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611 A meeting of the Board of Governors of the Federal Reserve SY"ell was held in Washington on Friday, May 3, 1940, at 10:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak McKee Draper Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman Mr. Wyatt, General Counsel Mr. Goldenweiser, Director of the Division of Research and Statistics Mr. Smead, Chief of the Division of Bank Operations Mr. Dreibelbis, Assistant General Counsel Mr. Vest, Assistant General Counsel Mr. Wingfield, Assistant General Counsel Mr. Williams, Assistant Counsel Mr. Hammond, Chief of the Correspondence and Publications Section of the Secretary's Office There were presented telegrams to Mr. Sanford, Assistant Secrethe the Federal Reserve Bank of New York, Mr. Post, Secretary of pederai Reserve Bank of Philadelphia, Mr. McLarin, First Vice PNa ident of the Federal Reserve Bank of Atlanta, and Messrs. Dillard alid e, S ecretaries of the Federal Reserve Banks of Chicago end 411 Pranci sco, respectively, stating that the Board approves the esshraent Without change by the Federal Reserve Bank of San Francisco ot 4/11 30 by the Federal Reserve Banks of New York, Atlanta, Chicago, 311c1 San Pranci sco on May 2, 1940, and by the Federal Reserve Bank of Philadelphi a today, of the rates of discount and purchase in their 612 `5/3/40 -2eXisting schedules. Approved unanimously. Before this meeting all of the members of the Board had had °PP"tunitY to read a memorandum prepared by Mr. Wingfield under date of Apru 15, 1940, with which he submitted for consideration by the Board a final draft of an amendment to Regulation F, Trust Powers r ational Banks, which would permit the operation of mortgage inDuns by national banks. The memorandum pointed out that the amendment had been sponsored by a committee of the Pennsylvania Wcers Ass ociation, had been pending before the Board for some time, that numerous conferences had been held regarding it, that the camtA Ili - of the Pennsylvania Bankers Association had been heard and had riled a of the proposal, that the opinions of the brier in support l'edern-1- Reserve Banks, the Comptroller of the Currency, and others 114d b ean obtained regardina it, with the results outlined in an attaeltme nt to the memorandum, and that the mestion of policy as to 11141ther the rflandment should be adopted was ready for consideration bY the Boarde The proposed amendment was discussed in the light of the arguments for and against its adoption as set forth in the attachment to Mr. Wingfield's memorandum, at the conclusion of which, upon motion by Mr. Ransom, the following resolution was adopted by unanimous vote, with the understanding that a statement would be issued to the press regarding the amendment to the regulation and that copies 613 5/3/40 -3of the amendment would be sent promptly to the Federal Reserve Banks and to Mr. Berger, Chairman of the committee of the Pennsylvania Bankers Association which Sponsored the amendment: rustRESOLVED, That effective June 1, 1940, Regulation F, Powers of National Banks, be amended in the followrespects: 1. Amend the first paragraph of subsection (a) of section 17 of Regulation F by changing the period at the end thereof to a colon and addin the following: Provided, however, That funds shell not be invested in a Common Trust Fund of the type provided for in subsection (d) of this section unless such investments are specifically authorized by the State statutes. 2. Amend subsection (b) of section 17 of RegulaF by deleting "subsection (c)" and inserting in 4.1ell thereof "subsections (c) and (d)". 3. Amend the first sentence of subsection (c) of Sect 17 of Regulation F to read as follows: Subject to all other Provisions of this regulation except subsections (b) and (d) of this seefunds received or held by a bank in its capacity as trustee, executor, administrator, Or guardian may be invested in participations In 8 Common Trust Fund administered pursuant to the provisions of this subsection. secti4. Amend second paragraph of subdivision (2) of sub1 o -n tkc, of section 17 of Regulation F to read as follows: At the time of making the first investment of funds of a trust in any Comuton Trust Fund, the bank shall send a notice of such i nvestment to each person to wham a regular Periodic accounting ordinarily would be rendered, except that such notices need not be sent to a court•unless required by the court, and except that such notices need not be sent Where the trust instrument specifically authorizes investments in Common Trust Funds. sect Amend second paragraph of subdivision (3) of subi°n (c) of section 17 of Regulation F to read as folcws: 614 5/3/40 -4The bank shall, without charge, send a copy of the latest report of such audit Annually to each person to whom a regular periodic accounting Of the trusts participating in the Common Trust Fund ordinarily would be rendered or shall send advice to each such person annually that the rePort is available and that a copy will be furnished without charge upon reauest. 