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Minutes of actions taken by the Board of Governors of the Federal ileserve System on Tuesday, May 15, 1951. at 240 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. The Board met in the Board Room Martin, Chairman Eccles Szymczak Evans Vardaman Norton Powell Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Carpenter, Secretary Sherman, Assistant Secretary Murff, Assistant Secretary Kenyon, Assistant Secretary Thurston, Assistant to the Board Thomas, Economic Adviser to the Board Vest, General Counsel Young, Director, Division of Research and Statistics Hilkert, Acting Director, Division of Personnel Administration Noyes, Director, Division of Selective Credit Regulation Allen, Assistant Director, Division of Personnel Administration Smith, Special Counsel Mr. Hodge, General Counsel of the Federal Reserve Bank of Chicago, Who 1148" ti as technical adviser to the Hearing Officer in connection Vith e elaYton Act proceeding against Transamerica Corporation, also was Aresellt. MI". Evans referred to the discussion at the Board meeting on 41411 12 '1951, concerning the Clayton Act proceeding against Transamerica e°11 0ration. at which time he stated that he intended to present to the Board 44 c114814ere on a schedule for completion of the hearings. Mr. Evans 5/15/51 -2- 41a that thereafter he requested Mr. Hodge to study a possible time schekle and that Mr. Hodge had now formulated recommendations in which he (Mr. Evans) concurred. Mr. Hodge stated that sometime ago Counsel for Transamerica e°rPoration and the Solicitor for the Board asked what could be (lorie about extending the time for filing exceptions, objections, and " 11 8 after receipt of the Hearing Officer's report and for filing 1.6154 briefs) since Rule VII of the Board's Rules of Practice for Formal 4e4tinge required that the former be filed within 15 days after the 114414 Officer's report and Rule VIII required that reply briefs be tiled. Within an additional 10 days. Mr. Hodge said that vacations pre- u* a problem, and that counsel had asked if the matter could be preto the Board for early determination so that they could make plans. Coullse 1 for Respondent, he said, had suggested that they be permitted a -Y Period for filing exceptions after receipt of the Hearing Officer's 41)°rt vhile the Board's Solicitor had suggested that 30 days for filing "Irt and 15 days thereafter for filing replies would be sufficient. kr. 11 °(1ge went on to say that after studying the matter it was his tett) bill "clation that the Board enter an order extending from 15 to 30 4Y6 +4 e r --Lae within which exceptions, objections, and briefs must be °110ving the presentation of the report of the Hearing Officer tr4 Wing rittealt, 15 days thereafter for the filing of reply briefs. This MI% Hodge said, that if the Hearing Officer submitted his report 073 5115/51 1/ June 15 exceptions, objections, and briefs would be due by July 15 ellareply briefs must be filed by July 30. 'be his If this schedule were maintained, Mr. Hodge stated, it would recommendation that the Board set a date two or three days atter the filing of the reply briefs for the presentation of oral arlIllents before the full Board. Ekt He pointed out that by setting dates this time, members of the Board would be able to make the necessary ktratgements in order to be present for the oral arguments. In a comment concerning the setting of time for oral argument betclie the Board, Mr. Evans recommended allowing the Solicitor for the toarA aPProximately 2i hours the morning of the day decided upon and Perraittillg Counsel for Respondent to present his argument for the same 411gth of time during the afternoon. Mr. Evans said that in his opin- 1°11this would be adequate time. Mr- Evans also stated it was his desire that the case be dis- -44 Of as Promptly as possible consistent with fair treatment of the 14trtie,„ - "-I:weaved, and that the establishment of a time schedule by the 1104144 /1°Uld be advantageous to counsel on both sides and to the members c't the , 1 the ,,oard so that they might make appropriate arrangements, although ,44eellel ha,'ule need not be formal and fixed. q- been t1140 He pointed out that the filed in June 1948, that a large number of pages of tes- 644 exhibits had been filed, that opportunity had been given 5/15/51 -4- t"over all