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Minutes for To: Members of the Board From: Office of the Secretary January 21, 199P, 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. Chm. Martin Goy. Szymczak Gov, Mills Gov, Robertson Gov, Balderston Gov. Shepardson Minutes of the Board of Governors of the Federal Reserve System 011 Wednesday, January 21, 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 Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Sherman Secretary Kenyon, Assistant Secretary Fauver, Assistant Secretary Hackley„ General Counsel Solomon, Assistant General Counsel Hexter, Assistant General Counsel O'Connell, Assistant General Counsel Hostrup, Assistant Director, Division of Examinations Nelson, Assistant Director, Division of Examinations Goodman, Assistant Director, Division of Examinations Benner, Assistant Director, Division of Examinations Smith, Assistant Director, Division of Examinations Davis, Assistant Counsel C_irculated to the Board. The following itexns,which ha- been circulated to the members of the Board and copies of which at ched to these minutes under the respective item numbers tridieat,d --) were approved unanimously Item No. to The Chase Manhattan Bank New York, New York, ,e,,tijr o n171,, the establishment of an additional branch in the "le pee. ' anama, Republic of Panama. (For transmittal through ' eral Reserve Bank of New York) A er 1 1/21/59 -2Item No. Letter to The Chase Manhattan Bank, New York, New York, nting an extension of time within which to establish :,oranch at 410 Park Avenue. (For transmittal through ' te Federal Reserve Bank of New York) 2 n Let ti 'te-r to the First Trust & Deposit Company, Syracuse, selgYork, consenting to a proposed merger with the De Ruyter Intate Bank, De Ruyter, New York, and approving the establishpent °f a branch in De Ruyter. (For transmittalthrough the ederal Reserve Bank of New York) 1L4eitter to the Manistee County Savings Bank, Manistee, vi ligarly approving the establishment of a branch in the RZ'age of Onekama. (For transmittal through the Federal --erve Bank of Chicago) Letter to cali the American Trust Company, San Francisco, Mor,:°rnia, approving the establishment of a branch in Bal, -rn Hill. (For transmittal through the Federal Reserve of San Francisco) 3 4 5 Messrs. Nelson and Goodman then withdrew from the meeting. APplication of First Security Corporation. C°rPoration First Security Salt Lake City, Utah, had applied, pursuant to section (a)(2) of the Bank Holding Company Act for approval of acquisition Of the o utstanding common stock of the Fillmore State Bank, Fillmore, Utah Memoranda from the Division of Examinations dated January 12 -"tiarY 15, 1959, respectively, had been distributed to the members Of the Board along with a memorandum from the Legal Division dated 4411arY 19,1959. The recommendation of the Federal Reserve Bank of San Pranctseo vas favorable, the Division of Examinations recommended that, 11°tice of tentative decision granting the application be 1/21/59 -3and the Bank Commissioner of the State of Utah interposed no objec+4 ..-Lon to approval of the application. The Legal Division stated that al though the case was not free from all question and involved a Matter of judgment, it Was sustained by the courts as felt that a favorable decision -would be resonable exercise of the Board's die- erstion. On the other hand, it was deemed unlikely that disapproval l'otild be considered by the courts as an abuse of the Board's discretion. Summarizing the matter in the light of the factors required to be considered pursuant to section 3(c) of the Bank Holding Company Act 'Mr. Hostrup said there was no question with respect to the fihancial condition, prospects, or management of the applicant holding company. However, it must be noted that the proposed transaction involve absorption by the largest bank in Utah of its only c°mPetition in the local area, since First Security Corporation had Indicated its intention to convert the Fillmore State Bank into a 1)1' eh of its subsidiary bank in Ogden. As to the local bank, its tna ncial history and condition were satisfactory, but the bank had been drifting since the death of the former owner. The present owner, 8'11 ett°rneY for First Security Corporation, had reportedly been unable —124'°Y competent management and the bank's prospects therefore were 11°t t°c1 strong. From the standpoint of convenience, needs, and welfare, it Might be said that the community was entitled to banking services, ll that the solution lay in other interests taking over the institution. 