6. Amend the second sentence of the first Paragraph subdivision (5) of subsection (c) of section 17 of RegUlation F to read as follows: If the bank administers more than one Common Trust Fund under this subsection, no investment shall be made which would cause any one trust to have an interest in all such Common Trust Funds in excess of the sum of 5,000; and, if the bank administers Funds under both subsections (c) and (d) of this section, no investment shall be made Which would cause any one trust to have an interest in all such Funds in excess of the sum of 7* At the end of section 17 of Regulation F add a new -40section (d) reading as follows: (d) Common Trust Funds composed principally of mortgaaes (Mortgage Investment Funds). - Subject to all other provisions of this regulation / except subsections (b) and (c) of this sectiona , Funds received or held by a bank in its capacity as trustee, executor, administrator, or guardian may be invested in participations in a Common Trust Fund administered pursuant to the provi3ions of this subsection (hereinafter referred t° ss a "Mortgage Investment Fund"). All adand withdrawals of participations in !Mortgage Investment Fund shall be made on the ! lj sia of the actual amount invested by each par61 ciDent, and, except in final liquidation of M°rtgege Investment Fund, participants therein shall not have an interest in reserves accumulated or enhancement in the value of assets, except such as may be distributable as income. Note, however, that certain provisions of subsection (c) are incorporated in this subsection by reference. 615 5/3/4o -5(1) Mortgege Investment Fund to be operated under written plan. - Each Mortgage Investment Fund shall be subject to the provisions of subdivision (1) of subsection (c) of this section. (2) Trust investment committee to approve 2:tr:tiaLa. /1 - No funds of a trust shall be invested in a participation in a Mortgage Investment Fund without the approval of the trust investment committee. Before permitting any funds of any trUst to be invested in a participation in a Mortgag!e Investment Fund, the trust investment committee shall review the assets comprising the M"tgage Investment Fund; and, if it finds that the condition of the Mortgage Investment Fund is such that the funds of such trust might not lawfully be invested in a Participation therein at that time, or that such investment mould be contrary to the provisions of this subsection, funds of such trust shall not be so invested. At the time of making the first investment °f funds of a trust in any Mortgage Investment Fund, the bank shall send a notice of such investment to each person to whom a regular periodic accounting ordinarily would be rendered, except that such notices need not be sent to a court unless required by the court, and except that such notices need not be sent where the trust instrument specifically authorizes investments In Iviortgage Investment Funds. (3) Mortgage Investment Fund to be audited ; 29.11 1 ,1212a. - Each Mortgage Investment Fund shall pe sabject to the provisions of subdivision (3) °f subsection (c) of this section. (4) Value of assets to be determined - Not less frequently than once during each period of three months, the trust Incommittee of a bank administering a Mortgage Investment Fund shall determine the value the assets in the Mortgage Investment Fund. ° Participation shall be admitted to or withfrom the Mortgage Investment Fund except on the date of determination of each valuation if Permitted by the Plan, within two business ' 85r5 subsequent to the date of such determination; end no participation shall be admitted to or Withdrawn from the Mortgage Investment Fund unless, on the basis of such valuation, the value 616 5/3/4o -6of the assets of the Mortgage Investment Fund, exclusive of accrued income, is at least equal to the amount of the outstanding participations. No Participation shall be admitted or withdrawn unless, in accordance with the provisions of the Plan, prior to the date of the determination of such valuation, notice of intention to participate or to make such withdrawal shall have been given in writing to the bank administering the Mortgage Investment Fund, or a written notation of the contemplated participation or withdrawal shall have been made in the records of the bank. . The real estate securing each obligation contained in a Mortgage Investment Fund and any real estate contained in the Mortgage Investment Fund shall be appraised at least once every three years by two persons, one of whom shall not have participated in the last preceding appraisal of the Particular property for the purposes of the Mortgage Investment Fund. Such persons shall be apPointed by the bank's board of directors and shall, In the opinion of the board, be familiar with real estate values in the vicinity in which any such real estate is situated and qualified to make such aPPraisals. The persons appointed shell actually insPect such real estate and shall so certify in R written certificate of appraisal, which shall be filed and preserved in the bank's records. The trust investment committee shall require more frequent appraisals of all properties or any Particular property if such action is deened by the committee