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ll 1/ 149 Pursuant to the terns of adjournment yesterday, a meeting of the Federal deserve Board was held in the office of the r'ederal deserve Board 04 Friday, September 10, 1926 at 10:15 a.m. PRESERT: Governor Crissinger Mr. Hamlin Mr. iAller Mr. James Mr. Cunningham Mr. iqoell, Asst. 3ecretary Mr. McClelland, Asst. Secretary r.Jyatt, eieneral Counsel Er. .iyatt read to the Board the statement approved at the meeting yesterday with certain minor changes made by him under the direction of the eovernor, the revised staement reading as follows: "With respect to the request which Mr. Black has male on behalf of the investigating committee of the 1:ederal lieserve Bank of Atlanta in the case of Mr. Joseph L. Campbell, Jeputy eovernor of that bank, for the information on which the Board is proceeding against Mr. Campbell, it is the opinion of the Board that there is nothing in the Federal eserve Act tilat equires that the Board shoulu furnish the information =on which it may reach the conclusion that an officer of a Federal eserve _)an,c should be roved. 'Ale law requires only that the Board in making a removal shall state the cause of removal. It is the opinion of the Joard that if it ,,ere to estaulien the praetiee of 4 - 7uvnishing the information upon which it may reach the conclusion that an officer should be ranoved, it would result in a serious embarrassment of the power of the Board in a matter in which the Federal deserve Act intended that the Board should be free to use its best judgaent. "At the same time, the Board recognizes that an implied obligation to furnish the information in the Campbell case to the investigating committee of the Federal Reserve Bank of Atlanta and to Mr. Campbell may fairly be said to have grown out of staterents made by members of the Board at the June 16th conference, to which Mr. Black referred at the hearing yesterday afternoon. "In view of the fact ti-at the Federal Reserve Bank of Atlanta has appointed a committee to investigate the conduct of Mr. Campbell, the 3oard is willing to parmit the investigating conmittee and Mr. Campbell to examine the documents containing the information on which the Board is proceeding, with the understanding that the committee and Mr. Campbell will agree to regard and treat the 150 9/10/26 -2- "documents and the information contained therein as confidential and privileged and to be used only in connection with the investigation being conducted by the committee and for the purpose of acquainting Mr. Campbell with the information upon which the Federal Reserve Board's proceedings are based." Mr. Hamlin then moved approval of the statement as revised.. Carried.. The Secretary was then instructed to call into the meetii the members c'e the Atlanta Directors' Committee, Ur. Campbell and his Counsel.' During the interim preceding their appearance, Mr. Platt joined the teeting, The official stenographer then entered the room and stated that he anticipated that he would be requested by the Atlanta Committee and. by Mr. Campbell to tarnish them with a. copy of the proceedings of the stenographically resessions yesterday and today. He inquired. if the Board. had any objection to complying with their request. Mr. Hanlin moved that copies of the hearing be furnished to the Atlanta Committee and to Mr. Campbell, if requested by them. EX. Hamlin's motion being put by the Chair was carried, the members voting as follows: Mr. Platt, "aye" 1J1'4, Hamlin, "aye" 11r. Cunningham, "aye" Governor Crissinger, "no" Mr. Miller, "no" Mr. James, "not voting" Llr. McIntosh then joined the meeting, and Messrs. Campbell, Howard, 1314°1t, Ware and Melvin also entered the room. 9A0/26 -3- In a meeting reported by the stenographer, the Governor read the statement approved by the Board. Messrs. Campbell, Howard, Black, Melvin azd Ware agreed to the conditions set forth in the statenent, whereupon the Gclvernor handed to Mr. Black copies of the documents containing the information $34, Which the Board is proceeding against Mr. Campbell. It was agreed that the Atlanta Committee should be given a period In' two weeks from this date (until Septenber 24, 1926) to complete its in- Vestigations and submit a report thereon to the Board of Directors of the Pederal Reserve Bank of Atlanta. At 11:00 a.m. the meeting adjourned. _ Assistant Secretary.
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