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er 17, 1958
Minutes for Octob
To:
Members of the Board
From:
Office of the Secretary
Attached is a copy of the minutes of the
on
Board of Governors of the Federal Reserve System
the above date.
It is not proposed to include a statement
with respect to any of the entries in this set of
to
minutes in the record of policy actions required
al
Feder
be maintained pursuant to section 10 of the
Reserve Act.
d
Should you have any question with regar
will
you
to the minutes, it will be appreciated if
you
advise the Secretary's Office. Otherwise, if
colin
were present at the meeting, please initial
es.
minut
the
umn A below to indicate that you approve
B
n
colum
in
If you were not present, please initial
es.
below to indicate that you have seen the minut
A
Chin. Martin
Gov. Szymczak
Gov. Vardaman 1/
Gov. Mills
Gov. Robertson
Gov. Balderston
x
Gov. Shepardson
1/
In accordance with Governor Shepardson's memorandum of March 3, 1957, these minutes are not
being sent to Governor Vardaman for initial.
2984
Minutes of the Board of Governors of the Federal Reserve System
on Friday, October 17, 1958.
The Board met in the Special Library at
10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Szymczak, Acting Chairman
Mills
Robertson
Shepardson
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant Secretary
Hackley, General Counsel
Masters, Director, Division of Examinations
Solomon, Assistant General Counsel
Hexter, Assistant General Counsel
Hostrup, Assistant Director, Division of
Examinations
Mr. Davis, Assistant Counsel
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Discount rates.
Unanimous approval was given to telegrams to
the following Federal Reserve Thanks approving the establishment without
change by those Banks on the date indicated of the rates on discounts
and advances in their existing schedules:
New York
Philadelphia
Chicago
Minneapolis
Items circulated to the Board.
October
October
October
October
16,
16,
16,
16,
1958
1958
1958
1958
The following items, which had
been circulated to the members of the Board and copies of which are
numbers indicated,
attached to
these minutes under the respective item
were approved unanimously:
Item No.
Letter to the Federal Reserve Bank of Boston regarding
t
Ilhether free armored car service constitutes an indirec
PaYment of interest under Regulation Q.
1
tter to the Jenkintown Bank and Trust Company, Jenkintown,
a branch in the
,7nnsylvania, approving the establishment of
transederwood Shopping Center, Abington Township. (For
lphia)
Philade
of
Bank
through the Federal Reserve
2
2985
10/17/58
-2Item No.
Letter to the Windber Trust Company, Windber,
Pennsylvania, consenting to its absorption of
The St. Michael National Bank, St. Michael,
Pennsylvania, and approving the establishment
of a branch in St. Michael. (For transmittal
through the Federal Reserve Bank of Cleveland)
3
Letter to The Union Commerce Bank, Cleveland,
extending the time for establishment of a branch
in the vicinity of 5000 Turney Road, Garfield
Heights. (For transmittal through the Federal
Reserve Bank of Cleveland)
Letter to the Farmers & Merchants National Bank
Of Blacksburg, Blacksburg, Virginia, approving
its application for fiduciary powers. (For
transmittal through the Federal Reserve Bank of
Richmond)
Letter to the Malone Insurance & Investment
Corporation, Milton, Florida, advising that
the company has been determined not to be a
holding company affiliate except for the purposes
Of section 23A of the Federal Reserve Act. (For
transmittal through the Federal Reserve Bank of
Atlanta)
5
6
Letter to the Pascagoula-Moss Point Bank, Moss
aint, Mississippi, approving an investment in
ank premises. (For transmittal through the
Pederal Reserve Bank of Atlanta)
t
Letter to the Farmers and Merchants State Bank
°t Sebewaing, Sebewaing, Michigan, consenting to
its absorption of The State Savings Bank of Gagetown,
Gagetown, Michigan, and approving the establishment
2r a branch in Gagetown. (For transmittal through
',he Federal Reserve Bank of Chicago)
Letter to the Corydon State Bank, Corydon, Iowa,
roving its request for permission to exercise
-uciary powers. (For transmittal through the
.'ederal Reserve Bank of Chicago)
8
9
2986
10/17/58
-3Item No.
