The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Minutes of actions taken by the Board of Governors of the Federal Reserve System on Monday, December 13 1954. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Martin, Chairman Szymczak Mills Robertson Balderston Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Thurston, Assistant to the Board Leonard, Director, Division of Bank Operations Vest, General Counsel Sloan, Director, Division of Examinations Johnson, Controller, and Director, Division of Personnel Administration Sprecher, Assistant Director, Division of Personnel Administration The following matters, which had been circulated among the memof the Board, were presented for consideration and action taken as indicated: th„ “ Memoranda from appropriate individuals concerned recommending he basic annual salaries of the following employees be increased cne amounts indicated, effective December 19, 1954: Division Basic annual salary To From Office of the Secretary Cora Lee Batch, Review elen E classifier Il. Cook, Review Classifier $3,910 $4,035 4,035 4,10 10,400 lo,600 Research and Statistics C. Smith, Economist 1833 12/13/54 Salar increases -2effective December 19, 1954 (continued) Name and title Division Basic annual salary From To ....._ Bank Operations Eleanor I. Klein, Statistical Clerk $3,495 $3,577 2,792 2,872 4,035 4,160 Administrative Services lienrY A. Bates, Messenger Elsie N. Carrick, Assistant Supervisor, Stenographic Section Approved unanimously. Memorandum dated December 7, 1954, from Mr. Sprecher, Assistant Director Division of Personnel Administration, recommending that the !PPointment of Billie Jo Hickman, who was transferred to the position of Secretary in ,that Division for a period of one year effective January 1, .L 54, be extended through 1955. Approved unanimously. Memorandum dated December 2, 1974, from Mr. Young, Director, on of Research and Statistics, stating that M. H. Schwartz, an tInomist in that Division, had been asked to serve as president of the Ltle Hunting Park, a nonstock, nonprofit corporation to be chartered b, tLthe State of Virginia in the next few days. The memorandum recommended ' 4at Permission be granted to Mr. Schwartz for this outside activity. -4 "I Approved unanimously. Memorandum dated November 291 1954, from Mr. Young, Director, of Research and Statistics, stating that Mr. Riley, Chairman Ate "e Committee of the Business and Economics Section of the willl-can Statistical Association, would like to propose the name of Mr. to rms) Assistant Director of the Division of Research and Statistics, 4"e Association tcc: for the position of Chairman of the Business and electcs Section for the year 1956, with Mr. Williams serving as Chairmandllring 1955. The memorandum recommended that Mr. Williams be granted ' esion to accept nomination to this office. Diviei Of Approved unanimously. 12/13/54 Mr. Sloan, Director, Division of Examinations, entered the room at this point. Letter for the signature of the Chairman to Mr. Joseph H. Wolfe, Secretary, Trust Division, Americ an Bankers Association, 12 East 36th Street, New York, New York, reading as follow s: Reference is made to your letter of November 17 in Which you refer to the annual studies of trust department income and expenses developed initially by the Federal Reserve Bank of Boston in 1948 and similar studies which were later undertaken by the Federal Reserve Banks of San Francisco and New York. The benefits derived from such studies by the trust institutions in the Federal Reserve Districts involved have prompted your Committee on Relations with Supervisory Authorities to recommend, through the Executive Committee of the Trust Division of the American Bankers Association, that the Board lend its encouragement and support to the development of surveys of such kind on a uniform and nation-wide basis. We have been aware of the widespread favorable interest Which has been generated by these surveys of trust department Operating results among those concerned with corporate fiduciary activities and the profitability of trust department operations. From time to time members of our staff have informally considered the desirability of the Board sponsoring development of such surveys on a national basis. In view Of the specialized nature of the studies and the rather limited field of interest in the results obtained, and in consideration of the complexity and volume of the work involved in their successful completion, the opinion thus far has been that such a program should not be urged upon the Reserve Banks faster than interest in it is strongly evident On the part of member banks in their respective districts. There are two rather substantial problems concerned with surveys of this kind on a twelve-district basis. One of tnese, as you so well point out in your letter, is the matter Of uniform method s of reporting. This has been a major obstacle in the development of studies in those districts which have inaugurated them, and it is most clear that if the survey !eeults are to be meaningful to the interested trust instituions, the component data must be accumulated, processed, and interpreted on a uniform basis. Present methods of bank accounting with respec t to trust department operatint, costs are licit in all cases compatible with this essential feature of he surveys which you recommend. Another problem bearing on 1835 12/13/54 _i4_ this proposal is concerned with the fact that surveys of this kind are of interest primarily to those banks which administer trust business in relatively substantial volume. In some Federal Reserve Districts there may be too few banks with a sufficient volume of trust business to make these operating surveys desirable or significant. In fact, it is believed that only those banks with a substantial volume of trust business, and where trust department cost data are developed in fairly comprehensive form, would be enabled to participate effectively in operating surveys of the kind herein discussed. We will be happy, of course, to explore this matter further With our own staff and with the Federal Reserve Banks, and toward this end we welcome the offer of assistance from your Association. Approved unanimously. Memorandum dated November 12, 1954, from Mr. Hexter, Assistant Ge Counsel, with respect to the proposed acquisition by Montgomery ! Iorristown Bank and Trust Company, Norristown, Pennsylvania, of stock a newly formed title insurance corporation. The memorandum stated bhat Montgomery Norristown Bank and Trust Company was admitted to memel ' 13111P in 1925 at which time it had authority to engage in the title in;ranee business, that it had continued exercising this power throughout e intervening years, but that it now proposed to dispose of its title 8urance business to a separate corporation (which would also take over I41,re title insurance business of The Bryn Mawr Trust Company, a nonmember iiret4k) and to receive payment for the business in the form of a 40 per cent 17 , c'ek interest in the new title insurance company. The nonmember bank c' ould J receive the remaining 60 per cent stock interest in the new title 1,111:Pal-W. Mr. Hexter's memorandum stated that the legal question was her the proposed acquisition by the member bank of stock in the title e7Urance company would constitute a "purchase" of such stock, in which (12 ent it would be prohibited by Section 5136 of the Revised Statutes re U.S.C. 24). For reasons set forth in the memorandum, Mr. Hexter had prird the conclusion that such acquisition of stock would constitute a °these and would, therefore, be prohibited by the statute. _ Mr. Hexter's memorandum noted that the Federal Reserve Bank of -lacLelPhia regarded the plan as constructive and desirable, and that that ank recommended that no objection be interposed to its consummation. The 114 al. memorandum stated further that, if the Board was disposed to take an Villerse Position in connection with the proposed transaction, Messrs. Hill, President, and Vergari, General Counsel, of the Philadelphia Bank, 1,,' like to have an opportunity to discuss the matter with the Board bevre final decision was reached. 