The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
3930
Ameting of the Federal R3serve Board was held in Washingt°11
on Tuesday, December 18, 1.34, at 4:00 p.
PAESEI\IT:
Er.
Mr.
Mr.
Mr.
Er.
Eccles, Governor
Thomas, Vice Governor
Aanlin
James
Szymczak
Mr. Lorrill, Secretary
Er. Bsthea, Assistant Secretary
Ir. Carpenter, Assistant Secretary
The Board acted upon the following matters:
Bond in the amount of $50,000, executed on December 10,
1934
bY Lir. Edward H. Osgood as Assistant Federal Reserve Agent
Iltthe
Federal Reserve Bank or Boston.
Approved.
Lemorandum dated December 11, 1934, from Mr. Wyatt, General
Colat
"1
'recommending the appointment of Pass Clara B. Armstrong
3ten0E;rapher in the legal division, with salary at the rate
t10560 per
annum, effective as of the date upon which she enters
14Pori the
performance of her duties after having passed a satist°rY Physical
examination.
Approved.
1.10morandum dated December 12, 1934, from Er. 71yatt, General
el
'reeommendinP- the appointment of lass Edna M. Blumer as a
rapher
in the legal division, with salary at the rate of
01,620
Per
Eulnum, effective as of the date upon which she enters
11/k% th n
e,
erformance of her duties after having passed a
satisfactory
fatexIct
3931
4/18/34
-2-
ksical examination.
Approved.
Memorandum dated December 10, 1934, from 2r. Parry, Chief
()t the Division of Securities
Loans, suggesting, for the reasons
°etforth in the
memorandum, that the name of the division be changed
to
uivislon
of Security Loans".
In accordance with Lr. Parry's suggestion, the name of the division was
changed to Division of Security Loans.
Letter to 1,:r. Curtiss, (:
. hairman of the Federal Reserve Bank
Of
-°3ton, reading as follows:
•
"Referring to your
letter of November 30, the Federal
Re
serve Board approves
the action taken by your directors at
their meeting on November
28 in voting that a contribution be
Ile ade to the
Federal Reserve Society to be expended by the
:!ciety for
welfare and educational work among the employees
Of
a
the bank in 1935, the
amount of such contribution to be
nl
j
roximately the same as the
aggregate amount of the dues
; ld by the members of the
Society for 1934, but not exceed.In reply to your inquiry, in
view of the general authorizati
let on given to the Federal
Reserve banks in the Boards
er of larch 16, 1925 (X-4290) to
make contributions of
c
haracter, it is not necessary to refer the action of
Y.°1-1r
eral board of directors on this subject each year to the Fed.4 Reserve
Board for approval."
A.:Troved.
zo
Letter dated December
17, 1934, approved by five members of
4'cl
'to 14.. Coleman, Deputy
Governor of the Federal Reserve
Of tallas, reading
as follows:
Pederal
Uedin your
eC.('Yment of Mr.
11-'481ot,
aouston
Reserve Board approves the recommendation
letter of December 5 that the temporary
L. 0. 1Loore, Jr. as Senior Clerk, Collection
Branch, at an annual salary of .0.920, which
3932
12/18/34
-3-
11. ,
ls 120 in excess of the salary range provided for the position, be continued for an additional period of six months
from December 20, 1934."
Approved.
Letter dated December 17, 1934, approved by five members of
the Beard, to I:1r. O'Connor, Comptroller of the Currency, reading as
f°11017s:
"In accordance with your recommendation the Federal Reserve Board
approves a reduction in the common capital stock
2f 'The First 1:ationa1 Bank of ahrockmorton', Ihrockmorton,
4exas, from c;;75,000 to c37,500, pursuant to a plan which prothat the bRnk's capital shall be increased by the sale
2t U5,000 of preferred stock to the Reconstruction Finance
'
dorporation and that the released ca Liital shall be used to
eliminate or reduce undesirable assets, all as set forth in
your letter
of December 5, 1934.
"In considering the plan under which the reduction in
(411111,0n capital is to be effected, it was noted that the
lagement of this institution is subject to severe criticism.
is understood, however, that this matter is receivingthe
attention of your office."
r
Approved.
Telegram
to Ir. Case, Federal Reserve Agent at the Federal
liatlerve
Bank of 'New York, stating that the Board has given consid-
4C.1011 to
the application of the
11j
.
