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M e m b e r s o f the B o a r d of G o v e r n o r s of the F e d e r a l R e s e r v e S y s t e m a r e s u b j e c t to r e m o v a l f r o m o f f i c e t!f o r c a u s e ” b y the P r e s i d e n t . F e d e r a l R e s e r v e A ct , § 10, par. 2 (12 U. S.C* § 242). Th e l a w p r o v i d e s th at m e m b e r s " s h a l l d e v o t e t h e i r e n t i r e ti me to the b u s i n e s s of the B o a r d . ” F e d e r a l R e s e r v e Act , § 10, p a r 1 (12 U . S . C . § 241). The l a w p r o v i d e s that "no m e m b e r # -* -* s h a l l b e an o f f i c e r o r d i r e c t o r of a n y bank, b a n k i n g i n s t i t u t i o n , t r u s t c o m p a n y , or F e d e r a l R e s e r v e Bank, o r h o l d s t o c k in a n y b a nk , b a n k i n g i n s t i t u t i o n , or t r u s t c ompany; a n d he s h a l l c e r t i f y u n d e r o a t h that he h a s c o m p l i e d w i t h t h i s r e q u i r e m e n t . F e d e r a l R e s e r v e Ac t, § 10, p a r . 4 (12 U . S . C . § 24 4)* Important relevant facts M a r r i n e r S. E c c l e s h as t e s t i f i e d u n d e r oath, F e b r u a r y 7 - 14, 1949, in p u b l i c h e a r i n g s h e l d b e f o r e a n o t h e r m e m b e r of th e B o a r d of G o v e r n o r s in a p r o c e e d i n g i n i t i a t e d b y the B o a r d , p u r p o r t e d l y u n d e r the C l a y t o n A n t i - T r u s t A ct , a g a i n s t T r a n s a m e r i c a c o r p o r a t i o n , to the f o l l o w i n g e f f e c t : 1, He h a s h e l d the f o l l o w i n g p o s i t i o n s in p r i v a t e b u s i n e s s e s t h r o u g h o u t the p e r i o d in w h i c h h e h a s b e e n a m e m b e r of the B o a r d , a n d d u r i n g the l a s t f iv e or s ix y e a r s he h a s b e e n out in U t a h , I d a h o a n d W y o m i n g , w h e r e m o s t o f the b u s i n e s s e s in q u e s t i o n ha v e t h e i r h e a d q u a r t e r s , a n a v e r a g e of two to thr ee t i m e s a year, s t a y i n g a n y w h e r e f r o m a f e w da ys to a f e w w e e k s on e a c h o c c a s i o n ! S t o d d a r d L u m b e r C o m p a n y (timber, r o u g h l u m b e r a n d m i l l i n g o p e r a t i o n s )- P r e s i d e n t a n d d i r e c t o r . A n d e r s o n L u m b e r C o m p a n y ( r e t ai l l u m b e r o p e r ation! - D i r e c t o r * A m a l g a m a t e d S u g a r C o m p a n y (a p u b l i c l y o w n e d c o m p a n y w i t h t h o u s a n d s o f s h a r e h o l d e r s , in w h i c h Mr, Eccles and members of his family own ap pr o x i m a t e l y 1 0 % of the stock) - C h a i r m a n of B o a r d a n d D i r e c t o r , Eccles Hotels, I n c , - President, Mo untain States Implement Company - Director, Sego Milk Products Company - President a n d Director, U t a h C o n s t r u c t i o n C o m p a n y (ge ne r a l c o n t r a c t o r s ) C h a i r m a n of B o a r d a n d D i r e c t o r , Mr. E c c l e s t e s t i f i e d tha t U t a h C o n s t r u c t i o n C o m p a n y flh a s h a d a g r e a t m a n y g o v e r n m e n t c o n t r a c t s . ” A m o n g t h o s e in w h i c h he t e s t i f i e d it p a r t i c i p a t e d w i t h o t h e r c o m p a n i e s in recent years