to be necessary to enable it properly to discharge the duties Imposed upon it by this subsection. (5) Miscellaneous limitations. - NO funds Of any trust shall be invested in a participation In a Mortgage Investment Fund if such investment would result in such trust's having an interest In the Mortgage Investment Fund in excess of the 81171 of $1,200 or 2 per cent of the amount of the outstanding participations in the Mortgage Investment Fund, whichever is greater at the time of investment, or in any event in excess of the sum Of $10,000. If the bank administers more than °Ile Mortgage Investment Fund, no investment shall be made which would cause any one trust to have 617 5/3/40 -7an interest in all such Mortgage Investment Funds in excess of the sum of 40,000; and, if the bank administers Funds under both subsections (c) and (d) of this section, no investment shall be made which would cause any one trust to have an interest in all such Funds in excess of the sum of 25,000. In applying the limitations contained in this paragraph, if two or more trusts are created by the same settlor or settlors and as much as one-half of the Income or principal or both of each trust is payable or applicable to the use of the same person or persons, such trusts shall be considered as one. No investment for a Mortgage Investment Fund shall be made in obligations of any one person, film, or corporation which would cause the total amount of investment in obligations issued or guaranteed by such person, firm, or corporation to exceed 10 per cent of the amount of the outstanding particiPations in the Mortgage Investment Fund, provided that this limitation shall not apply to investments in obligations of the United States or for the payment of the principal and Interest of which the faith and credit of the United States shall be Pledged. The unpaid balance of any obligation secured by real estate in which the funds of a Mortgage nvestment Fund are invested shall not exceed 410,000 on the date of the investment therein unless the aggregate amount of all outstanding Participations in the Mortgage Investment Fund exceeds 200,000, in which event the unpaid balance gach obligation shall not exceed 5 per cent of the amount of such outstanding participations °r $50,000, whichever amount is less. Any bank administering a Mortgage Investment FUnA , c shall have the responsibility of maintaining .1-11 Cash such part of the assets of the Mortgage --lavestment Fund as shall be deemed by the bank to be necessary to provide adequately for the needs °.f Participating trusts and to prevent inequities uetween such trusts. No investment of the moneys f Of a Mortgage Investment Fund shall be made if ,?11"ing such investment the cash balance, exsive of collected income on hand, in the °Itgega Investment Fund would be less than an I r 618 sh/40 -8amount equal to 5 per cent of the total amount Of all outstanding participations in the Mortgage Investment Rind. Unless, upon computing the amount of the admissions and withdrawals which are to be made as of any valuation date pursuant to notice given as required in subdivision (4) Of this subsection, the trust investment committee determines that there will be sufficient cash in the Mort gage Investment Fund to permit all such Withdrawals, no admissions to or withdrawals from the Mortgage Investment Fund shall be permitted as of such valuation date. Unless the trust investment committee determines that, after effecting the admissions and withdrawals which are to be made as of any valuation date pursuant to notice given as required in subdivision (4) of this subsection, the amount Of investments of a Mortgage Investment Fund represented by assets in which moneys of the Mortgage Investment Fund could not then be invested under the Provisions of subdivision (8) of this subsection will not exceed 10 per cent of the amount of the outstanding participations in the Mortgage I nvestment Fund, no admissions to or withdrawals from the Mortgage Investment Fund shall be permitted as of such valuation date. (6) Reserve account and distribution of - In each Mortgage Investment Fund the oank shall establish and maintain a reserve account as Part of the principal thereof, to which, to the extent available, all realized losses shall !!Ei charged. Any realized gain in the value of asoets of a Mortgage Investment Fund, other than income, shall be credited to such reserve account. At least semiannually a bank administering a Mortgage Investment Fund shall determine the /;.et income of the Mortgage Investment Fund during he Period since the last determination thereof. at the close of each earning period, if the total !mount contained in such reserve account is less 'hen 10 per cent of the total amount of all outstanding Participations in the Mortgage Investment na, the bank shall transfer to the reserve account, out of the net income of the Mortgage Investment Fund, such amount as the bank shall C19 5/3/40 -9determine to be proper under the circumstances. The total amount so to be transferred to the reserve account during any year shall not be less than 10 per cent of the &mount of the gross income of the