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ors of the Minutes of actions taken by the Board of Govern Federal Reserve System on Friday, July 10, 1953. PRESENT: Mr. Mr. Mr. Mr. Szymczak, Acting Chairman Vardaman Mills Robertson Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary ors of the Minutes of actions taken by the Board of Govern approved unanimously. Federal Reserve System on July 9, 1953, were , New York, Telegrams to the Federal Reserve Banks of Boston City, Dallas, and Cleveland, Richmond, St. Louis, Minneapolis, Kansas ishment withSan Francisco stating that the Board approves the establ Louis, and out change by the Federal Reserve Banks of Boston, St. of San Francisco Kansas City on July 6, by the Federal Reserve Bank Cleveland, on July 7, and by the Federal Reserve Banks of New York, of the rates of Richmond, Minneapolis, and Dallas on July 9) 1953, discount and purchase in their existing schedules. Approved unanimously. ned recommending Memoranda from appropriate individuals concer personnel actions as follows: Appointments, effective upon the date of assuming duties Name and title Division Type of appointment David L. Grove, Chief, Latin American Section International Finance Temporary indefinite Basic annual salary $10,800 -2- 7/10/53 Name and title Division Type of appointment Nyart S. Sharigan, Bank Clerk-Stenographer Operations Basic annual salary $3,255 Temporary indefinite Change in status of appointment Gladys W. Willard, Clerk, Division of International Finance. From temporary (three months) to temporary indefinite, with no change in basic annual salary at the rate of $2,950, effective July 10, 1953. Salary increases effective Jul Name and title j 1953 19 Division Basic annual salary To From Office of the Secretary Marian B. Treakle, Minutes Clerk Beatrice Hunter, Assistant Chief, Files Section Mildred E. Pilger, Supervisor, Adm., Subject, and FOMC Files M. Elizabeth Jones, Asst, Sup., Adm., Subject, and FOMC Files Cornelia A. Bates, Supervisor, Noncurrent Records and Records Disposal Adaline R. Beeson, Review Classifier Margaret J. Moister, Records Clerk $3,335 $3,415 5,185 5,310 4,745 4,870 4,58o 4,705 4,045 4,17o 3,910 4,035 3,495 3,575 4,330 4,455 3,575 3,655 3,030 3,110 3,255 3,335 Research and Statistics Alfred P. Johnson, Economist Mary F. Miller, Clerk C. Lavon Watson, Clerk Anne D. Dougherty, Clerk 1210 7/10/53 -3- Salary increases, effective July 19, 1953 Division Name and title Basic annual salary To From International Finance J. Herbert Furth, Chief, Western European and British Commonwealth Section Arthur B. Hersey, Chief, Special Studies Section lo,hoo $10,800 10,400 10,800 5,94o 6,10 4,42o 4,580 5,245 5,370 4,330 4,455 3,255 3,335 2,830 2,910 2,552 2,632 3,410 3,535 2,630 2,700 Examinations H. H. Hagler, Federal Reserve Examiner Richard T. Pettijohn, Assistant Federal Reserve Examiner Bank Ooeratina Robert E. Sherfy, Analyst Administrative Sqrvigu Bruce L. Moffett, Offset Press Operator Nancy C. Jacobson, Clerk-Stenographer Mary F. Murphy, Clerk James E. Caldwell, Messenger Anita B. McCalley, Assit Cafeteria Manager Geraldine M. Venable, Cafeteria Helper Approved unanimously. 121. 1 7/10/53 Letter to Mr. Wiltse, Vice President, Federal Reserve Bank of New York, reading as follows: "Reference is made to your letter of June 29, 19531 regarding the proposed merger of The Nassau Union Bank, Glen Cove, New York, into the Glen Cove Trust Company, Glen Cove, New York, both being member banks. "It is understood that the merger is to be effected on an exchange of stock basis and that the capital stock and surplus of the continuing bank will be equal to the aggregate capital stock and the aggregate surplus of both banks prior to the merger. Accordingly, the approval of the Board of Governors is not required under the provisions of Section 18(c) of the Federal Deposit Insurance Act. "It is understood also that the bank premises of the two merging banks are separated only by an eight foot wide driveway used exclusively by the two banks and that the continuing bank expects to use both buildings. Hocever, the public would have access only to the building now occupied by the Glen Cove Trust Company. On the basis of the facts submitted, the Board concurs in your opinion that the use of the adjoining building would not constitute the establishment of a branch, and, therefore, the Board's approval would not be required." Approved unanimously. Letter to the Board of Directors, Security Bank, Lincoln Park, Michigan, reading as follows: "Pursuant to your request submitted through the Federal Reserve Bank of Chicago, the Board of Governors approves the establishment and operation of a branch at the Southwest Corner of Telegraph Road and Kensington Avenue in Taylor Center, Michigan, by the Security Bank provided (a) formal approval is issued by the appropriate State authorities, (b) the branch is established within one year from the date of the Board's letter of approval, and (c) the bank completes the sale of $2001000 par value of additional common stock at a premium of $1001000 as required by the Board of Governors in connection with the approval of another branch." Approved unanimously, for transmittal through the Federal Reserve Bank of Chicago. -5- 7/10/53 in Letter to The First National Bank of Mountain View, Mounta View, California, reading as follows: "This refers to the resolution adopted on February 6, 1953, by the board of directors of your bank, signifyse ing the bank's desire to surrender its right to exerci fiduciary powers heretofore granted to it. "The Board, understanding that your bank has been diswith charged or otherwise properly relieved in accordance a issued has ary, fiduci as duties its the law of all of no is it that ying certif bank your formal certificate to powers ary fiduci the of any se longer authorized to exerci l covered by the provisions of section 11(k) of the Federa hereed enclos is icate certif Reserve Act, as amended. This with. "In this connection, your attention is called to the the fact that, under the provisions of section 11(k) of icate certif a such when d, Federal Reserve Act, as amende l has been issued by the Board of Governors of the Federa no shall (1) bank such bank, Reserve System to a national or longer be subject to the provisions of section 11(k) l Federa the of ors Govern of the regulations