to: members of the board attached is a copy of the minutes ......rrom fillmore to various banking...

Minutes for January 21, 199P,

To: Members of the Board

From: Office of the Secretary

Attached is a copy of the minutes of the

Board of Governors of the Federal Reserve System on

the above date.

It is not proposed to include a statement

with respect to any of the entries in this set of

minutes in the record of policy actions required to

be maintained pursuant to section 10 of the Federal

Reserve Act.

Should you have any question with regard

to the minutes, it will be appreciated if you will

advise the Secretary's Office. Otherwise, if you

were present at the meeting, please initial in col-

umn A below to indicate that you approve the minutes.

If you were not present, please initial in column B

below to indicate that you have seen the minutes.

Chm. Martin

Goy. Szymczak

Gov, Mills

Gov, Robertson

Gov, Balderston

Gov. Shepardson

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

Minutes of the Board of Governors of the Federal Reserve System

011 Wednesday, January 21, 1959. The Board met in the Board Room at

10:00 a.m.

PRESENT: Mr. Martin ChairmanMr. Balderston, Vice ChairmanMr. SzymczakMr. MillsMr. RobertsonMr. Shepardson

Mr. Sherman SecretaryMr. Kenyon, Assistant SecretaryMr. Fauver, Assistant SecretaryMr. Hackley„ General CounselMr. Solomon, Assistant General CounselMr. Hexter, Assistant General CounselMr. O'Connell, Assistant General CounselMr. Hostrup, Assistant Director, Division

of ExaminationsMr. Nelson, Assistant Director, Division

of ExaminationsMr. Goodman, Assistant Director, Division

of ExaminationsMr. Benner, Assistant Director, Division

of ExaminationsSmith, Assistant Director, Divisionof Examinations

Mr. Davis, Assistant Counsel

C_irculated to the Board. The following itexns,whichha- been circulated to the members of the Board and copies of which

at ched to these minutes under the respective item numbers

tridieat,d--) were approved unanimously

A er to The Chase Manhattan Bank New York, New York,e,,,tijr o n171,, the establishment of an additional branch in the"le pee. 'anama, Republic of Panama. (For transmittal through'eral Reserve Bank of New York)

Item No.

1


1/21/59 -2-Item No.

Letter to The Chase Manhattan Bank, New York, New York,

nnting an extension of time within which to establish:,oranch at 410 Park Avenue. (For transmittal through'te Federal Reserve Bank of New York)

Letti 'te-r to the First Trust & Deposit Company, Syracuse, 3selgYork, consenting to a proposed merger with the De RuyterIntate Bank, De Ruyter, New York, and approving the establish-pent °f a branch in De Ruyter. (For transmittalthrough theederal Reserve Bank of New York)

1L4eitter to the Manistee County Savings Bank, Manistee, 4

vi ligarly approving the establishment of a branch in theRZ'age of Onekama. (For transmittal through the Federal--erve Bank of Chicago)

Lettercali to the American Trust Company, San Francisco, 5Mor,:°rnia, approving the establishment of a branch inBal-,rn Hill. (For transmittal through the Federal Reserve

of San Francisco)

Messrs. Nelson and Goodman then withdrew from the meeting.

APplication of First Security Corporation. First Security

C°rPoration Salt Lake City, Utah, had applied, pursuant to section

(a)(2) of the Bank Holding Company Act for approval of acquisition

Of the outstanding common stock of the Fillmore State Bank, Fillmore,

UtahMemoranda from the Division of Examinations dated January 12

2

-"tiarY 15, 1959, respectively, had been distributed to the members

Of theBoard along with a memorandum from the Legal Division dated

4411arY 19,1959.

The recommendation of the Federal Reserve Bank of SanPranctseo vas

that,favorable, the Division of Examinations recommended

11°tice of tentative decision granting the application be


though the case was

Matter of judgment, it

sustained by the courts as

erstion. On the

Division stated

not free from all question and involved a

felt that a favorable decision -would be

resonable exercise of the Board's die-

other hand, it was deemed unlikely that disapproval

l'otild be considered by the courts as an abuse of the Board's discretion.

