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4066 A meeting of the Federal Reserve Board was held in ffashington on Friday, December 28, 1934, at 4:00 p. PRESENT: Er. kr. Er. Er. Er. Eccles, Governor Thomas, Vice Governor Hamlin Eiller James Szymczak Li'. Morrill, Secretary Reference was made again to the appointments to be made by the or Board of Class C directors of Federal reserve brInks and directors branches of Federal reserve banks for terms beginning January 1, 1935. It was agreed that: 1. Beginning with appointments made in 1935, the Board mculd not reappoint Class C directors of Federal reserve banks (except chairmen of the boards of directors) who had served tWO or more consecutive terms of three years each, 2. The Board would recommend to Congress the passage of legislation which would limit the service of Class A and Class B directors of Federal reserve banks to t= consecutive terms Of three years each, 3. Beginning with appointments made in 1935, directors Of branches of Federal reserve banks who had served two or tore consecutive terms of three years each or three or more terms of two years each should not be reappointed, 4. The individuals appointed by the Board as directors of branches of Federal reserve banks should not be officers elf banks or primarily engaged in banking, (but may be stockholders or directors of banks) and that all branch directors 811°uld be men whose business and financial interests are priillarily within, and representative of, the branch territory father than of interests controlled or owned outside the °ranch territory, and should be men of established reputations 4-11d ability to meet their financial obligations , 4067 12/28/34 -2- 5. The Board's rules and regulations regarding directors at branches should be amended in accordance with the Policy above referred to. The Secretary was requested to prepare and submit to the Board for consideration a letter to the chairmen of all Federal reserve banks advising, in the light of the discussion at this meeting, of the adoption of the policies referred to above. The following actions were then taken vith regard to the appointment of Class C directors and directors at branches of Federal reserve banks: i. Lerriman was reappointed a Class C director of the Federal Reserve Lank of Zoston for a term of three years beginning January 13 193, Lr. Robert Lassiter was reappointed a Class C director of the Fedrn Reserve Bank of Richmon for a term of t'eree years beginl.ing uarY 1, 1 935. -. 110,,"L. Kettig was reappointed a Glass C director of the 'Adorn.). 1,'e 1935re Dank of Atlanta for a terra of three years beginning January ' aul Lillard was reappointed a Class C director of the Federal Re, ; b er "liank of St. Louis for a term of three years eginning januY 1, 1935. 4. J. Doolin was reappointed a Class C director of the Federal .= .kansas City for a term of three years beginninz; tka. -1 delch was reappointed a Class C director of the Federal ; Francisco for a term of three years beginning 4 0t, tiuk,nLert 17. Pound, Lockport, 1-,ew York, retir)ng chief ju”ice the 1.evr York State Court of Appeals, was appointed a director of ter,r,'Ilffalo branch of the Federal Reserve Lank of Kew York for a of tnree years beginning January 1, 1935. , the L. Sutp1i3n, Cincinnati, Cho, vas reappointed a director of ter : ricinmti branch of the Federal Reserve Bank of Cleveland for ' of three years eginn4 nr, January 1, 1935. • Ilerrett, President Of the Pittsburgh Plate Glass Co., 4068 12/28/34 Pittsburgh, Pennsylvania, was appointed a director of the Pittsburgh branch of the Federal Reserve Bank of Cleveland for a term of three Years beginning January 1, 1935. Ilr e J. L. Morehead, Leaksville, North Carolina, MRS reappointed a director of the Charlotte branch of the Federal Reserve Bank of Rich111011d for the year 1935. 141% W. H. Matthai, Baltimore, Maryland, was reappointed a director et the Baltimore branch of the Federal Reserve Bank of Richmond for the year 1935. Mr. 7 L" H. Kettig, Birmingham, Alabama, was reappointed a director of the Birmingham branch of the Federal Reserve Bank of Atlanta for the Year 1935, E. W. *Haynes, Jacksonville, Florida, MRS reappointed a director the Jacksonville branch of the Federal Reserve Bank of Atlanta °r a term of three years beginning January 1, 1935. 