The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
UL h•• • -. .- -. U1 =• • ~ ••••••• U1 _ u u u u __ ~ t •• To the Banks in the Fourth Federal Reserve District: We are pleased Bank of Cleveland saddened by November for 1970. the death 28, 1970. to present the Annual Report of the Federal As you know, of W. Braddock His loss has been Reserve the past year at the Bank was Hickman, deeply president felt from by the 1963 Bank and to the community. We wish to acknowledge areas of the Fourth District's the Bank in fulfilling the employees possible the dedicated economy, its purpose of the Federal Bank's recent successful but of the leaders from all who generously last year. Most importantly, Bank of Cleveland, operation. In a sense, helped we are grateful whose to help makes this Annual Report is to those employees. both years, followed men and women Reserve In the following through again the assistance pictures pages, and story. and the operations the functions of the Bank are described The world of finance has changed of the Federal Reserve Bank of Cleveland suit. Not only has the volume of transactions in addition, necessitated and increased our responsibilities new equipment, reliance have become reorganization markedly increased more of some functions in have tremendously, complex. This has and departments, on the staff at the Bank. This Annual Report attempts to show the Bank as it enters the decade of the 70's. CHAIRMAN OF THE BOARD FIRST VICE PRESIDENT The Bank • 1970 In The Federal Reserve Bank of Cleveland is one of the twelve regional banks that make up the Federal Reserve System. This Bank serves the entire state of Ohio, six counties in West Virginia, 56 counties in eastern Kentucky, Pennsylvania. and The 19 counties Bank has in western branch offices in Pittsburgh and Cincinnati. The scope of the operations of this Bank ranges from offering services to banks and the public to serving the people within services performed the Bank. Among the by the Bank are collecting and clearing checks, furnishing currency for circulation, and acting as fiscal agent, custodian, and depositary for the U. S. Treasury and Government agencies. Through its Bank Relations and Public Information Departments, the Bank fosters communication with commercial banks as well as the general public. The Bank also has a supervisory responsibility over statemember banks. Many internal services, provided by departments such as Accounting, Audit, Legal, Personnel, Protection, Mail, and Data Processing, are designed to give support to the operation of the entire Bank. In order to perform all these services, the Bank needs a large staff directors. Although of employees, their training diverse, each has an important officers, and and skills are role to play to keep the Bank working in an efficient manner. This Annual Report was written attempts service functions operations. with these people in mind. It to inform you about the Bank's external as well as its internal support It is our hope that this Annual Report will add to an understanding of the purposes and functions of the Federal Reserve Bank of Cleveland. 4. future date. Normally, payment for these items is not credited to the depositor's account until the Federal Reserve Bank receives the collected items include matured funds. These bonds and coupons, drafts with passbooks, and acceptances, among others. COMMUNICATIONS DEPARTMENT Last year billions of dollars were transferred through a new, enlarged communications network operated by the Federal Reserve System. For example, a member bank in the Fourth District may instruct the Bank to transfer a portion of its reserve account to another member bank. If that bank is in another Federal Reserve district, the Federal Reserve Bank of Cleveland uses the System's private wire service to instruct the receiving Federal Reserve office to credit the funds to the receiving member bank's reserve account. These transfers are effected on the same day and are frequently used by member banks with excess reserves they want to loan overnight to other member banks that need to increase their reserve account balances (Federal funds transactions). They are also used transfers to customers make immediate of member banks funds and to settle for large noncash collections. The three offices of the Federal Reserve Bank of Cleveland member processed banks 532,000 funds transfers during 1970, amounting to for $750 billion. CHECK COLLECTION DEPARTMENT As a crucial service to the business and financial community, as well as the general public, the Federal Reserve System provides a nationwide network to clear and collect checks. Nearly all checks are coded with special symbols printed in magnetic ink that permits the checks to be processed through high-speed electronic sorting machines such as those that are linked with this Bank's computer. In 1970, the Check Collection