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609
Minutes for
To:
Members of the Board
From:
Office Of the Secretary
October 5, 1962
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
Initials will indicate approval of the minutes. If
you were not present, your initials will indicate
only that you have seen the minutes.
Chin. Martin
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Gov. Mitchell
)
Minutes of the Board of Governors of the Federal Reserve
System on Friday, October
5, 1962. The Board met in the Board Room
at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Mills
Shepardson
King
Mitchell
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant to the Board
Noyes, Director, Division of Research
and Statistics
Holland, Adviser, Division of Research
and Statistics
Koch, Adviser, Division of Research
and Statistics
Brill, Associate Adviser, Division of
Research and Statistics
Eckert, Chief, Banking Section, Division
of Research and Statistics
Yager, Chief, Government Finance Section,
Division of Research and Statistics
Bernard, Economist, Division of Research
and Statistics
Mattras, General Assistant, Office of the
Secretary
Money market review.
Mr. Brill discussed recent developments
in the Government securities market and the outlook for Treasury financing
operations during the fourth quarter of 1962.
Mr. Holland then distributed
4 table summarizing monetary developments during the four-week period
ended October
3, 1962, and discussed recent trends in business activity
and bank credit.
All members of the staff then withdrew except Messrs. Sherman,
Kerlyon, Fauver, and Mattras and the following entered the room:
-2-
10/5/62
Mr. Hackley, General Counsel
Mr. Solomon, Director, Division of Examinations
Mr. Johnson, Director, Division of Personnel
Administration
Mr. O'Connell, Assistant General Counsel
Mr. Hooff, Assistant General Counsel
Mr. Leavitt, Assistant Director, Division of
Examinations
Mr. Young, Senior Attorney, Legal Division
Mr. Poundstone, Review Examiner, Division of
Examinations
Mr. Hill, Attorney, Legal Division
Discount rates.
The establishment without change by the Federal
Reserve Banks of New York, Philadelphia, and San Francisco on October 4,
1962, of the rates on discounts and advances in their existing schedules
Ifts approved unanimously, with the understanding that appropriate advice
would be sent to those Banks.
Circulated or distributed items.
The following items, copies
of which are attached to these minutes under the respective numbers
indicated, were approved unanimously:
Item No.
Letters to Bankers International Corpora-
1-2
tion, New York, New York, granting permission
to purchase shares of (1) Societe Generale
de Banques en Cote d'Ivoire, Abidjan, Ivory
Coast, and (2) Societe Generale de Banques au
Senegal, Dakar, Senegal.
Letter to the Federal Reserve Bank of Chicago
4PProving an adjustment in salaries of certain
service employees retroactive to October 1,
1962.
3
t
10/5/62
Item No.
Letter to Devon-North Town State Bank, Chicago,
Illinois, granting its request for permission
to exercise additional fiduciary powers.
Letter to The First Commercial Bank, Chicago,
Illinois, granting its request for permission to
act in certain fiduciary capacities.
5
Letter to Citizens Commercial Trust and Savings
Bank of Pasadena, Pasadena, California, approving
a change in the location of a branch on Colorado
Boulevard.
6
Letter to Bankers Trust Company, New York, New York,
approving the establishment of a branch at 845 Third
Avenue, Borough of Manhattan.
7
Letter to The Oystermen's Bank and Trust Company,
8
Sayville, New York, approving the establishment of
a branch on Veterans Memorial Highway, Bohemia.
Letter to Marine Midland Trust Company of Central
9
New York, Syracuse, New York, approving the establishment of a branch at 700-730 Erie Boulevard, East,
Syracuse, concurrent with the discontinuation of
branch operations at 321 Erie Boulevard, East.
Letter to State-Planters Bank of Commerce and Trusts,
rilchmond, Virginia, approving the establishment of a
branch at Forest Hill Avenue and 48th Street.
10
Letter to Sellersburg State Bank, Sellersburg, Indiana,
11
aPProving the establishment of a branch in Borden.
Letter to United California Bank, Los Angeles, California, approving the establishment of a branch in
the vicinity of University Avenue and Cowper Street,
ralo Alto.