1/21/59 Purchase by First Security Corporation would contribute to the soundof the bank and the proposed transaction would not appear to have the effect of damaging the soundness of any other bank in the general area. The Fillmore trade area represented only a small segment of the PoPulation and the economy of the State, the natural flow of trade from pillmore appeared to be in the direction of cities where First Security Corporation banks operate, and the transaction would not illvolve the elimination of alternative sources of banking services. Mr. Hackley said that this matter, on its face, presented "tile serious questions, particularly since approval would result in the h°1ding company controlling all of the banking offices in Millard Cow— v, and the Legal Division therefore had discussed at length the 10851 ble application of the Clayton Act. Considering, however, the ecohohlv -v and the geographical nature of the area, it was felt that the c°114tY probably would not be regarded as a "section of the country" r°/* the purposes of the Clayton Act. The trade area would include 814111)1Inding counties and, on balance, it was the view of the Legal pi N'-a4JQn that there would be no tendency toward monopoly or lessening c°MPetition within the meaning of the Act. Continuing, Mr. Hackley said it appeared that the proposal contribute to the needs, convenience, and welfare of the Utifu ta because it would provide more complete banking services area than now available. Consequently, the Legal Division 3t1/21/59 c°ncluded that approval of the application would be consistent with the statutory factors mentioned in the Bank Holding Company Act. At the instance of Governor Balderston, there followed c°111 ents on the area's geographical characteristics, the mileage rrom Fillmore to various banking points, and the availability of alternative banking services. The members of the Board then expressed their tentative beginning with Governor Mills who read the following statement: t On the basis of the information submitted with respect c: the First Security Corporation's application to acquire the Fillmore State Bank, it is the writer's judgment that the application should be denied unless an extensive public hearing is held that would permit representations by all parties that might be at interest in the matter and the results of which would incontestably justify approval. In recommending a denial of the application in its present S b% ' e tus, there is no hint of criticism attached to the sta,„11tY of the First Security Corporation or the integrity nd ability of its management. The question raised regarding e application focuses on the public interest and the c,sulting effects on the State of Utah's banking structure aPprovel were granted. It is acknowledged that absorption the Fillmore State Bank by the First Security Corporation would not substantially increase the latter's control over ba h4ing offices and banking assets in the State of Utah, in that.,onlY 35.71 per cent of banking offices and 33.55 per cent ra -L11C deposits would be controlled. Notwithstanding that ' r it is important to observe that First Security Corporation b4lt • represent the only banking offices in six of the counties ar 14hich operations are conducted. In sparsely populated the country, banking offices located in county seats 141e more importance than would be true of banking offices other1.7-L:1 , to"' situated, in that the cohesive importance of banking thee°Inmunity life rises in degree whenever it centers about activities of a county seat. Viewed in this manner, the r 1/21/59 -6- dispersion of First Security Corporation banking offices in a vaY that allows control of banking operations in many important county seats vests in it a greater degree of financial dominance than would be true in more highly populated areas of the country, where the location of banking offices is melted down by a greater range of economic activities. Also based on this reasoning, the percentage Of the First Security Corporation's control of banking offices and IPC deposits in the State of Utah embraces greater market Power than would be true of a similar percentage of control Of banking offices and bank deposits in more densely populated areas of the country. Mr. S. J. Quinney's financial control of the Fillmore State Bank is likewise a subject that should be fully disclosed at a public hearing. In considering the First Security Cor poration's application, it must be recognized that there are other banking interests operating in the State, namely, the F irstamerica Corporation and the Cosgriff interests. It swould be improper to approve the application in its present tat116 without a public hearing that could admit