Departments at the main office and the Pittsburgh and Cincinnati branch offices handled more than 585 million checks. Noncash. The Bank also processes for collection noncash items that are payable on demand or at some 5. Coin. New coins are received from the United States mints, credited to the Treasurer's account at the Federal Reserve Bank, and then stored until needed by commercial banks. Commercial banks send their surplus coin to the Reserve Bank or branch nearest them by armored truck or registered mail. Employees in the Coin Divisions at the main office and the Pittsburgh and Cincinnati branches of the CASH DEPARTMENT The Federal Reserve Banks help keep cash in circulation by supplying coin and currency to banks and by accepting their excess supplies of these items. The Cash Department 2,700 banking department of this Bank serves more than offices in the Fourth District. The also accepts canceled food stamps from District banks. Cleveland Bank count and verify all incoming coin. Returned worn, coins are counted and sorted to remove foreign, and counterfeit operation is performed coins. The sorting by employees who visually examine the coin as it is fed through an automatic counting machine. All usable coin is then bagged or wrapped 6. and stored until needed. Although most coins are wrapped, some shipments ofloose coins are still made. Loose dimes, quarters, and half dollars are shipped in bags that approximately contain $1,000 and weigh 50 pounds. During a typical day, this division handles 10 to 15 tons of coin. In 1970, more than 900 million coins were paid into circulation, and 963 million coins were received in deposits. Currency. The Treasury Department currency to the Federal supplies new Reserve Banks. Federal Reserve Notes, which account for almost all of the currency presently Bureau being issued, are printed by the of Engraving and Printing. currency is kept in the custody The unissued of the Federal Reserve Agent at each Federal Reserve Bank (the Federal Reserve Agent is also Chairman of the Board of Directors). New Federal Reserve Notes are entered on the books of each Reserve Bank when the notes are released from custody and issued. The Bank must pledge collateral to the Treasury that is equal to the face amount of the notes when it applies for an issue of notes. Before currency is returned to the Reserve Banks, it must be pre-sorted according to the denomination of the note. When currency is returned to the Federal Reserve Bank of Cleveland, highly skilled and trained employees examine the notes to remove damaged, foreign, and counterfeit notes. An experienced sorter can process more than 32,000 bills a day. Incoming bills that are in good condition can sometimes be processed on high-speed equipment that counts bills FISCAL AGENCY DEPARTMENT Another important group of financial services about three times faster than the regular sorting and performed counting between the Federal Government and the public. The packaged, currency operation. Usable currency and held for future is counted, circulation. is canceled in the Cash Department turned over to the Fiscal Agency Department by the Bank facilitates transactions Unfit Federal Reserve Banks act as banking agents for the and Treasury of the United States. The Federal Reserve to be Banks issue, redeem, and service U. S. Government obligations, such as Savings Bonds (shown here being verified and destroyed. micro-filmed), maintain the records of Treasury Tax Food Secretary receives Stamps. of Under Agriculture, canceled food an agreement the stamps. with the Cash Department The stamps and Loan Accounts, and process deposits of Federal taxes. are verified, member bank accounts are credited with the The Fiscal Agency Department accepts worn proceeds, and the account of the Treasurer of the currency from the Cash Department of the Bank, and United States is charged. Canceled stamps are then after the currency is verified according to Treasury destroyed. Department regulations, the worn currency is burned. 7. SECURITIES DEPARTMENT The Securities Department The Securities Department offers a safekeeping service to member banks and, in some instances, buy or sell certain securities as an agent for member can also place orders to banks. other specified depositors. This service is principally used by banks that do not have adequate protection facilities or that have pledged securities for various purposes. Securities that are held for nonmember banks are restricted to those pledged to agencies or VAULT CONTROL UNITS Securities, currency, and coin are stored in the Bank's vaults under dual control by members of the custodies and access units. The door assembly of the main vault at the Federal Reserve Bank of Cleveland officials of the U. S. Government. matured is the largest in the world. The vault door weighs 100 coupons and securities is a service provided by this tons