Letter to Jones & Soward, Lawyers, advising that the
First Insurance Agency, Inc., Goodland, Kansas, has
been determined not to be a holding company affiliate
except for the purposes of section 23A of the Federal
Reserve Act. (For transmittal through the Federal
Reserve Bank of Kansas City)
10
Application of BancOhio Corporation for approval of acquisition
of The Kenton Savings Bank.
Prior to the meeting there had been dis-
tributed to the members of the Board memoranda from the Legal Division
and the Division of Expminations dated October 8, 1958, relative to the
aPPlication, pursuant to section 3(a)(2) of the Bank Holding Company Act,
by the
BancOhio Corporation of Columbus, Ohio, for prior approval of the
acquisition of up to 100 per cent of the 3,000 outstanding shares of
capital stock of The Kenton Savings Bank, Kenton, Ohio.
One memorandum
1'r'041 the Division of Examinations provided the factual material concerning
this application, including the recommendation for approval by the Superintendent of Banks for the State of Ohio.
The foregoing memorandum would
constitute the "record" in regard to this application for the purposes of
judicial review.
The other contained the comments, opinions, and recom-
Mendations of the Federal Reserve Bank of Cleveland and the Division of
-nations regarding the subject case.
Both the Cleveland Bank and the
1)Ivision of Examinations recommended favorable consideration of the BancOhio
aPplication.
been placed in the
Copies of all three of the memoranda have
Board's files.
In summarizing for the Board the pertinent factors in this matter,
Hostrup cited the financial history, condition, and prospects of both
29S?
10/17/58
BancOhio and the Kenton bank as favorable.
A feature of the application
was the provision it would make for strong management succession at the
of management, a
Kenton bank, which had failed to provide for continuity
ive officer of the
Problem accentuated by the recent death of an execut
bank.
that The Kenton
Mr. Hostrup also stated that the Division felt
would be more
Savings Bank, operated under the control of BancOhio,
the past, and
aggressive in serving the community than it had been in
the community.
this would undoubtedly be a stimulus to other banks in
particularly
While the convenience, needs, and welfare factor was not
strong in this case, it was positive rather than negative.
of BancOhio
With regard to the effect of the proposed expansion
On adequate and sound banking, the public interest, and the preservation
these factors
Of competition, Mr. Hostrup said that the Division felt that
Board's
provided neither favorable nor unfavorable elements for the
consideration.
es in
BancOhio had a strong position in the 19 counti
be true
Ohio in which it was presently operating and this would still
if Hardin County were added to its area of influence.
This was primarily
the Columbus area,
because of the strong position that BancOhio held in
and the proposed acquisition would not materially alter the concentration
of banking power in Ohio.
The Division did not feel that acquisition of
competition for the
The Kenton Savings Bank would provide overwhelming
indication that the acquiexisting banks in the area, and there was no
interest.
sition would be contrary to the public
2983
-5-
10/17/58
Mr. Hackley then stated that it would be possible legally to
support either an approval or a disapproval of this application.
While
he preferred to express views only on legal matters, if the judgment of
the Legal Division were to be asked, he would concur with the recommendation of the Division of Examinations.
It was true that the holding
of the Kenton
company system would be extended somewhat by acquisition
over it would
bank, but in view of the smallness of the bank being taken
expansion.
be difficult to construe the acquisition as constituting undue
He reminded the Board that in many respects this application was similar
to that of Marine Midland some time ago in which it sought and received
the Board's approval to acquire one of three banks in Dunkirk, New York.
d
Governor Mills pointed out that the evidence presente demonstrated
that BancOhio had not been aggressively seeking to expand its holding
company operations.
It was also clear, he said, that even in those
large had not
instances where it had added banks, competition by and
sultered.
that if
Looking to the future, however, it was his view
have to be
BancOhio should submit additional applications, these would
on into new
Carefully screened particularly if they involved expansi
banking areas.
Ohio is a
On the other hand, Governor Mills noted that
financial instilarge State with many important banking areas and large
tutions.
