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7S6 Minutes of actions taken by the Board of Governors of the Pecleral Reserve System on Thursday, November 16, 1950. PRESENT: Mr. Mr. Mr. Mr. Mr. McCabe, Chairman Evans Vardaman Norton Powell Mr. Carpenter, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Minutes of actions taken by the Board of Governors of the Reserve System on November 15, 1950, were approved unanimously. Letter to Mr. Dearmont, Federal Reserve Agent at the Federal Reserve Bank of St. Louis, reading as follows: 11 In accordance with the request contained in your letter of November 8, 1970, the Board of Governors 15 ( 1 ) .1::, effective November 1, 19)0, the p payment of to the following members of the Federal serve Agent's staff at the rates indicated: Name Annual Salary Title Head Office thlard H. Hoppe $4,380 Assistant Federal Reserve Agent Richard 0. 4,5oo Kaley Alternate Assistant Agent Federal Reserve cll'iard A. 3,120 Zehner Alternate Assistant Reserve Agent Federal Little Rock Branch John *Links Federal Reserve Agent's 5,160 Representative Branch Louisville 0. H. Parsell 4,980 Federal Reserve Representative Agent's Branch Memphis Carl Ritzel 5 Otto" Federal Reserve Agent's Representative Approved unanimously. 4/16/50 -2Letter to Mr. Purrington, Assistant Vice President of the Ilederea Reserve Bank of Chicago, reading as follows: "This refers to your letter of November 9 regarding the penalty of $49.32 incurred by the Shiawassee County Bank, Durand, Michigan, on a deficiency in its reserves for the period ended October 15, 1950. It is noted that the deficiency resulted rrom the failure of the subject bank to take into c onsideration a debit of $100,000 to its account in connection with the purchase of this Lount of 'G' bonds; that because of a delay in the mail and the fact that Saturday and Sunday intervened, the bank did not receive credit Until October 16 for its $50,000 draft mailed .0tn October 12 to the Detroit Branch; and that 1,his is the first deficiency incurred by the vank since it became a member in 1939. It the above circumstances, the Board your Bank to waive the assessment of the Ihe penalty in this case." Approved unanimously. taaik or Telegram to Mr. O'Kane, General Counsel of the Federal Reserve ban Francisco, reading as follows: "Reurtel. If Escrow & Loan Service Co., ' no —,Porated, has disposed of ownership and control Pasadena-First National Bank, does not °n,.cafoinstlkiof n any manner election of majority of rs of such bank, and stock of bank has not been trusteed for benefit of shareholders of :Poration, holding company affiliate relationhas terminated and Pasadena-First National li ; - appears to be eligible to vote for Federal starr ," Bank director unless it has become a e'LdiarY of another holding company affiliate." Approved unanimously. Letter to the Presidents of all Federal Reserve Banks, ze as follows: 11/16/50 -3"The technical study, 'A Statistical Study of Regulation V Loans,' by Susan S. Burr and Elizabeth B. Sette of the Division of Research and Ptatistics of the Board of Governors, is now available for distribution. This study presents more detailed statistics t Of guaranteed loans to industry during viorld War II t an could be released while the program was in operah One copy of the pamphlet is being sent to you ,r ewith, and we shall be glad to send you without Carge such additional copies as you may request. Thrie coPY is also being sent to your Research Departt, but no copies are being sent directly to °ranches or directors of Federal Reserve Banks. .he pamphlet will be furnished free upon request to Go vernment departments, agencies, and establishif e:reign and domestic, including central banks); e ib ltr( and teachers at educational institutions; 1311blic libraries; and the press. For others the price will be 25 cents each up to ten copies and 15 cents each for ten or more copies in single shipment. ,s in the case of other publications, there will be a :fi to member banks for copies ordered by hem, but at should you desire to distribute copies Bo Y°11r own expense to some of your member banks, the alcl. will be glad to supply the necessary copies at the rates stated above as long