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17E35
A Meeting of the
ederal
eserve Board was held in Aishington on
1111118daY3 June 14, 1934, at 10:40 a.
m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Black, Governor
Hamlin
Miller
James
_homes
Morrill, Secretary
Carpenter, Assistant Secretary
Eartin, Assistant to the Governor
iyatt, General Uounsel
raulger, uhief of the Division
of Examinations
Mr. Leonard, Federal Reserve Examiner
ilingfield, Assistant 'Jounsel
Mr.
Mr.
Yr.
Yr.
ET.
G
overnor Black referred to the discussions at recent meetings of
te
Pederal
Reserve Board with regard to the City Bank Tamers Trust
C°14PtulY, Nev
York, New York, and he stated that an application for menberesilip in
the Federal Reserve System
has been received from the company,
1111leh had
been reviewed
by the Division of Examinations and a memorandum
1)413ared
thereon by the division under date of June 12, 1934, copies of
had
been submitted
to all members of the Board prior to this meet4tted,
12-so called attention to, and there was read, a memorandum
Ulle 13 from 1,:r. Wingfield, Assistant Counsel, in connection with
41)11c4tio,,,
After a discussion of the questions presented
ia Mr. Wingfield's memorandum, Mr. Thomas moved
that the application of the City Bank Farmers Trust
C°171PanY for membership in the Federal Reserve System,
4aI1d for the appropriate amount of stock in the Federal Reserve fank of New York, be approved, subject
to the
conditions recommended by the Division of
xelalnations and the Legal Division.
Carried, Mr. James voting "no".
"1,,4
The
'
J-11Ute3 of the meetings of the Federal Reserve Board held on
1786
6/14/34
-229) and 31, and June 1, 1934, were
approved.
The minutes of the meetings of the
Executive Committee of the
Federal
Reserve Board held on Tune 4, and 6, 1934, were approved and the
letiots
recorded therein were ratified unanimously.
The Board then
considered and acted upon the following matters:
Federal.
Or
Telegram dated June 13, 1934, from Mr. Curtiss, Chairman of the
'Iv-serve Bank of Boston, advising that, at a meeting
of the board
-.Lrectors on that date, no
change was made in the bank's existing
See
of rates of discount and purchase.
'Nithout objection, noted with approval.
Renewal bond, in the amount of 0_00,000, executed on Tune 1,
1934,
bY /fir. a.
s. Wood
as Federal Reserve Agent at the Federal Reserve Jqink of
2t, Louis.
Approved.
Telegram dated June 13, 1934, approved by five
members of the
Boazy.A
to
;\I• L,ase, Federal Reserve Agent at the Federal
Reserve Bank of
yove.
reading as follows:
assit
:
swerinr: your letter June 8, 1934 relating to temporary
xxatruient someone
from your bank to assist in Boards Division of
ter
,,,,i,t!tions$ Board appreciates your spirit of cooperation in.mat1:
7t
will be glad to have you send John
H. Hartley to WashinY isttearlicst available date with understanding, as outlined in
aecsa "er of June seventh, that Board will reimburse bank for
his
174ilesrY t
raveling expenses, salary and six dollars per dien
in Washington. Kindly advise when he will report."
Approved.
Tel
dated June 13, 1934, approved by five members of the
crt 14
to V.r.
Peyton, Federal
Agent at the Federal Peserve Bank
Rese-rve
444.11cai3, reeding
as follows:
1787
6/14/34
-3AX1Swerinr your letter Tune 9, 1934 relating to temporary
neignment someone from your bank to assist in Boards Division
aminations, Board appreciates your spirit of cooperation
raatter and will be glad to have you send
Otis R. Preston to
c;anington at earliest available date with
understanding, as
b"lined in my letter of June seventh, that Board
will reimburse
!
Ilk for his necessary zravelinc; expenses,
salary and six dollars
Per diem
while in Washington. Kindly advise when he will report."
AiJproved.
Telegram dated June 13, 1934, approved by five
members of the
or
A
' to Mr- Newton, Federal Reserve
A.;ent at the Federal Reserve Bank
44ta, reading as
follows:
aeai "Answering
your letter June 9, 1934 relating to temporary
4.glImant
someone from your bank to assist in Boards Division
erainations, Board
appreciates your spirit of cooperation
atter. and will
be glad to have you send V. K. Bowman to
outT-ngton at
earliest nvailable date with understanding, as
bellIci2ed in mY letter of June seventh, that Board will
reimburse
per
r his neceJsary traveling expenses, salary and six dollars
diem while
in Washington. Kindly advise when he will report."
or
4:
Approved.
Lettor to
Lr. Walsh, Federal Reserve Agent at the Federal Reserve
cr Da,.
e.g,
with regard to the steps which should be taken to correct
4tters
commented on
TN
in the report of examination of the lellas Bank &
„Eit 00
ralpe)aY, Dallas,
'cexas, as of January 12, 1934.