phases of the case during the hearings at which he presided "earing Officer; that very generous time allowances had been made hell riecessary to comply with requests of the Board's Solicitor and e°1443e1 for Respondent; and that counsel on both sides were thoroughly c°1117ersant with all the facts of the case and should be able to conclude Presentation within the time schedule recommended by Mr. Hodge. Chairman Martin then called upon Mr. Smith; Special Counsel; who 4" that) in view of the fact that the Solicitor for the Board and Counsel tc)I'ReePondent had asked that the Board set a tentative date for the filing eccePtions, objections, and briefs after receipt of the Hearing Offi"r,s report, there would be in his opinion no objection to doing so. er) if such a request had not been received, he would question the eklis abilitY of the Board taking any action to set the dates until for4141 m °"1-cYll was filed by Counsel for Respondent; because the entering of 811qh 411 order without request could be considered to imply an effort by t4 t to preclude Counsel for Respondent from having the proper time t° 15x. re briefs. Mr. Smith said that it was his opinion that the time DroDoo e(I for the filing of exceptions and briefs was too short. He pointolat that time must be allowed for mimeographing or printing the briefs Et41. tor their transmission to the Board and also that the 30-day period /101114 several weekends and a holiday. He noted that the excepQ41 vo r() required by the Board's rules to include all exceptions to t), 4114g 'Otriceris rulings on evidence which Counsel for Respondent 5/15151 NIA -5- wish to raise, and that there might be hundreds of such excep- I'°0 t' 11s. He went on to bring out that there were points of law involved illthis proceeding on which no court had passed and that the three newer rae*srs of the Board, especially, must familiarize themselves with the ea". Mr. Smith said that the arguments of counsel on both sides would bellsiloful in assisting the Board in deciding the case and that by retoo severely the time before oral arguments the members of the toaa.A plight lose the benefit of arguments which otherwise might be pre- 8eritsd in the briefs. As to the proposed date for presentation of oral exits, Mr. Smith said that the allowance of only two or three days atter fil.ne of reply briefs seemed to him insufficient, especially be441" csr the fact that the members of the Board should take ample time to 8t114 the briefs in order to render a decision on the case. He doubt- that the period of time proposed for the oral arguments would be Chairman Martin stated that it was his opinion, arrived at from 411er 41 exPeriences with noted counsel (in particular Mr. Albert Milbank h -IecAllIsel in the Stock Exchange) that when a matter of fairness was the 1411 1/110 It was wiser to accept the views of the more lenient of two lawyers isagreed. As a new man on the Board he was inclined to side with Sfli reply to Mr. Smith, Mr. Hodge noted that Counsel for ResponIt ha _ °IL tob 41 vauted a preliminary indication from the Board as to the time 10veld and that for the reasons given by Mr. Evans he felt that 5/15/51 -6- ths recommended schedule would allow a sufficient interval, and that in aq event it would not preclude Transamerica for more time. from filing a petition ask- As to the length of time to be allowed for oral argu- 4• 11t 'Mr. Hodge noted the restrictions placed upon the time for the argu• of cases before the United States Supreme Court. Mr. Smith expressed the opinion that Mr. lodge's comparison in this respect was not appropriate because of the fact that when cases reached the p ' 11Preme Court as the result of several appeals there remained few points to be a rgued which had not been covered in the appellate courts. He said tt„ o. be his recommendation that the Board make no determination at this tike "to a time schedule, but that it await the Hearing Officer's report tor a. blUdY of its content and recommendation, since it was difficult to 13rekci the matter pending the receipt and study of this report. At that title 'he said, a determination might be made with regard to any requests ' 101, etsIlsion of time by the Solicitor for the Board or Counsel for Respondet Mr. Evans stated that he did not believe it was practicable to protht 1X1 the manner suggested by Mr. Smith, that he felt it was