evidence from these two interests should they be disposed to make rePre sentations. Furthermore, a public hearing would offer oPPortunity for any of the independent banks in the area Z: object to or concur in the application should they wish take positions regarding it. Governor Robertson, the next Board member to speak, favored aPProv al of the application, stating that he thought it was of the tYPe co nte mplated for approval by the Bank Holding Company Act. That Act, he suggested, left the door open for holding company eXPanion v in cases where the convenience, needs, and welfare factor 1 " 11 str„g enough to outweigh any unfavorable aspects under the Q°17113stitive factor. The present case involved a small bank, essentially one_man o peration, and the closest banking point was some clist ' Iht• 4o miles When the executor of the estate of the former owner wanted 1/21/59 -7- Sell the bank and the present owner, an attorney for First Security Corporation, came into the picture, question was raised with regard tp Possible violation of the Bank Holding Company Act, but that aspect /las not before the Board today. 'WU not The present owner, being a lawyer, particularly interested in the banking business and it seemed /314ite natural that the holding company with which he was associated desired to take over the bank. This, incidentally, could be done Under a lternative arrangements which would not require approval under the Bank Holding Company Act. Continuation of banking services in the c°mmunity appeared to depend on obtaining someone with necessary cillalifications, and acquisition of the bank by First Security would Provide a solution. Governor Shepardson agreed with Governor Robertson, adding that altho ugh he would have no particular objection to a hearing on the matter, he questioned whether it was necessary. Governor Szymczak indicated that on the basis of the available data he I./Quid be inclined to go along with the position of Governor 1°13ertson. However, he recognized the argument in favor of holding e. PUbli hearing when a close question was involved. In a further cc4/1111ent, he suggested that the Board might be tending to debate a the°Tetical question in considering the competitive aspects of the 1114tt" inasmuch as the Fillmore bank was already under the control of 4 e r-Pl'esentative of First Security. 1/21/59 -8Governor Balderston said that he did not like to see freedom of choice as to banking services restricted to the extent that it 83)Parently would be restricted if this application were approved. °n the other hand, the Fillmore community and surrounding area was such a tyre as to suggest that the population was fortunate to have one good banking institution. favor On balance, he was inclined to approval of the application for the reasons set forth in the t4fr memoranda, even though his position was shaken somewhat because he cl°11bted whether the record, as it now stood, provided any clear 8418ver to the question raised by Governor Mills about the possibility t other interests being desirous of entering the area. It vas noted by Mr. Hexter that an alternative procedure would e for First Se curity to merge the Fillmore bank into a subsidiary Ile.tionto, 'yank under conditions -where only the approval of the Comptroller Or th e Currency for establishment of a branch in Fillmore would be recillired• bUt later At one time he said, such an application was submitted withdrawn. Chairman Martin indicated that he would be inclined to agree Vith 0 , -Vernor Mills concerning a hearing if it were not for the fact that thi 1m5 such a small matter as to raise the question of the tecess4 -4tY for going through that procedure. In all the circumstances) he %rolaa be i nclined to approve the application without a hearing. 1/21/59 -9When Governor Mills suggested that an application should be denied where there was doubt, Chairman Martin said he saw no consistency ifl denying an application where there was not sufficient evidence to Support denial. If, in any case, there appeared to be no strong arguments either for approval or for denial, he felt, as he had said during ll'evicals discussions of the same subject, that one must consider the eight of the evidence and reach a decision accordingly. It was then decided, on the basis of the views expressed by the iciritY, that the Legal Division would draft for the Board's Consideration a notice of tentative decision granting the application. In this c onnection, it was agreed after some discussion that, in Cordab —ce with the decision reached when the procedure for issuing tent ive decisions was instituted, the tentative decision in this elte should be drawn up on a basis that would not reflect the existence or Illinority opinion. This reaffirmed the reasoning of the Board that a tentative decision merely constituted information of action 1:11'°13°13ed to be taken by the Board in order to provide an opportunity to rnments by interested parties and that an indication of votes at ellch, o, 'would be premature. Messrs. Solomon, Hexter, O'Connell, and Davis then withdrew the meeting. 