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Minutes for February 18, 1959. To: Members of the Board From: Office of the Secretary Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement with respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, if you were present at the meeting, please initial in column A below to indicate that you approve the minutes. If you were not present, please initial in column B below to indicate that you have seen the minutes. A Chm. Martin Gov. Szymczak Gov, Mills Gov. Robertson Gov. Balderston Gov. Shepardson Minutes of the Board of Governors of the Federal Reserve System °rI Wednesday, February 13, 1959. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Szymczak Mills Robertson Shepardson Sherman, Secretary Kenyon, Assistant Secretary Hackley, General Counsel Farrell, Director, Division of Bank Operations Mr. Hostrup, Assistant Director, Division of Examinations Mr. Smith, Assistant Director, Division of Examinations Mr. Mr. Mr. Mr. Messrs. Herz, Hill, Drake, and Emery of Price Waterhouse & Co. Examination techniques and procedures. Of The representatives Price Waterhouse & Co. were present at the Board's request in order to cliacuss the report submitted by the accounting firm based on the 1953 review of techniques and procedures followed by the Board's field exarainin C staff. In its report the firm recommended that the Board e°nsider having departmental surveys and/or audits made at each Reserve tatik rom time to time during the year in lieu of the present practice °r mfo_ — 4ing a complete examination of each Bank once each year. A related ' Slage stion was that the Board consider having the work performed by a decentrn, ---ized examining staff, perhaps organized in four small groups, 2/ 18/59 -2- each of Vhich would operate within a prescribed geographical area. The Present method of examination was criticized as representing too much duplication of the work of the Reserve Bank audit staff and placing too little dependence on the internal audit function and the Bankts internal controls. In introducing the discussion, Chairman Martin said that the 8oard regarded the Price Waterhouse document as a challenging and itteresting report. He indicated that among other things the Board llould like to have comment on whether it was felt that surveys or audits of the type suggested would constitute compliance with the inaticiate contained in section 21 of the Federal Reserve Act that the 13°ard shall, at least once each year, order an examination of each Pederal Reserve Bank. Addressing himself first to the statutory requirement, Mr. lier4 suggested that in a situation of this kind questions always tended tc) arise regarding the intent of the law. The statutes of the State "Nev York, he said, had been amended -within the last 18 months or so with respect to directors' examinations of commercial banks, the change beillg to the effect that for the purpose of such examinations it would be PPropriate to examine parts or segments of the bank at different time . -' Mr. Hill added that the change in the law reflected the situation a it already existed at some of the larger commercial banks. 2/18/59 -3Mr. Herz continued by saying that the word nexaminationftwas a rather flexible one and that he would be inclined to interpret the law rather broadly to make room for whatever seemed to be necessary. Developments and trends had already resulted in certain things recognized in the Price Waterhouse report, and to that extent the suggested procedures would not represent an innovation. If necessary, it might be Pcasible to have the law amended to make clear the kind of examinations that the Board vas developing. On the practical side, there was the Problem that men assigned to the type of work envisaged by the report would have to be individuals of imagination and drive, whereas it had been observed that under present procedures much of the work tended to be accomplished under detailed guidance. Mr. Hill commented that the concept of the auditor was changing 14 the whole field of banking. The emphasis of reviewing controls found 14 the Price Waterhouse report reflected the concept of an auditor superi43130 aed on an organization that was supposed to operate accurately. Ij4der that concept, the auditor would have the responsibility of reviewing the 0 rganization to see that it should produce accurate results and of Itaking such tests as necessary for that purpose. This was different rrom the historical concept of the auditor who double-checked everything. 