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908 A meeting of the Board of Governors of the Federal Reserve antul was held in Washington on Tuesday, June 5, 1945, at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Draper Evans Mr. Carpenter, Assistant Secretary Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters hereinatter r eferred to was taken by the Board: Pecieral. The minutes of the meeting of the Board of Governors of the Reserve System held on June 4, 1945, were approved unanimousl 4rM emorandum dated June 2, 1945, from Mr. Thomas, Director of the I:4171810n of Research and Statistics, recommending that Miss Marilyn j' krkal, be appointed as a clerk in that Division on a temporary b4sie for a period not to exceed three months, with basic salary at the rate of $1,440 per annum, effective as of the date upon which she etIters upon the performance of her duties after having passed satis- 4et°rilY the usual olysical ation and subject to a satisfactory examin qleck of her references. The memorandum stated that Miss Turkal would 11()t become a member of the Board's retirement system. Approved unanimously. Let ter „ula E., for the signature of Chairman Eccles to Honorable °I1 the 3, 11/til the 'Alter, Chairman of the Subcommittee of the Committee • 'arY, House of Representatives, prepared in accordance action taken at the meeting of the Board on May 28, 909 6/5/45 —21916) and reading as follows: "The Board of Governors of the Federal Reserve Sys— tem has been following with much interest the hearings on IL R. 2357 which are now being held by your Subcommittee °„! the Judiciary Committee of the House of Representatives. The Board understands that assurances have been given that j't8 views respecting this proposed legislation will be heard at an appropriate time by your Subcommittee. 1,—, "On March 21st last, the Board sent its report on this ' nil-LI to Honorable Hatton W. Sumners, Chairman of your ful1 '°mmittee. In its report the Board heartily endorsed the P fil,:°13(3sed legislation but recommended that the requirement ' o r Prior governmental approval of acquisitions of stocks assets of one corporation by another be extended to ap— t_,4) acquisitions within all of the existing areas of Act enforcement, and not be restricted, as is now : 1 Provided in the bill, solely to those cases which faJi -111.thin the jurisdiction of the Federal Trade Commission. line with this recommendation the Board submitted with ' He report certain suggested changes in the language of R. 2357, we_ "Since the Board's report and suggested amendments 44". ! sent to Mr. Sumners, counsel for the Board, together : et counsel for the Federal Trade Commission, have dis40_sed the bill with representatives of the other agencies 111.7 Me ntioned in section 11 of the Act and have been ad— th:sd that such other agencies already possess substantially ped saMe power which the Kefauver bill would grant to the of ?ral Trade Commission. Thus, the Transportation Act roiX40 gave broad powers to the Interstate Commerce Corn— to regulate the acquisitions of assets and shares co salori,"eting carriers and to permit such acquisitiowould ns, 40t °ther things, upon a finding that the result be_tc unduly restrain competition. Both the Federal app'"elcations Commission and the Civil Aeronautics Board the ?Ito have been vested with similar powers to those of t'erstate Commerce Commission in this respect. "It would how eh, appear, therefore, that the only agencies a ctrged with enforcing section 7 of the Clayton Act O or dire really in need of the particular power to approve theirsaPProve acquisitions by competing companies within tal.aei respective jurisdictions are the Federal Trade Corn— and this Board. In the light of this fact the RIO 6/5/45 -3"Board has decided to revise its previous report on H. R. .357 to suggest that the provisions of the bill relating 60 the requirement of prior approval of acquisitions be ehanged to include only the Board of Governors of the Fed— Reserve System. Accordingly, there is enclosed here— With a suggested redraft of section 7 of the Act. As thus redrafted the section contains the Board's recommended t eha!Iges, including a few technical amendments that seem oe required in view of existing legislation respecting federal control over banking generally, as well as certain :rndments which have been recently submitted on behalf the Federal Trade Commission. All of these suggested theaents will be fully explained by representatives of h Ikerd when your Subcommittee finds it convenient to ear them. "For the information of your Subcommittee it should be eta dis ted that all of the Board's suggestions have been enm!psed with and formally approved by the Federal Trade ii Approved unanimously. reactin Telegram to the Presidents of all the Federal Reserve Banks gas follows: ih, "In connection with the adoption of new check rout— g;ts r7Tb018, American Bankers Association has requested 1301, convey to it exclusive right to use routing sym— mi ' In Association's book 'Key to Numerical System', per— liT•on to convey to Rand McNally exclusive right to pub-the book, and agreement to furnish to Rand McNaJly sPubols assigned to new banks. At suggestion of siccren of Committee on Operations, Board's Legal Divi— cle, "as prepared letter to Association which has been letter informally with Counsel for Association. That the ;,.,fter referring to Association's request, contains '14-Lowing language: It is understood that the "Key to the Nu— merical System" will include a statement to the effect that the use of the routing symbols is,?°nfined to those banks whose checks are J--Lectible through the Federal Reserve Banks. is assumed, of course, that the Board of .? 911 6/5/45 —4— "'Governors, in the discharge of its duties under the law, may properly- make use of the new routing symbols if at any time it should become desirable for the Board to include such symbols in any of its publications. 'On the basis of the foregoing understand— ing, the Board of Governors and the Federal Re— serve Banks do not assert, and will not assert, any right to have the new symbols copyrighted ?-11 their name or names or to join with others in obtaining such a copyright. However, in or— der that the symbols may be fully utilized by banks whose checks are collected through the Federal Reserve Banks, and, in so far as their Permission may be necessary or appropriate, the Board of Governors and the Federal Reserve Banks hereby consent to the use of the new symbols in the proposed revision of the book entitled "Key to the Numerical System of the American Bankers Association" and to the copyrighting of such s,?-mbols and book in the name of your Associa— tion. Arrangements are now being made for the furnishing of new routing symbol numbers to the Publisher at such times and in such cases as may be Please necessary.' 11, not later than June 8 whether you concur in yard ? sadvise _e 3 naing proposed letter above described." Ot Approved unanimously, with the un— derstanding that the letter to Mr. MAJler, Secretary of the Bank Management Commis— sion of the American Bankers Association, referred to in the above telegram, would be sent upon concurrence by the Presidents of the Federal Reserve Banks. Letter to Mr. Dillard, Vice President of the Federal Reserve Bank Chicago , reading as follows: lett "On the basis of the information contained 11-1 your of 11:1 :_°f May 29, 1945, regarding the apparent violations ation IV by the Consumers Home Equipment Co., the L'slieves that you should now give the Registrant 912 6/5/45 —5— :'the privilege of a conference on the matter with the Board of Governors or its representatives' as provided in the consent closing agreement signed on December 29, 1943/ 21 order that the Board may determine whether or not the !g1strant's license should be suspended or revoked and, 44 80, whether the suspension or revocation should apply to all or part of its branches. The Board requests that : Y r 3114nd Mr. Hodge act as its representatives for the pur— T°8, 8 of this conference, unless the Registrant should '-usist upon a conference with the Board in Washington. ad "It will be appreciated if you will keep the Board vised of developments. We shall be glad to discuss the atter with you by telephone or do anything which we can facilitate the handling of the matter." ,1 7 T Approved unanimously. Thereupon the meeting adjourned. Chairman.
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