Henry Schroder Banking Corpor-
Et14°4", licw
York, Lew York, for a voting permit under the authority
"
an 5144 of
the Revised Statutes of the United States, as
ktishded, e
ntitling such organization to vote the stock which it
controls in
the "J. Henry Schroder Trust Company", hew York,
york
and has authorized the issuance of a limited permit to the
subject to the following conditions:
"
(1) .:7'rior to the issuance of the limited voting permit
3933
12/18/34
"authorized herein,
"(1) the Federal Reserve Agent shall satisfy himself
that each of the subsidiary banks of the applicant has
charged off or otherwise eliminated, (a) all losses in
loans and discounts, (b) all depreciation in stocks and
defaulted securities, (c) all depreciation in securities
not of the four highest grades as classified by a recognized investment service organization regularly engaged
in the business of rating or grading securities and (d)
all other losses; as shown by the latest available reports
of examinations by the appropriate supervisory authorities,
except that the charge-offs and eliminations required by
(b) and (c) above may be based upon current appraisals of
marketable securities satisfactory to the Federal Reserve
Agent;
"(2) the Federal Reserve Agent shall satisfy himself
that the applicant has substantially performed any agreement or agreements heretofore executed by it as a condition to the issuance of a limited voting permit by the
Federal Reserve Board;
"(3) the Federal Reserve Agent and the Executive Committee of the Federal reserve bank shall approve the issuance of such permit.
"(2) Prior to the issuance of the limited voting permit
authorized
herein, you shall satisfy yourself that the appli?ant has charged off or otherwise eliminated (a) all losses
loanS and discounts, (b) all depreciation in stocks and
"efaulted securities, (c) all depreciation in securities not
!_f the four highest grades as classified by a recognized intment service organization regularly engaged in the business
si rating or grading securities, and (d) all other losses; as
.s i°1711 by the latest available report of examination by the
c.Ploropriate
supervisory authorities."
T
alaci
The
tor
for the
following purposes:
"To elect directors of such bank at the annual meeting
°,f,shareholders, ar at any adjournments thereof, at any time
4"r4or to April 1, LT6o, and to act thereat upon such matters
Of a
routine nature as are ordinarily acted upon at the annual
Meetings of such bank."
cele
gram also authorized the agent to have prepared by counsel
the
Federal reserve bank, and to issue to the J. henry Schroder
1311.41ci,_
Corporation, a limited voting permit in accordance with
tel
egrm when the conditions prescribed therein have been
3934
12/18/34
-5-
complied
Approved.
Letter dated December 17, 1934, approved by five members
c't the Board, to Mr. Austin, Federal Reserve Agent at the Federal
Reserve Bank
of Philadelphia, reading as follows:
"The Federal Reserve Board has authorized the issuance
tO the
'Farmers Bank of Egypt', Egypt, Pennsylvania of a general voting permit under the provisions of section 5144 of
the Revised Statutes of the United States entitling such
bank to vote, for all purposes, the stock which it owns or
Controls of the 'Schnecksville State Bank', Schnecksville,
ennsylvania, subject to the conditions prescribed in the
.,,nclosed letter, which you are requested to forward to the
l'armers Bank of Egypt, with any additional comments you may
deft
advisable in view of the circumstances involved. A
copy of such letter is also inclosed for your files.
"It is requested that as soon as you receive from the
Farmers Bank of Egypt three copies of the inclosed agreement
marked Exhibit 1, executed in a manner satisfactory to counsel for the Federal Reserve Bank of Philadel?hia, together
Qth
informtion satisfactory to you that the other conditions
contained in the inclosed letter have been complied with,
You
advise the Board by telegram of the fact. Upon receipt
such advice from you, a voting permit will be issued and
lled directly to the applicant, and a copy of such permit
t111 be
for-warded to you. Two executed copies of the abovementioned agreement marked Exhibit I should be forwarded to
the Board
for its records, and the third executed copy of
ch
agreement
should be retained for the records of your
office.
It
mn
vievrof the fact that the above-mentioned applicant
2'Y not be able, prior to the next annual meeting of its
11b?ldiary member bank, to comply with the conditions prescribed by the Board in connection with the issuance of a
aleral voting permit, you are authorized to issue, upon the
sZnest of the applicant, a limited voting permit entitling
owns or controls of
he saPplicant to vote the stock which it
ubsidiary member bank mentioned in the first paragraph
4 tais
letter, for the following purposes only:
To
elect directors of such bank at the annual meeting of
Shareholders, or at any adjournments thereof, at any time
Prior to April 1, 1935, and to act thereat upon such
Matters of a routine nature as are ordinarily acted upon
r
3935
12/18/34
-6-
fl at
the annual meetings of such bank.
"Your authority to issue such limited voting permit is
conditioned upon compliance, prior to the issuance of such
Permit, with the conditions set forth after the code word
AIXILBAT, on pages 6 and 7 of the Board's letter to all Federal Reserve Agents dated Uovember 10, 1934 (X-9018), and
With the following condition:
You shall satisfy yourself that Farmers Bank of Egypt
has charged off or otherwise eliminated, (a) all losses in
loans and discounts, (b) all depreciation in stocks and defaulted securities, (c) all depreciation in securities not
of the four highest grades as classified by a recognized
investment service organization regularly engaged in the
business of rating or grading securities and (d) all other
losses, as shomn by the latest available report of examination of such bank by the appropriate supervisory authorities.
