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A meeting of the Federal Reserve Board was held in the office of the Pederal Reserve Board on Thursday, June 11, 1925, at 10:40 a.m. PRESENT: Governor Crissinger Mr. Platt Mr. Miller Mr. James Mr. Cunningham Mr. Eddy, Secretary The minutes of the meetings of the Federal Reserve Board held on June 3rd and 9th were read and approved. Letter dated June 4th from the Deputy Chairman of the Federal Reserva Banlc of San Francisco, advising of the transfer of Mr. W. L. Partner from the Position of Managing Director of the Spokane Branch to that of Managing D irector of the Salt Late City Branch, effective July 1, 1925. Noted. Letter dated June 10th from the Chairman of the Federal Reserve Bank 02 Philadelphia, advising of the appointment of Mr. william H. Mutt, Deputy aovernor of the Bank,to serve as Acting Governor during the absence of Governor tiorris. Noted. Letter dated June 9th from the Chairman of the Federal Reserve Bank °f New York, requesting approval of the action of the Board of Directors of that bank in voting to grant a seven weeks' leave of absence with pay to Mr. SrlYder, Statistician. After discussion, Mx. Cunnin41am moved that the Board interpose no objection to the action of the directors of the Federal Reserve Bank of New York. Carried. 6/11/25 Letter dated June 4th from the Federal Reserve Agent at San Francisco, advising that the American Bank of San Francisco on May 29th opened the branch at 724 Grand Avenue, Oakland, which was arproved by the Board on February 3rd for establishment at Grand and Santa Clara Avenues. Noted. Letter dated June 8th from the Federal Reserve Agent at Boston, advising of an act passed by the General Assembly of the state of Connecticut that the provisions of the General Statutes of the State relating to reserves and cash balances of state banks and trust companies shall not apply to aAy bank or trust company which is a stockholder in any Federal Reserve bank. Noted. Letter dated June 1st from the President of the First National 13atlk of Fort Smith, Arkansas, transmitting and commenting on a letter addressed to that institution by the Farmers State Bank of Garvin, Okla., a member bank, complaining of the action of the Federal Reserve Bank of Dallas in collecting chec:cs drawn on that institution over the counter bY means of a representative in Garvin. After discussion, it was voted that the Federal Reserve Bank of Dallas be requested to furnish the Board with a statement of the facts .in the case. Letter dated June 4th from the Federal Reserve Agent at Minneapolis, 71sing that the directors of the First State Bank of Philipsburg,. Montana ad : 6/11/25 -3- On May 26th voted to rescind a resolution, filed with the Federal Reserve Agent on March 17, 1925, giving six months' notice of the bank's intention to withdraw from membership in the Federal aeserve System; the Federal veReserve Agent expressing the opinion that an investigation will conclusi prove that the bank is not in any condition to qualify as a member of the System and requesting the Board's instructions. Referred to the Law Committee. in Memorandum dated June 10th from Counsel, advising of a verdict the par clearance case of the Brookings State Bank of Brookings, Oregon, against the Federal Reserve Bank of San Francisco, awarding to plaintiff ,%.00 actual damages and 17,500 punitive damages; the memorandum also o stating that Counsel for the Federal Reserve Bank of San Francisc believes for the asthey have ample ground for appeal and has expressed a desire in sistance of Honorable Newton D. Baker, the Board's special Counsel, of the the preparation of the record to the Circuit Court and the handling case there. After discussion, Mr. Miller moved that a telegram be sent to the Governor of the Federal Reserve Bank of San Francisco, stating that the Board has been advised of the outcome of the case and would like to be informed of that further steps, if any, are to be taken by the Federal Reserve Bank of San Francisco in the matter and that the question of Mr. Baker's participating in an appeal be resubmitted to the Board upon receipt of further definite information from the Federal Reserve Bank. Carried. At this point, Mr. McIntosh entered the meeting. Memorandum dated May 19th from the ComMittee on Salaries, Ex- Chairmen Psnditures and Efficiency, submitting draft of a letter to the 6/11/25 of all Federal eserve banks advising that while the earnings of some Of the Federal Reserve banks will not be sufficient at the end of June to cover operating expenses, depreciation in the assets of the bank, Probable losses and dividend requirements, the Board, without deciding as a matter of principle that unearned dividends should regularly be paid out of surplus, will interpose no objection to the payment of the usual dividend on June 30th, and further, that the Board would like to have an expression of views as to the advisability of notifying member banks at the time of payment of the June dividend that hereafter dividends will be paid by the Federal Reserve banks only once a year, on December 31st. After discussion, it was voted that the question of Federal Reserve banks paying annual instead of semi-annual dividends should be made a tonic for consideration at the fall conference of Federal Reserve Agents. After further discussion, Er. Platt moved approval of the recommendation that while the earnings of some of the Federal Reserve banks will not be sufficient at the end of June to cover operating expenses, depreciation in the assets of the bank, probable losses, and dividend requirements, the Board, without deciding as a matter of principle that unearned dividends should regularly be paid out of surplus, interpose no objection to the payment of the usual dividend on