1 : 4 lelr. Ernest T. George, President and Chairman of the Seaboard Refining niParlY, Ltd., New Orleans, Louisiana, was appointed a director of the ell' Orleans branch of the Federal Reserve Bank of Atlanta for a term °t three years beginning January 1, 1935. e I!!, 1e resignation of Mr. J. B. Hill as a director of the Nashville c1 of the Federal Reserve Bank of Atlanta, tendered in his letter h; ueeember 17, 1934, URS accqpted and action on the appointment of 4.8 Suc cessor was deferred. IZ4,. A tdiR C. Marshall, Vice President and General Manager of the Detroit Del;,°11 Conpany, Detroit, Michigan, was appointed a director of the theet branch of the Federal Reserve Bank of Chicago for a tern of years beginning January 1, 1935. 144.. tor 140orhead Wright, Little Rock, Arkansas, was reappointed a direcLolee the Little Rock branch of the Federal Reserve Bank of St. & for the year 1935. or th W. Crawford, Louisville, Kentucky, was reappointed a director te2 Louisville branch of the Federal Reserve Bank of St. Louis for Of three years beginning January 1, 1935. Cozv B. Hill, President of the Louisville and Nashville Railroad Louisville, Kentucky, was appointed a director of the LouisPiro; °ranch of the Federal Reserve Bank of St. Louis for the unexb'4 41.• Portion of the term ending December 31, 1935, to succeed Mr. Cole, deceased. 4069 12/28/34 -4- 11r. S. E. Ragland, Memphis, Tennessee, was reappointed a director °t the Memphis branch of the Federal Reserve Bank of St. Louis for the year 1935. Action on the appointment of a director of the Helena branch of the *4, -ederal Reserve Bank of Minneapolis for the term beginning January ' l 1935, to succeed Er. 711. P. Sullivan, was deferred. 14I'. plurdo MacKenzie, Denver, Colorado, was reappointed a director Of the Denver branch of the Federal Reserve Bank of Kansas City Or the year 1935. 1 _' °tion. on the proposed reappointment of Er. Lee Clinton as a direcT of the Oklahoma City branch of the Federal Reserve Bank of ateas City for the term beginning January 1, 1935, was deferred. TJ 4. w Diesing, Omaha, Nebraska, was reappointed a director of the a branch of the Federal Reserve Bnrk of Kansas City for the year 1935. C. 1.1. Newman, El Paso, Texas, was reappointed a director of the l'aso branch of the Federal Reserve Dank of Dallas for the year 1935 El 4. R 110 Farrar, Houston, Texas, was reappointed a director of the lIcton branch of the Federal Reserve Bank of Dallas for the year 1935 • 4. p. tor•L. Lewis, Sr., San Antonio, Texas, was reappointed a direcOf the San Antonio branch of the Federal Reserve Bank of Dallas 'a term of three years beginning January 1, 1935. j u• B. Alexander, Los Angeles, California, was reappointed a ector of the Los Angeles branch of the Federal Reserve Bank of Francisco for the year 1935. 14.. E. the , C. Pease, The Dalles, Oregon, was reappointed a director of ror rortland branch of the Federal Reserve Bank of San Francisco the year 1935. 4 Acti.0 tor 4 on the proposed reappointment of Er. M. IV. Smith as a direc- the Salt Lake City branch of the Federal Reserve Bank of San elsoo for the term beginning January 1, 1935, was deferred. the , A. Rhodes, Tacoma, Washington, was reappointed a director of 44eattle branch of the Federal Reserve Bank of San Francisco 'the year 1935. 4070 12/28/34 -5- 14r. Peter McGregor, Hooper, Washington, was reappointed a director of the Spokane branch of the Federal Reserve Bank of San Francisco for the year 1935. The Board then acted upon the following matters: Letter dated December 27, 1934, from Er. Sproul, Secretary of the Federal Reserve Bank of New York, and telegram dated December 28, 1934, from Yr. Stevens, Chairman of the Federal Reserve )34t1c of Chicago, both advising that, at meetings on the dates stated, no changes were made in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. Letter dated December 24, 1934, from Miss Elizabeth Griffin tendering her resignation as a temporary stenographer in the Diviof Examinations, effective at the close of business on Decembar 24, 1934. Accepted. Letter to Hr. O'Connor, Comptroller of the Currency, readas followm: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock °f the 'Vermont-Peoples National Bank of Brattleboro', Brattle°Oro, Vermont, from $400,000 to $200,000, pursuant to a plan 11/9.ch provides that the released capital shall be used to ?ilminate a corresponding amount of the least desirable assets 14 the bank, all as set forth in your memorandum of December 17, 1934." Approved. Letter dated December 27, 1934, approved by five members of the 44rd, to Mr. O'Connor, Comptroller of the Currency, reading as 4071 el ci 12/28/34 -6- "Receipt