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A meeting of the Federal Reserve Board was held in the office of the Board on Thursday, March 31, 1921, at 11:30 a.m. PlESENT: Governor Hard lug Mr. Platt Mr. Hamlin Mr. Miller Mr. Cri ssinger Mr. Hoxton, Secretary. Minutes of the meeting of the Board held March 30th were read arid- en motion approved. The Governor reported. the reserve positions of the several Feder al Reserve banks as at close of busin ess March 29th and the status of ' l ed-iscounts between the Federal Reserve banks as of the same date. Letter dated March 30th, from the Railway Loan Advis ory Committee Of t he Federal Reserve Board reque , sting approval of a form of loan in th o amount of :'1 311,000, to be made to the llorfolk Souti-Brn Railr oad Co., said loan to be made in two parts, the carrier electing to draw down at this time that part of the loan amounting to !')11 1,000, under the provis1°118 Of Section 210 of the Transporta tion Act, 1920, as amended. Approved. Letter dated March 30th, from the Railway Loan Advisory Committee (31' the Federal Reserve Board, reque sting approval of a form of loan in the amount of :11,564,00 0, to be made to the Alabama and Vicks burg Railway 00 said loan to be made in two parts, the carrier elect ing to draw down 4t this time thrt part of the loan amounting to 1,394,000, under the 'lons of Section 210 of the Transportation Act, 1920, as amended. Approved. -2- Letter dated March 30th, from the Assistant Federal Reserve Agent at Yew York, in mply to a letter from Governor Harding calling attention to the recent publication of a statement to the effect that Senator La Follette had. recently in a speech indicated that in certain specific cases the provisions of the Clayton Act with reference to interlocking directorates were being violated in New York City. The reply of the Assistant Federal Reserve Agent at New York clearly indicated that the statements in this connection,attributed to Senator La Follette, were erroneous. Upon motion, it was moved t],at a letter giving the actual facts in the above case be sent to the Chairman of the Senate Committee on Banking and Currency. Letter dated March 30th, from the Consulting Architect. s tating his opinion that the fees proposed to be paid to the archi- tects, engineers and builders employed by t'ne Federal Reserve Bank Of IT, York are usual and reasonable. In view of this letter and in accordance with action previously taken, Gov:rnor Harding was authorized to advise the Federal Reserve Bank of I:ew York that the Federal Reserve Board interposes no objection to the proposal of that bank to proceed at once with razing old buildings, making excavations and constructing foundations for the new building. Governor Harding stated that the Committee appointed by the Board on March 29th to make a study of recommendations for certain salary increases for senior officers of the Federal Reserve banks has had a conference with the Chairman of the Board, and desired to -3- report that in view of existing conditions the proposed increases should not be allowed. Approved, it being understood that Governor Harding will mention this matter at the forthcoming conference of Governors. Letter dated March 29th, from the Chairman of the Federal Reserve Bank of Chicago, stating that several employes of the Member Bank Relations Department of that bank are now statione d temporarily at the offices of certain specified member banks which are regarded by the Federal Reserve Bank of Chicago as being in an unsatisfactory condition. Noted. Letter dated March 29th, from the Chairman of the Federal Reserve Bank of Chicago, suggesting that the published statemen t of the Federal Reserve banks show that portion of profits Which must be set aside for the payment of franchise tax required by law. Referred to Governor Harding, with the understanding that, if he deem proper, he bring the matter up before the next Governors' Conference. With reference to the matter of reimbursing the office of the Comptroller of the CurTerry for e3q)ense incurred in furnishi ng the Federal Reserve banks with copies of examination reports, Mr. biller moved that the question of such reimbursement be referred to Governor Harding and to the Comptroller of the Currency with power. Carried. In accordance with action taken by the Board at its meeting 262 en March 25th, the Committee composed of Mr. ?latt and Mr. Hamlin, appointed for the purpose of preparing an amendment to the Kern Amendment of the Clayton Act, reported with its recommendation the following: AN ACT to amend Section 8 of an Act ent itled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes", approved October 15, 1914, as amended May 15, 1916, and May 26, 1920. BE IT ENACTED BY THE SENATE AND HOUSE OF REPRES=ATIVES OF BIE UNITED STATES OF AMERICA IN CONGRESS ASSMIBLM, That Section 8 of the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other Pizrposes", approved October 15, 1914, as amended by the Acts of May 15, 1916, and May 26, 1920, be further amended by striking out the period at the erri of the second_ clause of said section and adding to said clause the following: "or if in the judgment of the Federal Reserve Board such an interlocking relation will not result in a rastriction of credit or lessening of competition." Upon motion, the Board tentatively approved the above proposed mendment, and Mr. Platt was requested to confer on the matter with tl-e- Chairman of the Bo rd, with a view to ascertaining the opinion of Yr. Mellon in this connect ion. Memorandum dated March 30th, from the Division of Examination, ' l ecommeniing approval of the application for the consolidati on of the Bank of Social Circle, Ga. with the Walton County Bank of Social Circle, Ga., a member of the Federal Reserve System. Approved. -5- REPORTS OF COMMIT TEE NO. 1: Dated March 29th, •Reconmending approval of application for admission 31st, of state institutions, subject to the conditions contained in the reports attached to the applications, as set forth in the auxiliary minute book as of this date. Approved. Dated March 31st, Recormend.ing approval o f the application of Mr. J. W. Berryman to serve at the same time as officer and director of the First National Bank of Wichita, Kans. and as officer and director of the Stockgrowers National Bank of Ashland, Kans. Approved. Dated March 31st, Recommending approval of the application of Mr. John B. Griffey to serve at the same time as director of the CommBrcial National Bank and the 7.'orthwestern State Bank, both of Indianapolis, Ind. Appro ved. Dated March 31st, Recommending aparoval of the application of Mr. jaMOS L. Gavin to serve at the same time as director of the Coinmercial National Bank and the Northwestern State Bank, both of Indianapolis, Ind. .Apnro ved. Dated. March 31st, Reco mending appr oval of the application of Mr. Eversley Childs to serve at the same time as director of the Irving National Bank of Nor York City and as director of the Tinker National Bank of East Setauket , N.Y. Approved. Dated March 31st, Reco mend ing approval of the application of Mr. Charles S. Child to serve at the sane time as director of the First National Bank and the Northern Trust Company, both of PhilPdelphia, Pa. Approved. At 1:00 p.m. the meeting adjourned. Secretary. Approved:
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