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2699 A meeting of the Executive Committee of the Federal Reserve Board was held in Washington on Friday, September 7, 1934, at 4:00 P. PRESENT: Mr. Thomas, Vice Governor Mr. Hamlin Mr. James Mr. Morrill, Secretary Mr. Bethea, Assistant Secretary Mr. Carpenter, Assistant Secretary The Committee considered and acted upon the following matters: Letter dated September 5, 1934, from Mr. Sproul, Secretary of the Federal Reserve Bank of New York, and telegrams dated September 5, 1934, from Mr. Post, Assistant Federal Reserve ,%gent at the Federal Reserve Bank of P hiladelphia, September 6, 1934, from Mr. Wood, Chairman of the Federal Reserve Bank of St. Louis, Mr. McClure, Chairman of the Federal Reserve Bank of 4843as City, and Mr. Sargent, Secretary of the Federal Reserve Bank of San Prancisoo, and September 7, 1934, from Mr. Strater, Secretary of the Federal Reserve Bank of Cleveland, and Mr. Chairman of the Federal Reserve Bank of Dallas, all advising that, at meeting the of the boards of directors on dates stated, no changes were made in the banks, existing schedules of rates of discount and purchase. Without objection, noted with approval. Telegram dated September 6, 1934, approved by three members of the B°1"cl, to Mr. Curtiss, Chairman of the Federal Reserve Bank of Boston, r"ding as follows: "Your telegram September 5. Federal Reserve Board approves for your bank, effective immediately, maximum rate of per annum on industrial loan commitments, with authority to officers to fix rate on each such commitment within limits of maximum rate and the Minimum rates established by your directors on July 25, 1934." Approved. 2700 g/7/34 -2Telegram dated September 6, 1934, approved by three members of the Board, to Mr. R. E. Henry, President of the Dunean /Jills, Greenville, South Carolina, reading as follows: "Federal Reserve Board has appointed you director of Charlotte Branch of Federal Reserve Bank of Richmond for unexpired portion of term ending December :A., 1936. Please wire acceptance collect." Approved. Letter to Mr. Stevens, Federal Reserve Agent at the Federal Reserve 8114k of Chicago, reading as follows: "Receipt is acknowledged of your letter of September 1, 1934, advising of the acceptance by the Executive Committee of your bank, as of the close of business August 31, 1934, of the resignation of Er. W. A. Hopkins as Assistant Auditor of the Federal Reserve Bank Of Chicago, and the appointment, as of September 1, 1934, of Er. Sohn I. Endres as Assistant Auditor of your bank. "In accordance with the action of your Executive Committee, the Board approves the salary at the rate of ,4,000 per annum fixed for Mx,. Endres in his new position." Approved. Letter to kr. Curtiss, Federal Reserve Agent at the Federal Reserve Bark of Boston, reading as follows: "Reference is made to Mr. McRae's letter of Tuly 26, 1934 addressed to the Division of Bank Operations, inclosing a copy of a letter from the 'Hadley Falls Trust Company', Holyoke, Massachusetts, and the two reports of earnings and dividends, Form 107, of the trust company for the six months ending Tune 50, 1934. Report numbered 1 was said by the trust company to be an exact transcript Of its undivided profits account for the period and the report numbered 2 was said to give effect to certain charges or needed reserves which, according to the trust company, should have been made or provided for as at December 30, 1933. The items eliminated from report numbered 2 consisted of the following: 473,536.78 A - Charge offs incurred B - Unusual expenses but not paid (net after 6,288.09 using reserve) 13,707.59 suits C - Pending $193,b32.46 2701 9/7/34 -3- "The trust company stated that the above charges, which are more fully described below, were actually entered in its books during the six months' period ending Tune 30, 1934. "A - Charge offs - .173,536.78 The trust company indicated (1) that in connection with its admission to the Federal Reserve System it was required to show a surplus of not less than ,;399,000 as at the close of business December 30, 1933; (2) that on December 30, 1933 in compliance With condition numbered 23 it had charged off :1,436,613.50 which left the bank with a surplus account of W0,000; (3) that the Reconstruction Finance Corporation, as a condition to the purchase Of „;;1,000,000 Class 'At preferred stock, required total charge offs of '4,600,000; (4) that in order to meet its requirements the trust company signed an agreement with the Reconstruction Finance Corporation dated December 30, 1933 to the effect that, since it could not charge off or eliminate the total amounts of such charge offs or eliminations as required by the Reconstruction Finance Corporation without reducing the surplus account below the amount required by the Federal Reserve Board, it would within thirty days from that date charge off or eliminate all items required to be so charged off or eliminated by the conditions imposed by the Reconstruction Finance Corporation, if such items had not been previously charged off or eliminated. 11B Unusual ex enses incurred but not said (net after using reserve) - :$6,288.09 This item was reported by the trust company as consisting of the legal fees and the cost of examination by the Commissioner of Banks in connection with the reorganizatiam of the trust coaTany and its admission to the l'ederal Reserve System. .;,ccording to the trust company, the bills for such charges were not rendered until in 1934, but such bills covered expenses incurred during the period previous to December 30, 1933. LZ.222LEE_ElL.9.2 7°7•59 This the IL trust company as representing the item was reported by cost of settling certain claims, and related legal expense, which grew out of the manner in which the trust company had handled certain matters as executor and trustee in 1927 and subsequent years. The negotiations regarding this settlement had apparently been in Progress for some time but were not actually brought to a conclusion until in 1934. "The conditions prescribed by the Board in connection with the adof the Hadley Falls Trust Company were based upon -uhe report of examination of the trust company made by your examiner as at November 10, 1933. The Board's requirement that the trust company should have a paid-up and unimpaired capital stock of not less than ' 400,000 and a surplus of not less than :399,000 at the time of adIllission to membership was based on the pro forma statement of the trust eclqany which was submitted in connection with the application for T1ssion to membership 4 2702 9/7/34 -4- "membership. If the Board had been informed regarding the plans Of the trust company for making further eliminations pursuant to the requirements of the Reconstruction Finance Corporation, the amount of surplus required of the trust company upon its admission to the Federal Reserve System could have been reduced to such an amount as would have permitted the elimination of all the proposed charge-offs. In view of the fact that the trust company agreed to make the additional charge-offs within thirty days from December 30, 1933, and the fact that such proposed charge-offs, representing items unacceptable to the Reconstruction Finance Corporation, actually existed in the assets of the trust company prior to its admission to membership, it would appear that such charge-offs are appropriately chargeable to the six months' period ending December 30, 1933. "While a portion, if not all, of the amounts involved in 'Unusual expenses incurred but not paid' and 'Pending suits' represented expenses and liabilities incurred prior to January 1, 1934, the charges therefor were made in 1934 and were not the subject of the agreement with the Reconstruction'Anance Corporation. It is believed, therefore, that such charges should be reflected in the report of earnings and dividends for the six months ending June 30, 1934. "In the circumstances, the Board will accept an amended report of earnings and dividends for the six months ending December 30, 1936, which will include in Item 6 - Losses and depreciation - the additional charge offs made by the trust company subsequent to December 30, 1933, which were specifically required in accordance with its agreement of that date with the Reconstruction Finance Corporation. The report of earnings and dividends for the six months ending June 30, 1934 should be adjusted accordingly. The Amended reports should contain a notation of the adjustments made in accordance with this letter." Approved. Letter to Mr. Austin, Federal Reserve Agent at the Federal Reserve 8e4k of Philadelphia, reading as follows: "Receipt is acknowledged of Mr. Fenner's letter of August 28, 1934, transmitting a brief of the correspondence covering matters Of criticism as a result of the examination of the 'Wilkes-Barre Deposit and Savings Bank', Wilkes-Barre, Pennsylvania, as of iarch 31 1 1934. "The report of examination indicates that the bank was still holding the 300 shares of stock of the Chase National Bank which had been purchased in 1931 and 1932 in violation of condition of membership numbered 3. In a letter dated February 18, 1933, the bank stated that on March 18, 1931, 100 shares of the stock had 2703 9/7/34 -5- "been purchased for :,;10,125 as an investment and that in June, 1932 additional purchases of 200 shares had been made at a cost of :A,400, to reduce the average price of the shares, and asked permission to hold the 300 shares of stock until such tame