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24te) , A meeting of the Board of Governors of the Federal Reserve SYsten was held in Washington on Monday, February 14, 1944, at 3:30 P.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Pecteral Reserve System held on February 12, 1944, were approved unani1110'1184 . It was reported that telephone advice had just been received —341r. Creighton, Chairman of the Federal Reserve Bank of Boston, that at the regular meeting of the Bank's board of directors today llnanitilous action was taken, subject to approval by the Board of Gov- On the following matters which had been the subject of previous discussions with the members of the Board. Mr. Creighton stated • In the telephone conversation that the Board of Governors woqd be advised by wire of the actions taken, that the resolutioriQ ' adopted by the directors would be sent to the Board of Governors bY and that it would be appreciated if the Bank could have 2/14/44 -2- egraphic advice of the Board's approval of the actions so that announcement might be made to the press this afternoon for publication in tomorrow morning's newspapers: 1. On the understanding that Mr. Paddock, President of the Bank, who would become 65 years of age on April 8, 1944, would retire as of May 1, 1944, the board of directors approved a contribution by the Bank in the amount of $14,000 to the retirement system to provide an additional pension for Mr. Paddock during the remainder of his lifetime, and the payment of an additional $14,000 in cash to Mr. Paddock on January 2, 1945, in further recognition of his services to the Bank. When Mr. Paddock was advised of this action, he tendered his resignation as President of the Boston Bank, effective May 1, 1944, subject to the consummation of the financial arrangements referred to above, and his resignation was accepted. 2. Mr. Ralph E. Flanders, a Class B director of the Federal Reserve Bank of Boston, was appointed President of the Bank, effective May 1, 1944, for the unexpired portion of the term of five years ending February 28, 1946. 3. The salary of Mr. Flanders in his new position was fixed at the rate of $25,000 per annum for the year beginning May 1, 1944. Thereupon, unanimous approval was given to the following telegram to be sent upon receipt from Mr. Creighton of a wire confirming the information conveyed in the telephone conversation: 'Your wire. With understanding that Mr. Paddock's re,,J-rement will become effective as of May 1, 1944, Board of Lr?vernors approves payment of sum of $28,000 in accordance vn.th your board's resolution. Board also approves (1) apPointment of Ralph E. Flanders as President of Federal ?serve Bank of Boston, effective May 1, 1944, for unexPared portion of five-year term ending February 28, 1946, 2/14/44 "and (2) the salary at the rate of $25,000 per annum fixed by your directors for Mr. Flanders as President for the Year beginning May 1, 1944. Understand immediate announcement of Mr. Paddock's retirement and Mr. Flanders' appointment will be made by your Bank. No announcement being made here." It was stated that before this meeting Mr. Evans, who was on the Pacific coast, had been informed by telephone of the actions contemplated by the board of directors of the Boston Bank and had advised that if the actions were taken he would favor their approval by the Board. Memorandum dated February 12, 1944, from Mr. Morrill, recomMenai---ug that Mrs. Geraldine May be appointed as a charwoman in the Sectset417's Office on a temporary basis for an indefinite period, with bawl_ -"; salary at the rate of $1,200 per annum, effective as of the date 111)°11 which she enters upon the performance of her duties after having Paesed satisfactorily the usual physical examination. Approved unanimously, with the understanding that if anything derogatory should develop in the investigation of her references her services might be terminated immediately. Letter to the Presidents of all the Federal Reserve Banks, readtrig as follows: "For your information there is enclosed a copy of letter from the United States Maritime Commission, dated Februa 10, 1944, signed by Mr. B. B. Griffith, Assistant 60 theryto Director of Finance, regarding renegotiation agreemerits reached by contractors having Regulation V loans Which are guaranteed by the Maritime Commission." Approved unanimously. 243 2/14/44 -4Memorandum dated February 11, 1944, from Mr. Paulger, Director Of the Division of Examinations, recommending that the item of Mis— cellaneous Expenses in the 1944 budget of that Division be increased bY $213.28 to cover the cost of a copy of the transcript of testimony of four expert accountants in the Transamerica — Securities and Exchange C°mmission hearings held in Philadelphia during January 1944. The racalorandum stated that Mr. Dreibelbis, General Attorney, concurred in the recommendation of the Division of Examinations that the cost of the tr anscript be paid. Approved unanimously. Thereupon the meeting adjourned. Chairman.
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