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Minutes for April 111 1958
To:
Members of the Board
From:
Office of the Secretary
Attached is a copy of the minutes of the
Board of Governors of the Federal Reserve System on
the above date.
It is not proposed to include a statement
with respect to any of the entries in this set of
minutes in the record of policy actions required to
be maintained pursuant to section 10 of the Federal
Reserve Act.
Should you have any question with regard
to the minutes, it will be appreciated if you will
advise the Secretary's Office. Otherwise, if you
were present at the meeting, please initial in column A below to indicate that you approve the minutes.
If you were not present, please initial in column B
below to indicate that you have seen the minutes.
A
Chin. Martin
Gov. Szymczak
Gov. Vardaman 1/
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
1/ In accordance with Governor Shepardson's memorandum of March 8, 1957, these minutes are not being
sent to Governor Vardaman for initial.
11:
Minutes of the Board of Governors of the Federal Reserve System
on Friday, April 11, 1958. The Board met in the Board Room at 10:30 a.m.
PRESENT: Mr.
Mr.
Mr,
Mr.
Mr.
Martin, Chairman
Balderston, Vice Chairman
Szymczak
Mills
Shepardson
Carpenter, Secretary
Kenyon, Assistant Secretary
Riefler, Assistant to the Chairman
Hackley, General Counsel
Conkling, Assistant Director, Division of
Bank Operations
Mr, Noyes, Adviser, Division of Research and
Statistics
Mr. Solomon, Assistant General Counsel
Mr. Hostrup, Assistant Director, Division of
Examinations
Mr. Nelson, Assistant Director, Division of
Examinations
Mr, Collier, Chief, Current Series Section,
Division of Bank Operations
Mr.
Mr.
Mr.
Mr.
Mr.
Items circulated to the Board. The following items, which had
been circulated to the members of the Board and copies of which are
attached to these minutes under the respective item numbers indicated,
were approved unanimously:
Item No.
Letter to the Bristol County Trust Company, Taunton,
Massachusetts, granting an extension of time within
'which to establish an in-town branch. (For transmittal through the Federal Reserve Bank of Boston)
1
Letter to the Grand Rapids State Bank, Grand Rapids,
Minnesota, approving its application for membership
iii the Federal Reserve System. (For transmittal
through the Federal Reserve Bank of Minneapolis)
2
4/11/58
-2Item No.
Letter to the Federal Reserve Bank of Minneapolis,
in response to a request from First Bank Stock
Corporation, relating to whether the Corporation's
indirect ownership of shares of Downtown Auto Park,
Inc., is exempt from the divestment requirements of
the Bank Holding Company Act*
3
Letter to the Federal Deposit Insurance Corporation
concerning the application of River Oaks State Bank,
Houston, Texas, for continuance of deposit insurance
after withdrawal from membership in the Federal Reserve
System.
4
Memorandum from Mr. Leonard, Director of the Division of
Bank Operations, dated March 26, 1958, suggesting that
the number of cloth bound copies of the All-Bank Series
book be increased from 1,000 to 3,000.
5
Letter to the Federal Reserve Bank of Kansas City approving
Payment of a legal fee in connection with the purchase of
lots adjoining the Oklahoma City Branch building.
6
Discount rates.
Unanimous approval was given to telegrams to
the Federal Reserve Banks of New York, Cleveland, Richmond, Atlanta,
St. Louis, Kansas City, Dallas, and San Francisco approving the establishment without change by the San Francisco Bank on April 9, 1958, and by the
Other seven Banks on April 10, 1958, of the rates on discounts and advances
in their existing schedules.
Messrs. Conkling and Collier then withdrew from the meeting and
Mr. hexter, Assistant General Counsel, entered the room.
Proposed absorption of The National Metropolitan Bank of Washington
by American Security and Trust Com any.
There had been distributed to the
members of the Board memoranda dated April 9, 1958, from the Division of
4/11/58
-3-
Examinations and from Mr. Hackley relating to the informal request of
the Comptroller of the Currency for the Board's views with respect to
the applicability of the Clayton Act to the proposed absorption of The
National Metropolitan Bank of Washington, Washington, D.
Security and Trust Company, also of Washington.