Approved.
tottl,la
441,
TeleEram
t°
dated June 13, 1934, approved by five members of the
Ilewton, Federal
Reserve Agent at the Federal Reserve BPI* of
readin, as follows:
R
ilt44 Boe -arEent's telegram June 8 re State Security Bank, Brigham,
lirttip,a-Et
tr
i dt e Wire June 7 did not contemplate requirement for immediate
,!PitaiQ
:
°A Of capital impairment in the case of banks which have sold
Whi:tee or debentures to the Reconstruction Finance Corporation
-- have an adequate amount of net sound capital in relation to
1788
6/14/34
ab11itie5.
7tli
hat
As a matter of sound banking, however, Board feels
the management of such banks should arrange as soon as practicable to eliminate the impairment
of capital stock in the manner
.ctonsidered most advisable by the bank and the supervisory authoriies in the light of all of the circumstances."
Approved.
to
Letter dated June 13, 1934, approved by six members of the
Board,
*. Curtiss, Federal Reserve Agent at the Federal Reserve Bank of
ostob.
reading as follows:
ipr
"Reference is made to your letter of May 18, 1924, and to the
111,,evicals correspondence, in regard to the
application of The Trades:714's National
Bank
of
New
haven,
New
Haven,
Connecticut, for per'
4183ion to
exercise fiduciary powers.
re
"In view of
your statement that you do not feel justified in
tlirIllend in8* the approval of the application at this time, in which
1,1 ;,cfrice of the Comptroller of the
Currency concurs, the Board
4-1. take
no further action in the premises.
the "The Board
will be pleased to consider a new application from
war sUbiect bank whenever its
condition is such that you would feel
ranted in
submitting it with a favorable recommendation."
Approved.
to /4x.. Letter dated June 13, 1934, approved by six members of the Board,
0,0
(3411°r, Comptroller of the Currency, reading as follows:
eiPt is acknowledged of your memorandum of June 6, 1934,
with
'The 7..cforence to the proposed reduction in common capital stock of
u2
5:,a3rriesville National Bank', iaynesville, Ohio, from 400,000 to
arid the sale of 07,500 of preferred stock to the
Reconstruc1934.1'illance
Corporation, which was approved by the Board on Larch
Nn e,ei You
, ad1;r1se that the Reconstruction Finance Corporation has
n
4
the b
('0 Purchase but
$25,000 of preferred stock, and recommend that
or 2.T1 be Permitted to efect a reduction and increase in capital
"1\-00 each, instead of the larger amount originally contemplated.
Dl'eviol accordance with your recommendation, the Board amends its
C,;2b,00ne a pproval to provide for a reduction in common capital of
stllact , and the
sale of ,:25,000 of preferred stock to the Reconthf:tt tb°4 Finance Corporation and/or others, with the understanding
":
1 other
provisions of the proposed plan remain unchanged.
14stit
litio
, of the obviously over-capitalized condition of this
--, and the aggregate of criticized assets as classified by
6/14/34
-5Y°ur examiner, the Board would be inclined to regard favorably a
-Larger reduction in the common
capital stock for the purpose of
eliminating undesirable assets than is now contemplated, without
uiringa corresponding increase in the amount of preferred
'boc to be issued, in the event that
you determine such a procedure to be desirable and practicable."
fn
Approved.
Letter dated June 13, 1934, approved by five members of the
' to !1‘. O'Connor, Comptroller of the Currency, reading as follows:
to
"In accordance with your recommendation, the Federal Aeserve
aPproves a reduction in the common capital stock of 'The
st
National Bank of Lemont', Lemont, Illinois, from ';50,000 to
.j;°°01 pursuant to a plan which provides that the bank's capital
7-L1 be
increased by 25,000 of preferred stock to be sold to the
Ii"
toconstruction Finance Corporation, and that the released capital,
itrather with such portion of the bank's surplus and undivided profres 8 Your office may require,
shall be used to eliminate a cary0
,
2
13 nding amount of unsatisfactory assets, all as set forth in
m orandum
of June 5, 1934."
T
Approved.
toara,
Let
ter dated June 13, 1934, approved by five members of the
to
O'Connor, Comptroller of the Currency, reading as follows:
80ara
accordance with your recommendation., the Federal Reserve
Pirat 'TP.Proves a reduction in the common capital stock of 'The
rroz 'l°nal Bank of 6tevens Point', Stevens oint, 'aisconsin,
C"0)000 to ,A0,000, pursuant to a plan which provides that
to b
capital shall be increased by „120,000 of preferred stock
rele
:3°1d to the
Reconstruction Finance Corporation, and that the
ttlacliv
!
-. ed c aPital, together with a portion of the bank's surplus and
baorea4d?d
profits accounts, and ,:20,000 to be made available by
to el.s116 the
Carrying value of the bnnking house, shall be used
;16.1_ntate
unsatisfactory assets in the amount of approximately
all as set forth in your memorandum of June 2, 1934.
cotz:
)1
co
ca nsidering the plan under which the proposed reduction in
Pital is to be effected, it has been noted that the active
:
ettlz1
171t °f the applicant bank was severely criticized by your
teie
r, and that
the Federal Reserve Agent at Chicago, in his
tIlat
re canmendinp approval of the capital reduction, stated
1111(1 st
:'Management problem should be made satisfactory.' It is
lr`
"Yol j°, that this feature of the case is receiving the attention
Approved.