1/21/59 -10- Meeting with Price Waterhouse representatives. Martin Chairman reported that, pursuant to the understanding following informal dlacusaion by the Board, he had ascertained that appropriate repreeentatives of Price Waterhouse & Co. could meet with the Board on .‘el:TuarY 9, 10, or 11, 1959, to review the report made by the firm eerie Ming its survey of procedures followed during the 1958 examination of the Federal Reserve Bank of Boston by the Board's examining staff. Since there developed to be conflicts on the dates mentioned, t s 1111A2111221 that other possible dates would be discussed with th4 aCCOthating firm. srs. Hostrup and Smith then withdrew from the meeting. alle .Ia_appointments. After discussion of possible appointees, ltglIal unanimously to request the Chairman of the Federal rve Bank of New York to ascertain whether Mr. James DeCamp Wise, of the Board of Bigelow-Sanford Carpet Company, New York, e ould be willing e. C1413 C to accept appointment, if tendered, as director of the Federal Reserve Bank of New York for the lalired portion of the term ending December 31/ 1961, with the kulderstanding that the appointment would be made if it were found that Ile 041d accept. Mr. Daniel M. Dalrymple having resigned from the Board of ee of the Buffalo Branch, it was agreed unanimously, after 1/21/59 -11- e°11sidering names mentioned in a memorandum from Mr. Fauver dated jelluarY 21,1959, to request the Chairman of the New York Bank to ascertain whether Mr. Cameron G. Garman, a farmer of Burt, New York, 17(414 accept appointment, if tendered, as a director of the Branch t6r the unexpired portion of the term ending December 31, 1960, with the un derstanding that the appointment would be made if it were found that • Garman would accept. In the event Mr. Garman should not be available, it was agreed to make similar inquiry with respect to Mr. Ma) , -cuR Buckman, Manager of Sodus Fruit Farms, Inc., Sodus, New York. Secretary's Note: The availability of Messrs. Wise and Garman having been ascertained, appointment telegrams were sent to them on January 23, 1959. Matter of Continental Bank and Trust Company (Item No. 6). Governor Shepardson referred to previous informal discussion by the toard concerning fees paid to Mr. Bolling R. Powell, Jr.,as Special C°141ael for the Board in the proceeding against Continental Bank and '4118t Company, Salt Lake City, Utah. He reported that for legal services rendered and miscellaneous expenses incurred during the belIM JulY 1 through December 31, 1958, Mr. Powell had submitted a v°11eher in the amount of $20,551.25, which appeared to represent a (1°1111/fard adjustment of perhaps $3,000 from the amount Mr. Powell QQ111c1 have claimed wider his contract with the Board dated May 25, 1956, e414:1 that Mr. Powell further suggested an amendment to the present scritract under which the nwcinalmn amount payable to his firm in any 1/21/59 -12- calendar year would be $36,0007 exclusive of transportation, per diem, and outof-pocket expenses. In a memorandum dated January 151 1959, Mrs lisekley had recommended approval of the voucher and acceptance of the proposed modification of the retainer agreement, effective jarillarY 1) 1959, and Governor Shepardson indicated that he concurred. In discussion, Governor Shepardson observed that although an arillUal maximum of $15,000 is usual for outside counsel retained by the DePartment of Justice, that Department provides such items as I'll "space, stenographic assistance, law library services, and 8111)1111es. It was his opinion that the proposed modification of the t..14 r agreement was probably as reasonable and equitable an arrangement s e°111d be achieved. the were Pursuant to Governor Shepardsonts recommendation, payment of °licher as submitted and modification of the contract as proposed 222.E2Y21 unanimously. A copy of the letter sent to Mr. Powell Attre,„, —..wc to this action is attached as Item No. 6. In response to a question, Mr. Hackley stated that it seemed Y to be late spring or early summer before the Continental matter -Ne the Board for decision. Mx. Hackley then withdrew from the meeting. or e. Price Waterhouse bill. Governor Shepardson stated that payment bill °r $9,000 