necessary for tonvcz members to have some idea of the time to be allowed in order to th em to arrange their schedules, and that while the schedule need not th ttra absolutely, he felt the Board should arrive at some decision as to tag of the case. response to a question from Chairman Martin, Mr. Vest said that "lt —Exki all members of the Board who were qualified to act in this case ; -7- 11°tad be present at the time of oral argument. With respect to the recom- 14endations of Messrs. Hodge and Smith, Mr. Vest stated that he felt the would be in a better position to decide the questions of time to be llowed for the various purposes mentioned and of what date should be set tcir oral argument if it had before it for consideration the reasons advanced c °Uneel on each side for their requests. He also said that perhaps in Itiev cf the oral request which he understood counsel for Transamerica and the tkrw,A 4'4 s Solicitor had made for an extension of time for filing briefs, the 110(11,4 . might reach a decision on that question subject to further consideration °11 its merits of any further request that might be made by either side for an 84Clitiom --al extension of time. He stated that it was his understanding that - counsel for Transamerica nor the Solicitor for the Board had asked thet th e time for filing of reply briefs or of oral argument be set at this title 'atd that in view of the circumstances, he felt it would be more approkl -Ette the Board to wait in setting those dates. Mr. Smith stated that he would see no objection to the Board entering ell or, uer at this time reciting that upon receipt of an oral request from the S"tcit r ° for the Board and Counsel for Transamerica the Board was fixing the titti r °r filing of briefs at some date to be determined by the Board provided thztt th tither e Order stated that it was entered without prejudice to the right of °oousel to request a further extension of time. 141r. Rodge then stated that, after consideration in light of discussion hi s meeti, it would be his recommendation that an Order be entered by the tottr, t cl as outlined by Mr. Smith. 51'15/51 -8After some further discussion, Mr. Smith commented that since it4PPeared that granting the present requests from the Solicitor for the Board and Counsel for Transamerica Corporation for an indication °r the time that might be granted for filing exceptions, objections, 814brief5 would be an accommodation to them, he would recommend that, "he basis that Transamerica had specifically requested the Board to enter at this time an Order fixing the time for filing exceptions, objecti°11e) and briefs, the Board enter an Order 'without prejudice to the tight of the Solicitor or Counsel for Respondent to request an extension th e time limits therein prescribed, but that he would strongly recom- tner4 against setting at this time a date for oral argument. Thereupon, upon motion by Mr. Powell, the following Order was adopted, Mr. Eccles having taken no part in the consideration of or action on the matter: "UNITED STATES OF AMERICA BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM IN T TR MATTER OF SAMERICA CORPORATION ORDER FIXING TIME FOR FILING EXCEPTIONS AND BRIEFS .0, The Board is informed by its Hearing Officer that Ce Solicitor for the Board and Counsel for the Respondent 4:Ze orally requested the Board to fix at this time the on which the exceptions, objections, and briefs ' pr erred to in Rules VII and VIII of the Board's Rules of il tdce for Formal Hearings may be filed in this proceedPursuant to such request, it is ORDERED that: -1; ; 1-zP"")(-; . , 5/15/31 -9- "1. Such exceptions, objections and briefs as the Solicitor for the Board and Counsel for Respondent may vish to file pursuant to Rule VII may be filed within 30 days after their respective receipt of the Hearing Officer's report. 