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The attached set of minutes of the meeting of the Board of Governors of the Federal Reserve System on January 15, 1964, Which you have previously initialed, has been amended to add, beginning on page 8, an entry with regard to the rate of salary approved for the President of the Federal Reserve Bank of Cleveland. If you approve these minutes as amended, please initial below. Chairman Martin Governor Mills Governor Robertson Governor Balderston Governor Shepardson Governor Mitchell Governor Daane '9/63 Minutes for To: Members of the Board From: Office of the Secretary January 15, 1964. 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, please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If you were not present, your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. Mitchell Gov. Daane 12( e Minutes of the Board of Governors of the Federal Reserv System on Wednesday, January 15, 1964. The Board met in the Board Room at 10:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Balderston, Vice Chairman Mills Robertson Shepardson Mitchell Daane Sherman, Secretary Kenyon, Assistant Secretary Molony, Assistant to the Board Cardon, Legislative Counsel Fauver, Assistant to the Board Hackley, General Counsel Brill, Director, Division of Research and Statistics Mr. Solomon, Director, Division of Examinations Mr. Johnson, Director, Division of Personnel Administration Mr. Shay, Assistant General Counsel Mr. Conkling, Assistant Director, Division of Bank Operations Mr. Thompson, Assistant Director, Division of Examinations Mr. Bakke, Senior Attorney, Legal Division Miss Hart, Senior Attorney, Legal Division Mr. Mr. Mr. Mr. Mx. Mr. Mr. Distributed items. The following items, copies of which are ted, attached to these minutes under the respective item numbers indica %Fere approved unanimously: Item No. elegrams to the Federal Reserve Agent at Richmond ! lqithorizing the issuance of limited voting permits co Financial General Corporation, Washington, D. C.; 1111e Morris Plan Corporation, New York, New York; ancl Lexington Shares, Inc., New York, New York, i.overing stock owned or controlled of The First Ilational Bank of Lexington, Lexington, Virginia. 1-3 12';' 1/15/64 -2Item No. Telegrams to the Federal Reserve Agent at Richmond authorizing the issuance of limited voting permits to Financial General Corporation, Washington, D. C.; The Morris Plan Corporation, New York, New York; and Chesapeake Shares Corporation, New York, New York, covering stock owned or controlled of Chesapeake National Bank, Towson, Maryland. 4-6 Letter to Ranchers Security Corporation, Winner, South Dakota, granting a determination exempting it from all holding company affiliate requirements except for section 23A of the Federal Reserve Act. Letter to the Federal Reserve Bank of Boston aPProving the payment of salary to Daniel Aquilino as Assistant Cashier at the rate fixed by the Bank's Board of Directors. Legislative proposals. 8 At the instance of Governor Mills, there 14as a general discussion of the prospect of Congressional hearings on Proposals supported by the Board to amend the Bank Holding Company Act and to broaden the kinds of security on which credit can be advanced by the Federal Reserve Banks. On the latter proposal, Mr. Cardon reported that there continued to be an indication that the Senate Banking and Currency Committee intended to take up the matter in the early part of this year. There was no similar indication of action on the part of the House Banking and Currency Committee, however, despite the letter sent by the Board to the Chairman °I' the Committee last fall and the personal representations made by the Chairman and Vice Chairman of the Board. In this connection, Mr. Hackley commented that a memorandum was now being prepared by the staff summarizing 1/15/64 -3- that the Board might wish Reserve Bank comments and the principal issues be issued if to consider in regard to a revised regulation that would the proposed legislation should be enacted. Earlier the Board had fairly well in mind, in indicated that it would be desirable to have proposed legislation, the advance of any Congressional hearings on the be issued. %ape of implementing regulation that would ng Company Act, Mr. With regard to amendments to the Bank Holdi Board discussion the Hackley stated that in accordance with previous ial Legal Division was preparing for the Board's consideration revised mater t. The Division underthat might be included in the Board's Annual Repor letters again to the stood, also, that the Board might wish to send ttees urging the passage of Chairmen of the Banking and Currency Commi amendments to the Act. ous oral and written Further comments brought out that previ man of the representations by