and hangs from 18 foot hinges that weigh 37 Bank. There is no charge for the safekeeping services, tons. The vault itself is almost a separate building except for telephone, telegraph, and shipping charges. within the Cleveland office. The 8. presentation and payment of addition, leading bankers and industrialists are invited to dinner meetings and discussions of the current business outlook in conjunction with two meetings of the Joint Boards of Directors of the main offices and branches. Public information news releases, speakers activities conducting for meetings include bank and preparing tours, providing and television radio programs, and supplying movies about the Federal Reserve. In 1970, films from the Bank's film library were shown 1,574 times to more than 63,000 people. In addition, nearly 3,000 people, including many students, enjoyed guided tours of the Bank. The Functional Cost Analysis program provides member banks with a systematic analyzing their own operating District banks participated banks supply income, information to costs. In 1970, 83 in the program. These expense, concerning approach eleven and balance sheet functions of a commercial bank. In return, ~ach participating bank receives an analysis of the cost and profitability of each of its functions and comparative data for banks of similar size and structure. Seminars and workshops are held to explain the program to potential participants and to review the results of the program. BANK RELATIONS AND PUBLIC INFORMATION The Bank Relations and Public Information works to improve communications staff between the Federal Reserve Bank of Cleveland and commercial banks as well as the public. This department promote understanding tries to of Federal Reserve purposes, responsibilities, and operations. Bank relations activities include informal visits at each member and nonmember These informal bank in the District. visits are supplemented by several group meetings, such as the Bankers' Day at the Fed program and the Bank Directors-Industrialists Round Table Meetings. Generally, a senior officer of the Bank arranges and directs these meetings. In 9. BANK EXAMINATION AND SUPERVISION DEPARTMENT determine if its loans are collectible; its investment securities are sound and readily marketable without a loss; its accounting system is accurate and adequate; The Bank Examination ment examines member banks Comptroller and Supervision Depart- the operations in the of state-chartered Fourth District. (The of the Currency charters and examines its capital is adequate and its liquidity assured; and if it is complying with the laws and regulations that apply to the bank. Some staff members department specialize also applications for similar responsibilities for state-chartered banks.) This formations and department have also supervises banks and others subject to Federal Reserve Regulations. Bank examiners review the operations of each and in this investigating member banks. national banks. The state banking authorities mergers in acquisitions holding involving company District Although the examiners are "on the road" almost state-member bank in the Fourth District every year. all of the time, a regular end-of-year Depending on the size of the bank, 2 to 28 examiners and assistant examiners arrive at the bank to luncheon in the executive dining room brings them 10. together at the main office. seminar and AUDIT DEPARTMENT The Bank's internal Audit Department is directly responsible to the Bank's Board of Directors through its Chairman and Audit Review Committee. Audits are made to verify the Bank's assets and liabilities, to insure that proper safeguards are maintained for the care and protection of valuables, and to review and LEGAL DEPARTMENT The Legal Department and officers advises the Bank's directors on the legal aspects of the Bank's operations, approves all contracts involving the Bank, and conducts any litigation involving the Bank. appraise the soundness and adequacy of established procedures and operating controls. Thirty employees and two officers are on the audit staff. Fifteen people are assigned at the main office, seven at Cincinnati, and eight at Pittsburgh. ACCOUNTING DEPARTMENT As in any business organization, all transactions of the Bank and its "customers" Accounting activity Bank. Department. is related The to the financial services of the collections, securities operations are recorded in the Most of this department's cash, fiscal agency, all involve transactions and of the Bank with its member banks, other Federal Reserve Banks, and the Treasury. In addition, the department supervises member department and prepares bank reserve also administers cost accounting positions. The departmental budgets information for the Bank. 11. CAFETERIA PERSONNEL DEPARTMENT Employees in Personnel spend all of their time caring for people. The department is continually