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2556
A. meeting of the Executive Comraittee (interim) of the Federal
Reserve Board was held in Washington on Tuesday, August 21, 1934.
PRESENT:
ha..
Thomas, Chairman of the Executive Committee
Hamlin
Kr.
Mr. 1Jorrill, Secretary
There was presented for consideration a telegram to the Federal
l'eserve agents at all Federal reserve banks, reading as follows:
"Please write the Board tome row a letter giving your best
JUde,Inent as to the effects of the work of the Federal Reserve
Bank and Industrial Advisory Committee in the field of industrial advances 61iOP State whether conferences with bankers
and others and publicity given to industrial loan program have
J-Icreased willingness of banks to make industrial advances and
Cive some illustrations STOP Are opportunities for making industrial advances likely to increase or diminish STOP Are apPlicetions hereafter likely to be mare substantial in character
01) Please state views as to future utilization of this means
of credit, including estimate as to amount of additional ad,
17411 es and commitments that may be made by the end of this year
0TOp In
addition to foregoing please state total number and
aMount of applications rejected and furnish information as to
r.,asons for rejection showing number and amount in each classication stated below STOP We understand of course that there
"ill be duplications in these figures: 1. Ineligibility and
I
t'easens (a) Not for working capital; (b) Not established indus,
rial or commercial enterprise; (c) Excessive maturity; (d) Other.
Collateral. 3. Management. 4. Business prospects. 5. Other
reasons for rejection."
Approved.
It was stated that in accordance with the Board's letter of
411€11st
'1934, to the Federal reserve agents with which were transmitted
' eoPies f
0- a preliminary draft of Regulation T, with regard to the
sZte/Ision and
maintenance of credit by brokers, dealers and members of
fllitles exchanges, the Federal Resene Agents at New York, Cleveland
e'llra
Chicago had advised that arrangements had been made for conferences
2557
-2"1 re presentatives of security exchanges to
be held within the next
lb" daYs for the puri,ose of discussing
the draft of regulation.
1,1r. Wyatt, General Counsel, Lr. DuBois,
.Lssistant Counsel, and Ia.. Parry, Assistant
Director of the Division of Research and
3tatistics, were authorized to attend the
meetings at i;ew York, Cleveland and Chicago,
if such attendance were thought by them to be
advisable, and Mr. Parry was authorized to
take with him or to send to the meetings one
or two assistants.
The Committee then considered and acted upon the following
matters:
Letter dated August 20, 195q, approved by three members of the
to 1:r.7illiams, L'ederal Reserve Agent at the Federal :ieserve Bank
or ci
eveland, reading as follows:
"Receipt is acknowledged of your letter of ugust 16,
, ith regard to an additional leave of absence for Mr.
-..ssistant Federal Reserve Agent. You are correct
YcYar understanding that the Board's advance approval should
'4 obtained
in any case where annual leave is extended to any
vsricer or employee of your bank beyond the regular annual
c0tion period. This
0
;
matter is covered by the Board's letters
3.11ne 14, 1928 (X-6069), and December b, 19'62 (X77307).
the , "In view of the circumsLances stated in your letter,
-Jecteral Reserve Board approves the granting to Lir. Fletcher
a leave of absence of not
to exceed two weeks, with full pay,
4 additiOn to
the regular annual leave already taken by him."
lgrze
Approved.
tettlsa,
Letter dated ;,ugust 20, l93q, approved by three members of the
to• Hoxton, Federal Reserve _gent at the 1ederal Reserve Bank
or litchi:a
reading as follows:
"Receipt is acknowledged of Yr. Fry's letter of ugust 8,
1934
sutmitting
a copy of a resolution of the Board of Directors
Th
e
Peoples
Bank, Inc., of Galax, Virginia', evidencing
State
the
desire of that bank to voluntarily withdraw from membership
-3”in the Federal Reserve
Jystem and to have the Board waive
the six months' notice usually required
in cases of this
kind.
