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216
A meeting of the Executive Committee of the Federal Reserve Board
Was held in Washington on Friday, July 20, 1934, at 11:30 a. in.
PRESENT:
la*. Thomas, Chairman, Executive Committee
Yr. Tames
LT. Szymczak
Er. Morrill, Secretary
Mr. Bethea, Assistant Secretary.
Mr. Martin, Assistant to the Governor
The Committee considered and acted upon the following matters:
Letter dated Tilly 12, 1934 (apparently intended to be dated
1134'19)
'fr°mMr. Tiebout, Acting Assistant Secretary of the Federal
11111"To Bank of
New York, and telegram dated July 19, 1934, from
14e(nAlrel Chai
of the Federal Reserve Bank of Kansas City, both ad-
that, at meetings of the boards of directors yesterday, no changes
43.e in
1171 ""
the banks' existing schedules of rates of discount and purchase.
Without objection, noted with approval.
Letter dated July 19, 1934, approved by four members of the
130ard
to Mr. O'Connor, Comptroller of the Currency, reading as follows:
slum "This refers to the application of the Citizens State Bank of
bur„?Ir an, Wisconsin for permission to operate receiving and diswhC.Lae stations at Cedar arove and 'Dheboygan Falls, Asconsin,
toteh was approved by you on February 13, 1934, on condition that,
than thirty days from date of approval of the operation
uostne
the
stations, the bank should charge off or otherwise eliminate all
theaas in loans and depreciation in securities other than those in
oc,fcAlr higher grades, as shown in the report of examination as of
or.cc)ber 3n,
4
V
1933, made by the examiner for the Federal Reserve Bank
atai... cago. Subsequent to your approval of the establishment of the
a C°11a, the Federal Reserve Agent's Office at Chicago advised that
otraf2 Proportion of the estimated losses in loans had been charged
sec --(iu a reserve of y50,000 established against depreciation in
off rities, and requested that the time in which the proposed chargepe, °1-11d be completed be extended far ninety days, within which
"L' -a current report or examination would become available.
l
2217
7/20/34
0
•••
"Accordingly, on
Larch 16, 1934, Acting Comptroller Await approved
a ninety-day
extension of time from Larch 1, 1934, in which to camPlete the proposed charge-offs or other elimination of losses and
depreciation in
lower grade securities shown by the next report of
°lamination to be made during that period of time.
"A report of examination of the Citizens State Bank of Aieboygan,
Wisconsin, made as of Lay 7, 1934, by an examiner for the Federal Reserve Bank of
Chicago, showed estimsted losses of 168,970.74, including depreciation in securities other than those in the four higher
(grades. In a subsequent conference with the Federal Reserve Agent's
if ioe, assets amounting to ,10,000 were removed from the loss classand the Reserve Agent's office has advised that on June 28
a e bank
completed the charge-offs in accordance with the proram
_greed upon.
these losses were not charged off prior to the
7?cPiration of the ninety-day extension of time from Yarch 1, 1934,
the Federal
Reserve Agent's office recommends, and the Federal ReServe Board
concurs in the recommendation, that you give final apval to the operation of receiving and disbursing stations at Cedar
e,,ve and
Sheboygan Falls, Wisconsin, by the Citizens State Bank of
oneboyga-,
IL Wisconsin."
q
Approved.
Letter dated July 19, 1934, approved by three members of the Board,
to *.
Sargent, Assistant Federal Reserve Agent at the Federal Reserve Bank
or
Vrancisco, reading as follows:
4_
"Receipt is acknowledged of your letter of July 7, 1934, with
871sures, referring to the transaction whereby the 'Dallas City
al;lk ) Dallas, Oregon, acquired certain acceptable assets and assumed
ce
'
L the liabilities of the Dallas National Bank, Dallas, Oregon, ex8,pt liabilities for circulating notes outstanding, expenses, and to
14)ckholders, effective at the close of business June 30, 1934.
Board has reviewed the condition of the Dallas City Bank
as
19,
reflected in the report of credit investigation as of March 31,
reflected
or`41 and the
report of investigation of the Dallas National Bank as
21, 1934, from which it appears that the transaction has not
resulted
01,--4
•4ed in any material change in the general character of the assets
?r broadening in the scope of functions exercised by, the member
it titUtien within the meaning of the general condition under which
Bo,was admitted to membership in the Federal Reserve System. The
itjed, therefore, and in accordance with your recommendation, will
rPOse no objection to the transaction which, it is understood,
w
as c—.
m
-Aluummated with the approval of the appropriate State authorities."
Approved.
2218
7/20/34
Letter dated July 19, 1934, approved by three members of the
BOard
2
to Mr. O'Connor,
Comptroller of the Currency, reading as follows:
, "In accordance with your recommendation, the Federal Reserve
150ard approves h reduction in the common capital of 'The First
National Bank of Inwood', Inwood, New York, from :A00,000 to i;50,000,
.1?lizsuant to a plan which provides that the bank's capital shall be
creasd_1.-n
by the sale of ,P5,000 of Class 'A! preferred stock to
.c..he Reconstruction Finance Corporation and '40,000 of Class 'B' preferred stock to others and that the released capital together with
1-rPlus and the undivided profits account shall be used to eliminate
all
estimated losses and depreciation in lower grade securities,
all as set
forth in your memorandum dated July 12, 1934."
