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1685 A meeting of the Board of Governors of the Federal Reserve SYStellIvius held in Washington on Thursday, October 18, 1945, at 2:00 P.m, PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak McKee Draper Evans Mr. Carpenter, Secretary Mr. Connell, General Assistant, Office of the Secretary Mr. Morrill, Special Adviser Mr. Thurston, Assistant to the Chairman The action stated with respect to each of the matters herein4fter referred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Nderea Reserve System held on October 17, 1945, were approved unani1:40118157.. Memorandum dated October 11, 1945, from Mr. Vest, General At— torne7, advising that Mrs. 011ie M. Croghan, a clerk in the Legal Divi— i°11 'Plans to retire as of the close of business December 31, 1945, arld will use her accumulated and accrued annual leave before that time. Noted. Letter to Mr. Hill, Vice President of the Federal Reserve 0.n Philadelphia, reading as follows: "In accordance with the request contained in your 1686 10/18/45 —2— "letter of October 11, 1945, the Board approves the desig— nation of the following as special assistant examiners for the Federal Reserve Bank of Philadelphia: Henry Wright John Doyle Erwin T. Flynn Raymond M. Moore George W. Gray Kathleen J. Brandon Luther Harr, Jr. Helen B. Cahilly Anna M. Koller Ira F. Johnson Vera B. Magee James P. McNames Dorothy M. Stott Joseph Mullen Patrick J. Salimena Deborah A. Swing Wm. Hampton Samuel J. Sauers George F. Higgins Frank A. Schofstal Helen R. Holmes Henry E. Sharp Alice I. McCuen Sidney Tucker Evelyn R. Reichart Guido J. Viglione William Dambach Ralph Whitehill Joseph L. Biddle Mark H. Morse Emily M. Gamber Alexander C. Carberry Francis X. CurleyJoseph A. Dahms Joseph D'Ambrosio James Coan John J. Davis "Appropriate notations have been made in our records of the names reported as deletions." Approved unanimously. Letter to Mr. Young, President of the Federal Reserve Bank of Chica go, reading as follows: "In accordance with the requests contained in your letters of October 11, 1945, the Board approves the ap— pointments of George R. McCament as an assistant examiner, nd George R. Siegler, at present an assistant examiner, an examiner for the Federal Reserve Bank of Chicago. rlease advise us of the dates upon which the appointments be come effective." Z Approved unanimously. Letter to Mr. Wiltse, Vice President of the Federal Reserve Bank Or New y ork, reading as follows: 1687 10/18/45 -3-- "Reference is made to your letter of October 5, 1945, submitting the request of the Manufacturers and Traders Trust Company, Buffalo, New York, for approval of the establishment of a branch in Lancaster, New York, in connec,ion with the proposed absorption of The Citizens National ',t 'tank of Lancaster, Lancaster, New York. It is noted that the Superintendent of Banks for the State of New York has aPproved the agreement for the proposed absorption. "The Board concurs in your opinion that the absorption of the national bank will not result in any change in the general character of assets of the Manufacturers and Traders TrUst Company or broadening in the functions exercised by it within the meaning of its condition of membership numlered 2. In accordance with your recommendation, the ard of Governors approves the establishment and operaof a branch in Lancaster, New York, by the Manufac' 1:Irers and Traders Trust Company, Buffalo, New York, prothe absorption is completed substantially as propa t p asec .1, the prior approval of the appropriate State auiorities is obtained and counsel for the Reserve Bank n11 review and satisfy himself as to the legality of all thesteps taken to effect the purchase of assets and assumPtien of liabilities and to establish the branch." j l Approved unanimously. Telegram to Mr. Mangels, Vice President of the Federal Reserve 88 * of San Francisco, reading as follows: to "Retel fifteenth. Board will interpose no objection Purchase of banking premises of The Green Lake State Bank, Washington, by Seattle Trust and Savings Seatl,Bnk Seattle, Washington, for $50,000 in connection with 1.e proposed purchase of assets and assumption of deposit ; labilities of the Green Lake State Bank. Board also con' s in your opinion that proposed transaction will not rill eilt in any change in the general character of the bank's businessin