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3217
A meetinp,. of the Federal
Reserve Board was held in Tashington
°I1 Priday,
October 19, 1934, at 3:00 p. m.
PRESENT:
Er.
Er.
Er.
Er.
Er.
Thomas, Vice Governor
Hamlin
Miller
Jars
Szymczak
Yr. Lorrill, Secretary
Er. Bethea, Assistant Secretary
Carpenter, Assistant Secretary
The Board
considered and acted upon the following matters:
Letter dated October 10, 1934,
from Yr. Sproul, Secretary of
the ?ciders.).
Reserve B
of New York, advising that, at a meeting of
the b
°Erd of directors on
that date, no change was made in the bank's
e314ttag
schedule of rates of discount and purchase.
Without objection, noted with approval.
aerve
Letter to 1,,r.
Wood, Federal Reserve Agent at the Federal Reflk of St.
Louis, reading as follows:
IT "Reference
is made to the report of examination of the
jurtelr Grove
Bank and Trust Company', St. Louis, Missouri, as of
the supplemental information submitted in
ce4lont=t
halal It has been noted that the bank has been engaged
in the
Etlid 4
iss ef sellinp real estate loans and bonds
to its customers
appr at on the date of the examination
there were outstanding
hitveoximately 14,000,000 of such securities wach
are said to
Etet been sold
without recourse. In the past, the liability,
e0111
:
41 lc)! moral, to repurchase loans sold with or without rethe !
73 "as Proved
harmful, if not disastrous, to many banks and
in-ard feels,
therefore, that it is contrary to sound bankis
actice for a commercial bank to engage in the
business of
boAd " or selling,
either
with
or
without
recourse,
notes,
repre
es ril!rtg
ages, certificates or other evidences of indebtedness
You h:ell'ing real estate loans or participations
therein. If
You :
a Ire not already done GO, the Board
mould
be
pleased to have
speci VPLrit the
bank with its views in this respect, calling
'lc attention
to condition numbered 12 of the revised
3218
1w19/34
-2-
11
regular conditions under which State banks are now admitted
to membership in the
System, and request the management to give
serious consideration to the advisability, as a matter of sound
banking policy, of discontinuing such sales.
"The
the West examiner reports that the management maintains that
Investment Company and the York Investment Company,
f°1.111ed for the purpose of removing certain assets from the bank
and its affiliate, the Tower Grove investment Company, are not
affiliates
of the bank as defined by the Banking Act of 1933.
The examiner also reports that from the information submitted
.64111, eh aPpears to be the case, but that from the manner in which
b"! coxpanies operate there appears to be more of a relationship
.e vween them and the bank than the information given the examl!lere discloses. In view of the questions raised, it is assumed
that the
determination of the status of the "4est Investment
21111MuY end the York Investment Company as affiliates has been
referred to your counsel. According to the report, the funds
,
4111°1111ting to v180,000 provided for the organization of the com'
l"
1 12lee were furnished by directors of the
bank. It has been
ev'ed, however, that the bank and the
directors are to share
I,
cl_ u411Y in any funds disbursed in the liquidation of the Tiest
vrestment Company, and it will be appreciated if you will adthe Board as to the
relations between the bank and the
pa111• 3411Y which justify, in the event of liquidation of the comIt
!' an equal participation by the bank with the individuals
the funds.
43 t "It
It has been observed that the examiner has
reservations
the management but believes that Director Seller has sufpXent
influence to accomplish the correction of the criticized
t2ciez of the institution. In view of the promises
of Direc4qeSellor that the board of directors will give the
necessary
zne.
„fltion to the bank's affairs and the correction of criticized
cers, the
examiner suggests that any steps which night other•
der
:be advisable
to strengthen the management of the bank be
fir4red With the next
examination which should be made the
•tecii I,
)art of the year. In this connection it will be appreciit, co"' You 'will keep the Board advised as to the progress made
other17:ecting the criticized policies and practices and as to
.Lm
provements effected in the condition of the bank."
Approved.
Lett
44 roil,
vlat:
to Mr. O'Connor, Comptroller of the Currency, reading
OT
Avittitt"'n
accordance
with Acting Comptroller of the Currency
a
s rec
ommendation,
the Federal Reserve
ve Board approves a
lac c)
reti
la In the common capital stock of 'The City Lational
1 19/34
-3-
ri m
Dank of Fort Smith', Fort Smith, Arkansas, from
,)200,000 to
50,000, pursuant to a plan which provides that the bank's
capital shall be increased by the sale of $250,000 of preferred
stock to the Reconstruction Finance Corporation and/for
others,
and that the
released capital shall be used to eliminate a corresponding amount of losses and substandard assets, all as set
torth in Mr.
Await's memorandum of May 28, 1934.
"In considering the plan under which the reduction in cam111". caPital is to be effected, it was noted that the management
!)! this institution is subject to severe criticism. It is
tulderstood, however, that this matter is receiving the attention
Of your
office."
Approved.
