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91 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Tuesday, January 20, 1948. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman Minutes of actions taken by the Board of Governors of the Fed eral Reserve System on January 19, 1948, were approved unani1110Usly. Memorandum dated January 16, 1948, from Mr. Carpenter liecc)mmending the appointment of Mrs. Ludmila Gloria Pelletier "a file clerk in the Office of the Secretary, on a temporary 114816 for a period of six months, with basic salary at the rate cif $1,954 per annum, effective as of the date upon which she ellters upon the performance of her duties after having passed tile Usual physical examination. The memorandum also stated that it Iras contemplated that Mrs. Pelletier would become a member f the Federal Reserve retirement system. Approved unanimously. Letter to Mr. Gidney, President of the Federal Reserve 8e4k of Cleveland, reading as follows: 92 1/20/48 -2- "The Board of Governors approves the reappointments of Messrs. Ssm W. 'Emerson, C. F. Hood, H. P. Ladds, Herman R. Neff and W. Withington as members Of the Industrial Advisory Committee for the Fourth Federal Reserve District to serve for terms of one Year each, beginning March 1, 1948, in accordance with the action taken by the Board of Directors as reported in your letter of January 14, 1948." Approved unanimously. Letter to Mr. Leedy, President of the Federal Reserve Ban.k of Kansas City, reading as follows: "This refers to your letter of December 31, 1947, regarding the operation of your Bank's cafeteria. We note from your letter that the cafeteria expenses you are now absorbing are at a rate less than the 50 per cent authorized by the Board; that to discontinue the servi,Lib of free lunches to service employees will entall increases in the salaries of the employees affected; and that you feel it would be premature to make this change prior to the outcome of the cafeteria study now being made by the Presidents' Conference Subcommittee on Personnel Classification and Job Evaluation. It is also noted that according to Horwath and Horwath your Bank would save the salaries of about SiX employees, whose salaries aggregate slightly less than $7,000, if your Bank substituted cafeteria for table service, and that such saving would amount to around 4 per cent (apparently 14 per cent) of the absorbed expense. "It is understood that the Presidents' Conference Subcommittee on Personnel Classification and Job Evaluation is now studying the question as to the portion of cafeteria expenses that may be justifiably absorbed bY the Federal Reserve Banks with a view to presenting a proposal that would be more acceptable than the one °ffered by the Board, rather than the question of the desirability of serving free meals to certain employees. AS indicated in its letter of December 10, the Board feels that each employee should be paid a salary comMensurate with the work performed and that he should 93 1/2o/48 -3- "be charged for whatever meals are served to him by the Bank. Your letter states that the most effective thing that could be done to reduce further the portion Of the expense which your Bank absorbs would be to make a charge for lunches served to service employees, Other than those in the cafeteria itself. The Board believes that this should be done promptly without waiting for the report of the Subcommittee. "Since it is indicated that the substitution of cafeteria for table service would effect a saving of aPproximately 14 per cent in the cafeteria expense absorbed by your Bank, and as indicated in the rePort of Horwath and Horwath, cafeteria service is much more economical than table service and gives the employees a wider selection of food and a more flexible menu generally, it is the view of the Board that your Bank should take prompt steps to change to a cafeteria basis of operation and to eliminate the deduction of a monthly charge for meals from employees' salaries. It is understood that with the completion of changes now in progress, your Bank will be the only one still furnishing table service to its employees." Approved unanimously. Memorandum dated January 19, 1948, from Mr. Smead, Direc- tor of the Division of Bank Operations, recommending, for the l'eas°ns stated in the memorandum, that $75 be added to the item °fRePair and Maintenance (Furniture and Equipment) in the 1947 4o4„ versonal budget of that Division. Approved unanimousl Secretary. 114)11.07,z52„/ airman.
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