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Minutes for To: Members of the Board From: Office of the Secretary July 11, 1.57 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. A Chm. Martin Gov. Szymczak Gov. Vardaman Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson X Minutes of actions taken by the Board of Governors of the Federal Reserve System on Thursday, July 11, in 1957. The Board met the Board Room at 10:00 a.m. PRESENT: Mr. Martin, Chairman Mr. Balderston, Vice Chairman Mr. Szymczak Mr. Vardaman Mr. Mills Mr. Robertson Mr. Shepardson Carpenter, Secretary Kenyon, Assistant Secretary Hackley, General Counsel Masters, Director, Division of Examinations Mr. Solomon, Assistant General Counsel Mr. Hostrup, Assistant Director, Division of Examinations Mr. Mr. Mr. Mr. Items ciraulated to the Board. The following items, which had been circulated to the members of the Board and copies of which are attached to these minutes under the respective item numbers indicated!, were approved unanimously: Item No. Letter to the Federal Reserve Bank of Atlanta ap13Ar"ing the payment of salary to Theodore Walter as stant Cashier at the rate fixed by the Board of ectors. 1 Ilietter to Liberty Bank of Buffalo, Buffalo, New rk, approving the establishment of a branch in e Central Park Shopping Center to replace the asent Fillmore-Leroy branch. (For transmittal rough the Federal Reserve Bank of New York) 2 ar!ter to the Federal Reserve Bank of Philadelphia Gi""ending the time within which Peoples Bank of ! II Rock, Glen Rock, Pennsylvania, may establish 4 uranch in the Borough of Jacobus. 3 4 Z 1924 7/11/57 -2Item No. Letter to The Newark Trust Company, Newark, Ohio, aPproving the establishment of a branch at the r?ar of 17-19 North Third Street. (For transmittal through the Federal Reserve Bank of C leveland) 4 Letter to the Federal Reserve Bank of Atlanta regarding a request for a final tax certification with respect to Hillsboro Enterprises, Inc., Nashville, Tennessee. 5 In connection with the preceding item (No. 5), Governor Balderston observed that although the Board's Regulation Y, Bank Holding Companies, became effective September 1, 1956, procedures had not Yet been established which would enable the Board to act on certain matters arising under the Act such as the request of Hillsboro EnterPrises, Inc., for a final tax certification. Mr. Hackley responded that the granting of a final tax certification involved a number of complex questions which must be worked cAlt in consultation with the Internal Revenue Service. After mention- ing that the Board's staff had instituted discussions with Internal Revenue representatives, he went on to point out that where a pre„nary tax certification has been granted, as in this case, a delay in granting the final certification would not appear to result in injury Or damage to the rights of affected parties. Governor Robertson added to Mr. Hackley's remarks by stressing the necessity for reaching full agreement with the Internal Revenue S v.Lce concerning the problems involved in making final tax 192 7/11/57 .3... certifications under the Bank Holding Company Act. In commenting to this effect, he was not defending undue delay, and he felt that the point raised by Governor Balderston should be borne in mind. Nevertheless, in the present circumstances it appeared to him that the proposed reply was the only one that could be made. Item No. l atter to Wm. T. Burton Industries, Inc., Sulphur, sians, responding favorably to its request for section 301 determination. (For transmittal hrough the Federal Reserve Bank of Atlanta) 6 Letter to First State Bank of Corpus Christi, CorPus Christi, Texas, approving its request for perTission to exercise limited fiduciary powers. (For smittal through the Federal Reserve Bank of v',1'4Inallas) 113,eatter to the Presidents of all Federal Reserve nks requesting reports of credit extended by memrr banks to real estate mortgage lenders as of 4liguat )4, 1957. 8 Letter to the Senate Antitrust and Monopoly Subcommittee commenting on S. 2220, a bill to amend the PI,ente,,rman Act to declare the primacy of free abudget)rPrise. (With a copy to the Bureau of the 9 -11:22112g:t for determination under Bank Holding Company Act. On teosmber 26, 1956, Transamerica Corporation, San Francisco, California, liled with the Board a request for a determination under section 4(c)(6) °I' the Bank Holding Company Act which would provide that shares held by 144nsamerica in its wholly-owned subsidiary, Occidental Life Insurance C°r4PanY, were exempt from the provisions of the Act prohibiting, with Certain exceptions, the retention by a bank holding company of any 7/11/57 -4- voting shares of a nonbanking company. Pursuant to this request, a