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648 A meeting of the Federal Reserve Board was held in Washington on Friday, December 29, 1933, at 2:00 p. m. PRESEid: Li-. Er. Er. Er. Mr. Er. Black, Governor Hamlin Miller James Thomas Szymczak Er. Morrill, Secretary Er. Carpenter, Assistant Secretary Yr. Bethea, Assistant Secretary The Board considered and acted upon the following matters: Telegraphic reply to a letter dated December 19, 1933, from 11r. Logan, Deputy Governor and General Counsel of the Federal Reserve 13anic of New York; the reply reading as follows: "In view of statements contained in your letter of December 19 and inclosed copy of letter from Jenkins, Deyo, and Hitchcock, attorneys, and in view of your recommendation, Board after consideration approves payment by Federal Reserve Bank of New York of fee not exceeding in aggregate the sum of Q8,000 to Jenkins, Deyo, and Hitchcock, for services rendered by them in connection With the prosecution of a preferred claim filed by the Federal Reserve Bank against the State Bank of Binghamton, New York, such fee to cover all services to date and such further services as may be necessary until after the entering of order by trial court following decision in the present proceeding. It is understood that this fee does not cover services in connection with any fur„her proceedings that may be necessary in order to determine other questions not now before the court for decision. The fee approved herein is in addition to the fee of ;2.,000 which has been paid by your bank to Jenkins, Deyo, and Hitchcock for their services in connection with the claim against E. C. Brewer kjomPany but except in that respect is in lieu of and not in addition to fee of $5,0OO a:proved in the Board's letter of July 1, 1932. Approved. Telegrams to Mr. Curtiss, Federal Reserve Agent at Boston, 8tating that, subject to the issuance by the Board of a limited voting PeIllit to the "Old Colony Trust Associates”, Boston, Massachusetts, 649 -2- 12/29/33 and to the conditions prescribed in the individual telegrams, the Board approves the applications of the following State banking institutions for membership in the Federal Reserve System and for the apPropriate amount of stock in the Federal Reserve Bank of Boston: "Canton Trust Company", Canton, Massachusetts. "Menotomy Trust Company", Arlington, Massachusetts. "Needham Trust Company", Needham, Massachusetts. "Stoughton Trust Company", Stoughton, Massachusetts. Approved. There was also presented a telegram to Mr. Curtiss, Federal Reserve Agent at Boston, stating that the Board has considered the 4PPlication of the "Old Colony Trust Associates", Boston, Massachusetts, for a voting permit under authority of section 5144 of the Revised Statutes of the United States, as amended, entitling such °rganization to vote the stock which it owns or controls in the fol1"ing banking institutions: Appleton National Bank of Lowell", Lowell, Massachusetts, Concord National Bank of Concord", Concord, Massachusetts, Dedham National Bank", Dedham, Massachusetts, First National Bank of Mansfield", Mansfield, Massachusetts, Lechmere National Bank of Cambridge", Cambridge, Massachusetts, "The National Mount Wollaston Bank of Quincy", Quincy, Massachusetts, "The Second National Bank of Malden", Malden, Massachusetts, "Springfield National Bank", Springfield, Massachusetts, The Union Market National Bank of Watertown", Watertown, Massachusetts, Boulevard Trust Company of Brookline", Brookline, Massachusetts, 'I:Everett Bank and Trust Company", Everett, Massachusetts, "Harvard Trust Company", Cambridge, Massachusetts, r newton Trust Company", Newton, Massachusetts, ,,Winchester chester Trust Company", Winchester, Massachusetts, :ilin Trust Company", Arlington, Massachusetts, ,Canton Trust Company", Canton, Massachusetts* :' ,Neodham Trust Company", Needham, Massachusetts, 'Stoughton Trust Company", Stoughton, Massachusetts, "The "The "The "The "The 650 12/29/33 -3- 8.nd has authorized the issuance of a limited permit to the applicant, subject to the following conditions: "First. Prior to issuance to Applicant of limited voting permit authorized hereunder, there shall be furnished: (1) Evidence satisfactory to you and to counsel for Federal Reserve Bank of Boston that neither Old Colony Trust Company, Boston, Massachusetts, nor The First National Bank of Boston, Boston, Massachusetts, owns or controls, directly or indirectly, majority of stock of any member bank listed after letter 'B' above, or is otherwise affiliated with any such bank in any manner set forth in section 2, subsection (c) of Banking Act of 1933; (2) Evidence satisfactory to you that Monotony Trust Company, Arlington, MassaCanton Trust Company, Canton, Massachusetts, Needham Trust company, Needham, Massachusetts, and Stoughton Trust Company, Stoughton, Massachusetts, respectively, have accepted and/Or satisfied conditions of membership proscribed by Board in its telegrams to you approving membership applications of such banks Co that such banks may properly be admitted to membership in Federal Reserve System simultaneously with or forthwith upon issuance of limited voting permit authorized hereunder; and (3) Statement Of Counsel for Federal Reserve Bark of Boston that agreement required by condition Second hereof is in form satisfactory to him and is valid and binding obligation of Applicant. Second. Prior to issuance to Applicant of limited voting permit authorized hereunder, Applicant shall undertake and agree: (1) That it will not, directly or indirectly, borrow from or otherwise become indebted to, any of its subsidiary or affiliated organizations, for the Purpose of obtaining funds for use in making any contribution or investment in connection with the reorganization or rehabilitation of any such subsidiary or affiliated organization, unless the mritten consent of the Federal Reserve Board is first had and obtained; (2) That it will take such action as may be necessary to consummate or cause to be consummated in accordance with the terms thereof certain plans involving, among other things, a reduction in the capital stock of The First National Bank of Mansfield, Mansfield, Massachusetts, and of The Second National Bank of Malden, LIalden, Massachusetts, respectively, which plans have been heretofore submitted to the Federal Reserve Board by the Comptroller of the Currency in a memorandum dated December 5, 1933, as supplemented by a memorandum dated December 15, 1933, and in a memorandum dated December 20, 1933, and that it will use its best efforts to cause each plan involving an increase in the capital funds of any of its subsidiary banks to be effected in a manner satisfactory to the appropriate supervisory authorities and to the Federal Reserve Agent at the Federal Reserve Bank of Boston; and (3) That all capital funds which may be released or made available under any plan for the recapitalization or rehabilitation of any subsidiary bank Pursuant to a reduction in capital stock of the bank will be used 651 -4- 12/29A3 "for the purpose of eliminating undesirable assets in the bank or of establishing reserves therefor, and that no part of the capital funds so released or made available will be distributed to the shareholders of the bark or of the undersigned in any mannerwhatsoever, and that all assets of each such bank which may be charged off or otherwise eliminated under any such plan will remain the property of the bank and 7/6.11 not be distributed to the stockholders of the bank or of the undersigned or otherwise released in any manner whatsoever." and for the following purposes: "(1) To elect directors of such banks at the annual meetings of shareholders, or at any adjournments thereof, at any time prior to April 1, 1934, and to act thereat upon such