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Minutes for
To:
Members of the Board
From:
Office of the Secretary
November 24, _1965
Attached is a copy of the minutes of the
Board of Governors of the Federal Reserve System on
the above date.
It is not proposed to include a statement
With respect to any of the entries in this set of
minutes in the record of policy actions required to
be maintained pursuant to section 10 of the Federal
Reserve Act.
Should you have any question with regard to
the minutes, it will be appreciated if you will advise
the Secretary's Office. Otherwise, please initial
below. If you were present at the meeting, your
If
initials will indicate approval of the minutes.
e
indicat
1
s
initial
You were not present, your
only that you have seen the minutes.
Chm. Martin
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. Mitchell
Gov. Daane
Gov. Maisel
3
Minutes of the Board of Governors of the Federal Reserve System
011 Wednesday, November 24, 1965.
The Board met in the Conference Room
adjacent to the Board Room at 9:30 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Balderston, Vice Chairman
Robertson
Shepard son
Mitchell
Daane
Maisel
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Mr. Young, Senior Adviser to the Board and
Director, Division of International Finance
Mr. Molony, Assistant to the Board
Mr. Fauver, Assistant to the Board
Mr. Hackley, General Counsel
Mr. Brill, Director, Division of Research and
Statistics
Mr. Farrell, Director, Division of Bank Operations
Mr. Solomon, Director, Division of Examinations
Mr. Johnson, Director, Division of Personnel
Administration
Mr. Kelleher, Director, Division of Administrative
Services
Mr. Kakalec, Controller
Mr. Harris, Coordinator of Defense Planning
Mr. Daniels, Assistant Director, Division of Bank
Operations
Mrs. Semia, Technical Assistant, Office of the
Secretary
Mr. Grimwood, Chief, Liaison Office, Office of
Defense Planning
Messrs. J. G. Dickerson, Jr., Vice President of
the Federal Reserve Bank of Richmond, and
Donald L. Strange-Boston of the firm of
Marcellus Wright & Partners, architects
Relocation facility.
Pursuant to previous authorization by
he Board, the Federal Reserve Bank of Richmond had engaged an architecplans
41'41 firm (Marcellus Wright & Partners) to prepare preliminary
11/24/65
-2-
to
for a joint relocation facility for the Board and the Richmond Bank,
be used during normal times principally as a communications and records
center, currency storage facility, and data processing center.
Various
aspects of the proposal were discussed in distributed memoranda from the
Division of Bank Operations dated November 19, 1965, from the Committee
°a Relocation Arrangements (Messrs. Farrell, Kelleher, and Harris) dated
November 22, 1965, and from Mr. Schwartz, Director, Division of Data
Processing, dated November 22, 1965.
relocation
At today's meeting Mr. Harris commented on the over-all
Plans of the Federal Government and the relation to them of the proposed
joint facility for the Board and the Richmond Reserve Bank.
d drawings and a
Messrs. Dickerson and Strange-Boston displaye
for
m°del showing the principal characteristics of the preliminary plans
the proposed facility and commented on the rationale underlying selection
sad accommodation of the various features incorporated therein.
They
thea responded to a number of questions raised by members of the Board
certain suggestions
indicated that consideration would be given to
that were made.
Board Room, with
The meeting then recessed and reconvened in the
all members of the Board present and the following members of the staff
in
attendance:
Mr.
Mr.
Mr.
Mr.
Sherman, Secretary
Kenyon, Assistant Secretary
Molony, Assistant to the Board
Fauver, Assistant to the Board
11/24/65
-3-
Mr. Hackley, General Counsel
Mr. Brill, Director, Division of Research and Statistics
Mr. Farrell, Director, Division of Bank Operations
Mr. Solomon, Director, Division of Examinations
Mr. Johnson, Director, Division of Personnel Administration
Mr. Kakalec, Controller
Mr. Hexter, Associate General Counsel
Messrs. O'Connell and Hooff, Assistant General Counsel
Mr. Leavitt, Assistant Director, Division of Examinations
l
Mr. Sprecher, Assistant Director, Division of Personne
Administration
Mr. Bass, Assistant Controller
Mrs. Semia, Technical Assistant, Office of the Secretary
the
Messrs. Heyde, Plotkin, Robinson, Sanders, and Shuter of
Legal Division
of
Messrs. Egertson, Lyon, Noory, and Sidman of the Division
Examinations
Discount rates.
The establishment without change by the Federal
and
Reserve Bank of Boston on November 22, 1965, of the rates on discounts
advances in its existing schedule was approved unanimously, with the unders tanding that appropriate advice would be sent to the Bank.