received from Price Waterhouse & Co. covering its 81.11...ve Y Or Procedures followed in the 1958 examination of the Federal 1/21/59 -13- Reserve Bank of Boston would result in an expenditure of $1,500 beyond the 1958 budgetary provision for that purpose. absence He said that in the of objection he intended to approve payment of the bill along 'clitn the resultant budget overexpenditure, as recommended in memoranda frcml the Division of Examinations and the Board's Controller. Governor Shepardson also said that the Controller had raised '41th him informally the question of the need to continue the surveys On an annual basis and that he had authorized the Controller to prepare a temorandum of his views on the subject. After discussion, it was understood that Governor Shepardson aPprove the payment of the bill and the budget overexpenditure beh a-- of the Board. It was assumed that no additional charge /r°111d bA -- made incident to discussion of the survey report with the bY representatives of Price Waterhouse & Co. SPring meeting of Chairmen's Conference (Item No. 7). rIzrther With r eference to the possibility of a spring meeting of the Cont rence of Chairmen of the Federal Reserve Banks, as previously 'alled at the Board meeting on December 18, 1958, Governor Shepardson Rtkted 41, 'ilat upon further consideration of the Board's prospective 8ehecbo ' - e and related matters, he would recommend advising the Executive e°rrinlit e t of the Conference that the Board did not find it feasible t° De. l‘tieiPate in a spring meeting this year and therefore wished to 'ICJ 1/21/59 suggest deferral for another year of the plan under which a spring meeting would be held with chairmen of the branch boards in attendance. There was unanimous agreement with Governor Shepardsonis reecminendation. A copy of the letter sent to the Chairman of the Chairments Conference pursuant to this action is attached as Item No. 7. Agenda for meetings with Federal Advisory Council. Governor ShePardson reported having discussed with the Secretary of the Board cill"tions relating to the preparation and content of the agenda for jot" meetings of the Board and the Federal Advisory Council. After 11"ing that the agenda topics suggested by the Board tended to be kite s tandardized and that ordinarily no additional topics were 814g"sted by the Council, he proposed inquiring at the joint meeting PebrilarY 17, 1959, whether the Council would like to suggest any reIrision of current procedures, with the understanding that the Board vould be glad to consider any suggestions the Council might have. There was unanimous agreement that the question should be raised with the Council at the next joint meeting on the basis atifv, 'Eelated by Governor Shepardson. PAEectorst day program. sheparcia°n as Question was raised by Governor to the type of speaker deemed most appropriate for the 4-uner on the evening of Thursday, February 19) preceding the arbaual Program for newly elected or appointed Reserve Bank and • 1/21/59 -15- branch directors. After some discussion, it was the consensus that 1/ou1d be desirable to obtain some outstanding figure in public lite and that a person of such stature who had previously served in 8°1e capacity with the Federal Reserve System would be particularly 13ProPriate. The meeting then adjourned. Secretary's Note: Governor Shepardson today approved on behalf of the Board the following items: item N Letter to the Federal Reserve Bank of San Francisco (attached 7F,r1r.„-2z.J.) designating Albert R. Koch, Associate Adviser, Division Ellii;search and Statistics, to participate in the central banking -ar to be held at that Bank in March 1959. ilicreo Memoranda from appropriate individuals concerned recommending Board:4es in the basic annual salaries of the following persons on the staff, effective January 25, 1959: to $513,e,rnice T. Mann, Secretary, Board Members' Offices, from $5,090 <40 per annum. r 01 .t); lin E. Reynolds, Economist, Division of International Finance, T-L0,130 to $10,370 per annum. Viol 4-et Herrmann, Cafeteria Helper, Division of .P,Jiministrative from $3,720 to $3,815 per annum. Plo, viceszence A. Norman, Relief Cook, Division of Administrative 'from $3,635 to $3,730 per annum. tallos LetI ter to the Federal Reserve Bank of Richmond (attached e l41111.74-ie approving the designation of six persons as special assistant f;I 01. BOARD OF GOVERNORS DE ti‘ 11)11,,V , THE FEDERAL RESERVE SYSTEM 6•: , , WASHINGTON 25. D. C. 4 ?, Item No. 1 1/21/59 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD ' J4 ' 4 *0* January 21, 1959. The Chase Manhattan Bank, EiplIteen Pine Street, New York 15, New York. G entlemen: The Board of Governors of the Federal Reserve SYstem authorizes The Chase Manhattan Bank, New York, New Irk, Pursuant to the provisions of Section 25 of the !ederal Reserve Act, to establish an additional branch in t anama, to be located at the corner of Via Espana and : Jiquilino de la Guardia Street, Panama, Republic of Panama, and to operate and maintain such branch subject to the °v1sions of such Section; upon condition that, unless ne is actually established and opened for business °r , 1 or before February 1, 1960, all rights granted hereby be deemed to have been abandoned, and the authority erebY granted shall automatically terminate on such date. 13J Please advise the Board of Governors in writing, through of New York, when the • the Federal Reserve Bank Qran 1, i „ s established and opened for business. It is under— 1Stood that no change will be made in the location of the ranch without the prior approval of the Board of Governors. . Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Stretary. VI',.•"'s BOARD OF GOVERNDRE; OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 2 1/21/59 AOONCEIES OFFICIAL CORREBPONOCNCE TO THe BOARD January 21, 1959. .1r1„1° _ ar°. °I* Directors, : [le Chase Manhattan Bank, 'Jew Ycrk, New York. Gentlemen : In accordance with the request submitted through the P to nal Reserve Bank of New York, the Board of Governors extends Ba:1"ber 16, 1559, the time within which The Chase Manhattan ' I lew York, New York, may establish a branch at 410 Park el New York, New York. Very truly yo (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 3 1/21/59 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO TI-SE BOARD January 21, 1959. Beard of Directors, First Trust & Deposit Company, SYracuse, New York. Ge ntlemen: Pursuant to your request submitted through the Fed eral Reserve Bank of New York, the Board of Governors gives its written consent, under the provisions of m-"Ion 18(e) of the Federal Deposit Insurance Act, to the rCer of De Ruyter State Bank, De Ruyter, New York, into r ,rst Trust & Deposit Company, Syracuse, New York, and apt'. oyes the establishment of a branch in De Ruyter. This atnYal is given provided the transaction is effected subin accordance with the terms of the agreement of t'er as submitted, formal approval of State authorities b8;4eveve at the time the merger and establishment of the effected, and this proposal is concluded within months from the date of this letter. 4 Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. , BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. L. 1/21/59 AllOrit:86 OFFICIAL CONI4I t;PONOENCE. TO loft_ HilA1-40 January 21, 1959. Board of Directors, The Manistee County Savings Bank, Manistee, Michigan. Gentlemen : Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors of t,he Federal Reserve System approves the establishment of a ,I5 anch at 4968 Main Street, in the Village of Onekama, 1.1.3tee County, Michigan, by The flanistee County Savings 211k, provided the branch is established within six months Ijom the date of this letter, and the approval of the State oUthorities is in effect as of the thltE of the establishment f the branch* Very truly yours, (Signed) KennethA. Kenyon Kenneth A. Kenyon, Assistant Secretnry* BOARD OF GOVERNORS OF THE Item No. 5 FEDERAL RESERVE SYSTEM 1/21/59 WASHINGTON 25, O. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD January 21, 1959. Board of Directors, American Trust Company, San Francisco, California. G entlemen: Pursuant to your request submitted through the Federal Reserve Bank of San Francisco, the Board of i.?yernors approves the establishment of a branch in Morgan n111, California, by American Trust Company, San Francisco, k-salifornia. This approval is given provided the branch is "tablished within one year from the date of this letter that formal approval of State authorities is effective at the time the branch is established. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. BOARD OF GOVERNORS OF THL FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 6 1/21/59 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD January 21, 1959 Bolling R. Powell, Jr., Esq., Powell, Dorsey, Blum & White, K Street, N. W. iwashington 6, D. C. °ear Mr. Powell: This refers to your letter of December 30, 1958, enclosing You.r. f, the ' rm's voucher covering professional services in connection with SaltPrlding proceedings against Continental Bank and Trust Company, clown : 4k° City, Utah. It is noted that the voucher has been adjusted iiard in accordance with recent conversations between you and this ackleY, the Board's General Counsel; and your cooperation in