is acknowledged of your letter of December 19, 1934, in regard to the capital reduction of 'The Abington National Bank of Clark's Summit', Clark's Summit, Pennsylvania, which was approved by the Board on November 16, 1934, and which provided in part that the bank's capil,a1 shall be increased by the sale of $50,000 Class 'A,' preferred stock to the Reconstruction Finance Corporation, and $26,000 of Class 'B' preferred stock and 340,000 of new common stock to local interests, and that the resultant amount of common capital stock, $90,000, shall be reduced to ; :',50,000 by the proposed reduction of 340,000. "You now advise that the Reconstruction Finance Corporation has changed the proposed amendments to the bank's articles of association so as to shovra reduction of the outstanding common stock from 500 shares at 0.00 per share to 500 shares at $20 per share, and provide that the directors' guarantee of $66,000 will be converted into 2,000 shares of new common stock at 320 per share, (plus ,:',26,000 of 1 E.' preferred stock), such action to follow the reduction of the par value of the present common stock. "In accordance with your recommendation, the Board amends it8 previous approval to permit the reduction in common stock Prior to the increase in common stock, with the understanding that the sale of preferred stock to the Reconstruction Finance Corporation will be consummated prior to the reduction in common stock, in order that the capital of the bank shall at no time fall below the minimum legal requirements." Approved. Letter to Mr. Curtiss, Federal Reserve Agent at the Federal 'Ire Bank of Boston, authorizing him, subject to the conditions Prescribed in the letter, to issue a limited voting permit to "Old C°10 ny Trust Associates", Boston, Massachusetts, entitling such ortriization to vote, for the purposes set forth in the letter, the etc'ek which it owns or controls in the following banks: luenotomy Trust Company", Arlington, Massachuset ts, !!?rfolk County Trust Company, Brookline, Massachusetts, liarvard Trust Company", Cambridge, Massachusetts, "Th he Lechmere National Bank of Cambridge", Cambridge, Massachusetts, 4072 -7- 12/28/34 "The Concord National Bank of Concord", Concord, Massachusetts, "Everett Bank and Trust Company", Everett, Massachusetts, "The Appleton National Bank of Lowell", Lovell, Massachusetts, "The second National Bank of Malden", Malden, Massachusetts, "The First National Bank of Mansfield", Mansfield, Massachusetts, "Newton Trust Company", Newton, Massachusetts, "Springfield National Bank", Springfield, Massachusetts, "The Union Market National Bank of Illatertown",Watertown, Massachusetts, "Winchester Trust Company", Winchester, Massachusetts. The letter also authorized the agent to extend the time limit on the conditions of membership of the "Needham Trust Company", Needham the"Menotomy Trust Company", Arlington, the "Canton Trust Company", Cknteri, and the "Stoughton Trust Company", Stoughton, all of Massawhereby Old Colony Trust Associates was to obtain a voting Permit within six months, for an additional six months. Approved. Telegram to Mr. Case, Federal Reserve Agent at the Federal Ilea rle Bank of New York, authorizing him to issue a limited voting Perlait to the "Franklin Capital Corporation", Newark, New Jersey, elltitling such organization to vote the stock which it owns or contz‘018 in the "Frnnklin Washington Trust Company", Newark, New Jersey, for t he purposes set forth in the telegram. Approved. Telegram to Mr. Case, Federal Reserve Agent at the Federal ileecrve Bank of New York, authorizing him, subject to the conditions Neeribed in the telegram, to issue a limited voting permit to the Ude°4-l1ar1em Valley Corporation", Mount Kisco, New York, entitling euch rCanization to vote the stock which it owns ar controls in the 4073 12/2V34 -8- "Trust Company of Northern Westchester", Yount Kisco, New York, for the purposes set forth in the telegram. Approved, together with a letter to Mr. Cases Federal Reserve Agent at the Federal Reserve Bank of UM York, reading as follows: "Reference is made to Yr. Dillistin's letter of December 11, 1934, recommending approval of a reduction in the common capital stock of the 'Trust Company of Northern Westchester', Mount Kisco, New York, from 0.00,000 to $50,000, pursuant to a plan which provides for the sale at par of f',$50,000 of new common stock to its present shareholders and/Or others, and for the use of the released capital in eliminating