1_836 12/13/54 _5. Chairman Martin suggested that in view of the opinion expressed bY the Legal Division, Messrs. Hill and Vergari be invited to come to the Board's offices for the purpose of discussing the matter. There was agreement with this suggestion. Memorandum dated December 3, 1954, from the Division of Examinations ?"ecommending that the Federal Reserve Bank of New York be advised informally .t.hat favorable consideration would be given the tentative proposal of the Jcdankers Trust Company, New York, New York, to acquire the Bronx County Trust _ 0411PanY, New York, New York, and its eight branches, according to a plan ki Ubmitted by Bankers Trust Company, provided the bank premises to be acred in the transaction are placed on the books of the purchasing bank f a figure not in excess of the depreciated value of such properties as 'omPuted for income tax purposes. Approved unanimously. New Letter to the International Banking Corporation, 5) Wall Street, York, New York, reading as follows: Reference is made to your application, transmitted through the Federal Reserve Bank of New York under date of March 19, 1954, for permission to establish a branch in Madrid, Spain, or its environs. In a letter dated May 27, 1954, the Federal Reserve Bank of New York reported that, as requested by the Board, Your Corporation had been advised informally of the views of the Defense Department and that, if your Corporation desired that further consideration be given to the applicatl°n, you should furnish additional information regarding the reasons for establishment of the branch, the scope of activities, and the type of business to be conducted. Subsequently, your letters of May 26 and June 11 to the Federal Reserve Bank of New York furnished further information re garding your application. In a recent letter from the Department of the Air Force, the Board was informed that the matter was investigated in raid-summer, and checked further during a staff visit to SPain in October, and that it had determined that the best interests of the United States Government would be best served at this time by utilizing existing Spanish banks. 1 3f 12/13/54 -6- In the circumstances, therefore, the Board will take no action on the application at this time. However, should you wish at some later time to establish a branch in Spain out of considerations unrelated to the requirements of the Defense Department, the Board will, of course, be glad to consider a new application on the basis of the then existing facts and circumstances. Approved unanimously, for transmittal through the Federal Reserve Bank of New York. Letter to the Presidents of all Federal Reserve Banks reading as f°11owe: This refers to the Board's letter of September 30, which requested comments on whether a breakdown of borrowings, from Federal Reserve Banks and from others, should be shown in the weekly reporting member bank statement for banks outuide of New York City and Chicago. As indicated in the Board's letter, this breakdown has already been put into effect in that part of the statement showing data for New York City and Chicago. On the basis of the replies that have been received, it appears that the breakdown could be furnished from Reserve Bank records with little effort, and that the information would be useful and worth while. Beginning with data for the first Wednesday following the date of this letter, all Federal Reserve Banks are requested to obtain from their own records the borrowings of weekly reporting member banks and, with this information, to subdivide the "Borrowings" item in their reports to the Board. For this purpose, the code words FARB, for borrowings from Federal Reserve Banks, and PAFO, for borrowings from others, Should be used in telegraphic reports. No change, however, Should be made in forms used by reporting member banks, and the code word PAIN, for total borrowings, will be continued for this purpose. Reserve Barks are also requested to obtain and forward the c orresponding data for the preceding week in order that comparisons may be shown in the first statement; :ese these thoughdil data need not be compiled for the preceding year, althis was done at the suggestion of the Reserve Banks concerned when the breakdown was adopted for New York City and Chicaeo. rw, Inasmuch as the distinction between sources of borrowings cJI be inconsequential in individual districts,'corresponding Of nges may be made, or not, in releases and other publications weekly reporting member bank data at the Reserve Banks. Approved unanimously. ISg'q 12/13/54 -7- Before this meeting there had been circulated among the members of the Board a memorandum from the Division of Personnel Administration dated December 3, 1954, with respect to Public Law 767 signed by the President on September 1, 1954, providing unemployment compensation for Federal employees. The memorandum stated that under this Act, any former civilian employee of the Federal Government, with certain exceptions defined bY law, may receive unemployment compensation for all periods of un" Illloyment subsequent to December 31, 1954, in accordance with the laws °f the State where he resides. Such benefits would be determined and paid by' the State concerned on the basis of information provided by the agency Of the Federal Government where the claimant performed Federal service 4Urtng the base period used in computing the benefits. The Federal Gov- ernment would reimburse the State concerned from appropriations which 11°Uld be made by Congress for the purpose and which would be administered bY the Secretary of Labor. The memorandum went on to say that the Legal Division had expressed the °Pinion that Public Law No. 767 was applicable to persons who left the "11/10Y of the Board of Governors. It also recommended that the Board tc)rniallY recognize the applicability of the law to employees who left the ce Of the Board so that information about the service of a former "1151°Yee could be furnished to a State upon request in those instances Vhere v. claim for unemployment compensation was filed. In addition, the iller4°Ilealdum stated that the Board would have no responsibility for determining 1839 -8- 12/13/54 the amount of benefits to which former employees are entitled and would 'would not be required to make any payments in respect to the benefits to be received by former employees. Mr. Sprecher commented. briefly on the proposed action, after Ighich Governor Mills inquired as to the practicability of the Board cont ributing amounts sufficient to offset the cost to the Federal Government .Of 444,Y ' benefits paid under the law. Governor Mills' point was that other- ise the Board might be regarded as obtaining benefits for former employees from the Federal Government without having contributed to meeting the Cost, and that this situation might be a case for criticism. There followed a general discussion of the manner in which the 114e111Ployment compensation benefits would be determined and paid for and (4' the question raised by Governor Mills. During the discussion it was Ngested that regardless of whether the Board formally recognized the apPlicability of the law at this time, there appeared to be no question that the law applied and that a former employee would have a right to rethe Board to supply the necessary information to enable him to recei've benefits under the Federal unemployment compensation law. After further discussion, the recommendation contained in the memorandum was approved unanimously. Mx. Hexter, Assistant General Counsel, entered the room at this There was presented a letter to Mr. James C. Tweedell, Assistant to tu '8 President, Carrier Corporation, 942 Investment Building, Washington, 12/13/54 D. C., reading as follows: z Following the discussion you and Mr. E. Taylor Chewning had on November 171 1954 with Governor Szymczak and members Of the Board's staff regarding the air conditioning contract for the proposed Birmingham Branch building, at which time You delivered your letter of November 15, the Board has made inquiry regarding the matter. The Board understands: 1. Carrier Corporation and York Corporation were invited to compete for the design and installation of an air conditioning and ventilating system for the proposed alterations to the Birmingham Branch of the Federal Reserve Bank of Atlanta. 2. That the criteria for the system were set Up by Mr. Albert L. Baum of the firm Jaros, Baum & Bolles of New York, as consulting engineer. 3. That the designs and bids were to be submitted to Mr. Baum for evaluation and recommendation. 