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1427 A meeting of the Board of Governors of the Federal Reserve System held in Washington on Friday, July 24, 1936, at 11:00 a. m. PRESENT: Mr. McKee Mr. Ransom Mr. Davis Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Consideration was given to each of the matters hereinafter reto and the action stated with respect thereto was taken by the Board Telegrams to Mr. Sanford, Assistant Secretary of the Federal ReserT, - we Dank of New York, and to Messrs. Strater and Young, Secre8 of the Federal Reserve Banks of Cleveland and Chicago, respec- tilre1Y) stating that the Board approves the establishment without c1.4117e bY the New York bank on July 23 and by the Cleveland and Chic/ banks today ' the rates of discount and purchase in their existrg schedules. Approved unanimously. Memorandum dated July 23, 1936, from Mr. Van Fossen recommend- tAg th _ temporary appointment, for a period of three months, of Miss &Lice Swindlehurst as a comptometer operator in the Division of Bank -°118 with salary at the rate of t120 per month, effective as of the date upon which she enters upon the performance of her duties. Approved unanimously. Telegram to Mr. Fleming, President of the Federal Reserve Bank 1428 7/24/6 -2of Cleveland, reading as follows: "Your letter July 20. Board appraves appointment of N. R. Matter as Assistant Federal Reserve Agent and Lester Nenk as alternate to Assistant Federal Reserve Agent at Your bank with understanding that before appointment beComes effective they will resign their positions in operating department and thereafter be placed on Agent's roll and be solely responsible to him. In addition to performing duties in Agent's department they may be detailed by Agent With approval of President to perform such other functions as outlined in your letter as will not be inconsistent with their duties as Assistant Federal Reserve Agent and alternate. They should each execute usual oath of office and surety bond in amount of 50,000, and bonds should be examined by your Counsel to determine whether execution com-ies fully with rules printed on reverse side of bond form 182, before they enter upon their duties. Thereupon the bonds should be forwarded promptly to the Board for a pproval. "When appointments of Messrs. Matter and Henk become effective Board will accept resignations to be submitted by Messrs. Pletcher, Evans and Anderson." Approved unanimously. Letter to the board of directors of the "Gary-Wheaton Bank", Whect on, Illinois, stating that, subject to the conditions of membernumbered 1 to 6 contained in the Board's Regulation "H", and the follow ing special conditions, the Board approves the bank's application f 0r membership in the Federal Reserve System and for the approPriate amount of stock in the Federal Reserve Bank of Chicago: Such bank shall stamp, as soon as practicable, in legible form on each certificate for stock of the bank outstanding, and, so long as the legend referred to below is applicable, shall stamp in legible form on each certificate issued upon transfer or in lieu of the certificates now outstanding, a legend reading substantially as follows: Before any dividend or distribution of any 1429 7/24/36 -3"kind or character is made to stockholders as such, the outstanding Depositors' Deferred Certificates and Shareholders' Certificates of Capital Contribution issued by the bank to depositors who waived the payment of a part of their deposits, and to shareholders who made voluntary contributions, respectively, in 1933, pursuant to certain agreements, copies of which are on file with the Gary-Wheaton Bank, must be paid. (In the event that shareholders of the bank fail or refuse to surrender their stock certificates for the purpose of enabling the bank to place thereon the legend referred to in the foregoing condition numbered 7, this condition will be considered as having been complied with by the inclusion in each published statement of condition of the bank of appropriate information showing the relation of the rights of the holders of outstanding Depositors' Deferred Certificates and Shareholders' Certificates of Capital Contribution to the rights of stockholders.) n8. Within six months from date of admission to membership, such bank shall effect the removal from its banking quarters of the Wheaton Mortgage Company now located therein. 