19280104_Minutes.pdf

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A meeting of the Federal Reserve Board was held in the office of

Federal deserve Board on Nednesday, January 4, 1928 at 11:00 a.m.

PRESENT: Vice Governor PlattMr. HamlinMr. IdillerMr. JamesMr. CunninghamMr. Noah, Assistant SecretaryMr. McClelland, Assistant Secretary

The minutes of the meeting of the Federal Reserve Board held on

December 30th were read and approved.

The minutes of the meeting of the Executive Committee of the Federal

deserve Board held on January 3rd were read and upon motion the actions

recorded therein were ratified.

Letter dated December 31st from the Comptroller of the Currency,

approved-by the Executive Committee, recommending increases in the salaries

Of National Bank Examiners as follows:

Examiner Present Salary Proposed Salary

Parker, E. F. 46,000 46,500Carolan, W. B. 4,500 4,800Dooley, T. E. 3,600 3,900

Murphy, D. F. 3,600 3,900

Allanson, E. A. 5,000 5,500Snyder, Vernon G. 4,200 4,500Beysen, A. 3,600 3,900Smith, George F. 3,600 3,900

Ketner„ John H. 3,300 3,600Baker, W. B. 6,000 6,300

Byers, A. W. 5,000 5,400Smith, George H. 4,200 4,500Austin, James V. 2,700 3,000

Carson, T. D. 5,200 5,500

iood, D. R. 4,500 4,800

Green, C. W. 3,000 3,300

Ramsdell, P. C. 3,900 4,200

Amrhein, J. A. 3,600 3,900

Bailey, J. L. 3,000 3,300

Ockershausen, F. C. 2,700 3,000

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1/4/28 IMO MIND

3xaminer Present Sala/7 Proposed Salary

Cottingham, T. J. y4,500 4,600Lifsey, W. P. 3,900 4,000Luiken, J. B. 3,900 4,000Cunningham, F. F. 2,700 3,000Wright, I. D. 6,000 6,300Moon, E. W. 5,600 5,900Stuart, H. K. 5,400 5,700Wilson, E. B. 5,000 5,200Wanberg, J. F. 4,300 4,600Taylor, W. 4,200 4,500

F. L. 3,600 3,900Wilson, V. J. 3,600 3,800Allsup, A. S. 3,500 3,600French, H. S. 3,300 3,500Laird, H. A. 3,300 3,500Fuller, H. R. 3,000 3,300Schmidt, H. W. 2,800 3,000ccuinn, ii. F. 2,500 2,700Mann, Stuart H. 4,800 5,000Sailor, Vance L. 4,200 4,500Anderson, 0. A. 3,600 3,900Bryan, C. A. 3,600 3,900Hoover, Paul E. 3,600 3,900Lytle, F. S. 3,600 3,900Bina, J. C. 3,300 3,600Stevens, L. T. 3,300 3,600

Huck, W. F. 3,000 3,300

Sedlacek, L. H. 3,000 3,300Stout, C. L. 3,000 3,300Penn, D. V. 2,700 3,000Chorpening, I. I. 5,000 6,000Baldridge, W. H. 4,200 4,500Coffin, G. S. 4,200 4,500'Weigand, C. P. 3,600 3,900McLean, C. H. 3,300 3,600Wright, E. M. 3,000 3,300Donahue, C. A. 2,700 3,000Price, A. E. 2,700 3,000Cooke, A. J. 2,500 3,000Taylor, 0. C. 2,500 2,700

Madland, L. L. 5,500 5,800

Rasmussen, F.4. 6,500 7,500

Lorang, P. J. 6,000 6,300Dwyer, T. A. 6,000 6,300Sheehan, W. F. 5,500 6,000

Klein, Benton 4,200 4,500

Smith, Hobert F. 3,600 3,900


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Examiner Present Salary Proposed salary

Whitney, H. S. 43,600 43,900Beaton, 0. 77. 3,300 3,600Hotchkin, P. L. 3,300 3,600Lanning, L. 0. 3,300 3,600Viatts, John L. 3,300 3,600Francis, C. C. 3,000 3,500Machleid, C. J. 3,000 3,300Shea, L. A. 3,000 3,300

Chief Examiner

Newnham, S. L. 14,000 15,000Wood, John S. 14,000 15,000Harris, T. E. 13,000 14,000Patterson, B. K. 11,000 12,000Folger, W. P. 9,500 10,000

Upon motion, the increases recommendedwere approved.