were: a. G e n e v a S t ee l P l a n t at P ro vo , U t a h ( b u i l d i n g .of f o u n d a t i o n s , roads, a n d h e a v y c o n s t r u c t i o n work) a government war project contract exceeding $200,000,000, w h i c h w a s n o t l e t out a t b i d s a n d in w h i c h U t a h C o n s t r u c t i o n C o m p a n y p a r t i c i p a t e d w i t h t wo o t h e r c o m p a n i e s in a $ 2 5 , 0 0 0 , 0 0 0 p o r t i o n o f the job. b. D a v i s D a m in A r i z o n a - a $ 2 1 , 0 0 0 , 0 0 0 g o v e r n m e n t job in w h i c h U t a h C o n s t r u c t i o n C o m p a n y p a r t i c i pated. c* N o r f o l k D a m at M o u n t a i n H ome, A r k a n s a s , in which Utah Construction Company participated. d. A l c a n H i g h w a y in w h i c h U t a h C o n s t r u c t i o n C o m p a n y w a s b r o u g h t in b y the A r m y e n g i n e e r s a n d a s s i g n e d a p a r t o f the w o r k . e. P h i l i p p i n e c o n s t r u c t i o n w o r k f o r the A r m y a $ 2 0 , 0 0 0 , 0 0 0 c o s t - p l u s f i x e d fee c o n t r a c t , i n w h i c h U t a h C o n s t r u c t i o n C o m p a n y is p a r t i c i p a t i n g as one of nine contractors. 2* Mr. E c c l e s a d m i t t e d s p e n d i n g time on the a f f a i r s o f the a b o v e c o m p a n i e s w h e n on h i s t r i p s to U t a h , a n d also admitted making "very f e w ” long distance telephone calls f r o m W a s h i n g t o n w i t h r e f e r e n c e t o his p r i v a t e i n t e r e s t s . A l t h o u g h n o t c h a r g e d d u r i n g this t e s t i m o n y w i t h n e g l e c t of h i s p u b l i c d ut y, Mr. E c c l e s w e n t out of h i s w a y to s t a t e that he h a d a v e r a g e d ’ ’ v e r y m u c h m o r e t h a n the f o r t y h o u r s a w e e k w h i c h is the s t a n d a r d time in W a s h i n g t o n f o r a l l f e d e r a l employees.w Demand was made b y counsel fo r Transamerica Cor p o r a t i o n t ha t the B o a r d * s r e c o r d s o f Mr. E c c l e s 1 p e r s o n a l l o n g d i s t a n c e t e l e p h o n e c all s ( w h i c h a d m i t t e d l y a r e in the B o a r d * s f i l e s f o r the l a s t s e v e n years) be p r o d u c e d , b u t the demand was refused. 3. Mr. E c c l e s t e s t i f i e d that he p e r s o n a l l y owns o n e - n i n t h o f the s t o c k of a f a m i l y h o l d i n g c o m p a n y c a l l e d E c c l e s I n v e s t m e n t C om p a n y , o f w h i c h h i s e i g h t b r o t h e r s a n d s i s t e r s ow n the o t h e r e i g h t - n i n t h s ; t ha t E c c l e s I n v e s t m e n t C o m p a n y in t u r n o w n s 4 4 $ o f th e v o t i n g s h a r e s of F i r s t S e c u r i t y C o r p o r a t i o n , a b a n k h o l d i n g c o m p a n y , w h i c h in t u r n o w n s n e a r l y 1 0 0 $ o f the s t o c k o f c e r t a i n b r a n c h b a n k s in U t a h , Idah o, a n d W y o m i n g , w h i c h c o n s t i t u t e a n d a d v e r t i s e t h e m s e l v e s as the “l a r g e s t i n t e r - m o u n t a i n b a n k i n g o r g a n i z a t i o n * ft Mr. Eccles himself was President of First Security Corporation a n d an o f f i c e r of the b a n k s o w n e d b y it p r i o r to b e c o m i n g a m e m b e r of the B o