1790
-6Letter dated June 12, 1934, approved by six members of the
to pa..
O'Connor, Comptroller of the Currency, reading as follows:
"In accordance with your recommendation, the
Federal Reserve
Beal-0
approves a reduction in the common capital stock of 'The
rst
National Bank of Carmi', Canal, Illinois, from 400,000 to
pursuant to a plan which provides that the bank's capital
11 be
increased by ,1 ;50,000 of preferred stock to be sold to the
ruction Finance Corporation, and that the released capital
'
i4J-1 be used to eliminate a corresponding amount 01. unsatisfactory
asaetR all
as set forth in your memorandum of June 7, 1934."
I
Approved.
to
Letter dated June 13, 1934, approved by six
members of the Board,
t
C°nnor, Comptroller of the Currency, reading as follows:
rean,:Receipt is acknowledged of your memorandum of June 2,
1934, in
01,7'to the proposed reduction in capital of 'The First National
Bank
4h,,eLe ca t , ia.seca ninnesota, which was approved by the Board on
--4,4arY 10,
1934.'
84 "You advise
that due to an improvement in the bank's condition
sar3
.74°n bY the last report of examination it is not considered necesti411;,04uat the
local contribution of ;;25,000 be made as originally con,:7etad. It is noted that the plan now proposed will permit the
4,
7
e1i1xiation Of
all estimated losses and securities depreciation and
re13°1vroxzmately
,900 of doubtful assets as classified in the latest
' °I' e xamination.
plielr'In accordance with your recommendation, the Board
amends its
biltirl
,(1118 aPProval by eliminating the requirement for a local contriori,a)with the understanding that the other provisions
of the
Plan remain unchanged."
Approved.
Letter
dated June 13, 1934, approved by five members of the Board,
°tC°1111°r, Comptroller of the Currency, reading as follows:
41)1)In accordance
with your recommendation, the Federal deserve Board
'4;ch'es a reduction
in the common capital stock of 'The Farmers and
:2b Zits 1\lat1onal
Bank of Eureka', Eureka, Nevada, from 40,000 to
) Pursuant
to a plan which provides that the bank's capital
;e increased by . 25 000
of preferred stock to be sold to the
l'inance'Co;poration, that directors and/or other shareill purchase
at face value and for cash, loans classified as
and worthless to the extent of ,;30,000 and that the released
2
- 791
1
6/14/34
"
capital shall be used to eliminate unsatisfactory assets, all as
set forth in
your letter of May 31, 1934."
Approved.
Telegram
dated Tune 13, 1934, approved by five members of the
)3(411'cl, to
Governors Schaller, ,.",artin, Geery, and McKinney of the Federal
Reserve
banks of Chica::0, St. Louis, Linneapolis, and Dallas, respective1.3r,
readirig as
follows:
u
to Board's June 5 wire and replies thereto regarding
ace° "!!?ferrin;.
v,
om, '"Ing conference, Governor Fancher, Chairman of the Governors'
:
t
C1-1- erellee Committee on fiscal agency operations and reimbursements
peL-1"?for has been consulted on subject and both Board and Governor
Relleu-sr feel that while a conference of representatives of all Federal
a
eSIb
eanks is not necessary at this time, it is important that a
be designated to review reports (B-941) covering fiscal
recileY, depositary, and custodianship work and to submit definite
vianiendations covering changes in expense reports necessary to proor accurate
and complete cost fi,sureJ relating thereto and for
sup °IluitY in requests for reimbursement of such expenses. It is
e4rasted that
representatives designated by Governors Fancher, Martin
:
ob.
41111ae.,7, who constitute the committee of the Governors' Conference
ttve,
"subject, and of Governors Schaller and Geery, and representa:
Dos
from the Board meet in Chicago on Wednesday, June 2'7, for 'Airbet"; of considerin,2,this subject. Meeting would also consider failed
ace° IleeoUntinz questions as suggested by Governor Geery and any other
stetlint14 Problems which banks milat like to place on proram.
8..941e Copies of statements submitted in response to Board's letter
Wheth r1
,
11d b e furnished you before committee meeting. Please advise
Yell. 6 4°11 coneUr and if so whether June 27 will be satisfactory to
advise name of your r
- epresentative who will attend comitte
e -eetin, if held."
Approved.
zerv,e
Let'
'der to mr. rilliams, Federal Reserve Y:zent at the Federal Re'
e41( Of ,C
leveland, reading as follows:
Bn'
- 1.11:1 to Mr. Fletcher's letter of June 4, the Federal ReIto
:
0
I'd approves the application of the liquidating committee of
24.4ce Xel National Bank of Chillicothe, Chillicothe, Ohio, for the
of 156 shares of stock of the Federal Reserve Bank of
4r outstanding in the name of the bank.