12
During a discussion with regard to Items 4 and 5, Governor Mills
inquired about the effect of the termination of Regulation F, Trust
Powers of National Banks, on the standards applied in the examination
°f
trust departments of State Banks.
_)4_
10/5/62
Staff comments indicated that the termination of Regulation F
would have no effect on current practices.
Examiners would continue to
scrutinize the trust operations of State member banks in the light of
applicable State laws, court decisions, and well-recognized principles
Of trust administration.
Report on competitive factors (Athens, Ohio).
There had been
distributed a draft of report to the Comptroller of the Currency on the
competitive factors involved in the proposed consolidation of The Bank of
Athens National Banking Association, Athens, Ohio, with The Athens
National Bank, Athens, Ohio.
The report was approved unanimously for transmission to the
CoMptroller of the Currency with the understanding that the conclusion
Of the report would be revised to reflect a change suggested by Governor
Mitchell.
The conclusion of the report, as revised, read as follows:
While the proposed consolidation of The Bank of
Athens National Banking Association and The Athens
National Bank would probably not have any material
effect on competition because of common ownership,
it would eliminate potential competition between
these institutions if the managements were separated.
Interest on foreign time deposits (Item No. 13).
There had been
distributed a draft of letter to the Bureau of the Budget reporting on
enrolled bill H. R. 12080, "To permit domestic banks to pay interest on
tiMe deposits of foreign governments at rates differing from those
4PPlicable to domestic depositors".
10/5/62
-5The letter, which indicated that the Board would have no
Objection to approval of the enrolled bill, was approved unanimously.
A copy is attached to these minutes as Item No. 13.
Messrs. Hooff, Young, Hill and Poundstone then withdrew from
the meeting.
Peoples Union Bank and Trust Company (Items 14 and 15).
Pursuant
to the decision reached by the Board at the meeting on September 28, 1962,
there had been distributed a proposed order and statement reflecting
aPProval of the application of Peoples Union Bank and Trust Company,
McKeesport, Pennsylvania, to merge with The Bank of Glassport, Glassport,
Pennsylvania.
The issuance of the order and statement was authorized.
Copies
Of the documents, as issued, are attached to these minutes as Items 14
and 15
First Oklahoma Bancorporation (Item No. 16).
There had been
distributed a memorandum from the Legal Division dated September 28,
1962, regarding a request by a group of protesting banks for oral argument
before the Board with regard to the application by First Oklahoma Bancorporation, Inc., Oklahoma City, Oklahoma, to become a bank holding company
by acquiring shares of two national banks.
The memorandum also covered
t1/0 issues of late filing raised by Counsel for the protesting banks.
Mr. O'Connell noted that on August 20, 1962, the Hearing
Examiner in the case recommended approval of the application filed by
Pirst Oklahoma after the issues involved had been the subject of extensive
10/5/62
-6-
comment both at a public hearing and in written submissions.
The Legal
Division felt that oral argument would contribute little to the material
already developed.
Mr. O'Connell also stated that there was some reason
to feel that the protesting banks were seeking to delay a decision on
the application until 1963, when it appeared that the State Legislature
might pass legislation barring the formation of bank holding companies
in Oklahoma.
With regard to the first issue of late filing, the protesting
banks maintained that the applicant's rebuttal brief should not have been
c°nsidered by the Hearing Examiner since the Examiner's Report indicated
that it was filed on July 31, 1962, one day beyond the date allowed by
the Examiner. The Legal Division felt that this motion should be denied
Since the stamp of the Secretary's Office established the date of receipt
of the applicant's brief to be July 30, 1962.
The second issue of timeliness was a "Motion to Strike Purported
Response of Applicant to Exceptions of Protesting Banks."
The protesting
banks contended that the applicant failed to file the response within the
tive-day period following the date of service of such exceptions as
l'equired under section 263.7 of the Board's Rules of Practice for Formal
Rearings.
Mr. O'Connell noted that the motion to strike contained no
allegation concerning the date on which service of the exceptions was
Made on Counsel for the applicant, nor was there any support of the
motion by a registered mail receipt or other probative evidence as required
bY section 263.12(b) of the Board's Rules of Practice.
Moreover, a review
10/5/62
-7-
of the applicant's response did not disclose any substantive matter not
contained elsewhere in the record.