"If you deem it advisable, you may withhold advice of
Your authority to issue such limited voting permit
until you
are satisfied that the applicant will not be in
a position to
!°mPly with the Board's requirements in connection with a gen'
'
1 111 voting permit prior to the annual meetinr:s of its subsidiarY member bank."
Approved, together with a letter, also dated
December 17, 1934, and approved by five members of
the Board, to the "Farmers Bank of Egypt", Egypt,
Pennsylvania, reading as follows:
of
"The Federal Reserve Board has considered the application
Your bank for a general voting permit under the provisions
el_1 ?eetion 5144 of the Revised Statutes of the United
States
vit
it to vote, for all purposes, the stock which it
,
°7I 8 or controls of the 'Schneck
sville State Bank', Schnecks,. 41e, Pennsylv
ania, and hereby authorizes the issuance of
a permit to your bank, upon the following conditions:
1. Prior to the issuance of the general voting permit
authorized herein, Farmers Bank of Egypt shall execute and deliver to the Federal Reserve Agent, the
official representative of the Federal Reserve Board,
at the Federal Reserve Bank of Philadelphia (hereinafter referred to as the Federal Reserve Agent) three
copies of the inclosed agreement marked Exhibit is
Prior to the issuance of the general voting permit
authorized heroin, Farmers Bank of Egypt shall charge
off or otherwise eliminate from its assets, and shall
cause Schnecksville State Bank to charge off or othervise eliminate from its assets, (1) all estimated
3936
12/18/34
-7-
"losses in loans and discounts, (2) all depreciation
in stocks and defaulted securities, (3) all depreciation in securities not of the four highest grades, as
classified by a recognized investment service organization regularly engaged in the business of rating or
grading securities, (4) all other losses, all such
charge-offs or eliminations to be based upon the
latest available reports of examination of such banks
by the appropriate supervisory authorities.
"The period within which a voting permit may be obtained
*CY compliance with the above conditions is limited to four
months from the date of this letter, unless application for
an.
extension of time is made to and granted by the Federal
Reserve Board.
"In connection with the requirements prescribed by the
Board, it is understood, of course, that in any case where such
requirements have already been complied with, no further action
!!ill be necessary in such respects except to advise the Federal
/eserve Agent of the compliance.
"It will be observed that the agreements in Exhibit 1
c
oentain broad provisions. These provisions are so phrased in
er to cover future as well as present subsidiaries and afrlliates
of your bank.
%hen the inclosed agreement marked Exhibit 1 has been
e
executed by Farmers Bank of Egypt, please forward three executed
2Pies thereof to the Federal Reserve Agent and advise him of
e action taken to comply with the other conditions stated
When the Federal Reserve Agent is satisfied that all
conditions stated herein have been complied with, he
:L11 advise the Board of the action taken in this matter, and,
n all of such conditions have been complied with, the Board
1 issue a voting permit to your bank."
r
Z
The agreement referred to in the above letter read as follows:
"AGREELENT
consideration of the granting by the Federal Reserve
under authority of section 5144 of the Revised Statutes
the United States, and pursuant to an application heretofiled with the Federal Reserve Board by the undersigned,
p4ra voting permit entitling the undersigned to vote, for all
a„Poses, each share of stock which it owns or controls of its
sidiary member bank, the undersigned hereby represents,
rtakes,
and agrees as follows:
1- That the undersi7,ned will not make, and will take all
necessary action within its power to prevent any of
its subsidiaries Arid any other organizations with
IT
Zl
3937
12/18/34
-8.,
"which the undersigned or any of its subsidiaries is
affiliated from making, any loans or extensions of
credit to, or purchases of securities under repurchase
agreements from, the undersigned or any of its subsidiaries or any other organizations with which the
undersigned or a:iy of its subsidiaries is affiliated,
or any investments in, or advances against, securities
of the undersigned or any of its subsidiaries or any
other organizations with which the undersigned or any
of its subsidiaries is affiliated, except within the
same limitations and subject to the same conditions
and provisions as are applicable under section 23A of
the Fech;ral Reserve Act to such transactions involving
member banks and their affiliates; except that this
Paragraph shall not apply to loans or extensions of
credit by any organization to its own subsidiaries,
or the purchase of securities under repurchase agreements by any organization from its own subsidiaries,
or the investment by any organization in the securities
of its own subsidiaries, where such transactions mould
not otherwise be subject to the limitations, conditions
and provisions of section 23A of the Federal eserve
Act;
2. That the undersigned will maintain, and will
cause
each of its subsidiary banks to maintain, an amount of
Paid-up and unimpaired capital and unimpaired surplus
which, in the judgment of the Federal Reserve Board,
will be adequate in relation to its total deposit liabilities, having due regard to the general principle
that a bank's caidtal and surplus ordinarily should not
be less than one-tenth of the average amount of its
aggregate deposit liabilities and, in Some circumstances,
Should be more than one-tenth of such amount.
