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684 Minutes of actions taken by the Board of Governors of the Feder 83-Reserve System on Thursday, April 29, 1948. The Board met the 8c3ard Room at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. McCabe, Chairman (part of meeting) (part of meeting) Szymczak Draper Evans Vardaman Clayton Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Smead, Director of the Division of Bank Operations Mr. Vest, General Counsel Mr. Nelson, Director of the Division of Personnel Administration Mr. Mr. Mr. Mr. Mr. Brainard, Chairman, Federal Reserve Bank of Cleveland Mr. Gidney, President, Federal Reserve Bank of Cleveland It was stated that because of other pressing matters Messrs. 14e4h 411c1 Szynaczak j 1)414. Mr.werepur:belre come into the meeting at its bew:: elected Chairman Pro tem. in the Thereupon 1)Sellee "ML• McCaber GialleY said that, while the situation was not urgent, 144'. 13raillard would like to discuss plans for alterations at Branch building which would give that Branch much Working space and which would provide facilities Ileco a e dt e°Pies of prese and any prospective staff. Tentative which were referred to during the meeting, would 683 4/2 9/48 -2ilivolve a total expenditure of about $1,005,000 which would include ezPehditures of about $585,000 for enlargement of the building, $295,000 for changes in the present floor plans, and $125,000 for cotdi tioning. Mr. be 'very le•cle it reEttlY tiare Brain.e.rd said that the costs for the usable space would high but that he felt, when the general economic situation desirable to proceed with construction, the investment alMade in the branch building warranted the additional expendi oraer to change the present building from one which was un- BEtti8re.ctory to a building which would be relatively satisfactory r°1' the operations of the branch. Mr. Gidney said that consideration had been given to erect- 114a44ez ofl l'r°4 the land purchased across the street (William Penn Place) Present branch building but that if the proposed addition t° the eZisting building were made it would not appear likely that bknk woUld need to build an annex. uring the discussion Messrs. Brainard and Gidney were asked they had ilrtlIch given consideratio to selling the present Pittsburgh building and erecting an entirely new office on the land across si*eet and Mr. Brainard said they had not done so, but that he thonght it would be desirable to consider such a proposal. He said th t the silch a Plan were contemplated he felt it would be essential, 4/29/48 -3ill°t(kT to permit construction of a building of suitable exterior alla interior design, to acquire an additional small triangular piece (31'44(littown as the "Speer Estate" fronting on Liberty Street, in- 17111g about 4,000 square feet, which the Bank had not yet been 41/le to obtain for a satisfactory price. He also said that Mr. '1°1'411 '°Ile of the directors of the Pittsburgh Branch, was very 441°118 that they acquire this additional triangular piece of land at\lr event, that the Cleveland Bank had not felt it should pay 125,°00 for the property, but that it had been held for a 1111111 1111311er figure, and that he would like to explore the possi13111ty or accruir.ng 1 this additional land. In the discussion it 418° BUggested that if a new Pittsburgh Branch building were el'ectea•at e' later date it should have adequate space to house all o -1.61achts activities and in addition sufficient space to rent 11141'icel's to such other Government agencies as the Reconstruction Ce C°I• 'Poration, Currency, and Federal DeComptroller of the ksit Itslartuace Nat „1417 Corporation - Mr. Gidney said that in exploring the possibilities of t• he Present branch building and constructing a new office be mow would wish to look at possible sites other than the °Irlled across the street from the present branch. 4/29A8 —4— After a discussion, unanimous approval was given to a motion by Mr. Vardaman that it be understood that the Board would look with favor on a Pr°gram which contemplated (1) investigation by the Cleveland Bank of a comprehensive plan which would include the sale of the existing building and the co nstruction of a new building which w°1-11d be adequate to meet the foreseeable requirements of the branch, includlug the possibility of providing rental sPace, and (2) the possible acquisition Of the triangular piece of property known as the "Speer Estate" fronting on Liberty Street and adjoining the other land owned across the street from the present building. 