2. Reply briefs, as authorized by paragraph (b) cf Rule VIII, may be filed by the Solicitor for the Board and by Counsel for Respondent within 45 days after their respective receipt of the Hearing Officer's report. This order is entered without prejudice to the r tight of the Solicitor for the Board or of Counsel for he Respondent timely to move the Board to enlarge, for good cause, the time limits herein prescribed. This 15th day of May, 1951. By the Board (signed) S. R. Carpenter Secretary 8„ Governor Eccles took no part in the Board's conimeration of or action upon the request referred to in the oregoing Order." At this point Messrs. Evans, Smith, and Hodge withdrew. Before the meeting there had been distributed to the members of the to " cl a memorandum from the staff dated May 15, 1951, setting forth the te °f a proposed Amendment No. 3 to Regulation W, Consumer Credit, 111 '°1/1dtbot ..or changes in the exemption provisions of the Regulation, N4ti 4 to (1) the methods used by a Federal Reserve Bank in designating di 8ter - credits under the Regulation and (2) rental agreements. Upon motion by Mr. Norton, Amendment No. 3 to Regulation W, Consumer Credit, was approved unanimously, effective May 15, 1951, as follows. In taking this action, it was understood that the amendment and a press release in a form satisfactory to Mr. Evans would be sent by telegram to all Federal Reserve Banks and Branches with a request that they arrange for the printing of the amendment and such distribution as they deemed desirable: 5/15/51 -10- "AMENDMENT NO. 3 TO REGULATION W Regulation W is hereby amended in the following respects, effective May 1), 1951: 1. By amending subsection (j) of section 7 to read as follows: t(i) Disaster Credits. - Any credit of a kind clesignated by a Federal Reserve Bank under this subsection as a result of a flood or other similar disaster which the Federal Reserve Bank determines has created within its district an emergency affecting the credit needs of a substantial number of the inhabitants of the stricken area. This exemption shall 121Y only within such areas and during such periods, shall be subject to such other conditions, as the Federal Reserve Bank may prescribe.' 2. By amending subsection (1) of section 7 to r,tla as follows: '(1) Certain Rentals. - Any rental, leasing or "'ailment contract or arrangement (1) for a specified of not more than 3 months if (i) the transis to be terminated, and the article returned the Registrant, on or before the expiration of the rvecified period, and (ii) the transaction is not tellevable and does not directly or indirectly relate ,c/ °r involve any subsequent lease, use of, or other rest in, the article or any similar article; or eXisting during 1950 between the Registrant and 1,11. 1e au-Ligor, or any bona fide continuation or modiareation thereafter of such existing contract or art:tgement, which (i) does not expand the number of Cl outstanding between the Registrant and the th or beyond the maximum number outstanding between 04! Itt ally one time during 1950, and (ii) does not ' 1-se alter the essential nature of the original co -11 ntract or arrangement." 2 Unanimous approval also was given to a statement for publication in the Federal Register reading in part as follows: 1401.. "(a) The above amendment to Regulation W is issued 0 „ (-3.r the authority of section 5 (b) of the Act of ber 6, 1917, as amended, U.S.C., Title 50, App., 1941/kb); Executive Order No. 8843, dated August 9, cuir,',e.nd the 'Defense Production Act of 1950', partisection 601 thereof. 5/15/51 -11- "The purposes of the amendment are to provide certain technical changes in the provisions of the regulation exempting certain disaster credits and certain rentThe change relating to disaster credits primarily concerns the method to be used by a Federal Reserve Bank in designating disaster areas under the regulation. The imary purpose of the other change is to add to the proof the regulation concerning certain temporary z:entals, a provision permitting the continuation of certain rental arrangements in effect during the year 1950. "(b) These amendments were adopted by the Board !fter consideration of all relevant matter, including ;hat presented to it pursuant to a,notice published in ' 415 P. R. 8856, December 14, 1970, 2 222.126, relating 'Rental Transactions'. Special circumstances renered impracticable further consultation with industry t re e resentatives, including trade association representai,"8/ in the formulation of the above amendment, especially .: view of the relaxing and technical nature thereof; i;:d$ therefore, as authorized by section 709 of the ! i ense Production Act of 1950, the amendment has been °red Without such further consultation. Section 709 he Defense Production Act of 1950 provides that the .6:!.ctions exercised under such Act shall be excluded from r° oPeration of the Administrative Procedure Act (60 ,Cat u •except as to the requirements of section 3 . 