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01"10v*% .47;1 Minutes of actions t., -iken by the 7'card of Governors of the Federal Reserve PREELNT: ystem on Leencede, Apr.1 Mr. Mr. Mr. Mr. r, 12. Martin, Chairman Evans Mills Robertson Mr. arlenter, Cecretary Mr. Sherman, ssistEnt Secretary Mr. Kenyon, ,ssistant Secretary Minutes of actions taken by the Board of Governors of the Federal Reserve system on AorT1 1), 1952 were approved unanimously. Letter to Mr. Ihiltse, Vice President, Federal Reserve 17:nk of New York, reading as follows: ."Reference is nnrle to your letter of March 214, 19)2, submitting the reauest of The Marine "rust Company of hestern New York, Buffalo, New York, for uermicsion to establish a branch (de novo) in the Town of Amherst, New York, in and as a part of the uroposed Frils Boulevard ShoPoinL Center, In comorated. "In view of your recommendation the Podrd of Governors approves the establishment and operation of the br.a.nch in !, 14) Thwn of Amherst, New York, by The Marine Trust Com.)any rn s New York, urov:Tded (a) a formal permit for the b);a1r:t York,by the (- 1c.erIntendent of Banks of the State of . New l and (b) provided such branch is ects.t14 sheg within one year from the date of this letter. . It is understood counsel for the Reserve Parl: 1411 review and tL satisfy hhasel' as to the 1eL:,J 1 7ty of 311 steps taken to establish the branch." Approved unanimously. Telegram to Mr. Stevens, Cbalrf,lan and Federal Reserve Agent, Federal Reserve Bank of New York, authorzin7 him to issue a .:,erieral vcIting Permit, under the pro“cicn of ,oct7Ton 5144 of the Rev71e6 4/16/52 -2- Statutes of the United fltates, to Marine Midland Corporation, Jersey City, New Jersey, entitling that organization to vote the stock which it owns or controls of The ryracuse Trust Company, Fyracuse, New York, subject to the following condition stated in the telegram: I. Prior to the issuance of general voting permit authorize herein, applicPnt shal 7 execute and deliver to you in duplicate an agreement in form accompanying Tbard's Jotter F-9(4 (F.R.L.E. ;:7190). The t eleram further stated: "In advising corporatIon of issuance of permit please nsmit follovinj statement to corporation with comment that it is transmitted at request of Board: 'In ,:rant4Lnu this permit, Board has not made, and should not he deemed to have Iliade, any decision as to ari-Dlication of Clayton ntitrust ct or any related statutes to Marine Midland Corperaten.'" AID:)roved unanimously. Telegram to Mr. Harris, V'c'2President, - cd€:1-7 Reserve of Chicaco, reading as rc110: 'Referringyour April i)+ letter, Board notes without °1D Nction Proposed charge c[-ainc-t the Detroit building Continent fund or in cm, (Lion witll ilaC 146 existing flooring in th ala drawing IE beinc returned.' Approved unanimously. Telegram to the Presidents of all Federal Reserve 72(;:iihs, r - aF(Ing as follows: "At its February 1.9"'' ( - net, ference adopted recommendation that, when; F(Al..erl. Resrve 4/16/52 -3- "Banks advance own funds to purchase guaranteed portion of li-loan when authorized to do so as fiscal agent by ranteeIna' agency, uniform prctic he followed of charginL interest on such advance ranteeing a;7ency at rediscount aLainst rate in effect when advance was mde. Fursuant to Defense Ireduction Act and Eyecptive Order thereunder, Board aro-ves charging of interest on advances -by wederal Reserve E-aik3 such cases at then existinL: rediscount rate in accan.ca with action taken by Fresidents' Conference." AT)roved unanimously. Telegram to Mr. of rothman, Vice President, Federal Reserve Bank Minneapolis, reading Ls follows: "Confirminr, your telephone conversation with Mr. Ewan, increase in down payment e;,-ern_t:on under Regulation to *100 did not change allowance the 1,05ition tiKt a trade-in cannot be deducted fron the cash price in determininc, whether an article falls below the $100 limit. Approved unanimously. Letter to the Presidents .f all federal Reserve Balks, reading as follows: tion + 1 question has been received concerning -Lie 0,- Regulation to instlnent credit for the purchase by an automobile 'driver-trainnc, school' a 'full dual-control' passenger automobile. section 7(d) of the regulation ezempts, o.nonc otherlixelZ any credit eyteaded to a 'school ..., or other ... ... institution'. Al2Iling that the purchaser of fle automobile is not, for examPle, merely a part-time driving Instructor, but is, in fact, an institution which is devoted to givinC driving lessons and which holds itself out in that !_pacity, the transaction described above would be e:.emrt from T,te regulation under section 7(d)." Approved. unanimously. (zoo 4/16/5p Letter to Mr. Everson, .issictPnt Vice President, Iederal Reserve Bank of San Francisco, reading as follows: , "This refers to your letter of March 2(, 1952, andits enclosure, concerning Regulation W and the merchandising of frozen foods at retail by Foodl)ank, Inc., Oakland, California. "From the above enclosures it appears that Foodbank, inc., which specializes in the bun selling of frozen foods, will enter into a 12 months' contract to 'urnish a year's Supply of frozen food to a customer at ,/i-1C.80 payable in equal monthly instalments of $3.9O. The 41e.80 is composed of a $285.64 charge for food, *7(.50 for the use of a food locker in the plant of Foodbanic„ Inc., $20 for 'delivery and pickup', and ';,36.66 for 'minor charges for financing, handlinC, etc.'. Also included under the contract is the use; for a period not exceeding the 12 months, of a 4 cubic t f."d freezer for the temporary storae of food in the enseomer's home, if he so desires. It is said, however, that ,no charge is made for the use of the freezer', and that the 2C 'delivery and pickup' charge is eliminated from the con'I'aet. if the customer elects not to take the freezer. s indicated at 927 of the Regulation 14 Eervice (W-97, Para. 51), the classirication in Group r, covering refrigerators dnd feod freezers does not Include a locker in t locker plant. :Consequently, it appears that the only question iS whether the regulation ic applicable in those cases where the cuLtomer elects to be furnished a 4 cubtc foot freezer as described above. ,answer to such question would depend on ; 1, .e 0=1 ether Inc., actually rents the hone freezers to its customers and, if so, what the value of the rental equipAmong the relevant considerations would be the ment lil reasonableness and bona fides of the above specific items cost included under the contract; whether, for example, °°dbank, Inc., has any substantial number or customers 1,ho e_lect not to be supplied with a home freezer; and whether ood freezers are sold or rented by Foodbanh, Inc., to cuserners who do not execute a contract for food. Furthermore, che competitive aspects or the Foodbank, Inc., pion might well encourage the further use of Promotional arrangements of doubtful validity under the regulation. In the circumstances and or the basis of the facts as Presented, however, we are not Inclined to differ with your T f pC1 - 1 -5!! conclusion that the re!6ulation is not applicable. We would, of course, be glad to reconsider the matter if, in your judgment, there may be additional facts and circumstances which would warrant that course." AyJroved unanimously. Memoranda dated April 11 and April 15 1952, from Mr. Chase, Assistant Solicitor, recommc.nding that in aCcordance with recommendati°11-8 of the Federal Reserve Bankc of Richmond and Boston, respectively, the matters of Johr 's Auto Seiice, Baltimore, Maryland, and Park Motor Mart, Inc., Auburn, Maine, registrants under Regulation W, C°11sumer Credit, 'oe referred to the Department of Juritice for such criminal proceedin, L th,A Department might deem appropriate. A-1:provd unanimously.
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