Circulated or distributed items.
The following items, copies of
which are attached to these minutes under the respective item numbers
indicated, were approved unanimously:
Item No.
!,etter to Valley Bank and Trust Company, Springfield,
4assachusetts, approving the establishment of a branch
at Boston and Fernbank Roads.
1
;1.?tter to Farmers State Bank of Illiopolis, Illiopolis,
waiving the requirement of six months' notice
ut withdrawal from membership in the Federal Reserve
SYstem.
2
Letter to the Federal Deposit Insurance Corporation
arding the application of American State Bank,
Lubbock, Texas, for continuation of deposit insurance
1.1,fter withdrawal from membership in the Federal
eserve System.
3
11/24/65
-4Item No.
Letter to the Federal Reserve Bank of San Francisco
aPProving a revision of the employees' salary
structures at the head office and branches.
4
Letter to the Federal Reserve Bank of St. Louis
aPProving the appointment of Beryl F. Jones as
Federal Reserve Agent's Representative at the
Memphis Branch.
5
Application of Society Corporation (Items 6 and 7).
There had
been distributed drafts of an order and statement reflecting the Board's
a pproval on October 11, 1965, of the application of Society Corporation,
Cleveland, Ohio, to acquire voting shares of The North Madison Banking
C°111Pany, North Madison, Ohio.
After a discussion during which agreement was expressed with
certain changes in the statement suggested by Governor Mitchell, the
issuance
of the order and statement was authorized.
Copies of the docu-
as Items 6
rilents, in the form in which they were issued, are attached
and 7
No. 8).
Application of Hunterdon County Trust Company (Item
There had been distributed a memorandum dated November 22, 1965, from
the
of an application
Division of Examinations regarding certain aspects
°f Hunterdon County Trust Company, Califon, New Jersey, to establish a
County.
ilranch in Annandale, Clinton Township, Hunterdon
A file on the
4PPlication had previously been circulated.
in March
The application was filed with the State authorities
1965,
and they had given their permission on November 15.
The application
-5-
11/24/65
was received in the Board's offices on November 16, and the branch was
established on November 18.
New Jersey law provided so-called office
in an officially
Protection, under which only a bank that had an office
constituted political subdivision such as a township could establish
additional de novo offices there.
In September 1965 two national banks
, which
applied for permission to establish branches in Clinton Township
had no banking office until Hunterdon County Trust Company opened its
branch there on November 18.
With the opening of that branch, the two
branches in
national banks were precluded by State law from establishing
the township.
considered
The memoranda stated that the factors usually
in connection with branch applications were satisfactory, and the entry
Of Hunterdon County Trust Company into the area should increase competition
in that it would provide another alternative to services offered by the
miles
nearest banking offices, which were branches from 2-1/2 to 4-1/2
for branches
away operated by the two national banks that had also applied
in
Clinton Township.
had prompted
Discussion included comments on the reasons that
Runterdon County Trust Company to open its branch in advance of approval
by the Board; on interest that had been evidenced in the matter by the
Press; and on the rules of priority that had for many years been observed
by the
applications.
Federal bank supervisory agencies in regard to branch
Comment was made that if the branch of Hunterdon County Trust Company
would have resulted in overbanking in the community or in probable damage
• r-T
it, )4. i
11/24/65
-6-
to an existing institution, it would seem appropriate for the Board to
deny the application, but such considerations were not present.
At the conclusion of the discussion the establishment of the
branch was approved unanimously as of today's date, such action to be
It was
announced routinely and without special explanation or comment.
understood that members of the press who made inquiries would be advised
that the application had been weighed in the light of all of the factors
ordinarily considered in connection with a branch application.
If
s pecific inquiry should be made as to whether the Board proposed to take
action under the Federal Reserve Act due to the opening of the branch
Prior to Board approval, response would be made in the negative.
A
copy of the letter in which the applicant was informed of the Board's
a pproval of the branch application is attached as Item No. 8.
San Francisco National Bank matter.
Mr. O'Connell reported for
s of
the Board's information regarding a suit filed by certain depositor
San Francisco National Bank, San Francisco, California (which had been
closed earlier this year), against the Federal Reserve Bank of San
4ancisco, the national bank and its directors, and the Federal Deposit
Insurance Corporation.
The complaints against the Reserve Bank alleged
that it had acted improperly in granting advances to the national bank
ile having knowledge that it was in perilous condition, and that the
4serve Bank had accepted collateral for those advances in excessive
amount and had selected that collateral from among the best assets of
- 381(
11/24/65
-7-
the national bank.