Approved.
Letter dated July 19, 1934, approved by four members of the Board,
tot[r.
O'Connor) Comptroller of the Currency, reading as follows:
t
"In accordance with your reconmendation, the Federal Reserve
approves a reduction in the common capital of 'The First NaBank and Trust Company of Port Chester', Port Chester, New
from :A00,000 to :.250,000, pursuant to a plan which provides
°rat the bank's capital shall be increased by the sale of '.300,000
ot,Preferred stock to the Reconstruction Finance Corporation and/or
Others,
and that the released capital of :A50,000 shall be used to
;
stminat
L
e that amount of the least desirable assets in the bnnk, all
set forth in
your memorandum dated July 5, 1934.
"In considering the plan under which the proposed reduction in
eaPital
•
the
is
to be effected, it is observed that there will remain in
,_ bank a substantial amount of unsatisfactory assets. It is as5e that
You have this condition in mind and will take appropriate
Pa to effect
such further corrections as may be practicable."
Approved.
to
Letter dated July 19, 1934, approved by four members of the Board,
ot
Cc/nnor, Comptroller of the Currency, reading as follows:
J.111 "Receipt is acknowledged of your supplemental memorandum dated
'1934, in reference to the proposed reduction in common capitee 9
Ttlacstook
1 'The First National Bank & Trust Company of Tuckahoe',
1934ab°e, New York, which was approved by the Board on February 2,
in accordance with the plan as set forth in your memorandum of
y 23,
1934.
2219
7/20/34
,,.
"You advise that it has now been arranged with the Reconstruction
"
- inane° Corporation to increase the bank's capital by the issuance and
sale of )300,000 of preferred stock M200,0
00 of Class 'A' preferred
-tock to be
purchased by the Reconstruction Finance Corporation and
?100,000 of Wass 'B' preferr
ed stock to be purchased by local interests) instead
of ::450,000 as originally contemplated.
."In accordance with your recoluuendation, the Board amends its
approval of the proposed reduction in common capital, to proVide f2or the
sale of J100,000 of Class 'B' preferred stock to local
.literests instead of :250,0
00 of such stock, as stated in your memorancillm.of July 9,
understanding that none of the released
the
with
1934,
capital
will be returned to shareholders, and that the released capital
together with the bank's surplus and undivided profits shall be
1??d to elimina
te an eeuivalent amount of substandard assets and securities
;
depreciation, in accordance with your me:i,orandum of January 23,
434.”
Approved.
Letter dated July 19, 1934, aoproved by three member of
the Boara,
s
t° 111.
--nn°r, Comptroller of the Currency, reading as follows:
"In
aPProves accordance with your recommendation, the Federal Reserve Board
of
a reduction in the common capital of 'The First National T-ank
pin,1:°11ett% Lionett, ijissouri, from l>60,000 to ,30,000 pursuant to a
sai- which provides that
the bank's cauital shall be increased by the
pore,
°f ';25,000 of preferred stock to the Reconstruction Finance Cortaatai°n, and for the use of the released capital in eliminating approxiundZ-LY : 28,000 of unsatisfacto
ry assets and in augmenting the bank's
yourvided profits account by approximately 02,000, all as set forth in
IlleMorandum of July 7,.1934."
Approved.
Letter
ti)
dated July 19, 1934, approved by three members of the Board, .
0
'Connor,
„pro .Ln
Comptroller of the Currency, reading as follows:
accordance with your recommendation, the Federal Reserve Board
ves a reduction in the common capital stock of 'The First National
u,26aond
Trust Company of Tulsa', Tulsa, Oklahoma, from :,2,500,000 to
shall !
i °°0) pursuant to a plan which provides that the bank's capital
lieco ue increased by the sale
of Hl,250,000 of preferred stock to the
be
used,ruction Finance Corporation and that the released capital shall
to
to eliminate unsatisfactory assets in the amount of 500,000,
belli,(3vid e a special reserve for losses of $500,000 and to augment the
Your 3 surplus account in the amount of .-250,000, all as set forth in
raeziorand
um 0f July 10, 1934.
2220
7/20/34
-5"In considering the plan under which the proposed reduction in
caPital is to be effected it is observed that you felt the released
?apital should be required to be used to eliminate all estimated
sses and any balance remaining after such elimination should be
uP as a special reserve against doubtful assets but, in view of
the
opposition expressed by certain stockholding interests toward any
,
1)an for rehabilitation of the bank's capital, it was deemed advisable
the circumstan
ces to use the released capital in the manner set out
iii
,,, the preceding paragraph. It is assumed, however, that appropriate
6ePs will be taken
to effect further corrections at such times as may
be
practicable."
r
Approved.
