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316 A meeting of the Board of Governors of the Federal Reserve .8.8-teln was held in Washington on Monday, March 10, 1941, at 11:30 .m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters here— inafter referred to was taken by the Board: The minutes of the meetings of the Board of Governors of the Federal Reserve System held on March 7, 1941, were approved 111441mously. The minutes of the meeting of the Board of Governors of the Pe°eral Reserve System held on March 8, 1941, were approved and the licti°ne recorded therein were ratified unanimously. Memorandum dated March 6, 1941, from Mr. Goldenweiser, Di— tor of the Division of Research and Statistics, recommending that 3 for the reasons stated in the memorandum, Guy E. Greer be ap— linted for an indefinite temporary period--probably about one year-48 a senior economist in the Division with salary at the rate of per annum, effective as of the date upon which he enters upon 317 3/10/41 the Performance of his duties after having passed satisfactorily the usual physical examination. Approved unanimously. Letter to Mr. Hill, Vice President of the Federal Reserve liar* of Philadelphia, reading as follows: "Consideration has been given to your letter of February 11, 1941, and enclosures, relating to the question whether a director of a member bank may serve as a director of Wellington Fund, Inc., an investment trust, in view of provisions of section 32 of the Banking Act of 1933. The specific question is whether Wellington Fund, Inc. is SO actively engaged in issuing its own shares as to be 'primarily engaged' in the issue or distribution of securities within the meaning of the statute. "It is understood that Wellington Fund, Inc. was incorporated in 1928. During the five years ending June 30, 1936, it issued 62,062 shares of its stock, and on the latter date a total of 88,059 of such shares was outstanding. Between that date and June 30, 19401 283,359 more shares were sold, and at the end of 1940 the total number of Shares outstanding was 403)093. "The shares are sold through independent organizations -with the result that Wellington Fund, Inc. does not derive MY direct profit from such sales. However, you and your counsel are of the opinion that since Wellington Fund, Inc. is actively engaged in the issue and distribution of its Shares, the interlocking relationship is prohibited by section 32. "On the basis of the information submitted, the Board agrees with this conclusion." Approved unanimously. Thereupon the meeting adjourned. 4PPrioved: ---4"4AAjLr% Secretary. /4 Cho rman.
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