The suit asked a judgment that the Reserve Bank be
relegated to the status of a subordinated rather than a preferred creditor
and that it be required to give up the notes and securities it had received as collateral.
Service of the complaint had been made while
de positions were being taken from officers of the Reserve Bank in conElection with the pending suit brought by the Federal Deposit Insurance
Corporation against A. M. R., Inc., et al., and the taking of those
depositions had been discontinued pending stipulation of counsel or
court order.
It was understood that the Board would be kept informed of
further developments in regard to the litigation.
Regulation F:
form for filing amendments (Item No. 9).
There
had been distributed a memorandum dated November 23, 1965, from the Legal
Division and the Division of Examinations pointing out that many of the
te gistration statements and periodic reports filed with the Board pursuant
to Regulation F, Securities of Member State Banks, had required amendments to bring them into substantial compliance with the regulation.
Pot* reasons set out in the memorandum, it appeared that the best way
to advise banks clearly of the correct method of filing amendments would
be through the use of a form.
Porm
A draft of such a form (to be designated
20) was attached to the memorandum.
Publication of the form prior
to its adoption was believed unnecessary because the form was solely
fOr administrative convenience.
sk.
-8-
11/24/65
After discussion, the proposed form was approved unanimously,
with the understanding that it would be published in the Federal Register
as an addition to Regulation F.
A copy is attached as Item No. 9.
,
All members of the staff then withdrew except Messrs. Sherman
Kenyon, and Fauver and Mr. Morgan, Staff Assistant, Board Members'
0 fIces, entered the room.
Director appointments.
It was agreed to ascertain through the
Chairman of the Federal Reserve Bank of Dallas whether the following
Reserve Bank
Persons would accept appointment, if tendered, as Federal
°r branch directors for the terms indicated, with the understanding
would
that if it were found that they would accept, the appointments
be made, with public announcement near the end of 1965:
Houston,
Kenneth S. Pitzer, President, Rice University,
Bank
Reserve
Federal
the
of
r
directo
C
Texas, as a Class
1, 1966.
January
ng
beginni
term
ear
three-y
of Dallas for the
that Mr.
(It was understood that, if it should be learned
would be made
Pitzer was not available, a similar inquiry
Texas A. & M.
With respect to James Earl Rudder, President,
University, College Station, Texas.)
College, El Paso,
Joseph M. Ray, President, Texas Western
of the Federal
Texas, as a director of the El Paso Branch
beginning
term
ear
Reserve Bank of Dallas for the three-y
January 1, 1966.
Iron & Steel Company,
George T. Morse, Jr., President, Peden
Branch of the
Houston
the
Houston, Texas, as a director of
1, 1966,
January
ng
beginni
Federal Reserve Bank of Dallas,
r 31,
Decembe
g
expirin
term
ear
for the remainder of the three-y
had
who
Peters,
C.
Lovett
1966. (Mr. Morse would succeed
resigned.)
ent of General Business,
Francis B. May, Chairman of Departm
as a director of the
Texas,
University of Texas, Austin,
Bank of Dallas
Reserve
San Antonio Branch of the Federal
1, 1966.
January
ng
for the three-year term beginni
- 3812
11/24/65
-9-
resignation
It was noted that James McCormack had submitted his
as of the end
as a Class C director of the Federal Reserve Bank of Boston
of November 1965.
had
By telegram dated November 18, 1965, the Board
ment as
advised Charles W. Cole, Amherst, Massachusetts, of his appoint
a Class C director, to succeed Mr. McCormack, for the three-year term
beginning January 1, 1966.
tion, it was agreed
In view of the date of Mr. McCormack's resigna
that Mr. Cole's appointment should be made effective on a date earlier
be feasible.
than January 1, 1966, if inquiry revealed that this would
Request for BancOhio application.
Reference was made to a
tequest from Congressman Paul H. Todd, Jr., for access to the applicontrol
cation filed by BancOhio Corporation, Columbus, Ohio, to acquire
Of First National Bank of Jackson, Jackson, Ohio.
The application was
ing the
aPProved by the Board on October 11, 1965, but the order announc
decision had not yet been issued.
order and stateIt was agreed that upon issuance of the Board's
would be made
Trieht, which might be expected shortly, the application
av
ailable.
The meeting then adjourned.
Secretary's Notes: On November 23, 1965,
of
Governor Shepardson approved on behalf
items:
ng
followi
the Board the
Boston (attached Item No. 10)
Letter to the Federal Reserve Bank of
assistant examiner.