"In accordance with Mr. Fry's recommendation and since
it is understood that the First National Bank of Galax,
Virginia, purchased the assets and assumed the lia)
lo
ilities, except the liability to Shareholders, of the
-eoples State Bank, Inc., and that the latter bank has
ceased to exercise banking functions without a receiver or
1?.quidati1g agent having been appointe
d for it, the Board
rail waive in
this case the usual requirement of six months'
notice and
permit the Peoples State Bank, Inc., to withdraw
l'refra membership in the System immediately. Accordingly, upon
3
,urrender of the Federal reserve bank stock issued to the
l'eopleo State Bank, Inc., the Federal Reserve Bank of Rich/11°nd is authorized to cancel such stock and make appropriate
lfUnd thereon, and it is requested that you advise the Board
waen such
refund is made.
13
"The Board has also received Icr. Fry's letter of Lugust
t,) 1934, submitting advice that no representative of the
-0Ples State Bank, Inc., will appear before the Board on
east 28, 1934, in connection with the proceedings which h'.2ve
4 instituted with a view to the expulsion of the bank from
,;;n1bc,rship in the Federal Reserve System. However, in view of
eircum3tances involved, it appears that no further
ctloa will be necessary in those proceedings."
V
Approved.
13(kz,a,
01'
Letter dated August 20, 1934, approved by three members of the
t° Ldr. Walsh, Federal Reserve Agent at the Federal
U,
eserve Bank
reading as follows:
"Reference is nude to your letter of July 16, 1934, which
reply to the Board's letter of Tune 14, 1934, relative
to
com vue report of examination of the 'Dallas Bank and Trust
ti?Q11V, Dallas, Texas, as of January 12, 1934. The informayol"
, aad data submitted with your letter has been reviewed and
ItEi
efforts in obtaining corrections of the various criticised
exa,
,
ters are appreciated. Since it is probable that another
;
it
m14ation of the bunk will shortly be made in connection with
po required certification to the 'Federal Deposit Insuranc
e Cor;”1°n, it may be advisable for you to defer any further action
111g1
auttl that time
with respect to the remaining matters which were
to.Ject t0 criticism in the report of examination above referred
2559
-4"The Board feels, however, that at the time of the next
examination of the bank a thorough examination should also be
zade of its affiliate, the Dallas Title and Guaranty Company.
On the basis of the information submitted, it appears that
the shares of stock of the affiliate owned by the bank are
be142; carried by it at an amount considerably in excess of
the company's net worth as indicated by the pro forma statement submitted. The carrying value of the stock should be
adjusted when the net sound values have been definitely determined.
"It has been noted that while the appraised value of the
1311
.nking house is in excess of the amount at which it is carried on the institution's books, no depreciation thereon has
been taken since the building was constructed in 1927. Sound
be1kin3 policy would appear to dictate that regular and adequate depreciation charges the_.eon should be provided for
annually, particularly since the investment in such asset
appears to be excessive when compared to the capital structure
of the bank. It is suggested that you acouaint the management
(3f the bank, in an informal manner, ;,ith the Board's views
7thich are known to your office, with respect to making adequate
Provision for depreciation in banking quarters owned."
Approved.
Letter dated August 20, 1934, approved by three members of the
t Lir. Curtiss, Federal Reserve Agent at the Federal Reserve Bank
or
Pn
reading as follows:
"This refers to your letter of Ally a, 1934, with which
was inclosed a copy of a letter dated July 30, 1934, from mi..
P. M. Howe, "-resident of the 'Industrial Trust Company',
o1T1dence, Rhode Island, with regard to the transfer to the
rdustrial Trust Company of the title to its main balk buildWhich is now held by its subsidiary, Industrial Holdings,
in exchange for the stock of such subsidiary, all of
leh is now held by the trust company. In his letter, Er.