14 the last analysis, the individual banks should produce accurate, 'e figures by themselves and the auditor should look mostly at the °Perations that produced those results. Checking procedure only secondary. This tended to make the 2/18/59 Mr. Herz confirmed that this was a development now going on. Because of the sheer force of volume, he felt that somewhere along the - start must be made on breaking the examinations into pieces. ' line The first step along such lines might be to set up a group to study the Proposed methods as a practical proposition and plan a pilot survey (31' SurveYa, the results of which would be subjected to careful review. At this point Chairman Martin inquired of Mr. Herz what he felt the re action of the General Accounting Office might be with regard to 811ch a proposal, and the latter replied in terns that the Office, after st4dY in the field of bank examination procedures, possibly would come 111) th something comparable in a general way. At least, the General Acc°11nt1ng Office would be apt to come up with a program involving Units of audit than twelve. If a document such as the Price Waterhouse report were submitted to the General Accounting Office for °I3inic'n he felt that the Office might endorse it as a system of auditing. Following a review by Governor Mills of his understanding as , to 4 ""e nature and principal effects of the Price Waterhouse proposals, 'Lerz commented that what was proposed might be described as a considerably more decentralized program than carried on at present. Itovev er, he doubted whether the program would represent a complete clePartu-re as much as a recognition of what was now taking place. As he sa it, the auditors at the Reserve Banks had undertaken more and Itore auditing responsibility and the Board's staff had been placed in 2/18/59 a -5- Position where it became increasingly necessary to place reliance on the work being done at the Reserve Banks. The Board's staff was in each Reserve Bank only one month or so out of the year, and for the rest of the year reliance had to be placed entirely upon the Reserve laank auditor, except to the extent that contact was maintained through the Division of Bank Operations. While he was not thoroughly familiar 'with the surveys made by that Division, they appeared to constitute that might be called an auditing-type of activity. To the extent, h°14ever, that the Board was dependent on internal auditing controls, it seemed to him that a rather extensive degree of decentralization had already taken place. Under the proposed plan, more effort would be directed toward satisfying the Board that activities at the Reserve Banks throughout the year were proceeding in a satisfactory way. More effort -would be directed toward determining that operating systems were 8°114d, and less on the conventional type of bank examination. Governor Szymczak inquired whether there was not a danger that the sUggested regional groups might become in effect a part of the Reserve Banks to which they were assigned, and Mr. Hill agreed that the Point vas well taken. That situation, he said, was what tended to cleveloP from having a resident auditor at each Bank, and Price Ilaterh°use would not suggest that the Board maintain a resident examining 8tatf in each Bank. Mr. Herz added that at present the general auditor GS. 2/18/59 -6- vas actually an integral part of the Reserve Bank organization and that the difficulty referred to by Governor Szymczak seemed more or less inherent in the Federal Reserve organizational structure because of the It impracticality of arranging rotation of auditors. He felt that 14°uld be helpful to look into the auditor's activities more frequently that once each year and to see that the auditors were operating with a consciousness of the need for independence. After some discussion of the advantages and disadvantages of 4l81 ntaining regional examining groups from the standpoint of retaining c°111Petent personnel, Governor Robertson inquired whether Price Waterhouse 14-°14111d advocate shifting completely from the present system or detaching Merl from the field examining staff to make surveys on an experimental basis at a designated Reserve Bank. In response, Mr. Herz emphasized the need for experimentation with a view to arriving at something that had been developed within the Pederal Reserve System by people who would have to live with it. Ot studies might involve a number of separate undertakings, and it not appear to make too much difference whether or not they were 'Lleted in one Reserve Bank or several Banks. There might also be the Possibility of visiting some commercial bank that had moved toward Ilch a type of examination procedure. 