The Legal Division therefore felt that
denial of the motion to strike would not prejudice the position of the
Protesting banks.
Chairman Martin stated that the reasons for denying the request
for oral argument appeared quite persuasive.
However, in view of the
rather widespread interest that had been generated by this case, he would
be inclined to grant the request if it could be done expeditiously and
without setting a harmful procedural precedent.
Comments made in reply by Messrs. Hackley and O'Connell were to
the effect that the decision whether or not to grant oral argument was
Yholly within the Board's discretion.
In the view of the Legal Division,
there was no particular need for oral argument because the record was
already voluminous; it did not appear likely that anything of significance
*)uld be added.
However, as a public relations matter the Board might
feel that it would be desirable to permit oral argument.
Governor Shepardson indicated that his principal concern had to
do with whether the granting of oral argument would delay unduly the
reaching of a decision on this case.
In reply to questions that he
raised in this regard, Messrs. Hackley and O'Connell expressed the view
that, if the Board should decide to grant the request for oral argument,
It would not be inappropriate to schedule the oral argument as early as
Monday, October 15.
Counsel for the applicant and the protesting banks
could be given a week from the date of oral argument within which to file
f
-8-
10/5/62
briefs.
Mr. Solomon indicated that a memorandum on the application, based
On the record to date, had already been prepared by the Division of
Examinations.
Unless new information was presented in oral argument,
which seemed unlikely, the Division memorandum therefore could be made
available to the Board promptly.
These circumstances, taken together,
would indicate that the case could be considered and decided by the Board
by about the first of November, following which a reasonable time would
have to be allowed for the preparation of an order and statement reflecting
the Board's decision.
Governor Mills commented that aside from the question of delay,
there was the fact that a formal hearing had been held before a Hearing
Examiner, with Board Counsel present and with certain protesting banks
admitted as parties.
Following the hearing and the filing of briefs by
Counsel for the applicant and the protesting banks, the Hearing Examiner
had handed down his Report and Recommended Decision.
As brought out by
the Legal Division, the record was voluminous and seemed complete.
In
these circumstances, if the Board did not carry through to a decision
O1 the basis of the present record, that might indicate that the Board
%las subject to pressure or, if not, that it was disparaging the efforts
and the ability of the Hearing Examiner, as well as Board Counsel.
In further discussion, Mr. Hackley noted that the Board's Rules
c't Practice for Formal Hearings contemplate that where a formal hearing is
held, the Board in its discretion may grant permission for oral argument.
Such oral argument, he added, was to be distinguished from the oral
10/5/62
Presentations that the Board had heard in some cases where no formal
bearing was held.
To the best of his recollection, the Board had never
seen fit to deny a request for oral argument following a formal hearing.
In the present case, he did not believe that there was any good reason
for having oral argument.
However, if the Board should deny the request
for oral argument, Counsel for the protesting banks might point to the
fact that this was the first time such a request had been denied.
Comments by members of the Board reflected the concern originally
expressed by Governor Shepardson that undue delay be avoided.
However,
it was the general view that a time schedule such as had been outlined
woUld not be unreasonable.
Governor Mills suggested, however, that an
-Unduly accelerated schedule involved the risk that the Board would be
accused of having granted oral argument in order to give lip service to
the request and without making a substantive analysis of the argument
Presented by the protesting banks.
After further discussion, it was agreed to grant the request of
the protesting banks and order oral argument on Monday, October 15, with
the understanding that briefs would be required to be submitted by Monday,
October 22, and that the Board would contemplate reaching a decision on
the application by around the first of November.
the
There was agreement that
other motions filed by Counsel for the protesting banks should be
denied,
as recommended by the Legal Division.
L0/5/62
-10Secretary's Note: A copy of the order
issued pursuant to the foregoing action
of the Board is attached as Item No. 16.
The meeting then adjourned.
k
Secretary
,
)
(40,
t_v„
BOARD OF GOVERNORS
Item No. 1
OF THE
105/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October 5, 1962
Bankers International Corporation,
16 Wall Street,
New York 5, New York.
