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329 Minutes of actions taken by the Board of Governors of the l'ecieral Reserve System on Monday, March PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. 8, 1948. Eccles, Chairman pro tem. Szymczak Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Board Minutes of actions taken by the Board of Governors of the NIer al Reserve System on March 5, 1948, were approved unanimously. Memorandum dated March 4, 1948, from Mr. Nelson, Director ot the Division of Personnel Administration, notifying the Board that Carl E. Parry, Director of the Division of Security Loans, filed an application for optional retirement under the Board c)r the Federal Reserve Retirement System, effective April 1, 1948. Noted. Letter to Mr. Douglas, Vice President of the Federal Re ye 13ank of New York, reading as follows: "Reference is made to the reports on the number, cla ssification, and salaries of employees requested 3 1 the Board's letter of December 11, 1947, and sub; ! ltted with your letter of January 13, 1948. "A review of the reports indicates that the salIL ies of all employees conform to the schedule approved ! l" Your Bank under the Plan of Job Classification and alarY Administration with certain exceptions already e 330 3/8/48 -2- approved by the Board." Approved unanimously. Letter to Mr. McCreedy, Secretary of the Federal Reserve ilaof Philadelphia, reading as follows: "The Board of Governors approves the appointments of Messrs. B F. Mechling, Harry L. Miller, Xeith Powlison, James M. Skinner, and Daniel H. Schultz as members of the Industrial Advisory ComMittee for the Third Federal Reserve District to .”rile for terms of one year each, beginning March ±) 1948, in accordance with the action taken by the .!'!9ard of Directors of the Federal Reserve Bank of ' l hiladelphia, as reported in your letter of March 4, 1948.n Approved unanimously. Telegram to Mr. Earhart, President of the Federal Reserve Of San Francisco, stating that, subject to conditions of mem151*shtP numbered 1 to 3 contained in the Board's Regulation H and tlie 1'01-laving special condition, the Board approves the application ()Ithe "Inland Empire Bank", Umatilla, Oregon, for membership in the ea Reserve System and for the appropriate amount of stock in l'eclel ' tl"ecleral Reserve Bank of San Francisco: "4. At the time of admission to membership, such shall be entitled to the benefits of deposit inrance under the provisions of Section 12B of the ederal Reserve Act." ba,b. p 1111 tele gram requested that the Federal Reserve Bank advise the ap- bank of the Board's approval of the application and conditions 331 W48 -3- (IfIllembership prescribed, together with necessary instructions as to the Procedure for accomplishing membership, and stated that a letter containing detailed advice regarding such approval would be r°rwarded to the applicant bank through the Reserve Bank. Approved unanimously. to Mr. Volberg, Vice President of the Federal ReTelegram , 4velqan of San Francisco, reading as follows: "Subject final determination on basis of facts submitted with actual application Board would be disPosed to give favorable consideration to application ror membership by Continental State Bank, Boise, Idaho, in, view of representations made informally and the un'lerstandings reported by you. It is understood that, after admission, acceptable assets of the New Plymouth State i Bank, New Plymouth, Idaho, are to be acquired, 1.?8 deposit liabilities assumed, and a branch estab41-shed at New Plymouth. It is understood also that (31°Imon capital of the Continental State Bank is to be increased to $250,000 and the total of its capital :ccount increased as a result of the transaction by i amount not less than 6 per cent of deposits assumed thereby and, in no event, is the increase to be less NY More than $18,000 than the capital account of the Plymouth State Bank at the time of the absorption." f Approved unanimously. Letter to the "Piedmont National Bank of Spartanburg", SpartanSouth Carolina, reading as follows: "The Board of Governors of the Federal Reserve SYst,,em has given consideration to your application 13.°1. fiduciary powers, and grants you authority to : let) when not in contravention of State or local 11/ as trustee, executor, administrator, registrar stocks and bonds, guardian of estates, assignee, 4 3/8/48 -4- receiver, committee of estates of lunatics, or in any Other fiduciary capacity in which State banks, trust companies or other corporations which come into competition with national banks are permitted to act under the laws of the State of South Carolina, the exercise of all such rights to be subject to the provisions of the Federal Reserve Act and the regulations of the Board of Governors of the Federal Reserve System. "This letter will be your authority to exercise the fiduciary powers granted by the Board pending the Preparation of a formal certificate covering such authorization, which will be forwarded to you in due course." Approved unanimously. This action was taken in the light of the comment contained in the memorandum prepared in the Division of Examinations under date of February 19, 1948, that, in view of the circumstances involved, the approval of the application of the "Piedmont National Bank of Spartanburg" would amount to virtual abandonment of the informal policy of waiting a year after the organization of a new national bank before granting trust powers to it, and that the favorable recommendation in this case was made with that situation in mind. Letter to Mr. Earhart, President of the Federal Reserve Bank or seal Francisco, reading as follows: "This refers to your letter of February 24, 1948, - which you submitted a set of floor plans for the ;!°Posed Portland Branch, showing certain revisions r°M those submitted with your letter of September 20, 1947. th "It is noted that after further consideration of toe tYpes of materials, equipment, and construction or be used, it is now estimated that the overall cost th the building including vaults and fees will be less trsall $3,000,000. This estimate provides for a reinconcrete building and marble or terra cotta 333 3/8/48 —5— "facing in place of the structural steel frame building and polished granite facing originally proposed. You asked to be advised what kind of structure and what type of outside facing the Board would approve and Whether it has any objection to the outline specifications attached to your letter. "On the basis of the information submitted, the Board approves for the exterior facing of the proposed Portland building use of the two-tone marble or any alternate material the cost of which is not in excess of the marble. You state that the steel frame construction at Portland is estimated to cost about $27/500 more than reinforced concrete constructions, whereas the architect estimated that steel frame construction for the Seattle building would cost $125,000 Illore than reinforced concrete. On the basis of all available information it would seem to the Board that :the cost of steel frame construction at Portland would ?e substantially greater than estimated, and, if so, -chat reinforced concrete construction would be preferable at Portland as well as Seattle. "You state that the same reasons exist for proding cafeteria facilities in the Portland building as were mentioned in your letter of February 14, 1948, ;! 1 lating to the Seattle building. It is noted that ' .t4e estimated cost of equipment for kitchen and cafeTheria, other than for dishes, flat silver, and coffee tia2 l er) would be only about $7,000, and that much of ' lo le equipment would be necessary if only a 'snack al" were provided. In view of the considerations 2 17 t1ined in your letters, the Board will interpose no ;uiection to the inclusion of cafeteria and dining °om facilities in the final plans." Approved unanimo Air cl: Chairman pro tem. ir JeAL.L.•Secretary.
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