4. That any questions as to intent or requirements were to be referred to Mr. Baum for decision. 5. That, as stated in your letter, the original bid submitted by York Corporation was in the amount of $350,000 and that of Carrier Corporation *268,653. 6. That the consulting engineer considered neither bid acceptable. 7. That the consulting engineer called in representatives of each of the two companies, amplified his specifications, and gave each of the bidders opportunity to modify its original proposal. 8. That the consulting engineer considered that these discussions: constituted a clear and evident rejection of both original bids and that he did not regard it as appropriate, in the circumstances, to Permit one company to modify its bid without permitting the other company an equal right. 9. That following the meeting with Mr. Baum each Of the two companies modified its design proposals and submitted revised bids; Carrier Corporation in the amount of $282,463 and York Corporation in the amount of $281,500. 10. That Mr. Baum, the consulting engineer, recommended acceptance of the bid of York Corporation, not only as being the low bid on the revised proposals, but because the design proposed by York Corporation offered a number of significant technical advantages. 12/13/54 -10- 11. That throughout the consideration of the original bids, the modifications, and the revised bids, the Bank has acted upon the advice of Mr. Baum, its consulting engineer. 12. That at no time have you or the representatives of your company questioned the competency, the integrity, or the ethics of Mr. Baum. 13. That representatives of your company have been afforded ample opportunity to present their views to Mr. Baum and to President Bryan and other senior officers of the Federal Reserve Bank. In this connection, when asked during the discussions in Governor Szymczak's office on November 17 whether your representatives had seen Mr. Bryan about the matter, you replied that they had been literally thrown out of his office, leaving with the group the impression that they had not been accorded a hearing. The Board understands that two of your Atlanta representatives met with President Bryan, First Vice President Clark, and General Counsel Patterson in Mr. Bryan's office on November 8, 1954, for more than two hours. It is understood that during that time Mr. Bryan explained that in the matter the Bank was acting solely upon the advice of its professional consultant, Mr. Baum, and on several occasions asked whether your representatives questioned his competency or integrity. Mr. Bryan was repeatedly informed that they did not make such a charge, but that, on the contrary, they regarded Mr. Baum as a man of competency and of the highest integrity. It is also understood that during that meeting Mr. Bryan asked your representatives several times whether they would like to appear before the Board of Directors of the Atlanta Bank, and your representatives consistently declined. The Board has been informed that it was only after more than two hours of repetitious discussion, and when no new points were being advanced, that Mr. Bryan terminated the interview. In the discussion with Governor Szymczak, you and Mr. Chewning suggested that Carrier Corporation had been invited to bid, and was used as a means to bring about a reduction in the bid of York C orporation. Mr. Bryan denies this categorically and had advised the Board that the bids were called for mi that the negotiations throughout were conducted in good faith. In the circumstances, the Board sees no reason to ask the Directors of the Reserve Bank to reconsider their action, taken in the light of all of the circumstances and upon the advice of the Bank's consulting engineer. ci,f1 12/13/54 -11- If the Board's understanding of the matter, as outlined above, is incorrect in any significant manner, it would appreciate advice as to where it is not correct. Approved unanimously, with a copy to Mr. Bryan, President, Federal Reserve Bank of Atlanta. Mr. Sloan withdrew from the meeting at this point. Governor Robertson referred to the discussion at the meeting on December 10 regarding the recommendation of the Presidents' Conference that no action be taken to integrate the Retirement System of the Federal Reserve Banks with the Social Security System in a manner which would Isesult in raising from $3,600 to $4,200 the amount of an employee's salary °I1 which contributions by the Federal Reserve Bank to the Retirement Systeln of the Federal Reserve Banks would be based. He then read a memorandum //hich he had prepared, as follows: The question before us, as I understand it, is whether we Should recommend to the Board of Trustees of the Retirement System that the "point of integration" be raised from $3,600 to $4,2001 in view of the fact that Social Security will now apply to the first $4,200 of covered annual earnings. (I do not think we are in a position to take any stronger action, as a practical matter; even assuming we have legal power to terminate the Retirement System, this matter would not be of sufficient magnitude to justify such extreme action if the Trustees decided against raising the integration point to the $4,200 level.) Although the details are not clear, it appears that failure to raise the integration point to $4,200 will result in double coverage, to some extent, of the $600 range between $3,600 and $4,200. Inevitably this will result in greater cost to the Reserve System and thus, in ultimate effect, to the Federal Government, which currently receives 90p of the earnings of the Reserve Banks. There may be some question as to the propriety of such double coverage in these circumstances (particularly if our Retirement System is compared with the Civil Service Retirement System) and some persons very likely would find ground for criticism in such double coverage at the expense of the Federal Government. 12/13/54 -12- Against these reasons for shifting the integration point to $4,200, there seem to be presented only the arguments that: (1) the further integration goes, the less is our adherence to the basic Retirement System principle of relatively higher allowances for employees of longer service and higher achievement (as measured by salary), and (2) a number of private corporations and banks have decided against raising their integration level. With respect to (1), it might be said that our 1950 election to bring Bank employees under Social Security was a very substantial "departure" from the above-stated principle of the Retirement System, and if it was felt then that employee morale would not be injured by that big step, it is difficult to see why morale would now be injured by a step one-sixth the size of the first. Are we straining at a $600 gnat after swallowing a *3,600 camel? With respect to (2), it might be argued that we should decide the matter on principle, and not on the basis of what is done by private corporations and banks, which are disposing of their own funds (subject to stockholder review) rather than Government funds. It might be argued that the proper comparison is between our Retirement System and the Civil Service Retirement System; the latter, of course, has no integration and no double coverage. In connection with item (1) on page 2, there is another fact which strikes me as important, although its precise significance is not clear. Apparently, as the integration level is raised, the over-all retirement benefits (Federal Reserve retirement plus Social Security) of higher-salaried, longer-service emPloyees actually will fall further and further below what they would have received under the Federal Reserve Retirement System in the absence of Social Security coverage. If this Is the case, it seems to be a strong argument against further integration on the present basis, but it is not clear why integration could not be worked out on a basis whereby no employee will receive under integrated coverage a smaller retirement allowance than he would have received in the absence of Social Security coverage. These are tentative thoughts on the problem, based on imcomDiets information and superficial study, and may fail to give Proper weight to opposing arguments or to take into consideration iniPortant factors, including the recommendations of the Kaplan Committee. In the