C.,
by American
Under the terns of an
agreement between the two banks, an affiliate of American Security and
Trust Company known as American Security Corporation would offer to
Purchase the stock of National Metropolitan Bank at $80 per share.
e°nsequently, the transaction would fall within the scope of section
7
Of the Clayton Act and the question raised was whether the effect of
the acquisition would be "substantially to lessen competition, or to
tend to create a monopoly."
On the basis of a review of banking facilities in the District
°f Columbia, the memorandum from the Division of Examinations expressed
the view that the proposed absorption would not appear to result in a
tendency toward monopoly or substantial lessening of competition.
Mr.
Rackleyis memorandum noted the lack of controlling precedents as to the
circumstances under which acquisitions of bank stocks by corporations
tiavoive
a substantial lessening of competition within the meaning of
the Clayton Act.
Reference was made, however, to the Baystate Corporation
"43e, recently decided by the Board under the Bank Holding Company Act,
'which it was contemplated that the second and third largest banks in
SPItngfield, Massachusetts, would be merged to form the largest of the
Commercial banks in that city. While the proposed absorption and the
BsYstate case were not strictly comparable, it was recalled that the Legal
W.vision had expressed in the latter case the opinion that the transaction
Probably would not be considered as involving such a substantial lessening
Of competition as to violate section 7 of the Clayton Act. As Mr. Hackleyta
memorandum,
pointed out, the stock acquisition in that case would seem to
have resulted in a greater lessening of competition than that which would
rcalom the absorption of National Metropolitan Bank by American Security
and Trust Company. While there had not been an opportunity to study the
clarrent case in detail in the light of court decisions under the Clayton
'
let) the memorandum expressed the view that the transaction would not
ilivolve a tendency to create a monopoly and probably would not result in
a substantial lessening of competition in violation of the Clayton Act.
Mr. Hackleyta memorandum also pointed out that the Department of
allstice has certain concurrent enforcement powers under section 7 of the
ClaYton Act and that failure of the Board to institute proceedings would
11°t preclude that Department from taking action in its discretion.
It
1\4-tiller stated that the Board's staff had indicated in a conversation
illth representatives of the Comptroller's Office that the Board might
nc't be willing to take any position at this time.
It was understood,
h
°Irever, that if the Board should be prepared to express any view, the
C°1"Ptro11ert3 Office would appreciate being advised promptly.
4/11/58
_5..
Following comments by Messrs. Nelson and Hackley in amplification
Of the memoranda which had been sent to the Board, Mr. Hexter commented)
'with respect to a previous statement regarding the extent of banking
competition in the District of Columbia after the absorption, that apparently
such a circumstance vas not regarded as conclusive by the Department of
justice and the Federal Trade Commission for in certain cases outside the
banking field proceedings had been instituted even though there would still
be a great deal of competition if the contemplated mergers were consummAted.
On the other hand) he did not feel that the Board was obligated to reach
oUt to the borders of antitrust law.
In other yards, where it could not
be said that a case clearly involved a violation or that it did not, in
his view the Board was not under obligation to institute proceedings.
In response to a question, Mr. Hackley said that, as indicated in
his memorandum, it would be difficult, if not impossible, for either the
80ard or the Department of Justice to take action after the transaction
las consummated.
Governor Mills then expressed agreement with the position that
the Board should not initiate proceedings or raise any question about the
14.°Posed transaction from the standpoint of the applicability of the Clayton
4". Neither did he feel that the Board was called upon to send a letter
tp the Comptroller of the Currency setting out its reasons for not
illitiating proceedings under that Act.
4/11
-6Mr. Hackley indicated that if the Board merely took no action,
it was his understanding that the Comptroller probably would go ahead and
aPprove the proposed absorption.
However, it appeared that before giving
his approval the Comptroller would like, if possible, advice to the effect
that the Board did not contemplate taking action. To put it another way,
if the Comptroller had any indication that the Board thought a possible
violation of the Clayton Act might be involved, the Comptroller apparently
'would withhold his approval.
Further discussion regarding the possibility of the Department
°f Justice taking action brought out that there had been public notice
Of the proposed transaction but that the element of timing might have
the effect of making it difficult to institute proceedings unless the
C°mptroller withheld his approval.
It was brought out also that action
ell the part of Justice once the absorption was carried out would be limited
tO
proceedings under the Sherman Act, the possibility of which seemed
remote.