2/18/59 -7Governor Shepardson inquired whether a distinction should not be dravn between an auditor in a commercial bank checking operations for the benefit of the management and examiners of supervisory agencies checking such operations from the standpoint of the public interest. TO this, Mr. Herz replied that the steps making up an examination tended to be quite similar no matter who was making the examination. He l'ec°gnized that the interest of an examiner for a supervisory agency 14a8 somewhat different from that of an auditor for a commercial bank, arid someyhere in between there vas the interest of the examining committee of the board of directors. Chairman Martin inquired about the accuracy of any charge that the Federal Reserve System vas self-auditing, and Mr. Herz replied in terMs that the Federal Government might be said to be self-auditing to the extent that its operations vere examined by the General Accounting Offi ce- The 'way Federal Reserve System activity was organized, he 11°1114 be inclined to say that the System was not a self-auditing o gani4tticm. Within each Reserve Bank, however, the auditing function must be considered as part of the structure of the particular Bank. The (Thiective was to see that the Bank was fragmented within itself so that no hazards would exist through combination of duties. Inquiry vas made regarding the Price Waterhouse appraisal of the 4.-'urlotions of the Division of Bank Operations, and Mr. Herz again 2/18/59 -8- stated that he was not completely familiar with the work of that Division. Amn -ng other things, however, he understood that the Board brought its influence to bear through reviewing the budgets of the Reserve Banks, /441ch tended to substitute. Board for Bank judgment on certain things. The "work of the Division of Bank Operations, while not strictly an auditing activity, enabled analyses to be made of judgments reached at the Federal Reserve Banks, and there vas the possibility of making rac 'difications. This was a type of activity which permitted the Board t° iniect itself into the Reserve Banks' affairs; whether the Board actUallY did inject itself into such affairs was a question for determi114ti0 n by the Board in any particular circumstances. Governor Balderston referred to situations where there might be differences between the Board and the management of a Reserve Bank regarding interpretation of System policies and rulings, and Mr. Herz 'ecIlimented that such matters could be reported by the Division of Bank °Peraticris to the extant that they were not reported through the e)cealtlination function. Speaking for the Division of Examinations, Mr. Smith said he had, received the impression from this discussion that the fragmented easlitation approach was being more or less forced upon commercial batik. by the natural process of developments. On the other hand, he e*licl it was still possible to conduct a complete examination of a 2/18/59 -9- Federal Reserve Bank at any given time. This was not a new problem, for the Board had been examining the Reserve Banks for some 40 years. He inquired therefore, as to the shortcomings seen in the present Program and whether the advantages envisaged in adopting a new approach mould justify the administrative problems posed by it. Mr. Herz responded that Price Waterhouse had endeavored to indicate the answer in its report. As that firm saw it, however, the disadvantages of the present system were associated generally with the degree to which the Board was placed in the position of relying on the Etuditing function at the Reserve Banks for eleven months out of the Year. The proposed approach was intended to bring those functions under more frequent scrutiny. There followed some discussion regarding the problem of reerui tment of appropriate personnel during which the view was expressed bY Price Waterhouse that this problem might be ameliorated because of the c hallenging and nonroutine nature of the assignments under a program Stiph - as outlined in the report. At the conclusion of the discussion, Mr. Herz again suggested c°4sidering the proposals in theory and then experimenting with them. He said that although Price Waterhouse personnel *would be available for — a-nY consultation that might be requested, the problem was principally °ne to be solved within the Board's organization. 2/18/59 -10The Price Waterhouse representatives then left the room along with Messrs. Farrell and Smith. Mr. Nelson, Assistant Director, Division Of Examinations, joined the meeting at this point. Items circulated to the Board. The following items, which had been circulated to the members of the Board and copies of which are attached to these minutes under the respective item numbers indicated, 'were approved unanimously: Item No. Letter to the Farmers and Merchants Trust Company of Chambersburg„ Chambersburg, Pennsylvania, approving the e stablishment of a branch in Marion, Pennsylvania, incident to its proposed merger with the Marion Bank. or transmittal through the Federal Reserve Bank of Phi ladelphia) Letter to The Croghan Colonial Bank, Fremont, Ohio onsenting to its absorption of The Commercial Bank 2mPanY, Green Springs, Ohio, and approving the , t-sta blishment of a branch in Green Springs. (For c1 :11, 1:n1=1 through the Federal Reserve Bank of 2 Letter to the Comptroller of the Currency recommending 1.ntavorably with regard to an application to organize g(Inational bank at Bailey's Crossroads, Virginia. ith a copy to the Federal Reserve Bank of Richmond) 1 Lett. -r to the Bureau of the Budget commenting on a bill "To amend certain lava of the United States -Light of u 4 of the State of Alaska into the n.k0n, the admissionpurposes." and for other Memo randum from Mr. Walter Young regarding a request le'-nia the Bureau of the Budget for a report on proposed 0,gialation relating to the use of certified mail by 'Iternment agencies. 