circumstances, I suggest that the Board of Governors recommend that the status quo be maintained for the time being (i.e., that there be no further integration at this time), but request the Federal Reserve Banks to study the matter further 1-11 the light of these and of other pertinent considerations and r inform the Board of their conclusions, and the reasons therefor, ' 11 order to provide the basis for positive action. After a discussion, the Board reaffirmed the action taken at the meeting on December 10, 1c-3,1.4 12/13/54 -131954, approving the recommendation of the Presidents' Conference, which would leave unchanged at this time the basis for employer and employee contributions to the Retirement System of the Federal Reserve Banks. It also agreed that the Federal Reserve Banks be requested to study the matter with a view to developing, if possible, a policy which would enable the System to meet changes in the Social Security program on a broad policy basis, rather than on the ad hoc basis of the specific changes in the Social Security law as they are made. In taking this action, it was understood that Chairman Young of the Presidents' Conference would be advised of the Board's views by letter. At this point Messrs. Vest and Hexter withdrew from the meeting and Messrs. Farrell, Chief, Reserve Bank Budget and Expense Section, and Massey, Technical Assistant, Division of Bank Operations, entered the meeting. Reference was made to a memorandum dated December 10, 1954, from the special committee consisting of Governors Szymczak, Vardaman, and 1341derston recommending that the 1955 budgets of the Federal Reserve Banks be accepted with qualifications and exceptions set forth in the memorandum. Governor Szymczak commented upon the study of the Federal Reserve 4.11k budgets made by the committee and upon the reasons for the following conunittee recommendations: (a) That the Chicago budget be accepted, but that a paragraph be added to the acceptance letter calling attention to the overbudgeting in 1953 and 1954, and to the increase in the 1955 budget; and expressing the hope (a) that expenditures during the forthcoming year will be kept well within the budget, and (b) that every effort will be made to present more realistic figures in future budgets. (b) That the Minneapolis Bank be advised that the Board has accepted the budget total for operating purposes, but has withheld action on the budget detail' until revised functional data can be submitted reflecting the changes resulting from the election of new officers. If, as is confidently expected, a revised budget is submitted showing approximately the same total as that previously 1 L.1 12/13/54 -14submitted, the only further action necessary by the Board would be a letter accepting the revised budget. (c) That the general personnel program of the Atlanta Bank be discussed informally with the appropriate officials toward determining the degree to which the BanA relatively costly employee training program can properly be termed essential to the Bank's current needs. (d) That there be informal discussion with officials of the Kansas City Bank designed to attain a balance between the "fringe benefits" program necessary to obtain optimum personnel stability and the System objective of curtailing costs wherever possible. (e) That the budget acceptance letters to all Bunks include paragraphs--(1) expressing the Board's concern about the consistent growth of expenditures for the Bank and Public Relations function, (2) noting that some of the growth has been due to increased activities in such fields as flannel-board presentations, seminar-type meetings, economic forums, and similar educational undertakings; and that such efforts have been productive and--in proper proportion--can be fully justified, and (3) requesting that, if these activities are to be continued and expanded, a thorough review be made of other activities in the bank relations field--particularly expenses for routine visits to banks, for luncheons, dinners, and other forms of entertainment, and for membership dues and donations; and that spending for these activities be carefully screened by the directors and officers. It is also requested that the Board be advised of any curtailments or other changes in the bank relations program that may be made in the light of these comments. (r) That the budgetary provision of $6o,000 in the budget of the Federal Reserve Bank of New York for revival of the moving picture project be disapproved. It is suggested in this connection that it would be desirable for Chairman Martin to discuss this matter informally with President Sproul before the letter setting forth the Board's action is dispatched. 12/13/54 (g) -15That it would be desirable for the Board to discuss informally with President Sproul the part of the New York Bank's "Technical Assistance" program relating to bookkeeping and transit operations to see whether it should be continued. In the course of the ensuing discussion it was agreed unanimously that the exceptions taken to the budget submitted by the Federal Reserve Bank of Chicago should be discussed informally with President Young of that Bank by Governor Szymczak; that the exceptions to the budget of the Federal Reserve Bank of Atlanta should be discussed informally with President Bryan of that Bank by Governor Balderston; and that the exceptions taken to the budget of the Federal Reserve Bank of Kansas City should be discussed informally with President Leedy of that Bank by Governor Robertson. In connection with the budget of the Federal Reserve Bank of New York, it was understood that Chairman Martin would discuss with Mr. Sproul the reasons why the Board did not feel that it should approve the budget provision of $60,000 for the moving picture project which had been disapproved by the Board for that Bank in its letter of August 6, 1953, with the understanding that this matter would also be commented on in a letter to be sent to President Sproul following Chairman Martin's discussion with him. It was also agreed that, for reasons discussed at the meeting, no reference would be made either in the letter to Mr. Sproul or in Chairman Martin's discussion with him to the Special Committee's suggestion that inquiry be made to determine whether that part of the Bank's "Technical Assistance" program relating to bookkeeping and transit operations should be continued. Following the discussion, letters to the Federal Reserve Banks recommended by the Special Committee as follows were approved by unanimous vote, it being noted that Governor 1847 12/13/54 Vardaman joined in the recommendations submitted by the special committee which had been requested at the meeting on November 30, 1954, to review Federal Reserve Bank budgets for the year 1955. In taking this action it was understood that the letter to Mr. Sproul would not be mailed until Chairman Martin had discussed the matter with him: Letter to the Federal Reserve Bank of Boston reading as follows and similar letters to all of the other Federal Reserve Banks except that the letters to New York, Chicago, and Minneapolis contained additional Z.ZIaphs shown below. The Board of Governors has reviewed and accepts the 1955 budget of the Federal Reserve Bank of Boston, which was submitted with your letter of September 27 and revised by Mr. Boardman's letter of October 18, 1954. In reviewing the budgets of the Reserve Banks, the Board has noted with some concern the consistent growth of expenditures for the Bank and Public Relations function. Some of this has been due to increased efforts to add to the public understanding of credit and monetary policies through such activities as flannel-board presentations, seminar-type meetings with teachers of money and banking, economic forums, and similar educational functions. Such efforts have been productive and, in proper proportion, can be fully justified. If such efforts are to be continued and expanded as several banks have indicated, however, a thorough review Of other expenditures for the Bank and Public Relations function is warranted. This is particularly true of spending for routine visits to banks, for luncheons, dinners, and other forms of entertainment, and for membership dues and donations. The Board believes that spending for these activities should be screened most carefully by the directors and officers of each Bank and each branch. The Board would appreciate being informed of any curtailments or other changes in your Bank Relations program that may be made in the light of these comments. eial ara ra h contained in letter to Federal Reserve Bank of New York The Board of Governors has reviewed the 1955 budget Of the Federal Reserve Bank of New York, which was submitted with Mr. Treiber's letter of September 17, 1954. 