hearing design was ordered by the Board and was conducted before a duly Hearing Examiner, Mr. Arthur Leff. The Hearing Examiner's Report and Recommended Decision was filed under date of May 21, 1957, following which counsel for Transamerica filed exceptions to the Hearing Examiner's recommended decision that the request for exemption be denied and requested oral argument before the Board. The oral argument took place on July 9, 1957, and a stenographic transcript thereof is being made a part of the record of the proceeding. In reviewing certain matters of procedure, Mr. Hackley brought °Ilt that the Board must make its determination on the basis of the entire record of the case, including the record made at the hearing, the brief filed by Transamerica, the Hearing Examiner's recommendation, the findings of fact, and the oral argument. If the Board should reach 4 decision today, he assumed that the decision would not be announced until a carefully prepared opinion had been drafted by the legal staff for the Board's consideration. In response to a question by Governor Vardaman, Mr. Hackley verified that the Board might refer the matter back to the Hearing Examiner for further testimony if it did not believe that the record brought out all of the facts pertinent to the case. Rollever, in this instance he felt that the record was clearly adequate 43 to findings of fact. On the other hand, he pointed out, the Board e°11141 not make its decision on the basis of any data other than that aPPearing in the record. 7/11/57 -5- Mr. Hackley then referred to a memorandum that he had prePared under date of July 11, 1957, expressing, for reasons stated therein, the opinion that (1) the general similarity of the business °f Occidental Life Insurance Company to the business of banking was n°t alone sufficient to justify a favorable determination by the Board; (2) the activities of Occidental were not "so closely" related either to the business of managing or controlling banks as conducted by Transamerica Corporation or to the banking business as conducted by Transamerica's subsidiary banks as to be a "proper incident" to such business; (3) the relationship of Occidental to Transamerica and its subsidiary banks was not so close as to make it unnecessary for the divestment Provisions of the Act to apply in order to carry out the purposes of the m. ank Holding Company Act; and (4) that, without necessarily adoptall of the Hearing Examiner's reasoning, the Board would be justified under the law in confirming the &caminer's recommendation that the redetermination be denied. It was therefore the recommendation of the Legal Division (1) that the Board issue an order declining to make the __ es re4u ted determination; and (2) that such an order be accompanied an ()Pinion of the Board setting forth the essential and relevant raeta of the case and the reasons for the Board's decision. During a discussion which followed a reading of Mr. Hackley's Mem orandum, Governor Vardaman called attention to the provisions of SectiOn 4(c)(4) of the Bank Holding Company Act which in effect permit 1928 7/11/57 -6- the retention of shares of a nonbanking subsidiary that were lawf414 acquired and owned prior to the date of enactment of the Act by a bank which is a bank holding company or by any of its whollyowned subsidiaries. He inquired whether it would be desirable to develoP this fact in the Board's opinion and indicated that he considered the statute unsound in according this privilege to holding comPanies which are banks as opposed to holding companies which are not banks. Mr. Hackley expressed agreement with Governor Vardaman's view regarding the inconsistency of the provisions of the Act, but said it aPPeared to him that this went to the propriety of the law itself and n°t to the Board's administration of the law. Therefore, he felt that the p 4_ 1 °lap might more properly be raised in the report required to be Made by the Board to the Congress within two years after the date of ellactment of the Bank Holding Company Act. Discussion then turned to the opinion to be written by the Le gal Division and Mr. Hackley expressed the view that it would be unfortunate for the Board to announce its decision in this case without 1\111 d eliberation since the case was the first of its kind under the Benk Holding Company Act and involved difficult questions relating to interPretation of the statute. By this he did not mean that the drafting of the opinion and announcement of the Board's decision should be dela Yed unduly, but that the opinion should be drafted and considered 7/11/57 -7- by the Board in a very careful manner. Bearing in mind these consid erations, he said that the Legal Division would proceed with the Preparation of the opinion