L-roving the appointment of James M. Scott as
pn
actions relating to the Board's
Memoranda recommending the following
staff:
- 384"
-10-
11/24/65
A ou_nent
of Research and Statistics,
Joyce Jamison as Librarian, Division
.
effective the date of
wlth basic annual salary at the rate of $6,476,
entrance upon duty.
A.c.S.tptance of resigag.tion
of Administrative Services,
John Huey Johnson, Messenger, Division
.
effective at the close of business November 26, 1965
on
Governor Shepardson today approved
from
um
rand
memo
behalf of the Board a
Division
Susan Chapman, Personnel Clerk,
esting
requ
on,
rati
of Personnel Administ
rtment
depa
l
loca
a
permission to work for
s.
basi
e
store on a part-tim
381 ,
Item No. 1
11/24/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
November 24, 1965
Board of Directors
Valley Bank and Trust Company,
Springfield, Massachusetts.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by Valley Bank and Trust
Company, Springfield, Massachusetts, of a branch at the
d,
corner of Boston Road and Fernbank Road, Springfiel
n
withi
d
lishe
is
estab
h
branc
the
Massachusetts, provided
r.
this
lette
of
date
two years from the
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke
Assistant Secretary.
the
(The letter to the Reserve Bank stated that
sion
exten
onth
six-m
a
Board also had approved
;
of the period allowed to establish the branch
sted,
reque
be
should
and that if an extension
the procedure prescribed in the Board's letter
wed.)
of November 9, 1962 (S-1846), should be follo
Item No. 2
11/24/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OF-F.1mm. CORRESPONDENCE
TO THE BOARD
November 24, 1965
Board of Directors,
farmers State Bank of Illiopolis,
Illiopolis, Illinois.
Ge
ntlemen:
The Federal Reserve Bank of Chicago has forwarded to the
rioard
of Governors a resolution by the board of directors of Farmers
Si. ate Bank of Illiopolis, Illiopolis, Illinois, dated November 2,
b 65, signifying your intention to withdraw from membership in the
Rtiederal Reserve System and requesting waiver of the six months'
Qtioe of such withdrawal.
The Board of Governors waives the requirement of six
111°Ilths i notice of withdrawal. Upon surrender to the Federal Reserve
Banu
-" of Chicago of the Federal Reserve Bank stock issued to your
stitution, such stock will be canceled and appropriate refund will
Be made thereon. Under the provisions of Section 208.10(c) of the
.ard'a Regulation H, your institution may accomplish termination of
rt‘s.membership at any time within eight months from the date the
'totice of intention to withdraw from membership was given.
O
j
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
Item No. 3
11/24/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, O. C. 20551
CE
ESPONDEN
ADDRESS OFFICIAL CORR
TO THE BOARD
November 24, 1965
,
The Honorable K. A. Randall, Chairman
ion,
orat
Corp
e
Federal Deposit Insuranc
Washington, D. C. 20429
Dear Mr. Randall:
er of November 16,
Reference is made to your lett
ion of American State Bank,
1965, concerning the applicat
r
nce of deposit insurance afte
Lubbock, Texas, for continua
em.
Syst
rve
Rese
ral
in the Fede
Withdrawal from membership
ve programs urged upon
There have been no correcti
not been fully
have
h
the bank, or agreed to by it, whic
that the Board
rams
prog
such
consummated, and there are no
as conditions of admitting the
would advise be incorporated
oration as a nonmember of the
bank to membership in the Corp
Federal Reserve System.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
Item No. 4
11/24/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS
°mow_
CORRESPONDENCE
TO THE BOARD
November 24, 1965
NTIAL
FR
,1!r. Eliot J. Swan, President,
Eederal Reserve Bank of San Franciscc,
San Francisco, California 94120.
Dear Mr. Swan:
1965, the Board of
As requested in your letter of November 4,
mum salaries for the
maxi
and
vernors has approved the following minimum
at the Federal
es
ctur
tGesPective grades of the employees' salary stru
I'
.
