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1178 A meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Monday, June 15, 1936, at 11:00 a. m. PRESENT: Mr. Eccles, Chairman Mr. McKee Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman Consideration was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the 13°Eird: Telegram to Mr. Powell, Secretary of the Federal Reserve Bank Of Minnpapolis, stating that the Board approves the establishment without change by the bank today of the rates of discount and purchase in its existing schedule. Approved unanimously. Letter to the board of directors of the "Niles Center State Bank'', Niles Center, Illinois, stating that, subject to the conditions Of membership numbered 1 to 3 contained in the Board's Regulation "H", 414 the following special conditions, the Board approved the bank's application for membership in the Federal Reserve System and for the 4PProPriate amount of stock in the Federal Reserve Bank of Chicago: 114 . "5. Such bank shall make adequate provision for depreciation in its banking house. As soon as practicable such bank shall dispose of any shares of its own stock held as collateral to its loans. "6. Prior to admission to membership such bank, if it has not already done so, shall charge off or otherwise 1179 6/15/36 -2"eliminate non-income producing real estnte aggregating $23,500 and estimated losses of 4'1,508.26 in loans, as shown in the report of examination of such bank as of April 28, 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 Mr. Gidney, Assistant Federal Reserve Agent at the Federal Reserve Bank of New York, Prith regard to the report of examina- of the "Floral Park Bank", Floral Park, New York, as of October 17, 1935. Approved unanimously. Letter to Mr. Gidney, Assistant Federal Reserve Agent at the Pederal Reserve Bank of New York, reading as follows: "Consideration has been given to your letter of May 25, 1936, and inclosure, regarding the applicability of section 32 of the Banking Act of 1933, as amended, to Mr. Carl Egner, who is resident partner at the Newark, New Jersey, office of Clark, Dodge ,ez Co., New York, New York, and who wishes to be advised whether he may again become a director of Kearny National Bank, Kearny, New Jersey. "It appears from the information submitted in your letter that for the period from January 1, 1933, to April 1, 1936, the aggregate net income of the firm derived from transactions involving 'the issue, flotation, underwriting, Public sale, or distribution, at wholesale or retail, or through syndicate participation, of stocks, bonds, or other similar securities' constituted a little over 9 per cent of the total net income of the firm, the aggregate net income received from its brokerage business constituting about 67 per cent, the balance being derived from investment counsel management fees and other miscellaneous sources. "On the basis of the information submitted, the Board sees no reason to differ with the conclusion reached by Your office and by counsel for your bank that section 32 1180 6/15/36 -3- "would not prohibit the relationships in question. Of course, if there should be any material change in the relative volume of the various types of business transacted by Clark, Dodge & Co., a further question regarding the applicability of section 72 might be presented." Approved unanimously. Thereupon the meeting adjourned. Secretary.
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