In an additional comment, Governor Shepardson, who vas one of
those in the minority in the Baystate case, stated that he would be inclined
te agree with the Legal Division that the lessening of competition resulting
tr°m the proposed transaction would not appear to be as great as the
lessening of competition resulting from the merger which followed the
a'Y'state decision.
Vu/58
-7It was then agreed unanimously that Chairman Martin would advise
the Comptroller of the Currency informally that the Board did not contemplate
instituting proceedings under section 7 of the Clayton Act with respect to
the proposed absorption of The National Metropolitan Bank by the American
Security and Trust Company.
Messrs. Nelson and Hexter then withdrew and Mr. Shay, Legislative
Counsel, entered the room.
Mr. Patman's request for information concerning bank holding
,222EaalTs in Texas (Item No. 7). In a letter dated March 26, 1958, the
Board responded to a request from Congressman Patman for information
l'egarding three registered bank holding companies having their principal
°frices in the State of Texas.
In furnishing the information, the Board
rioted that this material had not been made available to the public and
that it was therefore being sent to Mr. Patman for his confidential information and use.
In a letter dated March 280 1958, Mr. Patman inquired whether
restrictions upon the use of such information stemmed from the Board's
irlterpretation of the law or from Board policy.
If the former, he suggested
that Perhaps the law should be changed; if the latter, he suggested that
the Policy be reconsidered.
A proposed reply had been distributed to the members of the Board
11111th 'would state that the registration and reporting requirements contained
14 section 5 of the Bank Holding Company Act were regarded as having been
deaigned to supply the Board information necessary to administer the Act
„
4/11/58
-8-
rather than to disclose to the public the relationships between the bank
holding companies and their banks and other subsidiaries.
It would be
noted that section 5 does not require publication by the Board, by the
bank holding companies, or by their subsidiary banks of the information
on intercompany relationships furnished to the Board, and that in such
circumstances the Board would not feel justified in publishing data regarding
relationships between private business enterprises.
In viev of editorial changes suggested by Governor Balderston,
e version of the proposed letter reflecting those changes also had been
distributed to the Board.
After certain additional editorial suggestions had been made, the
.80ard reexamined the fundamental question raised by Congressman Patmants
letter; namely, whether there was justification in adhering to the position
that, under the present provisions of the Bank Holding Company Act, a
13°1icy against public disclosure of information supplied by bank holding
cotpanies pursuant to the registration and reporting requirements should
be followed.
Aspects of the matter covered during the discussion included
the apparent purposes of the registration and reporting requirements of
the Act, the precedents accumulated in the bank supervisory area, the
14ck of positive requirements for public disclosure in the Act, the
Illovisions of other legislation which require public disclosure of registratioc statements and similar material, and the distinctions which might be
(111tvn between the purposes of the Bank Holding Company Act and other
112‘)
4/11/58
-9-
legislation, including the Securities Exchange Act, from the standpoint
Of registration and reporting requirements.
In this connection, it was
Pointed out that the procedures under the Bank Holding Company Act and
the Securities Exchange Act might be regarded as alternatives, since the
Bank Holding Company Act contemplates supervision of the registered
companies and their banking subsidiaries by a Government agency while the
Securities Exchange Act is designed to afford protection to investors by
making available to them certain information concerning a vide variety
Of companies in many fields.
During the discussion Chairman Martin expressed the view that the
Board might properly take the position that the Congress, if it felt that
intormation furnished under the registration and reporting requirements
8hoUld be available to the public, ought to consider appropriate changes
in the Act.
It vas then suggested that the reply to Mr. Patman would be
strengthened
by including therein pertinent excerpts from section 5 of
the Bank Holding Company Act.
There being agreement with this suggestion, unanimous approval
144e given to a letter to Congressman Patman in the form attached under
Mr. Shay then withdrew from the meeting and Mr. Brill, Chief,
CaPital Markets Section, Division of Research and Statistics, entered
the room.
1126
4/11/58
-10Suggestion for amendment of section 4(c)(1) of Regulation T.
M. Solomon stated that with a certain amount of latitude to take care
Of special circumstances, as provided in succeeding subsections, section
4(c)(1) of the Boardts Regulation
Ty
relating to special cash accounts,
contemplatr.s that transactions will not be handled under that section
except where there is prompt payment on the part of the customer.