Letter dated July 19, 1934, approved by three members of the Board,
to 1r
* °IC°nn°r, Comptroller of the Currency, reading as follows:
ref "Receipt is acknowledged of your letter of July 12, 1934, with
Fa ()ranee to the proposed reduction in the common capital of 'The
A4
,
rmers and L:erchanT,s National Bank of Eureka', Eureka, Nevada, from
3,)
v 000 to ,;25,000 which reduction was approved by the Board on June
sal 1934 pursuant to a plan which provided among other things for the
1_ e to ,
A
4irectors and/or other shareholders at face value and for cash,
vans to the
extent of y30,000 classified as doubtful and worthless.
1101,4 "You now advise that it has been found impossible for the share10 "ers to raise the ,30,000 with which to purchase this amount of
wirits classified as doubtful and worthless but that the shareholders
""I' lnaks a voluntary contribution of ;13,000 in lieu of the purchase
A 6ns assets
mentioned.
pzer"In accordance
with your recommendation, the Board amends its
cia,„1°118 approval by eliminating the requirement that ,.
;30,000 of loans
:
fiB d as doubtful and worthless be purchased at face value and
for-s
prozft" with the understanding that a voluntary contribution of apot ..
1 4telY ,13,000 be made to the bank, and that the other provisions
"e
1" original plan remain unchanged."
I
Approved.
Letter dated July
19, 1934, approved by four members of the Board,
to
17ard K. Haas, Poughkeepsie, New York, reading as follows:
or
i :This
refers to your letter of July 3, 1934 regarding the payment
;
16!est by the Fallkill National Bank Lc Trust Compnny of Poughkeepsie,
on uninvested funds held by that bank as trustee. You state
81,_ on 6eptember
28, 1933, the Banking Department of New York State
.40peaded the
Operation of subdivision 11 of Section 188 of the State
2221
7/20/34
-6"Ikulking Law which reouired the payment of interest at the rate of two
Per ceatum per annum
by trust companies upon uninvested trust funds;
and that
from that date till May 11, 1934 there was no State provision
(111.iring the payment of interest upon such deposits. It is understood
that You
wish to be advised whether the Fallkill National Bank (Sc Trust
may
lawfully pay interest during the period from September 28,
19 3"
to May 11, 1934, upon uninvested trust funds held by it
which are
PaYable on demand.
m,_, "As You know, Section 19 of the Federal Reserve Act forbids a
'woer bank, directly or indirectly, to pay interest on any deposit
1?eYab1e on
demand, except in accordance with a contract entered into
a
la good faith
prior to June 13, 1934, and in forte on that date; and
member bank is required to eliminate from any such contract any profor the payment of interest on deposits payable on demand as
!
° 11 as possible consistently with its contractual obligations. The
Feder
Reserve Board has ruled, with specific reference to trust cam,ries organized under the laws of the State of
New York, that this
de,!,ti°11 le applicable to the payment of interest by a member bank upon
tirsits of funds held in a fiduciary capacity which are deposited by
mee,trust department in another departm
ent of the bank subject to pay:
4 04 demand, notwithstanding the fact that the State law requires
the„
Pent of interest by trust companies on such funds. It is ast;
Laed that the uninvested funds to which you refer in your letter are
ear!ed by the trust company as deposits and that they are not segret,
from the general assets of the company and otherwise subjected
safeguards ordinarily imposed upon the custody and use of trust
In these circumstances, it would appear that the ruling of the
above referred to is applicable to the case presented in your
and that, therefore, no interest may lawfully be paid by the
(1:4,:uacill National Bank & Trust Company
upon funds of the character
eribed bY you which are payable on demand, irrespactive of whether
Payment of interes
t on such funds is required under State laws.
"In this connect
ion, your attention is called to the fact that
the
eaWrohibition
against the payment of interest on deposits is applibeakke °IllY to deposits payable on demand and does not prevent a member
Paying interest on time deposits in accordance with the provi7
yo
,
a,.Q of the
Board's Regulation Q, a copy of which is inclosed for
ia
formation."
2
Z
Approved.
Letter dated
July 19, 1934, approved by three members of the Board,
to
te
4
'
l16740119 Federal Reserve Agent at the Federal Reserve Bank of Atlanta,
444g as
follows:
1934 "Receipt is acknowledged of Mr. L. M. Clark's letter af June. 25,
advi 4
of your procedure in issuing to the Commercial National
7/20/34
"Bank of Anniston, Anniston, Alabnmn, a certificate of stock reprosellting 216 shares of capital stock of the Federal Reserve Bank of
Atlanta to replace the one which had been misplaced by the member
baak.
A
"Since, under the provisions of section 5 of the Federal Reserve
*.lets shares of Federal reserve bank stock are not transferable and
`41nnot be hypothecated the Board is of the opinion that a new certificate of stock
may be issued to replace one which has been lost and
that a bond
of indemnity may not be necessary if the new certificate
arkid 'Duplicate'
D
to show that it is issued in lieu of the lost
certificate.
