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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Saturday, May 28, 1927, at 10:45 a.m. PRESENT: PRESENT ALSO: Governor Criss inger Mr. Platt Mr. Hamlin Mr. Miller Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Mr. Wyatt, General Counsel Mr. Vest, Assistant Counsel The Governor stated that the meeting was called for the purpose of sUbmitting to the Board draft of a letter addressed to the First Federal Foreign Investment Trust of New York City, prepared by Counsel in accordWith the understanding and along the lines of the discussion at the 34°°ting of the Board yesterday. Mr. Viyatt then read to the Board the letter drafted by him. There follaved a discussion during which numerous changes in the letter were etgested by the individual members of the Board, and it was finally conelUded that a letter such as was presented by Counsel should not be used. It vras suggested that the Board should merely advise the First Federal ?ore. lgn Investment Trust that it will be impossible to act upon the pro- Pose,4 bond issue of the corporation by June 1st, the date upon which the °°rPorat ion advises it wishes to make the issue, particularly in view of the fact that certain information regarding the proposed issue was not received by the Board until yesterday. It was the consensus of opinion '4'44 Within a week or so the Board could adopt a revision of its Regulation 1CI:tnd that the bond issue proposed by the First Federal Foreign Investment IrUst had better be considered under the revised Regulation. It was 13°inted out that it might be contrary to the spirit of the Edge Act 1.:(36 5/28/27 -2- 14 chould the Board permit the corporation to make the issue without reference to it. Mr. Bumlin suggested thut the Board's Counsel be directed to proceed to New York for an interview with Governor Strong of the Federal Reserve Bank of Nev York, and Mr. Albert Rathbone, of the law firm of Larkin, Rathbone and Perry, for the purpose of working out a tentative draft of a revision of Regulation K for submission to the Board. Following the discussion, Mr. Miller moved that a telegram be addressed to the First Federal Foreign Investment Trust, as follows: "Board has just received from ;fines, Rearick, Dorr, Travis and Marshall their letter 1,14y 25th submitting data amendatory of that previously filed with Board. I am instructed to advise you that it will be impossible for Board to act on your application to issue debentures by June 1st and probably not before June 15th." Mr. Miller's motion, being put by the Chair, was carried, Mr. Platt voting noft. Mr. Miller then moved that the Board's Counsel be instructed to prepare for submission to the Board a tentutivo redraft of Regulation K, and that the Governor of the Board be authorized to employ such special counsel as may be required in connection with the revision of the regulation, at a fee to be determined by him, not exceeding 81,000. carried. The Secretary then presented the folloming telegram to the Chairman Of the Federal Reserve Dank of Richmond, referring to letter addressed to the Doard under d;)-te of I.day 27th, with regard to the opening of the probranch of the Richmond bank at Charlotte, North Carolina: "Your letter 27th re Charlotte Branch. Board at meeting this morning considered question of personnel , 5/28/27 -3- only and interposes no objection to your selections and nuriber of employees. question of any increases in salaries of officers and clerks receiving more than 2,500 per annum, who may be transferred from head office is one which Board will consider later. Other matters referred to in your letter will be considered at early meeting of the Board." Upon motion, the proposed telegr,14a was approved. At this point, Messrs. "Iyatt and Vest withdrew from the room and Mr. acIntosh joined the me r tinF,. The Governor presented application of The Continental National Bank Of Indianapolis, Indiana, for permission to exercise general fiduciary Powers, together with a recommendE.tion of Messrs. Hamlin and Platt, liae*ers of the Board's Law Coramittee, that action thereon be deferred. McIntosh submitted certain information regarding the condition of thebank and stated that in his opinion the application should be apProved. The recoiamendat ion of the Federal Reserve Agent at Chicago that approval be deferred, was based, the Comptroller stated, upon cert4in comments made by one of the rational bank examiners in the confidential section of the report of the last examination of the bank, hich comments should not be taken into consideration when acting upon the aPPlication. Messrs. Hamlin and Platt then stated that their recomIlle ndation was based primarily upon that of the Federal Reserve Agent, 111(1 in view of the statement of the Comptroller and the information as to the condition of the applicant bank furnished by the Comptroller, they Wer_ prepured to change their recoaaenclat ion so as to recommend approval. 141 ' . i1ler expressed the opinion that the matter should be given thorough (:11181deration and moved that the application be made special order of 168 5/28/27 -4- business for a meeting of the Board to be held on next Tuesday, and that the file in the meantime be circulated for the information of the members 0 the Board. The Governor pointed out that prompt action by the Board le requested as the applicant bank has been offered a trusteeship under 4 large bond issue to be completed June 1st. Mr. Hamlin moved as a substitute for Mr. Miller's motion that the application of The Continental National Bank of Indianapolis, for permission to exercise general fiduciary powers be approved. It. Hamlin's substitute motion, being put by the Chair, was carried, Mr. Miller voting "no". The meeting adjourned at 12:1 f p.m. A Secretary APProved:
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