natters of a routine nature as are ordinarily acted upon at the annual meetings of such banks. (2) To authorize an increase in the capital funds of any of such banks, at any time prior to July 1, 1934, in accordance with such plan or plans as shall be approved by the appropriate supervisory authorities and by the Federal Reserve Agent at the Federal Reserve Bank of Boston, and to do all such things as may be necessary for this purpose. (3) To authorize a reduction and/Or increase in capital stock, change in number of Shares of stock and/Or change in par value of shares of stock of The First National Bank of Mansfield, Mansfield, Massachusetts, and of The Second National Bank of Malden, Malden, Massachusetts, respectively, and to authorize the issuance by such banks of preferred stock of one or more classes, in such amount Arti of such par value as shall be approved by the Comptroller of the Currency of the United States, all in accordance with such plan or plans as shall be approved by the appropriate supervisory authorities and by the Federal Reserve Agent at the Federal Reserve Bank of Boston, and to make such amendments to the articles of association and certificates of incorporation and/Or bye-laws of the banks as may be necessary for the purposes set forth in this paragraph." Approved. In connection with the above matter there was also presented letter to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In Board First from accordance with your recommendation, the Federal Reserve approves a reduction in the common capital stock of 'The National Bank of Mansfield', Mansfield, Massachusetts, 25O,OOO to 0.00,000, pursuant to a plan which provides 652 -5- WaR/33 "that the bank's capital shall first be increased from $100,000 to $250,000 by the sale at par at $150,000 par value common Fund' stock to be paid for out of the proceeds of a 'Guaranty bank's the that now held by the bank, and which provides also par of $50,000 capital shall be further increased by the sale at CorporaFinance par value preferred stock to the Reconstruction common in tion, and that the funds released by the reduction Fund,' capital stock, together with a portion of the 'Guaranty esundivided profits and reserves, shall be used to eliminate sein ion timated losses in the amount of $75,100 and depreciat as all $114,503, curities in the lower grades in the amount of by amended as 1933, 5, set forth in your memorandum of December 1933. 15, your supplemental memorandum dated December "In considering the plan under which the reduction in Gammon Capital stock is to be effected, it was noted that no provision was made for the elimination of depreciation in securities in the higher grades of approximately $100,595, which amount is sufof ficient to impair the bank's common capital to the extent have you that approximately $31,140. It is assumed, however, this condition in mind and that, whenever it becomes feasible to do so, you will obtain such further corrections as may be practicable." Approved, together with a second letter to the Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The Second National Bank of Malden', Malden, Massachusetts, from 0300,000 to $200,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of $100,000 Par value preferred stock, $50,000 of which it is proposed to sell to the Reconstruction Finance Corporation and $50,000 of Which will be paid for out of the proceeds of a special deposit now held by the bank, and which also provides that the funds released by the reduction in common capital stock and $35,000 of funds from the bank's surplus, undivided profits and/Or reserves shall be used to eliminate estimated losses and depreciation in securities in the lower grades of not less than $135,000, all as set forth in your memorandum of December 20, 1933. "In considering the plan under which the reduction of common capital stock is to be effected it was noted that approximately A %P3,200 of depreciation in securities below the four highest grades is unprovided for, in addition to which there will remain in the bank 458,151 of depreciation in securities in the four highest grades, c41,470 of doubtful assets, and $564,046 of slow assets. It is assumed, however, that you have these conditions in mind end that whenever it becomes feasible to do so you will 653 12/29/33 "obtain such further corrections as may be practicable." Telegrams to Mr. Case, Federal Reserve Agent at New York, Stating that, subject to the conditions prescribed in the individual telegrams and to the issuance by the Board of limited voting permits to the "First National of Elmira Corporation" and the "First National 8an1c 47, Trust Company of Elmira", both of Elmira, New York, the Board aPProves the applications of the "Watkins State Bank", Watkins Glen, Nem York, and "The Bank of Elmira Heights", Elmira Heights, New York, for membership in the Federal Reserve System and for the appropriate lunount of stock in the Federal Reserve Bank of New York. Approved. In connection with the above there was also presented a telegram to Mr. Case, Federal Reserve Agent at New York, stating that the Board has considered the application of the "First Eational Bank 4: Truut Company of Elmira", Elmira, New York, for a voting permit under authority of section 5144 of the Revised Statutes of the United States, 48 amended, entitling such organization to vote the stock which it awns Controls in the following banks: 11:The Bank of Elmira Heights", Elmira Heights, New York, I Watkins State Bank", Watkins Glen, New York, 'The Citizens National Bank of-Waverly", Waverly, New York, "The First National Bank of Horseheads", Horseheads, Now York, troouthside National Bank of Elmira", Elmira, New York, 811d haG authorized the issuance of a limited permit to the applicant, GUbject to the following conditions: "First. Prior to the issuance to the Applicant of the limited voting permit authorized hereunder: (i) There Shall be furnished evidence satisfactory to you that the Applicant has charged off 654 12/29/33 -7- "or otherwise eliminated losses of $266,236.04, and depreciation of (179,956.61 in securities other than those in the four highest grades as classified by a recognized investment service organization regularly engaged in the business of rating or grading securities, all as shown in the report of examination of such bank as of July 8, 1933, by F. R. Peterson, a national bank examiner. (ii). Applicant shall agree: (a) That it will exert its best efforts to make proper corrections of all matters criticized in the report of examination made of the bank as of July 6, 1933, by F. R. Peterson, a national bank examiner, and will do all such things as may be necessary to eliminate all causes of criticism in respect to such matters as soon as it is feasible to do so. (b) That it will use its best efforts to cause proper corrections to be made of all matters criticized in the last report of examination of each of its subsidiary national banks, and in the reports of examination of the two subsidiary State banks to which reference is made in the Federal Reserve Board's telegrams of December 29, 1933, approving the applications of such State banks for menbership, and that it will do all such things as may be necessary to eliminate or cause to be eliminated all causes for criticism in respect to such matters as soon as it is feasible to do so, including the elimination or reduction of loans held by its subsidiary banks which are secured in whole or in part by its capital stock, or the substitution of other adequate security for its stock securing such loans. Second. Simultaneously with the issuance of the limited voting permit authorized hereunder, there shall be issued to First National of Elmira Corporation, Elmira, New York, the limited voting permit authorized