the Board and its Chairman to the Chair ments House Banking and Currency Committee regarding the need for amend that banking to the Bank Holding Company Act had proved unavailing, and of legislation did and holding company forces interested in this area Company Act not appear disposed to push for hearings on the Bank Holding at this time. table trusts. Study of tax-exempt foundations and chari Under t Committee date of October 16, 1963, a Subcommittee of the House Selec impact of tax-exempt (34 Small Business published part two of a study of the 1_29 1/15/64 -4- foundations and charitable trusts on the nation's economy, dealing Primarily with the exploitation by certain foundations of their taxexempt status for personal gain and for the benefit of others through various types of financial transactions. One of the case histories included in the report concerned the Baird Foundations of New York City, with particular reference to the complex financial dealings between these Foundations and Serge Semenenko, an officer and director of the First National Bank of Boston, Boston, Massachusetts. In addition to direct sales and purchases of securities between the Foundations and Mr. Semenenko, the transactions studied also involved purchases of securities for Mr. Semenenko's account by the Winfield Baird Foundation (and on one occasion by the David, Josephine, and Winfield Baird Foundation) under agreement to carry the securities for him at a stipulated rate of interest and, frequently, with the added consideration of a stated share of the profits, If any, that might be realized upon their subsequent sale. By letter dated November 12, 1963, Subcommittee Chairman Patman had asked the Board to review these transactions and advise whether there aPPeared to have been "any violations of section 22 of the Federal Reserve Ant, of the Bank Holding Company Act, or of any other banking laws affecting the jurisdiction of the Federal Reserve System." An analysis, a discussion of statutory and regulatory provisions, 4114 conclusions were presented in a memorandum to the Board from the Legal tIvision dated January 13, 1964, copies of which had been distributed 130 1/15/64 -5- prior to this meeting. From review of the facts, as developed by the Subcommittee, it was the opinion of the Legal Division that the question of violation of section 22(g) of the Federal Reserve Act and Regulation 0, Loans to Executive Officers of Member Banks, was not a point in issue in connection with an evaluation of the "legality" of dealings between Mr. Semenenko and the Foundations. In 1960, however, the Board required unregulated lenders (that is, those other than banks and securities brokers and dealers) who on December 15, 1959, were in the business of extending credit and who in the ordinary course of business extended credit for the purpose of purchasing or carrying securities registered on a national exchange to file not later than May 15, 1960, a report of such transactions during the preceding fiscal year. From the data contained in the Subcommittee report, it appeared that during the period studied a significant part of the Baird Foundations' activities involved extensions of credit, many of such transactions being for the purchase or carrying °f listed securities. It was the Legal Division's opinion that a con- clusion that the Baird Foundations were engaged in the business of extending credit would be warranted and that failure to file the required reports therefore constituted a violation of the Board's Regulation U, Loans by 134nks for the Purpose of Purchasing or Carrying Registered Stocks. It was Proposed that the facts suggesting violation of Regulation U be referred to the Securities and Exchange Commission for appropriate disposition. A draft of letter to Chairman Patman reflecting the Legal Division's conclusions was submitted with the memorandum, along with a draft 131 1/15/64 -6- of letter referring to the Securities and Exchange Commission the question Of the possible Regulation U violation. Following comments by Mr. Bakke in support of the Legal Division's memorandum, Governor Mills expressed some apprehension that the burden of the proposed letter to Chairman Patman was to try out of court both Mr. Semenenko and the Baird Foundations. He was concerned that if there was even a shadow of defamation of character the Board should be cautious. It was his thought that the letter should be rephrased in a way that would Make more understandable the difficulties of interpreting the statute and would not impute crimes or violations. In making this suggestion, he was aware that the Subcommittee report was damning to the Baird Foundations and others identified with them, but he was concerned about giving any impression of handing down a verdict. Staff comments on this point were to the effect that the letter 1.418 not intended to take the position that there had necessarily been a Regulation U violation. It would merely say that there were facts from which it could be concluded that there may have been a violation and, Since enforcement of the Securities Exchange Act and regulations issued Under it is a responsibility of the Securities and Exchange Commission, it Was for that agency to reach the ultimate conclusion. As to the section 22(g) question, the letter would indicate that it had been resolved in favor of concluding that there had been no violation. 