Gentlemen:
In accordance with the request and on the basis of the
information furnished in your letter of August 28, 1962, transmitted through the Federal Reserve Bank of New York, the Board of
Governors grants consent for Bankers International Corporation
("BICH) to purchase and hold 8,000 shares, par value CFA Francs
5,000 each, of Societe Generale de Banques en Cote d'Ivoire,
Abidjan, Ivory Coast ("SGBCI"), at a cost of approximately
US$163,2001 provided such stock is acquired within one year
from the date of this letter.
The Board's consent is granted upon condition that BIG
shall dispose of its holdings of stock in SGBCI, as promptly as
Practicable, in the event that SGBCI should at any time (1) engage
in issuing, underwriting, selling or distributing securities in
the United States; (2) engage in the general business of buying
or selling goods, wares, merchandise, or commodities in the United
States or transact any business in the United States except such
as is incidental to its international or foreign business; or (3)
Otherwise conduct its operations in a manner which, in the judgment of the Board of Governors, causes the continued holding of
its stock by BIG to be inappropriate under the provisions of Section 25(a) of the Federal Reserve Act or regulationsthereunder.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
-
BOARD OF GOVERNORS
Item No.
OF THE
c4,14-7ptCP,
2
10/5/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ACORESS OFFICIAL CORRESPONCEHCC
TO THE BOARD
October 5, 1962
Bankers International Corporation,
16 Wall Street,
New
5, New York.
Gentlemen:
In accordance with the request and on the basis of the
information furnished in'Your letter of September 11, 1962, transmitted through the Federal Reserve Bank of New York, the Board of
Governors grants consent for Bankers International Corporation
("BIC") to purchase and hold 10,000 shares, par value CFA Francs
5,000 each, of Societe Generale de Banques au Senegal, Dakar,
Senegal ("SGBS"), at a cost of approximately US$204,000, provided
such stock isamiired within one year from the date of this letter.
The Boardfs consent is granted upon condition that BIC
shall dispose of its holdings of stock in SGBS, as promptly as
practicable, in the event that SGBS should at any time (1) engage
in issuing, underwriting, selling or distributing securities in
the United States; (2) engage in the general business of buying
or selling goods, wares, merchandise, or commodities in the
United States or transact any business in the United States except such as is incidental to its international or foreign business; or (3) otherwise conduct its operations in a manner which,
in the judgment of the Board of Governors, Causes the continued
holding of its stock by BIG to be inappropriate under the provisions of Section 25(a) of the Federal Reserve Act or regulations
thereunder.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
No. 3
10/5/62
Item
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL. CORRESPONDENCE
TO THE BOARD
October
5, 1962
CONFIDENTIAL (FR)
Mr. H. J. Newman, Vice President,
Federal Reserve Bank of Chicago,
Chicago 90, Illinois.
Dear Mr. Newman:
The Board of Governors approves the payment of salaries by
the Federal Reserve Bank of Chicago to the incumbents of the positions
shown below at the rates indicated retroactive to October 1, 1962, in
accordance with the request contained in your letter of September 24,
1962:
Annual Salary
Title
Janitors
Janitors (6 months or less)
Marble Maintenance
Paper Baler
Matrons
Matrons (6 months or less)
Starter
Assistant Starter
Split Shift Operators
Operators
$4,856.80
4,773.60
4,992.00
4,992.00
3,723.20
3,660.80
5,382.00
5,116.80
5,179.20
4,908.80
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary
Item No.
BOARD OF GOVERNORS
4
10/5/62
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October
5, 1962
Board of Directors,
Devon-North Town State Bank,
Chicago, Illinois.
Gentlemen:
This refers to your request for permission,
under applicable provisions of your condition of membership numbered 1, to exercise additional fiduciary powers.
Following consideration of the information
submitted, the Board of Governors of the Federal Reserve
System grants permission to Devon-North Town State Bank
to exercise all other fiduciary powers now or hereafter
authorized by its charter and the laws of the State of
Illinois/ in addition to permission granted by the Board,
on May 2, 1962/ to exercise limited fiduciary powers.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
ex
4r, lt
.
=‘,
BOARD OF GOVERNORS
Item No.
OF THE
5
10/5/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDE
TO THE BOARD
October
1962
Board of Directors,
The First Commercial flank,
Chicago, Illinois.