all depreciation in securities, establishing a reserve for estimated losses in other real estate and increasing the surplus account With any remaining balance. It is understood that the bank expects to reduce the par value of its present common stock from :,100 to $25, distributing to the presen t shareholders two Shares of such stock for each share of .the stock now held, and that the present shareholders will be given rights to purchase !tt par, 2,000 shares (25 par value) of new common stock. It Is also understood that the bank expect s to release the special time deposit of :)27,00 1 0 securing a guaranty agreement executed by its holding company affiliate, the Hudson-Harlem Valley Corporation, held for the protection of the bank's depositors. "The bank's condition of membership numbered 3 provid es that it shall not reduce its capital except with the permission of the Federal Reserve Board. In view of the corrections to be made in the bank's condition, and in accordance with Yr. Dillistin's recommendation, the Board approves the application of the Trust Company of Northern Westchester, Mount Kisco, New York s for permission to reduce its common stock from 0.00,000, t° 50,000, subject to the following conditions: 1. That prior to or concurrently with such reduction of common capital stock, the bank's capital shall be increased by the sale at par of c1- 50,000 par value of new common stock to the present shareholders and/or others; "2. That none of the funds releas ed by the reduction in common capital shall be returned to shareholders but that such released capital shall be used to eliminate securities depreciation, to establish a reserve for losses in other real estate and to increase the bank's surplus account, as set forth in Mr. Dillistin's letter of December 11, 1934; 113. That the transaction has the approval of the New York State Banking Department; 4074 12/28/34 -9- That your counsel has considered the case and is satisfied as to its legal aspects. "In connection with the ownership of the majority of the bank's cal)ital stock by the Hudson-Harlem Valley Corporation, it has been noted that the holding company affiliate has applied for permission to vote the stock owned or controlled of the applicant for the purpose of rehabilitating its capital structure. This application has been considered and the Board has authorized the issuance of a limited voting permit for the purposes and subject to the conditions contained in a telegram forwarded to you today. "Upon completion of the proposed plan, please advise the Board as to the amount of eliminations made and reserves provided by the bank and the amount credited to surplus; also forward copies of any amendments to the bank's charter which may be adopted in connection with the reduction in capital." Telegram to Yr. Case, Federal Reserve Agent at the Federal Reserve Bank of New York, authorizing him, subject to the conditions Pr escribed in the telegram, to issue a limited voting permit to "The 1'1a-infield Trust Company", Plainf ield, NevrJersey, entitling such clrgatization to vote the stock which it owns or controls in "The ?la-infield National Bank", Plainf ield, New Jersey, for the purposes aet forth in the telegram. Approved. Telegram to Mr. Peyton, Federal Reserve Agent at the Federal ileaerve Bank of Minneapolis, authorizing him, subject to the conditi°118 prescribed in the telegram, to issue a limited voting permit to ti rp , 4Ile Midway National Corporation" , St. Paul, Minnesota, entitling 811011 a,. -- ganization to vote the stock which it owns or controls in Th e, Lidway National Bank of St. Paul", St. Paul, Minnesota, for the 1341'11°8es set forth in the telegram. Approved. Telegram to Mr. Sargent, Assistant Federal Reserve Agent 4075 12/28/341 -10- at the Federal Reserve Bank of San Francisco, reading as follows: "Reference letter December 15 and telegram Lecember 17 regarding 'American Investment Corporation'. Your letter to Li.. Hemingway of December 13 and files indicate there is net appreciation in securities of the subsidiary banks, which would make unnecessary any chargeoff on account of depreciation in such securities. Board feels that provision should be made for elimination of the losses in order that reports and published statements of the banks may properly reflect the condition thereof. The requirements made in this case are in conformity with those made in other cases involving similar circumstances and there do not appear to be sufficient grounds