The cafeterias at the main office and branches are recruiting, interviewing, and hiring people to meet the operated on a leased basis. The cafeterias are the meeting places for lunchtime relaxation for most of needs of the Bank. The important the Bank's employees. They provide hot meals and department duties of the also include payroll preparation, administration, department and periodic job salary evaluation. The snacks at subsidized prices, using modern, efficient kitchen equipment. administers the many employee benefit programs that the Bank provides, such as health and life insurance, unemployment, retirement, social security, GENERAL SERVICES DEPARTMENT As the name implies, this depart,?ent and workmen's compensation. jobs, Bank that concentrates addressograph, forms design and control, duplicating, and maintaining the stockroom. MEDICAL DEPARTMENT The Medical Department including does several is another area of the on people. The two nurses The Addressograph the Bank. unit maintains mailing lists for and the doctor who staff the Medical Department see Tons of paper and millions of micro-film records an average of 35 people each day. They provide pre- are kept in the Archives of the Bank. Current general employment correspondence physical examinations and annual checkups for all employees as well as general health records services, such is filed, along with departmental started. as flu vaccinations. The branches that go back to the time the Bank was Reporting provide the same general care. forms, operating letters, and circulars offering new Treasury issues are only a few of the items that are prepared in the Forms Design and BUILDING DEPARTMENT There are 56 people in the Building Department at Control unit of the General Services Department. the main office who maintain nearly 500,000 square This unit also prepares camera copy for reproduction feet of space. In order to keep the building in good in the Bank's Duplicating unit. Offset plates are made condition, from the duplicated the Bank employs its own housekeepers, mechanics, carpenters, painters, electricians, and camera copy, and the materials are on offset presses. The Duplicating unit engineers. The Bank also has its own laundry to keep also uses paper employees' uniforms bindery equipment throughout the Bank. The engineers keep the air conditioning, systems fresh and to supply steam, water, and emergency running efficiently. People training and skills are also employed with linen power similar transportation MAIL DEPARTMENT The Mail Department duplicating supplies, paper, services, and used by the Bank. This unit maintains an inventory for the thousands of items stored in the a of the Bank, which is a contract station of the U. S. Postal Service, handles all incoming and outgoing registered and ordinary In addition, dispatches companies. 12. folding, and Stock Room. The three men in the Mechanical Repair Shop have offices. mail. perforating, to prepare the printed materials. The Purchasing unit orders all supplies, equipment, furniture, in the branch cutting, the department packages through receives a number and of express full-time typewriters, job of servicing more than 660 calculating machines, and other general office machines in use throughout the Bank. The switchboard bombarded of the Bank is usually being with calls. At peak hours, the four Bank telephone operators work without a break to handle all outgoing long distance calls and all incoming calls. 14. l5. PROTECTION Guards control access to the buildings as well as to certain areas in the buildings where cash and securities are processed and stored. An important part of every guard's job is to greet all visitors to the Bank. The guards' assignments are continuously therefore, well-acquainted they become rotated; with the Bank> staff and buildings. Guards are on duty 24 hours a day, every day of the year. The guards are also highly trained to meet various emergencies. The target range, with its new automatic target setting equipment, is used regularly to maintain the guards' marksmanship. They are prepared to operate the Bank's emergency radio system and can provide emergency first aid. 16. DATA PROCESSING AND PLANNING DEPARTMENTS Data processing describes in broad terms what many Bank employees have done for more than 50 years. However, it would be impossible to process today's routine flow of information by using methods of 20, or even 10, years ago. Therefore, the Bank has installed a high-capacity Burroughs 3500 computer in the Data Processing Department to handle the rapidly growing volume of information more accurately. faster, cheaper, and By using key-driven similar to the typewriter, the department equipment converts data from manual form to machine form and prepares the data for processing on the computer. Almost all departments of the Bank make use of the services of Data Processing. In general, members of the Planning Department support Data Processing by providing systems design and computer departments programming help to in the Bank. This department's other primary concern is to determine, develop, justify, and install computer processing operations and Department potential applications research functions. also advises other in the Bank's The Planning departments changes in their non-computer about oriented operations. 