as the market price would permit the sale at a price considered reasonable as compared with the carrying value. In a letter dated Larch 3, 1933, you recommended that no objection be inter.posed to the retention by the bank of the Shares in question until they could be disposed of at a price Which bears a more reasonable relationship to the average cost. "On Earch 3, 1933, you also advised the Board that at your suggestion, the bank had agreed to refrain in the future from the purchase of any stocks and to eliminate gradually the stocks then held for investment. The report of examination as of Liarch 31, 1934, however, shows that the bank still held a substantial amount of stocks and would indicate that there had been coiaparatively small reduction in such holdings during the provious year. "Since the bank apparently did not wilfully violate the conditions of membership, and in view of your favorable recommJndation in the matter, the Board will interpose no objection to the bank's acquisition of the 300 shares of stock of the Chase National Bank. As indicated by the condition of membership prescribed for some time, however, the Board does not feel that stocks are suitable for the investment of funds of depositary banking institutions, and it is suggested that you advise the bank of the Board's views in these matters and request the management to consider the advisability of disposing of the various corporate stocks it now holds as soon as it is feasible to do so." Approved. Letter dated September 6, 1934, approved by three members of the Beard, to jr. 7alliams, Federal Reserve Agent at the Federal Reserve Bank Of Cleveland, reading as follows: "Receipt is acknowledged of Er. Yletcher's letters of /Lu;-ust 25 and August 27, 1934, regarding the examination of the 'Apple Creek Banking Company', Apple Creek, 6hio, as of July 10, 1934. The letters have particular reference to the possible violation of Section 22(d) of the Federal Reserve Act through the granting of an option to the firm of ,ituder Brothers, of Which director C. E. Studer is a member, to purchase for :4,15,000 on or before December 30, 1934, and for 5,500 on or before December 30, 1935, certain real estate owned by the bank. In view of the difference between the appraised value of 'i;1,100 2704 9/7/34 -6- "of these properties, which were carried on the books of the bank at T1,598.43, and the option price, the transaction was reported as a possible violation of Section 22(d). "The real estate under option consists of a grain storage warehouse with equipment for grinding feed, carried at :,)7,148.43, and an adjoining vacant lot, carried at $450. In the preceding report of examination of the bank made as of February 1, 1964, Your examiner stated that when in active operation the business carried on in this property was in direct competition with the business of Director Studer, and that while final disposition Of the property was expected to be extremely slow, the values were declared to be substantial enough to protect the invesLment. ahile it has been noted that on August 24, 1934, a majority of the board of diroctors approved the transaction as Provided in Section 22(d), it is assumed that in view of all of the circumstances you will satisfy yourself that the transaction is altogether proper." Approved. Letter dated September 6, 1934, approved by three members of the Board, to Mr. Hoxton, Federal Resrve Agent at the Federal Reserve Bank of Richmond, reading as follows: "Reference is made to La.. Fry's letter of June 27, 1934, with its inclosure, and to 'Ir. Thllace's or July 17, 1934, in connection with a possible violation of condition of membership numbered 12 by 'The Viashington Loan and Trust CamDany,, .:lashington, D. C. . "The Washington Loan and Trust Company was admitted to membership in the Federal Reserve System on May 5, 1933 and among the conditions of membership accepted by the bank was standard condition numbered 12, reading as follows: 'Except with the permission of the Federal Reserve Board such bank shall not, after the date of its a(jmission to membership, engage in the business of issuing or selling either directly or indirectly (through affiliated corporation or otherwise), notes, bonds, mortgages, certificates, or other evidences or indebtedness representing real estate loans or participations therein, either with or without a guarantee, indorsement or other obligation of such bank or an affiliated corporation.' "The report of examination of the bank as of May 7, 1934, shows that since May 5, 1933, date of admission to the System, the bank had sold to its customers real estate notes amounting to i 245,000 and taat during the same period it had purchased real estate notes aggregating :967,700. The national bank examiner 2705 9/7/ "States that in his opinion these transactions were in violation of condition of membership numbered 12 and states also that a correction was promised in the future. The bank, however, has taken the position that it has not violated the condition of membership referred to and has asked that the matter be referred to proper authorities for a determination of its position with respect to such condition of membership. In its letter of Tune 26, 1934, to Lir. Fry, the bank states that the sales were incidental to its regular business and at the request of the purchasers, and further that no fees were charged in connection with the sales or repurchases. "Mr. iallace calls attention to the practice of the bank of Charging the borrower a brokera7,e fee or commission at the time such real estate loans are originally made, as bei114:, practically the sane system used by concerns engaged on a large scale in the business of selling real estate loans and participations. la% .iallace also states in his letuer that the information at hand indicates that the sales were made because of the profit derived by the bank from the transaction or the desire to preserve the Lood will of the customers to wham the notes were sold, either Of which motives would of necessity be characteristic of engaging in the business of sellin such notes. "On the date of examination there were outstanding a total Or :,3,390,850 of real estate notes wiAch had been sold by the bank to its customers. It appears, therefore, that the bank has in the past engaged rather extensively in the business of the sale Of real estate notes and the examiner states that the bank has followed the policy of repurchasing such notes when requested by its customers. The volume of sales of such loans by the bank would indicate that the public regards the bank as an institution where investments of this character may be obtained. "In the circumstances described, the Board is of the opinion that The ',iashington Loan and Trust Company has engaged in the business of selling notes representing real estate loans since its admission to membership contrary to the requiremcnts of the standard condition numbered 12 heretofore referred to. "In the past, an obligation, actual or moral, to re:airchase loans sold, with or without recourse, has proved harmful, if not disastrous, to many banks and the Board feels that depositary banks should not also engage in the business of selling notes representing real estate loans. Accordinr-Jy, the Board would be unwilling to grant its permission to The Viashington Loan and Trust Company to engage in business of that kind." Approved. Letter to the "Oil City National Bank", Oil City, Pennsylvania, l'e4la in,SP as follows: 2706 9/7/34 -8- "The Federal Reserve Board has given consideration to Your application for permission to exercise fiduciary powers, and grants you authority, effective if and when the Comptroller of the Currency authorizes you to commence business, to act, when not in contravention of atate or local law, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee or estates of lunatics, or in any other fiduciary capacity in which :Dtate banks, trust comi;anies or other corporations which come into competition With national banks are permitted to act under the laws of the dtate of Pennsylvania, only in the specific trusts in which The 011 City National Bank, Oil City, Pennsylvania, has been appointed and is acting at the time the Oil City National Bank is authorized by the Comptroller of the Currency to commence business. Action has been deferred upon your application for full fiduciary powers until the institution has been in operation for a reasonable period and has been subject to an examination by a national bank examiner and a report of such examination is available. "The Board feels that, if you are tendered any of the trusts now held by The Oil City National Bank, you should carefully scrutinize their condition and should not accept any of such trusts which, through their assumption, may be detrimental to the interests of your institution. "Inasmuch as the application of the Oil City National Bank, Oil City, Pennsylvania, was made prior to the date the Comptroller of the 'Currency authorized it to commence business, the Board will require that your board of directors adopt a resolution ratifying your application for permission to exercise trust Powers, and it is requested that a certified copy of the resolution so adopted be forwarded as soon as possible through the Federal Reserve Agent at the Federal Reserve Bank of Cleveland, Who will forward it to the i,ederal Reserve Board." Approved. Letter to Mr. Austin, _ederal eserve Agent at the Federal Reserve " 14411k 01 l'hiladelnhia, reading