Gentlemen:
This refers to your request for permission, under
applicable provisions of your condition of membership numbered 1, to act in certain fiduciary capacities.
Following consideration of the information submitted, the Board of Governors of the Federal Reserve System
grants permission to The First Commercial Bank to act as
trustee of land trusts and escrow agent, with the understanding that your bank will not accept fiduciary appointments of other kinds without first obtaining the permission
of the Board.
Very truly yours,
(Signed) Elizabeth L. Caiiicbae1
Elizabeth L. Carmichael,
Assistant Secretary.
IC
p4"4
BOARD OF GOVERNORS
Item No.
OF THE
6
10/5/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE HOARD
October 5, 1962
Board of Directors,
Citizens Commercial Trust and Savings
Bank of Pasadena,
Pasadena, California.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the change in location of a branch by
Citizens Commercial Trust and Savings Bank of Pasadena
from the south side of Colorado Boulevard between Catalina
and Wilson Avenues to the Southwest corner of Catalina
'
Street and Colorado Boulevard—both locations in Pasadena,
California. This approval is granted provided the branch
is established by April 18, 1963.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
Item No. 7
10/5/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25.0 C.
ADDF;IESS Of FICIAL CORRESPONDENCE
TO THE BOARD
October 5, 1962
Board of Directors,
Bankers Trust Company,
New York, New York.
Gentlemen:
The Board of Governors of the Federal Reserve System
approves the establishment of a branch at 845 Third Avenue,
Borough of Manhattan, New York, New York, by Bankers Trust
Company, provided the branch is established within one year
from the date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
......
oefG01,4!..
t•
/411-pN,
It.ars‘
BOARD OF GOVERNORS
Item No.
OF THE
8
10/5/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
•
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October
5, 1962
Board of Directors,
The Oystermen's Bank and Trust Company,
Sayville, New York.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment of a
branch on the north side of Veterans Memorial
Highway, approximately 150 feet west of the intersection of Smithtown Avenue and Veterans Memorial
Highway, Bohemia (unincorporated area), Town of
Islip, Suffolk County, New York, by The Oystermen's
Bank and Trust Company, provided the branch is
established within one year from the date of this
letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
Item No.
9
10/5/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October
5, 1962
Board of Directors,
Marine Midland Trust Company of
Central New York,
Syracuse, New York.
Gentlemen:
The Board of Governors of the Federal Reserve System
approves the establishment of a branch at 700-730 Erie Boulevard,
East, Syracuse, Onondaga County, New York, by Marine Midland
Trust Company of Central New York, provided the branch is established within one year from the date of this letter, and provided further that branch operations now conducted at 321 Erie
Boulevard, East, Syracuse, are discontinued simultaneously with
the establishment of the above branch.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
.....
OCO
Item No. 10
10/5/62
BOARD OF GOVERNORS
OF THE
:•
4'4
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
RE
••••
October 5, 1962
Board of Directors,
State-Planters Bank of Commerce and Trusts,
Richmond, Virginia.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment of a branch by StatePlanters Bank of Commerce and Trusts at the southeast
corner of Forest Hill Avenue and 48th Street, Richmond,
Virginia, provided the branch is established within one
year from the date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
**
C
Item No. 11
10/5/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October
5, 1962
Board of Directors,
Sellersburg State Bank,
Sellersburg, Indiana.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment of a branch by
Sellersburg State Bank in Borden, Indiana, provided the
capital stock of Sellersburg State Bank is increased to
$100,000 to meet statutory requirements and provided the
branch is established within nine months from the date
of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
Item No. 12
10/5/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October
5, 1962
Board of Directors,
United California Bank,
Los Angeles, California.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment of a branch by .United
California Bank in the vicinity of University Avenue
and Cowper Street, Palo Alto, California, provided the
office is established within six months from the date
of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
' Elizabeth L. Carmichael,
Assistant Secretary.
Item No. 13
10/5/62
BOARD OF GOVERNORS
OF' THE
FEDERAL RESERVE SYSTEM
WASH I NGTON
OFFICE OF' THE CHAIRMAN
October
5, 1962.
44% Phillip S. Hughes, Assistant Director
„tor Legislative Reference,
4xecutive Office of the President,
.3
.,11reau of the Budget,
washington 251 D. C.
