Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, September 14, 1934, Volume 21, Part 5

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2776

A meetin

of the Federal Reserve Board was held in Washington

on Friday, September
14, 1934, at 2:30 p. m.
PRESENT:

Mr.
Er.
Er.
Ir.
Mr.

Thomas, Vice Governor
Hamlin
James
Szymczak
OiJonnor

Lorrill, Secretary
Dethea, Assistant Secretary
Carpenter, Assistant Secretary
Goldenweiser, Director of the Division of Research and Statistics
Mr. Wyatt, General Counsel
Er. Cherry, Assistant Counsel

Yr.
Er.
Er.
Mr.

Mr. Thomas referred to the System Committee on Legislative
?r°P.8-111 recently appointed by the Board, consisting of Governor Harrias Chairman, and Governors Young, Norris, Pancher, Schaller,
131aek and himself and stated that, as the Federal reserve agents at
th°Ir c onference on May 7-9, 1934, had appointed a Committee for
Study
c31' Le''"islative Surgestions, consisting of Messrs. John N. Peyton, of
aPolAs, as Chairman, L. B. Williams, of Cleveland, and Oscar
flevrt
of Atlanta, which had done considerable work, he desired to
31-1r)Fes-E
' to the Board that the committees be consolidated by adding
hiensr, .
"

and Peyton to the System Committee on Legislative
Szymczak stated that, if such action is taken, he would

that, when the Chairman and Federal Reservo Agent at San Franeisco
18 selected, considerati
on be given to placing him on the committee.

Upon motion by Er. Hamlin, Messrs. Williams and
Peyton were appointed members of the System Committee
011 Legislative Proram, with the understanding that,




277'7
9/14/34

-2when the Federal Reserve Agent at San Francisco is appointed, consideration will be given to his appointment
on the committee.
There was then presented a memorandum dated September 11, 1934,

fr()11114r. Goldenweiser, stating that at the meeting of the System ComZittee

en Legislative Program on September 6, 1934, it was agreed to

(314)1°Y On a monthly basis Lr. ;falter R. Stark, as technical assistant
to the committee, with salary at the rate of '050 per
month, and that
t48 appointment is being submitted to the Board by the committee with
thereeommendation that it be approved with the understanding that the
ellelikse involved
will be allocated among the several Federal reserve
bektics

Approved.
Some ouestion having arisen as to the advisability of publishfl

--e Federal Reserve Bulletin the official documents issued in

"len with the nationalization of silver, Er. Goldenweiser stated
it has
been the policy of the Federal Reserve Board for a number
Of
Year
8
publish in the Bulletin all documents and regulations isaued
bY the United States
Government and other governments relating to

that

111C3rleta

rY matters;
that the Bulletin has come to be relied upon as a
sottree
such information; that the failure to publish such information

Eulletin would be a departure from the established procedure and
tuty ca
u8e unfavorable
conuaent; and that he would be very reluctant to
(414 the d
-0euments and desired to recolmaend that the Board authorize
4erve

plAblication without comment in the next issue of the Federal Re-

Bulletin.
Upon motion by lir. Hamlin, Er. Goldenweiser's
recommendation was approved.



2778
9/14/34
Mr. Morrill stated that Er. Herman Oliphant, General Counsel
tc) the Secretary of the Treasury, had called him on the telephone this
"Linz and stated that he would like to discuss with him the questions
43-sed at the hearing yesterday by representatives of the New 'York
8tc)°k Exchange and others in connection with the draft of regulation
to be issued by the Federal Reserve Board with regard to the extension
6441 /11aintenance of credit by brokers, dealers, and members of securities
eccliallges.

Mr. Morrill said that, accordingly, he and hr. Parry, of

the Board's
Division of Research and Statistics, went to Mr. Oliphant's
orrice and discussed the matter with him and Yr. C. V. Opper, Assistant
t0 the General Counsel to the Secretary; Er. Oliphant stating that he
1144 been called upon by the Secretary of the Treasury yesterday after° 11 to give
consideration to the September 5 draft of the proposed
seulation and to advise the Secretary of the Treasury as Chairman of
the Pederal
Reserve Board as to whether he should vote for the adoption
or the regulation, and that he felt he should study the regulation per4°12411Y before giving such advice.

After an explanotion by Mr. Parry

"he questions involved in
the views expressed at the hearing yester-

44Y,
the

cluring which Mr. Oliphant seemed to be particularly interested in

matter of the extent of the inconvenience and trouble and other

qtrioulties that
might be created by the adoption of the margin re1115-1'e1Uerlts set forth in the proposed regulation
as compared with the
t'l'eeerit
requirements of the Now York Stock Exchange, the latter stated
thst he
would not be in a position to discuss the regulation with the
eseretary of the
Treasury until next Tuesday, September 17; that he




2779
9/14/34

-4-

ceuld rake no commitment at this time on his own behalf or on behalf
Of

the Secretary of the Treasury as to when they would be prepared to

saYINilat their attitude would be with regard to the regulation; and
411a: he saw no way in which the regulation could be promulgated with
the approval of the Secretary of the Treasury
as a member of the hoard

the

before

24th or 25th of September, and that the Secretary of the

Tre

4811rY might not be ready at that time to pass on the matter.
Oliphant expressed the feeling, jr. Morrill-stated, that,
`410 circumstances, the regulati
on ought not to be issued to become

effective October 1, for the reason that
the intervening period would

be 4_

'
00 short a
time for persons affected to become familiar with it,
h• e discussed the possibility of issuing a simple regulation conmargin requirements based on a single percenta
ge calculation,

thich would be
easily understood by the public and would comply with
the
r• e quirements of
the law, and which would be effective from October
1 te 30me
later date in October to be fixed by the Board, when the
d

of regulation would become effective after an opportunity

44d b• een afforded
to the public to become reasonably familiar therer.

added that he and jr. Parry informed I:tr. Oliphant

Of

the great
amount of work and effort which had been expended by morn1)1'z' of the

'board's staff in carrying on the preliminary work necessary

t• he

preparation of the draft of regulation, with the view to action

bY' the'
4 °ard not later than September 15, and stated that it
is believed
the general
public is expecting the Board to adopt the statutory

re

quirements; that, if they are not adopted, there may be some




2780
on the part of those interested; and that, if the final regu4ti°11 is not issued early next week the Board will be confronted with

the

question wnat steps it will take to meet the situation.
Az Er. Oliphant was about to have a conference on another nat-

ter
'lir. Morrill said, he and ;.r. Parry at Yr. •Oliphant's request, con- %-rie discussion with Ir. Cpper, End pointed out to Li.. Opper
the fact
that the announcement that a simplified regulation would be
efrective for a
period in October would raise the question in the public
rlitd as
to what would be orJoodied in the permanent regulation as to
11141.Ein re
quirements particularly, and that Ir. Opper realized the difficultY Involved and expressed the thought that Ir. Cliphant night be
'
11E to consider the question of the statutory margin requirements
'elparat
elY from the rest of the regulation and attempt to reach a conhereon in the next few days.
Z. Thomas
stated that Li'. Cliphant had called him on the telePh0110

morning end had made a statement to him similar to that made

to llesGr,.

Lorrill and Parry; that he had called La.. Cliphant's attenti°11 to the
fact that the preliminary work in connection with the

r'egUlation had
been performed by members
the
draft
Of the regulation
had not been
that,8
coon as the final report of
the
tio4
be extended
to Er. Oliphant to
4ttrds

ittd4

of the Loard's staff; that
discussed by the Board; and
staff is submitted, an invite.discuss the draft with the

During the discussion which followed, the members of the Board
ootO

1.,11.1ell it

that they were
of the opinion that the regulation should be
its final form as promptly as possible, and Lir. Morrill




2781
9/10,4

-6-

Et4ted that it is believed that
the staff will complete its work and
have a final draft ready for
consideration by the Board on Monday, Septezber 17.
la.. Thomas suggested that the members of the staff working
on
the

reculation be
requested to place their final draft of the regula-

ti°4 in the hands
of the Board as early as possible on Londay and
that
if agreeable to the Board., he will call a meeting of the
Loard
(311 that day, to
which Mr. Oliphant will be invited, for the purpose of
diseussin': the
regulation.
Mr. Thomas' suggestion was approved.
Emead, Chief of the Division of Bark Operations, joined the
i
laleet 4g. at this
point, and there was presented a memorandum submitted
te the
Board under dete of September 6, 1034, and previously
circitleted
azung the members of the Board, to which was attached a
c4311Y°T the
form of condition report on which had been indicated certai
Ilggested changes for the Board's consideration
in connection with
th°11et call for reports of condition of
State member banks. One of
the
zuggested changes in the
form provided for a memorandum item on
the race of the
ctaterdent entitled "Undeclared cumulative dividends on
1)1s°1.'ell'ed, stock to
end of most recent dividend period, end/or unpaid
ilitereat °11 income capital notes and
debentures to end of most recent
Period, not included in item 30 above".
'
41*. James had
noted on the memorandum that, 'dine he favored
"I'1
4P.Pr
of the
Suggested chanf;es in the form of condition report,
he
did e,
u rel
uctantly, as he knew that continuous changes in the report

the




2782
9/14/34
-7"
very annoying to member banks which are already disturbed over
What they
regard as government bureaucracy and constant nagging, and
that,
in his opinion, the Board's staff should be cautioned and
asked
to
'flak as few
changes as possible in the future.
There was also appended to the memorandum a letter from lir.
Ole
onnor to Lr.
Thomas stating that he agreed fully with 1.1r. James'
el4linents and that he objected to a change in the form of report to includethe
memorandum item above referred to for the reason that his
is making a careful study of the question of
payment of diviaellds on

preferred stock and that it is hoped that the item can be
omitte
d from the
report without serious embarrassment. Mr. C'Connor

8t'
bed that he
objected to the inclusion of the item in the form of
report
P4rtioularly for the reasons: (1) that it may have a retardeffect upon the
program now being carried on to strengthen the
c4ita1
of banking
institutions, and (2) a great deal of criticism is
into his office
because of the number of reports and amount of
ormation required
from national banks. Er. Snead stated that, for
the,
,easons
outlined in his memorandum, he believed the suggested
ellange
should be made in
the form of report, but that the natter was
°Ile Or policy
for the decision of the Board.
hr. C'Connor moved that the suggested changes
l'?oonnended by
hr. amead in the form of report of conp
cti
vi be approved, with the exception of the change
for the insertion on the face of the report
ringthe memorandum
item above referred to.
Carried.
121

connection with the above matter, Yr. Snead stated that the




2783
9/14/34

-0-

C°14Ptrol1er of the Currency is contemplating combining in the form of
rePort of
condition for national barIrs the items of United States Gov(17ilent
Go

securities and securities guaranteed by the United States

vernraent es to interost and/Or principal, and that it is assumed that,

if Buch a change is made in the Comptroller's form of report, the Board
111.11 desire to
have a similar change made in the form of report for
State member
banks.
Lr. Snead was authorized to make a further
change in the form of report for State member banks
to combine the two items referred to in the event
Similar action is taken by the Comptroller of the
Currency with regard to the form of report of condition of national banks.
At the
request of Yr. Szymczak, Mr. Morrill reviewed briefly
the et

ePs being taken
in connection with the sale to the Board by the
Trear3,.,,
Y Department of the property facing on Constitution Avenue, as
a ni.t.
for the
Board's building, and stated that he is preparing a
Illelli°raliclum to Er.
Thomas with regard to the matter.
In this
connection, a question was raised as to whether any
13tePe should
be taken at this time in connection with the selection of
eal
architect for the
new building, and 10r. Morrill stated that Ix.
'11"'is chairman. of
the Board's building committee, had informed
1141 that 1,
t::o
p osed to take this natter up upon his return to Yiashingtcrrt the
1::
Part of September or early part of October.
C°nsideration
was then given to a number of Clayton Act appli°4tic148 °11 which
members of the Board had indicated differences of
13°'324°11 as to whether
they should be granted, and the following actions
vers tkicons




2784
9/14/34

-9..