as follows: "Reference is made to your letter of August 14, 1934, recammendin,- favorably the proposed reduction in common capital stock of the 'llihtstovn Trust Company', Hijitstown, New Jersey, from .100,000 to ,50,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale of .;50,000 of class 'A' preferred stock to the Reconstruction Finance Corporation and ,45,000 of class 'B' preferred stock to local interests, and provides also that the released capital shall be used to establish a reserve for contingencies. "It appears from the information submitted that the recapitalization of the bank will result in a material improvement in 2707 9/7/34 -0- "its condition and, in accordance with your recommendation, the Board approves the reduction in the bank's common capital as Part of the plan outlined in your letter, provided that none of the released capital will be returned to the stockholders but will be used to establish a reserve for doubtful assets and to eliminate the losses and depreciation in lower grade securities shown in the report of examination made by an examiner for the ;Tederal Reserve Bank as of May 22, 1934; that the plan of reorganization has the approval of the State banking authorities, and that your counsel is satisfied as to the legal aspects of the case. Upon completion of the proposed plan, it is requested that you advise the Board as to the eliminations made and forward copies of any amendments to the bank's charter for the Board's records. "It is noted from the report of examination that the bank carries in its investments various corporate stocks which the Board does not feel are suitable investments for funds of commercial banking institutions. It is requested that you advise the bank of the Board's attitude in regard to this matter and su(zest that such stocks be disposed of as soon as it is feasible to do so." Approved. Letter dated September 6, 1934, approved by three members of the Board, to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with ..,.cting Comptroller Gough's recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of Brayflier', Braymer, Missouri, from :,120,000 to ',;60,000, pursuant to a plan which provides that the released capital shall be used to eliminate a corresponding amount of substandard assets, all as set forth in Mr. Gough's memorandum of August 27, 1934." Approved. Letter dated September 6, 1934, approved by three members of the 13°4rd, to Er. O'Connor, Comptroller of the Currency, reading as follows: "Receipt is acknowledged of your memorandum of ugust 29, 1934, with reference to the proposed reduction in common capital stock of 'The First National Bank of Gape Girardeau', Cape Girardeau, Missouri, which was approved by the Board on Tune 23, 1934, pursuant to a plan which provided among other thins, for the sale of c100,000 of preferred stock to the Reconstruction Finance Corporation. "You advise that the original plan of recapitalization has been amended and that the bank now proposes to sell ../)0,000 2708 9/7134 -10- "of preferred stock to local interests, instead of the ,100,000 or preferred stock to the iieconstruction Finance Corporation, and that the existinr, .;65,000 of subordinated deposits, together with an additional ...;25,000 in cash, will be used to purchase such ,referred stock. "In accordance with your recommendation, the Board amends its previous approval to provide for the sale of „;90,000 of preferred stock as set forth in your memorandum of August 29, 1934, With the understanding that the other provisions of the original plan remain unchanged." Approved. Letter dated September 6, 1934, approved by three members of the Board, to Mr. O'Connor, Comptroller of the Currency, reading as follows: . "In accordance withcting Comptroller Gough's recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The First National Bank of Little Falls', Little Falls, Minnesota, from „0,000 to „:10,000, pursuant to a Plan which provides that the bank's capital shall be increased by ,IZO,OCC of preferred stock to be sold to the Reconstruction Ilnance Corporation and/or others, and that the released caii-W Shall be used to eliminate or reduce a correspondin amount of undesirable assets, all as set forth in Pr. Gough's memorandum or August 25, 1934. "In considering the plan under which the proposed reduction in capital is to be effected, it has been noted that estimated losses and securities depreciation which will remain unprovided Ior, on the basis of the last report of examination, if considered as a loss would impair the bank's common capital. Your examiner's comments in regard to the bank's management, which he regards as incapable and dangerous, have been noted also. It is understood that the Tri?-lnagement problem is receiving the attention Of your office, and it is assumed that; whenever it is feasible to do so, you will require such further correction in the bank's e?ndition as may be practicable." Approved. Letter dated ...)eptember 6, 1934, approved by three members of the 13c/ard, to Mr. O'Connor, comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal serve Board approves a reduction in the common capital stock ?I 'The Hancock lational Bank', Hancock, Minnesota, from 40,000 to 35,000, pursuant to a plan which provides that the 2709 9/7/34 -11- "bank's capital shall be increased by 15,000 of preferred stock to be sold to the R - econstruction Finance Corporation and that the released capital shall be used to eliminate a corresponding amount of unsatisfactory assets, or in setting up reserves therefor, all as set forth in your memorandum of Jaigust 28, 1934." Approved. Letter dated September 6, 1934, approved by three members of the to Li.. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The Uartin County National Bank of Fairmont', Fairmont, Minnesota, from 75,000 to :„;20,000, pursuant to a plan which provides that the bank's capital shall be increased by 400,000 of preferred stock to be sold to the Reconstruction Finance Corporation and/or Others, and that the released capital shall be used to eliminate corresponding amount Of unsatisfactory assets, all as set forth La your memorandum of August 14, 1934." Approved. Letter dated September 6, 1934, approved by three members of the Board, to la.. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommenation, the Federal Reserve 8°ard approves a reduction in the common capital stock of 'The Jaerburn National Bank', Sherburn, Linnesota, fram25,000 to v10,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale of J35,000 of Class 'A' preferred stock to the Reconstruction Finance Corporation and 05,000 Class 'B' preferred stock to local interests, and that the released capital shall be used to eliminate a corresponding amount of undesirable assets, all as set forth in your memorandu mof .,,ugust 14, 1934. "In considering the plan under which the reduction in common capital is to be effected, it was noted that, on the basis 01 the examination of February 7, 1934, there will remain in the ?Ink securities depreciation unprovided for in an amount which, 11 considered as a loss, would materially impair the bank's capital, and that there will also remain in the bank a large 7°1ume of other undesirable assets. It is assumed, however, that You have these matters in mind and will require further corrections whenever it is feasible to do so." Approved. 2710 9/7/34 -12Letter dated Septgmber 6, 1934, approved by three members of the Board, to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock of 'The Truman National Bank', Truman, Minnesota, l'ram ‘50,000 to c;10,000, pursuant to a plan which provides that the bank's capital shall be increased by the sale of 60,000 of preferred stock to the Reconstruction Finance Corporation and/or others, and that the released capital snail be used to eliminate a corresponding amount of substandard assets, all as set forth in your memorandum of August 14, 1934. "In considering the plan under which the reduction in cammon capital is to be effected, it was noted that securities depreciation unprovided for, if considered as a loss, would cause an impairment of the bank's common capital stock. It was also noted that the management of the institution was the subject of criticism by your examiner. It is assumed, however, that you have these conditions in mind and that whenever it is feasible to do 30 you will require such further corrections as may be practicable." Approved. Letter dated September 6, 1934, approved by three members of the Board -to r. Gardner B. Perry, Vice-President of the Northwest Bancor- P°rati°n) ianneapolis, Minnesota, reading as follows: "Receipt is acknowledged of your letters of algust 25 and 29, 1934, in regard to the method proposed to be used by the Northwest Bancorporation in qualifying directors in certain national banks. . "As the matter does not came within the Board's jurisdiction and it is understood that the Comptroller of the Currency, within whose jurisdiction the matter falls, has approved the use of such method, it would appear that the question has been determined by the proper supervisory authority and that no expression of opinion by the Federal Reserve Board is necessary." Approved. Telegram dated September 6, 1934, approved by three members of the Board, to nr. Clerk, Deputy Governor of the Federal Reserve Bank of 2711 9/7/34 -13San Francisco, reading as follows: "Your wire August 50. Board has heretofore advised Federal Reserve Bank of Cleveland that pending issuance by Board of instructions