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Dallas, Texas, October 24, 1941

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:

We are quoting for your information a telegram received from the Treas­
ury Department:
“ You may advise anyone interested that a contract of employment effec­
tive on either June 1, 1940, or June 14, 1941, need not be reported on Form
TFR-300 unless the annual compensation was $5,000 or more. If a contract
was in effect throughout the calendar year 1940, the amount of compensa­
tion paid in that year shall be determinative, or if the contract expired or
was terminated in this year, the amount paid in the twelve months preced­
ing that date of expiration or termination shall be conclusive. If a contract
took effect during 1940, the compensation paid for one year after the effec­
tive date shall be determinative. If a contract was operative less than a year
before termination or expiration or has been operative less than a year from
its effective date to the first of the month in which report is being made, an
annual rate of compensation should be computed on the basis of the
amounts actually paid in the period involved. Commissions and bonuses are
to be added to salary in arriving at the yearly compensation .
“ In reports in the name of an employee, the compensation for one year,
as determined under the foregoing principles, should be given as the value
of the contract. When a contract was in effect on both June 1, 1940, and
June 14, 1941, the same value should be used for both. In reports in the
name of an employer, the value of the contract should be stated as indeter­
“ For the purposes of this circular, no distinction should be drawn be­
tween contracts at will and those for a term. The same methods of valua­
tion may be applied with respect to reports on Series I regardless of the fact
that the reporting date is July 26, 1941.
October 24,1941

Assistant to the Secretary”
Yours very truly,

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