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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, January 18, 1924, at 11:35 a.m. PRESENT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Dawes Mr. Eddy, Secretary. The minutes of the meeting of the Federal Reserve Board held on January 17th were read and approved. The Governor stated that the special order of business for the meeting torIft --Y would be the matter held over at the meeting yesterday, namely, Mr. l*Wes t motion that the Board adopt the resolutions previously offered by Mr. e1lIal11l4ham at the meeting on January 16th, as amended, authorizing the 4ratnittee on Salaries and Expenditures to undertake a complete survey of 1)ersonnel and salaries at Federal Reserve banks and branches. Mr. Cunningham offered the resolutions in the following revised form: "ZHEREAS, it is deemed desirable for the Federal Reserve Board, in the discharge of its statutory duty of approving all compensation paid by any Federal Reserve Bank for officers or employees, to be in Possession of full information with regard to the officers and minor employees of the Federal Reserve Banks and Federal Reserve Branch Banks and with regard to the official duties of such officers and employees, the work Performed by them, and the salaries paid to them; "NOW, THEREFORE, BE IT RESOLVED by the Federal Reserve Beard that the Committee on Salaries and Expenditures be authorized and directed to make a complete survey for the purpose of ascertaining the number Of officers of the various Federal Reserve Banks and Branch Banks, the duties performed by such officers and the necessity for such services; the number employees of such Banks and Branch Banks, the character Of service they are rendering and the necessity for such service; and the total overhead expenses of the various Federal Reserve Banks and their Branches; -2- 1/18/24 "BE IT FURTHER RESVOLED that the Committee on Salaries and Expenditures is hereby authorized and directed to employ such moans as it may deem necessary for the purpose of procuring such data and information as will enable it to be fully advised on all matters involving the management, operation and expenses of the various Federal Reserve Banks and Branch Banks; provided, that any unusual expenditure incurred in the prosecution of its work must first be submitted to and approved by the Federal Reserve Board; "BE 12 FURTHER R2:SOLVED, that the Committee on Salaries and Expenditures is hereby directed to make such recommendations as in its judgment will be instrumental in bringing about and maintaining the strictest economy commensurate with efficient service; "BE IT FURTHER RESOLVED, that the Committee on Salaries and Expenditures is hereby directed to report its findings and recommendations to the Federal Reserve Board at the earliest practicable date." Mr. Dawes' motion to adopt the foregoing resolutions being put by the chair was carried, Governor Crissinger voting "no". Mr. Platt stated that he had voted "aye" on the strength of Mr. Dawes' argument that he thinks the resolutions will be a means for cooperation with the directors of the Federal Reserve banks rather than for antagonism. Letter dated January 16th from the Comptroller of the Currency liecammending an increase from 16,500 to ,20,000 per annum in the salary Of Chief National Bank Examiner Owen 2. Reeves, Jr. Upon notion, the above increase was approved, effective today, Governor Crissinger not voting. The Governor then stated that the next special order of business would be the matter held over at the meeting yesterday, namely, Er. James' 4°t ion that the Board adopt the following "Rules and Regulations as to 13irectors of Federal Reserve Branch Banks", recommended by the Committee an 4anches, providing, among other things, that there shall be seven directors for e"4611 branch bank; the Board having striken out at the meeting yesterday that -3 1/18/24 pa. Drevision of the suggested regulations which provided that "Reappointments Other than the manager, shall only be made in very special cases": "1st. The Board of Directors of Federal Reserve Branch Banks shall consist of seven members, four of whom shall be appointed by the Federal Reserve Banks and three by the Federal Reserve Board. "2nd. The Directors appointed by the Banks shall be chosen from the ranks of men well qualified and experienced in banking and the Directors appointed by the Federal Reserve Board shall be chosen from the ranks of men of high character and standing, who are engaged in agriculture, industry or commerce, insofar as may be possible or practicable. "3rd. All Directors shall be citizens of the District and shall reside within the territory served by the Branch, but at least one of the Directors appointed by the Bank and one appointed by the Board shall reside outside of the city in whidh the branch is located. "4th. One of the Directors appointed by the Reserve Bank shall be the active manager of the branch bank and shall have the title I:anaging Director. "5th. The term of office for the Director chosen by the Reserve Bank to act as Ylanaging Director of the branch shall be for