a r d of G o v e r n o r s , a n d h i s y o u n g e r b r o t h e r , G e o r g e E c c l e s , is n o w P r e s i d e n t o f b o t h the c o r p o r a t i o n a n d the b a n k s * T he b u l k o f the F i r s t S e c u r i t y b a n k o p e r a t i o n s a re in the 1 2 t h F e d e r a l R e s e r v e D i s t r i c t * 4* Mr. E c c l e s a p p r o v e d the f i l i n g of a c o m p l a i n t b y the B o a r d of G o v e r n o r s a g a i n s t T r a n s a m e r i c a C o r p o r a t i o n [a b a n k h o l d i n g C o m p a n y w h i c h ow n s m a j o r i t y s t o c k i n t e r e s t s in 46 ba n k s , a n d m i n o r i t y ( a p p r o x i m a t e l y 23$) stock inter e s t s in two o t h e r b a n k s (all o p e r a t e d in the 1 2 t h F e d e r a l R e s e r v e D i s t r i c t ) ] c h a r g i n g T r a n s a m e r i c a w i t h v i o l a t i o n of the C l a y t o n A c t ,fb y s u b s t a n t i a l l y l e s s e n i n g c o m p e t i t i o n " a n d flt e n d i n g to c re a t e a m o n o p o l y ” in the b a n k i n g b u s i n e s s . He a d m i t s , h o w e v e r , t h a t he d i d n o t k n o w o r c o n s i d e r , a n d d i d n o t t h i n k it n e c e s s a r y to c o n s i d e r , w h e t h e r c o m p e t i t i o n h a d a c t u a l l y b e e n l e s s e n e d i n a n y c o m m u n i t y o r s ta te r e f e r r e d to in the c o m p l a i n t * 5. Mr. E c c l e s s t a t e d t h a t he a t t e m p t e d in 1 9 4 0 a a g a i n in 1 9 4 3 to o b t a i n an a g r e e m e n t f r o m T r a n s a m e r i c a Cor - p o r a t i o n that it w o u l d n o t p u r c h a s e a n y m o r e b a n k s w i t h o u t the a d v a n c e a p p r o v a l of the B o a r d of G o v e r n o r s of the F e d e r a l R e s e r v e S y s t e m , a l t h o u g h he t h e n k n e w a n d w a s a d v i s e d b y c o u n s e l th a t the B o a r d ’ ’ h a d n o l e g a l a u t h o r i t y to r e q u i r e ” such approval# 6. Mr. E c c l e s t e s t i f i e d that h i s 1 9 4 5 n e g o t i a t i o n s r e s u i t e d in a t e n t a t i v e a g r e e m e n t w i t h A. P. G i a n n i n i , C h a i r m a n o f the B o a r d of T r a n s a m e r i c a , tha t T r a n s a m e r i c a w o u l d s u b m i t to a n y r e s t r i c t i o n s w h i c h w o u l d be m a d e e q u a l l y a p p l i c a b l e to a l l b a n k h o l d i n g c o m p a n i e s . However, when another member of the Bo ar d, J o h n M c K e e , t r i e d to c h a n g e the t e r m s of the t e n t a t i v e a g r e e m e n t a n d i n d i c a t e d t h a t the B o a r d s a w n o n e e d to i m p o s e r e s t r i c t i o n s on o t h e r h o l d i n g c o m p a n i e s , A. P. G i a n n i n i c a u s e d the B o a r d to be i n f o r m e d in w r i t i n g t h a t he c o u l d n o t c o n s e n t to the p r o p o s e d d i s c r i m i n a t o r y c h a n g e s . A l t h o u g h Mr. G i a n n i n i fs l e t t e r ( w h i c h w a s p r o d u c e d f r o m the B o a r d ’s f i l e s on d e m a n d of T r a n s a m e r i c a ) s h o w e d on its f a c e that it h a d go n e t h r o u g h Mr. E c c l e s * o f f i c e in A p r i l , 1 9 4 3 (Mr. E c c l e s * n a m e b e i n g c h e c k e d off on the face of the B o a r d ’ s c o p y ) , Mr. E c c l e s t e s t i f i e d that he d i d n o t r e a d the l e t t e r u n t i l it w a s s h o w n to h i m on the w i t n e s s s t a n d on F e b r u a r y 11, 1 9 49 , n e a r l y s ix y e a r s a f t e r its r e c e i p t * 7. I n s t e a d of c a r r y i n g out his p u b l i c d u t y to s u p p o r t the a g r e e m e n t s o f the B o a r d , Mr. E c c l e s , w i t h o u t f u r t h e r c o n v e r s a t i o n on the s u b j e c t w i t h a n y o f f i c e r of T r a n s a m e r i c a , p u b -5- licly a t t a c k e d T r a n s a m e r i c a in t e s t i m o n y b e f o r e C o n g r e s s i o n a l C o m m i t t e e s , a n d u n s u c c e s s f u l l y so u g h t b a n k h o l d i n g c o m p a n y l e g i s l a t i o n f r o m C o n g r e s s on t hr ee d i f f e r e n t o c c a s i o n s (1945, 1946, a n d 1 9 4 7 ) , w h i c h w o u l d h a v e g i v e n t h e B o a r d of G-overnors a v e t o p o w e r o v e r T r a n s a m e r i c a 1s f u t u r e i n v e s t m e n t s * The p r o p o s e d l e g i s l a t i o n s o u g h t b y Mr* E c c l e s w o u l d a l s o h a v e d i s c r i m i n a t e d in v a r i o u s w a y s a g a i n s t T r a n s a m e r i c a a n d in f a v o r of E c c l e s I n v e s t m e n t C o m p a n y , w h i c h w a s e n g a g e d in t h e same ty pe of b u s i n e s s in the same s e c t i o n of the c o u n t r y * 8* Mr. E c c l e s t e s t i f i e d that in F e b r u a r y , 1942, the B o a r d , of w h i c h he w a s t h e n C h a i r m a n , m a d e a n a g r e e m e n t (c o n f i r m e d in wr it i n g ) w i t h the C o m p t r o l l e r of the C u r r e n c y a n d the F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n . The agreement p r o v i d e d that the R e s e r v e B o a r d a n d the o t h e r two a g e n c i e s w o u l d t h e r e a f t e r d e c l i n e p e r m i s s i o n f o r the a c q u i s i t i o n of a n y a d d i t i o n a l b a n k i n g o f f i c e s or a n y s u b s t a n t i a l i n t e r e s t t h e r e i n b y T r a n s a m e r i c a C o r p o r a t i o n or B a n k o f A m e r i c a N a t i o n a l T r u s t and Savings Association* P u r s u a n t to tha t a g r e e m e n t , the R e serv e B oa r d , f r o m F e b r u a r y 14, 1942, to date, h a s r e f u s e d e v e r y a p p l i c a t i o n p r e s e n t e d to it, w h i c h r e l a t e d to b a n k s or b a n k i n g o f f i c e s in th e State o f C a l i f o r n i a in w h i c h T r a n s a m e r i c a C o r p o r a t i o n h a d a n y i n t e re st * The B o a r d h a s n o t e v e n f o l l o w e d its n o r m a l p r o c e d u r e f o r p r o c e s s i n g a p p l i c a t i o n s w h e r e the a p p l i c a t i o n s r e l a t e d to b a n k s in w h i c h T r a n s a m e r i c a C o r p o r a t i o n h a d an i n v e s t m e n t . W h e n a s k e d if the a g r e e m e n t w i t h -6- the o t h e r a g e n c i e s w a s in e f f e c t an a g r e e m e n t th a t the B o a r d w o u l d d i s r e g a r d its d u t y u n d e r the l a w a n d d e n y a l l T r a n s a m e r i c a a p p l i c a t i o n s , r e g a r d l e s s of the m e r i t s , Mr. E c c l e s r e f e r r e d t o t h e a b o v e - m e n t i o n e d l e t t e r of F e b r