Nrulad"nt
,
h reference to the liquidatinc_4 committee's request that the
the Federal Reserve bank stock be withheld until July 1 in
6/14/34
-8-
1792
"order that dividends for the full six months' period may be
earned
thereon. The Board feels, as stated in the second paragraph of its
letter of August 18, 1921, X-31861 that 'such stock should
be surrendered as soon as the accounts between the liquidating bank
and
the Federal Reserve Bank can
be reasonably adjusted'."
Approved.
Draft of a letter to Senator Fletcher, Chairman of the Banking
and
Currency Committee of the Senate, prepared for the signature
of the
Secretary of the
Treasury in accordance with a request received under
date of ....._
June 5, 1934, from Mr. William H.
McReynolds, Administrative
Assistant to the
Secretary, (for a report on bill S. 3700, entitled "A
till To
amend section 19 of the Federal Reserve Act, as amended,
and for
Other
Purposes%) The letter was in substantially the same form as the
letter a
ddressed by the Board to Senator Fletcher on the same subject
Illader date
of May 29, 1954.
Approved.
Telegram dated June 13, 1934, approved by six members of the
E11411
'to Mr. Henry
Y. Offutt, Vice President of the Kentucky Title
TrUst
c0rspa4Y, Louisville, Kentucky, reading as follows:
"Referring Board's letter June 6, 1954, and letter of June 11,
4°4, addressed to Board by
Ralph C. Gifford, you are advised that
careful reconsideration Board is of opinion that Kentucky
Title Trust
Company is engaged principally in the issue and sale
lo„,eecurities within meaning of Section 20 of the Banking Act of
and that, in view
of affiliation of Kentucky Title Trust ComZIY with First
National Bank of Louisville, appropriate action
A 11d be taken to comply with requirements of Section 20
:
of Banking
Cor;,
(
.!f 1933. Board also is of opinion that Kentucky Title Trust
is engaged primarily in the business of selling or
negotiat14xsecurities within meaning of Section 52 of the Banking Act of
23.1.
7 Your
attention is also again called to provisions of Section
ler of the Banking Act
of 1933 which were referred to in Board's
ter of
June 6, 1954."
Approved.
Letter dated
June 13, 1934, approved by six members of the Board,
eux'tise, Federal Reserve Agent at the Federal Reserve Bank of
VA9
6/14/34
_9-
icist°11, reading as
follows:
"Receipt is acknowledged of your letter of June 5, 1934,
l'egarding the applicability of the provisions of Section 32 of
bankiflg Act of 1933 to the service of directors and officers
a member bank as directors and officers of the Lawyers MortCorporation of Boston, Boston, Lassachusetts.
pt is also acknowledged of a memorandum from Mr. Carrick,
T''lleral Counsel of the Federal Reserve Bank of Boston, to Mr.
-iaael a letter dated June 2, 1934, from Mr. Bartlett Harwood,
(;; l
. erriek, Smith, L'onald and _oarley, to the Federal Reserve Bank
boston, a letter dated May 18, 1934, from Lx'. Harwood to you,
140f
!
)61111 of Insured First Mortgage Certificate issued by Lawyers
orr4gaGe Investment Corporation of Boston, consolidated reports
11„. that corporation for the years 1931, 1932, and 1933, respective"'
ins lawYers Eortgai-e Investment Corporation of Boston Plan of Adtment dated ebruary 28, 1933, and letters to the holders of In;
Ierd first Mortgage Certificates issued by that corporation dated
1,e,
ruarY 28, 1932, and July 26, 1933, respectively, all of which
-ve inclosed
in your letter.
Iva_ "It appears that, pursuant to the plan of adjustment which
40;declared operative on July 24, 1933, the corporation is not
agr,nrellasnegotiatinging, selling, or negotiating its own certificates, has
sic--u not to take
or insure any new mortgages other than exten13,
048 and
mortgages incidental to the sala or exchange of foreclosed
forD!!tY and that the free assets of the corporation are retained
i)ric"ae benefit of all its obligations without preference or
by ifitY. It appears further that the plan is now in effect and
sith us terms
shall continue to be effective until March 1, 1939,
atat".11 the same ,
be changed upon the request or consent of a
6
'
4
,,Percentage of the holders of outstanding certificates.
nthe
light of the foregoing, the Board agrees with you
Or
Carrick that the Lawyers Mortgage Investment Corporation
Puz.ch
:
t°4 is not currently 'engaged primarily in the business of
Of 8
, s!
ing, selling, or ne:otiating securities' within the scope
4ess e6104 32 because the statute has reference only to the busientlY transacted by the organization in question. In this
eon4s
13eard;v4.0n, reference is made to the footnote to Section II of the
40t 803 liagulation R, series of 1933. Since the corporation is
ed, the Board believes it unnecessary at this time to
Pra41:eoneriir
question whether the Insured .,irst Lortgage Certificates
kesilifilY issued
by that corporation are 'securities' within the
which g of
Section 32. Therefore, unless there are other facts
it is n1 believe should be called to the attention of the Board,
-egested that you notify Mr. Harwood accordin-jy."