Telogram
to Er. Stevens, Federal Reserve Agent at the Federal
"
11141
sank of Chicago, stating that the Board has
given consideratietx to
the
aPPlication of the "Wisconsin Bankshares Corporation",
1411"111kee, Wisconsin, for a voting permit under the authority of secti t5.1441 of the Revised Statutes of the United States, as
amended,
entitling such
organization to vote the stock which it owns or control
"4 ill the "First Wisconsin National Bank of Milwaukee", Milwaukee,
tilL".°48ins and has
authorized the issuance of a limited permit to the
NqQicant for
the following purposes:
At any
time prior to December 31, 1934, to act upon a
131'°Potal or
Piproposals to reduce the common capital stock of
sconsin National Bank of Milwaukee from e;,10,000,000 to
414)00,000 and to create and issue preferred stock in the
ar.cab
cf $10,000,000, and to make such amendments to the
tiee
:
e-Les of association and by-laws of such bank as may
be
be -"arY for such purposes, pursuant to a plan which shall
Res4PProved by the
Comptroller of the Currency, the Federal
Ped:!ve Agent at the Federal Reserve Bank of Chicago, and the
ral Reserve
The
Board."
tale
°.8411 also authorized the agent to have prepared by counsel
the
resorve bank, and to issue to the Wisconsin Bankshares
°11/°11
`34, a limited voting permit in accordance with the telegram.
3220
10/19/34
-4Approved, together with a letter to Ur.
O'Connor, Comptroller of the Currency, reading as follows:
"In accordance with your recommendation, the Federal ReServe Board approves a reduction in the
common capital stock of
121 'First Wisconsin National Bank of Iilwaukee', Iilwaukee,
Hlsconsin, from ?1.0,000,000 to ,;5,000,000, pursuant to a plan
rlich provides that the bank's capital shall be increased by
is sale of ,. ;10,000,000 of preferred stock to the Reconstruction
llance Corporation and that the released capital, together with
4 Portion of
the bank's surplus, undivided profits and reserves,
Vg
e-gb
aZ:ed to eliminate estimated losses and doubtful assets
approximately ,,;10,000,000, all as set forth in your
raemor:ndum of September 18, 1934.
It is understood in this connection that the eliminated
asset
8, instead of
-s,
remaining the property of the bank as originally
proposed, are to be pledged as security for a loan from the
onstruction
Finance Corporation to the First Wisconsin Iort"i ComPany; the proceeds of such loan to be used in the reitation of various banks the control of which is owned by
he
Vasconsin Bankshares Corporation, as stated in your supplemmrandum of October 5, 1934."
p
T
LV
bktka,
Letter to the Federal reserve agents at all Federal reserve
Prepared in accordance .with the action taken at the meeting of
the „
"oarA
" on October 10, 1934, and
reading as follows:
era, 2/1 connection with examinations of private banks and banksee.L.Inade by the
Federal reserve banks under the provisions of
21(a.
2)
of the Banking Act of 1933, questions have been
I
raised
),(
as to the
responsibility
of the Federal reserve banks
45 to
the action, if any, which should be taken by them re&A,s
1. P
rotection of depositors when the report of examination
discloses
an insolvent condition.
2.
Correction of
other unsatisfactory conditions.
3.
Reportinc, apparent violations of the criminal provisions
" of State
lams.
reae Under the
provisions of said section 21(a)(2) a Federal
satire bank has no authority to require the correction of untioW's.ctory conditions in private banks submitting to examinaProte
is under no statutory duty to take any action for the
or t,
;
t'
- 1011 of depositors, to correct unsatisfactory conditions,
thet0
to the State authorities apparent violations of
ever-41111inal provisions of State laws. The Board feels, howeach Federal reserve bank should exert its best
3221
1w19/34
_5-
0
efforts to induce private banks to correct any unsatisfactory
conditions disclosed by the examinations made by the Federal
reserve bank and otherwise to protect
depositors against unsound and unlawful banking practices. The Board,
therefore,
!Peots each Federal reserve bank to adopt a constructive attitude in this respect and to endeavor to obtain such
corrective
!
ctim in the case of private banks as may appear necessary or
desirable in the
circumstances. The Board also believes that
ls proper for a Federal reserve bank to report apparent
laolations of
criminal provisions of State lam to the appropriate State
authorities."
Approved.
Telegram to
the Federal reserve agents at all Federal reserve
44 reading
as follows:
Ruling Io. 28 interpreting Regulation T. The Federal ReBoard has been asked whether a creditor, as defined in
!
eetion 2(b) of Regulation T, may permit a customer to sell a
48egistered security from a designated old account and on the
daY to purchase in its place in the old account an unregoluered, non-exempted security, if the adjusted debit
balance
at,the old account is not increased.
In reply the Board called
. 'smtion to the
4
prohibition contained in section 7(c)(2) of the
unr
cUllties Exchange Act of 1934 on the extension of credit on
ch egistered, non-exempted securities for the
purpose of pur31.483-'11E or carrying securities, and to the fact that the proviacerls of section 4 of Regulation T are made applicable to old
Ace°Unts by the first proviso of section 7(a) of the Regulation.
eZdinZly. the Board advised th-t in the circumstances inditer-::' the extension of credit for the purchase of the unregisnon-exempted security is not permitted unless at the time
theeueh Purchase the maximum loan value of the securities in
by ae"Unt exceeds the adjusted debit
balance of the account
1111:14mount equal to or reater than the purchase price of the
"Tistered, non-exempted security."
ser ye
Approved.