Attention Mrs. Garziglia.
Dear M.
Hughes:
response to your letter of October 31 19621
that the This is to advise in
Board has no objection to approval of the enrolled bill, H.R. 12080,
Permit domestic banks to pay interest on time deposits of foreign governts at rates differing from those applicable to domestic depositors".
Sincerely yours,
(Signed) Wm. McC. Martin, Jr.
Wm. MCC. Martin, Jr.
)
Item No. 14
10/5/62
UNITED STATE6 OF Adc7AICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.
.16
.N6
In the Matter of
the Application of
130PLES UNION BANK AND TRUST COMPANY
approval of merger with
e Bank of Glassport
ORDER APPROVING MERGER OF BANKS
There has come before the Board of Governors, pursuant to
the Bank Merger Act of 1960 (12 U.S.C. 1828(c)), an application by
13"es Union Bank and Trust Company, McKeesport, Pennsylvania, a
rer°Der bank of the Federal Reserve System, for prior approval by the
11°41
'
d of the merger of that bank and The Bank of Glassport, Glassport,
'
sYlvanial under the charter and title of the former. As an inci-
clent to the merger, the present office of The Bank of Glassport would
be °Perated as a branch of the Peoples Union Bank and Trust Company.
4c)tice of the proposed merger, in form approved by the Board, has been
Published
pursuant to said Act.
Upon consideration of all relevant material in the light of
the
actors set forth in said Act, including reports furnished by
the n
'
omPtroller of the Currency, the Federal Deposit Insurance Corporation,
-2and the Department of Justice on the competitive factors involved in
the Proposed merger,
IT IS HERELY ORDLRED, for the reasons set forth in the
8°arcits Statenent of this date, that said application be and hereby
i8 aPproved, provided that said nerL.er shall not be consummated
(a) within seven calendar days after the date of this Order or
(b) later than three months after said date.
Dated at Washington
D. C,, this 5th day of October, 1962.
By order of the Loard of Governors°
Voting for this action: Governors Balderston, Mills,
Robertsoa, Shepardson, and Mitchell.
Absent and not voting:
Chairman Martin and Governor King.
(Signed) Merritt Sherman
Merritt Sherman,
Secretary,
(SEAL)
Item No. 15
10/5/62
BOARD Of GOVEFLTORS
OF THE
FEDERAL RESERVE SYSTEM
APPLICATION BY PEOPLES UNION BANK AND TRUST COMPANY
FOR APPROVAL OF MERGER WITH THE BANK OF GLASSPORT
STATEMENT
The Peoples Union Bank and Trust Company, McKeesport,
PermIsYlvania ("Peoples"), with deposits of $112 million,* has applied,
Pursuant to the Bank Merger Act (12 U.S.C. 1828(c)), for prior approval
bY the Board of the merger of that bank and The Bank of Glassport„
GlassPort, Pennsylvania ("Glassport Sank"), with deposits of $5.7 million.
The v,
uanks
would merge under the charter and title of Peoples, which is a
Stat
e-chartered member bank of the Federal Reserve System, and the single
orric
e of Glassport Bank would become a branch of the resulting bank,
increasing the number of offices of Peoples from 12 to 13.
Under the Act, the Board is required to consider (1) the
financial history and condition of each of the banks involved, (2) the
iegi-laeY of its capital structure, (3) its earnings prospects, (4) the
al character of its management, (5) whether its corporate powers
c°nsistent with the purposes of 12 U.S.C., Ch. 16 (the Federal DePosit
Insurance Act), (6) the convenience and needs of the communities
t° 13
- served, and (7) the effect of the transaction on competition
arlci
Ilding any tendency toward monopoly). The Board may not approve
The
figures throughout are as of June 30, 1962.
the transaction unless, after considering all these factors, it finds
the transaction to be in the public interest,
- The financial histories of the two banks
Banking factors
are
satisfactory; each has a sound financial condition; and both have
adequate capital structures.
The future earnings prospects of these
banks are regarded as satisfactory.
The death early in 1961 of the
vie
e President and cashier of Glassport Bank and the death of his suc-
ceeeor a rear late- left this relatively small bank with a serious man4gellient succession problem.
