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Minutes for
To:
January 31, 1961
Members of the Board
From: Office of the Secretary
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, please initial below.
If you were present at the meeting, your initials will
Indicate approval of the minutes. If you were not present,
your initials will indicate only that you have seen the
minutes.
Chm. Martin
Gov. Szymczak
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Minutes of the Board of Governors of the Federal Reserve System on
Tuesday, January 31, 1961.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in the Board Room at 10:00 a.m.
Martin, Chairman
Balderston, Vice Chairman
Mills
Robertson
King
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Miss Carmichael, Assistant Secretary
Mr. Hackley, General Counsel
Mr. Noyes, Director, Division of Research
and Statistics
Mr. Farrell, Director, Division of Bank
Operations
Mr. Solomon, Director, Division of
Examinations
Mr. Johnson, Director, Division of
Personnel Administration
Mr. Hexter, Assistant General Counsel
Mr. O'Connell, Assistant General Counsel
Mr. Hooff, Assistant General Counsel
Mr. Goodman, Assistant Director, Division
of Examinations
Mr. Potter, Legal Assistant
Item circulated to the Board.
The following item, which had been
circulated to the Board and a copy of which is attached to these minutes
as Item No. 1, was approved unanimously:
Item No.
Letter to NABAC, The Association for Bank Audit,
Control, and Operation, Chicago, Illinois, regarding a savings deposit not evidenced by a pass book.
1
Mr. Hooff then withdrew from the meeting.
Illinois Shares Corporation
(Item No. 2).
There had been
distributed to the Board a memorandum from the Legal Division dated
0
1/31/61
January 27, 1961, regarding apparent violations of section 4(a)(2) of the
Bank Holding Company Act by Illinois Shares Corporation, New York City.
Section 4(a)(2) states in part that, except as otherwise provided in the
Act, no bank holding company shall after two years from the date of enactment of the Act or from the date as of which it becomes a bank holding
company, whichever is later, retain direct or indirect ownership or
control of any voting shares of any company which is not a bank or a
bank holding company.
According to the memorandum, the holding company appeared to have
retained "direct or indirect ownership or control of...voting shares" of
the following companies, which were neither banks nor bank holding
companies:
Pullman Agency Corporation, Highland Agency Corporation,
Blue Island Agency Corporation, Southtown Service Bureau, Inc., and
Pullman Safe Deposit Company.
Such retention would be in violation of
section 4(a)(2) of the Bank Holding Company Act unless such shares should
be covered by one of the exemptions of section 4(c).
vhich exempts from the prohibitions of section
4
Section 4(c)(1),
shares owned by a bank
holding company in any company engaged "solely in conducting a safe
deposit business," would seem to apply to the activities of Pullman Safe
posit Company.
Section 4(c)(6) exempts "shares of any company all the
activities of which are of a financial, fiduciary, or insurance nature and
Ithich the Board after due notice and hearing, and on the basis of the
:194
-3-
1/31/61
record made at such hearing, by order has determined to be so closely
related to the business of banking or of managing or controlling banks
as to be a proper incident thereto and as to make it unnecessary for
the prohibitions of this section to apply in order to carry out the
purposes of this Act."
This exemption might be available for the other
four companies, but only if the Board should make a determination and
issue an order "after due notice and hearing," and no request for a
determination had been made by Illinois Shares Corporation.
Under the provisions of section 4(a)(2), nonexempt shares in
which Illinois Shares Corporation had an interest could be retained two
Years after the enactment of the Bank Holding Company Act, and the Board
had authority upon application to grant extensions for one year at a time
111) to a final date of May 9, 1961.
However, since no extensions of time
had been applied for or granted, the holding company's retention of an
Interest in the nonexempt shares appeared to be in violation of the Bank
Holding Company Act.
The memorandum indicated that the courses of action open to the
holding company were: (1) complete disposition of the interests in
question, (2) reduction of those interests to comply with the five per
cent limitations of section 4(c)(5), or (3) prompt application for a
determination by the Board that the shares in question would fall within
the exemption of section
4(c)(6).