While
the provisions of the section seemed to have worked reasonably well,
from time to time questions had been raised suggesting the need for relief
to institutional investors by way of exceptions to the general rule.
It
had never been entirely clear what circumstances were considered to make
such exceptions necessary or desirable, but the problems seemed to involve
Mostly situations around the end of the year.
It had been alleged that
some brokers and dealers were inclined to accommodate institutional
investors under such circumstances on the basis of oral agreements and
that other brokers and dealers lost business as a consequence.
Mr. Solomon reported that representatives of the National
48sociation of Securities Dealers had visited the Board's offices at the
sUggestion of the President of the Association for discussion of questions
Of this nature with himself and Mr. Brill, and that it had now been
Btated that the President of the Association would be in Washington on
Tuesday, April 15, and would like to come to the Board's officesfor
rlarther discussion with the staff.
Accordingly, Mr. Solomon had brought
the matter to the attention of Governor Balderston, who suggested discussion
°I' it by the Board so that the staff might have appropriate instructions.
A
4/11/58
-11Mr. Solomon vent on to say that some fairly good arguments apparently
could be made for exceptions along the lines suggested.
However, there
might also be arguments on the other side and at present it vas not clear
whether there vas endorsement of the idea by the industry.
One difficulty
appeared to be that of defining the problem clearly enough to permit
exempting the situations said to require relief 'without getting into
amendments 'which would be of too sweeping a nature and perhaps discriminatorY.
He also said that yesterday he received a telephone call from a representative
of the Federal Reserve Bank of New York 'who outlined problems of a somevhat
similar nature 'which had been reported from a source within the Newr York
Stock Exchange, but it was not entirely clear whether these problems were
exactly the same as those mentioned by the representatives of the National
Association of Securities Dealers.
In a discussion of the matter, Governor Szymczak referred to the
difficulty involved in taking a definite position without having more
information.
He pointed out that membership in the National Association
°f Securities Dealers is videspread and that suggestions sometimes are
14ade which represent individual opinion and not the position of the
Association as a whole.
Therefore, he doubted 'whether the Board could
4PPropriately take any position at this point.
Along the same lines, Governor Balderston recalled that recently
a past President of the Association had suggested certain amendments to
Re
gulation T but that subsequent inquiry by the Board through the Federal
Vu/58
-12-
Reserve Banks developed that the proposal was not favored by the industry.
He suggested, therefore, that the Board's staff might propose in further
discussion that it would be well for the proponents of the present proposal
to determine the view of the industry.
Following additional comments, agreement was expressed with the
suggestion of Chairman Martin that the Board's staff should state that
the Board had discussed the matter, that the Board had some question whether
this problem was important enough to warrant a change in Regulation T, but
That it would be glad to consider amending the Regulation if a strong case
vaS developed.
To put it another way, amendment of the Regulation was
doubtfUl unless a good case was made.
Invitation to Mr. Thomas.
The Board authorized Mr. Thomas,
conomic Adviser to the Board, to accept an invitation to speak at a
luncheon session of the Management Conference of the Savings Association
League of New York State to be held in Washington, D. C., on May 7, 1958.
The meeting then adjourned.
Secretary's Notes: On April 1, 1958, Governor Shepardson
approved on behalf of the Board a luncheon in the Board's
dining rooms each year to be attended by the incoming
Committee of Employees, the Director of the Division of
Personnel Administration, and the member of the Board
having responsibility for internal affairs.
Pursuant to recommendations contained in memoranda from
appropriate individuals concerned, Governor Shepardson
approved on behalf of the Board on April 9, 1958, increases
in the basic annual salaries of the following persons on
the Board's staff in the amounts indicated, effective
April 20, 1958:
112!)
4/11/58
-13-
Dtvis1on of Research and Statistics
Edward R. Fry, Economist, from $5,845 to $5,980.
Irma B. Gavin, Draftsman-Illustrator, from $4,755 to $4,890.
Verna Hodge, Librarian, from $4,480 to $4,615.
Katharyne P. Heil, Economist, from $6,520 to $6,655.
Charles G. Trescott, Library Assistant, from $40345 to $4,480.
sion of Examinations
Francis D. Dargo, Assistant Federal Reserve Examiner, from
$4,930
to $5,065.