The Board, however, has no objection to the procedure
ch Was
followedby the Federal Reserve Bank of Atlanta in the in-
Approved.
Letter dated July 19, 1934, approved by four members of the Board,
to Gov_
tollows:
Geery of the Federal Reserve Bank of Minneapolis, reading as
th ,"This refers to your letter of Tuly 10, 1934, in which you state
You have received a coo' of the 'National Recovery Administration
1,;'"°r provisions for banks' and request to be advised whether Federal
serve banks are
subject to this code.
th "From a telephone conversation with a deputy administrator in
pr°
e
National Recovery Administration, it is understood that no labor
illansions applicable to banks have been prescribed under the National
cod
'
43trial lecovery Act except the provisions contained in the inclosed
de,: °I
'Fair Competition far Bankers, which was approved by the Presiear on
October 3, 1933. The definition of the term 'bank' in that
zoll;
e lacludes all national banks, State banks, savings banks (except
de 11E11 savings banks), trust companies, and private bankers accepting
tl
,cpsits, in the United States proper, and, consequently, it does not
ar that the
Code in terms is applicable to Federal reserve banks.
vers it is believed that it is desirable that each Federal reserve
or
should consider the advisability of conforming to the provisions
alaa311ch code which are of a nature applicable to Federal reserve banks
tothe Board has no objection to a Federal reserve bank conforming
such
provisions.
ti.1/404 "If the labor provisions contained in the Code of Fair Competifor
Bankers are not those which you have in mind, it will be apPreelated
•
descri„ if
you will furnish to the Board either a more specific
-"on of the nature and source of the provisions to which you
refe
,
copy of such provisions."
4
Approved.
2223
7/20/34
Letter dated July 19, 1934, approved by four members of the
to Ur. Frederick A. Singleton, Brooklineassachusetts, reading
48 f°11ows:
1934"The Federal Reserve Board has received your letter of Tuly 13,
;,regarding your application for a permit under Section 32 of
he
JCflg Act of 1936 to serve as an officer and director of the
:‘Levard Trust Company, Brookline, Massachusetts and as manager of
the
Providence branch of Kidder, Peabody & Company, Boston, Massa"You invite the Board's attention to the fact that you have
b
been
connected with the Boulevard Trust Company since its organizat8 °II in 1910 and that the bank has prospered during the time of your
!!vice. You also state that although at some time in the future you
intend to
retire from Kidder, Peabody & Company, you feel that you
t Y not conveniently do so at this time and that you feel it is unAV'z tor you to be required to sever your relations with the bank.
sc," 0, you request that the Board outline to you such conditions as
Permit you to continue your service to the Boulevard Trust COM"
47 ae well as to Kidder, Peabody& Company.
to b "la its letter of Tune 11, the Board indicated that it appeared
zei!the purpose of Congress in enacting Section 32 to terminate
b '`II-Glonships of the types described in that section between member
:
t 48 and dealers in securities and, in view of such policy the Board
1,11.:2 that it
should not issue permits authorizing relationships
as"Z.un the provisions of the section, except in unusual cases such
.1)14 hose which are included within the literal terms of the statute
11,, which are actually of a kind different from those at which its
—"visions were directed.
her "However, the Board believes that the information which you have
colae
,;t°fore sutmitted in support of your application is sufficiently
is
lTive to indicate that the business of Kidder, Peabody & Company
rel-ì
!eu as to bring it within the scope of the statute and that the
di4:1°48hiPs covered by your application are not actually of a kind
rect
'
zent from those at which the provisions of Section 32 more diouti?d. In the circumstances, the Board does not believe that it may
oul e any conditions under which you may continue to serve the
'
17ard Trust Company and Kidder, Peabody & Company in your present
'
4Pacitiss.
coxitilue toard is not unsympathetic with your reasons for wishing to
Of thillle as a director of the Boulevard Trust Company, but in view
rsadvebPurPoses underlying the enactment of Section 32, as have alin ;
t LI eell outlined, the Board believes that it would not be justified
4lig an exception to the general rule prescribed by Congress and
graaj
a permit to you to serve at the same time as an officer or
dieet
Psabit°11 of that bank and as manager of a branch office of Kidder,
CompanY. It will, therefore, be appreciated if you will
Bn
2224
7/20/34
-9"advise the Federal Reserve Agent at the Federal Reserve Bank of
8°8t°n as to the steps which you take in order to comply with the
provisions of the law."
Approved.
Letter dated Tuly 19, 1934, approved by four members of the
13°41'd, to mr.
11%7 York,
Case, Federal Reserve Agent at the Federal Reserve Bank of
reading as follows:
19 "The Federal Reserve Board has received your letter of Tuly 13,
34 regarding the application of D..