1//e as
to be advised whether tie al)proval of the Federal
;
eserve Board would be required for such transfer in view of
t-etion 14 of the Banking Act of 1933, and if so, whether the
1'113 t COMpany might reasonably expect such approval.
trn, "While detailed information with regard to the proposed
"saction has not been submitted, the Board understands that
i.1,transfer of title to the bank building would result only
011,
change in the evidence of the trust comrany's ownership
the building, and in the elimination of the corporate
2560
'structure through which the trust company now holds such
b uilding.
It is also understood that prior to June 16, 1933,
the bank buildinp was owned by the trust company through its
Ownership of all of the stock of Industrial Holdings, Inc.
1-Pon the basis of this understanding of the facts involved,
it appears that the proposed transfer would not constitute
al?- investment in bank premises within the meaning of the provisions of section 14 of the Banking Act of 1933, and that
the approval of the transaction by the Board under that section is not recuired.
"As you know, the Industrial Trust Company executed an
reenent on June 30, 1934, to reduce the carrying value of
its investnent in bank buildin7 as represented by its interest in Industrial Holdings, Inc., and it is understood, of
course, that if the proposed transfer is effected, the Industrial Trust Complly nill nevertheless reduce the amount at
which its
investment in the bank building is carried on its
u°°ks to the extent contemplated under such agreement.
,
"You are requested to inform the Industrial Trust Company
the Board's views in this matter, and to advise the company
on the basis of the Board's understanding of the circumstances involved, as described above, the Board will interpose
11C objection to the proposed transaction. It will be appre.?lated if you will advise the Bo-_1rd as to the (iisposition which
48 finally made of this matter."
Approved.
Letter dated ;1.1gust 20, 1934, approved by three members of the
"
13c (1, to Ia..
Uurtiss, Federal Reserve Agent at the Federal Reserve Bank
Or Bos to
no reading as follows:
,
"This refers to Mr. Gettemy's letter of July 1,L,, 1934,
;114Mitting the supplementary application of the 'Norway
';:ati°11a1 Bank', Norway, Maine, for permission to act as
re
eCistrar of stocks and bonds, guardian of estates, assignee,
ri?leilicr, committee of estates of lunatics or in any other
0. 11ciarY capacity in which State banks, trust companies or
corporations which come into competition with national
• 43 are permitted to act under the laws of the State of
,atin
e "e• It is understood that the Norway National Bank has a
t its1 of :50,000 and a surplus of 322,500 and it has been
t:ed t:lat la'. Carrick, your present counsel, raises a ques4°11 whether the surplus of this bank is sufficient to make
2561_
8/21/34
-6"it eligible to receive
permission to exercise the -crust powers
for which applicat
ion has been made.
"As you know, the Board on 4ril 7, 1934, appro
ved the application of the Norway National Bank for permissi
on to act as
trustee, executor and administrator and at
the time of the
Of that aaplication, the bank had
a capital of ‘,50,000 and
e surplus of „112,500. In this connecti
on, it was understood
that your counsel, Mr. Ketchum, was
of the opinion that these
were the amounts of capi
tal and surplus required by the State
law for the org'anization of a State institution
with trust
Dowers located in the same place and
it was upon that underthat the Board granted the bank permission to act
in
these trust capa
cities.
"Mr. Carrick, however, calls attention to the fact
that the
Present laws of the State
of Laine which he states have been in
!frect since
1931, require a trust company located in a place
6he size of Norway,
to have a capital of A0,000 and a surplus
c)f 25,000, and points out that if
the capital and surplus reliremeats of section 11(k
)
of
the
Federal Reserve Act are interpreted
to mean the capital and surplus now required for
the
7gailization
of a bank with trust powers in a place the size of
R 11waY, the surplus of the appl
icant bank
uld not be sufficient.
sUGgests, however, that since there are Stat
e banks and trust
i• aTanies previously
organized and exercising fiduciary powers
r4 'aline with a less
amount of capital and surplus than is now
,
reqllired for the organization
of such institutions, the Board
:
z)111 d be justified
in GrantinL, the applicant bank permission to
, -reise the additional trus
t powers for which it has applied
"poll the basis
of its present amount of capital and surplus.
