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Minutes of actions taken by the Board of Governors of the Fedeta' Reserve System on Friday, November 28, 1947. PRESENT: Mr. Mr. Mr. Mr. Draper Evans Vardaman Clayton Mr. Mr. Mr. Mr. eraa R Carpenter, Secretary Sherman, Assistant Secretary Morrill, Special Adviser Thurston, Assistant to the Chairman Minutes of actions taken by the Board of Governors of the Fed- °serve system on November 26, 1947, were approved unanimously. Telegrams to the Federal Reserve Banks of Cleveland, Richmond, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco stating that the Board approves the establishment without change by the Nleral Pederal Niers.' Reserve Banks of Chicago and San Francisco on November 25, by the Reserve Banks of St. Louis and Minneapolis on November 26, by the Reserve Bank of Cleveland on November 27, 1947, and by the Fed- eral Reserve Banks of Richmond, Minneapolis, Kansas City, and Dallas today or the rates of discount and purchase in their existing schedules. Approved unanimously. or R Letter to Mr. Wayne, Vice President of the Federal Reserve Bank ds reading as follows: of "In accordance with the request contained in your letter j Nrember 24, 1947, the Board approves the designation of e;. 111ette Turner as a special assistant examiner for the Fed4' Reserve Bank of Richmond." Approved unanimously. Letter to Mr. Fletcher, First Vice President of the Federal Re1311k of Cleveland, reading as follows: 11/28/4 7 -2- "This refers to your letter of November 13, 19470 and ite enclosures, relating to the question whether The John Coppin Company is an affiliate of The Peoples-Liberty ank and Trust Company, Covington, Kentucky. "It appears that a majority of the voting shares of The John R. Coppin Company are held jointly by The PeoplesLiberty Bank and Trust Company and three individuals as cotrustees under a will, and that your Counsel reached the conclusion that the company is an affiliate of the bank by reason of this fact. Following the principles of the ruling Published in the Federal Reserve Bulletin for October 1933, ! t Page 651, it has been the Board's position that the fact at a member bank is one of two or more co-fiduciaries holda majority of the voting shares of a corporation does not ause the corc,oration to be an affiliate of the bank where the bank cannot vote the shares independently and contrary 0,the wishes of its co-fiduciaries. From the information submitted, it is understood that The Peoples-Liberty Bank Ectnd Trust Company cannot vote the shares of The John R. i°Ploln Company independently and contrary to the wishes of ,us co-trustees. Further, while one of the individual cois a director of the bank, it does not appear that 1he ,e Properly can be deemed to be controlled by the bank merely "ecause he is one of its directors, and there is no other in:°rraation indicating that any of the individual co-trustees Zie controlled by the bank. c :Accordingly, it is the Board's opinion that The John R. the'in Company is not an affiliate of the bank by reason of fact that the bank is one of the co-trustees holding a J°rity of its voting shares." Z Approved unanimously. Letter to Mr. Wayne, Vice President of the Federal Reserve Bank litchra°11d, reading as follows: 8,, "Reference is made to your letter of November 18, 1947, taraitting the request of The Fidelity Trust Company, Baltii,r2 Maryland, for approval of the establishment of a branch lowson, Maryland, in connection with the proposed absorption rc)ugh merger of the Bank of Baltimore County, Towson, Maryland. In view of your recommendation, the Board of Governors :Prove5 ; 4 1 the establishment and operation of a branch in Towson, „rYland, by The Fidelity Trust Company, Baltimore, Maryland, '4°Nrided its merger with the Bank of Baltimore County is efcted substantially as proposed and formal approval of the 11/28/47 appropriate State authorities is obtained with the under— standing that counsel for the Reserve Bank will review and . ,stiseiY himself as to the legality of all steps taken to ef feet the merger and establish the branch." Approved unanimously. Thereupon the meeting adjourned. red:
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