1/15/64 As the discussion proceeded, question was raised whether it would be desirable if the data in the Subcommittee report with regard to the dealings of Mr. Semenenko were supplemented by direct investigation through the Federal Reserve Bank of Boston. However, it was pointed out that the institution with which Mr. Semenenko was connected was a national bank, which presented the question whether the matter should be referred to the Comptroller of the Currency. Although there was some sentiment for following such a course, a consensus developed against it. The basis for the consensus was that the section 22(g) question required an interpretation of the law, which was the Board's responsibility. If the Board followed the Legal Division's interpretation, there would be no reason to refer the matter to the Comptroller. A suggestion was then made by Mr. Hackley that the proposed letter Might be revised to omit any specific discussion of the possible applicability of section 22(g) and simply state, after discussing the Regulation U question, that upon careful consideration the Board had found no other respect in which it appeared that the disclosures in the Subcommittee report regarding the dealings between the Baird Foundations and Mr. Semenenko involved violations of Federal Reserve law or regulations. There was general agreement with this suggestion, and it was Understood that a revised draft of letter to Chairman Patman reflecting this suggestion and other aspects of the discussion at this meeting would be prepared for the Board's consideration. A 33 1/15/64 -8Mr. Johnson, Mr. Bakke, and Miss Hart then withdrew from the meeting and Mr. Noyes, Adviser to the Board, entered the room. Conflicting interpretations of supervisory agencies. President Wayne of the Federal Reserve Bank of Richmond had drawn to the attention of the Board's staff a letter dated December 30, 1963, addressed jointly to the Federal Reserve Bank of Richmond, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation by E. M. Todd, Executive Vice President and Cashier of The National Bank of Alamance, Graham, North Carolina, who deplored the confusion created by conflicting interpretations of the Federal bank supervisory agencies. There had been distributed for consideration a draft of possible reply that might be sent to Mr. Todd if it were felt that a reply from the Board rather than the Richmond Reserve Bank was desirable. After preliminary discussion as to whether a reply should be made from the Board, and if so in what form, it was agreed at the suggestion °f Governor Daane to hold the matter over for further study and for consideration at another meeting of the Board. At this point all members of the staff except Mr. Sherman withdrew from the meeting. Salary for Mr. Hickman (Item No. 9). Chairman Martin referred to 4 discussion on January 13, 1964, of a letter from Chairman Hall of the ederal Reserve Bank of Cleveland, dated December 23, 1963, regarding the action of the Board on December 16, 1963, in declining to approve a I3,1 1/15/64 -9- salary increase for President Hickman for the year 1964 for the reason that such action would violate the guidelines set out in the Board's letter to the Chairmen of all Federal Reserve Banks dated October 5, 1962, regarding the application of the salary administration plan for Reserve 8ank Presidents and First Vice Presidents. At Chairman Martin's request, Governor Mitchell reported on a telephone conversation that he had had with Mr. Hickman yesterday as to the latter's views as to his salary in the light of discussions that he (Mr. Hickman) had had with former Chairman Van Buskirk of the Cleveland Reserve Bank at the time he was being considered for employment by that Bealk in 1959 and subsequently. Following Governor Mitchell's report, approval was given to the PaYment of salary to Mr. Hickman as President of the Federal Reserve Bank et Cleveland at the rate of $40,000 per annum, effective January 1, 1964. This action was taken with the understanding that it represented an e3ccepti0n to the policy regarding salary increases for Presidents and Pirst Vice Presidents of the Reserve Banks as set forth in the Board's letter of October 5, 1962, such exception being made for the reason that to do otherwise might be interpreted as a lack of good faith in carrying °Ilt an earlier understanding between former Chairman Van Buskirk and Mr. Iliekman. A copy of the letter sent to Chairman Hall pursuant to this 4etion is attached as Item No. 9. The meeting then adjourned. 