APplication of Mr. Charles M. Holmes, for permission to serve at
the Same
time as a director of the State Street Trust Company,
Boston, Massachusetts, as a director of The First National Bank
of New Bedford, New Bedford, Massachusetts, and as a director of
The New Bedford Morris Plan Company,
New Bedford, Massachusetts.
Approved.
APPlication of Mr. James E. Stanton, Jr., for
permission to serve
!3:rt the
same time as a director of The Merchants National Bank of
?ew Bedford,
New Bedford, Massachusetts, and as a director of The
Ilew Bedford
Morris Plan Company, New Bedford, Massachusetts.
Approved.
APPlication of Er. H. W. Taber, for
permission to serve at the
!ame time as a director
and officer of The Merchants National
6eLak of New
tor of The Bedford, New Bedford, Massachusetts, and as a direcNew Bedford Morris Plan Company, New Bedford, Massac
husetts.
Approved.
Ap Placation of Mr. George F. Rand, for permission to serve at the
mo time as a director and
officer of The Marine Trust Company
13uffalo, Buffalo, New York, as a director of The Marine MidTrust
root01 Of Company of New York, New York, New York, and as a diof the Buffalo branch of the Federal Reserve Bank of New
ork*
Buffalo, New York.

n

Approved, together with a letter to Mr. Case, Federal Reserve Agent
at the Federal Reserve Bank of New
York, inclosing Er. Rand's permit and requesting the
agent to withhold delivery of the permit until he is
s'tisfied that the National Investors Corp. and the
Fltrust Corp., with which the applicant is connected,
are not "engaged primarily in the
business of purchasing,
selling* or negotiating securities" within the scope of
the
provisions of section 32 of the Banking Act of 1933
and that Er.
Rand is complying with the provisions of
section 8A of the Clayton Act.
8...-1-,oation of Er. Walter W.
Schneckenburger, for permission to
at the same
time as an officer of The Marine Trust Company
liatiurfalo, Buff& _,
10NewYork, as a director of The Manufacturers
Nor2nal Bank of Troy,
Troy, New York, and as a director of The
Olern New.
York Trust Company, Watertown, New York.
Approved.
APPlication of la-. George E.
Becker, for permission to serve at




2785
9/14/34

-10-

the same time as an officer of The 1:.arine Trust Company of Buffalo, Buffalo, New York, as a director of the Union Trust Company
?if Rochester, Rochester, New York, and as a director of the
Liaara County National Bank and Trust Company, Lockport, New
York.
Approve6, together with a letter to Mr. Case, Federal Reserve Agent at the Federal Reserve Bank of New
York, inclosing Mr. Becker's permit and stating that if
the agent finds to his satisfaction that the provisions
of section 32 of the Banking Act of 2.33 are not applicable to Mr. Becker, he is authorized to transmit the
Clayton Act permit to him. The letter also stated that,
in view of all the circumstances, to which reference was
nude in the letter, and in view of the agent's recommendation, the Board has granted the permit with the understandinr, however, that it shall be considered as of a
temporary character; that the agent is requested to keep
this matter in mind and advise the Board as soon as the
interlocking relationships between the three banks may,
in the agent's opinion, be terminated without adverse
effect upon the interests of the banks and the communities in which they are located; and that, in any event,
the agent is requested to review the permit not later
than December 1, 1934, and at that time to submit his
recommendat
ion as to whether or not it should be revoked.
4,1)P1ication of la-. F. B. Cooley, for permission
to serve at the
;8-rle time as a director of the Buffalo branch of the Federal ReBank of New York, Buffalo, New York, and as a director of
tlerve
le Lanufacturers and Traders Trust Company, Buffalo,
New York.
Approved, together with a letter to Mr. Case, Federal Reserve Agent at the Federal Reserve Bank of New
York, inclosing Mr. Cooley's permit and stating that it
aPpears that the provisions of section 32 of the Banking
Act of 1933 are applicable in connection with La-.
Cooley's service as (lirector of the Lanufacturers and
Traders Trust Company, and as president of the Cooley
Tr[tc]ing Company, Buffalo, hey/York, and that the delivery
of the Clayton Act permit should
not be made until it has
5:
1)een
determined that la-. Cooley's service with the Cooley
rIl-dinC Company and the bank involved does not come within the
provisions of section 32, or that his service with
.1ch institutio
ns has been brought into conformity with
The requirements
of that section.




The Secretary was requested to address a letter to
Case, Federal Reserve Agent at the Federal Reserve

2786
9/14/311.

-11Bank of New York, stating that the board has given consideration to the application of Mr. Thomas C. Boswell,
for permission to serve at the sane -Lime as a director
of the lanufactvrers 'Bank of eohoes, Cohoes, Mew York,
and as a director of The Manufacturers National Bank of
Troy, Troy, New York, and that, upon the basis of the
informatien before it, feels that the issuance of the
Permit applied for would be incompatible with the public
interest, and requesting the agent to communicate to the
applicant the Board's position in the matter and to advise the hoard promptly as to whether the applicant desires to submit any additional data, and, if not, as to
what steps he proposes to take in order to comply with
the provisions of the Clayton Act.

APPlication of Ix. E. Blunn Covert,
for permission to serve at
the same time as a director and officer of The Nationa
l Bank of
ljatervliet,
viatervliet, New York, and as a director of the Troy
Prudenti
al Association, Inc., Troy, New York.
Approved, together with a letter to Ir. Case, Federal Reserve Agent at the Federal Reserve Bank of New
York, inclesing Lr. Covert's permit; suggesting that the
agent advise the applicant of the Board's views as expressed in the letter with regard to attendaace at directors' meetings; and requesting that, when the agent
submits his recommendation as a result of his annual review of the permit, he report fully as to ir. Covert's
attendance at directors' meetings durino, 1934.
The Secretary was requested to address a letter to
Ir. Austin, Federal Reserve Agent at the
Federal Reserve
Bank of Philadelphia, stating that the hoard has given
consideration to the application of Lr. LeRoy A. Goodwin,
for permission to serve at the same time
as a director
of the First Camden National Bank and Trust Company
,
Camden, New Jersey, and as a director and officer of
the Gloucester City Trust Company
, Gloucester City, Levi
O'ersoy, and that, upon the basis
of the information
before it, feels that the issuance of the permit applied
lor would be incompatible with
the public interest, and
r,oquesting the agent to comunicate to the applicant the
board's position in the matter, and to advise the Board
Promptly as to whether the applicant desires to submit
anY additional data, and, if not, as
to what steps he
Proposes to take in order to comply with the provisions
of the Clayton Act.
APPlication of Ls. T. L. Montgomery, for
permission to serve at




2787
9/14/34

-12-

the same
time as a director and officer of the Ohio State Bank,
Frazeysburg,
Ohio, and as a director and officer of the Coshocton
hational hank, Coshocton, Ohio.
Approved.
APplication of la-. R. Q.
Baker, for permission to serve at the
sanie time as a director
and officer of the Ohio State Bank.
1. 1TrazeYsburg, Ohio., and as a director and officer of
the Coshocton
tat16nal Bank, Coshocton, Ohio.
Approved.
.IPPlications of Lr.
Charles R. Hook, for permission to serve at
!
the same time as a director of The First and Lerchants National
bank.of
Laddletown, laddletoL, Ohio, and as a director of Me
AmerIcan
Trust and Savings Bank, laddlGtovm, Ohio;
f
I s Li. W. Renick, for permission to
serve at the same time as a
ulrector and officer of ine 2irst and Lerchants
National hank
Liddlotown, Ohio, and as a director and officer
c)-L The
American Trust and Savings Dank, Middletown, Ohio; and
1"r• --L.'
4. WalburP.;, or permission to serve at the same time as
diractor of The First and 1,erchants National
Bank of :addle2 iddletown,
Ohio, and as a director and officer of The
American Trust and
Savings Dank, Middletown, Ohio.
Approved, together with a letter to Lr.
Williams, Federal Reserve Agent at the Pederal
Reserve Bank of Cleveland, reading as follows:
ttri
4et
ihere are inclosed for your files copies of the
Clayton
L Permits
issued by the Board to la-. Y. W. Renick, Middletown,
and to nine others, to serve at
the same time as directors
aid/2r officers of
The First and 2,_erchants National Bank of idddle'°1111 and of the American
firust and Savings Bank, both of Lid-Leto, Ohio.
ilia
in considering hr. Renick's application it was noted that
bee Personal loans
in The First and -erchants National Bank had
1,3!! c
riticized in the report of examination of December 19,
the ' as havinF, been
steady and continuous over a long period,
collateral beinr distinctly substandard. The report of ex23,11tion of The First and
Lerehants National Bank as of April
raibt'931, which was
not available at the time your office subElpt)
)
.
thi's aPPlication, showed that during the examination the
euti
'
°'Int'a loan of ,;11,700 was
reduced ;7,200 through the exeThe
°r a first mortgage loan by the applicant's daughter.
'4E11
-lee of ii4,500 is
now considered by the examiner as safe.