as expeditiously as possible. Governor Mills inquired concerning the use of the word "°Pinion" to describe the document which would accompany the Board's Order, d saying that the document would appear to be more properly escribed as a statement of facts and reasons for the Board's decision. Mr. Hackley responded that Governor Mills had correctly de- scribed the content of the document and that use of the word "opinion?! reflected the practice of other Government organizations having resPonsibilities under various statutes of somewhat the same characteristics as those of the Board under the Bank Holding Company Act. In this connection, he pointed out that the Administrative Procedure Act requires a statement of reasons when an agency turns down an application. Mr. Hackley then stated that he assumed the Board's order would be Published in the Federal Register, but that the question whether the statement of reasons for the order should likewise be made public was 0ne on which the Legal Division was not yet quite ready to make a rec°mmendation to the Board. At the moment he saw no strong objection , to rnal„ '‘Ing the statement public, particularly since the case would tend to -s tablish a precedent, and to the extent that the Board's decision was based on reasons involving interpretation of the statute it would 1930 7/11/57 -8- Seem desirable that the reasons be made public. In reply to a questio by n Governor Vardaman, he said that he knew of no reason why the vote of the Board could not also be made public if the Board considered it desirable to do so. Governor Robertson commented that he felt the Board ought to f°110w closely the procedures established over a period of years by Government agencies having similar functions. If it was the custom of alleh agencies to publish in the Federal Register their opinions, or statements of reasons, he felt that the Board should follow the same course. If, on the other hand, it was the practice to publish only an bbrevisted at statement, he would have no objection as long as the parties interest were fully advised. Mr. Hackley noted that the Administrative Procedure Act also "ntains a requirement that the final order of any agency which might be used as a precedent shall be published in the Federal Register or made available for public review. While in previous cases under the 8ankIioldi"g Company Act the Board had published only its order in the Federal Register, each of those applications had been approved and there was no need to support the order with opinions or reasons. Governor Vardaman then stated that he would like to have an "Planation of his vote, which would be to deny the request of Transazierica, placed in the record. After reading a draft of such an exPlanat°rY note, he said that he would edit the note in consultation ilith the Legal Division because he did not want the explanation to be itic°nsistent in any way with the Board's decision or opinion. _9_ 7/11/57 It was suggested that other members of the Board might also like to accompany their vote with an explanation after the order and Statement of reasons were available for consideration. There ensued, for the guidance of the Legal Division in preParing the opinion to support the Board's order, a discussion of the general outline of the material that might be covered in development Of the Board's reasoning. During this discussion Governor Robertson made clear his view, since he might not be present when the opinion came before the Board for consideration, that he deemed it unnecessary and irrelevant to the determination in this ease to speculate coneerrling the possible consequences of a continued holding companyaubsidiarY relationship between Transamerica and Occidental. He felt that the opinion should explore the purposes of the divestment proof the Bank Holding Company Act and then, on the basis of the ' l ildinge of fact, should indicate whether it appeared that the activities of Occidental were sufficiently closely related to the business c't banking or of managing or controlling banks as to be a proper incident thereto. If not, exemption from the divestment provisions of the Act would not be permissible. It was then voted unanimously that the Legal Division should "are for the Board's consideration an order declining to make the dete rmination requested by Transamerica Corporation and an accompan °Pinion in support of such an order. yitg 1932 Via/57 -10from Congressman Patman. Chairman Martin read a letter that he had received under date of July 10, 1957, from Congressman Patman requesting certain statistical information relating to the is suance and redemption of Federal Reserve notes and stated that the taff was compiling data responsive to Mr. Patmants request. The meeting then