Latter approved on initials on January 3rd, namely, application of

the Moultrie National Bank, Moultrie, Ga. for original stock (60 shares)

14 the Federal Reserve Bank of Atlanta, effective if and when the Jomptroller

Of the Currency issues a certificate of authority to commence business.

Formally approved.

Matter approved on initials on December 31st, namely, application on

behalf of the Union Trust Company, Endicott,

Farmers National Bank of Union, Endicott, N.

Federal Reserve System and for 120 shares of

N. Y., a conversion of the

Y., for membership in the

stolk in the Federal Reserve

sank of New York, which was approved, effective on and after the date when

the succeeding trust company begins business, subject to the conditions

contained in the Board's Regulation H, Series of 1928, the trust company

to furnish the Board with a copy of its articles of incorporation and

certificate of authority to commeuce business.


1/4/28 -4-

Formally approved.

The Assistant Secretary stated that the Comptroller of the Currency

this morning called upon all National banks, and all banks in the District

Of Columbia, for reports of condition as of the close of business December

31, 1927, 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.

Letter dated December 31st from the Assistant Federal Reserve Agent

at New York, advising that the Citizens Trust Company of Utica, N. Y. has

opened a branch at 2018 Genesee Street, Utica.

Noted.

Letter dated January 3rd from the Assistant Federal Reserve Agent at

New York, advising that the Lincoln-Alliance Bank of Rochester, N. Y. has

l'eceived authorization for the establishment of a branch at 560 Monroe

Avenue, corner of Monroe Avenue and South Goodman Street, Rochester.

Noted.

Telegram dated January 3rd from the Federal Reserve Agent at San

Francisco, advisinr; that the executive committee of that bank has consider-

ed and voted to recommend approval of an application of the United Baak

atd Trust Company of San Francisco for permission to take over the head

office and San Francisco Branch of the Banca Popolare Fugazi and to operate

se,me as branches; the Agent stating that the committee is of the opinion

that the taking over of these two offices will not adversely affect the

condition of the United Bank and Trust Company nor add materially to its

Problems of administration.


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Upon motion, the application was approved.

Letter dated December 29th from the Deputy Governor of the Federal Res-

erve Bank of New York, transmitting copy of the agreement entered into with

the Banca d'Italia by various banks of issue, under the terms of which the

Federal Reserve bank is obligated for a period of one year from December

22, 1927, the date of the effective promulgation of the Italian decree of

stabilization, to parchase up to a total of .45,000,000 of prime commercial

bills endorsed or guaranteed by the Banca d'Italia.

The above letter and enclosure having been

circulated among all members of the Board were noted.

Letter dated December 27th from the Vice President of the First State

8100-k of Philipsburg, Liontana, referring to the hearing to be held by the

Board on January 18th at which the member bank has been requested to ap-

rear to show cause wiv it should not be required to surrender its stock

La the Federal Reserve Bank of Linneapolis; the letter stating that the

ba4k waives its right to appear before the Board but will be represented

at a hearing to be held before the Federal Reserve Agent at Yinneapolis

°II January 3rd.

Noted.