Approved.
Telet,
'5*ram dated .Tune 13, 1934, approved by five members of the
4")
t°
Federal 1-ieserve Bank
Federal Reserve Agent at
CI)
179/7
G/14/3,1
-10Of
New York, reading as follows
:
"Your wire June 12. iiithout undertaking on basis of informat1
.°11 at hand to pass upon necessity under law for obtaining permit
with respect to each relationship between the various
member banks
and dealers named and referred to in
your telegram, Board grants
to
member banks and dealers named as managers in your telegram and
also to all
member banks and dealers which are invited to become
nial2lbers of group being formed to offer such issue, a permit under
Section 32 of i3anking ,Ict of
1933 to extent that same may be neces!arY Under law to have correspondent relationships solely
in conneci°n with issue of ,132,000,000 Iederal Land Bank 4,; bonds dated
21Y 1) 1934 and redeemable July 1, 1944. Such permit is effective
turaodiately as to member banks and dealers
named in your telegram
ruallt other member banks
and dealers invited to became members of group
be named in a certified list of such institu
tions which must be
filed with you
by the managers or proper representatives thereof
before
invitation referred to is extended and before permit becomes
.1.fective as to
any member bank or dealer named in such list. You
i:Y advise
any member bank or dealer named in your telegram or in
ta ch list of Board's action in this matter upon inquiry or as you
i27 deem advisable. This telegram is to be considered a permit
oraed by the Federal Reserve Board under Section 32 of Banking Act
wit 933 for purposes of this case. Please furnish Board promptly
" coDY of certified list of banks and dealers filed with you."
7
Approved.
Tel-egram
to Mr. Case, Federal 2eserve Agent at the Federal Re.ve baak
NOW York, reading as follows:
Trm "Your wire of this date
re application Manufacturers and
or
Trust Company for permit under Section 32 of Banking Act
Ilajzzo9
;
33. Board grants permit under above section to member bank
above to
act as correspondent bank for Adams McEntee and
!
00 44Y, Inc., New York, New York, and George D. B. Bonbright
agt;,
1°Chester, New York, solely in connection with an issue of
ly pu00 bonds of the
City of Binghamton, New York, maturing serialobt r
i nl 1935 to 1939 inclusive referred to in your telegram. Please
Covt7 and forward for Board's files an application by member bank
rorra--nE relationships
referred to together with usual accompanying
F°Tmal permit being prepared and will be mailed shortly.
New., advise applicant and George R. Waldmann, One Wall LAreet,
Approved.
T"eCrem to Mr. Case, Federal Reserve 21,-.:ent at the Federal ReOr
new York, reading as follows:
1795
6/4/34
-11"Your wire of this date re application Manufacturers and
iraders
Trust Company for permit under Section 32 of Banking :let
°f 1933. Board grants permit under above section to member bank
1,,,aMed above to act as
correspondent bank for Lehman Brothers and
W. Pressprich and Company, New
York, New York, and Sage Rutty
Steel, Rochester, New York, solely in connection with an issue
W.,350,000 notes of
the City of Rochester, New York, due three,
°ix and eight months,
referred to in your telegram. Please obtain
forward for Board's files an application by member bank coverrelationships referred to
together with usual accompanying
0
. ,1141s. Formal permit being prepared and will be mailed shortly.
ase advise applicant and George R. ,
:;aldmann, One Wall Street,
New
York."
r
Approved.
Letter to Mr. Williams, Federal Reserve Agent at
the Federal
blank of
Cleveland, reading as follows:
.0, aT
"his refers to your letter of .Tune 6, 1934 with regard
to
1:(4)e PPlications of Messrs.
H. C. Rorick,
H. Rorick, and A. V.
sest!r Under Section 32 of
the Banking Act of 1933 for permits to
I
've as officers and/or directors
of The Fayette State Savings
T,
Jayette, Ohio and as partners of Spitzer, Rorick & Company,
uled°, Ohio.
hall "The Board
understands that the securities business formerly
oire
!
!
l cl by the firm of Spitzer, Rorick & Company has been taken
eY a corporation bearing the name of Spitzer--i-iorick & Co.
bus.' and that Spitzer, Rorick& Company is
transacting no new
11. fless and is in liquidation. It
is also understood that 1,:essrs.
tion i and M. H. Rorick are officers and/or directors of the corporatio':
1,
1nd that Mr. A. V. Foster is not connected with the corpora'jut ls engaged in the liquidation of the old firm.
that
a letter dated April 30, 1934,
M. II. Rorick stated
coladi3
i.° far as he was personally concerned practically the same
(Sc 00.";-°11e exist in connection with his service to Jpitzer-Rorick
Roxleic-alc. as existed in connection with his service to Spitzer,
Comp, and it is understood by the Board that the same
is tru
Stated in Mr. H. C. Rorick's case. On the basis of the facts
pro.813°ve, the Board has reached the conclusion that Section 32
The
the service of Messrs. H. C. Rorick and M. H. Rorick to
aza talYette
State Savings Bank and to Spitzer-Rorick & Co. Inc.,
It wil t Permits should not be issued covering these relationships.