of the Board ed entitl be shall (2) o, theret Reserve System made pursuant dehave may it which ties to have returned to it any securi posited with the State authorities for the protection of thereprivate or court trusts, and (3) shall not exercise t withou 11(k) n after any of the powers granted by sectio se exerci to permit first applying for and obtaining a new such powers pursuant to the provisions of section 11(k)." Approved unanimously, for transmittal through the Federal Reserve Bank of San Francisco. of Letter to Mr. Pondrom, Vice President, Federal Reserve Bank Dallas, reading as follows: "This refers to your letter of June 17, 1953, addressed to Mr. Sloan, including a copy of a letter from the Dallas National Bank, Dallas, Texas, raising a question F, concerning the applicability of Section 11(a), Regulation in bank al a nation of stock of shares to the acquisition of its capacity as fiduciary through the exercise of subscription rights. -6- 7/10/53 "The provisions of Section 11, and footnote 12 relating thereto, prohibit the investment of trust funds in stock of a trustee national bank unless such investment is expressly required by the terms of the instrument creating the trust or is specifically authorized by court order. The Board's letter of May 13, 1953 reviewed this situation with particular reference to the acquisition of stock of a national bank through the exercise of subscription rights received in connection with shares of such stock which the bank held as trustee, and it was the view of the Board that present provisions of the regulation were as liberal in this respect as should be permitted. Consequently, unless provisions of a trust inuire the trustee to exercise substrument expressly scription rights to acquire additional shares of stock of the trustee bank, an additional investment in such stock is not permitted under the subject provisions of Regulation F. "The suggested provisions of a will or trust instrument submitted by the member bank which would expressly authorize the making of an investment, notwithstanding restrictions in law or regulation, would not, in the opinion of the Board, meet existing requirements of Regulation F since it leaves discretion with the trustee in connection with transactions prohibited by the Regulation." Approved unanimously. Letter to the Comptroller of the Currency, Treasury Department, Washington, D. C., (Attention: Mr. G. W. Garwood, Deputy Comptroller of the Currency) reading as follows: "Reference is made to your letter of May 12, 1953, enclosing a photostatic copy of an application to organize a national bank at Houston, Texas, under the title of MacGregor Park National Bank of Houston, and requesting a recommendation as to whether or not the application should be approved. "he have received a report of investigation of the application made by an examiner for the Federal Reserve Bank of Dallas setting forth information with respect to the -7- 7/10/53 "factors usually considered in connection with such applications. All factors appear favorable except with respect to the need for the proposed facility at the present time although the Reserve Bank feels that there is no doubt that it would serve the convenience of the community which has evidenced rapid growth and appears certain to develop further. In the circumstances, the Board of Governors recommends approval of the application. "The Board's Division of Examinations will be glad to discuss any aspects of this case with representatives of your office, if you so desire." Approved unanimously. Letter to Mr. Williams, President, Federal Reserve Bank of Philadelphia, reading as follows: "The Board of Governors authorizes the expenditure of approximately $311,0001 including architect's and engineer's fees, for the construction of an additional floor on the rear part of the building, in accordance with the program outlined in your letter of June 251 19532 and approved by the Board of Directors of your Bank." Approved unanimously, Governor Vardaman stating that he approved only because no alternative was offered to the Board, it having been his opinion for some time that the present property should be sold or leased and that the Bank should build an entirely new building on a more appropriate location. Letter to the United States Civil Service Commission, Washington, D. C., reading as follows: "This letter is in reply to your memorandum of May 71 1953, on Security Investigations under Executive Order 10450. The following statements furnish the information requested under paragraph 3 of the memorandum. 7/10/53 -8- "(a) For the present very few, perhaps no more than three, positions in the Board's organization will be initially designated as 'sensitive' as used in Executive Order 10450. All positions on the Board's staff are outside the competitive service. (b) It is estimated that no more than two or three appointments will be made to 'sensitive' positions during the entire fiscal year of 1954. Again, all of these positions will be outside the competitive service. (c) and (d) The Board of Governors of the Federal Reserve System, lacking a nation-wide staff for performing personal investigation of applicants for, or incumbents in, 'sensitive' positions, will not make full field investigations for such positions. It therefore is desired that the Commission make such full field investigations for the Board when necessary, on a reimbursable basis. (e) The Board designated its Division of Personnel Administration as its investigative agency for purposes of written inquiries and national agency checks under Executive Order 9835. It is the Board's desire that this arrangement continue in processing persons entering non-sensitive positions, as provided in Section 3(a) of Executive Order 10450. (0 In the past, by agreement, the Commission has checked all forms 79 (Notice of Personnel Investigation) submitted by this Board against the Commission's investigative files as well as the Master Index. This arrangement has proved satisfactory and the Board would like to continue the same procedure. The Board also desires that any adverse information contained in the Commission's files regarding applicants be reported directly to the Board before further investigation is conducted by the Commission." Approved unanimously.
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