in the Board's telegram of this date to the Federal Reserve Agent at the Federal Reserve Bank of New York." and for the following purposes: "(1) 10 elect directors of such banks at annual meetings of Shareholders, or any adjournments thereof, at any time prior to April 1, 1934, and to act at such meetings, or any adjournments thereof, upon such matters of a routine nature as are ordinarily acted upon at the respective annual meetings of such banks. (2) 10 authorize a reduction and increase in capital stock, change in number of shares of stock and/or change in par value of shares of stock of The Citizens National Bank of aaverly, Waverly, New York, ln accordance with a plan which has been submitted to the Federal Reserve Board and which is referred to in the Board's letter to the Comptroller of the Currency of the United States approving such reduction in capital stock. (3) To authorize the amendment of the articles of association, certificate of incorporation trItlfor by-laws of The Citizens National Bank of 'Waverly, Waverly, 'low York, and to do such other things as may be necessary, in order to consummate the plan referred to in paragraph (2) above." and a second telegram to Ni. Case, Federal Reserve Agent at New York, 655 12/29/33 OMB 0.0 stating that the Board has considered the application of the "First National of Elmira Corporation", Elmira, New York, for a voting permit Under authority of section 5144 of the Revised Statutes of the bnited States, as amended, entitling such organization to vote the stock which it owns or controls in the following banks: "The Bank of Elmira Heights", Elmira Heights, New York. "Watkins State Dank", Watkins Glen, New York, "The Citizens National Bank of Waverly", Waverly, Now York, "The First National Bank of Horseheads", Horseheads, New York, "Southside National Bank of Elmira", Elmira, New York, 411d has authorized the issuance of a limited permit to the applicant, subject to the following conditions: "First. Prior to the issuance of the limited voting permit to the Applicant authorized hereunder, there shall be furnished (1) evidence satisfactory to you (a) that the Bank of Elmira Heights, Elmira Heights, Now York, has accepted and/Or satisfied the conditions of membership prescribed by the Federal Reserve Board in its telegram of this date so that such bank may properly be admitted to membership in the System simultaneously with, or forthwith upon, the issuance of the voting permit authorized hereunder; (b) that the Watkins State Bank, Watkins Glen, New York, has accepted and/Or satisfied the conditions of membership prescribed by the Federal Reserve Board in its telegram of this date so that such bank may properly be admitted to membership in the System simultaneously with, or forthwith upon, the issuance of the voting permit authorized hereunder; (c) that The First National Bank of Horseheads, Horseheads, New York, has charged off or otherwise eliminated losses of 021,683 in loans, of 03,624 in defaulted bonds and stocks, and of 5,000 in its banking house, and net dePreciation of 021,840 in securities other than those in the four highest grades as classified by a recognized investment service organization regularly engaged in the business of rating or grad1117 securities, all as shon in the report of examination of such bank made as of July 25, 1933, by Thomas J. O'Connor, a national bark examiner; and (d) that the Southside National Bank of Elmira, Elmira, New York, has charged off or otherwise eliminated losses of 325 in loans, and of 0'5,258 in bonds and securities, a shortage of 92, and net depreciation of :21,373 in securities other -1-lan those in the four highest grades as classified by a recognized Investment service organization regularly engaged in the business Of rating or grading securities, all as shown in the report of examination of such bank as of July 8, 1933, by Adam Wetzel, a 656 12/29/33 -0-- "national bank examiner. (2). Assurances satisfactory to you (a) that a certain plan involving a reduction and increase in the capital stock of The Citizens National Bank of Waverly, Waverly, New York, which plan has been heretofore submitted to the Federal Reserve Board, has been or forthwith will be duly consummated in accordance with the terms thereof; (b) that each national bnrk which is a subsidiary of the Applicant will exert its best efforts to make proper corrections of all matters criticised in the last report of examination of the bank made by a national bank examiner, and will do all such things as may be necessary to eliminate all causes for criticism in respect to on as it is feasible to do so; and (c) that such matters as the banks which are subsidiaries of the Applicant will eliminate, or reduce materially according to a systematic schedule, or obtain other adequate security therefor, the number and amount of loans secured in whole or in part by capital stock of the First National Bank and Trust Company of Elmira, Elmira, New York. 3. Statement of Counsel for the Federal Reserve Bank of New York that the agreement required by condition Second hereof is in form satisfactory to him, and is the valid and binding obligation of the Applicant in accordance with its terms. Second. Prior to the issuance of the limited voting permit to the Applicant authorized hereunder, it shall agree in substance (1) that it will not, directly or indirectly, borrow from, or otherwise become indebted to, any of its subsidiaries or affiliated organizations, for the purpose of obtaining funds for use in making any contribution or investment in connection with the reorganization or rehabilitation of any such subsidiary or affiliated organization; and (2) that it will use its best efforts to cause proper corrections to be made of the matters criticised in the last report of examination of each of its subsidiary national banks, and in the reports of examination of the two subsidiary State banks to which reference is made in the Federal Reserve Board's telegrams of December 29, 1933, approving the applications of such State banks for membership, and that it will do all such things as may be necessary to eliminate or cause to be eliminated all causes for criticism in respect to such matters as soon as it is feasible to do so, including the elimination or reduction of loans held by its subsidiary banks which are secured in whole or in part by capital stock of the First National Bnnk and Trust Company of Elmira, Elmira, New York, or the substitution of other adequate security for stock of the First National Bank and Trust Company of Elmira securing such loans. Third. Simultaneously with the issuance of the limited voting permit authorized hereunder, there shall be issued to the First National Bank and Trust Company of Elmira, Elmira, New York, the limited voting Permit authorized in the Board's telegram of this date to the Federal Reserve Agent at the Federal Reserve Bank of New York." 44d for the following purposes: 657 12/29/33 -10- "(1) To elect directors of such banks at annual neetings of shareholders, or any adjournments thereof, at any time prior to April 1, 1934, and to act at such neetins, or any adjournments thereof, upon such matters of a routine nature as are ordinarily acted upon at the respective annual meetings of such banks. (2) To authorize a reduction and increase in capital stock, change in number of shares of stock and/or change in par value of shares of stock of The Citizens National Bank of Waverly, Naverly, New York, in accordance with a plan which has been submitted to the Federal Reserve Board and which is referred to in the Board's letter to the Comptroller of the Currency of the United States approving such reduction in capital stock. (3) To authorize the amendment of the articles of association, certificate of