respect is appreciated. In connection with the continued services of your firm in this acki tmatter, , your letter states that it will be agreeable to you to Board° the existing retainer agreement between your firm and the as contained in the Board's letter of May 25, 1956, a proviso to $36n the maximum amount of fees payable in any one year thereunder corda,,,o0. The Board is in agreement with this proposal and, acagresmg'-Y, it is understood that the second paragraph of the retainer as aiii-ent as contained in the letter of May 25, 1956, is to be regarded ended, effective as of January 1, 1959, to read as follows: "It i 01 , -s understood that the Board will pay you at the rate 1-10 250 a day for days when it is necessary for you to on this matter at any place outside of Washington, and at the rate of $25 an hour for work performsd b, Idaashington, D. C., plus $10 an hour for work performed Juniors and assistants in your firm; provided that the se3rcilmilll amount payable to you in any calendar year for notvices rendered under this retainer arrangement shall exceed $36,000." 4 4Rrepril,,,,. It is understood, of course, that this change in the retainer "t11,11.7' does not affect provisions of the agreement for payment of ' r4hsportation expensPs and per diem in connection with necessary BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Bolling R. Powell, Jr., Esq. -2- :vel t and that, consequently, the $36,000 maximum is exclusive of exPenses and other out-of-pocket expenses incurred by your in connection with the performance of services under the agree- Very truly yours, cv Merritt tip Secretary. BOARD OF GOVERNORS 414** , ,4i21 4,40 4441',,0 401, qr.'1. 4C1t, 41 / t% OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 7 1/21/59 ADDRESS OFFICIAL CORRESPONDENCE ' 4100:1 ,14,-4tt.4440- TO THE SOARD January 26, 1959 Mr, Robert J. Smith, Chairman, Federal Reserve Bank of Dallas, °alias 2, Texas. Dear mr. Smith: The Board has considered the suggestion that during the Of 1959 there be a meeting of the Conference of Chairmen or he Federal Reserve Banks to which the Chairmen of the boards xecto1.3 of the Reserve Bank branches also would be invited, mee,it has come to the conclusion that the calling of such a ' reach'ig should be deferred for another year. This conclusion was in.ed after considering the calendar for the spring of 1959, not only the known demands upon the Board and members of staff in connection with Congressional hearings but also the fa be° raet that some extended absences of members of the Board may necessary. 8Prinr, ^ Of t'' keetiThe Board still feels that there is much to be said for a airo,ng of the type proposed, and it will be glad to consider a proposal a year hence. Sincerely, erma Merritt Secretary. 370 BOARD OF GOVERNORS OF THE Item No. 8 FEDERAL RESERVE SYSTEM 1/21/59 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORMESF.F.JNOENCE TO THE HOARD VAA '4110* January 21, 1959 u Mr. m N. Mangels, President, 2ederai Reserve Bank of San Francisco, °4r1 P ancisco 20, California. Dear mr. mangels: letter of The has considered the request in your Jarituo,. k Board Governors of Board the rti'f 14, 1959 that a representetive of the at held be to r ed-kelpate in the central banking semina 6, and 5, , 4 1 March ameral Reserve Bank of San Francisco on theit has designated Mr. Albert R. Koch, Associate Adviser in is Division of Research and Statistics, for this purpose. It 401,8sumed that you will wish to communicate directly with Mr. which you wish haconcerning the sessions of the seminar in to " vs him take an active part. r Very truly yours, Secretary. •?, BOARD OF GOVERNORS OF THE Item No. 9 FEDERAL RESERVE SYSTEM 1/21/59 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD January 21, 1959. 11r. N. L. Armistead, Vice President, Federal Reserve Bank of Richmond, Richmond 13, Virginia. Dear mr. Armistead: In accordance with the request contained in your letter of January 190 1959, the Board approves the designation .IssisZLthe following employees of your bank as special examiners for the Federal Reserve Bank of Richmond lor the purpose of participating in examinations of member bank : only Arthur N. O'Brien 0. Ridgely Flohr Joseph A. Mryncza Salvatore J. Spinnicchio Robert A. Perry of William N. Roberts_ The Board also approves the designation Federal the as a special assistant examiner for serve in participating Bank of Richmond for the purpose of exa 8a nitnations of member banks only except The First Union National rik of North Carolina, Charlotte, North Carolina. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary.
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