was rut' forTard as a. candidate.
Not one
word wao said before that Orgaml.zp.tion ComIttee by anybody
who appeared before it from the State of
the state of
obraska ought to be linked
benk at Chicago.
Avt one word wa
ebv- E1a. 2ayinrr that
:
fi_th a federal reserve
aid by anybody who appeared
before thIA Committee at that tine c1almilv7 t1:A 7rebraska woula
be outraged or its commercial industries ruined IT it were not
linked with alim70.
the vote of all cf the brAnhs in this
.
tc:rritory was taken, only nine bt ks in the whole District No.
,
10 voted for Chicao as their first choice, and forr of those
banks wre in the Aato of nssotri, and Live in the State of
Debraska.
Ur. Brogan argues for 4oming.
At the hearing in Denver
the Wyoming bankers were there in force, end they contended to
&man that
yarning ought to go to Lenver.
There is another very significant thine that I desire to
invite your attention to before I fro to the considoratior, of
some of the facts that are nortirent to that controversy.
The
Comptroller's report for the first of January, 1914, which is
set forth in ti letter to the 'enate, on page 365, -iveo a list
of the location of the discounts mar! by a large number of the
national banks of this countr7, and classifies them by
tates.
It shows the discounts rade, for instance, in the
3tates, in what wa':! tomed the eastern :'tates, in what was
ti:rod the southern states, and .;'hat was termed the States in
,et, and the wostern 2tates and the Facific
tho middle (
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Federal Reserve Bank of St. Louis
.4sI have oaid before, the Comptroller of the Currency has
alasolfied Jebraska as beihg in that group knowr ae veste- rn
States, and Wyoring, Colorado, Kansas, and Oklahora, are 11)0Swise
-Ur, Brogan (ilitorruptin0:
akota also,
Judge Goodrich (confirming):
tontana, also
?eo, the two
e•Ifotan, and
thaouri Jo olfyxsificJd as a niddle wer3tern :tate.
?out thoso statistlos show that on Januery 14 Chicao haej loaned
to tho western
the iteetern
tatf)s about -- tho Chiang() barks 1W loanod to
tates about -- eleven Trillion NAlnrn of its
' capital, thnt :&an$as City had loaned to the very sem nt;iteill
tionty-one million dollars of Ito onOtA, and Omaha twenty*
eight rillior dollars of its capital, whicb shows ocinclusively
that aw+
4
very time the bfrr of Thren8 City were surplying
to the T7,eople of this territor
wa
twicc the mount of roney that
being then sumaled by Chicaro barks,
Now it is hardly rorth while for no to argnr) to you gentle*
wen relative to the natural r(!sourtlecs of the territory embre_ced
ir Ostriet No, 10,
Mr, Broan attempts to 1. 7“71ante that there
1
is acne alselmilarity In the netrrtA industries and the
activities
that. are being c;irrie on by the rPorle In thAn tnrxl_tory. If
there LF) aissinilaritien
do not
torritory, those aissimiarlties
7:1,A; lqAwocnuul
bctwoen 'obro. ka, 1<.,:arlse43 an
8
:our 1, nor do they rnAst
Orlvhorr, because the antes of
Nebrultka, Kansas, Oklahom, an
i.htt part of .ivcou.ri incluaeol
-
_
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r
witbin the federal reserve Mstrict .1o. 10 are identically
similar.
It must be conceded by everybody that the industries
It
of those locrilities are those of farminr and stock rLis1.rle3..
As true that in Oklahoma and Yansan, by reaeon of the recent
discovery of oil and gas, there has sprung up in that territory
other business activities, but taken an a whole, these territories are alike in their nutural resources.
Mr
an a-ks me why I have not pointed out in the
Brcv,
I ask him
brief how Xama=7, City would be hurt by this cham3e.
why he has not told well t;entlemen how the 'Ante of
ebraska
would 1:e hurt by boinu compelled to stay in this district.
He
has .aned about -encralities, he has talked about the course
of trt;do, but he has not civen you one example, or one instance,
or one argument, that ought to be sufficient to satisfy your
minds that a sinle bank in the :T,tato of !ebrr,ska would suffer
any injury diatevor if coin elled to remain in this dictrict.
The brief 1)repared here irtdic:tes thet the bankers in
l obraska
have heretofore hn6 their busincsL, affiliations and as:ociations
,
with the ban's in cillen r..ro, and there-for if a iTebrauka bnrler
desires to discount his paver or nemtinto a loan, he will be
known to the Chicago banker, and will get morn favorable and
more expeditious treatrent: but 1".17. Yates, who n name appoars
upon this brief, the
resident or the
,
ebrash 'ntional Bank,
at the time of the hearing in Lincoln, when interrop;ated by
the Secretary of the Ireasury, WAO suggested that he was
Pursuing sl line of ar. ;ument that might cause the whole thing
?
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Federal Reserve Bank of St. Louis
_,t; go to Chicago, used tlAs ve7y pertinent and significant
langu-Te:
-If we should go to Jhicago, what would Chicago know
about 1,ebraslia or _Kansas or -olorado or ontana or
yoming? It would know nothing, while alost any
1ieldras;7a balakor oould inow a great deal about it."
low I say to you, in this conn, ction, if I may be permitted
to go outside of the record so fur, that it is notorious that
the bank in .t...ansas City are officered by men recruited from
all of that western country: there are many officers in ':ansas
City institutions who 1;,t e received ttleir banking experience in
the
tate of :obraska.
And I undertake to say ' lso that if a
vote could be taken upon tho pro:pssition, it —ould be found that
more bunkers in the
of Deraslm are acquainted fith Yansas
City bankers than are acquainted with Chicago bankers.
:Tow for some of the facts showing that li_ansas City does
have in fact v ry substantial relations with the :Aato of i;ehrriska.
Yr. r,rogan ,ould have you believe that Eansus City is a sort of
terra incognita to Toliraskans, th'A it is almost an alien country;
but I undertake to say that this r cord justIfies the statement
that foe south thirty-nino counties of ilebrasha do more business
with St. Joseph and Zalisas City, wl,icr- are to the southeast, than
they do with Lissouri or any other locality.
I undertake to sa;i that this r-cord shows that thourth/the
Organization Committee had the 'benefit of a r.rent deal of data
which is only condensed in a letter to the United (
,:tates Senate,
this data -f.s supplemented by very el.borLte maps, copies of
which are on file with the report of the Organization
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it
I am going to go through this matter very briefly, because
contains some very prcrmant r.nd sone v, r: significant dAa.
You will rcxember tht when the Committee havinr- In charge
the claims of jansas City set o.:t to secure a federal reoerve
bunk for that 1,1ace, they did not claim the entire
tate of
Nebrsska; they claimed only that territory 1yinr4 south of the
Llatte iUvr.
This was upon the assumption that Omaha itself
would be a candidate for the location of the bank, but in the
f_ce of the fact that Omaha was an aspirant and seekinr- to have
located within it a i'edrol reserve bank.
:he .Kansac City
banks werc, Tilling to del,ate with Omaha the question of whether
or not the south thirty-Aine counties in the 'tate of Nebraska
wore ;Kansas City torritoiT or C111841 territory.
he facts shown
before that tdommittee showed that thirty per cent of all of
the live stock produced in the state of Nebraska went to
ansas
City markets, -- thirty per cent of it; and that, in spite of
the fact that there art, many local packing houses in the State
of Nebraska, and that Omaha i_self is the t,-IirC1 largest place
as a picking center in the L7nited :Aates.
It showed also that
=tam:as City did during the previoun year with Nebraska a jobbinr-businc)ss of -0, ked A.11ion dollars, and that these little dots
that you see on the map here (indicating),
each one of
those dots which is in the territory south of the red line, indicatinp: the south thirty-nine counties, indicAes one hundred
thousandthousand dollars' worth of business.
A each one of those
spots in the state of Nobras'7a, each one of those dots (indicating) indicates places in the State of Nebraska at which
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Federal Reserve Bank of St. Louis
the lumber industries in Kansas City sold one hundred thousand
dollars' worth of lumber in the previous year.
ais map that
was sent out at the same time shows the nature and extent of
the motor cer industry carried on in Kansas City, and it
appears from this map that the .business transacted with Nebraska
during the year of 1913 in motor cars and motor car accesseries,
eregated
1,960,000, and that the places where it was done
were substantially throughoet the entire
tate.
Now coming back to the facts that they are asking you to
consider in this instance, I want to call your attention also
to what appeared before the
City's banking activities.
ommittee with reference to Kansas
It appeared that at the time of
the hearine; in Kansas City, .ansas City had reelllex correspondents in nebraska of fity-two
fifty-one national banks and
seventy-eight state banks, and the map that you will find :'t
page 175 of the letter to the :enate shows the location of
towns in the
tate of ilebraska in which eansas City banks at
that time had correspondents ( reduces, map).
Now thee 7entlemen contend that you ought to attach
great deal of importance .to the statistics which they compile
from the Bankers' Encyclopedia.