upon which an exception should be made." Approved. Telegram to :r. Sargent, Assistant Federal Reserve Agent at the Federal Reserve Bank of San Francisco, reading as follows : "Reference telegram December 13 regarding 'ilerced Securities Corporation' Board feels that provision should be made by subsidiary bank for elimination of all losses and depreciation in securities not of the four highest grades in order that reports and published statements of the bank properly reflect condition thereof. The requirements made are in conformity with those made in other cases involving similar circumstances and thore do not appear to be sufficient grounds Upon which an exception should be made." APproved. Letter to the governors of all Federal reserve banks, readEL follows: "The Board has reviewed the portion of its circular letter of October 20, 1932 (X-7276), which pertains to minor expenditures by Federal reserve banks for memorials, testimonials, floral offerings, and similar purposes, and, since the responsibility for making expenditures of this character rests in the first instance with the management of each reserve bank, the Board believes that the board of directors or executive committee of each reserve bank should be free to exercis e its discretion in authorizing such expenditures, after considering the advisability thereof in each case, without taking the matter up with the Board. "Therefore, the Board hereafter will not require the 4076 12/28/34 -11- H submission of such cases to it for approval, but will rely Upon its examiners to note such expenditures during the course of their regular examinations and to include the facts in their reports. If in the review of any such report it appears that a particular expenditure is questionable, the Board will then take the matter up with the particular bank concerned." Approved. Telegram to the governors of all Federal reserve banks, l*eading as follows: "Referring Board's letter X-7941 of June 27, 1934, no Part of assessment for purpose of acquiring a lot and erection of a building thereon for Board's use mill be called for payment during 1934, and no part of such assessment should be reported as a charge against 1934 earnings. Daily balance sheet, Form 34, for use during 1935 calls for reporting assessments Paid in for above purpose in miscellaneous assets block against caption 'F. R. Board building account'." Approved. Telegram to Mr. Sargent, Assistant Federal Reserve Agent at the Federal Reserve Bank of San Francisco, reading as follows: "Referring your December 27 wire, letter went forward Wednesday authorizing your bank to set aside 2 percent reserve on bank buildings, and 10 percent reserve on fixed machinery and equipment, and to credit to reserves for 'Other losses' an amount sufficient to cover your bank's proportion of Hungarian credit not covered by existing reserve and not rePayable out of gold collateral, and an amount equal to profit on sale of Government securities from System account during 1934, not to exceed, however, amount of net earnings remaining after setting aside other reserves authorized therein and after Payment of dividends. Board now authorizes you to charge off v400,000 on land on which Los Angeles branch building is located with undorstanding that reserves for 'Other losses', set aside at end of year after making provision for all other reservos and payment of dividend do not exceed remaining net earnings. Request to increase rate of depreciation on bank building from 2 to 5 percent not approved by Board. Further consideration will be given to this next year. Your bank is also e authorized to restore to profit and loss reserve of Y1,029.07 set up December 30, 1933 to cover possible losses on 4077 e0 12/28/34 -12- "past due acceptances." Approved. Letter dated December 27, 1934, approved by five members of the Board, to la'. George L. Harrison, Chairman of the Federal Open Market Committee, New York, New York, reading as follows: "The Federal Reserve Board has given consideration to the action taken at the meeting of the Federal Open Market Committee in Washington on December 17, 1934, advice of which W&s contained in Mr. Burgess' letter of December 18, addressed to Governor Eccles, Lind approves the recommendations that the Executive Committee of the Federal Open Market Committee be authorized to replace the Treasury Notes maturing on March 15, 1935 and the maturities of called 4th Liberty Bonds held in the system account either in the market or with any