141'. Gidney referred to the Board's letter of April 29, 1947, %141ell -te.ted Ileserve that it would not expect to approve payment by the FedBank of Cleveland of a retainer fee to outside counsel 30, 1948, stating that that Bank would like to continue eorcittthe ,resent arrangement for outside counsel but that, in ac4 te with the Board's request, it had worked out a plan which h 1"°111d meet the situation which the Bank faced and which he ' 411)eci. *3111c1 b ormr agreeable to the Board as a compromise arrangement. Ile Plan presented by Mr. Gidney involved the appointment Presently Secretary of the Cleveland Bank, as Counsel present derstanding salary of $8,000 per annum with the understanding he l ecl 14°111d Put approximately half of his time into the work of the.t 41111 taMiliar with and handling legal matters for the Bank, 688 4/29/48 -5814 tile:t the Bank would retain for a period of time the services of ie f irna of Out counsel, Squire, Sanders and Dempsey, at a fee leh be reduced from the retainer of $7,500 paid for the Past year. Ipuring a discussion of the Cleveland proposal, the qualifie6utt°4s c)f Mr. Blair, and the relations which would exist between lir. 1318.4, and Squire, Sanders and Dempsey, Messrs. McCabe and 82hiczeat tered en the meeting and Chairman McCabe took the Chair. At *. Draper's request, Mr. Morrill reviewed the proposal 144e bY Messrs. Brainard and Gidney, making in that connection subst .titi. 41-Y the following statement: The Federal Reserve Bank of Cleveland has been careful consideration to the problem of proto c1;7 inside counsel for the Bank and now proposes Batirint as Counsel Mr. Blair who has been in the Illoh4.°1" some time in the capacity of Secretary and Ei./.1 s had good legal training and experien3e. This Of pt'4.jeillent would be with a view over a period of time Of him full responsibility for the legal work tor Z„:ank. In the meantime the Bank would continue x'ete.i, e - • Squire, Sanders and Dempsey with a reduced ioee -er at the rate of $5,000 a year so that the serv°1aprIthe firm would be freely available toindustrial Mr. Blair loarif;'.?ms as they arise, especially in the that 11r.Bi-?'d, While Mr. Brainard was fully satisfied legaa-t'r would demonstrate his ability to handlehimself the Gidney was not prepared to commit tt41 ''rEttLn ' t e. He also would wish to have the retainer 4.1liety,-,7e/it with Squire, Sanders and Dempsey continue • ly Some members of the Board feel that the zlas been under consideration for a long period 689 4/29/48 -6Of time and that there should be a definite understanding eo to how 104— counsel would be m_ntinued. 46 the retention of outside The suggestion has been made that the arrangeterminated after one year and while it was the vor clitght of Messrs. Brainard and Gidney that the legal w°uld be turned over to Mr. Blair as rapidly as he lihe"-id de monstrate his ability to handle it, they questioned tiather there should be a definite decision to terminate be Zrangeraent with outside counsel in a year. It would broal-erstood that an assistant to Mr. Blair would be rapi r in who would take over the secretarial work as time-4 as Possible so that Mr. Blair could have as much aS might be needed to do the Bank's legal work. Following a further discussion of the matter, and particularly of whether the angement with outside counsel should ave a definite termination date, upon ril°tion by Mr. Evans, it was agreed unanimously that the Board would give favorable consideration to a request from the Cleveland Bank that the Board approve the appointi nt of Mr. Blair as Counsel, and the reten' p °11 of the firm of Squire, Sanders and ernPseY in a consulting capacity for one t Year from May _ 1, 1948, with a retainer at ,!,1?, rate of $5,000 per annum, it being lkitterstood that at the end of that time the arr angement with outside counsel would erminate. Mes, tttrrezce "s. Brainard and Gidney and all of the members of the r r (11,ev t messrs. Carpenter, Sherman, and Morrill then with- the In accordance with a recommendation of x Personnel Committee, the salary of Mt. Ony Director of the Division of Personrate,was increased from the lc °f $10,500 to $11,500 per annum, ef-c''ive May 2, 1948. 690 4/29/48 -7Mr. McCabe stated that in accordance with the discussion Itt the meeting of the Board on April 23, 1948, he had talked with President of the Federal Reserve Bank of Kansas City, 81:411 President of the Kansas Ott;;: like to bring Mr. Johns, Vice to Washington for a period of 60 to 90 days for work tlie Chairinan's Office with the understanding that during that 1)e riod salary, traveling expenses to Washington and return, 441:1 living expenses while in Washington would be paid by the 44s4 City Bank, but that if he should do any official traveling dltrilag his stay at the Board, his travel expenses would be reim1114,secl on the same basis as permitted by the Board's travel reguilltioris for he and assistant heads of the staff. The arrangement proposed by Mr. McCabe was approved unanimously. Mitlates of actions taken by the Board of Governors of the ler/Ialieserve System on April 28, 1948, were approved unanimously. 111$ th -e Memorandum dated April 27, 1948, from Mr. McCabe recommend- transfer of Otto H. Branic, an operator (duplicating devices) "b on of 4z a. ta Administrative Services, to the Chairman's Office with no change in his present basic salary of $2,168.28 44 , effective May 2, 1948. Approved unanimously. k/29/ -8Memorandum dated April 28, 1948, from Mr. Clayton recom- 4, for the reasons stated in the memorandum, that the Fiscal SeQtioll 'Division of Administrative Services, be authorized to issue elleck O for $125 to Rutherford J. Dooley, Chairman, Transportation titt a e-, District of Columbia Bankers Association, in connection 414r pl '--LaYton's attendance at a conference of that Association be held —" white Sulphur Springs, West Virginia, from June 2 to 6 '194-8. Approved unanimously. APto\peci: Chairman.
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