2788
9/lv

-13-

"The apparent abuse of the bank's credit facilities by the
applicant appears to have been the basis for your recommendation
that the permit be refused. It was noted that the applicant has
materially improved the status of his debts to the bank; that
the applicant
has been a director of both banks for many years,
beiN; at present chairmen of the board of both hanks; that his
services were said to have resulted in no restriction of credit;
that he has
thatb
een regular in his attendance at board meetinc;s; and
your comments in answer to questions 9, 16 and 19 Form 94h,
indicate that the applicant is a banker of many years' experience
and should add strength to the management of the two banks.
"The Board has noted the unsatisfactory condition of the
State member bank, that the management of both banks needs
strengthening
, the apparent laxity in effecting colloction of
Collateral loans, the undue concentration of loans on stocks and
°Ilds, articularly loans on stocks of the Sorg Paper Company in
Whjh
certain directors are interested, but in all the circum%ances, the Board feels that it would be preferable to grunt
e permits
to Lir. Renick and the nine others in order to avoid
arlY unnecessary misunderstanding
by the community which might
Prove
detrimental to the best interests of both banks.
"The Board suggests, hover, that you endeavor, in cooporaon with the
chief national bank examiner of your district and
L'2.(3 State
banking authorities, to bring about a strengthening
"
r
e' the rianagement of both banks, to expedite the Program for the
di
?abilitation of the State bank and the correction of the cont
Which have given rise to the examiner's criticisms, parlarwith
with respect to the credit policies that have resulted
j;
c1
in the collection of loans and the undue concentration
(14 ,_ (TTs secured by stocks of the Sorg Paper Company in which
ors and officers are interested.
Board also desires that when you submit your recomMendatio
you
113 as a result of your annual review of these permits,
report
fully as to the progress made in bringing about an
°vement in the management, the credit policies and the condition of each of those banks."
The S0V®j other applications referred to in the
Elbove letter, on which no question had been raised as
to whether they
should be granted, and all of which
were approved, were as follows:
11*.
L. c
4 ai
•

Anderson, for permission to servo at the same time as
!
l eetor and
'
officer of The 2
1 irst and Lerchants National Bank
or
ddlet0w1, Liddletown, Ohio, and as a director and officer
"0 American
Trust and Savings Bank, laddletown, Ohio.
Llr. Geo
a dire rg0 Brow, for permission to serve at the same time as
ctor of The
First; and Eerchants National Bank of Yiddletawn,




2789
9/14/34

-14-

Liddlotevm, Ohio, and as a director of The American Trust and
Savings Bank, Liddletown, Ohio.
1:x. Carleton Eldridge, for permission to serve at the some time
as a director of The First and Lierchants hational Bank of idddletown, Liddletown, Ohio, and as a director and officer of The
American Trust and Savings Bank, laddletown, Ohio.
T. Gardner, for permission to serve at the same time as
!director of The First and .lerchants National Bank of :,iddleLovin, Middletown, Ohio, and as a director of The American Trust
and Savings Bank, Eiddletown, Ohio.
B. iliederlander, for permission to serve at the same time
a director of The First and kerchants National Bank of Liddleval. Middletoan, Ohio, and as a director and officer of The
'nlorican Trust and Savings Bank, idddletown, Ohio.
•

a di%coriti.Shively, for Permission to serve at the same time as
and officer of The First and 1,erchants National Bank
of l
addletown, Liddletown, Ohio, and as a director of The
erican Trust and Savinr7s Bank, Liddletown, Ohio.
2;Ir

•a.

Verity,
director of The
.L°4n, Liddletown,
'
°11c1 Savings Bank,

for permission to serve at the same time as
First and lierchants i;ational Bank of LiddloOhio, and as a director of The American Trust
Eiddletown, Ohio.

The following letter to :Jr. lioxton,
Federal Reserve Agent at the Federal
Reserve Bank of Richmond., was approved:
4.11e Board has given consideration to the application of
k;hester P. Hookley, 200 Scott Street, Baltimore, Liaryland,
Permission
under the provisions of the Clayton Act to serve
at
Laithe same tjme
as director of the Baltimore National Bank,
Liaryland, and as director of the Equitable Trust Conbeforezaltimere, raryland, and, upon the basis of the information
wo
feels that the issuance of the permit applied for
atalzi%13
(1°ti
on:
=
(
0
1 with the public interest. You are re.:
licant of the board's position in the
withefs unless there
are pertinent facts which were not submitted
farati e application and which you feel should be given
that, J-11 communicatinr; with the applicant, please advise him

er4Z. in accordance
with Section V (g) of Regulation L, considapp 1c)n Trill be given
to any additional facts or arguments not
fee?, arilk7 in his application and accompanying forms which he
riee. should be
brouht to the Board's attention. In this conPlease advise the Board promptly as to whether Llr.




9/1V34

liockloy desires to submit any additional data and, if not, as
to what steps
he proposes to take in order to comply with the
Provisions of the Clayton Act.
. "If you deem it advisable or necessary, you are authorized
to inform
the applicant that the Board's action upon his applicalon was based upon the Pact that the institutions involved are
ln substantial competition. It appears that it is the policy
?fjthe Congress, as declared in the Clayton Act, to terminate
?14er1ocking relationshios between banking institutions of ceraln classes which are in substantial competition, apparently
uecause the Congress felt that such relationships might tend to
?sult in a substantial lessening of competition and a restriclon of credit. Therefore, the Board does not feel that it may
,ar.it this
application, since no other facts have been brought
-() Its attention which would make it compatible with the public
interest to issue the permit. In this connection, reference is
l,
Lo item (c) on page 3 of the Board's letter of I...ay 1, 1933
- de7426
4-).
, "Also, it is noted that in reply to question numbered 12 on
. Form 94, the applicant states that he is serving as
director of The
Industrial
and
Mortgage
Finance
Corporation,
Balti//lore
..aryland, the business of which is described as 'mortgages
and
collateral loans under R. F. C. Plan'. Furthermore, in reply
0 question
numbered 13 on the same form the applicant lists the
y as an organization which makes
loans secured by stock
or'bond
f
Collateral. While the Board does not have detailed in:
r1114ticn regarding the exact nature of the business carried on
af The
Industrial Finance and Mortgage Corporation, it does not
:
1 )ear that the
company is a banking institution within the
'
c alliar:; of the Clayton Act. In the circumstances, if the latter
8°
0111Pany is not such a bankin institution, the applicant may not
,.,
1s e as director of a national bank and as director of The In'
i''
111 trial
lanance and idortgage Corporation since the relationship
tolllcvcd
i
comes within the prohibitions of Section 3A of the Clayand the Board is not authorized to issue a permit for the
continua
nee of such relationship.
IherePore it is sur
,-ested that you ascertain whether "lhe
.0
Illdustr,a1
'
Finance and Lortgage Corporation is a banking insti.iA
t -°1-1 wiLhin the meaning of tho Clayton /:Let. If you find that
Rocilc7
. such an institution, you are requested to advise
claw eY of the requirements of Section CA of the Clayton Act
covnt° 11°.tify him that he may file an application for a permit
100.11i ng his service to that company and to either of the member
tin
'
81 covered in his
application, which he may elect to con0.11dIT serving. however, if you find that The
Industrial Finance
recill;c7tZa';e Corporation is not a banking institution, you are
ce1
:1,-8''ed to notify Li.
hockley that he may not continue to
Ea.i ? as a director of that company and as a director of the
tim°re Uational hank since the
relationship is prohibited

f

I

-15--

!°Pan




2791
9/14/34

-16-

"by Section 8A.
.
"Of course, if upon a consideration of the facts involved,
with the advice
of your counsel, you are unable to determine
mhether The Industrial Finance and Mortgage Corporation is a
1,D,anking institution within the mooning of the Clayton Act, the
JJoard mill be pleas
ed to rule on the question, upon receipt of
full informatio
n.
It will be appreciated if you will advise the Board of
Your action
in this matter."
APplication of
Er. L. C. Hagler, for permission to serve at the
"-Me time as a director of The American Natio
nal Bank of Pensa?ola
rensacola, Florida, and as a director of The First Bank &
Irust Company
of Pensacola, Pensacola, Florida.
Approved.
I
tTplication
of hr. W, C. Anderson, for permission to serve at
Bfle same time as a director and officer of The First; National
,
ank in Harriman
man, Harriman, Tennessee, and as a director of The
zirat Natio
nal
of Oneida, Oneida, Tennessee.
Approved, together with a letter to Mr. Newton,
Federal Reserve Agent at the Federal Reserve Bank of
Atlanta, inclosing the Clayton Act permit for transmittal to Mr. Anderson, and requesting that the
agent advise the applicant of the Board
's views as
epressed in the letter with regard to attendance at
directors' meetiw,s, and that, when the agent submits
hls recommendation as a result of his annua revie
l
w
of the permit,
he report fully as to ',Jr. Anderson's
attendance at directors' meetings during 1934.
APP
tlications of Mr. T. G. Turner, for permission to serve at
Be.:2ame ttme as a direc
tor and officer of The City National
(14;r- or Council
Bluffs, Council Bluffs, Iowa, and as a director
officer of the
Farmers and Merchants State Bank, Neola,
CrIlt/ and
R

obert -

. Turner, for permission to serve at the same time
director and officer of The City Eatio
nal Bank of Council
„ Fs, Council
a
Bluffs, Iowa, and as a director of the Farmers
1-erchants State Bank, Neola,
Iowa.

EillEft

Approved, together with a letter to Mr. Stevens,
l'ederal Reserve Agent
at the Federal Reserve Bank of
Chicago, reading as follo
ws:
Act)0 'here are inclosed the originals and copies of the Clayt
on
--rrnits 1s2ued by the Board to Messrs. L. G. Turner and




2792
9/14/34

-17-

"Robert W. Turner, Council Bluffs, Iowa, to serve, at the same
time as officers and directors of The City National Bank of
Council Bluffs, Council Bluffs, Iowa, and the Farmers and lerchants State Bank, Neola, Iowa, for transmittal by you to the
aPPlicants and to the two banks, together with copies for your
files.
"In considering these applications it was noted that the
State bank was reorganized in December, 1933, under a plan requiring a waiver of 40 of deposits; that the examination report
of the national bank as of May 8, 1934 showed that a loan of
h$000 to Mr. T. G. Turner had been previously charged off and
his remaining obligation of $3,000 was classified as slow;
that loans of 0.1,277.35 to Li-. Robert V. Turner had been previously charged off; that loans had been made to relatives of
these applicants and to other directors and/or their interests
Yhich mere in excess of the legal limits and that a substantial
Portion of these also were classified as slow; and that the
baak had indulged in the practice of advancing funds to pay
taxes and running expenses in connection with the trust account
of the sister of Mr. T. G. Turner. The Board feels strongly
that
transactions with directors and officers and their rola:
LI-7es should be at all times free from criticism, and requests
that in
transmitting the permits you advise the applicants acc
ordingly.
It appears that the applicants have served the banks for
!considerable
length of time and have contributed in the past
remove objectionable assets from the banks. It also appears
lat members of the Turner family own 40% of the stock of the
Ilsaticnal bank and 34% of the stock of the State bank and, althey are said to be in somewhat strained financial cirellm4t8.n0e5, apparently they enjoy the utmost respect of the
,:dlinnunities. It further appears that there are only six stockriders of the Farmers and Merchants Bank, and that the present
4170 41rectors are the only stockholders who qualify as such.
,e
"In all the circumstances the Board hesitated to grant the
,torillits, but after consideration decided to grant them in order
ato,aycid any unnecessary misunderstanding which
night prove
au'rlThental to the best interests of both institutions. It
Di ests, however, that you endeavor in cooperation with the
nr8"'iet Chief National Bank Examiner, to bring about an imovement in matters
criticized by the examiner. The Board
sj! sUggests that when you submit your recommendation as a reYour annual review of these permits, you report fully
8S,
411.,-to the Current
status of the borrowings of the applicants
`' the other officers and directors of the national bank."
Applicat,
of Li-. J. B. Crawford, for permission to serve at
t
41%se-me time as a director and officer of The
Commercial NationIth.oank of
Ithaca, Ithaca, Michigan, and as a director of the
aea tavings Lank, Ithaca, Michigan;

4




2793
9/14134.