18E18 12/13/54 As you were informally advised by Chairman Martin, the Board feels it would be undesirable for your Bank to go ahead with the moving picture project which was included in your budget. Aside from the $60,000 provided for that purpose, the Board accepts the 1955 budget as submitted. 42sia1 •ara ra h contained in letter to Federal Reserve Bank of Chicago While accepting the budget as submitted, the Board is concerned about the $550,000 increase in the amount Provided for employees' salaries at the Head Office, Which represents more than one-fourth of the aggregate increase of $11900,000 shown for the System as a whole in this item. It was noted in this connection that in recent years the Head Office budgets for employees' salaries have been considerably overstated; for example, in 1953 there was a budget surplus of $650,000 (7 per cent), and in 1954 it appears there will be a surplus of about $350,000 (4 per cent). In view of these circumstances, the Board urges that every effort be made to keep salary costs in 1955 well within the budget, and to see that in future years amounts provided for employees' salaries be more closely budgeted. Pscial paragraphs contained in letter to Federal Reserve Bank of Minneaolis The Board of Governors has reviewed the 1955 budget Of the Federal Reserve Bank of Minneapolis, which was submitted with your letter of September 13, 1954. It vas noted that the budget made no provision for contemPlated changes in officers' salaries, and that the underbudgeting of this item will be approximately offset by the overbudgeting of employees' salaries. While this situation will have no significant effect on the budget total, it will materially affect the functional details shown on Schedule X and Exhibits A-C. In view of these circumstances, the Board has accepted the budget total for operating purposes, but haS withheld action on the budget itself. As soon as MAI' directors have formalized the contemplated changes in officers' salaries, please submit appropriate revisions in the budget (Form F. R. 96a, Schedule X and Exhib.!-ts A-C) reflecting such changes. Please also include in he revised budget the changes mentioned in Mr. Larson's letter of November 9, 1954. 1849 12/13/54 -18- Before this meeting there had been sent to the members of the Board a memorandum from the special committee consisting of Governors Szymczak, Vardaman, and Balderston dated December 9, 1954, recommending that the budget of the Board for the year beginning January 1, 1955, be approved as submitted in the amount of $4,358,566. The memorandum called attention to the inclusion in the budget of a number of special Items previously discussed and approved by the Board including $10,000 to cover the cost of printing 5,000 buckram bound copies of a revised edition of the Federal Reserve Act, and stated that while the Legal Division felt that a revised edition of the Act would be desirable, it could be deferred until next year if the Board had any substantial doubt °II the subject. After a brief discussion it was agreed that the item should be deleted. The memorandum also noted that the budget provided $4o,000 for e°11version of five elevators to automatic operati on. In commenting on this item; Mr. Johnson stated that if the Board contemplated that contracts ror conversion of the freight elevator and all four passenger elevators 11°111d be let in the near future, it would be necessa ry to include the full $4°)000in the 1955 budget. However, if the Board contemplated placing c°11tracts only for the freight elevator and the Constitution Avenue pas8e4er elevator during the next several months, it would be possibl e to l'clAtce the 1955 budget to $20,000. .50 12/13/54 -19- In discussing the action taken by the Board at the meeting on December 8, 1954, it was brought out that the Board contemplated the Placing immediately of an order for conversion of the freight elevator and the Constitution Avenue elevator, and that it had agreed to defer the conversion of the bank of three passenger elevators near the Street entrance to the building until it had had an opportunity to observe the other automatic elevators in operation. After discussion, it was agreed that no action should be taken to change the understandings reached in the meetings on November 5, 1954, and December 8, 1954, namely, that a contract would be let for conversion of the freight elevator and the Constitution Avenue passenger elevator promptly and that a decision as to whether the bank of "C" Street passenger elevators would be converted would be deferred until there had been opportunity to observe the operation of the other elevators on an automatic basis. It was agreed, however) that the amount of $40,000 should be retained in the 1955 budget in the event the Board should decide to proceed with conversion of the additional elevators during the year 1955. Thereupon, the Board approved unanimously a budget for 1955 as shown below: ANNUAL BUDGET Calendar year 1955 PERSONAL SERVICES Salaries Employee retirement and insurance benefits *3,130,053 Total personal services *3,371,679 241,626 -20- 12/13/54 NON-PERSONAL SERVICES Traveling expenses: Federal Reserve Examiners, field force Other Postage and expressage Telephone and telegraph Printing and binding: Federal Reserve Bulletin Other Stationery and supplies Furniture and equipment Equipment rental Books and subscriptions Heat, light, and power Repairs and alterations (building and grounds) Repairs and maintenance (furniture and equipment) Medical service and supplies Insurance All other: Auditing books of Board Cafeteria (net) Consumer finances surveys Talle Subcommittee project Other survey and research projects Legal and consultant fees and expenses Official dinners, receptions, etc. Security clearance investigations Miscellaneous (including hearing transcripts) Total non-personal services Grand Total $ 212,960 45,680 56,413 56,1470 92,750 59,484 32,778 4,217 23,458 13,856 38,000 45,330 12,231 1,500 6,500 2,900 40,000 150,000 30,000 23,500 12,100 1,660 2,520 12,580 976,887 $4,348,566 Governors of the Federal Minutes of actions taken by the Board of Reserve System on December 10, 1954, were approved unanimously. 1852 12/13/54 -21- Thereupon the meeting recessed with the understanding that the Board would meet in executive session at 2:30 p.m. today for the Purpose of considering memoranda dated December 9, 1954 from the special committee consisting of Governors Szymczak, Vardaman, and Balderston s ubmitting recommendations with respect to salaries for the Presidents and First Vice Presidents of the Federal Reserve Banks and for other officers of the Federal Reserve Banks for the year 1955. Following the executive session, Chairman Martin informed the Secretary that during the afternoon session the Board approved all of the recommendations submitted by the special committee with respect to salaries of officers of the Federal Reserve Banks except the recommendation regarding the salary for Mr. H. N. Mangels, First Vice President of the Federal Reserve Bank of San Francisco. In that case the Board had received a letter from Mr. Brawner, Chairman of that Bank, under date of December 8, 1954, stating that the directors of the Bank had fixed Mr. Mangels' salary at $22,000 per annum for the year 1955. Accordingly, the Board approved salary at that rate for Mr. Mangels for the year 1955. On the action of the Board approving the salary at the rate of $35,000 per annum fixed by the directors for Mr. Earhart, President of the Federal Reserve Bank of San Francisco, Governor Robertson voted "no". Secretary's Note: Pursuant to the foregoing authorization, letters were sent to the Chairmen of the Federal Reserve Banks under date of December 15, 1954, except that to the Federal Reserve Bank of Chicago which was dated December 17, reading as follows: S 3 12/13/54 Lt2tter to Chairman Hodgkinson -22Federal Reserve Bank of Boston Reference is