Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, June 11, 1934, Volume 21, Part 3

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174'9
A meeting
of the Executive Committee of the Federal Reserve Board
was
helu In Washington on
Monday, June 11, 1934, at 4:00 p.
PRESENT:

Mr. Black, Governor
Mr. Hamlin
Mr. Szymczak
Mr. Morrill, Secretary
Yr. Carpenter, Assistant Secretary
Martin, Assistant to the Governor

The Committee
considered and acted upon the following matters:
Letter to 1:r.
Stevens, Federal Reserve Agent at the Federal R
er'vl) Bank of
Chicago, reading as follows:

ONO

to , "Receipt is
acknowledged of Er. Young's letter of June 6, 1934,
re ether with its
inclosures, and, in accordance with hr. Young's
:
ETIllendation, the Federal Reserve Board approves the permanent
4,14),-ntments as
examiners and assistant examiners of the persons.
"40d th
erein whose temporary appointments as such had been previoussa4
1PProved by the
Board. It is assumed, of course, that Er. H. W.
Allr
7-T8 makinL regular
monthly payments on his indebtedness to the
Itiejt 'latienal Bank, Aurora, Illinois, in accordance with the arree'aue with the
conservator of that bank."

1.;

Approved.
Letter to
the board of directors of the "Farmers Bank
CNDally of
Lancaster", Lancaster, Pennsylvania, stating that,
tll con
ditions pre
cribed in the letter, and effective if and
b4lki dUlY a
uthorized to commence business by the Secretary

(4 the
tion

and Trust
subject to
when such
of Banking

Conlmonwealth of
the Board approves the bank's applicaan
Pennsylvia,

for

Inembership in the Federal Reserve System and for the appropriate
or
3t°ek in the
Federal Reserve Bank of Philadelphia.
Approved.

LGtter to the board of
directors of the "Peninsula Bank and Trust

'
4Dany”
'

bed

-°111 hurC, VirGinia, statinL, that, subject to the conditions
11 the
letter, the Board approves the bank's application for




I

n

-2laetberRh i
--413 in the Federal Reserve System and for the appropriate amount
ofet°

in the
Federal Reserve Bank of Richmond.
Approved.

e.1%\re

Letter to Cr. Newton,
Federal Reserve Agent at the Federal Re°Ilk of san
Francisco, reading as follows:

.

"Reference is made to Mr. Sargent's letter of Tune 1, 1934,
Beak !
ug copy of a letter dated May 24, 1934, from the Security
Itemb 04 Lyrtle Point,
Myrtle Point, uregon, which was admitted to
of t?rehiP on March 22, 1934, wherein the bank requests an extension
leatb illie in which it may
comply with the provisions of conditions of
ershiP numbered 17 and 18 which provide that:
17.
'Within three months from the date of its admission to
membership, such bank shall reduce all loans which are
in excess of the limits prescribed by the laws of the
tate of Oregon to amounts within such limits.

18.

Within three months from date of its admission to momberehip,
such bank shall dispose of any loans which may
be .
secured in whole or in part by its own stock or obtain the substitution of other adequate security for
each such loan.

1,0111. te.141,VieW of
all the circumstances and the recommendation of
e, the Board
1934
grants an extension of time to September 22,
the
within which the
_ecurity Bank of Myrtle Point may comply with
that °Aditions of
membership numbered 17 and 18, and it is requested
YoU
advise the bank accordingly."
Approved.
Lett°r to
The Chase Bank, New York, New York, reading as follows:
Ilre advised that the cost of the examination of the New
%Ire B.--Lee of the Chase Bank, made by an examiner of the Federal Re"yellrd as of the
close of business December 4, 1933, was v110.18.
, are recuested to
)3e.nk 0.pc?
deposit this amount in the Federal Reserve
.
ederal
: York,
ork, with
instructions to that bank to credit it to the
toardo Reserve Bank
of Ilichmond for the account of the Federal Reserve

Approved.

Letter

to Lir.