"This agreement is executed in triplicate."
Telegram to IS. Newton, Federal Reserve Agent at the Federal
ileaerve
-)ank of Atlanta, stating that the Board has given
considera-
1:411 to the
aPplication of the "Citizens and Southern Holding Com-
1114V, S
avannah, Georgia, for a voting permit under the authority
or 4ecti°4 5144 of the
Revised Statutes of the United States, as
44344a, e
ntitling such orga. ization to vote the stock which it owns
(4' eerltroic
in the "Albany ,!]xchange National Lank", Albany,
Georgia,
3938
12/18/3.
and has
authorized the issuance of a. limited permit to the applicant,
subject to the followint; condition:
"Simultaneously with the issuance of the permit authorized
hereunder there shz,11 be issued to The Citizens and Southern
hank, the limited voting permit authorized in the
.°ard's telegram of this date to the Federal Reserve A7ent at
wle Federal Reserve bank of Atlanta."
4nd for the follo-wilv;
purposes:
.&t any time prior to April 1, 1965, to act upon a proP?cal or proposals to create and issue common and/or Preferred
LoCk and to reduce common stock and to make such amendments
L.0 the articles of association and/or by-la= of such bank as
Ijilay he necessary for such Purposes, such proposal or proposals
Lo be in accordance with a plan or plans which shall have been
;PPrcved
a.
by the appropriate supervisory authorities and satist,actory to the Federal Reserve .ent at the Feder-1 Reserve
zank of Atlanta."
The teler
the
also authorized the °Tent to have prepared by counsel
Pedoral reserve bank, and to issue to the Citizens and
8(314hern Holding Company, a limited votinp: permit in accordance
the
toleram.
Approved..
In connection with the above, there was presented a second
teleCrctra to
lir. Newton, Federal Reserve kent at the Federal Reserve
11141k °f Atlanta,
stt:tin
the hoard has .;iven consideration to
the
‘1)13lication of "The Citizens and Southern National Bank",
0
ueor7ia, for a votint7 permit under the authority of sec0.L the Revised Statutes of the United States, as
amended,
C}- organization to vote the stock which it owns
or
Nitr in in
the "Albany Exchanne :a'uional Bank", ,:Ilbany, ;oorsia,
4-'
authorized
the issuance of a limited permit to the applicant
3939
12/18/34
-10-
eubject to the following condition:
"Simultaneously with the issuance of the permit authorized hereunder there shall be issued to Citizens and Southern
Holding Company, the limited voting permit authorized in the
Board's telegram of this date to the Federal Reserve Agent at
the Federal Reserve Bank or Atlanta."
41ad for the
following purposes:
"At any time prior to April 1, 1935, to act upon a proPosal or proposals to create and issue common and/Or preferred
et00k and to reduce common stock and to make such amendments
tO the
articles of association and/Or by-laws of such bank as
may be
necessary for such purposes, such proposal or proposals
0 be in accordance with a plan or plans which shall have been
,,,PProlred by the appropriate supervisory authorities and satisIactory to the Federal Reserve Agent at the Federal Reserve
of Atlanta."
The t
e-egram also authorized the agent to have prepared by counsel
tor 4.,
wle Federal reserve bank, and to
issue to The Citizens and
Nther,,
National Bank, a limited voting permit in accordance with
the telegram.
Approved, together with a letter to La-.
O'Connor, Comptroller of the Currency, reading
as follows:
"In accordance with your recommendation, the Federal ReBoard approves a reduction in the common capital stock
'i the 'Albany Exchange National BArl
,
', Albany, Georgia, from
thu0,000 to $100,000, pursuant to a
plan which provides that
cite btink's capital shall be increased by the sale of $50,000
a_ Pdreferred stock to the Reconstruction Finance
Corporation
etil(or others,
and that the released capital shall be used to
ri'llainate all estimated losses and doubtful assets as classit_ed in the report of examination as of November 1, 1934,
and
,.1) establish
a reserve for contingencies, all as set forth in
"ur letter of
December 6, 1934."
i
Telegram to Er. Newton, Federal Reserve Agent at the
Fedserve
sank of Atlanta, stating that the Board has given
oNitio
Illtion to the application of "The
First National Bank of
3940
12/18/3
-11-
-1") nic.mi, Florida, for a voting permit under the authority of
section 51'1Ll of the Revised Statutes of the 'united States, as amended,
elatitlih-; such organization to vote the stock which it ovals or con-croic in
"The Coral Gables First 1:ational Bank", Coral Gablos,
Ilo
and has authorized the issuance of a limited permit to the
aPPlicant
subiect to the followinr:7 conditions:
"(1) rrior to the issuance of the limited votin- permit
auLerized herein, you and the Executive Committee of the
l'ederal Heserve Dank of Ltlanta shawl a72prove the issuance of
such perrdt.