-18-

Lr. Lynn
Liner, for permission to serve at the same time as
a director and officer of The Uommerci/-) Laional Bank of Ithaca,
Ithaca, Michigan, and as a director and officer of the Ithaca
Qw;rin,,s Lank, Ithaca, Michigan;
7-

J. Lee Potts, for pernissior to
director of The Commercial 1:ational
IlichiCan, as a director and officer
Ithaca, Michigan, end as a director
Pompeii, Michigan;

serve at the same time as a
Berk of Ithaca, Ithaca,
of the Ithaca Savings Lank,
of the Pompeii State Bank.,

vohn C. Kicks, for permission to serve at the same time as a
director and officer of The St. Jchns rational Bank, St. Johns,
1,1johigan, as a director and officer of the Clinton County Savings
'
l ank, St. Johns, Michigan, and as a director and officer of The
Commercial lAtional Lank
of Ithaca, Ithaca, LachiGan;
Lr. Robert G. Allison, for permission to serve at the same time
as a director of The St. Johns 'iational
Lank, Ct. Johns, Lichiin, and as a director of the Clinton County Savings Lank, St.
ohns, Llich.{;an;

y

,
111 * C1' DeWitt, for nermiscion to serve at the same time as a
irector and officer of The St. Johns 1.ational Lank, St. Johns,
ohigan, and as a director erd officer of the Clinton County
'
Evings Lank, St. Johns, Michigan;
Mr.

p

CI Dexter, for permission to serve at the sere time as a
eotor and officer of The St. Johns Kational Lank, St. Johns,
end as a director and officer of the Clinton County
u"ings Bank, St. Johns, Michigan;
and

Colerren C. Vaughan, for permission to serve at the same time
directcr and officer of The St. Johns '1.ational Bank, St.
c°
011n, IY:ichigan, and as a director and officer of the Clinton
411t1 Savings Bank, St. Johns, Michigan.

:16

Approved, with the understanding that
an appropriate letter will be addressed to
the Federal Reserve Aent at Chicago with
regard to the matters criticized in connection with the applications.

APpl.

"
; n of L:r. George S. hove, for permission to serve at
,..cg6"
the 1
ti L'alllo time as a director and officer of he Inter-State
r.a(
411111 Lank of Kansas
City, Kansas City, Missouri, as a director
leer of the Bank
of Horton, Horton, Kansas, and as a director
the 1:orris Plan Company of Kansas
City, Kansas City,
-14;souri.




2794
9/14/34
Approved, together vith a letter to Lr.
L4Clure, Federal Reserve Agent at the Federal Reserve Bank of Kansas City, reading as follows:
"There are inclosed the Clayton Act permit and copies thereof issued by the Board to iii'. George S. Hovey,
Kansas City, Las"Uri covering his service as director and officer of The
Inter-State National Bank
of Kansas City, Kansas City, Lissouri,
director and officer of Bank of Horton, Horton, Kansas, and director of Morris Plan Company of Kansas City, Kansas City, Idssouri, for transmittal by you to Er. Hovey and the three banks,
together with a copy for your files. There are inclosed for
!imilar disposition the Clayton Act permits and copies thereof
Issued to Messrs. David T. Beals, John J. Noon°, and W. E. Lurks,
all of whom are officers and/or directors of The Inter-State
liational
Bank of Kansas City.
"It has been noted from information furnished by your office and also contained in the report of examination of The
Inter-State
National Bank of Kansas City as at January 30, 1934,
that the management of President Hovey had been criticized,
Particularly for his use of the bank's affiliates for the removal
of criticized assets to hicle the
bank's true condition. It has
l een noted also that the national bank examiner stated that
rresident
Hovey is hopelessly involved.
The Kansas Banking Department reported that the condition
tho Dank of Horton was unsatisfactory but that it was hopeful
hovey might take the lead in rehabilitating that institution.
:obwever, in view of Yr. Hovey's involved personal affairs as
?Ported by the examiner, and the history of the First National
Eighland, Kansas, which suspended April 25, 1932, while
hovey was director and inactive vice president, Mr. Hovey
t!Y experience some difficulty in rendering financial assistance
.0 the Horton bank, to the extent hoped for by the Kansas Banklng
Department.
a
"Although much of the information available regarding the
lioant is unfavorable, the Inter-State National Bank of
dj!" city, which he manages, appears to be in fairly good conAj-cn insofar as sufficient capital structure is concerned.
;
4 f,h1le the facts would seem to support your opinion that
,
the
vPlicant's continued service should be beneficial to the cornits, the Board suggests that you endeavor, in cooperation
with
cor_
e appropriate supervisory authorities, to bring about a
azoi'ection of the conditions which have
given rise to the excriZ?rl e oriticisns. Although the national bank examiner's
ao_loisvs were directed mainly at President Hovey, it does not
inprobable that Messrs. Beals, Noone and Burks, as
officers
nsyor directors of
The Inter-State National Bank of Kansas City,
;
:
41.1 t 14:o partially
responsible for the criticized practices in

je

"Therefore, when you submit
your recommendations, as a result




2795

9/14/34

-20-

"of your annual review of those permits, the Board requests
that you report fully as to the progress made in the correction
of the management and condition of The Inter-State National Bank
of Kansas City as well as that of the Bank of Horton."
The three other applications referred to in the
above letter, advice of approval of -which was contained therein,yere as follows:
.David T. Beals, for permission to serve at the same time as
!
.director and officer of The Inter-State National Bank of Kansas
ultY, Kansas City, Missouri, and as a director and officer of
The First National Bank of Carrizozo, Carrizozo, New Mexico.
lir. John J. Noone, for permission to serve at the same time as
a director and officer of The Inter-State National Bank of Kansas
CitY, Kansas City, Missouri, and as a director of The Cloud
County Bank, Concordia,Kansas.
14r.

-(

Burks, for permission to serve at the same time as a
•
liirector
and officer of the Security State Bank, Wellington,
c'asas, as a director of The Hone National Bank of Arkansas
,T-LtY, Arkansas City, Kansas, and as a director of The Inter-State
'Iltional Bank of Kansas City, Kansas City, Missouri.

I

t

pPlication of Er. Walter E. Buck, for permission to serve at
Ile same time as a director of The Anglo California National
Bank of
San Francisco, San Francisco, California, and as a director of
The San Frercisco Bank, San Francisco, California.
Approved.

tr

ication of Mr. J. Harold Dollar, for permission to serve at
En!,s!rae tim as a director and officer of the First National
111 San Rafael, San Rafael, California, as a director and
•
l'41.1cer
of the Bank of San Rafael, San Rafael, California, and
"a director
of The San Francisco Bank, San Francisco, California.
Approved.
The minutes of the meetings of the Federal Reserve Board held
041JUne 23,
26, 27, 28, 29, and 30, and July 2, 12, 13, and 17, 1034,
Were
approvee.

The minutes
the t,
"dere' reserve




of the meetings of the Federal Reserve Board with
agents and the governors of tho Federal reserve

2796
9/14/34

-21-

hold on June 25, 26, and 27, 1934, were approved.
The minutes of the meetings of the Executive Committee of
Federal Reserve Board held on July 3, 6, 9, 19, 20, 21, 24, 26,
441 31, and August 1, 2, 3, and 6, 1934, were approved and the actions
recorded therein were ratified unanimously.
The Board then considered and acted upon the following matters:
Letter dated September 13, 1934, from Er. Sproul, Secretory
01' tile Federal Reserve Bank of New York, and telegrams dated September
13,
1934, from Er. Hoxton, Chairman of the Federal Reserve. Bonk of
R:11111°11d, and September 14, 1934, from Jr. Clark, Secretary of the
Feder
41 Reserve Bank of Atlanta, all advising that, at meetings of
the b
oards of directors on the dates stated, no changes were made in
the b
alIks t existing schedules of rates of discount and purchase.
Without objection, noted with approval.
Letter dated September 13, 1934, approved by four members of

tIle Board,
to Er. L. F. Sailer, Deputy Governor of the Federal Reserve

Ilwic or

New York, reading as follows:

tors In accordance with the action taken by your board of direc„
I
,
34, advice of which is contained in your letter of September 6,
the Board approves the temporary employment by your bank,
with
8.4
salary at the rate of $350 per month, of Er. E. F. Abell as
adanuiPment engineer in connection with the construction of the
J-tion to and the alteration
of your bsrk building."
Approved.
the t

Letter dated September 13, 1934, approved by four members of

°11rd
'to Er. Willi, Federal Reserve Agent at the Federal Reserire
14a4k of
Cleveland, reading as follows:
"Referring to your letter of September 10, the Board approves




2797
9/14/34
-22Payment of salary at the rate of 44,500 per annum to Mr. ',alien
C. Smith who has been employed in connection with the administration of the Securities Act, subject to the directions and decisions of the Federal Reserve Agent. It will be appreciated if
You will advise the Board the date Li.. Smith's appointment becomes effective and furnish it with a personnel classification
Plan Page (Form A) covering his position."
Approved.
Letter dated September 13, 1934, approved by four members of
the B
°ard, to Mr. Wood, Federal Reserve Agent at the Federal Reserve

BEL WI,
Of

St. Louis, reading as follows:

"The Federal Reserve Board has received your letter of September 6, 1934, and, in accordance with the recommendation conained therein, approves the appointment, effective September
ns 1934, of Er. Wm. E. Petersen as chief examiner in Federal
tteserve Agent's department of your bank at salary rate of
,,000 per annum.
.
"Please advise if Ur. Petersen is to continue in the capaeltY of Acting Assistant Federal Reserve Agent."

I

Approved.
Letter dated September 13, 1934, approved by four members of
the E
°11rd, to 14r. Peyton, Federal Reserve Agent at the Federal Reserve
Bezac
u'r Minneapolis,
reading as follows:
"Receipt is acknowledged of your letter of September 6, 1934,
.th regard
to the circumstances of the employment of Er. L. D.
„01.4k in the industrial loan department of your bank and his sere° V manager and director of the Superior Brick Corporation.
On the basis of the information contained in your letter,
.076a:oularly with regard to the uncertainty as to the future of
tr industrial loan department of your bank and Ir. Reak's posihrn therein, the Board
interposes no objection to his retaining
official connection with the Superior Brick Corporation
fi le in the employ of your bank, or to his maintaining his ofPublic accountant, with the understanding that you will
•.311
:
at
touch with the matter and take such steps as may be fecesEletY
the event the outside official connection or outside
171-ties
of Mr. Reak at any time affect adversely his service
to
lyttrr bank or involve any financial or other relations that
Prove embarrassing to the Federal Reserve Bank of Einnele, and that, at the end of six months, if no action is taken

T

41

!




