The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
2794 A meeting of the Board of Governors of the Federal Reserve System was held in Washington on Friday, December 20, 1935, at 11:30 a. in. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Thomas, Vice Chairman Hamlin Miller James Szymczak Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary The Board acted upon the following matters: Bonds, each in the amount of $50,000, executed under date of December 9, 1965, by Messrs. Clifford E. Morrissey and Dana D. Sawyer e°Irering their appointment to act for the Federal Reserve Agent at the Federal Reserve Bank of Boston in certain capacities. Approved unanimously. Letter to Mr. Case, Federal Reserve Agent at the Federal Reserv e Bank Of New York, reading as follows: , "Receipt is acknowledged of Mr. Gidney's letter of November 150 ,-, 1900 and its inclosures, relating to the holding conPanY affiliate status of Gimbel Brothers, Inc., New York, New York. "Pursuant to the request of that company, the Board has determined that Gimbel Brothers, Inc., is not engaged, directly ?r indirectly, as a business in holding the stock of, or manag' 4 4g. or contro lling, banks, banking associations, savings banks, ;r trust companies, within the meaning of section 2(c) of the 411king Act of 1933, as amended by section 301 of the Banking Act of 1955. Accordingly, that company is not a holding com2:11Y affiliate for any purposes other than those of section 23A of the Federal Reserve Act. Inc "Inclosed herewith is a letter of advice to Gimbel Brothers, co *2 which you are reques ted to transmit to that company. A n2Y of the letter is also inclos ed for your files. As you will v es the Board expressly reserves the right to make a further 2795 12/20/35 -2- "determination of this matter at any time on the basis of the then existing facts. In this connection it is requested that YOU advise the Board if, at any time, you believe that this matter should again be considered by it." Approved unanimously, together with a letter to Gimbel Brothers, Inc., New York, New York, reading as follows: "This refers to your company's request that the Board determine that it is not engaged, directly or indirectly, as a business in holding the stock of, or managing or controlling, banks, banking associations, savings banks, or trust companies, Within the meaning of section 2(c) of the Banking Act of 1933, as amended by section 301 of the Banking Act of 1935. "The Board understands that your company is principally engaged in operating retail department stores; that your comPany owns substantially all of the stock of Gimbel Brothers Bank and Trust Company, Philadelphia, Pennsylvania; that such bank is operated on the premises of your Philadelp hia store for the convenience of your customers and employees; that your company does not own or control stock of, or manage or control, a!aY.other bank; that bank stock constitutes a relatively insignificant portion of your company's assets; and that your company waL, not organized and is not operated for the purpose of managing or controlling banks. "In view of the above facts, the Board has determined that Your company is not engaged, directly or indirectl y, as a busiirpless in holding the stock of, or managing or controlling, banks, +tnking associations, savings banks, or trust companies, within wle meaning of section 2(c) of the Banking Act of 1933, as Tnended by section 301 of the Bankinr Act of 1935, and, accordtTY, your company is not a holding company affiliate for any poses other than those of section 23A of the Federal Reserve Act. "If, however, your company acquires control over any other 11014 or if the facts should, at any time, otherwise differ from ose set out above to an extent which would indicate that your orPanY might be engaged as a business in holding the stock of, 6,,,m4. ‘naging or controlling, banks, this matter should again Le thetted to the Board for its determination. The Board reserves 4.. right to make further determination of this matter at any 'Imc on the basis of the then existing facts." r talik or Letter to Mr. Case, Federal Reserve Agent at the Federal Reserve New York, reading as follows: 2796 12/20/35 -3-- "Receipt is acknowledged of Mr. Gidney's letter of December 10, 1955, returning the Board's letter of December 7, 1935, to'Hackensack Securities Company', Hackensack, New Jersey, Which was sent to you with a re4uest that it be forwarded to that company unless you felt that the Board should reconsider .its determination that that company is not engaged, directly or