They say that the 7,an1:ers'
Encyclopedia is used by people generally, and that the fact
that 158 Nebraska banks had Chicago correspondents, while only
some 10 or 12 had Kansas City corresponCients, is a very
significant factor in determining this controversy, and that it
ver
eleerly shows the customary course of business, and the
course of trade.
"e say in that connection that if that factor
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Federal Reserve Bank of St. Louis
is to be determinative, then from their own record it shows
that the course of business is not to Chicago at all, but the
course of business is to New York, because 223 Nebraska banks
had a New Yor
correspondent, while only 156 had a correspondent
in (;hicago.
e say furthermore, in this connection, that the question
of exchange, or the question of a foreign bank for exchange
puroses, is not a fctor to be considered in determining this
matter, when it is considered that the -urposo of the law
makers in creating this new system was to break up the existing order of things, and to create a new system.
e so.y
that the fact that a small bank in Nebraska has heretofore
had an account in lier York or has heretofore had an account
In Chicago for exchange purposes, is nA -F.o be considered in
determining this question.
I was fortunate enough in my
earlier career to be associated with a na,inal bank in a
smaller community, and in a strictly egricultural and stockraisin
banker.
comunity, and I know the habits of the small country
I know how he looks upon those things, end I venture
tio assertion thLt few banks in Nebraska, outside of Lincoln
and. Omaha, hav.
whatever.
any personal relations with the Chioago banks
They use their Chicago banks and their New York
banks simplLi for reserve purposes, because the conditions
existing have heretofore re:!uired that they have available
ler the use of their customers drafts th.t will -pass at
par in
those places.
Under the new system a draft drawn by the
Nebraska bank upon its correspondent in Omaha, or a draft
drawn
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for a federal reserve bank 1i Zansac (,ity, will pass par throughout the entire country, and there is no occasion any lonp-or for
t129 small bank in Nebraska having its flew York correspondent,
nor is there any occasion for tho small banker having his correspondent in Chicago.
I want to call your attention to the testimony that actually
a-w,ears in this record with reference to the coRrse of business
in Ebbracka.
I might sum it up in a nut-shell by payi 7 that
it shows in the first instance that the man who actually raises
the wheat and the corn, the man who fattens the stock; disposes
of that either to the local dealer in hi
home town or ships
it to Zansas City, St. Joseph, or Omaha, and the local dealer
who buys it markets it in either Zansas City,
Omaha.
t. Joseph or
It is apparent from this record that se far as the pro-
ducer is concerned, he has nothing whtAe -ver to do -Jith t'ne
marketinfl. of that product, alter it r2aches the Omaha market.
In other words, the transactions on the part of the produce
r in
the 'Aate of Yebracl-a are carried oa entifely Tithi.1 rather
than
without the district, and it mouAto to this: It is trio
that
a large part of the surplus product of Nebraska doe:;
o to the
eastern markets; it is likewise fruo that a large part
of the
Surplus products of 1.issouri goes to the eastern market;
it is
like:ice true that a lar-c part of the surplus product
o -7ansoo ithizsacand Oklahoma and all this territory that
lies east
of the Rocky 1Jountains goes beyonc_ _ansa... City and
t. Joseph
and Omaha to the eastorn prArkets; and if your
argument be right,
then you could laver*I-Ive a federn1 resrve brik in any torritory
that produced moro than it consumed, whore the couroo of the
surplus product was away from that tcrritery.
Now th000 rentlemen have not boon entirely fair in their
statistics compiled as part of one of their exhibits.
ox:hibit
In
I zi1l first call rIttention to the statiE;ties that
they compile with reference to the toms handled by ::ancils City.
It appears on page 7 of their brio': that they got a lict of
the items c.rawn by 150 of the 210 national Ixanks in UA.caf7o or
in Nobraska upon Cimaha, Chicago, and :;ioux City, and upon r:7,ansap City, and also a number of items represented in these various
transactiono; and than they ,71.ve some other details as to
drafts and checks drawn anti forwrded.
Now it is vry significart
in this conno tion that when you examine the names that apr
upon this petition, and you examine elsowere the list of !Ill
;
,.enof tho nationnl bins in the State of Nebrasl:a, that te- .ese :
tlemen, whether by accident or design I do not know, hfAve omitted
every no
6
• _ -petitioning bank in the '-4 to of :Jebraska except one.
They have omitted the banks in Lincoln wflich admittedly have
nos City, and the 11:
.
large business transactions in
)n-petiti0ning
banks or baners that have not joined ,L1 this petition,
-
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Federal Reserve Bank of St. Louis
and these are almost entirely the bvIlkors that are in this southern territory of Nebraska. I say it is '•rdly fair to compile
these statistics and ask you to draw this conclusion cmd eliminnt
from their compilation that torritor:: ;7.1.1ch is the natural
business territory of Kansas City.
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Federal Reserve Bank of St. Louis
• --
Now they h ve some far-L*11 - r statistics here with reference
c
to the volume of business -tandled by the Union Pacifi
for the
road during the year of 1913, and I myself discovered
purport
first time this morning that these statistics do not
to be statistics with reference solely to the
and :,ebraska.
tates of
yoming
I made the mistake of assuming in my brief that
they did, but by rcfc,rence to 'Ichibit
it .:111 be made apparent
that the statistics as given by the railroad officials had refiTebrask_:.
erence to the grain originating, not in the ;;taten of
and
a
.
yoming, but the grain originatin- in the :-Aates of Usbrash
yoming, and Colorado.
Lr. Brogan:
It so states.
Judge Goodrich (continuing):
I say it so states, but
it makes this all the more significant.
In other words, for
vorsy,
some purpose which is entirely foreign to this contro
in
they ,'ant to tell you about the grain th t ori inates
Colorado.
Brcy:an:
Tor't happens to ho the statistics.
Judge Goodrich (continuing):
i
I understand, but you have n
lined there with the states of iTebraska and
yoming the
,nd live stock originating7 in the state of Colorado.
'
I
1- ve not
YOU
Itempted to segregate the two, so they have no sis:-
nificf.A.noe us to the figures that are produced here.
It does
not show what part, for instances, comes from Nebraska,
what part comes from
yoming.
Consequently, they cannot
have any significance under the situation here, and it is
or
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notorious that so far as Nebraska and Wyoming are concerned,
very little of the products will be transported by the Union
.
Pacific that wouad naturally reach :ans!..s City.
The Union
i?acific, running through 'Iyoming and Nebraska, is a natural
feeder to Omaha, and does not go directly to Kansas City.
The Union Pacific facilities for lansas City traverse the
State of Colorado, and do not touch the State of Nebraska at
all.
gow th;,: document contains statistics compiled by some
,
one in behalf of the Omaha banks, which show the transactions
had over the Burlington :Railroad during the same year.
Now
from these statistics it appears that during the year 1913
the Burlington road transported 21,410rs of live stock to
Omaha, and 14,288 care of live stock to 7ansas City and St.
Joseph, those are their own figures; and that during the same
period, 14, 141 cars of grain went over the Burlington to
Omaha, and 9,016 to *ansas City and St. Joseph.
In other
-Mnri000 -- out of the total cars of grain
words, GaEtt-vt
and live stock transported by the Burlington Ilailroad in the,
year 1913, originating in the States of :yoming and Nebraska
35,000 of those cars went to
City and St. Joseph.
maha, and 23,000 to .ansas
;Jul yet this gentleman has the
temerity
to come before you and insist that Kansas City has no business
or trade relations whatever with the State of Nebraska, and
that these gentlemen who spent so many months in the very
ardnoue and onerous task of trying to make an apportionment
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Federal Reserve Bank of St. Louis
of the territory in the United
tates w ic't would be f2ir and
just, have filed properly to discharge their duties.
How as to convenience, I think th t is
ye/7 essential
factor, and. it is one tilLt should have been given, and doubtless was ;-iven a groat deal of weight by the Organization
committee.
_y opponents be; that r-uestion.
They tell you
about all of the throurth trains t*II,A, traverse the
tate of
nobraska on their way to Chicago, but they fail to call your
attention to the fact th,!..t
ansas City is three hundred miles
nearer any part of ilebraska you want to pick out
than is
Chicago, according to the ordinary routes of transporta
tion.
Let us see:
Say that the banker out in ;Iyoming or the banke
r
anywhere in the State of Nebraska desires to go to Chica
go,
and there confer with the afederal :.eserve authoritie
s; in
order to reach Chicago he has got first to go to some
:isscuri
gate-way point.
fie may go to
Tansas City.
L great many
Nebraska bankers, if they wanted to go to C
icago, and took
tlio most natural and the shortest route, would
ho by way of
,ansas City.
:hen the banker go to Yansas City -- this
ileb-
raska banker would be as near Chicago as Omaha
is; when he
got to St. Joseph, he would be four hundred miles
nearer to
1:ansas City than to Chicago, and when he reach
ed (Ymaba he
would be three hundred miles nearer to _ranst
s City than to
CA.car;o. Yet these gentlemen say that
we arc going to cause
them a great deal of inconvenience.