Mortgage Investment Fund ror such Year or more than one per cent of the average of the total amounts of all outstanding participations in the Mortgage Investment Ikind at the close of each earning period. No such transfers to the reserve account shall be made which will cause the amount contained therein to exceed 10 per cent of the amount of all outstanding participations. The balance of the net income remaining after transferring the appropriate part thereof, if any, to the reserve account, shall thereupon be distributed to the owners of the outstanding particiPations in the Mortgage Investment Fund in proPortion to the amounts of their participations and the period of time owned since the previous d etermination of net income. (7) Withdrawal of Participation in a Mortgage Investment nd. - Upon the withdrawal of a parti . ciPation of any trust prior to termination and final liquidation of a Mortgage Investment Fund, Slich trust shell be entitled to be paid in cash the total amount of the funds of such trust invested in the participation, with net income thereon to the date of such payment, but such income shall not he paid until the amount thereof shall have been determined at the close of the current earning period. Upon the termination and final liquidation tr e't a Mortgage Investment Fund, all assets of the ' °rtSage Investment Fund shall be distributed among the owners of the participations at that time in Proportion to the amounts thereof. (8) Investment of moneys of MortgageInvest- The moneys of a Mortgage Investment xlind shall be invested in-1. Oblirzations secured by real estate Which, at the date of the investment, are legal for investment of trust funds under the laws of the State in which the bank is located and are insured by the Federal Housing Administrator, having been insured prior to the first 620 5/3/40 -10day of July 1939, pursuant to the provisions of Title II of the National Housing Act, apProved the 27th day of June 1934, as amended, or having been so insured thereafter, with like force and effect, pursuant to any revision or extension of the provisions of the said Act; or 2. Obligations secured by real estate Which, at the date of the investment, are legal for investment of trust funds under the laws of the State in which the bank is located and are of the kind which might be acquired by a national bank under the provisions for making amortized loans contained In the third sentence of section 24 of the Federal Reserve Act; or 3. Obligations secured by real estate Which, at the date of the investment, are legal for investment of trust funds under the laws of the State in which the bank is located, which are payable within 20 years, and which either provide for semiannual payments reducing the principal thereof annually In an amount equal to at least 5 per cent of the amount of the principal on the date of Investment, or Provide for the amortization of the total unpaid Principal amount of such mortgage on the date of investment by equal monthly payments during the term of such mortgage, such monthly payments being fixed at an amount which will include the interest due on such mortgage on the date of such Payments and an additional amount to be apPlied in the reduction of the unpaid principal amount of such mortgage. In the case of a renewal or extension of any such obligation held by a Mortgage Investment Fund, the date upon which the Mortgage Investment Fund originally acquired the obligation shall be considered the date of investment. If in the judgment of the trust investment committee such obligations are not available for investment of moneys of a Mortgage Investment Fund, such moneys may be invested temporarily in obligations 621 5/3/4o -11Of the United States or of the State in which the bank is located or for the payment of the Principal and interest of which the faith and credit of the United States or of such State shall be pledged, and which are legal for investment of trust funds under the laws of the State in which the bank is located. As soon as obligations secured by real estate in which the moneys of the Mortgage Investment Fund may be invested are available, such securities shall be disposed Of and the proceeds invested in such obligations if this can be accomplished without disadvantage to the Mortgage Investment Fund. (9) Manyement of Mortgage Investment Fund and fees. - Each Mortgage Investment Fund shall be subject to the provisions of subdivision (8) Of subsection (c) of this section. (10) Effect of mistakes. - Each Mortgage Investment Fund shall be subject to the provisions of subdivision (9) of subsection (c) of this section. At Mr. Ransom's suggestion, Mr. Williams reported on the in- rot/Illation that he had obtained regarding the status of the Wagner 14qkillg tUdY question naire, stating that he had been informed that 411Elt°r Wagner hoped to send out official copies of the questionnaire tc3c14Y' or tomorrow. the Mr. Ransom said that, in view of his contemplated absence from , he would City like to discuss at this meeting the procedure to be 11°17" bY the Board in connection with the cuestionnaire. He stated ' 11" it "Peered from