or scope of its corporate powers within the meang of condition of membership numbered one." Approved unanimously. Letter to Mr. Flanders, President of the Federal Reserve Bank reading as follows: 1688 ' 0/18/45 -4- "Reference is made to your letter of September 24, 1945, transmitting resolutions of the board of directors subject to the approval of the Board of Governors, uhe value of the land upon which the present building is located and of the land purchased on January 4, 1944, be written down to 0.0 a square foot from $15.00 and $15.63+, resPeotively. It is noted that in your opinion the present market value of the land is $10 a square foot and, ac?ordingly, the adjustments seem desirable in order that sof . the Bank reflect accurately the current maret "In 1943 the Board approved your Bank's writing down the 0e carrying value of the land under the present building per square foot provided the charge-off did not redu nee carrying value below estimated market value. At the ; 14e, your Bank had under option the two properties at Pearl Street and 99-111 Milk Street at a price equal '° aPproximate1y $22 a square foot for the building site, without allowing any value for the buildings located thereAt the end of 1944 the Board's approval was requested $ir eliminating the estimated value of these buildings, ; )150, making the cost of the land about $16 per square , and also of further reducing the book value of the t°c't iwo parcels of land and of the land under the present build, ng to $10 a square foot. The charge-off of $81,150 was 113Proved, but with respect to the proposed reduction in u:le book value of land to $10 a square foot, you were ad'In view of the uncertainty as to market value Of Board has deferred until next year action on request or authority to write down book value of land to $10 per square foot.' "On December 22, 1944, you advised the Board that the assessed value of land under the present building was f,20 f°°t, hut that the entire assessment had been reduced in 1,e mPromise without allocation of the reduction between a'nd and building, and that experts employed in the tax _P??al case testified in 1942 on basis of sales of comttative properties that fair market value of the land ',!,-: 1(1 not exceed $10 a foot. Also, as to the property pur'e:sed January 4, 1944, the land was assessed in two parp_18-- 18 a foot for that on Pearl Street and $40 a foot th that at the corner of Pearl and Milk Streets--but sa .tions had been made for reductions in these as : t e 's=c 1.gne 1689 -5"It has been the Board's policy to authorize the Federal Reserve Banks to write down the book value of their land to not less than estimated market value. The Board has reviewed the matter in the light of this policy and the information you have submitted, and approves the proposed reduction in the book value of bank premises land to $403,300 and in the book value of land carried as 'Other real estate' to $139,960, or $10 a square foot in each case." Approved unanimously. Letter to Mr. Grady, Chairman of the Federal Reserve Bank of San Francisco, reading as follows: "At the completion of the examination of the Federal Reserve Bank of San Francisco, made as of July 19, 1945/ t, the Board's l33: examiners, a copy of the report of examinatlon Was left for your information and that of the direcors. A copy was also furnished President Day. has :The Board will appreciate advice that the report been considered by the board of directors. Any cornents you may care to offer regarding discussions with respect to the examination or as to action taken or to e taken as a result of the examination will also be apPreciated.n T Approved unanimously. Cable.m to Sir Chintaman D. Deshmukh, Governor of the Reserve cf India, reading as follows: "Mr. Norris Johnson of the Federal Reserve Bank of 1\11 ew , York is returning home by way of Calcutta after accomshing a financial mission in Iran. We have asked him call at your Bank's offices in Calcutta probably early November and sha31 deeply appreciate any courtesies you Your associates may show him." 4 . Approved unanimously, together with similar cablegrams to Mr. Hugh T. Armitage, 1690 (1/18/45 Governor of the Commonwealth Bank of Australia, and Mr. W. F. L. Ward, Gov— ernor of the Reserve Bank of New Zealand. Thereupon the meeting adjourned. APPro Chairman.
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