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Federal Reserve Bank of St. Louis
The average running time of the trains bet7oen Chica-p
and. Omaha is thirteen .lours and a fraction; I cannot r7ive
you the exact number of minutes, but it appears in the statistics compiled by Jenvor; you will find it there nor.
The
Nebraska banker, i: he wants to go to Chicago, as I said before, must first p;0 to (maha.
So nothing can Le said from the
standpoint of convenience, because it appeLrs from this record that the ;issouri 2acific Railroad and the Burlin7ton
Railroad hr_tve freouently trains serving Omaha, so that any
Irebraska banker who has occasion personally to visit a
federal reserve bank, can co directly from Omaha to :ansas
City, and save three hundred miles in distance, and about
Live hours each way in time.
Then a Nebraska banker wants to telegraph to Kansas City
it is all in favor of ,ansas City as against Chicago.
The Governor of the Board:
:hat is the time between
Omaha and -ansas City?
Judge J.00drich:
1,1r. ilrogan:
I think it is about six hours.
Yes; it takes all night, just the same
as
to Chicago, -- o little shorter yet.
Judge Goodrich (continuin,-).
Of resoniir;.
That shows the character
It makes no d'fference to !7.r. Brogan,,but to
,
some countryltn]-ers there is so:lethins more than the mere
expenditure of time involved; and it strikes me that these
:
frugal-minded country directors 1- olad very much prefer to
send their officers on a journey ,J:ercin they might save
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Federal Reserve Bank of St. Louis
six hundred miles in disLnces, and possibly _ifteen dollars
in transportation, even thoup:, it did take the same amount of
,That is a factor.
But as to the telegraphic rates, there is no point in
Nebraska, as I said before, that is nearer Chicugo than Omaha.
The primary rote from Omaho to Chicago of a telegram is forty
cents, ad to .ansas City is thirty cents.
Again, the telephonic rate tet7eon Omaha and Chicago is
2.76 for the first three minutes,
ilereas it is only
1.00
to Kansas City, and the proportions for any additional minutes
spent in conversation ore the same.
In other words, it costs
ono-third more to telogrnph to Chicago than it does to _ansas
City, and it costs three times as much to telephone to Chicago
as to Kansas City.
?Tow', those gentlemen live also omitted all mention of
oter lines of railroad.
It is doubtless known to you
entle-
men better than to me, because I am not especially f_miliar
with it, that the Burlington Eoad goes
up to Omaha, that the
Lissouri Pacific goes up to Omaha, and that the Burlington
I.cific both have lines that go up in the
and the Assouri P,
region of Lincoln; but in addition to that, the rock Island
RoilroPd starts out at
t. Joseph, .nd traverses the whole
southern tier of Nebraskan counties, -- some eight or ten
counties, -- and traverses, I miqht say, the -lovt densely
settled portion of iTebraska.
The richest, the finest, the
most productive part of Nebraska is the territory south of
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Federal Reserve Bank of St. Louis
the _latt iivor.
hat's the “ost thickly popuLtted, it's
st towns
the oldest, and it's the country that has the large
ho
in it.
h,
rand Island lallroad originates at St. Josep
of ITebraska
1
: - 1(1 traverses for some distance the southern part
Grand Isnd finally roaches its ultimate destination up in
land, up ,tout the aiddle of nebraska.
Now, they have not
to what is done
c.7iven you a simqe statistic with reference
by those railroads.
Yet they stand here, almost contendit7
.
that 7:e belong in an entirely different class
(To the Governor of the Board):
how much ti .e have I
taken?
no Governor of the Board:
You have taken about forty
minutes.
.
Judge Goodrich (continuins):
I do not think, gentlemen,
you much
that under these circumstances I ou7ht to weary
the fact that
longer, hut I do want to call :/our attention to
gh trains
it may be contended here that all these twenty throu
that they have to Chicago afford, very much better mail facilities, and I went outside the record a few days ago so
to
procure information a0 to just how Cmaha is served from Chicago
and from lansti,s City, from the standpoint of m ils.
facts appear on page 36 of the brief.
These
It 7111 be shown there
that there go each day from Omaha to 7ansas City seven mails,
and they go at very seasonable and convenient hours: for instances, eight o'clock in the morning; 8:45 in the morning;
1:30 p. m.; and on up to 11:35 Inidnit; !-.nd the times they
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Federal Reserve Bank of St. Louis
are received in 'eansus City -- the mails
are received in Kansas City -- are seven. Now the mails from Omaha
to Chicago
are only six.
In other words, there is one more mail each
day going from Omaha to Kansas City than there
is going from
Omaha to Chicago.
We suffer a little bit on the other route,
but on the mails that come from Chicago and come from
ansas
City to Omaha, they have nine and we have seve
n.
These statistics here in th.
e reports show that a
large part of the business in the extreme northeastern Dart
of Nebraska is done with , inneapolls; these statistics ';ere
show that in western Nebraska its transactions ,re naturally
in large measure with Denver; and the statistics here show
alma:t conclusively VI' t '7/7ning 11:_:s heretofore done subst
anJoiness with the State of Colorado.
tially all of tis b.
very evident.
That'
Cheyenne and Laramie are the largest centers
in the State of
yomin:7,-, -11d they are both 'racticall
;;within
one hundred miles of the city of Denver.
liere is another significant fact that you
:;entlemen
would be justified in taking into considerat
ion in the e - n:Adoration of this matter. Everything that
these 1.entler.en
are saying, if true, could be said with much
more force by
Denver. If what they say is true, Denver
could likewise
mi.L-e the self-same complaint, -- but Denver
and Colorado
are not here complaining.
There is one fact that I omitted, that
I think
has
vary direct bearing, both on 1.10 tuestion
of due c(,u'roe of
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Federal Reserve Bank of St. Louis
trade, and the question of convenience.
You gentlemen are
doubtless aware -- familiar wiVI the great mail order houses
of .ontgomery, Ward and Company, and
ears Roebuck and Company.
They have, for many years had their headqurters in the City
of Chicago.
about fur or five years ago the :ontgomery--ard
concern changed its inanner of handling its western products,
and establishad its mail order house in :ansT.ts City, in order
to serve this western country, and the statistics compiled
by that concern, and hoard before the Organization Committee,
showed that 12.3 percent of the entire business done by that
ifansas City house was done with the State of Nebraska, and
those figures become very significant when they are put
against the figures that only 1 .9 percent of its business --Tas
done in the State of :issouri.
he testimony there shows also
th_t ,ansas City does business way up into Iowa.
Its trade
territory embraces this entire countr.
The Committee acted wisely, and in my judgment, it could
not have made a more logical selection, and . or you gentlemen
now to overturn their action, wad set aside what they did,
would be to refuse to have due regard for the convenience and
customary course of business.
Dr. A. C. Eiller:
I would like to ask counsel .hether
he has considered -- and I will as;: also Li.. Brogan -- the
way in which this district will be affected in the matter of
clearings by either its retention within the iiansas City
district or its transfer to the Chicago district.
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Federal Reserve Bank of St. Louis
-
-ak
Judge Goodrich:
It is to t,
'is extent, of course, -- the
Making of this change would reduce the carital of the federal
reserve bank of 1(anss City below the minimum, hut I undertake
to say that so far as the Nebraska banks are concerned they
will continue to cler, r their affairs primarily as they have
.
heretofore.
The testimony here shows that all the smaller
banks throughout the State of Nebraska have kept their accounts
in Chicago and in New York only for exchange purposes, and that
their primary transactions have been with the larger banks
either in lineoln or Omaha, and that they keep their reserves
'Vlore.
It is possible thnft in order to afford them ultimate-
ly all the facilities they want, there ought to be a brrmch
bank established at Omaha, but I m17ht say this in connection
with that, it is a Nflry significant thing that so far as the
present experience of the federal reserve bank of
ansas City
is concerned, the Nebraskan individuals have tff,
,.en a pronounced
liking to it, if results are any indication.
Cf the discounts
that have thus far been wade by the federal reserve bank at
,Kansas City, and those that remain on hand at this time, fully
sixty-five percent are from the State of Nebraska; and I understand that at all times more than fifty percent of the
loans that they make hve been made to the
tate of - ebraska;
N
and 1 understand furthermore from the evidence that they
have
yet the first complaint to hear from any banker in the
State
of Nebraska as to any inconvenience he has suffered in the
matter of procuring his loans.
Is there anything else?
Does
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Federal Reserve Bank of St. Louis
that answer your question?
Hon. Paul M. Thrburg:
you familiar with the c.ggre-
gate loans of Yansas City?
Judge Goodrich:
1 beg your pardon?
Paul :7. lai.rburp;:
Are you familiar 1-rit
the aggre-
gate loans qf Kansas City?