on subject, any amount deposited with Federal reserve bank to credit of 'Deposit Insurance National Bank of Pittsburgh', organized under provisions of paragraph 5 subsection (y) of Section 12B of Federal Reserve Act should be included in 'other deposits' on daily balance sheet form 34. This is only phase of question presented in your telegram upon which Board has passed and it is understood from Federal Deposit Insurance Corporation that there is no national bank in twelfth district organized under Section 1213. If, however, you feel it desirable that other aspects Of matter be considered at this time, please state specifi c questions which you have in mind and facts giving rise there- Approved. Telegram dated September 5, 1934, approved by two members of the to Ur. Stevens, Federal Reserve Agent at the Federal Reserve Bank °f Chicago, stating that the Board has given consideration to the application Of the "Chicago 3-obit Board, Amalgamated Clothing Workers of 44"ica", Chicago, Illinois, for a voting permit under the authority of section 5144 of the Revised Statute s of the United States, as amended, entitling such organization to vote the stock Which it owns or controls in the "Amalgamated Trust 8: Savings Bank", Chicago, Illinois, and has authorized the issuance of a limited permit to the applicant subject to the following condition: "That before issuing permit authorized hereunder you shall receive satisfactory assurances that prior to September 30, 1934, there will be furnished to you agreements on , 11* R. B. Forms P-3 and P-4 duly executed by Amalgamated ,3eouritie3 Company, Chicago, Illinois, and Amalgamated Safe Deposit Company, Chicago, Illinois." alad for the following purpose: 2712 9/7/54 -14- "To vote the shares of stock of such bank in deciding all questions at meetings of shareholders of such bank at any time prior to September 50, 1934." The telegram authorized the agent to have prepared by counsel for the Federal reserve bank, and to issue to the Chicago Joint Board, Amalgamated Clothing Workers of America, a limited voting permit in accordance with the telegram, and stated that the Board will issue a general permit upon receipt of the exhibits referred to above. Approved. Letter to the Federal reserve agents at all Federal reserve banks, Prepared in accordance with the action taken at the meeting of the Executive Committee on September 5, 1954, and reading as follows: "The Federal Reserve Board has given careful consideration to the replies received from the Federal reserve agents in response to its telegram of July 5, 1934, Trans. 2025, with regard to interest rates on time and savings deposits. "On the basis of the information received and its own study Of the question, the Board has decided that no change should be made at the present time in the maximum rate of interest of 3% on time and savings deposits prescribed in Regulation Q." Approved. Letter dated September 6, 1934, approved by three members of the Board, to Mr. Calkins, Governor of the Federal Reserve Bank of San Francisco, reading as follows: "There is inclosed a copy of a letter dated May 7, 1954 from Mr. William H. McReynolds, Administrative Assistant to the Secretary of the Treasury, and of the Board's reply thereto dated May 31, 1954 in connection with the inclusion of the Board in the insurance policy covering governmental shipments of currency and securities during the fiscal year 1935. "You will note from the last paragraph of the Board's letter that the Treasury was advised the Board is of the opinion that the question of the Federal Reserve System's participation ln the Treasury contract and the extent thereof should be given 2713 9/7/34 -15- "careful consideration during the forthcoming year and that the Insurance Cammittee of the Governors' Conference would be asked to review this question and to submit a report thereon in advance of the time when bids covering the fiscal year 1936 will be asked for by the Treasury Department. "The Board feels that a careful investigation should be made with a view to determining whether the rates received under the Treasury insurance contract are as advantageous to the Federal Reserve* System as the Federal Reserve banks could get from the insurance companies if shipments of Federal Reserve currency from ,.iashington to the Federal Reserve banks and branches were covered in the banks' own policies. In this connection it may be noted that National bank notes shipped by the Treasury to banks of issue are covered under the Treasury contract, whereas currency shipped by one Federal Reserve bank to another, or by a Federal Reserve bank to one of its branches or to one of its member bar_ks, is xot included in the contract on the ground that the shipments are not made by or.to a governmental agency and, therefore, may not be included in the Government insurance contract. "It will be appreciated if you will refer this question to the Insurance Committee and ask it to submit a report thereon by December 31, 1934 if practicab le. "If the Insurance Committee should find that the Federal Reserve banks can insure the Federal Reserve currency shipped from ' ,iashington under their own policies at a lower rate than under the Treasury policy, the Board will take the matter up with the Treasury with the view of making such arrangements as are necessary to enable the Federal Reserve banks to obtain the lowest Practicable insurance rates on such currency shipments." Approved. Letter to Honorable Royal S. Copeland, United States Senate, Illashington, D. C., reading as follows: "With your letter of ugust 16,1934, you inclosed a letter dated August 14 from Ur. Conv9rse Cleveland, of New York City; With regard to alleged unsatisfactory working conditions in the Cash Department of the Federal Reserve Bank of New York. "For your information there are attached two copies of a report regarding this matter made to the Board by the Federal Reserve Bank of New York. Yr. Cleveland's letter is returned herewith." Approved. Letter to Mr. W. J. Roberts, Vice President of the Mahoning Nati°11a1 Bank, Youngstown, Ohio, reading as follows: 2714 9/7/34 -1 6- "This refers to your letter of July 27, 1934, to Mr. A. P. Leyburn, Chief National Bank Examiner, which has been referred to the Federal Reserve Board for reply. You indicate in your letter that it was your impression that if the Mahoning Savings and Trust Company were to discontinue naking loans on stock and bond collateral section 33 of the Banking Act of 1933 would not apply to interlocking directorates between the savings bank and the Eahoning National Bank and that the discontinuance of rAking such loans would also effect a compliance with section 5139 of the Revised Statutes, as amended. "Section 33 of the Banking Act of 1933 amends the Clayton Antitrust Act by adding a new section as follows: 'That from and after the 1st day of Xanuary 1934, no director, officer, or employee of any bank, banking association, or trust company, organized or operating under the laws of the United States shall be at the same time a director, officer, or employee of a corporation (other than a mutual savings bank) or a member of a partnership organized for any purpose whatsoever which shall make loans secured by stock or bond collateral to any individual, association, partnership, or corporation other than its own subsidiaries.' "Section 5139 of the Revised Statutes, as amended, provides in part as follows: * * * * * * * 'After one year from the date of the enactment Of the Banking Act of 1933, no certificate representing the stock of any such association shall represent the stock of any other corporation, except a member bank or a corporation existing on the date this paragraph takes effect engaged solely in holding the bank premises of such association, nor shall the ownership, sale, or transfer of any certificate representing the stock of any such association be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any Other corporation, except a member bank.' "You will observe that the above quoted provisions of law have no relation to each other and the fact that the Mahoning Savings and Trust Company has ceased to make loans on stock or bond collateral has no bearing whatever upon the applicability Of section 5139 of the Revised Statutes, as amended. The latter Provon of law relates solely to national banks and questions 11:r1sing thereunder, therefore, are matters which fall within the Jurisdiction of the Comptroller of the Currency. It is suggested, therefore, that you communicate further with the Chief National Beak Examiner of your district with reference to the provisions or section 5139 of the Revised Statutes. 2715 9/7/34 -17- "The Federal Reserve Board, however, has jurisdiction over the administration of sections 8 and SA of the Clayton Act. If there are interlocking directorates between your bank and the Lahoning Savings and Trust Company and the trust company makes no loans secured by stock or bond collateral within the meaning Of section 82‘ after January 1, 1934, it would appear that the provisions of that section were not applicable to such relationship. Furthermore, it is noted from the Bankers Directory that neither the national bank nor trust company has resources in excess of ,A,000,000 and that the population of Youngstown is less than 200,000. If this is a fact the provisions of section 8 are not applicable to such relationships. "It will be appreciated if you will advise the Eederal Reserve Agent at the Federal Reserve Bank of Cleveland further in tnis matter and specifically whether the 1.