incorporation and/Or by-laws of The Citizens National Bank of Waverly, necessary, viaverly, New York, and to do such other things as may ln order to consummate the plan referred to in paragraph (2) above." Approved, together with a letter to the Comptroller of the Currency reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The ,91tizens National Bank of Waverly', Waverly, New York, from 0-50.000 to $100,000, pursuant to a plan which provides that the bank's capital shall first be increased from $100,000 to $150,000 by the sale at par of $50,000 par value common stock to the bank's present stockholders or others, and that the funds released by the capital reduction shall be used to eliminate esta.mated losses end securities depreciation, all as set forth in Your memorandum of November 8, 1933. "It is noted from your memorandum that you deem it best not to require more than a ,:50,000 charge off in assets at this time, and that the question of further charge offs be deferred until the next examination is made by one of your examiners." Telegrams to Lir. Walsh, Federal Reserve Agent at Dallas, stat- rIg that, subject to the issuance by the Board of limited voting perto the "Equitable Securities Company", and the "Uarcantile 'Tatiana' Bank at Dallas", both of Dallas, Texas, and to the conditions Pr6aoribed in the individual telegrams, the Board approves the appliCati_ u4S of the following State banks for membership in the Federal ReSystem and for the appropriate amount of stock in the Federal 658 12/29/33 -1 1- Reserve Bank of Dallas: "Farmers & Merchants State Bank", Carrollton, Texas. "Farmers & Merchants State Bank", Ladonia, Texas. "The Farmers & Merchants State Bank of Wylie", Wylie, Texas. "The First State Bank", Celina, Texas. Approved. In connection with the above there were presented telegrams to Mr. Federal Reserve Agent at Dallas, stating that the Board has considered the applications of the "Equitable Securities Company" and the "Mercantile National Bank at Dallas", both of Dallas, Texas, for votily; permits under authority of section 5144 of the Revised Statutes of the United States, as amended, entitling such organizations to vote the stock which they own or control in the following banks: "Farmers & Merchants State Bank", Carrollton, Texas, ,' "The First State Bank", Celina, Texas, "Farmers & Merchants State Bank", Ladonia, Texas, "Tho Farmers Merchants State Bank of Wylie", Wylie, Texas, and has authorized the issuance of a limited permit to each of the apPlicants, subject to the following condition: "i'rier to issuance of such limited votinp, permit, evidence satisfactory to you shall be furnished that said banks, respectively, have accepted and/or satisfied conditions of membership Prescribed by Board in its telegrams to you approving membershiP 4PPlieations of said banks so that said banks may properly be admitted to membership in Federal Reserve System simultaneously uith, or forthwith upon, issuance of such limited voting permit." 4' 11(1 for the following purposes: "To olwt directors of such banks at the annual meetinrs of Shareholders, or any adjournments thereof, at any time prior to April 1, 1934, and to act at such meetins, or any adjournments thereof, upon such matters of a routine nature as are ordinarily acted upon at the annual meetings of such banks." Approved. 659 12/29/33 -12- Telegrams to the respective Federal reserve agents stating that, subject to the conditions prescribed in the individual telegrams, the Board approves the applications of the following State banking in8titutions for membership in the Federal Reserve System and for the aPPropriate amount of stock in the Federal reserve bank of the district in which the applicant is located: Federal Reserve Bank Applicant Bank "Union Trust Company of Springfield", Springfield, Massachusetts. "Citizens Bank and Trust Company", Mobridge, South Dakota. "Lusk State Bank", Lusk, Tiyoming. Boston Minneapolis Kansas City Approved. Telegram to Mr. Williams, Federal Reserve Agent at Cleveland, l eading as follows: ' "Rotel December 28 regarding application The Licking County Bank, Newark, Ohio, Board amends condition numbered nineteen to read as follows: '19. Prior to admission of such bank to membership, BancOhio Corporation shall execute a binding agreement in form and substance satisfactory to the Federal Reserve Agent at the Federal Reserve Bank of Cleveland and Counsel for the Federal Reserve Bank of Cleveland whereby BancOhio Corporation agrees that its deposit of $445,000 shall be left on deposit with The Licking County Bank, Newark, Ohio, and shall not be withdrawn in whole or in part until such bank's liquid position is improved by the sale of nonliquid assets, in which event an equivalent amount will be made available for withdrawal by BancOhio Corporation, and such withdrawals from the account shall be made only upon the approval of the Federal Reserve Agent at the Federal Reserve Bank of Cleveland' Under the revised condition the bank's liquid position is to be improved by the sale of nonliquid assets and the sale of prime mortgages only shall not be considered grounds for releasing a corresponding amount of the balance. The bank cannot be considered to be in a satisfactory liquid condition until the excessively large amount of statutory bad debts has been very materially 660 12/29/33 -13- "reduced through sale or reinstatement of such mortgages into bankable condition." Approved. Telegram to Mr. Curtiss, Federal Reserve Agent at Boston, stating that the Board has considered the application of the "Wareham Rational Corporation", Wareham, Massachusetts, for a voting permit under authority of section 5144 of the Revised Statutes of the United States, as amended, entitling such organization to vote the stock Ilhich it awns or controls in "The Buzzards Bay National Bank", Buzzards Bay, Massachusetts, and has authorized the issuance of a limited Permit to the applicant, subject to the following condition: "Prior to issuance of such limited voting permit, applicant shall deliver to you in triplicate certified copies of its articles of organization with all amendments to date." "Ind for the following purposes: "To elect directors of such bank at the annual meeting of shareholders, or at any adjournment thereof, at any time prior to April 1, 1934, and to act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meeting of such bank." Approved. Telegram to Mr. Curtiss, Federal Reserve Agent at Boston, ztating that the Board has considered the application of the "Rhode Island Hospital Trust Company", Providence, Rhode Island, for a votlit Permit under authority of section 5144 of the Revised Statutes of the United States, as anonded, entitling such organization to vote the stock which it awns or controls in the "Rhode Island Hospital National Bank of Providence", Providence, Rhode Island, and has authorthe issuance of a limited permit to the applicant for the following 12/29/33 661 -14- Purposes: "(1) To amend the articles of association of such bank at the special meeting of shareholders on January 2, 1934, or at any adjournment thereof during the month of January, 1934, in the respects set forth in the secretary's notice of such meeting to the shareholders bearing date of December 27, 1933. (2) To elect directors of such bank at the Annual meeting of shareholders, or at any adjournment thereof, at any time prior to April 1, 1934, and to act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meeting of such bank." Approved. Telegram to Mr. Stevens, Federal Reserve Agent at Chicaco, stating that the Board has considered the application of the "Evanston Bancorporation", Evanston, Illinois, for a voting permit under authority of section 5144 of the Revised Statutes of the United States, as ' 6:mended, entitling