Judge Goodrich:
I have not the information at this time,
but filei -re excoodingly small, -- about
clrburg:
15,000.
be . ,
90,000.
Sixty-five percent of that will
a:A will not be complete proof as to business
in Nebraska.
Judge Goodrich:
But it is siF:nificant that they have ex.
'erionced no inconvenience in having their transactions there
,
but in many parts of Nebrasim a local banker can leuvo home
after breakfast, have several hours in Kansas City after the
transaction of his business, and be home at a reasonable
hour
in tbe evening.
Dr. A. 0. Eillor:
prior to the establishment of the
reerve banh in ''ancv.s City, 6.Id any of the banl7s in
7ebraska
were they not in the country clearings system having
headquarters at Kansas City?
Judge Goodrich:
were handled.
I do not know just how those matters
I mow we !;:ro counsel for the Penh of
Commerce
in Kansas City, and I know they had subst
antial transactions
with banks in the larger towns of ansas,
and I --7rehend
there was some system whereby those
accounts were handled in
lamsas City at par.
3r. .
I can find (Tu. about that.
%
C. Miller:
It would be interesting; you might do
SO.
AllGUISENT IN IXBUTritAL BY 1,:.E.•
A, BROGAN, OF
COUI.U.EL 1•01 1;1;BR/1SY:A idTD
:
,
Ilentlemen of the Board:
I just want a few words; and I
want to suy I do not think there is enolu7h
difference between
us as to the ultimate facts to justify any
charges of mix,representt:tion or charges on either side.
The matter on which
we differ is rather as to the analysis of
admitted firrares than
anything else, because there is no dispute
as to actual faet111)
One point I want to clear up without any delay:
.L.ere is
no doubt in the world, and I think I trie
d to state that in
my opening, t;wt all this territory from
northern Zexas -- I
might say from central Texas -- to Canada is
equally alike in
its 1-Krodrcts %nd its wants ,
-And its needs, t.nd th't is prec
ise!
Ibr why it does not tend to meet in one
common center, because
iFts traffic all flows east and west, and ncOu
rally distributes
itself in zones, just as I 've cont
ended for, and there 17 uld
be just _Ls much reason for contondin
that the Dakotas ought
to pm into the same territory Atli
-ansas City as that Nebraska auht to, because their prod
ucts are identical. It is
that taat separates them into
these parallel routes.
New, one other possible misu
ndorstandinr: I thought to
correct was this: It was said
that at the hrinp; no one
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Federal Reserve Bank of St. Louis
asked that this territory be put into the Chic%It7o district.
noubtless there was no one Vero furnis ing a brief and as7 :inc,,
for that.
As I pointed out in my opening statement, that was
one of the unfortunate conditions, but the Committee itself
sought to correct th t short-coming by asking for a statement
as to the Lreferences, so as to include other cities as well
as those that were irepared to ask for particulv,r territory.
They called on all their 1)-111-s to give the first, second, and
third choice, and although tLere was no active propaganda, yet
they got the actual wishes of those banks in the matter.
On page 353 of their report they stow how the :;obraska
banks voted in rest onse to that renuest, and I think this is
very significant.
It is true only five banks named Chicago,
because there was active propaganda in behalf of Omaha and
Lincoln, and Omaha got, and Lincoln
eight votes for first choice.
and Zansv.s City got,
That accounts for that small
group in the southeastern corner of Nebraska, which I concede
is debatable territory between Omaha and :.tansas City.
As to
the second choice, it becomes more si7nificant, because
Chicago
had 110 votes.
A majority of the banks of lIebraska voted for
Chicago as second choice, and only nine voted for Kansas
City
as second choice.
or their third coice 54 voted for (7
/icage,
and 49 for :ansas City.
So that you 1lLve a total first, sec-
ond and third choice of the Nebraska bankers, of :bout
170,
and Kansas City received about, I should say, 68, first,
second,
and third choice votes,
hen we turn to :woming, it is not
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Federal Reserve Bank of St. Louis
correct tht 'yoming was unanimous for ;enver; it was almost
evenly divided between Denver and Omaha, in recognition of
Vle fact that its traffic is 7enerally eastward., althoun
i)enver is nearer to it, and. perhaps more evenly situated by
train service as to _large parts of ::yoming.
Yet there were
ten banks votinc for Omaha, and twelve for Denver and Chicago;
80 US to the second and third choices, Kansas City wss not the
first or second choice of any .-;ymniag bank, but the third
,choice of three.
o counsel was mistaken when he said there
was no expression before the Committee as to the Nebraska and
:Wyominiz banks.
On the contrary, there was a veri, emphatic
expression that if they could not get Omaha or Lincoln, they
wanted Chica,;() as third choice, and that that was the proper
,
place with which to relate them if they were not to have the
bank in their own State.
•
In line with that very thing I have no doubt that
Yates appeared at that meeting and said that as between Omaha
and Chicago the Chica7o banks would know relatively little
about conditions in the .fl'obnska banks, but hie talk :ms on
.tirely with relation to Omaha and Chicago.
.tha
It does not follow
Kansas City would know any tore or as much about condi-
tions in the Nebraska banks as would the C'tAcap o haner.
;
.
;not
do /think counsel can be correct in saying that tTTirty
percent of all the cattle shipped out of Nebraska came to
Kansas City.
I personally - -
Judge Goodrich:
The testimony shows it.
:17. Brogan:
A
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Federal Reserve Bank of St. Louis
I understand.
Mere is a mistake somewhere,
because it couJA not arnount to that.
Now, we have some figures
here that I think overturn it completely.
possible.
It could not be
I think it is not even thirty percent out of that
portion which runs a1on7 the southern pfIrt of Nebraska.
Let
me sthaN you Vlese very figures which he read from our
brief.
They would indicto a different condition of things.
58 of the certificate of
(.'11 page
r. , olcomb, who was not representing
a bank, but is the traffic manager of the C. B.
7,ailroad
Company, he states:
;1.
Yates,
i'resi(1ent lebraska National P:cl.nk,
Omaha, Nebraska.
Dear sir:
"In accordance with your request of oven date,
I wish to advise that the following is a statement
of cars of the commodities named, handled by the
Chicago, Burlington & Alincy, having origin in the
States of "Tobraska and '.yomins . .
.Only the Union 1aci1'ic did not confine it to this, but
the Bur—
ington statistics 1..e confined to Nebraska !: nd . yomin
,
.
g, and
,
destinations Omaha and oast, St. Joseph
and Kansas City for the fiscal year ending June
00th 1 13."
S follows:
1: ter, which was dated 01mha, November 11,
n 9
t
1914,
gives the totals for live stoc'7, grain, gravel and
sand,
4a1ry products, hay,
lici food, for Omaha, St. Joseph. and
Zansas
City, as 1')0,764, 11,103, and 12,269, respeclive
ly.)
Slow, ull that live stock alone as against St.
Joseph and
Omaha, and business from Nebraska and t.
Jc:, ph, is on its
way east. It reaches Chicago, c,nd therefi
e, so far as the
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Federal Reserve Bank of St. Louis
Nebraska banker has to do with it, he lo entirely in the Chicago
bankers' hands, but if you put these two together, of the
thirty thousand cars of live stock shipped on the BurlinFton
system Clone, it is, we will say, better than one-third of
liebraska's.
'1110 three great systems, the :orthwestor, the
Union RaciAc, and the Burlington, practically control thLt
traffic.
There are oters there, -- the I-lock Island sends
trains through, and the Lliosouri 2acific is struggling with
the problem, and the Grand Island is is court, but these are
the three great systems that handle the traffic, and this is
the statement that of the thirty thousand cars hwidled by
Omaha and $t. Joseph,
,500 were handled by !:ansas City.
.
I
fail to see where they will get thirty percent of even the
One-third to
rnahe. and A. joseph together.
,ansas City woul
-
have nothing to do with *t. Joseph traffic and shipments, and
this is not an argument
against Kansas City for
aha, but
of all the traffic which goes through Omaha and hawses City,
and of the Z0,000,cars only 4,500 were handled in iansas City,
so the statement that only thirty percent of the cattle proauced and shirred out of TJebraska will f71,7o to .:ansas City
can
not possibly be sustained.
do not think co -ansel meant to say that the purpose of
this act
to break up the existing order of things.
I un-
derstand it was to distribute some of the congested
reoervos;
1 understand that to be tho : urpose; but to say that
pmnorailv
speaking it 'as to destroy the existing course of
business, or
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Federal Reserve Bank of St. Louis
even the existing course of bank exchanges, certainly must
be
a misinterpretation of the act, because Congress was careful
to avoid the possibility of such an interpretation of this act
by providing that the districts should be a.ortioed aitll due
regard to convenience and the due course of business, and that
does not mean that customary coAditioas should be allowed to
continue, so far as a change might be necessary to carry out
the purpose of the act, which was to distribute the reserves
in the great reserve centers.