4%.
leleCram to the Federal reserve agents at all Federal
reserve
reading as
follows:
4111ing No. 29 interpreting Regulation T. In reply to an
tio4
"
the Federal Reserve Board has advised
that under secsep
02 Regulation T a special cash account may be kept
for each customer, and that the regulation does not
3222
10/19/34
-6-
11
require a single separate account covering all cash transactions for all Customers,"
Approved.
Teleram dated October 18, 1934, approved by five members of
the board, to L.
Gidney, Assistant Federal Reserve Agent at the
'15(leltlil Reserve
Bank of New York, reading as follows:
T
letter October 16. Board has no objection to Bankers
• U'
8t Company
8
supplying LT-. Paton with copies of correspondence
flelosed in your letter
bearing on question whether certain
!rPorations
whose stock is held by Bankers Trust Company as
ustee are
Act 1933.
" affiliates of such bank within section 2(b) Banking
Approved.
eer
Letter to Lr. Case, Federal Reserve
Agent at the Federal ReNew York, stating that the Board has given considera-
tie4 t0 the
following application for a permit under the Clayton
Act,
411(ithat
'upon the basis of
the information before it, feels that
the
58114/10e of the
permit applied for would be incompatible with
13141:11e
interest. The letter also requested the agent to communi4tte t
0 the
aPPlicant the Board's position in the matter, and to advise
the
4.rd promptly as
to whether the applicant desires to submit any
kcittit.
1°1141 data, and,
if not, as to what steps he proposes to take in
"cler t
o "Ply with the
provisions of the Clayton Act.
.
Barold P.
s
Harrower, for permission to serve at the same time
TieEt
director of The Amsterdam City National
Bank, Amsterdam,
Y°rk, and as a
dezni 1\levr
director of The Farmers National Bank, AmsterYork•
Approved.
tter stated further that it was noted that Ir. L. E.
Harrower,
3223
10/19/34
-7-
17110 1%8
granted a permit April 25, 1929, to serve as director and/or
()ffieer of the
two banks referred to above, has not attended directors,
Meetings, and requested that, when the
agent submits his roc°Etiertdation as a result of his annual review of
the permit, he report
1\111Y as to hr. L. E.
Harrower's attendance at directors' meetings.
Approved.
Letter to Ir. Case, Federal Reserve Agent at the Federal Re%ire t
allk of hew York, stating that the Board has
given consideratiot
'
4) the follawinr application for a
permit under the Clayton
'Act, wad tha
t upon the basis of the information before it, concurs
a
the
acent.'opinion that the issuance of the permit applied for
be .
- Incompatible with
the public interest. The letter also re(Nested
the agent
to communicate to the applicant the Board's position
the
tlxtter, and to advise the Board promptly as to whether the
apPlick desire3
to submit any additional data, and, if not, as to
ateps he
proposes to take in order to comply with the provisions
"the
claYton Act,
14r. P /,
zi-4r4. Oakes, for
permission to serve at the same time asf,
l :h
ner_
1 of The Jefferson County
un
National Bank of rater17,!.oT ilaa
4w York, and as a director and officer of The irs
-441 Bank of
Lacona, Lacona, New York.
Th
e letter ,
.
it beeembera
:50 called attention to the Clayton Apt permit
granted
Itt the
1924, and
now in effect, to Daniel B. Schuyler to serve
6 8IkMe t
iln°
ill t
as director and officer of the Jefferson County iia-
841k Of Viatertown, New York, as director of the First 1:ational
-4 "ei viv.
0n, New York, and as director of The First National Bank
tiotIlitm.
3224
10/19,/34
c'ela
-8New York, and also to the permit granted in July, 1928,
to
Charles A. Dunham to serve at the same
time as director of the
st
-ational Bank of Dexter, New York, and as officer of the Jef1'1418°11 County
National Bank of Watertown, New York; and stated that,
of the status of their personal
loans, as TJell as the unsatisf4ctor,
lievr
c ondition of the
Jefferson County National Bank of Watertown,
York, for mhich
I:essrs. Schuyler and Dunham apparently must share
responsibility, the agent is requested to make a thorough investigatio4of the
relations of these individuals with the banks involved
4 slablnit
"
his recommendation regarding the revocation of
their per-
Approved.
a rIts
Letter to Lr. Case, Federal
Reserve Agent at the Federal Re44k of New York,
reading as follows:
4. "The Board
has riven consideration to the application of
114,liellrY li. Stebbins, Jr., Rochester, New
York, for permission
ti er the
'
provisions of the Clayton Act to serve at the same
Trillale as director and
officer of The First National Bank and
0 Rochester, and as director and officer of The
140r
C13111Pa
44(11
'
4 Plan Company of
Rochester, both of Rochester, New York,
,11Pon
the basis of the information before it, feels that
the
Ivi;lesuance of the permit applied for would be
incompatible
4 the
public interest.
