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975
Minutes of actions taken by the Board of Governors of the
Federal Reserve System on Wednesday, May 28, 1952.
the
Board Room at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
The Board met in
Szymczak, Chairman pro tem.
Evans
Powell
Mills
Robertson
Carpenter, Secretary
Sherman, Assistant Secretary
Kenyon, Assistant Secretary
Thurston, Assistant to the Board
Riefler, Assistant to the Chairman
Vest, General Counsel
Sloan, Director, Division of
Examinations
Mr. Chase, Assistant Solicitor
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Governor Szymczak read the text of a United Press news dispatch
dated
27, 1952, stating that Transamerica Corporation had filed suit
aaj-net the
Board in the United States Circuit Court of Appeals in PhilaIa. Petitioning the Court to review and set aside the Board's orders
dated
March 27, 1.952, in proceedings under the Clayton Act entitled "In
the ma
tter of Transamerica Corporation". The dispatch also indicated
that
in addition, Transamerica had filed with the Court an application
for le
ave to adduce additional evidence upon a hearing before the Board.
14r. Vest stated that he was informed by a representative of United
?rens la
St night that Transamerica Corporation had issued a press release
the West Coast announcing that such a suit had been filed. He said that
5/28/52
-2-
thePetition to the Court presumably filed by Transamerica Corporation,
8° far as he knew, had not yet been received by the Board. When it was
received, the full particulars of the case would become known.
Mr. Chase explained that the statutes provide for a petition to
-- and application for leave to adduce additional evidence, whereupon,
aocordi
rig to the rules of the Court, the Board must submit the transcript
(3'
the record in the proceedings within a period of 40 days or such longer
Irae as might be granted by the Court upon request of the Board.
On
He went
say that the rules of the Court also provide for the filing of a
cross Petition by the Board for enforcement of its order and that he asth8 filing
of such a petition would be recommended to the Board by
the
.
`JoJacitor. Mr. Chase said that some work on the preparation of the
trans
criPt of the Clayton Act proceeding against Transamerica had already
been
dolle in anticipation of the case going to the courts, that preparation of
the cross petition was a relatively simple matter, and that it
collid
probably be filed at the same time the transcript was submitted to
thee°11rt, Probably within the prescribed 40 days. Mr. Chase also re414rIced
that the statutes provide that cases of this nature be given
Precedence on the Court docket.
Governor Szymczak inquired why Transamerica Corporation had filed
•
Judicial
adelphial to which Mr. Chase replied that the Third
p
5/28/52
_3_
j):trict includes the State of Delaware, in which State the Corporation
wa'3 incorporated.
There was a further discussion of the matter, from which it deirfaoped that
there appeared to be no need for any action on the part of
theBoard at this time.
At this point all of the members of the staff with the exception
tle Messrs* Carpenter, Sherman, and Kenyon withdrew, and the action stated
With
resPect to each of the matters hereinafter referred to was taken by
the Board.
Minutes of actions taken by the Board of Governors of the
Pecier_,
'I-Reserve System on May 27, 1952, were approved unanimously.
Memorandum
ectors
dated May 14 1952, from Mr. Dembitz, Assistant
,
dvision of International Finance, recommending the appointCatherine Van Fossen as Clerk in that Division, on a tempo-
tial7 iticlefinite basis, with basic salary at the rate of $2,750 per
al14111
'effective as of the date upon which she enters upon the performor her
duties after having passed the usual physical examination
41Id Bilbject to the completion of a satisfactory employment investigation.
Approved unanimously.
tiv.
Letter to The Honorable J. Percy Priest, House of RepresentaWapa,4
-u-Lngton, D. C., reading as follows:
V
5/28/52
"This refers to your letter to Chairman Martin,
dated May 5, 1952, which was accompanied by a telegram
fi:_ra Mr. George Patton, President of the Nashville Homeolkilders Association, dated May 2, 1952. We appreciate
having the opportunity to consider the views of this
association since the observations of an organization
spresenting the construction industry are of value to us
our continuing study of the effectiveness of Regula.!'°n X, Real Estate Credit, and the appropriateness of
114 present terms.
, "The 'national survey' concerning the effects of
l'egulation X to which Mr. Patton refers may be one which
("he Federal Reserve Banks recently undertook at the reusst of the Board in order to obtain an approximation of
pe volume of new housing units which have remained unsold
for
o
a substantial period of time. This is only a part of
-,
1
wu..:continuing
study of the effects of the regulation, as
13,"- as of existing inflationary and deflationary forces
work in the economy in general. These studies are made
order to help assure that the terms of Regulation X are
at all
r
times appropriate, particularly to the need for
estraining inflation. We will be glad to advise you of
any
action that is taken as a result of this study."
Z
Approved unanimously.
@FedFRASER