34), ther;4 V or to There was presented a memorandum from Mr. Hilkert, Acting Direc- the Division of Personnel Administration, prepared under date of ADril 2 ' 7 1951, which had been circulated among the members of the Board Drior to consideration at a meeting. The memorandum referred to the 4€geSti n 4 N,trti °- -n the Price, Waterhouse & Company report on the Board's 400 4.tion and procedures dated June 9, 1950, that the Civil Service tit PolicY followed by the Board be abandoned in favor of a policy 114r t0 that generally followed by most business organizations and the .0 -uederal Reserve Banks and recommended that, for reasons stated the 111°1'andum, the Board continue to adhere to its present annual ii 5/15/31 9 -12- 441 sick leave policies at least until such time as changes in policies 111r be made by the Government. This recommendation was approved unanimously. Before the meeting there had been distributed to the members of tIle Board a memorandum from the Personnel Committee dated May 14, 1951, attaehine a schedule setting forth proposed salaries for the officers of the ederal Reserve Bank of Dallas, as submitted by that Bank, for the Year beginring June 1, 1951, and a memorandum from the Division of PerAdministration dated May 7, 1951. The latter memorandum stated that r -ePresentatives of the Division of Personnel Administration and the Ofric e °II the Secretary had reviewed the proposed salaries for conformance Vith eood sa lary administration and the maintenance of desirable relationh1n the Bank and with other Federal Reserve Banks and that it 44eered that in every case proper relationships had been maintained and 11° clIzestion was raised with respect to any of the proposed salaries. Following a statement by Mr. Norton that it was the recommendation of the Personnel Committee that the salaries be approved as submitted, it was agreed unanimously, upon motion by Mr. Norton, that the Federal Reserve Bank of Dallas be advised informally that if submitted _formally the official salaries would be approved at the rates specified in the memorandum of May 7, 1951, referred to above. 141'• Norton presented a memorandum dated May 11, 1951 stating 5/15/51 -13- that "May 10 the Housing and Home Finance Administrator recommended that „ 'Jar Lake, New York, be designated a defense area for the purpose "Permitting special terms for credit in cOnnection with housing under Re latio X/ Real Estate Credit, that as a result of a survey made by the a " ° inG and Home Finance Agency it had been determined that there was at ur eent need for 75 housing units to be located within commuting distarIce of the Benson Mine, of the Jones-Laughlin Ore Company, that the Derer se Production Administration had certified this area as a defense (tree. I, Or Purposes of special assistance, and that the Administrator reco, ' 44telacied- that if the designation of the defense area was concurred 13 , 4 the Board the schedule of relaxed credit terms be the same as 813111'011a A -u for Atomic Energy Commission installations in South Carolina, Xeritti -e-Y, and Idaho. Thereupon, upon motion by Mr. Norton, unanimous approval was given to a letter to Mr. Foley, Housing and Home Finance Administrator, as follows: coil "This is to advise you that the Board of Governors ' e in your designation of the Star Lake, New York, area as cul vhial‘defense area for the purposes of defense construction to 8Pecial credit terms may be applicable under section 6 114 ; 11 of Regulation X, Real Estate Credit. Your letter of 75 1,4, 1951, states that there is a need for approximately "eing units, for sale or rental, to be located within rea; ila4ble commuting distance of the defense establishments area. Under the terms of the exemption, the entire , S will be controlled by your agency through the " iss, "e: ce of specific certificates. or t In accordance with your suggestion, the relaxation thate11218 Prescribed by Regulation X will be identical with illst Previously announced for the Atomic Energy Commission ealations in South Carolina, Kentucky, and Idaho." 