1..21.1r4ion of Administrative Services
Harry F. Allen, Telegraph Operator, from $4,345 to $4,480.
Ruth Anna Brown, Telegraph Operator, from $3,805 to $3,940.
Paul G. Hutts, Operator, Tabulating Equipment, from $3,940 to
$4,075.
Lola A. Buckley, Telephone Operator, from $3,175 to $3,260.
Governor Shepardson approved today on behalf of the
Board a telegram to the Federal Reserve Bank of Chicago
(attached Item No. 8) approving the designation o
Robert W. Cieszynski as a special assistant
1130
BOARD OF GOVERNORS
OF THE
441.cocow-,*
FEDERAL RESERVE SYSTEM
ot
74*
Item No. I
4/11/58
WASHINGTON 25. D. C.
S:
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
April 11, 1958
Board of Directors,
Bristol County Trust Company,
Taunton, Massachusetts.
Gentlemen:
Pursuant to your request submitted through
the Federal Reserve Bank of Boston, the Board of
Governors of the Federal Reserve System extends until
October 10, 1958, the time within which Bristol County
Trust Company, Taunton, 14assachusetts, may establish
an in-town branch on the eastern side of Broadway
opposite Avon Strcet, as originally approved by the
Board on April 10, 1957.
Very truly your3,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
1131
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C
ADDRESS
Item No. 2
4/11/58
orrucIAL
CORRESPONDENCE
TO THE BOARD
April 11, 1958
Board of Directors,
Grand Rapids State Bank,
Grand Rapids, Minnesota.
Gentlemen:
The Board of Governors of the Federal Reserve System
approves the application of Grand Rapids State Bank, Grand Rapids,
Minnesota, for stock in the Federal Reserve Bank of Minneapolis,
subject to the numbered conditions hereinafter set forth:
1. Such bank at all times shall conduct its business
and exercise its powers with due regard to the
safety of its depositors, and, except with the
permission of the Board of Governors of the Federal
Reserve System, such bank shall not cause or permit
any change to be made in the general character of
its business or in the scope of the corporate powers
exercised by it at the time of admission to membership.
2. The net capital and surplus funds of such bank shall
be adequate in relation to the character and condition
of its assets and to its deposit liabilities and other
corporate responsibilities.
In connection with the foregoing conditions of membership,
particular attention is called to the provisions of the Board's
Regulation HI as amended effective September 1, 1952, regarding membership of State banking institutions in the Federal Reserve System,
with especial reference to Section 7 thereof. A copy of the reguiption is enclosed.
If at any time a change in or amendment to the bank's
charter is made, the bank should advise the Federal Reserve Bank,
furnishing copies of any documents involved, in order that itrny be
determined whether such change affects in any way the bank's status
as a member of the Federal Reserve System.
BOARD
OF GOVERNORS OF THE FEDZRAL RESERVE SYSTEM
Grand Rapids State Bank
1132
- 2-
Acceptance of the conditions of membership contained in
this letter should be evidenced by a resolution adopted by the Board
of Directors and spread upon its minutes, and a certified copy of
such resolution should be filed with the Fedeni Reserve Bank. Arrangements will thereupon be made to accept payment for an appropriate
amount of Federal Reserve Bank stock, to accept the deposit of the
required reserve balance, and to issue the appropriate amount of
Federal Reserve Bank stock to the bank.
The time within which admission to membership in the Federal
Reserve System in the manner described may be accomplished is limited
to 30 days from the date of this
letter, unless the bank applies to
the Board and obtains an extension of time.
When the Board is advised
that all of the requirements have been complied with and that the appropriate amount of Federal Reserve Bank stock has been issued to the
bank, the Board will forward to the bank a formal certificate
of membership in the Federal Reserve System.
The Board of Governors sincerely hopes that you will find
Membership in the System beneficial and your relations with the Reserve
8ank pleasant. The officers of the Federal Reserve Bank will be glad
to assist you in establishing your 'relationships
with the Federal
,1!e8erve System and at any time to discuss with representatives of your
'lank means for making the services of the System most useful to you.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
ri.elosure
•
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 3
4/11/58
ADDRESS OFFICIAL CORRESPONDENCE
TCI THE BOARD
April 11, 1958
Mr. H. G. McConnell, Vice President,
Federal Reserve Bank of Minneapolis,
Minneapolis 2, Minnesota.
