19280709_Minutes.pdf

Ameeting of the Executive Committee of the Federal Reserve

Board was held in the office of the Vice Governor on Monday, July 9,

1928, at 12 o!clock noon.

PRESENT: Vice Governor PlattMr. MillerMr. JamesMr. Eddy, SecretaryMr. Noell, Assistant Secretary.

Letters dated June 28th and July 5th from the Secretary of the

Federal Reserve Bank of New York, and telegrams dated July 5th from the

Chairman of the Federal Reserve Bank of Philadelphia; July 6th from the

Secretary of the Federal Reserve Bank of Cleveland; July 6th from the

Secretary of the Federal Reserve Bank of St. Louis; June 29th from the

Secretary of the Federal Reserve Bank of Kansas City; advising that the

Boards of Directors at meetings on the dates mentioned, made no changes

In the banks' existing schedules of rates of discount and purchase.

Without objection, noted with approval.

Telegram dated July 6th from the Chairman of the Federal Reserve

Bank of San Francisco, advising that due to lack of a quorum, no meeting

of the directors was held on JjAly 5th.

Noted.

The Secretary stated that the Comptroller of the Currency on

July 3rd called upon all national banks and all banks in the District

of Columbia for reports of condition as of the close of business

Saturday, June 30, 1928, and reported that at the same time a call was

made for reports of condition of State member banks as of the same date.

Upon motion, the call made upon State member

banks was approved.

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The Secretary called attention to the fact that the term of Mr.

Miller as member of the Executive Committee expired June 30, 1928, and

accordingly Mr. James was designated to serve on the Committee for the

quarter ending September 30, 1928.

Letters dated June 27th, June 28th and July 6th from the Comntroller

of the Currency, approved by the Executive CmImittee, recommending increases

in the salaries of national bank examiners as follows:

Chief National Bank Examiners

Name Present Salary Pronosed Salary

F. D. Williams $10,000 $12,000A. P. Leyburn 8,000 10,000W. P. Folger 10,000 12,000Ellis D. Robb 10,000 11,000B. K. Patterson 12,000 13,000T. E. Harris 14,000 15,000

R. M. HodgsonC. F. SmithA. M. StewartC. F. WilsonC. J. MachleidL. A. SheaR. F. SmithCecil AshwoodH. B. DavenportW. P. FunstenF. J. McGinnisF. T. RansomA. W. GreenT. M. GreeneMichael J. HurleyF. J. RyanB. J. BleakleyR. W. ByersA. A. ClarkeI. j. FultonJ. S. McKeeG. H. SmithL. SwensenJ. L. BaileyT. D. Carson

National Bank Examiners

8,000 8,5008,000 8,5004,200 4,5004,200 4,5003,300 3,5003,300 3,5003,900 4,0003,000 3,3005,500 5,8004,800 5,0003,000 3,3005,000 5,5003,300 3,6003,600 3,9004,200 4,5004,200 4,8003,000 3,3005,400 6,0003,000 3,3005,000 5,6004,500 4,8004,500 4,8003,900 4,2003,300 3,900

5,500 6,000


7/9/28 -3-

National Bank Examiners (Continued)

Name Present Salary Pro-oosed Salary

T. H. DavisC. Tr. GreenC. W. HotterF. C. OckershausenA. A. BadhamT. J. CottinghamC. J. Evans

$4,2003,3003,0003,0004,2004,8004,500

$4,5003,9003,3003,3004,5005,1004,800

W. M. Lammond 4,500 4,700W. P. Lifsey 4,000 4,200J. B. Luiken 4,000 4,200H. S. French 3,500 3,900H. R. Fuller 3,300 3,600E. G. Harwood 3,300 3,600F. L. King 3,900 4,200H. A. Laird 3,500 3,900E. 7. Moon 5,900 6,400H. F. Quinn 2,700 3,000J. L. Sanders 3,300 3,600H. 11'. Schmidt 3,000 3,500R. K. Stuart 5,700 6,200Wm. Taylor 4,500 5,000H. W. Walker 5,100 5,400J. F. Wanberg 4,600 5,000V. J. Wilson 3,800 4,100I. D.Wright 6,300 6,700H. B. Gilbert 4,000 4,200L. R. Elkins 3,300 3,600E. A. Von Arb 3,300 3,600O. A. Anderson 3,900 4,200J. M. Dougherty 2,700 3,300P. E. Hoover 3,900 4,200W. F. Huck 3,300 3,600W. J. Penningroth 3,000 3,600L. H. Sedlacek 3,300 3,600H. Sevison 3,900 4,200L. T. Stevens 3,600 3,900E. F. Allen 3,600 3,900E. J. Becker 3,000 3,300G. H. Campbell 5,000 5,400R. B. Hewitt 3,900 4,200Cecil Lyon 2,500 2,700F. S. Nelson 3,000 3,300M. A. Ross 3,600 3,900O. W. White 4,500 4,800G. C. Hedrick 4,200 4,500E. Lamb 5,400 5,700