395
_1#_
1/31/61
Submitted with the memorandum was a draft of letter to the Federal
requesting that Bank to advise Illinois Shares
Reserve Bank of New
Corporation that: (1) the holding company had, in the opinion of the
Board, retained direct or indirect ownership or control of the voting
shares of the four companies (other than Pullman Safe Deposit Company)
in violation of the provisions of section
4 of the Act; (2) pursuant to
section 4(a) of the Act, the Board had granted the holding company an
extension until May
9, 1961, of the period for retention of its interests
in the four companies, beyond which time the period could not be extended
and any retention of the interests would be in violation of the Act
unless they had been reduced below the limitations of section 4(c)(5) or
unless the shares in question had been determined by the Board, after
notice and hearing, to fall within the terms of section 4(c)(6); and
(3) if the holding company should not divest itself of its interests in
the four companies or reduce those interests below the limitations of
section 4(c)(5) by May
9, 1961, the company must immediately take the
necessary steps to obtain by such date a determination by the Board,
Pursuant to notice and hearing, that the shares in question were exempt
under section 4(c)(6) from the prohibitions of section
4 of the Act.
It was noted in the memorandum that the Legal Division did not
consider it necessary or appropriate to regard the holding companyts
n°11compliance to date as bringing into operation the provisions of
391;
_5_
1/31/61
section 8 of the Bank Holding Company Act with respect to penalty for
violation.
If, however, the holding company should not comply
With the directions of the Board and should fail to give sufficient
reason therefor, application of the provisions of section 8 night then
be considered.
Mr. Potter summarized the facts of the case and the recommendation
Of the Legal Division, following which he stated, in response to a question,
that the apparent violations on the part of Illinois Shares Corporation had
been disclosed in the course of a staff review of nonbanking interests of
bank holding companies.
This review was made in the light of the provision
Of section 4(a)(2) of the Bank Holding Company Act to the effect that the
retention of direct or indirect control of nonexempt interests must be
terminated by May 9, 1961.
Question was raised by Governor King as to Whether it would be
appropriate for the Board to approve an extension of time for the retention
°f a nonbanking interest in the absence of a request from the holding
company concerned, and Mr. Hexter noted in that connection that the
statute specifies that the Board may grant an extension upon application.
If an application for a section 4(c)(6) determination should be made by
Illinois Shares, that company could apply for an extension under section
4(a)(2) at the same time.
If, on the other hand, the company chose to
follow one of the other courses suggested in the proposed letter, no
extension of
time would be required.
39T
1
-6-
1/31/61
Mr. Potter said he had felt that no application for an extension
Of time was necessary in this situation.
filing of the
Some time had elapsed since the
1959 annual report of the holding company which disclosed
control of the shares of the subsidiary companies, and he believed that
it would create a more favorable atmosphere if an extension was granted
without requiring an application.
Further, the extension, if granted,
would he in effect for only the period of time that would be involved
in bringing the matter to a conclusion.
Mr. O'Connell suggested that if a section
4(c)(6) hearing should
be held, the Board might appear in a better light by having granted
an
be taken within the allowable
extension of time, since Board action could
time that had been granted.
Governor Mills expressed the view that in the circumstances the
Board could afford to be reasonably lenient.
As noted, some time had
elapsed since the apparent violations occurred, and there was no definite
indication that the violations had been willful.
Also, the types of
activity in which the nonbanking companies were engaged were similar to
the Board after hearing.
those that in some instances had been approved by
After further discussion, the recommendation in the memorandum
from the Legal Division was accepted, and the proposed letter to the
.
Federal Reserve Bank of New York then was approved unanimously
Of
the letter is attached as Item No. 2.
A copy
-7-
1/31/61
During the foregoing discussion Mr. Fauver, Assistant to the Board,
entered the room, and at its conclusion Mr. O'Connell withdrew.
Philadelphia International Investment Corporation
(Item No. 3).
the Division of
There had been distributed to the Board a memorandum from
relating to a request, pursuant to
Examinations dated January 30, 1961,
the Board consent to the
section 25(a) of the Federal Reserve Act, that
d capital stock ($3.5 million)
remainder ($1.4 million) of the authorize
on, Philadelphia,
of Philadelphia International Investment Corporati
the corporation's directors.
Pennsylvania, being paid in upon call from
on, a wholly-owned
Philadelphia International Investment Corporati
Bank, opened for business on
subsidiary of The Philadelphia National
June 1, 1960.
