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79 A meeting of the 2ederal deserve Board was held in the office of the 'Federal aeserve Board on Monday, January 25, 1926 at 11:15 a.m. PAESENT: Vice Oovernor Platt Mr. Hamlin Mr. James Mr. Cunningham Mr. Eddy, Secretary Mr. LcClelland, Asst. Secretary Report of the Law Committee on memorandum dated January 18th from 4asistant Counsel, with reference to the application of Mr. B. Volk, Jr., for permission to serve at the same time upon the directorates of the 1/410n rational Bank and the Peoples city .3ank, both of :.Tcl,reesport, Pa.; stating that the banks are in competition for nearly all classes Of business and the Board has no legal po.:ser to grant the application, but l'ec ommending that action thereon be suspended by the Board for a period of thirty days pending possible enactment of the amendment to the Clayton Act slIggested by the Board which would permit interlocking dir.actorates between barlks Which are already in substantial competition. Upon motion, it was voted to defer action upon the above application. Memorandum dated January 22nd from the Chief of the Division of sank °Perations, advising that the services of Miss Ladelon i. Chatfield, comptometer °Perator in the Division, were terminated at close of business January 20th, 192z v, and that iaiss Louise 13arnard had been appointed for a period not to ex2e(la three months, beginning January 22, 1926, at an annual salari of ,e1300. lloted, with approval. deport of Committee on Salaries and Expenditures on letters dated jEtrillary 23rd from the Comptroller of the Currency, recommending approval of 80 1/25/26 Increases from 45500 to 46,000 per annum, and from *1600 to 46500 per annum, respectively, in the salaries of National Bank Examiners Thomas A. Dwyer and Clarence F. Smith; the Committee also recommending approval. Approved. deport of Committee on Salaries and Expenditures on letters dated January 26rd from the Comptroller of the Currency, recommending approval Of saiaries of 93,000 each for National Bank Examiners O. W. Beaton, L. C. 1-43111ing and H. z. Persons, all to be assigned to the 2nd Federal deserve District; the Committee also recommending approval. Approved. Telegram dated January 22nd from the Chairman of the Federal Aeserve 344k of Cleveland, advising of the reelection of Mr. George A. Coulton as %bar of the Federal Advisory Council from .the 4th Federal Aeserve District for the year 1926. Noted. Letter dated January 23rd from Mr. John Omwake, director of the et einnati Branch of the Federal deserve Bank of Cleveland, advising he has Cincinnati, 14414 aPpointed a member of the Bureau of Municipal Aesearch in 441i inquiring whether this is to be considered a political appointment withthe Board's definition of such. ' Upon motion, it was voted tnat the Board should interpose no objection to Mr. Omwake serving as a member of the Bureau named. dated deport of Committee on Salaries and Expenditures on letter requesting approval jatillarY 19th from the Federal Reserve Agent at Chicago, 13f* he employment of Mr. w. a. Diercks as field man in the Failed Bank 81 1/25/26 -3- Department, with compensation at the rate of •J275 per month; the Committee recommending approval. Approved. Letter dated ,,anuary 22nd from the Federal deseiwe Agent at New York, advising of authorization issued by the New york State Banking Department to the Manufacturers and 2raders 2rust Company of Buffalo for the establishment of a branch at 2658 Main Street, Buffalo, the former location of the central park Bank of Buffalo which has been merged with the .1anufacturers and Traders 2rust Company. Noted. Memorandum from the Division of Examinations with reference to letter .dated January 20th from the Assistant Zederal deserve Agent at lielv York, transmitting and recommending approval of a request of The 1.11.1qi-Loipal Bank, Brooklyn, N. Y., for an extension of thirty days from jalluary 15th of the period in which they may accept conditions of membershiP in the system; the memorandum also recommending approval of the extension. Approved. Letter dated January 18th from the Chairman of the Federal Reserve 1k of soston, advising that the Union Trust Company of Providence, A. I. has aot yet established the branch at Pawtucket approved by the Board on /'Etbrn,„ -- rY 10, 1925, and requesting that the Board's permission for the establishMent of this branch be extended until Jul-i 15, 1926. Thereupon ensued a discussion during which Mr. James suggested that such an extension would 82 1 1/25/26 not seem to be necessary inasmuch as Pawtucket is contiguous to the city of Providence, and the Union :2rust Company can at such time as it is ready to establish a branch there file application for permission to do so under the Board's Aegulation H. After discussion, the Secretary was directed to advise the chairman of the Federal Aeserve 3ank of 3oston accordingly. The Vice Governor then presented matter approved on initials on January 2211d, namely, letter dated ,January 21st from the Governor of the Federal Ileserve 3ank of New York, advising of the action of the board of directors Of that sank in authorizing an offer of 4600,000 for the purchase of the /Jeal ufacturers and 2raders 14ational Bank Building in suffalo as quarters for the Branch Federal deserve sank there, subject to the approval of the Federal lieserve