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185 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Thursday, April 17, 1941, at 10:40 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Wyatt, General Counsel Mr. Smead, Chief of the Division of Bank Operations Mr. Mr. Mr. Mr. Under date of April 8, 1941, Mr. Szymczak sent to each member of the Board a memorandum summarizing the report of the Chairmen of the Federal Reserve Banks on official compensation of officers of the 8anks, which had been prepared by Messrs. Balderston, Bopp, and Newman, and a list of suggested questions which the members of the Board might wish to discuss at the meeting with the Chairmen to be held at White 8111Phur Springs on April 26-27, 1941. The suggested questions were l ead and certain revisions in the list were made. ' At the conclusion of the discussion, the amended list of questions was approved and it was understood that a copy of the list would be sent to Mr. McCabe, Chairman of the Conference of Chairmen, for such disposition as he might see fit. Mr. Wyatt stated that a subcommittee of the Senate Committee ()n the Judiciary was holding hearings at the present time on the soa.11ed administrative law bills recently introduced as a result of the 86 4/17/41 -2- report of the Committee of Administrative Procedure appointed by the Attorney General at the request of the President to investigate the need for procedural reform in various administrative tribunals and to suggest improvements therein, that the Department of Justice was presenting data to the subcommittee from the viewpoint of the executive °frices of the Government, and that Mr. Shea, Assistant Attorney General, had stated that the Department was very anxious to have Chairman Eccles testify as to the manner in which the bills would affect the Federal Reserve System. It was agreed unanimously that, as Chairman Eccles was extremely busy with a number of other important matters and Mr. Ransom would be out of the city most of the time between now and the end of May and would not be available to testify, Mr. Wyatt should suggest to Mr. Shea that the Board be excused from having a representative appear before the subcommittee. Further reference was made to the letter addressed to President Y°1-Ing of the Federal Reserve Bank of Chicago by Mr. Crowley, Chairman c)f the Federal Deposit Insurance Corporation, with respect to the activities of Federal Reserve Banks in encouraging nonmember banks to join the Federal Reserve System and Mr. McKee suggested that it might be adSable to have Mr. Leonard, Assistant Chief of the Board's Division of Eaminations, go to Chicago to be of assistance in preparing information with respect to the circumstances surrounding the admission of banks to Meillberehip in the Seventh Federal Reserve District. No objection was made to Mr. McKee's suggestion and there was unanimous agreement 487 4/17/41 -3that the statement now being prepared by Mr. McKee and members of the Board's staff should set forth fully the Board's position with respect to the admission of banks to membership in the Federal Reserve System. Mr. Eccles reported that yesterday he, together with Mr. Morrill, had luncheon with Frederic A. Delano, Chairman of the National Capital Park and Planning Commission, and Mr. Miller, who served as chairman of the Board's building committee in connection with the erection of its new building. Mr. Eccles said that he informed them of his recent con- with the President during which the latter expressed the opinion that the Board should go ahead as rapidly as possible with the erection of the addition to its building, as a result of which the Board had instructed the architect to complete the plans for the addition at the earliest possible time. Chairman Eccles said that, in connection With the question whether the exterior of the addition should be of inarble or limestone, Mr. Miller stated reasons why he felt marble should be used, and Mr. Delano, after looking at some of the architect's drawexpressed the opinion that it would be a mistake to use anything bIlt marble. the Mr. Delano also stated, Chairman Eccles added, that as decision on the exterior material to be used in the addition was °Ile which would have to be made by the Commission of Fine Arts, he would take the matter up with Gilmore E. Clarke, Chairman of the Commission, and communicate with the Board again. Mr. Szymczak stated that