Summarizing the matter in the light of the factors requiredto be

considered pursuant to section 3(c) of the Bank Holding Company

Act' Mr. Hostrup said there was no question with respect to thefihancial

company.condition, prospects, or management of the applicant holding

However, it must be noted that the proposed

involve

c°mPetition in

Indicated its

1/21/59-3-

and the Bank Commissioner of the State of Utah interposed no

objec+4..-Lon to approval of the application. The Legal

that al

Was

absorption by the

transaction

largest bank in Utah of its only

the local area, since First Security Corporation had

intention to convert the Fillmore State Bank into a

1)1' eh of its subsidiary bank in Ogden. As to the local bank, itstna

ncial history

been drifting since the death of the former owner. The present owner,

8'11 ett°rneY for First Security Corporation, had reportedly been unable

—124'°Y competent management and the bank's prospects therefore were

11°t t°c1 strong.

it Might be said that the communityll

that the solution lay in other interests

and condition were satisfactory, but the bank had

From the standpoint of convenience, needs, and welfare,

was entitled to banking services,

taking over the institution.


1/21/59

Purchase by First Security Corporation would contribute to the sound-

of the bank and the proposed transaction would not appear to have

the effect of damaging the soundness of any other bank in the general

area. The Fillmore trade area represented only a small segment of

the PoPulation and the economy of the State, the natural flow of trade

from pillmore appeared to be in the direction of cities where First

Security Corporation banks operate, and the transaction would not

illvolve the elimination of alternative sources of banking services.

Mr. Hackley said that this matter, on its face, presented

"tile serious questions, particularly since approval would result in

the h°1ding company controlling all of the banking offices in Millard

Cow—v, and the Legal Division therefore had discussed at length the

10851ble application of the Clayton Act. Considering, however, the

ecohohlv-v and the geographical nature of the area, it was felt that the

c°114tY probably would not be regarded as a "section of the country"

r°/* the purposes of the Clayton Act. The trade area would include

814111)1Inding counties and, on balance, it was the view of the Legalpi

N'-a4JQn that there would be no tendency toward monopoly or lessening

c°MPetition within the meaning of the Act.

Continuing, Mr. Hackley said it appeared that the proposal

contribute to the needs, convenience, and welfare of the

taarea than now available. Consequently, the Legal Division

Utifubecause it would provide more complete banking services


3t-

1/21/59

c°ncluded that approval of the application would be consistent with

the statutory factors mentioned in the Bank Holding Company Act.

At the instance of Governor Balderston, there followed

c°111 ents on the area's geographical characteristics, the mileage

rrom Fillmore to various banking points, and the availability of

alternative banking services.

The members of the Board then expressed their tentative

beginning with Governor Mills who read the following statement:

t On the basis of the information submitted with respectc: the First Security Corporation's application to acquirethe Fillmore State Bank, it is the writer's judgment thatthe

application should be denied unless an extensive publichearing is held that would permit representations by allparties that might be at interest in the matter and theresults

of which would incontestably justify approval.

In recommending a denial of the application in its presentSb%e'tus, there is no hint of criticism attached to the sta-,„11tY of the First Security Corporation or the integritynd

ability of its management. The question raised regardinge application focuses on the public interest and the

rc,sulting effects on the State of Utah's banking structureaPprovel were granted. It is acknowledged that absorption

would the

Fillmore State Bank by the First Security Corporationba not substantially increase the latter's control overh4ing offices and banking assets in the State of Utah, in

that.,onlY 35.71 per cent of banking offices and 33.55 per cent-Lra 11C deposits would be controlled. Notwithstanding that