1966
1,
'serve Bank of San Francisco, effective January
GO
Grad
2
3
5
6
8
9
10
12
13
14
is
16
San Francisco Los Angeles
Minimum Maximum
Portland Seattle
Minimum Maximum
Salt Lake City
Minimum Maximum
$ 3,240 $ 4,320
4,620
3,420
4,920
0
3,60
5,220
0
3,90
5,640
4,200
6,120
4,560
6,720
4,920
7,380
5,460
8,220
6,060
9,120
6,720
10,140
7,500
11,220
8,340
12,480
9,240
13,920
10,320
15,480
11,400
17,100
12,660
$ 3,120 $ 4,080
4,380
3,300
4,680
3,480
5,040
3,720
5,520
0
4,08
0
6,06
0
4,50
6,600
4,920
7,260
5,340
8,040
6,000
8,940
6,660
7,380 • 10,020
11,100
8,220
12,140
9,000
13,320
9,900
14,560
10,860
15,940
11,820
$ 2,880 $ 3,720
3,960
. 3,000
4,200
3,120
4,560
3,360
5,040
3,720
5,580
4,140
6,180
0
4,62
6,900
0
5,10
7,740
0
5,70
8,640
6,360
9,660
7,140
10,740
7,860
11,800
8,760
12,980
9,660
14,380
10,620
15,760
11,640
Hr. Eliot J. Swan
-2-
Salaries should be paid to employees within the limits
8Pecified for the grades in which their respective positions are
classified. It is noted that all employees whose salaries are below
the minimum of their grades as a result of these structure increases
Will be brought within appropriate ranges by April 1, 1966
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Item No. 5
11/24/65
BOARD Or GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
•
ADDRESS OFFICIAL CORRESPONDENCE
TO THE SOAR°
November 24, 1965
M. Raymond Rebsamen,
Chairman of the Board
and Federal Reserve Agent,
Federal Reserve Bank of St. Louis,
St. Louis, Missouri. 63166
Dear Mr. Rebsamen:
ned in your letter of
In accordance with the request contai
approves the appointment of
November 12, 1965, the Board of Governors
sentative at the
Mr. Beryl F. Jones as Federal Reserve Agent's Repre
effective January 1,
Memphis Branch to succeed Mr. Leslie H. Fowler,
1966.
g that Mr. Jones
This approval is given with the understandin
the Board
will be solely responsible to the Federal Reserve Agent and
t that,
excep
s,
Of Governors for the proper performance of his dutie
or a
Agent
ve
Reser
during the absence or disability of the Federal
tant
Assis
the
to
vacancy in that office, his responsibility will be
Federal Reserve Agent and the Board of Governors.
duties as Federal
When not engaged in the performance of his
approval of the
the
may, with
Reserve Agent's Representative, Mr. Jones
the Memphis
of
e
charg
in
Federal Reserve Agent and the Vice President
sistent
incon
be
not
will
Branch, perform such work for the Branch as
tive.
senta
Repre
With the duties as Federal Reserve Agent's
is fully informed of the
It will be appreciated if Mr. Jones
of the staff of the
r
membe
a
importance of his responsibilities as
e of independence from
enanc
maint
Federal Reserve Agent and the need for
nsibilities.
the operations of the Bank in the discharge of these respo
with the approval by the
It is noted from your letter that,
usual Oath of Office
Board of Governors of Mr. Jones' appointment, the
with signature cards.
will be executed and forwarded to the Board along
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
382(
Item No. 6
11/24/65
UNITED STATES OF AMERICA
THE FEDERAL RESERVE SYSTEM
BEFORE THE BOARD OF GOVERNORS OF
WASHINGTON, D. C.
14 the Matter of the Application of
aSOCIETY CORPORATION,
'leveland, Ohio,
1c)r approval of the acquisition of
Madison
Ifb°ting shares of The North
Ohio,
Madison,
'
4aracing Company, North
UNDER
ORDER APPROVING APPLICATION
BANK HOLDING COMPANY ACT
of Governors, pursuant to
There has come before the Board
Company Act of 1956
8ecti0n 3(a)(2) of the Bank Holding
222.4(a)(2) of Federal Reserve
(12 U.S.C. 1342(a)(2)) and section
of Society CorporaR egulation Y (12 CFR 222.4(a)(2)), an application
bank holding company, for the
Cleveland, Ohio, a registered
of 30 per cent or more of
Board's prior approval of the acquisition
Madison Banking Company, North Madison,
the voting shares of The North
3(b) of the Act, the Board
In accordance with section
receipt of the
40tified the Ohio Superintendent of Banks of
- 3821
-2-
aPplication and requested his views and recommendation thereon.
The
S4Perintendent recommended approval of the application.
Notice of receipt of the application was published in the
Pederal Register of July 14, 1965 (30 F. R. 8069), providing an
°PPortunity for interested persons to submit comments and views with
respect to the proposed acquisition.
The time for filing such comments
444 views has expired, and all those received have been considered
by the Board.