Dear Mr. McConnell:
This is in reference to your letter of February 6,
1958, enclosing a letter dated February 4, 1958, from First
Bank Stock Corporation, Minneapolis, Unnesota. The Board
is requested for an interpretation as to whether the indirect
ownership by First Bank Stock Corporation (the "Corporation")
of shares of Downtown Auto Park, Inc., Minneapolis, Minnesota
("Downtown Auto"), is exempt from the divestment requirements
of the Bank holding Company Act.
The Board understands that the Corporation owns
approximately 98 per cent of the capital stock of the First
Lational Bank of Minneapolis ("First National"); that First
National in turn owns 50 per cent of the outstanding shares
of First National and Soo Line Building Co. ("Soo Line Building
Co."); that the latter company owns the First National - Soo
Line Building("Soo Line Building"), which premises are occupied
in part by First National. It is further understood that Soo
Line Building Co. owns approximately 12 per cent of the outstanding shares of Downtown Auto; that Downtown Auto owns two
Parking ramps, one situated within a block of the Soo Line
Building in which the offices of First National are located,
and the other approximately six blocks distant from First
National's quarters; that "from time to time" customers of
First National use the parking ramp situated within a block
of the Soo Line Building; that First National does not reserve
any stalls in either parking ramp for its use or the use of its
customers; that First National has an autobank with parking
Space directly adjacent to its premises.
On the basis of the above information, the indirect
ownership by the Corporation of shares of Downtown Auto would
not seem to come within the exemptive provisions of section 4(c)(1) of the Act, since it appears that Downtown Auto
is not a "company engaged solely in holding or operating
Properties used wholly or substantially by any bank".
BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Mr. H. G. McConnell.
-2-
As you know, section 4(c)(4) of the Bank Holding Company
Act exempts from the prohibitions of section 4 "shares which are of
the kinds and amounts eligible for investment by National banking
associations under the provisions of section 5136 of the Revised
Statutes". Accordingly, if the shares of Downtown Auto Park, Inc.
are of a kind and amount which would be eligible for investment by
a national bank under the law, the indirect ownership or control
of such shares by a bank holding company would be exempt from the
prohibitions of section 4 of the Act. Since the Comptroller of
the Currency has primary jurisdiction with respect to determining
Whether a given investment by a national bank is permissible under
the law, it would seem appropriate for First Bank Stock Corporation
to request an opinion from the Comptroller as to the eligibility
Of shares in Downtown Auto Park, Inc. for investment by a national
bank.
It would be appreciated if you would, transmit to First
Bank Stock Corporation the substance of this letter.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.
WASHINGTON 25. D. C.
ADDRESS
orriciAt. CORRESPONDENCE
TO THE *BOARD
April 11, 1958
The Honorable Jesse P. Wolcott, Chairman,
Federal Deposit Insurance Corporation,
Washington 25, D. C.
Dear Mr. Wolcott:
Reference is made to your letter of March 31,
1958, concerning the application of River Oaks State
Bank, Houston, Texas, for continuance of deposit insurance after withdrawal from membership in the Federal
Reserve System.
Although no formal demand for additional
capital has been presented, efforts have been made for
more than four years, through conferencesand correspondence, to convince the directors of the need for
additional capital. No other corrective programs have
been urged upon the bank or agreed to by it which the
Board of Governors believes should be incorporated as
conditions to the continuance of deposit insurance.
L.
4/11/58
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
GOARD OF GOVERNORS
OF THE
Item No. 5
FEDERAL RESERVE SYSTEM
frb
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4/11/58
Subject
T,Tarch 261 1258
sc-3d All-Bank •ie ries aids.
Bids have been received for the printing of the All-Bank
Series book, and the loIr bid for 5,000 paper-bound copies and 1,000
Cloth.-bound copies stalTed with imitation gold is .,20,749. The
Purpose of this memorandum is to raise for reconsideration the question of the number of cloth-bound copies, and to suzgest that the
number be increased from 1,000 to 3,0000
The proposal submitted to the Board in 1955 was that all
6,000 copies be cloth-bound, and at that time the estimated cost for
printing and binding was •.3)4,000. The Board, h=ever, approved the
suggestion made by the Controller's Office that, in the interest of
economy, only 1,000 copies be cloth-bound and the remaining 5,000
copies be paper-bound, and reduced the budget item by 2,500 to 31,500.