Board and the approval of Congress If necessary; the Governor in his letter stating that the 'xecutive Committee of the Manufacturers and Traders TI llst Company has accepted their offer, subject to the conditions mentioned, ' 44cl it is expected that the board of directors of the bank will affirm this 4ction this week; the Governor further stating that the directors of the Federal aeserve bank having determined they should not make the purchase Without Congressional authority, it is their purpose, as soon as possible, to have the necessary resolutions introduced in Congress. Upon motion, it was voted formally to approve of the Federal Aeserve Bank of New York purchasing the building mentioned at a price not to exceed 4600,000 and to interpose no objection to the introduction of a congressional resolution authorizing the expenditure. A Letter dated January 21st from the Deputy Governor of the Federal ieserve Biklut Of New York, enclosing and requesting approval of a proposed form of agree.- 83 1/25/26 -.5- Ment between that bank and the Swiss National Bank, similar to those entered ihto With other foreign central banks. Upon motion, the proposed agreement was approved. Letter dated Oanuary 21st from the Secretary of the Federal eserve York, advising that the board of directors on that date reviewed Of and made no chanp:es in the existing schedule of rates of discount and purchase in effect at that bank. Noted, with approval. lelegram dated January 20th from the Chairman of the Federal Reserve Bkak Of Philadelphia, advising that the board of directors on that date made chan at . go in the existing schedule of rates of discount and purchase in effect that bank, Noted, with approval. Telegram dated January 22nd from the Chairman of the Federal Aeserve .13.11k Of Chicago, advising that the Executive Committee on that date made no change in the existing schedule of rates of discount and purchase in effect at that b an Noted, with approval. Telegrams dated January 20th and 21st from the Chairman of the Federal ' eserye 3ank of St. Louis, advising of rates of discount and purchase in effect BA that bank. lAted, with approval. Telegram dated January 21st from the Chairman of the Federal eserve 1341 of 'a./1 Francisco, advising of rates of discount and purchase in effect at that bank. Noted, with approval. Letter dated January 22nd from the Deputy trovernor of the Federal --ve Bank of 14ew York, advising that money conditions there are easing °°Iisiderably with the result that a moderate demand for short term governMeat securities has sprung up, and advising further that they are inclined tO the view that it might be well to supply the market from time to time with a moderate amount of these securities, not exceeding y50,000,000, from the ystem's Open Market Investment Account, as and when they receive definite Orders for same. Noted, with approval. Telegram dated Janlaary 19th from the Chairman of the Federal deserve 13allk of Chicago, advising of time and demand loans made by member banks in that city to brokers on stock exchange collateral, both for their own account 44c1 for account of correspondent banks, during the weeks ending January 6th and January 13th, in both the Chicap:o and New York markets. Noted. Memorandum from 0ounsel dated January 22nd, submitting letter to the Secretary of the Treasury, requesting him to transmit to the Attorney General of the united States a form of letter enclosed, requesting an opinion as to the legal authority of the Federal eserve Board or a Federal deserve bank to abolish or discontinue an existing Federal deserve Branch Bank, the cone tikza" 0 of which it believes to be unnecessary. After amendment to the nroposed letter to the Attorney General, to be signed by the Secretary of the Treasury, both letters were approved. kpi.‘ 85 1/25/2i, -7- Memorandum dated january 20th from Assistant Counsel, submitting letters tO the Chief of the Division of .00kkeeping and iarrants and to the Commissioner raf the Public Debt, both of the Treasury Department, with reference to H. a. 660, a bill to direct the Secretary of the r2reasury to pay the sum of 4200,000 tO the 3anks College of Philadelphia for damages alleged to have been sustained by the College in 1918 due to the failure of the Federal aeserve 3ank of Philadelphia to renew a lease held by the college on space in a building owned bY the Federal Reserve Bank. Upon motion, the proposed letters were approved. Letter dated January 20th from the Chairman of the Federal Aeserve 844k of Atlanta, advising of the death on J anuary 17th of Lr. P. A. Kittles, Class "A" director of that bank. Noted. Memorandum from Counsel dated January 20th, with reference to the app. cation of Ar. Lee A. Phillips for permission to serve at the same time 48 dArector of the California Trust Company and the iirst National Bank, both ()f Los Angeles, California; counsel stating that these institutions do not e°111Pete in any way and the application may legally be granted, but calling 4ttention to the fact that the iirst 'iational Bank competes with the California 44k, an affiliation of the California Trust Company. The Law Committee re- further. that the California 2rust company competes with the Pacific 3°11thwest Trust and Savings Bank, which is affiliated with the First national Upon motion by Mr. iam1in, it was voted to approve 1.1r. Phillips' application. 