b4ltr' it is important to observe that First Security Corporation• represent the only banking offices in six of the countiesar 14hich operations are conducted. In sparsely populated

the country, banking offices located in county seats1.7-L:1,141e more importance than would be true of banking offices other-to"' situated, in that the cohesive importance of bankingthee°Inmunity life rises in degree whenever it centers about

activities of a county seat. Viewed in this manner, the


aPProv

1/21/59 -6-

dispersion of First Security Corporation banking offices ina vaY that allows control of banking operations in manyimportant county seats vests in it a greater degree offinancial dominance than would be true in more highly popu-lated areas of the country, where the location of bankingoffices is melted down by a greater range of economicactivities. Also based on this reasoning, the percentageOf the First Security Corporation's control of banking officesand IPC deposits in the State of Utah embraces greater marketPower than would be true of a similar percentage of controlOf banking offices and bank deposits in more densely populatedareas of the country.

Mr. S. J. Quinney's financial control of the FillmoreState Bank is likewise a subject that should be fully disclosedat a public hearing. In considering the First SecurityCorporation's application, it must be recognized that thereare other banking interests operating in the State, namely,the Firstamerica Corporation and the Cosgriff interests. Itswould be improper to approve the application in its presenttat116 without a public hearing that could admit evidence

from these two interests should they be disposed to makerePresentations . Furthermore, a public hearing would offer

oPPortunity for any of the independent banks in the areaZ: object to or concur in the application should they wish

take positions regarding it.

Governor Robertson, the next Board member to speak, favored

al of the application, stating that he thought it was of thetYPe co

nte mplated for approval by the Bank Holding Company Act.

That Act, he suggested, left the door open for holding companyveXPanion1 in cases where the convenience, needs, and welfare factor

11" str„genough to outweigh any unfavorable aspects under the

Q°17113stiti ve factor. The present case involved a small bank, essentially

one_man operation, and the closest banking point was some 4o miles

clist'Iht• When the executor of the estate of the former owner wanted


1/21/59-7-

Sell the bank and the present owner, an attorney for First Security

Corporation, came into the picture, question was raised with regard

tp Possible violation of the Bank Holding Company Act, but that aspect

/las not before the Board today. The present owner, being a lawyer,

'WU not particularly interested in the banking business and it seemed

/314ite natural that the holding company with which he was associated

desired to take over the bank. This, incidentally, could be done

Under alternative arrangements which would not require approval under

the Bank Holding Company Act. Continuation of banking services in

the c°mmunity appeared to depend on obtaining someone with necessary

cillalifications, and acquisition of the bank by First Security wouldProvide

a solution.

Governor Shepardson agreed with Governor Robertson, addingthat al tho ugh he would have no particular objection to a hearing on

the mat ter, he questioned whether it was necessary.

Governor Szymczak indicated that on the basis of the availabledata he I./Quid be inclined to go along with the position of Governor

1°13ertson.However, he recognized the argument in favor of holding

e.PUbli

hearing when a close question was involved. In a further

cc4/1111ent, hesuggested that the Board might be tending to debate a

the°Teticalquestion in considering the competitive aspects of the

1114tt" inasmuch as the Fillmore bank was already under the control of4 e

r-Pl'esentative of First Security.


1/21/59 -8-

Governor Balderston said that he did not like to see freedom

of choice as to banking services restricted to the extent that it

83)Parently would be restricted if this application were approved.

°n the other hand, the Fillmore community and surrounding area was

such a tyre as to suggest that the population was fortunate to

have one good banking institution. On balance, he was inclined to

favor approval of the application for the reasons set forth in the

t4fr memoranda, even though his position was shaken somewhat because

he cl°11bted whether the record, as it now stood, provided any clear

8418ver to the question raised by Governor Mills about the possibility

t other interests being desirous of entering the area.