Illuy."4- be appreciated if you will advise these applicants accord?fin
14 li
"rlew of the fact that Spitzer, Rorick Er. Company is now
necesqllidat"fl, the Board is of the opinion that no permit is
Peye.4417 in connection with Jr. A. V. Foster's service to The
6 State
Savings Bank and to Spitzer, Porick & Company and it
IL:70-6
-12"will be appreciated if you will so advise Mr. Foster."
Approved.
Letter dated .Tune 13, 1934, approved by five members of the
13°111'd, to L-1..•
Newton, Federal Reserve Agent at the Federal Reserve
h4Lk (:)f Atlanta,
reading as follows:
"In connection with the application of Mr. Russell Clark
utder Section
32 of the Banking _,ct of 1933 for permission to
ilerve at the same time as a director of the
Whitney National
0.?k and as a partner in the
firm of Ino. F. Clark & Co., both
l'rew Orleans, Louisiana, Mr. Robert S. Parker has written,
141Tder date
of April 5, 1934, asking whether, in the opinion of
,
1 e Board's Counsel, there is any substantial
difference between
V9
14situation referred to in
the Board's letter of March 27,
tio4
7637), and the situation covered by Er. Clark's applica-
:
-, "An examination of Mr. Clark's application discloses no
ostantial difference between the margin accounts carried by
;
"
el
F• Clark a, Co. and the margin accounts which were the
sub„ et of the Board's letter of
March 27, 1934. It therefore apTrs that
Section 8A of the Clayton Act would be applicable to
ark's
service as a partner of that firm and as a director
Of
ne
national bank and that, consequently, the granting of a
'• mit to
1,:r. Clark under Section 32 would serve no useful purPose.
r
z•
"It appears
fram Mr. Parker's letter that, under these cirstances, You may wish to suggest to Mr. Clark that he withdraw
ETPlication under Section 32. Please advise the Board what
s Clark decides to do in this connection.”
Approved.
Letter dated June 12, 1934, approved by five members of the
tekt
t° the followinL; applicant for a permit under section 32 of the
c't 193; the letter stating that it appears that the rela13
4 4a
covered by the
application is within the class which section
481Ened to
terrainate, and that, accordingly, the Board is
4'e to
--d that it
would not be incompatible with the public in—
t
c/eelared by the Congress to grant the application, although
179'7
6/14/34
in the
rileilt
-13-
event the applicant desires to submit further facts or argu-
in
e&lreful
support of the application the Board is prepared to give them
consideration:
T
v. T. Gray, Jr., for permission to serve at the same time
eLa a director of the
4merican National Bank, Nashville, Tennessee,
asPresident and director of Gray-Shillinglaw & Co., Nashville,
Tennesse0.
Approved.
Letter dated June 12, 1934, approved by five members of the
toaa.
d $ to Lir.
Newton, Federal Reserve Agent at the Federal Reserve Bank
or stti
'a, readin as follows:
"Reference is made to the applications of American National
17.7K. Nashville, Tennessee, and Gray-Shillinglaw & Company, Nashe,
Tennessee, under Section 32 of the Banking Act of 1933 for
r4is5ion to serve as correspondent bank and as correspondent
,,ealer for each
other.
0
"It appears from the application that Gray-Shillinglaw
acj
ellY carries its active account with the bsnk, clears its transthrough the bank, and borrows money from the bank on colbut apparently there are no other regular transactions
vo'ween the two institutions. In answer to question No. 3 of F.R.B.
04!9913 the bank states that it does not join underwriting syndide,:s
!does not sell securities to its customers, and has no bond
i2v14rIlment. On. the basis of the above facts it appears that there
ties "rrespondent relationship between the bank and the securitio,, e2mPanY. In this connection, reference is made to the definiII 'correspondent bank' and 'correspondent dealer' in Section
°I' the
Board's Regulation R.
cm, "Unless
there are other facts which you believe should be
willed to the
attention of the Board it will be appreciated if you
DernrE,rvise the applicants that in the judgment of the Board no
e,Dr,1!"3 are necessary covering the relationships descldbed in their
z--lcations.”
Approved.
Letter
dated June 13, 1934, approved by six members of the
to kr. 4
Board,
ed UhlMann, Chicago, Illinois, reading as follows:
"The Federal
Plicat.
Reserve Board has given consideration to your ap4 under ,ection 32 of the Banking Act of 1933 for a permit
"
1_798
6/14/34
-14"to serve at the same time as a director
of the American National
Bank and Trust Company of Chicago, and as partner of Uhlmann&
Beajamin, both of Chicago, Illinois.