made to your letter of November 9, 1954, advising of the action taken by the Board of Directors with respect to the fixing of officers' salaries for the year 1955. The Board of Governors has reviewed the whole problem of salaries of the Presidents and First Vice Presidents of the Federal Reserve Banks and is not prepared to approve the rates as proposed for the President and First Vice President in your letter. It does, however, approve the payment of salaries to Mr. J. A. Erickson, as President of the Federal Reserve Bank of Boston, and Mr. Alfred C. Neal, as First Vice President, for the period January 1, 1955 through December 31, 1955, at their present rates of S30,000 per annum, and $221000 per annum, respectively, if fixed by the Board of Directors at such rates. The Board of Governors also approves the payment of salaries to the following officers of the Federal Reserve Bank of Boston for the period January 1, 1955 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in your letter of November 9: Name Annual Salary Title Robert B. Harvey Earle O. Latham Carl B. Pitman Oscar A. Schlaikjer Vice President and Cashier Vice President Vice President Vice President and General Counsel Roy F. Van Amringe Vice President D. Harry Angney Assistant Vice President Ansgar R. Berge Assistant Vice President Elliot S. Boardman Assistant Vice President George H. Ellis Director of Research Frank C. Gilbody Assistant Vice President Edward W. O'Neil Assistant Vice President Dana D. Sawyer Assistant Vice President David L. Strong General Auditor Parker B. Willis Financial Economist Louis A. Zehner Assistant Vice President William R. King Assistant Cashier j°hn E. Lowe Assistant Cashier James D. MacDonald Chief Examiner Loring C. Nye Assistant Cashier John J. Rock Assistant Cashier Laurence H. Stone Secretary and Assistant Counsel G. Gordon Watts Assistant Cashier Charles Turner Assistant Cashier $18,000 18,000 18,000 18,000 15,000 11,500 12,500 11,500 11,500 11,500 11,000 11,500 11,000 9,500 10,500 10,000 9,000 10,000 8,500 9,500 8,500 8,500 8,500 12/13/54 -23- It is noted from your letter that Messrs. Robert B. Harvey and Roy F. Van Amringe will reach retirement age during 1955, and, accordingly, payment of salaries to them is approved only to the dates of retirement. Letter to Chairman Crane Federal Reserve Bank of New York The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of New York and the Buffalo Branch for the period January 1, 1955 through December 31, 1955, at the rates indicated which are the rates fixed by the Board of Directors as reported in your letter of November 12, 1954: Annual Salary Title Name President First Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President and General Counsel Valentine Willis Vice President Reginald B. Wiltse Vice President Vice President John H. Wurts John J. Clarke Assistant General Counsel Assistant Vice President Howard D. Crosse Assistant Vice President Felix T. Davis Assistant Vice President Norman P. Davis Assistant Vice President Paul R. Fitchen Assistant Vice President Marcus A. Harris Assistant Vice President Robert V. Roosa Assistant Vice President Horace L. Sanford General Auditor Donald J. Cameron Arthur I. Bloomfield Senior Economist Manager, Research Department Charles A. Coombs Assistant Counsel Harding Cowan Senior Economist George Garvy Assistant Counsel Clifton R. Gordon Acting Manager, Personnel Dept. Gerald H. Greene Assistant Counsel Edward G. Guy Manager, Savings Bond Dept. and William A. Heinl Currency Destruction Dept. Manager, Foreign Department Peter P. Lang John J. Larkin Manager, Securities Department Allan Sproul William F. Treiber Harold A. Billy John EXter Herbert H. Kimball Arthur Phelan Harold V. Roelse Robert G. Rouse Todd G. Tiebout $60,000 30,000 22,500 22,500 24,N0 26,000 24,000 30,000 211,000 25,000 20,000 22,500 18,000 17,500 18,500 17,500 16)000 19,000 18,000 19,500 15,000 12,500 14,500 14,000 12,500 14,000 10,250 13,000 13,000 15,500 11)500 12/13/54 -24-Title Name Annual Salary A. Chester Walton Arthur H. Willis Manager, Check Department Manager, Credit Department and Discount Department Manager, Securities Dept. Manager, Cash Custody Dept. Manager, Building Operating Department Manager, Planning Department Manager, Service Department Assistant Counsel and Assistant Secretary Manager, Accounting Dept. Manager, Cash Department Manager, Bank Examinations Department Manager, Security Custody Department Manager, Government Bond Dept. and Safekeeping Dept. Manager, Personnel Department Manager, Collection Department and Government Check Department Manager, Public Information Department Manager, Bank Relations Dept. Secretary Insley B. Harold M. George J. M. Monroe Buffalo Branch Vice President Assistant Vice President Cashier Assistant Cashier Angus A. MacInnes, Jr. William E. Marple Spencer S. Marsh, Jr. Michael J. McLaughlin Herbert A. Muether Donald C. Niles Arthur H. Noa Gregory O'Keefe, Jr. William F. Palmer Franklin E. Peterson Lawrence E. Quackenbush Wlter S. Rushmore Kenneth E. Small Frederick L. Smedley George C. Smith Thomas O. Waage Letter t Smith Wessel Doll Myers Chairman Meinel -14,50o 13,250 14,000 11,000 13,750 12,750 12,000 11,000 12,500 12,500 13,000 12,000 11,750 12,500 11,500 13,500 11,000 13,000 21,500 14,500 12,000 9,200 Federal Reserve Bank of Philadelphia The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Philadelphia for the period January 1, 1955 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in your letter of October 21, 1954: Title Annual Salary Name Alfred H. Williams W. John Davis Karl R. Bopp President First Vice President Vice President $30,000 22,000 18,500 12/13/54 -25Name Robert N. Hilkert Ernest C. Hill William G. McCreedy Philip M. Poorman James V. Vergari Richard G. Wilgus Joseph R. Campbell Wallace M. C a tanach Norman G. Dash George J. Lavin Murdoch K. Goodwin Edward A. Aff Ralph E. Haas Roy Hetherington Henry J. Nelson Harry W. Roeder Evan B. Alderfer Clay J. Anderson Zell G. Fenner Fred A. Murray Hugh Barrie Herman B. Haffner l'Zt_ler to Chairman Virden Title Annual Salary Vice President Vice President Vice President and Secretary Vice President Vice President and General Counsel Cashier and Assistant Secretary Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant General Counsel and Assistant Secretary Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Industrial Economist Financial Economist Chief Examiner Director of Plant Machine Methods Officer General Auditor 18,000 17,000 17,000 17,000 16,000 14,000 10,500 12,000 12,000 12,000 11,000 9,000 9,000 10,000 9,500 9,000 12,000 12,000 10,500 10,000 10,000 10,000 Federal Reserve Bank of Cleveland The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Cleveland and its Branches for the period January 1, 1955 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in your letter of November 10, 1954: Annual Salary Title Name W. D. Fulton D. S. Thompson Dwight Allen R. R. Clouse A. H. Laning Martin Morrison R. E. J. Smith P. C. Stetzelberger President First Vice President Vice President Vice President and Secretary Vice President and Cashier Vice President Vice President Vice President $30,000 22,000 1),000 16,000 17,750 17,500 14,500 18,000 12/13/54 -26Name L. P. G. J. J. C. C. E. E. H. C. H. M. B. H. R. M. J. E. V. F. M. F. B. Hostetler Didham Emde Lowe Miller Bolthouse Crawford Denton Fricek Boyd Ehninger Flinkers R. G. Johnson P. J. Geers Clyde Harrell G. W. Hurst John Biermann Title Director of Research Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Chief Examiner General Auditor Assistant Secretary Cincinnati Branch Vice President Cashier Assistant Cashier Assistant Cashier Assistant Cashier Annual Salary $14,000 12,000 13,500 12,250 12,000 10,500 9,250 8,500 9,250 12,000 15,000 8,700 15,500 13,000 11,000 9,500 9,500 Pittsburgh Branch J. W. Kossin A. G. Foster W. H. Nolte J. R. Price J. A. Schmidt Roy J. Steinbrink Vice President Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier 20,000 14,500 10,300 10,500 11,000 11,000 It is noted from your letter that Mr. J. R. Lowe will reach retirement age during 1955 and, accordingly, payment of salary to him is approved only to the date of his retirement. Letter to Chairman Woodward Federal Reserve Bank of Richmond The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Richmond and its Branches for the period January 