20 "Under the provisio
ns of section 11(k) of the Federal RetZve Act,
it is contemplated that national banks exercising
t; t Powel.s shall be on a basi
s of equality with State instir
as exercising trust powers.
'..".aile
1
the Board might lawgrant trust powers to a national bank havin
g a capital
•
sta4.surPlus less than that requi
red for the organization of
'
Dre
e institutions with
trus
us t powers, where State institutions
witna"lY organized are permitted to exercise trus powe
t
rs
tor" a less amou
nt of capital and surplus, the Board has herethan (J-von careful consideration to this question and feel
s
/lati 'fl order to comply with the purp
oses of section 11(k)
h4ve°nal banks applying
for trust powers should be required to
,the capital and surplus required at the time by the
State
-cor the organization
41.
of State institutions with trust powers.
ecodi
Of riu ngly, it is the Board's practice
to act upon applications
zleeti 6lonal banks for trust powe
rs on this basis. In this con•
°1111' it may be noted that national banks which may
have prebeen granted permission
to exercise trust powers are not
T
2562
8/21/34
_7_
"required to increase their capital and surplus to the mounts
required for the organization of State institutions with trust
Powers by a State statute later enacted.
"In the circumstances, since, as noted above, the capital
and surplus of the applicant bank are only „:50,000 and J2,500
respectively, and the present laws of Leine recu ire a capital
,'50,000 and a surplus of ..,i25,000 for the organization of
eualarly located State institutiens with trust powers, the
B0ard feels that it should not grant the bank the right to
exercise the trust powers for which it has made application,
17./hile its surplus is less than -25,000. However, if the bank
,:nereases
I
its surplus to the reouired amount, the Board will
ue clad to consider a new application from it for these trust
P°"rs in view of all the circumstances then involved, and you
ere requested to advise the Norway National Bank accordingly."
Auproved.
Letter dated August 20, 1934, approved by three members of the
11;:k.1"4
to
es
"The Braddock National Bank", Braddock, Pennsylvania, reading
rollows:
"The Fed,ral Reserve Board has given consideration to
Y°11r application for permission to exercise fiduciary powers,
3_11.6 grants you authority to act, when not in contravention of
tate or local law, as trustee, executor, administrator, regl
retrar oz stocks and bonds, guardian of estates, assignee,
r? leiver, committee of estates of lunatics, or in any other
0.1t;fciarY capacity in which State banks, trust companies or
b "er corporations which come into competition with national
are permitted to act under the laws of the State of
13:
tks
i
t-44aYlVaniu, the exercise of all such rights to be subject
t? the provisions of the Federal Reserve Act and the regula1°118 of the Federal Reserve Board.
"This letter will be your authority to exercise the
rid
cpueiarY powers granted by the Board. A. formal certificate
nc such authorization will be forwarded to you in due
-ourse.”
Approved.
t(kl,c1,
Letter dated August 20, 1934, approved by three memb,rs of the
t0
Ilon. J. G. Polk, Washington, D. C., reading as follows:
2563
8/21/34
-8--
"Your letter of August 1, 194, to the Comptroller of
the Currency, in regard to a request received by you from
41.11- Blair Boyd of Hillsboro, Ohio, for information in regard
to an application for fiduciary powers submitted by 'The
9entral National Bank at Battle Creek', Battle Creek, lich1117 €m) has been referred to the Federal Reserve Board for
reply.
The application of The Central rational Bank at Battle
Creek was considered by the Board, and, on July 5, 19&4, the
Psderal Reserve Agent at the Federal Reserve Bank of Chicago,
throllE;h whom the application was submitted, was advised that
the Board had deferred action thereon until the institution
had been in operation for at least one year, after which the
aPPlication would again be given consideration.
, "With reference to the hearsay statement attributed to
J\l(„511.gts Johnson of the i-robate Court at Earshall, to the effect
'there would only be one bank granted trust rights in
Battle Creek', the Board has not indicated that it would
graAt trust powers to but one bank in that city. In passing
,
111411 applications of national banks for trust powers it has
real the policy _Df the Board to give careful consideration to
bile various factors involved, including the condition of the
j
e ,PlYing bank, the character of its management, the needs of
.