under date of April 60 1941, Mr. P°roe, Chairman, and Mr. Day, President, of the Federal Reserve Bank t-88 4/17/41 °r -4- San Francisco, transmitted the recommendations of the board of di- rectors of the Bank relating to adjustments of salaries of officers of the Bank for the year beginning May 1, 1941, and that it was his (Mr. SzYmczak's) recommendation that all of the proposed adjustments be apProved with the exception of the increases proposed for Messrs. Clerk 4rld Hale, with respect to which he would recommend that action be deferred pending a discussion with the Chairmen of the Federal Reserve 844ks of their report on official compensation of officers of the Reserve Banks. In accordance with Mr. Szymczak's recommendations it was voted unanimously to advise Yr. Force as follows: "Your letter of April 8 and President Day's letter of the same date transmitting the recommendations of the board of directors of your Bank for adjustments in the annual salaries of officers of the Federal Reserve Bank of San Francisco for the year beginning May 1, 1941, were Presented at the meeting of the Board of Governors today. For reasons which Mr. Szymczak gave to President Day over the telephone following the meeting, the Board has deferred action on the salary increases proposed for Mr. Clerk as First Vice President and Mr. Hale as Vice President and Secretary. It has, however, approved salaries for Messrs. Clerk and Hale for the year beginning May 1, 1941, at the rates of 18,000 and '1.5,000 per annum, respectively, if fixed by your directors at those rates. "The Board has also approved the annual salaries fixed by your directors for the other officers of your Bank for the year beginning May 1, 1941, at the respective rates set forth below: Annual Salary Title Name :5,000 Wm. A. Day President R. B. West 10,000 President Vice C. E. Earhart 10,000 Cashier C. D. Phillips 6,300 Cashier Assistant 7,000 Cashier H. N. Mangels Assistant 5,500 Cashier E. C. Mailliard Assistant 489 4/17/41 J. H. R. N. F. A. —5— "Nam M. Osmer F. Slade T. Hardy Merritt Sherman H. Holman C. Agnew W. N. Ambrose H. M. Craft M. McRitchie L. C. Meyer D. L. Davis S. A. MacEachron J. P. Blanchard W. L. Partner J. M. Leisner W. M. Scott C. R, Shaw P. C. Bold B. A. Russell R. E. Everson Title Assistant Cashier Assistant Cashier Assistant Cashier Acting Assistant Cashier General Auditor Counsel Los Angeles Branch Managing Director Assistant Manager Assistant Manager Assistant Manager Portland Branch Managing Director Assistant Manager Assistant Manager Salt Lake City Branch Managing Director Assistant Manager Assistant Manager Seattle Branch Managing Director Assistant Manager Assistant Manager Assistant Manager Annual Salary 5,500 5,500 5,500 5,400 8,000 12,500 10,000 8,000 5,500 5,100 8,500 5,500 4,500 8,500 5,700 4,200 8,500 5,700 5,000 4,500" At this point Messrs. Wyatt and Smead left the meeting and the action stated with respect to each of the matters hereinafter referred to was then taken by the Board: The minutes of the meeting of the Board of Governors of the Pederal Reserve System held on April 16, 1941, were approved unani14(3usly. Memorandum from Mr. Nelson, Assistant Secretary, submitting the resignation of David F. Turner as a page in the Secretary's Office effective as of the close of business on April 17, 1941, and recommending that the resignation be accepted as of that date. 490 4/17/Li -6The resignation was accepted. Letter to the board of directors of the "Bank of Waterford", Waterford, New York, stating that, subject to conditions of member8114 numbered 1 to 3, inclusive, contained in the Board's Regulation H3 the Board approves the bank's application for membership in the Fed- eral Reserve System and for the appropriate amount of stock in the Federal Reserve Bank of New York. Approved unanimously for transmission through the Federal Reserve Bank of New York. Letter to the board of directors of the "Commonwealth Bank", Detroit Uichigan, stating that, subject to conditions of membership iluntered 1 to 3, inclusive, contained in the Board's Regulation H, he Board approves the bank's application for membership in the Federal Reserve System and for the appropriate amount of stock in the Pedera1 Reserve Bank of Chicago. Approved unanimously for transmission through the Federal Reserve Bank of Chicago. Thereupon the meeting adjourned. Chairman.
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