4 -oreover, it appears that on May 7, 1929, the Board istailed:
Ett '° 14.r. Stebbins a Clayton Act pemit
covering his service
the same
Trust
time as director of The First rational Bank and
CI4
°I 1Pany of Rochester and as director of The Morris Plan
of Rochester, both of Rochester,
New York. For the
ttaderreasons that the Board believes the
issuance of the permit
publi the present application
would be incompatible with the
has
interest, it also
feels that the permit which previously
bee
L55ued should be revoked.
the t 4ecording1y, you
are requested to advise Mr. Stebbins of
or .
11 °4rd i s Position in the matter. If you deem it
desirable
"arY, you are authorized to inform him that the Board's
3225
1w19/34
-9-
action with reference to his present application, as 14E311 as
to the
permit which previously has been issued to him, has been
based upon the unsatisfactory management and condition of the
ilochester bank and its affiliate, the First National Rochester
Corporation,
and the nature and extent of the uses which have
been made
of the credit facilities of those institutions by the
directors of
both, including the applicant, and the unsatisractol.ty
status of his loan in the national bark.
,,
In communicating with the applicant, please advise him
at, in accordance with section V(g) of the Federal Reserve
ard i s Regulation L, consideration will be given to any addi"nal facts or arguments not appearing in his application
accompanying ferns, which he feels should be brought to
r!
v(,Board's attention, and that also, in accordance with section
of the sane regulation, he may be afforded an opportunity
to
be heard in connection with the revocation of his permit.
this connection, please advise the Board promptly as to
toe her kir. Stebbins desires to submit any additional data or
to have a hearing, and, if not, as to what steps he proposes
ake in order to
comply with the provision of the Clayton
r
j
11 r
Ine applicant reports on F. R. B. Form 94 in answer to
irec'ion 12 that he is a director of the Abstract Title and
?rtg
a.60 Corporation of Buffalo, New York, whose business he
ges
ae 'primarily making abstracts of titles and the issuing
"itle insurance'. That company, in a letter to The First
191onal Bank and
Trust Company of Rochester dated Feburary 17,
eXls stated that it
has heretofore made mortgage loans on real
stv,tte end has sold guaranteed certificates of participation in
ages but for the past year has practically made no
102'111°1-t6
en and has made
no sales.
dit, In the event that ix. Stebbins desires to submit any addata, it is suggested that you advise him of the re1;411:ements of section 32 of the Banking Act of 1933 and deterWhether the Abstract Title and Lortgage Corporation has
pati
7
1 the sale of guaranteed mortgage certificates of particiyou find that it has resumed such sales it is sug::actFsth f
t you satisfy yourself as to the applicability of
:
tiot
32 of the Banking Act of 1933 to the applicant's rela1P with the member bank involved and the Abstract Title
Etttcl ticrtire,
b gta C
ec0
orporation before submitting this matter for
444.1derati0n, and advise the Board accordingly at that time."
Approved.
tiervo
Letter to hr.
Case, Federal Reserve Agent at the Federal Reof Nev
York, reading as follows:
11,1,
j2"e lioard has given consideration to the application of
3226
10/19/34
. Larry C. Stevenson, Rochester,
New York, for permission
under the provisions of the Clayton Act to serve
at the some
time as
director of The First National Bank and Trust Company
of Rochester, Rochester, New York, and as
director of the
Wayne County Trust Company,
Palmyra, New York, and upon the
bEsis of the information before it, concurs in your opinion
that the
issuance of the permit applied for would be incomPatible with the public interest. You are requested to advise
the aPplicant of the Board's position in the matter unless
there are pertinent
facts which were not submitted with the
4Plication and which you feel should be given consideration.
you deem it desirable or necessary, you are authorized :1(;)f
inform Ir. Stevenson that the Board's action upon his
eapPlication was based largely upon the unsatisfactory management and
condition of The First National Bank and Trust Company
2r Rochester
and its affiliate, the First National Rochester
'erPoration, and the objectionable status of his loan in the
national bank.
th "In cornunicating with the applicant, please advise him
8.a
'
in accordance with Section V (g) of Regulation L, contaleration will be given to any additional facts or arguments
aPPearinE in his application and accompanying forms
he°
which
e reels should
be brought to the Board's attention. In this
sZlinection, please advise the Board promptly as to whether Er.
aseveriecn desires to submit any additional data and, if not,
th
:
4
) what steps
he proposes to take in order to comply with
11;,Ov1sion5 of
the Clayton Act.
ihe applicant reports on F.
R. L. Form 94 in answer to
qUestion
that he is a director of the First National
}let:nester Corporation of Rochester, New
York, whose business
SteVfies as 'investment company'. In the event that
zest
'
llsen desires to submit any additional data, it is sugor tr that you advise him of the requirements of Section 32
4h4 6 4nking Act of 1933 and
determine whether his relationc-,
21) th the
banks
involved
and
the First National Rochester
""Poratio
so, ha
n comes within the purview of that section, and if
Ot timIre the applicant arrange to comply with the provisions
sid --"d section before submitting this
application for reconeration.
Hof
course you are aware that, should the applicant conthe ;
1 flls services with the national bank involved and should
auch usiness of
the First National Rochester Corporation be
be
to come within the provisions of Section 32, it would
+Is -c'ee"ary for
Lr. Stevenson to file an application under
;4,131'°Irisions of that section, even though, as a result of the
tio;:!al cf this permit,
he should decide to sever his connec-44!ith the Wayne
County Trust Company.
thie lease advise the Board fully as to the action taken in
'utter, in order that
its files may be complete."