2798
9/1i1/3/1
uY you in the meantime, you will submit a report to the Board
as to the status of the matter."
Approved.
Letter to IS. Williams, Federal Reserve Agent at the Federal
Reserve Bank

f Cleveland, reading as follows:

"This refers to your letter of August 28, 1934, transmita certified copy of a resolution adopted on August 21, 1934,
Dy the Board of Directors of 'The Commercial Savings Dank ComPa-nY T, Galion, Ohio, authorizing the withdrawal of the bank from
raembership
in the Federal Reserve System, together math a letter
dated August 21, 1934, fromiir.. D. Beall, cashier of the
bank, settini; forth the reasons for the action.
It appears that the notice of withdrawal was received in
Your office on Awust 27, 1934. At the expiration of six months
from that date, therefore, upon the surrender of the Federal rebank stock held by The Commercial Savings hank Company,
the
Federal Reserve Bank of Cleveland is authorized to make appropriate refund thereon.
11
Although natice of withdrawal has been filed, so long as
!
1() bank remains a member of the System it, of course, enjoys
j
t e rights and is subject to the legal provisions and regulabi°118 aPplicable to member banks and to the conditions of menup accepted at
the time of admission to membership. In
;'fIls connection
it has been noted that you have been advised
that the
violations of section 23A of the Federal Reserve Act
:
s reported by your examiner in the report of examination made
°f June 21, 1954, will be corrected. It has been noted,
SO
that since December 26, 1C33, date of the examination made
e°nnection mith the application for membership, the bank had
7i7c_le substantial investments
in common stocks. Inasmuch as
01. Qe purchases were not reported as a violation of section 9
s,,..°f
of membership numbered 7, it is assumed that no
1:11 Purchases
mere made since hay 31, 1934, date of admission
werrApership. It
is assumed, also, that no such purchases
ree .11.4tde by the bank in anticipation of membership followin
Pt by the bank of the Board's letter of Lay 1, 1934, setgel
4elr,forth
the conditicns of membership. Definite advice, howthis
respect will be appreciated.
. Your examiner has expressed the opinion that the dominatto
fl•ucnce of Mr. Beall in the management is not conducive
filZ1:.?.bost interests of the bunk by reason of his outside afif
ons and m.eculative tendencies. It will be appreciated
ele Loard what action, if any, is desirable
unt::
in
Amonr:, the matters criticized by the examiner SNUB the

4




2799
-2411
unauthorized borrowing by the bank and pledeine as security
for public deposits of bonds amounting tc 0,100 left with the
bank for safekeeping by the Guaranty Savings and Loan Company,
an affiliate. Such practices, of course, cannot be tolerated,
and it is assumed that the bank complied with the instructions
Of your examiner to restore the bonds immediately to safekeep111C and gave assurances that such practices would not be resorted to in the future."
Approved.
Letter to Lr. Williams, Federal Reserve Agent at the Federal
Recerlfe Bank of Cleveland, reading as follows:
"In your letter dated August 28, 1934, regardingthe apPlication of The Commercial Savings Lank Company, Galion, Ohio,
for
withdrawal from the System, you raised the general question
°f assessment of charges for examinations. As you may have
.1t een advised, the Board, after considering the report of the
era]. Reserve Agents' Convittee on Uniform Examination Charges
auopted at the conference in June, 1934, decided to defer
further
action on the report in order that more study might be
-1Ten to the subject of examination charges.
Questions as to
-he costs of exandnations and as to the extent of participation
2Id procedure to
be followed in joint examinations with the
'cute
authorities were included at the Board's request in the
:
r Crara of the conference of Assistant Federal Reserve Agents
q Trust
Examiners called for September 10, 1934.
"The Board has given careful consideration to your comments
1Narding the assessment of charges for examinations and before
,
Iflal action is taken on the matter will be glad to discuss the
'
eneral question with you. It is suggested, if you have not
:
I eadY done so, that you communicate your views in this matter
1.1r. Stevens,
Chairman of the Conference of Chairman and FedReserve Agents, and to 1:r. Wood, Chairman of the Committee
uniform Extunination Charges.
"In
Of eyar • his letter of August 11, 1934, transmitting the report
041.0, .anation of
The Commercial Savings Bank Company, Galion,
the 'as Of June 21, 1934, lir. Fletcher stated that costs of
the 17xamination amounting to `,;131.63 had been assessed against
1,
- oard k in accordance with instructions from the Board. The
letter of July 26, 1930, X-6665,
included the following
ructions with regard to charges for examinations:
State examination is unsatisfactory, and an
"
IZation will not provide sufficient information upon
theaagents may act intelligently, a complete examine.ti
1
11°11 should be made for which the member bank should
be
arced. It is realized,
however, that in some instances

V

Z

4




2-800
9/14/34

-25tit unusual

circumstances may exist which weuld warrant the
hoard's exorcising the discretion vested in it under the
recent amendment and waiving charges for seecific examinations. Any case which, in the opinion of the Federal reserve agent, warrants such special consideration should be
oubmiited to the Board in advance, with a conplete statement of the reasons why it is considered desirable to have
the exaraination charges waived by the Board. Examinations
of State banks incident to their admission to membership
in the System may be made without cht,rgo.'
"Under Chose instructions provision is made for the waiving
o/ charges
In certain cases. If you feel, therefore, that in
ny particular case the charges for an examination should be
,7:17ed, it is suggested that you submit the matter to the Board
aceordance with the procedure outlined above."

Z

4provod.
Letter to Lir. hoxton, Federal eeserve Agent at the Federal
serv- ,
zaek of Richmond, reedin-; as follows:
"here is inclosed herewith copy ofa letter addreesed to
th° board's General Counsel by Ir. A. D. Christian with regard
0 -whether
the American Bank and (irust Company, Richmond, Virobtaj
the approval of the Federal Reserve Board to
-equire stock of the West End Bank, Richmond, Virginia.
"You will recall that when the American Bank and Trust ComP
tIalnYI:vms admitted to membership in the Federal Reserve System,
° zoard prescribed the followin condition, among others:
7
tx°°11t after applying for and receiving the permission
tho Federal Reserve Board, you shall not acquire an
;;
1
"
1:
1 :e
-L in any other bank or trust company, through the
of stock in such other bank or trust company.'
yr . 'After its
admission to membership, the American Bank and
eb.14t "mloany acquired stock of the West End Bank without first
coe lling
the approval of the Federal Reserve Board and, after
1'0 correenendence regarding this natter, the American
Ban
nd Trust, Company
absorbed the West End Bank.
You will nuLe from the inclosed copy of the letter of Ir.
Christi
Aire
a.n that he has been unable to locate in the files of the
te 1./ ean liank and Trust Company any correspondence with regard
ritoc:tether or not the
Board's approval of the purchase of the
if I of the ;iest End
Bank was obtained. It will be appreciated
eallYZI1 will
discuss this matter with the Receiver for the Amerir10 object.and Trust;
Company, or his attorney, and the Board has
eopie,
°n to your furnishing such :eeceiver or attorney with
effi
:
°f any correspondence regarding Idle matter between your
and the American Bank and Trust Company. It is suggested




2801
9/1v34
that, in the absence of further advice from the Board, you do
not furnish the Receiver or his attorney with copies of correspondence between your office and the Board regarding the natter. Mr. Christian is being advised that his inquiry,has been
referred to you."
Approved.
Letter dated September 13, 1954, approved by four members of
the Board, to the "Pacific National Bank of San Francisco", San Francisec, C
alifornia, reading as follows:
"The Federal Reserve Board has given consideration to your
111)Plementary fiduciary application and, in addition to the auority heretofore granted to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates,
"314Pacc, receiver, and committee of estates of lunatics, grants
You a
uthority to act, when not in contravention of State or
,c)cal law, in any other fiduciary capacity in which State banks,
c!ust
companies or other corporations which COMB into competition
wslth
national banks are permitted to act under the laws of the
. ate cf California, the exercise of all such rights to be sub._(!” to the
provisions of the Federal Reserve Act and the reguections of the Federal Reserve Board.
om
tionalis
, letter will be your authority to exercise the addi"miciary power set forth above. A. formal certificate
"
e .ering such authorization will be forwarded to you in due
coursesit
Approved.
Letter dated September 13, 1934, approved by four
members of
the 1:,1
4,oard, to Li..
O'Connor, Comptroller of the Currency, reading as
follows:

HT
'
11 accordance with your recommendation, the Federal Re1,17
ee Board
approves a reduction in the common capital stock of
to slUnnien National
Bank of Troy', Troy, New York, from 3300,000
Capj
Pursuant to a plan which provides that the bank's
al
be increased by the sale of ,600,000 of preferred
Stock toshall
8.4a
th
e Reconstruction Finance Corporation and/or others,
bealk,h4t the released capital, together with a portion of the
to el! surPlus, undivided profits and reserves, shall be used
zra;4411inate all estimated losses and depreciation in lower
60CUritie
28, 1934.
s, all as set forth in your memorsnrium of August




2802
9/11134

-27-

"In considering the plan under which the reduction in comLien capiLal is to be effected, it NUS noted that your examiner
severely criticized the management as well as the very unsatisfactory condition of the bank. It is assumed, however, that
You have these conditions in mind and that whenever it is feasible to do so you will require such further corrections RS may
be practicable."
Approved.
Lemorandum dated September 6, 1934, from Jr. Smead, Chief of
the Division of
lank Operations, submitting a copy of Form 56, Aplication for Additional Stock, and recommending that the proposed
cies indicated thereon be approved by the Board.

The memorandum

stated that the
changes are designed primarily to provide printed captio4
s for capital
notes or debentures sold to the Reconstruction
Fine'llee Corporation and for
preferred stock, and that the other
tIfl et
' the form are for the purpose of simplifying the preparation
the
aPplieation and of facilitating its checking at the Fed"orve banhs and at the Board's offices.
WEI" aPProved

The reconnendation

by four members of the Board on September 13, 1934.
Approved.