17. RESEARCH DEPARTMENT bankers, businessmen, and students. The research staff of the Bank keeps abreast of developments in regional, national, and in terna tional economic activity to assist the president of the Bank in his monetary policymaking role. As a by-product of the continuing research efforts, the department publishes a monthly Economic Review and a weekly Economic Commentary, as well as a number of other regular and special studies. Certain members of the research staff devote a large , part of their time to the preparation opinions on the probable effects of written of mergers or holding company acquisitions on banking services and competition among Fourth District banks. The Statistical section of the Research Department compiles large quantities of data on banking and financial activity in the Fourth District. These data are then sent to Washington for publication in the Federal Reserve Bulletin. Up-to-da te informa tion on current developments in economics, finance, and banking are available in the Research Library. The library serves the directors, officers, 18. and employees of the Bank, as well as The Graphics responsible section of the department is for visual aids for speeches and board meetings, as well as for the charts that appear in all publications. CREDITS, LOANS, AND INVESTMENTS DEPARTMENT This department receives and processes requests for Regulation A department financial loans by also keeps condition member statistics of member banks. The on the current banks and on a number of companies whose paper might be used as collateral for loans. The Bank's investments in U. S. Government securities are purchased through the System Open Market Account (which is administered by the Federal Reserve Bank of New York), but records of all transactions this department. for this Bank are kept in The department also supervises foreign asset controls and the voluntary foreign credit restraint program, requirements and for securities Regulation credit), G (margin Regulation V (defense loan guarantees), and Regulation Z (Truth in Lending). 19. BOARD OF DIRECTORS The Boards of Directors of the Federal Reserve Bank of Cleveland at the main office and Cincinnati and Pittsburgh branches are made up of leaders in the fields of banking, industry, finance, agriculture, and education. The nine directors of the Bank are grouped into three classes-A, B, and C-with three members each. Class A directors are chosen by and are representative of the member banks. Class B directors are chosen by the member banks and consist of men who are active in industry, commerce. agriculture, or Class B directors may not be bankers. Class C directors are appointed by the Board of Governors of the Federal Reserve System and also come from fields other than banking. The Chairman of the Board of Directors is designated annually by the Board of Governors from among the Class C directors. The branches are operated under the supervision of the branch boards of directors. These directors are appointed by the directors of the main office as well as by the Board of Governors. 20. The directors of the Bank have functions and responsibilities that are similar to those of a director of any business corporation. The directors appoint all officers of the Bank and pass on promotions changes in official personnel. The directors or also approve the Bank's budget and periodically check to see how actual performance compares budget estimates. Moreover, the directors with the maintain and supervise the internal auditing system. The directors of a Federal Reserve Bank have policymaking functions, however, that are unique to the Federal Reserve System. The Board of Directors of each Reserve Bank establishes the discount rate, which is the rate paid by member banks when they borrow from the Reserve Bank. At each of their meetings, current the report Board of of activity Directors considers the at the Bank's discount window. The clirectors also assist the president of the Reserve Bank in his policymaking him informed of economic role by keeping developments in their industries. 21. 