Approved.
3227
10/19/34
-11-
Letter to an applicant for a permit under the Clayton Act,
"sinC of approval of his application as follows:
Milton A. Herber, for permission to serve at the same time
)
18 a director of The Fogelsville National Bank, Fogelsville,
,
enusylvania, and as a director of the Farmers Bank and Trust
'-'0/11Pany, Kutztown, Pennsylvania.
1
Approved, together with a letter to
Lis. Austin, Federal Reserve Agent at the Federal Reserve Bank of Philadelphia, reading
as follows:
, "Receipt is acknowledged of Lr. Hill's letter of September
.„4, 1934,
inclosinf, a copy of a letter dated September 21, 1934,
=rom
K1,4 - 1.4". R. A. Fister, Cashier of Farmers Bank and Trust Company,
ni7zt°1m, Pennsylvania, in connection with the Clayton Act ap.1.1cation
&of Mr. Milton A. Herber for permission to serve as
ector of that bank and as director of The Fogelsville Na°nEi Bank,
Fogelsville, Pennsylvania.
th
The Board's letter to you of September 18, 1934, discussed
1,! Possible applicability of section 32 of the Banking Act of
to the
trust company because of the issuance by it of cera4dicates of participation in its Mortgage Participation Pool
sin in its Trust Investment Pool. That letter stated that,
the trust company had ceased issuing participations
in
1)417 4rtcage
Participation Pool, section 32 would not be aprelealle on that account, but further information was requested
p R1rdinP; the participations issued in the Trust Investment
oul,
T
Lr. Hill's letter of
September 22, 1934, and inclosures,
at the certificates issued against the Trust Investment
&sal, are not
transferable or marketable and that they are not
du(
;-ed in series as to maturities. It appears that they become
terThren the particular trust to which they have been
issued
fttes. If at that time the pool does not contain sufof ii14‘' eaSh to pay the amount due, the commercial department
to 1!
, bank purchases assets of the pool in sufficient quantity
eateVlish the amount of cash required for distribution to the
trust' It appears that, in issuing such participations to its
roazit aestates, the trust company is merely adoptingan arrani,:etruatlei ned to facilitate the investment of small amounts of
4,11(1 fl
'
1471ds in a manner which it regards as more convenient
8e, .‘exible than
the investment of the funds of each estate
rarktely.
a hows t
pool
OT
.1:1 n. vlew. of
the information which has been submitted, the
eolvartuelieves that, in issuing such certificates, the trust
sh°1-11d not be regarded as engaged in the business of
Board
3228
IV19/34
-12-
Purchasing)
, selling, or negotiating 'securities' within the
388aning of section 32 of the Banking Let of 1933.
H Accordingly, there is inclosed a copy of the permit
"loll is being issued to Er. Milton A. Herber under the provislons of the
Clayton Act, authorizing him to serve at the
8Rms time as director of The FogelsvilIe National Bank, Fogelsille, Pennsylvania, and as director of Farmers Bank and Trust
cilliPanY, Kutztown, Pennsylvania."
•
Z
Letter to Ix. Williams, Federal Reserve Agent at the Federal
Ileserve Bank
of Cleveland, stating that the Board has given eonsider
ktior. to
the following application for a permit under the Clayton
Etnd that,
Upon the basis of the information before it, concurs
the
opinion Of the agent's office that the issuance of the permit
IIPPlied tor
Would be incompatible with the public interest. The letter also
requested the agent to communicate to the applicant the
toardt
8
Position in the matter, and to advise the Board promptly as
to•-4ether
thS aPplicant desires to submit any additional data, and,
it
zlot,
48 to that steps he proposes to take in order to comply with
the \
Provisione of the Clayton
Act.
141Hertzel, for permission to serve at the same time
tirector and officer of The Warren National
Bank,Tm%
St
61111
4.8Ylli
ktie
P allia, and as a director and officer of the
-ank, Tidioute, Pennsylvania.
as
Approved.
Letter to hr.
Williams, Federal Reserve Agent at the Federal
11141erle 41411c of Cleveland,
inclosing the following Clayton Act pertra
1124:14tta1 to the applicant, and requesting that, when the
1511t81-115
8 his
recommendation as a result of his annual review of
the Pert4t. he
report fully as to the applicant's attendance at direotora rtioe.L.nr,
s and as to whether there have been any further
3229
10/19/34
-15-
°7ercirafts in
accounts under his control:
Je A. Rockwell, for permission to serve at the same time
!
Ire a director and officer of The First National Bank of Warren,
rarren, Pennsylvania, and as a director and officer of The
warren National Bank, Warren, Pennsylvania.
Approved.
Letter dated October 18, 1934, approved by five members of
the Bo
ard, to an
applicant for a permit under the Clayton Act, advis
oP
aPproval of his application as follows:
J. D. O'Keefe, for permission to serve at the same time as
lotr(,lirector and officer of the Mitney National Bank of
New
ans, New Orleans, Louisiana, and as a director of the
New
;Orleans branch
of the Federal Reserve Bank of Atlanta, New
'leans, Louisiana.