Letter
dated September 13, 1034, approved by four members of
the

b

Joard

1;.()

Robert Emerson 2annich,

ew York, hew York, reading

1-1

ellowz:
5;1 "Receipt is acknowledged of your letter of July 23, 1934,
„,
171lich you request to
Of
be advised whether sections 5(c) and 16
4
la Act of 19,73 Prohibit a State member bank of the
eTBanki-S
Reserve System from 'Lein, a member of a stock exchange.
On the basis of facts involved in the case of two State
meraber
/10, "mks, the Board has taken the position that there was
a,"
4 80n to require such State member banks to discontinue their
h:eiate memberships in a stock exchange. however, the Board
Ilet attempted to lay down any general rule with regard to




2803
9114/34

-28-

$

"membership in stock exchanges by State institutions -which are
members of the Federal Reserve System and the Board's ruling in
enY Particular case would depend upon all of the facts involved
in that case. Accordingly, in connection
with any inquiry of
the kind described
above addressed to you, it will be appreciated if you will suggest to your correspondent that it discuss
the matter with the
Federal Reserve Agent of the Federal reserve
bank of the district in Which it is
located in the light of all
the facts involved in the particular case."
Approved.
Letter to Er. Hoxton, Federal Reserve Agent at the Federal

Ileaerve
Bank of Richmond, reading as
follows:
"Referring to your letter of September 4, insofar as such
clat'a come to your attention through your
activities in the in!lustrial loan field, the Board mould be glad to
have you keep
an fully advised as
practicable with respect to industrial
.4)°., ne made by financing
institutions that would probably not
"
4170 been
made had the Federal Reserve banks no authority to
:
ake.such loans. The Board does not
expect you to make any
eel l inquiry of financing institutions with respect to the
. ?unt of industrial loans or commitments to make such loans
lihlch they may
have granted to their customers."

Z

Approved.
Letter dated September 13,
1934, approved by four members of
the Boaxa, to lir.
13a4k of
Uoly

Case, Federal Reserve Agent at the Federal Reserve
York, reading as follows:

Receipt is acknowledged of Er.
Dillistin's letter of
i4;elltit 28,
1934, with further reference to the application of
lish j'ienry 71f.
Ford, under the provisions of section 32 of the
4 - 4IC Act of 1933
:
'
for permission to serve at the sane time
ac
director of First National Bank,
Eorristown, New Jersey, and
4 Partner
of Ford, Heald et: Co., New York, New York.
Ford's letter of August 1, 1934, a copy of which vies
curt "ed, states
that, in acting as specialists on the New York
Lxehange, it is necessary for the firm to buy
and sell odd
eeti elad that, in
order to protect its position after such transOr ic
(Te have been
made, the firm sells or buys shares in lots
the ° or multiples
thereof in order to reduce its position in
kethst°ek ixt question to the smallest amount
possible by this
trt14"
5 ' It appears therefore
that, in connection with these
acti°118, the firm is neither
trading in the stock in




2804
9/14/34

-29-

11
question nor taking a position in it except to the extent made
necessary by the fact that it deals in odd lots and cannot comPlete the transactions by purchases and sales on the floor of
the exchange except to the nearest 100 share amount.
"(In the basis of these facts, it appears that the firm is
not purchasing and selling securities for
its awn account except to such extent as may be necessary in connection -with its
dealin_3
t, in odd lots, and it does not seem that such Purchases
°lid sales by a brokerage firm should be held to make the provisions of section 32 applicable to it.
"ijr. Ford's letter also states that the firm acts as
elearinc agents for other specialists and that if, as a result
°f these transactions, the position of another specialist happens to be
long, thus causing a debit balance in the clearing
tccount, 'Ford, Heald & Company make loans for them. If it so
'
1aPPens that there is a surplus of cash
in the firm at the time
an account has a debit, they mi7ht use that surplus to cover
the
debit.'
_
"If this statement is correctly understood, it means that,
,allthou7h Ford, Heald & Co. occasionally negotiates loans on betalf of other specialists in connection mith the clearing of
4nsactions for them, the firm also advances its own funds on
„e security of stocks. If this understanding is correct, the
f'cvisionc of section 8A of the Clayton Act would be applicable
the r elationships in question since the
provisions of that
0,.. 1-0n apply generally to all loans secured by stock or bond
l
uiateral,
regardless of the purpose for which they are made.
it is
.Lt
accordingly suggested that, after satisfying yourSelf
te the facts, you advise the applicant regarding the
j'Icability of section 8A of the Clayton Act to the relationon, in the light of the principles stated in the
eo
nci
gl=graph on page 245 of the Federal Reserve Bulletin
r
19 34.11

4

Approved.
Letter dated
September 13, 1934, approved by four members of
the toclra
'to Lir. Oscar Newton,
Federal Reserve Ageht at the Federal
4z;er ve
uank of
Atlanta, reading as follows:

p.

p

connection with the Clayton Act application of L.
''eminF covering his service as director of The Barnett
pla
;
-(
11,a1 Bank of
Jacksonville and as director of The ijorris
°111PallY of Jacksonville, both of Jacksonville, Florida,
the'
Of trestien mas raised as to the applicability of section 32
ii.e,
Ballking Act of 1933 to his service as trustee of the
l'arnett Trust; and you have forwarded to
the Board with




2805
9/3V34

-30-

Your letter of July 21, 1934, a copy of L:r. Fleming's letter
Of July 20, 1934, giving information regarding this matter.
"It appears that, in 1911, Bion i1. Barnett conveyed to
three trustees, of whom Lr. Fleming was and still is one, certain
shares of stock and certain promissory notes to be held by the
trustees, the income thereof to be collected and the net proceeds
t° be paid to Dion II. Barnett and, after his death, to his
Widow, if then living, and thereafter the trust fund to be
divided among his named children. The trustees have the Power
0f investment and re-investment and have exercised this power
-Lrom time to time. However, Lir. Fleming states that
the investments of the trust change but little.
"Section 32 forbids the service of an officer or director
of a member bank as 'an office
r, director, or manager of any
?corporation, partne
rship, or unincorporated association' engaged
in the business therei referr
n
ed to. On the basis of the infer!
i latlon submitted, it appears that the B. H. Barnett Trust is not
included within any one of these classifications.
"It is therefore unnecessary to consider the further queson whether the Do H. Barnett Trust is 'engaged primar
ily in
businesa or purchasing, selling, or negotiating securities'
1,Jithin the meaning of section 32, althou
gh it would seem that
trust is probably similar in its purposes and activities to
flO
corporation referred to in the Board's letter of December
(
:
4-, 1933 (X-7739),
and that it is not engaged actively in buying
selling securities.
inerefore, unless there are other facts which you believe
hould be called to the Board' attent
s
ion, it is requested that
0 11,acIvise Lx. F. P. Fleming that section 32 of the Banking ilct
/3 1933 is not applicable to his service as trustee of the
'
Barnett Trust and as director of a member bank."
Approved.
Letter to Lx. Stevens, Federal Reserve Agent
at the Federal
4eaer78
Leknk of Chicag
o, reading as follows:
1 ,111-eceipt is acknowledged of Li-. Young's letter
of September
83
fro
and inclosed copy of a letter dated September 7, 1934,
Blajarl
G. C. Williams, Executive Vice President of the State
to
and Trust Company, Evanston, Illinois, with further refere
nce
soct e aPplication of Augustus Knight under the provis
ions of
a (1.1°11 32 of the Banking Act of 1933 for
a permit to serve as
:
co rector of that bank and
as president of Bartlett, Knight
"Pa/1Y, Chicago, Illinois.
vea, "It le noted that the officers and directors of the bank
be ie
Knight's services very highly and feel that it would
111Pozsible under present conditions to replace him with anyWould be as useful to the bank. However, the Board agrees




2806
9/14/34

""'31""

'with Lr. Young's conclusion that irr. Williams' letter does not
contain anything which would lead it to change the conclusion
Previously reached in connection with this application.
"As you are of course aware, the nosition taken by the
Board in its letter to the applicant dated Lay 15, 1934, a copy
of which was forwarded to you, was the same as that taken with
respect to other applications in which similar circumstances
were present, and was adopted in order to give effect to the
Purposes which the Board believes Congress had in mind in enacting section 32. It appears that it was the general purpose of
Congress in enacting that section to terminate relationships of
the typea described therein between member banks and dealers in
securities, apparently because it was thought that such relationzhiPs might have a tendency to influence the credit and investment policies of member banks in a manner which Congress did not
consider compatible with the public interest. In view of the
Policy thus declared by uongress, the Board feels that, except
-11 unusual cases which are not within the class contemplated by
tshe statute, it should not issue permits authorizing relation-P5 which are within the prohibitions of the section.
iherefore, in the event that you deem it necessary to communica
,
L.e with Ir. Williams, you may feel that it is advisable
make it clear that the denial of i. Knight's application is
based upon the belief that the interlockin7, relationship
eovered by his application has actually resulted in any of the
undesirable practices Tklioh Congress sought to prevent by the
nactment of section 32; but its action is based upon the fact
the relationship is one of the type which Congress sought
that
11
inte in order to guard against the possibility that, in
future,
such relationships might have a tendency to affect
the
e credit and
investment policies of member banks."

1

Approved.
Letter dated September 13, 1934, approved by four members of
the

to Ir. Curtiss, Federal Reserve Agent at the Federal ReBaxik of
Boston, inclosing the following Clayton Act permit, and

that, if the agent finds to his
satisfaction that the provil-olls of
section 32 of the Lanking Act of 1933 are not applicable to
th(1
14. 1,restoll:

ho is authorized to transmit the Clayton Act permit to

tlwyn C.
Preston, for permission to serve at the same time




2807
9/14A4

-32-

aRG a director of The Second attional bank of Boston, Boston,
!assachusetts, as a director of the Boston Safe Deposit and
..rust Company, Boston, Massachusetts, and as a director of the
Lexington
Trust Company, Lexington, Lassachusetts.
Approved.
Letter to Lir. Case, Federal Reserve Agent at the Federal Res" 13ank of hew York, inclosing the following Clayton Act permits,
requestir,g that the agent 'withhold delivery of the permits until
he

s

atisfied that section 32 of the Banking Act of 1933 does not

EtP131.y to
the Tplicants, in which case he is authorized to deliver
the
i, s,
permt
and that he advise the Board of his action in the matter.
The
letter stated also that, in view of all the circumstances set forth
illthe
letter, the board has granted the permit to Ia.. Gifford in order
to,-,
-"Id any
unnecessary misunderstanding by the communities which mi;ht
Pls"15 detrimental to
the best interests of the banks involved; that
the .10
d feels,
haaever, that efforts to place the banks in sound
()Ildit5-021, and Lir.
Gifford's financial condition above criticism
"Quid be

continued and, when transmitting to La-. Gifford his copy

°L' the

Permit, it is requested that the agent inform him of the Board's
i4
these ,natters; and that the Board also suggests that the

Ilgelit

keep in
close touch with the efforts being made to bring about

etl'ellthelling of the management and condition of the bank:, involved
4"
correction of all of the conditions which have given rise to
the ettillillersi criLicisms, that the agent cooperate with the appropri4te
4'411erViSOry authorities to this end, and that, when the agent subIrlit4 111.8 recommendation
as a result of his annual review of Er. Gif's Permat, he report fully as to the progress made in bringing




2808
9/4/34

-33-

about an improvement in the management and condition of the banks inin his application and the progress made by Ir. Gifford in
enating his lines of credit from both institutions and in effecting
44 iMprovement in
his personal financial affairs.
George Gifford, for permission to serve at the same time as
a director and officer of
The Mohawk National Bank of Schenectady,
Schenectady, New
York, and as a director of the Glenville Bank,
8cotia, New York.
Lr..liomer J. Borst, for permission to servo at the sane time as
director and officer of The Lohauk National Eprik of SchenecIadY, Schenectady, New York, and as a director of
the Glenville
Lank, Scotia, New York.
Approved.

era].