Lle community to be served, and any other pertinent facts and
Icilr cumsances, but it has placed no restrictions upon the
Illaher of banks which may exercise trust powers in any given
t,Y* other than the fitness of such bank or banks to act in
lduciarY capacitips."
Approved.
TelegrEun dated August 20, 1934, approved by two members of the
oed
to LIr. Clark, ..ecretary of the Federal Reserve Bank of Atlanta,
l'144111g as follows:
"Your wire August 14 requesting advice as to whether Board
1:4-1-d disapprove any of certain suggested methods of computing
s
e414rges on commitments under section 13b of Federal Reserve ,Act.
°nd method stated in your telegram seems fair and eouitable
1.e4 40 reason appears why it would work to detriment of Federal
wiserve bank in procuring funds from Treasury in accordance
8,t4.th law and terms of agreement with Treasury. First meuhod
°rated may in some cases involve aggregate charges on discounts
,. advances which would be higher than justified. Third method
'
117.es financing institutions option of renewing commitments for
X
2564
8/21/34
_9-
"juccessive ninety day periods but Federal reserve bank is
obligated to renew and therefore in some cases would probably
Prove unsatisfactory. For these reasons the Board would not
be disposed to
regard favorably the use of first or third
Method in ordinary circumstances."
Approved.
Telegram dated .ugust 20, 1934, approved by three members of
the B
to the Govcrnbrs of all Federal reserve banks, reading as
t°11ows:
"Beginninr:
, August 22 the condition statement of the
Federal Reserve banks will show the amount of commitments
1eh the Federal Reserve banks have made following item
C°ntingent liability on bills purchased for foreign corF,e spondentsf, on the combined statement of condition of all
.o,?deral Reserve banks and on the detailed statement showing
ilities of each Federal Reserve bank against the cap1°11 'Commitments to make industrial advances', and the
;
IIturity distribution of such advances will be shown folt°171nE item 'Bills bought' in the maturity distribution at
bottom of the statement of liabilities for each Federal
!
eserve bank. The maturity distribution should be shom on
“
)1111 34 and wired against l'ollowing code words:
Past due
Within lb days
16 to'bO days
31 to 60 days
61 to 90 days
91 days to 6 months
Over 6 months
Total
Code liASK
tI
MOON
MESH
It
MUTE
MONK
MUFF
MOLE
TUNE
'Industrial advances payable in installments should be
uletributed
according to the maturity of such installments."
Approved.
Letter dated August 20, 19 ,1, approved by two members of the
;3°e11(1 1 t
Q1141:1e,e
Toseph P. Kennedy,Ilairman of the :securities and Ex-
eMmission, ,
- :ashington, D. C., reading as follows:
2565
8/21/34
-10-"A preliminary draft of a regulation relating to Extension
aad Laintenance of Credit by Brokers, Dealers, and Members of
Securities .Lxchanges has been prepared by the Board's staff for
co
nsideration of the Federal Reserve Board. The Board takes
Pleasure in sending several copies of this draft for the infortation of the Commission. The Board would welcome suggestions
l'crn. the Commission or any of its members, or from its staff,
in regard to this regulation, either as to substance or form.
"This preliminary draft has been submitted to the Federal
se ery banks for criticisms and suggestions with the re'luest
1
2
:
at they also obtain criticisms and suggestions from representa617es of the securities exchanges and from other qualified persons.
.11. such
criticisms and suggestions are to be transmitted to the
411rd in writing at the earliest possible moment and in no event
'
Later than September 1.
"You will note that the margin requirements prescribed by
..,"ls regulation are those outlined in Section 7 of the securities
;
Lct of 193,1, including the particular percentages there
(
1'„Iven. The Board has authority under the law to establish dif,!Itellt Percentages, however, and has deferred decision on this
restion ending analysis and study of factual and statistical
ormation which
the Board has obtained from certain of the ex-
Approved.