It vas noted by Mr. Hexter that an alternative procedure would

e for First Security to merge the Fillmore bank into a subsidiaryIle.tionto ,

'yank under conditions -where only the approval of the ComptrollerOr the Currency for establishment of a branch in Fillmore would be

recillired• At one time he said, such an application was submittedbUt

later withdrawn.

Chairman Martin indicated that he would be inclined to agreeVith 0,

-Vernor Mills concerning a hearing if it were not for the factthat thi

1m5 such a small matter as to raise the question of thetecess4

-4tY for going through that procedure. In all the circumstances)he%rola a

be inclined to approve the application without a hearing.


or

1/21/59 -9-

When Governor Mills suggested that an application should be

denied where there was doubt, Chairman Martin said he saw no consistency

ifl denying an application where there was not sufficient evidence to

Support denial. If, in any case, there appeared to be no strong arguments

either for approval or for denial, he felt, as he had said during

ll'evicals discussions of the same subject, that one must consider the

eight of the evidence and reach a decision accordingly.

It was then decided, on the basis of the views expressed by

the iciritY, that the Legal Division would draft for the Board's

Consideration a notice of tentative decision granting the application.

In th is connection, it was agreed after some discussion that, in

Cordab—ce with the decision reached when the procedure for issuing

tentive decisions was

elte should be drawn up

Illinority opinion.

instituted, the tentative decision in this

on a basis that would not reflect the existence

This reaffirmed the reasoning of the Boardthat

a tentative decision merely constituted information of action

1:11'°13°13ed to be taken by theto

Board in order to provide an opportunity

rnments by interested parties and that an indication of votes at

ellch ,o,'would be premature.

Messrs. Solomon, Hexter, O'Connell, and Davis then withdrew

the meeting.


1/21/59 -10-

Meeting with Price Waterhouse representatives. Chairman

Martin reported that, pursuant to the understanding following informal

dlacusaion by the Board, he had ascertained that appropriate repre-

eentatives of Price Waterhouse & Co. could meet with the Board on

.‘el:TuarY 9, 10, or 11, 1959, to review the report made by the firm

eerieMing its survey of procedures followed during the 1958

examination of the Federal Reserve Bank of Boston by the Board's

examining staff.

Since there developed to be conflicts on the dates mentioned,

s 1111A2111221 that other possible dates would be discussed witht

th4

aCCOthating firm.

srs. Hostrup and Smith then withdrew from the meeting.

alle.Ia_appointments. After discussion of possible appointees,

ltglIal unanimously to request the Chairman of the Federalrve Bank of New York to ascertain whether Mr. James DeCamp Wise,

of the Board of Bie

elow-Sanford Carpet Company, New York,

ould be willing to accept appointment, if tendered, ase.C1413 C director of the Federal Reserve Bank of New York for the

lalired portion of the term ending December 31/ 1961, with the

kulderstanding that the appointment would be made if it were found thatIle 041d

accept.

Mr. Daniel M. Dalrymple having resigned from the Board of

of the Buffalo Branch, it was agreed unanimously, after

g

ee


1/21/59 -11-

e°11sidering names mentioned in a memorandum from Mr. Fauver dated

jelluarY 21,1959, to request the Chairman of the New York Bank to

ascertain whether Mr. Cameron G. Garman, a farmer of Burt, New York,

17(414 accept appointment, if tendered, as a director of the Branch

t6r the unexpired portion of the term ending December 31, 1960, with

the understanding that the appointment would be made if it were found

that • Garman would accept. In the event Mr. Garman should not be

available, it was agreed to make similar inquiry with respect to Mr.

Ma),-cuRBuckman, Manager of Sodus Fruit Farms, Inc., Sodus, New York.

Secretary's Note: The availability of Messrs. Wiseand Garman having been ascertained, appointmenttelegrams were sent to them on January 23, 1959.

Matter of Continental Bank and Trust Company (Item No. 6).