Royden laein for a permit
der
Section 32 of the Banking Act of 1933 to serve as director of
floral Park Bank and as officer, director and manager of the
p=r-C°untY Title Guaranty and Mortgage Company, both of Floral
New York, in which you have inclosed a copy of your letter of
,9, 1934 to Er. Klein, a copy of a statement regarding the aplo ai,
uility of section 32 to a corporation engaged in the mortgage
business,
u
a copy of Li.. Klein's letter of Tuly 3, 1934, to you,
a ;7„:py
of your counsel's opinion in the mater and a form of a
rrranteed First Mortgage Certificate issued by the Inter-County
ITJ-e Guaranty and
Mortgage Company. The Board has not been furshed
with copies of the appropriate Federal Reserve Board forms
44:taining to Mr. Klein's application.
lzor,"Mr. Klein has stated that the Inter-County Title Guaranty and
i,,gage Company does not engage in underwriting, selling, or deal1;Z° in securities and that since the bank holiday the company's gross
i4!
l Le has been practically, in its entirety, receiTed from activities
i4
company's title organization, from interest on mortgages held
uS portfolio and other miscellaneous interest income. It further
raPears that,
while the certificates sold by the Company in the past
have been such as to be regarded as 'securities' within the meantilt
. Of
32, the company has not issued any new certificates since
are
a
l ,holiday, that it is steadily reducing such certificates as
ceri .uti
L' and that it has no intention of issuing any further
standin„,.
icates of the type submitted or of a similar nature.
eou
,"Upon the facts submitted, the Board agrees with you and your
liotlel that the Inter-County Title Guaranty and Mortgage Company may
eell.e regarded
as 'engaged primarily in the business of purchasing,
eza .itt'jz, or negotiating securities' within the scope of Section 32
t a Permit covering Mr. Klein's service to that company and '
to
the
leas ,Ploral Park Bank is not necessary. In the circumstances, unn„
ullere0,„
are
,, other facts which you believe should be brought to the
6e4tion
-u
cordi„
-4 the Board, it is suggested that you notify Mr. Klein ac-
r
5
Approved.
2225
7/20/34
-1041
Letter dated July 19, 1934, approved by four members of the
13°Etrcl$ to The First National Bank and
Trust Company of Ossining, New
'Thz1c, reading
as follows:
"The Federal Reserve Board has received your letter of Tune 25,
1931, aiEned by your President, your Vice-President, your Cashier,
and seven members
of your Board of Directors, which letter relates
ts() the applications under section 32 of the Banking Act of 1933 for
vermits made by Er. James H. Carter to serve
as a member of your
.
‘
1.(11sd of Directors and as a partner of Carter & Co., New York, New
and by Mr. Buchanan Houston to serve on your Board
of Directors
a'btcl a3 a partner of H. T. Carey 8r, Co., New York, New York.
, "In your letter you give a summary of the history of The
First
Bank and Trust Company of Ossining, state the qualifications
Carter and Er. Houston which make them valuable as members of
,!()nr Board of
Directors and give a brief account of the type of busis carried on
by Carter& Co., and by H. T. Carey & Co. It appears
both fims cary
on a general stock brokerage business and that
beZt
b 11 make loans to customers on margin accounts secured
by stock and
CO]j
"In its letter of
July 3, 1934, to Mr. C. T. Young, your President
.11
to
,$ .
connection with the applications of Mr. Carter and Mr. Hous84
'
'
4 the Board invited Ur. Young's attention to
the fact that Section
15,2! the Clayton Anti-Trust Act prOhibits a director of a
national
arc tram
serving as a member of a partnership which shall make loans
g4./t.Ted by stock or bond collateral. Since both firms of
which those
se,;" 41ell are partners carry margin accounts which involve such loans,
08...
siice as a
director of The First National Bank and Trust Company of
whic ilig and as a partner of either firm constitutes a relationship
st.,74 is Prohibited by the provisions of Section SA. In the circum84Veal it would serve
no useful purpose to issue a permit under
an 32 to either
applicant, since a permit issued under that
se;:lon cannot
render lawful a relationship which is forbidden by
'ion 8A of the Clayton
Act.
80
,qloreaver, the
authority which is given to the Board by Section
81,4 4 the Clayton Act
to grant permits for the continuance of relation-Pa
ich are forbidden by SA is
t0
limited to relationships between
ers44
"more banking institutions and the Board
has no authority to
part
; PerMits covering
relationships between a national bank and a
is 40
:
rshiP which is not engaged in the banking business. The Board
lioustv unaPpreciative of your reasons for wishing W.
Carter and Mr.
ileith°4 to continue as members of
your Board of Directors, but since
i4 ther or the
brokerage firms of which they are partners is engaged
thesee banking business, the Board has no discretion in the matter of
cove;iaPPlications and may not issue a permit to either applicant
lig his service
to The First National Bank and Trust Company of
T
fP
2226
7/20/34
-11-
"Ossining and to his firm."
Approved.
