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Minutes for To: Members of the Board From: Office of the Secretary May 21, 1962. Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement With respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If You were not present, your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell Minutes of the Board of Governors of the Federal Reserve System °r1 Monday, May 21, 1962. PRESENT: Mr. Mr. Mr. Mr. Mills, Acting Chairman Robertson Shepardson Mitchell Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Circulated items. to The Board met in the Board Room at 10:00 a.m. Sherman, Secretary Kenyon, Assistant Secretary Fauver, Assistant to the Board Hackley, General Counsel Farrell, Director, Division of Bank Operations Solomon, Director, Division of Examinations Hooff, Assistant General Counsel Leavitt, Assistant Director, Division of Examinations Spencer, General Assistant, Office of the Secretary The following items, which had been circulated the members of the Board and copies of which are attached to these 11111114es under the respective item numbers indicated, were approved 144941mously: Item No. cttetter to First State Rank, Churdan, Iowa, 411aving an investment in bank premises. 1 laletter to Rank of Memphis, Memphis, Missouri, 15151(Wing an investment in bank premises. 2 Itter to Ravalli County Bank, Hamilton, b,Iltena, approving an investment in bank —emises. 3 tett he er to First National Bank in Newton, tol/t°4, Illinois, approving its application fiduciary powers. 5/21/62 -2Item No. Letter to The First National Bank of Arvada, Arre4ta, Colorado, approving its application ror limited fiduciary powers. 5 Letter to The Ashville Bank, Ashville, Ohio, ! nterposing no objection to a dividend geelared in December 1961. 6 Letter to Richview State Bank, Richview, Illinois, waiving the requirement of six 11.1onth6' notice of withdrawal from membership Ilathe Federal Reserve System. 7 Letter to the Federal Reserve Bank of Kansas indicating that the previously granted ellassion for East Side State Bank, Wichita, 24sas, to carry reduced reserves will continue von that bank's conversion to a national bank. 8 atetter to The Niles Bank Company, Niles, Ohio, .?Proving the establishment of a branch at ‘kingstawn-Warren Road and Niles-Cortland Road. 9 Letter to Mutual Trust and Deposit Company, New 10 t Indiana, approving an extension of time * "0 establish a branch in Floyds Knobs. 11 aletter to Bank of Las Vegas, Las Vegas, Nevada, 1313roving the establishment of a branch in vicinity of West Charleston Boulevard and 4Jecatur Road. 4 12 ter to Walker Bank & Trust Company, Salt establishment or e City, Utah, approving the 0 ,a branch at Washington and Eighth South ets, branch operations at 450 South Second jt Street to be discontinued simultaneously ve h the establishment of the new branch. V Resort on co etitive factors (Jenkintown-Ro rsford Pennsylvania). cil'aft of report to the Federal Deposit Insurance Corporation on the 5/21/62 -3- conlpetitive factors involved in the proposed merger of Industrial Valley Bank and Trust Company, Jenkintown, Pennsylvania, and The National 88411. of Royersford, Royersford, Pennsylvania, had been distributed with MeMOrandUM from the Division of Examinations dated May 14, 1962. The conclusion in the report read as follows: Investigation discloses virtually no competition between Industrial Valley Bank and Trust Company, Jenkintown, Pennsylvania, and The National Bank of Royersford, Royersford, Pennsylvania. The merger of these two banks would have little or no effect on banking competition in Philadelphia or the Jenkintown area but would probably increase competition in the Royersford service area. The report was approved unanimously for transmittal to the ecaToration. The meeting then adjourned. Secretary's Note: Governor Shepardson today approved on behalf of the Board the following letters: No Letter to the Federal Reserve Bank of New York (attached Item ) approving the appointment of Raymond E. Talbot as examiner. Letter to the Federal Reserve Bank of Philadelphia (attached approving the appointment of Barry J. Case as assistant "mlner. Item u Letter to the Federal Reserve Bank of Richmond (attached Item L5) approving the designation of Russell H. Sherry as special ' 481stant examiner. Letters to the Federal Reserve Bank of San Francisco (attached Item Rhe.Ls 16 and 17) approving the appointment of Allen F. Goodfellow and -%n J. Maguire as examiners. C, Seeret.ry BOARD OF GOVERNORS i‘teNttitrO*, CliN011;*4 OF THE 4 Eftrr .* FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 1 5/21/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE SOARD Eat& ott*** May 21, 1962. Board of Directors, First State Bank, Churdan, Iowa. Gentlemen: The Board of Governors of the Federal Reserve System approves, under the provisions of Section 24A of the Federal Reserve Act, an investment in bank premises. by First State Bank of26,040..15, for the purpose of remodeling its bank premises. It is understood that the remodeling program has been completed and bank premises are now carried on the books of the bank at ,(325,000. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 2 5/21/62 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 21, 1962 Board of Directors, Bank of Memphis, Memphis, Missouri. Gentlemen: The Board of Governors of the Federal Reserve System approves, under the provisions of Section 24A or, the Federal Reserve Act, an investment in bank premises by }link of Memphis, Memphis, Missouri, of $130,000 for the purchase of land and construction of new bank premises. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. is , 4041,14** -r* 44 Oil a 14%.0 4 BOARD OF GOVERNORS OF THE Item No. 3 5/21/62 FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD tad', May 21, 1962. Board of Directors, Ravalli County Bank, Hamilton, Montana. Gentlemen: The Board of Governors of the Federal Reserve System approves, under the provisions of Section 24A of the Federal Reserve Act, an investment in bank premises by Ravalli County Bank of not to exceed $130,000, for the purpose of constructing new banking quarters, including the cost of land. It is understood that, in accordance with approval given by the Superintendent of Banks of the State of Montana, (1) both capital stock and surplus Of the bank will be increased to $125,000, and (2) the bank's investment in fixed assets, including furniture and fixtures will at no time exceed 50 per cent of the aggregate of capital stock, surplus, and undivided profits accounts. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. A 0,13, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 4 5/21/62 ADDREBB OfFICIAL CORRESPONDENCE TO THE BOARD May 21, 1962. Board of Directors, !irst National Bank in Newton, newton, Illinois. G entlemen: The Board of Governors of the Federal Reserve System , 1, 1a6 given consideration to your application for fiduciary rbiers and grants First National Bank in Newton authority to when not in contravention of State or local law, as trustee, necutor, administrator, registrar of stocks and bonds, guardian estates, assignee, receiver, committee of estates of lunatics, in any other fiduciary capacity in which State banks, trust ! it l!Panies,.or other corporations which come into competition 0:744 national banks are permitted to act under the laws of the ' lo cate of Illinois. The exercise of such rights shall be ebisct to the provisions of Section 11(k) of the Federal 1,:esrve Act and Regulation F of the Board of Governors of the tiers' Reserve System. A formal certificate indicating the fiduciary powers theit _0 Y ur bank is now authorized to exercise will be forwarded 'Ale course. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 5 5/21/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 21, 1962. Board of Directors, The First National Bank of Arvada, Arvada, Colorado. Gentlemen: The Board of Governors of the Federal Reserve System has given consideration to your application for fiduciary powers and grants The First National Bank of Arvada authority to act, When not in contravention of State or local law, as executor, exercise of such administrator, and guardian of estates. The 11(k) of Section rights shall be subject to the provisions of of Board the the Federal Reserve Act and Regulation F of Governors of the Federal Reserve System. ry powers A formal certificate indicating the fiducia ed forward be will that your bank is now authorized to exercise ln due course. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE Item No. 6 FEDERAL RESERVE SYSTEM 5/21/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 21, 1962. 1 of Directors, kal'°Ashville Bank, Obio. Ge ntlemen: The Board of Governors has received from Mr. Paul C. Stetaelberger, Vice President of the Federal Reserve Bank of tieleveland, a letter written by Nr. C. D. Kraft, Cashier of The ashville Bank, dated April 28, 1962, requesting retroactive JProval for the declaration of a dividend of $6,250 made in -0.tecember 1961. The Permission of the Board for the declaration 6, this dividend is necessary under the provisions of paragraph ti ,Section 9 of the Federal Reserve Act and Section 5199(b), ....Lted States Revised Statutes. It is contemplated under the statute that the Board's IlDtval will be obtained prior to the declaration of a dividend sin necessary. Prior approval cannot be given to this dividend e it was declared in December 1961. The Board, however, has jetverl careful consideration to the facts presented in Mr. Kraft's ter and makes no objection to the declaration of this dividend. This letter does not authorize any other declaration of "Idends during 1962 or later. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. L.1(14 BOARD OF GOVERNORS OF THE ( 4 \ 4! ''' '4' :4Nt ..t, A Item No. FEDERAL RESERVE SYSTEM 7 5/21/62 WASHINGTON 25, D. C. ' * ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD ttoo*** May 211 1962. Hoard of Directors, Richview State Pank, Richview, Illinois. Gentlemen: The Federal Reserve Bank of St. Louis has forwarded to the Poard of Governors your letter dated April 30, 1962, and a resolution of your board of directors dated April 17, 1962, signifying your intention to withdraw from membership in the Federal Reserve System and requesting waiver of the six months' notice of such withdrawal. In accordance with your request, the 'oard of Governors waives the requirement of six months' notice of withdrawal. Upon surrender to the Federal Reserve 7ank of St. Louis of the Federal Reserve Pank stock issued to your institution, such stock will be canceled and appropriate refund yill be made thereon. Under the Provisions of section 10(c) of the 13oard's Regulation H, your Institution may accomplish termination of its meplbership at any time within eight months from the date the notice of intention to withdraw from membership was given. It is requested that the certificate of membership be returned to the Federal Reserve 'ank of St. Louis. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1_889 BOARD OF GOVERNORS OF THE 41, i FEDERAL RESERVE SYSTEM t * WASHINGTON 25. D. C. * * Item No. 8 5/21/62 ADDRESS orricIAL CORRESPONDENCE TO THE EIOARD ,SrfaltP%.' ' May 21, 1962. 1,1* * L. F. Mills, Vice President, "deral Reserve Bank of Kansas City) /CtInsas City 6, Missouri. Dear Mr. Mills: This refers to your letter of May 4 inquiring whether it Vill be necessary for the East Side State Bank, Wichita, Kansas, to make application to the Board, when it converts to a ri again 1t1 2 ona1 bank, for permission to continue to carry the same eserves against deposits as are required to be maintained by e^Ilks located outside of central reserve and reserve cities. ion It is the Board's understanding that such a convers the J,41der section 5154 of the Revised Statues does not destroy dentity of the bank or its corporate existence but simply results with the same 4 continuation of the same corporate entity changed jurisa cliglIts) powers, and privileges although under rights, powers, the a„!tinn. Since the corporate existence and be affected not b"q privileges of the East Side State Bank will corporation ed ,ItEi conversion into a national bank, the convert sly granted previou 1 continue to have the permission which was Carry reduced reserves. I J Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS otter** OF THE Item NO. 9 FEDERAL RESERVE SYSTEM 5/21/62 WASHINGTON 25, D. C. ADDRESS TrIcam- CORRESPO TO THE BOARD Pat 4440* May 21, 1962 Board of Directors, The Niles Bank Company, Niles, Ohio. Gentlemen: The Board of Governors of the Federal Reserve SYstem approves the establishment of a branch by The Niles Bank Company, Niles, Ohio, in a shopping center at the southmest corner of the intersection of Youngstown-Warren Road and Niles-Cortland Road, Niles, Ohio provided the branch is established within six months from the date of this letter. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. DENDE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25, D. C. Item No. 10 5/21/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 21, 1962. ! °Etrd of Directors, TliAtal Trust and Deposit Company, Albany, Indiana. Gentle.men: The Board of Governors of the Federal Reserve System : ;1)ct1/Ids to July 7, 1962, the time within which Mutual Trust and sit Company, New Albany, Indiana, may establish a branch in Unincorporated community of Floyds Knobs, Indiana, under the gixthoritY granted in the Board's letter dated August 11, 1961. e Very truly yours, (signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1892 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 11 5/21/62 WASHINGTON 25. O. C. ADDRESS orractAL CORRESPONDENCE TO THE BOARD May 21, 1962. Board of Directors, Bank of Las Vegas, Las Vegas, Nevada. 'Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of an in-town branch by Bank of Las Vegas in the vicinity of the intersection of West Charleston Boulevard and Decatur Roads provided the branch is established within one year of the date of this letter. It is understood that cash dividends are to be limited to $1.25 per share for June and December 1962 and that capital stock is to be increased $562,500 by payment of a stock dividend from surplus and undivided profits, as required by the Superintendent of Banks for the State of Nevada. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1893 BOARD OF GOVERNORS OF THE Item No. 12 FEDERAL RESERVE SYSTEM 5/21/62 WASHINGTON 25, D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 21, 1962. Board of Directors, Walker Bank & Trust Company, Salt Lake City, Utah. Gentlemen: The Board of Governors of the Federal Reserve System approves the establishment of a branch by Walker Bank & Trust Company, Salt Lake City, Utah, at the southeast corner of the intersection of Washington and Eighth South Streets, Salt Lake City, Utah, provided the branch is established within six months from the date of this letter, and provided further that branch operations now conducted at 450 South Second West Street, Salt Lake City, are discontinued simultaneously with the establishment of the above branch. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDEPAL RESERVE SYSTEM • Item No. 13 5/21/62 WASHINGTON 25. D. C. ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 22) 1962. CONFIDENTIAL (FR) Mr. Howard D. Crosse, Vice President, Federal Reserve Bank of New York, New York 45, New York. Dear Mr. Crosse: In accordance with the request contained in your May 10, 1962, the Board approves the appointment of letter of Raymond E. Talbot as an examiner for the Federal Reserve Bank of New York, effective today. It is noted that Mr. Talbot is indebted to The Hibernia Bank, San Francisco, California, a nonmember bank located in Federal Reserve District No. 12, and that the loan is to be liquidated within the next two weeks. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. :1S9 BOARD OF GOVERNORS oito tt** OF THE % 4ie kt Item No. 14 5/21/62 FEDERAL RESERVE SYSTEM :r * WASHINGTON 25. D. C. 44,70 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 21, 1962. CONFIDENTIAL (FR) Mr. Joseph R. Campbell, Vice President, Federal Reserve Bank of Philadelphia, Philadelphia 1, Pennsylvania. Dear Mr. Campbell: In accordance with the request contained in your letter of May 11, 1962, the Board approves the appointment of Barry J. Case as an assistant examiner for the Federal Reserve Bank of Philadelphia. Please advise the effective date of the appointment. It is noted that Mr. Case's father is Director of Publicity for Fidelity-Philadelphia Trust Company, Philadelphia, Pennsylvania, a State member bank, and that you will not assign Mr. Case to participate in any examination of that bank so long as his father is connected with it in any capacity. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1896 BOARD OF GOVERNORS to: MIT*4. OF THE 44 epeop, % FEDERAL RESERVE SYSTEM 21* WASHINGTON 25, D. C. Item No. 15 5/21/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD '0,4tent -°4401,4 May 21, 1962. Mr. John L. Nosker, Vice President, Federal Reserve Bank of Richmond, Richmond 13, Virginia. Dear Mr. Nosker: In accordance with the request contained in your letter of May 9, 1962, the Board approves the designation of Russell H. Sherry as a special assistant examiner for the Federal Reserve Bank of Richmond for the purpose of participating in examinations of State member banks only. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 1897 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 16 5/21/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 211 1962. CONFIDENTIAL (bit) Mr. H. E. Hemmings, First Vice President, Federal Reserve Bank of San Francisco, San Francisco 20, California. Dear Mr. Hemmings: In accordance with the request contained in your letter of May 10, 1962, the Board approves the appointment of Allen F. Goodfellow, at present an assistant examiner, as an examiner for the Federal Reserve Bank of San Francisco, effective July 1, 1962. It is noted that Mr. Goodfellow is indebted to The Hibernia Bank, San Francisco, California, a nonmember bank. Accordingly, the Board's approval of the appointment of Mr. Goodfellow is given with the understanding that he will not participate in any examination of that bank until his indebtedness has been liquidated. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. 159S BOARD OF GOVERNORS 444;01s6004, *4r )1 cc, OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. 41 Item No. 17 5/21/62 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD May 211 1962. Mr. H. E. Hemmings, First Vice President, Federal Reserve Bank of San Francisco, San Francisco 201 California. Dear Mr. Hemmings: In accordance with the request contained in your letter of May 10, 1962, the Board approves the appointment of Hugh J. Maguire, at present an assistant examiner, as an examiner for the Federal Reserve Bank of San Francisco, effective July 1, 1962. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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