Peyton, Federal Reserve Agent at the Federal Reserve

175/
Via/34

-3Balik of L
'inneapolis, reading as follows:
t, "Reference is made to
your letter of May 28, 1934, transmitting
,
ue aPPlication of the 'Commercial Trust
and Savinr,s Bank', Mitchell,
'°uth Dakota, for
permission to exercise trust powers, and to the
Pl'svlous correspondence in connection therewith.
fo "It is noted
that this institution desires trust powers primariy
hal
'the purpose of relieving itself of criticism
of its method of
p,119-ing real estate mortgages in which it acts as
trustee; that you
i;e.1 that this
criticism can be averted by the use of individual
,
ollsteeships Instead
of having the bank act in that capacity; that
"
a 11 do not regard
the officials of the bank as competent to conduct
1Zust business, and
that you do not believe that the volume of
be IlleSS available would justify a
trust department or that it would
a the benefit
of the bank or the community to actually develop
rust department in this institution.
acti "In accordance with your
recommendation, the Board will take no
paet° in regard to the unauthorized exercise of trust powers in the
eY the
applicant bank but will not authorize it to exercise such
this time. You are requested, therefore, to advise the
tZrcial Trust and
tivinis Bank, Mitchell, South Dakota, that the
denied its application.
the _"In this
connection, it is assumed that you will follow up with
1-11Diect bank
S
the question of handling its real estate mortgages
h
lbactlitalo Manner
as to avoid any further criticism relative to the
rized exercise of trust functions."
Approved.
Letter to Lir.
O'Connor, Comptroller of the Currency, reading as

Bottra"In
accordance with your recommendation, the Federal Reserve
Proves a reduction in the common capital stock of 'The
t200 n7,'es latienal Bank of Burlington', Burlington, Hew Jersey, from
the r0 to 1.0
0,000, pursuant to an amended plan which provides that
to beallk-is caoital
shall be increased by cj25,000 of preferred stock
that trld to
the Reconstruction Finance Corporation and others, and
altlott %released
capital shall be used to eliminate a corresponding
ktie
o; Unsatisfactory assets, all as set forth in your letter of
1934.“
Approved.
Letter 4.
u

. O'Connor, Comptroller af the Currency, reading as

vtill a
ce°rdance with Acting Comptroller Awalt's recommendation,




1'752

6/11/34

-4-

t:the
Federal Reserve Board approves a reduction in the commoncapial stock of
the 'Lyndora National Bank', Lyndora, Pennsylvania,
brcYm ,g00,000 to
T75,000, pursuant to a plan which provides that
Ithe
capital shall be increased by ,25,000 of preferred stock
to
L.0 be sold
locally, and that the released capital, together with a
c)rtien of the
bank's surplus and undivided profits accounts, Shall
be used
in eliminating losses and
securities depreciation, all as
set
forth in Mr. Awalt's memorandum of
May 28, 1934."
Approved.
rollows:

Letter to
Mr. O'Connor, Comptroller of the Currency, reading as

4140,"In accordance with ;be recommendation of
Acting Comptrol2er
ea
the Federal ieserve Board approves a reduction in the common
1—Pital stock of 'The
National Bank of laddlosborought, Middles1Z0,
Kentucky, from 100,000 to „,50,000, pursuant to a plan which
preiidee that the
bank's capital shall be increased by 6.5,000 of
cerrerred stock to
be sold to local interests, and that the released
114ttal3 toether with a
portion of the bank's surplus, shall be
zizto elim
inate substandard assets and depreciation in lower grade
1934 ities, all as set forth in fir. ,,wait's memorandum of May 28,

Approved.
t011oivs

Letter 4.
Los Mr. O'Connor, Comptroller of the Currency, reading as

the

acoordance with ActinE Comptroller Awalt's
recomndati,l
;:'erel ieserve Board
approves a reduction in the common capi1"lea,
-- T
: e'r 'The First National Bank of :..:ount Pleasant', lomit
vitiel-7"'.9
from '50,000 to :A0,000, pursuant to a plan
cf
that the ba
Tennessee,
'
nk's capital shall be increased by ci10,000
tioll—"erred stock to be sold to the ReconstructirJa Finance Corporathat the released
capital shall be used to eliminat?_a
A sP°11din.e amount of unsatisfactory assets, all as set fortn in
-.Walt's letter
of Lay 25, 1934."
Approved.
Letter 4.
,
1 0 Mr.