classifiedinformation that had omne to him that the cAleations could be into two groups, one calling for factual tli"erlal which could be prepared prp by the staff and the other relating to 14Itt"a 111)" 'which it would for the Board to express an 622 5/3/40 -12and that on the latter group of questions he did not think t4ra was anything the staff could do with respect to the preparation or "swers to the questions, other than to prepare such factual material ElanlaY be necessary as a basis for an opinion, until the Board indicated What its position would be. He added that in this situation he would allge.st that when the questionnaire Is received the questions be dillded into the two groups and that the Board indicate what its at- tit0t mu INpuld be with respect to the questions involving matters of ololtion and that the staff be requested to prepare such factual inforra"1 "aS the Board may need to answer all the questions upon which a4swer8 are to be submitted by it. Mr. Ransom made the further comment that aPParently the questionnaire is not to take the place of hearings "the Wagner resolution but answers to the questionnaire will be used to determine the program and nature of the hearings. Mr. Ransom then referred to the banking studies which had been P4Pared by the staff in anticipation of hearings on the Wagner Resolutiot and called upon Kr. Goldenweiser, as chairman of the committee al%itted by the Board on February 21, 1940, to review and make sugaations With regard to the studies, to report on the present status or the studies. Mr. Goldenweiser said that numerous suggestions as to chettRes it the studies had been received from the Board's staff and from a rew Of the outside persons to Whom copies had been sent, and that the cirtiittee had met yesterday and had decided to recommend to the Board porz / 1 4J)Awt.... 5/3/40 -13ht it reach a decision with regard to (1) whether the studies are t° be Published and (2) if so, whether it will approve the employment Of 5°111"ne to edit the studies. The reason for the latter question, he sm id Was that the editing of the studies for publication will rethe Nu time of an experienced editor for from three to six 111°Ilthe• that they could not be placed in satisfactory find form in less then six months, and that there is no one in the Board's organization who has the time or sufficient training for the task. He also eeid that the committee would recommend that the studies be published r" the reason that they contained a large amount of factual informa.40 11 which is not now available to the public or available only in a l'ery scattered way and which would be very valuable to the System and to students of the subject. Mr. 'Ransom suggested that the studies could be published as ell "ticial Publication of the Board, by a private publishing house, "se"allY in the Federal Reserve Bulletin. Mr. Goldenweiser responded the committee had considered that matter and favored the publicati°11 Of the studies by the Board for the reason that the Board would then be free to determine the policy to be followed in the distribution : r e°Pies Elnd that it would be desirable if the Board would authorize contiiittee to explore the possibilities as to the form the publiceti°11 ehoUld take. Mr. Draper moved that, subject to apProve' by the absent members of the Board, 624 5/343 -14aPproval be given to the publication of the studies as a publication of the Board in a form and manner to be decided upon later. This motion was put by the chair and carried unanimously. In taking this action it was understood that, if the publication of the report is approved by the absent members of the Board, Mr. Goldenweiser's committee will be authorized to make the necessary investigation to find a person to edit the studies and to make a recommendation to the Board for his employment and assignment to that work. (Secretary's note: Subsequent to the meeting Messrs. Eccles and Davis stated that they approved the decision to publish the studies and to authorize the committee to make the investigation and recommendation above referred to.) Ett In connection with the above matter, Mr. Ransom suggested that the next meeting of the Federal Advisory Council inquiry be made of the members of the Council whether they have any suggestions to make With reetard to the studies and that steps be taken to ascertain whether the chairmen to this time to orrer. and the Presidents of the Federal Reserve Banks, who up have made no comments on the studies, have any suggestions M. Ransom's suggestion was approved unanimously. At this point Mr. Williams and Mr. Hammond left the roam. The was presented a draft of letter to the Chairmen of the ?e,4 erve Banks, which had been prepared in accordance with the 625 5/3/40 -15"ion taken at the meeting of the Board on April 30, asking for any e°rtraents that the directors of the banks may wish to make with respect to the latest draft of the Mead bill which would amend section 13b of the Federal Reserve Act relating to industrial loans by the Federal Reserve Banks. with chat Mr. Clayton stated that he had discussed this matter n Eccles who had taken the position that, in