Of
for a counterbalancing
These circumstances afforded opportunities
of correspondent I:walking
BancOhio operations through effective networks
relationships.
he felt the existing
Through correspondent banking services
vely.
independent banks were able to compete effecti
10/17/58
-6-
Thereupon the Board unanimously approved the application of the
BancOhio Corporation for permission to acquire the voting shares of The
Kenton Savings Bank, Kenton, Ohio, and it was understood that the Legal
Division would proceed with the drafting of a tentative decision and
statement which would be considered by the Board at an early date and
then released publicly in accordance with the procedure adopted by the
Board on September 26, 1958.
Leave of absence for Robert E. Eimer (Item No. 11).
Prior to
this meeting there had been distributed a memorandum dated October 14
from Mr. Marget relating to a letter from the Federal Reserve Bank of
Chicago dated October
8, 1958, concerning a leave of absence without
PEW for Robert E. Emmer,an economist in the Bank's research department.
Mr. Emmer had been granted a leave of absence without pay for 2-1/2 years
beginning March 111 1957, in order that he might accept an assignment with
the International Cooperation Administration in Pakistan, and through
inadvertence the matter had not previously been brought to the Board's
attention.
The Division of International Finance recommended that the
Board interpose no objection to this leave.
Thereupon the Board unanimously approved the letter attached to
these minutes as Item NO. 11 advising the Chicago Bank that it interposed
40 objection to the leave of absence for Mr. Emmer.
All of the members of the staff then withdrew from the meeting
441 the Board went into executive session.
2990
10/17/58
-7-
Outside business and teaching activities.
The Secretary was
informed later by Governor Shepardson that during the executive session
the Board gave consideration to outside business and teaching activities
reported by members of the Board's staff, as summarized in a memorandum
from the Division of Personnel Administration dated September 29, 1958,
and interposed no objection to the various activities reported.
In addition, no objection was interposed by the Board to service
by Mr. Wendell E. Thorne, Assistant to the Director of the Division of
International Finance, as a director of a newly-formed corporation known
as Plasticove Sales of Salt Lake City, Utah.
This matter was presented
III a memorandum from Mr. Marget dated October 14, 1958.
Use of privately owned automobiles by members of the field
eXamining staff (Item No. 12).
The Secretary's Office was also advised
that the members of the Board had concurred in Governor Shepardson's
members
action approving a memorandum dated October 16, 1958, to 01
Of the field examining staff relating to the use of privately owned
of
automobiles by members of the field examining staff as a means
Performing official travel.
A copy of the memorandum is attached to
these minutes as Item No. 12.
The meeting then adjourned.
Secretary's Note: Pursuant to recommendations
ls
contained in memoranda from appropriate individua
on
concerned, Governor Shepardson today approved
behalf of the Board the following items affecting
the Board's staff:
APpointment
Research and
Marie M. Knarr as Statistical Clerk, Division of
effective
$'3,850,
of
rate
the
at
Statistics, with basic annual salary
the date she assumes her duties.
2991
10/17/58
Salary increases
Marjorie Eaton, Secretary in the Office of the Secretary, from
$5,390 to $5,580 per annum, effective October 19, 1958.
James A. McIntosh, Analyst in the Division of Bank Operations, from
$5,240 to $5,430 per annum, effective October 19, 1958.
Transfer
Willa I. McChesney, from the position of Clerk-Stenographer in the
Division of Personnel Aftinistration to the position of Clerk-Stenographer
in the Division of Administrative Services, with no change in her basic
annual salary at the rate of $3,755, effective October 19, 1958.
Outside business activity
James H. Newton, Messenger, Division of Administrative Services, to
work as a Night Watchman for the Associated General Contractors.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. 1
10/17/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October 17, 1958
Mr. J. A. Erickson, President,
Federal Reserve Bank of Boston,
Boston 6, Massachusetts.
Dear Mr. Erickson:
This is in response to your letter of September 17, 1958,
asking that the Board reconsider its letter of January 23, 1957
(S-.1617; F.R.L.S. #62U), particularly with reference to the question whether the use of armored car and messenger service by member
banks in making free deliveries constitutes an indirect payment of
interest under Regulation Q.