In a letter dated January 10, 1961, the Edge corporation
l $175,000 was paid by
certified that as of that date an additiona
subscription to $3.5 million of
Philadelphia National Bank against its
capital stock.
As of January 10, the subsidiary had issued 21,000 shares
Of its authorized common stock for $2.1 million, or 60 per cent of its
authorized capital.
It was noted in the memorandum that Philadelphia
and that its paid-in capital
International had done very little business
as $100,000 above the minimum required.
The Board's Division of Exami-
Philadelphia recommended that the
nations and the Federal Reserve Bank of
letter to Philadelphia International
request be granted, and a draft of
the memorandum.
Investment Corporation was submitted with
-8-
1/31/61
After discussion, the letter was approved unanimously.
attached as Item No.
A copy is
3.
the meeting at
Messrs. Hexter, Goodman, and Potter withdrew from
this point.
Exchange of personnel with Federal Reserve Bank of New York.
A
27, 1961, regarding a proposed
memorandum from Mr. Noyes dated January
Reserve Bank of New York had been
exchange of personnel with the Federal
distributed to the Board.
Mr. Noyes had discussed with officers of the
exchanges of personnel between
Reserve Bank the possibility of temporary
the Research and/or Securities Departments of the Bank and the Government
Research and Statistics.
Finance Section of the Board's Division of
Such
of the New York Reserve
an arrangement would familiarize the personnel
Board ta personnel
Bank with the functions performed at the Board, and the
Bank.
'would become familiar with the work at the
The proposed arrangement,
It was noted, would be similar to one involving exchange visits of personnel
Of
and the Board's Division
the New York Reserve Bank's Foreign Department
of International Finance which had operated satisfactorily for a period of
Years.
it was recommended that the Board
As a first step in the program,
Manager of the Securities Department
approve "borrowing" Alan R. Holmes,
of the New York Reserve Bank, to work with the Board's Government Finance
beginning around the first of
Section for a period of about three months,
April 1961.
It was understood that the New York Bank would be agreeable
to whatever financial arrangement the Board might prefer.
4
-9-
1/31/61
Following comments by Mr. Noyes, Governor Robertson inquired about
plans for sending Board personnel to the New York Reserve Bank, and Mr.
Noyes responded to the effect that an exchange of personnel was contemplated.
Present conditions in the Government Finance Section would make it difficult
to spare personnel at this time, but at a later date it was hoped that
members of that Section could spend some time in New York.
Mr. Noyes then referred to the question whether the expenses of
Personnel involved in this program should be reimbursed by the borrowing
sending personnel should pay such
institution or whether the institution
expenses.
In this connection, Governor Mills noted that any arrangement
the exchange of personnel
involving salaries and expenses incident to
would be subject to approval by Governor Shepardson.
The proposal for exchanges of personnel between the New York
y, with the underReserve Bank and the Board was then approved unanimousl
to approval by
standing that financial arrangements would be subject
Governor Shepardson on behalf of the Board.
During the foregoing discussion Mr. Kelleher, Director, Division
Of Administrative Services, joined the meeting.
Inqui
from Senator Clark (Item No.
4 . There had been distributed
to the Board a letter dated January 18, 1961, from Senator Joseph S. Clark
Of Pennsylvania,requesting facts regarding a charge by Slater Food Service
-10-
1/31/61
Management, Philadelphia, Pennsylvania, that the food service facilities
used by the Federal Reserve Banks were highly subsidized.
Also distributed
was a draft of reply to Senator Clark.
In the discussion of the matter, Governor Balderston inquired
Whether the Board's staff had communicated with the Federal Reserve Bank
Of Philadelphia, and Mr. Johnson indicated that this had been done.
between that Bank and
Apparently, he said, there had been no contact
Slater Food Service Management.
The only possible connection seemed to
be that a representative of the Federal Reserve Bank of Cleveland had
into the possibility of that
visited the Slater offices last year to look
at the Cleveland Bank.
company's taking over the food concession
food services at
It was noted that detailed information regarding
1953 in response to inquiries
Federal Reserve Banks had been furnished in
of Florida.
from Congressman Patman of Texas and Congressman Bennett
Mr.
of the 1953 inquiries had been
Johnson indicated that the answers to both
reply to Senator Clark.
taken into consideration in drafting the
which several suggestions
There followed further discussion during
were made regarding points that it might be well to cover in the reply to
Senator Clark.
to the Senator would be revised
It was then agreed that the letter
that it would he sent when in a
along lines suggested at this meeting and
form satisfactory to Chairman Martin.