IT IS HEREBY ORDERED, for the reasons set forth in the
Boas Statement of this date, that said application be and hereby
is a
Pproved, provided that the acquisition so approved shall not be
c°tIsummated (a) within seven calendar days after the date of this Order
°r (b) later than three months after said date.
Dated at Washington, D. C., this 24th day of November, 1965.
By order of the Board of Governors.
Voting for this action:
Unanimous, with all members present.
(Signed) Merritt Sherman
flerritt Sherman,
Secretary.
Pia? r
Item No. 7
11/24/65
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
APPLICATION BY SOCIETY CORPORATION, CLEVELAND, OHIO,
FOR APPROVAL OF THE ACQUISITION OF SHARES OF
THE NORTH MADISON BANKING COMPANY, NORTH MADISON, OHIO
STATEMENT
red
Society Corporation, Cleveland, Ohio ("Applicant"), a registe
baalk holding company, has filed with the Board, pursuant to section 3(a)(2)
(If the Bank Holding Company Act of 1956 ("the Act"), an application
f°r approval of the acquisition of 80 per cent or more of the voting
Mares of The North Madison Banking Company, North Madison, Ohio ("Bank").
ty. - As
Views and recommendation of supervisory authori
required by section 3(b) of the Act, notice of receipt of the applicatiollwas given to, and views and recommendation requested of, the Ohio
SI1Perintendent of Banks.
The Superintendent recommended approval of
the application.
s the
Statutory factors. - Section 3(c) of the Act require
„
to4
4.0 to take into consideration the following five factors in acting
'Pon this application: (1) the financial history and condition of
the holding company and the banks concerned; (2) their prospects;
(3)
e
the character of their management; (4) the convenience, needs, and
or
are of the communities and the area concerned; and (5) whether
extent
11°t the effect of the acquisition would be to expand the size or
- 3823
-2-
ts consistent
Of the bank holding company system involved beyond limi
ic interest, and the preserva14ith adequate and sound banking, the publ
ti(3n of competition in the field of banking.
prospects, and management of
Financial history, condition,
bank holding company in
4Ulicant and Bank. - Applicant became a
banks:
January 1965, and presently controls two
Society National
Bank Company,
Eank of Cleveland ("National"), and The Fremont Savings
banks operated 18 bankremont, Ohio. At December 31, 1964,1/— these
million in deposits.
Offices and, combined, held $555
National,
ated 16 of these offices and
APPlicant's principal subsidiary, oper
held $537 million of deposits.
is largely determined by
Applicant's financial condition
arly National.
the condition of its subsidiary banks, particul
mutual savings bank,
national was organized by Society for Savings, a
44d commenced business in January 1956.
As of December 31, 1953,
its accounts wore transSc)eiety for Savings commenced dissolution, and
ng a substantially
red to National, resulting in National havi
larger percentage of time and savings deposits than have other comcial banks of comparable size.
Uhile National's net earnings
earnings and invested capital is
eition in relation to its gross
'
Pc
ercial banks of similar size,
"mewhat lower than that of other comm
total deposits represented
114e principally to the large portion of its
's past operation and history
time and sayings accounts, National
ing data noted are as of
Unless otherwise indicated, all bank
-uis
date.
,
3c4"'
-3-
the conclusion
of growth, particularly in demand deposits, warrant
that its - and therefore Applicant's - prospects for sound and
factory.
Profitable future operations are satis
The managements of
factory.
APPlicant and its subsidiary banks are considered satis
business in 1956, and its
Bank was organized and commenced
its at year-end 1964.
(411Y Office had nearly $4 million in total depos
cts are considered
Its financial history and condition and its prospe
to be satisfactory.
satisBank's management is also considered to be
has not fully met
factory, although it appears that such management
and
the credit needs of the area, especially with respect to mortgage
t loans.
"nsumer loans, and some types of installmen
As a result,
been substantially less
Eank's percentage of loans to deposits has
on
hip.
than that for other banks shown to be competing within iladis Tcwns
aggressive managemont,
Affiliation with Applicant should result in more
labich, in turn, would be expected to enhance Bank's prospects.
the financial history,
Accordingly, considerations bearing on
tlIndition, prospects, and management of Applicant and Bank are consistent with approval of the application.
the communities and the
Convenience, needs, and welfare of
4=94_2921.unn21. -
of Cleveland
North Hadison is located 42 miles east
14 liadison Township, Lake County, Ohio.
The current population of
the current population
144ke County is estimated to be 182,000, and
2/
Of
of Bank,— is estimated
area
ce
servi
ry
prima
the
hip,
tladison Towns
of its
The area from which Bank obtains approximately 71 per cent
ns.
ratio
corpo
and
'Posits of individuals, partnerships,
-4-
to be 10,000.
y a suburban residential
Madison Township is predominantl
al sections.
area having some agricultural and industri
The principal
on.
