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1649 A meeting of the Board of Governors of the Federal Reserve SYstera, was held in Washington on Thursday, November 2, 1944, at 10:30 PRESENT: Mr. McKee Mr. Draper Mi. Evans Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinafter referred to was taken by the Board: Memorandum dated October 31, 1944, from Mr. Leonard, Director of the Division of Personnel Administration, recommending that, after having passed satisfactorily the usual physical examination, Mrs. Cather inu Elizabeth O'Connell be appointed as substitute nurse in on with salary at the rate of $6 per day, plus overtime at the rate of lra, wo for each calendar day worked including Sundays elid holidays failing between days worked. The memorandum stated that, illview of the inte *ttent nature of her employment, Mrs. O'Connell w°111c1 not become a member of the retirement system. Approved unanimously. Letter to Mr. Ashley, Assistant Federal Reserve Agent at the Pecier'al Reserve Bank of Dallas, reading as follows: le, "In accordance with the request contained in your __6ter of October 26, 1944, the Board of Governors apV.Tres the appointment of Mr. Llewellyn Glynn Davis as -4.Lsrnate Assistant Federal Reserve Agent at his present 1650 11/2/44 -2- "-Lary of $1800 per annum, effective November 6, 1944. "This approval is given with the understanding that he will be placed upon the Agent's pay roll and will be solely responsible to him, or, during a vacancy in the office of Agent, to the Assistant Federal Reserve Agent, and to the Board of Governors, for the proper performance of his duties. When not engaged in the performance of his duties as Alternate Assistant Federal Reserve Agent he may, With the approval of the Federal Reserve Agent, or during : 8 vacancy in the office of the Federal Reserve Agent, of the Assistant Federal Reserve Agent, and the President, perform such work for the Bank as will not be inconsistent 'J-Lth his duties as Alternate Assistant Federal Reserve Agent. "It is noted in your letter that upon receipt of adVice of the Board's approval, Mr. Davis will be bonded and that, after examination by your counsel, the bond will be f orwarded to the Board for approval. mr. "It is also noted that after Mr. Davis has qualified, Digings will be released from his duties as Alternate Assistant Federal Reserve Agent. Please advise us as to tile action, if any, we should take with respect to releasg the Bonding Company from liability under bond of Mr. Digings.” Approved unanimously. Letter to Mr. F. A. Carroll, Vice President of The National sh4Talt -ank of Boston, Boston, Massachusetts, reading as follows: "This refers to your letter of October 25, 1944, °ontalning • • advice as to the liquidation and change in ; ,,me of the Shawmut Corporation and inquiring whether ' fotch action would in any way prejudice your rights to , -0,P111 a new corporation under sections 25 or 25(a) of rederal Reserve Act for the purpose of engaging in '41-ternational or foreign banking. of "It appears from the Board's files that under date p December 26, 1929, the Board advised the Shawmut Corrat10 n of Boston that its agreement under section 25 the Federal Reserve Act had been cancelled by the in compliance with the request of the Corporation, cardan that it was no longer necessary for the Corporation 4 1651 11/W44 -3- to comPly with the regulations of the Board issued under section 25 of the Federal Reserve Act. On the basis of such information as the Board has at this time, we know of no reason why the matter referred to above should prejudice your rights to make application for authority under section 25 of the Federal Reserve Act to hold stock ln a new corporation to be engaged in international or 1?rsign banking, or to take steps to organize a corporation under section 25(a) of the Federal Reserve Act. Of „rurse, the ultimate disposition of any such application ould depend upon the facts and circumstances existing l!'t the time it is submitted to the Board. If you should criscide to make application for either of the privileges ,!ferred to above, it is suggested that you submit it to ":11,s Federal Reserve Bank of Boston, which will develop nIch information as it feels necessary before transmitLing the matter to the Board. copy of your letter of October 25 and a copy Of t C-4013.et 1 it o;rizs re being sent to the Federal Reserve Bank information." Approved unanimously. Letter to "The O'Laughlin Company", Chicago, Illinois, reading f°110Ws: of n_"This refers to your request addressed to the Board 0 of the Federal Reserve System under date of tc -vverllors ober " 1944, transmitted through the Federal Reserve at, °f Chicago, relating to the holding company affilia mlehip which will exist between The O'Laughlin CornteL Chicago, ?' Illinois, and the Prairie State Bank, Oak Illinois, upon the latter's conversion into a na1°nal bank. thA, "The Board understands that upon the conversion of Ild3.,rrairie State Bank into a national bank, your Company 0E4 ,, own 2,612 of the 4,000 outstanding shares of stock sto'c'ince national bank, but will not own or control any tution!fl or manage or control any other banking insti- that "In view of these facts, the Board has determinec! rectl,!our Company will not be engaged directly or indiin -or syg zratrboulzss in holding the stock of or mang- banks, banking associations, savings 1652 11/2/44 -4- "1?anks, or trust companies within the meaning of seci01 2(c) of the Banking Act of 1933, as amended; and, acc?rdingly, your Company will not be a holding company afflliate for any purposes other than those of section 23(a) of the Federal Reserve Act. If, however, after the conversion of the State ba .nk into a national bank, your Company should at any tl.me own or control a substantial portion of the stock . 1) :1! or manage or control more than one banking Institution, fla.s matter should again be submitted to the Board for Its de termination. The Board reserves the right to make urther determination at any time on the basis of the existing facts." M Approved unanimously, for transmission through the Federal Reserve Bank of Chicago. Memorandum dated November 2, 1944, from Ur. Carpenter, reading 43 f°110W$: "At the present time the Federal Reserve wire systern ,,, is served between Chicago and Washington by a duplex :trs (which permits sending from both ends of the circuit cl. ha, the same time). This line carries all of the business 8:: Irled over the wire system between (1) the Federal Reef' Boston, New York, Philadelphia, Richmond, (oN anta, their branches, and the Board of Governors, and ,\11-1) the remaining Federal Reserve Banks and their branches. waelresent switching facilities were installed in the office in 1940, and since that time there has been on-n an increase in the volume of business handled, based th,„111,TI L. thlY averages, of more than 40 per cent. Recently wii,h ' aleago-Washington wire at times has been congested, rme complaint because of the resulting delay. gra Yesterday word was received from the chief teletheh operator at the Treasury that it was expected that Si0, 1,11'ne of telegraph business in connection with the that“ ivar Loan drive would be substantially in excess of handled in connection with previous drives and that, -'8 additional facilities were set up between Washington 165" W444 -5- and Chicago, there probably would be serious delays in handling the business. "I have discussed the matter with Mr. Dillard, Chairmart of the Leased Wire Committee, and he has taken it up With the other members of that committee, all of whom approve the installation of a telemeter circuit on the . .2.11cago-Washington line to augment our existing facill'les. The cost of this circuit mould vary, depending , 11Pon the number of words sent, from a minimum of 010 Tao a maximum of $760 per month. "It is believed that this additional circuit is entirely Justified, and it is recommended that its installatlon be approved." Approved unanimously. Thereupon the meeting adjourned. Member.
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