Consummation of the proposal would solve
this problem, since the satisfactory management of Peoples would operate
the resulting
institution.
There is no indication that the powers exer-
ei8ed by- the banks involved are or would be inconsistent with the purposes
°t 12 U.S.C., Ch. 16.
Convenience and needs of the communities. - McKeesport
.00+...••••
(1960
population 45,489), is about 14 miles southeast of the downtown
blIsiness section of Pittsburgh. Glassport (1960 population 8,418) is
thl
'
es miles southwest of McKeesport. The service area of Glassport
tax*
- would be the area primarily affected by the proposal. Glassport
Bank
does not offer certain services frequently offered by banks of
c°MParable size.
For example, it does not make installment loans or
-"leh trust services.
Consummation of the subject merger would make
'LLJ-able to customers of Glassport Bank a larger loan limit and a more
e°I4Plete range of banking services.
-3-
Competition. - Glassport Bank, the on)y bank in Glassport, is
three miles from the nearest office of Peoples. However, since Glassport
8ank serves primarily Glassport and its immediate environs, there is
hardly any competition between the two banks elsewhere, and the competiti
°I). between them in Glassport itself is not particularly keen.
There are three banks with their main offices in McKeesport.
Peoples is the second largest, and this position would not be altered
bY the proposed merger.
The third and smallest bank is operating
Profitably and derives so little of its business from Glassport that its
c°14Petitive position would not be harmed by the subject merger.
The record is clear that consummation of this transaction
14/111d have only a minor effect on either the over-all competitive picture
in the McKeesport-Glassport area or in the entire Pittsburgh metropolitan
area
Summary and conclusion. - While consummation of the proposed
Illerger would eliminate the moderate amount of competition between the
tlf° banks involved, it would provide the customers of Glassport Bank
141th a wider range of banking services and would solve the serious
rtianagernent succession problem of the bank. Peoples is the second
gest bank in McKeesport and this position mould not be altered by
the,
l'roPosal. There would be little, if any, effect upon the competitive
P°eition of other banks in the McKeesport-Glassport area.
Accordingly, the Board finds that the proposed merger is in the
PlIblie
interest.
°etc)ber
5, 1962
Item No. 16
10/5/62
UNITDD STATES OF AiICA
BEFCRE THE BOARD OF GOVIROCRS OF TIE FEDERAL RESERVE SYSTEH
WASHEGTON, D. C.
In the Hatter of the Application of
FIRST OKLAHOIIA BANCORP ORATION, INC.,
°klahoma City, Oklahoma,
DOCKET NO. BHC-64
Pursuant to section 3(c)(1) of the
Bank Holding Company
Act of 1956.
4.•
•••
ORDER REGARDLI;. CRAL AMUI ENT AND
CO1TOSITION OF TIE P.)]CC1.1.13
I.
On September 4, 1962, there was filed with the Secretary of the
8c)ard of Governors on behalf of certain banks opposing the application
in the above
-captioned matter a i:otion to Allow Oral Ar[;ument before the
BoarL of
Governors of the Federal Reserve System. uithin the time allowed
section 263.8 of the Board's Rules of Practice for Formal Hearings,
4PP1icant filed objections to ormsing banks' motion. The motion and
°hjectioas thereto having been considered 1),. the Board, it is the Board's
illdEment that the motion for oral argument should be granted. Accordingly,
IT IS HLREBY ORDER:D that a public oral argument before the Board
ir this
matter be held commencing at 10 a.m. on 1.onday, October 15, 1962,
et the
offices of the Board of Governors, tiashington, D. C., and that
°11118c1 for opoosing banks and counsel for Applicant shall each have
45mi
flute5 for oral argument.
-2-
IT IS FURTHER ORDERED that within 7 calendar clays of the date of
0rO1 argument,
that is, before the close of business, October 22, 1962,
briefs in
support of oral argument may be presented by counsel for the
r°sPective parties.