O'Connor, Comptroller of the Currency, reading as

ard"I
all accordance
with your recommendation, the Federal Reserve
13P1
'
°ves a reduction in the common capital stock of 'The




1753

6/11/34
t

'
l ernlers National Bank of Knoxville',
Knoxville, Illinois, from
)u00 to •30,000,
pursuant to a plan which provides that the
b nks capital
j'
shall be increased by $30,000 of preferred stock
be sold to the
Reconstruction Finance Corporation, and that
the
ireleased capital, together with part of the surplus
and un11.1ved
profits, shall be used to eliminate unsatisfactory assets
4
amaunt of approximately :60,000, all as set forth in
your
illeill°ranclum of June 1, 1934."
!
.6()

Approved.
Letter to 1,:r.
O'Connor, Comptller of the Currency, reading
Eta roilows:

the ,,"In
accordance with Acting Comptroller Awalt's recommendation,
tea -0ederal
Reserve Board approves a reduction in the common capiIlli,!t°ek Of 'The First National Bank of Litchfield', Litchfield
ta
is, from ci;75,000 to
$50,000, pursuant to a plan which provides
Or
a1D,,ne bank's capital shall be increased by the
sale of 25,000
that--Z4erred stock to the Reconstruction Finance Corporation and
amoll 'he released
capital shall be used to eliminate a corresponding
na.,„"
..,
of uns
atisfactory assets, all as set forth in irr. Awalt's
u
-4r44
dum of May 24, 1934.
as to"Il this connection,
it appears that there may be some doubt
yo4r- 'dile Population of
Litchfield. It is assumed, however, that
Pirst°1
:
fiee has considered
the legal capital requirements of the
rnia142.4iitional Bank
of Litchfield and will not permit the bank to
tio4-2-te capital
(4 a national below the amount required by law for the formabanking association in such city."
Approved.
Letter
r011owe:

tc)Mr. O'Connor, Comptroller
of the Currency, reading as

NIWIn

accordance with your recommendation, the Federal Reserve
First ,
1, 151
,
311°ves a
reduction in the common capital stock of 'The_
to
"auional Bank of
Midland', Midland, South Dakota, from ,25,0
i02
ts)!nb) pursuant
to
a
plan
which
bank's
provides
that
the
cap
t
the ,V1
1
be i
ncreased by :30,000 of preferred stock to be sold ?
!,1 toZ1.1!truction 2inance'
Corporation, and that the released capi-,zelea;-vuer with :;
3,750, which is to be raised locally, and a s
ci
to eli
MoUnt of the
4a net
surplus
shall
be
use
profits
and
undivided
li!ol:ttle,
,?nsatisfactory assets of approximately
716.52, all
Your mem.orandum of June 1, 1934."




Approved.

1754
6/11/34
Letter to Mr. O'Connor, Comptroller of
the Currency, reading as

rahlows:
"In accordance with Acting Comptroller Awalt's
recommendation,
the
str2ederal Reserve Board approves a reduction in the common capital
C)t 'The Coleridge
National Bank', Coleridge, Nebraska, from
o
'
°°° to 20,000, pursuant to a plan which provides that the bank's
toll tal shall be
increased by 30,000 of preferred stock to be sold
ca the
Reconstruction Finance Corporation, and that the released
toPial, together with a
local contribution of ??7,500, shall be used
raerae-411thaate substandwad assets, all as set forth in LA% Awalt's
oraadum of Nay 25,
1934.
to "In considering the plan under which the proposed reduction is
los" effected, it
was noted that the aggregate amount of estimated
tr and
to s
depreciation unprovided for will impair the bank's capital
413 "e extent of approximately
c8,000, in addition to which there will
alid°
,relaain in the bank a large amount of assets classified as slow
the'
113/Ibt1'111 by your examiner. It is assumed, however, that you have
so se conditions in
mind and that whenever it becomes feasible to do
Yeu will obtain such further corrections as may be practicable."