indirectly, as a business in holding the stock of or managing or controlling, banks. "It is noted that the existing facts concerning the bank stock owned by Hackensack Securities Company are somewhat different from those recited in the Board's letter. It is understood that you do not feel that this difference in the facts should affect the Board's determination but that, pursuant to conversations with members of the Board's staff, you have returned the letter in order that the Board may give further consideration to the matter. "After considering the additional facts contained in Ur. Gidney's letter, the Board has again determined that Hackensack Securities Company is not engaged, directly or indirectly, as a !Dusiness in holding the stock of, or managingor controlling, Danks,banking associations, savings banks, or trust companies, within the meaning of section 2(c) of the Banking Act of 1933, as amended by section 501 of the Banking Act of 1935. "Inclosed herewith is a letter to Hackensack Securities ,).-1ny C°1111, advising it concerning the Board's action. Unless you some further question concerning the matter, please forward le letter to that company. A copy of the letter is also inclosed for your files. As stated in the Board's letter of De?!Illber 7, 195, the Board desires to have you advise it if at time you believe this matter should again be considered by Approved unanimously, together with a letter to the "Hackensack Securities Company", Hackensack, New Jersey, reading as follows: "This refers to the application of your company for a voting permit entitling it to vote the stock which it owns or controls of 'Westwood Trust Company, of Westwood, N. J.', Westwood, New Jersey . 2,_ "The Board understands that your company owns 1070 of the Outstanding ; shares of stock of Westwood Trust Company, of s u 'e°t•ZidstI T.1 that it owns 138, or 46/100ths of one per cent, the 7,r1 —J,000 outstanding shares of stock of Peoples Trust Com'51Y of Bergen County, Hackensack, New Jersey; that it owns 65 of the 4000 outstanding shares of Class B Preferred stock 2797 12120135 -4-- "of Ridgefield Park Trust Company, such stock constituting approx imately 10.69 per cent of the 24,000 outstanding shares of all classes of stock of such bank; and that it does not hold stock of, or manage or control, any other bank. "In view of these facts, the Board has determined that your company is not engaged, directly or indirectly, as a business in holding the stock of, or managing or controlling, banks, banking associations, savings banks, or trust companies, within the meaning of section 2(c) of the Banking Act of 1933, as amended by section 60l of the Banking Act of 1935, and, therefore, it is not a holding compan y affiliate for any purposes other than those of section 23A of the Federal Reserve Act. Accordingly, it is not necessary for your company to obtain a voting permit and the Board will give no further consideratio n to its application. "If, however, your company should at any time own or control a substantial portion of the stock of, or manage or control, any bank other than Westwood Trust Compan y, of Westwood, N. J., this matter should again be submitted to the Board for its determ ination. The Board reserves the right to make a furthe determ r inatio n 02c matter at any time on the basis of the then existing ac "It is not apparent from the information before the Board whether Crum & Forster and Crum and Forster Insurance Shares CorPO.ration are holding company affiliates of Westwood Trust Company, 01.Westwood, N. J., by virtue of indirect control of the stock which your company holds of that bank. If such is the case, the fs,tock which your compan y holds of that bank cannot be voted unless ,()Fum.& Forster and Crum and Forster Insurance Shares Cor,Doration voting permits or obtain determinations by the Board that h leY.are not engaged, direct ly or indirectly, as a business in ! 