7/9/28

Tame

-4-

Uational Bank Examiners (Continued)

Present Salary Salary

71. L. Sibley J,,70J , ,'.2.2,500

.,90.047. no Whitehurst 2,700G. S. Coffin 4,500 5,000R. F. La= 4,800 5,000O. O. Linden 2,400 2,700C. H. LIcLean 3,500 3,900L. L. nadland 5,300 5,000C. E. Morgan 2,700 3,000A. E. Price 3,000 3,300Leo Shopirer 3,000 3,3000. C. Taylor 2,700 3,000

Upon motion, the increases recommended wereapproved.

Memorandx2, dated July 5th from the Director of the Division of Research

and Statistics, reco=endinr, the permanent a- oint::.ent of 7illiam A. Kline as

messenc;er in ti1J,t. Division; the memorandum also statinc; that r. Kline is now

under a three months appointment at $75.00 per month.

A)oroved.

The Secretary stated that under authority ,-;ranted "-dm at the meeting on

July 2nd, he had employed r. C. J. Buettner as vacation relief messenger boy

in the Board's telecraph office for two months at a salary of $75.00 per month.

Aproved.

!lemorandum from the ;Secretor:- statinc that . Oscar Stutler, who has

been employed on the nicht force of the Gold Settlement Fand has requested that

he be relieved of his regular assignment, on account of his health, and. b- al-

loi-ed to serve as extra man for emergency work only, the Secretary recomnending

that his name be continued on our roll for this -yar oso; and also recommending

that r. 21:aer M. Strang, Jr., be employed as typist to take up the regular


7/9/28 -5-

work from which Hr. Stutler will be removed on the sae per die:i basis as

that naid Hr. Statler.

Approved.

Re2ort of the Committee on Salaries and Expenditures on letter dated

June 26th from the Chad= n.of the Federal Reserve Bank of New York reltive

to three weeks leave of absence with P.77 on account of illness for Ur. J. W.

Jones, Assistant Deputy Governor of the Federal Reserve Bank of New York.

Anproved.

Reort of Committee on Salaries and 'Expenditures on letter dated

June 29th from Deputy G-overnor Rounds of the Federal Reserve Bank of :ew

York, transmitting a renort for a)proval of the Board containing reco.a on-

dations for the promotion in grade of e.m,loyees to nositions Where the

grade is in excess of ,342,500 ner annum, such changes to he effective June

1, 1928.

Upon motion, the recommendation of the Co:,:littee

was 'approved..

Memorandum dated June 7th from the Cointrollor of the aarrency

recommending approval of an apdication of the First :atio=1 7cak of

Kinston, North Carolina, for permission to reduce its capital from

$250,000 to $125,000 on condition that no money be returned to the share-

holders, but that doubtful assets and losses as shown by the last report

of examination be eliminated, that the difference between the amount of

losses and doubtful aper yritten off and the amount of the reduction,

with the unanimous vote of the shareholders, be carried to surplus, and

that with the unanimous vote of the shareholders the amount of doubtful

paper and losses written off the redaction he turned back to the hank

as its property.

An',roved.


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Heorandum from Counsel dated June 28th submitting drafts of

letters to Mr. Joe Ledbetter and Hr. Ben Hays, both of St. Louis, Missouri,

advising them of the Board's refusal of their Clayton Act applications in-

volving the Grand Uational Bank of St. Louis and the First National Bank

of Clayton, Missouri.

Upon motion, the drafts of letters 1:ereapproved.

Memorandum from Counsel, dated July 6th, approved by the Law

CorlAttee, with reference to the Clayton Act application of T.

Shelton for permission to serve at the some time as director of the

7irst :ational Bank and as director of the American Trast Company, both

of Clicrlotte, :orth Carolina, which a, aication was referred to the

Federal Reserve Agent at Richmond on June 26th. Counsel stated in his

memorandum that advice has now been received from the Agent at Richmond

'to the effect that in his opinion it would not be incompatible with the

public interest for the Board to a:prove Shelton's awlication and that

he recommends that the application be granted.

Agoroved.

Memorandum from Counsel, dated June 11th, approved by the Law

Committee, with reference to and recommending aDnroval of the Clayton Act

application of !Ir. Ray ::orris involving the Bank of Uew York & Trust Company

and the Grace :ational Bank, all of 17ew York City.

.;,?roved.