Letter dated July 19, 1934, approved by four members of the
to mr.
as
Orville H. Bullitt, Philadelphia, Pennsylvania, reading
follows:
"The Federal Reserve Board has received your letter of Tilly 2,
for referring to your letter of June 5, concerning your application
a Permit under Section 32 of the Banking Act of 1933 to serve as
.diree-tor of the Central-Penn National Bank and as a partner in the
1 11
'
4 °f
H. Newbold's Son L Co. Reply was made on July 6 to your
-Letter of
June 5.
nn, "In Your letter of July 2 you requested information as to the
of the further facts which the Board desires in connection with
Yu
application and stated that you would be willing to submit such
er information as may be desired. It is assumed that you referred
the lust
Paragraph of the Board's letter of I:ay 31, 1934. In that
ietter after stating that it was unable to find that it would not be
ccYrilPatible with the public interest to issue a permit to you covering
service to
H. Newbold's Son & Co. and the Central-Penn National
the Board asserted that it was prepared to give careful considerain°4 t3 any further facts or arguments which you might desire to submit
Support of your application.
"The Board has previously indicated that it appeared to be the
se of Congress in enacting Section 32 to terminate relationships
in he tYPes described in that section between member banks and dealers
shosecurities and, in view of such policy, the Board feels that it
siould not issue permits authorizing relationships within the provialien? °f the section, except in unusual cases, such as those which
:
act leluded within the literal terms of the statute but which are
di
411r of a kind different from those at which its provisions were
Ilected.
furth
Wr
er, the Board believes that the information which you have
heret"11°w"
eon,
i er°re suhmitted in support of your application is sufficiently
is ;'llsive to indicate that the business of 7,-. H. Newbold's Son & Co.
reial h as to bring it within the scope of the statute and that the
cliff lenship covered by your a'iplication is not actually of a kind
1,ecte
ernt from those at which the provisions of Section 32 were diIn the circumstances, the Board believes that it would not
be •
Justi
if ed
004,,z1,
in making an exception to the general rule prescribed by
O3
and granting a Permit in your case. It will therefore be
app1,e
cu.& ted
you will advise the Federal ieserve
ent at the Federal
to c2e 13alf== of Philadelphia as to the steps which you take in order
-ILIPlY with the provisions of the law."
Approved.
2227
•
7/20/34
-12Letter dated July 19, 1934, approved by three members of the
13°11trd) to mr.
or
New
Case, Federal Reserve Agent at the Federal Reserve Bank
York, reading as follows:
"There is inclosed a Clayton Act permit covering the service
!
,
.
c) Mr. Adam 'duller as director and officer of The Lindenhurst Bank,
-u_lildenhurst, New York, and as director and officer of The Hampton
JdaYs
_
National Bank, Hampton Bays, New York. It is noted that in
:TPlY to question numbered 12 on application form 94, the applicant
etee that he is also serving as director of the Amityville Bond
elld Mortgage
Company, Amityville, New York.
,, "While the Board does not have detailed information regarding
e character of
the business of Amityville Bond and Lortgage Corn).t appears possible that the provisions of Section 32 of the
Act of 1933 are applicable in connection with his service as
_Teeter and
officer of The Hampton Bays National Bank, and as director of
the Amityville Bond and Eortgage Company. You are, acrequested to withhold delivery of the Clayton Act permit
tallier
until you are satisfied that Section 32 does not apply
to 11*.
to the relationship above described, in which event you are authorized
t, `'eliver the Clayton Act permit to the applicant, at the same time
'anamitting copies thereof to the banks involved.
trl
;f you find that Lr. Euller's service with the Amityville Bond
Cage Company and the member bank involved comes within the
quir3efons of Section 32 you are requested to advise him of the reeatio4Ts of that section and notify him that he may file an appli-Lor a permit covering such service. Of course, if upon a
rell
'
I'aeration of the facts involved, with the advice of your counsel,
4.4re unable to determine whether Er. Luller's service comes withhe
provons of Section 32, the Board, upon receipt of full indearti°n, will be glad to rule upon the rintter. In any event, the
bee 7e17 of the Clayton Act permit should not be made until it has
a4d11,
1 determ
Lined that 1r. Muller's service with the Amityville Bond
la the°11tcage Company and the member bank involved does not come withProvisions of Section 32 or that his service with such instith„-ns has been brought into conformity with the requirements of
r
SeetiOn.
"131ease advise the Board of your action in this matter.”
Approved, together with two similar letters, also
dated July la, 1934, and approved by three members of
the Board, to Er. Austin, Federal Reserve Agent at the
.ederal Reserve Bank of Philadelphia, inclosing Clayton
Act permits covering the service of Lir. Edward C. Bostock
as a director of the Tradesmens National Bank and Trust
2228
I
7/20/34
-13Company, Philadelphia, Pennsylvania, and as a director of
the Huntingdon Valley Trust Company, Huntingdon Valley,
Pennsylvania, and the service of Mx. Edmund Williams as
an officer of the Tradeamens National Bank and Trust Company,
Philadelphia, Pennsylvania, and as a director of The Morris
Plan Company of Philadelphia, Philadelphia, Pennsylvania,
and referring to Li'. Bostock's service as director, secretary
and assistant treasurer of The Pitcairn Company, and Ia..