Lemorandum from Counsel dated December 20th with reference to the

--tayton Act application of -.Ir. Jesse A. Bloch, involving the National

43tchange Bank and the ;iheeling Bank and Trust Company, both of Wheeling.,

7.Va., which the Board on August 11, 1927 refused temporarily

with the

Ilsual opportunity to the applicant to present additional information in

1313ort of his application; Counsel stating that on the basis of the ad-

ditional information submitted he i unable to recommend that In'. Bloch's


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application be approved, but that if the amendment to the Clayton Act recom-

mended by the Board is adopted the Board would be authorized to approve the

aPPlication if, in its judgment, the interlocking directorate involved would

liot be incompatible with the public interest. Counsel recommended, there-

fore, that the Board defer taking any further action on the application un-

til it is determined whether the amendment to the Clayton Act referred to

Will be enacted at the present session of Congress.

Upon motion, in accordance with Counsel's recom-

mendation, action on the above application was deferred.

Report of Committee on Examinations on letter dated December 27th from

the Federal Reserve Agent at San Francisco, recommending approval of an

aPplication of the Inland Empire Bank, Pendleton, Oregon for permission

to exercise fiduciary powers; the Board's Committee also recommending ap-

Proval.

Approved.

Letter dated January 3rd from the First Federal Foreign Investment

Trust of New York City, replying to a letter addressed to the corporation

bY the Board under date of December 15th with respect to certain stock

owned by the corporation, as to the legality of which the Board had been

requested to rule; the letter stating that the Vice President and General

Ilanager of the corporation, who is familiar with the situation, is abroad

and requesting that the Board defer final decision in the matter until

after his return on or about January 25th when he will furnish certain

additional information.

Noted, without objection.


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The Vice Governor then submitted an application of The Huntington

National Bank of Columbus, Ohio, for permission under Section 11 (k) of

the Federal Reserve Act to act as "committee of estates of lunatics" and

in "any other fiduciary capacity in which state banks, trust companies

and other corporations which come into competition with national banks

are permitted to act under the laws of the state of Ohio". The Vice

Governor stated that counsel to the Federal Reserve Bank of Cleveland

has advised the Board that state banks located in Ohio may not legally

act as "committee of estates of lunatics". He stated that the Board's

counsel, however, has ruled that the Board has authority to grant the

power to national banks in Ohio and in accordance with this ruling the

Board in the past has done so in the case of several banks. He reported

that none of the national banks authorized to exercise the power are doing

BO under that designation but are handling the business involved as

"guardian of estates". He expressed the opinion that inasmuch as the

authority to act as "committee of estates of lunatics" is not being

availed of, the Board, in view of the opinion of counsel to the Federal

deserve Bank of Cleveland, should not in the future grant that power

to national banks in Ohio.

After discussion, it was upon motion, voted to

approve the application of the Huntington National

Bank of Columbus for permission to act in "any other

fiduciary capacity in which state banks, trust companies

or other corporations which come into competition with

national banks are permitted to act under the laws of

the state of Ohio' arid that henceforth the power of

"committee of estates of lunatics" should not be granted

to national banks in the state of Ohio.


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

Cunningham as member of the Executive Committee expired December 31,

1927 and accordingly Mr. Hamlin was designated to serve on the committee

for the quarter ending March 31, 1928.

4gPORT3 OF JTANDING COUITTIES:

Dated, December 31st, Recommending action on applications for fiduciarypowers as set forth in the Auxiliary Minute Bookof this date.

Recommendations approved.Dated, December 30th, Recommending approval of the application of Mr.

W. M. Rice for permission to serve at the same timeas director of the Union National Bank, Houston,Texas, and as director of the Houston Land and TrustCompany, Houston, Texas.

Hecommendation approved.Dated, December 30th, Recommending approval of the application of :Ir.

Hobert Goelet for permission to serve at the sametime as director of the Chemical National Bank,New York, N. Y., as trustee of the r'ulton TrustCompany, New York, N. Y. and as trustee of theTitle Guarantee and Trust Company, New York, N. Y.

Recommendation approved.

The meeting adjourned at 11:45 a.m.

Assistant Secretary

Vice-Governor.


19280104_Minutes.pdf

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