13 ldlg the stock of, or managing or controlling, banks. The , uard's action with reference to your company does not affect the 'leading company affiliate status of such organizations." BarIL: Letter to Mr. Austin, Federal Reserve Agent at the Federal Reserve Of Philadelphia, reading as follows: el "This refers to your letter of October 9, 1965, and its in40° , 4re, relating to the holding company affiliate status of Farmers g.Ypt, Egypt, Pennsylvania. m, "Pursuant to the request of that bank, the Board has deterthat Farmers Bank of Egypt is not engaged, directly or indirect ecZctlY, as a business in holding the stock of, or managing or colTr°11ing, banks, banking associations, savings banks, or trust Panies, within the meaning of section 2(c) of the Banking Act 2798 12/20/55 -5- "of 1935, as amended by section au of the Banking Act of 1935. Accordingly, that bank is not a holding company affiliate for a4Y purposes other than those of section 25A of the Federal Reserve Act. "Inclosed herewith is a letter of advice to Farmers Bank of Egypt which you are requested to transmit to that bank. A copy Of the letter is also inclosed for your files. As you will note, the Board expressly reserves the right to make a further determination of this matter at any time on the basis of the then existing facts. In this connection it is requested that you advise the Board if, at any time, you believe that this matter should again be considered by it." Approved unanimously, together with a letter to the Farmers Bank of Egypt, Egypt, Pennsylvania, reading as follows: "This refers to your bank's request that the Board determine that it is not engaged, directly or indirectly, as a busi, : 1less in holding the stock of, or managing or controlling, banks, rnking associations, savings banks, or trust companies, within the meaning of section 2(c) of the Banking Act of 1953, as amended by section 301 of the Banking Act of 1935. "The Board understands that your bank was organi zed and is operated for the purpose of conducting a general banking business; that your bank owns 372 of the 500 outstanding shares of stock of Schneckaville State Bank, Schnecksville, Pennsylvania, ,!Q°1 10 shares of the stock of Dime Savings and Trust Company, olertmail Pennsylvania, (in liquid ation); that your bank does tt own or control any other bank stock; that bank stock consti, es a relatively small part of the assets of your bank; and Your bank was not organi zed Pna is not operated for the vu-Ilx/e of managing or controlling banks. yo 'In view of the above facts , the Board has determined that ik is not engaged, directly or indirectly, as a business fl ba„°1 -ng the stock of, or managing or controlling, banks, the"hang associations , savings banks, or trust companies, within 84_ meaning of section 2(c) of the Banking Act of 1935, as i4lided by section 301 of the Banking Act of 1935, and, accordbankis not a holding company affiliate for any purposeYs2a5= tb those of section 23A of the Federal Reserve Act. Z tt t "If, however, your bank acquires control over any bank Other atv,t han Schnecksville State Bank or if the facts should, at tc;,'"-nle, otherwise differ from those set out above to an exbu;;:nwhich would indicate that your bank might be engaged as a ess in holding the stock of, or managing or controlling, b 4 S S matter should again be submitted to the Board for 2799 12/20/35 -6- "its determination. The Board reserves the right to make further determination of this matter at any time on the basis of the then existing facts." Telegram to Mr. Wood, Federal Reserve Agent at the Federal Reserve of St. Louis, readi ng as follows: "Retel December 16 relating to ANCILDALE telegrams dated December 9 regarding TRUSTFYS UNDER TRUST AGREEMENT WITH REFERENCE TO STOCK OF THE FIRST NATIONAL BANK OF LOUISVILLE, KENTUCKY AND OTHER CORPORATIONS, DATED JULY 1, 1925, and regarding The First National Bank of Louisville. It appears that Madison-Sout hern National Bank & Trust Company holds all of the stock of J. W. Zaring Grain & Mill Company as trustee to secure the payment of all of the obligation s of Allen H. Zaring. On the basis of these facts , Board opini is of on that such corpor ation is an affiliate of such bank. Accordingly, no change is authorized in Ancildale teleg rams of December 9. It appea rs that Comptroller's office may have advised Mr. Mann 9aat under terms of recent waiver Madison-Southern National !:141n1 & Trust Company is not required to file report of J. V. taring Grain & Mill Company. Howev er, such waive r does not afrect quest ion of whether the corporation is an affiliate within meaning of section 2(b) of the Banking Act of 1933." Approved unanimously. Telegram to Mr. Sargent, Assistant Federal Reserve Agent at the Pederla Reserve Bank of San Francisco, reading as follo ws: ber 1 "Retel December 18 relating to Board's telegrams of December authorizing issuance of general voting permits to Transinerjea Corporation and Inter-America Corporation. Board under,' 9" -S that Transamerica Corporatio n owns all of the stock of Inter-Ameri ca Corporation and Transamerica General Holding ComialnYi that Inter -America Corporation owns substantially all of _.e stock of Bank of America National Trust and Savings Assoion; that Transamerica General Holding Company owns all of ti ? stock of California Lands, Inc. and Capital Company. On 1,1. 