75 uj 5I115/51 At this point all of the members of the staff with the excepMes.srs. Carpenter, Sherman, Murff, and Kenyon withdrew, and the ti°11 " 04 stated with respect to each of the matters hereinafter referred to taken by the Board: Minutes of actions taken by the Board of Governors of the Federal SYstem on May 14, 1951, were approved unanimously. Memorandum dated May 3, 1951; from Mr. Young, Director of the °11 of Research and Statistics, recommending the appointment of Mrs. R. Carroll as a clerk in that Division, on a temporary indefinite beai 8)'with basic salary at the rate of $2,810 per annum, effective as of ate upon which she enters upon the performance of her duties after }18-1/111 • Passed the usual physical examination, and subject to the completion or a atisfactory employment investigation. Approved unanimously. Mem --orandum dated May 11, 1951, from Mr. Bethea, Director of the ti1l1S1 °4 of Administrative Services, recommending the appointment of Thomas 11.Tb an operator, duplicating devices, in that Division, on a 4.44.13.1. basis for a period of two months, with basic salary at the rate : c) 145° Per annum, effective as of the date upon which he enters upon 1e"°1 ' 41a4ce of his duties after having passed the usual physical -4111111atiall,and subject to the completion of a satisfactory employment 111./e8tigation. Approved unanimously. 5/15/51 -15Memorandum dated May 11, 1951, from Mr. Bethea, Director of the klrisi°n of Administrative Services, recommending that the temporary %ointment of Miss Lettie E. Green, a charwoman in that Division, be eZterld„ on a temporary indefinite basis effective May 26, 1951, with no chat.— in her present basic salary at the rate of $2,120 per annum. Approved unanimously. Memorandum dated May 11, 1951, from Mr. Betheal Director of the kvi.4 of Administrative Services, recommending that the temporary 41111tillent of Saul Clanton, a laborer in that Division, be extended on a tell1Do ral*,Y indefinite basis effective May 19, 1951, with no change in his ireset basic salary at the rate of $2,252 per annum. Approved unanimously. kzat Letter to Mr. Stetzelberger, Vice President of the Federal Reserve c)f C leveland, reading as follows: lett "In accordance with the request contained in your 'of May 10, 1951, the Board approves the appointmelltel Walter H. MacDonald as an assistant examiner for .toe)*Zett Reserve Bank of Cleveland. Please advise us the date upon which the appointment becomes effective." Approved unanimously. Letter to Mr. McCormick, Chairman of the Federal Reserve Bank of ,utotd. Pared in accordance with the understanding at the meeting of th t oard °I1 May 1, 1951, reading as follows: seaa "The Board of Governors approves the payment of terj%, t ,° Mr. Hugh Leach as President of the Federal ReIlk of Richmond at the rate of $25,000 per annum ' 5/15/51 -16- "and to Mr. J. S. Walden, Jr. as First Vice President of the Federal Reserve Bank of Richmond at the rate of $18,000 per annum for the period June 1, 1951, through MaY 311 1952. "The Board of Governors also approves the payment Of salary to the following officers at the rates indicated for the period June 1, 1951, through May 31, 1952. According 1 to your letters of March 15, 1951, and May 10, 951, these are the rates which have been approved by the board of Directors. Name Annual Salary Title Egyard A. Wayne $17,000 Vice President W. Mercer 13,000 Vice President & Cashier . B. Strathy Vice President & Secretary 12,500 mfalltley Watson 13,000 Vice President Z141", W. Williams 13,000 Vice President :* L. Armistead 12,000 Vice President ton s. 9,600 President Martin Assistant Vice t ward Waller, 8,400 Assistant Cashier Jr. Jose 1. 1,4,4 Pu M. Nowlan 8,5oo Assistant Cashier he B. Wakeham 7,800 Assistant Cashier valles W. Dodd Jr. 7,800 Assistant Cashier j()ba L. Nosker ) 7,800 Assistant Cashier . Brock, 101)00 Auditor Jr. ' reY N. Heflin lol000 Counsel •Harold 8,500 Snead. Chief Examiner Baltimore Branch W. o R. Milford 15,000 Vice President Q1441(1 F. Ha er 10,500 Cashier Jo ha A. John 8,500 ton Assistant Cashier Be vu C. 7,800 Wienert Assistant Cashier s -Illard F. Armstrong 71)00 Assistant Cashier Charlotte Branch Isl.otbert L. 13,000 Vice President Cherry 11 80Pe A. , 9,600 Ligon Cashier tv.u7rt L. 7,500 Honeycutt Assistant Cashier Clinton Mondy 7,000" Assistant Cashier l e Approved unanimously. Letter to Mr. Weigel, Secretary of the Federal Reserve Bank 1118) Prepared in accordance with the understanding at the 5/15/51 -17- "tag of the Board on May 1, 1951, reading as follows: "The Board of Governors approves the payment of