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1405 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, August 13, 1952. PRESENT: Mr. Mr. Mr. Mr. Mr. Szymczak, Chairman pro tem. Evans Vardaman Mills Robertson Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary of the Minutes of actions taken by the Board of Governors Federal Reserve System on August 12, 1952, were approved unanimously. Valdosta, Letter to the First National Bank of Valdosta, Georgia, reading as follows: "The Board of Governors of the Federal Reserve for System has given consideration to your application when act, fiduciary powers, and grants you authority to e, truste not in contravention of State or local law, as bonds, and executor, administrator, registrar of stocks of guardian of estates, assignee, receiver, committee ty capaci estates of lunatics, or in any other fiduciary acorpor in which State banks, trust companies or other banks tions which come into competition with national are permitted to act under the laws of the State of subject Georgia, the exercise of all such rights to be to the provisions of the Federal Reserve Act and the Federal regulations of the Board of Governors of the Reserve System. exercise "This letter will be your authority to the fiduciary powers granted by the Board pending the such authoriPreparation of a formal certificate covering course." zation, which will be forwarded to you in due Approved unanimously, for transmittal through the Federal Reserve Bank of Atlanta. -2- 8/13/52 Letter to Mr. Young, President, Federal Reserve Bank of Chicago, reading as follows: "This refers to your letter of August 5, 1952, and its enclosures, concerning the decision of your Bank to litigate in the Michigan State courts the an question of its right to exemption from the Michig no oses interp Board the if State sales and use tax, objection thereto. "From the above correspondence and also your is letter of May 29, 1952, to which you referred, it with ago me someti aken noted that negotiations undert the Michigan tax authorities for recognition of your claim to exemption from the Michigan tax law, as amended, have not been successful. It is also noted not that the suppliers of your Detroit Branch who have , ations negoti such g insisted on payment of the tax pendin ses purcha on paid be tax are now urging either that the ted from them or that your claim to exemption be submit of amount the ntly, for judicial determination. Appare ere somewh e averag to ed the tax, if paid, might be expect around $3,000 to 64,000 per year. "You indicated that the decision of your bank to by a litigate the matter was prompted, in large part, e Court Suprem an Michig the case decided very recently by ed entitl was an Michig in Which held that a national bank tax, the from ty immuni l to litigate its claim to Federa the regardless of the legal incidence thereof, since inYou bank. the upon economic burden of the tax fell court the of ge langua dicated also that, because the of in that case is regarded as favorable and because the of 7 n the broad exemption contained in sectio that Federal Reserve Act, your General Counsel feels exto claim You might reasonably expect to have your . courts State emption recognized by the Michigan 140 8 13,82 "In the circumstances, the Board interposes no objection to the decision of your Bank in this regard." Approved unanimously.
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