Z

Approved.
Letter to
'
11:glows:

O'Connor, Comptroller of the Currency, reading as

Rece iptis
acknowledged of a letter dated May 28, 1934 frT
ezrai
Gout;h, Deputy Comptroller, advising that the report of
t0
nstion of the First National Bank of Seattle, Seattle, Washingas at February 21, 1934 contains the followins comment:
First National Company voted 17,261 shares of
the
J-411 benk's stock, at the annual shareholders' meeting
11""17 9) 1934. No voting permit on file.'
shero:'nformation received from your office indicates that 292,040
licted-n°f the 400,000 outstanding,shares of the subject bank were
the annual meeting of shareholders held on Tanuary 9, 1934.
lees .t1:e
L- number of
shares voted by the lirst National Company was
col4ps;7,
11 50 Per centum of the number of shares voted and since the
electi4 18 a°t reported to otherwise control, in any manner, the
13ear j
,
114.°1
' a Majority of the directors of the bank, it does not apthe First National Company is a holding company affiliate
;
:
the
1011, 2 "'rst National Bank
of Seattle, within the definition in Sec(e) 01' the Banking Act of 1933. Accordingly, the First National
441 w°111d not require a permit under the provisions of Section
ec)ntrol.. sed Statutes, in order legally to vote the shares owned or
-L-Led of
the subject bank."




Approved.

,
6/11/34
-7Letter to bir. Peyton, Federal Reserve Agent at the
Federal ReServe Bank
of Minneapolis, reading
as follows:
"This refers to your letters of May 1, 1934, and May 21,
1934,
Zhich are in
reply to the Board's letter of April 24, 1934, regardhe report of
examination of the Federal Reserve Bank of Minne"Pclis as of Tanuary 20,
1934.
,
"It is noted
that all leaves of absence in excess of thirty
uaYs because of
illness are approved by your Executive Committee,
et(1 are placed in the minutes of the Committee which are read and
:
11;Zdmz%Egt.
s a whole by the board of directors of the bank at their
You request to be advised whether such procedure is
accoz,dance with the Board's wishes or whether each leave of abt,
Ilee ih excess of thirty days because of
illness should be submitted
the board of
directors for action as a separate item.
ix
The Board feels that
the granting of such leaves is of sufficient
bot tanes to warrant the separate and individual consideration of the
Bo:" Cq. directors of the
bank, and the instructions contained in the
wo;711d e s letter of
December 5, 1932 (X-7303) contemplated that this
ezee
!be d°ne. It is requested therefore that leaves of absence in
th,
473f,thirty days because of illness be treated in accordance with
boards letter of December 3,
1932.
Iteati:The Board
has noted your comments relative to the other matters
ned in its
letter of April 24, 1934."
Approved.
?Ark or Letterto I r. Newton, Federal Reserve Agent at the Federal Reserve

6jranciso, reading as follows:
ekrainnReference is made to Mr. Sargent's letter of April 28, 1934, rehave
proper manner in which capital accounts of banks which
Corixo,°1u. caPital notes or debentures to the Reconstruction Finance
11:a‘ Licn should be reflected upon the books of such banks. It is
1.4 viat°°d that considerable confusion has arisen among member banks
1.e,w e states
Of
supervising authorities
. 1. *0 State 1, Washington and Utah, where
banks to maintain the integrity of capital accounts as
have
!
3 th 14 the articles of association of such banks, and that you
811ch 2
°4 requested to suggest the proper method of bookkeeping in
k;ases.
nwhi
44a4e ,
le eaPital notes or debentures issued to the Reconstruction
1Toration are subordinate to the bank's liabilities to de)es1t
arld ether creditors, they nevertheless represent an actual
r%1301,t;'/r and should be shown as such on the bank's books and in all
ecoraor
:and Published
statements. Likewise, the par value of the
3tQck should be clearly shown on the bank's books and in all