4 5 2/18/59 -11Messrs. Hostrup and Nelson then withdrew and Messrs. Johnson, Director, Division of Personnel Administration, Marget, Director, and Sammons, Associate Adviser, Division of International Finance, entered the room. Renewal of gold loan to Bolivia (Item No. 6). In a telegram dated February 16, 1959, the Federal Reserve Bank of New York requested that the Board approve, subject to authorization by its directors at their meeting tomorrow, a further renewal for two months of the $600,000 g°1 loan to the Central Bank of Bolivia which was originally granted c'n October 20, 1958. The reason given for the requested renewal was that negotiations had not yet been completed for the extension of a credit to the Central Bank by a United States commercial bank, the lproceeds of which were to be used in part to repay the Federal Reserve Rold loan. After discussion of the Bolivian economic situation and of the circumstances involved in the present request for extension, a two-month ' leneva1 of the gold loan to the Central Bank of Bolivia was approved Unanimously. Doubt was expressed, however, as to whether there would be Jue tification for complying with any request for further renewal. It lia8 understood that the Division of International Finance would keep in touch with the New, York Reserve Bank regarding developments in connection with the gold loan and that the Division would keep closely iroxu1 ed with regard to economic and financial developments in Bolivia. f;S'7' 2/18/59 -12A copy of the telegram sent to the Federal Reserve Bank of Ne'w York pursuant to this action is attached as Item No. 6. All of the members of the staff except Messrs. Sherman, Kenyon, and Johnson then withdrew from the meeting. Officer salaries at Dallas Reserve Bank (Item No. 7). Following comments by Mr. Johnson based on a file which had been circulated to the Board, unanimous approval was given to a letter to the Federal Reserve Bank of Dallas approving the payment of salaries to certain Specified officers of the Bank at rates fixed by the Board of Directors. A coPY of the letter is attached as Item. No. The meeting then adjourned. 7. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 1 2/18/59 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD February 18, 1959. Board of Directors, Farmers and Merchants Trust Company of Chambersburg, Chambersburg, Pennsylvania. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of Philadelphia, the Board of Governors 3Proves the establishment of a branch on Colorado Street, ! 4„ 1 non, Pennsylvania, by Farmers and Merchants Trust Company Chambersburg, Chambersburg, Pennsylvania. This consent 18 given provided: p (a) The merger with Marion Bank, Marion, Pennsylvania, is effected substantially in accordance with the terms of the Joint Plan of Merger dated December 23, 1958; (b) Shares of stock acquired from dissenting shareholders are disposed of within six months after date of acquisition; (c) The branch is established within six months from the date of this letter; and (d) That formal approval of the State authorities is effective at the time the branch is established. Marion Bank has in its investment portfolio 5,000 Par v., ,.1..ue Pennsylvania Turnpike revenue bonds, Delaware River irl:Aon, dated September 1, 1952, and due June 1, 1970. azmuch as these bonds have been ruled ineligible for purchase ;Lmr?Inber banks, consideration should be given to disposing of -14 within a reasonable period of time. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 4 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM N*0 Item No. 2 2/18/59 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRIESPONOICNCE TO THC BOARD !twat a44** February 18, 1959. Board of Directors, The Croghan Colonial Bank, Fremont, Ohio. Gentlemen: System The Board of Governors of the Federal Reserve herebY gives its consent under the provisions of Section 18(c) 2f the Federal Deposit Insurance Act to the absorption of The ")mmercial Bank Company, Green Springs, Ohio, by The Croghan Colonial Bank, Fremont, Ohio, and approves the establishment °f a branch in Green Springs, within the limits of Sandusky C°11ntY, Ohio, by The Croghan Colonial Bank, provided, (1) The proposed absorption and establishment of the branch are effected within six months from the date of this letter and substantially in accordance with the agreement between the parties dated December 16, 1958, (2) Investment securities and fixed assets acquired from The Commercial Bank Company, are not placed on the books of The Croghan Colonial Bank in amounts in excess of the market value and the depreciated value for Federal income tax purposes, respectively, and (3) Formal approval is obtained from the State authorities. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 69( BOARD OF GOVERNORS OF THE • Item No. 2/18/59 FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Akoonres orraciAL CORREEPONOCNCE TO THE BOARD February 16, 1959. Comptroller of the Currency, TreasurY Department, Washington 25, D. C. Attention Mr. W. M. Taylor, Deputy Comptroller of the Currency. Dear Mr. Comptroller: Reference is made to a letter from your office dated (letober 28, 1958, requesting a further reconsideration and recomTendation with respect to the application dated August 2, 1956 '4) organize a national bank at Bailey's Crossroads, Virginia. A reinvestigation of the application based upon the reriseri - information submitted has been made by an examiner for the Federal Reserve Bank of Richmond, and it appears from the informa_1°n available that the proposed capital structure and management .1(1) the bank ' would be reasonably satisfactory. It should be noted, d.wever, that one of the organizers, Mr. Thomas, now serving as a el:rector of a bank in Alexandria, may be prohibited under the po:Yton Act from serving as an officer and director of the prod bank. The prospects for profitable operation of the bank not very favorable, and there does not appear to be a suffint need for a bank at this location at the present time. In : vi of these unfavorable factors, the Board of Governors does not fe e-t- justified in recommending approval of the application. The Board's Division of Examinations will be glad to dis'"Y of this case with representatives of your office You so desire. elaes if Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. 3 flf)1 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 4 2/18/59 ACORES' OFFICIAL CORRCIIPONOCHCC TO THC •OARO February 18, 1959. 11r. Phillip S. Hughes, hssistant Director for Le3.islative Reference, 13,1zreau of the Budget, 'aShin StOn 25, D. C. Ilear of This is in response to your legislative referral memorandum PebruarY 3, 1959, enclosing a draft bill "To amend certain laws of the, united States in light of the admission of the State of Alaska the Union, and for other purposes." The only provisions of the draft bill which relate directly th_ zeot. Reserve System are those of section 8 which would amend phl 1°n 14(b) of the Federal Reserve Act (12 USC 355) to insert the "(including Alaska)" after the words "continental United States", 44- wnich would amend section 19 of that Act by striking out the words 4.r1 ---aska or". The Board sees no objection to these amend,-,ents. to However, it is sugsested that rather than amend section 114(b) to din section 8(a) of the draft bill, an amendment mizht he made perretion 1 of the Federal Reserve Act (12 USC 221) by deletinLf the Ith:d at the end of the section and adding thereto "; the term' ezie,continental United States' means the States of the United States Zoca,,611? District of Columbia." The first sentence of section 2 of the t01, -11a-L Reserve Act (12 USC 222) assumes that Alaska is new considered "e inelueed in the "continental United States". The Boarl, therefore, Act , ns the necessity of amending section 14(0 of the Federal aes?rve zectrd instead recommends that the proposed amendment as contained in Inent °I) 8(a) of the draft bill be deleted, and that the proposed amend1113e :° section 1 of the Federal Reserve Act, as noted above, be l'bed in lieu thereof. hillip S. Hughes In keepinc with the objectives of this draft bill and in conformity with the recomendation appearing in the preceding pararaph„ it is sucxested that consideration mirtt also be given to lhe insertion of an anendmert to section 15 of the Gold Reserve et of 15'34 (31 USG 444) and section 10 of the Silver Purchase Act 4934 (31 U3G 1148b) to change the words "the States of the United ate, the District of Columbia, and the Territory of Alaska" to l'ead "the State of the United States and the District of Columbia'. In the event the sugested change is not made in the 'Pr°Pcsed amendment, section 8(a) of the draft bill as it now reads ishould incorporate therein a similar amendment to section 19, paral'aPh 11 (12 USG 466) of the Federal Reserve Act. Very truly yours, (Signed) Merritt Sherman Merritt SAerman„ Secretary. • :11 • BOARD OF GOVERNORS