.;,s to the statement concerning collections, this I do not
think involves clearini7s, lait collections handled otherwise,
including clearings
korhaDo there is no basis for the criti-
cism of coamel that this certificate shows in the printed
brief
just what banks and juW: what towns have contributed to t'As
information.
Obviously, it does not include all of Nebraska,
ecause it includes only 153 of the banks, ond their names
and lee tions are 7;iven here, so there can be no
misunderstandInc as to what information was said to be furnished
here, but
thoy sow the remarkable fct that excludinc: large
centers of
.South Omaha and Lincoln, of the banks of the lesser
class
throughout the State, 15.5 show practically no bus 7 ness
1!utever
with 1.
sas City, and especially from the large busin
ess wit
Omaha they show a large business with Chicago.
low, that's whal. this is for.
a are conceding, and
have
throughout, that there is a small corner or strip
, if you
pleace to cll it, of Nebraska, trading Generally
and shipping
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Federal Reserve Bank of St. Louis
Imre to St, Joseph than to j:ransas City, yet it has some rola)ns with Eansac City, 4.1nd if the :;oard thourht tht ti'ere was
ti,-a reason because of that fact or because of the necessity of
retaining sufficient capital -- bankirr- capital -- in
ansas
City, if those things wore impor'tnt enou7h to justify breaking the state line, there would be no
POYIOUS
objection on our
part to LL few of those counties bein- left In the :ansas City
district; __ not of course half of the State, as claimed here,
because t1l3t would be doing violcnce to the wishes of nearly
half of these petitioners, but probably fiiur counties, -- five
or six at the outside, -- in the southe;_istern corner of Ilebraska, could be left in the alacas City diutrict without
doing any great violence to their business, rczt th t itself
s not an argument :Eor continuin?: the ingonvonience , to the
.„0
i
rest of the State or s to yoming. Now, my understanding is
'that the rest of the banks all clear through Omaha, -- subztantially all,-- that their businets is there.
Just how they
will be affected by this arrancrement I do not rrofess to be
able to discuss, because I lack the toci- nical knowledge of
i
,
fbankinl, but 1 know their banking relations are
-
with rtgaha.
llow perhaps 1 s"'ol; (1. refer to one other feature.
Counsel
discussed the fact that so far as the individl who produces
the product of the farm, and as for as the small country
bank
is concerned, they have no Ciirect relations with the
ultimate
urchaser of the prodcet, or wit' the final bank whore
the
exchanges are carried on; and th!.A is true; but the various
-
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Federal Reserve Bank of St. Louis
•
transactions '2,re related to each other.
The farmer sells ,is
cattle to the buyer in tie village, and gets a check on the
local bank, but that dolor ships to the nearest point, Omaha
or Lincoln, or some other towns in Nebraska that carry on
shipping business, and there he may sell or ship to Omaha or
Chicago,. and he receives something in exchange, which ultimate?.y comes from the purchaser in C• icao, and so there has to
a bank exchange carriod on, and affecting ultimately the
ia,rmer who grows the crop and the small banker
-ho first holds
the check that pays for the cttle and the grain.
You can not
separate the Interests of a State, merely because those rela:
,
tions will e: ist everywhere, .and I fail to see the hearing it
has whatever.
I was not able to discuss the statement of the sixty-five
per cent of the loans from Ilebrasa, hut the qucstion as'- ed by
a member of the Board of course disposes of that.
Me loan-
ing is not sufficient in any part of the district to warrnt
any att• ck on it, and yet we have not been told
hat effect
the change of this district to suit the convenience and
earnest
desires of Nebraska and hyoming would have upon the
Zansas
City bank,
That harm would it do?
Tould it do any harm to
ICansas and nklahema and other portions?
tIffected the ban17 itself.
Obvious1' only as it
That harm would it do the
banl, If
:
you take away this ,1,600,000 of capital, and if you
wish to
protect it by leaving
half million or so in the
southeastern corner, and if you find it advisable to add
three or four
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Federal Reserve Bank of St. Louis
hundred thousand dollars from the Oklahoma counties petitionto get into the district, you would leave a capital between four and a quarter and four find a half millions.
:7inne-
apolis has only four and three-quarter millions, 2ild but one
or two of the other banks have a little over four million; so
it can not be said that the desire of the management of the
Xansas City bank to retain as large a capital and as larF7e a
;territory in which to do business as possible is a factor to
be taken into account in this matter at all, because it was
not the purpose of the location of banks to benefit the city
whore the banks were to be located, nor the banking business
in that city, except as all 1)anking business in the locality
woald be benefited.
And in conclusion I want to say that the unanimous petition of substantially all the banks in Nebraska and 7yoming
is an important factor, and not to be overlooked in this consideration.
They know and out to I:now whether it is more
convenient for them to do business with Chicago or Zansac
City, and they know or our-ht to know whether the curFose for
which they exist will be better achieved by joining t7flem
with Chicago or Kansas City.
Yo qovernor of the Board:
Gentlemen, we will take this
under a:Idvisement.
rogan: :aly I make this request? This brief was
Mc
prepared by jud3'eflugh and 1,r. Iates, who was chairman of the
r.
committee, has died recently.
Cn account of some important
.matters which kept Judge Lici.Lugh•away, he is not able to 1)e
here, and I want to present some different points in my
monts.
airli-
I would like the privilep!e of filing an additional
supplemental brief along the line 7:hich I have discussed 7J3re.
The Governor of the Board:
Mr. Brogan:
How muci time do you want?
I will do it promptly.
Tho Governor of the Board:
tow much time would you sug-
Pest?
Mr. iirogan:
v.ivio weeks, if that is not too long.
The Governor of the Board (to Jud,e Goodrich):
Then you
I want an opportunity to reply?
Judge Goodrich:
S
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Federal Reserve Bank of St. Louis
This situation of course is one that
noeds to be deterilined as speedily as possible, becalse it
leaves the situation in a state of uncertainty.
The Governor of tl:e Board:
..ould it not be possible for
you within two weeks to send brieif an
Mr. Brogan:
reply?
It takes three days to ,Tet nome.
The Governor of tl:e Yioard:
Of course counsel may mu-
tually at ;ree to extend the period to a reaconUle extent; I
'
wou1& sugcost ten days or two wees as the time if possible
for the preparation of your brief and your connterbrief.
Mr. Brogan:
Lay I ack if the Oklahoma petition has been
postponed?
The Governor of the Board:
P
It will be on the twenty-
Urth*
en. 2,PL1
arb*.a"{3:
The twenty-fifth.
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Federal Reserve Bank of St. Louis
Mr.
Brogan: I should like to have our brief in b7
time, because I think you will :find it desirable to consider
them both by that time at least.
The Governor of the Board:
Te will leave it with tl- at
,
understanding, then, th:_A counsel will agree to send their
,
brief and counter-brief within the time suggested.
(:hereu-oon the hearing was 1.djourned.)
81°
8
80°
78 °
79°
40°
39'
39°
Note: 'ryler,and Wetzel Cour.ties transferred fro'
the 5th to the 4th F. R. ".1) trict eff:ecti_ve July 1, 191"
This transfer affected 5
er banks - all National.
38°
WEST VIRGINIA
SCALE -STATUTE MILES
0
83°
JAN. 1, 1825
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Federal Reserve Bank of St. Louis
82°
81°
80°
/0
79°
20
.30
40
SO
78°
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Federal Reserve Bank of St. Louis
REM IN FILES SECTION
AUG 1 2 1938
2uss"'
BEFORE THE FEDERAL RESERVE BOARD
ON
ETITION OF CERTAIN COUATIES OF THE STATE OF 7EST VIRGINIA TO BE
TRAIISFERRED FROM THE FIFTH FEDERAL RESERVE DISTRICT TO
THE FOURTH FEDERAL RESERVE DISTRICT.
Washington, B. C.
January 47, 1916.
Olt
Reportod by
Rexford L. Holmes,
Silorthand Reporter,
322 Southern Building,
Tiadaington, D. C.
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Federal Reserve Bank of St. Louis
'cY7
(The hearing was convened tA 11:12 o'clock a, in., with the
following members of the Board present: Charles
Hamlin, the
Governor of the Board, F. A. Lelano, . P. G. Harding, Paul M.
Warburg, and A. C. Miller.)
Hon. Charles S. Hamlin, the Governor of the Board: Gentlemen,
the Board will be very glad to hear you now on your petition.
Mr. Charles N. Kimball, of Sistersville, -est Virginia,
representing the petitioning counties:
Gentlemen, I appear
before you representing these petitioners.
There are three of
the petitioning banks present in person, represented by their
officers.
"e are hero before you repres(nting no great large
community )r no considerable financial interests.
"e are
representing two small counties up in west Virginia and five
national banks, these bei, g all of the notional banks in those
two counties.
We are not here to complain of the location of
any reserve bank, but we are here asking to be transferred
from
one res rye district to another.
-e are asking to be 'rans—
ferred to a district with which we have always been accusto
m—
ed to do business, and in which we i)elieve a due re .brd to
the
course of business in our district dalands that we be
placed.