salary to the following officers at the rates indicated for the period June 1, 1951, through May 31, 1952. According to your letter of May 10, 1951, these are the rates which have been approved by the Board of Directors. Annual Salary Name Title Wm. E. Peterson iE,500 Vice President Frederick 11,000 L. Deming Vice President Howard H. Weigel 10,000 Vice President & Secretary Joseph C. Wotawa 10,000 President Vice Dale M. Lewis 10,000 Vice President S. P. Gilmore 10,000 Assistant Vice President J. H. Gales 9,500 Assistant Vice President P. N. Hall 8,000 President Vice Assistant C. 0, Hollocher 8,000 President Vice Assistant Earl R. Billen 8,000 Assistant Vice President John J. 8l000 Assistant Vice President Christ Harold B. Kline Counsel & Assistant Secretary 9,000 George W. Hirshman 7,200 General Auditor Little Rock Branch C. M. Stewart 12,000 Vice President & Manager Clifford Wood 6,8co Assistant Manager ClaY Childers ) 1800 Assistant Manager W. J. Bryan Assistant Manager )000 Louisville Branch C. A. 12,000 Schacht Vice President & Manager Fred 'Slow Burton Assistant Manager 615oo Arthur Assistant Manager 6,000 Moore Assistant Manager Branch Memphis 1). E. 10,000 Vice President & Manager Schroeder 7,500 Fs.i4Martin Assistant Manager 0. X. 7,000 Belcher Manager Assistant Ile C. 5,800 Manager Anderson Assistant the The Board also approves the payment of salary to Deri21l0wing officers at the rates indicated for the --‘4 May 10, 1951, through May 31, 1951: , Name Annual Salary Title euerick L. Deming $10,000 President Vice 'f'vara H. Secretary 9,500 Vice President & ;"1°ElePh C. Weigel 9,000 Vice President Wotawa -ale M. Lewis 9,000" Vice President Approved unanimously. 5/15/51 -18Letter to Mr. Shepard, Federal Reserve Agent of the Federal lellre Bank of Minneapolis, reading as follows: "In accordance with the request contained in Mr. reYton's letter of May 11, 1951, the Board of Governors ,Pproves, effective May 16, 1951, the payment of salaries 10 the following named members of the Federal Reserve Agent's staff at the rates indicated: Annual Salary Title Name Head Office M. G. Anderson Alternate Assistant Federal $4,695.00 Reserve Agent 4. S. Ferrian Alternate Assistant Federal 5,760.00 Reserve Agent John Johnson Alternate Assistant Federal 5,340.00" Reserve Agent Approved unanimously. Letter to Mr. Dearmont, Federal Reserve Agent of the Federal %Ire, .u'enk of St. Louis, reading as follows: In accordance with the request contained in : " I 1r letter of May 10, 1951, the Board of Governors aptn°Zes, effective June 1, 1951, the payment of salary S. Dawson, Federal Reserve Agent's Represen.`'ye, Little Rock Branch, at the rate of $5,160.00 Per ammal.fl t-e-t7r. Win. Approved unanimously. tlg Letter to the Presidents of all Federal Reserve Banks, reading 4.011011s: ceri _tt church organized on a nationwide basis has a "''ral organization, which, in turn, has boards and -'eacies • The church also has regional organizations Vhicl„ 81011") in turn, have a number of congregations an. !lasEach such unit of the church is a corporate entity. vitcl sometimes is extended by such units in connection neli construction being purchased or constructed by 5/15/51 -19- other units of the church. The question has been raised whether the credit is subject to the provisions of Regulation X. "The credit is not subject to the regulation if the new construction is a church because section 2(r)(3) of the re gulation excludes churches from the definition of 'nonlesidential structure'. However, credit extended to fi' Ilance the purchase or construction of new construction covered by the regulation is subject to the regulation '/hen the unit of the church extending the credit is a legistrant, that is, if the unit has made sufficient ex1,ensions of credit to be deemed to be engaged in the business of extending real estate credit. So long as bich units are corporate entities, the funds borrowed must t:_ considered as funds of the units lending them rather "ez funds of the over-all church organization. 'It may be noted, however, that the regulation does c'ut affect in any way the purchase or construction of new ' 4 nstruction by a unit of the church in possession of the : i_cessary funds, or its participation on an equity basis 41 the construction or purchase of new construction by saaother unit of the church." Approved unanimously.
@FedFRASER