Williams, service as treasurer of the Tradesmens Corporation, both of Philadelphia, Pennsylvania.
Letters dated July 19, 1934, approved by two members of the
1(3a11(1) to
applicants for permits under the Clayton Act, advising of ap-
1)1'°78.1 of
their applications as follows:
• I
vnn Allen, for permission to serve at the same time
a director of the Trust Company of Georgia, Atlanta,
and as a director of the Federal HOMB Loan Bank
--L Win
ston-Salem, Winston-Salem, North Carolina.
r
no -""sron Black, for permission to serve at the same time
0
-7 an officer of
the Trust Company of Georgia, Atlanta,
Drzgia, and as a director of The First National Bank of
Rome, Georgia.
t
Robert Strickland, for permission to serve at the same
Ge e as a director and officer of the Trust Company of
zz°!eia, Atlanta, Georgia, and as a director of The National*
ellaLge Bank of Augusta, Augusta, Georgia.
M.
T. Thompson, for permission to serve at the same
as
a director and officer of the Pioneer State Bank,
Tor
Ncti,
ez, North Dakota, as a director and officer of The First
alid--I!sl Bank of Geyser, Geyser, Montana, and as a director
c4ficer of the
Basin State Bank, Stanford, Montana.
11z. E. - •
di
p
The
First
Galt, for permission to serve at the same time
tor and officer of The First National Bank of Great
atlalls,,Montana, and as a director and officer of
National Eank of Geyser, Geyser, Montana.
1.51.. E. 0
permission to serve at the same time
Midland National Bank of Billings, Billings,
4-04tan ;c?onricifi%hfeor
pal, El, and as an officer of The First National Bank of Great
Great Falls, Montana.
El dir
.
Approved.
2229
I
7/20/34
-14Letters dated Tuly 19, 1934, approved by three members of
th6 B°"d, to applicants for permits under the Clayton Act, advising
ePproval of their applications as follows:
Mr.
4
Charles 0. Ireland, for permission to serve at the same
'
(
01. 1 as a director and officer of the First National Bank
}
b sI113, Islip, New York, as a director and officer of The Bank of
,"-tYville, Amityville, New York, and as a director and officer
The Lindenhurst Bank, Lindenhurst, New York.
11:4% Fred T.
Brown, for permission to serve at the same time
'
0
4;
1 a director and (4ficer of The Union Banking & Trust Company
Du Bois, Du Bois, Pennsylvania, and as a director of The
n
‘Jouil
tY National Bank at Clearfield, Clearfield, Pennsylvania.
T. ,Craig, for permission to serve at the same time as
uirector and officer of The National Bank of Slatington,
Satington, Pennsylvania, and as a director and officer of The
irst National
Bank of Palmerton, Palmerton, Pennsylvania.
George A. Carpenter, for permission to serve at the sane
on9 as a director of the First National Bank af Lawrence
ulltY, New Castle, Pennsylvania, and as a director and officer
I' the Union Trust Company of New Castle, New Castle, PennsYlV/Inia.
j
Mr.
AI
'.1-L
ex Crawford Hoyt, for permission to serve at the same
o nli? as a director and officer of the First National Bank
di,4-4wl'ence County, New Castle, Pennsylvania, and as a
d officer of the Union Trust Company of New Castle,
1: Pennsylvania.
LIZ". R.
n
n
C. Love; for permission to serve at the same time as
-codirector and officer of the First National Bank of Lawrence
$ New Castle, Pennsylvania, and as a director and officer
oril
'
14 Union Trust Company of New Castle, New Castle, PennsYlvaaja.
ti
e=1:
as
ilorman Lartin, for permission to serve at the same time
New
'
uirector of the First National Bank ae Lawrence County,
UnionCastle, 7geo=7
y1:1vania,and as a director and officer of the
Trust
of New Castle, New Castle, Pennsylvania.
S. LeKee, for permission to serve at the same time
uirector and officer of the First National Bank of Lawrence
tY) New Castle, Pennsylvania, and as a director of the Union
st co
1114/a4Y- of New Castle, New Castle, Pennsylvania.
TriT
2230
7/20/34
-15T. F. Morehead, for permission to serve at the same
time
!
11T8 a director of the First National Bank of Lawrence
County,
e17 Castle,
Pennsylvania, and as a director of the Union Trust
`jamPanY of New Castle, New Castle, Pennsylvania.
Mr. Rufus C. Patterson, for
permission to serve at the same
as a director and officer of the First National Bank of
La wrence
Lawrence
County, New Castle, Pennsylvania, and as a director
alld officer of the Union Zrnst Company of New Castle, New
Castle, Pennsylvania.
14-r. Xames M. Smith, for permission to serve at the same time
!
18 a director of
the First National Bank of Lawrence County,
fp3w
Castle, Pennsylvania, and as a director of the Union
/'llst Company of New Castle, New Castle, Pennsylvania.
141*. B T. Flanary, for permission to serve at the same time
Is
xI a
director and officer of The First National Bank of
T.°,rt°11, Norton, Virginia, and as a director and officer of
First National Bank of Wise, ,Vise, Virginia.