"(2) Simultaneously with the issuance of the limited
votin7 permit authorized, herein, there shall be issued to '1.1-le
ii'-t
huildin - Corporation', the limited voting perUt authorized in the Al.GIGAR telerTam bearing the same date
'Is this teleFram."
'411 for fl
-10 rollo-ning purposes:
"lo eluct directors of such bank at the annul meeting
°f.shareholders, or at any adjournments thereof, at any time
)
,11or to April 1, 1935, and to act thereat upon such matters
'I a routine nature as are ordinrily acted ueon at the annual
meet.
In-'s of such bank."
1
he t8
also authorized the agent to have prepared by counsel
for
tile F
ederal reserve bailk, arid
131'k °f
issue to Ihe First I:ational
a limited votin.,; permit in accordance with the tele-
",1441,4
2-ipproved.
In connection with the above, there was presented a second
te
-olievton, Federal leserve Air,ent at the Federal Reserve
ta
.D
.
k
the
C)f —A+1
anta,
'
stating that the Doard has given consideration to
4PPlication of "The First National Building Corporation",
Pl°rida, for a voting permit under the authority of section
3941
12/18/34
-12-
5144 of the
Revised Statutes of the United States, as amended, en'dtad
ng such organization
to vote the stock which it owns or con:,
tr°18 in "The Coral Gables First National Bank", Coral Gables,
Fl°rida, and has authorized the issuance of a limited permit to
aPPlicant, subject to the following conditions:
"(1) Prior to the issuance of the limited voting permit
authorized herein, you and the Executive Committee of the Federa]. Reserve Bank of
Atlanta shall approve the issuance of
such permit.
Simultaneously
aneously with
the issuance of the limited
-ptin"
g Te
authorized herein, there shall be issued to
The First National
Bank of laamit, the limited voting permit
authorized in the AhCIGAR
telegram bearing the same date as
this telegram."
for the following purposes:
"To elect directors of such bank at the annual meeting
°f.shareholders, or at any adjournments thereof, at any
time
Prior to April 1, 1935, and to act thereat upon such matters
°f a routine nature as are ordinarily acted upon at the annual
reetings of such
bank."
The
teleErNra also authorized the agent to have prepared by counsel
tor
the Federal reserve bank, and to issue to The First National
Corporation, a limited voting permit in accordance with
the telePram.
Approved.
leleCram to Li-. Peyton, Federal Reserve Agent at the Federal
44erve Bank
of hinneapolis, stating that the Board has given conqozieration
to the application of "C. E. Conrad Estate, Inc.,"
Liontana, for a voting permit under the authority of sectik 6144 of
the Revised Statutes of the United States, as amended,
such orranization to vote the stock which it owns or
3942
12/18/34
—13—
ecnta-ols in
"The Conrad National Bank of Kalispell", Kalispell,
11°11teala, and has authorized the issuance of a limited permit to the
aPPlicant, subject to the following conditions:
"Prior to the issuance of the limited voting permit authorized herein,
"(1) the Federal Reserve ATent shall satisfy himself
that each of the subsidiary banks of the applicant has
charged off or otherwise eliminated, (a) all losses in
Jeans and discounts, (b) all depreciation in stocks and
defaulted securities, (c) all depreciation in securities
not of the four highest grades as classified by a recognized investment service organization regularly engaged
in the business of rating or grading securities and (d)
all other losses; as shown by the latest available reports
of examinations by the appropriate supervisory authorities,
except that the charge-offs and eliminations required by
(b) and (c) above may be based upon current appraisals of
marketable securities satisfactory to the Federal Reserve
Agent;
"(2) the Federal Reserve Agent shall satisfy himself
that the applicant has substantially performed any agreement or a7reements heretofore executed by it as a condition to the issuance of a limited voting permit by the
Federal Reserve Board;
.
"(3) the Federal Reserve Agent and the Executive Committee of the Federal reserve bank shall approve the issua.nce of such permit."
for the
following purposes:
,,,
Of
"To elect directors of such bank at the annual meeting
shareholders, or at any adjournments thereof, at any time
01,10r
1)
to April 1, L)35, and to act thereat upon such matters
, 4 routine nature as are ordinarily acted
upon at the an'1411 meetings of such
bank."
The
tei
egram also authorized the agent to have
prepared by counsel
tor
t,he
Pederal reserve bank, and to issue to C. E. Conrad Estate,
,a
limited voting permit in accordance with the telegram when
.
ion8
prescribed therein have been complied with.
Approved.