A copy of the letter sent to Senator
Clark pursuant to this action is attached as Item No. 4.
4
1/31/61
-11The meeting then adjourned.
Secretaryts Note: Acting in the absence of
Governor Shepardson, Governor Robertson today
approved on behalf of the Board the following
items:
York (attached Item No. 5)
Letter to the Federal Reserve Bank of New
t examiner.
assistan
as
Como
approving the appointment of Ronald A.
d
Memoranda from appropriate individuals concerne recommending the
staff:
following actions relating to the Boardts
Salary increase
annum, with a change in
Bessie M. McCrae, from $4,670 to $4,840 per
t in the Division of
Assistan
cal
Statisti
title from Statistical Clerk to
1961.
5,
February
Research and Statistics, effective
Acceptance of resignation
Division of Administrative Services,
Sally J. Hart, Clerk-Stenographer,
17, 1961.
effective at the close of business February
BOARD OF GOVERNORS
40***
,
4 49 GoIrtZo,,
OF THE
FEDERAL RESERVE SYSTEM
;.1
WASHINGTON 25. D. C.
Item No. 1
1/31/61
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
t„
January 31, 1961
Mr. J. N. Raleigh, Director,
Technical Division, NABAC,
Chicago 3, Illinois.
Dear Mr. Raleigh:
This refers to your letter of December 20, 1960, addressed
to Governor Mills, presenting inquiries with respect to a savings
deposit not evidenced by a pass book.
The 1955 amendment to Regulation Q permits savings deposits
of this type provided "withdrawals are permitted only through payment
to the depositor himself but not to any other person whether or not
prohibition is to
acting for the depositor". The purpose of this
it, the reason being
to
refer
you
as
",
privilege
eliminate the "agency
by presenting a
merely
depositor
the
of
that withdrawal by an agent
•
deposited with
amount
specific
a
for
"
"written receipt or agreement
in
effect, as
deposits,
such
of
use
the
the bank could result in
checking accounts,
for his deposit
For example, in lieu of taking one "receipt"
Of, say, $1001 the depositor could request 20 receipts for $5 each,
Then, when he wished to pay a bill, he could hand his creditor sufficient
present them for payment.
receipts and the latter, as his "agent", could
deposit
evidenced by a pass
This procedure is possible with a savings
turning the pass
of
procedure
book, but the cumbersome and dangerous
of such savings
use
the
to
deterrent
book over to a third party is a
one so-called
than
more
not
least
At
accounts for checking purposes.
at
any time, as
account
savings
the
Check could be outstanding against
it over
book
before
turning
pass
the
the depositor would have to regain
to another person for a second withdrawal of funds.
by a pass
With respect to the use of deposits not evidenced
a
or
by
third
bank
person,
the
by
either
book as collateral to a loan
the above quoted provision renders ineffective such use as only the
depositor himself may receive payment. This likewise prevents the use
Of such deposits, in effect, for checking purposes.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
Item No. 2
1/31/61
ADDRESS OFFICIAL
CORRESPONDENCE
TO THE BOARD
tk7 ,4`
*0,
mOtt,0
February 1, 1961
Mr. Howard D. Crosse, Vice President,
Federal Reserve Bank of New York,
New York ).5, New York.
Dear Mr. Crosse:
This is with reference to the question whether Illinois
d
Shares Corporation, New York City, New York, a registere bank
or
indirect
ownership
or
"direct
retained
holding company, has
a
is
not
or
which
bank
company
any
of
shares
control of any voting
of
s
section 4 of
a bank holding company" contrary to the provision
Act").
("the
1956
of
Act
Company
the Bank Holding
its Annual Report to
According to information contained in
31, 1959 ("Annual
December
the Board of Governors for the year ending
Company")
directly
("Holding
Report"), Illinois Shares Corporation
as
banks
follows:
owned at that date voting shares in three
Total Shares
Outstanding
Per Cent Owned
Shares Owned
by Holding Co. by Holding Co.