Memorandum from Counsel, dated July 2nd, transmitting application

of the National City Bank of New York for permission to establish branches

in Armenia, Barranquilla, Togota, Buenaventura, Cali, Cartagena, Manizales,


iJ-

7/9/28 -7-

::edellin and Pereria, Relic of Colombia.

After discussion, upon motion it was voted to refer

the above a)nlict,tion to the Co)troller of the Currency

and to the nairman of the Federal Reserve Bank of :ew

York for an ex)ression of their views as to the -propriety

of the Board a-,,)rovin .,:. the application.

or:n(ltrn from Counsel, dated. June 30th, trans7ittinn: letter from the

First Federal Foreign Investment Tract asking the Foard's a-)2roval of an

s.iendment to its articles of association increasing the number of its Board

of Directors from seven to fifteen 1.1anbers; Counsel stating that a-narently

t*Irou an oversight this amendment has not heretofore been suirAtted to

the Federal Reserve loard for a))roval and that his office sees no legal

reason why a2)roval s'Iould not be granted.

A.2.-)roved.

Letter dated July 5th from the Chair=n of the Federal Reserve Bank

of Philadelphia, requesting the Board's approval of an increase in the

salary of Mr. E. C. Hill, Assistant Federal Reserve Agent in charge of the

Dert...-.ent of Bank Examinations, frorr. $7,000 to $8,000 per annum.

U)on motion, it was voted to defer action until

Governor Young s return.

ne.nor,7ild-,-,,:i from Counsel, dated June 28th, oivising the Board that

the office of the United States Attorhey of the District of Columbia had

advised him that Justice Stafford on June 2uth signed. an order diailissing

the petition in the case brought against the Board on behalf of the

organizers of the proposed United States Foreign Financing Cor)o=tion,

which is a suit to :.irtndarzas the Federal Reserve Board to ayorove the orni-

zation papers of a )ro)osed Edge Cor)oration; Counsel stating that the order

of the court is an out and out victory for the federal Reserve Board in the

case in the trial court, but that it is anticipated an appeal will be made.

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Memorandum from Counsel, dated July 7th, submitting letter from

the Vice President of the First Federal Foreign Investment Trust in

ly to the Board's letter of June llth stating that they are not con-

C.acting a branch office in Havana but nave only aploointed a man the to

act as representative for them and to exercise only certain limited

powe s in their behelf, such as checkin: credit infornation, examining

collateral La Ee eral acting ps a channel of conriunication between

their rew Yorh office cn: _prospective or actual clients in 7avana. Counsel

elso aubmitted drr -ft of reply to the First Federpl Forei,sn Investment

Trust sta'Gine, that under the regulatio s, therefore, the Board's approval

is not necessary in this case.

'non motion, the draft of reply was a:-.)_proved..

Letter dated. June 25th, from the Governor of the Bank of hence,17

addressed. to Cover nor Young, confirmin his telegraIa of the se:.e date,

and stating that is sending to the Board a cony of t'-e new :Preach

monetary law and the text of the agreements relating to its colications

Referred to the Vice Governor for pre)z.,.rationof an arooriate aciciowledgnent.

R77,2ORTS OF STAITDI17G CU .:MIMES:

Dated, July 2nd. Recommend -1n: chances in stock at Federz21. Reserve banksJuly 3rd as set forth in the Apiciliary-:inute Pool: of thisJuly 6t".e. date.July 9th 2eco e.adp.tio s am)roved-.

Jul, 5th Reco.-.1.:_lending action on applications for fid.uclar.:powersas set forth in the 11 in.ry Minute Book of t".-.is date.

Recormendations ax_proved.


7/9/23 -9-

REPORTS OF STANDING COMMITTEES:(Contid)

Dated, July 2nd Recommending action on applications for fiduciary

powers as set forth in the Auxiliary Minute Book of

this date.Refused.

Dated, July 6th Recommending action on applications for admission of

state banks, subject to the conditions stated in the

individual reports attached to the applications, as

set forth in the Auxiliary Minute Book of this date.

Recommendations approved.Dated, July 5th Recommending approval of the application of Mr. John E.

Stang for permission to serve at the same time as

director of the First National Bank of Oak Harbor, Ohio,

and as director of the Citizens Banking Company, of

Sandusky, Ohio.Recommendation approved.

Dated, June 29th Recommending approval of the application of Mr. Charles

A. Dunham for permission to serve at the same time as

director of the First National Bank of Dexter, New York

and as officer of the Jefferson County National Bank,

Watertown, New York.Recommendation ay?roved.

Dated, June 29th Recommending approval of the application of Mr. Harry S

Lewis, for permission to serve at the same time asdirector of the Northern New York Trust Company, Watertown,

New York, as director of the Carthage National Bank,

Carthage, New York, and as director of the Croghan National

Bank, Croghan, New York.Recommendation approved.