1/15 64- -10Secretary's Note: Governor Shepardson today approved on behalf of the Board a letter to the Assistant Secretary of State for Educational and Cultural Affairs advising of the designation of E. J. Johnson, Director of the Board's Division of Personnel Administration, as the Board's point of contact for the Interagency Youth Committee. • Item No. 1 1/15/64 TELEGRAM LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON January 15, 1964. HYDE .- RICHMOND XECEA A. Financial General Corporation, Washington, D. C. B. The First National Bank of Lexingcon, Lexington, Virginia. C. None. D. At any time prior to April 1, 1964, at the annual meeting of shareholders of such bank, or any adjournments thereof,.to elect directors for the ensuing year and act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meetings of such bank. STOP. Simultaneously with issuance of limited voting permit authorized herein, there shall be issued to The Morris Plan Corporation and Lexington Shares, Inc., the limited voting permits authorized in Board's telegrams of this date with respect to the abovenamed bank. Please forward to New York Reserve Bank copies of permits issued by your Bank to The Morris Plan Corporation and Lexington Shares, Inc. (Signed) Elizabeth L. Carmichael CARMICHAEL Definition of KECEA: The Board authorizes the issuance of a limited voting permit, under the provisions of section 5144 of the Revised Statutes of the United States, to the holding company affiliate named below after the letter "AP, entitling such organization to vote the stock which it owns or controls of the bank(s named after the letter "B", subject to the condition(s )below below after the letter "C". stated The is limited to the period of time permit authorized hereunder and the purposes stated the letter "D". Please proceed after in accordance with the tions contained in the Board's instrucletter of March 10, 1947, (8-960. Item No. 2 1/15/64 LEGRAM TE LEASED WIRE SERVICE EM BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYST WASHINGTON January 15, 1964. HYDE -- RICHMOND RECEA A. The Morris Plan Corporation, New York, New York. B. The First National Bank of Lexington, Lexington, Virginia. C. None. D. At any time prior to April 1, 1964, at the annual meeting of shareholders of such bank, or any adjournments thereof, to elect directors for the ensuing year and act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meetings of such bank. STOP. Simultaneously with issuance of limited voting permit authorized herein, there shall be issued to Financial General Corporation and Lexington Shares, Inc., the limited voting permits authorized in Board's telegrams of this date with respect to the abovenamed bank. (Signed) Elizabeth L. Carmichael CARMICHAEL Definition of KECEA: permit, issuance of a limited voting Statutes The Board authorizes the ed Revis the of 5144 section named iate under the provisions of affil the holding company to on izati of the United States, to organ such entitling below after the letter owns or controls of the bank(s) named d vote the stock which it subject to the condition(s) state below after the letter "B", The permit authorized hereunder below after the letter "C". time and the purposes stated after d of is limited to the perio proceed in accordance with the instruce Pleas (8-964). the letter "D". Board's letter of March 10, 1947, tions contained in the "r, 138 TELEGRAM Item No. LEASED WIRE SERVICE 3 1/15/64 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON January 15, 1964. HYDE RICHMOND )12cLEA A. Lexington Shares, Inc., New York, New York. B. The First National Bank of Lexington, Lexington, Virginia. C. None. D. At any time prior to April 1, 1964, at the annual meeting of shareholders of such bank, or any adjournments thereof, to elect directors for the ensuing year and act thereat upon such matters of a routine nature as are ordinarily acted upon at the annual meetings of such bank. STOP. Simultaneously with issuance of limited voting permit authorized herein, there shall be issued to Financial General Corporation and The Morris Plan Corporation, the limited voting permits authorized in Board's telegrams of this date with respect to the above-named bank. (signed) Elizabeth L. Carmichael CARMICHAEL Definition of MEM The Board authorizes the issuance of a limited voting permit, under the provisions of section 5144 of the Revised Statutes of the United States, to the holding company affiliate