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669 A meeting of the Board of Governors of the Federal Reserve SystelftWas held in Washington on Thursday, May PRESENT: Mr. Mr. Mr. Mr. Mr. 6, 1943) at 10:40 a.m- Eccles, Chairman Szymczak McKee Draper Evans Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Leonard, Director of the Division of Personnel Administration Reference was made to the War Overtime Pay Act of 1943 which had fitcl been approved by Congress and sent to the President for signature which would (1) authorize the payment of overtime or additional coMpensation to civilian employees of the Government at the rate, whiche'crer was higher, of $300 per annum (but not to exceed 25 per cent of b4sic compensation) or 21.6 per cent of the part of an employee's basic eotapensation which was not in excess of $2,900 per annum, notwithstanding the fact that such payment might cause the aggregate salary of the em- DloYee to exceed El rate of $5,000 per annum, and (2) provide that, in of overtime compensation for work in excess of 48 hours in any ad- rat41strative work week, the heads of departments, establishments, and elletes might in their discretion grant per annum employees compensatory title °rt. Mr. be Szymczak stated that it was anticipated that the Act would qfMed by the President promptly, that the action to be taken by the 670 5/6/43 """2••• 13°"cl had been considered by the Personnel Committee in the light of the 8°E1rd's actions on December 18, 22, and 26, 1942, and May 5, 1943, with reePect to the payment of overtime compensation, and that it was the recomaendation of the Committee that the Board authorize the payment c)r °7ertime or additional compensation in accordance with the provi81°48 els the new Act with the possible exception that such payments Would not be approved for employees receiving basic salary in excess of 80111e emoluat to be determined by the Board. Mr. Leonard reported on inquiries which he had made at the intOrtlai request of members of the Board as to the procedure that would be followed in connection with higher salaries in other departments and egetcles of the Government, and it appeared that there would be relat4e17 few cases of salaries in excess of 410,000 per annum in the GovernilleUt service. The opinion was expressed that, while under the pro'181°Ile of the Act overtime compensation could be paid in such cases, the Board should take the position that it would not authorize overtime e°1413ensation for any employee whose basic rate of compensation was in ece8s °t t10,000 per annum - All of the members of the Board were in agreement with this opinion and, upon motion, it was voted unanimously, subject to the signing of the new Act by the President, to authorize the payment of overtime or additional compensation at rates in accordance with the provisions of the War Overtime Pay Act of 1943, beginning May 1, 1943, to all of the Board's employees, except that no overtime or additional compensation would be paid to any employee whose basic rate of compensation was in excess of $10,000 per annum. 671 5/6/43 -3In connection with the above action, It was understood that the Board would continue to grant compensatory leave to its employees for all overtime in excess of the established work week of 48 hours when in the opinion of the head or assistant head of the office or division such overtime was justifiable. " 11 SzYmczak stated that he had just had a telephone call from Bl• iejaard, Chairman of the Federal Reserve Bank of Cleveland, stating that, '41% Arnold, Vice President of the Bank who would not become 65 years 14re °t4Ige until May 1944, had expressed a desire to retire on May 1 of this le" in the event the directors approved the payment on his behalf of a Bel"iti°13. allowance, part of which he desired to have paid to the retlIlent system to increase his retirement reserve and the balance to be xxlid to him in cash. Mr. Brainard stated, Mr. Szymczak said, that 4• 1* desired to have Mr. Arnold remain at the Bank until he reached the• toard Of 65 end for that purpose proposed, subject to approval by the e't G°vernors, to increase his salary $1,800 per annum to the rate °t h°1800 per annum. All of the members of the Board were in agreement that the pro: 38" illereaaa would not be for merit under the terms of the President's '4eclit1ve Order of April Eqltholitzed to 8, 1943, that, therefore, the Board was not approve it, that in any event a salary increase in the ell'ellZatalices lill would not be justified, and that Mr. Brainard should be ed that the Board would not favor the payment of a separation :110111ce to mr. Arnold in the event he should decide to retire this Year. 5/6/43 -4At the request of the Board, Mr. Szymczak left the meeting to talk to Mr. Brainard over the telephone, and upon his return stated that he had informed Mr. Brainard of the Board's views