Dated, June 29th Recommending approval of the application of Mr. E. H. Rine

for permission to serve at the same time as director of

the First National Bank of Scranton, Pa., as director ofthe Fidelity Trust Company, New York City, and as director

of the Bloomfield Trust Company, Bloomfield, New Jersey.Recommendation approved.

Dated, June 29th Recommending approval of the application of Mr. C. Harry

Johnson for permission to serve at the same time as director

of the Tenth National Bank of Philadelphia, Pa., and asdirector of the American Bank & Trust Company of Philadelphia,

Pa.Recommendation approved.

Dated, June 29th Recommending approval of the application of Mr. C. Russell

Arnold for permission to serve at the same time as director

of the Ridley Park National Bank of Ridley Park, Pa., andas director and officer of the Lansdowne Bank & Trust Co.,Lansdowne, Pa.

Recommendation ap,?roved.


7/9/28 -10-

Dated, June 29th Recommending apnroval of the application of Mr. R. 17. H.Campbell for permission to serve at the same time asdirector and officer of the Community National Bank ofBuffalo, New York, and as director of the East SideNational Bank of Buffalo, 'Jew York.

Recommendation approved.Dated, July 2nd Recommending approval of the application of Mr. E. W.

Mudge for permission to serve at the some time as directorof the Bank of PittslYurgh, U. A.., of Pittsburgh, Pa.,and as director of the Fidelity Title ed Trust Company ofPittsburgh, Pa.

Recommendation approved.Dated, June 29th Recommending approval of the application of Mr. Ernest

Feyler for permission to serve at the same time asdirector of the Community National Bank of Buffalo, NewYork, as director of the Citizens National Bank ofLancaster, New York, and as director of the East SideNational Bank of Buffalo, New York.

Recommendation approved.Dated, July 2nd Recommending approval of the application of Mr. C. S.

Mitchell for permission to serve at the same time asofficer and director of the North Texas National Bankof Dallas, Texas, as officer and director of the FirstNational Bank of Newton, Texas, and as director of theFirst National Bank of Temole, Texas.

Recommendation approved.Dated, June 27th Recommending approval of the application of Mr. Simon

W. Straus for permission to serve at the same time asofficer and director of the Franklin Trust Company &Savings Bank, as officer and director of the Straus TrustCompany, and as officer and director of the Straus NationalBank and Trust Company, all of Chicago, Illinois.

Recommendation approved.Dated, June 27th Recommending approval of the application of Mr. Samuel J.

T. Straus for permission to serve at the same time asofficer and director of the Franklin Trust & Savings Bank,as officer and director of the Straus Trust Company, andas officer and director of the Straus National Bank andTrust Company, all of Chicago, Illinois.

Recommendation approved.Dated, June 27th Recommending approval of the application of Mr. Sidney H.

Kahn for permission to serve at the same time as directorof the Franklin Trust and Savings Bank, as officer anddirector of the Straus Trust Company, and as director ofthe Straus National Bank and Trust Company, all of Chicago,Illinois.

Recommendation approved.


• ji r

7/9/26 -11-

Dated, June 27th Recomnending approval of the application of Y.r. ArtiTurW. Straus for permission to serve at the same time asofficer and director of the Straus Trust Company, asdirector of the Franklin Trust and Savings Bark, and asdirector of the Straus National Bank and Trust Company,all of Chicago, Illinois.

Recommendation apnroved.Dated, June 27th Recommending approval of the application of Mr. Harry N.

Gottlieb for permission to serve at the same time asofficer and director of the Straus Trust Company and asofficer and director of the Straus National Bank and TrustCompany of Chicago, Illinois.

Recommendation approved.Dated, July 5th Recommending approval of the application of Mr. Theodore

F. Flandreau for permission to serve at the same time asdirector and officer of the Byram National Bank of EastPort Chester, Connecticut, and as director and officer ofthe 7estchester Title & Trust Company of 7hite Plains, NewYork.

Recommendation approved.Dated, June 27th Recommending apnroval of the application of Mr. Melvin L.

Straus for permission to serve at the same time as directorof the Franklin Trust and Savings Bank, as officer anddirector of the Straus Trust Company, and as officer anddirector of the Straus National Bank and Trust Company, allof Chicago, Illinois.

Recommendation approved.Dated, July 5th Recommending approval of the application of Mr. Abraham

Jeflin for permission to serve at the same time as directorof the Broad and Market National Bank :nd. Trust Company ofNewark, New Jersey, and as director v the New BrunswickTrust Company of New Brunswick, New J rsey.

Recommendation approved.

Approved:

Vice-Governor.

The meeting adjourned at p.m.

Secretary.


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