Governor Shepardson referred to previous informal discussion by thetoard

concerning fees paid to Mr. Bolling R. Powell, Jr.,as Special

C°141ael for the Board in the proceeding against Continental Bank and

'4118t Company, Salt Lake

services rendered and

belIM JulY 1 through

v°11eher in the amount

(1°1111/fard adjustment of

QQ111c1 have claimed widere414:1 that Mr. Powell further

scritract under which the nwcinalmn

City, Utah. He reported that for legal

miscellaneous expenses incurred during the

December 31, 1958, Mr. Powell had submitted a

of $20,551.25, which appeared to represent a

perhaps $3,000 from the amount Mr. Powell

his contract with the Board dated May 25, 1956,

suggested an amendment to the present

amount payable to his firm in any


1/21/59 -12-

calendar year would be $36,0007 exclusive of transportation, per diem,

and out-of-pocket expenses. In a memorandum dated January 151 1959,

Mrs lisekley had recommended approval of the voucher and acceptance of

the proposed modification of the retainer agreement, effective

jarillarY 1) 1959, and Governor Shepardson indicated that he concurred.

In discussion, Governor Shepardson observed that although an

arillUal maximum of $15,000 is usual for outside counsel retained by

the DePartment of Justice, that Department provides such items as

I'll" space, stenographic assistance, law library services, and

8111)1111es. It was his opinion that the proposed modification of thet..14

r agreement was probably as reasonable and equitable an arrangement

s e°111d be achieved.

Pursuant to Governor Shepardsonts recommendation, payment of

were

222.E2Y21 unanimously. A copy of the letter sent to Mr. PowellAttre,„,

—..wc to this action is attached as Item No. 6.

In response to a question, Mr. Hackley stated that it seemed

Y to be late spring or early summer before the Continental matter-Ne

the Board for decision.

the°licher as submitted and modification of the contract as proposed

Mx. Hackley then withdrew from the meeting.

Price e. Waterhouse bill. Governor Shepardson stated that paymentor

bill °r $9,000 received from Price Waterhouse & Co. covering its81.11...veY Or Procedures followed in the 1958 examination of the Federal


1/21/59-13-

Reserve Bank of Boston would result in an expenditure of $1,500 beyond

the 1958 budgetary provision for that purpose. He said that in the

absence of objection he intended to approve payment of the bill along

'cl itn the resultant budget overexpenditure, as recommended in memoranda

frcml the Division of Examinations and the Board's Controller.

Governor Shepardson also said that the Controller had raised

'41th him informally the question of the need to continue the surveys

On an annual basis and that he had authorized the Controller to prepare

a temorandum of his views on the subject.

After discussion, it was understood that Governor Shepardson

aPprove the payment of the bill and the budget overexpenditure

beha-- of the Board. It was assumed that no additional charge

/r°111d bA-- made incident to discussion of the survey report with the

bY representatives of Price Waterhouse & Co.

SPring meeting of Chairmen's Conference (Item No. 7). With

rIzrth er reference to the possibility of a spring meeting of theCont

rence of Chairmen of the Federal Reserve Banks, as previously

'alled at the Board meeting on December 18, 1958, Governor ShepardsonRtkted 41,

'ilat upon further consideration of the Board's prospective8ehecbo

-'e and related matters, he would recommend advising the Executive

e°rrinlit e

t of the Conference that the Board did not find it feasible

l‘tieiPate in a spring meeting this year and therefore wished tot° De.


'ICJ

1/21/59

suggest deferral for another year of the plan under which a spring

meeting would be held with chairmen of the branch boards in attendance.

There was unanimous agreement with Governor Shepardsonis

reecminendation. A copy of the letter sent to the Chairman of the

Chairments Conference pursuant to this action is attached as Item No. 7.

