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577 A. meeting of the Board of Governors of the Federal Reserve Systern wes held in Washington on Tuesday, April 20, 1937, at 4:00 p. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Broderick Szymczak McKee Davis Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Wyatt, General Counsel Mr. Paulger, Chief of the Division of Examinations Mr. Leonard, Assistant Chief of the Division of Examinations Mr. Cagle, Assistant Chief of the Division of Examinations Mr. Wingfield, Assistant General Counsel Mr. Baumann, Assistant Counsel Mr. McKee reviewed the consideration which had been given by the 13Qard to the applications filed under date of November 29, 1933, by the Trans americe Corporation and Inter-America Corporation, both of San Yratca California, for voting permits authorizing them as holding e°171Panv - affiliates to vote the stock owned or controlled by them in the Bellk of A„. -44eric8 National Trust and Savings Association, San Francisco, 1111a, The First National Bank of Portland, Portland, Oregon, and the r, 4'rst National Bank in Reno, Reno, Nevada. He pointed out that, utter i 8811ing limited voting permits to the applicants in 1934 and 1935 t°r the, -01rPose of electing directors and acting upon matters of a ne netul'a, the Board, on December 17, 1935, authorized the issu- 578 4/20/37 -2- ance of general voting permits to the applicants upon condition that they execute certain agreements, but that the agreements were not executed and therefore the general voting permits had not been issued; that early Iii Y 1937, new applications dated December 26, 1936, were filed Februar-, thl'ough the Federal Reserve Bank of San Francisco; and that subsequent to the riling of the new application a recommendation had been received ttcm the executive committee of the Federal Reserve Bank of San Francisco that the original applications of November 29, 1933, be granted by. the Board of Governors. Mr. McKee referred to the provisions of Section 5144 of the Revised Statutes relating to the period of five years within which holding company affiliates must dispose of any interest in 1sec/111-ties companies and called attention to certain contracts which had been entered into for the purpose of eliminating objectionable assets 44d losses from the Bank of America National Trust and Savings Association, "d to questions which had been raised regarding the capital structures or this bank and the other two subsidiary national banks. He called "terition also to the fact that the Board had been informed of a proposed Plan for terminating the holding company affiliate relationships as to the 114411k of America National Trust and Savings Association. These matters were then discussed after which Mr. McKee moved that the Board authorize the Federal Reserve Agent at San Francisco, subject to the two conditions set forth below, to issue general voting permits to the Transamerica Corporation and the Inter-America Corporation to vote the stock owned or controlled by them of the Bank of America National Trust and Savings Association, San Francisco, California, The First National Bank Of Portland, Portland, Oregon, and The Iirst National Bank in Reno, Reno, Nevada, with the under- 579 4/20/37 -3standing that the Federal reserve agent would be requested to advise the applicants that the Board would consider the agreements contained in the applications and any other agreements executed as a condition to the granting of general voting permits terminated when the general voting permits issued to the applicants pursuant thereto were revoked or surrendered With the approval of the Board, and that the Board would approve the surrender of such permits when it was satisfied that the applicants were not holding company affiliates: 1. That prior to the issuance of such general voting permits, each applicant shall execute and deliver to the Federal Reserve Agent in duplicate an agreement in the form accompanying the Board's letter X-0385, except that (a) the word "State" shall be omitted from paragraph 2; (b) paragraphs 4 and 5 shall be omitted and the remaining paragraphs appropriately renumbered; and (c) the following shall be inserted as an additional numbered paragraph: "6. That the undersigned's application for a voting permit dated December 26, 1936, and filed in February, 1937, is supplementary and amendatory to, and does not supersede, its application dated November 29, 1933, and filed shortly thereafter; that the application dated November 29, 1933, as amended from time to time, is now pending before the Board of Governors of the Federal Reserve System, and the general voting permit to be granted upon the execution of this agreement shall be granted pursuant to such application; and that November 29, 1933, shall be deemed to be the date of the undersigned's application for the purpose of determining the period within which the undersigned must dispose of any interest in 'securities comPanies' as provided in paragraph 5 of its application, as well as for all other purposes." 2. That the two voting permits be issued simultaneously. Mr. McKee's motion was put to a vote and carried unanimously. At this Point Mr. Szymczak left the meeting. Mr. MOrrill referred to the existence of a carpenters' strike at 58C 4/20/s7 -4the Board, s new building by reason of a jurisdictional dispute which had arisen betteen the carpenters', plasterers' and lathers' unions regarding the installation of acoustic tile in certain sections of the 101aUdang and to a possibility that the carpenters' strike might be terlainated if the Board were to agree to the use of acoustic plaster in Place of such tile. Mr. Morrill stated that the Board's Superintendent Of C°ristruction was favorable to the acceptance of the acoustic plaster tt*e6itment in lieu of the acoustic tile because he believed that the 131aster would be more attractive in appearance, and that the Board's krellitects were agreeable to the substitution, although they pointed °Ilt that it would not be as efficient in acoustical qualities as tile that/ therefore, the tile rould be preferable in the cafeteria, gr°1-111d floor, and stenographic pool areas. Yr. Morrill stated that °Perations at the building were slowing down because of the carpenters' alld atrike end Of that he had just received advice from Vice President Distler the George A. Fuller Company, who had been discussing the matter with 811Peintendent of Construction Kramer, that there would be an extra cost °r h,000 if the proposed substitution were made but that, if the 8oardwould agree to assume 4,OOO of this cost, the Fuller Company w°1114 arrange to make the substitution, After a discussion Mr. Morrill was authorized to endeavor to bring about a settlement of the matter without additional expense to the Board !!!It with authority to agree, as a compromise, to the Payment by the Board of an amount not exceeding 2,000. At tel thin Point Messrs. Thur;-ton, Wyatt, Paulger, Leonard, Cagle, azd Baumann left the meeting and consideration was then given 581 4/20/37 to each Of the matters hereinafter referred to and the respect thereto ction stated with as taken by the Board: The minutes of the meeting of the Board of Governors of the Federal Reserve System held on April 19, 1957, were approved unanimously. Letter to Mr. Young, Secretary of the Federal Reserve Bank of Chicago, reading as follows: "The Board of Governors of the Federal Reserve System has received your letter of April 15, and approves the ,ction taken by the Committee of your bank on fitPr 9 in granting Executive to Mr. C. B. Dunn, General Counsel, "L ve ilea of absence with nay of seven days in addition to his regular vacation period." Approved unanimously. Thereupon the meeting adjourned. Approved.: Chairman.
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