the
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
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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.
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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.
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