adjourned. Secretary's Notes: Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson approved on behalf of the Board on July 10, 1957, the following items affecting the Board's staff: Tra ---nggr Clerk-Stenographer in the Joyce L. Stickley, from the position of the position of to sion of Personnel Administration Stenographer in the Division of Examinations, without change in her basic salary at the rate of $3,415 per annum, effective July 14, 1957. sta , Gloria J. Hue,Economist in the Division of Research and -LI-sties/ effective July 16, 1957. and ,, KaY E. Jones, Clerk-Stenographer in the Division of Research otdatistics, effective July 26, 1957. Governor Shepardson today approved on behalf of the Board the following letters, copies of which are attached to these minutes under the respective item numbers indicated: Item No L ette r to the Federal Reserve Bank of Cleveland 10 1933 7/1157 Item No. aPproving the appointment of assistant examiner. es C. Mitchell as Letter to the Federal Reserve Bank of St. Louis 8PPr"ing the appointment of Rolla Thomas Reed as assistant examiner. 11 I BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 1 7/11/57 WASHINGTON 25. D. C. ADDRESS OFFICiAL CORRESPONDENCE * TO THE BOARD July 11, 1957 CONFIDENTIAL (FR) Mr. Walter M. Mitchell, Chairman, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. Dear Mr. Mitchell: The Board of Governors approves the payment of salary to Mr. Theodore Walter as Assistant Cashier Of the Federal Reserve Bank of Atlanta for the period 1111,Y 1, 1957 through December 31, 1957, at the rate of $8,900 per annum which is the rate fixed by tho Board Of Directors as reported in Mr. Bryan's letter of June 24, 1957. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. , BOARD OF GOVERNORS OF THE Item No. 2 FEDERAL RESERVE SYSTEM 7/11/57 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 11, 1957 Board of Directors, Liberty Bank of Buffalo, Buffalo, New York. Gentlemen: Pursuant to your request submitted through the Federal Reserve Bank of New York, the Board of Governors of the Federal Reserve System approves the establishment ?f a branch by Liberty Bank of Buffalo, Buffalo, New York, in the Central Park Shopping Center, which is under conruction in the vicinity of the intersection of Main .re rillmet and Fillmore Avenue in Buffalo, to replace the ore-Leroy branch presently operated at the northeast ?orner of the intersection of Fillmore and Leroy Avenues Buffalo, provided the branch is established in the new location vithin six months from the date of this letter. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. 1936 BOARD OF GOVERNORS 4ott*A*4.* ile*P W 4444,40 * •••• ti%* I 0 * OF THE FEDERAL RESERVE SYSTEM 4* Item No. 3 7/11/57 WASHINGTON 25, D. C. ADDRESS ** 4444v, orrictAL coRnesPaNDENcic TO THE BOARD July 11, 1957 Mr, E. C. Hill, Vice President, . Federal Reserve Bank of Philadelphia, Philadelphia 1, Pennsylvania. Dear Mr. Hill: of1.r1 view of the circumstances outlined in your letter June 27, 1957, the Board of Governors further Iextends until October 1, 1957, the time within which Peoples of Glen Rock, Glen Rock, Pennsylvania, may establish a branchn at the corner of Maine and Church Streets, Borough Of Jacobus, York County, Pennsylvania, under the authorization c ontained in its letter of July 11, 1956. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. BOARD OF GOVERNORS ott.7 , Aq, OF THE FEDERAL RESERVE SYSTEM Item No. 4 7/11/57 WASHINGTON 25. D. C. - ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 11, 1957 Board of Directors, The Newark Trust Company) Newark, Ohio, G entlemen: Pursuant to your request submitted through the Feder deral Reserve Bank of Cleveland, the Board of Governors Of the Federal Reserve System approves the establishment a branch at the rear of 17 - 19 North Third Street, wark, Ohio, by The Newark Trust Company, Newark, Ohio, Povided the branch is established within one year from the date of this letter, and the approval of the State a uthorities is in effect as of the date of the establish0.1 the branch. r It is understood that the bank's common capital will be increased in the amount of at least $100,000 to meet statutory requirements. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. , 1 938 BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 5 7/11/57 WASHINGTON 25. D. C. AooREss OFFICIAL CORRESPONOENCE TO THE BOARO July 11„ 1957 FederJ. E.Denmark, Vice President, al Reserve Bank of Atlanta, Atlanta .3 Georgia. Dear. Mr. Denmark: Enclosed is a copy of a letter dated June 28, 1957, from tr,, and Talbot, Nashville, Tennessee, requesting the Board of laznors to issue a final tax certification, pursuant to section 8:f the Internal Revenue Code, with respect to Hillsboro Ente4g2s! Inc., Nashville, Tennessee. The procedure to be followed in connection with the of final certifications is receiving consideration, and of the problems involved in this matter may take some &es " However, it is the Board's understanding that delay in the , it?" of a final certification does not adversely affect in any wa aIllsborols freedom of action or the rights of the corporation -4 ' of its stockholders. isauan solutice 1 will be appreciated if you will apprise Ewing and Talbot the i8-7' of the for However, it should be pointed out that not Of th°ard i8 empowered to make authoritative interpretations s nece: Revenue Code, and if an official rulirg is deemed sion .arY, a request therefor should be addressed to the Commisatte-1% of Internal Revenue, Washington 25, D. C., marked for the ntion of the Tax Rulings Division. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. Enclosure i i BOARD OF GOVERNORS OF THE Item No. 6 FEDERAL RESERVE SYSTEM 7/11,67 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE Llgt' 4,4.0 TO THE BOARD July 11, 1557 Mr. Wm. T. Burton, President, 14111. T. Burton Industries, Inc., SulPhur, Louisiana. i)ear Mr. Burton: This refers to your request submitted through the Federal Reserv of th e Bank of Atlanta for a determination by the Board of Governors e Federal Reserve System as to the status of Wm. T. Burton "Lluz3tr' les, Inc., Sulphur, Louisiana, as a holding company affiliate. From the information submitted, the Board understands that T. Burton for Industries, Inc., is primarily engaged in exploration and Production of oil and, through its subsidiaries, is also InIalT in various activities unrelated to banking; that Wm. T. Burton st04'ries, Inc., owns 15,302.5 of the 25,000 outstanding shares of char1 of The Calcasieu-Marine National Bank of Lake Charles, Lake nati es, Louisiana, and minor investments in stock of two other banks also located in Lake Charles; and that Wm. T. Burton arly s ' --ir es, Inc., does not, directly or indirectly, own or control above °c ok °f any banking institutions other than those mentioned The 4, r manage or control any banking institution other than ' casieu-Marine National Bank of Lake Charles. Wm, T. B In view of these facts the Board has determined that as , urton Industries, Inc., is not engaged, directly or indirectly, barii'tspusiness in holding the stock of, or managing or controlling, the ' m banking associations, savings banks, or trust companies within and, eaning of section 2(c) of the Banking Act of 1933, as amended; a holo r°rdingly, Wm. T. Burton Industries, Inc., is not deemed to be ;",comPany affiliate except for the purposes of section 23A (If th( the 13- Federal Reserve Act, and does not need a voting permit from Oalrld of Governors in order to vote the bank stock which it owns. '31-=t out If, however, the facts should at any time differ from those aboveto an extent which would indicate that Wm. T. Burton might be deemed to be so engaged, this matter should 19IO BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM X. Wm. T. Burton _2- again be submitted to the Board. The Board reserves the right to 2eind this determination and make a further determination of this matter any time on the basis of the then existing facts. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. 1941 BOARD OF GOVERNORS OF THE Item No. 7 FEDERAL RESERVE SYSTEM 7/11/57 WASHINGTON 25, O. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD **7 4L tit July 11, 1957 Board of Directors, First State Bank of Corpus Christi, Corpus Christi, Texas. Gentlemen: This refers to your request for permission, ! Ind" applicable provisions of your condition of mem?ership numbered 1, to exercise fiduciary powers, l ted, however, to a specific appointment. Following consideration of the information Submitted, the Board of Governors of the Federal Reserve ...Ystem grants permission to the First State Bank of Corpus ehristi, Corpus Christi, Texas, to act as trustee under a collateral trust indenture securing collateral trust notes 2f Southern Bankers Investment Company,. Corpus Christi, Texas, with the understanding that it will not accept 4Y other fiduciary appointments without first obtain-. .t the permission of the Board. 1 Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. 