securities which the Treasury may offer in exchange, and to make exchanges between maturities in the system account up to a total of 0_00,000,000. "Advice of the Board's action is being sent today to the Chairmen of the Federal Reserve banks." Approved. Letter to Er. Austin, Federal Reserve Agent at the Federal Ileserve Bank of Philadelphia, reading as follows: "Receipt is acknowledged of your letter of October 29, 1934, in which you state that you anticipate that you will receive requests from examiners of the Federal Deposit Insurance Corporat ion for permission to peruse reports of examination 0f some of the State member banks in your district. You request to be advised whether you may lawfull duly allow y accredited representatives of the Federal Deposit insurance Corporation to see such examination reports and, if so, you ,sk that the Board authorize you to make the reports available to such representative s. "As you know, section 9 of the Federal Reserve Act prothat copies of the reports of examination of State member 1,4nics 'may, in the discretion of the Federal Reserve Board, '_43 furnished to the State authorities having supervision of uuch banks, to officers, directors, or receivers of such banks, d to any other proper persons'. Section 12B(k) of that Act . ifovides that the Federal Deposit Insurance Corporation 'with 'ne consent of any Federal reserve bank or of any board * * * n 4078 12/28/34 -13- " may avail itself of the use of information, services, and facilities thereof in carrying out the provisions of this section'. "Although the Federal Reserve Board feels that information concerning the condition of State member banks is primarily intended for the confidential use of the Board and the Federal reserve banks and that extreme caution should be exercised in making any other use of this information, it is the -view of the Board that the provisions of law to which reference has been made justify it in permitting reports of examination of State member banks to be made available to the Federal Deposit Insurance Corporation and its duly authorized representatives for use in the discharge of their official duties. Consequently, the Board consents to your furnishing reports of examination of State member banks to examiners of the Federal Deposit Insurance Corporation for their confidential and official use whenever you consider it desirable to do SO. In any such case, it is assumed that attention will be called to the fact that the report of examination is solely for the confidential use of the examiner of the Federal DePosit Insurance Corporation and that such other steps will be taken as may be necessary to protect the confidential nature of the information contained therein." Approved. Letter dated December 27, 1934, approved by five members or the Board, to La*. Aaron Goldstein, Department of Economics, liall ' iard University, Cambridge, Massachusetts, reading as follows: "The Federal Reserve Board is glad to grant in substance Your request of December 17 that you be permitted to cite the Board as authority for the statements contemplated in sections (1) and (2) of your letter. It is requested, however, 'hat both statements be somewhat modified. As regards section a), the records of the Czechoslovak loan show- that it was repaid by the end of October (rather than November) 1925. As regards section (2), the Board is prepared to authorize only statement that 'the agreement never became effective'. All reference to conditions that were not fulfilled should be om itted." Approved. Letter to LI.. Newton, Federal Reserve Agent at the Federal 11eaer_ ye Bank of Atlanta, inclosing the following Clayton Act permit 4079 121204 -14- for transmittal to the applicant; suggesting that the agent advise the applicant that the permit has been granted with the expectation that he mill improve his attendance at directors' meetings; and requesting that, when the agent submits his recommendation as a result of his annual revievrof the permit, he report fully as to the applicant's attendance at directors' meetings: la*. J. Carroll Payne, for permission to serve at the same time as a director of The First National Bank of Atlanta, Atlanta, Georgia, and as a director of the Morris Plan Bank of Georgia, Atlanta, Georgia. Approved. Letter to Mr. McAdams, Assistant Federal Reserve Agent at the Federal Reserve Bank of Kansas City, reading as follows: "'Ale Board has reconsidered the application of /a.. W. D. Womer, Manhattan, Kansas, for permission