one year, 3ubject to reappointment from year to year, if such ,ction be desirable. "6th. Jix other Directors shall be appointed January 1st, 1925 - for terms as follows: One Director appointed by Ban]: for term of ff 9 Board " One If It Bank One It Board One Pt Bank One If IT Board If One - effective one year one year two years two years three years three years Thereafter the term of office for each member 1;ha11 be for three years, appointments being made each year, one by the Bank and one by the Federal Reserve Board. "7th. The Board of Directors of Federal Reserve Branch Banks shall annually elect as Chairman of the Board the member appointed by the Board, whose term of office expires with the current year. /1) e 1/18/24 -4- "8th. In the event of a vacancy occurring in the Board Of Directors of a Branch Federal Reserve Bank, appointments filling such vacancy shall be made by the body makirr:; the original appointment and such appointment shall be for the unexpired term. "9th. The Federal Reserve Board shall have the right to remove, for cause, any member of the Board of Directors of a Branch Federal Reserve Bank. "10th. These Rules and Regulations to become effective, as to appointments for service as Directors, on and after January 1st, 1925." Mr. James' motion being put by the chair was carried, the members voting as follows: Mr. Hamlin, "awe" Mr. James, "aye" Mr. Cunninjiam, "aye" Mr. Dawes, "aye" Governor Crissiner, "no" Mr. Platt, "no" Mr. Miller, "no" Report of Co:mittee on District No. 12 on the matter referred to it n of a t the meeting on Jaruary 7th, namely, the preparation of a definitio ' territory contiguous to San Francisco and Los Angeles, California, the port of the Committee containing the follordng recommendations: "Zile Committee, therefore, recommends that the area comprised e Within the limits described below shall be deemed to constitut Los and the territory contiguous to the cities of San Francisco Angeles, California, as an amendment of the Board's resolution Of November 7th, 1923. "1. In re Jan Francisco. "It is recommended that the area to be embraced 'ithin the meaning of the term "contiguous territory" in the aforesaid and resolution be that area bordering upon San Francisco Bay, roughly described as being bounded upon the North by a line from drawn beginning at a point on the Pacific Ocean due West easterly an in thence running and the city of Santa Rosa in direction to the city of Santa Rosa; thence Southeasterly line straight a in thence Napa; of city the a straight line to Southeasterly again to file city of Antioch; thence in a a Southerly direction to the city of San Jose; thence in 1/18/24 _5- "Southwesterly directi,in passing in a straight line through the town of Los Gatos to the county line of the county of ianta Clara; thence in a Northerly direction following the Western boundary of the county of Santa Clara to the county line of the county of San Mateo; thence in a Westerly direction follawin:; the Southern boundary of Jan Mateo to the ocean; thence following the ocean line in a Northerly direction to the point of beginning. "2. In re Los Aneles. "It is recommendea. that the area to be embraced within the meaning of the term 'contiguous territory' in the aforesaid resolution, be that area embraced within the following lines beginning at a point on the Ocean North of the city of Santa Monica, known as "Tapanga Canyon", running thence in a Northerly direction to the Western boundary of the city of Los Angeles, following thence along the Western boundary of the city of Los Angeles to its Northern boundary; thence in an Easterly direction along the Northerly boundary of the city of Los Angeles to the city of San Fernando; thence in a generally Easterly direction bearing South to the town of Highlands, just outside of the city of San Bernardino in the county of San Bernardino; thence in a Southerly direction to the city of Redlands; thence in a Westerly direction bearing South to the city of Huntington Beach; and thence following along the seacoast to the point of beginning." After discussion, Mr. Miller moved the adoption of the Committee's report. After further discussion, during which several amendments were proposed to the Committee's report, Mr. Cunniivham moved as a substitute for Mr. Miller's motion that the report be referred back to the Committee on District No. 12, Mr. Cunningham's motion being put by the chair was carried, the members voting as follows: Mr. Hamlin "aye" Mr. James "aye" Mx. Cunningham "aye" Mr. Dawes "aye" Governor Crissinger "no" Mr. Platt "no" Mr. Miller "no" The Secretary submitted the following telegram to the Federal Reserve 4.E;ont at Dallas and re:luested authority to transmit same: "Comptroller of Currerry is ready to issue charter today to Albuquerque National Bank. Board advised funds have .been deposited with you to pay for Federal reserve stock.. On that understanding Board approves admitting bank to memberPlease rush advice whether or not our understanding ship. correct." Approved. At 1:00 p.m. the Board recessed to reconvene this afternoon.
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