-ahoning Savings and Trust Company has made loans secured by stock or bond collateral since January 1, 1934." Approved. Letter dated September 6$ 1934, approved by three members of the Board, to Er. Case, Federal Reserve :.gent at the lederal Reserve Bank of New York, reading as follows: "Receipt is ackhowledged of lir. Dillistin's letter of August 28, 1964, inclosin:-,; correspondence between him and Er. Edward J. '::ood, regarding the latter's application under the Provisions of section 32 of the Banking Act of 1933 for a permit to serve at the same time as director of The Owego National Bank, Owego, New York, and as director of P. W. Brooks 8: Co., Inc., New York, New York. . "Although the application covered 1:1r. Y;ood's service as director' of P. W. Brooks Co., Inc., it appears from the cor, r r espondence that he is not serving as a director of that company. ihe correspondence raised the question whether he was a 'manager' of that company, but he has explained that he is merely a bond salesman and nothing else, having no voice in the management or control or the business of the company. It also appears that the ccxalpenY does not make loans secured by stock or bond collateral, either in connection with the carrying of margin accounts or Otherwise. Therefore, it appears, on the basis of the information submitted, that Mr. Dillistin's conclusion is correct and that neither section 32 of the Banking Act of 1933 nor section SA Of the Clayton Let are applicable to the relationships in question. "There is inclosed, for your confidential information, a memorandum addressed to the Federal Reserve Board by Ls.. Gough, DeputY Comptroller of the Currency, regarding the relaticnships 2716 9/7/34 -le- "in question." Approved. Letter dated September 6, 1934, approved by three members of the Board, to La'. Case, Federal Reserve Agent at the Federal Reserve Bank of liew York, reading as follows: "Reference is made to your letter of August 13, 1934, regarding the applicability of the Clayton Act to the service of 111 ' , H. Douglas Davis as an officer of The Plainfield Trust Company and as consultant trust officer of The ilainfield lational Bank, both of Plainfield, New Jersey. You state that it is your conclusion, and that of counsel for your bank, that his service should not be regarded as subject to the provisions of the Act, and you ask that the Board advise you of its conclusions. "The letter from. Mr. Davis, dated August 9, 1934, a copy or which you inclosed, states that, as consultant trust officer Of The Plainfield National Bank, Mr. Davis has no authority to pass upon loans or to act as an executive officer, his only duties being advisory; and that he never occupies a desk in the bank or appears there as an active official. In his letter of MAY 26, 1934, a copy of which was also forwarded to the Board, Mr. Davis states that he has never received any salary from The Plainfield National Bank and that the only reason for his appointment as consultant trust officer is that the trust department of the bank is so all as not to warrant the employment of a trust officer, but that The Plainfield Trust Company, being interested as a stockholder in the national bank, wishes the national bank to have a consultant and that his duties as consUltant require possibly one conference a month. "Under the circumstances, it appears that your conclusion is correct and that the provisions of the Clayton Act are not applicable to the relationship in question, since Mr. Davis is not a 'director, officer, or employee' of the national bank within the meaning of that Act." Approved. Letter dated September 6, 1934, approved by three members of the rd, to Mr. Wood, Federal Reserve .,:gent at the Federal Reserve Bank of 13°e ' Louis, reading as follows: "There are inclosed the originals and copies of the Clayton 2717 9/7/34 -19- "Act permits granted to Messrs. Robert Bodes, T. Murray Hill and Emory G. Dent to serve as directors and/or officers of the Citizens National Bank of Bowling Green and the Bowling Green Trust Company, both of Bowling Green, Kentucky. "In considering these applications it tas noted that in answer to ,uestion 8, 2orm 94a, the Bowling Green Trust Company states that it makes loans on local first mortgages and resells them to customers for investments. chile it would appear that the mortgage loans themselves are negotiated rather than collateral trust obligations or participation certificates of any kind, it is possible that this activity may be within the provisions of Section 32 of the Banking Act Of 1933. Please refer to the Board's letter of April 16, 1934 (x-7866), and if the information available to you or Which you may obtain indicates clearly that the sale of mortgage obligations by the trust company does not constitute 'negotiating securities' within the meaning of Section 32, You are authorized to deliver the permits to the respective applicants and copies thereof to the banks concerned. "If you find that the services of these applicants come . within. the provisions of section 32, you are requested to advise them of the requirements of that section and as to the Procedure in making formal application for a Section 32 permit. If, upon consideration of all of the facts involved, with the advice of your counsel, you are unable to determine to your satisfaction the applicability of Section 32 in this case, the Board, upon receipt of full information, will be glad to rule on the natter. In any event, the delivery of the Clayton Act Permits should not be made until it has been determined that the provisions of Section 32 do not apply or the service of the applicants has been brought into conformity with the requirements of that section. Please advise the Board of the action taken in this matter. "It was also noted that the Bowling Green Trust Company appeared to be in poor condition when examined by the Federal Deposit Insurance Corporation as of May 2, 1934. For your confidential information, the report indicated estimated losses (04,700, including securities depreciation'i7,500) and doubtful assets ($10,400) aggregating c,)45,100, as compared With capital 400,000 and surplus, undivided profits and reserves of $16,600. Loans and other real estate classified as slow amounted to 4108,400. The examiners' comments referred to the excessive amount loaned to officers and directors and the fact that the managamemt is left largely in the ht9ds of the vice president, who is described as sincere in his efforts to improve the condition of the bank but severely handicapped because of his owm involved financial condition Which resulted from speculation. "Because of the close affiliation of the two institutions through the directorate and substantially identical stockholders, 27t8 9/7/34 "the problems of one will tend to involve the other. In all the circumstances, the Board felt that it would be Preferable to grant the permits to the applicants in order to avoid any unnecessary misunderstanding in the community which miht prove detrimental to the best interests of the banks involved, but it suggests that you endeavor, in cooperation with the appropriate supervisin;„; authorities, to bring about a closer supervision of the activities of the trust company by its directors and an improvement in its condition. In this connection, it was noted that Er. Max B. Nahm, who is a director of the Zederal deserve Bank of LA. Louis and was granted a Clayton Act permit in January 1934, is one of the interlocking directors between the two banks and it may be that a conference with him concerning the condition of the trust company would be advisable. "If you deliver the permits after ascertaining the status of the applicants with respect to the provisions of :;ection 32 of the Banking Act of 1933, the Board requests that, in connection with your annual review of these pemmits, you report fully with respect to the improvement effected in the condition of the trust company." he permits inclosed in the above letter were as follows: '--°rY G. Dent, for permission to serve at the same time as a director of The Citizens National Bank of Bowling Green, Bowling Green, Kentucky, and as a director of the Bowling Green Irust Company, Bowling Green, Kentucky. 