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199 A meeting of the Board of Governors of the Federal Reserve Syswas held in Washingto n on Friday, January 29, 1037, at 4:00 p. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Broderick Szymczak Davis Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Considerat ion was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the The minutes of the meeting of the Board of Governors of the Federal p ' eserve System held on January 28, 1937, were approved unanimously. Telegramst o Messrs. Kimball and Clark, Secretaries of the Fedaral Reser "Banks of New York and Atlanta, respectively, stating that the BoarA approves the establishment without change by the New York bank on 411118-17 28, 1937, and by the Atlanta bank today, of the rates of discount Purchase in their existing schedules. Approved unanimously. Tele. to Mr. Curtiss, Federal Reserve Agent at the Federal Re- 111'e Bank of Boston, reading as follows: J. "In accordance with recommendation contained in your d-IllulrY 28 telegram, Board approves extension of appointof Chas. F. Gattemy as Assistant Federal Reserve Agent rederal Reserve Bank of Boston for period February 1 to " 7ch , 1937, and has fixed his salary for that period at rat 'of $3,600 per annum." Approved unanimously. 200 1/29/37 -2Letter to Mr. Walden, First Vice President of the Federal Re- BerVe Bank of Richmond, reading as follows: "In accordance with the request contained in your letter of January 25, 1937, the Board approves the designation (3'S. J. Gay, an employee of the auditing department, as special assistant to examiners in order that he may lend clerical assistance to your regular examiners when needed in exa!lanations of State member banks. It is understood, of course, that Mr. Gay will not be transferred permanently to examining work without the Board's approval." Approved unanimously. Memorandum dated January 23, 1937, from Mr. Smead, Chief of the Division of Bank Operations, submitting letters dated January 5 and 20 *°41 McLarin, Vice President of the Federal Reserve Bank of Atlanta, Which requested approval of changes in the personnel classification plans °f the New Orleans and Birmingham branches to provide for the creation °I the Position of "Chief Clerk" in the Accounting Department at the New Orle aas branch, and for the position of "General Clerk" in the R. F. C. C\Isto dY Department at the Birmingham branch. The memorandum recommended that , 'fl view of the statements contained in Mr. McLarin's letter of j4414/7 20, the proposed changes be approved. Approved unanimously. Letter to Mr. Dillard, Deputy Chairman of the Federal Reserve Bank O st. Louis, reading as follows: "This refers to your letter of January 9, 1937, with rerd to the appointment of Mr. Holmes Sherard as a director of T'he Memphis Branch of the Federal Reserve Bank of St. Louis and ?ubmitting additional information concerning his membership on the Mississippi Levee Board. "As you know, the Federal Reserve Board adopted a resoluti °n in 1915 in which the view was expressed that persons holding 201 1/29/37 "political or public office cannot consistently with the spirit and underlying principles of the Federal Reserve Act serve as directors or officers of the Federal Reserve banks. It appears that, under the laws of the State of Mississippi, the members of the Board of Commissioners of the Mississippi Levee District are elected in the same manner as other county officers in that State and that primary elections to select nominees for such positions are held under the supervision and control of political party committees. In view of these considerations and other facts stated in your letter with reference to this matter, it le the view of the Board of Governors that membership on the Board of Commissioners of the Mississippi Levee District involves the holding of political as well as public office within the meaning of the 1915 resolution above mentioned and would be inconsistent with service as a director of a branch of a Federal Reserve bank. "It will be appreciated if you will convey the views of the Board on this subject to Mr. Sherard and advise the Board as to what action is taken by him with regard to his membership on the Board of Commissioners of the Mississippi Levee District." Approved unanimously. Letter to Mr. Winthrop W. Aldrich, Chairman, The Chase Bank, New 1°1*k, New York, reading as follows: "There is inclosed a copy of the report of examination of the Head Office of The Chase Bank, New York, New York, made as of October 3, 1936, by an examiner for the Board of Governors. The figures pertaining to the foreign branches shown in the consolidated statement of condition were obtained from reports submitted by the branches. "It will be appreciated if you will acknowledge receipt of the report." Approved unanimously. Letter to Mr. Fletcher, Vice President of the Federal Reserve Bank eveland, reading as follows: . "Reference is made to your letter of January 21, 1937, transmitting a request of "The First-Central Trust Company", Akron, Ohio, for authority under the provisions of condition of membersill? numbered 12, to sell to the College of Wooster, Wooster, Ohio, a 25,000 real estate loan now held by the bank. It is understood that the college has examined the property and desires to obtain 1/29/37 A -- "the riortgage thereon held by the bank and that the sale of the mortgage is to be made without recourse or guaranty. "Condition of membership numbered 12 provides that, except with the permission of the Board, The First-Central Trust Company shall not engage in the business of issuing or selling, either directly or indirectly, notes, bonds, mortgages, certificates or other evidences of indebtedness representing real estate loans or participations therein. Occasional sales, without recourse, of mortgage loans at the solicitation of the purchasers do not come within the 'Prohibitions of the condition of membership, and the permission of the Board, therefore, would not be required for the sale of the mortgage described." Approved unanimously. Letter to Mr. McRae, Chief Examiner at the Federal Reserve Bank of lot , -" o on, reading as follows: "Reference is made to your letter of January 12 in which you recommend that the New England Trust Company, Boston, Massachusetts, be not required to publish the rePort as of December 31, 1936 of one of its affiliates, known aS the 55 Hanover Street Trust. "It appears that on October 16, 1936, you raised the question whether reports of the three affiliates of the New England Trust Company were not waived by the general waiver Provisions applicable to affiliations arising out of fiduciary relationships; that the Board's ruling of December 29, 1936 that the reports were not waived by such provisions was not received by the bank until January 2, 1937; that the bank has stated tnat if the Board's ruling had been received prior to December 31, 1936, it would have taken immediate steps to eliminate the affiliate relationship arising out of the idterlocking directorship, thus avoiding the requirement for the submission and publication of a report of the affiliate in question; and that on January 11, 1957 one of the trustees of the 53 Hanover Street Trust, who is a director of the bank, resigned his trusteeship, with the consequence that the majority of the trustees of the 53 Hanover Street Trust are nu loner directors of the trust company. "In view of these circumstances and of the fact that tne existing affiliate relationship is based solely on ownership or control of the affiliate by the member bank in a fiduciary capacity, the Board waives the requirement for 203 1/29/37 _5— "the submission and publication of a report by the 53 Hanover Street Trust as of December 31, 1956." Approved unanimously. Thereupon the meeting adjourned. A/-f) °1)(1-Qg Secretary. Chairman.
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