Agenda for meetings with Federal Advisory Council. Governor

ShePardson reported having discussed with the Secretary of the Board

cill"tions relating to the preparation and content of the agenda for

jot" meetings of the Board and the Federal Advisory Council. After

11"ing that the agenda topics suggested by the Board tended to be

kite standardized and that ordinarily no additional topics were

814g"sted by the Council, he proposed inquiring at the joint meeting

PebrilarY 17, 1959, whether the Council would like to suggest any

reIrision of current procedures, with the understanding that the Board

vould be glad to consider any suggestions the Council might have.

There was unanimous agreement that the question should beraised

with the Council at the next joint meeting on the basis

by atifv,

'EelatedGovernor Shepardson.

PAEectorst day program. Question was raised by Governor

rcia°n as to the type of speaker deemed most appropriate forthe

4-uner on the evening of Thursday, February 19) preceding thearbaual

shepa

Program for newly elected or appointed Reserve Bank and


• f; I

1/21/59-15-

branch directors. After some discussion, it was the consensus that

1/ou1d be desirable to obtain some outstanding figure in public

liteand that a person of such stature who had previously served in

8°1e capacity with the Federal Reserve System would be particularly

13ProPriate.

The meeting then adjourned.

Secretary's Note: Governor Shepardsontoday approved on behalf of the Boardthe following items:

item N Letter to the Federal Reserve Bank of San Francisco (attached7F,r1r.„-2z.J.) designating Albert R. Koch, Associate Adviser, DivisionEllii;search and Statistics, to participate in the central banking

-ar to be held at that Bank in March 1959.

ilicreo Memoranda from appropriate individuals concerned recommendingBoard:4es in the basic annual salaries of the following persons on the

staff, effective January 25, 1959:

to $513,e,rnice T. Mann, Secretary, Board Members' Offices, from $5,090<40 per annum.

r 01 t.;)lin E. Reynolds, Economist, Division of International Finance,T-L0,130 to $10,370 per annum.

Viol4-et Herrmann, Cafeteria Helper, Division of .P,Jiministrativefrom $3,720 to $3,815 per annum.

Plo,viceszence A. Norman, Relief Cook, Division of Administrative' from $3,635 to $3,730 per annum.

LetItetallos ter to the Federal Reserve Bank of Richmond (attachede l41111.74-ie approving the designation of six persons as special assistant


01.

ti‘11)11,,,V 6•:,,

BOARD OF GOVERNORSDE THE

FEDERAL RESERVE SYSTEM

'

4 ?, WASHINGTON 25. D. C.

J4'

4 *0*

The Chase Manhattan Bank,EiplIteen Pine Street,New York 15, New York.

Gentlemen:

Item No. 11/21/59

ADDRESS OFFICIAL CORRESPONDENCE

TO THE BOARD

January 21, 1959.

The Board of Governors of the Federal ReserveSYstem authorizes The Chase Manhattan Bank, New York, NewIrk, Pursuant to the provisions of Section 25 of the!ederal Reserve Act, to establish an additional branch int:anama, to be located at the corner of Via Espana andJiquilino de la Guardia Street, Panama, Republic of Panama,and to operate and maintain such branch subject to the

13J°v1sions of such Section; upon condition that, unlessne ofis actually established and opened for business

°r,1 or before February 1, 1960, all rights granted herebybe deemed to have been abandoned, and the authority

erebY granted shall automatically terminate on such date.

Please advise the Board of Governors in writing,through the Federal Reserve Bank of New York, when theQran 1, •i„ s established and opened for business. It is under—Stood that no change will be made in the location of the1

ranch without the prior approval of the Board of Governors..

Very truly yours,

(Signed) Kenneth A. Kenyon

Kenneth A. Kenyon,Assistant Stretary.


VI',.•"'s

BOARD OF GOVERNDRE;OF THE

FEDERAL RESERVE SYSTEMWASHINGTON 25. D. C.

Item No. 21/21/59

AOONCEIES OFFICIAL CORREBPONOCNCE

TO THe BOARD

January 21, 1959.

.11r„1°_ ar°. °I* Directors,:[le Chase Manhattan Bank,'Jew Ycrk, New York.