1t8 basis, upon the execution of the prescribed agreements by c0218america Corporation and Inter-Ame rica Corporation, such DPorations will be required, under the provisions of parali:Ph fl numbered 6 of such agreements, to take all necessary acwithin their power to prevent Bank of America National t r 2800 12/20/35 -7- "Trust and Savings Association from thereafter making any loans or extensions of credit to California Lands, Inc. or Capital Company except within the same limitations and subject to the same conditions and provisions as are applicable under section 25A of the Federal Reserve Act to such transactions involving member banks and their affiliates." Approved unanimously. Letter to the Secretary of the Treasury of the United States, reading as follows: "In compliance with the suggestion contained in your letter Of December 13 with respect to the discontinuance of the issuance by the Federal Reserve banks of Federal Reserve notes of the 1928 series which bear on their face the words 'Redeemable in gold', as soon as a sufficient stock of Federal Reserve notes of the 1964 series is available to meet current requirements of the respective banks, your letter was referred to the Governors at their conference in Washington on Wednesday of this week. After discussing this matter the Governors advised the Board that they are in accord with the procedure set forth in your letter, with the understanding that, if Congress does not at the forthco ming session authorize the Treasury to replace the stock of new Federal Reserve notes of the 1928 series with notes of the 1954 series, the question as to whether the Federal Reserve banks should resume paying out notes of the 1928 series will be given consideration promptly after the adjournment of Congress. "It is understood, of course, the acquiescence of the Board al .ld the Federal Reserve banks at this time in the program outin your letter w-V11 not in any way prejudice the right of Federal Reserve banks to resume the paying out of the exist'C stock of notes of the 1928 series in case the Treasury DeP'trtment is not authorized to replace this stock with notes of the 1934 series." Approved unanimously. Letter to Mr. William T. Amos, Attorney-at-Law, Cleveland, Ohio, Ilee 'cling as follows: 19 "Receipt is acknowledged of your letter of December 11, .25) requesting the certification of certain documents among 1-41e records of the Board of Governors of the Federal Reserve SYstem. "The document in the Board's files entitled 'Transcript of S tenographic Minutes of Conference with the Federal Reserve 2801 12/20/35 -8- "Board of the Federal Advisory Council and the Class A Directors of the Federal Reserve Banks Held at Washington, D. C., May 18, 1920', is out of print, and additionfil copies are not available for distribution. However, it will be possible to furnish you with a certified typewritten copy of this document icf you are willing to bear the expense, estimated at approximately 425, which will be involved in the preparation of such a copy. Please advise as to your wishes in this matter. "In accordance with your request, there is inclosed herewith a certified identical copy of a document among the Board's records entitled 'Federal Reserve Board Charts on Bank Credit, Money Rates, and Business Activity', which was prepared by the Board's Division Of Research and Statistics, at the request of Senator Fletcher, for the use of the Senate Banking and Currency Committee in connection with the hearings on the bill which was subsequently enacted as the Banking Act of 1935. Inasmuch as the preparation of this document involved considerable expense, it will be necessary to make a charge of $5 therefor. It will be appreciated if you will remit by check made payable to the Board of Governors of the Federal Reserve System. "It will be noted that the inclosed certificate bears the seal containing the inscription 'Federal Reserve Board', while the certificate itself contains references to the 'Board of Governors of the Federal Reserve System'. The name of the Federal Re: erve Board was changed to the Board of Governors of the Federal Lrserve System by the provision s of section 203(0 of the Banking li?t of 1935, approved August 23, 1965. However, until the adopulon of a new seal, the Board will continue to use the old seal as its official seal." Approved unanimously. Thereupon the meeting adjourned. ,Secretary. Chairman.
@FedFRASER