1.1urray Hill, for permission to serve at the same time as a director of The Citizens National Bank of Bowling Green, ,, 31 °771in7, Green, Kentucky, and as a director of the Bowling Green Irust Company, Bowling Green, Kentucky. la"- Robert Rodes, for permission to serve at the same time as director and officer of The Citizens National Bank of Bowling LTIlean, Bowling Green, 1,:entuc,c.y, and as a director and officer °T the Bowling Grecn Trust Company, 13owlim reen, il.entucky. Approved. Letter to NT. Walsh, Federal Reserve r,ent at the Federal Reserve ank of Dallas, reading as follows: "There are inclm,ed the original and copies of a Clayton perait granted to Kr. J. A. Wilkins, 410 Main Street, Houston, , 12 ,e7zas, to serve at the same time as a director of the Houston °Ilanch, I!'ederal Reserve Bank of Dallas, and as director and officer of The State National Bank of Houston, Houston, Texas. "Although 11,r. WilKins included in his application his 3ervice as director and officer of the State National _ecurities 2719 9/7/34 -21- "Company, Houston, Texas, it appears that this concern is primarily a holding company holding title to the banking house of The State National Bank of Houston, and that it does not engage in commercial banking transactions. Inasmuch as it apparently is not a banking institution within the meaning of the Clayton Act, the Board is unable to issue a permit for the applicant's service to that company and, accordingly, its permit covers only his services with the Houston Branch, Federal Reserve Bank of Dallas, and with The State National Bank of Houston, Houston, Texas. "It has been noted, however, from the report of examination of The State National Bank of Houston as at Tanuary 10, 1934, that same of the bills receivable of the State National Securities Company were secured by stock of The State National Bank of Houston. In the circumstances, you are requested to withhold delivery of the Clayton Act permit to Mr. Wilkins until you are satisfied that the State National securities Company no longer makes loans secured by stock or bond collateral or that Mr. Wilkins is complying with the Provisions of section 8A of the Clayton Act. However, if you find that the State National Securities Company makes loans secured by stock or bond collateral, it is suggested that you inform Mr. Valkins Of the provisions of section 8A. As you know, if the State National Securities Company makes sach loans, it would be neces"rY c for him to sever his relation either with the State National oecurities Company or with both the national bank and the Houston Blee'lleh, Federal Reserve Bank of Dallas, in order to comply with the provisions of section 8A. "The statement of condition of the State National Securities Company as of October 25, 1933, submitted with the application, showed that there were included among the company's assets bills receivable of 4105,844.95 and stocks of z;68,877.00. The company's total assets were ;613,519.27, of which A00,000.00 was represented bY the company's equity in the building of The State National Bank Of Houston, While it appears that the provisions of section 32 of the Banking ct of 1933 are not applicable in this case, the Board requests that you make such investigation as is necessary to determine definitely the status of Y.s. -dilkins with respect to the provisions of section 32. "If you find that Mr. ;- :ilkinst service with the national bsnk and the State National Securities Company comes within the provisions of section 32, you are requested to inform him of the requirements of that section and as to the procedure in making forMal application for a section 32 permit. If, upon a consideration Of all of the facts involved, with the advice of your counsel, you are unable to determine to your satisfaction the applicability of 3?eti0n 32 in this case, the Board, upon receipt of full information, will be glad to rule on the matter. In any event, the delivery of the Clayton Act permit should not be made until it has been determined that Mr. Wilkins' service with the above named company and bank does not came within the provisions of 2720 9/7/34 -22- "section 32 or that his service with such institutions has been brought into conformity with the requirements of that section. "It has been noted also from the report of examination Of The State National Bank of Houston as at Tanuary 10, 1934, that the entire capital stock of the State National Securities Company was in the nane of trustees who were holding it for the benefit of shareholders of the bank and that transfer of stock in the bank also transferred ownership of stock in the company. .iipparently the provisions of section 5139 of the Revised Statutes as amended by section 18 of the Banking _let Of 1933 were applicable in this case. "If you find to your satisfaction that the provisions of section 8A of the Clayton Act and section 32 of the Banking Act of 1933 are not applicable to Mr. wilkins and that the provisions of section 5139 of the Revised Statutes as amended have been complied with in connection with the stock of the national bank, you are authorized to transmit the Clayton Act permit to the applicant and copies thereof to the banks concerned. "Please inform the Board of the action taken in these matters." Approved. Letters dated September 6, 1934, approved by three members of the Board, to the respective Federal reserve agents, stating that the Board has given consideration to the following applications for permits 'der the Clayton Act, and that, upon the basis of the information before it, feels that the issuance of the permits applied for would be incompatible with the public interest. Each letter requested the 411`"eht to communicate 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 Aet. Mr. Howard Ewart, for permission to serve at the same time as a director of The First National Bank of Toms River, Tams River, New Jersey, and as a director of the Ocean County Trust Company, Tams River, New Tersey. 2721 9/7/34 -23- 111". W. S. Clark, for permission to serve at the same time as an officer of the First National Bank in Fairmont, rairmont, West Virginia, and as a director of The First Clark National Bank of Northfork, Northfork, West Virginia. A. R. Davis, for permission to serve at the same title as a director and officer of The State National Bank of Garland, Garland, Texas, and as a director of The Citizens National Bank of Denison, Denison, Texas. Approved. Letters to the respective Federal reserve agents, stating that the 13(3azd has given consideration to the following applications for permits ulader the Clayton Act, and that, upon the basis of the information before it,eels that the issuance of the permits applied for would be incomDatible with the public interest. Each letter requested the agent to COTrrm, ca-be to the applicant the Board's position in the matter, and to clvise the Board promptly as to whether the applicant desires to submit 44Y additional data, and, if not, as to what steps he proposes to take 44 Order to conply with the provisions of the Clayton Act. Itr. Mark M. Holmes, for permission to serve at the same time as a director and officer of The Exchange National Bank of 1aan, Olean, New York, and as a director of The Olean Trust 'aumpany, Olean, New York. 2 11-re W. D. Womer, for permission to serve at the same time as a director and officer of The First National Bank of Manhattan, 144A?.attan, Kansas, as a director and officer of The First NE.ttional Bank of Phillipsburg, Phillipsburg, Kansas, and as a dIrector and officer of The First National Bank of Kensington, Xensington, Kansas. T. P. Lee, for permission to serve at the same time as a director and officer of The State National Bank of Houston, HoUston, Texas, and as a director of The Citizens National Bank Of Sour Lake, Sour Lake, Texas. ' Ill"Ford Seale, for permission to serve at the same time as a director of The State Nationsl Bank of Garland, Garland, 2722 9/7/34 -24- Texas, and as a director and officer of The Citizens National Bank of Denison, Denison, Texas. Approved. Letters dated September 5, 1934, approved by three members of the Board, to the respective Federal reserve agents, inclosing the following Clarton. Act permits, and stating in each case that if the agent finds to his satisfaction that the provisions of section 32 of the Banking 2',.ct ccr 19:33 do not apply to the applicant, he is authorized to transmit the ClaYton Act permit to him: Mr. Charles G. Woodward, for permission to serve at the same time as a direc6or of the Hartford National Bank and Trust Company, Hartford, Connecticut, and as a director and officer of The Morris Plan Bank of Hartford, Hartford, Connecticut. Ur. Lafayette E. Hughes, for permission to serve at the same time as a director of The First National Bank of Denver, Denver, Colorado, and as a director of The International Trust Company, Denver, Colorado. Approved. Letter dated September 6, 1934, approved by three members of the Board $ to Mi. Curtiss, Federal Reserve Agent at the Federal Reserve Bank of Bcft4. inclosing the following Clayton Act permits for transmission to the a pplicants, suggesting that the agent advise Messrs. Washburn, Converse and Smith that it is with the expectation that they will improve their a ttendance at directors, meetings that the permits have been granted; Wad requesting that, when the agent submits his recommendations as a result °t his annUal review of the permits, he report fully as to the attendance directors' meetings of the three directors named: 121. MY/10n F. Converse, for permission to serve at the same time as a director of The Mechanics National Bank of Worcester, Worcester, Massachusetts, and as a director and officer of The "°reester Morris Plan Company, Worcester, Massachusetts. 