1, 1955 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in your letters of November 11, 1954: Annual Salary Title Name Hugh Leach Edward A. Wayne N. L. Armistead R. L. Cherry D. F. Hagner President First Vice President Vice President Vice President, Charlotte Branch Vice President, Baltimore Branch 30,000 22,000 17,500 16,000 16,000 1858 12/13/54 Name A. N. Heflin C. B. Strathy J. M. Slay C. W. Williams R. S. Brock, Jr. J. Dewey Daane S. A. Ligon U. S. Martin J. M. Nowlan A. A. Stewart, Jr. T. I. Storrs J. W. Dodd, Jr. R. G. Howard John L. Nosker G. H. Snead V. E. Pregeant, III B. F. Armstrong H. E. Ford R. L. Honeycutt E. Riggs Jones, Jr. E. C. Mondy W. B.' Wakeham Edw. Waller, Jr. A. C. Wienert E. B. Coleman -1.'er to Chairman Harris Title Annual Salary- Vice President and General Counsel Vice President and Secretary Vice President Vice President General Auditor Assistant Vice President Cashier, Charlotte Branch Vice President Cashier Cashier, Baltimore Branch Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Chief Examiner Assistant General Counsel Assistant Cashier, Baltimore Branch Assistant Cashier Assistant Cashier, Charlotte Branch Assistant Cashier, Baltimore Branch Assistant Cashier, Charlotte Branch Assistant Cashier Assistant Cashier Assistant Cashier, Baltimore Branch Assistant Cashier sl6,000 15,000 14,000 14,000 13,500 12,000 12,500 14,200 12,500 12,000 12,000 10,500 10,200 11,000 10,000 9,000 Woo 9,000 81800 7,800 8,700 9,100 9,300 9,300 8,600 Federal Reserve Bank of Atlanta The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Atlanta and its Branches for the period January 1, 1955 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in your letter of November 11, 1954: Title Annual Sala/7z Name Vice President and General Harold T. Patterson $18,000 Counsel John L. Liles, Jr. Vice President and Cashier 14,500 H. C. Frazer Vice President, Birmingham 13,000 Branch 1859 12/13/54 -28Name T. A. Lanford Title Annual Salary Vice President, Jacksonville $15,000 Branch R. E. Moody, Jr. Vice President, Nashville 13,500 Branch M. L. Shaw Vice President, New Orleans 15,000 Branch V. K. Bowman Vice President 15,500 Earle L. Rauber Vice President and Director 13,000 of Research J. E. Denmark 13,500 Vice President S. P. Schuessler 14,000 Vice President L. B. Raisty 13,000 Vice President J. E. McCorvey 10,750 Assistant Vice President Charles T. Taylor 10,000 Assistant Vice President E. C. Rainey 11,000 Assistant Vice President, Birmingham Branch T. C. Clark 11,000 Assistant Vice President, Jacksonville Branch 10,600 W. H. Sewell Assistant Vice President, Nashville Branch R. M. Stephenson Assistant Vice President, 10,750 New Crleans Branch 10,000 DeWitt Adams General Auditor 9,500 Dowdell Brown, Jr. Assistant Counsel 9,000 Brown R. Rawlings, Jr. Assistant General Auditor 9,000 Fred I. Breck Assistant Cashier 9,500 J. W. Snyder Cashier, Jacksonville Branch 9,000 L. Y. Chapman Cashier, New Orleans Branch L. W. Starr 9,500 Cashier, Nashville Branch 8,500 H. J. Urquhart Cashier, Birmingham Branch 9,500 F. H. Martin Assistant Vice President 9,000 I. H. Martin Assistant Vice President R. E. Milling 9,000 Assistant Vice President 7,500 Melvin McIlwain Assistant Cashier, Birmingham Branch 7,000 William A. Waller, Jr. Assistant Cashier, Birmingham Branch C. Mason Ford Assistant Cashier, Jacksonville 9)000 Branch Assistant Cashier, Nashville Stuart H. Magee 7,500 Branch R. M. Junca Assistant Cashier, New 7,500 Orleans Branch 12/13/54 -29- The Board of Governors also approves the payment of salaries to Mr. Malcolm Bryan, as President of the Federal Reserve Bank of Atlanta, and Mr. Lewis M. Clark, as First Vice President, for the period January 1, 1955 through December 31, 1955, at their present rates of $30,000 per annum, and $22,000 per annum, respectively, if approved by the Board of Directors at such rates. It is noted from your letter that Mr. H. J. Urquhart, Cashier, Birmingham Branch, will reach retirement age during 1955, and, accordingly, payment of salary to him is approved only to the date of his retirement. Letter to Chairman Coleman, Federal Reserve Bank of Chicago The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Chicago and the Detroit Branch, for the period January 1, 1955 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in Mr. Dawes' letters of September 14 and November 19, 1954: Name Title LIELILL22.1142 Head Office Young, C. S. Harris, E. C. Dawes, N. B. Diercks, W. R. Mitchell, G. W. Olson, A. L. Turner, W. W. Jones, L. H. Baughman, E. T. Carroll, P. C. Helmer, H. J. Laibly, C. T. Lies, M. A. Newman, H. J. Smyth, B. L. Wilson, H. F. Endres, J. J. Gustayson, A. M. Hodge, P. C. Barton, O. C. Van Zante, C. P. Bristow, E. D. President First Vice President Vice President and Secretary Vice President Vice President Vice President Vice President Cashier Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President General Auditor Assistant Vice President General Counsel Assistant General Counsel and Assistant Secretary Assistant Vice President Assistant Cashier 340,000 27,500 21,000 20,500 18,000 21,000 19,500 15,000 13,000 13,000 12,000 13,500 14,500 13,000 12,500 13,000 18,000 12,000 17,500 11,000 13,500 10,000 12/13/54 -30Name Davis, L. A. Dawson, L. W. Grimm, F. H. Heath, E. A. Title Schultz H. S. Shirey, E. F. Tucker, G. T. Ross, L. M. Scanlon, C. J. Lee, Kathryn B. Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier and Assistant Secretary Assistant Cashier Assistant Cashier Assistant Cashier Assistant Chief Examiner Chief Examiner Assistant Cashier Swaney, R. A. Bloomfield, R. W. Diehl, H. L. Srp, J. J., Jr. Wiegandt, A. J. Lamphere, G. W. Detroit Branch Vice President Assistant Vice President Cashier Assistant Cashier Assistant Cashier Assistant General Counsel Annual Salary $ 9,000 9,000 9,000 12,000 8,700 10,000 10,500 10,500 11,500 8,100 16,000 12,750 11,500 9,750 11,000 11,000 A review of the proposed salary increases at your Bank has given the Board some concern. It believes that sound salary administration requires that salary increases reflect performance primarily. Adherence to this principle is rarely compatible with simultaneous recommendations for over 90 per cent of the entire officer group. It believes, furthermore, that sound administration requires continuing attention to distribution of salaries over the ranges so that sufficent head room is preserved for future pay increases as they may be called for to recognize improved performance. In reviewing the budget in the light of these principles, the Board notes that salary increases have been proposed for Vice Presidents Hopkins, Meyer, and Sihler. Since they will reach retirement age during the coming calendar year 1955 and all have had increases in recent years, the Board is not prepared to approve further increases for these officers. However, the Board of Governors approves the payment of salaries to Messrs. Hopkins, Meyer, and Sihler, for the period January 1, 1955 to the date each retires, at their present rates of $15,500, $15,000, and $21,500 per annum, respectively, if fixed by the Board of Directors at such rates. to Chairman Alexander) Federal Reserve Bank of St. Louis The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of St. Louis and its Branches for the period January 1, 1955 • 12/13/54 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in Mr. Johns' letter of November 12, 1954: Annual Salary Title Name $30,000 President 22,000 First Vice President 18,000 Vice President 15,000 Vice President and Secretary 15,000 Vice President 15,000 Vice President Vice President, Memphis Branch 15,000 13,500 Vice President, Little Roc Branch 13,500 Vice President, Louisville Victor M. Longstreet Branch 13,500 William J. Abbott, Jr. Director of Research 12,000 Chief Examiner George E. Kroner 10,700 Assistant Vice President John J. Christ 10,500 Assistant Vice President Earl R. Billen 10,500 Assistant Vice President Willis L. Johns 10,500 Assistant Vice President Stephen Koptis 10,500 General Auditor George W. Hirshman 9,100 G. 0. Hollocher Assistant Vice President 8,500 Assistant Vice President W. W. Gilmore 9,000 Assistant Manager, Little Marvin L. Bennett Rock Branch 8,5oo Assistant Manager, Memphis C. E. Martin Branch 8,500 Assistant Vice President John J. Hofer 9,500 Examiner Assistant Chief Orville 0. Wyrick 8,500 Counsel and assistant Gerald