"It appears from the information contained in your application that the business of Uhlmann & Benjamin is confined to the
Purchase and sale of securities in the open market as brokers on
the order
and for the account of others. The Board believes that
the provisions of Section 32 are not applicable to such a business,
"
:
tIld for that reason no permit is necessary to bring your service to
1e two institutions named in your application into conformity with
the provisions
of Section 32.
"However, Section 8A of the Clayton Act makes it unlawful for
anY director, officer, or employee
of any bank, banking association,
°r trust
company, organized or operating under the laws of the
united States to serve at the same time as
a director, officer, or
!
MPloYee of any corporation (other than a mutual savings bank) or
;
'1418 a member of a partnership which mal:es loans secured by stock or
,!Ild collateral, other than to its own subsidiaries. The Board is
ult.he opinion
that the carrying of margin accounts involves the
a
,lug of such loans within the meaning of this section; and it
JPeare that the carrying of margin accounts constitutes a substan'al Portion of the business of Uhlmann
& Banjamin.
"The Federal iieserve Board is authorized by Section 8 of the
Clayton.:E1
Act to issue 7)ermits covering relationships between not more
5nantheeee banking institutions which are otherwise prohibited by
8 or Section 8A, if such relationships are not incompatible
• .
41 the public
interest. However, it is not the Board's practice
aluvlseue permits authorizing relationshi
ps between national banks
bastitutions carrying margin acounts because it appears that
•
re7 or the principal purposes
of Section SA was to terminate such
renonships and that
the issuance of permits authorizing such
taelt,lonehips would be incompatible with the public interest as
-red by the Congress.
to 7/1 the circumstances, irrespective of whether or not Uhlmann
s,
is a banking institution of a kind referred to in Section
04e-ci; will be
necessary for you to discontinue your services with
rorm r the other of the institutions named above in order to conthe provisions of Section 8A of the Clayton Act. Please
chi• cQe the
Federal Reserve Agent at the Federal Reserve Bank of
of the action which you take in order to comply with the
1
Approved, together with a similar letter
dated Tune 13, 1934, approved by six members
of the Board, to hir. Henning Chambers, Louisville, 1.entucky, with regard to his application
under section 32 of the Banking Act of 1933 for
a pellmit to serve at the same time as a director of the Citizens Union National sank and as
et member
of the firm of Henning Chambers and
C(1) PanY, both of Louisville, ::entucky.
1799
6/14/34
Letters dated Tune 13, 1934, approved by six members of the
eircl, to Mr.
;Toxton, Federal Reserve Agent at the Federal Reserve
BcIllk Of Richmond,
stating that the Board has given consideration to
te
f°11cw1ag applications for permits under the Clayton Act, and that,
11Pell the basis of the information before it, feels that the
issuance
ef the Permits
applied for would be incomTatible with the public intelbeSt•
.1]ach letter also requested the agent to
communicate to the
"-leant the
Board's position in the matter, and to advise the Board
131‘QtaPtlY as to whether
the applicant desires to submit any additional
kta,
'uld, if not, as to what steps he
proposes to take in order to
eozapi,_
4NT with
the provisions of the Clayton Act.
Mr, 17
as "' N. Fitzwater, for permission to serve at the same time
we S director of the Citizens National Bank of
Lakins, Elkins,
Virginia, and as a director and officer of the Bank of
en3, Pickens,
West Virginia.
B• ,.Eirtin, for permission to serve at the sane time as
vilareotor of the Citizens
National Bank of Elkins, lakins,
we
Virginia, and as a director of the Bank ce Adrian, Adrian,
3t VirCinia.
Approved.
lie.aerv
Letter t t.r. LcClure, Federal Reserve Agent at the Federal
ansas City, readinf,,- as follows:
1sau
:
IThere are inclosed Clayton Act permits and copies thereof
orf17 bY the Board
to i r John
Hay to serve as director and
tor e'er °I' The Rock Springs National Bank, Rock Springs, as direc:
and 14 1
cer of The American i:ational Bank of Cheyenne, Cheyenne,
11r.
director and of
of First Bank of Superior, Superior,
c4ri's
Gottsche to serve as director and officer of The Rock
Of 1,11T3
Ilational Bank, Rock Springs, and as director and officer
ets di St Bank of
'Superior, Superior;
Robt. D. Eurphy to serve
, 'rector
LipriaE)
and officer of The Rock Springs :rational Bank, Rock
as dil.ecter of FirstBmk of Superior, Superior; and
18C0
6/14/34
-16John W. Hay, Jr., to serve as director of The Rock Springs
National Bank,'Rock Springs, and as director of ,tate Bank of
Pinedale, i-inedale, all of wyamin3.
"Information obtained from the files of the Comptroller of
bee Currency indicates that Er. John a. Hay has committed a nun01 violations of
Section 22(g) of the Federal Reserve Act by
(3.1iardrawing his account in The i;ock Springs rational Bank and that
!.. e alleged violations were reported to the Attorney General of
"le United States.
it also appears that the account of Er.