named below after the letter "A", entitling such organization to vote the stock which it owns or controls of the bank(s) named below after the letter "B", subject to the condition a stated below after the letter "C". The permit authorized hereunder is limited to the period of time and the purposes stated after the letter "D". Please proceed in accordance with the instructions contained in the Board's letter of March 10, 1947, (S-964). AMMEMEMEMEMM Item No. TELEGRAM L. 1/15/64 LEASED WIRE SERVICE SYSTEM BOARD OF GOVERNORS OF THE FEDERAL RESERVE WASHINGTON January 15, 1964. HYDE -- RICHMOND KECEA A. Financial General Corporation, Washington, D. C. B. Chesapeake National Bank, Towson, Maryland. C. None. D. At any time prior to April 1, 1964, at the annual meeting of shareholders of such bank, or any adjournments thereof, to elect directors for the ensuing year and act thereat upon such matters of a routine nature as would ordinarily be acted upon at the annual meetings of such bank. STOP. Please withhold issuance of the permit authorized herein until such time as you have been notified by Financial General Corporation that it has become a holding company affiliate of such bank. Meanwhile, you may assure Financial General Corporation that a limited voting permit will be issued upon such notification. Simultaneously with issuance of limited voting permit authorized herein, there shall be issued to The Morris Plan Corporation and Chesapeake Shares Corporation, the limited voting permits authorized in Board's telegrams of this date with respect to the above-named bank. Please forward to New York Reserve Bank copies of permits issued by your Bank to The Morris Plan Corporation and Chesapeake Shares Corporation. (Signed) Elizabeth L. Carmichael CARMICHAEL Definition of KECEA: issuance of a limited voting permit, The Board authorizes the section 5144 of the Revised Statutes under the provisions of the holding company affiliate named to States, of the United entitling such organization to "A", below after the letter or control() of the ball named owns it which stock vote the to the condition(s) stated subject "B", below after the letter authorized hereunder permit The below after the letter "C". purposes stated after the and time of period in limited to the ce with the instrucaccordan in the letter "D". Please proceed March 10, 1947, (5-964). of letter Board's the in d tions containe 140 TELEGRAM Item No. LEASED WIRE SERVICE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 5 1/15/64 January 15, 1964. HYDE .- RICHMOND KECEA A. The Morris Plan Corporation, New York, New York, B. Chesapeake National Bank, Towson, Maryland. C. None. D. At any time prior to April 1, 1964, at the annual meeting of shareholders of such bank, or any adjournments thereof, to elect directors for the ensuing year and act thereat upon such matters of a routine nature as would ordinarily be acted upon at the annual meetings of such bank. STOP. Please withhold issuance of the permit authorized herein until such time as you have been notified by The Morris Plan Corporation that it has become a holding company affiliate of such bank. Meanwhile, you may assure The Morris Plan Corporation that a limited voting permit will be issued upon such notification. Simultaneously with issuance of limited voting permit authorized herein, there shall be issued to Financial General Corporation and Chesapeake Shares Corporation, the limited voting permits authorized in Board's telegrams of this date with respect to the above-named bank. (Signed) Elizabeth L. Carmichael CARMICHAEL Definition of KECEA: The Board authorizes the issuance of a limited voting permit, under the provisions of section 5144 of the Revised of the United States, to the Statutes holding company affiliate below after the letter "X', named entitling such organizati on to vote the stock which it owns or controls of the bank(s) named below after the letter "B", subject to the condition( s stated below after the letter "C". The permit authorized is limited to the period of hereunder time and the purposes stated after the letter "D". Please proceed in accordance with the instructions contained in the Board's letter of March 10, 1947, (S-964). Item No. TELEGRAM 6 1/15/64 4..