T. Dunne Secretary 7,000 Assistant Manager, Little Clifford Wood Rock Branch 7,000 Assistant Manager, Little W. J. Bryan Rock Branch 7,000 Assistant Manager, Louisvilie L. K. Arthur Branch 7,200 Assistant Manager, Louisville L. S. Moore Branch 8,200 Assistant Manager, Louisville Donald L. Henry Branch 7,000 Assistant Manager, Memphis S. K. Belcher Branch 7,000 Assistant Manager, Memphis H. C. Anderson Branch Delos C. Johns Frederick L. Deming Wm. E. Peterson Howard H. Weigel Joseph C. Wotawa Dale M. Lewis Darryl R. Francis Fred Burton 1863 12/13/54 It is understood that Mr. S. K. Belcher will reach retirement age during 1955, and, accordingly, payment of salary to him is approved only to the date of his retirement. Letter to Chairman Perrin, Federal Reserve Bank of Minneapolis The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Minneapolis and the Helena Branch for the period January 1, 1955, through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in Mr. Powell's letter of September 15 and his supplemental letter of December 10, 1954: Name Oliver S. Powell A. W. Mills Sigurd Ueland Otis R. Preston H. G. McConnell M. H. Strothman, Jr. E. B. Larson C. W. Groth F. L. Parsons A. W. Johnson Kyle K. Fossum A. R. Larson C. Ries 0. W. Ohnstad C. A. Van Nice M. E. Lysen Roger K. Grobel M. O. Sather H. A. Berglund M. B. Holmgren Geo. M. Rockwell John J. Gillette F. J. Cramer C. E. Bergquist 0. F. Litterer Title Annual Salary President First Vice President Vice President and Counsel Vice President Vice President Vice President Vice President Vice President, Helena Branc h Director of Research Assistant Vice President General Auditor Assistant Vice President Assistant Vice President Assistant Vice President Assistant Vice President Operating Research Officer Chief Examiner Assistant Cashier Assistant Cashier, Helena Branch Assistant Cashier Assistant Cashier Assistant Cashier Personnel Officer Assistant Cashier Business Economist $28,000 20,000 14,500 16,500 17,500 13,000 13,500 12,500 12,000 10,500 10,000 9,500 9,000 9,500 10,000 10,500 10,000 8,000 8,500 8,5oo 8,5oo 8,500 7,500 7,000 9,000 It is noted that Mr. A. R. Larson, Assistant Vice President, Will reach retirement age during 1955 and, accordingly, payment of salary to him is approved only to the date of his retirement. 12/13/54 Letter to Chairman Hall -33_ Federal Reserve Bank of Kansas Ci-q Reference is made to your letters of November 12, 1954, advising of the actions taken by the Board of Directors with respect to the fixing of officers' salaries for the year 1955. The Board of Governors has reviewed the whole problem of salaries of the Presidents and First Vice Presidents of the Federal Reserve Banks and is not prepared to approve the rates as proposed for the President and First Vice President in your letter. It does, however, approve the payment of salaries to Mr. H. G. Leedy, as President of the Federal Reserve Bank of Kansas City, and Mr. Henry 0. Koppang, as First Vice President, for the period January 1, 1955 through December 31, 1955, at their present rates of $30,000 per annum, and $22,000 per annum, respectively, if fixed by the Board of Directors at such rates. The Board of Governors also approves the payment of salaries to the following officers of the Federal Reserve Bank of Kansas City and its Branches for the period January 1, 1955 through December 31, 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in your letter: Annual Sala Tit1a Name Head Office D. W. Woolley E. D. Vanderhoof Clarence W. Tow John T. Boysen E. U. Sherman F. H. Larson C. A. Cravens J. R. Euans J. S. Handford J. T. White C. L. Bollinger L. F. Mills Vice President Vice President Vice President Cashier Assistant Vice President Assistant Vice President Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier General Auditor Chief Rxaminer $20,000 13,000 16,000 12,000 10,600 10,400 9,600 9,200 9,600 9,200 10,800 10,800 Denver Branch G. A. Gregory H. L. Stempel Hubert G. Duck Howard W. Fritz Vice President Cashier Assistant Cashier Assistant Cashier 15,000 10,400 9,000 8,600 Oklahoma City Branch R. L. Mathes F. W. Alexander P. R. Fritz Fred C. Schmocker Vice President Cashier Assistant Cashier Assistant Cashier 15,000 10,400 9,000 8,900 _31._ 12/13/54 Name Title Annual Salary Omaha Branch P. A. Debus U. S. Berry William P. Doran Walter L. Pleiss $14,500 Vice President Cashier Assistant Cashier Assistant Cashier 9,800 8,900 7,500 It is understood that Mr. G. A. Gregory, Vice President, Denver Branch, will reach the retirement age during 1955 and, accordingly, payment of salary to him is approved only to the date of his retirement. Letter to Chairman Partepj Federal Reserve Bank of Dallas The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of Dallas and its Branches for the period January 1, 1955 through December 311 1955, at the rates indicated, which are the rates fixed by the Board of Directors as reported in Mr. Irons' letters of October 20 and November 13 1954: Name Title 4.••••••1.4•••••••••••10... LIAITLalaa James A. Parker Philip E. Coldwell Win, M. Pritchett $25,000 President 21,000 First Vice President 17,500 Vice President 16,500 Vice President 14,000 Vice President and Cashier 14,000 Vice President and General Counsel 13,000 Vice President and Secretary of the Board 11,700 Vice President 10,700 President Assistant Vice 9,800 Assistant Cashier 9,800 Assistant Cashier 9,300 Assistant Cashier 9,300 Assistant Cashier 14,000 General Auditor 9,600 Chief Examiner Assistant Counsel and Assistant 8,000 Secretary of the Board Director of Personnel 9)300 9,300 Director of Research Executive Assistant 9,000 C. M. Rowland Alvin E. Russell T. C. Arnold El Paso Branch Vice President Cashier Assistant Cashier Watrous H. Irons W. D. Gentry E. B. Austin L. G. Pondrom J. L. Cook Harry A. Shuford Morgan H. Rice Thomas W. Plant Howard Carrithers W. D. Waller Herman W. Kilman E. H. Berg Thomas A. Hardin G. R. Murff N. B. Harwell George F. Rudy 11,700 9,300 7,500 1866 12/13/54 -35Name Title Annual Salary Houston Branch W. H. B. T. H. K. J. R. Holloway Davis Troy Sullivan W. E. Eagle A. E. Mundt F. C. Magee Carl H. Moore Vice President Cashier Assistant Cashier Assistant Cashier San Antonio Branch Vice President Cashier Assistant Cashier Assistant Cashier '13,500 10,000 8,600 7,800 13,500 9,600 8,3oo 9,300 It is understood that Mr. C. M. Rowland will reach retirement age during 1955 and, accordingly, payment of salary to him is approved only to the date of his retirement. Letter to Chairman Brawner, Federal Reserve Bank of San Francisco The Board of Governors approves the payment of salaries to the following officers of the Federal Reserve Bank of San Francisco and its branches for the period January 1, 1955, through December 31, 1955, at rates indicated, which are the rates fixed by the Board of Directors as reported in your letters of December 8 and December 9, and Mr. Earhart's letter of September 23, 1954: Name Title Annual Salary Head Office C. E. Earhart H. N. Mangels E. R. Millard H. F. Slade E. J. Swan 0. P. Wheeler R. H. Morrill J. L. Barbonchielli T. W. Barrett D. M. Davenport H. E. Hemmings R. C. Milliken A. H. Price H. Armstrong E. H. Galvin J. A. 01 Kane President First Vice President Vice President Vice President Vice President and Cashier Vice President Assistant Vice President Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier General Auditor Chief Examiner General Counsel $35,000 22,000 18,000 18,000 14,000 16,000 11,500 10,000 9,500 8,500 10,000 9,500 8,500 12,000 11,000 15,000 185 . 12/13/54 -36Name Title Annual Salary Los Angeles Branch W. C. M. G. J. W. F. H. J. D. R. J. Volberg Watkins Davies Parker Robinson Thomas Vice President Assistant Manager Assistant Manager Assistant Manager Assistant Manager Assistant Manager $201 000 13,500 8,000 9,000 moo 815oo Portland Branch J. D. C. A. A. E. H. B. Randall Bent Mercer Merritt Vice President Assistant Manager Assistant Manager Assistant Manager 15,000 10,000 8,5oo 9,500 Salt Lake City Branch W. E. A. T. L. R. L. M. Partner Barglebaugh Price Simmons Vice President Assistant Manager Assistant Manager Assistant Manager 15,000 11,000 8,500 8,000 Seattle Branch J. R. W. D. M. E. R. E. leisner Everson Sandstrom Simms Vice President Assistant Manager Assistant Manager Assistant Manager The meeting then adjourned. 17,000 12,000 9,000 9,000
@FedFRASER