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145 A special meettng of the Federal Reserve Board was held in the office Of the Federal Reserve Board. on Thursday, September 9, 1926 at 10:00 a.m. PIESEUT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. McIntosh Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Mr. Wyatt, General Counsel Mr. Vest, Asst. Counsel The meeting was held in accordance with the resolution adopted by the Padoral Reserve Board on June 9, 1926, directing Mr. Joseph L. Campbell, Deputy Governor of the Federal Reserve Bank of Atlanta to appear before the Board on June 16th to show cause why he should not be removed from Office, pursuant to the provisions of Section 11 (f) of the Federal Reserve Aet• Several postponements of the hearing have occurred, until at the meet- Of the Board's Executive Committee on Aug.1st 24th this date was fixed. In addition to 11r. Campbell, and his Counsel, Mr. 71. S. Howard, there were also present Messrs. E. R. Black, G. G. Ware and. E. C. Melvin, directors Of the Federal Reserve Bank of Atlanta and members of a Special Investigating actaraittee appointed by that. Board, who, after a confereme with the Federal liesez'v'e Board on June 16, 1926, were invited to sit with the Board in this hearing. There was also present Mr. T. A. Embrey, a director of the Nashville 13ralach of the Federal Reserve Bank of Atlanta, vho during the hearing was illt roduced as a witness for Mr. Campbell. A stenographic report was made of the proceedings,which report is niacle a part of the records of the Federal Reserve Board. 9/9/26 -2- At 1:10 p.m. the moetinr; recessed and reconvened at 2:30 p.m. attended by all parties present at the morning session with the exception of Vest, Assistant Counsel of the Board. At about 3:40 p.m., ::essrs. Campbell, Howard, 31ack, .:are and 11111brey (toEpther with the official stenographer) withdrew from the room and. the Board went into regular session to consider a request made by Lir. Black that the Committee of the Federal Aeserve Bank of Atlanta be furnished the illformation upon which the Board is Drocced.ing against Lr. Black baseu his request upon statements made by certain members of the Board at the Conference with the Atlanta Committee on June 16, 1926. . General Counsel, submitted copies Viyatt, the !6eard's files which contain the Board's of various documents in the infomation upon which the Board is proceeding against 1:r. Campbell. .hereupon ensued a discussion as to whether or not the inforCampbell, mation should be furnished to the Committee and to opinions to individual during which members of the Board expressed conference June 16th the effect that the statements made at the constituted an tmpliod obligation on the )oard to furnish the informat ion, and others expressed the opinion that the documents submitted by the Board's Counsel should not be furnished except in confidence. Hamlin stated for the record that while he recognized that the Federal _:eserve _et did not require the Federal Reserve Board to furnish information uoon which it might base removal proceedings, he himself would not vote for the removal of any Federal 2eserve bank official unless that official had first been fully acquainted with the charges against him and been :iven an opportunity to answer same. iollowtng the discussion, Mr. Black was invited back into the meeting, and in the presence of the official stenographer, discussed with the members of the 3oard his request, the reasons and the use which would be made of the information the desired if furnished to the Committee, following which both he and tne stenographer afrain retired from the room. 147 9/9/26 -3_ Black's request, Mr. After further discussion of suggested that if the Board decided to furnish the information desired to the Atlanta Committee and Mr. Campbell, it be given them with a statement, which after consideration was revised to read as follows: "With respect to the request which Mr. Black has made on behalf of the investigating committee of the Federal 2eserve Bank of Atlanta in the case of 1:r. Joseph L. Campbell, Deputy LTovernor of that bank, for the information on which the :ioard is proceeding against Mr. ‘Campbell, it is the opinion of the Board that there is nothing in the Federal :Ieserve _ct that requires that the Board should furnish the information upon which it may reach the conclusion that an officer of a Federal _leserve iank should be removed. The law requires only that the Board in making a removal shall state the cause of removal. It is the opinion of the Board that if it were to establish the practice of furnishing the information upon which it may reach the conclusion that an officer should be removed, it would result in a serious embarrassment of the power of the Board in a matter in which the Federal lieserve Act intended that the .Doard should be free to use its best judgment. "At the same time, the 'Board recognizes that an implied obligation to furnish the information in the Campbell case to the investi-,ating committee of the Federal Reserve Bank of Atlanta and to Mr. Campbell may fairly oe said to have groan out of statements made by members of the Board at the Black referred at the June 16th conference, to which hearing yesterday afternoon. "In view of the fact that the Federal deserve Bank of Atlanta has aTpointed a committee to investigate the conduct campbell, the Board is willinT to 3:ermit the investiof gating committee and. Mr. Campbell to examine the documents containing the information on which the soard is Proceeding, with the understanding that the committee and. 1::r. Campbell will agree to regard and treat the documents and information contained therein as confidential and privileged and to be used only in connection with the investigation being conducted oy he committee and any statements which 1:r. Campbell may submit to said committee." During the discussion of the above, 1*.r. McIntosh left the roam. At the conclusion of the discussion, Mr. Hamlin moved that a meetirc of the Board be held tomorrow 148 9/9/26 -4- morning at 10:30 a.m., attended by the Atlanta uoramittee, Mr. Campbell and. his Counsel, and that a stateraent along the lines of the above, with such minor revisions as may be suggested by the Goveraor, be read by the Governor, and, that if the conditions set iorth in the statement were accepted by the Atlanta Committee and. Mr. Campbell, they be furnished with the information upon which the Board is proceeding against Mr. uampbell. Mr. Hamlin,s motion being it by the Chair, was carried., Mr. Miller not voting. It was then voted that 10:"00 tomorrow morning, the regular session to consider above statement which might UovernD r. The meeting adjourned at 5:55 p.m. APProved: A A beiore the meeting at Board should met in any revisions of the be suggested by the
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