u a r y , 1 9 4 2 , c o n f i r m i n g the f a c t o f the a g r e e m e n t a n d said, M l h a v e n o t h i n g f u r t h e r to s a y # 11 [The a g r e e m e n t in q u e s t i o n a n d a c o n d i t i o n of m e m b e r s h i p i m p o s e d b y the B o a r d p u r s u a n t to it, w e r e e x p r e s s l y h e l d i l l e g a l b y the U n i t e d S t a t e s C o u r t of A p p e a l s f o r the D i s t r i c t of C o l u m b i a in P e o p l e s B a n k v. E c c l e s , 1 6 1 P. 2 d 636 (1947)# The U n i t e d S t a t e s Su p r e m e C o u r t s u b s e q u e n t l y h e l d th at the B o a r d 1s t h r e a t of e n f o r c e m e n t o f its c o n d i t i o n w a s n o t s u f f i c i e n t l y i m m i n e n t t o g iv e the c o u r t j u r i s d i c t i o n , but d i d not, in i t s o p i n i o n , q u e s t i o n the c o r r e c t n e s s o f the C o u r t of A p p e a l s d e t e r m i n a t i o n of i l l e g a l i t y . ] 9. Mr. E c c l e s t e s t i f i e d that p r i o r to 194 4, the B o a r d h a d n e v e r b e e n a d v i s e d that it h a d a n y d u t i e s or r e s p o n s i b i l i t i e s u n d e r the C l a y t o n Act, a l t h o u g h t h r o u g h o u t t h e p e r i o d of t h i r t y y e a r s p r e c e d i n g 1 9 4 4 in w h i c h the C l a y t o n A c t h a d b e e n on the b o o k s , the B o a r d h a d h a d c o u n s e l w h o w e r e c h a r g e d w i t h the d u t y of a d v i s i n g it as to its l e g a l r e s p o n sibilities. He s t a t e d that in 1 9 4 4 he s o u g h t the a d v i c e o f an a t t o r n e y t h e n in the e m p l o y o f the B o a r d a n d o b t a i n e d an o p i n i o n w h i c h r a i s e d c e r t a i n d o u b t s r e s p e c t i n g the B o a r d ’s j u r i s d i c t i o n u n d e r the C l a y t o n A c t , a n d w h i c h s u g g e s t e d t h a t the B o a r d " e x p l o r e the q u e s t i o n s r a i s e d w i t h t he A t t o r n e y G e n e r a l , w i t h a v i e w p o s s i b l y of o b t a i n i n g a n o p i n i o n w i t h r e s p e c t to the B o a r d * s a u t h o r i t y a n d r e s p o n s i b i l i t y * ’ 1 He s t a t e d t h a t in 1 9 4 4 a n d 1 94 5, th e A t t o r n e y G e n e r a l c o n d u c t e d a n a n t i t r u s t i n v e s t i g a t i o n of T r a n s a m e r i c a C o r p o r a t i o n w i t h the B o a r d * s c o o p e r a t i o n , a n d th at at the e n d of a t w o y e a r i n v e s t i g a t i o n , in the l a t t e r p a r t of 1945, the A t t o r n e y G e n e r a l c o n f e r r e d w i t h h i m a n d d e c l i n e d to u n d e r t a k e a p r o s e c u t i o n o f T r a n s a m e r i c a u n d e r the A n t i - T r u s t L a ws * Also, in 1 9 4 5 , the B o a r d e m p l o y e d as A s s i s t a n t G e n e r a l C o u n s e l a m a n w h o h a d b e e n e n g a g e d f o r some y e a r s in u n s u c c e s s f u l l y p r o s e c u t i n g T r a n s a m e r i c a C o r p o r a t i o n in a n a d m i n i s t r a t i v e p r o c e e d i n g b e f o r e the SEC* T h e r e a f t e r , in F e b r u a r y , 1947, Mr, E c c l e s u r g e d th e A t t o r n e y G e n e r a l to r e c o n s i d e r h i s p r e v i o u s o p i n i o n tha t n o p r o s e c u t i o n of T r a n s a m e