1756
6/11/4
3:uPorts and published statem
ents. Moreover, as indicated in the
,
13
,(3erd i s letter B-966 of March 17, 19Y, a State bank member which
"as issued
capital notes or debentures and whose capital stock con?ists of
comnon stock should not show any surplus or undivided profin condition
reports on Form 105 so long as the net book value
of capital notes or
debentures and capital stock is less than the
8€C,regate of (1) the anount at which
the capital notes or debentures
t1.
3 3t be retired or to which the holder thereo
s
f are entitled in case
liquidation, and (2) the par value of the common
stock.
"In the case cited
'.3argen
by
L:r.
the
t,
bank
common stock
has
741
0 11 a par
value of )60,000 and has sold capital debentures amountinz
cli CZ0,000 to the Recons
truction 1,1nance Corporation, a total of
in4,000, while the book value of its assets amoun-Js to only ,101,0
00
:
c excess of its liabilities exclusive of liabilities on accoun
of
t
ilkPital
debentures sold to the Reconstruction 2inance Corporation and
4011tbilities to stockholders. In the circumstances, if the bank does
the reduce the par value of its common stock in order to provide for
cal,i elimination of losses, it will have tD show an impairment in its
tal account, if its books and reports are to correctly reflect
condition.
In that event the bank's books should show the par
ca
of the common stock outsta
nding, the retirable value of the
c2alta1
debentures issued to the Reconstruction Anance (Jorporation,
youze deficit in its undivided profits account. In this connection,
tor la,ttention is directed to the Danner in which provision is made
Inerah
7ing the capital accounts of State member banks in the Board's
to 4
'
1 bank condition report, Form 105, and it will be satisfactory
publ
:
e Board if member banks will show their capital accounts in
statanen
ts in accordance with this form.
44d d:In
reports of earnings and dividends on Form 107, all losses
subdi'Preciation charged off should be included in the appropriate
,egardless of the source of the funds used
( sr
ttlEa.3 71:1110
t
r(
ri
:i
and the 'Net addition to (or deduction
1 sh0
/ Profits for current period' as shown against item 7 in Section
erediltild be carried forward into item 9 of Sectio 2. Only such
n
port e to undivided profit
s should be shown in Section 2 of the retie pas are specifically enumerated under item 10 and, accordingly,
e_eeds of capital notes or debentures sold by the bank should
40t,
slic aa'reductions in capital stock not repaid to shareholders
114divi
'
d be shown as crecdts to undivided profits. If the total of
credito.."' profits at the beginning of the period (item 8) plus net
is 40J to undivided
profits during the period (item 10 minus item 12)
2seti0 eUfficient
to meet any loss carried forward into item 9 of
2
itet
mtresulting deficit should be shown in red against item
In Section 4 should be shown in agreement with the
tio
reported
a st item 13 in Section 2. In reports of condi4 04 3
deficit in undivided profits account should,
' orm 105)
cl-cted ftE/ted -n the Board's letter B-966 of March 17, 1934, be deIrttlue'
rem the book
value of surplus and/or the par or retirable
Or
cgoital stock and capital notes or debentures."

:




Approved.