€4.35101311MUITIE StlEORYTCKL BOARD, OF GOVERNORS OF 11HE FECE.RA.L. RESERVE SYSTEM WASHINGTON January 15, 1964. ning —RICHMOND UM& A. Chesapeake Shares Corporation, New York, New York. B. Chesapeake National Bank, Towson, Maryland. C. None. D. At any time prior to April 1, 1964, at the annual meeting of shareholders of such bank, or any adjournments thereof, to elect directors for the ensuing year and act thereat upon such matters of a routine nature as would ordinarily be acted upon at the annual meetings of such bank. STOP. Please withhold issuance of the permit authorized herein until such time as you have been notified by Chesapeake Shares Corporation that it has become a holding company affiliate of such bank. Meanwhile, you may assure Chesapeake Shares Corporation that a limited voting permit will be issued upon such notification. Simultaneously with issuance of limited voting permit authorized herein, there shall be issued to Financial General Corporation and The Morris Plan Corporation, the limited voting permits authorized in Board's telegrams of this date with respect to the above-named bank. (Signed) Elizabeth L. Carmichael CARHICHAEL Definition of KECEA: The Board authorizes the issuance of a limited voting permit, under the provisions of section 5144 of the Revised Statutes of the United States, to the holding company affiliate named below after the letter "IV, entitling such organization to vote the stock which it owns or controls of the ball named below after the letter "B", subject to the condition stated below after the letter "C". The permit authorized hereunder is limited to the period of time and the purposes stated after the letter "D". Please proceed in accordance with the instructions contained in the Board's letter of March 10, 1947, (s-964). BOARD OF GOVERNORS Item No. 1/15/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDF2ESS OFFICIAL CORRESPONDENCE TO THE BOARD January 15, 1964. Mr. G. J. Danforth, Jr., Secretary, Ranchers Security Corporation, Winner, South Dakota. Dear Mr. Danforth: This refers to the request contained in a letter 30, 1963, submitted to the Federal Reserve December dated Bank of Minneapolis, for a determination by the Board of Governors of the Federal Reserve System as to the status of Ranchers Security Corporation, Winner, South Dakota (”Corporation“), as a holding company affiliate. From the information presented, the Board understands that Corporation's present activities are confined to holding 1,002 (50.1 per cent) of the 2,000 outstanding shares of stock of Ranchers National Bank of Winner, Winner, South Dakota, and the incidental sale of hazard insurance, and that it does not, directly or indirectly, own or control any stock of, or manage or control, any other banking institution. In view of these facts the Board has determined that Corporation is not engaged, directly or indirectly, as a business in holding the stock of, or managing or controlling banks, banking associations, savings banks, or trust companies Within the meaning of section 2(c) of the Banking Act of 1933 (12 U.S.C. 221a); and, accordingly, it is not deemed to be a holding company affiliate except for the purposes of section 23A of the Federal Reserve Act and does not need a voting permit from the Board of Governors in order to vote the bank stock Which it owns. 14:3 BOARD OF GOVERNORS or THE FEDERAL RESERVE SYSTEM -2- Mr. G. J. Danforth, Jr. If, however, the facts should at any time indicate that Corporation might be deemed to be so engaged, this matter Should again be submitted to the Board. The Board reserves the right to rescind this determination and make further determination of this matter at any time on the basis of the then existing facts, including additional acquisitions of bank stocks even though not constituting control. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. Item, No. 8 BOARD OF GOVERNORS 0.5/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, 0. C. 20551 ADDRESS OFFICIAL. CORRESPONOEN TO THE BOARD January CONFIDENTIAL (FR) Mr. George H. Ellis, President, Federal Reserve Bank of Boston, Boston, Massachusetts 02106. rear Mr. Ellis: The Board of Governors approves payment of salary to Mr. Daniel Aquilino as Assistant Cashier of the Federal Reserve Bank of Boston, effective January 10 1964, at the rate of $141000 per annum, the rate fixed by the directors of your Bank as reported in your letter of January 6, 19640 Very truly yours, (Signed) Merritt Merritt Sherman, Secretary. 1964. E 145 Item No. 9 BOARD OF GOVERNORS 1/15/64 OF THE FEDERAL RESERVE SYSTEM WASHINGTON OFFICE OF THE CHAIRMAN January 15, 1964. CONFIDENTIAL (FR) Mr. Joseph B. Hall, Chairman, Federal Reserve Bank of Cleveland, Cleveland, Ohio. 44101. Dear Joe: The Board of Governors has reconsidered the salary Proposal for President Hickman as requested in your letter stances, of December 23, 1963, and in view of all the circum period the n for Hickma approves the payment of salary to Mr. 0 $40,00 of rate the at January 1 through December 312 1964, per annum. This action should be considered an exception to the Board's general policy that increases should be granted a President only after two years for new appointees, and at three-Tear intervals otherwise. Sincerely yours, (Signed) Bill WM. McC. Martin, Jr.
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