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234 A meeting of the Board of Governors of the Federal Reserve SYm was held in Washington on Thursday, February 27, 1941, at 4:15 PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman McKee Davis Draper Mr. Morrill, Secretary Mr. Wyatt, General Counsel Mr. Dreibelbis, Assistant General Counsel Mr. Ransom reported a telephone conversation which he had cona few minutes before with C. V. Gregory, Deputy Chairman of the 441111 Reserve Bank of Chicago, during which the latter stated that 8:t the meeting of the board of directors of the Bank today, Emil Schram, °hal n of the Reconstruction Finance Corporation, was appointed Preal,a -'ent of the Bank by a vote of 5 to 4, one of the five votes being a telePhOrie vote by Mr. Lewis who was in Florida, that Mr. Cummings had stated that he had legal advice that the telephone vote was all gh t) but that upon his (Mr. Gregory's) inquiry to Mr. Davis the latter had "lred that in the opinion of the Board's Counsel the vote was not 1 gal, Aar. Gregory also reported, Mr. Ransom said, that the directors had voted to fix Mr. Schram's salary at the rate of $35,000 per annum, that 'r. Preston was appointed First Vice President with a salary at the rate of $25,000 per annum, and that Mr. Young was appointed second Vice ?re 8idsnt with salary at the rate of $21,000 per annum. Mr. Ransom 4(11ed that in response to a statement by him that the Board should 235 2/27/41 -2- receive formally by telegram the information given by Mr. Gregory over the telephone, Mr. Gregory responded that he would put the results of the election in a telegram to the Board. Chairman Eccles stated that he had been advised that Mr. Schram was coming over to see him this afternoon and shortly there- artel", upon being advised that Mr. Schram was in his office, ChairMall Eccles left the meeting with the understanding that he should let the conversation depend primarily on what Mr. Schram wanted to but that he should make it clear to Mr. Schram that, while the 8card had been informed as to the action of the directors of the Chicago Bank, it had not had an opportunity to give the matter coneideration and decide what action it should take. Ecei- t Upon Chairman return he informed the other members of the Board of his conversation with Mr. Schram during which it had appeared that Mr. Se hram had been advised by Mr. Cummings of the action taken by the 1.-, bo-4:k of directors of the Chicago Bank and that the purpose of Mr. —4121's visit was to discuss the matter. At 5:16 p.m., at the request of the Board, a long distance telephone call was put through to Mr. Leland in Chicago during which the latter reported fully on what had occurred at the meeting of the boa„ 4n1 of directors in Chicago today. Memoranda covering Chairman report of his conversation with Mr. Schram and the telephone e°11versation with Mr. Leland have been placed in the Board's files. Thereupon the meeting adjourned.
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