Now, I have with me a map which you see here, which
will
show to you the location of the counties in which these
petition—
ing ba,lks are located.
(Exhibits map to the Board.)
,ebster
and Tyler Counties, in which these petitioning banks are
located,
are shown on this map shaded yellow; they are in the extreme
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Federal Reserve Bank of St. Louis
northwestern portion of the Fifth District.
'loins 2ennsylvania.
7:ebster County ad-
The northern bonndaly line of 'Tebster County
is also the southern boundary line of the Fourth District; the
western boundary of Aabster and Tyler Countie,1 is the Ohio ?dirt:x.1
The dividing line between
eat Virginia and Ohio is also the
western boundary line of the Fourth District.
Yhose two counties
have always been intimately connected with the Panhandle Counties
' 7e are virtually Panhandle Counties, although not within the
Panhandle.
The red lines here (indicating on map) show the rail....
roads running from 3istersville, by which we are connected with
Washington and Richmond.
The blue lines are the connecting
lines with Cleveland, Ohio.
we are standing (The members of the Board, together
with counsel, were standing up to examine the map counsel was
explaining), to make it brief, the distansle from 6istersville,
which is the furthermost point from Cleveland by the shortest
route, is 1P2 miles; by the shortest route to Richmond it is
517 miles.
A letter posted at 6istersville after banking hours
will not reach Richmond until after banking hours the succeeding
day.
It is in Cleveland before banking hours the following
morning.
The distance and means of communication are such that
a traveler can leave Oistersville, go to Cleveland, and return,
in the same tile that it would take a letter to go Jr:roll 3istersville to Richmond.
The time and distance is on or about the
ratio of one to three.
The distance is about three tiles as
great to Richmond as to Cleveland.
The ti 10 taken in travel is
about three times as great to Richmond as to Cleveland.
he
railroad fare to Cleveland is one-third' less: than tha railroad fare
to Richmond.
The same ratio applies to long-distance telephone.
The long-distance telephone rate from Sistersville to Richmond
is three dollars for three minutes, and one dollar per minute
for each additional minute; while to Cleveland it is one dollar
for throe minutes, and thirty cents for each additional minute.
The same ratio applies to telegrams.
To Cleveland we have a
twenty-five cent rate for ten words, and two cents for each
additional word; to Richmond a telegram rate of fifty cents for
ten words, and three cents for each additicinal word.
Now, briefly, that sums up the location with relation to
distance and time of connection between the two points.
Now we base our petition for change from the Fifth District
to the Pcurth District, first, upon the fact of our near proximity
to Cleveland, and the Cleveland distrct; scc -md, upon our ,rent
distance, comparatively speaking, and the difficulty of communication, between our district and the Richmond district; third,
upon the fact that our businea. inte,.t.,..‘ts and commercial connections have always been and ere vjith the cities and towns - nd
banks in the Fourth District; fourth, upon the fact that "due
regardto the convenience and customary course of business" demands that petitioners be placed in the Fourth District; and fiftl
,)
upon the proposition tha
the Federal Reserve Act was passed
in aid of trade, and not in restraint of trade, and upon the
fact that that ),ct expressly declare
that the districts shall
•
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Federal Reserve Bank of St. Louis
be apportioned with clue regard to the convenience and customary
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Federal Reserve Bank of St. Louis
4.
7s)
course of business.
Now, gentlemen, West Virginia is o small
tate, and proba-
bly extends over a grerter proportion of territory in proportion
to its area than ,/ly other state in the Union.
It has an ex-
treme east and west width of 270 miles, and extends north and
south 250 ;dies.
Its northern extremity extends twenty-five
N..
miles north of the latitude of 2ittsburgh, Pennsylvania; its southern extremity extends to a latitude fifty miles south of that of
Richmond. Virginia.
,
about fifteen miles
Its eastern longitude extends to a point
Of
t of the city of Richmond, and its west-
ern longitude extends to a lonitude twenty miles east of the
city of Columbus, so JOR see we are pretty largely distributed
over the face of the map, although we are ,) small state, something like a few hundred over twenty-four thousrrnd square miles.
Now, we have been placed in the Richmond _District.
we should
e placed in the Fourth District.
'e believe
Our ;ileans of com-
munication .11d our busines,, we believe, demand that we should
be placed in that district.
:Tow, in looking over the proceedings befor
your honorable
body, I have noticed that the Richmond .fief at no time -Ind in
no place had in mind taking in any part of
oct Virginia in
'est Virginia;
the Fifth District other than the southern part of 7
but the .ntire ,itate has been place, in the Fourth District, wit
the exception of Hancock, Brook, Ohio, and ::arshall Counties,
a
the four counties who: e boundries show are actually Panhandle
Counties.
Now, the two counties of -ebster and Tyler are in
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Federal Reserve Bank of St. Louis
r
the Ohio River County.
We are virtually Panhandle Counties,
and not four counties in the Fourth District; and Wheeling, the
largest city of the ,3tate, end the industrial center of the
northern portion of west Virginia, is only thirty-seven miles
from Few Martinsville, and forty from Sistersville, and is
city with which we are commercially closely connected.
burgh is 116 miles away.
he
2itts-
Three of the petitioning banks are
e
located in Tyler County, three of them in Sisters- ine; no,
four are in Tyler County, and three of them are in Sistersville,
represented here in person by their officers.
One of them is
at Middlebourne, the county seat, ten miles back in the county.
The other petitioning bank is located at 14ew Martinsville,
which is thirty-seven miles frola Theeling.
e are in the same
senatorial district with narshal] County, and politically,
commercially, and geographically, we belong with the 2anhandle
Counties between the Ohio liver valley and the Richmond district.
We have the range of hills or mountains called the Ohio :iver
Hills and the Blue Ridge and Allegheney Mountains.
7e have -
no means or lines of communicating with the eastward portion
of the United States from the Vest
irginia 7istrict except
where a stre-m cleaves or cuts the ranges, and you will notice
1
our railroads running east and west in ::est Virginia, all run
up the Little Kanawk8, up the Large Xanawka, and down the Big
Sandy in the southern end.
Our most usual means of reaching
Richmond and the manner in which mail is sent is either to
Taleeling and out the J3ltimore and Ohio east to Washington and
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Federal Reserve Bank of St. Louis
6
.
to Parkersburg, or over the ,wltimore and Ohio to —ashington,
or it LI posible for the traveler to go to joint Pleasant and
out to Charleston, and take the Chesapeake and Ohio to Richmond
east to quntington, and take the 1Torfolk and
estirn to :lichmmd,
but those routes are so long and so much time is required to make
such a journey that that route is impracticable.
Now, in starting to 7ashthgton or 2.ichmoild from Sisters—
ville or Hew i 7artinsville, it is necessary to take the Ohio
River route and go north to :haeling 47 miles, and there change
cars or to take the Ohio :diver south to larkersburg, and change
cars and go east.
The running ti ,e I have given you, gentlemen, thFA is
necessary, or the time that it takes to reach Richmond, is the
actual running title.
It is not the actual tirae that it would
take a letter totravel that distance, for the reason that there
are several hours lost in making connections either at Parkers—
burg or at , heeling, to the Cleveland (istrict.
north to ';heeling.
We have thre
We go ciroctly
"e have five trains each day to 7herling.
lines of rsilrou6 running fro, ,holing to
Cleveland, -- the Baltimore
Ohio, the
heeling and Lake
Erie, and the Pennsylvania; or we can go from Sistersville or
New
'artinsville to ?ittsburg, .L?enrisylvnnia, 116 miles away,
and we ,ave the Pennsylvania Railroad, and the ,heeling and
Lake Erie, and several other routes, to go to Cleveland, which
is probably the most convenient wry for a traveler to go, but
the mail I understand goes to ;;heeling and is sent out over
these lines to Cleveland, so that so far as distance in miles
JP,
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Federal Reserve Bank of St. Louis
is concerned, the position of ,dstersville, New liartinsville,
and these petitioning banks demands that they be placed in the
Cleveland district.
3o far as the distance in hours and minnter
is
concerned,
the same demand is made, because the actual running ti e, the
actual time taken in going from Sistersville to Cleveland by
mail or by a traveler is actually one-third that that it takes
the same traveler or mail to go from ,istersville to Richmond.
s
In other words, it t kes from 6-1, to 7 hours to ro from
Sistorsville to Cleveland, while to Richmond 17 hours is the
shortest actual running time that the distance can be made in,
and that is the actml running time, and not the nctu-1 time it
would take because of the several hours that would be lost in
making connections at iarkersburg or at 'heeling.
From :iistersvillo to Cleveland via 'heyling and the 'heclins and Lake Erie is but 99 miles; that would be going from
iistersville to Wheeling and out this road here (indicating on
1
i
map), which is but 99 miles with running time of 71 -to 8 hours.
