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1730 Minutes of actions taken by the Board of Governors of the Ilecleral Reserve System on Wednesday, December 10, 1947. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman Minutes of actions taken by the Board of Governors of the 41 Reserve System on December ' 9, 1947, were approved unani- 111°11813r. Minutes of the meeting of the Board of Governors of the Reserve System with the Presidents of the Federal Reserve S held on December 9, 1947/ were approved unanimously. Memorandum dated December 9, 1947, from Mr. Thomas, Di- Nt°11 of the Division of Research and Statistics, recommending t114t the resignation of Miss Eleanor Wirth, a clerk-stenographer Ill -that Division, be accepted to be effective, in accordance with her request, at the close of business December 24, 1947, with the 1111derstanding that a lump sum payment would be made for annual leMrs r emaining to her credit as of that date. Approved unsnimously. Letter to Mr. Leedy, President of the Federal Reserve Bank -g4leas City, reading as follows: 1731 12/10/47 -2- "Reference is made to the recent exchange of correspondence regarding the absorption by your Bank during 1947 of more than 50 per cent of its cafeteria expenses. "Based on the information furnished, the Board is satisfied that it will not now be practicable to bring the amount absorbed during 1947 within the authorized limits. In this connection, however, it wishes to point out that, at the joint meeting of the Board of Governors and the Presidents of the Federal Reserve Banks held on June 6, 1947, Chairman Eccles reviewed the present authorization for the Banks to absorb up to 50 per cent of the cost of operating cafeterias and stated that it was the Board's view that the Banks should adjust their practice so that by the beginning of 1948 they would not be absorbing more than 25 per cent of cafeteria expenses. It was apparent that some of the Federal Reserve Banks felt that this was too drastic and rapid a reduction in the Proportion of cafeteria expenses absorbed, and after considerable discussion at the joint meeting with the Presients on October 7, 1947, the matter was referred to the Presidents' Conference Subcommittee on Personnel Classi!ication and Job Evaluation for study and report. To qate the Board has not received a copy of the Subcommittee's report. "The Board notes that your Bank is now furnishing its emPloyees with dining room service; that it charges employees a flat fee for meals served, which fee is deducted from salaries; and that free meals are furnished to service emPloyees. You state you are hopeful that it will be recognized that your procedure produces a figure of absorption functional expense reports, Form F. R. 634, which is cLifferent than the Board contemplated in prescribing a IllaXimum percentage of absorption of cafeteria service eZPense. The Board has recognized that the cafeterias all Federal Reserve Banks have not been operated on same basis but it contemplated that the 50 per cent would cover all cafeteria expenses absorbed by a 'nerve Bank regardless of the plan of operation. In is connection it is noted from the report of liorwath wad Horwath that they consider the procedure you follow a 100 per cent subsidy of the food operations of the ! Ink. The Board is strongly of the belief that employees snould be charged for meals actually served them and it n 1732 12/10/47 -3- "concurs in the statement in the Horwath and Horwath rePort that 'with cafeteria service a wider selection of Choice, and a more flexible menu generally, could be more easily accommodated." It is assumed from your 1948 budget that your Bank contemplates the discontinuance of the practice of furnishing free meals to service employees. "In the circumstances the Board requests that the necessary steps be taken to reduce, as of January 1, 1948, the portion of the cafeteria expenses absorbed by the Bank well below the 50 per cent limit so that there Can be no likelihood in the future of the Bank's absorbing more than half of the cost of operating its Cafeteria as disclosed by the Functional Expense rePorts. In making the necessary changes it is suggested that your Bank keep in mind the possible rethat may be made in the portion of the expense that may be absorbed following the receipt of the rePort of the Subcommittee of Personnel Officers of the Federal Reserve Banks and action thereon by the Presidents and the Board. In the meantime it is requested that you advise the Board not later than December 31 What plan you propose to put into effect in response to this request." Approved unanimously. 4 iti A...Abel! Secretary. Chairman.
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