2723 9/7/34 -25- la' S. A. Ellsworth, for permission to serve at the same time aS an officer of The Mechanics National Bank of Worcester, dorcester, Massachusetts, and as a director of The Worcester Morris Plan Company, Worcester, Massachusetts. U1'. Frank C. Smith, Tr., for pemission to serve at the same time as a director of The Mechanics National Bank of Worcester, Worcester, Massachusetts, and as a director of The Worcester Morris Plan Company, Worcester, Massachusetts. Mr. Frederic B. Washburn, for permission to serve at the same time as a director and officer of The Mechanics National Bank 01 Worcester, Worcester, Massachusetts, and as a director of The Worcester Morris Plan Company, Worcester, Massachusetts. Approved. Letter to Mr. Case, Federal Reserve Agent at the Federal Reserve 1144k"New York, inclosing the following Clayton Act permit, and stating that if the agent finds to his satisfaction that the provisions of section 32 of the Banking Act of 1933 are not applicable to the applicant, the ent is authorized to transmit the Clayton Act permit to him: Mr 'Wm. A. Dusenbury, for permission to serve at the same time as a director and officer of The First National Bank of Olean, Olean, New York, and as a director of The Olean Trust Company Of Olean, Olean, New York. Approved. Letter dated September 6, 1934, approved by three members of the to Mr. Austin, Federal Reserve Agent at the Federal Reserve Bank or Philadelphia, inclosing the following Clayton Act permit for trans- 11118810A to the applicant; suggesting that the agent advise the applicant that it .3 i with the expectation that he will improve his attendance at cill'ectorat meetings of the Barnesboro bank that the permit has been '1'411tacl; and requesting that, when the agent subnits his recommendation 48 a l'esult of his annual review of the permit, he report fully as to the 64)13licalit'3 attendance at directors' meetings, and as to the progress 2724 9/7/34 -26- Made in eliminating or adequately securing his criticized line of credit with the Farmers & Merchants Bank of Cherry Tree: 1.1r. M. I. Leadbetter, for permission to serve at the same time as a director of The First National Bank of Barnesboro, Barnesb°1"01 Pennsylvania, and as a director of the Farmers & Merchants Bank of Cherry Tree, Cherry Tree, Pennsylvania. Approved. Letter dated September 6, 1934, approved by three members of the Beard., to Ur. Hoxton, Federal Reserve Agent at the Federal Reserve Bank °t Richmond, inclosing the following Clayton Act permit, and stating that It the agent finds to his satisfaction that the provisions of section 32 °I' the Banking Act of 1933 are not applicable to the applicant, he is e'llthorized to transmit the Clayton Act permit to him. The letter also that it is desired that the agent inform the aprlicant that it is With the expectation that he will improve his attendance at directors' ttleet14gs of the Holly Hill bank that the permit has been granted, and requested that, if the permit is delivered, the agent report fully when he slIbmits his recommendation as a result of his annual review of the 1)ellalit as to the applicant's attendance at directors' meetings during 1934: Robert Lide, for permission to serve at the same time as a director and officer of the Arst National Bank in Orangeburg, Oraageburg, South Carolina, and as a director of Ale First National Bank of Holly Hill, Holly Hill, South Carolina. Letter to Mr. McClure, Federal Reserve Agent at the Federal ReBank of Kansas City, inclosing the following Clayton Act permit transmission to the applicant; suggesting that the agent advise the 1313licant of the Board's views as expressed in the letter with regard to 2725 9/7/34 -27- attendance at directors' meetings; and requesting that, when he submits his recomendation as a result of his annual reviewo-z the permit, he ePort fully as to the applicant's attendance at directors' meetings and he rnanner in which he has discharged his duties as director. ,ranA: h. Connor, for permission to serve at the same time aS a director of The Stock 'C-rowers National Bank of Cheyenne, Cheyenne, yaming, as a director of The Farmers National Dank of Central City, central City, lebraska, and as a director of the Butte county dank, Belle lourche, South Dakota. Approved. Letkr to r. LeClure, Federal Reserve _Lgent at the 2ederal ie- serve Ja2L co' Kansas City, irlelosing the following Clayton .1ct permit for trans ission to the apolicant, and suggesting that the agent endeavor, in c°ePeration with the appropriate supervisory authorities to brim; about an iilli vement in the condition and management of the Central National Bank. The letter also requested that when the agent submits his recommendation as n result Of his annual review of the permit, he report fully as to the 13z‘()el ' ess Itade in bringing about an improvement in the condition and managelent of the national bank: C. Jellison, for permission to serve at the same tine as .d1/"ector and officer of The Central National Bank of Junction Junction City, Kansas, as a director and officer of the '2:1,son State Bank, 7Alson, Kansas, and as a director and officer Ile Bank of Holyrood, :olyrood, Kansas. 4proved. Letters dated September 5, l93, appoved by three members of the t0 applicants for thel permits under the Clayton .ct, advising of approval r applications as follows: ;rvlgeo E. Bird, for permission to serve at the same time as director of The National Bank of Commerce of ilew London, New 11c1°n, (jonnecticut, and as a director of The Morris hlcn Bank I i lartford, Hartford, Connecticut. „ 2726 9/7/34 -28- " la G. F. Lloyd, for permission to serve at the same time as a director and officer of the Monongahela Trust Company, Homestead, PsnasYlvania, as a director and officer of The First National Bank Of Homestead, Homestead, Pennsylvania, and as a director and officer of The Hays National Bank, Hays, Pennsylvania. 14.1". W. C. McClure, for permission to serve at the same time as an officer of the Monongahela Trust Company, Homestead, Pennsylvania, and as a director and officer of The Hays National Bank, nays, Pennsylvania. Harvey Perin, for permission to serve at the same time as a director and officer of The Amelia State Bank, Amelia, Ohio, and as a director of The New Richmond National Bank, New Richmond, Ohio. 14'2"' 11. E. Sheets, for permission to serve at the same time as a director and officer of The Shelby County Bank, Botkins, Ohio, aad as a director of The First National Bank of Wapakoneta, WaPakoneta, Ohio. 14-1. 1 Arthur V. Brown, for permission to serve at the same time as a director and officer of The Indiana National Bank of Indiana,, )°1 .-1s, Indianapolis, Indiana, as a director and officer of The uttlon Trust Company of Indianapolis, Indianapolis, Indiana, alld as a director and officer of The Union Trust Ioint Stock Land Bank, Indianapolis, Indiana. !" 1 W. N. W.Blayney, for permission to serve at the same time .7."8 a director of The First National Bank of Denver, Denver, Colorado, and as a director of The International Trust Company, Denver, Colorado. 1 ,11. Sohn Evans, for permission to serve at the same time as a ! 0 irector tor and officer of The First National Bank of Denver, Denver, and as a director and officer of The International Campany, Denver, Colorado. direc S. Campbell, for permission to serve at the same time as !director of the First National Bank in Mitchell, Mitchell, illiebraakas and as a director of the First National Bank in Morrill, '°rrill, Nebraska. Mr. IT C. Karpf, for permission to serve at the same time as an c'''ticar of the First National Bank in Mitchell, Mitchell, Nebraska, !1, C1 as a director and officer of the First National Bank in Morrill, Nebraska. Mr. Vi dire:W. Newell, for permission to serve at the same time as a t0 alga of the First National Bank in Mitchell, Mitchell, Nebraska, as a director of the First National Bank in Morrill, Morrill, Nebraska. 2727 9/7/34 -29.- " 11 M. B. quivey, for permission to serve at the same time as a director and officer of the First National Bank in Mitchell, Nebraska, and as a director of the First National Bank in Morrill, Morrill, Nebraska. Mr. X. L. Sandford, for permission to serve at the same time as a director and officer of the First National Bank in Mitchell, Mitchell, Nebraska, and as a director of the First National Bank 1.13. Morriij., Morrill, Nebraska. 112'.H. M. Springer, for permission to serve at the sane time as a director of the First National Bank in Mitchell, Mitchell, Uabraska, and as a director and officer of the First Nationni Bank in Morrill, Morrill, Nebraska. Mr. -- E. A. Duff, for permission to serve at the same time as a director and officer of The First National Bank of Syracuse, Syracuse, Nebraska, as a director and officer of The First National Bank of Unadilla, Unadilla, Nebraska, and as a director Of The United States National Bank of Omaha naha, Nebraska. R. A. Duff, for permission to serve at the same time as a director of The First National Bank of Syracuse, Syracuse, N.e -raska, and as a director and officer of The First National Bank of Unadilla, Unadilla, Nebraska. T. H. Wake, for permission to serve at the same time as a director and officer of The Tones,National Bank of Seward, Seward, Nebraska, and as a director and officer of the Goehner State Bank, Goehner, Nebraska. 101* n M. Kasling, for permission to serve at the same time as director and officer of The First National Bank of Hughes , nri, -'"gss Hughes Springs, Texas, and as a director and officer The First National Bank of Linden, Linden, Texas. Mr 1,, M. M. Roberts, for permission to serve at the same time as a dir ector and officer of The First National Bank of .Arkland, 111t1d i[ashington, as a director and officer of The First ,,;--aaJ- Bank of Redmond, Redmond, Washington, and as a director l d.officer of the attonville State Bank, Eatonville, ;lashington. Clayton A. Shinstram, as a director and officer Xirkland, Ashington and Natio na-4 Bank of Redmond, for permission to serve at the same time of The First National Bank of Kirkland, as a director and officer of The First Redmond, Jashington. Helen Shinstram, for permission to serve at the same time a director of The First National Bank of Kirkland, Kirkland, Renillgton, and as a director of The First National Bank of Redmond, e`'w(Ind, Washington. 