Three letters to Er. Case, Federal Reserve Agent at
the Fed-

zxeserve Bank of New York, stating that
the Board has given coneider
4tion to the
following applications for permits under the Clayton
tJ

and that, upon
the basis of the information before it, feels that

the iecuatoe of the permits applied for
would be incompatible with the
1)11144e
interest. Each letter also requested the agent to communicate
te the EPPlicant
the Board's position in the matter, and to advise the
11°4114 Promptly
as to whether the applicant desires to submit any additi°3341 data, and,
if not, as to uhat steps he proposes to take in
°1'cler to cozply
with the provisions of the Clayton Act.
aa aArth
.
B.
as
director Cobden, for permission to serve at the same time
of the Bank of Waterford, Waterford, New York, and
44 employee of The
Lanufacturers National Bank of Troy, Troy,
'ela York,

Lir, will.
title , lam C. Feathers, for perniscion to serve at the seine

a director and
Of
officer of The Lanufacturers National Bank
Tac"°Y, New York, and as a director and officer of the
oille Valley
Bank, Berlin, New York.




2809
9/14/34
-34ki. Willieuu C. Geer, for permission to serve at the same time
as a director of The Manufacturers National Bank of Troy, Troy,
NeW York, and as a director of the Troy Prudential Association,
//leo, Troy, New York.
Approved.
Letter to Er. Williams, Federal Reserve Agent at the Federal

Re8

"
1

tank of Cleveland, stating that the Board has given considera-

ticla to the
following applications for permits under the Clayton Act,
kid
t, upon the basis of the information before it, feels that
the
iaatance of the
permits applied for mould be incompatible with the
Public
interest. The letter also requested the agent to cammunicate
to the
aPPlicants the Board's position in the matter, and to advise
the
Board promptly
as to whether the applicants desire to submit any
ttdditional data, and,
if not, as to what steps they propose to take
ill order
to comply with the provisions of the Clayton Act.
14".Be F. Harwitz, for permission to serve at the same time as
rector of The First and Merchants National Bank of Middletown,
1449.e+
-own, Ohio, and as a director of The American Trust and
4vItics Bank,
Middletown, Ohio.
kr.
(l
Snyder,
for permission to serve at the same time as a
e.
officer of The First and Merchants National Bank of
(1111dedii'otO.1
Liddleto
Ohio, and as a director of The American
Trust
and Savings Bank,
Eiddletoma, Ohio.
Snider, for permission to serve at the same time as a
..eotor of The
First and Lerchants National Bank of laddletomn,
112.ddletown, Ohio, and as a director of The American Trust and
441-vings Bank,
EicIdletawn, Ohio.
Mr. j A
r.
Alai, for permission to serve at the same time as a
;1;cLor Lnd
officer of The First and Merchants National Bank of
T -"letown,
Middletown, Ohio, and as a director of The American
rust and
Savings Bank, Yiddletoun, Ohio.

:

Approved.
l'wo letters
to Yr. Stevens, Federal Reserve Agent at the




2810
9/14134

-35Ped
erai- Reserve hank of Chicago, stating that the Board has given connideration to the followin applications for permits under the Clayton
Act,
-41411 that, upon the basis of the information before it, concurs in
thO „.
-Lent's opinion that the issuance of the permits applied for would
b
eine
oL.atible with the public interest. Each letter requested the
aCen.t to

ter,,
ria

communicate to the applicant the Board's position in the matt° advise the board, promptly as to whether the applicant de-

etre,to
submit any additional data, and, if not, as to what steps he

ProPose
Act.

to take in order to comply with the provisions of the
Clayton

:
1b11
:* Schuyler L. Earchall, for
permission to serve at the sane
1..
1111e.as a director of The St. Johns rational Bank,
St. Johns,
lehlGan, and as a director of the Clinton County Savinr:s
'" Johnn, Lichiran.
.
6.-1l111011 M. Smith,
for permission to serve at the same time as
:rdirector of The St. Johns ICational Bank, St. Johns,
nchit;an,
an a director of the Clinton County Savings Lank, St.
Johns,

Approved.
Letter dated
September 13, 1934, approved by four members of
the
Loard, to Li..
Sargent, Assistant Federal Reserve Agent at the
Pederal
Reserve
D1k of San Francisco, inclosin7 the following Clayton
4t
Permit; r
equesting that the agent ascertain the status of the
441 ot

at;ainst Er. Duncan
in connection with a possible violation by
section

22(e) of
Federal Reserve Act; and stating that, in
the
event the
case ras been duly considered and closed without
proseNtion, the
ar,ent is
the
to release the Clayton Act permit to
authorized
4P131&eant. The
letter also requested that, rhen the agent submits
the




2811
9/14/34

-36-

1118 recommendation as a result of his annual review of the
permit, he
report fully as to whether
Lr. Duncan has further violated any proviX1 of
the law,'
111. F. A. Duncan,
for permission to serve at the same time as a
director of The First National Bank of Ilwaco, Ilwaco, Washington,
and as a director and officer
of the Pacific State Bank, South
Bend, Washington.
Approved.
Letter to hr. Sargent, Assistant Federal Reserve Agent at the
Nderal
Reserve Bank of San Francisco, inclosing the following Clayton
4ctPermit, and requesting that the assistant agent
withhold delivery

or 41.
-to

Permit until hr. Forbes has filed an application under section

32 of the Banking Act of 1933 and a permit has been
issued to him by
the Board
covoring his service with the Golden Gate Finance Company,
Or 114til it is
determined that tar. Forbes' service with the national
bktkand the
above named company does not come within the provisions
°I' section 32.

The letter also requested that the agent advise of the

ection

taken in the
matter&
tr.
J
A4
-ohm F. Forbes, for permission to
serve at the same time as a
v ector of the First National Bank in San Rafael, San
Rafael,
;:itZni
ctalli7tla director of the Bank of San Rafael, San

Approved.
Letters dated September 13, 1934, approved
by four members of
the be
ard, to
applicants for permits under the Clayton Act, advising
e.ppro
111.1 of their applications as
follows:
14,..

471-Qon E. Ober, for permission to serve
a.i „:
at the same time as
0
cer of The Second
National Bank of Boston, Boston, Rassau_meette, and as a
director of the Beverly Trust Company, Beverly,
444ssaohusetts.




28t2
9/14/34
Darwin C. Pomeroy, for permissicn to serve at the same time
a3
director and officer of The Port Royal National Bank, Port
Royal, Pennsylvania, and as a director and officer of The Russell National hank of Lewistown, Leuistourn, Pennsylvania.
111'. Edward
H. Worth, for permission to serve at the same time as
a director of The
National Bank of Coatesville, Coatesville, PennsYlvania, and as a director of the Claymont Trust Company, Claymont, Delaware.
IrAr s:alliam Knecht, for permission to serve at the same time as
0director of The Rush County National Bank of Rushville, Rushsl3
li t
E
=
,
iana, and as a director and officer of the Falmouth
Falmouth, Indiana.
Frank J. Lauerman, Jr., for permission to serve at the same
0-3 a director of The Stephenson Kational Bank of Marinelte,
x::arinette, Wisconsin, and as a director and officer of The iirst
1A0-tional Bank o Oconto, Cconto, Wisconsin.
•
iqr. Fred
Buck, for permission to serve at the same time as a
director of The Lorthern National Bank of Duluth, Duluth, Lanne,
813te, and as a director and officer of the Duluth Iorric
Plan
'tImPany, Duluth, Minnesota.
'lcenneth
Cant, for permission to serve at the same time as
!t.director of Tho Linnesota Lational Bank of Duluth, Duluth,
,,L1-11nec0t0-, and
as a director of the Duluth Morris Plan Company.
vuluth,
Linnesota.
LAr. j
• R. Colbeck, for permission to serve at the same time as
officer of The Linnesota National Bank of Duluth, Duluth,
:
1,111111e3ota,
1
and as a director and officer of the Superior State
111-, S
uperior, -Wisconsin.
j
di,_' • Eklund, for permission to serve at the Bare time as
a
,ojetor and
officer of The Duluth National Bank, Duluth, Yinnetula, as a director
of The Northern Kational Bank of Duluth,
co_uth, linnotota, and as
a director of the Duluth Lorris Plan
44ParlY, Duluth,
Llinnesota•
cs
,
—* I" French,
for permission to serve at the same time as a
act:otor of
The Northern National Bank of Duluth, Duluth, Janne:Land 0-8 a director of the Duluth Morris Plan Company,
Dla14;11
Ljr,
Linnesota.

1) a •
LcCarthy, for permission to serve at the same time as
oul'lroctor of the
First and American National Bank of Duluth,
cor,ly:th, Linnesota,
and as a director of the Duluth Lorris Plan
l'anY,
Duluth, Minnesota.




2813
9/14/34

-38-

Mr, A. C. Weiss, for permission to serve at the same time as a
director of the First and American National Bank of Duluth, Duluth,
xJannesota, and as a director and officer of the Duluth Norris Plan
Company, Duluth, Minnesota.
John G. Williams, for permission to serve at the sere time as
a director and
officer of The Northern National Bank of Duluth,
puluth, Minnesota, and as a director and officer of the
Dulth.Loris
Plan Company, Duluth, Minnesota.
''.C. W. Pflucer, for permission to serve at
the sane time as
!director
and officer of the Coupland State Bank, Coupland,
,
.rt:ea;121:;,
asa director of The City National Bank of Taylor,
Texas.
Chas. F. Adams, for pernission to serve at the same time as
a director
of The First National Bank of Idaho, Boise, Idaho, and
as a director of the
Boise Trust Company, Boise, Idaho.
Approved.
Letters to applicants for permits under the Clayton Act, ad,of

approval of their applications as follows:

• Teorge R.
Cherry, for permission to serve at the sane time
a director of
The Safe Deposit National Bank of New Bedford,
1",ovr Bedford,
Massachusetts, and as a director of The New Bedford
°Ilrris Plan Company, New Bedford, Massachusetts.

te

hir

Las Seabury Cook, for permission to serve at the same time
a director
of The Safe Deposit National Bank of New Bedford,
;VI
Bedford, Massachusetts, and as a director and officer of The
ew Bedford
Morr4s Plan uompany, New Bedford, Lassachusetts.
r.

a
S. Cook, for permission to serve at the same time as
te'llreetor and officer of The Safe Deposit
National Bank of New
(
vf°rd, New- Bedford, Massachusetts, and as a director of The
rDedford Morris Plan Company, New Bedford, Massachusetts.
4
•as a ,.11am F. Potter, for permission to serve at the same time
Lkirector of The First National Bank of New Bedford, New
Ne1172rd, rl
assachusetts, and as a director and officer of The
tiedford Morris Plan Company, New Bedford, Massachusetts.
kr.
.
salre ift.-1
- -11-am A. Robinson, Jr., for permission to serve at the
Ballk 'r 1,al° as a director and officer of The Safe Deposit National
7
4 llow Bedford, New Bedford, Massachusetts, and as a rdirector ,
ch etts" The New
Bedford Morris Plan Compan;, New Bedford, LmssalAs.