119 . Prior to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of t18,043.91, as shown in the report of examination of such bank as of June 8, 1936, made by an examiner for the Federal Reserve Bank of Chicago." Approved unanimously, for transmission through the office of the Federal Reserve Agent at the Federal Reserve Bank of Chicago. Letter to the board of directors of "The First State Bank of th 114ven", South Haven, Michigan, stating that, subject to the con, /430 7/24/56 -4- "°ns of membership numbered 1 to 6 contained in the Board's Reguleti°n "H", and the following special condition, the Board approves the bank, s application for membership in the Federal Reserve System "a for the appropriate amount of stock in the Federal Reserve Bank of Chicago: "7. Such hank shall make adequate provision for depreciation in its banking house and furniture and fixtures." Approved unanimously, for transmission through the office of the Federal Reserve Agent at the Federal Reserve Bank of Chicago. Telegram to Mr. Powell, Assistant Federal Reserve Agent at the liederal Reserve Bank of Minneapolis, referring to the application of the "Farmers State Bank'", Winner, South Dakota, for permission to withdrelfiramediately from membership in the Federal Reserve System, and sta.-Ling that the Board waives the usual requirement of six months notice (3f4tention to withdraw, and that, accordingly, upon surrender of the ?ecieral reserve bank stock issued to the Farmers State Bank, the Fed"el Reserve Bank of Minneapolis is authorized to cancel such stock 1111tfia ' ks appropriate refund thereon. Approved unanimously. Letter to Mr. Dillistin, Assistant Federal Reserve Agent at the Pecier 41 Reserve Bank of New York, reading as follows: or "The Board will interpose no objection to the merger di,othe 'Caleb Heathcote Trust Company of Scarsdale', ScarsNew York, into 'The County Trust Company', White 1431 7/24/36 -5"Plains, New York, under the plan submitted in your letter of July is, 1936, provided the proceedings, contracts and agreements in connection therewith are, in the opinion of Y?ur counsel, legally effective. Please furnish the Board With copies of any amendments to the charter of The County lirust Company which may be effected in connection with the tr ansaction. "In accordance with your recommendation the Board apProves the establishment and operation by The County Trust C°mPany, White Plains, New York, of a branch at Scarsdale, New York, upon completion of the merger with the Caleb Heathcote Trust Company of Scarsdale and subject to final aPproval by the appropriate State authorities. "Please advise the trust company accordingly." Approved unanimously. Telegram to Mr. Sargent, Assistant Federal Reserve Agent at the ?ecieral Reserve Bank of San Francisco, reading as follows: "Re your letter June 10 transmitting with favorable .:.ecommendation request of 'First Trust and Savings Bank of rasadenat, California, for permission in accordance with membership condition numbered 8 to purchase the banking c arters it now occupies. Without undertaking to pass upon p fle question of whether approval of the transaction is rered under section 24A of the Federal Reserve Act, the 2ard approves the investment under the plan submitted in of the benefits which will apparently accrue to the through the adjustment of its obligations under the le It is understood that the appropriate State authori;les have approved the plan and it is assumed that the invest_ent complies in all respects with applicable provisions of btate laws. It is understood that the bank will not increase Ca value of bank premises by capitalizing future pay-ents under the proposed contract but that the amount of such PaYments will be currently charged off as depreciation. Such PlYeedure may or may not afford adequate provision for depreieplation and it is accordingly suggested that you acquaint the _enk with the Board's views, which are known to your office, !ith respect to making adequate provision for depreciation 111 bank premises." Approved unanimously. Letter to Mr. Walsh, Federal Reserve Agent at the Federal Re- 7/24/36 -6- "e Bank of Dallas, reading as follows: "Receipt is acknowledged of your letter of July 10, 1936, advising that the 'Continental-American Bank and Trust ComPanY i, Shreveport, Louisiana, contemplates the retirement of its 250,000 of preferred stock outstanding, which is held DY the Reconstruction Finance Corporation. You state that, although the bank is not subject to a condition of membership which requires that a reduction in its capital be apProved by the Board, you have been informed of the proposed 1,1Dtion in order that your office may be afforded an opportunity of voicing any objection thereto that you may have, and you request that, if the Board has any objections to the retirement of the stock, you be advised of such objections in order that they may in turn be transmitted to the bank. 193 "The report of examination of the bank as of January 4, 62 reflects a generally satisfactory condition, with no estimated losses and a good liquid position, and indicates that it is under capable management. In view of the circumstances and the fact that, based on the report of examination as of January 4, 1936, the bank will have a satisfactory ratio of capital to deposits after giving effect to the retirement of preferred stock, the Board offers no objection to the proposed action." Approved unanimously. Thereupon the meeting adjourned. e )Ve-A( L Member. Secretary.
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