such organization to vote the stock which it owns or controls in the "Evanston Trust & Savings Bank", Evanston, Illinois. :1L1id has authorized the issuance of a limited permit to the applicant tor the following purposes: "(1) To elect directors of such bank at the annual meeting of shareholders, or at any adjournment thereof, at any time prior to April 1, 1934, and to act thereat upon such natters of a routine nature as are ordinarily acted upon at the annual meeting of such bank; (2) Within ninety (90) days from the date hereof to take such action as may be necessary or desirable to effect an increase in the capital funds of such bank in such amount and in such manner as may be approved by the authorities in the State of Illinois having supervision of such bank, and by the Federal Reserve Agent at the Federal Reserve Bank of Chicago." The telegram also requested that the agent call to the attention of ton Bancorporation that before issuing to it a general permit to Ir°te the shares of stock which it awns or controls of Evanston Trust & v -Lug.s. Bank, the Federal Reserve Board will, in considering the probable wifect of the granting of such permit upon the affairs of such bank, 662 12/29/33 -15- take into consideration the character of its management as returned or installed at the next election of directors. Approved. Telegram to Yr. Stevens, Federal Reserve Agent at Chicago, stating that the Board has considered the application of the "American Holding Corporation", Chicago, Illinois, for a voting permit under authority c't section 5144 of the Revised Statutes of the United States, as amended, entitling such organization to vote the stock thich it owls or controls in the "A/nerican National Bank and Trust Company of Chicago", Chicago, Illinois, and has authorized the issuance of a limited permit to the apPlicant for the following purposes: "(1) To elect directors of such bank at the annual meeting of shareholders, or at any adjournment thereof, at any tive prior to April 1, 1934, and to act at such meeting, or at any adjournment thereof, upon such natters of a routine nature as are ordinarily acted upon at the annual meeting of such bank. (2) To authorize the issuance by such bank of common stock and/or preferred stock of one or more classes in such amounts and with such par values as shall be approved by the Comptroller of the Currency and the Federal Reserve Agent at the Federal Reserve Bank of Chicago, and to make such amendments to its articles of association as may be necessary for this purpose." Approved. Telegram to Mr. Wood, Federal Reserve Agent at St. Louis, atItting that the Board has considered the application of the "Trustees 1111der Trust Agreement Dated January 31, 1919, as amended July 30, 1920, and January 26, 1923, with Reference to Stocks in The Citizens 1-1114141tiona1 Bank of Louisville and Fidelity and Columbia Trust Com- DELIOL both of Louisville, Kentucky" for a voting permit under authority , ,,ectIon 5144 of the Revised Statutes of the United States, as amended, entit, ''ing such organization to vote the stock which it awns or controls 41 663 12/294/33 -16- in "The Citizens Union National Bank of Louisville", Louisville, Kenand has authorized the issuance of a limited permit to the applicant, subject to the following condition: "Prior to the issuance of such permit applicant shall furnish, or shall agree to furnish, to you, in triplicate, as promptly as possible, (1) Exhibit N FRB Form P4 duly executed by Applicant and consented to by Fidelity and Columbia Trust Company, Louisville, Kentucky, Louisville Joint Stock Land Bank, Louisville, Kentucky; Union Joint Stock Land Bank, Louisville, Kentucky; Jefferson Property Company, Louisville, Kentucky; Fidelity and Columbia Insurance Company, Louisville, Kentucky; and The Citizens Union National Bark of Louisville, Louisville, Kentucky, and (2) a properly executed certificate of its Secretary on FRB Form P2 shoving the date of the meeting at which Applicant authorized the execution and delivery of its application for voting permit." 4114 for the following purposes: "To elect directors of such bank at the annual meeting of shareholders, or at any adjournment thereof, at any time prior to April 1, 1934, and to act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meeting of such bank." Approved. Telegram to Er. Peyton, Federal Reserve Agent at Minneapolis, atating that the Board has considered the application of the "First Lank Stock Corporation", Minneapolis, Minnesota, for a voting permit under aUthority of section 5144 of the Revised Statutes of the United States, Ets Or emended, entitling such organization to vote the stock which it owns controls in the following banking institutions: l "Aberdeen National Bank & Trust Company", Aberdeen, South Dakota, "Freeborn County National Bank & Trust Company of Albert Lea", Albert Lea, Minnesota, "iho armers National Bank in Alexandria", Alexandria, Minnesota, "The First National Bank of Austin", Austin, Minnesota, "the National Bank of Benson", Benson, Minnesota, :171:he Miffland National Bank of Billings", Billings, Montana, "The First National Bank of Bismarck", Bismarck, North Dakota, "The First National Bank of Bison", Bison, South Dakota, e t First National Bank of Blooming Prairie", Blooming Prairie, Minnesota, "First & Farmers National Bank of Blue Earth", Blue Earth, Linnesota, 664 12/29/33 -17- "The First National Bank of Bowbells", Bowbells, North Dakota, "The Commercial National Bank of Bozeman", Bozeman, Montana, "The First National Bank of Brainerd", Brainerd, Minnesota, "Metals Bank and Trust Company", Butte, Montana, "The First National Bank of Calumet", Calumet, Michigan, "The First National Bank of Cando", Cando, North Dakota, "The Merchants National Bank of Cavalier", Cavalier, North Dakota, "The Clark County National Bank of Clark", Clark, South Dakota, "The First National Bank in Cooperstown", Cooperstown, North Dakota "The Minnesota National Bank of East Grand Forks", East Grand Forks, Minnesota, "The First National Bark of Fairmont", Fairmont, Minnesota, "The Merchants National Bank and Trust Company of Fargo", Fargo, North Dakota, "Potter County National Bank of Gettysburg", Gettysburg, South Dakota, "First National Bank in Glen Ullin", Glen Ullin, North Dakota, "The First National Bank of Graceville", Graceville, Minnesota, "Red River National Bank of Grand Forks", Grand Forks, North Dakota, "The First National Bank of Great Falls", Great Falls, Montana, "The First National Bank of Hancock", Hancock, Michigan, "The First National Bank of Harvey", Harvey, North Dakota, "The Montana National Bank of Havre' Havre, Montana, The First National Bank of Hebron", Hebron, North Dakota, "First National Bank & Trust Company of Helena", Helena, Montana, "The First National Bank of Heron Lake", Heron Lake, Minnesota, "The First National Bank of Highmore", Highmore, South Dakota, "The Security National Bark of Huron", Huron, South Dakota, "The Merchants & Miners National Bank of Ironwood", Ironwood, Michigan, It Farmers & Merchants National Bank in Ivanhoe", Ivanhoe, Minnesota, The National Bank and Trust Company of Jamestown", Jamestown, North Dakota, "The First National Bank of Jordan", Jordan, Montana, "The First National Bank of Laurium", Laurium, Michigan, ::First National Bank in Lemmon!', Lemon, South Dakota, The First National Bank of Leola", Leola, South Dakota, 'The National Bank of Lewistown", Lewistown, Montana, „First National Bank in Lidgervlood", Lidgerwood, North Dakota, The American National Bank in Little Falls", Little Falls, Minnesota, The National Park Bank in Livingston", Livingston, Montana, :1 The Luverne National folni.