Q 'ricultural activity in the area is nursery producti
Eight light
approximately 240, also
industries, with a total labor force of
ni/erate within the service area.
isition of Bank will enable
Applicant asserts that its acqu
ram to the individuals and busi
Ilank to (1) improve its lending prog
electronic data processing
rienses in the area, (2) have access to
nt management services, and
eltliPment, (3) offer securities investme
(4)
to its customers.
Provide new and additional services
d, the Board is satisfied
On the basis of the record presente
that
ice rendition would prove of
Applicant's proposed improved serv
s and businesses
ci4ect benefit to Bank, and indirectly to the resident
4
(
'ank's primary service area.
adequate and sound hankivig,
Effect of proposed acquisition on
egate deposits
ing competition. - The aggr
Jaic interest, and bank
two banks would, by the addition
million held by Applicant's
about $559 million.
°E Bank to Applicant's system,be increased to
more than three per cent of
"ticant would then control slightly
the
than four per cent of the
total deposits in Lake County and less
total deposits in the State of Ohio.
ion to be anticipatad by
The effect on banking competit
th
s would be concentrated in
-xtentto which banking resource
401,1,
t's acquisiton of Bank to be
Lng company groups, were Applican
'
-5-
- 382C
n requiring
Board as a consideratio
e°11summated, is nct viewed by the
umbus, Ohio, the
io Corporation, Col
cOh
Ban
on.
ati
lic
app
aal
c
of the
ing in the State,
g company now operat
antY other registered bank holdin
has
nties in which Applicant
has no subsidiaries in any of the cou
(31'1411 have subsidiaries.
king systems
largest banks and ban
In addition, the five
5 per cent of all
1964 controlled 16.
nd
r-e
yea
at
o
Ohi
ng
in
ati
°Pet
of all banks in
cent of the deposits
per
4
33.
and
s
ice
g
off
kin
ban
ing a
tem of 22 banks, operat
the State. BancOhio Corporation's sys
ranked fourth in
million in deposits,
total of 71 offices with $809
operating 18 offices
system of two banks,
44e, and Applicant's present
in
fifth in size. Measured
with $555 million in deposits, ranked
e each larger than
independent banks wer
tellus of deposits held, three
y system, and
either holding compan
the combined bank subsidiaries of
t and 23.9 per
ted for 10.2 per cen
together these three banks accoun
in the State.
offices and deposits
cant, respectively, of the
application
bar to approval of the
no
n,
nio
opi
s
rd'
In the Boa
ch Applicant's ownerof the extent to whi
is
n
tio
era
sid
con
Presented by
eclose future
sting competition or for
exi
ate
min
eli
of Bank would
approval
's subsidiaries. With the
Competition between Bank and Applicant
tiguous
l be operating in two con
wil
ant
lic
App
on,
the
°f
applicati
d, and Lake County
n National is locate
rei
whe
nty
Cou
ga
"unties - Cuyaho
er subsidiary,
located. Applicant's oth
is
ice
off
y
onl
/4herein Bank's
miles west of Cleveland
pany, is located 85
Com
k
Ban
s
ing
Sav
/he Fremont
in Sandusky County.
or no competition
There presently exists little
between Applicant's subsidiaries and Bank.
The nearest branch of
, 32 miles west of Bank,
National to North Madison is in Euclid, Ohio
and
located between Euclid and
several offices of other banks are
North Madison.
North Madison area is
Bank's principal competitor in the
esville, Ohio,
the Lake County National Bank of Painesville, Pain
offices and held
Mitch at June 30, 1964, operated eight banking
d for 52 per cent of the
42 million of total deposits, which accounte
total deposits in Lake County.
two
One of these offices is located
south of Bank, in Madison.
va,
Bank also competes with four Gene
three Ashtabula, Ohio, banks:
branch offices of the following
ion; (2) The Farmers
(1) The Commercial Bank, with deposits of $6 mill
The
deposits of $35 million; and (3)
44tionel Bank and Trust Co., with
'
Northeastern Ohio National Bank with deposits of $29 million,
six miles east of Bank. In
Ceneve is located in Ashtabula County,
l competitors has
/Flew of the fact that each of Bank's principa
Bank, and since no subsidiary
Posits comparable to or greater than
concerned,
significant extent in the area
f Applicant competes to any
ion
it appears to the Board that consummation of the proposed acquisit
present competitive picture in that
14°4141 not significantly alter the
titeas
ns warrant, in the Board's
The foregoing consideratio
acquisition proposed would not result
°Pinion, a finding that the
30, 1964.
ueposit figures are as of June
-7t's system inconsistent
in an expansion of the size or extent of Applican
, or the preservation
vith adequate and sound banking, the public interest
°f banking competition.
vant facts as contained in
On the basis of all the rele
the light of the factors set
the record before the Board, and in
d's judgment that
erth in section 3(c) of the Act, it is the Boar
with the public interest,
the proposed transaction would be consistent
and that the application should, therefore, be approved.
kveinber 24. 1965.