Gentlemen:

P In accordance with the request submitted through theto nal Reserve Bank of New York, the Board of Governors extends

Ba:1"ber 16, 1559, the time within which The Chase ManhattanI'lew York, New York, may establish a branch at 410 Park

el New York, New York.

Very truly yo


Kenneth A. Kenyon,Assistant Secretary.


BOARD OF GOVERNORSOF THE

FEDERAL RESERVE SYSTEMWASHINGTON 25, D. C.

Item No. 31/21/59


TO TI-SE BOARD

January 21, 1959.

Beard of Directors,First Trust & Deposit Company,SYracuse, New York.

Gentlemen:

Fed Pursuant to your request submitted through theeral Reserve Bank of New York, the Board of Governors

gives its written consent, under the provisions ofm-"Ion 18(e) of the Federal Deposit Insurance Act, to the

4rCer of De Ruyter State Bank, De Ruyter, New York, into,rst Trust & Deposit Company, Syracuse, New York, and ap-t'

r

. oyes the establishment of a branch in De Ruyter. ThisatnYal is given provided the transaction is effected sub-

in accordance with the terms of the agreement oft'er as submitted, formal approval of State authorities

b8;4eveve at the time the merger and establishment of theeffected, and this proposal is concluded within

months from the date of this letter.

Very truly yours,




,



Board of Directors,The Manistee County Savings Bank,Manistee, Michigan.

Gentlemen:

Item No. L.

1/21/59

AllOrit:86 OFFICIAL CONI4I t;PONOENCE.

TO loft_ HilA1-40

January 21, 1959.

Fed Pursuant to your request submitted through the

eral Reserve Bank of Chicago, the Board of Governors oft,he Federal Reserve System approves the establishment of a,I5 anch at 4968 Main Street, in the Village of Onekama,

1.1.3tee County, Michigan, by The flanistee County Savings

211k, provided the branch is established within six monthsIjom the date of this letter, and the approval of the StateoUthorities is in effect as of the thltE of the establishmentf the branch*

Very truly yours,

(Signed) KennethA. Kenyon

Kenneth A. Kenyon,Assistant Secretnry*



FEDERAL RESERVE SYSTEMWASHINGTON 25, O. C.

Board of Directors,American Trust Company,San Francisco, California.

Gentlemen:

Item No. 51/21/59


TO THE BOARD

January 21, 1959.

Pursuant to your request submitted through theFederal Reserve Bank of San Francisco, the Board ofi.?yernors approves the establishment of a branch in Morgann111, California, by American Trust Company, San Francisco,k-salifornia. This approval is given provided the branch is"tablished within one year from the date of this letter

that formal approval of State authorities is effectiveat the time the branch is established.

Very truly yours,




BOARD OF GOVERNORSOF THL


Item No. 61/21/59


TO THE BOARD

January 21, 1959

Bolling R. Powell, Jr., Esq.,Powell, Dorsey, Blum & White,

K Street, N. W.iwashington 6, D. C.

°ear Mr. Powell:

You.r. f, This refers to your letter of December 30, 1958, enclosingthe 'rm's voucher covering professional services in connection withSaltPrlding proceedings against Continental Bank and Trust Company,clown:4k° City, Utah. It is noted that the voucher has been adjusted

iiard in accordance with recent conversations between you andthis ackleY, the Board's General Counsel; and your cooperation in

respect is appreciated.

this In connection with the continued services of your firm inacki tmatter,, your letter states that it will be agreeable to you toBoard° the existing retainer agreement between your firm and the

as contained in the Board's letter of May 25, 1956, a provisoto $3-6n the maximum amount of fees payable in any one year thereundercorda,,,o0. The Board is in agreement with this proposal and, ac-agresmg'-Y, it is understood that the second paragraph of the retaineras aiii-ent as contained in the letter of May 25, 1956, is to be regardedended,

effective as of January 1, 1959, to read as follows:

"It i01, -s understood that the Board will pay you at the rate1-1-0 250 a day for days when it is necessary for you to

on this matter at any place outside of Washington,and at the rate of $25 an hour for work performsd

b, Idaashington, D. C., plus $10 an hour for work performed

4 Juniors and assistants in your firm; provided that these3rcilmilll amount payable to you in any calendar year fornotvices rendered under this retainer arrangement shall

exceed $36,000."