As indicated in the Board's January 23, 1957 letter, it was
the conclusion of the Board, after careful consideration of the matter,
that the various services involved in that case, including free armored
oar and messenger service, involved only agreements by the member bank
such
concerned to refrain from making charges against depositors for
normal
as
regarded
be
y
services and that those services might reasonabl
" of
"payments
indirect
banking services and therefore not as involving
long
a
for
has
Board
the
interest on deposits. However, as you know,
time been concerned because of the difficulty of applying the provisions of the Federal Reserve Act relating to indirect payment of
of
interest on deposits. The problem was called to the attention
ations
recommend
Congress by the Board in October 1956, as a part of its
Banking
for changes in Federal banking laws submitted to the Senate
and Currency Committee, but the Board's recommendation for solution
5 the problem was not incorporated in drafts of the proposed
"Financial Institutions Act".
considered
In the light of your letter the Board has again
indirect
an
involves
the question whether free armored car service
es the
Payment of interest on deposits. The Board fully appreciat
of the
result
the
as
competitive problems that exist in your District
;
their
customers
to
service
Practice of certain banks of affording this
secother
in
exists
also
and it may be assumed that the same problem
tions of the country. However, the extension of armored car service
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
J. A. Erickson
to depositors has apparently become a widespread and accepted part
of commercial banking practice. Consequently, while recognizing the
competitive inequities that may result from this practice in the
absence of a clarifying amendment to the statute, the Board feels
that it would be undesirable at this time to take any action reversing
the position taken by it in 1957 with respect to this matter.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2,
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 2
10/i7/58
WASHINGTON 25, D. C.
AOOREE113 OFFICIAL CORREMPONOENCE
TO THE BOARO
October
17, 1958
Board of Directors,
Jenkintown Bank and Trust Company,
Jenkintown, Pennsylvania.
Gentlemen:
the
Pursuant to your request submitted through
Governors
of
Board
the
Federal Reserve Bank of Philadelphia,
of the Federal Reserve System approves the establishment of
a branch in the Baederwood Shopping Center, Abington Township,
Bank and
Montgomery County, Pennsylvania, by the Jenkintown
branch
the
provided
Trust Company, Jenkintown, Pennsylvania,
this
of
date
the
is established within twelve months from
letter.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2990
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item Noo 3
10/17/58
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October 17, 1958
Board of Directors,
Windber Trust Company,
Windber, Pennsylvania.
Gentlemen:
The Board of Governors of the Federal Reserve System
hereby gives its consent under the provisions of Section 18(c)
of the Federal Deposit Insurance Act to the absorption of The
St. Michael National Bank, St. Michael, Pennsylvania, by Windber
Trust Company, Windber, Pennsylvania, and approves the establishTrust
ment of a branch in St. Michael, Pennsylvania, by Windber
Company, provided,
(1) the
are
and
the
branch
proposed absorption and establishment of the
this
letter
effected within six months from the date of
n
betwee
nt
substantially in accordance with the agreeme
parties dated July 23, 1958,
St. Michael
(2) no securities or stocks are acquired from The
e by a member
purchas
National Bank which are ineligible for
bank,
s acquired from
(3) investment securities and banking premise
on the books
placed
The St. Michael National Bank are not
of the market
excess
in
of Windber Trust Company in amounts
tax purincome
l
Federa
value and the depreciated value for
poses, respectively, and
the State authorities.
(4) formal approval is obtained from
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
2996
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No, 4
10/17/58
WASHINGTON 25. D. C.
ADDRESS
orriciAL
CORRESPONDENCE
TO THE BOARD
October 17, 1958
Board of Directors,
The Union Commerce Bank,
Cleveland 1, Ohio.
Gentlemen:
Federal
Pursuant to your request submitted through the
extends
further
Reserve Bank of Cleveland, the Board of Governors
Bank
Commerce
to April 23, 19591 the time within which The Union
Road,
Turney
may establish a branch in the vicinity of 5000
Garfield Heights, Ohio.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
299
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No.
10/17/58
5
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October 17, 1958
Board of Directors,
Farmers & Merchants National Bank
of Blacksburg,
Blacksburg, Virginia.