1963. He considered his role as a policymaker to be extremely important and always retained a close interest in economic research, particularly studies of the IN MEMORIAM system, cycles, and statistical President W. Braddock Hickman April 20, 1911-November banking Nixon financial markets, techniques. appointed business In August 1970, him to the national Commission on Federal Statistics. He was a member 28,1970 of many professional associations, including the American Economic Association, American Statistical Association, American Finance Association, National Association W. Braddock Hickman graduated from the of Business Economists, Metropolitan Economic Association, and the Business Economists' University of Richmond in 1933 and earned his Ph.D. Council. At the time of his death, he was chairman of in economics from Johns Hopkins University in 1937. the advisory He was elected to Phi Beta Kappa, national honorary Interest scholastic society, and became an honorary member Committee of Beta Gamma Sigma, national honorary commi ttee Association. fraternity. He was a member Princeton University, business of the faculties of Rutgers University, and the Rates and to the NBER Study on served on the Advisory on Research to the Kentucky Mr. Hickman's Bankers interest in higher education also continued after he joined the Federal Reserve Bank. Institute for Advanced Study. In 1966, the University In 1970, Mr. Hickman was named president of the of Cincinnati Cleveland Commission awarded degree of Doctor Mr. Hickman the honorary of Laws, and the University of Richmond made him Commercial Science. an honorary Doctor of on Higher Education after serving that group for several years. He was a member of the Board of Trustees of Case Western Reserve University, where he served as vice chairman of the During World War II, he was a lieutenant in the Investment Committee and as a member of the U. S. Naval Reserve, specializing in exterior ballistics, statistics, and computers. After the war, he was a Visiting Committee for the School of Management of member of the research staff and director of the CWRU and was active in aiding the merger of Case Corporate Institute of University. Bond Research Project of the National Bureau of Economic Research. His studies resulted in three books, still considered landmarks in the area: T~e 1900, Volume of Corporate Bond Financing Since Corporate Bond Experience, and Statistical Bond Financing. Quality and Investor Measures of Corporate New York Life Insurance Company from 1953-1956. He joined American Airlines as director of economic research assistant vice president in He was also a member of the Technology and Western Reserve He also willingly gave his time to civic affairs in Cleveland. At his death, he was president and a trustee of the United Appeal of Greater Cleveland. In addition, he was a trustee of the Welfare Federation of Cleveland, a member of the boa rd of directors of Mr. Hickman was supervisor of economic studies at the Budget Committee. 1956 and was named the Greater Cleveland Growth Association, an honorary trustee of The Cleveland Community Fund, and a member Committee of the on Community Businessmen's Interracial Affairs, the Citizens for the following year. For the Justice, and the Cleveland Commission on Health and next three years, he played a major role in financing the airline's purchase of jet equipment. Social Services. As a collector of outstanding antique In 1960, Mr. Hickman was appointed senior vice furniture and porcelain, Mr. Hickman found time to serve on the board of the Society of Collectors, Inc., president of the Federal Reserve Bank of Cleveland which and was named president Cleveland. 22. of the Bank on May 1, operates Dunham Tavern Museum in W. BRADDOCK HICKMAN 23. COMPARATIVE STATEMENT OF CONDITION ASSETS Dec.31,1970 Dec. 31, 1969 Gold Certificate Reserves . $1,095,005,800 $ 862,419,422 Federal Reserve Notes of Other Banks Other Cash . . 67,230,331 24,815,354 67,959,120 10,155,756 Discounts and Advances U. S. Government Securities: Bills Notes Bonds . -0- 4,300,000 . . . 2,025,545,000 2,592,801,000 229,377,000 1,726,079,000 2,433,591,000 271,052,000 Total U. S. Government Securities . 4,847,723,000 4,430,722,000 Total Loans and Securities . 4,847,723,000 4,435,022,000 Cash Items in Process of Collection Bank Premises Other Assets . . . Total Assets 911 ,819,249 12,233,351 99,077,937 870,360,729 6,459,804 208,440,448 $7,057,905,022 $6,460,817,279 $4,198,315,903 $3,952,758,371 LIABILITIES Federal Reserve Notes . Deposits: Member Bank-Reserve Accounts U. S. Treasurer-General Accounts Foreign Other Deposits .- 1,551,356,278 93,748,489 11,570,000 24,423,951 1,924,212,585 1,681,098,718 . . 763,832,390 45,324,844 662,792,878 44,383,712 $6,931,685,722 Deferred Availability Cash Items Other Liabilities 1,813,296,320 76,407,271 11,125,000 23,383,994 . Total Deposits . . . . $6,341,033,679 Total Liabili ties CAPITAL ACCOUNTS Capital Paid In Surplus Total Liabilities and Capital Accounts Contingent Liability on Acceptances Purchases for Foreign Correspondents 24. . . 