4Rrepril,,,,. It is understood, of course, that this change in the retainer"t11,11.7' does not affect provisions of the agreement for payment of'r4hsportation expensPs and per diem in connection with necessary


BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Bolling R. Powell, Jr., Esq. -2-

t:vel and that, consequently, the $36,000 maximum is exclusive of

exPenses and other out-of-pocket expenses incurred by your

in connection with the performance of services under the agree-

cv

Very truly yours,

Merritt tipSecretary.


,4i21,414**

4441',,0 401,4,40

qr.'1. 41/4C1t,

t%

,14,4t 4100:1'-t.4440-



Item No. 71/21/59


TO THE SOARD

January 26, 1959

Mr, Robert J. Smith, Chairman,

Federal Reserve Bank of Dallas,°alias 2, Texas.

Dear mr.Smith:

8Prinr, The Board has considered the suggestion that during the

Of t'̂' Of 1959 there be a meeting of the Conference of Chairmenor he Federal Reserve Banks to which the Chairmen of the boards

xecto1.3 of the Reserve Bank branches also would be invited,m'ee,it has come to the conclusion that the calling of such areach'ig should be deferred for another year. This conclusion wasin.ed after considering the calendar for the spring of 1959,

of not only the known demands upon the Board and members

the fa staff in connection with Congressional hearings but also

be° raet that some extended absences of members of the Board maynecessary.

keetiThe Board still feels that there is much to be said for a

airo,ng of the type proposed, and it will be glad to consider a

proposal a year hence.

Sincerely,

Merritt ermaSecretary.


370

BOARD OF GOVERNORS

OF THE


VAA'4110*

Mr. um N. Mangels, President,2ederai Reserve Bank of San Francisco,°4r1 P ancisco 20, California.

Dear mr.mangels:

Item No. 81/21/59

ADDRESS OFFICIAL CORMESF.F.JNOENCE

TO THE HOARD

January 21, 1959

The Board has considered the request in your letter of

Jarituo,. k

rrti'f 14, 1959 that a representetive of the Board of

Governors

ed-kelpate in the central banking seminar to be held at the

ameral Reserve Bank of San Francisco on March 14, 5, and 6,theit has designated Mr. Albert R. Koch, Associate

Adviser in

is Division of Research and Statistics, for this purpose. It

401,8sumed that you will wish to communicate directly with Mr.

to "haconcerning the sessions of the seminar in which you wish

vs him take an active part.

Very truly yours,

Secretary.


•?,



Item No. 91/21/59


TO THE BOARD

January 21, 1959.

11r. N. L. Armistead, Vice President,Federal Reserve Bank of Richmond,Richmond 13, Virginia.

Dear mr.Armistead:

In accordance with the request contained in your

tionletter of January 190 1959, the Board approves the designa-.IssisZLthe following employees of your bank as special

examiners for the Federal Reserve Bank of Richmondlor thebank purpose of participating in examinations of member

only:

Arthur N. O'Brien0. Ridgely FlohrJoseph A. MrynczaSalvatore J. SpinnicchioRobert A. Perry

The Board also approves the designation of William N.Roberts_as a special assistant examiner for the Federal

serveexa Bank of Richmond for the purpose of participating in8a nitnations of member banks only except The First Union Nationalrik of North Carolina, Charlotte, North Carolina.

Very truly yours,




to: members of the board attached is a copy of the minutes ......rrom fillmore to various banking...

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