as the stock lasts." j T Approved unanimously. Tel egram to the Presidents of all Federal Reserve Banks, readi--Lug as follows: "It is suggested that, for the present, vouchers : esting reimbursement of expenses incurred by Federal Re4 Banks in connection with current V -loan program be, s,Ze "ePared in same manner as under former program and 4 i J r warded, as heretofore, to Division of Bank Operations transmission to appropriate guaranteeing agencies. re Approved unanimously. _ Telegram to the Presidents of all Federal Reserve Banks, reatis4e as follows: 11/16/50 "question has been presented concerning treatment under Regulation W of tax or fee payable as Pre requisite to obtaining license plates in name of Purchaser of an automobile. Board is of the view that such tax or fee may be included in the 'cash ice' of the automobile, and may be added in computing m e 'appraisal guide value' under Part 4 of the Supple' Lent. To this extent the credit extended may cover such tax or fee whether transaction is instalment ?ale or instalment loan. This is in accordance with ter pretations issued under earlier versions of „e 2lation. Board is of further view, however, ve _A'c" such tax or fee may not be treated separately added in its entirety as part of the time or 1c)an balance subject to maximum maturity limitations." r r Approved unanimously. Telegram to Mr. Hitt, First Vice President of the Federal rye B of St. Louis, reading as follows: „ "Registrant may sell listed articles on incredit basis only in conformity with ,eql.lirements of Regulation W. The manner in which 4eglstrant comes into possession of such listed oftles would be immaterial. Is there some phase y„14-00r planning arrangement in question that i:. ()Pinion would make this view impracticable? Approved unanimously. Letter to Mr. Strathy, Vice President and Secretary of the ecie1.13.1 Reserve Bank of Richmond, reading as follows: "Under date of October 25, 1950, you received 8. (:)let -er enclosing copies of a letter to the Board ! Otctober 16, 1950, from Mr. Samuel Gordon, attorney Sylvan Sales Company, Inc., Silver Spring, oel jaud, and the Board's reply to Mr. Gordon of 1950. This correspondence related to si.f:°Posed rental-sales arrangement for the in'"0-Llation of television sets. I 11/16/50 -5"Recently, Mr. Gordon, and an officer of 8Y1van Sales Company, Mr. Browne, related to us confidentially that the Michael Home Equipment Company, Inc., 516 H Street N. E., Washington, C./ was installing television sets on a basis w"ich, in their judgment, was contrary to the view exPressed in the Board's aforementioned letter to Mz. Gordon. In this connection, these gentlemen showed us an executed copy of a contract dated October 18, 1950, between the Michael Home EquipeC to:Tny and Mr. Harold M. Layton, 5314 First 4., Washington, D. C. its ea ;contract was on a printed form, and in ( ") televJsi . onParagraphs covered the delivery of a set on a rental basis, with collection the monthly rent facilitated by a coin meter "vice. However, the latter portion of the contract (eycrnained a provision giving the lessee a specific ,t".lon for a period of sixty days from the date of :17e agreement to purchase the television set and occtessories. In the event of exercise of the aion, the agreement specifically provided that anl ums Paid by the lessee for rental would be Died ,n the against the required down payment calculated cash price of the set at the time of entering .Lnto j the agreement. "In:. the circumstances, it would seem appropriate to e-n early e the Michael Home Equipment Company for investigation." Approved unanimously. Tel -egram to Mr. DeMoss, Vice President of the Federal Reserve 1141t Of Dallas, reading as follows: "Reurtel November 10. credit , a with respect A Registrant extending to residential property having eg value' -F. 6 Y50,000 involving ten residences of wil t111 7,1 ve-Lue may compute maximum loan values separately $45,1 respect to each such residence and may lend pro,°00 secured by a single mortgage on the residential a e!rtY. It would not be necessary to make ten loans nr- cake ten mortgages for $4,500 each." Approved unanimousl Secreta
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