Mr. 1-) ,
as". D. Cowley, for permission to serve at the same time
director and officer of The Peoples Bank of Kelso,
Tennessee, and as a director of the Union National
Of
Vayetteville, :Fayetteville, Tennessee.
0
C.,
Shepherd, for permission to serve at the same time
la
director and officer of the Merchants and Farmers Bank,
!alas Alabama, and as a director of The American National
')L4"1 Or
Gadsden, Gadsden, Alabama.
Liz
'• R. Jones, for permission to serve at the sane time
a director
and officer of the Holstein State Bank,
Stareta' i°wa' as a director and officer of the Ida County
Of-4.? Bank: Ida Grove, Iowa, and as a director and officer ulie
Iirst National 1;ank in Sioux City, Sioux City, Iowa.
14r. Geol.,
' 10. Schunaman, for permission to serve at the same
Ster1,14/3 a director and officer of The National Bank of
or Fm..4g,
4.
Sterling, Illinois, and as a director and officer
First National Bank of I:_anlius, Danlius, Illinois.
Dr. xo,
dlitt:e:
17,er, for permission to serve at the same time
The First Lational Bank of St. Charles, St.
axid
lassouri, and as a director of the Industrial Bank
-l'ust Company, St. 'olds, Ylissouti.
1.11't l'art
Ms, for permission to serve at the same time as
a di;,
--c or and officer of The First National Bank of New
2231
7/2o/34
-16ROckford, New Rockford, North Dakota, and as a director and
friosr of The National Bank of
Jamestown, Jamestown, North
Dakota
14r. :Edwin G.
Clapp, for permission to serve at the sane time
as a
director of The 1:.erchants National Bank and Trust CornOf Fargo, Fargo,
North Dakota, and as a director. and
400r of the First
State Bank of Page, Page, North Dakota.
11. W. H.
Johnson, for permission to serve at the same time
as a
director and officer of The First National hank of Rapid
City, Rap
id City, South Dakota, and as a director and officer
or The
Commercial National.Bank of Stur.
t is, Sturgis, :J,outh
;
Dakota.
diA. Seeger, for permission to serve at the same time
as Zrohn
a • rector of
The Empire National Bank and Trust Company
of St.
2aul, St. _aul, 1,:innesota, and as a director and officer
or the
Northwestern State Bank, St. .Caul, Iiinnesota.
1 . 'C.
?
Shepard, for permission to serve at the same time
as
t' a
director and officer of The Empire National Bank andTrust
,"
2
aaY or St. Paul, St. Paul, Liinnesota, and as a
director
°fricor of The Northwestern State Bank, St. Paul,
1:linnesota.
Mr. p.
as
A. Horrall, for permission to serve at the same
time
0k1,
8director and officer of the 'Bank of Drummond, Drummond,
0a,r7," trla, as a director of 2he lirst National Bank in Carmen,,
e
-7n,
Oklahoma, and as a director of the Bank of Cyril,
`'Yr11,
Oklahoma.
71‘
4s
.R. StallinGs, for permission to
serve at the same time
:
l director
and officer of The First National Bank in
Ca
B601alicen, Carmen,
Oklahoma, as a director and officer of the
Drizaliond, Drummond, Oklahoma, and as a director and
'cox' of the
Bank of Cyril, Cyril, Oklahoma.
.
as as Conant
Parks, for permission to serve at the se
am time
roctor and officer of The
First National Bank of Lander,
ViY°°IinC, and as a director af The Shoshone National
c't Cody, Cody, woming.
44(14i
'C. 1-,
tbterarics, Jr., for permission to serve at the same
or 0 aS a
director and officer of The Shoshone National Bank
CodY, Wyoming, and as a director and officer of The
1,1ational Bank aC Lander, Lander, Wyoming.
Mr. x.
oR
- a A4
'Williams, for permission to serve at the same time
`"-roctor and officer of The National Bank of Commerce
22:12
7/20/34
-17t
Altus, Oklahoma, and as a director of The First
National Bank of Snyder, Snyder, Oklahoma.
11r.
T
u.
B. Adoue, Tr., for permission to serve at the same
as a director and officer of The National Bank of Commerce
allas, Dallas, Texas, and as a director and officer of the
4ALL-Las Uorris Plan Bank, Dallas, Texas.
+4
T
'
Lra
T. Moore, for permission to serve at the same time as
clirector of The flational Bank of Commerce of Dallas, Dallas,
xeza
as, and as
m
a director of the Dallas Lorris Plan Bank, Dallas,
eXEL
.
Approved.
There was then presented the following
application for chance
illatock of a
Federal reserve bank:
icatioa for
ORIGINAL Stock:
Shares
The Zlrat
National Bank of Oconto,
C/e°11tos 4i8consin
36
36
Approved.
Thereupon the meeting adjourned.
1"{- )
Se retary.
44roired:
ilzecutive Committee.
@FedFRASER