Letter dated August 20, 1934, approved by three members of the
to
Case, Federal Reserve Agent at the Federal Reserve Bank of
zz
Izer,
readi4; as follows:
zlo :This refers to your letter of July 30, 1934, with which
004 inclosed a copy of a letter from the Danufacturers Trust
Re14
,
,
1)(111Y) of New York City, requesting a ruling of the Federal
e Board on the question whether interest may lawfully be
on deposits of the Comptroller of the City of New York as
cl;Z:t for the Triborouc,t Bridge Authority which are payable on
014114. This matter aas been the subject of previous corresi37
co dence and in your letter of May 18, 1934, you inclosed a
viZ of the opinion of your counsel on the question, holding
1)0s
:a member bank may not lawfully pay interest on such deilicta"s, together with a copy of an opinion of Messrs. 3hearman
rljug ,
counsel for the rational City Bank of New York,
-" aPParently takes the same position.
Iteci It appears that the Triborouh Bridge Authority was creor _1 .3Y Chapter 145 of the Laws of New York, 1933, Section 1
"eh
4Jprovides in part as follows:
2566
8/21/34
-11-board to be known as Triborough Bridge Authority
le hereby created. Such Board shall be a body corporate and politic constituting a public benefit corporation.* * *,
"Section 5 of Chapter 145 provides that all moneys of the
i.luthority from Whatever source derived shall be paid to the CompOf the City of New York as agent of the -uthority and
he shall not commingle said moneys with any other moneys.
Triboraugh Bridge Authority is given power to construct
c
ertain bridges and apparently this is the Object of its creation.
"In the circumstances, the Federal Reserve Board finds no
j
i l son to differ with the conclusion reached by your counsel
the Triborough Bridge Authority is not a 'State, county,
;°u001 district or other subdivision or municipality' within
Ilet meaning of the exception to the prohibition against the
'
4-4111ent of interest on deposits payable on demand contained
Section 19 of the Federal Reserve -,ct. Accordingly, it is
ifla view of the Board that a member bank may not lawfully pay
tnterest on deposits payable on demand received from the Comp°11er of the City of New York as agent of the Triborough
in
!
',utaority except in accordance with a contract entered
c1C:e ,
t;"? in Food faith prior to Tune 16, 1933, and in force on
j
oa6 date, and a member bank must terminate or modify such a
si.12,tract
1
so as to conform to this requirement as soon as pos°e
l consistently with its contractual obligations."
g
Approved.
Letter dated August 2D, 193/., approved by three members of the
t
° -r. Chas. R. Adair, Flint, Lichk;an, reading as follows:
19, "Receipt is acknowledged of your letter of August 13,
se`4, requesting that the Federal Reserve Board send a reprepelt"ive to Chicago to participate in a discussion of the
,keral
Reserve System on August 30, 1934.
While the Board desires to be as helpful as possible in
s;e3-11,g about a better understanding of the Federal Reserve
doe4em and the
purposes which it is designed to accomplish, it
obt'3.110t feel that any substantially useful results would be
allied from a discussion of the kind suggested in your letter."
Approved.
Letter dated
August 20, 193, approved by three members of the
'to
CL,se, Federal Reserve Agent at the Federal Reserve Bank of
2567
B/21/34
-12-
"
11
"k,
4
referring to the request of Mr. E. P. Earle for a ruling as to
the a Plicability of section 32 of the Banking Act of 1953 to his service
"
director of the Lanufacturers Trust Company, New York City, and as
l'Icer and director of the Nipoch Corporation, and stating that, on the
b48
iz or the informution before it, the Board concurs in the agent's
°Pinion that
the ilipoch Corporation may not be regarded as being "enga'--ed
DI':4arilY in the business of purchasing, selling or negotiating securities
'thila the
intendment of the provisions of section 32", and that, in the
a permit covering Mr. Earle's service to the corporation
elld to
the Manufacturers Trust Company is not
necessary.