382t:'
Item No. 8
11/24/65
RNORS
BOARD OF GOVE
OF THE
STEM
FEDERAL RESERVE SY
20551
WASHINGTON, O. C.
EBPONDENCE
ADDRESS orriciAL C0RR
TO THE BOARD
November 24, 1965
Board of Directors,
y,
Hunterdon County Trust Compan
.
sey
Califon, New Jer
Gentlemen:
the Federal
The Board of Governors of
ment by
ish
abl
est
Reserve System approves the
n, New
ifo
Cal
y,
Compan
Hunterdon County Trust
ip
nsh
Tow
n
nto
Cli
Jersey, of a branch in the
ted
ora
orp
inc
(un
ale
Municipal Building, Annand
,
nty
Cou
don
ter
Hun
area), Clinton Township,
New Jersey.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
4
tOr -r
TITLE 12 - BANKS AND BANKING
Item No. 9
11/24/65
CHAPTER II - FEDERAL RESERVE SYSTEM
VE SYSTEM
SUBCHAPTER A - BOARD OF GOVERNORS OF THE FEDERAL RESER
[Reg. F]
PART 206 - SECURITIES OF MEMBER STATE BANKS
Form for Amendments
is added:
1. Effective December 1, 1965, the following
206.45 Form for amendment to registration statement or periodic report
of bank Form F-20).
FORM F-20
REPORT OF BANK
AMENDMENT TO REGISTRATION STATEMENT OR PERIODIC
General Instructions
A.
be used as a
The form set forth hereinafter is not to
blank form to be filled in but is intended solely as a guide in the
filed registration stateParation of an amendment to a previously
or report.
ements
Attention should be given to the general requir
in § 206.4(u).
g(Iverning amendments, which are prescribed
B.
and caption of each
The amendment shall contain the number
ted, as amended,
item being amended and each such item shall be resta
ill its entirety.
a note or schedule
Where a financial statement, or
note, or schedule
related thereto, is being amended, such statement,
likewise shall be restated in its entirety.
M
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTE
20551
C.
D.
,
ngton
Washi
orZ c)
‘..4.4. Is
AMENDMENT NUMBER
to
1/
on
FORM F-
2/
Pursuant to Section 12 or 13 of the
Securities Exchange Act of 1934
charter)
(Exact name of bank as specified in
(Address of principal office)
the following items,
The undersigned bank hereby amends
financial statements or exhibits, constituting part of the aforesaid
s tatement or report, as set forth in the pages attached hereto:
ments, exhibits,
(List all such items, financial state
ed).
or other portions amend
the Securities Exchange Act
Pursuant to the requirements of
this amendment to be signed on its
Qf 1934, the bank has duly caused
duly authorized.
behalf by the undersigned, thereunto
Name of Bank
Date
By
(Print name and title of signing officer
under signature)
ed,
n of statement or report being amend
1
---7— Indicate appropriate designatio
ended
"Annual Report for year
such as "Registration Statement" or
•
December 31, 19 ".
which the statement or report was
V Indicate the number of the form on
filed, such as "Form F-1".
-3-
Dated at-Washington, D. C.,- this 26th day of November, 1965.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
ANNEMINIMMEIMMIEMENEEm
-
Item No. 10
11/24/65
BOARD OF GOVERNORS
.....
' Of Got;•
.cf
•
4k&.'
4: *
k
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
CE
ADDRESS orriciAt. CORRESPONDEN
TO THE BOARD
November 23, 1965
Vice President,
Mr. Luther M. Hoyle,'Jr.„
on,
Bost
Federal Reserve Bank of
06
021
Boston, Massachusetts.
Dear Mr. Hoyle:
est contained in
In accordance with the requ
1965, the Board approves
ydur letter of November 12,
Scott as an assistant
the appointment of James M.
rve Bank of Boston. Please
examiner for the Federal Rese
the appointment.
advise the effective date of
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
@FedFRASER