Telesm to Li-. Peyton, Federal Reserve Agent at the Federal
3943
12/18/34
-14-
Reserve bank of lanneapolis, stating that the Board has given consideration
to the application of the "Northwest Bancorporation",
lannesota, for a voting permit under the authority of
eection 5144 of the Revised StLtutes of the -united States, as
6114°3144d, entitling such organization to vote the stock which it
'31111s or controls in
"The Security National Bank and Trust Company
8ioux Falls", Sioux Falls, South Dakota, and has authorized the
18suance of a limited permit to the
applicant for the folio-yang
PUrposes:
. ".At any meeting of shareholders of such bank at any time
Prlor to December 31, 1934, to elect the number of directors
of Such
bank which the shareholders of the bank may be
authorized to elect and to amend the articles of association
of such bank and to adopt such resolutions as may be necessary in order that its board of directors may be legally
"nstituted and the membership thereof be composed of persons
Iralidly elected and properly qualified."
t
e-egram also authorized the agent to have prepared by counsel
"
t
lie Federal reserve bank, and to issue to the Northwest Bancor13°rEti°n, a limited voting permit in accordance mith the telegram.
Approved.
Telegram dated December 17, 1934, approved by four members
the Board, to Ls. Walsh, Federal Reserve ilgent at the Federal
Iteeerve tank
of Dallas, stating that the Board has given considerIlti°11 to t'11e
application of the "Republic 1:ational Company", Dallas,
1.4318'fer a voting permit under the authority of section 5144 of
the
Revised Statutes of the United States, as amended,
entitling
ora
nization to vote the stock which it owns or controls in
3944
12/18/34
tile
-15-
Pirst National Bank in Honey Grove", Honey Grove, Texas, and
ue First
hational Bank of 14-ace", Waco, Texas, and has authorized
the
issuance of a limited permit to the applicant, subject to the
ling conditions:
ttcL)
Prior to the issuance of the limited voting permit authorized herein,
"(1) the Federal Reserve Lgent shall satisfy himself
that each of the subsidiary banks of the applicant has
charged off or otherwise eliminated, (a) all losses in
loans and discounts, (b) all depreciation in stocks and
defaulted securities, (c) all depreciation in securities
not of the four highest grades as classified by a recognized investment service organization regularly engaged in
the business of rating or grading securities and (d) all
Other losses; as shown by the latest available reports of
examinations by the appropriate supervisory authorities,
except that the charge-offs and eliminations required by
00) and (c) above may be based upon current appraisals of
marketable securities satisfactory to the Federal Reserve
Agent;
"(2) the Federal Reserve Agent shall satisfy himself
that the applicant has substantially performed any agreement or agreements heretofore executed by it as a condition to the issuance Of a limited voting permit by the
Federal Reserve Board)
"(3) the Federal Reserve Agent and the Executive Comzittee of the Federal reser%e bank shall approve the issu61-rTte of such permit.
(2) i'rior to the issuance of the limited voting permit
•1.1-1,11orized herein, applicant shall deliver to you Exhibit L,
.
r„
"Form 1--3, executed by Republic Safe Deposit Company,
Exhibit N, F.R.B. Form P-4, executed by the applicant
l.consen
tsl
ted to by Republic Safe Deposit Company, which exi'pl
shall be in form satisfactory to Counsel for the Feddeserve Bank of Dallas.
vot, (3) Simultaneously with the issuance of the limited
lng Permit authorized herein there shall be issued to
voutPublic National Bank and Trust Company of Dallas the limited
snmillg Permit authorized in the AliCIGAR telegram bearing the
-"Le date as -Luis telegram."
the fo
lloiwng purposes:
"10 elect directors of such banks at the annual meeting
3945
12/18/34
-16-
"of shareholders, or at any adjournments thereof, at any time
Prior to Aril 1, 1935, and to act thereat upon such matters
Of a routine nature as are ordinarily acted upon the the annual
Illeetinc-s of such banks."
Ihetelegram also authorized the agent to have prepared by counsel
krthe Federal reserve bank, and to
issue to the Republic National
C°34allY, a limited voting permit in accordance with the telegram
1111°4 the conditions prescribed therein have been complied with.
Approved.
In connection with the above, there was presented a second
teleram dated December 17, 1S34, approved by four members of the
13°ard
'te,14r. Vialsh, Federal Reserve Agent at the Federal Reserve
Bazic
of
Dallas, stating that the Board has given consideration to
the
aPPlication of the "Republic National Bank and Trust Conpany of
Dallas, lexas, for a voting permit under the authority of
secti
(111 5144 of the Revised
Statutes of the United States, as amended,
611.4t1'
111 such organization to vote the stock which it owns or contreie
111 the "First National Bank in honey Grove", Honey Grove,
Texan
Euld "The First National
Bank of ilaco", Waco, rl'exas, and has
ItlAthor.