Approved.
Letter dated August 20, 1934, approved by three members of the Board,
to
the fro,
-,-Lowinc; applicant for a permit under section 32 of the Banking :,ct
01' 1933
—; the letter stating that the relationship covered by the application
41313e.,
to
e(Xle within the class which the Board believes section 32 wa,s
desi
to
terminate, and that the Board, therefore, is unable to find that
lt woio
'w-d not be
incompatible with the public interest, as declared by Conto
t° Grant the apnlication, although in the event the applicant desires
ztlbrai+
Airther facts or arguments in support of the application the Board
I3repared
to give them careful consideration:
Mr. Henry • Cohu, for pe mission to serve at the same
time as a director of The Harbor State Bank, New York,
aew York, and as treasurer and airector of Air Investors,
Inc., Jersey City, New Jersey.
Approved, together with a letter
dated August 20, 1934, also approved by
three members of the Board, to Mr. Case,
l'ederal Reserve Agent at theederal Reserve Bank of New York, reading as follows:
2568
8/21/34
"There is inclosed a copy of the Board's letter of tlis
date to Mr. Henry
Cohu relating to his application for a
Penult under Section 32 of the Banking ;,ct of 1933 to serve
az director of the Harbor State Bank, New York, New York, and
as treasurer and director of Lir Investors, Inc., Jersey City,
Irew Ziersey, in which letter the Board, in agreement with you
and Your counsel, has notified Er. Cohu that it is unable to
fill(' that it would not be incompatible with the public interest
t° grant his application.
Cohu also has made application for a permit under
Section 32 to serve as director of the above named bank and as
Partner of the firm of Cohu Brothers, New York, New York. From
!he information submitted in that application, it appears that
uhs firm is carrying on a stock brokerage business and that
ection 32 is not applicable to the relationship covered by La..
.011t1'3 application to serve Cohu Brothers and the member bank.
lA this
connection reference is made to the Board's letter of
APril 13, 1934 (X-7860). Therefore, it will be appreciated if
4 )11 will ascertain whether the business of the firm includes
'he underwriting, flotation and distribution of securities or
Participation in such transactions. If you find that it does
11?-b 33 engage, unless there are other facts which you believe
loUld be brought to the attention of the Board, it is suggested
1, 3.t You notify the applicant that Section 32 does not apply to
lz relationship to themember bank and to Cohu Brothers, and
at d permit for the continuance of the same is not necessary.
l'ts You know, the provisions of t:re Clayton .2,ct are not appli:able to the relationship involved since the applicant is not
'
el Irin0 Any bank organized or operating under the laws of the
,
uaited States.
"It will be appreciated if you will advise the Board as to
the
steps which Mr. Cohu takes in order to bring his relation!ail) to the Harbor 'State Bank and Air Investors, Inc., into
j
`; 111Pliance with the provisions of Section 32, and what disposi,
,
1°h is made of his application to serve that bunk and the firm
Cohu Brothers."
Z
Letters to the following applicants for :permits under section 32
or
tha 8azikingct
of 1933; each letter stating that the relationship
er*ecl bY the application appears to come within the class which the
bQlieves section 32 was designed to terminate, and that the Board
tlie°re is unable to find that it would not be incampatible with the
interest, as declared by Congress, to grant the application, al-
2569
11
8/21/34,
-14-
in the
event the applicant desires to submit further facts or
tbints in support of the application the Board is prepared to give
them ca-Peful
consideration:
Mr. Matthew S. Sloan, for permission to serve at
the same time as an officer of the Irving Trust
Company, New York, NOW York, and as a director of
the Reliance Management Corporation, New York,
New York.
Mr. Joseph S. Maxwell, for permission to serve at
the sane time as an of
of the New York Trust
Conrany, New York, and as a director of the Reliance Mamagement Corporation, New York, New York.
Approved.
