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972 Minutes of actions taken by the Board of Governors of the Federal Reserve System on Wednesday, June 1, 1949. PRESENT: Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Szymczak Draper Vardaman Clayton Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the l'ederal Reserve System on May 31, 1949, were approved unanimously. Memorandum dated May 27, 1949, from the Division of Person461 Administration, recommending that the Board accept a temporary 3o pe rcent increase in the amount of insurance covering employees °t the Board in lieu of a refund on the premium of group life in61114e policy No. 8042 issued by the Aetna Life Insurance Company. The m.. rnorandum also recommended that notice be sent to members of the Board's staff regarding the increased insurance coverage. Approved unanimously. Letter to Mr. Alfred H. Williams, President of the Federal Re8erve Bank of Philadelphia, reading as follows: , "As requested in your letter of May 6, 1949, the .board of Governors of the Federal Reserve System aproves a payment by the Federal Reserve Bank of Philadelphia to the insurer of whatever amount is necessary, estimated to be approximately $1,400, under the group life insurance program for the coming year. "We concur in your suggestion that a study be made of the group insurance programs in order that a System 6/1/49 -2- policy may be developed with respect to the operation Of such plans, and the Presidents' Conference is being asked to make a study of the matter." Approved unanimously. Letter to Mr. Davis, Chairman of the Conference of Presiciellts) Federal Reserve Bank of St. Louis, reading as follows: "From time to time the Board of Governors is requested to authorize a Federal Reserve Bsnk to assume part of the cost of its group life insurance program because the annual net premium exceeds the amounts collected from the emPloyees. While the Board has approved these requests, it feels there should be a System policy with respect to the operation of group insurance plans, particularly in so far as it involves the matter of absorption by the Bank °f any part of the cost. "Some information on the group insurance plans of the eight Reserve Banks having such plans was collected by the Conference of Presidents last year, and it appears that the plans vary materially in some important respects. The Board would like to have the Conference of Presidents Undertake a study, including obtaining the views of the Reserve Banks and their directors, with respect to a suitable policy for the operation of group insurance plans. This study should include also the question of whether it IS desirable to have the plans self-supporting or what Portion of the cost could be absorbed by a Bank with justification in the light of benefits already provided emPloyees. If practicable, it would appreciate having the report on the study available for discussion by the end of this year. "In adopting a plan of group insurance for employees of the Board it was understood that it would place no obligation on the Board to incur anything more than a expense in connection with its operation." Approved unanimously. Letter to The Johnson County National Bank and Trust Company, 444 11-e Village, Johnson County, Kansas, reading as follows: ' "The Board of Governors of the Federal Reserve Sytem 6/1/49 -3"has been officially advised by the Office of the Comptroller of the Currency that a certificate has been issued authorizing The Johnson County National Bank and Trust Company to change its location from 5004-5006 State Line, Johnson County, Kansas, to Prairie Village, Johnson County, Kansas, effective May 16, 1949. Accordingly, there is enclosed herewith a certificate showing that The Johnson County National Bank and Trust Company has authority to exercise fiduciary powers at its changed address." Approved mAnimously. Letter to Mr. Sheehan, Chief Examiner at the Federal Reserve 13Etrik Of New York, reading as follows: "Reference is made to your letter of May 24, 1949, submitting for consideration of the Board of Governors, a proposal of the 'Manufacturers and Traders Trust ComPallo, Buffalo, New York, to move its branch office now located at 12 West Main Street, Lancaster, New York, to a new location at 5386-5400 Broadway, Lancaster, New York. "It is understood that approval of the State banking authorities has been requested and is to be received prior to effecting the proposed change. "On the basis of the facts submitted, the Board con!,111's in your opinion that the proposed change of location doe8 not constitute the establishment of a branch within meaning of Section 9 of the Federal Reserve Act, and 'llerefore, the Board's approval is not required." Approved unanimously. Letter to Mr. Charles B. Galloway, Chairman of the Board, The D .virst National Bank of Clearwater, Clearwater, Florida, reading 4 follows; to the re49, "This refers to your letter of May 5, 19 deral Reserve BEink of Atlanta, requesting a determinaion as to the status of the Mickler Corporation, Tampa, rlorida, as a holding company affiliate. 6/1/49 -4- "From the information supplied, it appears that the Mickler Corporation is a family investment company; that it is a holding company affiliate of The First National Bank of Clearwater, Clearwater, Florida, by reason of the fact that it owns 2,120 of the 4,000 outstanding shares of stock of that bank; that it also owns 100 shares of stock Of the Chase National Bank and 400 shares of stock of the First Bank Stock Corporation, but does not own or control directly or indirectly, any other bank stock; and that it does not manage or control, directly or indirectly, any banking institution other than The First National Bank of Clearwater. "In view of these facts, the Board has determined that the Mickler Corporation is not engaged, directly or indirectly, as a business, in holding the stock of, or managing or controlling, banks, banking associations, savings banks, or trust companies, within the meaning of section 2(c) of the Banking Act of 1933 as amended; and, accordingly, the Mickler Corporation is not a holding company affiliate for any purposes other than those of section 23A of the Federal Reserve Act and does not need a voting permit from the Board of Governors in order to vote the bank stock which it owns. "If, however, the facts should at any time differ from those set out above to an extent which would indicate that the Mickler Corporation might be deemed to be so engaged, this matter should again be submitted to the Board. The Board reserves the right to make a further determination at any time on the basis of the then existing facts." Approved unanimously, for transmission through the Federal Reserve Bank of Atlanta. Letter to Mr. Peterson, Vice President of the Federal Reserve tam, Of St. Louis, reading as follows: 1949, "Reference is made to your letter of May 18, Oaktown, submitting the application of The Oaktown Bank, Indiana, for permission to exercise fiduciary powers. "In view of the Reserve Bank's recommendation and the information submitted, the Bcard of Governors of the Pederal Reserve System grants the applicant permission, Under the provisions of its condition ofmembership 6/1/49 _5- "numbered 1, to exercise the fiduciary powers now or hereafter authorized under the terms of its charter and the laws of the State of Indiana. "You are requested to advise The Oalttown Bank, Oaktown, Indiana, of the Board's action." Approved unanimously.
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