Gentlemen:
System
The Board of Governors of the Federal Reserve
for
tion
has given consideration to your supplemental applica
in
not
when
fiduciary powers and grants you authority to act,
or,
execut
contravention of State or local law, as trustee,
n of
guardia
bonds,
and
administrator, registrar of stocks
cs,
lunati
estates, assignee, receiver, committee of estates of
trust
or in any other fiduciary capacity in which State banks,
competition
companies, or other corporations which come into
of
With national banks are permitted to act under the laws
be
shall
the State of Virginia. The exercise of such rights
l
Federa
subject to the provisions of Section 11(k) of the
Governors of the
Reserve Act and Regulation F of the Board of
granted
Federal Reserve System. The specific authorization
t
Circui
on July 8, 1957, to act as general receiver for the
the
in
ed
contain
Court of Montgomery County, Virginia, is now
general fiduciary powers herein authorized.
fiduciary powers
A formal certificate indicating the
urg is now
Blacksb
Which Farmers & Merchants National Bank of
due course.
in
authorized to exercise will be forwarded to you
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
23:r;
BOARD OF GOVERNORS
,
Cleto
,001
"VOW
OF THE
•4:v.
FEDERAL RESERVE SYSTEM
tt.
111
441
:
1
'
WASHINGTON 25, D. C.
1.4 4
illjoit
Item No. 6
10/17/58
ADDRESS DTFICIAL CORRESPONOICNOIC
TO Tilt SIOARD
t$,/
:
4itt;tit
464,,
-044.04
October 17, 1958
Mr. J. C. Malone, Jr., President,
Malone Insurance ec investment Corporation,
Milton, Florida.
Dear Mr. Malone:
your letter of
This refers to the request contained in
e Bank of Atlanta,
Reserv
19, 1958, submitted through the Federal
Federal Reserve
the
for
Ior a determination by the Board of Gcnernors of
Corporation,
ment
Invest
Ystem as to the status of Malone Insurance &
Milton, Florida, as a holdinr, company affiliate.
understands that
From the information supplied, the Board
ation is the
Corpor
the only activity of Malone Insurance & Investment
such
that
;
agency
°Peration of a fire, life and casualty insurance
stock
common
of
c°mPany owns 5,1410 of the 10,000 outstanding shares
infor
ed
acquir
Of First National Bank in Milton, which stock was
or
ly
direct
not,
1,:estment purposes only; and that such company does
any
l,
contro
or
Indirectly, own or control any stock of, or manage
Milton.
banking institution other than First National Bank in
determined that
In view of these facts the Board has
engaged, directly
not
Malone Insurance & Investment Corporation is
of, or managing or
stock
or indirectly, as a business in holding the
trust
controlling, banks, banking associations, savings banks, or
Act
g
Companies within the meaning of section 2(c) of the Bankin
ment
Invest
Insurance &
If 1933, as amended; and, accordingly, Malone
„
(
for
except
y affiliate
rrporation is not deemed to be a holding compan
not
does
and
the purposes of section 23A of the Federal Reserve Act,
to vote the
order
in
ors
Govern
need a voting permit from the Board of
hank stock which it owns.
time differ from those
If, however, the facts should at any
nce
sot out above to an extent which would indicate that Malone Insura
2999
Mr. J. C. Malone, Jr.
-2-
be so engaged, this matter
& Investment Corporation might be deemed to
Board reserves the right
The
d.
should again be submitted to the Boar
her determination of this
furt
to rescind this determination and make a
ting facts.
exis
then
matter at any time on the basis of the
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
ce: Federal Reserve Bank of Atlanta
Currency (3)
Office of the Comptroller of the
3000
BOARD OF GOVERNORS
OF THE
_444
4)CO 001,Z0
°s,
P47
tt
FEDERAL RESERVE SYSTEM
Item Noo
WASHINGTON 25, D. C.
10/17/58
440
4,
7
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October 17, 1958
Board of Directors,
Pascagoula-Moss Point Bank,
Moss Point, Mississippi.
Gentlemen:
Pursuant to your request submitted through the Federal
Reserve Bank of Atlanta, the Board of Governors of the Federal
Reserve System approves, under the provisions of Section 24A
of the Federal Reserve Act, an additional investment in bank
Premises by the Pascagoula-Moss Point Bank, of not to exceed
building at
$7501000, for the purpose of constructing a new bank
ous
miscellane
Pascagoula, including the cost of the land and
is
bank
the
of
improvements, provided the capital structure
additional
increased in the amount of $600,000 through the sale of
of
proceeds
the
that
ing
common stock, and with the understand
reduction
a
to
applied
be
the sale of the present building will
of the bank premises account.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
3001
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 8
10/17/58
WASHINGTON 25, D. C.