1_757

Letter to ill.. :T. Penrose Hallowell, Boston,
Massachusetts, reading
Ets r°11ows:
Your "Receipt is acknowledged of your letter of May 9, 1934, regarding
application under Section 32 of the
Banking Act of 1933 for a
P
trmit to serve at
the
saris
time
as
a
director
of The Merchants Naa odnal Bank
of Boston, and as an officer of Lee Higginson Corporation,
ealer in
securities, both of Boston, Massachusetts.
state
in your letter that you are anxious to assure yourself
th t :Y°u
float. the
unfavorable action of the Board upon your application was
81 induced by an impression
that you were disqualified under Section
Of the
Clayton Act.
matt "The Position
taken by the Board in its letter to you in this
r was the same as that taken with respect to other applications
to wl,lich similar circumstances were present and was adopted in order
helag.Lve effect to
the purposes which the Board believes that Congress
the!
II mind in enacting Section 32. As stated in its previous letter,
Xdel'al Reserve Board believes that it was the purpose of Congress
ser4Zacting the section to terminate relationships of the types de.7Lled
therein between member banks and dealers in securities; and,
i the policy as thus declared by Congress in the law, it is
the ,
,
1017 cr
authvractice of the Board in cases of this kind not to issue permits
:
tio
14ing relationships which fall within the intent of the prohibiy011
;
°f Section 32. On the basis of the information before the Board,
both illterlockina relationship appears to be one which falls within
tor tit
,he literal terms of the statute and the purpose thereof. It is
ille,2113 reason that the Board is unable to find that it would not be
"uiPatible with the public interest to grant your application.
111)04 he Board's position with regard to your application is based
404 :4e provisions of Section 32 of the Banking Act of 1933 and not
to :
sc he Provisions of Section BA of the Clayton Act. The reference
Doae-,T°11 SA in the Board's previous letter was merely for the purinforming you concerning another provision which might or
not have
had a bearing on your service to the two institutions.
"Irc)ur letter of 1:ay 9, 1934, states no facts which, in the judgtoard°rthe Board, would justify an exception in your case and the
therefore, denies your application. It will be appreciated if
or to
advise the Federal Reserve Agent at the Federal Reserve Bank
Drovie
:
°n of the action which you take in order to comply with the
8“3113 of Section 32."
Approved.
1'01,

Lotter
to 17.r. Albert

Keller, St. Louis, Missouri, reading as

',The
Federal Reserve Board has given consideration to your




6/11/34

-10a
:toPPlication under Section 32 of the Banking Act of 1933 for a permit
serve at the same time as a director of the
Mercantile-Commerce
ik and Trust Company, as
a director of Liercantile-Commerce National
,
atIlk in St. Louis, and as manager of Paul Brown and Company, all of
Louis, Missouri.
t, "It appears from
the information contained in your application
ki
that
the business of
Paul Brown and Company is confined to the purchase
• sale of securities in the open mrket as brokers on the order and
02r,the
account of others. The Board has concluded that the provisions
eectien 32 are not applicable to such a business, and for
that
•
ej
is
.°11110 permit is necessary to bring your service to the three inei'vutions named in your application into conformity with the provions of
Section 32.
,
',However, section 81, of the Clayton Act makes it unlawful for
tdirector, officer, or employee of any bank, banking association,,
Statrust e°mPany, organized or operating under the laws of the United
or es to
serve at the same time as a director, officer, or employee
of algY corporation (other
than a mutual savings bank) or as a member
otha partnership
which makes loans secured by stock or bond collateral,
the
"than to its own subsidiaries. The Board is of the opinion that
withe
ia,llrYinE of margin accounts involves the making of such loans
the meaningof this section, and it appears that the carrying
or
or 7rgin accounts constitutes a substantial portion of the business
Ella' Brown and
Company.
olayt"The
Federal Reserve Board is authorized by Section 8 of the
thka °LAct to issue pemnits covering relationships between not more
seoti""ree banking institutions which are otherwise prohibited by
with n 6 or ection 8A, if such relationships are not incompatible
PUblic interest. However, it is not the Board's practice to
ilast7,Permit5 authorizing relationships between national banks and
the ,61:Itions carrying margin accounts because it appears that one of
shit:r14c1Pal purposes of Section 8A was to terminate such relation•
!!nd that the
issuance of permits authorizing such relationships
h, ue incompatible with the public interest as declared by the
-.‘4r .
Coese

r

,7

• c"r14 the circumstances, irrespective of whether or not Paul Brown
B, itc3d.?-4Y is a banking institution of a kind referred to in Section
colq "J-1-1 be necessary for you to discontinue your services with that
c)rder
Or with the Mercantile-Commerce National Bank in St. Louis in
ilowev,
„
"° conform with
the provisions of Section 8A of the Clayton Act.
C°11tIa;') Y°11r service to Paul Brown and Company and to the Nercantile13811k and Trust Company is not prohibited by Section 8A beIllse at,
'..
bank is not organized or operating under the laws of the
racier
Q within the 'leaning of that section. Please advise the
a&t10
:
1 1,_teserve
Agent at the Federal Reserve 1znk of St. Louis of the
waich you
Dake in order to comply with the law."
Approved.