On Saptenber
4, 1962,
counsel for the opposing banks filed
1-'xecptions of Protesting Banks to Re7)ort and Recommended Decision of
-mg 77,xaminer (herejnafter referred to as Exceptions). Paragraph 1
Of the said
Exceptions cited a statement in the Hearing Examiner's Report
tht C
Reply Brief had been filed by Ap)licant on July 31, 1962, and had
13r1). considered by the liz,:aminer. Exception uas taken to the Examiner's
con,
•
-lckeration
of said Reply Brief on the ground that it had not been timely
fil a, since the Zz:oniner had stated in on (rder of June 26, 1962, that
'
l °131Y briefs would be considered if filed by July 30, 1,262.
Inspection of the official docket of pleaddn,s and papers filed
la the. above-captioned cause, maintained by the Secretory of the Board of
Govcr
-Icirs, reveals that the original of the Reply Brief dn clues-Von bears
cprfieial date stomp of the
10:45
rfice of tho Secretary shOITiflg receipt at
a.m. on July 30, 1962, Accordingly,
IT IS ORLULD
that paragraph I of the Exceptions of opposin,g, banks
'and it hereby is, specifically overruled.
-.3-
On September 17, 1962, counsel for Applicant filed a Response of
APolicant to Lxceptions of Protesting Banks to Report and
ecommended
Ijecision of Hearing Examiner (hereinafter referred to as Response and
Exceptions, respectively). On September 19, 1962, counsel for opposing
banks filed a Notion to Strike Purported "Response of Applicant to
Exceptions of Protesting Banks" (hereinafter referred to as Motion to
on
Str.1:ke). The Motion to Strike averred, in pertinent pert, that:
September
4, 1962, the
pret(;sting banks filed their Exceptions with the
I3eal'd of Governors and mailed copies to all parties; on September 17, 1962,
APPlicant filed with the Board of Governors its Response to the Exceptions;
section 263.7 of the Board's 'Zules of Practice provides that opposition to
exceptions to a Hearing Examiner's report must be filed 'within
t°11°Iling the date of service of such exceptions * *
5
days
and, therefore,
4131)licant's Response was not timely filed. In light of these allegations)
it was moved that Applicant's Response be stricken and denied admission
to the
record in this proceeding.
As asserted, section 263.7 of the 3oard's Rules of Practice allows
5 da
Y$ following service of exceptions to a Hearing Examiner's report
Which opposition thereto by any party may be filed. However, the
S.da
Y period for
filing such opposition must be computed from the date upon
h tae party
filing such opposition was served with a copy of the exceptioh_
to the Hearing Lxaminerls report. In this connection, it is instruct) note that section 263.12(b) of the Board's Rules of Practice provides
that,
e!.
"Service shall be made by personal service on the
party or his attorney of record, by registered mail
addressed to the party or his attorney of record, or by
Other appropriate means specified by the Board.
Service
by registered mail shall be deemed to be made as of the
date of receipt by the person addressed."
The Motion
to Strike contains no alle7,ation concerning the date on
'which service of the E::ceptions was made on counsel for Applicant, nor
is said motion supported by a registered nail return receipt or other
Probative evidence of the date of service thereof. Under these cir—
etiMstances, since the Board cannot determine on the pleadings before
t the precise date on which service of the opposing banks' Exceptions
W48 made
on counsel for Applicant, the Board has concluded that
APPlicant's Response to the Exceptions should not be stricken as
untimely filed.
Furthermore, by letter to the Board of September 24, 1962, a
ecYPY of which was sent to counsel for opposing banks, Applicant's
counsel evidences his misunderstanding of the Tplicable section of
the
Board's Rules of Practice 2er Formal Hearings under which Applicant's
ResPonse should have been filed and remests the Board to receive the
Res
,
4411se for the reasons set forth in counsel's letter. Finally, a
of Applicants Response to uhich the Motion to Strike is directed,
has satisfied the Board that there is not contained in that Response
411,c0
-5..
substantive matters not contained elseuhere in the record of this matter,
expressly or implicitly, and that, therefore, denial of the notion to
Strike Would not prejudice the position of the opposing banks. Accordingly,
IT IS ORDERED that the opposing banks t Notion to Strike be,
and it hereby is, denied.
Dated at Washington, D. C., this
5th
day of October, 1962.
By order of the Doard of Governors.
(Signed) Eerritt Sherman
L'erritt Sherman,
Secretary.
(SEAL)
@FedFRASER