Approved, together with a letter, also
dated October 18, 1934, and approved by five
members of the Board, to Er. Newton, Federal
Reserve Agent at the Federal Reserve Bank of
Atlanta, reading as follows:
ft mL
,Iere is
inclosed herewith a copy of a Clayton Act permit
issu.A
by the Board to Er. J. D. O'Keefe covering
his service
0;ikk3.rect0r and officer of the Whitney National Bank of New
Res::11s and as
director of the NevrOrleans Branch, Federal
Bank of Atlanta, both of New Orleans, Louisiana.
the m ln connection with Mr. O'Keefe's service as director of
that"
- Iling Company, the Board has considered the question of
inst "ThPanY accepting stock or bond collateral in occasional
rim knees to
prevent or mitigate a loss on a loan theretofore
Pog:L. It 18 the vievrof the Federal Reserve Board that a carst0o„1°12 which does not make any loans which are secured
by
Athicia; or bond
collateral at the time of making thereof and
isointaecePts stock or bond collateral for loans only in
by 1.; ed eases and in rood faith where it becomes necessary,
orda;
48°11 of circumstances arising after the loan is made, in
zia4e, to prevent or
mitigate a loss upon a loan previously
Clav4.. d oes not fall
within the provisions of section 8A of the
tio;:°n Act
and, accordingly, that the provisions of this seenot applicable to ix.
O'Keefe's service as a director
the b: D°1m1nZ Company. In this connection it is noted that
fortlWjsident of the Downing Company has advised you that in1°11 will be furnished to the Federal
Reserve Bank in any
3230
10/19/34
-14-
11
case in which stock or bond collateral may be tendered to
strengthen a preexisting loan. It is surgested that you request that this be done and if at any time you feel that the
11 ber or amount of loans for which stock or bond collateral
15
accepted after the making thereof is unduly large, it will
be a
ppreciated if you will bring the matter to the attention
of the Federal Reserve Board."
Letter to Mr. McClure, Federal Reserve Agent at the Federal
lisserve Bank
of Kansas City, Inclosing the following Clayton Act
1114111its and statins
that delivery of the permit should not be made
141141 it has
been determined that the applicant's service with the
kttiional bank
and the Kassler Investment Company and/or the Kassler
45rtgage Cmpany,
both of Denver, Colorado, does not
Come
within the
Provisions of
section 32 of the Banking Act of 1933 or that his sertlee 'with
such institutions has been brought into conformity with
t4reqUirements of that section.
The letter also requested that
theagent advise
the Board of the action taken in the matter.
tinie
'L° S. Kassler, Sr., for permission to serve at the same
De
, as a director of The United States National Bank of Dormer,
47:vers Colorado, and as a director and officer of the First
Qustrial Bank, Denver, Colorado.
Approved.
Letter to Mr. McClure, Federal Reserve Agent at the Federal
I've Bank
of Kansas City, inclosing the following Clayton Act
hrzlit;
stating that, in the circumstances set forth in the letter,
the Board
has granted
a permit to the applicant to continue in efonly
until the close of December 31, 1934, in order to avoid
11Y141-atinderstanding in the communities and in order to avoid any
It4erse
effect upon the banks' recapitalization plans which night
kat if
the
applicant were forced to dissolve his relationships
3231
i)
10/19/34
-15-
wit1 some
of the banks at this time; and requestini; that, -when
tIr
mitting the permit to the applicant, the ar;ent call his atten-
t4lit0 the limited nature of the permit and advise him that it has
been
cranted with the understandinc; that at the expiration of the
Per/ilit he rill brin7 his relationships into conformity with the proIrisialls of the Ldayton Act.
The letter also requested that the
keep the
Board informed of the action taken in the matter.
"D, L:yers, for permission to serve at the sere time as a
rector and officer of The Central hational Bank of Alva, Alva,
1,0. 110ma, as a director and officer of The Farmers
erchants
lonal Lank of Hooker, Hooker, Oklahoma, and as a director
;
Ild officer of The First hational Bank of Elk City, Elk City,
L1144s, for the period endin-; at the close of December 31, 1034.
Approved, tocether with two similar letters
Lr. McClure, Federal Reserve As7ent at the Federal
Reserve Bank of Kansas City, inclosinc; the followinP,
Clayton Act permits for transmittal to the applicants:
L:rs.
a
"
4 E. Lyers, for permission to serve at the same time as
'-ireoter and officer of The Central I,ational Bank of Alva,
t-4.174* Oklahoma, as a director of The Farmers & Lerchants 111TIII°11Q. Bank of Hooker, Hooker, Oklahoma, and as a director of
e First Eational
Bank of Elk City, Elk City, Kansas, for the
endin?, at the close of December 31, 1934.
1\Zr. yr D
1,1yers, Jr., for permi:_sion to serve at the same time
ILI
;director and officer of The Farmers
Lerchants
liooker, ,tooker, Oklahoma, and as a direct
of The
(311;.rLa National Lank of Alva, Alva, Oklahoma, for the period
'
In', at the
close of December 31, 1934.
t•
Lett
ers to applicants for permits ‘Inder the Clayton Act, ad117 of
*PProval of their applications as follows:
Len
Ekv, 4 -n Gs Bj4,:elow., for permission to serve at the came time
Pla1.11,ulrector of The 1,:idway National Bank of St. Paul, St.
ot s4.1*15-11flecota, and as a director of the Western State Bank
' Paul, St.