Lett°,
s to




the following applicants for permits under section 32

.1raw
(
,
16,1

6/1a/34
'
ct the

—11—

BankinE Act of 1933; each
letter stating that it appears that the

(13-er in s
ecuriAes involved in the application is engaged primarily in
the bu
siness of
purchasing) selling, or negotiating securities within the
ineetliille of section
32, and that the relationship covered by the applicat1011 is
within the class which that
section was designed to terminate, and
that,
acco
rdingly, the Board is unable to find that it would not be incotPatible with
the public interest as declared by the Congress to grant
aP141aat1
:
11.e
°n) althouch in the event the applicant desires to submit
4urther
facts or
arguments in support of the application with regard to
the
westien whether
the dealer in securities is engaged primarily in the
bklaitess of
Q14,

Purchasing, selling, or negotiating securities, or any other

the Beard is
prepared to give them careful consideration:
%11;dward L.
Bigelow, for permission to serve at the same
a 10 as a director of the
State Street Trust Gampany and as
45,ner of Tucker, Anthony & Co., both of Boston, Liassachu%Y°,
1111 R. Chapin, for permission to serve at the same time
Ze
se to
tr
Ei of The NBoston,
Rockland Bank of Boston,
) and as syndicate manager of Kidder, Peabody &
4PanY, Boston,
Lassachusetts.
Mr, /fr
sejale trIsrick A. ,
'Angleton, for permission to serve at the
C°4IDAZme as an officer and director of the Boulevard Trust
40;i-J) 1..00
kline, Massachusetts, and as =lager of the
(
t
)Tco of Tridder, Peabody and Company, Boston,
i :t
14aesat%
tize'''4win S. Webster,
Jr., for permission to serve at the same
Dalt4cts a director of The New England Trust Company and as a
r
chlla4tsof
!Udder, Peabody & Company, both of Boston, NassaMr. sam
4s a cli:s LI.
Johnston, for permission to serve at the same time
sald a,
--ector of the Liberty National Dank, Washington, D. C.,
.,
a Partner
of James Li. Johnston & Co., Washington, D. C.




'il774r6
()

6/4/34
-12T4 letter to
11141in

Mr. Chapin stated that it appears that the carrying of

accounts constitutes a substantial portion of the business of
the

deEller in securities
involved in his application, that, in the circumstances,
irrespective of whether or not the dealer in securities is a
13114k/42 institution of a
kind referred to in section 8 of the Clayton
it will be
necessary for Yr. Chapin to discontinue his services
"1°Ile or the
other of the.institutions named in his application in
01,4 ,
1
t° ec'nfolim with the provisions of section 8A of
the Clayton Act,
th t
a it is requested that he advise the Federal
Reserve Agent at the
Nero.
Reserve Bank of Boston of the action which he takes in order
to
eora
MY With
the law.
Approved.
14e; ot

LetterS to
applicants for permits under the Clayton Act, advis-

aPProval of their
applications as follows:
kr P.
r s holhrook, for
permission to serve at the same time
director of The First National Bank of Paintsville,
La,fl_tsville, Kentucky, and as a director and officer of The
Blaine) Blaine, Kentucky.
Mr. L.
%az . -r;
c 'i rPreys, for permission to serve at the sam time
of the Citizens National Bank of Elkins, Elkins,
Rairl,finia, and as a director and officer of The Bank of
Rainelle, West Virginia.
Mr. w.
P. Paxton, for permission to serve at the same time
pacilacirector and officer of the Citizens Savings Bank,
Or the4; .I entucky,
and as a director of the Louisville branch
'eueral Reserve Bank of St. Louis, Louisville, Kentucky.
Mr. Di
Scott, for permission to serve at the same
dulbert
time
Qklah'41reetor and officer of The First State Bank,
,
8a41 °Ta, and as
a director and officer of The First National
1
Tahlequah, Tahlequah, Oklahana.

%8




Approved.




Thereupon the meeting adjourned.