under the provisions of the Clayton Act to serve at the same time as director and Officer of 'The First National Bank of Manhattan', 'The First liational Bank of Phillipsburg' and 'The First National Bank of Kensington', all of Kansas; and upon the basis of the inforration before it, including that submitted with Mr. LcClure's letter of November 14, 1934, feels that the issuance of an unlimited permit to the applicant would be incompatible with the Public interest as set forth in its letter of September 7, 1934, to Er. McClure. "However, it appears from the latest available reports of examination of the banks involved that their condition is being improved, that considerable improvement has been effected iI the criticized obligations of the applicant, his family and interests, and that criticizable relationships between the banks are being eliminated. It has been noted from Yr. McClure's letter of November 14, 1934, also, that Li-. Weiner now realizes that the institutions must be operated along more conservative lines than has heretofore been done, that Er. McClure and the istrict Chief National Bank Examiner were of the opinion that applicant's continued services should be of benefit to the Institutions and that Er. McClure felt that the forced mithc, Irawal of the applicant from any of the banks might be aefinitely harmful. In all the circumstances the Board has 9 4080 12/204 -15- granted a permit, effective however, only for the period ending December 31, 1935. There are inclosed the original and copies of the permit for transmittal by you to the applicant and the banks involved and a copy for your files. When the permit is sent to the applicant you are requested to call his attention to the limited status thereof and advise him that if he desires to serve the banks after December 31, 1935, the Board will give consideration to a new application filed in accordance with the Board's Regulation L. "In connection with the permit granted to Yr. Womer, your attention is directed to Er. McClure's letter of September 5, 1934, in which it was stated that Er. Vioner's apparent violation of Section 22(g) of the Federal Reserve Act had beer reported to the United States District Attorney and that your office had been advised that no further steps in connection with the violation were expected to be taken. Please bear this matter in mind and in the event other apparent violations of Section 22(g) on the part of the applicant or executive officers of these banks are noted during the continuance of this permit, advise the Board fully with respect thereto, submitting at the same time your recommendation as to whether or not consideration should be given to the matter of the revocation of the permit." Approved. Letters to applicants for permits under the Clayton Act, adviBing of approval of their applications as follow s: Harry E. Nichols, for permission to serve at the same time as a director of The herchants National Bank of Dunkirk, Dunkirk, New York, and as a director of the Citizens Trust Company, Fredonia, New York. 1,r. Henry C. Biddle, for permission to serve at the same time as a director of the Ambler National Bank, Ambler, Pennsyllrania, and as a director of the Norristown-Penn Trust Company, llorristawn, Pennsy lvania. L.r. Henry B. Coxe, Jr., for permission to serve at the same time as a director and officer of the Ambler Nation al Bank, Arabier, Pennsylvania, and as an office r of The Real EstateLand Title and Trust Compan y, Philadelphia, Pennsylvania. Lr. Joe S. Burgin, for permis sion to serve at the same time ? 1 a director of The First Nation al Bank of Columbus, Columbus, T e°rgia, and as a director and officer of the Buena Vista 440an Savings Bank, Buena Vista, Georgia. 4081 12/28/34 -16- Er. VI. H. Kistler, for permission to serve at the same time as a director of The Denver National Bank, Denver, Colorado, and as a director of the First Industrial Bank, Denver, Colorado. Lr. 11 R. McFarland, for permission to serve at the same time az a director of The Denver National Bank, Denver, Colorado, and as a director and officer of the First Industrial Balk, Denver, Colorado. Approved. There was then presented the following application for a ehange in stock of a Federal reserve bank: P;ication for ORIGINAL Stock: DiETI7 gt No. 12. The First National Bank in Coachella, Coachella, California Shares 36 36 Approved. Thereupon the meeting adjourned. (6011:1721b. 0A1,2 Secretary.
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