Paul, Minnesota.
t'
1!,rnst, for permission to serve at the sane time as a
3232
tr)
10/19/34
director and officer of The Midway National Bank of St. Paul,
St. Paul, Minnesota, and as a director and officer of the Western State
Bank of St. Paul, St. Paul, Minnesota.
A
L. hitt, for permission to serve at the samo time as a
s
clrector and
officer of The Midway National Bank of St. Paul,
Paul, Minnesota, and as a director and officer of the
"cistern State Bank of St. Paul, St. Paul, Minnesota.
11'. C,j1 Kendrick, for permission to serve at the same time
)
ts a director of The United States National Bank of Denver,
,cinver, Colorado, and as a director of the First Industrial
Joank, Denver, Colorado.
1
Jas. Ringold, for permission to serve at the same time as
director and officer of The United States National Dank of
.teli..ver, Denver, Colorado, and as a director and officer of The
/alert County Bank, Elbert, Colorado.
4 0 ,
A,. "' re
Adams, for permission to serve at the same time as a
.kractor and officer of The First National Bank of Portland,
f,ertland, Oregon, and as a director and officer of the Pacific
,caat Joint
Stock Land Bank, Portland, Oregon.
4. I3
enry F. Cabell, for permission to serve at the same time
;; a director of The First National Bank of Portland, Portland,
b non, and as a director of the Pacific Coast Joint Stock Land
Portland, Cirogon.
Approved.
There
°Ilklis 4
-11
were then presented the following applications for
ctock of Federal r:serve banks:
ications for ADDITIONAL Stock:
tot
110.1.
?laintield National Bank of Moosup,
--------------------1 e p0 lal), Connecticut
):stland National
Bank,
Thell'tlaxid, :Caine
ir41114Cham National Bank,
Ile. il‘killitgliara,
Llassachusetts,
11lite 1:Cluatain National
of Gorham,
J
TheGCT
118,41, LTely
liampshire
1.,c'ec)/Id N
ational Bank of Nashua,
""htla, New
Hampshire
•
The et :;0. 2.
ea.ti
Or n zellz
Lational Bank 4: Trust Company
k,a1
dIvell, Caldv11, New Jersey
T
a
Shares
35
270
120
9
300
60
734
3233
10/19/34
-17-
for ADDIT
1021a1., Stock: (Continued)
.
Coi_2tin_u_ed)
---i—TC--o-n-t-inued)
"he l'irc.
rr' on-a-i Bank --'
(I- ficroff,
Wyckoff, leur Jersey
The I'irst
1:atio110.1 Bank and Trust
1, Company of
bay Shore,
Bay Shore, New Yor_7. any of
-ee°11
(1 1:a-Lional Bank and Trust
,
Cortland, Cortland, New York , .
'he First
Nationa1 Bank of Forestville,
For
estville, Ll'ew York
'Ile Gkinesville
National Bank,
rnt rjailie8
Vi
40 First 110, New York
Nat-ional bank
,
of Hancock,
Razeock,
New York
ihe
First
York-z,,ank of
q.ernion,
r., liertion,National
New
14 First
National Lank of i.:arion,
littrioll, New
York
4° l'irst
Lational bank o ' -arlboro,
T,
heLlarlboro, New York
ialford National
r
,
1:i1ford,
New York
'.he
Pirst
National Lank
Bank,.
of Lorris
Lorria, New
'
York
''Etritlet
National Bank,
14 ''arluet,
New York
6 311°1k Co
4Th
National Bank of Riverhead,
:tilverhead, New York
%Lational B
of Roxbur,
Roxbury,
pi,. ,
o2cbury, New
York
'.88.t,
chLational Lank in Sidney,
he s l. eY,
Tl
liew York
Ilvor
Creek National bank,
Sii
,
t,
'Ile P'rex. creek- 4.New
Y k
-or
Irst
''
INe.:71 Lationaf. -ii-aY1and,
York
L'e'rehants :ational
Bank of Whitehall,
Vihitehall, Lew- York
Shares
....,—
3
45
13
10
21
9
15
27
6
28
3
3
15
15
15
30
30
30
it
lYO/17rti7ional
Th Cl
Lank,
,,a- non
., --
5
Jersey
1,i01-1111
ri l, 11-'811
ttza, - Bank of Lantua,
.b,ew Jersey
''e Pi
T rr-l't i4ational Bank ch.