Or INC %ce FEDERAL RESERVE SYSTEM rrespondence Item No. 5 2/18/5P Date February 11, 1959. Subject: Bureau of the Budget request for report on proposed legislation relating to use of certified_Mil by Government agencies The Board is in receipt of a Legislative Referral Memorandum from the Bureau of the Budget dated February 4, 1959, requesting the °4rdl s views on a legislative proposal submitted by the Postmaster 1, 13, ( reral. A similar request has been sent to all Government departments wr agencies. This proposal would apply to agencies of the Government t,ich are now by law required or permitted to use registered mail for 4ansmittal of various classes of documents. In brief, the legisla(3 would authorize ; t1.n 0 permit those agencies to use either registered certified mail. Apparently the Postmaster General favors the Proposal for the reason that certified mail service is not nearly as xPensive from the standpoint of the Post Office Department as is , '-egi8tered mail. Subsection (a) of the proposal would amend 38 separate :°1/isions of law relating to particular agencies. Subsection (b) delivery of certified mail shall be°vides that return receipts for the re 2,E1Ta facie evidence of delivery to the same extent as return ceipts ?;FTegistered mail. I have been informed by Mr. Henry Miller in the Office of the Q,, cewuperintendent of Postal Service for the District of Columbia that 1ied mail is a form of mail service which was instituted in Octobor , o 1958. He told me that it is used in the case of first class ' mail pro which has no intrinsic value and, therefore, no indemnity is ided in the event of loss which, of course, is provided in the : eas reo. °f registered mail. In the case of either certified mail or latered mail, return receipts may be provided. I have also discussed the above with Mr. John B. Holden of the B, reau of the Budget who is handling the proposal for the Bureau. ' xPlained fled to him that there is no provision in the Federal Reserve re the use of registered mail, although Federal Reserve mai,. are shipped either as registered mail or treated as registered Boaii. in accordance with an administrative arrangement between the d Governors and the Post Office Department. I told him that, alter pari1, studying the proposed legislation and the explanation accom1: it] I had concluded that it would have no effect on the 11! "nt arrangement between the Board of Governors and the Post A4 Gq4 Board of Governors °Ilfice Department but that I wished to discuss the bill with him in ?Fder 40 secure such other information as he might have. He expressed I!le that the bill was not intended to, and would not, affect the viewe deral Reserve System in any way since it was intended to apply rnlY.to those agencies now operating under an express statute equiring or permitting the use of registered mail. The Bureauls Referral Memorandum does not request a written if the Board has no express statute relating to registered and if the draft bill is satisfactory to the Board. Accordingly, is recommended that the Bureau of the Budget be advised by tele'"°ne that the Board has no objection to the proposed legislation. rent—, 695 TELEGRAM BOARD OF GOVERNORS Ofr THE FEDERAL RESERVE SYSTEM Item No. 6 2/18/59 LEASED WIRE SERVICE WASHINGTON February 18, 1959. EXTER - NEW YORK Your wire February 16. Board approves subject to authorization by Your directors further renewal for two months from February 20 of IGAn on gold by your Bank to Banco Central de Bolivia of $600,000 911 same terms and conditions as those of maturing loan. It is understood that the usual participations will be offered to the other Federal Reserve Banks. (Signed) Merritt Sherman SHERNIAN BOARD OF GOVERNORS OF THE Item No. 7 2/18/59 FEDERAL RESERVE SYSTEM 1. It WASHINGTON 25, ID. C. 41 li : 04c'•,1 — ADDRESS OFFICIAL CORRESPONDENCE tk,,i+ TO THE BOARD .tt kOP;II'T. ' '' e214FIDEIAL FR) 11,1% Watrous H. Irons, President, ederal Reserve Bank of Dallas, DELllas 2, Texas, Mr. Irons: The Board of Governors approves the payment of salaries to the , officers of the Federal Reserve Bank of Dallas for the rod and at the rates indicated, which are the rates fixed by your &rd. of Directors as reported in your letter of February 12, 1959: S Name Annual Salary Title ?or t iod March 1 througi December 31 kiles L. George F.Cauthen Rudy N YE. Bohne Rob ert H. Boykin th Head Office Vice President General Counsel and Assistant Secretary Assistant Cashier Assistant Counsel $12,100 12,100 9,800 8,000 eriod A ril 1 throu h December 311 1959 - 111(444s R. Sullivan Story Carl 1959 - Moore Head Office Assistant Cashier $10,500 Houston Branch Assistant Cashier $ 8,800 San Antonio Branch Vice President $13,400 Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary.
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