ADDRESS orraciAL CORFIESPONOENCE
TO THE BOARD
October 17, 1958
Board of Directors,
Farmers and Merchants State Bank
of Sebewaing, Mich.,
Sebewaing, Michigan.
Gentlemen:
Pursuant to your request submitted through the
Federal Reserve Bank of Chicago, the Board of Governors hereby
gives its written consent, under the provisions of Section 18(c)
of the Federal Deposit Insurance Act, to the absorption by the
Purchase of assets of The State Savings Bank of Gagetown,
Gagetown, Michigan, by the Farmers and Merchants State Bank of
Sebewaing, Mich., Sebewaing, Michigan, and approves the estabis
lishment by the latter bank of a branch at 4761 State Street,
Gagetown, Michigan, provided (1) the absorption is effected sub—
stantially in accordance with the agreement between the two
banks submitted with your request, (2) formal approval of the
appropriate State authorities is Obtained, and (3) the absorption
and the establishment of the branch are effected within six
months from the date of this letter.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
BOARD OF GOVERNORS
* 44
;
rto
attto
04*
44440
OF THE
FEDERAL RESERVE SYSTEM
44
:
WASHINGTON 25. D. C.
A:
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
0
0
4*4
4t
Item Noo 9
10/17/58
st
October 17, 1958
Board of Directors,
Corydon State Bank,
Corydon, Iowa.
Gentlemen:
This refers to your request for permission,
under applicable provisions of your condition of membership numbered 1, to exercise fiduciary powers.
Following consideration of the information
submitted, the Board of Governors of the Federal Reserve
System grants permission to the Corydon State Bank to
exercise the fiduciary powers now or hereafter authorized under the terms of its Articles of Incorporation
and the laws of the State of Iowa.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
OF THE
,t3-
rNr•
\o,
40
iiiir
3003
BOARD OF GOVERNORS
tl 440
:
4,„1,t,*is
FEDERAL RESERVE SYSTEM
g.
WASHINGTON 25, D. C.
;
Item No. 10
10/17/58
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
{104/it WiLtV,14
ookto•V'
October 17, 1958
Jones & Soward, Lawyers,
First National Bank Building,
Goodland, Kansas.
Gentlemen:
This refers to the request contained in your letter of
May 21, 1958, submitted through the Federal Reserve Bank of Kansas
City, for a determination by the Board of Governors of the Federal
Reserve System as to the status of First Insurance Agency, Inc.,
Goodland, Kansas, as a holding company affiliate.
From the information supplied, the Board understands that
First Insurance Agency, Inc. is engaged in the business of selling
insurance of all kinds, including casualty, fire, and life; that
such company owns 706 of the 1,000 outstanding shares of common
stock of First National Bank in Goodland, which stock was acquired
or investment purposes only; and that such company does not, dior indirectly, own or control any stock of, or manage or
control, any banking institution other than First National Bank in
Goodland.
In view of these facts the Board has determined that
First Insurance Agency, Inc. is not engaged, directly or indirectly,
a business in holding the stock of, or managing or controlling,
panks, banking associations, savings banks, or trust companies within the meaning of section 2(c) of the Banking Act of 1933, as amended;
deemed to be a
111(13 accordingly, First Insurance Agency, Inc. is not
'
21ding company affiliate except for the purposes of section 23A of
the Federal Reserve Act, and does not need a voting permit from the
3oard of Governors in order to vote the bank stock which it owns.
'
If, however, the facts should at any time differ from those
et out above to an extent which would indicate that First Insurance
3004
Jones & Soward
Agency, Inc. might be deemed to be so engaged, this matter should again
be submitted to the Board. The Board reserves the right to rescind this
determination and make a further determination of this matter at any time
on the basis of the then existing facts.
Very truly yours,
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
CC2
Federal Reserve Bank of Kansas City
Comptroller of the Currency (3)
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
Item No. 11
10/17/58
ADDRESS OFFICIAL
CORRESPONDENCE
TO THE BOARD
October 17, 1958
Mr. H. J. Newman,
Vice President,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Newman:
October 8,
This letter is in reply to your letter of
ng
1958, regarding a leave of absence, without pay, commenci
Robert E.