June 30th. Er. Platt's motion being put by the Chair was carried, Lir. Mill or voting "no". Memorandum dated June 5th from the Chief of the Division of Bank O perations, submitting statements of expenditures by Federal Reserve 890 6/11/25 -5- for educational and welfare work, membership dues, donations, etc., for the month of April and for the four months' period ending April 30, 1925; the memorandum calling particular attention to a contri- bution of ‘)500 made by the Federal aeserve Bank of Kansas City to the "Lam 'Inforeement Association aeward Fund". After discussion, Mr. Cunnim7ham moved that the Board disapprove the contribution made by the Federal Reserve Bank of Kansas City. Cunningham's motion being put by the Chair ms carried, Messrs. Crissinger and Platt voting "no". Both the Governor and Li.. Platt stated that they voted against the notion because they did not think action should be taken without further information regarding the donation. Drafts of letters to all Federal Reserve Agents, prepared under the direction of the Committee on Salaries, Expenditures and Efficiency, °11 the subject of salaries and expenditures for statistical and analyti- cal Work during the six months ending December 31, 1925; the letters reglleetjag the Federal Reserve Agents (1) to forward to the Board a list Of the officers and employees whose time is charged in whole or in part to the statistical and analytical function and the salaries recommended i'or each; (2) to submit a budget for the statistical and analytical l'Iniction for the six months ending December 31, 1925; and (3) to advise the Board of any changes contemplated in the statistical and analytical 11°1'k and organization of the banks. Upon motion, the proposed letters were approved. 6/11/25 -6- Report of Committee on Salaries, Expenditures and Efficiency on the verbal request made by Governor Young of the Federal Reserve Bank Of Minneapolis at the meeting on June 9th, that the Board reconsider its previous action in disapproving increases of 1.,000 which were recommended for Deputy Governors Geery and Moore, and Assistant Deputy Governor Yaeger; the Committee stating that since it has made a practice Of bringing the question of salaries of officers at the Federal Heserve banks to the Board without recommendation, it suggests that this matter be taken up by the Board as a whole without recommendation from the Committee. After discussion, Er. Miller moved letter to Governor Young be prepared a that for submission to the Board, advising that the Board has considered informally the verbal request made by him on June 9th, that it reconsider its action in disapproving increases recommended for Deputy Governors Geery and Moore and Assistant Deputy Governor Yaeger and has decided that these increases will be given consideration at the end of the current year when the Board in regular course takes up the matter of salary changes, this being in accordance with the action of the 3oard in similar cases that have come up during the course of the year. Mr. Miller's motion being put by the chair was carried, Governor Crissinger voting "no". Mr. Platt stated that he voted for the motion, although he believed that at least two of the salaries dh0u1d be increased. C7) -7- 6/11/25 Draft of letter to the Chairman -of the Federal Reserve Bank of Atlanta, with regard to fee to be paid Mr. A. B. 2rawbridge for his services as Consulting Architect in connection with the proposed Birmingham building; the letter stating that the Board has ruled that Trowbridge's fee for the project shall be 42500, of which amount .1250 will be paid by the Board and a similar sum by the Federal Reserve sank of Atlanta. After discussion, Mr. Platt moved approval of the above letter. Mr. Platt's motion being put by the chair was carried, Mx. Miller not voting. 1'0TIS OP STANDITal. COMMTEES: 117] Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Approved. Dated, June 10th, aecommeniing approval of the application of Mr.. Palmer Campbell to serve at the same time as director and Vice President of the First National Bank, Hoboken, N. J. and as director and Vice President of the Hoboken 2rust Company, Hoboken, N.J. Approved. Dated June 10th, Recommending approval of the application of Mr. Edward F. Harris to serve at the same time as director and officer of the First National Bank of Manteca, Cal., and as director and officer of the Commercial and Savings Bank of Stockton, Cal. Approved. Dated, June 10th, Recommending approval of the application of Yr. Charles Hanford to serve at the same time as director Dated, June 10th, 11th, of the Highland National Bank and of the Broadway National Bank, both of Newburgh, N.Y. Approved. • e),4*--V.) V11/25 -8- (Cont'd) RZPORTS OF STANDING.Dated, June 10th, Recommend lug al-m royal of the application of Mr. Francis IT. Bain to serve at the same time as director of the Highland National Bank and. as dir.::ctor of the Broadway National Bank, both of Newburgh, N.Y. Approved. Dated, June 10th, Ilecommencling approval of the application of Mr. William T. Snider to serve at the same time as director of the Highland. National Bank and as director of the Broadway National Bank, both of Newburgh, Approved.. Dated, June 10th, Recommending approval of the application of Mr. Joseph H. Turl to serve at the same time as director of the Highla.nd,:.National Bank and as director of the Broadway National Bank, both of Newburf,,;1?., , N.Y. Approved. Dated, June 10th, liecommending approval of the application of Mr. DeWitt 2.IcKinstry to serve at the same time as director of the Higniand National Bank, and as director of the Broadway National Bank, both of Newburgh, N.Y. The meeting adjourned at one 0' ock. Secretary 4.91proved: ' Govern()
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