-", Luverne, Minnesota, First National Bank & Trust Company of Mankato", Mankato, Minnesota, "First National Bank in Liles City", Miles City, Montana, ,,The First National Berk of Miller", Miller, South Dakota, 'Bloomington-Lake National Bank of Minneapolis", Minneapolis, Minnesota, 665 12/29/33 -18- "First National Bank and Trust Company of Minneapolis", Minneapolis, Minnesota, "Minnehaha National Bank of Minneapolis", Minneapolis, Minnesota, "The Farmers and Merchants National Bank of Minneota", Minneota, Minnesota, "The Union National Bank and Trust Company in Minot", Minot, North Dakota, "The Western Montana National Bank of Missoula", Missoula, Montana, "The First National Bank of Neche", Neche, North Dakota, "The First National Bank of New England", New England, North Dakota, "The First National Bank of New Rockford", New Rockford, North Dakota, "Northfield National Bank and Trust Company", Northfield, Minnesota, "The First National Bank of Owatonna", Owatonna, Minnesota, "The First National Bark of Park River", Park River, North Dakota, "First National Bank in*Paynesville", Paynesville, Minnesota, ' 1'Th° Pipestone National Bank", Pipestone, Minnesota, ,,The First National Bank of Princeton", Princeton, Minnesota, The Red Wing National Bank and Trust Company", Red Wing, Minnesota, ,1 The First National Bank of Rochester", Rochester, Minnesota, _The First National Bank of Rolla", Rolla, North Dakota, The First National Bank of Saint Paul", Saint Paul, Minnesota: "The Merchants National Bank or Sauk Centre", Sauk Centre, Minnesota, 11 Citizens National Bank and Trust Company of Sioux Falls", Sioux Falls, South Dakota, The First National Bank of Spring Valley", Spring Valley, Minnesota, First National bank of Valley City", Valley City, North Dakota, "The First National Bank and Trust Company of Vermilion", Vermilion, South Dakota, The Farmers National Bank of Waseca", Waseca, Minnesota, ",First National Bank in Wheaton", Wheaton, Minnesota, 'Ithe Security National Bank of Willmar", Willmar, Minnesota, ihe First National Bank of Windom", Windom, Minnesota, a.rta tor has authorized the issuance of a limited permit to the applicant the following purposes: "At any time prior to April 1, 1934: (1) To elect directors Of such banks at the respective annual meetings of shareholders, or at any adjournment thereof, and to act thereat upon such matters of a routine nature as are ordinarily acted upon at the respective annual meetings of such banks; (2) To authorize a reduct"n in capital stock, change in number of shares of stock and/or 666 12/29/33 -19- "change in par value of shares of stock of any of such banks subject to the approval of the Federal Reserve Agent at the Federal Reserve Bank of Minneapolis and the appropriate supervisory authorities including the Federal Reserve Board if its approval is required by law or otherwise; (3) To authorize the issuance by any of such banks of capital notes, debentures or preferred stock subject to the approval of the Federal Reserve Agent at the Federal Reserve Bank of Minneapolis and, if required by law, of the Comptroller of the Currency or in the case of Metals Bank and Trust Company, Butte, Montana, of the proper State bprking authority; (4) To amend the articles of association, certificate of incorporation and/or by—laws of any of such bRnks in order to effect the changes set forth in (2) and (3) above; (5) To arend the articles of association, certificate of incorporation and/or by-laws of any of such banks in order that the number of directors of such banks may comply with existing provisions of lawl (6) To change the names, in accordance with all relevant provisions of law, of the following banks: 'Freeborn County 'rational Bank & Trust Company of Albert Lea', Albert Lea, Minnesota, 'The National Bank and Trust Company of Jamestown', Jamestown, North Dakota, 'First National Bank 64 Trust Company of Mankato', Mankato, Minnesota, 'The Union National Bank and Trust Company in Minot', Einot, North Dakota, 'Northfield National Bank and Trust Company', Northfield, Minnesota, and 'The First National Bank and Trust Company of Vermilion', Vermilion, South Dakota; and (7) To consummate the liquidation of 'The First National Bank of Jordan', Jordan, Montana and 'The First National Bank of Ree Heights', Roe Heights, South Dakota." Approved. Telegram to Lir. Newton, Federal Reserve Agent at San Francisco, 8tating that the Board has considered the application of the "Peoples Corporation,,, Seattle, Washington, for a voting permit under authority or section 5144 of the Revised Statutes of the United States, as 4Ine11ded, entitling such organization to vote the stock which it orals °I. controls in the "Peoples Bank and Trust Company", Seattle, Washingand has authorized the issuance of a limited permit to the appliIlts subject to the following condition: "Prior to the issuance of such permit applicant shall agree that within 90 days from the date of the issuance of the limited voting permit aforesaid, the capital funds of Peoples Bank and 667 12/29/33 -20- "Trust Company will be increased, pursuant to appropriate action, through contributions by stockholders, sale of preferred stock, or otherwise, in such amount as may be approved by the authorities in the State of Washington having supervision of such bank and by the Federal Reserve Agent at the Federal Reserve Bank of San Francisco." and for the following purposes: "(1) To elect directors of such bank at the annual meeting of shareholders, or at any adjournment thereof, at any time prier to April 1, 1934, and to act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meeting of such bank; and (2) within 90 days from the date hereof, to take such action as may be necessary or desirable to effect an increase in the capital funds of Peoples Bank and Trust Company in such amount and in such manner as may be approved by the authorities in the State of Washington having supervision of such bank and by the Federal Reserve Agent at the Federal Reserve Bank of San Francisco." Ihe telegram stated also that the agent should call to the attention of the Peoples Corporation the fact that no permit is granted to it to vote the shares of stock which it awns or controls of The First National 'lank of Renton, Renton, Washington, or of that bank and the Peoples 44k and Trust Company in connection with the absorption by the latter Of the former and the operation of the office of the former as a branch Of the latter; that such matter is being considered with the Comptroller °t the Currency; and that further advice will be given regarding the Etane Approved. Telegrams to Mr. Newton, Federal Reserve Agent at San Francisco, itig that the Board has considered the applications of the "Securityat Company" and the "Los Angeles Trust & Safe Deposit Company", both Of LOs Angeles, California, for voting permits under authority of sectign. 5144 of the Revised Statutes of the United States, as amended, 668 12/203 -21- entitling such organizations to vote the stock which they awn or control in "The First National Bank of El Segundo" El Segundo, California, ahd has authorized the issuance of a limited permit to each of the apPlicants for the purpose of effecting the liquidation of The First National Bank of El Segundo. Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of New Bedford', New Bedford, Massachusetts, from $500,000 to ,,250,000, pursuant to a plan which provides that the bank's capital shall be increased by sale at par of $550,000 par value Class 'A' preferred stock to the Reconstruction Finance Corporation and the sale at par of 200,000 par value Class 'B' preferred stock to local interests, and that the funds released by the reduction in common capital stock, together With the bank's surplus and undivided profits, shall be used to eliminate estimated losses and depreciation in securities in the lower grades in the amount of at least $390,000, all as set forth in your memorandum of December 22, 1933. "In considering the plan under which the reduction of common capital stock is to be effected, it was noted that no provision was made for the elimination of depreciation in securities aggrePting $127,157, which will impair the bank's common capital stock by approximately that amount. There also will remain in the bank doubtful items aggregating $585,723, slaw items aggregating a/450,708, and a heavy investment in banking house, furniture and fixtures and other real estate. It is assumed, however, that You have these conditions in mind and that whenever it becomes feasible to do so, you will obtain such further corrections as may be practicable." Approved. Letter to jr. O'Connor, Comptroller of the Currency, reading 48 follows: , "In accordance with your recommendation, the Federal Reserve cl!.rd approves a reduction in the common capital stock of the Niagara County National Bank & Trust Company', Lockport, New York, f 669 12/29/33 "from $800,000 to $500,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of 200,000 par value preferred stock to the Reconstruction Finance Corporation and/or others and that the funds released by the reduction in common capital stock, together with a portion of the surplus and undivided profits account, shall be used to eliminate substandard assets and depreciation in lower grade securities in the amount of approximately $601,936, all as set forth in your memorandum of December 23, 1933." Approved. Letter to Ur. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The Manufacturers National Bank of Troy', Troy, New York, from $1,500,000 to 41,000,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of $1,000,000 par value preferred stock to the Reconstruction Fingnce Corporation and/or others, and that the funds released by the reduction in common capital stock, together with the bank's surplus and a portion of the undivided profits shall be used to eliminate substandard assets and depreciation in lower grade securities in the amount of approximately $2,095,326, all as set forth in your memorandum of December 22, 1933." Approved. Letter to Mr. Case, Federal Reserve Agent at New York, reading as follows: "Reference is made to Assistant Federal Reserve Agent Dillistin's letter of December 18, 1933, transmitting the application of the 'Trade Bank of New York', New York, New York, for permission to reduce its common capital stock from 4660,000 to 4330,000 as part of a plan which also provides for the sale at per of 330,000 of capital notes to the Reconstruction Firnnce Corporation and/or others and the use of the released capital funds in eliminating questionable assets. "In view of the recommendation of your Committee, and the corrections to be made in the bank's condition as set forth in the information submitted, the Board approves the application of the Trade Bank of New York, New York, New York, for permission to reduce its common capital from 4660,000 to 4330,000 subject to the following conditions: "1. That prior to the time such reduction in capital is 670 12/29/33 -23- "effected the bank's capital shall be increased by the sale at par of $330,000 par value capital notes to the Reconstruction Finance Corporation and/or others. "2. That the bank will maintain an amount of paid-up and unimpaired capital and unimpaired surplus of not less than one-tenth of the average amount of its aggregate deposit liabilities, and in no event shall the aggregate of the common capital stock and capital notes be reduced below $500,000, without the consent of the Federal Reserve Board. When and if the aggregate amount of common capital stock and capital notes equals 0500,000 no further reduction in the amount of capital notes outstanding shall be made without a corresponding increase in common capital stock. In determining the average amount of aggregate deposit liabilities the period of twelve months ending on the thirtieth day of November in each year shall be used. "3. That none of the funds released by the reduction in common capital be returned to shareholders but that such released capital shall be used to eliminate questionable assets in the amount of $330,000. "4. That the Directors' Guarantee, secured by collateral with a value at this time of approximately $98,000, continue in full force and effect. "5. That the transaction has the approval of the New York State Banking Department. "6. That your counsel has considered the case and is satisfied as to its legal aspects. "It is noted that the plan does not provide for the elimination of all the losses set up by the State examiner, and it is assumed that your office will request that this be done as soon as it is Possible to do so." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading 48 follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of Morris', Morris, Illinois, from $125,000 to 475,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of 450,000 preferred stock to the Reconstruction Finance Corporation and that the funds released by the reduction in common capital stock shall be used to eliminate substandard assets and to increase the surplus of the bank, all as set forth in your memorandum of December 23, 1933." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading 671 12/29/.33 -24- as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The State National Bpnk of Texarkana', Texarkana, Arkansas, from $400,000 to $200,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of :;250,000 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock shall be used to eliminate substandard assets and depreciation in investmant securities, all as set forth in your memorandum of December 27, 1933." Approved. Letter to Er. O'Connor, Comptroller of the Currency, reading us follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of Granbury', Granbury, Texas, from 41C0,000 to 450,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of $50,000 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock, together with a portion of the bank's surplus and undivided profits, shall be used to eliminate substandard assets and securities depreciation in the amount of approximately ,41,042, all as set forth in your letter of December 27, 1933." Approved. Letter to Er. O'Connor, Comptroller of the Currency, reading as follows: 1 "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The Calistoga National Bank', Calistoga, California, from $75,000 to $25,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of $50,000 par value Preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock shall be used to eliminate approximately 449,163 of substandard assets and securities depreciation, and to increase the bank's undivided profits account by approximately 4837, all as sot forth in your letter of December 27, 1933." Approved. 672 12/29/33 -25- Letter to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of San Dimas', an Dimas, California, from 50,000 to ',:25,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of 25,000 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock, together with approximately 41,619 from the bank's surplus and undivided profits, shall be used to eliminate substandard assets and securities depreciation in the amount of approximately ,j56,619, all as set forth in your letter of December 26, 1933." Approved. Letter to Er. O'Connor, Comptroller of the Currency, reading as follows: 'In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of Orange', Orange, California, from $300,000 to $200,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of c)50,000 par value preferred stock to the Reconstruction Finance Corporation, and that; the funds released by the reduction in common capital stock, together with approximately 4)7,481 from undivided profits, shall be used to eliminate substandard assets and securities depreciation in the amount of approximately .107,481, all as set forth in your letter of December 26, 1933." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of Enumclaw', Enumclaw, -4ashington, from Na00,000 to ,50,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of (g0,000 Par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock, together with 'p16,000 from the bank's surplus, undivided profits mad reserves, shall be used to eliminate 673 12/29/33 -26- "securities depreciation of approximately 6,000, all as set forth in your letter of December 27, 1933." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of he First National Bank of Toppenish', Toppenish, Washington, from :.;50,000 to 40,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of 20,000 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock shall be used to eliminate substandard assets and securities depreciation in the amount of approximately $18,000 and to establish a surplus account of approximately ;2,000, all as set forth in your letter or December 27, 1933." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading an follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The ommercial National Bank of Hillsboro', Hillsboro, Oregon, from )75,C00 to 47,500, pursuant to a plan which provides that the bank's capital shall be increased by the sale at par of %;37,500 par value preferred stock to the Reconstruction Finance Corporation, and that the funds released by the reduction in common capital stock, together with approximately ,i15,661 from the surplus and undivided profit accounts, shall be used to eliminate substandard assets and securities depreciation in the amount of approximately 013,161, all as set forth in your letter of December 26, 1933. "Since the remaining securities depreciation of 36,051, attention to which is called in your letter, is sufficient to impair the common capital stock, it is assumed that whenever it becomes feasible to do so you will obtain such further corrections as may be practicable." Approved. Letter to 1,:r. O'Connor, Comptroller of the Currency, reading fOlitYMI 674 12/29/33 -27- "Receipt is acknowledged of your letter of December 27, 1933, in regard to the proposed reduction and increase in capital of the First National Trust and Savings Bank of San Diego, San Diego, California, which was approved by the Board December 9, 1933. "It is noted that your examiner has advised that it will be impossible for the bank to meet the condition numbered two, which reads as follows: 'That the shareholders or others will make a voluntary contribution of $500,000 in addition to the write-down of $500,000 in common capital, and that no part of it shall have come from the sale or liquidation of unacceptable assets "In accordance with your recommendation, the Board consents to the amendment of the foregoing condition, to read as follows: 'That the shareholders and/or others will purchase for cash assets aggregating ;?300,000, such assets to be selected by a national bank examiner and an examiner of the Reconstruction Finance Corporation; and that earnings from September to December 31, 1933 in amount of ,200,000 will be used to charge off a like amount of undesirable assets, but to remain the property of the bank." Approved. Letter to Mr. O'Connor, Comptroller of the Currency, reading as follows: "Receipt is acknowledged of your letter of December 27, 1933, in regard to the proposed reduction and increase in capital of the Commercial National Bank, Lakeview, Oregon, wherein you advise that the Reconstruction Finance Corporation approved the Purchase of only 450,000 of preferred stock from that bill* instead of 4100,000 as contemplated in the plan which was approved by the Board on December 15, 1933. "In view of the fact that the bank will still have ample capital in relation to its deposits, the Board offers no objection to the reduced amount of preferred stock, upon the understanding that the other provisions of the plan previously approved remain unchanged." Approved. Letter to "The Mansfield Savings Bank and Trust Company", Liansfield, Ohio, reading as follows: . "This is to advise you that, effective if and when The Mansfield Savings Bank and Trust Company, Mansfield, Ohio, is 675 -28- 12/29/33 "converted into a national banking association and is authorized by the Comptroller of the Currency to commence business as The Mansfield Savings Trust National Bank, the Federal Reserve Board approves the application filed by your bank on behalf of such national bank for permission to act, when not in contravention of State or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, or in any other fiduciary capacity in which State banks: trust companies or other corporations which come into competition with national banks are permitted to act under the lams of the State of Ohio, the exercise of all such rights to be subject to the provisions of the Federal Reserve Act and the regulations of the Federal Reserve Board. "After the conversion of The Mansfield Savings Bank and Trust Company into The Mansfield Savings Trust National Bank becomes effective and the Comptroller of the Currency authorizes the national bank to commence business, the board of directors of the latter bank should adopt a resolution ratifying the action taken on its behalf by your bank in making application for permission to exercise trust powers, and it is requested that a certified copy of the resolution so adopted be forwarded to the Federal Reserve Board for its records as soon as possible. Mien a copy of such resolution has been received by the Board, a formal certificate covering the right of The Mansfield Savings Trust National Bank to exercise trust powers will be forwarded to it." Approved. Telegraphic reply to a telegram dated December 28, 1933, from Hamilton, Governor of the Federal Reserve Bank of Kansas City; the reply reading as follows* "Contents of your telegram regarding service charge on items handled by reserve city banks for country correspondents noted. This matter has received consideration but Board feels that decision as to whether and to what extent system of service charges should be adopted by Federal Reserve banks should be deferred for time being." Approved. Reply to a letter dated December 15, 1933, from Mr. Stevens: Federal Reserve Agent at Chicago; the reply reading as follows: "Reference is made to your letter of December 15, with which you inclosed a copy of a letter from Mr. James F. Toy of Sioux City, Iowa. It appears from Mr. Toy's letter that he is not a Of 12/29/33 -29- "director or officer of the Toy National Bank but that he is an officer and director of ten other national banks, all of which make loans secured by bonds, and that he is interested in seven State banks. The information contained in his letter and in your letter regarding this situation has been noted with interest by the Board. "It seems clear that Mr. Toy's directorates will come within the provisions of section 8(a) of the Clayton Act and, as you know, the authority of the Federal Reserve Board to issue permits covering such directorates is prescribed by the provisions of section 8 of the Clayton Act, -Much limit to three the number of banks which may be covered by such permits. The Board has no authority to modify or waive the provisions of section 8(a) or to grant a permit covering a greater number of banks than the maximum of three provided for by section 8. "In the aircumstances, the Board regrets that it is not in a position to offer any suggestions as to the course of action which Mr. Toy should pursue." Approved. Thereupon the meeting adjourned. 1,,Lt,17 Secretary.
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