view of his Etetement to Congressman Ford that a majority of the Board would have 11° objection to the bill, he questioned the advisability of sending the letter at this time and that, if a request for a report on the bill were received from Congressman Ford, he (Chairman Eccles) mould llot favor holdina the report until the replies from the Federal Reserve te_ s nk were received. Mrs Draper stated that, in view of the developments in con- ilecti°n with the bill, he doubted if a request would be received for Etre " on the bill and that there may be no point in asking the 4c1e111-1 Reserve Banks for their views. In the discussion which r(41°Iled, m.embers of the Board expressed the opinion that, inasmuch utrial loan operations under section In are carried on by the Federal Reserve Banks, it would be well to get their views regardle188 or rol„ , Whether the legislation is enacted, although, if a request 4 rePOrt is received from the House Banking and Currency Commit- ' the report Should not be delayed pending the receipt of the lkillke? replies. 626 5/3/40 -16-It vas agreed unanimously that the letter should be placed on the docket for further consideration at the next meeting of the Board when Chairmen Eccles will be present. Mr. Ransom said that since he would not he in attendance at the next meeting of the Board he would like to be recorded as being In favor of sending the letter. In connection with the discussion of the above matter, it was etated that a request had been received by the Board from the Bureau "the BUdget that it be advised as promptly as possible of the views of the Board _ n o section 5 of a proposed bill which would amend section 24 or the Federal Reserve Act to permit national banks to make real estete 10B__ us for a period of fifteen years, provided the borrower is (Iblig"ed to amortize 60 per cent or more of the principal of the loan that Period. Mr. Morrill read a draft of a reply to the request Mitch stated that the Board would have no objection to the amendment, elld there was discussion of the auestion whether the Board should apthe letter or take the Position that there should be a study of the Problem of banking legislation as contemplated by the Wagner 1-11 and that, in the absence of an emergency, the Board would tiot be 'willing to approve any further piecemeal legislation in the 111111k14P ' . field. It was agreed that the draft of reply should be circulated and placed on the docket for consideration at the next meeting of the Board. There was also presented a letter dated April 29, 1940, from 627 s//40 -1'?President of the Federal Reserve Bank of Cleveland, inWhether it would be possible for a member of the Board to atte" the meetina of the board of directors of the Cleveland Bank to be held on. May 23, 1940, at Columbus, Ohio, to which a number of otl,er 'Ilests 'including the directors of the Cincinnati Branch, were being It was understood that Mr. Mee would arrange to attend the meeting. At this point Messrs. Thurston, Wyatt, Goldenweiser, Sinead, 1)re1be1bis, Vest, and Wingfield left the meeting and the action stated 1"11 respect to each of the matters hereinafter referred to was then tEt/411 by the Board: The minutes of the meeting of the Board of Governors of the ?(Iciera 48erve System held on May 1, 1940, were approved unanimously. 11311d, in the mount of $10,000, executed under date of April 1940, the by*. Walter Castella Coffey as Federal Reserve Agent at Pederal Reserve Bank of Minneapolis. Approved unanimously. Memorandum dated April 26, 1940, from Mr. Goldenweiser, pil'eetor "the Livision of Research and Statistics, submitting for apArovelb Y the Board the budgets for the statistical and analytical 131tetical $ Including library services, at the respective Federal Reserve 4 rclr the Year 1940, and recommending that the Federal Reserve 4ke he advised that the Board approves the proposed budgets as 8 628 5/3/40 -18- t°110m: Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total 37,120 188,472 50,865 33,550 23,091 22,675 46,905 22,312 15,473 22,137 19,937 48,873 531,410 Approved unanimously. Letter to Mr. Gilbert, President of the Federal Reserve Bank Or ", reading as follows: , "Reference is made to your letter of April 29, 1940, iLjan which it is noted that the Marfa National Bank, cra$ Texas, which is the only member bank in Presidio 2tY, has made formal application to be transferred the territory served by the Sen Antonio Branch to lt served by the El Paso Branch and that the officers the D -eserve bank feel that the proposed transfer will e!-,111 the the applying bank tict shouldinterest of better service to be approved. fer "In view of the above, the Board approves the transter n eresidio County, Texas, from the San Antonio Branch detritc)/7 to the Fl Paso Branch territory, the effective Irolle of the transfer to be fixed at the discretion of by . .„13°8rd of Directors in connection with formal action et ," on the application. Please advise the Board the tective date of the transfer." pf Approved unanimously. Thereupon the meeting adjourned. 41)''oveci"-- A A1 AM114161 ce Chairman.
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