Pullman Trust &
Savings Bank
57,289
14,328.44
25.01
Standard State Bank
57,289
16,058.85
28.03
State Bank of
Blue Island
22,509
3,196.14
14.20
Report, the above percentages
According to Schedule D of the Annual
four nonbanking comalso represent interests of Holding Company in
panies owned in the following manner:
("Pullman"), "engaged in the
p
allmftn Ageiny_p_.02y•oration
and acting as real estate
business of placing insurance
trustees for the
agent". All voting shares owned by
Trust & Savings
Pullman
benefit of the shareholders of
Bank.
"engaged in the
Highland Agency Cooration ("Highland"),
or
agent". All
broker
business of acting as insurance
of the sharebenefit
the
voting shares owned by trustees for
Bank.
holders of Standard State
,
AL RESERVE SYSTEM
BOARD OF GOVERNORS OF THE FEDER
Mr. Howard D. Crosse
-2-
Blue Island Ageng Corporation ("Blue Island"), "engaged in the
business of acting as insurance broker or agent". All voting
shares owned by trustees for the benefit of the shareholders of
State Bank of Blue Island.
wn"), "engaged in the
Southtown Service Bureau, Inc. ("Southto
on agency". Voting
business of conducting a credit and collecti
shares owned by:
Pullman
Highland
Blue Island
•
67%
rest in Pullman Safe
Holding Company also has an inte
exempt under section
be
to
Deposit Company, whose shares appear
described in the
as
any
comp
Of the Act if the business of such
.
Annual Report is its sole business
of Governors, based on the
It is the opinion of the Board
it represents the
that
on
above information and on the assumpti
Present situation:
within the meaning of
(1) that Holding Company owns,
man, Highland, and
the Act, voting shares of Pull
ges as it owns
Blue Island in the same percenta
ve banks;
voting shares of the respecti
rship of more than
(2) that Holding Company's owne
shares of Pullman and
25 per cent of the voting
" of those corporations
Highland constitutes "control
d by those corporations,
owne
and, therefore, of stock
Act;
within the meaning of the
therefore controls 67 per cent
(3) that Holding Company
through Pullman, and
of the stock of Southtown
of Southtown through
k
16.5 per cent of the stoc
Highland;
indirectly owns an additional
(4) that Holding Company
htown through Blue Island,
Sout
2.34 per cent of
has a 14.2 per cent
because Holding Company
cent interest which
per
16.5
interest in the
Southtown;
• Blue Island has in
BOARD
OF GOVERNORS
Air. Howard D. Crosse
OF THE FEDERAL RESERVE SYSTEM
-3-
(5) that
Holding Company accordingly retains "direct or
indirect ownership or control" of voting shares in
the above nonbanking companies in the following
percentages:
Pullman
Highland
Blue Island
Southtown
25.01;g
28.03%
14.20%
85.84%
(6) that such retention is in violation of the Act
because no extension of time has been applied
for or granted under the provisions of section 4(a)
of the Act; and because the activities of such
nonbanking companies do not appear to fall within
any of the "automatic" exemption provisions of
section 4(0; and because no determination has been
made by the Board that such activities fall within
the terms of section 4(c)(6) and no request for such
determination has been made.
For your information there are enclosed copies of a
memorandum in which the relevant facts and reasoning are presented
in more detail.
You are requested to advise Holding Company of the above
conclusions of the Board, and, in accordance therewith:
(1) that pursuant to section 4(a) of the Act, the Board
has granted Holding Company an extension until May 9, 1961, of the
Period for retention of the interests in question;
(2) that since such period cannot under the Act be extended
beyond May 9, 1961, Holding Company must by that date either divest
itself of such interests or reduce them below the percentage limitahas been requested
tions of section h(c)(5) unless a determination
fall
s
within the
interest
such
that
Board
4nd obtained from the
section
4(0(6)3
exemption provisions of
ation under
(3) that in order to obtain a determin
8ecti0n 4(c)(6) prior to May 9, 1961, any request therefor should be
ds immediately in view of the statutory requirement of a hearing
.nereon, and in view of the provisions of Appendix A to the Boardts
xtIlles of Procedure, a copy of which is enclosed, prescribing the time
Periods which must elapse in connection with such a hearing before
a determination can be ordered.
BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Mr. Howard D. Crosse
If the Board's conclusions as herein stated appear
subject to modification by a change in the circumstances existing
at December 31, 1959, this should be brought promptly to the Board's
attention.
You are also requested to advise Holding Company that the
Board considers the Holding Company's interest in Pullman Safe
Deposit Company to fall within the exemption of section 4(o)(1) of
the Act, on the assumption that the business of "renting, maintaining
and servicing safety deposit boxes and vaults", as described in the
sole busiAnnual Report to the Board of Governors for 1959, is the
is
or
should
n
become
assumptio
such
if
that
ness of the company, and
of
fully
the
and
promptly
advised
be
should
incorrect, the Board
facts as they actually exist..
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Enclosures
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 3
1/31/61
WASHINGTON 25, O. C.
ADDRESS OFFICIAL
CORRESPONDENCE
TO THE BOARD
January 31, 1961
Mr. Frederick C. Rieck, Vice President,
Secretary, and Treasurer,
Philadelphia International Investment
,Corporation,
'
l hiladelphia, Pennsylvania.
Nar Mr, Rieck:
This will acknowledge your letter of January 10, 1961, certifyin accordance with the requirements of Section 3(c) of Regulation K,
as of that date, an additional $175,000 of cash was paid in by the
:
°-Le shareholder of your Corporation, The Philadelphia National Bank,
:'Fainst its subscription to ;',i3,500,000 of capital stock. You state that
e Corporation has issued 21,000 shares of its authorized common stock,
ceiving in payment therefor cash in the amount of $2,100,000.
4.1, 3
g
accordance with your request and pursuant to the provisions
Section 25(a) of the Federal Reserve Act, the Board of Governors conthat the remainder of the capital stock of Philadelphia International
,Tiestment Corporation may be paid in upon call from the Board of Directors
'
at, the
Corporation, provided that the Board of Governors shall have
plx,
j/?1'°ved each such increase in paid-in capital not more than ninety days
.or to the
date on which the increase is paid in.
OfIn
For your information, the proviso in the preceding paragraph
is
,,, Prescribed in order to bring the situation into
conformity with the
e()nd sentence of the twelfth paragraph of Section
25(a) of the Federal
te
:
erve Act, which seems to embody the principle that the appropriateof each increase in paid-in
capital shall be considered by the Board
°
vernors shortly before the increase actually takes place.
4
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 4
1/31/61
FEDERAL RESERVE SYSTEM
WAS
OFFICE OF THE CHAIRMAN
January 31, 1961
The Honorable Joseph S. Clark,
United States Senate,
Washington 25, D. C.
Dear Senator Clark:
This is in reply to your letter of January 18, 1961,
regarding food service facilities at the Federal Reserve Banks.
Beginning in 1926, the Board of Governors authorized the
of operabsorption by the Reserve Banks of a portion of the cost
le
permissib
maximum
the
1946
Since
ating employee cafeterias.
cent.
per
absorption has been 50
At the present time, the twelve Head Office Reserve
Banks and all but one of the twenty-four Branches have cafeterias
where lunches are available to employees at moderate cost. In
1960, the average cafeteria expense absorbed by the Reserve Banks
was 43 per cent; with an annual average cost of $74 per employee
that.is small in comparison to the advantages derived.
This arrangt.mcnt to furnish lunches on the premises to
employees at moderate cost is a significant part of the personnel
Policies of the Federal Reserve Banks, and is generally recognized
as contributing to the increased productivity of the organization.
The Reserve Banks also find that this is an important factor in
competing for employees with banking and business firms that
provide free or heavily subsidized food service. In Philadelphia,
for example, four large banks and three insurance companies provide
free lunches to employees.
Should you desire any further information, it will be
furnished gladly.
With all good wishes.
Sincerely yours,
(Signed) William McC. Martin, Jr.
Wm. McC. Martin, Jr.
410
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 5
1/31/61
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
February 1, 1961
Mr. H. A. Bilby, Vice President,
Federal Reserve Bank of New York,
New York 45, New York.
Dear Mr. BillaY:
In accordance with the request contained in your
letter of January 25, 1961, the Board approves the appointment of Ronald A. Como as an assistant examiner for the
Federal Reserve Bank of New York. Please advise us of the
effective date of the appointment.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
@FedFRASER