as set forth above. In connection with the above matter, reference was made to the 13c)ardts letter of June 24, 1937 (8-7), as amended by the Board's letter Pebruary 5, 1941 (8-251), authorizing the BRnks to make separation Parment , and the general authorization for suggestion was made that the slIch payments contained in the amended letter should be revoked. It was 114derstood that this matter would be taken up by the Board in connection With the r eon of the Retirement System of the Federal Reserve Banks Which would be considered at the next meeting of the Presidents' Contererlee. There r11°In. th6 were then submitted recommendations dated May 6, 1943, Board's Personnel Committee: That the Chairman of the Federal Reserve Bank of Cleveland 3€' requested to ascertain Informally whether Mr. William C. Arthur, President of Talon, Inc., Meadville, Pennsylvania, uld accept appointment, if tendered by the Board, as a director of the Pittsburgh Branch of the Federal Reserve ' link of Cleveland for the unexpired portion of the term ending December 31, 1944. 2. That the Chairman of the Federal Reserve Bank of Kansas Ciy be requested to ascertain informally whether Mr. Yla L. Hague, a farmer in Cherokee, Oklahoma, would accept aPpointment, if tendered by the Board, as a Class C director f the Federal Reserve Bank of Kansas City for e unexpired portion of the term ending December 31, 1945. Approved unanimously. Consideration was also given to a memorandum dated April 16, 1943, t rc)ra Mr• Cherry, Attorney, submitting a routine request received 67,1 5/6/43 fromthe Chairman of the Senate Banking and Currency Committee for a reP°rt on Senate bill S. 985 to restrict the establishment of branch °frice- ° 10",Y financial institutions chartered or insured under the laws "the United States. The memorandum raised the question whether, in the absence of further developments, the policy of not replying to r°11t1ne requests of this kind should be followed in this case which 'elated directly to a banking matter. It was stated that apparently 841ilar requests were received by the Federal Deposit Insurance CorN.!etion and the Office of the Comptroller of the Currency and that illc.NLITY had been made by the latter as to the action the Board proposed to teke in connection with the request received by it. It was agreed unanimously that the Chairman's Office should ascertain from the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency whether they proposed to respond to the request and that, if so, the matter would be reconsidered by the Board. At this point, Mr. Leonard withdrew from the meeting, and the etated with respect to each of the matters hereinafter referred teen by the Board: The minutes of the meeting of the Board of Governors of the Fed- erEll °serve System held on May 5, 1943, were approved unanimously. Melac)randum of this date from Mr. Morrill, submitting the resat vl MTS. Mary A. Cadieux as a cafeteria helper in the Secretary's 4tice) t0 become effective as of the close of business on May 5, 1943, recoMmAy,A4 ---A4ng that the resignation be accepted as of that date. The resignation was accepted. 5/6/43 -6Letter to Mr. Gidney, Vice President of the Federal Reserve Bank Of, 1\111 York, reading as follows: "Reference is made to your letter of May 1, 1943, with respect to the purchase of certain assets and assumption of the deposit liabilities of The Bliss National Bank, Bliss, York, by The Citizens Bank of Arcade, Arcade, New York, will-eh transaction was to have been effected as of the close iOf business May 1, 1943, and which was not submitted to the Bank for prior consideration under the conditions Of m '21, embership because of a misunderstanding on the part of UoUnsel for the State member bsnk. It is understood that the deposits assumed amounted tO a $350,000, that the assets acquired conr PProximately Psted (3-, approximately 8250,000 in cash and $100,000 in 2ans considered acceptable by the directors of the State !ember bank and said to be similar in character to those ;:quired in the ordinary course of business of the State Inher bank. It is understood also that the national bank t813 .7 be placed in voluntary liquidation and that the es--shment of a branch at Bliss is not contemplated. 01:11.12, "In the circumstances, the Board concurs in your the ion that the transaction did not result in a change in eneral character of business of The Citizens Bank of 'Cade or the scope of corporate powers exercised by it Within the a meaning of condition of membership numbered 1 jl:plicable to the institution, and will interpose no ob4 1 ,i°n if it was completed substantially in accordance Iles- the Plan as submitted and provided Counsel for the arve Bank is to be satisfied as to the legal aspects nvolved.n New Approved unanimously. Thereupon the meeting adjourned.
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