.Zed the
issuance of a limited permit to the applicant, subie
to the followino; conditions:
Extro", "P-) Prior to the issuance of the limited voting permit
'
prized herein,
"(1) the Federal Reserve Agent shall satisfy himself
that each of the subsidiary banks of the applicant
has
larged off or otherwise eliminated, (a) all losses in
and discounts, (b) all depreciation in stocks and de4au1ted securities, (c) all depreciation in securities not
?I' the four highest grades as
classified by a recognized
1-1170stment service organization regularly engaged in the
V
3946
12/18/34
-17-
"business of rating or grading securities and (d) all other
losses; as she= by the latest available reports of examinations by the appropriate supervisory authorities, except
that the charge-offs and eliminations required by (b) and
(c) above may be based upon current appraisals of marketable securities satisfactory to the Federal Reserve Agent;
"(2) the Federal Reserve Agent shall satisfy himself
that the applicant has substantially performed any agreement or agreements heretofore executed by it as a condition
to the issuance of a limited voting
permit by the Federal
Reserve Board;
"(3) the Federal Reserve A,7ent and the Executive Committee of the Federal reserve balk shall approve the issuance of such permit.
"(2) Prior,to the issuance of the limited voting permit
tuthorized herein you shall satisfy yourself that Republic
cna1 Bank and Trust Company of Dallas has charged off or
herwice eliminated, (a) all losses in loans and discounts,
etV all depreciation in stocks and defaulted securities,(c)
et,"` depreciation in securities not of the four highest grades
'
r classified by a recognized investment service
organization
gularly engaged in the business of rating or grading securirles
'and (d) all other losses; as she= by the latest available
of examination by a national bank examiner, except that
t?P"t
charge-offs and
eliminations required by (b) and (c) above
Y be based upon current market values
of readily marketable
securities.
??
j
"
(3) Prior to the issuance of the limited voting permit
pZorized herein, anplicant shell deliver to you Exhibit L,
P-3, executed by Republic Safe Deposit Company,
exhibit shall be in form satisfactory to Counsel for the
'ger:1 Reserve
Bank of Dallas.
•vot. (4) Simultaneously vith the issuance of the limited
Permit authorized herein, there shall be issued to Reit
National Company the limited voting permit authorized
the AICIGAR
telegram bearing the same date as this telegram."
for 4.,
'-ne following
purposes:
of
"To elect directors of such banks at the
annual meetings
ilr.shar
eholders, or at any adjournments thereof, at any time
0f101* to April 1, 1935, and to act thereat upon such
matters
zleea routine
nature as are ordinarily acted upon at the annual
tings of such
The
banks."
telf,
also authorized the anent to have prepared by
counsel
the
ueral reserve bank, and to
issue to the Republic National
3947
12/18/34
-18-
4131( and Trust Company of Dallas, a limited votinp, permit in accordall.oe with the telegram when the conditions prescribed therein have
beela cemplie:3 rith.
Lpproved.
Letter dated December 17, 1034, prepared in accordance with
the a.
cf
- -lon taken at the meeting on December 12, and approved by
"Inters of the board, to honorable lamer Thomas, United States
efle,
readinc7, as follovis:
its all of the appointed members of the Federal Reserve
Loard have
received from you similar letters asldnp for their
c°111me.ats upon your open letter of December 5, they have asked
ine t°il aC1110edp;(3 receipt and to reply in their behalf.
t
They appreciate your courtesy in giving them an opporrunitY aL first hand to be informed as to your proeosal and the
.reacons therefor and have read your letter with much interest.
71ezr of their official positions, hovaver, they believe
it would be inappropriate at this time for them to enter
a discussion of the question presented by your letter and
j feel that you iii appreciate their position in the matten
Approved.
Letter dated December 17, 1934, approved by four members of
40
toil
to The ii,,nderson Black Company, Troy, Alabalia, roadinq
Vrs:
coo "lhere has been referred to .,,he Federal Reserve Board a
trl'Y of your letter of October 27, 1(334, to the Comptroller of
4,w4,C;Irroncy, in which you inquire rhether a national bank may
1Y retain a pass book evidencing a savins deposit pendt o arrival of a check drawn a!7ainst such deposit.
of. 4., l'Or Your information, there is inclosed herewith a copy
ot'
40 Federal Reserve bulletin for Auguist, 1934, on page 542
tile17hich you will find a ru1in7 of the Board with respect to
witi lassification of a deposit account which is subject to
ob,4krawal without present' tion of the pass book. You will
erv0 that the Boerd has taken the position in that ruling
3948
12/18/34
-19the retention of a savings pass book by a member bank
for a continuing period of time in order to avoid the necess
ity
of the depositor's presenting such
pass book each timo a withdrawal is made is not in accord with the purpose of the lam or
the requirements of the Board's regulations on this subject
and deposits represented by savings pass books which are retained by the bank cannot be regarded as savings deposits upon
which interest may be paid. The hoard has also considered the
question whether an out-of-town customer may draw a check against
his savings account, provided the pass book is attached to such
check, and has expressed the opinion that the drawing of negotiable checks against a savings deposit in such manner and the
.,
payment of such checks accompanied by the pass book by the
drawee
tiont
bank is not prohibited 1)y the law or the Board's RegulaA
provided, of course, that the pass book is promptly
!!turned to the depositor and is not thereafter retained by
the bank as
a basis for future withdrawals.