63,109,650 63,109,650 59,891,800 59,891,800 . $7,057,905,022 $6,460,817,279 . $ $ 22,258,900 12,985,100 ::; • ..... ------ ; ; ,------. ------ . ; 4 • COMPARISON OF EARNINGS AND EXPENSES 1970 Total Current Earnings Net Expenses 1969 . . $260,819,520 19,410,681 . Current Net Earnings $300,486,897 21,231,405 279,255,492 241,408,839 Additions to Current Net Earnings: Profit on Sales of U. S. Government Securities (Net) . Profit on Foreign Exchange Transactions (Net) . All Other . 649,168 309,258 18,920 521,047 338,504 . 977,346 859,551 Loss on Sales of U. S. Government Securities (Net) .. All Other . -0121,108 471,314 560,092 . 121,108 1,031,406 NET DEDUCTIONS NET ADDITIONS . . -0856,238 171,855 -0- Net Earnings before Payments to U. S. Treasury . $280,111,730 $241,236,984 Dividends Paid Payments to U. S. Treasury (interest on F. R. Notes) Transferred to Surplus . . . $ $ . $280,111,730 Total Additions -0- Deductions from Current Net Earnings: Total Deductions Total 3,666,823 273,227,057 3,217,850 3,544,719 233,808,165 3,884,100 $241,236,984 25. As of February 1, 1971 FEDERAL RESERVE BANK OF CLEVELAND DIRECTORS Chairman ALBERT G. CLAY, President Clay Tobacco Company, Deputy Mt. Sterling, Kentucky Chairman J. WARD KEENER, Chairman of the Board and Chief Executive The B. F. Goodrich EDWARD W. BARKER President First National Bank of Middletown Middletown, Ohio DAVID L. BRUMBACK, JR. President Van Wert National Bank Van Wert, Ohio JOHN L. GUSHMAN President and Chief Executive Officer Anchor Hocking Corporation Lancaster, Ohio Company, Akron, Officer Ohio J. WILLIAM HENDERSON, JR. Henderson Columbus, & Associates Ohio GEORGE F. KARCH Chairman of the Board and Chief Executive Officer The Cleveland Trust Company Cleveland, Ohio R. STANLEY LAING President The National Cash Register Company Dayton, Ohio HORACE A. SHEPARD Chairman of the Board and Chief Executive TRW Inc. Cleveland, Ohio MEMBER, FEDERAL ADVISORY Officer COUNCIL JOHN S. FANGBONER Chairman of the Board and Chief Executive Officer The National City Bank of Cleveland Cleveland, Ohio OFFICERS First Vice President WALTER H. MacDONALD ROGER R. CLOUSE Senior Vice President and Secretary CLYDE HARRELL Senior Vice President JOHN J. HOY Senior Vice President FRED O. KIEL Senior Vice President CLIFFORD G. MILLER Senior Vice President ELFER B. MILLER General Auditor OSCAR H. BEACH, JR. Assistant Vice President MARGRET A. BEEKEL Assistant Vice President and Economist ANNE J. ERSTE Assistant Vice President THOMAS E. ORMISTON, JR. Assistant Vice President GEORGE E. BOOTH, JR. LESTER M. SELBY Vice President and Cashier Assistant PAUL BREIDENBACH Vice President and General Counsel ELMER F. FRICEK Vice President R. JOSEPH GINNANE Vice President WILLIAM H. HENDRICKS Vice President WILLIAM J. HOCTER Vice President and Economist HARRY W. HUNING Vice President FRED S. KELLY Vice President 26. Vice President and Assistant ROBERT E. SHOWALTER Assistant Vice President HAROLD J. SWART Assistant Vice President H. MILTON PUGH Chief Examiner MYRON R. MANN Assistant Cashier DAVID A. TRUBICA Assistant Cashier DONALD G. VINCEL Assistant Cashier DAVID J. WEITZEL Assistant General Auditor Secretary As of February 1, 1971 CINCINNATI BRANCH DIRECTORS Chairman GRAHAM E. MARX, President and General Manager The G. A. Gray Company, Cincinnati, Ohio PAUL W. CHRISTENSEN, JR. WILLIAM S. ROWE President The Cincinnati Gear Company Cincinnati, Ohio President The Fifth Third Bank Cincinnati, Ohio ROBERT E. HALL PHILLIP R. SHRIVER President The First National Bank and Trust Company Troy, Ohio President Miami University Oxford, Ohio ROBERT B. JOHNSON CLAIR F. VOUGH President Pikeville National Bank & Trust Company Pikeville, Kentucky Vice President Office Products Division IBM Corp. Lexington, Kentucky OFFICERS FRED O. KIEL DONALD G. BENJAMIN Senior Vice President Assistant ROBERT D. DUGGAN Vice President CHARLES A. CERINO Vice President and Cashier Assistant Cashier JERRY S. WILSON Assistant Cashier PITTSBURGH BRANCH DIRECTORS Chairman LAWRENCE E. WALKLEY, President and Chief Executive Westinghouse A ir Brake Company, ROBINSON F. BARKER Chairman of the Board and Chief Executive Officer PPG Industries, Inc. Pittsburgh, Pennsylvania JOHN W. BINGHAM President The Merchants and Manufacturers National Bank of Sharon Sharon, Pennsylvania CHARLES H. BRACKEN President and Chief Executive Officer Marine National Bank Erie, Pennsylvania Pittsburgh, Officer Pennsylvania RICHARD M. CYERT Dean Graduate School of Industrial Administration Carnegie-Mel/on University Pittsburgh, Pennsylvania MERLE E. GILLIAND President and Chief Executive Pittsburgh National Bank Pittsburgh, Pennsylvania Officer ROBERT E. KIRBY President Westinghouse Electric Corporation Industry and Defense Company Pittsburgh, Pennsylvania OFFICERS CLYDE HARRELL Senior Vice President JAMES H. CAMPBELL Vice President and Cashier PAUL E. ANDERSON Assistant Vice President J. ROBERT AUFDERHEIDE Assistant Vice President CHARLES E. HOUPT Assistant Vice President 27. PITTSBURGH CINCINNATI BRANCH (NEW BUILDING) "," """"f' "'" 28. lfffl BRANCH