3 86 1/25/26 -8- At this point, Mr. McIntosh entered the meeting and the Board proceeded With a hearing to show cause Idly the Peoples Bank and Trust Company, Bell Buckle, Tenn. should not be required to surrender its stock in the Federal iteserve Bank of Atlanta And to forfeit all rights and privileges of member- 8111P in the Federal Reserve System. No one applaring on behalf of the Peoples Bank and Trust Company, 8'311 Buckle, Tennessee, at the said hearing before the Federal Reserve Board, that bank having waived its right to appear at the said hearing under the terms °f Section 9 of the Federal Reserve Act; and it appearing to the Federal Reserve B°41"d that the said Peoples Bank and Trust Company, Bell Buckle, Tennessee, has tailed to comply with the provisions of Section 9 of the Federal Reserve Act 14 that it has reduced its capital stock to an amount less than that required 1317 section 9 of the Federal Reserve Act of 3tate banks and trust companies Vhinu are members of a Federal reserve bank; Upon motion duly made and seconded, the following resolution was unanimously adopted by those present: WHEREAS, it appears to the Federal Reserve Board from a consideration of the evidence and information received by it that the Peoples Bank and Trust Company, Bell Buckle, Tennessee, has failed to comply with the provisions of Section 9 of the Federal Reserve Act in that it has reduced its capital stock to an amount less than that required by Section 9 of the Federal Reserve Act of State banks and trust companies which are members of a Federal reserve bank; NM, THERETO -1E, BE IT RESOLVED, that the Federal Reserve Board require and direct the Peoples Bank and Trust Company, Bell Buckle, Tennessee, under the terns of Section 9 of the Federal 'Reserve Act as amended to surrender its stocrc in the Federal Reserve Bank of Atlanta and to forfeit all rights and privileges of membership in the Federal Reserve System as of the date on which notice of this action on the part of the Federal Reserve Board is received by the said bank. 87 -9- The Vice Governor then presented application of the Orange City National Bank of Orange City, Iowa, for permission to exercise general fiduciary powers; to with a memorandum from the office of the Comptroller of the Currency l'eb ornmending approval of the application. Mr. Platt stated that he had been 1311141111ng to recommend approval because of the 25,OOO capitalization of the tution. After discussion, Mr. Hamlin moved approval of the application. Mr. Hamlin's motion being pat by the Chair was carried, Mr. Platt voting "no". Letter dated January 22nd from the Chairman of the Federal Heserve -- of Chicago, transmitting and advising of action by the board of directors Of that bank on report submitted by a special committee appointed to consider the Taestion of the erection of a building to house the Detroit Branch of that bank; the Chairman calling attention to a suggestion of the special comMittee, approved by the board of directors of the bank, that the Board send Its ,, - Arn committee to Detroit for the purpose of considering the entire matter Joint committee of the Federal Aeserve Bank of Chicago and the Detroit After discussion, Mr. James moved that the above matter be referred to the committee on District 47 with the request that the Committee make a personal investigation by visit and report to the Board. Carried. The minutes of the meetings of the Federal Hesarve Board held on January 19th , `4111- 21st were then read and approved. 88 V25/26 al,p0ATS -10- OF STANDING COMMI`2.23ES: Dated, January 20th, aecomm?.nding changes in stock at Federal deserve banks Book of this date. 21st, as set forth in the Auxiliary Minute Approved. 23rd, 25th, Dated, January 25th, aecommending action on applications for fiduciary powers this date. as set forth in the Auxiliary Minute Book of Approved. Dated, January 25th, aecommending action on applications for fiduciary powers this date. as set forth in the Auxiliary Minute Book of Ordered held. Dated., January 20th, Aecommending action on application for admission of state individual bank, subject to the conditions stated in the in the forth set as application, reports attached to the date. this Auxiliary Minute Book of Approved. Dated, January 18th, Aecommending approval of the application of _Ir. "alter as /ice Heymann for permission to serve at the same time and President of the first National Bank, Chicago, Ills, Chicago, Jank, as director of the Liberty I2rust and Savings Ills. Approved. the application of M. Whitfield Dated, January 22nd, Aecommending approval of director Smith for permission to serve at the same time as Eastside the of the First National Bank and director of National Bank, both of Paterson, N. J. Approved. Datea, January 22nd, Aecommending approval of the application of Mr. Henry A. time as Williams for p3rmission to serve at the same of the director as and director of the First National 3ank J. N. Paterson, Eastside National Bank, both of Approved. Dated. January 22nd, Aecommending approval of the application of Mr. Frederick same time as D. Bogert for permission to serve at the director of the as and Bank officer of the First National N. J. Paterson of Eastside National Bank, both Approved. The meeting adjourned at 12:40 p Secre ary. 44r°yea: Vice-Governor.
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