2728 9/7/34 -30- Mr. Tames P. Water, for permission to serve at the same time as a.director and officer of The First National Bank of Kirkland, 4irkland, Washington, and as a director of The First National Bank of Redmond, Redmond, Washington. Ihre W. H. Tucker, for permission to serve at the same time as 1!.,,n officer of The National Bank of Commerce of Seattle, Seattle, Wasaington, and as a director and officer of The First National Bank of Coamopolis, Coamopolis, Washington. Approved. Letters dated September 6, 1934, approved by three members of the c)4rds to applicants for permits under the Clayton Act, advising of 13'13131loral of their applications as follows: Mr° Irving H. Chase, for permission to serve at the same time as director and officer of the Norris Plan Bank of Waterbury, ;laterbury, Connecticut, as a director of The New Haven Bank, National Banking Association, New Haven, Connecticut, and as a director and officer of The Waterbury National Bank, Waterbury, Co nnecticut. la% Chase Kimball, for permission to serve at the same time as a director of The Morris i'lan Bank of Waterbury, Waterbury, Connecticut, and as an officer of The Waterbury National Bank, aterbury, Co nnecticut. 141'. Alexander J. Thomson, for permission to serve at the same time as a director and officer of The Waterbury National Bank, daterbury, cin necticut, and as a director of The Norris Flan Bank of daterbury, Waterbury, Connecticut. Lir 41„ "4-"Llam F. Birch, for permission to serve at the same time as director and officer of The National Union Bank of Dover, Dover, New Jersey, and as a director and officer of the American Trust ' 4"PanY, L:orristown, New Jersey. , Leon Budd, for permission to serve at the same time as a r,lrector of The Farmers and /jechanics National Bank of Woodbury, .(,)30dbury, New Jersey, and as a director of the V;oodbury Trust 441anY, Woodbury, New Yersey. L:r. ' 14und H. Carpenter, for permission to serve at the same time a,4 director of The cirmers and Lechanics National Bank of ,,00dbury, 0 .1rY, New Jersey, and as a director of the Woodbury Trust 0,°d111 ' 111PanY, ;loodbury, New Jersey. 2729 9/7/34 -31- Mr. Ellison H. avis, for permission to serve at the same time as a director and officer of The First National Bank of Westville, Westville, New Jersey, as a director and officer of the Woodbury Trust Company, Woodbury, New Jersey, and as a director and officer of The Farmers and Llechanics National Bank of f;oodbury, 'Aodbury, New Jersey. Mr. 'William H. Hartman, for permission to serve at the same time as a director of The Peoples National Bank and Trust Company of Pemberton, Pemberton, New jersey, and as a director of the Woodbury Trust Company, Woodbury, New jersey. 11F. James C. Henry, for permission to serve at the same time as a director or The Farmers and lechanics National Bank of '.00dbury, „oodbury, New Jersey, and as a director of the Woodbury Trust Campany, Woodbury, New Jersey. ,LdGar Hurff, for permission to serve at the same time as a director and officer or The Swedesboro National Bank, 3wedesboro, .71.s17 jersey, and as a director of the Aodbury Trust Company, .00dbury, New jersey. lir. George B. LArshall, for permission to serve at the same time as a director and officer of The First National Bank of Glassboro, Glassboro, New Jersey, and as a director of the Woodbury Trust Company, Woodbury, New Jersey. Mx'. David 0. .atkins, for permission to serve at the same time as ! director and officer of the Woodbury Trust Company, Woodbury, 1,,e17 Jersey, and as a director and officer of The Farmers and Mechanics National Bank of Woodbury, Woodbury, New jersey. 14"Geo. W. Himes, for permission to serve at the same time as director and officer of The Peoples National Bank of LAiippensburg, Shippensburg, Pennsylvania, and as a director of the Carlisle Trust company, Carlisle, Pennsylvania. " hl R. C. S. Davis, for permission to serve at the same time as director of the First National Bank in Henderson, Henderson, North Carolina, and as a director and d'ficer of the Industrial Baak of Henderson, Henderson, North Carolina. " 11 S. R. Watson, for permission to serve at the same time as ! director and officer of The Industrial Bank of Henderson, tienderson, North Carolina, and as a director of the First National " 11/ Lak in Henderson, Henderson, North Carolina. Mr. i• W. Bull, for permission to serve at the same time as a '!irector of The First National Bank of Holly Hill, Holly Bill, "uth Carolina, and as a director of The Southern National Bank 2730 9/7/34 -32- of Oranceburg, Granceburg, South Carolina. • S. S. McCoy, for permission to serve at the same time as a director of The First National Bank of Holly H111, Holly Rill, South Carolina, and as a director and officer of the Farmers & Merchants Bank, Holly Hill, South Carolina. Approved. Letters to applicants for permits under the Clayton Act, advisor approval of their applications as follows: Ur. Cyrus H. Sears, for permission to serve at the same time as an officer of the Harpster Bank Unincorporated, Narpster, Ohio, and as a director of The First National Bank of Upper Sandusky, Upper Sandusky, Ohio. Llr• E. C. : ( right, for permission to serve at the same time as a director and officer of The First 1:ational Bank of Newark, Newark, Ohio, and as a director of The First National Bank of Utica, Utica, Ohio. 1411. W. B. Reed, for permission to serve at the same time as a d!,rector and officer of The Farmers National Bank of Central City, Central City, Nebraska, and as a director and officer of the Palmerk State Bank, Palmer, Nebraska. 111"*.E. i. Rolfs, for permission to serve at the same time as a director and officer of The Central National Bank of Junction CitY, Junction City, Kansas, and as a director of The Bank of Rolyrood, Holyrood, Kansas. L. Stuart, for permission to serve at the same tine as a director and officer of The Shattuck National Bank, Shattuck, °klahama, and as a director and officer of The First National Bank of Laverne, Laverne, Oklahoma. 111'• I. Stuart, a director of The eIld as a director Laverne, Laverne, for permission to serve at the same time as Shattuck national Bank, Shattuck, Oklahoma, and officer of The First National Bank of Oklahoma. "s E. Stuart, for permission to serve at the same time as a director and officer of The Shattuck National Bank, Shattuck, ?Iclahoma, as a director and officer of The First National Bank Laverne, Laverne, Oklahoma, and as a director and officer of The Follett National Bank, Follett, Texas. P A4 ' 4* H. Warner, for permission to serve at the same time as a "-Lrector and officer of The First National Bank of Kensington, 2731 9/7/34 -33Kensington, Kansas, and as a director of The First National Bank of Phillipsburg, Phillipsburg, Kansas. 11r' I. B. Harrell, for permission to serve at the same time as a director and officer of The First National Bank of Celeste, Celeste, Texas, and as a director of the Citizens State Bank of Greenville, Greenville, Texas. 141's I. H. Phelan, for permission to serve at the same time as a director of The First National Bank of Beaumont, Beaumont, Texas, Tad as a director of The Citizens National Bank of Sour Lake, 0our Lake, Texas. T. F. Rothwell, for permission to serve at the same time as a director of The First National Bank of Beaumont, Beaumont, Texas, and as a director and officer of The Citizens National Bank of Sour Lake, Sour Lake, Texas. Approved. There were then presented the following applications for changes 14 stock of Federal reserve banks: ,,laication for ORIGINAL Stock: ulstrict No. 11 SilYcler National Bank, S4Ydsr, Texas Shares 75 75 lications for ADDITIONAL Stock: Sallrord Trust , Campany, Sanford, Maine LiaotIcester Safe Deposit and Trust • ecimPanY, Gloucester, Nassachusetts hrst National Bank of Webster, Webster, T40 Indian Massachusetts Head National Bank of Nashua, Nashua, New The Hampshire Wilton national Bank, Wilton., New Hampshire District No. 5' l'eop„,les Savings Bank and Trust Company, 111, 411nlingtOns North Carolina "e Ballk of Halifax, mjialirax, Virginia wha Banking ,,,, and Trust Company, Charleston, West Virginia Bank of Romney, RQM4sY, lest Virginia 78 15 45 60 15 213 2 1 60 30 93 2732 9/7/34 -34- A l ications for ADDITIO= Stock: (Continued) No. 6: The CommeT6Thrliational Bank and Trust C°1aPanY of Laurel, Laurel, Mississippi District No. ?. .Z7riairIiiiiiriria-Trust Company, TheZmaston, Illinois First National Bank of Batesville, Batesville, Indiana The First National Bank of Bloomington, Blooming, Indiana hi:Ile/lean National Bank at Indianapolis, Indiana The Indianapolis, Manufacturers National Bank of Detroit, Detroit, Michigan Shares 30 30 150 6 6 96 300 558 The Bank of Bagley, „ 13agleY, Minnesota suae First National Bank of Keewatin, ICeewatin, Minnesota -Lae Farmers and Merchants National Bank m, of Minneota, Linneota, Iinnesota d ate Cotmercial Bank, Me nominee, Michigan District No. 10. The First National Bank of Overbrook, TheOverbrook, Kansas First National Bank of Parsons, Parsons, 'Kansas The Fidelity National Bank of Oklahoma City, Oklahoma City, Oklahoma brmi ,stri ot -Peolples 9 12 9 12 42 a 24 90 Total 122 1,058 for SURRMT DER of Stock: 1:ationa1 Bank of Warrenton, :larrenton, Virginia bistrict "1.4u. 7• Caledonia National Bank, C4led°111a, Stat e r".„ Illinois m ,,culic of Croswell, ‘iroswell, Michigan 43 43 20 31 51 2733 9/7/34 -3;3- • Z.p .Lieations for SURRENDER of Stock: (Continued) 140. 10. The ilirst VatioiDial Bank of Lyndon, LYndon, Kansas Shares 21 Total 4proved. Thereupon the meetim: adjourned. A pproved:
@FedFRASER