2814
9/14/34

-39-

hr. Elton S.
Wilde, for permission to serve at the same time as
a director of The First
National Bank of New Bedford, New Bedford,
Lassachusetts,
and as a director of The New Bedford Morris Plan
Company, New Bedford, Lassachusetts.
Mr. Wadsworth
Crease, for permission to serve at the same time
;
8
0017;
:
.
;
,
ficer of The First National Bank and Trust Company of
Woodbury, New Jersey, and as a director of the Pitman
National Bank and Trust Company, Pitman, New Jersey.
"
11
P. Carlton Dickensheets, for permission to serve at the sane
tim° as a director of The First National Bank and Trust Company
of
Woodbury, Woodbury, New Jersey, and as a director and officer
of the
Gloucester City Trust Company, Gloucester City, New Jersey.
Illr& Oscar B.
Redrow, for permission to serve at the same time as
a director
and officer of The First National Bank and Trust Cornof Blackwood,
Blackwood, New Jersey, and as a director and
ooicer of The First
National Bank and Trust Company of Woodbury,
dbury, New Jersey.

V

14r. Perol
Craig Drake, for permission to serve at the sane time
as a
director of the Ohio State Bank, Frazeysburg, Ohio, and as
employee of the Coshocton National Brink, Coshocton, Ohio.
Mr. u
.32
44..red Vest,
for permission to serve at the same time as a
Iciector of The
First National Bank of Oneida, Oneida, Tennessee,
T
as a director of the First Trust and Savings Bank, Oneida,
en
nessee.

Z

a. R.._
LAssell C. Allen, for permission to serve at the same
time
141e;7 officer of
The Commercial National Bank of Ithaca, Ithaca,
141„lj'gan. and as an officer of the Ithaca Savings Benk, Ithaca,
14r•
as

bur G. Hubbard, for
permission to serve at the same time
employee of The Commercial National Bank of Ithaca, Ithaca,
kichi=: and as an employee of the Ithaca Savings Bank, Ithaca,
Ariadne E.
Knapp, for permission to serve at the same time as an
erill31°Yee Of
P
-Lhe Commercial National Bank of Ithaca, Ithaca, ichi
h '
4 LL as an employee of the Ithaca Savings Bak, Ithaca,
c igan.
Lir
14* E. Lewis, for
permission to serve at the same time as a
14iehror of The
Commercial National Bank of Ithaca, Ithaca,
gan,
"a director of the Ithaca Savings Bank, Ithaca, .113.c?2,--'
"a director of the Pompeii
State Bank, Pompeii, Michigan.




2815
9/3.4/34:
'

-40-

Alice T. Liller, for permission to serve at the same time as an
employee of The Commercial National hank of Ithaca, Ithaca,
"
1 ichigan, and as an employee of the Ithaca Savings Bank, Ithaca,
Lichican s
14
:* Carl Ranger, for permission to serve at the same time as a
ieetor of The Commercial National Bank of Ithaca, Ithaca,
chigan, and as a director of the Ithaca Savinf;s Bank, Ithaca,
141chigan.
•
'
,Loc. L. Corkin, for permission to serve at the same time as
an officer of The St. Johns National Bank, St. Johns, Michigan,
as an officer of the Clinton County Savings Bank, St. Johns,
141chigan,
lir

Loe A.
DeWitt, for permission to serve at the same time as a
ot.,rector of The St. Johns Naticnal Bank, St. Johns, Lichigan, and
as a director of the Clinton County Savings Bank, St. Johns,
Lichigan.

Las.
"
Luecht, for permission to serve at the same time as a
lipotor and officer of The St. Johns National Baak, St. Johns,
En V igan, as a director and officer of the Clinton County Savings
St. Johns, Lichigan, and as a director of the State Savings
ank of
Fowler, Fowler, Lichican.
Li. Ferguson, for permission to serve at the same time as
'irootor of the Fourth Rational Bank in Wichita, Wichita,
'
i nsaci as a director of the Security State hank, Wellington,
m"nsas, and as a
director and officer of the Bank of - oodvard,
"oodvurd,
Oklahoma.
r1r, 0
." L• Baen, for permission to serve at the same time as an
off
of The Anglo California National Bank of San Francisco,
%,Jrancisoo, California, and as a director of the Sumitomo
-- of California, Sacramento, California.
141.
r- crane, for
permission to serve at the sear time as an
er of the
First National Bank in San Rafael, San Rafael,
R4ilf°rIlia, and as an officer of the Bank of San Rafael, San
aol,
California.
Lir. 1, r
a
i4
c ''4J-lector Freitas, for permission to serve at the same time as
of the First Rational Bank in San Rafael, San Rafael,
RtePornia, and as a director of the Bank of San Rafael, San
0,01,
California.
141., A. ,
oiTie
Latno, for permission to serve at the came time as an
Calif
:
r °I' the First National Lank in San Rafael, San Rafael,
officer of the Bank of San Rafael, San
Raeacil:tlitnlan




2816
9/14/.34

-41-

La, E. B.
*
McNear, for permission to serve at the same time as a
director and officer of the First National Bank in San Rafael,
San Rafael,
California, and as a director and officer of the Bank
of San Rafael, San Rafael,
California.
- "us r. kurray, for permission to serve at the same time as a
director and officer of the First National Bank in San Rafael,
a4 Rafael, California, as a director and officer of the Bank of
7.04 Rafael, San
Rafael, California, and as a director of the
govato Bank, Novato,
California.

2

A.
a directorSaunders, for permission to serve at the SaMe time as
of the First National Bank in San Rafael, San Rafael,
alifornia, and as a director of the Bank of San Rafael, San
-Rafael, California.

F

n
,
laymond li. Thayer, for permission to serve at the same time
director of the First National Bank in San Rafael, San
?fatal, California, and as a
director of the Bank of San Rafael,
oan
Rafael, California.
Approved.
There were then
presented the followinc applications for
°11 lages ifl
stock of Federal reserve banks:
lications

fo,,x,111_111, Stock:

'ITIWiET3L1 Bank in
Marietta,
4arietta,
Pennsylvania
District
The .
No 9.
Plrst
Commercial National Bank of
/iilliston, W
illiston, North Dakota
4 1
44cations for
ADDITIONAL Stock:
Glen
Ridge
Trust
G4n.
Company,
Ridge, New
eeee Tr
Jersey
llust
Company,
tt
e.airia, New
Celiter
York
liorichos
Bank,
WorkersCeriter
14oriches, L. 1., N.
Trust Co
Y.
04
mpanY,
s"
City,
orthe
New York
NOW
e to
York Trust Company,
New York




Shares

36

34
Total

6
27
30
120
60

36

34
70

2817
9/14/34

-42-

4
---Plications for
D5,31-F1e-f-1,1-67-2-7 ADDITIONAL Stock: (Continued)
(-Continued
The
First Natio--nal - Bax
-ik of Canton,
Canton,
New
York
The
Endicott
Endicott, National bank,
Lew York
The Fair
haven National dank,
rn Pair
haven, New York
'Ile Franklin
Square National Bank,
Franklin Square, New York
-The homer
National
}lamer, New York Bank,
The
Ste-wart
National Bank of Livonia,
-Lvonja New
York
Ile
Peoples National Bank and Trust Company of
L
York
Ahe ynbrook, Lynbrook,
Lahopac National Bank,
Llahopac, New York
Pirst
National Bank of Narrowsb
the'.1arrowsburg, New York
pirst
ti,t, °Id For,National Bank of Old Forgo,
-6e, New York
rborNati °nal Bank of Port Washington,
Port
York
R.ye -Yashin,;ton,
National Bank,
Rye, New
York
Ile First
National Bank
cs
of Sherrill,
Sherrill, New York
len
National Bank of
Watkins,
Th 1V,Etkins,
e .-141-tiona1New York
Bank of Westfield,
T1,74,08tfield, New York
ge4ra.rst
NEttonal Bank and Trust
Company of
Th0,arny,
-01rst :Zearny, New Jersey
National Bank of 1.1ilford,
New Jersey
e _Liirst
National Bank of North Bergen,
0
The'4rth
Bergen, New
jersey
.S°.cerld N
ational Bank of Paterson,
Iterson, New
Jersey
Roe,
Bank in Rockamy,
eAvay, New
Jersey
I41), riet iTo
5
lhe
4011
. es
National Bank of Rowlesburg,
Piratlivesbilrg, West
Virginia
ie/lel Bank
in
Henderson,
The ellc
p ier aon,
:North Carolina
/Ples
:National Bank of Lanassas,
‘461.55a,

Shares

30
3
21
30
69
27
36
13
30
13
165
28
30
30
19
42
6

/,,i:L




rf;inia

90
3

2
30

934

2818

9/1
4/Z4

-43-

for ADDITIONAL Stock: (Continued)
11-5
o.
(Continued)
LerchEiZtri National Bank of Montgomery:
The4ntcomery, West Virginia
First Lational Bank of Romney,
Romney, 'West Virginia

lastr'

.9istrict 1;o. 9.
l
rst:;ational Lank- of ilawley,
ey
Lannes ta

Shares

3
3

45

6

6
Total

98-5

450

450

18

18

1....cati2ns for
Suiva-7-4'D-11'21: of ,Stook:
4tailc O-17"-fro-Fktown,
New York.,
1:ew York
District to. 7.
2ir-8---E-713.-tional Bank
of Wanawa,
ILEllaawa, Ilisconsin
9.
Ta-.---tio--nttl aank of Alden,
41de110 Mirtnesota
'"e
li'ational Bank of
Commerce of 1..ankato,
llinnesota
The

15

iii

78

93

60

GO

Eo. 10.

411e

7.7qT7ETnE--t-Tft
---E7f6-nta
Lank
4-1eray i:ansas
tit,t
xhe
12.
iiitlaTCrial Bank of
Cornerce of Astoria,
4-storia., Oregon

72
72
7
Total-- 7690

approved.

Thereupon the meeting adjournod.

4P1)r°1red 3




Secretary.

Vice

Governor.