As a result of changing from the conventional printing process
to the offset printing process, the cost will be reduced approximately
0,000, and a very substantial amount of time will be saved in checking
and proofreading, with the chances of typographical errors in printing
eliminated.
The distribution program approved by the Board provides for
approximately 3,000 copies to be distributed free at the initiative of
the Board, including 2,000 copies to libraries, leaving 3,000 copies
about
available for further distribution. The volume is large, contains
course,
of
will,
It
work.
1,200 pages, and is by nature a reference
stand up much better if bound in cloth. The additional cost of cloth
binding over the paper cover is 515 a thousand, or 51-1/20 per copy.
The bid and budget figures are shown below:
Basic low bid:
5,000 paper-bound copies
1,000 cloth-bound copies
3 01714.9
1.
Low bid adjusted on suggested basis of:
3,000 paper-bound copies
3,000 cloth-bound copie;3
21,779
1958 Budget
Expended for IBM run of data for
printer's copy
Unexpended
24,350
351
7„!;23,99-7
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 6
4/11/58
WASHINGTON 25, D. C.
AociREss orriciAL
CORRESPONDENCE
TO THE BOARD
tr, At mo
"444**0
Ari1 1.1, 1958
Mr. H.
Leedy, President,
Federal Reserve Bank of Kansas City,
4ansas City 6, Missouri.
Dear Mr. Leedy:
In response to your letter of April 1, 1958, you are
advised that the Board approves the payment of a fee of „4,500
to Messrs. Embry, Crowe, Tolbert, Boxley and Johnson, for legal
services rendered in connection with the purchase of the lots
adjoining your Oklahoma City Branch bank building, as described
in the invoice, a copy of which was enclosed with your letter
and which was approved by your Bank's Executive Committee.
Very truly yours,
(Signed) S. R. Carpenter
S. R. Carpenter,
Secretary.
BOARD OF GOVERNORS
OF THE
Item No.
FEDERAL RESERVE SYSTEM
7
4/11/58
WASHINGTON
OFFICE Or THE VICE CHAIRMAN
April 14, 1958.
By
Messenger
The Honorable Wright Patman,
House of Representatives,
Washington 25, D. C.
Dear Mr. Patman:
Your letter of March 28, 1958, raises a question
regarding our letter of March 26 furnishing information
requested by you with respect to the three registered bank
holding companies whose principal offices are located in
Texas. Our letter indicated that the information, other
than the names and addresses of the holding companies, has
not been made available to the public and therefore was furnished in confidence. You have inquired whether the restrictions upon the use of the data stem from the Board's interpretation of the law or from the Board's policy.
With respect to registration and reporting by bank
holding companies, section 5 of the Bank Holding Company Act
requires that each bank holding company "register with the
Board on forms prescribed by the Board, which shall include
such information with respect to the financial condition and
Operations, management, and intercompany relationships of the
bank holding company and its subsidiaries, and related matters,
as the Bor.rd may deem necessary or appropriate to carry out the
Purposes of this Act," and provides that the Board may require
reports from such companies "to keep it informed as to whether
the provisions of this Act and. .regulations and orders issued
thereunder have been complied with;... ."
It is clear from these provisions of the law that
information submitted to the Board of Governors pursuant thereto is for the purpose of enabling the Board to discharge its
responsibilities under the Bank Holding Company Act and that
there is no indication that information regarding relationships
between private business enterprises would be given to the public.
Sincerely yours,
(Signed)
C. Canby Bnlderston
C. Canby Balderston,
3!..
TELEGRAM
Item No. 8
LASED WIRE SERVICE
SYSTEM
BOARD OF GOVERNORS OF THE FEDERAL RESERVE
WASHINGTON
April 11, 1958
DIERCKS - CHICAGO
Reurlet April 91 19580 Board approves designation of Robert Ur.
Cieszynski us special assistant examiner for the Federal Reserve
Bank of Chicago. Please advise date designation is made effective.
(Signed) S. R. Carpenter
'CARPENTER
@FedFRASER