H.
Gottsche
was habitually overdrawn, although this possible viola,_ 1()12 of the Banking Act of 1933 was not reported to the
Attorney
!
,.,11eral on the
'
grounds that :Ls. Gottsche was not an executive
-4fieer of the bank. In this connection, reference is made to
Y ur letter of Eay 12, 1934, relative to
j
the Clayton Act applicaI. Cy Lllinger of aashington,
i n
Oklahoma, in which you adthat the United States Attorney for the district in
which
r:,hlaliager resided had informed you that he had taken up a
of such cases with the Attorney General and authority was
cjanted to close
some such cases by calling the attention of the
tilltLeers of the bank to the new legislation
and admonishing them
4't such irreEularities
would not be permitted in the future.
vol "The 3oard
feels that, in connection with applications ins
beeavoitZorted
violations of law, definite information should
regarding the disposition which was made of such
isanbefore permits under the provisions of the Clayton Act are
thet-e • You are requested therefore,
ascertain the status of
ir cuarges against Mr. John a. Hay andtocv:ainst
Mr. W. H. Cottsche
clorY; and in
the event the cases have been duly considered and
ilicled without
prosecution, you are authorized to release the
14111:Ted Permits to 1.:essrs. John
Hay, a. H. Gottsche, TRobt. D.
balILY and John W. Hay, Jr., and to forward copies thereof to the
i41.160-u i
nvolved, at the same time furnishing the Board complete
01.deflilation with respect to the disposition of these matters
in
that its
records may be complete.
t/04,"The Board
also desires that when you submit your recammendarilli, 1E3 a result of your annual review of these permits you report
1.0114r, as to
whether Mr. John W. Hay has further violated any proviwhet171
the law by overdrawing his account or otherwise, and
cirevoz. 1. :;:x°
ct
e=,
has continued the practice of habitually over-
j
Approved.
Lettexis
dated Zune 1:5, 1904, approved by six members of the
to ,.
cIPPlloants for
4D13roval
penaits under the Clayton Act, advising of
ur their
aPPlications as follows:
141.,
Oh
(11)
CurleY, for permission to serve at the same time as
Or The First National Bank of Glen Cove, Glen Cove,
.1113GJL
6/14/34
-17-
NOW York, and as a director and officer
of The State Bank
Of Sea cliff,
Sea Cliff, New York.
S. W. Dittenhofer, for permission to serve at the same
as a director of The First National Bank of Saint Paul,
,j
eal
tki:linnesota, and as a director of the Grand Avenue
St. Paul, Minnesota.
t
-
R. Fairchild, for permission to serve at the same time
an officer of The First
National Bank of Saint Paul, St.
--,!1-11, Minnesota, and as a director of the Grand
Avenue State
3ttlik:, St.
Paul, Yinnesota.
* -L4. J. Gifford, for permission to serve at the same time
18
;3 an
officer of The First National Bank of Saint Paul, St.
sT11, Illinnesota, and as a director and officer of
the Security
vette Bank
of Saint Paul, St. Paul, YAnnesota.
Ivir n.
C s Lillibridge, for
permission to serve at the same
as an
officer of The First Natioaal Bank of Saint Paul,
St
Linnesota, and as a director of the Security State
Of Saint
Paul, St. Paul, i!innesota.
*. A.
as -1 LeNee, for permission to serve at the same
time
p,„ 11-1 officer of
The First National Bank of Saint Paul, St.
s;"-L,
Minnesota, and as a director of the Farmers & Merchants
ate Bank of
Saint Paul, St. Paul, Idnnesota.
as
Phil;
T
Ray, for permission to serve at the same time
'Ilrector and officer of The First National Bank of Saint
Paul,innesota, and as a director of the Grand
e Bank,St
St. Paul, 'r;:innesota.
,
G
ttrae
'
0 e M. Robbins for permission to serve at the same
zt. p4s an officer of The
First Natiolial Bank of Saint Paul,
,
11) lannesota, and as a director of the Grand Avenue
StEctsal,
St. Paul, Minnesota.
n
There
atoolc:
1-i.
Approved.
e
'Jrthen presented the following a.:plications for changes
11)
1411, 4-eation________s
let Izo. for
3. ORIGIRZ_Stock:
thweatern
llational Bank in Philadelphia,
Itiladelphia,
Pennsylvania
Shares
360
360
1802
8/14/34
-18A —
.cations for ORIGINAL Stock: (Continued)
District No. 7.
4141Z County National
Bank in Eldora,
tidora) Iowa
District
The FirstNo• 11°
National
tigleton, Texas
lication for
BFInk
Shares
60
60
of Angleton,
36
Total
36
456
120
120
SURRENDER of Stock:
State National
Bank of Texarkana,
Texarkana,
Arkansas
Approved.
Thereupon the meeting adjourned.
41)Drcv
@FedFRASER