r i c a w a s w a r r a n t e d , b u t the A t t o r n e y G e n e r a l n e v e r c h a n g e d h i s p r e v i o u s o pi n i o n * Mr* E c c l e s a l s o a d m i t t e d that it w a s a f t e r a l l of the f o r e g o i n g a c t s t h a t he a s k e d the B o a r d * s n e w A s s i s t a n t G e n e r a l C o u n s e l , in the f a l l of 1 9 4 7 , f o r a f u r t h e r o p i n i o n on the m a t t e r a n d o b t a i n e d a t h r e e p a g e m e m o r a n d u m r e c o m m e n d i n g that the B o a r d i n i t i a t e a n a n t i - t r u s t p r o c e e d i n g b e f o r e i t s e l f as p r o s e c u t o r , judge, a n d jury, a n d that u p o n t h e b a s i s of that o p i n i o n , a n d a s u b s e q u e n t i n v e s t i g a t i o n b y the B o a r d * s o wn staff , the B o a r d d i d so in Jun e, 1948* 10* Mr. E c c l e s h a s p u b l i c l y e s p o u s e d the p r i n c i p l e s and policies followed both by Transamerica Corporation and by -8- F i r s t S e c u r i t y C o r p o r a t i o n (in w h i c h E c c l e s I n v e s t m e n t C o m p a n y h a s a l a r g e i n t e r e s t ) , as w e l l as b y o t h e r b a n k h o l d i n g c o m p a n i e s as b e i n g d e f i n i t e l y in the p u b l i c i n t e r e s t a n d c a l c u l a t e d to p r o d u c e a m u c h s a f e r a n d s o u n d e r b a n k i n g s t r u c t u r e t h a n h a s e x i s t e d in the U n i t e d S t a t e s in the p a s t . I n s p i t e of t hose b e l i e f s , w h i c h he a d m i t t e d in h is t e s t i m o n y he s t i l l h o l d s , he h a s c o n t i n u e d to p r e s s the c o m p l a i n t a g a i n s t T r a n s a m e r i c a C o r p o r a t i o n , d e s i g n e d to p r e v e n t its c o n t i n u e d o p e r a t i o n in a c c o r d a n c e w i t h thes e a d m i t t e d l y s o u n d p r i n c i p l e s . UVhen T r a n s a m e r i c a d e m a n d e d h i s d i s q u a l i f i c a t i o n f o r b i a s a n d p r e j u d i c e , Mr. E c c l e s i m m e d i a t e l y d i s q u a l i f i e d h i m s e l f f r o m p a r t i c i p a t i n g in the d e c i s i o n . H o w e v e r , he is s ti ll p u b l i c l y p r e s s i n g the c h a r g e s b y h i s t e s t i m o n y * 11. Mr. E c c l e s t e s t i f i e d tha t he f e e l s t h a t the u n i t b a n k s n e e d p r o t e c t i o n f r o m c o m p e t i t i o n if t h e y ar e to s t a y in b u s i n e s s b e c a u s e of t h e i r i n a b i l i t y to p r o v i d e the same c h a r a c t e r a n d q u a l i t y of s e r v i c e s to the p u b l i c as are p r o v i d ed by their bra n c h bank competitors. T h i s t e s t i m o n y is t a n t a m o u n t to an a d m i s s i o n t h a t the p u r p o s e of th e p e n d i n g p r o c e e d ing a g a i n s t T r a n s a m e r i c a C o r p o r a t i o n is to r e s t r a i n T r a n s a m e r i c a f r o m p r o v i d i n g a d d i t i o n a l c o m p e t i t i o n to e x i s t i n g u n i t b a n k s r a t h e r t h a n to p r e v e n t a n y l e s s e n i n g of c o m p e t i t i o n . Th e f o r e g o i n g m e r e l y o u t l i n e s the f a c t s w h i c h h a v e b e e n s p e l l e d out in se v e r a l h u n d r e d p a g e s of t e s t i m o n y a n d n u m