P
Larlton,
,1jcon, Lew
Jersey
.Z.liationa1 Bank
of Bath,
Th1°6-ths
°(,,e
Pennsylvanill11111
LatiOnal Lank,
-Lill, P
ennsylvania
12
14
21
2
383
3234
19/19/34
-13-
J-2-1
lt -A-2°:bi
ADDITIONAL Stock: (Continued)
District No 3. (Continued
The Pi.;-STITW.rp Exeter, T17.3nal Bank of Exeter,
Pennsylvania
4he Farmers National Bank of
LicAlisterville,
kokisterville,
Pennsylvania
'"Le First
National Bank of Liinersville,
nersville,
Pennsylvania
° Solebury
National Bank of New Hope,
T,Xelit }lope,
ite Farmers Pennsylvania
National Bank of Rome,
T1, Rome p
ennsylvania
'e 'nest 1.fa
National Bank of Shamokin,
Shamokin, Pennsylvania
Shares
T
District No. 1.
he
ters
or Dayton,National Bank and Trust Company
Dayton, Ohio
No, 5.
KrilIZI-7i.Tional Bank,
411%8.11, West Virginia
9
3
30
9
15
15
136
480
480
40
40
39
39
416
Dietriet No. 6.
lrst
National Bank of Leesburg,
teesbu__,
46 Florida
vr3.2t No.
7.
Dyersville Na.tional Bank,
yersville, Iowa
aY County
National Bank of Spencer,
*Pencer, Iowa
he
citizens
Dar)
:
National Bank of Darlington,
Ihe
inErton, Wisconsin
-,,t'iklaltecha
National
NtIlkeeha, Wisconsinbank,
ketriet 14.0. 8.
het irst
N
ational Bank of Berryville,
Tit ,,rrYville,
zirst
41.rkansas
Lational
Baitof Conway,
°11
Thpeb.,:c7,
Arkesisa.s
s L
-7-LEt1lterRuth
ational Bank of Hughes,
Tankhe, e&
Arkansas
Learret L
ational Bank in Lake Village,
etil'rlizai snasc
t
ili
er
isleL ona
,
Bank of Mena,
•Lhe
Arica-fleas
a.rst
Lational Ba
Bank of Lrownstown,
.1'c'irel&tovin, Ills
1}2
15
12
12
30
18
1
12
1
3
69
32:15
10/19/34
-19-
for ADDTTIONALStock: (Continued)
Lo.
8. 7ontinuedi
-1rst La. tional Bank in Carbondale,
Carbondale, Illinois
The FirsU
L%tional liank in Columbia,
T1, eolumbia,
'4e Southern Illinois
Illinois National bank of Uact
East St. Louis, Illinois
-1rst il
avional Lank
Larissa,
q, Larissa,
Illsof
,'LleFirst liational Bank
of Oblon{s,
,
Oblonc, Illinois
14 First
Uational Bank of Okawvillo,
, Okaw
ville, Illinois
,
J.he?irst Lational
Lank of SprinfielJ,
T
,m_
4r1ts-field, Kentucky
44ejirst -1.ationa1
bank of Gallatin,
'allatin, LLissouri
lstrict
.p.
------
,5-atrict No.
9.
ihe l'Arst
Lational Bank
,pt
of Halstad,
lialstad$ Linnesota
‘4e Cnida
Lational Bank,
h °I:lia$
d
Sou
Latth
Dakota
72-e,
l'Irst
ional Bank of Vol7a$
v°1fla$ South
Dakota
shares
15
3
23
1
45
15
11
5
165
12
11
9
32
.......,..,..,...,..
10
Nati—ollal Bank
T1, 1311ranr!,*03
Colorado
'Et Pirst
L ational
Bank
einlarron, ;b.ar.sas
'orlt Lationalan
Lk
the-2eary,
Oklahoma
Irct
Lational Bank
4.100kor,
Oklahoma
(.1%-,1z.7;14tLi et_ 140. li
.
of Durango,
24
in Cimarron,
of Geary,
6
of hooker,
2
T;11-4tional Bank of Littlefield,
ttlefield, Texas
-.4"1;
LIEkt'onal
1,
'
4
Bank in -7"1'-wal1
otrtIto
,,I, c4.:4,
a
11, Texas
'
,
,
,ommercial
ol,w,
t0
liational i.ank of
11$ i
_ouston, Texas
y
io. 12.
-edi'ord LiOflal bank,
$
ureron
40
14
12
•
300
...••••••*•*•••
1
326
,
10/19/34
-20-
t11
.
1as for ADDITIONAL Stock: (Continued
12.141 .1.12
Ho. 12. (Continued)
i'ational Bank of Monmouth,
lionmouth, Oregon
4 li
cations
for SURRELDER
ct
140 Pirst YEZEnlal Bank of
Piper City,
Illinois
Ane
First National Bank of
7,, Roseville,
Illinois
Pirst National Bank of
TheIlichigan City, Indiana
Pirst National Bank of
Sioux
Center, Iowa
Shares
9
Total
10
2,452
of Stock:
Piper City,
12
Rossville,
iachigan City,
60
Sioux Center,
6
85
75
75
72
72
..itS411;x1.2
3.
8111conraTiwood& Trust Company,
IkPlevrood,
ssouri
District No. 9.
he
Lierchants
Miners National Bank of
Ironwood, Ironwood, Lichigan
Dist!iet
The
No. 12.
oekixfland Rational Bank of Los Angeles,
51.1„2"
Angeles, California
-v rlrst
National Bank of Lurray,
14rraY, Utah
450
27
Tatal
Approved.
Thereupon the meeting adjourned.
Appz,avec,3
Vice Governo
477
709
@FedFRASER