Sist.rsville to Cleveland via Yheeling and the Pennsylvania
Railroad is 182 miles, or 7 hours.
via :hoolin
,;iste2sville to Cleveland,
and the Bniti ore and Ohio Railroad, is 209
miles, six hours and forty-five minutes;
Sisto_.sville to
Cleveland, via littsburgh and the Pennsylvania Railroad, is
264 miles; 7-: hours to
j
;
hours.
To Richmond by way of Pitts-
burgh and the Baltimore and Ohio to reach Richmond by Parkers-
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Federal Reserve Bank of St. Louis
6
•
burg is 522 mile, with on actual running time of 17 hours;
to ,-dchmond bj way of Theeling, the distance is 517 miles,
an actual running time of 17
hours.
ith
One can also go to Parkers-
burg and :lashington, and thence to Richmond, with the distance
of 534 miles, or running time of 18 hours, while the distance
by way of the 21easant, and Kanawha, and the Chesapeake and
Ohio, is 551 mile, or a distance of sixteen hours and twentythree minutes.
By way of Huntington, Kanawha, and the Norfolk
and Western is 729 miles, or a running time of over twentythree hours, -- twenty-three hours and fifty-eight minutes.
But those,
lien•
as I have stated,
those routes are so long that
they are entirely impracticable.
The Governor of the Board:
May I ask, would you be sub-
jected to the same disadvantage, in your opinion, if Washington
or Baltimore had been designated?
Lve they about as unfavorably
situated?
Mr. Kimball:
No, sir; they are not.
Washington would
have been preferable, and Baltimore would have been also, because our banks carry as it is,
but I will touch on the
business relations in a moment.
The Governor of the Board:
Cleveland and 2ittsburg,
••••••
Well, I mean, with regard to
would they be nearer than 'ashing--
ton or Baltimore?
Mr. Kimball:
Yes, sir.
The Governor of the Board:
So that what you say would
apply equally to Washington and Baltillore?
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Federal Reserve Bank of St. Louis
Csi
Mr. Kimball:
Not to an entirely equal degree.
The Governor of the Board:
Mr. Kimball:
Hot to an equal degree?
No, sir; because Baltimore would be just as
much nearer to us than Baltiore is to 'ashington, rather thr,n
Richmond.
The Governor of the Board:
Mr, Kimball:
Yes.
There would be jut thwt difference on this
end.
The Governor of the Board:
J
That I want to get at is t- lis:
Would this petition have been filed by you if either
or Balti,lore had been designated?
ashington
— ould you still feel your
proper place was in the Fourth Disifict?
Hr. Kimball:
;Tr. Jackson, what would you say?
1:r. A. C. Jackson, 2rosident o-P the first Hational Bank,
Sist, rsville, 7es1; Virgi ia:
Yes; I believe it would.
—e
believed or business connections are such that we all voted
for Zittsburgh as a reserve point, for the reserve b nk, and
our vote was unanimously for Eittsburgh as opposed to Cleveland,
but Cleveland is much more satisfactory than either
ashington
or Baltimore would be, for the reason that
The Governor of the Board (to ;Ir. Kimball):
I did not
want to interrupt you,
Mr. Jackson (continuing):
our business is of 4 nature
that we are more in touch with Pittsburgh than Cleveland,
e
are in the oil and gas busiAers, and they are also, so we are
very °lonely connected, and for twenty years we have kept our
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Federal Reserve Bank of St. Louis
principal reserves in 2itt3burgh.
-e hive very intimate relations
with those banks.
Mr. Kimball:
Now, just answering your question, or touch--
ing on th'It phase or feature of it, the business Tel:-Lions of
the Ohio Valley, and particularly of these two counties, are
al,aost identical with those of the -heeling .1nd 2ittsburgh dis
trict, and to a certain e7ztent with those of the Cleveland. district.
Our business in the Ohio Valley here has been almost
exclusively with -- connected with -- the oil and gas business,
and also with the manufacture of glxss, and steel mills.
are the industries in the Ohio Valley.
Those
They are the same in-
Cov,tries upon which the banking business of Theeling depends,
and also Livt of 2ittsburgh, and to a great extent that of Clcveland.
littsburgh has bon the head of the oil and gas busines:,
for many years.
6istersville,
est Virginia, has been the head
of the oil and gas ousinoss in the .tate of '7est Virginia ever
since oil and gas hav,, been found in that State.
Our banking
has been done in :heeling and 2ittsburgh, because of the similarity of the business in which the two sections have been
In the Wheeling district and 'heeling the industries
manufacture and the manuare ol and gas production, glam
t
arc the same induF,tries
facture of steel and of piping, an: those
two counties in which
that v,e hove in our o;a1 section, in these
engaged.
these banks are located.
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Federal Reserve Bank of St. Louis
,
All of these companies, all of t:,e oil comnr flies
that produce oil, -- and I think that I am correct in saying
all, -- maintain their head offices in Pittsburg, Thnnsylvania, a few of them have their main offices in Cleveland,
Ohio; and all of those companies Day their rentals to the
farmers on their loses in checks on littsburg banks and
on the 7heeling banks, ad those checks may go through our
banks, and their royalties are paid in like manner, and when
oil is purchased by the pipe line companies, it is paid for
by chocks on the Pittsburg banks.
Mr. Jackson:
in Pittsburg.
The books for the ell coml-Tnies are kept
When we sell oil, they wire Iittsburg to get
our balances, so the books are kept tl ere, and also a large
portion of the gas which is consumed in the cities of
Pittsburg, Theelino;, and Cleveland, comes from our county,
or is transported by pipe line to those cities.
Kimball:
Some of the largest, -- or the lrrgest
gas pumping station in the world is located in Webster County,
and the gas that supplies
as 7'r. Jackson has stated --
the gcs that supplies Cleveland and Pittsburg is largely produced in these two counties.
The gas not produced there
at least passes thron3h our counties in being transported to
these two cities, and the direction of our business is all
toward Pittsburg and toward the ClevelRnd district.
Now, I shall not attempt this mornins to touch on the
banking Questions, or ham these banks would be iprticully
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Federal Reserve Bank of St. Louis
11
at
affedted by carrying their reserves at Richmond instead of
have
Cleveland, because I assume that in the arguments that
already then place before you those questions have been
pretty well threshed out, and would apply perhaps to these
banks as well as to the banks for which the arguments have
already been made.
raw, as showing the line of business we have, in our
printed brief, thereappears a statement of the business of
a certain period with these banks, showing the business of
these banks with the Pittsburg district, in comparison with
the Richmond district, during the last week.
These five
petitioning banks have kept an account of their items, and
will desire to file a copy of this with you this morning.
During the week of January 18th to the 23d those five banks
had only twelve items on the Fifth District outside of —est
Virginia, amounting to
213.55.
The items -- the other items
on the Fifth District, -- all items of ';:ebster, Harrison, Tyler,
and Pleasant° Counties, including the two petitioning banks
(
with the two adjoinin 7, counties, -- we had 517 items, amounting to 0_7,542.50.
The items from all other West Virginia
points in the Fifth District, -- we had 135 items, or
c5,152.37. :au that made a total on the :Fifth District of
664 items, amounting to
22,928.42.
But it must be remembered
that only twelve of those items, amounting to ;'.213, are in
.est Virginia,
the Fifth District outside of the State of .
and that 517 of them were from the two petitioning counties
and two adjoining counties now in the Fourth District.
These
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Federal Reserve Bank of St. Louis
banks had 50 items, with 0_35,000 -- (135,337.85, on the
Fourth District.
That shows in a measure the trend of
business, our "due course of business" in this section,
and we think if the act is to be followed, which states
that the banks are to be loccted with "due regard to the
convenience and customary course of business", that then the
customary course of our business in this section demands that
we shall be placed in the rourth District.
Now, as I have stated in my opening remarks, we have
no complaint to make whatever —ith regard to the location
of the reserve banks.
It is purely a business question with
us as to which district our business demands that we be
placed in, and we think that the ordinary course of our
business, both past and present, shows that we are closely
allied with the Fourth District, and therefore that we
should be placed in that district.
If you gentlemen have any questions to ask, we will do
our best to answer them, but we think this briefly states
our case, and the map shows our location geographically.
The fi:7
,
:ures I have given you, and the figures appearing in
our brief here, show conclusively where the bulk of our
business would indicate we should be placed.
Dr. A. C. Miller, a Member of the Board:
Have any of
these other counties in the western section of West Virginia
shown a disposition to join you?
Mr. Kimball:
Dr. Miller:
Not that I am aware of.
Is not the argument you have made applicable
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Federal Reserve Bank of St. Louis
also to Pleasants County?
It might be applicable to Pleasants County.
Yr. Kimball:
The Governor of the Board:
Will you just point out the
other counties?
Here they are here (indicating on the map).
11±. Kimball:
The sume would apply also to these.
There is only one national bank in Plec:s-
Mr. Jackson:
ants County.
M. Kimball:
In several counties.