bs,I, "Although it is possible that the retention by a member
--, for a limited period of tine of a savings pass book for/111rded directly to the bank in contemplation of the drawing of
!check against the deposit evidenced by such pass book would
not
Preclude such deposit from being classified as a savings
,;61)°sit, provided that the pass book were returned to the
:
GPositor as soon as practicable after payment of the check
or
within a reasonable time if for any reason the check had
presented for payment, the Federal Reserve Board has
lle
nott
t,,ruled
been
upon the specific question which you present and pre8,71.4 not to express an opinion upon the questi
on unless it
Sher
loit
t:2 1.d arise in connection with the actual operations
of a
le'lenal or other member bank of the Federa Reserv System
l
.
e
'
t. member bank should desire a ruling on such a question, it
Should furnish
to the Federal Reserve Agent at the Federal recirverve bank of its district a complete statement of all the
Eta TIlastances with respect to the matter including a statement
th,„
the length of time the pass book remains with the bank,
re;method of its transmission to
and from the bank, the reasons
'he adoption of this practice, the frequency of transac'Ile of this
character, and all other pertinent information."
Approved.
the
Letter dated Decemb
er 17, 1934, approved by four members of
Ord,
to L. Case, Federal Reserve Agent at the Federal Reserve
441c or liey
(York, reading as follows:
"lieeeipt is acknowledged of your letter of November 28,
3949
12/18/34
-20--
"1934, inclosing a copy of a letter dated Lovember 15, 134,
from Mr. Alton S. Keeler rer.arding his application under the
Provisions of section 32 of the Banking Act of 1933 for a permit to serve at the same time as
officer of United States
Trust Company of hew York and as director of Capital Managetient Corporation, both of new York, New York.
"The Board has noted Yr. Keeler's argument that the inf?rmation
regarding investment matters acquired in connection
!
Ith his duties as director of Capital Management Corporation
s of benefit to him in supervising
investments held by the
X't8t company in a fiduciary capacity, and that, since the
company has never had a transaction in securities with
Capital Management Corporation, no injury to the public
erest would result from his service as an officer of the
trust company and as a
director of Capital Management Corporation.
flA
you know, the action of the Board in denying Mr.
Keel
-er's application was under an interpretation of the Bank-Lng Act of 1933 which has
been applied consistently with rePeet to all
applications of the same general type as las. The
1°4rd agrees with you that Er. Keeler's letter of November 15,
'
0 34 contains no facts which would justify an exception in
his
ase, and the Board has therefore denied
his application."
I
Approved.
Letter dated December 17, 1934, approved by five
members
c/f the
Board, to LI-. Fletcher, Acting Federal
Reserve Agent at the
Nteral
Reserve Bank of Cleveland, inclosing the following Clayton
Pellrats for transmittal to the applicants, and suggesting that,
114e4 the
permits are sent to the applicants, the agent advise them
that
the permits
have been granted with the expectation that they
vrove their
attendance at directors' meetings of the Bank of
GOzie
vEti
14r. IL
E. TouVelle, for
permission to servo at the same time
director and officer of The First National Bank of
"'elita,
Celina, Ohio, and as a director of the Bank of Geneva,
411elra, Indiana.
'441ter J. Lersman, for
perm.ssion to serve at the same time
3950
12/18/311
-21-
48 a director and officer of The First lational Bank of Celina,
Celinu, Ohio, and as a director of the Bank of Geneva, rleneva,
Indiana.
146 lctter also suggested that the agent endeavor, in cooperation
Ivitlithe appropriate supervisory authorities, to effect a correction
ill the concentration of loans and other matters in connection -with
7417irat Uational Bank of Celina, which were criticized by the exand requested that the ac,;ent, when he submits his recomrilenda'ti°11 as a result of his annual review- of the permits, report
f11117rit4 resooct to the nature and extent of the use uhich has
411111463 of the credit facilities of The First ITational Bank of
Celina. IV the applicants, their families and interests.
Approved, together with a letter, also dated
December 17, 1:,34, and approved by five members of
trie Board, to 1.r. Stevens, Federal Reserve Agent
at the Federal Reserve Bank of Chicago, inclosing);
copies of the Clayton Act permits referred to above,
and requesting); that the agent endeavor, in coopera'
10n With the aupropriate supervisory authorities,
to bring about a strengthenin,
. in the condition of
the Bank of Geneva, Indiana, and that, when he submlts his recommendation as a result of his annual
re view of the
permits, he report fully with respect
+.-lereto and as to the attendance of the applicants
at directors' meetin-s of the Bank of Geneva.
Thereupon the meeting adjourned.
4PProvedt
-/`
Governor.
@FedFRASER