1942 BOARD OF GOVERNORS OF THE Item No. FEDERAL RESERVE SYSTEM 8 7/11/57 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD *4'10o,4.0* July 11, 1957 Dear Sir: It will be appreciated if your Bank will obtain rePorts of credit extended to real estate mortgage lenders as Of August 14, 1957, from weekly reporting member banks in your District in accordance with the attached form. The coverage _nd content will be the same as in the August 1955 and 1956 !urveys; other surveys have omitted the banks that reported teas than $1 million in loans and commitments at the preceding august surveys and the memorandum items on FHA and VA loans. Please mail or telegraph the District survey figures for all items and sub-items in the report, 1.a through 4.e, in!lusive, to reach the Board's offices by Monday, August 26; the reports of the individual banks need not be forwarded. Very truly yours, (Signed) S. R. Carpenter S. R. Carpenter, Secretary. EnclosUre TO (mit, -,LE, PRESIDENTS OF ALL FEDERAL RESERVE BANKS 194, BOARD OF GOVERNORS Vsr OF THE FEDERAL RESERVE SYSTEM Item No. 9 7/1l/'7 WASHINGTON OFFICE OF THE CHAIRMAN July 11, 1957 The Honorable Estes Kefauver, Chairman, Antitrust and Monopoly Subcommittee, Committee on the Judiciary, United States Washing ton 25,Senate, D. C. Dear Senator Kefauver: Receipt is acknowledged of your letter of June 24, 1957, 8 (17ta '()/, the views of the Board of Governors regarding S. 2220 is identical with H.R. 2142), a bill to amend the Sherman Act to dee_ iare the primacy of free enterprise. t:: bill would declare that it is the policy of the s ali United t that to the maximum extent practicable the principles Of ma4.ires Private enterprise embodied in the antitrust laws shall be to tained; that no officer, agency, board or commission authorized elj.Ipprove arrangements involving exemption from the antitrust laws sZ-1;1. grant approval of such exemption unless other statutory responof, 4 41-ties require it; that where Congress has authorized any 3 agency, board or commission to restrict entry into an the"urY, such authority shall be exercised in a manner to give law maximum effect practicable to the objectives of the antitrust 4 .4, and that no proceeding instituted by the United States charging rea °Iation of the antitrust laws shall be barred or stayed for the ax.rn that any official, agency, board or commission has or is vi!ing 4:1jurisdiction over the activities included in the alleged 1.1on. The Board is entirely in sympathy with the objectives of .Z..arltitrust laws. The Board is not authorized to grant exemption pe,:.the antitrust laws. However, in passing on applications for lesion to establish branches by banks, on applications for voting ' 1944 Senator Kefauver. .2. P rmits for bank holding companies, and upon mergers and consolidaj lons of banks where its approval is required, the Board considers the Possible existence nc of any undue lessening of competition among banks The Board is authorized to "restrict entry into an industrvil '7 in connection with authorizing the formation under enction 25(a) of the Federal Reserve Act of corporations to engage f°reign banking, and the formation of a new bank holding company , 7er section 3(a) of the Bank Holding Company Act of 1956. The would not affect the objectives of the antitrust laws. The larT?r t or 'er Act provides, in section 3(c)(5), that in determining whether uherrt to approve any such transaction, the Board shall consider r or not the effect of the transaction would be inconsistent 741:184 adequate and sound banking, the public interest, and the Pee servation of competition in the field of banking. In addition, beTon 11 of the Act provides that nothing therein contained shall 0,,.. interpreted or construed as approving any act which is a violation oji .e.. isting law, nor be a defense to any suit instituted on account ''fly Prohibited antitrust or monopolistic conduct. l Sincerely, (Signed) Wm. McC. Martin, Jr. McC. Martin, Jr. 1945 BOARD OF GOVERNORS %Ottitol,..!•4 OF THE FEDERAL RESERVE SYSTEM * Item No. 10 7/11/57 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD July 11, 1957 11r, Paul C. Fitetzelberger, Vice President, Federal Reserve Bank of Cleveland, Cleveland 1 Ohio. Dear 4.. Stetzelberger: In accordance with the request contained in your letter of July 5, 1957, the Board approves the appointment of Jl .mes C. hitchell as an assistant examiner for the Federal iteserve Bank of Cleveland. Please advise as to the date on which the appointment is made effective. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary. (At BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 11 7/W57 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE soARo July 11, 1957 Mr. Geo. E. Kroner, Vice President, Federal Reserve Bank of St. Louis, St. Louis 2, Missouri. Dear Mr. Kroner: In accordance with the request contained in your letter of July 3, 1957, the Board approves the appointment of Mr. Rolla Thomas Reed as an assistant examiner for the Federal Reserve Bank of St. Louis. If the appointment is not made effective July 22, as planned, please advise the Board. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Assistant Secretary.
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