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(72, A meeting of the Federal deserve Board was held in the office of the Governor of the Federal deserve Board on Wednesday, September 23, 1925, at 4:00 p.m. PAME:TT: Governor Crissinger Mr. 'latt Mr. James Mr. Cunningham Mr. McIntosh Mr. Eddy, Secretary In accordance with the action taken at the meeting of the Board this morning, the Committee on Examinations submitted the following report: "At the meeting of the Board this morning, following presentation by Mr. P. E. Bowles, President of the American Bank of San Francisco, of facts and conditions surrounding the acquirement, through the American Securities Company, of stock in the Bank of Alameda, with a view to consolidating the Bank of Alameda with the American Bank of San Francisco and operating branches of the latter in the premises of the Alameda bank, the Board adopted a motion to reconsider its action of August 5, 1925 in denying the application of the American Bank to establish the branches in question. Your Committee was directed to draft a resolution for presentation to the Board, recommending the action which the Board should take on the application. In view of the fact that the action of the American Bank in so acquiring stock in the Bank of Alameda is a violation by the bank of the conditions of membership to which it subscribed at the time of its admission to the system, and in view of the fact that the defense of the bank is a plea that it was ignorant at the time of the transaction of the purposes and intent of such conditions of membership, all of which has been explained verbally to Mr. Bowles, your Committee recommends that the American Bank of San Francisco be advised that before the 3oard will take furthar action on the application to establish branches at Alameda, it desires to have assurances in writing that the officers and directors of the American Bank have reviewed and are familiar with the conditions under which the bank was admitted to membership, and to which it subscribed at the time; that they are familiar also with the terms of the 3oard's degulation H, and that they will not in the future enter into any firm negotiations for the acquisition of stock in another bank in excess of 20 per cent of the stock of such bank, without first securing the consent of the Federal deserve Board in accordance with their condition of membership No. 6, nor take any definite steps toward the estaolishment of an additional branch office without having first secured the approval of the Board, in compliance with their condition of membership No. 4 and aegulotion H. (11 -7- 9/23/25 "If this re-:ort' of your Committee is adooted by the 3oard, it is also recommended that the Board require that its advice to the _merican Bank of San 2rancisco be brodiht to the attention of the board of directors of that Dank at a regular meeting„ and that the Cashier of the 'bank 02 the Secretary to the board of direcors be required to certify to such presentation and certify also to such action as the directors may take thereon." :;:r. James reported that 1dr. Bowles, as ?resident of the 4merican Bank, had agreed to the above conditions and had stated that he would at once advise the bank to proceed in accordance therewith. .fter discussion, :a.. James moved a)ofoval of the report. hr. James' motion being put by the chair was carried. deport of Committee on JA.aries, Expenditures and Efficiency on letter dated. eeptember 23rd from the Com)troller of the Currency, recommending all iner_ase from .3600 to „4200 per annum in the salary of :;ational Bank 2xaminer . Hill; the Committee also recommending approval. Approved. .e ) - ort of Committee on Salaries, Expenditures and Efficiency on letters datea Japtembar 23rd from the Comptroller of the Currency, recommending salaries of y3,J3O and 43,600 per annum, respectively, for National Bank Th, -4aminers a. Niemann and 2homas H. iavis to be assigned to the 6th and 3rd Federal deserve Districts; the Committee also recommending approval. 4proved. Telegram dated Se-otembor 23rd from the Chairman of the Federal...:oserve Br4/1 of 30s ton, requ-stiug aproval of the action of the board of directors 9/23/25 . of that bank in authorizing the Governor to reimburse employ3 s of the bank who qualify to take examinations in courses given by the Bost n Chapter Of the American Institute ,of Banking during the ensuing school year, for amOunts paid by the employees for fees for such courses; the expenditure involved being appmximately .g00. Approved. The meeting adjourned at 4:25 p.m. Secretary. Approved:
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