Letter dated August 20, 193,i, approved by three members of the
' to- LI'. Williams, Federal Reserve ...gent at the Federal Reserve Bank
rn
"eveland, reading as follows:
"The Board has received Mr. 7letcher's letter of August 11,
0 34) With inclosures, pertaining to the application of Mr.
.? B. Foster for a permit under ,.;ection 32 of the Banking Act
a-Ls 19'0,5 to
serve as director of the Citizens Trust Company and
ohi general partner of Snyder,
L. Company, both of Toledo,
"The information which has been submitted indicates that
SrlYd er,
Company is engaged in a general stock brokerage
btisi ness
and also is engaged to some extent in distributirg shares
1,11 aa investment trust. The applicant, however, has failed to
t1
,
1rhish. the Board with any figures sufficient to enable the Board
iLlJrideteimine whether the activities of Snyder, j_lson & Company
bonaection with the latter tyre of its business are such as to
itlAZ it within the scope of Section 32. In the circumstances
1:0 13 e4ggested that you request the applicant to furnish figures
der the three years ending Tune 60, 1934, indicating the income
ed from commissions on the sale of stocks and bonds for
and income derived from trading on its own account, either
L.14 c)linection with the purchase and sale of securities in the open
et or in connection with the distribution aid issue of secur48, and showing the exnenses of he firm during the sane period
11.1:
va c-illaey be attributed to the firm's commission business and those
cla:ir have been attributed to its trading in securities business,
O
2570
ah1/3,1
-35-
6.8 well as detailed info nuation pertaining to the trust or other
shares which the firm sells as a member of a distributing group.
11 t
ransmitting the matter to the Board, it will be appreciated
YOU
will submit, also, the opinion of your counsel on the ques.;"*.
,.1°11 whether such additional information as may be furnished indies that the business of snyder, iilSofl & CoRTe.ny comes within
scope of section 32."
V
Approved.
There were then presented the following applications for changes
14 stook of
pederal reserve banks:
44.Plicatiorn for ORIGINa Sto ck:
.1"cp
'°u
national Bank in Cordele,
e°1‘dele, Georgi a
tlatri
Shares
66
06
Ilationai Bat k in DuCLuoino
Illinois
ications for
Stock:
No. 4. ADDITIONAL
riti-rd ITational
Bank of
Ashialact,
4.11e
Kent uclzr
Pi.pet 1:atin
oal Bank of Racine,
keine, 0111.0
4ret National
Bank of Rocky River,
zlilqocky River,
Ohio
e 41'st
National Bank of Jerome,
J'erolr*,
1.-,ennsylrania
kat,.
ct uo.
6.
e
75
Total
75
141
rft.0
Bank of Homestead,
rivlictiestead, Florida
Citizens National Bank of Lieridian,
Mississippi
36
1
39
6
82
1
18
19
6
6
30
30
Z.t
Etzti
•
,Ttel\E3
LoanTruzt Company,
.`lizt04)
Indiana
etrict :/o. 9.
.:;avirlis Bank,
Ste. Iviarie, lachi6an
2571
8/21/34
1
ications for ADDITIONAL Stock:(continued)
District No. 10.
First National Bank of Tasper,
ir,,J1t8P(sr, 1,11 sscurl
-lc First National
Bank of Kemmerer,
ICelninerer, Wyoming
Shares
3
48
Total
51
188
27
27
18
18
51
51
A
licAtions ror SURRENDER of Stock:
1Jiatr
No. 7.
The r
National Bank of Hampshire,
liezpshire, Illinois
rin_bi riot
No. 9.
'
48. First
National Bank of Donnybrook,
Zolltlybrook, North Dakota
lIt
t iet No 11.
!
e --uvral
State Bank of McKim:113Y,
444111131e3r, Texas
ti14131)tirlet No.
12.
National Bank,
44kilets, Oregon
30
Total
30
126
Approved.
Thereupon the me eting adjourned.
(
19WIT-ri
4koved,
Cha
ecutive Committee.
, VIONIC
A-11(
7
ecretaiy
-.
@FedFRASER