Yr. Jackson:
The president of that bank called me up
the other evening and inquired about our case before the
Federal Reserve Board, and said they would be very glad to
be placed in the Fourth District also, but had not started
any proceeding.
Hon. Paul M. Warburg, a Member of the 3oard:
Thy did
they not join you?
did not ask them, because Webster and
Yr. Kimball:
Tyler Counties are close together, and we did not ask them.
Dr. Miller:
Are the industries in Pleasants County of
large consenuence?
Mr. Kimball:
Oil and gas is all.
7e have no manufac-
tures.
Dr. Miller:
And only one national bank.
Hon. W. P. G. Harding, a !:ember of the Board:
In case
a branch is established at Parkersburg, how about it then?
Yr. Jackson:
Parkersburg is forty-seven miles away.
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Federal Reserve Bank of St. Louis
14
Parkersburg as from Wheeling.
7:0 are the same distance from
be more convenient for
Yr. Kimball: Cleveland would
us than Charleston.
Mr. Jackson:
Yes, Cleveland would be more convenient.
-r. :imball:
:
We have to go over two lines of railroad
to get to Charleston.
All of the counties,
some one
s of rest Virginia in
asked the question about the countie
Virginia is in the Fifth
the Fourth District, -mall of 7;est
from
-it
1:istrict 0:Keel these four counties here; running
virtually.
these are the four Panhandle Counties,
Geograpi-
le as these
ically, we are as much a -part of the Panhand
counties are tLemsclves.
River.
e are in the valley of the Ohio
Our industries are e::actly the same.
7e are closely
connected by railroad connection, telegraph, telephone, and
the configuration of the country.
7est Virginia is a very
rough state.
The Governor of the DcKret:
That is the outline of West
Virginia and Virginia?
Mr.
map).
':cst Virginia runs here (indicating on
-ryland; that comes in here; this is the rest
This is :'
Virginia line, and the Ohio River is here (inOicr)ting on
The Governor of the Board:
Dr.
Mr. Rimball:
Yes.
It runs up there in the Panhandle, does it?
Yes,
This red line, which is the Lc,ltimore
and Ohio Rvilro?,d (indicatinr on trlep), is also the boundary
line of riept VirginiP,.
I can not see now; it runs here (in-
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Federal Reserve Bank of St. Louis
dicating).
The Governor of the Board:
That is the line between
Virginia and - est Virginia (indicating on map)?
Ilrr, Kimball:
Yes, sir; no, here it is (indic.Yting on
map).
The Governor of the Board:
Mr. Kimball:
Oh, yes.
It comes down here; this is the Yaryland
line here (indicating on map).
But all of rest Virginia is
in the rifth District, with the exception of tiose four
counties there, and we are just as much a part of that Panhandle as those counties themselves.
The Ohio River here
(indicating on map) is very rough a few miles back, and
mountainous, and as I said, no rLilroads ran through except
along the bed of a stream.
It is impossible for them to get
through.
Some gentleman asked Tie if the arguments we have advanced would be equally true as regards the other counties
we have mentioned.
They ;:ould be true as to Pleasants County,
but not to 7,00d or the other counties south, because they are
on the main line of the Baltimore and Ohio east.
':je are on
a line of the Baltimore and Ohio runninh; from hanawha up
.
the Ohio River to Pittsburg, and the Baltimore and Ohio cast
runs out as shown by this line here, fnd the Yanawha, and
Chesapeake and Ohio and those lines there.
Dr.
:hat is the approximate capital of the
banks represented?
hr. rimball:
I am glad you asked that question.
This
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Federal Reserve Bank of St. Louis
16
transfer can be made without throwing out of balance the
capital of the reserve bank at Richmond.
The combined capital
and undivided profits of the five banks is 031,000.
Their
subscription to the reserve bank at :ichmond is something over
01,000.
The Governor of the Board:
r. 2.imbell:
Lre there any other auestions?
Doctor, is there anything else, or :"r.
achson, that you would like me to speak about?
Dr. G. 3. west, Zresident of the People's National Bank,
Sistersville, West Virginia (residing at 3464 Macomb Street,
Cleveland lark, Cashington, B. C.):
I think there is nothing
else.
3 -r. Jackson:
I think not.
I believe you have covered
the ground very thorouGhl.
The Governor of the Board:
I have a letter from 7r. Hum-
ton (referring to Yr. Eppa runton, counsel representing tt:e
Reserve Bank for the Fifth a)istrict, of Richmond, Virginia).
Perhaps he has advised yotu-r. Zimball:
Hi
liL.rtner did.
The Governor of the l';or_rd (continuing) -- that he will
not be here, and th) t he will simply file a brief.
lir. Kimball;
I feel like apologizing to the Board because
I have not perhaps been more logical, or presented this matter
in a clearer manner, but I feel souiewhat handicapped by the
fact that we are rather overshadowed in this case by the
great importance of the other cases that you gentlemen have
heerd; but this case is as imortant to us --to tl'oEle five
banks -- as the other cases have been to those petitioning
bodies.
Now I desire to file with you sentlemen, -- I have only
two copies here, -- of the statement of the last two of these
five b‘riThs, thawing the items on the Fourth District an0 on
the Vifth District, as well au the tables showing the distances and time of connection.
The Governor of the l'oard:
uill you send a copy to the
counsel on the other side?
r. i:lmball:
I will do so.
i would like to have a cory
made for each member of the Board,
nd you will , ve them to
I
refer to.
The "Jovernor of the Beard:
That is L11 right; keep those
then, aria mail ttem to u$.
Mr. Kimball:
We will do so.
The uovernor of the Board:
Gentlemen, we will take this
under consideration, and advise you.
r. himball:
Would you care to nava that map, gentlemen?
The Governor of the Board:
the map.
I think WG woul
like to have
:e can return it, .you ,„3- ow.
a
3"r. iamball:
Gentlemen, I would like you to keep in
mind this point, in considering this transfer, and that is,
the identity of the business 'with our businesc, of the
locality
that our bLn1:6 are situated in with the business of the
Fourth
District.
i
Ile 'ousiness that we are engaged in is almost ex-
elusively the oil and gas business.
Ville in years past,
'V
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Federal Reserve Bank of St. Louis
Our business in Sisters-
I think I will be correct in saying
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Federal Reserve Bank of St. Louis
18
has been dependent exclusively on the oil and gas business.
Yr. Jackson:
In fret, there would never have been any
banks there had it not been for the oil and gas business.
,
r. :7im1f- 11:
bank.
7e have four banks there.
One is a state
Listersville Las only four thousand inhabitants.
The
L
eapitel stock of each of our four ban- s is c375,000, so you
must see there has been a considerable business there, considering the size o1' the town, to warrant the establishment
of those four banks.
nr. Jackson:
The deposits in the four banks are about
1••••
over two cnd one-half million.
Tr.nmbell:
And underst:nd this is due almost exclusive-
ly to the oil and gas business, the - entale ti:e people receive,
2
the payment of royalties, and money in payment for the oil.
The oil is purchased by the 3trudard companies, and as we
have said to you, their offices are in :ittsburg, and payments
are always made in checks on :2ittsburg banks, and i would
like to add to what I have said, that, according to the Oomptroller's report, none of our banks, I believe, carries any
accounts in Richmond.
The Governor of tne Board:
:lone of them?
7.T. Walter R. Reitz, Cashier of tne Farmers and
Producers
Eational Bank, Oistersville, West Virginia:
is carried in baltimore.
we will be handicapTod.
One small account
That is tile point where we uelieve
:e will receipt tne Federal
Eeserve
Bank in Rienmond for a nuLloer of items, and
have nothing on
the Ilfth District; all our items will be on
the Fourth
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Federal Reserve Bank of St. Louis
19
District unless they collect items on the Fifth District, cnd
that would take four days.
Pr. _Kimball:
I would like to call abtention to this
lion. if. i. 1)01ano, a timber of the Board:
is thcii. in
your map?
fc, the map showing the location of
1,1r.
barli.z:s carrying accounts with the l'.ichmonci banks and trust
companies.
ilow this i
Vest Virginia here (indicating on
map), end here is the .Panhaladle, ind our two counties c.re
located taere
1.A7,7 that •.,;11l give you gentlemen
pn idea ot the banks carrying accounts.
The .=-)vernor of the dorCt:
1,ha t is the number of that
reference, -- the ;2enate Document?
It is Idoeument 435,, the location of federal reservi district banks.
The (iov)rnor of the Bord:
.ye have tha same information;.
I wanted to look that up.
Yr.h1mbi.11:
I will be ver;/ glad. to leave tills with you.
Now, the:e is
C.7.1 other
map I desire to call sour attention
to ,.7.1.,10, and t ,t to a mai) of the vote taken on the loction
of the reserveb&nk. , Our counties are located right there
(indicating on nap).
The
all
^
lovexiii..r of the .6ov..rd:
-
Vie Nvill carefully consider
this, Lnd ;;1 advise L7ou later.
-
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