e r o u s e x h i b i t s , a l l of w h i c h ar e n o w on file w i t h the B o a r d of G o v e r n o r s a n d a v a i l a b l e f o r p u b l i c i n s p e c t i o n . It is b e l i e v e d th a t t h e s e f a c t s p r o v i d e the P r e s i d e n t w i t h a d e q u a t e ”c a u s e ” f o r d i s m i s s a l o f M a r r i n e r S. E c c l e s f r o m h i s p o s i t i o n a s a m e m b e r of the B o a r d of G o v e r n o r s o f the F e d e r a l R e s e r v e S y s t e m , in tha t t h e y sh o w that: 1. Mr* E c c l e s has d e v o t e d s u c h a t t e n t i o n a n d m a i n t a i n e d s u c h i n t e r e s t in n u m e r o u s p r i v a t e b u s i n e s s e s d u r i n g h i s m e m b e r s h i p on the B o a r d as to p r e c l u d e h i s g i v i n g to h is p u b l i c d u t i e s h i s " e n t i r e t i m e ”, as r e q u i r e d b y law. 2. Hi s l a r g e f i n a n c i a l i n t e r e s t ( t h r o u g h a f a m i l y h o l d i n g company) in the " l a r g e s t i n t e r - m o u n t a i n b a n k i n g o r g a n i z a t i o n ”) c o n s t i t u t e s a d e f i n i t e v i o l a t i o n of the sp ir it, if n ot the l e t t e r , o f t h e s t a t u t o r y p r o h i b i t i o n a g a i n s t m e m b e r s o f the B o a r d o w n i n g s t o c k o r m a i n t a i n i n g o f f i c i a l p o s i t i o n s in b a n k i n g i n s t i t u t i o n s , a n d the m a i n t e n a n c e of s u c h i n t e r es t b y Mr. E c c l e s h a s i n f l u e n c e d h i m to p e r f o r m h i s p u b l i c d u t i e s in a b i a s e d a n d p r e j u d i c e d m a n n e r , w h o l l y i n c o n s i s t e n t w i t h the p u b l i c in t e r e s t . The s i t u a t i o n is c e r t a i n l y one c a l c u l a t e d to i m p a i r p u b l i c c o n f i d e n c e in the f a i r n e s s a n d i m p a r t i a l i t y of a g o v e r n m e n t a g e n c y c h a r g e d b y l a w w i t h i m p o r t a n t r e s p o n s i b i l i t i e s a f f e c t i n g the e c o n o m i c w e l f a r e of the e n t i r e nation* 3. He h as i n f l u e n c e d a n d p u b l i c l y p r e s s e d the i n i t i a t i o n a n d p r o s e c u t i o n of a p r o c e e d i n g a g a i n s t T r a n s a m e r i c a C o r p o r a t i o n w i t h o u t a d e q u a t e r e a s o n t o b e l i e v e t h a t the re h a s b e e n a n y v i o l a t i o n of law, a n d c o n t r a r y t o t h e a d v i c e o f the U n i t e d S t a t e s A t t o r n e y G e n e r a l w h o m he c o n s u l t e d . Th e c o n t i n u a t i o n of s u c h p r o c e e d i n g is n o t o n l y c a l c u l a t e d to f o r c e the r e s p o n d e n t (a p u b l i c l y o w n e d c o m p a n y w i t h m o r e t h a n 1 4 5 , 0 0 0 s h a r e h o l d e r s ) to i n c u r great e x p e n s e f o r a l o n g p e r i o d o f time, b u t is a l s o c a l c u l a t e d to i n t e r f e r e w i t h the e f f o r t s of t h a t c o r p o r a t i o n a n d b a n k s in w h i c h it is i n t e r e s t e d to p r o v i d e the m o s t r a p i d l y g r o w i n g s e c t i o n of the U n i t e d S t a t e s w i t h a d e q u a t e a n d safe b a n k i n g s e r v i c e in the p u b l i c i n t e r e s t .
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