March 11, 1957, for a period of 2-1/2 years for Mr.
Interthe
with
nt
assignme
EMmer to permit him to accept an
.
Pakistan
national Cooperation Administration in
Mr. Emmer
It is noted that while on this assignment
nt and
is a contributing member of the Civil Service Retireme
Federal
Disability Fund and that, therefore, neither the
will make
Reserve Bank of Chicago nor Mr. Emmer have made or
contributions to the System's fund for this period.
attention of the
Your letter has been brought to the
this
Board of Governors, which interposes no objection to
leave of absence for Mr. Emmer.
Very tray yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
3
BOARD OF GOVERNORS
OF THE
Item No. 12
10/17/58
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
DIVISION
OF EXAMINATIONS
October 16, 1958.
To All Members
of the Field Examining Staff
The Board of Governors recognizes the use of privately
owned automobiles by members of the field examining staff as a
Illeans of performing official travel, provided it does not conflict
with the proper conduct of the examination schedule. The Board is
also sympathetic with the desire of the car owners to use their
?ars to the fullest extent possible in driving from duty station
co duty station, and recognizes this circumstance as a factor for
consideration in administrative actions.
It should be borne in mind, however, that the examination
schedule is based on travel by railroad and that the use of
:
,
11 automobile in lieu thereof is at the option of the individual
steoting this mode of travel and for his own convenience. It
,"ould be fully understood also that there will be occasions when
,:"ravel by automobile from one duty station to another duty station
a
4-8 not feasible and that the owner of the car must make his own
_rrangements for the storage or other disposition of his automobile
un such occasions.
The general travel authorization issued yearly will inthe e authorization to travel by automobile, subject, however, to
aPProval of the Chief Federal Reserve Examiner covering each
vserformance of official travel (in the event the Chief Federal ReA ve Examiner is unavailable, the approval of the Director or an
'
81stant Director of the Division of Examinations will be necessarY).
Inasmuch as the use of an automobile is at the election
li,
c1s for the convenience of the individual examiner rather than for
4,' convenience and advantage of the Board, he should be guided by
'"e following principles:
t
1. Permission to drive does not carry with it any extra
travel time allowance, except as may be authorized in
accordance with the Board's leave regulations.
2,
The examiner should be scrupulous to avoid any situation
Which disturbs the regular course of the examination
schedule. For instance, he should keep his car in good
mechanical condition at all times to reduce the possibility of mechanical failure while in travel.
3007
-2-
3. The examiner should be scrupulous to avoid embarrassing
the Board in any way.
For example:
(a) He should have adequate public liability and
property damage insurance coverage;
(b) Facilities of the Reserve Banks are not to be
used for the parking or storage of examiners'
cars; except that, if the examiners have occasion to work at the Bank outside the Bank's
working hours, they may, with the permission
of the Bank's officials, use its parking facilities during such periods.
4, Transportation costs to be reimbursed by the Board for
automobile travel should not exceed the combined cost
of railroad and Pullman fares for the same trip. Hence,
effective January 1, 1959, claims for reimbursement submitted by examiners should be in an amount computed on
the current mileage basis, or in an amount equivalent to
the total of railroad fare and allowable Pullman accommodations, whichever is lower. If, during annual leave periods, automobile travel is performed to points other than
to official headquarters, reimbursement should be on the
basis of the lowest amount resulting from the following
alternative methods of computation:
(a) Travel to official headquarters and thence to
next duty station-i.
mileage basis;
On basis of railroad travel;
(b) Travel to the actual destination point and
thence to next duty station-i.
ii.
mileage basis;
On basis of railroad travel.
5. For purposes
of computing per diem allowance and annual
leave at the termination or commencement of duty status,
When travel to or from official headquarters is involved,
times of arrival at or departure from official headquarters
or duty station should be in accordance with applicable
railroad time tables for a direct trip by rail.
3008
-3-The basis outlined above for reimbursement of transportation expense and for computing per diem allowance and annual leave
accords with the Standardized Government Travel Regulations and conforms with a policy that has been applicable for more than a year to
members of the Board's Washington staff who, for their personal convenience, use their automobiles in the performance of official travel.
@FedFRASER